Bill Text: IL SB2286 | 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 2-1)

Status: (Introduced) 2018-02-13 - Senate Committee Amendment No. 1 Pursuant to Senate Rule 3-8(c-1) - Referred to Executive [SB2286 Detail]

Download: Illinois-2017-SB2286-Introduced.html


100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB2286

Introduced 1/10/2018, by Sen. 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 15372 RPS 30346 b

A BILL FOR

SB2286LRB100 15372 RPS 30346 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,

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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

SB2286- 3 -LRB100 15372 RPS 30346 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

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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 gallons of spirits by distillation
11per year and the storage of such spirits. If a craft distiller
12licensee, including a craft distiller licensee who holds more
13than one craft distiller license, is not affiliated with any
14other manufacturer of spirits, then the craft distiller
15licensee may sell such spirits to distributors in this State
16and up to 2,500 gallons of such spirits to non-licensees to the
17extent permitted by any exemption approved by the Commission
18pursuant to Section 6-4 of this Act. A craft distiller license
19holder may store such spirits at a non-contiguous licensed
20location, but at no time shall a craft distiller license holder
21directly or indirectly produce in the aggregate more than
22100,000 gallons of spirits per year.
23 A craft distiller licensee may hold more than one craft
24distiller's license. However, a craft distiller that holds more
25than one craft distiller license shall not manufacture, in the
26aggregate, more than 100,000 gallons of spirits by distillation

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1per year and shall not sell, in the aggregate, more than 2,500
2gallons of such spirits to non-licensees in accordance with an
3exemption approved by the State Commission pursuant to Section
46-4 of this Act.
5 A craft distiller may make sales and deliveries to
6importing distributors and distributors and may make sales and
7deliveries of up to 25,000 gallons of spirits to retail
8licensees per year.
9 Any craft distiller licensed under this Act who on July 28,
102010 (the effective date of Public Act 96-1367) was licensed as
11a distiller and manufactured no more spirits than permitted by
12this Section shall not be required to pay the initial licensing
13fee.
14 Class 10. A class 1 brewer license, which may only be
15issued to a licensed brewer or licensed non-resident dealer,
16shall allow the manufacture of up to 930,000 gallons of beer
17per year provided that the class 1 brewer licensee does not
18manufacture more than a combined 930,000 gallons of beer per
19year and is not a member of or affiliated with, directly or
20indirectly, a manufacturer that produces more than 930,000
21gallons of beer per year or any other alcoholic liquor. A class
221 brewer licensee may make sales and deliveries to importing
23distributors and distributors and to retail licensees in
24accordance with the conditions set forth in paragraph (18) of
25subsection (a) of Section 3-12 of this Act.
26 Class 11. A class 2 brewer license, which may only be

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1issued to a licensed brewer or licensed non-resident dealer,
2shall allow the manufacture of up to 3,720,000 gallons of beer
3per year provided that the class 2 brewer licensee does not
4manufacture more than a combined 3,720,000 gallons of beer per
5year and is not a member of or affiliated with, directly or
6indirectly, a manufacturer that produces more than 3,720,000
7gallons of beer per year or any other alcoholic liquor. A class
82 brewer licensee may make sales and deliveries to importing
9distributors and distributors, but shall not make sales or
10deliveries to any other licensee. If the State Commission
11provides prior approval, a class 2 brewer licensee may annually
12transfer up to 3,720,000 gallons of beer manufactured by that
13class 2 brewer licensee to the premises of a licensed class 2
14brewer wholly owned and operated by the same licensee.
15 (a-1) A manufacturer which is licensed in this State to
16make sales or deliveries of alcoholic liquor to licensed
17distributors or importing distributors and which enlists
18agents, representatives, or individuals acting on its behalf
19who contact licensed retailers on a regular and continual basis
20in this State must register those agents, representatives, or
21persons acting on its behalf with the State Commission.
22 Registration of agents, representatives, or persons acting
23on behalf of a manufacturer is fulfilled by submitting a form
24to the Commission. The form shall be developed by the
25Commission and shall include the name and address of the
26applicant, the name and address of the manufacturer he or she

