Illinois 2023-2024 Regular Session

Illinois House Bill HB3423 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3423 Introduced , by Rep. Will Guzzardi SYNOPSIS AS INTRODUCED: 235 ILCS 5/1-3.43235 ILCS 5/5-1 from Ch. 43, par. 115235 ILCS 5/6-40 new235 ILCS 5/8-10.5 Amends the Liquor Control Act of 1934. Authorizes a class 1 brewer or class 2 brewer to obtain a beer showcase permit. Makes conforming changes. Provides that a class 3 brewer licensee who meets certain criteria may obtain a self-distribution exemption to allow the sale of not more than 77,500 (instead of 6,200) gallons of beer from each in-state or out-of-state class 3 brewery premises, which shall not exceed 232,500 (instead of 18,600) gallons annually in the aggregate, to retail licensees and certain brewers. Provides that a class 2 brewer may transfer up to 139,500 gallons (instead of 31,000 gallons) of beer to a brew pub wholly owned and operated by the class 2 brewer. With regard to special event retailer's licenses and special use permit licenses, provides that those licenses shall allow the licensee to sell and offer for sale, at retail, alcoholic liquors for consumption on or off the premises specified in the license (instead of for use or consumption), but not for resale in any form. Removes a provision requiring certain brewers to file a report of their water usage. Provides that any retail licensee or licensed manufacturer with retail privileges may offer incentives to consumers for participation in a consumer loyalty and reward program. LRB103 30931 RPS 57479 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3423 Introduced , by Rep. Will Guzzardi SYNOPSIS AS INTRODUCED: 235 ILCS 5/1-3.43235 ILCS 5/5-1 from Ch. 43, par. 115235 ILCS 5/6-40 new235 ILCS 5/8-10.5 235 ILCS 5/1-3.43 235 ILCS 5/5-1 from Ch. 43, par. 115 235 ILCS 5/6-40 new 235 ILCS 5/8-10.5 Amends the Liquor Control Act of 1934. Authorizes a class 1 brewer or class 2 brewer to obtain a beer showcase permit. Makes conforming changes. Provides that a class 3 brewer licensee who meets certain criteria may obtain a self-distribution exemption to allow the sale of not more than 77,500 (instead of 6,200) gallons of beer from each in-state or out-of-state class 3 brewery premises, which shall not exceed 232,500 (instead of 18,600) gallons annually in the aggregate, to retail licensees and certain brewers. Provides that a class 2 brewer may transfer up to 139,500 gallons (instead of 31,000 gallons) of beer to a brew pub wholly owned and operated by the class 2 brewer. With regard to special event retailer's licenses and special use permit licenses, provides that those licenses shall allow the licensee to sell and offer for sale, at retail, alcoholic liquors for consumption on or off the premises specified in the license (instead of for use or consumption), but not for resale in any form. Removes a provision requiring certain brewers to file a report of their water usage. Provides that any retail licensee or licensed manufacturer with retail privileges may offer incentives to consumers for participation in a consumer loyalty and reward program. LRB103 30931 RPS 57479 b LRB103 30931 RPS 57479 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3423 Introduced , by Rep. Will Guzzardi SYNOPSIS AS INTRODUCED:
3	3	235 ILCS 5/1-3.43235 ILCS 5/5-1 from Ch. 43, par. 115235 ILCS 5/6-40 new235 ILCS 5/8-10.5 235 ILCS 5/1-3.43 235 ILCS 5/5-1 from Ch. 43, par. 115 235 ILCS 5/6-40 new 235 ILCS 5/8-10.5
4	4	235 ILCS 5/1-3.43
5	5	235 ILCS 5/5-1 from Ch. 43, par. 115
6	6	235 ILCS 5/6-40 new
7	7	235 ILCS 5/8-10.5
8	8	Amends the Liquor Control Act of 1934. Authorizes a class 1 brewer or class 2 brewer to obtain a beer showcase permit. Makes conforming changes. Provides that a class 3 brewer licensee who meets certain criteria may obtain a self-distribution exemption to allow the sale of not more than 77,500 (instead of 6,200) gallons of beer from each in-state or out-of-state class 3 brewery premises, which shall not exceed 232,500 (instead of 18,600) gallons annually in the aggregate, to retail licensees and certain brewers. Provides that a class 2 brewer may transfer up to 139,500 gallons (instead of 31,000 gallons) of beer to a brew pub wholly owned and operated by the class 2 brewer. With regard to special event retailer's licenses and special use permit licenses, provides that those licenses shall allow the licensee to sell and offer for sale, at retail, alcoholic liquors for consumption on or off the premises specified in the license (instead of for use or consumption), but not for resale in any form. Removes a provision requiring certain brewers to file a report of their water usage. Provides that any retail licensee or licensed manufacturer with retail privileges may offer incentives to consumers for participation in a consumer loyalty and reward program.
9	9	LRB103 30931 RPS 57479 b LRB103 30931 RPS 57479 b
10	10	LRB103 30931 RPS 57479 b
11	11	A BILL FOR
12	12	HB3423LRB103 30931 RPS 57479 b HB3423 LRB103 30931 RPS 57479 b
13	13	HB3423 LRB103 30931 RPS 57479 b
14	14	1 AN ACT concerning liquor.
15	15	2 Be it enacted by the People of the State of Illinois,
16	16	3 represented in the General Assembly:
17	17	4 Section 5. The Liquor Control Act of 1934 is amended by
18	18	5 changing Sections 1-3.43, 5-1, and 8-10.5 and by adding
19	19	6 Section 6-40 as follows:
20	20	7 (235 ILCS 5/1-3.43)
21	21	8 Sec. 1-3.43. Beer showcase permit license. "Beer showcase
22	22	9 permit" means a license for use by a class 1 brewer, class 2
23	23	10 brewer, class 3 brewer, or distributor to allow for the
24	24	11 transfer of beer only from an existing licensed premises of a
25	25	12 class 1 brewer, class 2 brewer, class 3 brewer, or distributor
26	26	13 to a designated site for a specific event.
27	27	14 (Source: P.A. 102-442, eff. 8-20-21; revised 2-28-22.)
28	28	15 (235 ILCS 5/5-1) (from Ch. 43, par. 115)
29	29	16 Sec. 5-1. Licenses issued by the Illinois Liquor Control
30	30	17 Commission shall be of the following classes:
31	31	18 (a) Manufacturer's license - Class 1. Distiller, Class 2.
32	32	19 Rectifier, Class 3. Brewer, Class 4. First Class Wine
33	33	20 Manufacturer, Class 5. Second Class Wine Manufacturer, Class
34	34	21 6. First Class Winemaker, Class 7. Second Class Winemaker,
35	35	22 Class 8. Limited Wine Manufacturer, Class 9. Craft Distiller,
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39	39	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3423 Introduced , by Rep. Will Guzzardi SYNOPSIS AS INTRODUCED:
40	40	235 ILCS 5/1-3.43235 ILCS 5/5-1 from Ch. 43, par. 115235 ILCS 5/6-40 new235 ILCS 5/8-10.5 235 ILCS 5/1-3.43 235 ILCS 5/5-1 from Ch. 43, par. 115 235 ILCS 5/6-40 new 235 ILCS 5/8-10.5
41	41	235 ILCS 5/1-3.43
42	42	235 ILCS 5/5-1 from Ch. 43, par. 115
43	43	235 ILCS 5/6-40 new
44	44	235 ILCS 5/8-10.5
45	45	Amends the Liquor Control Act of 1934. Authorizes a class 1 brewer or class 2 brewer to obtain a beer showcase permit. Makes conforming changes. Provides that a class 3 brewer licensee who meets certain criteria may obtain a self-distribution exemption to allow the sale of not more than 77,500 (instead of 6,200) gallons of beer from each in-state or out-of-state class 3 brewery premises, which shall not exceed 232,500 (instead of 18,600) gallons annually in the aggregate, to retail licensees and certain brewers. Provides that a class 2 brewer may transfer up to 139,500 gallons (instead of 31,000 gallons) of beer to a brew pub wholly owned and operated by the class 2 brewer. With regard to special event retailer's licenses and special use permit licenses, provides that those licenses shall allow the licensee to sell and offer for sale, at retail, alcoholic liquors for consumption on or off the premises specified in the license (instead of for use or consumption), but not for resale in any form. Removes a provision requiring certain brewers to file a report of their water usage. Provides that any retail licensee or licensed manufacturer with retail privileges may offer incentives to consumers for participation in a consumer loyalty and reward program.
