Bill Text: IL SB1288 | 2017-2018 | 100th General Assembly | Introduced


Bill Title: Amends the Liquor Control Act of 1934. Provides that a craft distiller may make sales and deliveries to importing distributors and distributors and may make sales and deliveries of up to 25,000 gallons of spirits to retail licensees per year. Effective immediately.

Spectrum: Slight Partisan Bill (Republican 3-1)

Status: (Introduced) 2017-05-05 - Rule 3-9(a) / Re-referred to Assignments [SB1288 Detail]

Download: Illinois-2017-SB1288-Introduced.html


100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB1288

Introduced 2/9/2017, by Sen. Mr. Dan McConchie

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

Amends the Liquor Control Act of 1934. Provides that a craft distiller may make sales and deliveries to importing distributors and distributors and may make sales and deliveries of up to 25,000 gallons of spirits to retail licensees per year. Effective immediately.
LRB100 09603 RPS 19771 b

A BILL FOR

SB1288LRB100 09603 RPS 19771 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 Section 5-1 as follows:
6 (235 ILCS 5/5-1) (from Ch. 43, par. 115)
7 Sec. 5-1. Licenses issued by the Illinois Liquor Control
8Commission shall be of the following classes:
9 (a) Manufacturer's license - Class 1. Distiller, Class 2.
10Rectifier, Class 3. Brewer, Class 4. First Class Wine
11Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
12First Class Winemaker, Class 7. Second Class Winemaker, Class
138. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
1410. Class 1 Brewer, Class 11. Class 2 Brewer,
15 (b) Distributor's license,
16 (c) Importing Distributor's license,
17 (d) Retailer's license,
18 (e) Special Event Retailer's license (not-for-profit),
19 (f) Railroad license,
20 (g) Boat license,
21 (h) Non-Beverage User's license,
22 (i) Wine-maker's premises license,
23 (j) Airplane license,

SB1288- 2 -LRB100 09603 RPS 19771 b
1 (k) Foreign importer's license,
2 (l) Broker's license,
3 (m) Non-resident dealer's license,
4 (n) Brew Pub license,
5 (o) Auction liquor license,
6 (p) Caterer retailer license,
7 (q) Special use permit license,
8 (r) Winery shipper's license,
9 (s) Craft distiller tasting permit.
10 No person, firm, partnership, corporation, or other legal
11business entity that is engaged in the manufacturing of wine
12may concurrently obtain and hold a wine-maker's license and a
13wine manufacturer's license.
14 (a) A manufacturer's license shall allow the manufacture,
15importation in bulk, storage, distribution and sale of
16alcoholic liquor to persons without the State, as may be
17permitted by law and to licensees in this State as follows:
18 Class 1. A Distiller may make sales and deliveries of
19alcoholic liquor to distillers, rectifiers, importing
20distributors, distributors and non-beverage users and to no
21other licensees.
22 Class 2. A Rectifier, who is not a distiller, as defined
23herein, may make sales and deliveries of alcoholic liquor to
24rectifiers, importing distributors, distributors, retailers
25and non-beverage users and to no other licensees.
26 Class 3. A Brewer may make sales and deliveries of beer to

SB1288- 3 -LRB100 09603 RPS 19771 b
1importing distributors and distributors and may make sales as
2authorized under subsection (e) of Section 6-4 of this Act.
3 Class 4. A first class wine-manufacturer may make sales and
4deliveries of up to 50,000 gallons of wine to manufacturers,
5importing distributors and distributors, and to no other
6licensees.
7 Class 5. A second class Wine manufacturer may make sales
8and deliveries of more than 50,000 gallons of wine to
9manufacturers, importing distributors and distributors and to
10no other licensees.
11 Class 6. A first-class wine-maker's license shall allow the
12manufacture of up to 50,000 gallons of wine per year, and the
13storage and sale of such wine to distributors in the State and
14to persons without the State, as may be permitted by law. A
15person who, prior to June 1, 2008 (the effective date of Public
16Act 95-634), is a holder of a first-class wine-maker's license
17and annually produces more than 25,000 gallons of its own wine
18and who distributes its wine to licensed retailers shall cease
19this practice on or before July 1, 2008 in compliance with
20Public Act 95-634.
21 Class 7. A second-class wine-maker's license shall allow
22the manufacture of between 50,000 and 150,000 gallons of wine
23per year, and the storage and sale of such wine to distributors
24in this State and to persons without the State, as may be
25permitted by law. A person who, prior to June 1, 2008 (the
26effective date of Public Act 95-634), is a holder of a

