Bill Text: IL SB0759 | 2017-2018 | 100th General Assembly | Introduced


Bill Title: Amends the Liquor Control Act of 1934. Authorizes a class 1 brewer, class 2 brewer, or a craft distiller to obtain a special use permit license. Makes conforming changes. Effective immediately.

Spectrum: Bipartisan Bill

Status: (Introduced) 2017-08-04 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments [SB0759 Detail]

Download: Illinois-2017-SB0759-Introduced.html


100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB0759

Introduced 2/1/2017, by Sen. Michael Connelly

SYNOPSIS AS INTRODUCED:
235 ILCS 5/1-3.35
235 ILCS 5/5-1 from Ch. 43, par. 115

Amends the Liquor Control Act of 1934. Authorizes a class 1 brewer, class 2 brewer, or a craft distiller to obtain a special use permit license. Makes conforming changes. Effective immediately.
LRB100 08157 RPS 18252 b
FISCAL NOTE ACT MAY APPLY

A BILL FOR

SB0759LRB100 08157 RPS 18252 b
1 AN ACT concerning liquor.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Liquor Control Act of 1934 is amended by
5changing Sections 1-3.35 and 5-1 as follows:
6 (235 ILCS 5/1-3.35)
7 Sec. 1-3.35. Special use permit license. "Special use
8permit license" means a license for use by a retailer, class 1
9brewer, class 2 brewer, or craft distiller to allow for the
10transfer of alcoholic beverages from an existing licensed
11retail premises to a designated site for a specific event.
12(Source: P.A. 88-91; 89-250, eff. 1-1-96.)
13 (235 ILCS 5/5-1) (from Ch. 43, par. 115)
14 Sec. 5-1. Licenses issued by the Illinois Liquor Control
15Commission shall be of the following classes:
16 (a) Manufacturer's license - Class 1. Distiller, Class 2.
17Rectifier, Class 3. Brewer, Class 4. First Class Wine
18Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
19First Class Winemaker, Class 7. Second Class Winemaker, Class
208. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
2110. Class 1 Brewer, Class 11. Class 2 Brewer,
22 (b) Distributor's license,

SB0759- 2 -LRB100 08157 RPS 18252 b
1 (c) Importing Distributor's license,
2 (d) Retailer's license,
3 (e) Special Event Retailer's license (not-for-profit),
4 (f) Railroad license,
5 (g) Boat license,
6 (h) Non-Beverage User's license,
7 (i) Wine-maker's premises license,
8 (j) Airplane license,
9 (k) Foreign importer's license,
10 (l) Broker's license,
11 (m) Non-resident dealer's license,
12 (n) Brew Pub license,
13 (o) Auction liquor license,
14 (p) Caterer retailer license,
15 (q) Special use permit license,
16 (r) Winery shipper's license,
17 (s) Craft distiller tasting permit.
18 No person, firm, partnership, corporation, or other legal
19business entity that is engaged in the manufacturing of wine
20may concurrently obtain and hold a wine-maker's license and a
21wine manufacturer's license.
22 (a) A manufacturer's license shall allow the manufacture,
23importation in bulk, storage, distribution and sale of
24alcoholic liquor to persons without the State, as may be
25permitted by law and to licensees in this State as follows:
26 Class 1. A Distiller may make sales and deliveries of

SB0759- 3 -LRB100 08157 RPS 18252 b
1alcoholic liquor to distillers, rectifiers, importing
2distributors, distributors and non-beverage users and to no
3other licensees.
4 Class 2. A Rectifier, who is not a distiller, as defined
5herein, may make sales and deliveries of alcoholic liquor to
6rectifiers, importing distributors, distributors, retailers
7and non-beverage users and to no other licensees.
8 Class 3. A Brewer may make sales and deliveries of beer to
9importing distributors and distributors and may make sales as
10authorized under subsection (e) of Section 6-4 of this Act.
11 Class 4. A first class wine-manufacturer may make sales and
12deliveries of up to 50,000 gallons of wine to manufacturers,
13importing distributors and distributors, and to no other
14licensees.
15 Class 5. A second class Wine manufacturer may make sales
16and deliveries of more than 50,000 gallons of wine to
17manufacturers, importing distributors and distributors and to
18no other licensees.
19 Class 6. A first-class wine-maker's license shall allow the
20manufacture of up to 50,000 gallons of wine per year, and the
21storage and sale of such wine to distributors in the State and
22to persons without the State, as may be permitted by law. A
23person who, prior to June 1, 2008 (the effective date of Public
24Act 95-634), is a holder of a first-class wine-maker's license
25and annually produces more than 25,000 gallons of its own wine
26and who distributes its wine to licensed retailers shall cease