46	46	LRB103 30931 RPS 57479 b LRB103 30931 RPS 57479 b
47	47	LRB103 30931 RPS 57479 b
48	48	A BILL FOR
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54	54	235 ILCS 5/1-3.43
55	55	235 ILCS 5/5-1 from Ch. 43, par. 115
56	56	235 ILCS 5/6-40 new
57	57	235 ILCS 5/8-10.5
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76	76	1 Class 10. Class 1 Craft Distiller, Class 11. Class 2 Craft
77	77	2 Distiller, Class 12. Class 1 Brewer, Class 13. Class 2 Brewer,
78	78	3 Class 14. Class 3 Brewer,
79	79	4 (b) Distributor's license,
80	80	5 (c) Importing Distributor's license,
81	81	6 (d) Retailer's license,
82	82	7 (e) Special Event Retailer's license (not-for-profit),
83	83	8 (f) Railroad license,
84	84	9 (g) Boat license,
85	85	10 (h) Non-Beverage User's license,
86	86	11 (i) Wine-maker's premises license,
87	87	12 (j) Airplane license,
88	88	13 (k) Foreign importer's license,
89	89	14 (l) Broker's license,
90	90	15 (m) Non-resident dealer's license,
91	91	16 (n) Brew Pub license,
92	92	17 (o) Auction liquor license,
93	93	18 (p) Caterer retailer license,
94	94	19 (q) Special use permit license,
95	95	20 (r) Winery shipper's license,
96	96	21 (s) Craft distiller tasting permit,
97	97	22 (t) Brewer warehouse permit,
98	98	23 (u) Distilling pub license,
99	99	24 (v) Craft distiller warehouse permit,
100	100	25 (w) Beer showcase permit.
101	101	26 No person, firm, partnership, corporation, or other legal
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112	112	1 business entity that is engaged in the manufacturing of wine
113	113	2 may concurrently obtain and hold a wine-maker's license and a
114	114	3 wine manufacturer's license.
115	115	4 (a) A manufacturer's license shall allow the manufacture,
116	116	5 importation in bulk, storage, distribution and sale of
117	117	6 alcoholic liquor to persons without the State, as may be
118	118	7 permitted by law and to licensees in this State as follows:
119	119	8 Class 1. A Distiller may make sales and deliveries of
120	120	9 alcoholic liquor to distillers, rectifiers, importing
121	121	10 distributors, distributors and non-beverage users and to no
122	122	11 other licensees.
123	123	12 Class 2. A Rectifier, who is not a distiller, as defined
124	124	13 herein, may make sales and deliveries of alcoholic liquor to
125	125	14 rectifiers, importing distributors, distributors, retailers
126	126	15 and non-beverage users and to no other licensees.
127	127	16 Class 3. A Brewer may make sales and deliveries of beer to
128	128	17 importing distributors and distributors and may make sales as
129	129	18 authorized under subsection (e) of Section 6-4 of this Act,
130	130	19 including any alcoholic liquor that subsection (e) of Section
131	131	20 6-4 authorizes a brewer to sell in its original package only to
132	132	21 a non-licensee for pick-up by a non-licensee either within the
133	133	22 interior of the brewery premises or at outside of the brewery
134	134	23 premises at a curb-side or parking lot adjacent to the brewery
135	135	24 premises, subject to any local ordinance.
136	136	25 Class 4. A first class wine-manufacturer may make sales
137	137	26 and deliveries of up to 50,000 gallons of wine to
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148	148	1 manufacturers, importing distributors and distributors, and to
149	149	2 no other licensees. If a first-class wine-manufacturer
150	150	3 manufactures beer, it shall also obtain and shall only be
151	151	4 eligible for, in addition to any current license, a class 1
152	152	5 brewer license, shall not manufacture more than 930,000
153	153	6 gallons of beer per year, and shall not be a member of or
154	154	7 affiliated with, directly or indirectly, a manufacturer that
155	155	8 produces more than 930,000 gallons of beer per year. If the
156	156	9 first-class wine-manufacturer manufactures spirits, it shall
157	157	10 also obtain and shall only be eligible for, in addition to any
158	158	11 current license, a class 1 craft distiller license, shall not
159	159	12 manufacture more than 50,000 gallons of spirits per year, and
160	160	13 shall not be a member of or affiliated with, directly or
161	161	14 indirectly, a manufacturer that produces more than 50,000
162	162	15 gallons of spirits per year. A first-class wine-manufacturer
163	163	16 shall be permitted to sell wine manufactured at the
164	164	17 first-class wine-manufacturer premises to non-licensees.
165	165	18 Class 5. A second class Wine manufacturer may make sales
166	166	19 and deliveries of more than 50,000 gallons of wine to
167	167	20 manufacturers, importing distributors and distributors and to
168	168	21 no other licensees.
169	169	22 Class 6. A first-class wine-maker's license shall allow
170	170	23 the manufacture of up to 50,000 gallons of wine per year, and
171	171	24 the storage and sale of such wine to distributors in the State
172	172	25 and to persons without the State, as may be permitted by law. A
173	173	26 person who, prior to June 1, 2008 (the effective date of Public
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184	184	1 Act 95-634), is a holder of a first-class wine-maker's license
185	185	2 and annually produces more than 25,000 gallons of its own wine
186	186	3 and who distributes its wine to licensed retailers shall cease
187	187	4 this practice on or before July 1, 2008 in compliance with
188	188	5 Public Act 95-634. If a first-class wine-maker manufactures
189	189	6 beer, it shall also obtain and shall only be eligible for, in
190	190	7 addition to any current license, a class 1 brewer license,
191	191	8 shall not manufacture more than 930,000 gallons of beer per
192	192	9 year, and shall not be a member of or affiliated with, directly
193	193	10 or indirectly, a manufacturer that produces more than 930,000
194	194	11 gallons of beer per year. If the first-class wine-maker
195	195	12 manufactures spirits, it shall also obtain and shall only be
196	196	13 eligible for, in addition to any current license, a class 1
197	197	14 craft distiller license, shall not manufacture more than
198	198	15 50,000 gallons of spirits per year, and shall not be a member
199	199	16 of or affiliated with, directly or indirectly, a manufacturer
200	200	17 that produces more than 50,000 gallons of spirits per year. A
201	201	18 first-class wine-maker holding a class 1 brewer license or a
202	202	19 class 1 craft distiller license shall not be eligible for a
203	203	20 wine-maker's premises license but shall be permitted to sell
204	204	21 wine manufactured at the first-class wine-maker premises to
205	205	22 non-licensees.
206	206	23 Class 7. A second-class wine-maker's license shall allow
207	207	24 the manufacture of up to 150,000 gallons of wine per year, and
208	208	25 the storage and sale of such wine to distributors in this State
209	209	26 and to persons without the State, as may be permitted by law. A
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220	220	1 person who, prior to June 1, 2008 (the effective date of Public
221	221	2 Act 95-634), is a holder of a second-class wine-maker's
222	222	3 license and annually produces more than 25,000 gallons of its
223	223	4 own wine and who distributes its wine to licensed retailers
224	224	5 shall cease this practice on or before July 1, 2008 in
225	225	6 compliance with Public Act 95-634. If a second-class
226	226	7 wine-maker manufactures beer, it shall also obtain and shall
227	227	8 only be eligible for, in addition to any current license, a
228	228	9 class 2 brewer license, shall not manufacture more than
229	229	10 3,720,000 gallons of beer per year, and shall not be a member
230	230	11 of or affiliated with, directly or indirectly, a manufacturer
231	231	12 that produces more than 3,720,000 gallons of beer per year. If
232	232	13 a second-class wine-maker manufactures spirits, it shall also
233	233	14 obtain and shall only be eligible for, in addition to any
234	234	15 current license, a class 2 craft distiller license, shall not
235	235	16 manufacture more than 100,000 gallons of spirits per year, and
236	236	17 shall not be a member of or affiliated with, directly or
237	237	18 indirectly, a manufacturer that produces more than 100,000
238	238	19 gallons of spirits per year.
239	239	20 Class 8. A limited wine-manufacturer may make sales and
240	240	21 deliveries not to exceed 40,000 gallons of wine per year to
241	241	22 distributors, and to non-licensees in accordance with the
242	242	23 provisions of this Act.
243	243	24 Class 9. A craft distiller license, which may only be held
244	244	25 by a class 1 craft distiller licensee or class 2 craft
245	245	26 distiller licensee but not held by both a class 1 craft
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256	256	1 distiller licensee and a class 2 craft distiller licensee,
257	257	2 shall grant all rights conveyed by either: (i) a class 1 craft
258	258	3 distiller license if the craft distiller holds a class 1 craft
259	259	4 distiller license; or (ii) a class 2 craft distiller licensee
260	260	5 if the craft distiller holds a class 2 craft distiller
261	261	6 license.
