Bill Text: IL HB4987 | 2017-2018 | 100th General Assembly | Introduced

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Bill Title: Amends the Liquor Control Act of 1934. Provides that a craft distiller license shall allow the sale and offering for sale at retail for use and consumption on the premises specified in the license any form of alcoholic liquor purchased from a licensed distributor or importing distributor. Provides that a craft distiller may sell up to 5,000 gallons (rather than 2,500 gallons) of spirits to non-licensees to the extent permitted by an exemption approved by the Illinois Liquor Control Commission pursuant to a specified provision. Makes a conforming change. Provides that a craft distiller tasting permit allows a craft distiller to sell and offer for sale at retail, but not for resale in any form, up to 5,000 gallons of the alcoholic liquor transferred from the craft distiller's premises to the extent approved by the State Commission pursuant to a specified provision.

Spectrum: Moderate Partisan Bill (Republican 4-1)

Status: (Failed) 2019-01-08 - Session Sine Die [HB4987 Detail]

Download: Illinois-2017-HB4987-Introduced.html

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100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 HB4987 Introduced , by Rep. Michael J. Zalewski SYNOPSIS AS INTRODUCED:
235 ILCS 5/5-1 from Ch. 43, par. 115
235 ILCS 5/6-4 from Ch. 43, par. 121
Amends the Liquor Control Act of 1934. Provides that a craft distiller license shall allow the sale and offering for sale at retail for use and consumption on the premises specified in the license any form of alcoholic liquor purchased from a licensed distributor or importing distributor. Provides that a craft distiller may sell up to 5,000 gallons (rather than 2,500 gallons) of spirits to non-licensees to the extent permitted by an exemption approved by the Illinois Liquor Control Commission pursuant to a specified provision. Makes a conforming change. Provides that a craft distiller tasting permit allows a craft distiller to sell and offer for sale at retail, but not for resale in any form, up to 5,000 gallons of the alcoholic liquor transferred from the craft distiller's premises to the extent approved by the State Commission pursuant to a specified provision.
LRB100 17460 RPS 32629 b
A BILL FOR
HB4987 LRB100 17460 RPS 32629 b
AN ACT concerning liquor.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Liquor Control Act of 1934 is amended by
changing Sections 5-1 and 6-4 as follows:
(235 ILCS 5/5-1) (from Ch. 43, par. 115)
Sec. 5-1. Licenses issued by the Illinois Liquor Control
Commission shall be of the following classes:
(a) Manufacturer's license - Class 1. Distiller, Class 2.
Rectifier, Class 3. Brewer, Class 4. First Class Wine
Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
First Class Winemaker, Class 7. Second Class Winemaker, Class
8. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
10. Class 1 Brewer, Class 11. Class 2 Brewer,
(b) Distributor's license,
(c) Importing Distributor's license,
(d) Retailer's license,
(e) Special Event Retailer's license (not-for-profit),
(f) Railroad license,
(g) Boat license,
(h) Non-Beverage User's license,
(i) Wine-maker's premises license,
(j) Airplane license,

HB4987 - 2 - LRB100 17460 RPS 32629 b
(k) Foreign importer's license,
(l) Broker's license,
(m) Non-resident dealer's license,
(n) Brew Pub license,
(o) Auction liquor license,
(p) Caterer retailer license,
(q) Special use permit license,
(r) Winery shipper's license,
(s) Craft distiller tasting permit.
No person, firm, partnership, corporation, or other legal
business entity that is engaged in the manufacturing of wine
may concurrently obtain and hold a wine-maker's license and a
wine manufacturer's license.
(a) A manufacturer's license shall allow the manufacture,
importation in bulk, storage, distribution and sale of
alcoholic liquor to persons without the State, as may be
permitted by law and to licensees in this State as follows:
Class 1. A Distiller may make sales and deliveries of
alcoholic liquor to distillers, rectifiers, importing
distributors, distributors and non-beverage users and to no
other licensees.
Class 2. A Rectifier, who is not a distiller, as defined
herein, may make sales and deliveries of alcoholic liquor to
rectifiers, importing distributors, distributors, retailers
and non-beverage users and to no other licensees.
Class 3. A Brewer may make sales and deliveries of beer to

HB4987 - 3 - LRB100 17460 RPS 32629 b
importing distributors and distributors and may make sales as
authorized under subsection (e) of Section 6-4 of this Act.
Class 4. A first class wine-manufacturer may make sales and
deliveries of up to 50,000 gallons of wine to manufacturers,
importing distributors and distributors, and to no other
licensees.
Class 5. A second class Wine manufacturer may make sales
and deliveries of more than 50,000 gallons of wine to
manufacturers, importing distributors and distributors and to
no other licensees.
Class 6. A first-class wine-maker's license shall allow the
manufacture of up to 50,000 gallons of wine per year, and the
storage and sale of such wine to distributors in the State and
to persons without the State, as may be permitted by law. A
person who, prior to June 1, 2008 (the effective date of Public
Act 95-634), is a holder of a first-class wine-maker's license
and annually produces more than 25,000 gallons of its own wine
and who distributes its wine to licensed retailers shall cease
this practice on or before July 1, 2008 in compliance with
Public Act 95-634.
Class 7. A second-class wine-maker's license shall allow
the manufacture of between 50,000 and 150,000 gallons of wine
per year, and the storage and sale of such wine to distributors
in this State and to persons without the State, as may be
permitted by law. A person who, prior to June 1, 2008 (the
effective date of Public Act 95-634), is a holder of a

