Bill Text: IL HB3853 | 2017-2018 | 100th General Assembly | Introduced


Bill Title: Amends the Liquor Control Act of 1934. Defines "third-party provider". Establishes additional reporting requirements for third-party providers. Provides that a violation of certain reporting requirements is a Class C misdemeanor. Requires employees of a third-party provider to post with the State Commission a bond payable to the State in the penalty of $1,000 upon the condition that the person will not unlawfully transport or deliver alcoholic liquor within or into this State. Requires a bill of lading or other memorandum of shipment signed by the winery shipper's licensee to contain, among other information, a description of the wine being transported, the name and address of the consignor and consignee, and the route to be traveled by the vehicle transporting the wine. Requires the route to be the most direct route. Requires payment for any wine shipped by a third-party provider to be received no later than at the time of delivery, and, as a condition of delivery, a third-party provider must obtain the signature of a person 21 years of age or more. In each shipment of wine, requires the third-party provider to include written information concerning fetal alcohol syndrome. Provides that certain restrictions on the manufacture, importation for distribution, transportation from outside the State into the State, and distribution or sale of alcoholic liquor without a license under the Act do not apply to a third-party provider. Makes other changes. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2017-04-28 - Rule 19(a) / Re-referred to Rules Committee [HB3853 Detail]

Download: Illinois-2017-HB3853-Introduced.html


100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB3853

Introduced , by Rep. Michael J. Zalewski

SYNOPSIS AS INTRODUCED:
235 ILCS 5/5-1 from Ch. 43, par. 115
235 ILCS 5/10-1 from Ch. 43, par. 183

Amends the Liquor Control Act of 1934. Defines "third-party provider". Establishes additional reporting requirements for third-party providers. Provides that a violation of certain reporting requirements is a Class C misdemeanor. Requires employees of a third-party provider to post with the State Commission a bond payable to the State in the penalty of $1,000 upon the condition that the person will not unlawfully transport or deliver alcoholic liquor within or into this State. Requires a bill of lading or other memorandum of shipment signed by the winery shipper's licensee to contain, among other information, a description of the wine being transported, the name and address of the consignor and consignee, and the route to be traveled by the vehicle transporting the wine. Requires the route to be the most direct route. Requires payment for any wine shipped by a third-party provider to be received no later than at the time of delivery, and, as a condition of delivery, a third-party provider must obtain the signature of a person 21 years of age or more. In each shipment of wine, requires the third-party provider to include written information concerning fetal alcohol syndrome. Provides that certain restrictions on the manufacture, importation for distribution, transportation from outside the State into the State, and distribution or sale of alcoholic liquor without a license under the Act do not apply to a third-party provider. Makes other changes. Effective immediately.
LRB100 08301 RPS 18403 b
CORRECTIONAL BUDGET AND IMPACT NOTE ACT MAY APPLY
FISCAL NOTE ACT MAY APPLY

A BILL FOR

HB3853LRB100 08301 RPS 18403 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 5-1 and 10-1 as follows:
6 (235 ILCS 5/5-1) (from Ch. 43, par. 115)
7 Sec. 5-1. Licenses issued by the Illinois Liquor Control
8Commission shall be of the following classes:
9 (a) Manufacturer's license - Class 1. Distiller, Class 2.
10Rectifier, Class 3. Brewer, Class 4. First Class Wine
11Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
12First Class Winemaker, Class 7. Second Class Winemaker, Class
138. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
1410. Class 1 Brewer, Class 11. Class 2 Brewer,
15 (b) Distributor's license,
16 (c) Importing Distributor's license,
17 (d) Retailer's license,
18 (e) Special Event Retailer's license (not-for-profit),
19 (f) Railroad license,
20 (g) Boat license,
21 (h) Non-Beverage User's license,
22 (i) Wine-maker's premises license,
23 (j) Airplane license,

HB3853- 2 -LRB100 08301 RPS 18403 b
1 (k) Foreign importer's license,
2 (l) Broker's license,
3 (m) Non-resident dealer's license,
4 (n) Brew Pub license,
5 (o) Auction liquor license,
6 (p) Caterer retailer license,
7 (q) Special use permit license,
8 (r) Winery shipper's license,
9 (s) Craft distiller tasting permit.
10 No person, firm, partnership, corporation, or other legal
11business entity that is engaged in the manufacturing of wine
12may concurrently obtain and hold a wine-maker's license and a
13wine manufacturer's license.
14 (a) A manufacturer's license shall allow the manufacture,
15importation in bulk, storage, distribution and sale of
16alcoholic liquor to persons without the State, as may be
17permitted by law and to licensees in this State as follows:
18 Class 1. A Distiller may make sales and deliveries of
19alcoholic liquor to distillers, rectifiers, importing
20distributors, distributors and non-beverage users and to no
21other licensees.
22 Class 2. A Rectifier, who is not a distiller, as defined
23herein, may make sales and deliveries of alcoholic liquor to
24rectifiers, importing distributors, distributors, retailers
25and non-beverage users and to no other licensees.
26 Class 3. A Brewer may make sales and deliveries of beer to