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

SB2286- 8 -LRB100 15372 RPS 30346 b
1the bottling of such alcoholic liquors before resale thereof,
2but all bottles or containers so filled shall be sealed,
3labeled, stamped and otherwise made to comply with all
4provisions, rules and regulations governing manufacturers in
5the preparation and bottling of alcoholic liquors. The
6importing distributor's license shall permit such licensee to
7purchase alcoholic liquor from Illinois licensed non-resident
8dealers and foreign importers only. No person licensed as an
9importing distributor shall be granted a non-resident dealer's
10license.
11 (d) A retailer's license shall allow the licensee to sell
12and offer for sale at retail, only in the premises specified in
13the license, alcoholic liquor for use or consumption, but not
14for resale in any form. Nothing in Public Act 95-634 shall
15deny, limit, remove, or restrict the ability of a holder of a
16retailer's license to transfer, deliver, or ship alcoholic
17liquor to the purchaser for use or consumption subject to any
18applicable local law or ordinance. Any retail license issued to
19a manufacturer shall only permit the manufacturer to sell beer
20at retail on the premises actually occupied by the
21manufacturer. For the purpose of further describing the type of
22business conducted at a retail licensed premises, a retailer's
23licensee may be designated by the State Commission as (i) an on
24premise consumption retailer, (ii) an off premise sale
25retailer, or (iii) a combined on premise consumption and off
26premise sale retailer.

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1 Notwithstanding any other provision of this subsection
2(d), a retail licensee may sell alcoholic liquors to a special
3event retailer licensee for resale to the extent permitted
4under subsection (e).
5 (e) A special event retailer's license (not-for-profit)
6shall permit the licensee to purchase alcoholic liquors from an
7Illinois licensed distributor (unless the licensee purchases
8less than $500 of alcoholic liquors for the special event, in
9which case the licensee may purchase the alcoholic liquors from
10a licensed retailer) and shall allow the licensee to sell and
11offer for sale, at retail, alcoholic liquors for use or
12consumption, but not for resale in any form and only at the
13location and on the specific dates designated for the special
14event in the license. An applicant for a special event retailer
15license must (i) furnish with the application: (A) a resale
16number issued under Section 2c of the Retailers' Occupation Tax
17Act or evidence that the applicant is registered under Section
182a of the Retailers' Occupation Tax Act, (B) a current, valid
19exemption identification number issued under Section 1g of the
20Retailers' Occupation Tax Act, and a certification to the
21Commission that the purchase of alcoholic liquors will be a
22tax-exempt purchase, or (C) a statement that the applicant is
23not registered under Section 2a of the Retailers' Occupation
24Tax Act, does not hold a resale number under Section 2c of the
25Retailers' Occupation Tax Act, and does not hold an exemption
26number under Section 1g of the Retailers' Occupation Tax Act,

SB2286- 10 -LRB100 15372 RPS 30346 b
1in which event the Commission shall set forth on the special
2event retailer's license a statement to that effect; (ii)
3submit with the application proof satisfactory to the State
4Commission that the applicant will provide dram shop liability
5insurance in the maximum limits; and (iii) show proof
6satisfactory to the State Commission that the applicant has
7obtained local authority approval.
8 (f) A railroad license shall permit the licensee to import
9alcoholic liquors into this State from any point in the United
10States outside this State and to store such alcoholic liquors
11in this State; to make wholesale purchases of alcoholic liquors
12directly from manufacturers, foreign importers, distributors
13and importing distributors from within or outside this State;
14and to store such alcoholic liquors in this State; provided
15that the above powers may be exercised only in connection with
16the importation, purchase or storage of alcoholic liquors to be
17sold or dispensed on a club, buffet, lounge or dining car
18operated on an electric, gas or steam railway in this State;
19and provided further, that railroad licensees exercising the
20above powers shall be subject to all provisions of Article VIII
21of this Act as applied to importing distributors. A railroad
22license shall also permit the licensee to sell or dispense
23alcoholic liquors on any club, buffet, lounge or dining car
24operated on an electric, gas or steam railway regularly
25operated by a common carrier in this State, but shall not
26permit the sale for resale of any alcoholic liquors to any

SB2286- 11 -LRB100 15372 RPS 30346 b
1licensee within this State. A license shall be obtained for
2each car in which such sales are made.
3 (g) A boat license shall allow the sale of alcoholic liquor
4in individual drinks, on any passenger boat regularly operated
5as a common carrier on navigable waters in this State or on any
6riverboat operated under the Riverboat Gambling Act, which boat
7or riverboat maintains a public dining room or restaurant
8thereon.
9 (h) A non-beverage user's license shall allow the licensee
10to purchase alcoholic liquor from a licensed manufacturer or
11importing distributor, without the imposition of any tax upon
12the business of such licensed manufacturer or importing
13distributor as to such alcoholic liquor to be used by such
14licensee solely for the non-beverage purposes set forth in
15subsection (a) of Section 8-1 of this Act, and such licenses
16shall be divided and classified and shall permit the purchase,
17possession and use of limited and stated quantities of
18alcoholic liquor as follows:
19Class 1, not to exceed ......................... 500 gallons
20Class 2, not to exceed ....................... 1,000 gallons
21Class 3, not to exceed ....................... 5,000 gallons
22Class 4, not to exceed ...................... 10,000 gallons
23Class 5, not to exceed ....................... 50,000 gallons
24 (i) A wine-maker's premises license shall allow a licensee
25that concurrently holds a first-class wine-maker's license to
26sell and offer for sale at retail in the premises specified in

