Bill Text: IL SB3022 | 2017-2018 | 100th General Assembly | Enrolled


Bill Title: Amends the Liquor Control Act of 1934. In a provision that allows a manufacturer, distributor, or importing distributor to provide signs to a retailer if certain conditions are met, including a limitation on the dollar value of the signs that may be provided, provides that the cost adjustment factor applied to the limitation on the dollar value of the signs is 5% annually (rather than the change in the consumer price index or 5%, whichever is greater). Effective immediately.

Spectrum: Bipartisan Bill

Status: (Enrolled) 2018-06-28 - Sent to the Governor [SB3022 Detail]

Download: Illinois-2017-SB3022-Enrolled.html



SB3022 EnrolledLRB100 18964 RPS 34214 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 Executive Reorganization Implementation Act
5is amended by changing Section 3.1 as follows:
6 (15 ILCS 15/3.1) (from Ch. 127, par. 1803.1)
7 Sec. 3.1. "Agency directly responsible to the Governor" or
8"agency" means any office, officer, division, or part thereof,
9and any other office, nonelective officer, department,
10division, bureau, board, or commission in the executive branch
11of State government, except that it does not apply to any
12agency whose primary function is service to the General
13Assembly or the Judicial Branch of State government, or to any
14agency administered by the Attorney General, Secretary of
15State, State Comptroller or State Treasurer. In addition the
16term does not apply to the following agencies created by law
17with the primary responsibility of exercising regulatory or
18adjudicatory functions independently of the Governor:
19 (1) the State Board of Elections;
20 (2) the State Board of Education;
21 (3) the Illinois Commerce Commission;
22 (4) the Illinois Workers' Compensation Commission;
23 (5) the Civil Service Commission;

SB3022 Enrolled- 2 -LRB100 18964 RPS 34214 b
1 (6) the Fair Employment Practices Commission;
2 (7) the Pollution Control Board;
3 (8) the Department of State Police Merit Board;
4 (9) the Illinois Racing Board;
5 (10) the Illinois Power Agency; .
6 (11) the Illinois Liquor Control Commission.
7(Source: P.A. 96-796, eff. 10-29-09; 97-618, eff. 10-26-11.)
8 Section 10. The Liquor Control Act of 1934 is amended by
9changing Sections 3-1, 3-2, 3-5, 3-6, 3-7, 3-10, 3-12, 5-1, and
108-5 and by adding Section 3-20 as follows:
11 (235 ILCS 5/3-1) (from Ch. 43, par. 97)
12 Sec. 3-1. There is hereby created an Illinois Liquor
13Control Commission consisting of 7 members to be appointed by
14the Governor with the advice and consent of the Senate, no more
15than 4 of whom shall be members of the same political party.
16The Executive Director of the Illinois Liquor Control
17Commission shall be appointed by the Governor with the advice
18and consent of the Senate.
19(Source: P.A. 91-798, eff. 7-9-00.)
20 (235 ILCS 5/3-2) (from Ch. 43, par. 98)
21 Sec. 3-2. Immediately, or soon as may be after the
22effective date of this Act, the Governor shall appoint 3
23members of the commission, one of whom shall be designated as

SB3022 Enrolled- 3 -LRB100 18964 RPS 34214 b
1"Chairman", one to hold office for a period of 2 years, one to
2hold office for a period of 4 years and one to hold office for a
3period of 6 years. Immediately, or as soon as may be after the
4effective date of this amendatory Act of 1983, the Governor
5shall appoint 2 members to the commission to the offices
6created by this amendatory Act of 1983, one for an initial term
7expiring the third Monday in January of 1986 and one for an
8initial term expiring the third Monday in January of 1988. At
9the expiration of the term of any such commissioner the
10Governor shall reappoint said commissioner or appoint a
11successor of said commissioner for a period of 6 years. The
12Governor shall have power to fill vacancies in the office of
13any commissioner.
14 Notwithstanding any provision of this Section to the
15contrary, the term of office of each member of the commission
16is abolished on the effective date of this amendatory Act of
171985, but the incumbent members shall continue to exercise all
18of the powers and be subject to all of the duties of members of
19the commission until their respective successors are appointed
20and qualified. The Governor shall appoint 2 members of the
21commission whose terms of office shall expire on February 1,
221986, 2 members of the commission whose terms of office shall
23expire on February 1, 1988, and one member of the commission
24whose term shall expire on February 1, 1990. Their respective
25successors shall be appointed for terms of 6 years from the
26first day of February of the year of appointment. Each member

SB3022 Enrolled- 4 -LRB100 18964 RPS 34214 b
1shall serve until his successor is appointed and qualified.
2 The initial term of both of the 2 additional members
3appointed pursuant to this amendatory Act of the 91st General
4Assembly shall expire on February 1, 2006. Their respective
5successors shall be appointed for terms of 6 years from the
6first day of February of the year of appointment. Each member
7shall serve until his or her successor is appointed and
8qualified.
9 Notwithstanding any action taken to fill the office on an
10acting, temporary, or other basis, the office of Executive
11Director of the Commission shall be vacant on January 1, 2019.
12On and after January 1, 2019, the Governor shall appoint the
13Executive Director of the Commission for a 4-year term, with
14the advice and consent of the Senate.
15(Source: P.A. 91-798, eff. 7-9-00.)
16 (235 ILCS 5/3-5) (from Ch. 43, par. 101)
17 Sec. 3-5. Each commissioner, the secretary, the Executive
18Director, and each person appointed by the commission shall,
19before entering upon the duties of his or her office, take and
20subscribe to the constitutional oath of office. The secretary,
21the Executive Director, and each inspector, clerk, and other
22employee shall devote his or her entire time to the duties of
23his or her office.
24(Source: P.A. 82-783.)

SB3022 Enrolled- 5 -LRB100 18964 RPS 34214 b
1 (235 ILCS 5/3-6) (from Ch. 43, par. 102)
2 Sec. 3-6. No person shall be appointed a commissioner,
3secretary, Executive Director, or inspector for the commission
4who is not a citizen of the United States. No commissioner,
5secretary, Executive Director, inspector, or other employee
6shall be appointed who has been convicted of any violation of
7any Federal or State law concerning the manufacture or sale of
8alcoholic liquor prior or subsequent to the passage of this Act
9or who has paid a fine or penalty in settlement of any
10prosecution against him or her for any violation of such laws
11or shall have forfeited his or her bond to appear in court to
12answer charges for any such violation, nor shall any person be
13appointed who has been convicted of a felony. No commissioner,
14Executive Director, inspector, or other employee, may,
15directly or indirectly, individually or as a member of a
16partnership, or as a shareholder of a corporation, have any
17interest whatsoever in the manufacture, sale or distribution of
18alcoholic liquor, nor receive any compensation or profit
19therefrom, nor have any interest whatsoever in the purchases or
20sales made by the persons authorized by this Act, or to
21purchase or to sell alcoholic liquor. No provision of this
22section shall prevent any such commissioner, secretary,
23Executive Director, inspector, or other employee from
24purchasing and keeping in his or her possession for the use of
25himself or herself or members of his or her family or guests
26any alcoholic liquor which may be purchased or kept by any

SB3022 Enrolled- 6 -LRB100 18964 RPS 34214 b
1person by virtue of this Act.
2(Source: P.A. 83-1254.)
3 (235 ILCS 5/3-7) (from Ch. 43, par. 103)
4 Sec. 3-7. No commissioner, secretary, Executive Director,
5or person appointed or employed by the commission, shall
6solicit or accept any gift, gratuity, emolument or employment
7from any person subject to the provisions of this Act, or from
8any officer, agent or employee thereof, nor solicit, request
9from or recommend, directly or indirectly, to any such person
10or to any officer, agent or employee thereof, the appointment
11of any person to any place or position, and every such person,
12and every officer, agent or employee thereof, is hereby
13forbidden to offer to any commissioner, secretary, Executive
14Director, or to any person appointed or employed by the
15commission, any gift, gratuity, emolument or employment. If any
16commissioner, secretary, Executive Director, or any person
17appointed or employed by the commission, shall violate any of
18the provisions of this Section, he or she shall be removed from
19the office or employment held by him or her. Every person
20violating the provisions of this Section shall be guilty of a
21Class A misdemeanor.
22(Source: P.A. 82-783.)
23 (235 ILCS 5/3-10) (from Ch. 43, par. 106)
24 Sec. 3-10. The commissioners, the secretary, the Executive