HB3853- 3 -LRB100 08301 RPS 18403 b
1importing distributors and distributors and may make sales as
2authorized under subsection (e) of Section 6-4 of this Act.
3 Class 4. A first class wine-manufacturer may make sales and
4deliveries of up to 50,000 gallons of wine to manufacturers,
5importing distributors and distributors, and to no other
6licensees.
7 Class 5. A second class Wine manufacturer may make sales
8and deliveries of more than 50,000 gallons of wine to
9manufacturers, importing distributors and distributors and to
10no other licensees.
11 Class 6. A first-class wine-maker's license shall allow the
12manufacture of up to 50,000 gallons of wine per year, and the
13storage and sale of such wine to distributors in the State and
14to persons without the State, as may be permitted by law. A
15person who, prior to June 1, 2008 (the effective date of Public
16Act 95-634), is a holder of a first-class wine-maker's license
17and annually produces more than 25,000 gallons of its own wine
18and who distributes its wine to licensed retailers shall cease
19this practice on or before July 1, 2008 in compliance with
20Public Act 95-634.
21 Class 7. A second-class wine-maker's license shall allow
22the manufacture of between 50,000 and 150,000 gallons of wine
23per year, and the storage and sale of such wine to distributors
24in this State and to persons without the State, as may be
25permitted by law. A person who, prior to June 1, 2008 (the
26effective date of Public Act 95-634), is a holder of a

HB3853- 4 -LRB100 08301 RPS 18403 b
1second-class wine-maker's license and annually produces more
2than 25,000 gallons of its own wine and who distributes its
3wine to licensed retailers shall cease this practice on or
4before July 1, 2008 in compliance with Public Act 95-634.
5 Class 8. A limited wine-manufacturer may make sales and
6deliveries not to exceed 40,000 gallons of wine per year to
7distributors, and to non-licensees in accordance with the
8provisions of this Act.
9 Class 9. A craft distiller license shall allow the
10manufacture of up to 100,000 March 1, 2013 (Public Act 97-1166)
11gallons of spirits by distillation per year and the storage of
12such spirits. If a craft distiller licensee, including a craft
13distiller licensee who holds more than one craft distiller
14license, is not affiliated with any other manufacturer of
15spirits, then the craft distiller licensee may sell such
16spirits to distributors in this State and up to 2,500 gallons
17of such spirits to non-licensees to the extent permitted by any
18exemption approved by the Commission pursuant to Section 6-4 of
19this Act. A craft distiller license holder may store such
20spirits at a non-contiguous licensed location, but at no time
21shall a craft distiller license holder directly or indirectly
22produce in the aggregate more than 100,000 gallons of spirits
23per year.
24 A craft distiller licensee may hold more than one craft
25distiller's license. However, a craft distiller that holds more
26than one craft distiller license shall not manufacture, in the

HB3853- 5 -LRB100 08301 RPS 18403 b
1aggregate, more than 100,000 gallons of spirits by distillation
2per year and shall not sell, in the aggregate, more than 2,500
3gallons of such spirits to non-licensees in accordance with an
4exemption approved by the State Commission pursuant to Section
56-4 of this Act.
6 Any craft distiller licensed under this Act who on July 28,
72010 (the effective date of Public Act 96-1367) was licensed as
8a distiller and manufactured no more spirits than permitted by
9this Section shall not be required to pay the initial licensing
10fee.
11 Class 10. A class 1 brewer license, which may only be
12issued to a licensed brewer or licensed non-resident dealer,
13shall allow the manufacture of up to 930,000 gallons of beer
14per year provided that the class 1 brewer licensee does not
15manufacture more than a combined 930,000 gallons of beer per
16year and is not a member of or affiliated with, directly or
17indirectly, a manufacturer that produces more than 930,000
18gallons of beer per year or any other alcoholic liquor. A class
191 brewer licensee may make sales and deliveries to importing
20distributors and distributors and to retail licensees in
21accordance with the conditions set forth in paragraph (18) of
22subsection (a) of Section 3-12 of this Act.
23 Class 11. A class 2 brewer license, which may only be
24issued to a licensed brewer or licensed non-resident dealer,
25shall allow the manufacture of up to 3,720,000 gallons of beer
26per year provided that the class 2 brewer licensee does not

HB3853- 6 -LRB100 08301 RPS 18403 b
1manufacture more than a combined 3,720,000 gallons of beer per
2year and is not a member of or affiliated with, directly or
3indirectly, a manufacturer that produces more than 3,720,000
4gallons of beer per year or any other alcoholic liquor. A class
52 brewer licensee may make sales and deliveries to importing
6distributors and distributors, but shall not make sales or
7deliveries to any other licensee. If the State Commission
8provides prior approval, a class 2 brewer licensee may annually
9transfer up to 3,720,000 gallons of beer manufactured by that
10class 2 brewer licensee to the premises of a licensed class 2
11brewer wholly owned and operated by the same licensee.
12 (a-1) A manufacturer which is licensed in this State to
13make sales or deliveries of alcoholic liquor to licensed
14distributors or importing distributors and which enlists
15agents, representatives, or individuals acting on its behalf
16who contact licensed retailers on a regular and continual basis
17in this State must register those agents, representatives, or
18persons acting on its behalf with the State Commission.
19 Registration of agents, representatives, or persons acting
20on behalf of a manufacturer is fulfilled by submitting a form
21to the Commission. The form shall be developed by the
22Commission and shall include the name and address of the
23applicant, the name and address of the manufacturer he or she
24represents, the territory or areas assigned to sell to or
25discuss pricing terms of alcoholic liquor, and any other
26questions deemed appropriate and necessary. All statements in

HB3853- 7 -LRB100 08301 RPS 18403 b
1the forms required to be made by law or by rule shall be deemed
2material, and any person who knowingly misstates any material
3fact under oath in an application is guilty of a Class B
4misdemeanor. Fraud, misrepresentation, false statements,
5misleading statements, evasions, or suppression of material
6facts in the securing of a registration are grounds for
7suspension or revocation of the registration. The State
8Commission shall post a list of registered agents on the
9Commission's website.
10 (b) A distributor's license shall allow the wholesale
11purchase and storage of alcoholic liquors and sale of alcoholic
12liquors to licensees in this State and to persons without the
13State, as may be permitted by law. No person licensed as a
14distributor shall be granted a non-resident dealer's license.
15 (c) An importing distributor's license may be issued to and
16held by those only who are duly licensed distributors, upon the
17filing of an application by a duly licensed distributor, with
18the Commission and the Commission shall, without the payment of
19any fee, immediately issue such importing distributor's
20license to the applicant, which shall allow the importation of
21alcoholic liquor by the licensee into this State from any point
22in the United States outside this State, and the purchase of
23alcoholic liquor in barrels, casks or other bulk containers and
24the bottling of such alcoholic liquors before resale thereof,
25but all bottles or containers so filled shall be sealed,
26labeled, stamped and otherwise made to comply with all