262	262	7 Class 10. A class 1 craft distiller license, which may
263	263	8 only be issued to a licensed craft distiller or licensed
264	264	9 non-resident dealer, shall allow the manufacture of up to
265	265	10 50,000 gallons of spirits per year provided that the class 1
266	266	11 craft distiller licensee does not manufacture more than a
267	267	12 combined 50,000 gallons of spirits per year and is not a member
268	268	13 of or affiliated with, directly or indirectly, a manufacturer
269	269	14 that produces more than 50,000 gallons of spirits per year. If
270	270	15 a class 1 craft distiller manufactures beer, it shall also
271	271	16 obtain and shall only be eligible for, in addition to any
272	272	17 current license, a class 1 brewer license, shall not
273	273	18 manufacture more than 930,000 gallons of beer per year, and
274	274	19 shall not be a member of or affiliated with, directly or
275	275	20 indirectly, a manufacturer that produces more than 930,000
276	276	21 gallons of beer per year. If a class 1 craft distiller
277	277	22 manufactures wine, it shall also obtain and shall only be
278	278	23 eligible for, in addition to any current license, a
279	279	24 first-class wine-manufacturer license or a first-class
280	280	25 wine-maker's license, shall not manufacture more than 50,000
281	281	26 gallons of wine per year, and shall not be a member of or
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292	292	1 affiliated with, directly or indirectly, a manufacturer that
293	293	2 produces more than 50,000 gallons of wine per year. A class 1
294	294	3 craft distiller licensee may make sales and deliveries to
295	295	4 importing distributors and distributors and to retail
296	296	5 licensees in accordance with the conditions set forth in
297	297	6 paragraph (19) of subsection (a) of Section 3-12 of this Act.
298	298	7 However, the aggregate amount of spirits sold to non-licensees
299	299	8 and sold or delivered to retail licensees may not exceed 5,000
300	300	9 gallons per year.
301	301	10 A class 1 craft distiller licensee may sell up to 5,000
302	302	11 gallons of such spirits to non-licensees to the extent
303	303	12 permitted by any exemption approved by the State Commission
304	304	13 pursuant to Section 6-4 of this Act. A class 1 craft distiller
305	305	14 license holder may store such spirits at a non-contiguous
306	306	15 licensed location, but at no time shall a class 1 craft
307	307	16 distiller license holder directly or indirectly produce in the
308	308	17 aggregate more than 50,000 gallons of spirits per year.
309	309	18 A class 1 craft distiller licensee may hold more than one
310	310	19 class 1 craft distiller's license. However, a class 1 craft
311	311	20 distiller that holds more than one class 1 craft distiller
312	312	21 license shall not manufacture, in the aggregate, more than
313	313	22 50,000 gallons of spirits by distillation per year and shall
314	314	23 not sell, in the aggregate, more than 5,000 gallons of such
315	315	24 spirits to non-licensees in accordance with an exemption
316	316	25 approved by the State Commission pursuant to Section 6-4 of
317	317	26 this Act.
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328	328	1 Class 11. A class 2 craft distiller license, which may
329	329	2 only be issued to a licensed craft distiller or licensed
330	330	3 non-resident dealer, shall allow the manufacture of up to
331	331	4 100,000 gallons of spirits per year provided that the class 2
332	332	5 craft distiller licensee does not manufacture more than a
333	333	6 combined 100,000 gallons of spirits per year and is not a
334	334	7 member of or affiliated with, directly or indirectly, a
335	335	8 manufacturer that produces more than 100,000 gallons of
336	336	9 spirits per year. If a class 2 craft distiller manufactures
337	337	10 beer, it shall also obtain and shall only be eligible for, in
338	338	11 addition to any current license, a class 2 brewer license,
339	339	12 shall not manufacture more than 3,720,000 gallons of beer per
340	340	13 year, and shall not be a member of or affiliated with, directly
341	341	14 or indirectly, a manufacturer that produces more than
342	342	15 3,720,000 gallons of beer per year. If a class 2 craft
343	343	16 distiller manufactures wine, it shall also obtain and shall
344	344	17 only be eligible for, in addition to any current license, a
345	345	18 second-class wine-maker's license, shall not manufacture more
346	346	19 than 150,000 gallons of wine per year, and shall not be a
347	347	20 member of or affiliated with, directly or indirectly, a
348	348	21 manufacturer that produces more than 150,000 gallons of wine
349	349	22 per year. A class 2 craft distiller licensee may make sales and
350	350	23 deliveries to importing distributors and distributors, but
351	351	24 shall not make sales or deliveries to any other licensee. If
352	352	25 the State Commission provides prior approval, a class 2 craft
353	353	26 distiller licensee may annually transfer up to 100,000 gallons
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364	364	1 of spirits manufactured by that class 2 craft distiller
365	365	2 licensee to the premises of a licensed class 2 craft distiller
366	366	3 wholly owned and operated by the same licensee. A class 2 craft
367	367	4 distiller may transfer spirits to a distilling pub wholly
368	368	5 owned and operated by the class 2 craft distiller subject to
369	369	6 the following limitations and restrictions: (i) the transfer
370	370	7 shall not annually exceed more than 5,000 gallons; (ii) the
371	371	8 annual amount transferred shall reduce the distilling pub's
372	372	9 annual permitted production limit; (iii) all spirits
373	373	10 transferred shall be subject to Article VIII of this Act; (iv)
374	374	11 a written record shall be maintained by the distiller and
375	375	12 distilling pub specifying the amount, date of delivery, and
376	376	13 receipt of the product by the distilling pub; and (v) the
377	377	14 distilling pub shall be located no farther than 80 miles from
378	378	15 the class 2 craft distiller's licensed location.
379	379	16 A class 2 craft distiller shall, prior to transferring
380	380	17 spirits to a distilling pub wholly owned by the class 2 craft
381	381	18 distiller, furnish a written notice to the State Commission of
382	382	19 intent to transfer spirits setting forth the name and address
383	383	20 of the distilling pub and shall annually submit to the State
384	384	21 Commission a verified report identifying the total gallons of
385	385	22 spirits transferred to the distilling pub wholly owned by the
386	386	23 class 2 craft distiller.
387	387	24 A class 2 craft distiller license holder may store such
388	388	25 spirits at a non-contiguous licensed location, but at no time
389	389	26 shall a class 2 craft distiller license holder directly or
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400	400	1 indirectly produce in the aggregate more than 100,000 gallons
401	401	2 of spirits per year.
402	402	3 Class 12. A class 1 brewer license, which may only be
403	403	4 issued to a licensed brewer or licensed non-resident dealer,
404	404	5 shall allow the manufacture of up to 930,000 gallons of beer
405	405	6 per year provided that the class 1 brewer licensee does not
406	406	7 manufacture more than a combined 930,000 gallons of beer per
407	407	8 year and is not a member of or affiliated with, directly or
408	408	9 indirectly, a manufacturer that produces more than 930,000
409	409	10 gallons of beer per year. If a class 1 brewer manufactures
410	410	11 spirits, it shall also obtain and shall only be eligible for,
411	411	12 in addition to any current license, a class 1 craft distiller
412	412	13 license, shall not manufacture more than 50,000 gallons of
413	413	14 spirits per year, and shall not be a member of or affiliated
414	414	15 with, directly or indirectly, a manufacturer that produces
415	415	16 more than 50,000 gallons of spirits per year. If a class 1
416	416	17 craft brewer manufactures wine, it shall also obtain and shall
417	417	18 only be eligible for, in addition to any current license, a
418	418	19 first-class wine-manufacturer license or a first-class
419	419	20 wine-maker's license, shall not manufacture more than 50,000
420	420	21 gallons of wine per year, and shall not be a member of or
421	421	22 affiliated with, directly or indirectly, a manufacturer that
422	422	23 produces more than 50,000 gallons of wine per year. A class 1
423	423	24 brewer licensee may make sales and deliveries to importing
424	424	25 distributors and distributors and to retail licensees in
425	425	26 accordance with the conditions set forth in paragraph (18) of
426	426
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436	436	1 subsection (a) of Section 3-12 of this Act. If the State
437	437	2 Commission provides prior approval, a class 1 brewer may
438	438	3 annually transfer up to 930,000 gallons of beer manufactured
439	439	4 by that class 1 brewer to the premises of a licensed class 1
440	440	5 brewer wholly owned and operated by the same licensee.
441	441	6 Class 13. A class 2 brewer license, which may only be
442	442	7 issued to a licensed brewer or licensed non-resident dealer,
443	443	8 shall allow the manufacture of up to 3,720,000 gallons of beer
444	444	9 per year provided that the class 2 brewer licensee does not
445	445	10 manufacture more than a combined 3,720,000 gallons of beer per
446	446	11 year and is not a member of or affiliated with, directly or
447	447	12 indirectly, a manufacturer that produces more than 3,720,000
448	448	13 gallons of beer per year. If a class 2 brewer manufactures
449	449	14 spirits, it shall also obtain and shall only be eligible for,
450	450	15 in addition to any current license, a class 2 craft distiller
451	451	16 license, shall not manufacture more than 100,000 gallons of
452	452	17 spirits per year, and shall not be a member of or affiliated
453	453	18 with, directly or indirectly, a manufacturer that produces
454	454	19 more than 100,000 gallons of spirits per year. If a class 2
455	455	20 craft distiller manufactures wine, it shall also obtain and
456	456	21 shall only be eligible for, in addition to any current
457	457	22 license, a second-class wine-maker's license, shall not
458	458	23 manufacture more than 150,000 gallons of wine per year, and
459	459	24 shall not be a member of or affiliated with, directly or
460	460	25 indirectly, a manufacturer that produces more than 150,000
461	461	26 gallons of wine a year. A class 2 brewer licensee may make
462	462
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472	472	1 sales and deliveries to importing distributors and
473	473	2 distributors, but shall not make sales or deliveries to any
474	474	3 other licensee. If the State Commission provides prior
475	475	4 approval, a class 2 brewer licensee may annually transfer up
476	476	5 to 3,720,000 gallons of beer manufactured by that class 2
477	477	6 brewer licensee to the premises of a licensed class 2 brewer
478	478	7 wholly owned and operated by the same licensee.