SB3022 Enrolled- 7 -LRB100 18964 RPS 34214 b
1Director, and all clerks, inspectors, and other employees shall
2be reimbursed for all actual and necessary traveling and other
3expenses and disbursements incurred or made by them in the
4discharge of their official duties. The commission may also
5incur necessary expenses for office furniture and other
6incidental expenses.
7(Source: P.A. 82-783.)
8 (235 ILCS 5/3-12)
9 Sec. 3-12. Powers and duties of State Commission.
10 (a) The State commission shall have the following powers,
11functions, and duties:
12 (1) To receive applications and to issue licenses to
13 manufacturers, foreign importers, importing distributors,
14 distributors, non-resident dealers, on premise consumption
15 retailers, off premise sale retailers, special event
16 retailer licensees, special use permit licenses, auction
17 liquor licenses, brew pubs, caterer retailers,
18 non-beverage users, railroads, including owners and
19 lessees of sleeping, dining and cafe cars, airplanes,
20 boats, brokers, and wine maker's premises licensees in
21 accordance with the provisions of this Act, and to suspend
22 or revoke such licenses upon the State commission's
23 determination, upon notice after hearing, that a licensee
24 has violated any provision of this Act or any rule or
25 regulation issued pursuant thereto and in effect for 30

SB3022 Enrolled- 8 -LRB100 18964 RPS 34214 b
1 days prior to such violation. Except in the case of an
2 action taken pursuant to a violation of Section 6-3, 6-5,
3 or 6-9, any action by the State Commission to suspend or
4 revoke a licensee's license may be limited to the license
5 for the specific premises where the violation occurred. An
6 action for a violation of this Act shall be commenced by
7 the State Commission within 2 years after the date the
8 State Commission becomes aware of the violation.
9 In lieu of suspending or revoking a license, the
10 commission may impose a fine, upon the State commission's
11 determination and notice after hearing, that a licensee has
12 violated any provision of this Act or any rule or
13 regulation issued pursuant thereto and in effect for 30
14 days prior to such violation.
15 For the purpose of this paragraph (1), when determining
16 multiple violations for the sale of alcohol to a person
17 under the age of 21, a second or subsequent violation for
18 the sale of alcohol to a person under the age of 21 shall
19 only be considered if it was committed within 5 years after
20 the date when a prior violation for the sale of alcohol to
21 a person under the age of 21 was committed.
22 The fine imposed under this paragraph may not exceed
23 $500 for each violation. Each day that the activity, which
24 gave rise to the original fine, continues is a separate
25 violation. The maximum fine that may be levied against any
26 licensee, for the period of the license, shall not exceed

SB3022 Enrolled- 9 -LRB100 18964 RPS 34214 b
1 $20,000. The maximum penalty that may be imposed on a
2 licensee for selling a bottle of alcoholic liquor with a
3 foreign object in it or serving from a bottle of alcoholic
4 liquor with a foreign object in it shall be the destruction
5 of that bottle of alcoholic liquor for the first 10 bottles
6 so sold or served from by the licensee. For the eleventh
7 bottle of alcoholic liquor and for each third bottle
8 thereafter sold or served from by the licensee with a
9 foreign object in it, the maximum penalty that may be
10 imposed on the licensee is the destruction of the bottle of
11 alcoholic liquor and a fine of up to $50.
12 Any notice issued by the State Commission to a licensee
13 for a violation of this Act or any notice with respect to
14 settlement or offer in compromise shall include the field
15 report, photographs, and any other supporting
16 documentation necessary to reasonably inform the licensee
17 of the nature and extent of the violation or the conduct
18 alleged to have occurred. The failure to include such
19 required documentation shall result in the dismissal of the
20 action.
21 (2) To adopt such rules and regulations consistent with
22 the provisions of this Act which shall be necessary to
23 carry on its functions and duties to the end that the
24 health, safety and welfare of the People of the State of
25 Illinois shall be protected and temperance in the
26 consumption of alcoholic liquors shall be fostered and

SB3022 Enrolled- 10 -LRB100 18964 RPS 34214 b
1 promoted and to distribute copies of such rules and
2 regulations to all licensees affected thereby.
3 (3) To call upon other administrative departments of
4 the State, county and municipal governments, county and
5 city police departments and upon prosecuting officers for
6 such information and assistance as it deems necessary in
7 the performance of its duties.
8 (4) To recommend to local commissioners rules and
9 regulations, not inconsistent with the law, for the
10 distribution and sale of alcoholic liquors throughout the
11 State.
12 (5) To inspect, or cause to be inspected, any premises
13 in this State where alcoholic liquors are manufactured,
14 distributed, warehoused, or sold. Nothing in this Act
15 authorizes an agent of the Commission to inspect private
16 areas within the premises without reasonable suspicion or a
17 warrant during an inspection. "Private areas" include, but
18 are not limited to, safes, personal property, and closed
19 desks.
20 (5.1) Upon receipt of a complaint or upon having
21 knowledge that any person is engaged in business as a
22 manufacturer, importing distributor, distributor, or
23 retailer without a license or valid license, to notify the
24 local liquor authority, file a complaint with the State's
25 Attorney's Office of the county where the incident
26 occurred, or initiate an investigation with the

SB3022 Enrolled- 11 -LRB100 18964 RPS 34214 b
1 appropriate law enforcement officials.
2 (5.2) To issue a cease and desist notice to persons
3 shipping alcoholic liquor into this State from a point
4 outside of this State if the shipment is in violation of
5 this Act.
6 (5.3) To receive complaints from licensees, local
7 officials, law enforcement agencies, organizations, and
8 persons stating that any licensee has been or is violating
9 any provision of this Act or the rules and regulations
10 issued pursuant to this Act. Such complaints shall be in
11 writing, signed and sworn to by the person making the
12 complaint, and shall state with specificity the facts in
13 relation to the alleged violation. If the Commission has
14 reasonable grounds to believe that the complaint
15 substantially alleges a violation of this Act or rules and
16 regulations adopted pursuant to this Act, it shall conduct
17 an investigation. If, after conducting an investigation,
18 the Commission is satisfied that the alleged violation did
19 occur, it shall proceed with disciplinary action against
20 the licensee as provided in this Act.
21 (6) To hear and determine appeals from orders of a
22 local commission in accordance with the provisions of this
23 Act, as hereinafter set forth. Hearings under this
24 subsection shall be held in Springfield or Chicago, at
25 whichever location is the more convenient for the majority
26 of persons who are parties to the hearing.

SB3022 Enrolled- 12 -LRB100 18964 RPS 34214 b
1 (7) The commission shall establish uniform systems of
2 accounts to be kept by all retail licensees having more
3 than 4 employees, and for this purpose the commission may
4 classify all retail licensees having more than 4 employees
5 and establish a uniform system of accounts for each class
6 and prescribe the manner in which such accounts shall be
7 kept. The commission may also prescribe the forms of
8 accounts to be kept by all retail licensees having more
9 than 4 employees, including but not limited to accounts of
10 earnings and expenses and any distribution, payment, or
11 other distribution of earnings or assets, and any other
12 forms, records and memoranda which in the judgment of the
13 commission may be necessary or appropriate to carry out any
14 of the provisions of this Act, including but not limited to
15 such forms, records and memoranda as will readily and
16 accurately disclose at all times the beneficial ownership
17 of such retail licensed business. The accounts, forms,
18 records and memoranda shall be available at all reasonable
19 times for inspection by authorized representatives of the
20 State commission or by any local liquor control
21 commissioner or his or her authorized representative. The
22 commission, may, from time to time, alter, amend or repeal,
23 in whole or in part, any uniform system of accounts, or the
24 form and manner of keeping accounts.
25 (8) In the conduct of any hearing authorized to be held
26 by the commission, to appoint, at the commission's

SB3022 Enrolled- 13 -LRB100 18964 RPS 34214 b
1 discretion, hearing officers to conduct hearings involving
2 complex issues or issues that will require a protracted
3 period of time to resolve, to examine, or cause to be
4 examined, under oath, any licensee, and to examine or cause
5 to be examined the books and records of such licensee; to
6 hear testimony and take proof material for its information
7 in the discharge of its duties hereunder; to administer or
8 cause to be administered oaths; for any such purpose to
9 issue subpoena or subpoenas to require the attendance of
10 witnesses and the production of books, which shall be
11 effective in any part of this State, and to adopt rules to
12 implement its powers under this paragraph (8).
13 Any Circuit Court may by order duly entered, require
14 the attendance of witnesses and the production of relevant
15 books subpoenaed by the State commission and the court may
16 compel obedience to its order by proceedings for contempt.
17 (9) To investigate the administration of laws in
18 relation to alcoholic liquors in this and other states and
19 any foreign countries, and to recommend from time to time
20 to the Governor and through him or her to the legislature
21 of this State, such amendments to this Act, if any, as it
22 may think desirable and as will serve to further the
23 general broad purposes contained in Section 1-2 hereof.
24 (10) To adopt such rules and regulations consistent
25 with the provisions of this Act which shall be necessary
26 for the control, sale or disposition of alcoholic liquor