SB1288- 4 -LRB100 09603 RPS 19771 b
1second-class wine-maker's license and annually produces more
2than 25,000 gallons of its own wine and who distributes its
3wine to licensed retailers shall cease this practice on or
4before July 1, 2008 in compliance with Public Act 95-634.
5 Class 8. A limited wine-manufacturer may make sales and
6deliveries not to exceed 40,000 gallons of wine per year to
7distributors, and to non-licensees in accordance with the
8provisions of this Act.
9 Class 9. A craft distiller license shall allow the
10manufacture of up to 100,000 March 1, 2013 (Public Act 97-1166)
11gallons of spirits by distillation per year and the storage of
12such spirits. If a craft distiller licensee, including a craft
13distiller licensee who holds more than one craft distiller
14license, is not affiliated with any other manufacturer of
15spirits, then the craft distiller licensee may sell such
16spirits to distributors in this State and up to 2,500 gallons
17of such spirits to non-licensees to the extent permitted by any
18exemption approved by the Commission pursuant to Section 6-4 of
19this Act. A craft distiller license holder may store such
20spirits at a non-contiguous licensed location, but at no time
21shall a craft distiller license holder directly or indirectly
22produce in the aggregate more than 100,000 gallons of spirits
23per year.
24 A craft distiller licensee may hold more than one craft
25distiller's license. However, a craft distiller that holds more
26than one craft distiller license shall not manufacture, in the

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1aggregate, more than 100,000 gallons of spirits by distillation
2per year and shall not sell, in the aggregate, more than 2,500
3gallons of such spirits to non-licensees in accordance with an
4exemption approved by the State Commission pursuant to Section
56-4 of this Act.
6 A craft distiller may make sales and deliveries to
7importing distributors and distributors and may make sales and
8deliveries of up to 25,000 gallons of spirits to retail
9licensees per year.
10 Any craft distiller licensed under this Act who on July 28,
112010 (the effective date of Public Act 96-1367) was licensed as
12a distiller and manufactured no more spirits than permitted by
13this Section shall not be required to pay the initial licensing
14fee.
15 Class 10. A class 1 brewer license, which may only be
16issued to a licensed brewer or licensed non-resident dealer,
17shall allow the manufacture of up to 930,000 gallons of beer
18per year provided that the class 1 brewer licensee does not
19manufacture more than a combined 930,000 gallons of beer per
20year and is not a member of or affiliated with, directly or
21indirectly, a manufacturer that produces more than 930,000
22gallons of beer per year or any other alcoholic liquor. A class
231 brewer licensee may make sales and deliveries to importing
24distributors and distributors and to retail licensees in
25accordance with the conditions set forth in paragraph (18) of
26subsection (a) of Section 3-12 of this Act.

SB1288- 6 -LRB100 09603 RPS 19771 b
1 Class 11. A class 2 brewer license, which may only be
2issued to a licensed brewer or licensed non-resident dealer,
3shall allow the manufacture of up to 3,720,000 gallons of beer
4per year provided that the class 2 brewer licensee does not
5manufacture more than a combined 3,720,000 gallons of beer per
6year and is not a member of or affiliated with, directly or
7indirectly, a manufacturer that produces more than 3,720,000
8gallons of beer per year or any other alcoholic liquor. A class
92 brewer licensee may make sales and deliveries to importing
10distributors and distributors, but shall not make sales or
11deliveries to any other licensee. If the State Commission
12provides prior approval, a class 2 brewer licensee may annually
13transfer up to 3,720,000 gallons of beer manufactured by that
14class 2 brewer licensee to the premises of a licensed class 2
15brewer wholly owned and operated by the same licensee.
16 (a-1) A manufacturer which is licensed in this State to
17make sales or deliveries of alcoholic liquor to licensed
18distributors or importing distributors and which enlists
19agents, representatives, or individuals acting on its behalf
20who contact licensed retailers on a regular and continual basis
21in this State must register those agents, representatives, or
22persons acting on its behalf with the State Commission.
23 Registration of agents, representatives, or persons acting
24on behalf of a manufacturer is fulfilled by submitting a form
25to the Commission. The form shall be developed by the
26Commission and shall include the name and address of the