HB3853- 8 -LRB100 08301 RPS 18403 b
1provisions, rules and regulations governing manufacturers in
2the preparation and bottling of alcoholic liquors. The
3importing distributor's license shall permit such licensee to
4purchase alcoholic liquor from Illinois licensed non-resident
5dealers and foreign importers only. No person licensed as an
6importing distributor shall be granted a non-resident dealer's
7license.
8 (d) A retailer's license shall allow the licensee to sell
9and offer for sale at retail, only in the premises specified in
10the license, alcoholic liquor for use or consumption, but not
11for resale in any form. Nothing in Public Act 95-634 shall
12deny, limit, remove, or restrict the ability of a holder of a
13retailer's license to transfer, deliver, or ship alcoholic
14liquor to the purchaser for use or consumption subject to any
15applicable local law or ordinance. Any retail license issued to
16a manufacturer shall only permit the manufacturer to sell beer
17at retail on the premises actually occupied by the
18manufacturer. For the purpose of further describing the type of
19business conducted at a retail licensed premises, a retailer's
20licensee may be designated by the State Commission as (i) an on
21premise consumption retailer, (ii) an off premise sale
22retailer, or (iii) a combined on premise consumption and off
23premise sale retailer.
24 Notwithstanding any other provision of this subsection
25(d), a retail licensee may sell alcoholic liquors to a special
26event retailer licensee for resale to the extent permitted

HB3853- 9 -LRB100 08301 RPS 18403 b
1under subsection (e).
2 (e) A special event retailer's license (not-for-profit)
3shall permit the licensee to purchase alcoholic liquors from an
4Illinois licensed distributor (unless the licensee purchases
5less than $500 of alcoholic liquors for the special event, in
6which case the licensee may purchase the alcoholic liquors from
7a licensed retailer) and shall allow the licensee to sell and
8offer for sale, at retail, alcoholic liquors for use or
9consumption, but not for resale in any form and only at the
10location and on the specific dates designated for the special
11event in the license. An applicant for a special event retailer
12license must (i) furnish with the application: (A) a resale
13number issued under Section 2c of the Retailers' Occupation Tax
14Act or evidence that the applicant is registered under Section
152a of the Retailers' Occupation Tax Act, (B) a current, valid
16exemption identification number issued under Section 1g of the
17Retailers' Occupation Tax Act, and a certification to the
18Commission that the purchase of alcoholic liquors will be a
19tax-exempt purchase, or (C) a statement that the applicant is
20not registered under Section 2a of the Retailers' Occupation
21Tax Act, does not hold a resale number under Section 2c of the
22Retailers' Occupation Tax Act, and does not hold an exemption
23number under Section 1g of the Retailers' Occupation Tax Act,
24in which event the Commission shall set forth on the special
25event retailer's license a statement to that effect; (ii)
26submit with the application proof satisfactory to the State

HB3853- 10 -LRB100 08301 RPS 18403 b
1Commission that the applicant will provide dram shop liability
2insurance in the maximum limits; and (iii) show proof
3satisfactory to the State Commission that the applicant has
4obtained local authority approval.
5 (f) A railroad license shall permit the licensee to import
6alcoholic liquors into this State from any point in the United
7States outside this State and to store such alcoholic liquors
8in this State; to make wholesale purchases of alcoholic liquors
9directly from manufacturers, foreign importers, distributors
10and importing distributors from within or outside this State;
11and to store such alcoholic liquors in this State; provided
12that the above powers may be exercised only in connection with
13the importation, purchase or storage of alcoholic liquors to be
14sold or dispensed on a club, buffet, lounge or dining car
15operated on an electric, gas or steam railway in this State;
16and provided further, that railroad licensees exercising the
17above powers shall be subject to all provisions of Article VIII
18of this Act as applied to importing distributors. A railroad
19license shall also permit the licensee to sell or dispense
20alcoholic liquors on any club, buffet, lounge or dining car
21operated on an electric, gas or steam railway regularly
22operated by a common carrier in this State, but shall not
23permit the sale for resale of any alcoholic liquors to any
24licensee within this State. A license shall be obtained for
25each car in which such sales are made.
26 (g) A boat license shall allow the sale of alcoholic liquor

HB3853- 11 -LRB100 08301 RPS 18403 b
1in individual drinks, on any passenger boat regularly operated
2as a common carrier on navigable waters in this State or on any
3riverboat operated under the Riverboat Gambling Act, which boat
4or riverboat maintains a public dining room or restaurant
5thereon.
6 (h) A non-beverage user's license shall allow the licensee
7to purchase alcoholic liquor from a licensed manufacturer or
8importing distributor, without the imposition of any tax upon
9the business of such licensed manufacturer or importing
10distributor as to such alcoholic liquor to be used by such
11licensee solely for the non-beverage purposes set forth in
12subsection (a) of Section 8-1 of this Act, and such licenses
13shall be divided and classified and shall permit the purchase,
14possession and use of limited and stated quantities of
15alcoholic liquor as follows:
16Class 1, not to exceed ......................... 500 gallons
17Class 2, not to exceed ....................... 1,000 gallons
18Class 3, not to exceed ....................... 5,000 gallons
19Class 4, not to exceed ...................... 10,000 gallons
20Class 5, not to exceed ....................... 50,000 gallons
21 (i) A wine-maker's premises license shall allow a licensee
22that concurrently holds a first-class wine-maker's license to
23sell and offer for sale at retail in the premises specified in
24such license not more than 50,000 gallons of the first-class
25wine-maker's wine that is made at the first-class wine-maker's
26licensed premises per year for use or consumption, but not for