HB4987 - 4 - LRB100 17460 RPS 32629 b
second-class wine-maker's license and annually produces more
than 25,000 gallons of its own wine and who distributes its
wine to licensed retailers shall cease this practice on or
before July 1, 2008 in compliance with Public Act 95-634.
Class 8. A limited wine-manufacturer may make sales and
deliveries not to exceed 40,000 gallons of wine per year to
distributors, and to non-licensees in accordance with the
provisions of this Act.
Class 9. A craft distiller license shall allow the
manufacture of up to 100,000 gallons of spirits by distillation
per year and the storage of such spirits and shall allow the
sale and offering for sale at retail for use and consumption on
the premises specified in the license any form of alcoholic
liquor purchased from a licensed distributor or importing
distributor. If a craft distiller licensee, including a craft
distiller licensee who holds more than one craft distiller
license, is not affiliated with any other manufacturer of
spirits, then the craft distiller licensee may sell such
spirits to distributors in this State and up to 5,000 2,500
gallons of such spirits to non-licensees to the extent
permitted by any exemption approved by the Commission pursuant
to Section 6-4 of this Act. A craft distiller license holder
may store such spirits at a non-contiguous licensed location,
but at no time shall a craft distiller license holder directly
or indirectly produce in the aggregate more than 100,000
gallons of spirits per year.

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A craft distiller licensee may hold more than one craft
distiller's license. However, a craft distiller that holds more
than one craft distiller license shall not manufacture, in the
aggregate, more than 100,000 gallons of spirits by distillation
per year and shall not sell, in the aggregate, more than 5,000
2,500 gallons of such spirits to non-licensees in accordance
with an exemption approved by the State Commission pursuant to
Section 6-4 of this Act.
Any craft distiller licensed under this Act who on July 28,
2010 (the effective date of Public Act 96-1367) was licensed as
a distiller and manufactured no more spirits than permitted by
this Section shall not be required to pay the initial licensing
fee.
Class 10. A class 1 brewer license, which may only be
issued to a licensed brewer or licensed non-resident dealer,
shall allow the manufacture of up to 930,000 gallons of beer
per year provided that the class 1 brewer licensee does not
manufacture more than a combined 930,000 gallons of beer per
year and is not a member of or affiliated with, directly or
indirectly, a manufacturer that produces more than 930,000
gallons of beer per year or any other alcoholic liquor. A class
1 brewer licensee may make sales and deliveries to importing
distributors and distributors and to retail licensees in
accordance with the conditions set forth in paragraph (18) of
subsection (a) of Section 3-12 of this Act.
Class 11. A class 2 brewer license, which may only be

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issued to a licensed brewer or licensed non-resident dealer,
shall allow the manufacture of up to 3,720,000 gallons of beer
per year provided that the class 2 brewer licensee does not
manufacture more than a combined 3,720,000 gallons of beer per
year and is not a member of or affiliated with, directly or
indirectly, a manufacturer that produces more than 3,720,000
gallons of beer per year or any other alcoholic liquor. A class
2 brewer licensee may make sales and deliveries to importing
distributors and distributors, but shall not make sales or
deliveries to any other licensee. If the State Commission
provides prior approval, a class 2 brewer licensee may annually
transfer up to 3,720,000 gallons of beer manufactured by that
class 2 brewer licensee to the premises of a licensed class 2
brewer wholly owned and operated by the same licensee.
(a-1) A manufacturer which is licensed in this State to
make sales or deliveries of alcoholic liquor to licensed
distributors or importing distributors and which enlists
agents, representatives, or individuals acting on its behalf
who contact licensed retailers on a regular and continual basis
in this State must register those agents, representatives, or
persons acting on its behalf with the State Commission.
Registration of agents, representatives, or persons acting
on behalf of a manufacturer is fulfilled by submitting a form
to the Commission. The form shall be developed by the
Commission and shall include the name and address of the
applicant, the name and address of the manufacturer he or she

HB4987 - 7 - LRB100 17460 RPS 32629 b
represents, the territory or areas assigned to sell to or
discuss pricing terms of alcoholic liquor, and any other
questions deemed appropriate and necessary. All statements in
the forms required to be made by law or by rule shall be deemed
material, and any person who knowingly misstates any material
fact under oath in an application is guilty of a Class B
misdemeanor. Fraud, misrepresentation, false statements,
misleading statements, evasions, or suppression of material
facts in the securing of a registration are grounds for
suspension or revocation of the registration. The State
Commission shall post a list of registered agents on the
Commission's website.
(b) A distributor's license shall allow the wholesale
purchase and storage of alcoholic liquors and sale of alcoholic
liquors to licensees in this State and to persons without the
State, as may be permitted by law. No person licensed as a
distributor shall be granted a non-resident dealer's license.
(c) An importing distributor's license may be issued to and
held by those only who are duly licensed distributors, upon the
filing of an application by a duly licensed distributor, with
the Commission and the Commission shall, without the payment of
any fee, immediately issue such importing distributor's
license to the applicant, which shall allow the importation of
alcoholic liquor by the licensee into this State from any point
in the United States outside this State, and the purchase of
alcoholic liquor in barrels, casks or other bulk containers and