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

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

SB2286- 14 -LRB100 15372 RPS 30346 b
1brand of alcoholic liquor that it proposes to sell to Illinois
2licensees during the license period, (ii) the foreign importer
3complies with all of the provisions of Section 6-9 of this Act
4with respect to registration of such Illinois licensees as may
5be granted the right to sell such brands at wholesale, and
6(iii) the foreign importer complies with the provisions of
7Sections 6-5 and 6-6 of this Act to the same extent that these
8provisions apply to manufacturers.
9 (l) (i) A broker's license shall be required of all persons
10who solicit orders for, offer to sell or offer to supply
11alcoholic liquor to retailers in the State of Illinois, or who
12offer to retailers to ship or cause to be shipped or to make
13contact with distillers, rectifiers, brewers or manufacturers
14or any other party within or without the State of Illinois in
15order that alcoholic liquors be shipped to a distributor,
16importing distributor or foreign importer, whether such
17solicitation or offer is consummated within or without the
18State of Illinois.
19 No holder of a retailer's license issued by the Illinois
20Liquor Control Commission shall purchase or receive any
21alcoholic liquor, the order for which was solicited or offered
22for sale to such retailer by a broker unless the broker is the
23holder of a valid broker's license.
24 The broker shall, upon the acceptance by a retailer of the
25broker's solicitation of an order or offer to sell or supply or
26deliver or have delivered alcoholic liquors, promptly forward

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

SB2286- 16 -LRB100 15372 RPS 30346 b
1licensee to ship into and warehouse alcoholic liquor into this
2State from any point outside of this State, and to sell such
3alcoholic liquor to Illinois licensed foreign importers and
4importing distributors and to no one else in this State;
5provided that (i) said non-resident dealer shall register with
6the Illinois Liquor Control Commission each and every brand of
7alcoholic liquor which it proposes to sell to Illinois
8licensees during the license period, (ii) it shall comply with
9all of the provisions of Section 6-9 hereof with respect to
10registration of such Illinois licensees as may be granted the
11right to sell such brands at wholesale, and (iii) the
12non-resident dealer shall comply with the provisions of
13Sections 6-5 and 6-6 of this Act to the same extent that these
14provisions apply to manufacturers. No person licensed as a
15non-resident dealer shall be granted a distributor's or
16importing distributor's license.
17 (n) A brew pub license shall allow the licensee to only (i)
18manufacture up to 155,000 gallons of beer per year only on the
19premises specified in the license, (ii) make sales of the beer
20manufactured on the premises or, with the approval of the
21Commission, beer manufactured on another brew pub licensed
22premises that is wholly owned and operated by the same licensee
23to importing distributors, distributors, and to non-licensees
24for use and consumption, (iii) store the beer upon the
25premises, (iv) sell and offer for sale at retail from the
26licensed premises for off-premises consumption no more than

SB2286- 17 -LRB100 15372 RPS 30346 b
1155,000 gallons per year so long as such sales are only made
2in-person, (v) sell and offer for sale at retail for use and
3consumption on the premises specified in the license any form
4of alcoholic liquor purchased from a licensed distributor or
5importing distributor, and (vi) with the prior approval of the
6Commission, annually transfer no more than 155,000 gallons of
7beer manufactured on the premises to a licensed brew pub wholly
8owned and operated by the same licensee.
9 A brew pub licensee shall not under any circumstance sell
10or offer for sale beer manufactured by the brew pub licensee to
11retail licensees.
12 A person who holds a class 2 brewer license may
13simultaneously hold a brew pub license if the class 2 brewer
14(i) does not, under any circumstance, sell or offer for sale
15beer manufactured by the class 2 brewer to retail licensees;
16(ii) does not hold more than 3 brew pub licenses in this State;
17(iii) does not manufacture more than a combined 3,720,000
18gallons of beer per year, including the beer manufactured at
19the brew pub; and (iv) is not a member of or affiliated with,
20directly or indirectly, a manufacturer that produces more than
213,720,000 gallons of beer per year or any other alcoholic
22liquor.
23 Notwithstanding any other provision of this Act, a licensed
24brewer, class 2 brewer, or non-resident dealer who before July
251, 2015 manufactured less than 3,720,000 gallons of beer per
26year and held a brew pub license on or before July 1, 2015 may