HB3853- 12 -LRB100 08301 RPS 18403 b
1resale in any form. A wine-maker's premises license shall allow
2a licensee who concurrently holds a second-class wine-maker's
3license to sell and offer for sale at retail in the premises
4specified in such license up to 100,000 gallons of the
5second-class wine-maker's wine that is made at the second-class
6wine-maker's licensed premises per year for use or consumption
7but not for resale in any form. A wine-maker's premises license
8shall allow a licensee that concurrently holds a first-class
9wine-maker's license or a second-class wine-maker's license to
10sell and offer for sale at retail at the premises specified in
11the wine-maker's premises license, for use or consumption but
12not for resale in any form, any beer, wine, and spirits
13purchased from a licensed distributor. Upon approval from the
14State Commission, a wine-maker's premises license shall allow
15the licensee to sell and offer for sale at (i) the wine-maker's
16licensed premises and (ii) at up to 2 additional locations for
17use and consumption and not for resale. Each location shall
18require additional licensing per location as specified in
19Section 5-3 of this Act. A wine-maker's premises licensee shall
20secure liquor liability insurance coverage in an amount at
21least equal to the maximum liability amounts set forth in
22subsection (a) of Section 6-21 of this Act.
23 (j) An airplane license shall permit the licensee to import
24alcoholic liquors into this State from any point in the United
25States outside this State and to store such alcoholic liquors
26in this State; to make wholesale purchases of alcoholic liquors

HB3853- 13 -LRB100 08301 RPS 18403 b
1directly from manufacturers, foreign importers, distributors
2and importing distributors from within or outside this State;
3and to store such alcoholic liquors in this State; provided
4that the above powers may be exercised only in connection with
5the importation, purchase or storage of alcoholic liquors to be
6sold or dispensed on an airplane; and provided further, that
7airplane licensees exercising the above powers shall be subject
8to all provisions of Article VIII of this Act as applied to
9importing distributors. An airplane licensee shall also permit
10the sale or dispensing of alcoholic liquors on any passenger
11airplane regularly operated by a common carrier in this State,
12but shall not permit the sale for resale of any alcoholic
13liquors to any licensee within this State. A single airplane
14license shall be required of an airline company if liquor
15service is provided on board aircraft in this State. The annual
16fee for such license shall be as determined in Section 5-3.
17 (k) A foreign importer's license shall permit such licensee
18to purchase alcoholic liquor from Illinois licensed
19non-resident dealers only, and to import alcoholic liquor other
20than in bulk from any point outside the United States and to
21sell such alcoholic liquor to Illinois licensed importing
22distributors and to no one else in Illinois; provided that (i)
23the foreign importer registers with the State Commission every
24brand of alcoholic liquor that it proposes to sell to Illinois
25licensees during the license period, (ii) the foreign importer
26complies with all of the provisions of Section 6-9 of this Act

HB3853- 14 -LRB100 08301 RPS 18403 b
1with respect to registration of such Illinois licensees as may
2be granted the right to sell such brands at wholesale, and
3(iii) the foreign importer complies with the provisions of
4Sections 6-5 and 6-6 of this Act to the same extent that these
5provisions apply to manufacturers.
6 (l) (i) A broker's license shall be required of all persons
7who solicit orders for, offer to sell or offer to supply
8alcoholic liquor to retailers in the State of Illinois, or who
9offer to retailers to ship or cause to be shipped or to make
10contact with distillers, rectifiers, brewers or manufacturers
11or any other party within or without the State of Illinois in
12order that alcoholic liquors be shipped to a distributor,
13importing distributor or foreign importer, whether such
14solicitation or offer is consummated within or without the
15State of Illinois.
16 No holder of a retailer's license issued by the Illinois
17Liquor Control Commission shall purchase or receive any
18alcoholic liquor, the order for which was solicited or offered
19for sale to such retailer by a broker unless the broker is the
20holder of a valid broker's license.
21 The broker shall, upon the acceptance by a retailer of the
22broker's solicitation of an order or offer to sell or supply or
23deliver or have delivered alcoholic liquors, promptly forward
24to the Illinois Liquor Control Commission a notification of
25said transaction in such form as the Commission may by
26regulations prescribe.

HB3853- 15 -LRB100 08301 RPS 18403 b
1 (ii) A broker's license shall be required of a person
2within this State, other than a retail licensee, who, for a fee
3or commission, promotes, solicits, or accepts orders for
4alcoholic liquor, for use or consumption and not for resale, to
5be shipped from this State and delivered to residents outside
6of this State by an express company, common carrier, or
7contract carrier. This Section does not apply to any person who
8promotes, solicits, or accepts orders for wine as specifically
9authorized in Section 6-29 of this Act.
10 A broker's license under this subsection (l) shall not
11entitle the holder to buy or sell any alcoholic liquors for his
12own account or to take or deliver title to such alcoholic
13liquors.
14 This subsection (l) shall not apply to distributors,
15employees of distributors, or employees of a manufacturer who
16has registered the trademark, brand or name of the alcoholic
17liquor pursuant to Section 6-9 of this Act, and who regularly
18sells such alcoholic liquor in the State of Illinois only to
19its registrants thereunder.
20 Any agent, representative, or person subject to
21registration pursuant to subsection (a-1) of this Section shall
22not be eligible to receive a broker's license.
23 (m) A non-resident dealer's license shall permit such
24licensee to ship into and warehouse alcoholic liquor into this
25State from any point outside of this State, and to sell such
26alcoholic liquor to Illinois licensed foreign importers and