SB3022 Enrolled- 14 -LRB100 18964 RPS 34214 b
1 damaged as a result of an accident, wreck, flood, fire or
2 other similar occurrence.
3 (11) To develop industry educational programs related
4 to responsible serving and selling, particularly in the
5 areas of overserving consumers and illegal underage
6 purchasing and consumption of alcoholic beverages.
7 (11.1) To license persons providing education and
8 training to alcohol beverage sellers and servers for
9 mandatory and non-mandatory training under the Beverage
10 Alcohol Sellers and Servers Education and Training
11 (BASSET) programs and to develop and administer a public
12 awareness program in Illinois to reduce or eliminate the
13 illegal purchase and consumption of alcoholic beverage
14 products by persons under the age of 21. Application for a
15 license shall be made on forms provided by the State
16 Commission.
17 (12) To develop and maintain a repository of license
18 and regulatory information.
19 (13) On or before January 15, 1994, the Commission
20 shall issue a written report to the Governor and General
21 Assembly that is to be based on a comprehensive study of
22 the impact on and implications for the State of Illinois of
23 Section 1926 of the federal ADAMHA Reorganization Act of
24 1992 (Public Law 102-321). This study shall address the
25 extent to which Illinois currently complies with the
26 provisions of P.L. 102-321 and the rules promulgated

SB3022 Enrolled- 15 -LRB100 18964 RPS 34214 b
1 pursuant thereto.
2 As part of its report, the Commission shall provide the
3 following essential information:
4 (i) the number of retail distributors of tobacco
5 products, by type and geographic area, in the State;
6 (ii) the number of reported citations and
7 successful convictions, categorized by type and
8 location of retail distributor, for violation of the
9 Prevention of Tobacco Use by Minors and Sale and
10 Distribution of Tobacco Products Act and the Smokeless
11 Tobacco Limitation Act;
12 (iii) the extent and nature of organized
13 educational and governmental activities that are
14 intended to promote, encourage or otherwise secure
15 compliance with any Illinois laws that prohibit the
16 sale or distribution of tobacco products to minors; and
17 (iv) the level of access and availability of
18 tobacco products to individuals under the age of 18.
19 To obtain the data necessary to comply with the
20 provisions of P.L. 102-321 and the requirements of this
21 report, the Commission shall conduct random, unannounced
22 inspections of a geographically and scientifically
23 representative sample of the State's retail tobacco
24 distributors.
25 The Commission shall consult with the Department of
26 Public Health, the Department of Human Services, the

SB3022 Enrolled- 16 -LRB100 18964 RPS 34214 b
1 Illinois State Police and any other executive branch
2 agency, and private organizations that may have
3 information relevant to this report.
4 The Commission may contract with the Food and Drug
5 Administration of the U.S. Department of Health and Human
6 Services to conduct unannounced investigations of Illinois
7 tobacco vendors to determine compliance with federal laws
8 relating to the illegal sale of cigarettes and smokeless
9 tobacco products to persons under the age of 18.
10 (14) On or before April 30, 2008 and every 2 years
11 thereafter, the Commission shall present a written report
12 to the Governor and the General Assembly that shall be
13 based on a study of the impact of Public Act 95-634 on the
14 business of soliciting, selling, and shipping wine from
15 inside and outside of this State directly to residents of
16 this State. As part of its report, the Commission shall
17 provide all of the following information:
18 (A) The amount of State excise and sales tax
19 revenues generated.
20 (B) The amount of licensing fees received.
21 (C) The number of cases of wine shipped from inside
22 and outside of this State directly to residents of this
23 State.
24 (D) The number of alcohol compliance operations
25 conducted.
26 (E) The number of winery shipper's licenses

SB3022 Enrolled- 17 -LRB100 18964 RPS 34214 b
1 issued.
2 (F) The number of each of the following: reported
3 violations; cease and desist notices issued by the
4 Commission; notices of violations issued by the
5 Commission and to the Department of Revenue; and
6 notices and complaints of violations to law
7 enforcement officials, including, without limitation,
8 the Illinois Attorney General and the U.S. Department
9 of Treasury's Alcohol and Tobacco Tax and Trade Bureau.
10 (15) As a means to reduce the underage consumption of
11 alcoholic liquors, the Commission shall conduct alcohol
12 compliance operations to investigate whether businesses
13 that are soliciting, selling, and shipping wine from inside
14 or outside of this State directly to residents of this
15 State are licensed by this State or are selling or
16 attempting to sell wine to persons under 21 years of age in
17 violation of this Act.
18 (16) The Commission shall, in addition to notifying any
19 appropriate law enforcement agency, submit notices of
20 complaints or violations of Sections 6-29 and 6-29.1 by
21 persons who do not hold a winery shipper's license under
22 this Act to the Illinois Attorney General and to the U.S.
23 Department of Treasury's Alcohol and Tobacco Tax and Trade
24 Bureau.
25 (17)(A) A person licensed to make wine under the laws
26 of another state who has a winery shipper's license under

SB3022 Enrolled- 18 -LRB100 18964 RPS 34214 b
1 this Act and annually produces less than 25,000 gallons of
2 wine or a person who has a first-class or second-class wine
3 manufacturer's license, a first-class or second-class
4 wine-maker's license, or a limited wine manufacturer's
5 license under this Act and annually produces less than
6 25,000 gallons of wine may make application to the
7 Commission for a self-distribution exemption to allow the
8 sale of not more than 5,000 gallons of the exemption
9 holder's wine to retail licensees per year.
10 (B) In the application, which shall be sworn under
11 penalty of perjury, such person shall state (1) the date it
12 was established; (2) its volume of production and sales for
13 each year since its establishment; (3) its efforts to
14 establish distributor relationships; (4) that a
15 self-distribution exemption is necessary to facilitate the
16 marketing of its wine; and (5) that it will comply with the
17 liquor and revenue laws of the United States, this State,
18 and any other state where it is licensed.
19 (C) The Commission shall approve the application for a
20 self-distribution exemption if such person: (1) is in
21 compliance with State revenue and liquor laws; (2) is not a
22 member of any affiliated group that produces more than
23 25,000 gallons of wine per annum or produces any other
24 alcoholic liquor; (3) will not annually produce for sale
25 more than 25,000 gallons of wine; and (4) will not annually
26 sell more than 5,000 gallons of its wine to retail

SB3022 Enrolled- 19 -LRB100 18964 RPS 34214 b
1 licensees.
2 (D) A self-distribution exemption holder shall
3 annually certify to the Commission its production of wine
4 in the previous 12 months and its anticipated production
5 and sales for the next 12 months. The Commission may fine,
6 suspend, or revoke a self-distribution exemption after a
7 hearing if it finds that the exemption holder has made a
8 material misrepresentation in its application, violated a
9 revenue or liquor law of Illinois, exceeded production of
10 25,000 gallons of wine in any calendar year, or become part
11 of an affiliated group producing more than 25,000 gallons
12 of wine or any other alcoholic liquor.
13 (E) Except in hearings for violations of this Act or
14 Public Act 95-634 or a bona fide investigation by duly
15 sworn law enforcement officials, the Commission, or its
16 agents, the Commission shall maintain the production and
17 sales information of a self-distribution exemption holder
18 as confidential and shall not release such information to
19 any person.
20 (F) The Commission shall issue regulations governing
21 self-distribution exemptions consistent with this Section
22 and this Act.
23 (G) Nothing in this subsection (17) shall prohibit a
24 self-distribution exemption holder from entering into or
25 simultaneously having a distribution agreement with a
26 licensed Illinois distributor.

SB3022 Enrolled- 20 -LRB100 18964 RPS 34214 b
1 (H) It is the intent of this subsection (17) to promote
2 and continue orderly markets. The General Assembly finds
3 that in order to preserve Illinois' regulatory
4 distribution system it is necessary to create an exception
5 for smaller makers of wine as their wines are frequently
6 adjusted in varietals, mixes, vintages, and taste to find
7 and create market niches sometimes too small for
8 distributor or importing distributor business strategies.
9 Limited self-distribution rights will afford and allow
10 smaller makers of wine access to the marketplace in order
11 to develop a customer base without impairing the integrity
12 of the 3-tier system.
13 (18)(A) A class 1 brewer licensee, who must also be
14 either a licensed brewer or licensed non-resident dealer
15 and annually manufacture less than 930,000 gallons of beer,
16 may make application to the State Commission for a
17 self-distribution exemption to allow the sale of not more
18 than 232,500 gallons of the exemption holder's beer to
19 retail licensees per year.
20 (B) In the application, which shall be sworn under
21 penalty of perjury, the class 1 brewer licensee shall state
22 (1) the date it was established; (2) its volume of beer
23 manufactured and sold for each year since its
24 establishment; (3) its efforts to establish distributor
25 relationships; (4) that a self-distribution exemption is
26 necessary to facilitate the marketing of its beer; and (5)