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

SB1288- 8 -LRB100 09603 RPS 19771 b
1alcoholic liquor in barrels, casks or other bulk containers and
2the bottling of such alcoholic liquors before resale thereof,
3but all bottles or containers so filled shall be sealed,
4labeled, stamped and otherwise made to comply with all
5provisions, rules and regulations governing manufacturers in
6the preparation and bottling of alcoholic liquors. The
7importing distributor's license shall permit such licensee to
8purchase alcoholic liquor from Illinois licensed non-resident
9dealers and foreign importers only. No person licensed as an
10importing distributor shall be granted a non-resident dealer's
11license.
12 (d) A retailer's license shall allow the licensee to sell
13and offer for sale at retail, only in the premises specified in
14the license, alcoholic liquor for use or consumption, but not
15for resale in any form. Nothing in Public Act 95-634 shall
16deny, limit, remove, or restrict the ability of a holder of a
17retailer's license to transfer, deliver, or ship alcoholic
18liquor to the purchaser for use or consumption subject to any
19applicable local law or ordinance. Any retail license issued to
20a manufacturer shall only permit the manufacturer to sell beer
21at retail on the premises actually occupied by the
22manufacturer. For the purpose of further describing the type of
23business conducted at a retail licensed premises, a retailer's
24licensee may be designated by the State Commission as (i) an on
25premise consumption retailer, (ii) an off premise sale
26retailer, or (iii) a combined on premise consumption and off

SB1288- 9 -LRB100 09603 RPS 19771 b
1premise sale retailer.
2 Notwithstanding any other provision of this subsection
3(d), a retail licensee may sell alcoholic liquors to a special
4event retailer licensee for resale to the extent permitted
5under subsection (e).
6 (e) A special event retailer's license (not-for-profit)
7shall permit the licensee to purchase alcoholic liquors from an
8Illinois licensed distributor (unless the licensee purchases
9less than $500 of alcoholic liquors for the special event, in
10which case the licensee may purchase the alcoholic liquors from
11a licensed retailer) and shall allow the licensee to sell and
12offer for sale, at retail, alcoholic liquors for use or
13consumption, but not for resale in any form and only at the
14location and on the specific dates designated for the special
15event in the license. An applicant for a special event retailer
16license must (i) furnish with the application: (A) a resale
17number issued under Section 2c of the Retailers' Occupation Tax
18Act or evidence that the applicant is registered under Section
192a of the Retailers' Occupation Tax Act, (B) a current, valid
20exemption identification number issued under Section 1g of the
21Retailers' Occupation Tax Act, and a certification to the
22Commission that the purchase of alcoholic liquors will be a
23tax-exempt purchase, or (C) a statement that the applicant is
24not registered under Section 2a of the Retailers' Occupation
25Tax Act, does not hold a resale number under Section 2c of the
26Retailers' Occupation Tax Act, and does not hold an exemption

SB1288- 10 -LRB100 09603 RPS 19771 b
1number under Section 1g of the Retailers' Occupation Tax Act,
2in which event the Commission shall set forth on the special
3event retailer's license a statement to that effect; (ii)
4submit with the application proof satisfactory to the State
5Commission that the applicant will provide dram shop liability
6insurance in the maximum limits; and (iii) show proof
7satisfactory to the State Commission that the applicant has
8obtained local authority approval.
9 (f) A railroad license shall permit the licensee to import
10alcoholic liquors into this State from any point in the United
11States outside this State and to store such alcoholic liquors
12in this State; to make wholesale purchases of alcoholic liquors
13directly from manufacturers, foreign importers, distributors
14and importing distributors from within or outside this State;
15and to store such alcoholic liquors in this State; provided
16that the above powers may be exercised only in connection with
17the importation, purchase or storage of alcoholic liquors to be
18sold or dispensed on a club, buffet, lounge or dining car
19operated on an electric, gas or steam railway in this State;
20and provided further, that railroad licensees exercising the
21above powers shall be subject to all provisions of Article VIII
22of this Act as applied to importing distributors. A railroad
23license shall also permit the licensee to sell or dispense
24alcoholic liquors on any club, buffet, lounge or dining car
25operated on an electric, gas or steam railway regularly
26operated by a common carrier in this State, but shall not

