Bill Text: IL SB0754 | 2011-2012 | 97th General Assembly | Enrolled

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the Liquor Control Act of 1934. Makes a technical change in a Section concerning the short title.

Spectrum: Bipartisan Bill

Status: (Passed) 2011-06-01 - Public Act . . . . . . . . . 97-0005 [SB0754 Detail]

Download: Illinois-2011-SB0754-Enrolled.html

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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 1-3.33, 3-12, 5-1, and 5-3 and by adding
Section 1-3.38 as follows:
(235 ILCS 5/1-3.33)
Sec. 1-3.33. "Brew Pub" means a person who manufactures
beer only at a designated premises to make sales to importing
distributors, distributors, and to non-licensees for use and
consumption only, who stores beer at the designated premises,
and who is allowed to sell at retail from the licensed
premises, provided that a brew pub licensee shall not sell for
off-premises consumption more than 50,000 gallons per year. A
person who holds a brew pub license may simultaneously hold a
craft brewer license if he or she otherwise qualifies for the
craft brewer license and the craft brewer license is for a
location separate from the brew pub's licensed premises.
(Source: P.A. 90-432, eff. 1-1-98.)
(235 ILCS 5/1-3.38 new)
Sec. 1-3.38. "Craft brewer" means a licensed brewer or
licensed non-resident dealer who manufactures up to 465,000

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gallons of beer per year and who 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.
(235 ILCS 5/3-12)
Sec. 3-12. Powers and duties of State Commission.
(a) The State commission shall have the following powers,
functions and duties:
(1) To receive applications and to issue licenses to
manufacturers, foreign importers, importing distributors,
distributors, non-resident dealers, on premise consumption
retailers, off premise sale retailers, special event
retailer licensees, special use permit licenses, auction
liquor licenses, brew pubs, caterer retailers,
non-beverage users, railroads, including owners and
lessees of sleeping, dining and cafe cars, airplanes,
boats, brokers, and wine maker's premises licensees in
accordance with the provisions of this Act, and to suspend
or revoke such licenses upon the State commission's
determination, upon notice after hearing, that a licensee
has violated any provision of this Act or any rule or
regulation issued pursuant thereto and in effect for 30
days prior to such violation. Except in the case of an
action taken pursuant to a violation of Section 6-3, 6-5,
or 6-9, any action by the State Commission to suspend or

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revoke a licensee's license may be limited to the license
for the specific premises where the violation occurred.
In lieu of suspending or revoking a license, the
commission may impose a fine, upon the State commission's
determination and notice after hearing, that a licensee has
violated any provision of this Act or any rule or
regulation issued pursuant thereto and in effect for 30
days prior to such violation. The fine imposed under this
paragraph may not exceed $500 for each violation. Each day
that the activity, which gave rise to the original fine,
continues is a separate violation. The maximum fine that
may be levied against any licensee, for the period of the
license, shall not exceed $20,000. The maximum penalty that
may be imposed on a licensee for selling a bottle of
alcoholic liquor with a foreign object in it or serving
from a bottle of alcoholic liquor with a foreign object in
it shall be the destruction of that bottle of alcoholic
liquor for the first 10 bottles so sold or served from by
the licensee. For the eleventh bottle of alcoholic liquor
and for each third bottle thereafter sold or served from by
the licensee with a foreign object in it, the maximum
penalty that may be imposed on the licensee is the
destruction of the bottle of alcoholic liquor and a fine of
up to $50.
(2) To adopt such rules and regulations consistent with
the provisions of this Act which shall be necessary to

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carry on its functions and duties to the end that the
health, safety and welfare of the People of the State of
Illinois shall be protected and temperance in the
consumption of alcoholic liquors shall be fostered and
promoted and to distribute copies of such rules and
regulations to all licensees affected thereby.
(3) To call upon other administrative departments of
the State, county and municipal governments, county and
city police departments and upon prosecuting officers for
such information and assistance as it deems necessary in
the performance of its duties.
(4) To recommend to local commissioners rules and
regulations, not inconsistent with the law, for the
distribution and sale of alcoholic liquors throughout the
State.
(5) To inspect, or cause to be inspected, any premises
in this State where alcoholic liquors are manufactured,
distributed, warehoused, or sold.
(5.1) Upon receipt of a complaint or upon having
knowledge that any person is engaged in business as a
manufacturer, importing distributor, distributor, or
retailer without a license or valid license, to notify the
local liquor authority, file a complaint with the State's
Attorney's Office of the county where the incident
occurred, or initiate an investigation with the
appropriate law enforcement officials.