SB0759- 4 -LRB100 08157 RPS 18252 b
1this practice on or before July 1, 2008 in compliance with
2Public Act 95-634.
3 Class 7. A second-class wine-maker's license shall allow
4the manufacture of between 50,000 and 150,000 gallons of wine
5per year, and the storage and sale of such wine to distributors
6in this State and to persons without the State, as may be
7permitted by law. A person who, prior to June 1, 2008 (the
8effective date of Public Act 95-634), is a holder of a
9second-class wine-maker's license and annually produces more
10than 25,000 gallons of its own wine and who distributes its
11wine to licensed retailers shall cease this practice on or
12before July 1, 2008 in compliance with Public Act 95-634.
13 Class 8. A limited wine-manufacturer may make sales and
14deliveries not to exceed 40,000 gallons of wine per year to
15distributors, and to non-licensees in accordance with the
16provisions of this Act.
17 Class 9. A craft distiller license shall allow the
18manufacture of up to 100,000 March 1, 2013 (Public Act 97-1166)
19gallons of spirits by distillation per year and the storage of
20such spirits. If a craft distiller licensee, including a craft
21distiller licensee who holds more than one craft distiller
22license, is not affiliated with any other manufacturer of
23spirits, then the craft distiller licensee may sell such
24spirits to distributors in this State and up to 2,500 gallons
25of such spirits to non-licensees to the extent permitted by any
26exemption approved by the Commission pursuant to Section 6-4 of

SB0759- 5 -LRB100 08157 RPS 18252 b
1this Act. A craft distiller license holder may store such
2spirits at a non-contiguous licensed location, but at no time
3shall a craft distiller license holder directly or indirectly
4produce in the aggregate more than 100,000 gallons of spirits
5per year.
6 A craft distiller licensee may hold more than one craft
7distiller's license. However, a craft distiller that holds more
8than one craft distiller license shall not manufacture, in the
9aggregate, more than 100,000 gallons of spirits by distillation
10per year and shall not sell, in the aggregate, more than 2,500
11gallons of such spirits to non-licensees in accordance with an
12exemption approved by the State Commission pursuant to Section
136-4 of this Act.
14 Any craft distiller licensed under this Act who on July 28,
152010 (the effective date of Public Act 96-1367) was licensed as
16a distiller and manufactured no more spirits than permitted by
17this Section shall not be required to pay the initial licensing
18fee.
19 Class 10. A class 1 brewer license, which may only be
20issued to a licensed brewer or licensed non-resident dealer,
21shall allow the manufacture of up to 930,000 gallons of beer
22per year provided that the class 1 brewer licensee does not
23manufacture more than a combined 930,000 gallons of beer per
24year and is not a member of or affiliated with, directly or
25indirectly, a manufacturer that produces more than 930,000
26gallons of beer per year or any other alcoholic liquor. A class

SB0759- 6 -LRB100 08157 RPS 18252 b
11 brewer licensee may make sales and deliveries to importing
2distributors and distributors and to retail licensees in
3accordance with the conditions set forth in paragraph (18) of
4subsection (a) of Section 3-12 of this Act.
5 Class 11. A class 2 brewer license, which may only be
6issued to a licensed brewer or licensed non-resident dealer,
7shall allow the manufacture of up to 3,720,000 gallons of beer
8per year provided that the class 2 brewer licensee does not
9manufacture more than a combined 3,720,000 gallons of beer per
10year and is not a member of or affiliated with, directly or
11indirectly, a manufacturer that produces more than 3,720,000
12gallons of beer per year or any other alcoholic liquor. A class
132 brewer licensee may make sales and deliveries to importing
14distributors and distributors, but shall not make sales or
15deliveries to any other licensee. If the State Commission
16provides prior approval, a class 2 brewer licensee may annually
17transfer up to 3,720,000 gallons of beer manufactured by that
18class 2 brewer licensee to the premises of a licensed class 2
19brewer wholly owned and operated by the same licensee.
20 (a-1) A manufacturer which is licensed in this State to
21make sales or deliveries of alcoholic liquor to licensed
22distributors or importing distributors and which enlists
23agents, representatives, or individuals acting on its behalf
24who contact licensed retailers on a regular and continual basis
25in this State must register those agents, representatives, or
26persons acting on its behalf with the State Commission.