479	479	8 A class 2 brewer may transfer beer to a brew pub wholly
480	480	9 owned and operated by the class 2 brewer subject to the
481	481	10 following limitations and restrictions: (i) the transfer shall
482	482	11 not annually exceed more than 139,500 31,000 gallons; (ii) the
483	483	12 annual amount transferred shall reduce the brew pub's annual
484	484	13 permitted production limit; (iii) all beer transferred shall
485	485	14 be subject to Article VIII of this Act; (iv) a written record
486	486	15 shall be maintained by the brewer and brew pub specifying the
487	487	16 amount, date of delivery, and receipt of the product by the
488	488	17 brew pub; and (v) the brew pub shall be located no farther than
489	489	18 80 miles from the class 2 brewer's licensed location.
490	490	19 A class 2 brewer shall, prior to transferring beer to a
491	491	20 brew pub wholly owned by the class 2 brewer, furnish a written
492	492	21 notice to the State Commission of intent to transfer beer
493	493	22 setting forth the name and address of the brew pub and shall
494	494	23 annually submit to the State Commission a verified report
495	495	24 identifying the total gallons of beer transferred to the brew
496	496	25 pub wholly owned by the class 2 brewer.
497	497	26 Class 14. A class 3 brewer license, which may be issued to
498	498
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508	508	1 a brewer or a non-resident dealer, shall allow the manufacture
509	509	2 of no more than 465,000 gallons of beer per year and no more
510	510	3 than 155,000 gallons at a single brewery premises, and shall
511	511	4 allow the sale of no more than 77,500 6,200 gallons of beer
512	512	5 from each in-state or out-of-state class 3 brewery premises,
513	513	6 or 232,500 18,600 gallons in the aggregate, to retail
514	514	7 licensees, class 1 brewers, class 2 brewers, and class 3
515	515	8 brewers as long as the class 3 brewer licensee does not
516	516	9 manufacture more than a combined 465,000 gallons of beer per
517	517	10 year and is not a member of or affiliated with, directly or
518	518	11 indirectly, a manufacturer that produces more than 465,000
519	519	12 gallons of beer per year to make sales to importing
520	520	13 distributors, distributors, retail licensees, brewers, class 1
521	521	14 brewers, class 2 brewers, and class 3 brewers in accordance
522	522	15 with the conditions set forth in paragraph (20) of subsection
523	523	16 (a) of Section 3-12. If the State Commission provides prior
524	524	17 approval, a class 3 brewer may annually transfer up to 155,000
525	525	18 gallons of beer manufactured by that class 3 brewer to the
526	526	19 premises of a licensed class 3 brewer wholly owned and
527	527	20 operated by the same licensee. A class 3 brewer shall
528	528	21 manufacture beer at the brewer's class 3 designated licensed
529	529	22 premises, and may sell beer as otherwise provided in this Act.
530	530	23 (a-1) A manufacturer which is licensed in this State to
531	531	24 make sales or deliveries of alcoholic liquor to licensed
532	532	25 distributors or importing distributors and which enlists
533	533	26 agents, representatives, or individuals acting on its behalf
534	534
535	535
536	536
537	537
538	538
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540	540
541	541
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544	544	1 who contact licensed retailers on a regular and continual
545	545	2 basis in this State must register those agents,
546	546	3 representatives, or persons acting on its behalf with the
547	547	4 State Commission.
548	548	5 Registration of agents, representatives, or persons acting
549	549	6 on behalf of a manufacturer is fulfilled by submitting a form
550	550	7 to the Commission. The form shall be developed by the
551	551	8 Commission and shall include the name and address of the
552	552	9 applicant, the name and address of the manufacturer he or she
553	553	10 represents, the territory or areas assigned to sell to or
554	554	11 discuss pricing terms of alcoholic liquor, and any other
555	555	12 questions deemed appropriate and necessary. All statements in
556	556	13 the forms required to be made by law or by rule shall be deemed
557	557	14 material, and any person who knowingly misstates any material
558	558	15 fact under oath in an application is guilty of a Class B
559	559	16 misdemeanor. Fraud, misrepresentation, false statements,
560	560	17 misleading statements, evasions, or suppression of material
561	561	18 facts in the securing of a registration are grounds for
562	562	19 suspension or revocation of the registration. The State
563	563	20 Commission shall post a list of registered agents on the
564	564	21 Commission's website.
565	565	22 (b) A distributor's license shall allow (i) the wholesale
566	566	23 purchase and storage of alcoholic liquors and sale of
567	567	24 alcoholic liquors to licensees in this State and to persons
568	568	25 without the State, as may be permitted by law; (ii) the sale of
569	569	26 beer, cider, mead, or any combination thereof to brewers,
570	570
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572	572
573	573
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580	580	1 class 1 brewers, and class 2 brewers that, pursuant to
581	581	2 subsection (e) of Section 6-4 of this Act, sell beer, cider,
582	582	3 mead, or any combination thereof to non-licensees at their
583	583	4 breweries; (iii) the sale of vermouth to class 1 craft
584	584	5 distillers and class 2 craft distillers that, pursuant to
585	585	6 subsection (e) of Section 6-4 of this Act, sell spirits,
586	586	7 vermouth, or both spirits and vermouth to non-licensees at
587	587	8 their distilleries; or (iv) as otherwise provided in this Act.
588	588	9 No person licensed as a distributor shall be granted a
589	589	10 non-resident dealer's license.
590	590	11 (c) An importing distributor's license may be issued to
591	591	12 and held by those only who are duly licensed distributors,
592	592	13 upon the filing of an application by a duly licensed
593	593	14 distributor, with the Commission and the Commission shall,
594	594	15 without the payment of any fee, immediately issue such
595	595	16 importing distributor's license to the applicant, which shall
596	596	17 allow the importation of alcoholic liquor by the licensee into
597	597	18 this State from any point in the United States outside this
598	598	19 State, and the purchase of alcoholic liquor in barrels, casks
599	599	20 or other bulk containers and the bottling of such alcoholic
600	600	21 liquors before resale thereof, but all bottles or containers
601	601	22 so filled shall be sealed, labeled, stamped and otherwise made
602	602	23 to comply with all provisions, rules and regulations governing
603	603	24 manufacturers in the preparation and bottling of alcoholic
604	604	25 liquors. The importing distributor's license shall permit such
605	605	26 licensee to purchase alcoholic liquor from Illinois licensed
606	606
607	607
608	608
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616	616	1 non-resident dealers and foreign importers only. No person
617	617	2 licensed as an importing distributor shall be granted a
618	618	3 non-resident dealer's license.
619	619	4 (d) A retailer's license shall allow the licensee to sell
620	620	5 and offer for sale at retail, only in the premises specified in
621	621	6 the license, alcoholic liquor for use or consumption, but not
622	622	7 for resale in any form. Except as provided in Section 6-16,
623	623	8 6-29, or 6-29.1, nothing in this Act shall deny, limit,
624	624	9 remove, or restrict the ability of a holder of a retailer's
625	625	10 license to transfer or ship alcoholic liquor to the purchaser
626	626	11 for use or consumption subject to any applicable local law or
627	627	12 ordinance. For the purposes of this Section, "shipping" means
628	628	13 the movement of alcoholic liquor from a licensed retailer to a
629	629	14 consumer via a common carrier. Except as provided in Section
630	630	15 6-16, 6-29, or 6-29.1, nothing in this Act shall deny, limit,
631	631	16 remove, or restrict the ability of a holder of a retailer's
632	632	17 license to deliver alcoholic liquor to the purchaser for use
633	633	18 or consumption. The delivery shall be made only within 12
634	634	19 hours from the time the alcoholic liquor leaves the licensed
635	635	20 premises of the retailer for delivery. For the purposes of
636	636	21 this Section, "delivery" means the movement of alcoholic
637	637	22 liquor purchased from a licensed retailer to a consumer
638	638	23 through the following methods:
639	639	24 (1) delivery within licensed retailer's parking lot,
640	640	25 including curbside, for pickup by the consumer;
641	641	26 (2) delivery by an owner, officer, director,
642	642
643	643
644	644
645	645
646	646
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652	652	1 shareholder, or employee of the licensed retailer; or
653	653	2 (3) delivery by a third-party contractor, independent
654	654	3 contractor, or agent with whom the licensed retailer has
655	655	4 contracted to make deliveries of alcoholic liquors.
656	656	5 Under subsection (1), (2), or (3), delivery shall not
657	657	6 include the use of common carriers.