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(5.2) To issue a cease and desist notice to persons
shipping alcoholic liquor into this State from a point
outside of this State if the shipment is in violation of
this Act.
(5.3) To receive complaints from licensees, local
officials, law enforcement agencies, organizations, and
persons stating that any licensee has been or is violating
any provision of this Act or the rules and regulations
issued pursuant to this Act. Such complaints shall be in
writing, signed and sworn to by the person making the
complaint, and shall state with specificity the facts in
relation to the alleged violation. If the Commission has
reasonable grounds to believe that the complaint
substantially alleges a violation of this Act or rules and
regulations adopted pursuant to this Act, it shall conduct
an investigation. If, after conducting an investigation,
the Commission is satisfied that the alleged violation did
occur, it shall proceed with disciplinary action against
the licensee as provided in this Act.
(6) To hear and determine appeals from orders of a
local commission in accordance with the provisions of this
Act, as hereinafter set forth. Hearings under this
subsection shall be held in Springfield or Chicago, at
whichever location is the more convenient for the majority
of persons who are parties to the hearing.
(7) The commission shall establish uniform systems of

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accounts to be kept by all retail licensees having more
than 4 employees, and for this purpose the commission may
classify all retail licensees having more than 4 employees
and establish a uniform system of accounts for each class
and prescribe the manner in which such accounts shall be
kept. The commission may also prescribe the forms of
accounts to be kept by all retail licensees having more
than 4 employees, including but not limited to accounts of
earnings and expenses and any distribution, payment, or
other distribution of earnings or assets, and any other
forms, records and memoranda which in the judgment of the
commission may be necessary or appropriate to carry out any
of the provisions of this Act, including but not limited to
such forms, records and memoranda as will readily and
accurately disclose at all times the beneficial ownership
of such retail licensed business. The accounts, forms,
records and memoranda shall be available at all reasonable
times for inspection by authorized representatives of the
State commission or by any local liquor control
commissioner or his or her authorized representative. The
commission, may, from time to time, alter, amend or repeal,
in whole or in part, any uniform system of accounts, or the
form and manner of keeping accounts.
(8) In the conduct of any hearing authorized to be held
by the commission, to appoint, at the commission's
discretion, hearing officers to conduct hearings involving

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complex issues or issues that will require a protracted
period of time to resolve, to examine, or cause to be
examined, under oath, any licensee, and to examine or cause
to be examined the books and records of such licensee; to
hear testimony and take proof material for its information
in the discharge of its duties hereunder; to administer or
cause to be administered oaths; for any such purpose to
issue subpoena or subpoenas to require the attendance of
witnesses and the production of books, which shall be
effective in any part of this State, and to adopt rules to
implement its powers under this paragraph (8).
Any Circuit Court may by order duly entered, require
the attendance of witnesses and the production of relevant
books subpoenaed by the State commission and the court may
compel obedience to its order by proceedings for contempt.
(9) To investigate the administration of laws in
relation to alcoholic liquors in this and other states and
any foreign countries, and to recommend from time to time
to the Governor and through him or her to the legislature
of this State, such amendments to this Act, if any, as it
may think desirable and as will serve to further the
general broad purposes contained in Section 1-2 hereof.
(10) To adopt such rules and regulations consistent
with the provisions of this Act which shall be necessary
for the control, sale or disposition of alcoholic liquor
damaged as a result of an accident, wreck, flood, fire or

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other similar occurrence.
(11) To develop industry educational programs related
to responsible serving and selling, particularly in the
areas of overserving consumers and illegal underage
purchasing and consumption of alcoholic beverages.
(11.1) To license persons providing education and
training to alcohol beverage sellers and servers under the
Beverage Alcohol Sellers and Servers Education and
Training (BASSET) programs and to develop and administer a
public awareness program in Illinois to reduce or eliminate
the illegal purchase and consumption of alcoholic beverage
products by persons under the age of 21. Application for a
license shall be made on forms provided by the State
Commission.
(12) To develop and maintain a repository of license
and regulatory information.
(13) On or before January 15, 1994, the Commission
shall issue a written report to the Governor and General
Assembly that is to be based on a comprehensive study of
the impact on and implications for the State of Illinois of
Section 1926 of the Federal ADAMHA Reorganization Act of
1992 (Public Law 102-321). This study shall address the
extent to which Illinois currently complies with the
provisions of P.L. 102-321 and the rules promulgated
pursuant thereto.
As part of its report, the Commission shall provide the