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1 Registration of agents, representatives, or persons acting
2on behalf of a manufacturer is fulfilled by submitting a form
3to the Commission. The form shall be developed by the
4Commission and shall include the name and address of the
5applicant, the name and address of the manufacturer he or she
6represents, the territory or areas assigned to sell to or
7discuss pricing terms of alcoholic liquor, and any other
8questions deemed appropriate and necessary. All statements in
9the forms required to be made by law or by rule shall be deemed
10material, and any person who knowingly misstates any material
11fact under oath in an application is guilty of a Class B
12misdemeanor. Fraud, misrepresentation, false statements,
13misleading statements, evasions, or suppression of material
14facts in the securing of a registration are grounds for
15suspension or revocation of the registration. The State
16Commission shall post a list of registered agents on the
17Commission's website.
18 (b) A distributor's license shall allow the wholesale
19purchase and storage of alcoholic liquors and sale of alcoholic
20liquors to licensees in this State and to persons without the
21State, as may be permitted by law. No person licensed as a
22distributor shall be granted a non-resident dealer's license.
23 (c) An importing distributor's license may be issued to and
24held by those only who are duly licensed distributors, upon the
25filing of an application by a duly licensed distributor, with
26the Commission and the Commission shall, without the payment of

SB0759- 8 -LRB100 08157 RPS 18252 b
1any fee, immediately issue such importing distributor's
2license to the applicant, which shall allow the importation of
3alcoholic liquor by the licensee into this State from any point
4in the United States outside this State, and the purchase of
5alcoholic liquor in barrels, casks or other bulk containers and
6the bottling of such alcoholic liquors before resale thereof,
7but all bottles or containers so filled shall be sealed,
8labeled, stamped and otherwise made to comply with all
9provisions, rules and regulations governing manufacturers in
10the preparation and bottling of alcoholic liquors. The
11importing distributor's license shall permit such licensee to
12purchase alcoholic liquor from Illinois licensed non-resident
13dealers and foreign importers only. No person licensed as an
14importing distributor shall be granted a non-resident dealer's
15license.
16 (d) A retailer's license shall allow the licensee to sell
17and offer for sale at retail, only in the premises specified in
18the license, alcoholic liquor for use or consumption, but not
19for resale in any form. Nothing in Public Act 95-634 shall
20deny, limit, remove, or restrict the ability of a holder of a
21retailer's license to transfer, deliver, or ship alcoholic
22liquor to the purchaser for use or consumption subject to any
23applicable local law or ordinance. Any retail license issued to
24a manufacturer shall only permit the manufacturer to sell beer
25at retail on the premises actually occupied by the
26manufacturer. For the purpose of further describing the type of

SB0759- 9 -LRB100 08157 RPS 18252 b
1business conducted at a retail licensed premises, a retailer's
2licensee may be designated by the State Commission as (i) an on
3premise consumption retailer, (ii) an off premise sale
4retailer, or (iii) a combined on premise consumption and off
5premise sale retailer.
6 Notwithstanding any other provision of this subsection
7(d), a retail licensee may sell alcoholic liquors to a special
8event retailer licensee for resale to the extent permitted
9under subsection (e).
10 (e) A special event retailer's license (not-for-profit)
11shall permit the licensee to purchase alcoholic liquors from an
12Illinois licensed distributor (unless the licensee purchases
13less than $500 of alcoholic liquors for the special event, in
14which case the licensee may purchase the alcoholic liquors from
15a licensed retailer) and shall allow the licensee to sell and
16offer for sale, at retail, alcoholic liquors for use or
17consumption, but not for resale in any form and only at the
18location and on the specific dates designated for the special
19event in the license. An applicant for a special event retailer
20license must (i) furnish with the application: (A) a resale
21number issued under Section 2c of the Retailers' Occupation Tax
22Act or evidence that the applicant is registered under Section
232a of the Retailers' Occupation Tax Act, (B) a current, valid
24exemption identification number issued under Section 1g of the
25Retailers' Occupation Tax Act, and a certification to the
26Commission that the purchase of alcoholic liquors will be a