SB3022 Enrolled- 21 -LRB100 18964 RPS 34214 b
1 that it will comply with the alcoholic beverage and revenue
2 laws of the United States, this State, and any other state
3 where it is licensed.
4 (C) Any application submitted shall be posted on the
5 State Commission's website at least 45 days prior to action
6 by the State Commission. The State Commission shall approve
7 the application for a self-distribution exemption if the
8 class 1 brewer licensee: (1) is in compliance with the
9 State, revenue, and alcoholic beverage laws; (2) is not a
10 member of any affiliated group that manufactures more than
11 930,000 gallons of beer per annum or produces any other
12 alcoholic beverages; (3) shall not annually manufacture
13 for sale more than 930,000 gallons of beer; (4) shall not
14 annually sell more than 232,500 gallons of its beer to
15 retail licensees; and (5) has relinquished any brew pub
16 license held by the licensee, including any ownership
17 interest it held in the licensed brew pub.
18 (D) A self-distribution exemption holder shall
19 annually certify to the State Commission its manufacture of
20 beer during the previous 12 months and its anticipated
21 manufacture and sales of beer for the next 12 months. The
22 State Commission may fine, suspend, or revoke a
23 self-distribution exemption after a hearing if it finds
24 that the exemption holder has made a material
25 misrepresentation in its application, violated a revenue
26 or alcoholic beverage law of Illinois, exceeded the

SB3022 Enrolled- 22 -LRB100 18964 RPS 34214 b
1 manufacture of 930,000 gallons of beer in any calendar year
2 or became part of an affiliated group manufacturing more
3 than 930,000 gallons of beer or any other alcoholic
4 beverage.
5 (E) The State Commission shall issue rules and
6 regulations governing self-distribution exemptions
7 consistent with this Act.
8 (F) Nothing in this paragraph (18) shall prohibit a
9 self-distribution exemption holder from entering into or
10 simultaneously having a distribution agreement with a
11 licensed Illinois importing distributor or a distributor.
12 If a self-distribution exemption holder enters into a
13 distribution agreement and has assigned distribution
14 rights to an importing distributor or distributor, then the
15 self-distribution exemption holder's distribution rights
16 in the assigned territories shall cease in a reasonable
17 time not to exceed 60 days.
18 (G) It is the intent of this paragraph (18) to promote
19 and continue orderly markets. The General Assembly finds
20 that in order to preserve Illinois' regulatory
21 distribution system, it is necessary to create an exception
22 for smaller manufacturers in order to afford and allow such
23 smaller manufacturers of beer access to the marketplace in
24 order to develop a customer base without impairing the
25 integrity of the 3-tier system.
26 (b) On or before April 30, 1999, the Commission shall

SB3022 Enrolled- 23 -LRB100 18964 RPS 34214 b
1present a written report to the Governor and the General
2Assembly that shall be based on a study of the impact of Public
3Act 90-739 on the business of soliciting, selling, and shipping
4alcoholic liquor from outside of this State directly to
5residents of this State.
6 As part of its report, the Commission shall provide the
7following information:
8 (i) the amount of State excise and sales tax revenues
9 generated as a result of Public Act 90-739;
10 (ii) the amount of licensing fees received as a result
11 of Public Act 90-739;
12 (iii) the number of reported violations, the number of
13 cease and desist notices issued by the Commission, the
14 number of notices of violations issued to the Department of
15 Revenue, and the number of notices and complaints of
16 violations to law enforcement officials.
17(Source: P.A. 99-78, eff. 7-20-15; 99-448, eff. 8-24-15;
18100-134, eff. 8-18-17; 100-201, eff. 8-18-17.)
19 (235 ILCS 5/3-20 new)
20 Sec. 3-20. State Commission; separation from the
21Department of Revenue.
22 (a) Executive Order No. 2003-9 is hereby superseded by this
23amendatory Act of the 100th General Assembly to the extent that
24Executive Order No. 2003-9 transferred clerks, management and
25staff support, employees, and other resources from the State

SB3022 Enrolled- 24 -LRB100 18964 RPS 34214 b
1Commission to the Department of Revenue.
2 (b) To the extent that Executive Order No. 2003-9
3transferred personnel and the Executive Director to the
4Department of Revenue from the State Commission, those
5personnel and the Executive Director shall be transferred to
6the State Commission. The status and rights of such employees
7under the Personnel Code shall not be affected by the transfer.
8The status and rights of the employees and the State of
9Illinois and its agencies under the Personnel Code, the
10Illinois Public Labor Relations Act, and applicable collective
11bargaining agreements or under any pension, retirement, or
12annuity plan shall not be affected by this amendatory Act of
13the 100th General Assembly. To the extent that an employee
14performs duties for the State Commission and the Department of
15Revenue itself or any other division or agency within the
16Department of Revenue, that employee shall be transferred at
17the Governor's discretion.
18 (c) All books, records, papers, documents, property (real
19and personal), contracts, causes of action, and pending
20business pertaining to the powers, duties, rights, and
21responsibilities transferred by this amendatory Act of the
22100th General Assembly from the Department of Revenue to the
23State Commission, including, but not limited to, material in
24electronic or magnetic format and necessary computer hardware
25and software, shall be transferred to the State Commission.
26 (d) All unexpended appropriations and balances and other

SB3022 Enrolled- 25 -LRB100 18964 RPS 34214 b
1funds available for use by the Department of Revenue to operate
2the State Commission shall be transferred for use by the State
3Commission. Unexpended balances so transferred shall be
4expended only for the purpose for which the appropriations were
5originally made.
6 (e) The powers, duties, rights, and responsibilities
7transferred from the Department of Revenue by this amendatory
8Act of the 100th General Assembly shall be vested in and shall
9be exercised by the State Commission.
10 (f) Whenever reports or notices are now required to be made
11or given or papers or documents furnished or served by any
12person to or upon the Department of Revenue in connection with
13any of the powers, duties, rights, and responsibilities
14transferred by this amendatory Act of the 100th General
15Assembly, the same shall be made, given, furnished, or served
16in the same manner to or upon the State Commission.
17 (g) Any rules of the Department of Revenue that relate to
18the functions transferred from the State Commission to the
19Department of Revenue by Executive Order No. 2003-9 that are in
20full force on the effective date of this amendatory Act of the
21100th General Assembly shall become the rules of the State
22Commission. This amendatory Act of the 100th General Assembly
23does not affect the legality of any such rules in the Illinois
24Administrative Code.
25 Any proposed rules filed with the Secretary of State by the
26Department of Revenue that are pending in the rulemaking

SB3022 Enrolled- 26 -LRB100 18964 RPS 34214 b
1process on the effective date of this amendatory Act of the
2100th General Assembly and pertain to the functions transferred
3from the State Commission to the Department of Revenue by
4Executive Order No. 2003-9 shall be deemed to have been filed
5by the State Commission. As soon as practicable hereafter, the
6State Commission shall revise and clarify the rules transferred
7to it under this amendatory Act of the 100th General Assembly
8to reflect the reorganization of powers, duties, rights, and
9responsibilities affected by this amendatory Act of the 100th
10General Assembly, using the procedures for recodification of
11rules available under the Illinois Administrative Procedure
12Act, except that existing title, part, and section numbering
13for the affected rules may be retained.
14 (235 ILCS 5/5-1) (from Ch. 43, par. 115)
15 Sec. 5-1. Licenses issued by the Illinois Liquor Control
16Commission shall be of the following classes:
17 (a) Manufacturer's license - Class 1. Distiller, Class 2.
18Rectifier, Class 3. Brewer, Class 4. First Class Wine
19Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
20First Class Winemaker, Class 7. Second Class Winemaker, Class
218. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
2210. Class 1 Brewer, Class 11. Class 2 Brewer,
23 (b) Distributor's license,
24 (c) Importing Distributor's license,
25 (d) Retailer's license,

SB3022 Enrolled- 27 -LRB100 18964 RPS 34214 b
1 (e) Special Event Retailer's license (not-for-profit),
2 (f) Railroad license,
3 (g) Boat license,
4 (h) Non-Beverage User's license,
5 (i) Wine-maker's premises license,
6 (j) Airplane license,
7 (k) Foreign importer's license,
8 (l) Broker's license,
9 (m) Non-resident dealer's license,
10 (n) Brew Pub license,
11 (o) Auction liquor license,
12 (p) Caterer retailer license,
13 (q) Special use permit license,
14 (r) Winery shipper's license,
15 (s) Craft distiller tasting permit.
16 No person, firm, partnership, corporation, or other legal
17business entity that is engaged in the manufacturing of wine
18may concurrently obtain and hold a wine-maker's license and a
19wine manufacturer's license.
20 (a) A manufacturer's license shall allow the manufacture,
21importation in bulk, storage, distribution and sale of
22alcoholic liquor to persons without the State, as may be
23permitted by law and to licensees in this State as follows:
24 Class 1. A Distiller may make sales and deliveries of
25alcoholic liquor to distillers, rectifiers, importing
26distributors, distributors and non-beverage users and to no

SB3022 Enrolled- 28 -LRB100 18964 RPS 34214 b
1other licensees.
2 Class 2. A Rectifier, who is not a distiller, as defined
3herein, may make sales and deliveries of alcoholic liquor to
4rectifiers, importing distributors, distributors, retailers
5and non-beverage users and to no other licensees.
6 Class 3. A Brewer may make sales and deliveries of beer to
7importing distributors and distributors and may make sales as
8authorized under subsection (e) of Section 6-4 of this Act.
9 Class 4. A first class wine-manufacturer may make sales and
10deliveries of up to 50,000 gallons of wine to manufacturers,
11importing distributors and distributors, and to no other
12licensees.
13 Class 5. A second class Wine manufacturer may make sales
14and deliveries of more than 50,000 gallons of wine to
15manufacturers, importing distributors and distributors and to
16no other licensees.
17 Class 6. A first-class wine-maker's license shall allow the
18manufacture of up to 50,000 gallons of wine per year, and the
19storage and sale of such wine to distributors in the State and
20to persons without the State, as may be permitted by law. A
21person who, prior to June 1, 2008 (the effective date of Public
22Act 95-634), is a holder of a first-class wine-maker's license
23and annually produces more than 25,000 gallons of its own wine
24and who distributes its wine to licensed retailers shall cease
25this practice on or before July 1, 2008 in compliance with
26Public Act 95-634.