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following essential information:
(i) the number of retail distributors of tobacco
products, by type and geographic area, in the State;
(ii) the number of reported citations and
successful convictions, categorized by type and
location of retail distributor, for violation of the
Prevention of Tobacco Use by Minors and Sale and
Distribution of Tobacco Products Act and the Smokeless
Tobacco Limitation Act;
(iii) the extent and nature of organized
educational and governmental activities that are
intended to promote, encourage or otherwise secure
compliance with any Illinois laws that prohibit the
sale or distribution of tobacco products to minors; and
(iv) the level of access and availability of
tobacco products to individuals under the age of 18.
To obtain the data necessary to comply with the
provisions of P.L. 102-321 and the requirements of this
report, the Commission shall conduct random, unannounced
inspections of a geographically and scientifically
representative sample of the State's retail tobacco
distributors.
The Commission shall consult with the Department of
Public Health, the Department of Human Services, the
Illinois State Police and any other executive branch
agency, and private organizations that may have

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information relevant to this report.
The Commission may contract with the Food and Drug
Administration of the U.S. Department of Health and Human
Services to conduct unannounced investigations of Illinois
tobacco vendors to determine compliance with federal laws
relating to the illegal sale of cigarettes and smokeless
tobacco products to persons under the age of 18.
(14) On or before April 30, 2008 and every 2 years
thereafter, the Commission shall present a written report
to the Governor and the General Assembly that shall be
based on a study of the impact of this amendatory Act of
the 95th General Assembly on the business of soliciting,
selling, and shipping wine from inside and outside of this
State directly to residents of this State. As part of its
report, the Commission shall provide all of the following
information:
(A) The amount of State excise and sales tax
revenues generated.
(B) The amount of licensing fees received.
(C) The number of cases of wine shipped from inside
and outside of this State directly to residents of this
State.
(D) The number of alcohol compliance operations
conducted.
(E) The number of winery shipper's licenses
issued.

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(F) The number of each of the following: reported
violations; cease and desist notices issued by the
Commission; notices of violations issued by the
Commission and to the Department of Revenue; and
notices and complaints of violations to law
enforcement officials, including, without limitation,
the Illinois Attorney General and the U.S. Department
of Treasury's Alcohol and Tobacco Tax and Trade Bureau.
(15) As a means to reduce the underage consumption of
alcoholic liquors, the Commission shall conduct alcohol
compliance operations to investigate whether businesses
that are soliciting, selling, and shipping wine from inside
or outside of this State directly to residents of this
State are licensed by this State or are selling or
attempting to sell wine to persons under 21 years of age in
violation of this Act.
(16) The Commission shall, in addition to notifying any
appropriate law enforcement agency, submit notices of
complaints or violations of Sections 6-29 and 6-29.1 by
persons who do not hold a winery shipper's license under
this amendatory Act to the Illinois Attorney General and to
the U.S. Department of Treasury's Alcohol and Tobacco Tax
and Trade Bureau.
(17) (A) A person licensed to make wine under the laws
of another state who has a winery shipper's license under
this amendatory Act and annually produces less than 25,000

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gallons of wine or a person who has 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 under this Act and annually
produces less than 25,000 gallons of wine may make
application to the Commission for a self-distribution
exemption to allow the sale of not more than 5,000 gallons
of the exemption holder's wine to retail licensees per
year.
(B) In the application, which shall be sworn under
penalty of perjury, such person shall state (1) the
date it was established; (2) its volume of production
and sales for each year since its establishment; (3)
its efforts to establish distributor relationships;
(4) that a self-distribution exemption is necessary to
facilitate the marketing of its wine; and (5) that it
will comply with the liquor and revenue laws of the
United States, this State, and any other state where it
is licensed.
(C) The Commission shall approve the application
for a self-distribution exemption if such person: (1)
is in compliance with State revenue and liquor laws;
(2) is not a member of any affiliated group that
produces more than 25,000 gallons of wine per annum or
produces any other alcoholic liquor; (3) will not
annually produce for sale more than 25,000 gallons of