HB4987 - 8 - LRB100 17460 RPS 32629 b
the bottling of such alcoholic liquors before resale thereof,
but all bottles or containers so filled shall be sealed,
labeled, stamped and otherwise made to comply with all
provisions, rules and regulations governing manufacturers in
the preparation and bottling of alcoholic liquors. The
importing distributor's license shall permit such licensee to
purchase alcoholic liquor from Illinois licensed non-resident
dealers and foreign importers only. No person licensed as an
importing distributor shall be granted a non-resident dealer's
license.
(d) A retailer's license shall allow the licensee to sell
and offer for sale at retail, only in the premises specified in
the license, alcoholic liquor for use or consumption, but not
for resale in any form. Nothing in Public Act 95-634 shall
deny, limit, remove, or restrict the ability of a holder of a
retailer's license to transfer, deliver, or ship alcoholic
liquor to the purchaser for use or consumption subject to any
applicable local law or ordinance. Any retail license issued to
a manufacturer shall only permit the manufacturer to sell beer
at retail on the premises actually occupied by the
manufacturer. For the purpose of further describing the type of
business conducted at a retail licensed premises, a retailer's
licensee may be designated by the State Commission as (i) an on
premise consumption retailer, (ii) an off premise sale
retailer, or (iii) a combined on premise consumption and off
premise sale retailer.

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Notwithstanding any other provision of this subsection
(d), a retail licensee may sell alcoholic liquors to a special
event retailer licensee for resale to the extent permitted
under subsection (e).
(e) A special event retailer's license (not-for-profit)
shall permit the licensee to purchase alcoholic liquors from an
Illinois licensed distributor (unless the licensee purchases
less than $500 of alcoholic liquors for the special event, in
which case the licensee may purchase the alcoholic liquors from
a licensed retailer) and shall allow the licensee to sell and
offer for sale, at retail, alcoholic liquors for use or
consumption, but not for resale in any form and only at the
location and on the specific dates designated for the special
event in the license. An applicant for a special event retailer
license must (i) furnish with the application: (A) a resale
number issued under Section 2c of the Retailers' Occupation Tax
Act or evidence that the applicant is registered under Section
2a of the Retailers' Occupation Tax Act, (B) a current, valid
exemption identification number issued under Section 1g of the
Retailers' Occupation Tax Act, and a certification to the
Commission that the purchase of alcoholic liquors will be a
tax-exempt purchase, or (C) a statement that the applicant is
not registered under Section 2a of the Retailers' Occupation
Tax Act, does not hold a resale number under Section 2c of the
Retailers' Occupation Tax Act, and does not hold an exemption
number under Section 1g of the Retailers' Occupation Tax Act,

HB4987 - 10 - LRB100 17460 RPS 32629 b
in which event the Commission shall set forth on the special
event retailer's license a statement to that effect; (ii)
submit with the application proof satisfactory to the State
Commission that the applicant will provide dram shop liability
insurance in the maximum limits; and (iii) show proof
satisfactory to the State Commission that the applicant has
obtained local authority approval.
(f) A railroad license shall permit the licensee to import
alcoholic liquors into this State from any point in the United
States outside this State and to store such alcoholic liquors
in this State; to make wholesale purchases of alcoholic liquors
directly from manufacturers, foreign importers, distributors
and importing distributors from within or outside this State;
and to store such alcoholic liquors in this State; provided
that the above powers may be exercised only in connection with
the importation, purchase or storage of alcoholic liquors to be
sold or dispensed on a club, buffet, lounge or dining car
operated on an electric, gas or steam railway in this State;
and provided further, that railroad licensees exercising the
above powers shall be subject to all provisions of Article VIII
of this Act as applied to importing distributors. A railroad
license shall also permit the licensee to sell or dispense
alcoholic liquors on any club, buffet, lounge or dining car
operated on an electric, gas or steam railway regularly
operated by a common carrier in this State, but shall not
permit the sale for resale of any alcoholic liquors to any