SB3022 Enrolled- 29 -LRB100 18964 RPS 34214 b
1 Class 7. A second-class wine-maker's license shall allow
2the manufacture of between 50,000 and 150,000 gallons of wine
3per year, and the storage and sale of such wine to distributors
4in this State and to persons without the State, as may be
5permitted by law. A person who, prior to June 1, 2008 (the
6effective date of Public Act 95-634), is a holder of a
7second-class wine-maker's license and annually produces more
8than 25,000 gallons of its own wine and who distributes its
9wine to licensed retailers shall cease this practice on or
10before July 1, 2008 in compliance with Public Act 95-634.
11 Class 8. A limited wine-manufacturer may make sales and
12deliveries not to exceed 40,000 gallons of wine per year to
13distributors, and to non-licensees in accordance with the
14provisions of this Act.
15 Class 9. A craft distiller license shall allow the
16manufacture of up to 100,000 gallons of spirits by distillation
17per year and the storage of such spirits. If a craft distiller
18licensee, including a craft distiller licensee who holds more
19than one craft distiller license, is not affiliated with any
20other manufacturer of spirits, then the craft distiller
21licensee may sell such spirits to distributors in this State
22and up to 2,500 gallons of such spirits to non-licensees to the
23extent permitted by any exemption approved by the Commission
24pursuant to Section 6-4 of this Act. A craft distiller license
25holder may store such spirits at a non-contiguous licensed
26location, but at no time shall a craft distiller license holder

SB3022 Enrolled- 30 -LRB100 18964 RPS 34214 b
1directly or indirectly produce in the aggregate more than
2100,000 gallons of spirits per year.
3 A craft distiller licensee may hold more than one craft
4distiller's license. However, a craft distiller that holds more
5than one craft distiller license shall not manufacture, in the
6aggregate, more than 100,000 gallons of spirits by distillation
7per year and shall not sell, in the aggregate, more than 2,500
8gallons of such spirits to non-licensees in accordance with an
9exemption approved by the State Commission pursuant to Section
106-4 of this Act.
11 Any craft distiller licensed under this Act who on July 28,
122010 (the effective date of Public Act 96-1367) was licensed as
13a distiller and manufactured no more spirits than permitted by
14this Section shall not be required to pay the initial licensing
15fee.
16 Class 10. A class 1 brewer license, which may only be
17issued to a licensed brewer or licensed non-resident dealer,
18shall allow the manufacture of up to 930,000 gallons of beer
19per year provided that the class 1 brewer licensee does not
20manufacture more than a combined 930,000 gallons of beer per
21year and is not a member of or affiliated with, directly or
22indirectly, a manufacturer that produces more than 930,000
23gallons of beer per year or any other alcoholic liquor. A class
241 brewer licensee may make sales and deliveries to importing
25distributors and distributors and to retail licensees in
26accordance with the conditions set forth in paragraph (18) of

SB3022 Enrolled- 31 -LRB100 18964 RPS 34214 b
1subsection (a) of Section 3-12 of this Act.
2 Class 11. A class 2 brewer license, which may only be
3issued to a licensed brewer or licensed non-resident dealer,
4shall allow the manufacture of up to 3,720,000 gallons of beer
5per year provided that the class 2 brewer licensee does not
6manufacture more than a combined 3,720,000 gallons of beer per
7year and is not a member of or affiliated with, directly or
8indirectly, a manufacturer that produces more than 3,720,000
9gallons of beer per year or any other alcoholic liquor. A class
102 brewer licensee may make sales and deliveries to importing
11distributors and distributors, but shall not make sales or
12deliveries to any other licensee. If the State Commission
13provides prior approval, a class 2 brewer licensee may annually
14transfer up to 3,720,000 gallons of beer manufactured by that
15class 2 brewer licensee to the premises of a licensed class 2
16brewer wholly owned and operated by the same licensee.
17 (a-1) A manufacturer which is licensed in this State to
18make sales or deliveries of alcoholic liquor to licensed
19distributors or importing distributors and which enlists
20agents, representatives, or individuals acting on its behalf
21who contact licensed retailers on a regular and continual basis
22in this State must register those agents, representatives, or
23persons acting on its behalf with the State Commission.
24 Registration of agents, representatives, or persons acting
25on behalf of a manufacturer is fulfilled by submitting a form
26to the Commission. The form shall be developed by the

SB3022 Enrolled- 32 -LRB100 18964 RPS 34214 b
1Commission and shall include the name and address of the
2applicant, the name and address of the manufacturer he or she
3represents, the territory or areas assigned to sell to or
4discuss pricing terms of alcoholic liquor, and any other
5questions deemed appropriate and necessary. All statements in
6the forms required to be made by law or by rule shall be deemed
7material, and any person who knowingly misstates any material
8fact under oath in an application is guilty of a Class B
9misdemeanor. Fraud, misrepresentation, false statements,
10misleading statements, evasions, or suppression of material
11facts in the securing of a registration are grounds for
12suspension or revocation of the registration. The State
13Commission shall post a list of registered agents on the
14Commission's website.
15 (b) A distributor's license shall allow the wholesale
16purchase and storage of alcoholic liquors and sale of alcoholic
17liquors to licensees in this State and to persons without the
18State, as may be permitted by law. No person licensed as a
19distributor shall be granted a non-resident dealer's license.
20 (c) An importing distributor's license may be issued to and
21held by those only who are duly licensed distributors, upon the
22filing of an application by a duly licensed distributor, with
23the Commission and the Commission shall, without the payment of
24any fee, immediately issue such importing distributor's
25license to the applicant, which shall allow the importation of
26alcoholic liquor by the licensee into this State from any point

SB3022 Enrolled- 33 -LRB100 18964 RPS 34214 b
1in the United States outside this State, and the purchase of
2alcoholic liquor in barrels, casks or other bulk containers and
3the bottling of such alcoholic liquors before resale thereof,
4but all bottles or containers so filled shall be sealed,
5labeled, stamped and otherwise made to comply with all
6provisions, rules and regulations governing manufacturers in
7the preparation and bottling of alcoholic liquors. The
8importing distributor's license shall permit such licensee to
9purchase alcoholic liquor from Illinois licensed non-resident
10dealers and foreign importers only. No person licensed as an
11importing distributor shall be granted a non-resident dealer's
12license.
13 (d) A retailer's license shall allow the licensee to sell
14and offer for sale at retail, only in the premises specified in
15the license, alcoholic liquor for use or consumption, but not
16for resale in any form. Nothing in Public Act 95-634 shall
17deny, limit, remove, or restrict the ability of a holder of a
18retailer's license to transfer, deliver, or ship alcoholic
19liquor to the purchaser for use or consumption subject to any
20applicable local law or ordinance. Any retail license issued to
21a manufacturer shall only permit the manufacturer to sell beer
22at retail on the premises actually occupied by the
23manufacturer. For the purpose of further describing the type of
24business conducted at a retail licensed premises, a retailer's
25licensee may be designated by the State Commission as (i) an on
26premise consumption retailer, (ii) an off premise sale