SB0759- 10 -LRB100 08157 RPS 18252 b
1tax-exempt purchase, or (C) a statement that the applicant is
2not registered under Section 2a of the Retailers' Occupation
3Tax Act, does not hold a resale number under Section 2c of the
4Retailers' Occupation Tax Act, and does not hold an exemption
5number under Section 1g of the Retailers' Occupation Tax Act,
6in which event the Commission shall set forth on the special
7event retailer's license a statement to that effect; (ii)
8submit with the application proof satisfactory to the State
9Commission that the applicant will provide dram shop liability
10insurance in the maximum limits; and (iii) show proof
11satisfactory to the State Commission that the applicant has
12obtained local authority approval.
13 (f) A railroad license shall permit the licensee to import
14alcoholic liquors into this State from any point in the United
15States outside this State and to store such alcoholic liquors
16in this State; to make wholesale purchases of alcoholic liquors
17directly from manufacturers, foreign importers, distributors
18and importing distributors from within or outside this State;
19and to store such alcoholic liquors in this State; provided
20that the above powers may be exercised only in connection with
21the importation, purchase or storage of alcoholic liquors to be
22sold or dispensed on a club, buffet, lounge or dining car
23operated on an electric, gas or steam railway in this State;
24and provided further, that railroad licensees exercising the
25above powers shall be subject to all provisions of Article VIII
26of this Act as applied to importing distributors. A railroad

SB0759- 11 -LRB100 08157 RPS 18252 b
1license shall also permit the licensee to sell or dispense
2alcoholic liquors on any club, buffet, lounge or dining car
3operated on an electric, gas or steam railway regularly
4operated by a common carrier in this State, but shall not
5permit the sale for resale of any alcoholic liquors to any
6licensee within this State. A license shall be obtained for
7each car in which such sales are made.
8 (g) A boat license shall allow the sale of alcoholic liquor
9in individual drinks, on any passenger boat regularly operated
10as a common carrier on navigable waters in this State or on any
11riverboat operated under the Riverboat Gambling Act, which boat
12or riverboat maintains a public dining room or restaurant
13thereon.
14 (h) A non-beverage user's license shall allow the licensee
15to purchase alcoholic liquor from a licensed manufacturer or
16importing distributor, without the imposition of any tax upon
17the business of such licensed manufacturer or importing
18distributor as to such alcoholic liquor to be used by such
19licensee solely for the non-beverage purposes set forth in
20subsection (a) of Section 8-1 of this Act, and such licenses
21shall be divided and classified and shall permit the purchase,
22possession and use of limited and stated quantities of
23alcoholic liquor as follows:
24Class 1, not to exceed ......................... 500 gallons
25Class 2, not to exceed ....................... 1,000 gallons
26Class 3, not to exceed ....................... 5,000 gallons

SB0759- 12 -LRB100 08157 RPS 18252 b
1Class 4, not to exceed ...................... 10,000 gallons
2Class 5, not to exceed ....................... 50,000 gallons
3 (i) A wine-maker's premises license shall allow a licensee
4that concurrently holds a first-class wine-maker's license to
5sell and offer for sale at retail in the premises specified in
6such license not more than 50,000 gallons of the first-class
7wine-maker's wine that is made at the first-class wine-maker's
8licensed premises per year for use or consumption, but not for
9resale in any form. A wine-maker's premises license shall allow
10a licensee who concurrently holds a second-class wine-maker's
11license to sell and offer for sale at retail in the premises
12specified in such license up to 100,000 gallons of the
13second-class wine-maker's wine that is made at the second-class
14wine-maker's licensed premises per year for use or consumption
15but not for resale in any form. A wine-maker's premises license
16shall allow a licensee that concurrently holds a first-class
17wine-maker's license or a second-class wine-maker's license to
18sell and offer for sale at retail at the premises specified in
19the wine-maker's premises license, for use or consumption but
20not for resale in any form, any beer, wine, and spirits
21purchased from a licensed distributor. Upon approval from the
22State Commission, a wine-maker's premises license shall allow
23the licensee to sell and offer for sale at (i) the wine-maker's
24licensed premises and (ii) at up to 2 additional locations for
25use and consumption and not for resale. Each location shall
26require additional licensing per location as specified in