HB4987 - 11 - LRB100 17460 RPS 32629 b
licensee within this State. A license shall be obtained for
each car in which such sales are made.
(g) A boat license shall allow the sale of alcoholic liquor
in individual drinks, on any passenger boat regularly operated
as a common carrier on navigable waters in this State or on any
riverboat operated under the Riverboat Gambling Act, which boat
or riverboat maintains a public dining room or restaurant
thereon.
(h) A non-beverage user's license shall allow the licensee
to purchase alcoholic liquor from a licensed manufacturer or
importing distributor, without the imposition of any tax upon
the business of such licensed manufacturer or importing
distributor as to such alcoholic liquor to be used by such
licensee solely for the non-beverage purposes set forth in
subsection (a) of Section 8-1 of this Act, and such licenses
shall be divided and classified and shall permit the purchase,
possession and use of limited and stated quantities of
alcoholic liquor as follows:
Class 1, not to exceed ......................... 500 gallons
Class 2, not to exceed ....................... 1,000 gallons
Class 3, not to exceed ....................... 5,000 gallons
Class 4, not to exceed ...................... 10,000 gallons
Class 5, not to exceed ....................... 50,000 gallons
(i) A wine-maker's premises license shall allow a licensee
that concurrently holds a first-class wine-maker's license to
sell and offer for sale at retail in the premises specified in

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such license not more than 50,000 gallons of the first-class
wine-maker's wine that is made at the first-class wine-maker's
licensed premises per year for use or consumption, but not for
resale in any form. A wine-maker's premises license shall allow
a licensee who concurrently holds a second-class wine-maker's
license to sell and offer for sale at retail in the premises
specified in such license up to 100,000 gallons of the
second-class wine-maker's wine that is made at the second-class
wine-maker's licensed premises per year for use or consumption
but not for resale in any form. A wine-maker's premises license
shall allow a licensee that concurrently holds a first-class
wine-maker's license or a second-class wine-maker's license to
sell and offer for sale at retail at the premises specified in
the wine-maker's premises license, for use or consumption but
not for resale in any form, any beer, wine, and spirits
purchased from a licensed distributor. Upon approval from the
State Commission, a wine-maker's premises license shall allow
the licensee to sell and offer for sale at (i) the wine-maker's
licensed premises and (ii) at up to 2 additional locations for
use and consumption and not for resale. Each location shall
require additional licensing per location as specified in
Section 5-3 of this Act. A wine-maker's premises licensee shall
secure liquor liability insurance coverage in an amount at
least equal to the maximum liability amounts set forth in
subsection (a) of Section 6-21 of this Act.
(j) An airplane license shall permit the licensee to import

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alcoholic liquors into this State from any point in the United
States outside this State and to store such alcoholic liquors
in this State; to make wholesale purchases of alcoholic liquors
directly from manufacturers, foreign importers, distributors
and importing distributors from within or outside this State;
and to store such alcoholic liquors in this State; provided
that the above powers may be exercised only in connection with
the importation, purchase or storage of alcoholic liquors to be
sold or dispensed on an airplane; and provided further, that
airplane licensees exercising the above powers shall be subject
to all provisions of Article VIII of this Act as applied to
importing distributors. An airplane licensee shall also permit
the sale or dispensing of alcoholic liquors on any passenger
airplane regularly operated by a common carrier in this State,
but shall not permit the sale for resale of any alcoholic
liquors to any licensee within this State. A single airplane
license shall be required of an airline company if liquor
service is provided on board aircraft in this State. The annual
fee for such license shall be as determined in Section 5-3.
(k) A foreign importer's license shall permit such licensee
to purchase alcoholic liquor from Illinois licensed
non-resident dealers only, and to import alcoholic liquor other
than in bulk from any point outside the United States and to
sell such alcoholic liquor to Illinois licensed importing
distributors and to no one else in Illinois; provided that (i)
the foreign importer registers with the State Commission every

HB4987 - 14 - LRB100 17460 RPS 32629 b
brand of alcoholic liquor that it proposes to sell to Illinois
licensees during the license period, (ii) the foreign importer
complies with all of the provisions of Section 6-9 of this Act
with respect to registration of such Illinois licensees as may
be granted the right to sell such brands at wholesale, and
(iii) the foreign importer complies with the provisions of
Sections 6-5 and 6-6 of this Act to the same extent that these
provisions apply to manufacturers.
(l) (i) A broker's license shall be required of all persons
who solicit orders for, offer to sell or offer to supply
alcoholic liquor to retailers in the State of Illinois, or who
offer to retailers to ship or cause to be shipped or to make
contact with distillers, rectifiers, brewers or manufacturers
or any other party within or without the State of Illinois in
order that alcoholic liquors be shipped to a distributor,
importing distributor or foreign importer, whether such
solicitation or offer is consummated within or without the
State of Illinois.
No holder of a retailer's license issued by the Illinois
Liquor Control Commission shall purchase or receive any
alcoholic liquor, the order for which was solicited or offered
for sale to such retailer by a broker unless the broker is the
holder of a valid broker's license.
The broker shall, upon the acceptance by a retailer of the
broker's solicitation of an order or offer to sell or supply or
deliver or have delivered alcoholic liquors, promptly forward