658	658	7 Any retail license issued to a manufacturer shall only
659	659	8 permit the manufacturer to sell beer at retail on the premises
660	660	9 actually occupied by the manufacturer. For the purpose of
661	661	10 further describing the type of business conducted at a retail
662	662	11 licensed premises, a retailer's licensee may be designated by
663	663	12 the State Commission as (i) an on premise consumption
664	664	13 retailer, (ii) an off premise sale retailer, or (iii) a
665	665	14 combined on premise consumption and off premise sale retailer.
666	666	15 Except for a municipality with a population of more than
667	667	16 1,000,000 inhabitants, a home rule unit may not regulate the
668	668	17 delivery of alcoholic liquor inconsistent with this
669	669	18 subsection. This paragraph is a limitation under subsection
670	670	19 (i) of Section 6 of Article VII of the Illinois Constitution on
671	671	20 the concurrent exercise by home rule units of powers and
672	672	21 functions exercised by the State.
673	673	22 Notwithstanding any other provision of this subsection
674	674	23 (d), a retail licensee may sell alcoholic liquors to a special
675	675	24 event retailer licensee for resale to the extent permitted
676	676	25 under subsection (e).
677	677	26 (e) A special event retailer's license (not-for-profit)
678	678
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680	680
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684	684
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688	688	1 shall permit the licensee to purchase alcoholic liquors from
689	689	2 an Illinois licensed distributor (unless the licensee
690	690	3 purchases less than $500 of alcoholic liquors for the special
691	691	4 event, in which case the licensee may purchase the alcoholic
692	692	5 liquors from a licensed retailer) and shall allow the licensee
693	693	6 to sell and offer for sale, at retail, alcoholic liquors for
694	694	7 consumption on or off the premises specified in the license
695	695	8 use or consumption, but not for resale in any form and only at
696	696	9 the location and on the specific dates designated for the
697	697	10 special event in the license. An applicant for a special event
698	698	11 retailer license must (i) furnish with the application: (A) a
699	699	12 resale number issued under Section 2c of the Retailers'
700	700	13 Occupation Tax Act or evidence that the applicant is
701	701	14 registered under Section 2a of the Retailers' Occupation Tax
702	702	15 Act, (B) a current, valid exemption identification number
703	703	16 issued under Section 1g of the Retailers' Occupation Tax Act,
704	704	17 and a certification to the Commission that the purchase of
705	705	18 alcoholic liquors will be a tax-exempt purchase, or (C) a
706	706	19 statement that the applicant is not registered under Section
707	707	20 2a of the Retailers' Occupation Tax Act, does not hold a resale
708	708	21 number under Section 2c of the Retailers' Occupation Tax Act,
709	709	22 and does not hold an exemption number under Section 1g of the
710	710	23 Retailers' Occupation Tax Act, in which event the Commission
711	711	24 shall set forth on the special event retailer's license a
712	712	25 statement to that effect; (ii) submit with the application
713	713	26 proof satisfactory to the State Commission that the applicant
714	714
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724	724	1 will provide dram shop liability insurance in the maximum
725	725	2 limits; and (iii) show proof satisfactory to the State
726	726	3 Commission that the applicant has obtained local authority
727	727	4 approval.
728	728	5 Nothing in this Act prohibits an Illinois licensed
729	729	6 distributor from offering credit or a refund for unused,
730	730	7 salable alcoholic liquors to a holder of a special event
731	731	8 retailer's license or the special event retailer's licensee
732	732	9 from accepting the credit or refund of alcoholic liquors at
733	733	10 the conclusion of the event specified in the license.
734	734	11 (f) A railroad license shall permit the licensee to import
735	735	12 alcoholic liquors into this State from any point in the United
736	736	13 States outside this State and to store such alcoholic liquors
737	737	14 in this State; to make wholesale purchases of alcoholic
738	738	15 liquors directly from manufacturers, foreign importers,
739	739	16 distributors and importing distributors from within or outside
740	740	17 this State; and to store such alcoholic liquors in this State;
741	741	18 provided that the above powers may be exercised only in
742	742	19 connection with the importation, purchase or storage of
743	743	20 alcoholic liquors to be sold or dispensed on a club, buffet,
744	744	21 lounge or dining car operated on an electric, gas or steam
745	745	22 railway in this State; and provided further, that railroad
746	746	23 licensees exercising the above powers shall be subject to all
747	747	24 provisions of Article VIII of this Act as applied to importing
748	748	25 distributors. A railroad license shall also permit the
749	749	26 licensee to sell or dispense alcoholic liquors on any club,
750	750
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760	760	1 buffet, lounge or dining car operated on an electric, gas or
761	761	2 steam railway regularly operated by a common carrier in this
762	762	3 State, but shall not permit the sale for resale of any
763	763	4 alcoholic liquors to any licensee within this State. A license
764	764	5 shall be obtained for each car in which such sales are made.
765	765	6 (g) A boat license shall allow the sale of alcoholic
766	766	7 liquor in individual drinks, on any passenger boat regularly
767	767	8 operated as a common carrier on navigable waters in this State
768	768	9 or on any riverboat operated under the Illinois Gambling Act,
769	769	10 which boat or riverboat maintains a public dining room or
770	770	11 restaurant thereon.
771	771	12 (h) A non-beverage user's license shall allow the licensee
772	772	13 to purchase alcoholic liquor from a licensed manufacturer or
773	773	14 importing distributor, without the imposition of any tax upon
774	774	15 the business of such licensed manufacturer or importing
775	775	16 distributor as to such alcoholic liquor to be used by such
776	776	17 licensee solely for the non-beverage purposes set forth in
777	777	18 subsection (a) of Section 8-1 of this Act, and such licenses
778	778	19 shall be divided and classified and shall permit the purchase,
779	779	20 possession and use of limited and stated quantities of
780	780	21 alcoholic liquor as follows:
781	781	22 Class 1, not to exceed ......................... 500 gallons
782	782	23 Class 2, not to exceed ....................... 1,000 gallons
783	783	24 Class 3, not to exceed ....................... 5,000 gallons
784	784	25 Class 4, not to exceed ...................... 10,000 gallons
785	785	26 Class 5, not to exceed ....................... 50,000 gallons
786	786
787	787
788	788
789	789
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796	796	1 (i) A wine-maker's premises license shall allow a licensee
797	797	2 that concurrently holds a first-class wine-maker's license to
798	798	3 sell and offer for sale at retail in the premises specified in
799	799	4 such license not more than 50,000 gallons of the first-class
800	800	5 wine-maker's wine that is made at the first-class wine-maker's
801	801	6 licensed premises per year for use or consumption, but not for
802	802	7 resale in any form. A wine-maker's premises license shall
803	803	8 allow a licensee who concurrently holds a second-class
804	804	9 wine-maker's license to sell and offer for sale at retail in
805	805	10 the premises specified in such license up to 100,000 gallons
806	806	11 of the second-class wine-maker's wine that is made at the
807	807	12 second-class wine-maker's licensed premises per year for use
808	808	13 or consumption but not for resale in any form. A first-class
809	809	14 wine-maker that concurrently holds a class 1 brewer license or
810	810	15 a class 1 craft distiller license shall not be eligible to hold
811	811	16 a wine-maker's premises license. A wine-maker's premises
812	812	17 license shall allow a licensee that concurrently holds a
813	813	18 first-class wine-maker's license or a second-class
814	814	19 wine-maker's license to sell and offer for sale at retail at
815	815	20 the premises specified in the wine-maker's premises license,
816	816	21 for use or consumption but not for resale in any form, any
817	817	22 beer, wine, and spirits purchased from a licensed distributor.
818	818	23 Upon approval from the State Commission, a wine-maker's
819	819	24 premises license shall allow the licensee to sell and offer
820	820	25 for sale at (i) the wine-maker's licensed premises and (ii) at
821	821	26 up to 2 additional locations for use and consumption and not
822	822
823	823
824	824
825	825
826	826
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828	828
829	829
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832	832	1 for resale. Each location shall require additional licensing
833	833	2 per location as specified in Section 5-3 of this Act. A
834	834	3 wine-maker's premises licensee shall secure liquor liability
835	835	4 insurance coverage in an amount at least equal to the maximum
836	836	5 liability amounts set forth in subsection (a) of Section 6-21
837	837	6 of this Act.
838	838	7 (j) An airplane license shall permit the licensee to
839	839	8 import alcoholic liquors into this State from any point in the
840	840	9 United States outside this State and to store such alcoholic
841	841	10 liquors in this State; to make wholesale purchases of
842	842	11 alcoholic liquors directly from manufacturers, foreign
843	843	12 importers, distributors and importing distributors from within
844	844	13 or outside this State; and to store such alcoholic liquors in
845	845	14 this State; provided that the above powers may be exercised
846	846	15 only in connection with the importation, purchase or storage
847	847	16 of alcoholic liquors to be sold or dispensed on an airplane;
848	848	17 and provided further, that airplane licensees exercising the
849	849	18 above powers shall be subject to all provisions of Article
850	850	19 VIII of this Act as applied to importing distributors. An
851	851	20 airplane licensee shall also permit the sale or dispensing of
852	852	21 alcoholic liquors on any passenger airplane regularly operated
853	853	22 by a common carrier in this State, but shall not permit the
854	854	23 sale for resale of any alcoholic liquors to any licensee
855	855	24 within this State. A single airplane license shall be required
856	856	25 of an airline company if liquor service is provided on board
857	857	26 aircraft in this State. The annual fee for such license shall
858	858
859	859
860	860
861	861
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868	868	1 be as determined in Section 5-3.