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

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

SB0759- 15 -LRB100 08157 RPS 18252 b
1for sale to such retailer by a broker unless the broker is the
2holder of a valid broker's license.
3 The broker shall, upon the acceptance by a retailer of the
4broker's solicitation of an order or offer to sell or supply or
5deliver or have delivered alcoholic liquors, promptly forward
6to the Illinois Liquor Control Commission a notification of
7said transaction in such form as the Commission may by
8regulations prescribe.
9 (ii) A broker's license shall be required of a person
10within this State, other than a retail licensee, who, for a fee
11or commission, promotes, solicits, or accepts orders for
12alcoholic liquor, for use or consumption and not for resale, to
13be shipped from this State and delivered to residents outside
14of this State by an express company, common carrier, or
15contract carrier. This Section does not apply to any person who
16promotes, solicits, or accepts orders for wine as specifically
17authorized in Section 6-29 of this Act.
18 A broker's license under this subsection (l) shall not
19entitle the holder to buy or sell any alcoholic liquors for his
20own account or to take or deliver title to such alcoholic
21liquors.
22 This subsection (l) shall not apply to distributors,
23employees of distributors, or employees of a manufacturer who
24has registered the trademark, brand or name of the alcoholic
25liquor pursuant to Section 6-9 of this Act, and who regularly
26sells such alcoholic liquor in the State of Illinois only to

SB0759- 16 -LRB100 08157 RPS 18252 b
1its registrants thereunder.
2 Any agent, representative, or person subject to
3registration pursuant to subsection (a-1) of this Section shall
4not be eligible to receive a broker's license.
5 (m) A non-resident dealer's license shall permit such
6licensee to ship into and warehouse alcoholic liquor into this
7State from any point outside of this State, and to sell such
8alcoholic liquor to Illinois licensed foreign importers and
9importing distributors and to no one else in this State;
10provided that (i) said non-resident dealer shall register with
11the Illinois Liquor Control Commission each and every brand of
12alcoholic liquor which it proposes to sell to Illinois
13licensees during the license period, (ii) it shall comply with
14all of the provisions of Section 6-9 hereof with respect to
15registration of such Illinois licensees as may be granted the
16right to sell such brands at wholesale, and (iii) the
17non-resident dealer shall comply with the provisions of
18Sections 6-5 and 6-6 of this Act to the same extent that these
19provisions apply to manufacturers. No person licensed as a
20non-resident dealer shall be granted a distributor's or
21importing distributor's license.
22 (n) A brew pub license shall allow the licensee to only (i)
23manufacture up to 155,000 gallons of beer per year only on the
24premises specified in the license, (ii) make sales of the beer
25manufactured on the premises or, with the approval of the
26Commission, beer manufactured on another brew pub licensed

SB0759- 17 -LRB100 08157 RPS 18252 b
1premises that is wholly owned and operated by the same licensee
2to importing distributors, distributors, and to non-licensees
3for use and consumption, (iii) store the beer upon the
4premises, (iv) sell and offer for sale at retail from the
5licensed premises for off-premises consumption no more than
6155,000 gallons per year so long as such sales are only made
7in-person, (v) sell and offer for sale at retail for use and
8consumption on the premises specified in the license any form
9of alcoholic liquor purchased from a licensed distributor or
10importing distributor, and (vi) with the prior approval of the
11Commission, annually transfer no more than 155,000 gallons of
12beer manufactured on the premises to a licensed brew pub wholly
13owned and operated by the same licensee.
14 A brew pub licensee shall not under any circumstance sell
15or offer for sale beer manufactured by the brew pub licensee to
16retail licensees.
17 A person who holds a class 2 brewer license may
18simultaneously hold a brew pub license if the class 2 brewer
19(i) does not, under any circumstance, sell or offer for sale
20beer manufactured by the class 2 brewer to retail licensees;
21(ii) does not hold more than 3 brew pub licenses in this State;
22(iii) does not manufacture more than a combined 3,720,000
23gallons of beer per year, including the beer manufactured at
24the brew pub; and (iv) is not a member of or affiliated with,
25directly or indirectly, a manufacturer that produces more than
263,720,000 gallons of beer per year or any other alcoholic