HB4987 - 15 - LRB100 17460 RPS 32629 b
to the Illinois Liquor Control Commission a notification of
said transaction in such form as the Commission may by
regulations prescribe.
(ii) A broker's license shall be required of a person
within this State, other than a retail licensee, who, for a fee
or commission, promotes, solicits, or accepts orders for
alcoholic liquor, for use or consumption and not for resale, to
be shipped from this State and delivered to residents outside
of this State by an express company, common carrier, or
contract carrier. This Section does not apply to any person who
promotes, solicits, or accepts orders for wine as specifically
authorized in Section 6-29 of this Act.
A broker's license under this subsection (l) shall not
entitle the holder to buy or sell any alcoholic liquors for his
own account or to take or deliver title to such alcoholic
liquors.
This subsection (l) shall not apply to distributors,
employees of distributors, or employees of a manufacturer who
has registered the trademark, brand or name of the alcoholic
liquor pursuant to Section 6-9 of this Act, and who regularly
sells such alcoholic liquor in the State of Illinois only to
its registrants thereunder.
Any agent, representative, or person subject to
registration pursuant to subsection (a-1) of this Section shall
not be eligible to receive a broker's license.
(m) A non-resident dealer's license shall permit such

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licensee to ship into and warehouse alcoholic liquor into this
State from any point outside of this State, and to sell such
alcoholic liquor to Illinois licensed foreign importers and
importing distributors and to no one else in this State;
provided that (i) said non-resident dealer shall register with
the Illinois Liquor Control Commission each and every brand of
alcoholic liquor which it proposes to sell to Illinois
licensees during the license period, (ii) it shall comply with
all of the provisions of Section 6-9 hereof with respect to
registration of such Illinois licensees as may be granted the
right to sell such brands at wholesale, and (iii) the
non-resident dealer shall comply with the provisions of
Sections 6-5 and 6-6 of this Act to the same extent that these
provisions apply to manufacturers. No person licensed as a
non-resident dealer shall be granted a distributor's or
importing distributor's license.
(n) A brew pub license shall allow the licensee to only (i)
manufacture up to 155,000 gallons of beer per year only on the
premises specified in the license, (ii) make sales of the beer
manufactured on the premises or, with the approval of the
Commission, beer manufactured on another brew pub licensed
premises that is wholly owned and operated by the same licensee
to importing distributors, distributors, and to non-licensees
for use and consumption, (iii) store the beer upon the
premises, (iv) sell and offer for sale at retail from the
licensed premises for off-premises consumption no more than

HB4987 - 17 - LRB100 17460 RPS 32629 b
155,000 gallons per year so long as such sales are only made
in-person, (v) sell and offer for sale at retail for use and
consumption on the premises specified in the license any form
of alcoholic liquor purchased from a licensed distributor or
importing distributor, and (vi) with the prior approval of the
Commission, annually transfer no more than 155,000 gallons of
beer manufactured on the premises to a licensed brew pub wholly
owned and operated by the same licensee.
A brew pub licensee shall not under any circumstance sell
or offer for sale beer manufactured by the brew pub licensee to
retail licensees.
A person who holds a class 2 brewer license may
simultaneously hold a brew pub license if the class 2 brewer
(i) does not, under any circumstance, sell or offer for sale
beer manufactured by the class 2 brewer to retail licensees;
(ii) does not hold more than 3 brew pub licenses in this State;
(iii) does not manufacture more than a combined 3,720,000
gallons of beer per year, including the beer manufactured at
the brew pub; and (iv) is not a member of or affiliated with,
directly or indirectly, a manufacturer that produces more than
3,720,000 gallons of beer per year or any other alcoholic
liquor.
Notwithstanding any other provision of this Act, a licensed
brewer, class 2 brewer, or non-resident dealer who before July
1, 2015 manufactured less than 3,720,000 gallons of beer per
year and held a brew pub license on or before July 1, 2015 may

HB4987 - 18 - LRB100 17460 RPS 32629 b
(i) continue to qualify for and hold that brew pub license for
the licensed premises and (ii) manufacture more than 3,720,000
gallons of beer per year and continue to qualify for and hold
that brew pub license if that brewer, class 2 brewer, or
non-resident dealer does not simultaneously hold a class 1
brewer license and is not a member of or affiliated with,
directly or indirectly, a manufacturer that produces more than
3,720,000 gallons of beer per year or that produces any other
alcoholic liquor.
(o) A caterer retailer license shall allow the holder to
serve alcoholic liquors as an incidental part of a food service
that serves prepared meals which excludes the serving of snacks
as the primary meal, either on or off-site whether licensed or
unlicensed.
(p) An auction liquor license shall allow the licensee to
sell and offer for sale at auction wine and spirits for use or
consumption, or for resale by an Illinois liquor licensee in
accordance with provisions of this Act. An auction liquor
license will be issued to a person and it will permit the
auction liquor licensee to hold the auction anywhere in the
State. An auction liquor license must be obtained for each
auction at least 14 days in advance of the auction date.
(q) A special use permit license shall allow an Illinois
licensed retailer to transfer a portion of its alcoholic liquor
inventory from its retail licensed premises to the premises
specified in the license hereby created, and to sell or offer