SB1288- 11 -LRB100 09603 RPS 19771 b
1permit the sale for resale of any alcoholic liquors to any
2licensee within this State. A license shall be obtained for
3each car in which such sales are made.
4 (g) A boat license shall allow the sale of alcoholic liquor
5in individual drinks, on any passenger boat regularly operated
6as a common carrier on navigable waters in this State or on any
7riverboat operated under the Riverboat Gambling Act, which boat
8or riverboat maintains a public dining room or restaurant
9thereon.
10 (h) A non-beverage user's license shall allow the licensee
11to purchase alcoholic liquor from a licensed manufacturer or
12importing distributor, without the imposition of any tax upon
13the business of such licensed manufacturer or importing
14distributor as to such alcoholic liquor to be used by such
15licensee solely for the non-beverage purposes set forth in
16subsection (a) of Section 8-1 of this Act, and such licenses
17shall be divided and classified and shall permit the purchase,
18possession and use of limited and stated quantities of
19alcoholic liquor as follows:
20Class 1, not to exceed ......................... 500 gallons
21Class 2, not to exceed ....................... 1,000 gallons
22Class 3, not to exceed ....................... 5,000 gallons
23Class 4, not to exceed ...................... 10,000 gallons
24Class 5, not to exceed ....................... 50,000 gallons
25 (i) A wine-maker's premises license shall allow a licensee
26that concurrently holds a first-class wine-maker's license to

SB1288- 12 -LRB100 09603 RPS 19771 b
1sell and offer for sale at retail in the premises specified in
2such license not more than 50,000 gallons of the first-class
3wine-maker's wine that is made at the first-class wine-maker's
4licensed premises per year for use or consumption, but not for
5resale in any form. A wine-maker's premises license shall allow
6a licensee who concurrently holds a second-class wine-maker's
7license to sell and offer for sale at retail in the premises
8specified in such license up to 100,000 gallons of the
9second-class wine-maker's wine that is made at the second-class
10wine-maker's licensed premises per year for use or consumption
11but not for resale in any form. A wine-maker's premises license
12shall allow a licensee that concurrently holds a first-class
13wine-maker's license or a second-class wine-maker's license to
14sell and offer for sale at retail at the premises specified in
15the wine-maker's premises license, for use or consumption but
16not for resale in any form, any beer, wine, and spirits
17purchased from a licensed distributor. Upon approval from the
18State Commission, a wine-maker's premises license shall allow
19the licensee to sell and offer for sale at (i) the wine-maker's
20licensed premises and (ii) at up to 2 additional locations for
21use and consumption and not for resale. Each location shall
22require additional licensing per location as specified in
23Section 5-3 of this Act. A wine-maker's premises licensee shall
24secure liquor liability insurance coverage in an amount at
25least equal to the maximum liability amounts set forth in
26subsection (a) of Section 6-21 of this Act.

SB1288- 13 -LRB100 09603 RPS 19771 b
1 (j) An airplane license shall permit the licensee to import
2alcoholic liquors into this State from any point in the United
3States outside this State and to store such alcoholic liquors
4in this State; to make wholesale purchases of alcoholic liquors
5directly from manufacturers, foreign importers, distributors
6and importing distributors from within or outside this State;
7and to store such alcoholic liquors in this State; provided
8that the above powers may be exercised only in connection with
9the importation, purchase or storage of alcoholic liquors to be
10sold or dispensed on an airplane; and provided further, that
11airplane licensees exercising the above powers shall be subject
12to all provisions of Article VIII of this Act as applied to
13importing distributors. An airplane licensee shall also permit
14the sale or dispensing of alcoholic liquors on any passenger
15airplane regularly operated by a common carrier in this State,
16but shall not permit the sale for resale of any alcoholic
17liquors to any licensee within this State. A single airplane
18license shall be required of an airline company if liquor
19service is provided on board aircraft in this State. The annual
20fee for such license shall be as determined in Section 5-3.
21 (k) A foreign importer's license shall permit such licensee
22to purchase alcoholic liquor from Illinois licensed
23non-resident dealers only, and to import alcoholic liquor other
24than in bulk from any point outside the United States and to
25sell such alcoholic liquor to Illinois licensed importing
26distributors and to no one else in Illinois; provided that (i)