HB3853- 16 -LRB100 08301 RPS 18403 b
1importing distributors and to no one else in this State;
2provided that (i) said non-resident dealer shall register with
3the Illinois Liquor Control Commission each and every brand of
4alcoholic liquor which it proposes to sell to Illinois
5licensees during the license period, (ii) it shall comply with
6all of the provisions of Section 6-9 hereof with respect to
7registration of such Illinois licensees as may be granted the
8right to sell such brands at wholesale, and (iii) the
9non-resident dealer shall comply with the provisions of
10Sections 6-5 and 6-6 of this Act to the same extent that these
11provisions apply to manufacturers. No person licensed as a
12non-resident dealer shall be granted a distributor's or
13importing distributor's license.
14 (n) A brew pub license shall allow the licensee to only (i)
15manufacture up to 155,000 gallons of beer per year only on the
16premises specified in the license, (ii) make sales of the beer
17manufactured on the premises or, with the approval of the
18Commission, beer manufactured on another brew pub licensed
19premises that is wholly owned and operated by the same licensee
20to importing distributors, distributors, and to non-licensees
21for use and consumption, (iii) store the beer upon the
22premises, (iv) sell and offer for sale at retail from the
23licensed premises for off-premises consumption no more than
24155,000 gallons per year so long as such sales are only made
25in-person, (v) sell and offer for sale at retail for use and
26consumption on the premises specified in the license any form

HB3853- 17 -LRB100 08301 RPS 18403 b
1of alcoholic liquor purchased from a licensed distributor or
2importing distributor, and (vi) with the prior approval of the
3Commission, annually transfer no more than 155,000 gallons of
4beer manufactured on the premises to a licensed brew pub wholly
5owned and operated by the same licensee.
6 A brew pub licensee shall not under any circumstance sell
7or offer for sale beer manufactured by the brew pub licensee to
8retail licensees.
9 A person who holds a class 2 brewer license may
10simultaneously hold a brew pub license if the class 2 brewer
11(i) does not, under any circumstance, sell or offer for sale
12beer manufactured by the class 2 brewer to retail licensees;
13(ii) does not hold more than 3 brew pub licenses in this State;
14(iii) does not manufacture more than a combined 3,720,000
15gallons of beer per year, including the beer manufactured at
16the brew pub; and (iv) is not a member of or affiliated with,
17directly or indirectly, a manufacturer that produces more than
183,720,000 gallons of beer per year or any other alcoholic
19liquor.
20 Notwithstanding any other provision of this Act, a licensed
21brewer, class 2 brewer, or non-resident dealer who before July
221, 2015 manufactured less than 3,720,000 gallons of beer per
23year and held a brew pub license on or before July 1, 2015 may
24(i) continue to qualify for and hold that brew pub license for
25the licensed premises and (ii) manufacture more than 3,720,000
26gallons of beer per year and continue to qualify for and hold

HB3853- 18 -LRB100 08301 RPS 18403 b
1that brew pub license if that brewer, class 2 brewer, or
2non-resident dealer does not simultaneously hold a class 1
3brewer license and is not a member of or affiliated with,
4directly or indirectly, a manufacturer that produces more than
53,720,000 gallons of beer per year or that produces any other
6alcoholic liquor.
7 (o) A caterer retailer license shall allow the holder to
8serve alcoholic liquors as an incidental part of a food service
9that serves prepared meals which excludes the serving of snacks
10as the primary meal, either on or off-site whether licensed or
11unlicensed.
12 (p) An auction liquor license shall allow the licensee to
13sell and offer for sale at auction wine and spirits for use or
14consumption, or for resale by an Illinois liquor licensee in
15accordance with provisions of this Act. An auction liquor
16license will be issued to a person and it will permit the
17auction liquor licensee to hold the auction anywhere in the
18State. An auction liquor license must be obtained for each
19auction at least 14 days in advance of the auction date.
20 (q) A special use permit license shall allow an Illinois
21licensed retailer to transfer a portion of its alcoholic liquor
22inventory from its retail licensed premises to the premises
23specified in the license hereby created, and to sell or offer
24for sale at retail, only in the premises specified in the
25license hereby created, the transferred alcoholic liquor for
26use or consumption, but not for resale in any form. A special

HB3853- 19 -LRB100 08301 RPS 18403 b
1use permit license may be granted for the following time
2periods: one day or less; 2 or more days to a maximum of 15 days
3per location in any 12-month 12 month period. An applicant for
4the special use permit license must also submit with the
5application proof satisfactory to the State Commission that the
6applicant will provide dram shop liability insurance to the
7maximum limits and have local authority approval.
8 (r) A winery shipper's license shall allow a person with a
9first-class or second-class wine manufacturer's license, a
10first-class or second-class wine-maker's license, or a limited
11wine manufacturer's license or who is licensed to make wine
12under the laws of another state to ship wine made by that
13licensee directly to a resident of this State who is 21 years
14of age or older for that resident's personal use and not for
15resale. Prior to receiving a winery shipper's license, an
16applicant for the license must provide the Commission with a
17true copy of its current license in any state in which it is
18licensed as a manufacturer of wine. An applicant for a winery
19shipper's license must also complete an application form that
20provides any other information the Commission deems necessary.
21The application form shall include all addresses from which the
22applicant for a winery shipper's license intends to ship wine,
23including the name and address of any third party, except for a
24common carrier, authorized to ship wine on behalf of the
25manufacturer. The application form shall include an
26acknowledgement consenting to the jurisdiction of the