SB0759- 18 -LRB100 08157 RPS 18252 b
1liquor.
2 Notwithstanding any other provision of this Act, a licensed
3brewer, class 2 brewer, or non-resident dealer who before July
41, 2015 manufactured less than 3,720,000 gallons of beer per
5year and held a brew pub license on or before July 1, 2015 may
6(i) continue to qualify for and hold that brew pub license for
7the licensed premises and (ii) manufacture more than 3,720,000
8gallons of beer per year and continue to qualify for and hold
9that brew pub license if that brewer, class 2 brewer, or
10non-resident dealer does not simultaneously hold a class 1
11brewer license and is not a member of or affiliated with,
12directly or indirectly, a manufacturer that produces more than
133,720,000 gallons of beer per year or that produces any other
14alcoholic liquor.
15 (o) A caterer retailer license shall allow the holder to
16serve alcoholic liquors as an incidental part of a food service
17that serves prepared meals which excludes the serving of snacks
18as the primary meal, either on or off-site whether licensed or
19unlicensed.
20 (p) An auction liquor license shall allow the licensee to
21sell and offer for sale at auction wine and spirits for use or
22consumption, or for resale by an Illinois liquor licensee in
23accordance with provisions of this Act. An auction liquor
24license will be issued to a person and it will permit the
25auction liquor licensee to hold the auction anywhere in the
26State. An auction liquor license must be obtained for each

SB0759- 19 -LRB100 08157 RPS 18252 b
1auction at least 14 days in advance of the auction date.
2 (q) A special use permit license shall allow an Illinois
3licensed retailer, licensed class 1 brewer, licensed class 2
4brewer, or licensed craft distiller to transfer a portion of
5its alcoholic liquor inventory from its retail licensed
6premises to the premises specified in the license hereby
7created, and to sell or offer for sale at retail, only in the
8premises specified in the license hereby created, the
9transferred alcoholic liquor for use or consumption, but not
10for resale in any form. A special use permit license may be
11granted for the following time periods: one day or less; 2 or
12more days to a maximum of 15 days per location in any 12-month
1312 month period. An applicant for the special use permit
14license must also submit with the application proof
15satisfactory to the State Commission that the applicant will
16provide dram shop liability insurance to the maximum limits and
17have local authority approval.
18 (r) A winery shipper's license shall allow a person with a
19first-class or second-class wine manufacturer's license, a
20first-class or second-class wine-maker's license, or a limited
21wine manufacturer's license or who is licensed to make wine
22under the laws of another state to ship wine made by that
23licensee directly to a resident of this State who is 21 years
24of age or older for that resident's personal use and not for
25resale. Prior to receiving a winery shipper's license, an
26applicant for the license must provide the Commission with a

SB0759- 20 -LRB100 08157 RPS 18252 b
1true copy of its current license in any state in which it is
2licensed as a manufacturer of wine. An applicant for a winery
3shipper's license must also complete an application form that
4provides any other information the Commission deems necessary.
5The application form shall include all addresses from which the
6applicant for a winery shipper's license intends to ship wine,
7including the name and address of any third party, except for a
8common carrier, authorized to ship wine on behalf of the
9manufacturer. The application form shall include an
10acknowledgement consenting to the jurisdiction of the
11Commission, the Illinois Department of Revenue, and the courts
12of this State concerning the enforcement of this Act and any
13related laws, rules, and regulations, including authorizing
14the Department of Revenue and the Commission to conduct audits
15for the purpose of ensuring compliance with Public Act 95-634,
16and an acknowledgement that the wine manufacturer is in
17compliance with Section 6-2 of this Act. Any third party,
18except for a common carrier, authorized to ship wine on behalf
19of a first-class or second-class wine manufacturer's licensee,
20a first-class or second-class wine-maker's licensee, a limited
21wine manufacturer's licensee, or a person who is licensed to
22make wine under the laws of another state shall also be
23disclosed by the winery shipper's licensee, and a copy of the
24written appointment of the third-party wine provider, except
25for a common carrier, to the wine manufacturer shall be filed
26with the State Commission as a supplement to the winery