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1(i) continue to qualify for and hold that brew pub license for
2the licensed premises and (ii) manufacture more than 3,720,000
3gallons of beer per year and continue to qualify for and hold
4that brew pub license if that brewer, class 2 brewer, or
5non-resident dealer does not simultaneously hold a class 1
6brewer license and is not a member of or affiliated with,
7directly or indirectly, a manufacturer that produces more than
83,720,000 gallons of beer per year or that produces any other
9alcoholic liquor.
10 (o) A caterer retailer license shall allow the holder to
11serve alcoholic liquors as an incidental part of a food service
12that serves prepared meals which excludes the serving of snacks
13as the primary meal, either on or off-site whether licensed or
14unlicensed.
15 (p) An auction liquor license shall allow the licensee to
16sell and offer for sale at auction wine and spirits for use or
17consumption, or for resale by an Illinois liquor licensee in
18accordance with provisions of this Act. An auction liquor
19license will be issued to a person and it will permit the
20auction liquor licensee to hold the auction anywhere in the
21State. An auction liquor license must be obtained for each
22auction at least 14 days in advance of the auction date.
23 (q) A special use permit license shall allow an Illinois
24licensed retailer to transfer a portion of its alcoholic liquor
25inventory from its retail licensed premises to the premises
26specified in the license hereby created, and to sell or offer

SB2286- 19 -LRB100 15372 RPS 30346 b
1for sale at retail, only in the premises specified in the
2license hereby created, the transferred alcoholic liquor for
3use or consumption, but not for resale in any form. A special
4use permit license may be granted for the following time
5periods: one day or less; 2 or more days to a maximum of 15 days
6per location in any 12-month period. An applicant for the
7special use permit license must also submit with the
8application proof satisfactory to the State Commission that the
9applicant will provide dram shop liability insurance to the
10maximum limits and have local authority approval.
11 (r) A winery shipper's license shall allow a person with a
12first-class or second-class wine manufacturer's license, a
13first-class or second-class wine-maker's license, or a limited
14wine manufacturer's license or who is licensed to make wine
15under the laws of another state to ship wine made by that
16licensee directly to a resident of this State who is 21 years
17of age or older for that resident's personal use and not for
18resale. Prior to receiving a winery shipper's license, an
19applicant for the license must provide the Commission with a
20true copy of its current license in any state in which it is
21licensed as a manufacturer of wine. An applicant for a winery
22shipper's license must also complete an application form that
23provides any other information the Commission deems necessary.
24The application form shall include all addresses from which the
25applicant for a winery shipper's license intends to ship wine,
26including the name and address of any third party, except for a

SB2286- 20 -LRB100 15372 RPS 30346 b
1common carrier, authorized to ship wine on behalf of the
2manufacturer. The application form shall include an
3acknowledgement consenting to the jurisdiction of the
4Commission, the Illinois Department of Revenue, and the courts
5of this State concerning the enforcement of this Act and any
6related laws, rules, and regulations, including authorizing
7the Department of Revenue and the Commission to conduct audits
8for the purpose of ensuring compliance with Public Act 95-634,
9and an acknowledgement that the wine manufacturer is in
10compliance with Section 6-2 of this Act. Any third party,
11except for a common carrier, authorized to ship wine on behalf
12of a first-class or second-class wine manufacturer's licensee,
13a first-class or second-class wine-maker's licensee, a limited
14wine manufacturer's licensee, or a person who is licensed to
15make wine under the laws of another state shall also be
16disclosed by the winery shipper's licensee, and a copy of the
17written appointment of the third-party wine provider, except
18for a common carrier, to the wine manufacturer shall be filed
19with the State Commission as a supplement to the winery
20shipper's license application or any renewal thereof. The
21winery shipper's license holder shall affirm under penalty of
22perjury, as part of the winery shipper's license application or
23renewal, that he or she only ships wine, either directly or
24indirectly through a third-party provider, from the licensee's
25own production.
26 Except for a common carrier, a third-party provider