SB3022 Enrolled- 34 -LRB100 18964 RPS 34214 b
1retailer, or (iii) a combined on premise consumption and off
2premise sale retailer.
3 Notwithstanding any other provision of this subsection
4(d), a retail licensee may sell alcoholic liquors to a special
5event retailer licensee for resale to the extent permitted
6under subsection (e).
7 (e) A special event retailer's license (not-for-profit)
8shall permit the licensee to purchase alcoholic liquors from an
9Illinois licensed distributor (unless the licensee purchases
10less than $500 of alcoholic liquors for the special event, in
11which case the licensee may purchase the alcoholic liquors from
12a licensed retailer) and shall allow the licensee to sell and
13offer for sale, at retail, alcoholic liquors for use or
14consumption, but not for resale in any form and only at the
15location and on the specific dates designated for the special
16event in the license. An applicant for a special event retailer
17license must (i) furnish with the application: (A) a resale
18number issued under Section 2c of the Retailers' Occupation Tax
19Act or evidence that the applicant is registered under Section
202a of the Retailers' Occupation Tax Act, (B) a current, valid
21exemption identification number issued under Section 1g of the
22Retailers' Occupation Tax Act, and a certification to the
23Commission that the purchase of alcoholic liquors will be a
24tax-exempt purchase, or (C) a statement that the applicant is
25not registered under Section 2a of the Retailers' Occupation
26Tax Act, does not hold a resale number under Section 2c of the

SB3022 Enrolled- 35 -LRB100 18964 RPS 34214 b
1Retailers' Occupation Tax Act, and does not hold an exemption
2number under Section 1g of the Retailers' Occupation Tax Act,
3in which event the Commission shall set forth on the special
4event retailer's license a statement to that effect; (ii)
5submit with the application proof satisfactory to the State
6Commission that the applicant will provide dram shop liability
7insurance in the maximum limits; and (iii) show proof
8satisfactory to the State Commission that the applicant has
9obtained local authority approval.
10 (f) A railroad license shall permit the licensee to import
11alcoholic liquors into this State from any point in the United
12States outside this State and to store such alcoholic liquors
13in this State; to make wholesale purchases of alcoholic liquors
14directly from manufacturers, foreign importers, distributors
15and importing distributors from within or outside this State;
16and to store such alcoholic liquors in this State; provided
17that the above powers may be exercised only in connection with
18the importation, purchase or storage of alcoholic liquors to be
19sold or dispensed on a club, buffet, lounge or dining car
20operated on an electric, gas or steam railway in this State;
21and provided further, that railroad licensees exercising the
22above powers shall be subject to all provisions of Article VIII
23of this Act as applied to importing distributors. A railroad
24license shall also permit the licensee to sell or dispense
25alcoholic liquors on any club, buffet, lounge or dining car
26operated on an electric, gas or steam railway regularly

SB3022 Enrolled- 36 -LRB100 18964 RPS 34214 b
1operated by a common carrier in this State, but shall not
2permit the sale for resale of any alcoholic liquors to any
3licensee within this State. A license shall be obtained for
4each car in which such sales are made.
5 (g) A boat license shall allow the sale of alcoholic liquor
6in individual drinks, on any passenger boat regularly operated
7as a common carrier on navigable waters in this State or on any
8riverboat operated under the Riverboat Gambling Act, which boat
9or riverboat maintains a public dining room or restaurant
10thereon.
11 (h) A non-beverage user's license shall allow the licensee
12to purchase alcoholic liquor from a licensed manufacturer or
13importing distributor, without the imposition of any tax upon
14the business of such licensed manufacturer or importing
15distributor as to such alcoholic liquor to be used by such
16licensee solely for the non-beverage purposes set forth in
17subsection (a) of Section 8-1 of this Act, and such licenses
18shall be divided and classified and shall permit the purchase,
19possession and use of limited and stated quantities of
20alcoholic liquor as follows:
21Class 1, not to exceed ......................... 500 gallons
22Class 2, not to exceed ....................... 1,000 gallons
23Class 3, not to exceed ....................... 5,000 gallons
24Class 4, not to exceed ...................... 10,000 gallons
25Class 5, not to exceed ....................... 50,000 gallons
26 (i) A wine-maker's premises license shall allow a licensee

SB3022 Enrolled- 37 -LRB100 18964 RPS 34214 b
1that concurrently holds a first-class wine-maker's license to
2sell and offer for sale at retail in the premises specified in
3such license not more than 50,000 gallons of the first-class
4wine-maker's wine that is made at the first-class wine-maker's
5licensed premises per year for use or consumption, but not for
6resale in any form. A wine-maker's premises license shall allow
7a licensee who concurrently holds a second-class wine-maker's
8license to sell and offer for sale at retail in the premises
9specified in such license up to 100,000 gallons of the
10second-class wine-maker's wine that is made at the second-class
11wine-maker's licensed premises per year for use or consumption
12but not for resale in any form. A wine-maker's premises license
13shall allow a licensee that concurrently holds a first-class
14wine-maker's license or a second-class wine-maker's license to
15sell and offer for sale at retail at the premises specified in
16the wine-maker's premises license, for use or consumption but
17not for resale in any form, any beer, wine, and spirits
18purchased from a licensed distributor. Upon approval from the
19State Commission, a wine-maker's premises license shall allow
20the licensee to sell and offer for sale at (i) the wine-maker's
21licensed premises and (ii) at up to 2 additional locations for
22use and consumption and not for resale. Each location shall
23require additional licensing per location as specified in
24Section 5-3 of this Act. A wine-maker's premises licensee shall
25secure liquor liability insurance coverage in an amount at
26least equal to the maximum liability amounts set forth in

SB3022 Enrolled- 38 -LRB100 18964 RPS 34214 b
1subsection (a) of Section 6-21 of this Act.
2 (j) An airplane license shall permit the licensee to import
3alcoholic liquors into this State from any point in the United
4States outside this State and to store such alcoholic liquors
5in this State; to make wholesale purchases of alcoholic liquors
6directly from manufacturers, foreign importers, distributors
7and importing distributors from within or outside this State;
8and to store such alcoholic liquors in this State; provided
9that the above powers may be exercised only in connection with
10the importation, purchase or storage of alcoholic liquors to be
11sold or dispensed on an airplane; and provided further, that
12airplane licensees exercising the above powers shall be subject
13to all provisions of Article VIII of this Act as applied to
14importing distributors. An airplane licensee shall also permit
15the sale or dispensing of alcoholic liquors on any passenger
16airplane regularly operated by a common carrier in this State,
17but shall not permit the sale for resale of any alcoholic
18liquors to any licensee within this State. A single airplane
19license shall be required of an airline company if liquor
20service is provided on board aircraft in this State. The annual
21fee for such license shall be as determined in Section 5-3.
22 (k) A foreign importer's license shall permit such licensee
23to purchase alcoholic liquor from Illinois licensed
24non-resident dealers only, and to import alcoholic liquor other
25than in bulk from any point outside the United States and to
26sell such alcoholic liquor to Illinois licensed importing

SB3022 Enrolled- 39 -LRB100 18964 RPS 34214 b
1distributors and to no one else in Illinois; provided that (i)
2the foreign importer registers with the State Commission every
3brand of alcoholic liquor that it proposes to sell to Illinois
4licensees during the license period, (ii) the foreign importer
5complies with all of the provisions of Section 6-9 of this Act
6with respect to registration of such Illinois licensees as may
7be granted the right to sell such brands at wholesale, and
8(iii) the foreign importer complies with the provisions of
9Sections 6-5 and 6-6 of this Act to the same extent that these
10provisions apply to manufacturers.
11 (l) (i) A broker's license shall be required of all persons
12who solicit orders for, offer to sell or offer to supply
13alcoholic liquor to retailers in the State of Illinois, or who
14offer to retailers to ship or cause to be shipped or to make
15contact with distillers, rectifiers, brewers or manufacturers
16or any other party within or without the State of Illinois in
17order that alcoholic liquors be shipped to a distributor,
18importing distributor or foreign importer, whether such
19solicitation or offer is consummated within or without the
20State of Illinois.
21 No holder of a retailer's license issued by the Illinois
22Liquor Control Commission shall purchase or receive any
23alcoholic liquor, the order for which was solicited or offered
24for sale to such retailer by a broker unless the broker is the
25holder of a valid broker's license.
26 The broker shall, upon the acceptance by a retailer of the

SB3022 Enrolled- 40 -LRB100 18964 RPS 34214 b
1broker's solicitation of an order or offer to sell or supply or
2deliver or have delivered alcoholic liquors, promptly forward
3to the Illinois Liquor Control Commission a notification of
4said transaction in such form as the Commission may by
5regulations prescribe.
6 (ii) A broker's license shall be required of a person
7within this State, other than a retail licensee, who, for a fee
8or commission, promotes, solicits, or accepts orders for
9alcoholic liquor, for use or consumption and not for resale, to
10be shipped from this State and delivered to residents outside
11of this State by an express company, common carrier, or
12contract carrier. This Section does not apply to any person who
13promotes, solicits, or accepts orders for wine as specifically
14authorized in Section 6-29 of this Act.
15 A broker's license under this subsection (l) shall not
16entitle the holder to buy or sell any alcoholic liquors for his
17own account or to take or deliver title to such alcoholic
18liquors.
19 This subsection (l) shall not apply to distributors,
20employees of distributors, or employees of a manufacturer who
21has registered the trademark, brand or name of the alcoholic
22liquor pursuant to Section 6-9 of this Act, and who regularly
23sells such alcoholic liquor in the State of Illinois only to
24its registrants thereunder.
25 Any agent, representative, or person subject to
26registration pursuant to subsection (a-1) of this Section shall