SB0759- 21 -LRB100 08157 RPS 18252 b
1shipper's license application or any renewal thereof. The
2winery shipper's license holder shall affirm under penalty of
3perjury, as part of the winery shipper's license application or
4renewal, that he or she only ships wine, either directly or
5indirectly through a third-party provider, from the licensee's
6own production.
7 Except for a common carrier, a third-party provider
8shipping wine on behalf of a winery shipper's license holder is
9the agent of the winery shipper's license holder and, as such,
10a winery shipper's license holder is responsible for the acts
11and omissions of the third-party provider acting on behalf of
12the license holder. A third-party provider, except for a common
13carrier, that engages in shipping wine into Illinois on behalf
14of a winery shipper's license holder shall consent to the
15jurisdiction of the State Commission and the State. Any
16third-party, except for a common carrier, holding such an
17appointment shall, by February 1 of each calendar year, file
18with the State Commission a statement detailing each shipment
19made to an Illinois resident. The State Commission shall adopt
20rules as soon as practicable to implement the requirements of
21Public Act 99-904 this amendatory Act of the 99th General
22Assembly and shall adopt rules prohibiting any such third-party
23appointment of a third-party provider, except for a common
24carrier, that has been deemed by the State Commission to have
25violated the provisions of this Act with regard to any winery
26shipper licensee.

SB0759- 22 -LRB100 08157 RPS 18252 b
1 A winery shipper licensee must pay to the Department of
2Revenue the State liquor gallonage tax under Section 8-1 for
3all wine that is sold by the licensee and shipped to a person
4in this State. For the purposes of Section 8-1, a winery
5shipper licensee shall be taxed in the same manner as a
6manufacturer of wine. A licensee who is not otherwise required
7to register under the Retailers' Occupation Tax Act must
8register under the Use Tax Act to collect and remit use tax to
9the Department of Revenue for all gallons of wine that are sold
10by the licensee and shipped to persons in this State. If a
11licensee fails to remit the tax imposed under this Act in
12accordance with the provisions of Article VIII of this Act, the
13winery shipper's license shall be revoked in accordance with
14the provisions of Article VII of this Act. If a licensee fails
15to properly register and remit tax under the Use Tax Act or the
16Retailers' Occupation Tax Act for all wine that is sold by the
17winery shipper and shipped to persons in this State, the winery
18shipper's license shall be revoked in accordance with the
19provisions of Article VII of this Act.
20 A winery shipper licensee must collect, maintain, and
21submit to the Commission on a semi-annual basis the total
22number of cases per resident of wine shipped to residents of
23this State. A winery shipper licensed under this subsection (r)
24must comply with the requirements of Section 6-29 of this Act.
25 Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
26Section 3-12, the State Commission may receive, respond to, and

SB0759- 23 -LRB100 08157 RPS 18252 b
1investigate any complaint and impose any of the remedies
2specified in paragraph (1) of subsection (a) of Section 3-12.
3 (s) A craft distiller tasting permit license shall allow an
4Illinois licensed craft distiller to transfer a portion of its
5alcoholic liquor inventory from its craft distiller licensed
6premises to the premises specified in the license hereby
7created and to conduct a sampling, only in the premises
8specified in the license hereby created, of the transferred
9alcoholic liquor in accordance with subsection (c) of Section
106-31 of this Act. The transferred alcoholic liquor may not be
11sold or resold in any form. An applicant for the craft
12distiller tasting permit license must also submit with the
13application proof satisfactory to the State Commission that the
14applicant will provide dram shop liability insurance to the
15maximum limits and have local authority approval.
16(Source: P.A. 98-394, eff. 8-16-13; 98-401, eff. 8-16-13;
1798-756, eff. 7-16-14; 99-448, eff. 8-24-15; 99-642, eff.
187-28-16; 99-800, eff. 8-12-16; 99-902, eff. 8-26-16; 99-904,
19eff. 1-1-17; revised 9-15-16.)
20 Section 99. Effective date. This Act takes effect upon
21becoming law.
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