HB3853- 20 -LRB100 08301 RPS 18403 b
1Commission, the Illinois Department of Revenue, and the courts
2of this State concerning the enforcement of this Act and any
3related laws, rules, and regulations, including authorizing
4the Department of Revenue and the Commission to conduct audits
5for the purpose of ensuring compliance with Public Act 95-634,
6and an acknowledgement that the wine manufacturer is in
7compliance with Section 6-2 of this Act. Any third party,
8except for a common carrier, authorized to ship wine on behalf
9of a first-class or second-class wine manufacturer's licensee,
10a first-class or second-class wine-maker's licensee, a limited
11wine manufacturer's licensee, or a person who is licensed to
12make wine under the laws of another state shall also be
13disclosed by the winery shipper's licensee, and a copy of the
14written appointment of the third-party wine provider, except
15for a common carrier, to the wine manufacturer shall be filed
16with the State Commission as a supplement to the winery
17shipper's license application or any renewal thereof. The
18winery shipper's license holder shall affirm under penalty of
19perjury, as part of the winery shipper's license application or
20renewal, that he or she only ships wine, either directly or
21indirectly through a third-party provider, from the licensee's
22own production.
23 Except for a common carrier, a third-party provider
24shipping wine on behalf of a winery shipper's license holder is
25the agent of the winery shipper's license holder and, as such,
26a winery shipper's license holder is responsible for the acts

HB3853- 21 -LRB100 08301 RPS 18403 b
1and omissions of the third-party provider acting on behalf of
2the license holder. A third-party provider, except for a common
3carrier, that engages in shipping wine into Illinois on behalf
4of a winery shipper's license holder shall consent to the
5jurisdiction of the State Commission and the State. Any
6third-party, except for a common carrier, holding such an
7appointment shall, by February 1 of each calendar year and upon
8request by the State Commission or the Department of Revenue,
9file with the State Commission a statement detailing each
10shipment made to an Illinois resident. The statement shall
11include the name and address of the third-party provider filing
12the statement, the time period covered by the statement, and
13the following information:
14 (1) the name, address, and license number of the winery
15 shipper on whose behalf the shipment was made;
16 (2) the quantity, point of origin, and retail value of
17 the products delivered;
18 (3) the number of cases, the types and brands of wine
19 delivered, and the size of the bottles;
20 (4) the date, time, and address of both the shipment
21 and the delivery; and
22 (5) the name of the individual 21 years of age or more
23 to whom the delivery was made, including a copy or
24 electronic copy of that individual's signature and a
25 chronological account of the third-party provider's
26 dealings with that individual.

HB3853- 22 -LRB100 08301 RPS 18403 b
1If the Department of Revenue or the State Commission requests a
2statement under this paragraph, the third-party provider must
3provide that statement no later than 30 days after the request
4is made. Any books, records, supporting papers, and documents
5containing information and data relating to a statement under
6this paragraph shall be kept and preserved for a period of 3
7years, unless their destruction sooner is authorized, in
8writing, by the Director of Revenue, and shall be open and
9available to inspection by the Director of Revenue or the State
10Commission or any duly authorized officer, agent, or employee
11of the State Commission or the Department of Revenue, at all
12times during business hours of the day. Any person who violates
13any provision of this paragraph or any rule of the State
14Commission for the administration and enforcement of the
15provisions of this paragraph is guilty of a Class C
16misdemeanor. In case of a continuing violation, each day's
17continuance thereof shall be a separate and distinct offense.
18 Before any employee of a third-party provider transports
19any wine within or into this State, that employee shall post
20with the State Commission a bond with approved surety payable
21to the State in the penalty of $1,000 upon the condition that
22the person will not unlawfully transport or deliver any
23alcoholic liquors within or into this State. Evidence that the
24required bond has been posted shall accompany the wine at all
25times during transportation. The driver or person in charge of
26any vehicle covered by any bond posted with the State

HB3853- 23 -LRB100 08301 RPS 18403 b
1Commission under this subsection shall, when requested by any
2representative or agent of the State Commission or any person
3having police authority, exhibit to such person the bill of
4lading or other memorandum of shipment covering the cargo of
5the vehicle.
6 A third-party provider shall comply with all applicable
7provisions of subsection (a) of Section 6-16. Any vehicle used
8by a third-party provider to transport wine must be owned,
9leased, or under the control of the third-provider or an
10employee of the third-party provider. All wine being
11transported by a third-party provider shall remain unopened in
12accordance with the provisions of Section 11-502 of the
13Illinois Vehicle Code and there shall accompany such wine at
14all times during transportation, a bill of lading or other
15memorandum of shipment signed by the winery shipper's licensee
16showing an exact description of the wine being transported, the
17name and address of the consignor, the name and address of the
18consignee, and the route to be traveled by the vehicle
19transporting the wine. The route must be the most direct route
20from the consignor's place of business to the consignee. The
21third-party provider transporting the wine shall not vary from
22the route specified in the bill of lading or other memorandum
23of shipment, unless there are extenuating circumstances
24blocking the passage of the route, such as construction or
25manmade or natural obstructions on a road. Extenuating
26circumstances do not include momentary obstructions, such as a

HB3853- 24 -LRB100 08301 RPS 18403 b
1passing train or train momentarily delayed on the tracks,
2traffic jam, animal crossing, weather-caused delays, or other
3similar obstructions.
4 Payment for any wine shipped by a third-party provider
5shall be received no later than at the time of delivery, and,
6as a condition of delivery, a third-party provider shall obtain
7the signature, which may be obtained by using an electronic
8signature system, of a person 21 years of age or more who has
9demonstrated his or her age by providing a valid motor vehicle
10operator's license, Illinois identification card issued under
11the Illinois Identification Card Act, or other similar
12identification document issued by a federal or state
13government. In each shipment of wine, the third-party provider
14shall include written information concerning fetal alcohol
15syndrome and fetal alcohol effects resulting from a woman
16consuming alcohol during pregnancy. A third-party provider
17shall not deliver wine outside the hours of lawful service of
18alcoholic liquor in accordance with any applicable law or
19ordinance and shall not deliver wine to a person who is under
20the age of 21 or is intoxicated or simulating intoxication.
21 The State Commission shall adopt rules as soon as
22practicable to implement the requirements of Public Act 99-904
23this amendatory Act of the 99th General Assembly and shall
24adopt rules prohibiting any such third-party appointment of a
25third-party provider, except for a common carrier, that has
26been deemed by the State Commission to have violated the