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wine; and (4) will not annually sell more than 5,000
gallons of its wine to retail licensees.
(D) A self-distribution exemption holder shall
annually certify to the Commission its production of
wine in the previous 12 months and its anticipated
production and sales for the next 12 months. The
Commission may fine, suspend, or revoke a
self-distribution exemption after a hearing if it
finds that the exemption holder has made a material
misrepresentation in its application, violated a
revenue or liquor law of Illinois, exceeded production
of 25,000 gallons of wine in any calendar year, or
become part of an affiliated group producing more than
25,000 gallons of wine or any other alcoholic liquor.
(E) Except in hearings for violations of this Act
or amendatory Act or a bona fide investigation by duly
sworn law enforcement officials, the Commission, or
its agents, the Commission shall maintain the
production and sales information of a
self-distribution exemption holder as confidential and
shall not release such information to any person.
(F) The Commission shall issue regulations
governing self-distribution exemptions consistent with
this Section and this Act.
(G) Nothing in this subsection (17) shall prohibit
a self-distribution exemption holder from entering

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into or simultaneously having a distribution agreement
with a licensed Illinois distributor.
(H) It is the intent of this subsection (17) to
promote and continue orderly markets. The General
Assembly finds that in order to preserve Illinois'
regulatory distribution system it is necessary to
create an exception for smaller makers of wine as their
wines are frequently adjusted in varietals, mixes,
vintages, and taste to find and create market niches
sometimes too small for distributor or importing
distributor business strategies. Limited
self-distribution rights will afford and allow smaller
makers of wine access to the marketplace in order to
develop a customer base without impairing the
integrity of the 3-tier system.
(18) (A) A craft brewer licensee, who must also be
either a licensed brewer or licensed non-resident dealer
and annually manufacture less than 465,000 gallons of beer,
may make application to the Commission for a
self-distribution exemption to allow the sale of not more
than 232,500 gallons of the exemption holder's beer to
retail licensees per year.
(B) In the application, which shall be sworn under
penalty of perjury, the craft brewer licensee shall
state (1) the date it was established; (2) its volume
of beer manufactured and sold for each year since its

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establishment; (3) its efforts to establish
distributor relationships; (4) that a
self-distribution exemption is necessary to facilitate
the marketing of its beer; and (5) that it will comply
with the alcoholic beverage and revenue laws of the
United States, this State, and any other state where it
is licensed.
(C) Any application submitted shall be posted on
the Commission's website at least 45 days prior to
action by the Commission. The Commission shall approve
the application for a self-distribution exemption if
the craft brewer licensee: (1) is in compliance with
the State, revenue, and alcoholic beverage laws; (2) is
not a member of any affiliated group that manufacturers
more than 465,000 gallons of beer per annum or produces
any other alcoholic beverages; (3) shall not annually
manufacture for sale more than 465,000 gallons of beer;
and (4) shall not annually sell more than 232,500
gallons of its beer to retail licensees.
(D) A self-distribution exemption holder shall
annually certify to the Commission its manufacture of
beer during the previous 12 months and its anticipated
manufacture and sales of beer for the next 12 months.
The Commission may fine, suspend, or revoke a
self-distribution exemption after a hearing if it
finds that the exemption holder has made a material

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misrepresentation in its application, violated a
revenue or alcoholic beverage law of Illinois,
exceeded the manufacture of 465,000 gallons of beer in
any calendar year or became part of an affiliated group
manufacturing more than 465,000 gallons of beer or any
other alcoholic beverage.
(E) The Commission shall issue rules and
regulations governing self-distribution exemptions
consistent with this Act.
(F) Nothing in this paragraph (18) shall prohibit a
self-distribution exemption holder from entering into
or simultaneously having a distribution agreement with
a licensed Illinois importing distributor or a
distributor. If a self-distribution exemption holder
enters into a distribution agreement and has assigned
distribution rights to an importing distributor or
distributor, then the self-distribution exemption
holder's distribution rights in the assigned
territories shall cease in a reasonable time not to
exceed 60 days.
(G) It is the intent of this paragraph (18) to
promote and continue orderly markets. The General
Assembly finds that in order to preserve Illinois'
regulatory distribution system, it is necessary to
create an exception for smaller manufacturers in order
to afford and allow such smaller manufacturers of beer