SB1288- 14 -LRB100 09603 RPS 19771 b
1the foreign importer registers with the State Commission every
2brand of alcoholic liquor that it proposes to sell to Illinois
3licensees during the license period, (ii) the foreign importer
4complies with all of the provisions of Section 6-9 of this Act
5with respect to registration of such Illinois licensees as may
6be granted the right to sell such brands at wholesale, and
7(iii) the foreign importer complies with the provisions of
8Sections 6-5 and 6-6 of this Act to the same extent that these
9provisions apply to manufacturers.
10 (l) (i) A broker's license shall be required of all persons
11who solicit orders for, offer to sell or offer to supply
12alcoholic liquor to retailers in the State of Illinois, or who
13offer to retailers to ship or cause to be shipped or to make
14contact with distillers, rectifiers, brewers or manufacturers
15or any other party within or without the State of Illinois in
16order that alcoholic liquors be shipped to a distributor,
17importing distributor or foreign importer, whether such
18solicitation or offer is consummated within or without the
19State of Illinois.
20 No holder of a retailer's license issued by the Illinois
21Liquor Control Commission shall purchase or receive any
22alcoholic liquor, the order for which was solicited or offered
23for sale to such retailer by a broker unless the broker is the
24holder of a valid broker's license.
25 The broker shall, upon the acceptance by a retailer of the
26broker's solicitation of an order or offer to sell or supply or

SB1288- 15 -LRB100 09603 RPS 19771 b
1deliver or have delivered alcoholic liquors, promptly forward
2to the Illinois Liquor Control Commission a notification of
3said transaction in such form as the Commission may by
4regulations prescribe.
5 (ii) A broker's license shall be required of a person
6within this State, other than a retail licensee, who, for a fee
7or commission, promotes, solicits, or accepts orders for
8alcoholic liquor, for use or consumption and not for resale, to
9be shipped from this State and delivered to residents outside
10of this State by an express company, common carrier, or
11contract carrier. This Section does not apply to any person who
12promotes, solicits, or accepts orders for wine as specifically
13authorized in Section 6-29 of this Act.
14 A broker's license under this subsection (l) shall not
15entitle the holder to buy or sell any alcoholic liquors for his
16own account or to take or deliver title to such alcoholic
17liquors.
18 This subsection (l) shall not apply to distributors,
19employees of distributors, or employees of a manufacturer who
20has registered the trademark, brand or name of the alcoholic
21liquor pursuant to Section 6-9 of this Act, and who regularly
22sells such alcoholic liquor in the State of Illinois only to
23its registrants thereunder.
24 Any agent, representative, or person subject to
25registration pursuant to subsection (a-1) of this Section shall
26not be eligible to receive a broker's license.

SB1288- 16 -LRB100 09603 RPS 19771 b
1 (m) A non-resident dealer's license shall permit such
2licensee to ship into and warehouse alcoholic liquor into this
3State from any point outside of this State, and to sell such
4alcoholic liquor to Illinois licensed foreign importers and
5importing distributors and to no one else in this State;
6provided that (i) said non-resident dealer shall register with
7the Illinois Liquor Control Commission each and every brand of
8alcoholic liquor which it proposes to sell to Illinois
9licensees during the license period, (ii) it shall comply with
10all of the provisions of Section 6-9 hereof with respect to
11registration of such Illinois licensees as may be granted the
12right to sell such brands at wholesale, and (iii) the
13non-resident dealer shall comply with the provisions of
14Sections 6-5 and 6-6 of this Act to the same extent that these
15provisions apply to manufacturers. No person licensed as a
16non-resident dealer shall be granted a distributor's or
17importing distributor's license.
18 (n) A brew pub license shall allow the licensee to only (i)
19manufacture up to 155,000 gallons of beer per year only on the
20premises specified in the license, (ii) make sales of the beer
21manufactured on the premises or, with the approval of the
22Commission, beer manufactured on another brew pub licensed
23premises that is wholly owned and operated by the same licensee
24to importing distributors, distributors, and to non-licensees
25for use and consumption, (iii) store the beer upon the
26premises, (iv) sell and offer for sale at retail from the