SB2286- 21 -LRB100 15372 RPS 30346 b
1shipping wine on behalf of a winery shipper's license holder is
2the agent of the winery shipper's license holder and, as such,
3a winery shipper's license holder is responsible for the acts
4and omissions of the third-party provider acting on behalf of
5the license holder. A third-party provider, except for a common
6carrier, that engages in shipping wine into Illinois on behalf
7of a winery shipper's license holder shall consent to the
8jurisdiction of the State Commission and the State. Any
9third-party, except for a common carrier, holding such an
10appointment shall, by February 1 of each calendar year and upon
11request by the State Commission or the Department of Revenue,
12file with the State Commission a statement detailing each
13shipment made to an Illinois resident. The statement shall
14include the name and address of the third-party provider filing
15the statement, the time period covered by the statement, and
16the following information:
17 (1) the name, address, and license number of the winery
18 shipper on whose behalf the shipment was made;
19 (2) the quantity of the products delivered; and
20 (3) the date and address of the shipment.
21If the Department of Revenue or the State Commission requests a
22statement under this paragraph, the third-party provider must
23provide that statement no later than 30 days after the request
24is made. Any books, records, supporting papers, and documents
25containing information and data relating to a statement under
26this paragraph shall be kept and preserved for a period of 3

SB2286- 22 -LRB100 15372 RPS 30346 b
1years, unless their destruction sooner is authorized, in
2writing, by the Director of Revenue, and shall be open and
3available to inspection by the Director of Revenue or the State
4Commission or any duly authorized officer, agent, or employee
5of the State Commission or the Department of Revenue, at all
6times during business hours of the day. Any person who violates
7any provision of this paragraph or any rule of the State
8Commission for the administration and enforcement of the
9provisions of this paragraph is guilty of a Class C
10misdemeanor. In case of a continuing violation, each day's
11continuance thereof shall be a separate and distinct offense.
12 The State Commission shall adopt rules as soon as
13practicable to implement the requirements of Public Act 99-904
14and shall adopt rules prohibiting any such third-party
15appointment of a third-party provider, except for a common
16carrier, that has been deemed by the State Commission to have
17violated the provisions of this Act with regard to any winery
18shipper licensee.
19 A winery shipper licensee must pay to the Department of
20Revenue the State liquor gallonage tax under Section 8-1 for
21all wine that is sold by the licensee and shipped to a person
22in this State. For the purposes of Section 8-1, a winery
23shipper licensee shall be taxed in the same manner as a
24manufacturer of wine. A licensee who is not otherwise required
25to register under the Retailers' Occupation Tax Act must
26register under the Use Tax Act to collect and remit use tax to

SB2286- 23 -LRB100 15372 RPS 30346 b
1the Department of Revenue for all gallons of wine that are sold
2by the licensee and shipped to persons in this State. If a
3licensee fails to remit the tax imposed under this Act in
4accordance with the provisions of Article VIII of this Act, the
5winery shipper's license shall be revoked in accordance with
6the provisions of Article VII of this Act. If a licensee fails
7to properly register and remit tax under the Use Tax Act or the
8Retailers' Occupation Tax Act for all wine that is sold by the
9winery shipper and shipped to persons in this State, the winery
10shipper's license shall be revoked in accordance with the
11provisions of Article VII of this Act.
12 A winery shipper licensee must collect, maintain, and
13submit to the Commission on a semi-annual basis the total
14number of cases per resident of wine shipped to residents of
15this State. A winery shipper licensed under this subsection (r)
16must comply with the requirements of Section 6-29 of this Act.
17 Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
18Section 3-12, the State Commission may receive, respond to, and
19investigate any complaint and impose any of the remedies
20specified in paragraph (1) of subsection (a) of Section 3-12.
21 As used in this subsection, "third-party provider" means
22any entity that provides fulfillment house services, including
23warehousing, packaging, distribution, order processing, or
24shipment of wine, but not the sale of wine, on behalf of a
25licensed winery shipper.
26 (s) A craft distiller tasting permit license shall allow an

SB2286- 24 -LRB100 15372 RPS 30346 b
1Illinois licensed craft distiller to transfer a portion of its
2alcoholic liquor inventory from its craft distiller licensed
3premises to the premises specified in the license hereby
4created and to conduct a sampling, only in the premises
5specified in the license hereby created, of the transferred
6alcoholic liquor in accordance with subsection (c) of Section
76-31 of this Act. The transferred alcoholic liquor may not be
8sold or resold in any form. An applicant for the craft
9distiller tasting permit license must also submit with the
10application proof satisfactory to the State Commission that the
11applicant will provide dram shop liability insurance to the
12maximum limits and have local authority approval.
13(Source: P.A. 99-448, eff. 8-24-15; 99-642, eff. 7-28-16;
1499-800, eff. 8-12-16; 99-902, eff. 8-26-16; 99-904, eff.
151-1-17; 100-17, eff. 6-30-17; 100-201, eff. 8-18-17.)
16 Section 99. Effective date. This Act takes effect upon
17becoming law.
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