869	869	2 (k) A foreign importer's license shall permit such
870	870	3 licensee to purchase alcoholic liquor from Illinois licensed
871	871	4 non-resident dealers only, and to import alcoholic liquor
872	872	5 other than in bulk from any point outside the United States and
873	873	6 to sell such alcoholic liquor to Illinois licensed importing
874	874	7 distributors and to no one else in Illinois; provided that (i)
875	875	8 the foreign importer registers with the State Commission every
876	876	9 brand of alcoholic liquor that it proposes to sell to Illinois
877	877	10 licensees during the license period, (ii) the foreign importer
878	878	11 complies with all of the provisions of Section 6-9 of this Act
879	879	12 with respect to registration of such Illinois licensees as may
880	880	13 be granted the right to sell such brands at wholesale, and
881	881	14 (iii) the foreign importer complies with the provisions of
882	882	15 Sections 6-5 and 6-6 of this Act to the same extent that these
883	883	16 provisions apply to manufacturers.
884	884	17 (l) (i) A broker's license shall be required of all
885	885	18 persons who solicit orders for, offer to sell or offer to
886	886	19 supply alcoholic liquor to retailers in the State of Illinois,
887	887	20 or who offer to retailers to ship or cause to be shipped or to
888	888	21 make contact with distillers, craft distillers, rectifiers,
889	889	22 brewers or manufacturers or any other party within or without
890	890	23 the State of Illinois in order that alcoholic liquors be
891	891	24 shipped to a distributor, importing distributor or foreign
892	892	25 importer, whether such solicitation or offer is consummated
893	893	26 within or without the State of Illinois.
894	894
895	895
896	896
897	897
898	898
899	899	HB3423 - 24 - LRB103 30931 RPS 57479 b
900	900
901	901
902	902	HB3423- 25 -LRB103 30931 RPS 57479 b HB3423 - 25 - LRB103 30931 RPS 57479 b
903	903	HB3423 - 25 - LRB103 30931 RPS 57479 b
904	904	1 No holder of a retailer's license issued by the Illinois
905	905	2 Liquor Control Commission shall purchase or receive any
906	906	3 alcoholic liquor, the order for which was solicited or offered
907	907	4 for sale to such retailer by a broker unless the broker is the
908	908	5 holder of a valid broker's license.
909	909	6 The broker shall, upon the acceptance by a retailer of the
910	910	7 broker's solicitation of an order or offer to sell or supply or
911	911	8 deliver or have delivered alcoholic liquors, promptly forward
912	912	9 to the Illinois Liquor Control Commission a notification of
913	913	10 said transaction in such form as the Commission may by
914	914	11 regulations prescribe.
915	915	12 (ii) A broker's license shall be required of a person
916	916	13 within this State, other than a retail licensee, who, for a fee
917	917	14 or commission, promotes, solicits, or accepts orders for
918	918	15 alcoholic liquor, for use or consumption and not for resale,
919	919	16 to be shipped from this State and delivered to residents
920	920	17 outside of this State by an express company, common carrier,
921	921	18 or contract carrier. This Section does not apply to any person
922	922	19 who promotes, solicits, or accepts orders for wine as
923	923	20 specifically authorized in Section 6-29 of this Act.
924	924	21 A broker's license under this subsection (l) shall not
925	925	22 entitle the holder to buy or sell any alcoholic liquors for his
926	926	23 own account or to take or deliver title to such alcoholic
927	927	24 liquors.
928	928	25 This subsection (l) shall not apply to distributors,
929	929	26 employees of distributors, or employees of a manufacturer who
930	930
931	931
932	932
933	933
934	934
935	935	HB3423 - 25 - LRB103 30931 RPS 57479 b
936	936
937	937
938	938	HB3423- 26 -LRB103 30931 RPS 57479 b HB3423 - 26 - LRB103 30931 RPS 57479 b
939	939	HB3423 - 26 - LRB103 30931 RPS 57479 b
940	940	1 has registered the trademark, brand or name of the alcoholic
941	941	2 liquor pursuant to Section 6-9 of this Act, and who regularly
942	942	3 sells such alcoholic liquor in the State of Illinois only to
943	943	4 its registrants thereunder.
944	944	5 Any agent, representative, or person subject to
945	945	6 registration pursuant to subsection (a-1) of this Section
946	946	7 shall not be eligible to receive a broker's license.
947	947	8 (m) A non-resident dealer's license shall permit such
948	948	9 licensee to ship into and warehouse alcoholic liquor into this
949	949	10 State from any point outside of this State, and to sell such
950	950	11 alcoholic liquor to Illinois licensed foreign importers and
951	951	12 importing distributors and to no one else in this State;
952	952	13 provided that (i) said non-resident dealer shall register with
953	953	14 the Illinois Liquor Control Commission each and every brand of
954	954	15 alcoholic liquor which it proposes to sell to Illinois
955	955	16 licensees during the license period, (ii) it shall comply with
956	956	17 all of the provisions of Section 6-9 hereof with respect to
957	957	18 registration of such Illinois licensees as may be granted the
958	958	19 right to sell such brands at wholesale by duly filing such
959	959	20 registration statement, thereby authorizing the non-resident
960	960	21 dealer to proceed to sell such brands at wholesale, and (iii)
961	961	22 the non-resident dealer shall comply with the provisions of
962	962	23 Sections 6-5 and 6-6 of this Act to the same extent that these
963	963	24 provisions apply to manufacturers. No person licensed as a
964	964	25 non-resident dealer shall be granted a distributor's or
965	965	26 importing distributor's license.
966	966
967	967
968	968
969	969
970	970
971	971	HB3423 - 26 - LRB103 30931 RPS 57479 b
972	972
973	973
974	974	HB3423- 27 -LRB103 30931 RPS 57479 b HB3423 - 27 - LRB103 30931 RPS 57479 b
975	975	HB3423 - 27 - LRB103 30931 RPS 57479 b
976	976	1 (n) A brew pub license shall allow the licensee to only (i)
977	977	2 manufacture up to 155,000 gallons of beer per year only on the
978	978	3 premises specified in the license, (ii) make sales of the beer
979	979	4 manufactured on the premises or, with the approval of the
980	980	5 Commission, beer manufactured on another brew pub licensed
981	981	6 premises that is wholly owned and operated by the same
982	982	7 licensee to importing distributors, distributors, and to
983	983	8 non-licensees for use and consumption, (iii) store the beer
984	984	9 upon the premises, (iv) sell and offer for sale at retail from
985	985	10 the licensed premises for off-premises consumption no more
986	986	11 than 155,000 gallons per year so long as such sales are only
987	987	12 made in-person, (v) sell and offer for sale at retail for use
988	988	13 and consumption on the premises specified in the license any
989	989	14 form of alcoholic liquor purchased from a licensed distributor
990	990	15 or importing distributor, (vi) with the prior approval of the
991	991	16 Commission, annually transfer no more than 155,000 gallons of
992	992	17 beer manufactured on the premises to a licensed brew pub
993	993	18 wholly owned and operated by the same licensee, and (vii)
994	994	19 notwithstanding item (i) of this subsection, brew pubs wholly
995	995	20 owned and operated by the same licensee may combine each
996	996	21 location's production limit of 155,000 gallons of beer per
997	997	22 year and allocate the aggregate total between the wholly
998	998	23 owned, operated, and licensed locations.
999	999	24 A brew pub licensee shall not under any circumstance sell
1000	1000	25 or offer for sale beer manufactured by the brew pub licensee to
1001	1001	26 retail licensees.
1002	1002
1003	1003
1004	1004
1005	1005
1006	1006
1007	1007	HB3423 - 27 - LRB103 30931 RPS 57479 b
1008	1008
1009	1009
1010	1010	HB3423- 28 -LRB103 30931 RPS 57479 b HB3423 - 28 - LRB103 30931 RPS 57479 b
1011	1011	HB3423 - 28 - LRB103 30931 RPS 57479 b
1012	1012	1 A person who holds a class 2 brewer license may
1013	1013	2 simultaneously hold a brew pub license if the class 2 brewer
1014	1014	3 (i) does not, under any circumstance, sell or offer for sale
1015	1015	4 beer manufactured by the class 2 brewer to retail licensees;
1016	1016	5 (ii) does not hold more than 3 brew pub licenses in this State;
1017	1017	6 (iii) does not manufacture more than a combined 3,720,000
1018	1018	7 gallons of beer per year, including the beer manufactured at
1019	1019	8 the brew pub; and (iv) is not a member of or affiliated with,
1020	1020	9 directly or indirectly, a manufacturer that produces more than
1021	1021	10 3,720,000 gallons of beer per year or any other alcoholic
1022	1022	11 liquor.