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access to the marketplace in order to develop a
customer base without impairing the integrity of the
3-tier system.
(b) On or before April 30, 1999, the Commission shall
present a written report to the Governor and the General
Assembly that shall be based on a study of the impact of this
amendatory Act of 1998 on the business of soliciting, selling,
and shipping alcoholic liquor from outside of this State
directly to residents of this State.
As part of its report, the Commission shall provide the
following information:
(i) the amount of State excise and sales tax revenues
generated as a result of this amendatory Act of 1998;
(ii) the amount of licensing fees received as a result
of this amendatory Act of 1998;
(iii) the number of reported violations, the number of
cease and desist notices issued by the Commission, the
number of notices of violations issued to the Department of
Revenue, and the number of notices and complaints of
violations to law enforcement officials.
(Source: P.A. 95-634, eff. 6-1-08; 96-179, eff. 8-10-09;
96-446, eff. 1-1-10; 96-1000, eff. 7-2-10.)
(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:

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(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. Craft 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,
(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.
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

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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
importing distributors and , distributors and may make sales as
authorized under subsection (e) of Section 6-4 of this Act , and
to non-licensees, and to retailers provided the brewer obtains
an importing distributor's license or distributor's license in
accordance with the provisions 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

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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 the effective date of this amendatory Act
of the 95th General Assembly, 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 this amendatory Act of the 95th
General Assembly.
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 the effective date of
this amendatory Act of the 95th General Assembly, is a holder
of a 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 this amendatory Act of
the 95th General Assembly.
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

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provisions of this Act.
Class 9. A craft distiller license shall allow the
manufacture of up to 5,000 gallons of spirits by distillation
per year and the storage of such spirits. If a craft distiller
licensee is not affiliated with any other manufacturer, then
the craft distiller licensee may sell such spirits to
distributors in this State and non-licensees to the extent
permitted by any exemption approved by the Commission pursuant
to Section 6-4 of this Act.
Any craft distiller licensed under this Act who on the
effective date of this amendatory Act of the 96th General
Assembly 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 craft brewer's license, which may only be
issued to a licensed brewer or licensed non-resident dealer,
shall allow the manufacture of up to 465,000 gallons of beer
per year. A craft 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.
(a-1) A manufacturer which is licensed in this State to
make sales or deliveries of alcoholic liquor 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

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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
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.
(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.
(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

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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
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.
(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 this amendatory Act of the
95th General Assembly 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

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premise consumption and off premise sale retailer.
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

SB0754 Enrolled - 25 - LRB097 04475 ASK 44514 b
number under Section 1g of the Retailers' Occupation Tax Act,
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

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permit the sale for resale of any alcoholic liquors to any
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

SB0754 Enrolled - 27 - LRB097 04475 ASK 44514 b
sell and offer for sale at retail in the premises specified in
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.

SB0754 Enrolled - 28 - LRB097 04475 ASK 44514 b
(j) An airplane 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 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)

SB0754 Enrolled - 29 - LRB097 04475 ASK 44514 b
the foreign importer registers with the State Commission every
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

SB0754 Enrolled - 30 - LRB097 04475 ASK 44514 b
deliver or have delivered alcoholic liquors, promptly forward
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.

SB0754 Enrolled - 31 - LRB097 04475 ASK 44514 b
(m) A non-resident dealer's license shall permit such
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.
(n) A brew pub license shall allow the licensee (i) to
manufacture beer only on the premises specified in the license,
(ii) to 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 substantially owned
and operated by the same licensee to importing distributors,
distributors, and to non-licensees for use and consumption,
(iii) to store the beer upon the premises, and (iv) to sell and
offer for sale at retail from the licensed premises, provided
that a brew pub licensee shall not sell for off-premises
consumption more than 50,000 gallons per year. A person who

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holds a brew pub license may simultaneously hold a craft brewer
license if he or she otherwise qualifies for the craft brewer
license and the craft brewer license is for a location separate
from the brew pub's licensed premises. A brew pub license shall
permit a person who has received prior approval from the
Commission to annually transfer no more than a total of 50,000
gallons of beer manufactured on premises to all other licensed
brew pubs that are substantially owned and operated by the same
person.
(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

SB0754 Enrolled - 33 - LRB097 04475 ASK 44514 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 an acknowledgement
consenting to the jurisdiction of the Commission, the Illinois
Department of Revenue, and the courts of this State concerning