SB1288- 17 -LRB100 09603 RPS 19771 b
1licensed premises for off-premises consumption no more than
2155,000 gallons per year so long as such sales are only made
3in-person, (v) sell and offer for sale at retail for use and
4consumption on the premises specified in the license any form
5of alcoholic liquor purchased from a licensed distributor or
6importing distributor, and (vi) with the prior approval of the
7Commission, annually transfer no more than 155,000 gallons of
8beer manufactured on the premises to a licensed brew pub wholly
9owned and operated by the same licensee.
10 A brew pub licensee shall not under any circumstance sell
11or offer for sale beer manufactured by the brew pub licensee to
12retail licensees.
13 A person who holds a class 2 brewer license may
14simultaneously hold a brew pub license if the class 2 brewer
15(i) does not, under any circumstance, sell or offer for sale
16beer manufactured by the class 2 brewer to retail licensees;
17(ii) does not hold more than 3 brew pub licenses in this State;
18(iii) does not manufacture more than a combined 3,720,000
19gallons of beer per year, including the beer manufactured at
20the brew pub; and (iv) is not a member of or affiliated with,
21directly or indirectly, a manufacturer that produces more than
223,720,000 gallons of beer per year or any other alcoholic
23liquor.
24 Notwithstanding any other provision of this Act, a licensed
25brewer, class 2 brewer, or non-resident dealer who before July
261, 2015 manufactured less than 3,720,000 gallons of beer per

SB1288- 18 -LRB100 09603 RPS 19771 b
1year and held a brew pub license on or before July 1, 2015 may
2(i) continue to qualify for and hold that brew pub license for
3the licensed premises and (ii) manufacture more than 3,720,000
4gallons of beer per year and continue to qualify for and hold
5that brew pub license if that brewer, class 2 brewer, or
6non-resident dealer does not simultaneously hold a class 1
7brewer license and is not a member of or affiliated with,
8directly or indirectly, a manufacturer that produces more than
93,720,000 gallons of beer per year or that produces any other
10alcoholic liquor.
11 (o) A caterer retailer license shall allow the holder to
12serve alcoholic liquors as an incidental part of a food service
13that serves prepared meals which excludes the serving of snacks
14as the primary meal, either on or off-site whether licensed or
15unlicensed.
16 (p) An auction liquor license shall allow the licensee to
17sell and offer for sale at auction wine and spirits for use or
18consumption, or for resale by an Illinois liquor licensee in
19accordance with provisions of this Act. An auction liquor
20license will be issued to a person and it will permit the
21auction liquor licensee to hold the auction anywhere in the
22State. An auction liquor license must be obtained for each
23auction at least 14 days in advance of the auction date.
24 (q) A special use permit license shall allow an Illinois
25licensed retailer to transfer a portion of its alcoholic liquor
26inventory from its retail licensed premises to the premises

SB1288- 19 -LRB100 09603 RPS 19771 b
1specified in the license hereby created, and to sell or offer
2for sale at retail, only in the premises specified in the
3license hereby created, the transferred alcoholic liquor for
4use or consumption, but not for resale in any form. A special
5use permit license may be granted for the following time
6periods: one day or less; 2 or more days to a maximum of 15 days
7per location in any 12-month 12 month period. An applicant for
8the special use permit license must also submit with the
9application proof satisfactory to the State Commission that the
10applicant will provide dram shop liability insurance to the
11maximum limits and have local authority approval.
12 (r) A winery shipper's license shall allow a person with a
13first-class or second-class wine manufacturer's license, a
14first-class or second-class wine-maker's license, or a limited
15wine manufacturer's license or who is licensed to make wine
16under the laws of another state to ship wine made by that
17licensee directly to a resident of this State who is 21 years
18of age or older for that resident's personal use and not for
19resale. Prior to receiving a winery shipper's license, an
20applicant for the license must provide the Commission with a
21true copy of its current license in any state in which it is
22licensed as a manufacturer of wine. An applicant for a winery
23shipper's license must also complete an application form that
24provides any other information the Commission deems necessary.
25The application form shall include all addresses from which the
26applicant for a winery shipper's license intends to ship wine,

SB1288- 20 -LRB100 09603 RPS 19771 b
1including the name and address of any third party, except for a
2common carrier, authorized to ship wine on behalf of the
3manufacturer. The application form shall include an
4acknowledgement consenting to the jurisdiction of the
5Commission, the Illinois Department of Revenue, and the courts
6of this State concerning the enforcement of this Act and any
7related laws, rules, and regulations, including authorizing
8the Department of Revenue and the Commission to conduct audits
9for the purpose of ensuring compliance with Public Act 95-634,
10and an acknowledgement that the wine manufacturer is in
11compliance with Section 6-2 of this Act. Any third party,
12except for a common carrier, authorized to ship wine on behalf
13of a first-class or second-class wine manufacturer's licensee,
14a first-class or second-class wine-maker's licensee, a limited
15wine manufacturer's licensee, or a person who is licensed to
16make wine under the laws of another state shall also be
17disclosed by the winery shipper's licensee, and a copy of the
18written appointment of the third-party wine provider, except
19for a common carrier, to the wine manufacturer shall be filed
20with the State Commission as a supplement to the winery
21shipper's license application or any renewal thereof. The
22winery shipper's license holder shall affirm under penalty of
23perjury, as part of the winery shipper's license application or
24renewal, that he or she only ships wine, either directly or
25indirectly through a third-party provider, from the licensee's
26own production.