HB4987 - 19 - LRB100 17460 RPS 32629 b
for sale at retail, only in the premises specified in the
license hereby created, the transferred alcoholic liquor for
use or consumption, but not for resale in any form. A special
use permit license may be granted for the following time
periods: one day or less; 2 or more days to a maximum of 15 days
per location in any 12-month period. An applicant for the
special use permit license must also submit with the
application proof satisfactory to the State Commission that the
applicant will provide dram shop liability insurance to the
maximum limits and have local authority approval.
(r) A winery shipper's license shall allow a person with a
first-class or second-class wine manufacturer's license, a
first-class or second-class wine-maker's license, or a limited
wine manufacturer's license or who is licensed to make wine
under the laws of another state to ship wine made by that
licensee directly to a resident of this State who is 21 years
of age or older for that resident's personal use and not for
resale. Prior to receiving a winery shipper's license, an
applicant for the license must provide the Commission with a
true copy of its current license in any state in which it is
licensed as a manufacturer of wine. An applicant for a winery
shipper's license must also complete an application form that
provides any other information the Commission deems necessary.
The application form shall include all addresses from which the
applicant for a winery shipper's license intends to ship wine,
including the name and address of any third party, except for a

HB4987 - 20 - LRB100 17460 RPS 32629 b
common carrier, authorized to ship wine on behalf of the
manufacturer. The application form shall include an
acknowledgement consenting to the jurisdiction of the
Commission, the Illinois Department of Revenue, and the courts
of this State concerning the enforcement of this Act and any
related laws, rules, and regulations, including authorizing
the Department of Revenue and the Commission to conduct audits
for the purpose of ensuring compliance with Public Act 95-634,
and an acknowledgement that the wine manufacturer is in
compliance with Section 6-2 of this Act. Any third party,
except for a common carrier, authorized to ship wine on behalf
of a first-class or second-class wine manufacturer's licensee,
a first-class or second-class wine-maker's licensee, a limited
wine manufacturer's licensee, or a person who is licensed to
make wine under the laws of another state shall also be
disclosed by the winery shipper's licensee, and a copy of the
written appointment of the third-party wine provider, except
for a common carrier, to the wine manufacturer shall be filed
with the State Commission as a supplement to the winery
shipper's license application or any renewal thereof. The
winery shipper's license holder shall affirm under penalty of
perjury, as part of the winery shipper's license application or
renewal, that he or she only ships wine, either directly or
indirectly through a third-party provider, from the licensee's
own production.
Except for a common carrier, a third-party provider

HB4987 - 21 - LRB100 17460 RPS 32629 b
shipping wine on behalf of a winery shipper's license holder is
the agent of the winery shipper's license holder and, as such,
a winery shipper's license holder is responsible for the acts
and omissions of the third-party provider acting on behalf of
the license holder. A third-party provider, except for a common
carrier, that engages in shipping wine into Illinois on behalf
of a winery shipper's license holder shall consent to the
jurisdiction of the State Commission and the State. Any
third-party, except for a common carrier, holding such an
appointment shall, by February 1 of each calendar year and upon
request by the State Commission or the Department of Revenue,
file with the State Commission a statement detailing each
shipment made to an Illinois resident. The statement shall
include the name and address of the third-party provider filing
the statement, the time period covered by the statement, and
the following information:
(1) the name, address, and license number of the winery
shipper on whose behalf the shipment was made;
(2) the quantity of the products delivered; and
(3) the date and address of the shipment.
If the Department of Revenue or the State Commission requests a
statement under this paragraph, the third-party provider must
provide that statement no later than 30 days after the request
is made. Any books, records, supporting papers, and documents
containing information and data relating to a statement under
this paragraph shall be kept and preserved for a period of 3

HB4987 - 22 - LRB100 17460 RPS 32629 b
years, unless their destruction sooner is authorized, in
writing, by the Director of Revenue, and shall be open and
available to inspection by the Director of Revenue or the State
Commission or any duly authorized officer, agent, or employee
of the State Commission or the Department of Revenue, at all
times during business hours of the day. Any person who violates
any provision of this paragraph or any rule of the State
Commission for the administration and enforcement of the
provisions of this paragraph is guilty of a Class C
misdemeanor. In case of a continuing violation, each day's
continuance thereof shall be a separate and distinct offense.
The State Commission shall adopt rules as soon as
practicable to implement the requirements of Public Act 99-904
and shall adopt rules prohibiting any such third-party
appointment of a third-party provider, except for a common
carrier, that has been deemed by the State Commission to have
violated the provisions of this Act with regard to any winery
shipper licensee.
A winery shipper licensee must pay to the Department of
Revenue the State liquor gallonage tax under Section 8-1 for
all wine that is sold by the licensee and shipped to a person
in this State. For the purposes of Section 8-1, a winery
shipper licensee shall be taxed in the same manner as a
manufacturer of wine. A licensee who is not otherwise required
to register under the Retailers' Occupation Tax Act must
register under the Use Tax Act to collect and remit use tax to