HB3853- 25 -LRB100 08301 RPS 18403 b
1provisions of this Act with regard to any winery shipper
2licensee.
3 A winery shipper licensee must pay to the Department of
4Revenue the State liquor gallonage tax under Section 8-1 for
5all wine that is sold by the licensee and shipped to a person
6in this State. For the purposes of Section 8-1, a winery
7shipper licensee shall be taxed in the same manner as a
8manufacturer of wine. A licensee who is not otherwise required
9to register under the Retailers' Occupation Tax Act must
10register under the Use Tax Act to collect and remit use tax to
11the Department of Revenue for all gallons of wine that are sold
12by the licensee and shipped to persons in this State. If a
13licensee fails to remit the tax imposed under this Act in
14accordance with the provisions of Article VIII of this Act, the
15winery shipper's license shall be revoked in accordance with
16the provisions of Article VII of this Act. If a licensee fails
17to properly register and remit tax under the Use Tax Act or the
18Retailers' Occupation Tax Act for all wine that is sold by the
19winery shipper and shipped to persons in this State, the winery
20shipper's license shall be revoked in accordance with the
21provisions of Article VII of this Act.
22 A winery shipper licensee must collect, maintain, and
23submit to the Commission on a semi-annual basis the total
24number of cases per resident of wine shipped to residents of
25this State. A winery shipper licensed under this subsection (r)
26must comply with the requirements of Section 6-29 of this Act.

HB3853- 26 -LRB100 08301 RPS 18403 b
1 Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
2Section 3-12, the State Commission may receive, respond to, and
3investigate any complaint and impose any of the remedies
4specified in paragraph (1) of subsection (a) of Section 3-12.
5 As used in this subsection, "third-party provider" means
6any entity, except for common carriers, that the winery
7shipper's licensee does not own or that is not a subsidiary of
8the winery shipper's licensee and that contracts with, either
9through a retention or service plan or on a per-delivery basis,
10to deliver wine to a consumer who has made a purchase of wine
11through the winery shipper's licensee.
12 (s) A craft distiller tasting permit license shall allow an
13Illinois licensed craft distiller to transfer a portion of its
14alcoholic liquor inventory from its craft distiller licensed
15premises to the premises specified in the license hereby
16created and to conduct a sampling, only in the premises
17specified in the license hereby created, of the transferred
18alcoholic liquor in accordance with subsection (c) of Section
196-31 of this Act. The transferred alcoholic liquor may not be
20sold or resold in any form. An applicant for the craft
21distiller tasting permit license must also submit with the
22application proof satisfactory to the State Commission that the
23applicant will provide dram shop liability insurance to the
24maximum limits and have local authority approval.
25(Source: P.A. 98-394, eff. 8-16-13; 98-401, eff. 8-16-13;
2698-756, eff. 7-16-14; 99-448, eff. 8-24-15; 99-642, eff.

HB3853- 27 -LRB100 08301 RPS 18403 b
17-28-16; 99-800, eff. 8-12-16; 99-902, eff. 8-26-16; 99-904,
2eff. 1-1-17; revised 9-15-16.)
3 (235 ILCS 5/10-1) (from Ch. 43, par. 183)
4 Sec. 10-1. Violations; penalties. Whereas a substantial
5threat to the sound and careful control, regulation, and
6taxation of the manufacture, sale, and distribution of
7alcoholic liquors exists by virtue of individuals who
8manufacture, import, distribute, or sell alcoholic liquors
9within the State without having first obtained a valid license
10to do so, and whereas such threat is especially serious along
11the borders of this State, and whereas such threat requires
12immediate correction by this Act, by active investigation and
13prosecution by law enforcement officials and prosecutors, and
14by prompt and strict enforcement through the courts of this
15State to punish violators and to deter such conduct in the
16future:
17 (a) Any person who manufactures, imports for distribution
18or use, transports from outside this State into this State, or
19distributes or sells 108 liters (28.53 gallons) or more of
20wine, 45 liters (11.88 gallons) or more of distilled spirits,
21or 118 liters (31.17 gallons) or more of beer at any place
22within the State without having first obtained a valid license
23to do so under the provisions of this Act shall be guilty of a
24Class 4 felony for each offense. However, any person who was
25duly licensed under this Act and whose license expired within

HB3853- 28 -LRB100 08301 RPS 18403 b
130 days prior to a violation shall be guilty of a business
2offense and fined not more than $1,000 for the first such
3offense and shall be guilty of a Class 4 felony for each
4subsequent offense.
5 Any person who manufactures, imports for distribution,
6transports from outside this State into this State for sale or
7resale in this State, or distributes or sells less than 108
8liters (28.53 gallons) of wine, less than 45 liters (11.88
9gallons) of distilled spirits, or less than 118 liters (31.17
10gallons) of beer at any place within the State without having
11first obtained a valid license to do so under the provisions of
12this Act shall be guilty of a business offense and fined not
13more than $1,000 for the first such offense and shall be guilty
14of a Class 4 felony for each subsequent offense. This
15subsection does not apply to a motor carrier or freight
16forwarder, as defined in Section 13102 of Title 49 of the
17United States Code, an air carrier, as defined in Section 40102
18of Title 49 of the United States Code, or a rail carrier, as
19defined in Section 10102 of Title 49 of the United States Code,
20or a third-party provider, as defined in subsection (r) of
21Section 5-1 of this Act.
22 Any person who both has been issued an initial cease and
23desist notice from the State Commission and for compensation
24ships alcoholic liquor into this State without a license
25authorized by Section 5-1 issued by the State Commission or in
26violation of that license is guilty of a Class 4 felony for