SB1288- 21 -LRB100 09603 RPS 19771 b
1 Except for a common carrier, a third-party provider
2shipping wine on behalf of a winery shipper's license holder is
3the agent of the winery shipper's license holder and, as such,
4a winery shipper's license holder is responsible for the acts
5and omissions of the third-party provider acting on behalf of
6the license holder. A third-party provider, except for a common
7carrier, that engages in shipping wine into Illinois on behalf
8of a winery shipper's license holder shall consent to the
9jurisdiction of the State Commission and the State. Any
10third-party, except for a common carrier, holding such an
11appointment shall, by February 1 of each calendar year, file
12with the State Commission a statement detailing each shipment
13made to an Illinois resident. The State Commission shall adopt
14rules as soon as practicable to implement the requirements of
15Public Act 99-904 this amendatory Act of the 99th General
16Assembly and shall adopt rules prohibiting any such third-party
17appointment of a third-party provider, except for a common
18carrier, that has been deemed by the State Commission to have
19violated the provisions of this Act with regard to any winery
20shipper licensee.
21 A winery shipper licensee must pay to the Department of
22Revenue the State liquor gallonage tax under Section 8-1 for
23all wine that is sold by the licensee and shipped to a person
24in this State. For the purposes of Section 8-1, a winery
25shipper licensee shall be taxed in the same manner as a
26manufacturer of wine. A licensee who is not otherwise required

SB1288- 22 -LRB100 09603 RPS 19771 b
1to register under the Retailers' Occupation Tax Act must
2register under the Use Tax Act to collect and remit use tax to
3the Department of Revenue for all gallons of wine that are sold
4by the licensee and shipped to persons in this State. If a
5licensee fails to remit the tax imposed under this Act in
6accordance with the provisions of Article VIII of this Act, the
7winery shipper's license shall be revoked in accordance with
8the provisions of Article VII of this Act. If a licensee fails
9to properly register and remit tax under the Use Tax Act or the
10Retailers' Occupation Tax Act for all wine that is sold by the
11winery shipper and shipped to persons in this State, the winery
12shipper's license shall be revoked in accordance with the
13provisions of Article VII of this Act.
14 A winery shipper licensee must collect, maintain, and
15submit to the Commission on a semi-annual basis the total
16number of cases per resident of wine shipped to residents of
17this State. A winery shipper licensed under this subsection (r)
18must comply with the requirements of Section 6-29 of this Act.
19 Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
20Section 3-12, the State Commission may receive, respond to, and
21investigate any complaint and impose any of the remedies
22specified in paragraph (1) of subsection (a) of Section 3-12.
23 (s) A craft distiller tasting permit license shall allow an
24Illinois licensed craft distiller to transfer a portion of its
25alcoholic liquor inventory from its craft distiller licensed
26premises to the premises specified in the license hereby

SB1288- 23 -LRB100 09603 RPS 19771 b
1created and to conduct a sampling, only in the premises
2specified in the license hereby created, of the transferred
3alcoholic liquor in accordance with subsection (c) of Section
46-31 of this Act. The transferred alcoholic liquor may not be
5sold or resold in any form. An applicant for the craft
6distiller tasting permit license must also submit with the
7application proof satisfactory to the State Commission that the
8applicant will provide dram shop liability insurance to the
9maximum limits and have local authority approval.
10(Source: P.A. 98-394, eff. 8-16-13; 98-401, eff. 8-16-13;
1198-756, eff. 7-16-14; 99-448, eff. 8-24-15; 99-642, eff.
127-28-16; 99-800, eff. 8-12-16; 99-902, eff. 8-26-16; 99-904,
13eff. 1-1-17; revised 9-15-16.)
14 Section 99. Effective date. This Act takes effect upon
15becoming law.
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