HB4987 - 23 - LRB100 17460 RPS 32629 b
the Department of Revenue for all gallons of wine that are sold
by the licensee and shipped to persons in this State. If a
licensee fails to remit the tax imposed under this Act in
accordance with the provisions of Article VIII of this Act, the
winery shipper's license shall be revoked in accordance with
the provisions of Article VII of this Act. If a licensee fails
to properly register and remit tax under the Use Tax Act or the
Retailers' Occupation Tax Act for all wine that is sold by the
winery shipper and shipped to persons in this State, the winery
shipper's license shall be revoked in accordance with the
provisions of Article VII of this Act.
A winery shipper licensee must collect, maintain, and
submit to the Commission on a semi-annual basis the total
number of cases per resident of wine shipped to residents of
this State. A winery shipper licensed under this subsection (r)
must comply with the requirements of Section 6-29 of this Act.
Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
Section 3-12, the State Commission may receive, respond to, and
investigate any complaint and impose any of the remedies
specified in paragraph (1) of subsection (a) of Section 3-12.
As used in this subsection, "third-party provider" means
any entity that provides fulfillment house services, including
warehousing, packaging, distribution, order processing, or
shipment of wine, but not the sale of wine, on behalf of a
licensed winery shipper.
(s) A craft distiller tasting permit license shall allow an

HB4987 - 24 - LRB100 17460 RPS 32629 b
Illinois licensed craft distiller (i) to transfer a portion of
its alcoholic liquor inventory from its craft distiller
licensed premises to the premises specified in the license
hereby created, (ii) and to conduct a sampling, only in the
premises specified in the license hereby created, of the
transferred alcoholic liquor in accordance with subsection (c)
of Section 6-31 of this Act, and (iii) to sell and offer for
sale at retail, but not for resale in any form, up to 5,000
gallons of the transferred alcoholic liquor to the extent
permitted by any exemption approved by the Commission pursuant
to Section 6-4. The transferred alcoholic liquor may not be
sold or resold in any form. An applicant for the craft
distiller tasting permit license must also submit with the
application proof satisfactory to the State Commission that the
applicant will provide dram shop liability insurance to the
maximum limits and have local authority approval.
(Source: P.A. 99-448, eff. 8-24-15; 99-642, eff. 7-28-16;
99-800, eff. 8-12-16; 99-902, eff. 8-26-16; 99-904, eff.
1-1-17; 100-17, eff. 6-30-17; 100-201, eff. 8-18-17.)
(235 ILCS 5/6-4) (from Ch. 43, par. 121)
Sec. 6-4. (a) No person licensed by any licensing authority
as a distiller, or a wine manufacturer, or any subsidiary or
affiliate thereof, or any officer, associate, member, partner,
representative, employee, agent or shareholder owning more
than 5% of the outstanding shares of such person shall be

HB4987 - 25 - LRB100 17460 RPS 32629 b
issued an importing distributor's or distributor's license,
nor shall any person licensed by any licensing authority as an
importing distributor, distributor or retailer, or any
subsidiary or affiliate thereof, or any officer or associate,
member, partner, representative, employee, agent or
shareholder owning more than 5% of the outstanding shares of
such person be issued a distiller's license, a craft
distiller's license, or a wine manufacturer's license; and no
person or persons licensed as a distiller or craft distiller by
any licensing authority shall have any interest, directly or
indirectly, with such distributor or importing distributor.
However, an importing distributor or distributor, which on
January 1, 1985 is owned by a brewer, or any subsidiary or
affiliate thereof or any officer, associate, member, partner,
representative, employee, agent or shareholder owning more
than 5% of the outstanding shares of the importing distributor
or distributor referred to in this paragraph, may own or
acquire an ownership interest of more than 5% of the
outstanding shares of a wine manufacturer and be issued a wine
manufacturer's license by any licensing authority.
(b) The foregoing provisions shall not apply to any person
licensed by any licensing authority as a distiller or wine
manufacturer, or to any subsidiary or affiliate of any
distiller or wine manufacturer who shall have been heretofore
licensed by the State Commission as either an importing
distributor or distributor during the annual licensing period

HB4987 - 26 - LRB100 17460 RPS 32629 b
expiring June 30, 1947, and shall actually have made sales
regularly to retailers.
(c) Provided, however, that in such instances where a
distributor's or importing distributor's license has been
issued to any distiller or wine manufacturer or to any
subsidiary or affiliate of any distiller or wine manufacturer
who has, during the licensing period ending June 30, 1947, sold
or distributed as such licensed distributor or importing
distributor alcoholic liquors and wines to retailers, such
distiller or wine manufacturer or any subsidiary or affiliate
of any distiller or wine manufacturer holding such
distributor's or importing distributor's license may continue
to sell or distribute to retailers such alcoholic liquors and
wines which are manufactured, distilled, processed or marketed
by distillers and wine manufacturers whose products it sold or
distributed to retailers during the whole or any part of its
licensing periods; and such additional brands and additional
products may be added to the line of such distributor or
importing distributor, provided, that such brands and such
products were not sold or distributed by any distributor or
importing distributor licensed by the State Commission during
the licensing period ending June 30, 1947, but can not sell or
distribute to retailers any other alcoholic liquors or wines.
(d) It shall be unlawful for any distiller licensed
anywhere to have any stock ownership or interest in any
distributor's or importing distributor's license wherein any