SB3022 Enrolled- 41 -LRB100 18964 RPS 34214 b
1not be eligible to receive a broker's license.
2 (m) A non-resident dealer's license shall permit such
3licensee to ship into and warehouse alcoholic liquor into this
4State from any point outside of this State, and to sell such
5alcoholic liquor to Illinois licensed foreign importers and
6importing distributors and to no one else in this State;
7provided that (i) said non-resident dealer shall register with
8the Illinois Liquor Control Commission each and every brand of
9alcoholic liquor which it proposes to sell to Illinois
10licensees during the license period, (ii) it shall comply with
11all of the provisions of Section 6-9 hereof with respect to
12registration of such Illinois licensees as may be granted the
13right to sell such brands at wholesale by duly filing such
14registration statement, thereby authorizing the non-resident
15dealer to proceed to sell such brands at wholesale, and (iii)
16the non-resident dealer shall comply with the provisions of
17Sections 6-5 and 6-6 of this Act to the same extent that these
18provisions apply to manufacturers. No person licensed as a
19non-resident dealer shall be granted a distributor's or
20importing distributor's license.
21 (n) A brew pub license shall allow the licensee to only (i)
22manufacture up to 155,000 gallons of beer per year only on the
23premises specified in the license, (ii) make sales of the beer
24manufactured on the premises or, with the approval of the
25Commission, beer manufactured on another brew pub licensed
26premises that is wholly owned and operated by the same licensee

SB3022 Enrolled- 42 -LRB100 18964 RPS 34214 b
1to importing distributors, distributors, and to non-licensees
2for use and consumption, (iii) store the beer upon the
3premises, (iv) sell and offer for sale at retail from the
4licensed premises for off-premises consumption no more than
5155,000 gallons per year so long as such sales are only made
6in-person, (v) sell and offer for sale at retail for use and
7consumption on the premises specified in the license any form
8of alcoholic liquor purchased from a licensed distributor or
9importing distributor, and (vi) with the prior approval of the
10Commission, annually transfer no more than 155,000 gallons of
11beer manufactured on the premises to a licensed brew pub wholly
12owned and operated by the same licensee.
13 A brew pub licensee shall not under any circumstance sell
14or offer for sale beer manufactured by the brew pub licensee to
15retail licensees.
16 A person who holds a class 2 brewer license may
17simultaneously hold a brew pub license if the class 2 brewer
18(i) does not, under any circumstance, sell or offer for sale
19beer manufactured by the class 2 brewer to retail licensees;
20(ii) does not hold more than 3 brew pub licenses in this State;
21(iii) does not manufacture more than a combined 3,720,000
22gallons of beer per year, including the beer manufactured at
23the brew pub; and (iv) is not a member of or affiliated with,
24directly or indirectly, a manufacturer that produces more than
253,720,000 gallons of beer per year or any other alcoholic
26liquor.

SB3022 Enrolled- 43 -LRB100 18964 RPS 34214 b
1 Notwithstanding any other provision of this Act, a licensed
2brewer, class 2 brewer, or non-resident dealer who before July
31, 2015 manufactured less than 3,720,000 gallons of beer per
4year and held a brew pub license on or before July 1, 2015 may
5(i) continue to qualify for and hold that brew pub license for
6the licensed premises and (ii) manufacture more than 3,720,000
7gallons of beer per year and continue to qualify for and hold
8that brew pub license if that brewer, class 2 brewer, or
9non-resident dealer does not simultaneously hold a class 1
10brewer license and is not a member of or affiliated with,
11directly or indirectly, a manufacturer that produces more than
123,720,000 gallons of beer per year or that produces any other
13alcoholic liquor.
14 (o) A caterer retailer license shall allow the holder to
15serve alcoholic liquors as an incidental part of a food service
16that serves prepared meals which excludes the serving of snacks
17as the primary meal, either on or off-site whether licensed or
18unlicensed.
19 (p) An auction liquor license shall allow the licensee to
20sell and offer for sale at auction wine and spirits for use or
21consumption, or for resale by an Illinois liquor licensee in
22accordance with provisions of this Act. An auction liquor
23license will be issued to a person and it will permit the
24auction liquor licensee to hold the auction anywhere in the
25State. An auction liquor license must be obtained for each
26auction at least 14 days in advance of the auction date.

SB3022 Enrolled- 44 -LRB100 18964 RPS 34214 b
1 (q) A special use permit license shall allow an Illinois
2licensed retailer to transfer a portion of its alcoholic liquor
3inventory from its retail licensed premises to the premises
4specified in the license hereby created, and to sell or offer
5for sale at retail, only in the premises specified in the
6license hereby created, the transferred alcoholic liquor for
7use or consumption, but not for resale in any form. A special
8use permit license may be granted for the following time
9periods: one day or less; 2 or more days to a maximum of 15 days
10per location in any 12-month period. An applicant for the
11special use permit license must also submit with the
12application proof satisfactory to the State Commission that the
13applicant will provide dram shop liability insurance to the
14maximum limits and have local authority approval.
15 (r) A winery shipper's license shall allow a person with a
16first-class or second-class wine manufacturer's license, a
17first-class or second-class wine-maker's license, or a limited
18wine manufacturer's license or who is licensed to make wine
19under the laws of another state to ship wine made by that
20licensee directly to a resident of this State who is 21 years
21of age or older for that resident's personal use and not for
22resale. Prior to receiving a winery shipper's license, an
23applicant for the license must provide the Commission with a
24true copy of its current license in any state in which it is
25licensed as a manufacturer of wine. An applicant for a winery
26shipper's license must also complete an application form that

SB3022 Enrolled- 45 -LRB100 18964 RPS 34214 b
1provides any other information the Commission deems necessary.
2The application form shall include all addresses from which the
3applicant for a winery shipper's license intends to ship wine,
4including the name and address of any third party, except for a
5common carrier, authorized to ship wine on behalf of the
6manufacturer. The application form shall include an
7acknowledgement consenting to the jurisdiction of the
8Commission, the Illinois Department of Revenue, and the courts
9of this State concerning the enforcement of this Act and any
10related laws, rules, and regulations, including authorizing
11the Department of Revenue and the Commission to conduct audits
12for the purpose of ensuring compliance with Public Act 95-634,
13and an acknowledgement that the wine manufacturer is in
14compliance with Section 6-2 of this Act. Any third party,
15except for a common carrier, authorized to ship wine on behalf
16of a first-class or second-class wine manufacturer's licensee,
17a first-class or second-class wine-maker's licensee, a limited
18wine manufacturer's licensee, or a person who is licensed to
19make wine under the laws of another state shall also be
20disclosed by the winery shipper's licensee, and a copy of the
21written appointment of the third-party wine provider, except
22for a common carrier, to the wine manufacturer shall be filed
23with the State Commission as a supplement to the winery
24shipper's license application or any renewal thereof. The
25winery shipper's license holder shall affirm under penalty of
26perjury, as part of the winery shipper's license application or

SB3022 Enrolled- 46 -LRB100 18964 RPS 34214 b
1renewal, that he or she only ships wine, either directly or
2indirectly through a third-party provider, from the licensee's
3own production.
4 Except for a common carrier, a third-party provider
5shipping wine on behalf of a winery shipper's license holder is
6the agent of the winery shipper's license holder and, as such,
7a winery shipper's license holder is responsible for the acts
8and omissions of the third-party provider acting on behalf of
9the license holder. A third-party provider, except for a common
10carrier, that engages in shipping wine into Illinois on behalf
11of a winery shipper's license holder shall consent to the
12jurisdiction of the State Commission and the State. Any
13third-party, except for a common carrier, holding such an
14appointment shall, by February 1 of each calendar year and upon
15request by the State Commission or the Department of Revenue,
16file with the State Commission a statement detailing each
17shipment made to an Illinois resident. The statement shall
18include the name and address of the third-party provider filing
19the statement, the time period covered by the statement, and
20the following information:
21 (1) the name, address, and license number of the winery
22 shipper on whose behalf the shipment was made;
23 (2) the quantity of the products delivered; and
24 (3) the date and address of the shipment.
25If the Department of Revenue or the State Commission requests a
26statement under this paragraph, the third-party provider must