1023	1023	12 Notwithstanding any other provision of this Act, a
1024	1024	13 licensed brewer, class 2 brewer, or non-resident dealer who
1025	1025	14 before July 1, 2015 manufactured less than 3,720,000 gallons
1026	1026	15 of beer per year and held a brew pub license on or before July
1027	1027	16 1, 2015 may (i) continue to qualify for and hold that brew pub
1028	1028	17 license for the licensed premises and (ii) manufacture more
1029	1029	18 than 3,720,000 gallons of beer per year and continue to
1030	1030	19 qualify for and hold that brew pub license if that brewer,
1031	1031	20 class 2 brewer, or non-resident dealer does not simultaneously
1032	1032	21 hold a class 1 brewer license and is not a member of or
1033	1033	22 affiliated with, directly or indirectly, a manufacturer that
1034	1034	23 produces more than 3,720,000 gallons of beer per year or that
1035	1035	24 produces any other alcoholic liquor.
1036	1036	25 A brew pub licensee may apply for a class 3 brewer license
1037	1037	26 and, upon: (i) meeting all applicable qualifications of this
1038	1038
1039	1039
1040	1040
1041	1041
1042	1042
1043	1043	HB3423 - 28 - LRB103 30931 RPS 57479 b
1044	1044
1045	1045
1046	1046	HB3423- 29 -LRB103 30931 RPS 57479 b HB3423 - 29 - LRB103 30931 RPS 57479 b
1047	1047	HB3423 - 29 - LRB103 30931 RPS 57479 b
1048	1048	1 Act, and relinquishing all commonly owned brew pub or retail
1049	1049	2 licenses, shall be issued a class 3 brewer license. Nothing in
1050	1050	3 this Act shall prohibit the issuance of a class 3 brewer
1051	1051	4 license if the applicant:
1052	1052	5 (1) has a valid retail license on or before May 1,
1053	1053	6 2021;
1054	1054	7 (2) has an ownership interest in at least two brew
1055	1055	8 pubs licenses on or before May 1, 2021;
1056	1056	9 (3) the brew pub licensee applies for a class 3 brewer
1057	1057	10 license on or before October 1, 2022 and relinquishes all
1058	1058	11 commonly owned brew pub licenses; and
1059	1059	12 (4) relinquishes all commonly owned retail licenses on
1060	1060	13 or before December 31, 2022.
1061	1061	14 If a brew pub licensee is issued a class 3 brewer license,
1062	1062	15 the class 3 brewer license shall expire on the same date as the
1063	1063	16 existing brew pub license and the State Commission shall not
1064	1064	17 require a class 3 brewer licensee to obtain a brewer license,
1065	1065	18 or in the alternative to pay a fee for a brewer license, until
1066	1066	19 the date the brew pub license of the applicant would have
1067	1067	20 expired.
1068	1068	21 (o) A caterer retailer license shall allow the holder to
1069	1069	22 serve alcoholic liquors as an incidental part of a food
1070	1070	23 service that serves prepared meals which excludes the serving
1071	1071	24 of snacks as the primary meal, either on or off-site whether
1072	1072	25 licensed or unlicensed. A caterer retailer license shall allow
1073	1073	26 the holder, a distributor, or an importing distributor to
1074	1074
1075	1075
1076	1076
1077	1077
1078	1078
1079	1079	HB3423 - 29 - LRB103 30931 RPS 57479 b
1080	1080
1081	1081
1082	1082	HB3423- 30 -LRB103 30931 RPS 57479 b HB3423 - 30 - LRB103 30931 RPS 57479 b
1083	1083	HB3423 - 30 - LRB103 30931 RPS 57479 b
1084	1084	1 transfer any inventory to and from the holder's retail
1085	1085	2 premises and shall allow the holder to purchase alcoholic
1086	1086	3 liquor from a distributor or importing distributor to be
1087	1087	4 delivered directly to an off-site event.
1088	1088	5 Nothing in this Act prohibits a distributor or importing
1089	1089	6 distributor from offering credit or a refund for unused,
1090	1090	7 salable beer to a holder of a caterer retailer license or a
1091	1091	8 caterer retailer licensee from accepting a credit or refund
1092	1092	9 for unused, salable beer, in the event an act of God is the
1093	1093	10 sole reason an off-site event is cancelled and if: (i) the
1094	1094	11 holder of a caterer retailer license has not transferred
1095	1095	12 alcoholic liquor from its caterer retailer premises to an
1096	1096	13 off-site location; (ii) the distributor or importing
1097	1097	14 distributor offers the credit or refund for the unused,
1098	1098	15 salable beer that it delivered to the off-site premises and
1099	1099	16 not for any unused, salable beer that the distributor or
1100	1100	17 importing distributor delivered to the caterer retailer's
1101	1101	18 premises; and (iii) the unused, salable beer would likely
1102	1102	19 spoil if transferred to the caterer retailer's premises. A
1103	1103	20 caterer retailer license shall allow the holder to transfer
1104	1104	21 any inventory from any off-site location to its caterer
1105	1105	22 retailer premises at the conclusion of an off-site event or
1106	1106	23 engage a distributor or importing distributor to transfer any
1107	1107	24 inventory from any off-site location to its caterer retailer
1108	1108	25 premises at the conclusion of an off-site event, provided that
1109	1109	26 the distributor or importing distributor issues bona fide
1110	1110
1111	1111
1112	1112
1113	1113
1114	1114
1115	1115	HB3423 - 30 - LRB103 30931 RPS 57479 b
1116	1116
1117	1117
1118	1118	HB3423- 31 -LRB103 30931 RPS 57479 b HB3423 - 31 - LRB103 30931 RPS 57479 b
1119	1119	HB3423 - 31 - LRB103 30931 RPS 57479 b
1120	1120	1 charges to the caterer retailer licensee for fuel, labor, and
1121	1121	2 delivery and the distributor or importing distributor collects
1122	1122	3 payment from the caterer retailer licensee prior to the
1123	1123	4 distributor or importing distributor transferring inventory to
1124	1124	5 the caterer retailer premises.
1125	1125	6 For purposes of this subsection (o), an "act of God" means
1126	1126	7 an unforeseeable event, such as a rain or snow storm, hail, a
1127	1127	8 flood, or a similar event, that is the sole cause of the
1128	1128	9 cancellation of an off-site, outdoor event.
1129	1129	10 (p) An auction liquor license shall allow the licensee to
1130	1130	11 sell and offer for sale at auction wine and spirits for use or
1131	1131	12 consumption, or for resale by an Illinois liquor licensee in
1132	1132	13 accordance with provisions of this Act. An auction liquor
1133	1133	14 license will be issued to a person and it will permit the
1134	1134	15 auction liquor licensee to hold the auction anywhere in the
1135	1135	16 State. An auction liquor license must be obtained for each
1136	1136	17 auction at least 14 days in advance of the auction date.
1137	1137	18 (q) A special use permit license shall allow an Illinois
1138	1138	19 licensed retailer to transfer a portion of its alcoholic
1139	1139	20 liquor inventory from its retail licensed premises to the
1140	1140	21 premises specified in the license hereby created; to purchase
1141	1141	22 alcoholic liquor from a distributor or importing distributor
1142	1142	23 to be delivered directly to the location specified in the
1143	1143	24 license hereby created; and to sell or offer for sale at
1144	1144	25 retail, only in the premises specified in the license hereby
1145	1145	26 created, the transferred or delivered alcoholic liquor for
1146	1146
1147	1147
1148	1148
1149	1149
1150	1150
1151	1151	HB3423 - 31 - LRB103 30931 RPS 57479 b
1152	1152
1153	1153
1154	1154	HB3423- 32 -LRB103 30931 RPS 57479 b HB3423 - 32 - LRB103 30931 RPS 57479 b
1155	1155	HB3423 - 32 - LRB103 30931 RPS 57479 b
1156	1156	1 consumption on or off the premises specified in the license
1157	1157	2 use or consumption, but not for resale in any form. A special
1158	1158	3 use permit license may be granted for the following time
1159	1159	4 periods: one day or less; 2 or more days to a maximum of 15
1160	1160	5 days per location in any 12-month period. An applicant for the
1161	1161	6 special use permit license must also submit with the
1162	1162	7 application proof satisfactory to the State Commission that
1163	1163	8 the applicant will provide dram shop liability insurance to
1164	1164	9 the maximum limits and have local authority approval.
1165	1165	10 A special use permit license shall allow the holder to
1166	1166	11 transfer any inventory from the holder's special use premises
1167	1167	12 to its retail premises at the conclusion of the special use
1168	1168	13 event or engage a distributor or importing distributor to
1169	1169	14 transfer any inventory from the holder's special use premises
1170	1170	15 to its retail premises at the conclusion of an off-site event,
1171	1171	16 provided that the distributor or importing distributor issues
1172	1172	17 bona fide charges to the special use permit licensee for fuel,
1173	1173	18 labor, and delivery and the distributor or importing
1174	1174	19 distributor collects payment from the retail licensee prior to
1175	1175	20 the distributor or importing distributor transferring
1176	1176	21 inventory to the retail premises.