HB3853- 29 -LRB100 08301 RPS 18403 b
1each offense.
2 (b) (1) Any retailer, licensed in this State, who knowingly
3causes to furnish, give, sell, or otherwise being within the
4State, any alcoholic liquor destined to be used, distributed,
5consumed or sold in another state, unless such alcoholic liquor
6was received in this State by a duly licensed distributor, or
7importing distributors shall have his license suspended for 7
8days for the first offense and for the second offense, shall
9have his license revoked by the Commission.
10 (2) In the event the Commission receives a certified copy
11of a final order from a foreign jurisdiction that an Illinois
12retail licensee has been found to have violated that foreign
13jurisdiction's laws, rules, or regulations concerning the
14importation of alcoholic liquor into that foreign
15jurisdiction, the violation may be grounds for the Commission
16to revoke, suspend, or refuse to issue or renew a license, to
17impose a fine, or to take any additional action provided by
18this Act with respect to the Illinois retail license or
19licensee. Any such action on the part of the Commission shall
20be in accordance with this Act and implementing rules.
21 For the purposes of paragraph (2): (i) "foreign
22jurisdiction" means a state, territory, or possession of the
23United States, the District of Columbia, or the Commonwealth of
24Puerto Rico, and (ii) "final order" means an order or judgment
25of a court or administrative body that determines the rights of
26the parties respecting the subject matter of the proceeding,

HB3853- 30 -LRB100 08301 RPS 18403 b
1that remains in full force and effect, and from which no appeal
2can be taken.
3 (c) Any person who shall make any false statement or
4otherwise violates any of the provisions of this Act in
5obtaining any license hereunder, or who having obtained a
6license hereunder shall violate any of the provisions of this
7Act with respect to the manufacture, possession, distribution
8or sale of alcoholic liquor, or with respect to the maintenance
9of the licensed premises, or shall violate any other provision
10of this Act, shall for a first offense be guilty of a petty
11offense and fined not more than $500, and for a second or
12subsequent offense shall be guilty of a Class B misdemeanor.
13 (c-5) Any owner of an establishment that serves alcohol on
14its premises, if more than 50% of the establishment's gross
15receipts within the prior 3 months is from the sale of alcohol,
16who knowingly fails to prohibit concealed firearms on its
17premises or who knowingly makes a false statement or record to
18avoid the prohibition of concealed firearms on its premises
19under the Firearm Concealed Carry Act shall be guilty of a
20business offense with a fine up to $5,000.
21 (d) Each day any person engages in business as a
22manufacturer, foreign importer, importing distributor,
23distributor or retailer in violation of the provisions of this
24Act shall constitute a separate offense.
25 (e) Any person, under the age of 21 years who, for the
26purpose of buying, accepting or receiving alcoholic liquor from

HB3853- 31 -LRB100 08301 RPS 18403 b
1a licensee, represents that he is 21 years of age or over shall
2be guilty of a Class A misdemeanor.
3 (f) In addition to the penalties herein provided, any
4person licensed as a wine-maker in either class who
5manufactures more wine than authorized by his license shall be
6guilty of a business offense and shall be fined $1 for each
7gallon so manufactured.
8 (g) A person shall be exempt from prosecution for a
9violation of this Act if he is a peace officer in the
10enforcement of the criminal laws and such activity is approved
11in writing by one of the following:
12 (1) In all counties, the respective State's Attorney;
13 (2) The Director of State Police under Section 2605-10,
14 2605-15, 2605-75, 2605-100, 2605-105, 2605-110, 2605-115,
15 2605-120, 2605-130, 2605-140, 2605-190, 2605-200,
16 2605-205, 2605-210, 2605-215, 2605-250, 2605-275,
17 2605-300, 2605-305, 2605-315, 2605-325, 2605-335,
18 2605-340, 2605-350, 2605-355, 2605-360, 2605-365,
19 2605-375, 2605-390, 2605-400, 2605-405, 2605-420,
20 2605-430, 2605-435, 2605-500, 2605-525, or 2605-550 of the
21 Department of State Police Law (20 ILCS 2605/2605-10,
22 2605/2605-15, 2605/2605-75, 2605/2605-100, 2605/2605-105,
23 2605/2605-110, 2605/2605-115, 2605/2605-120,
24 2605/2605-130, 2605/2605-140, 2605/2605-190,
25 2605/2605-200, 2605/2605-205, 2605/2605-210,
26 2605/2605-215, 2605/2605-250, 2605/2605-275,

HB3853- 32 -LRB100 08301 RPS 18403 b
1 2605/2605-300, 2605/2605-305, 2605/2605-315,
2 2605/2605-325, 2605/2605-335, 2605/2605-340,
3 2605/2605-350, 2605/2605-355, 2605/2605-360,
4 2605/2605-365, 2605/2605-375, 2605/2605-390,
5 2605/2605-400, 2605/2605-405, 2605/2605-420,
6 2605/2605-430, 2605/2605-435, 2605/2605-500,
7 2605/2605-525, or 2605/2605-550); or
8 (3) In cities over 1,000,000, the Superintendent of
9 Police.
10(Source: P.A. 98-63, eff. 7-9-13; 99-904, eff. 1-1-17.)
11 Section 99. Effective date. This Act takes effect upon
12becoming law.
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