SB0754 Enrolled - 34 - LRB097 04475 ASK 44514 b
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 this amendatory Act.
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
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

SB0754 Enrolled - 35 - LRB097 04475 ASK 44514 b
this State. A winery shipper licensed under this subsection (r)
must comply with the requirements of Section 6-29 of this
amendatory Act.
(Source: P.A. 95-331, eff. 8-21-07; 95-634, eff. 6-1-08;
95-769, eff. 7-29-08; 96-1367, eff. 7-28-10.)
(235 ILCS 5/5-3) (from Ch. 43, par. 118)
Sec. 5-3. License fees. Except as otherwise provided
herein, at the time application is made to the State Commission
for a license of any class, the applicant shall pay to the
State Commission the fee hereinafter provided for the kind of
license applied for.
The fee for licenses issued by the State Commission shall
be as follows:
For a manufacturer's license:
Class 1. Distiller ............................. $3,600
Class 2. Rectifier ............................. 3,600
Class 3. Brewer ................................ 900
Class 4. First-class Wine Manufacturer ......... 600
Class 5. Second-class
Wine Manufacturer .......................... 1,200
Class 6. First-class wine-maker ................ 600
Class 7. Second-class wine-maker ............... 1200
Class 8. Limited Wine Manufacturer.............. 120
Class 9. Craft Distiller........................ 1,800
Class 10. Craft Brewer.......................... 25

SB0754 Enrolled - 36 - LRB097 04475 ASK 44514 b
For a Brew Pub License ......................... 1,050
For a caterer retailer's license................ 200
For a foreign importer's license ............... 25
For an importing distributor's license ......... 25
For a distributor's license .................... 270
For a non-resident dealer's license
(500,000 gallons or over) .................. 270
For a non-resident dealer's license
(under 500,000 gallons) .................... 90
For a wine-maker's premises license ............ 100
For a winery shipper's license
(under 250,000 gallons)..................... 150
For a winery shipper's license
(250,000 or over, but under 500,000 gallons). 500
For a winery shipper's license
(500,000 gallons or over)................... 1,000
For a wine-maker's premises license,
second location ............................ 350
For a wine-maker's premises license,
third location ............................. 350
For a retailer's license ....................... 500
For a special event retailer's license,
(not-for-profit) ........................... 25
For a special use permit license,
one day only ............................... 50
2 days or more ............................. 100

SB0754 Enrolled - 37 - LRB097 04475 ASK 44514 b
For a railroad license ......................... 60
For a boat license ............................. 180
For an airplane license, times the
licensee's maximum number of aircraft
in flight, serving liquor over the
State at any given time, which either
originate, terminate, or make
an intermediate stop in the State .......... 60
For a non-beverage user's license:
Class 1 .................................... 24
Class 2 .................................... 60
Class 3 .................................... 120
Class 4 .................................... 240
Class 5 .................................... 600
For a broker's license ......................... 600
For an auction liquor license .................. 50
Fees collected under this Section shall be paid into the
Dram Shop Fund. On and after July 1, 2003, of the funds
received for a retailer's license, in addition to the first
$175, an additional $75 shall be paid into the Dram Shop Fund,
and $250 shall be paid into the General Revenue Fund. Beginning
June 30, 1990 and on June 30 of each subsequent year through
June 29, 2003, any balance over $5,000,000 remaining in the
Dram Shop Fund shall be credited to State liquor licensees and
applied against their fees for State liquor licenses for the
following year. The amount credited to each licensee shall be a

SB0754 Enrolled - 38 - LRB097 04475 ASK 44514 b
proportion of the balance in the Dram Fund that is the same as
the proportion of the license fee paid by the licensee under
this Section for the period in which the balance was
accumulated to the aggregate fees paid by all licensees during
that period.
No fee shall be paid for licenses issued by the State
Commission to the following non-beverage users:
(a) Hospitals, sanitariums, or clinics when their use
of alcoholic liquor is exclusively medicinal, mechanical
or scientific.
(b) Universities, colleges of learning or schools when
their use of alcoholic liquor is exclusively medicinal,
mechanical or scientific.
(c) Laboratories when their use is exclusively for the
purpose of scientific research.
(Source: P.A. 95-634, eff. 6-1-08; 96-1367, eff. 7-28-10.)