SB3022 Enrolled- 47 -LRB100 18964 RPS 34214 b
1provide that statement no later than 30 days after the request
2is made. Any books, records, supporting papers, and documents
3containing information and data relating to a statement under
4this paragraph shall be kept and preserved for a period of 3
5years, unless their destruction sooner is authorized, in
6writing, by the Director of Revenue, and shall be open and
7available to inspection by the Director of Revenue or the State
8Commission or any duly authorized officer, agent, or employee
9of the State Commission or the Department of Revenue, at all
10times during business hours of the day. Any person who violates
11any provision of this paragraph or any rule of the State
12Commission for the administration and enforcement of the
13provisions of this paragraph is guilty of a Class C
14misdemeanor. In case of a continuing violation, each day's
15continuance thereof shall be a separate and distinct offense.
16 The State Commission shall adopt rules as soon as
17practicable to implement the requirements of Public Act 99-904
18and shall adopt rules prohibiting any such third-party
19appointment of a third-party provider, except for a common
20carrier, that has been deemed by the State Commission to have
21violated the provisions of this Act with regard to any winery
22shipper licensee.
23 A winery shipper licensee must pay to the Department of
24Revenue the State liquor gallonage tax under Section 8-1 for
25all wine that is sold by the licensee and shipped to a person
26in this State. For the purposes of Section 8-1, a winery

SB3022 Enrolled- 48 -LRB100 18964 RPS 34214 b
1shipper licensee shall be taxed in the same manner as a
2manufacturer of wine. A licensee who is not otherwise required
3to register under the Retailers' Occupation Tax Act must
4register under the Use Tax Act to collect and remit use tax to
5the Department of Revenue for all gallons of wine that are sold
6by the licensee and shipped to persons in this State. If a
7licensee fails to remit the tax imposed under this Act in
8accordance with the provisions of Article VIII of this Act, the
9winery shipper's license shall be revoked in accordance with
10the provisions of Article VII of this Act. If a licensee fails
11to properly register and remit tax under the Use Tax Act or the
12Retailers' Occupation Tax Act for all wine that is sold by the
13winery shipper and shipped to persons in this State, the winery
14shipper's license shall be revoked in accordance with the
15provisions of Article VII of this Act.
16 A winery shipper licensee must collect, maintain, and
17submit to the Commission on a semi-annual basis the total
18number of cases per resident of wine shipped to residents of
19this State. A winery shipper licensed under this subsection (r)
20must comply with the requirements of Section 6-29 of this Act.
21 Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
22Section 3-12, the State Commission may receive, respond to, and
23investigate any complaint and impose any of the remedies
24specified in paragraph (1) of subsection (a) of Section 3-12.
25 As used in this subsection, "third-party provider" means
26any entity that provides fulfillment house services, including

SB3022 Enrolled- 49 -LRB100 18964 RPS 34214 b
1warehousing, packaging, distribution, order processing, or
2shipment of wine, but not the sale of wine, on behalf of a
3licensed winery shipper.
4 (s) A craft distiller tasting permit license shall allow an
5Illinois licensed craft distiller to transfer a portion of its
6alcoholic liquor inventory from its craft distiller licensed
7premises to the premises specified in the license hereby
8created and to conduct a sampling, only in the premises
9specified in the license hereby created, of the transferred
10alcoholic liquor in accordance with subsection (c) of Section
116-31 of this Act. The transferred alcoholic liquor may not be
12sold or resold in any form. An applicant for the craft
13distiller tasting permit license must also submit with the
14application proof satisfactory to the State Commission that the
15applicant will provide dram shop liability insurance to the
16maximum limits and have local authority approval.
17(Source: P.A. 99-448, eff. 8-24-15; 99-642, eff. 7-28-16;
1899-800, eff. 8-12-16; 99-902, eff. 8-26-16; 99-904, eff.
191-1-17; 100-17, eff. 6-30-17; 100-201, eff. 8-18-17.)
20 (235 ILCS 5/8-5) (from Ch. 43, par. 163a)
21 Sec. 8-5. As soon as practicable after any return is filed
22but not before 90 days after the return is filed, or any
23amendments to that return, whichever is later, the Department
24shall examine such return or amended return and shall correct
25such return according to its best judgment and information,

SB3022 Enrolled- 50 -LRB100 18964 RPS 34214 b
1which return so corrected by the Department shall be prima
2facie correct and shall be prima facie evidence of the
3correctness of the amount of tax due, as shown therein. Instead
4of requiring the licensee to file an amended return, the
5Department may simply notify the licensee of the correction or
6corrections it has made. Proof of such correction by the
7Department, or of the determination of the amount of tax due as
8provided in Sections 8-4 and 8-10, may be made at any hearing
9before the Department or in any legal proceeding by a
10reproduced copy of the Department's record relating thereto in
11the name of the Department under the certificate of the
12Director of Revenue. Such reproduced copy shall, without
13further proof, be admitted into evidence before the Department
14or in any legal proceeding and shall be prima facie proof of
15the correctness of the amount of tax due, as shown therein. If
16the return so corrected by the Department discloses the sale or
17use, by a licensed manufacturer or importing distributor, of
18alcoholic liquors as to which the tax provided for in this
19Article should have been paid, but has not been paid, in excess
20of the alcoholic liquors reported as being taxable by the
21licensee, and as to which the proper tax was paid the
22Department shall notify the licensee that it shall issue the
23taxpayer a notice of tax liability for the amount of tax
24claimed by the Department to be due, together with penalties at
25the rates prescribed by Sections 3-3, 3-5 and 3-6 of the
26Uniform Penalty and Interest Act, which amount of tax shall be

SB3022 Enrolled- 51 -LRB100 18964 RPS 34214 b
1equivalent to the amount of tax which, at the prescribed rate
2per gallon, should have been paid with respect to the alcoholic
3liquors disposed of in excess of those reported as being
4taxable. In a case where no return has been filed, the
5Department shall determine the amount of tax due according to
6its best judgment and information and shall issue the taxpayer
7a notice of tax liability for the amount of tax claimed by the
8Department to be due as herein provided together with penalties
9at the rates prescribed by Sections 3-3, 3-5 and 3-6 of the
10Uniform Penalty and Interest Act. If, in administering the
11provisions of this Act, a comparison of a licensee's return or
12returns with the books, records and physical inventories of
13such licensee discloses a deficiency which cannot be allocated
14by the Department to a particular month or months, the
15Department shall issue the taxpayer a notice of tax liability
16for the amount of tax claimed by the Department to be due for a
17given period, but without any obligation upon the Department to
18allocate such deficiency to any particular month or months,
19together with penalties at the rates prescribed by Sections
203-3, 3-5 and 3-6 of the Uniform Penalty and Interest Act, which
21amount of tax shall be equivalent to the amount of tax which,
22at the prescribed rate per gallon, should have been paid with
23respect to the alcoholic liquors disposed of in excess of those
24reported being taxable, with the tax thereon having been paid
25under which circumstances the aforesaid notice of tax liability
26shall be prima facie correct and shall be prima facie evidence

SB3022 Enrolled- 52 -LRB100 18964 RPS 34214 b
1of the correctness of the amount of tax due as shown therein;
2and proof of such correctness may be made in accordance with,
3and the admissibility of a reproduced copy of such notice of
4the Department's notice of tax liability shall be governed by,
5all the provisions of this Act applicable to corrected returns.
6 If the licensee dies or becomes a person under legal
7disability at any time before the Department issues its notice
8of tax liability, such notice shall be issued to the
9administrator, executor or other legal representative, as
10such, of the deceased or licensee who is under legal
11disability.
12 If such licensee or legal representative, within 60 days
13after such notice of tax liability, files a protest to such
14notice of tax liability and requests a hearing thereon, the
15Department shall give at least 7 days' notice to such licensee
16or legal representative, as the case may be, of the time and
17place fixed for such hearing and shall hold a hearing in
18conformity with the provisions of this Act, and pursuant
19thereto shall issue a final assessment to such licensee or
20legal representative for the amount found to be due as a result
21of such hearing.
22 If a protest to the notice of tax liability and a request
23for a hearing thereon is not filed within 60 days after such
24notice of tax liability, such notice of tax liability shall
25become final without the necessity of a final assessment being
26issued and shall be deemed to be a final assessment.

SB3022 Enrolled- 53 -LRB100 18964 RPS 34214 b
1 In case of failure to pay the tax, or any portion thereof,
2or any penalty provided for herein, when due, the Department
3may recover the amount of such tax, or portion thereof, or
4penalty in a civil action; or if the licensee dies or becomes a
5person under legal disability, by filing a claim therefor
6against his or her estate; provided that no such claim shall be
7filed against the estate of any deceased or of the licensee who
8is under legal disability for any tax or penalty or portion
9thereof except in the manner prescribed and within the time
10limited by the Probate Act of 1975, as amended.
11 The collection of any such tax and penalty, or either, by
12any means provided for herein, shall not be a bar to any
13prosecution under this Act.
14 In addition to any other penalty provided for in this
15Article, any licensee who fails to pay any tax within the time
16required by this Article shall be subject to assessment of
17penalties and interest at rates set forth in the Uniform
18Penalty and Interest Act.
19(Source: P.A. 87-205; 87-879.)
20 Section 99. Effective date. This Act takes effect July 1,
212019, except that this Section and changes to Sections 3-12 and
225-1 of the Liquor Control Act of 1934 take effect upon becoming
23law.
feedback