HB4987 - 27 - LRB100 17460 RPS 32629 b
other person has an interest therein who is not a distiller and
does not own more than 5% of any stock in any distillery.
Nothing herein contained shall apply to such distillers or
their subsidiaries or affiliates, who had a distributor's or
importing distributor's license during the licensing period
ending June 30, 1947, which license was owned in whole by such
distiller, or subsidiaries or affiliates of such distiller.
(e) Any person licensed as a brewer, class 1 brewer, or
class 2 brewer shall be permitted to sell on the licensed
premises to non-licensees for on or off-premises consumption
for the premises in which he or she actually conducts such
business beer manufactured by the brewer, class 1 brewer, or
class 2 brewer. Such sales shall be limited to on-premises,
in-person sales only, for lawful consumption on or off
premises. Such authorization shall be considered a privilege
granted by the brewer license and, other than a manufacturer of
beer as stated above, no manufacturer or distributor or
importing distributor, excluding airplane licensees exercising
powers provided in paragraph (i) of Section 5-1 of this Act, or
any subsidiary or affiliate thereof, or any officer, associate,
member, partner, representative, employee or agent, or
shareholder shall be issued a retailer's license, nor shall any
person having a retailer's license, excluding airplane
licensees exercising powers provided in paragraph (i) of
Section 5-1 of this Act, or any subsidiary or affiliate
thereof, or any officer, associate, member, partner,

HB4987 - 28 - LRB100 17460 RPS 32629 b
representative or agent, or shareholder be issued a
manufacturer's license or importing distributor's license.
A person who holds a class 1 or class 2 brewer license and
is authorized by this Section to sell beer to non-licensees
shall not sell beer to non-licensees from more than 3 total
brewer or commonly owned brew pub licensed locations in this
State. The class 1 or class 2 brewer shall designate to the
State Commission the brewer or brew pub locations from which it
will sell beer to non-licensees.
A person licensed as a craft distiller, including a person
who holds more than one craft distiller license, not affiliated
with any other person manufacturing spirits may be authorized
by the Commission to sell up to 5,000 2,500 gallons of spirits
produced by the person to non-licensees for on or off-premises
consumption for the premises in which he or she actually
conducts business permitting only the retail sale of spirits
manufactured at such premises. Such sales shall be limited to
on-premises, in-person sales only, for lawful consumption on or
off premises, and such authorization shall be considered a
privilege granted by the craft distiller license. A craft
distiller licensed for retail sale shall secure liquor
liability insurance coverage in an amount at least equal to the
maximum liability amounts set forth in subsection (a) of
Section 6-21 of this Act.
A craft distiller license holder shall not deliver any
alcoholic liquor to any non-licensee off the licensed premises.

HB4987 - 29 - LRB100 17460 RPS 32629 b
A craft distiller shall affirm in its annual craft distiller's
license application that it does not produce more than 100,000
gallons of distilled spirits annually and that the craft
distiller does not sell more than 5,000 2,500 gallons of
spirits to non-licensees for on or off-premises consumption. In
the application, which shall be sworn under penalty of perjury,
the craft distiller shall state the volume of production and
sales for each year since the craft distiller's establishment.
(f) (Blank).
(g) Notwithstanding any of the foregoing prohibitions, a
limited wine manufacturer may sell at retail at its
manufacturing site for on or off premises consumption and may
sell to distributors. A limited wine manufacturer licensee
shall secure liquor liability insurance coverage in an amount
at least equal to the maximum liability amounts set forth in
subsection (a) of Section 6-21 of this Act.
(h) The changes made to this Section by Public Act 99-47
shall not diminish or impair the rights of any person, whether
a distiller, wine manufacturer, agent, or affiliate thereof,
who requested in writing and submitted documentation to the
State Commission on or before February 18, 2015 to be approved
for a retail license pursuant to what has heretofore been
subsection (f); provided that, on or before that date, the
State Commission considered the intent of that person to apply
for the retail license under that subsection and, by recorded
vote, the State Commission approved a resolution indicating

HB4987 - 30 - LRB100 17460 RPS 32629 b
that such a license application could be lawfully approved upon
that person duly filing a formal application for a retail
license and if that person, within 90 days of the State
Commission appearance and recorded vote, first filed an
application with the appropriate local commission, which
application was subsequently approved by the appropriate local
commission prior to consideration by the State Commission of
that person's application for a retail license. It is further
provided that the State Commission may approve the person's
application for a retail license or renewals of such license if
such person continues to diligently adhere to all
representations made in writing to the State Commission on or
before February 18, 2015, or thereafter, or in the affidavit
filed by that person with the State Commission to support the
issuance of a retail license and to abide by all applicable
laws and duly adopted rules.
(Source: P.A. 99-47, eff. 7-15-15; 99-448, eff. 8-24-15;
99-642, eff. 7-28-16; 99-902, eff. 8-26-16; 100-201, eff.
8-18-17.)