1177	1177	22 Nothing in this Act prohibits a distributor or importing
1178	1178	23 distributor from offering credit or a refund for unused,
1179	1179	24 salable beer to a special use permit licensee or a special use
1180	1180	25 permit licensee from accepting a credit or refund for unused,
1181	1181	26 salable beer at the conclusion of the event specified in the
1182	1182
1183	1183
1184	1184
1185	1185
1186	1186
1187	1187	HB3423 - 32 - LRB103 30931 RPS 57479 b
1188	1188
1189	1189
1190	1190	HB3423- 33 -LRB103 30931 RPS 57479 b HB3423 - 33 - LRB103 30931 RPS 57479 b
1191	1191	HB3423 - 33 - LRB103 30931 RPS 57479 b
1192	1192	1 license if: (i) the holder of the special use permit license
1193	1193	2 has not transferred alcoholic liquor from its retail licensed
1194	1194	3 premises to the premises specified in the special use permit
1195	1195	4 license; (ii) the distributor or importing distributor offers
1196	1196	5 the credit or refund for the unused, salable beer that it
1197	1197	6 delivered to the premises specified in the special use permit
1198	1198	7 license and not for any unused, salable beer that the
1199	1199	8 distributor or importing distributor delivered to the
1200	1200	9 retailer's premises; and (iii) the unused, salable beer would
1201	1201	10 likely spoil if transferred to the retailer premises.
1202	1202	11 (r) A winery shipper's license shall allow a person with a
1203	1203	12 first-class or second-class wine manufacturer's license, a
1204	1204	13 first-class or second-class wine-maker's license, or a limited
1205	1205	14 wine manufacturer's license or who is licensed to make wine
1206	1206	15 under the laws of another state to ship wine made by that
1207	1207	16 licensee directly to a resident of this State who is 21 years
1208	1208	17 of age or older for that resident's personal use and not for
1209	1209	18 resale. Prior to receiving a winery shipper's license, an
1210	1210	19 applicant for the license must provide the Commission with a
1211	1211	20 true copy of its current license in any state in which it is
1212	1212	21 licensed as a manufacturer of wine. An applicant for a winery
1213	1213	22 shipper's license must also complete an application form that
1214	1214	23 provides any other information the Commission deems necessary.
1215	1215	24 The application form shall include all addresses from which
1216	1216	25 the applicant for a winery shipper's license intends to ship
1217	1217	26 wine, including the name and address of any third party,
1218	1218
1219	1219
1220	1220
1221	1221
1222	1222
1223	1223	HB3423 - 33 - LRB103 30931 RPS 57479 b
1224	1224
1225	1225
1226	1226	HB3423- 34 -LRB103 30931 RPS 57479 b HB3423 - 34 - LRB103 30931 RPS 57479 b
1227	1227	HB3423 - 34 - LRB103 30931 RPS 57479 b
1228	1228	1 except for a common carrier, authorized to ship wine on behalf
1229	1229	2 of the manufacturer. The application form shall include an
1230	1230	3 acknowledgement consenting to the jurisdiction of the
1231	1231	4 Commission, the Illinois Department of Revenue, and the courts
1232	1232	5 of this State concerning the enforcement of this Act and any
1233	1233	6 related laws, rules, and regulations, including authorizing
1234	1234	7 the Department of Revenue and the Commission to conduct audits
1235	1235	8 for the purpose of ensuring compliance with Public Act 95-634,
1236	1236	9 and an acknowledgement that the wine manufacturer is in
1237	1237	10 compliance with Section 6-2 of this Act. Any third party,
1238	1238	11 except for a common carrier, authorized to ship wine on behalf
1239	1239	12 of a first-class or second-class wine manufacturer's licensee,
1240	1240	13 a first-class or second-class wine-maker's licensee, a limited
1241	1241	14 wine manufacturer's licensee, or a person who is licensed to
1242	1242	15 make wine under the laws of another state shall also be
1243	1243	16 disclosed by the winery shipper's licensee, and a copy of the
1244	1244	17 written appointment of the third-party wine provider, except
1245	1245	18 for a common carrier, to the wine manufacturer shall be filed
1246	1246	19 with the State Commission as a supplement to the winery
1247	1247	20 shipper's license application or any renewal thereof. The
1248	1248	21 winery shipper's license holder shall affirm under penalty of
1249	1249	22 perjury, as part of the winery shipper's license application
1250	1250	23 or renewal, that he or she only ships wine, either directly or
1251	1251	24 indirectly through a third-party provider, from the licensee's
1252	1252	25 own production.
1253	1253	26 Except for a common carrier, a third-party provider
1254	1254
1255	1255
1256	1256
1257	1257
1258	1258
1259	1259	HB3423 - 34 - LRB103 30931 RPS 57479 b
1260	1260
1261	1261
1262	1262	HB3423- 35 -LRB103 30931 RPS 57479 b HB3423 - 35 - LRB103 30931 RPS 57479 b
1263	1263	HB3423 - 35 - LRB103 30931 RPS 57479 b
1264	1264	1 shipping wine on behalf of a winery shipper's license holder
1265	1265	2 is the agent of the winery shipper's license holder and, as
1266	1266	3 such, a winery shipper's license holder is responsible for the
1267	1267	4 acts and omissions of the third-party provider acting on
1268	1268	5 behalf of the license holder. A third-party provider, except
1269	1269	6 for a common carrier, that engages in shipping wine into
1270	1270	7 Illinois on behalf of a winery shipper's license holder shall
1271	1271	8 consent to the jurisdiction of the State Commission and the
1272	1272	9 State. Any third-party, except for a common carrier, holding
1273	1273	10 such an appointment shall, by February 1 of each calendar year
1274	1274	11 and upon request by the State Commission or the Department of
1275	1275	12 Revenue, file with the State Commission a statement detailing
1276	1276	13 each shipment made to an Illinois resident. The statement
1277	1277	14 shall include the name and address of the third-party provider
1278	1278	15 filing the statement, the time period covered by the
1279	1279	16 statement, and the following information:
1280	1280	17 (1) the name, address, and license number of the
1281	1281	18 winery shipper on whose behalf the shipment was made;
1282	1282	19 (2) the quantity of the products delivered; and
1283	1283	20 (3) the date and address of the shipment.
1284	1284	21 If the Department of Revenue or the State Commission requests
1285	1285	22 a statement under this paragraph, the third-party provider
1286	1286	23 must provide that statement no later than 30 days after the
1287	1287	24 request is made. Any books, records, supporting papers, and
1288	1288	25 documents containing information and data relating to a
1289	1289	26 statement under this paragraph shall be kept and preserved for
1290	1290
1291	1291
1292	1292
1293	1293
1294	1294
1295	1295	HB3423 - 35 - LRB103 30931 RPS 57479 b
1296	1296
1297	1297
1298	1298	HB3423- 36 -LRB103 30931 RPS 57479 b HB3423 - 36 - LRB103 30931 RPS 57479 b
1299	1299	HB3423 - 36 - LRB103 30931 RPS 57479 b
1300	1300	1 a period of 3 years, unless their destruction sooner is
1301	1301	2 authorized, in writing, by the Director of Revenue, and shall
1302	1302	3 be open and available to inspection by the Director of Revenue
1303	1303	4 or the State Commission or any duly authorized officer, agent,
1304	1304	5 or employee of the State Commission or the Department of
1305	1305	6 Revenue, at all times during business hours of the day. Any
1306	1306	7 person who violates any provision of this paragraph or any
1307	1307	8 rule of the State Commission for the administration and
1308	1308	9 enforcement of the provisions of this paragraph is guilty of a
1309	1309	10 Class C misdemeanor. In case of a continuing violation, each
1310	1310	11 day's continuance thereof shall be a separate and distinct
1311	1311	12 offense.
1312	1312	13 The State Commission shall adopt rules as soon as
1313	1313	14 practicable to implement the requirements of Public Act 99-904
1314	1314	15 and shall adopt rules prohibiting any such third-party
1315	1315	16 appointment of a third-party provider, except for a common
1316	1316	17 carrier, that has been deemed by the State Commission to have
1317	1317	18 violated the provisions of this Act with regard to any winery
1318	1318	19 shipper licensee.
1319	1319	20 A winery shipper licensee must pay to the Department of
1320	1320	21 Revenue the State liquor gallonage tax under Section 8-1 for
1321	1321	22 all wine that is sold by the licensee and shipped to a person
1322	1322	23 in this State. For the purposes of Section 8-1, a winery
1323	1323	24 shipper licensee shall be taxed in the same manner as a
1324	1324	25 manufacturer of wine. A licensee who is not otherwise required
1325	1325	26 to register under the Retailers' Occupation Tax Act must
1326	1326
1327	1327
1328	1328
1329	1329
1330	1330
1331	1331	HB3423 - 36 - LRB103 30931 RPS 57479 b
1332	1332
1333	1333
1334	1334	HB3423- 37 -LRB103 30931 RPS 57479 b HB3423 - 37 - LRB103 30931 RPS 57479 b
1335	1335	HB3423 - 37 - LRB103 30931 RPS 57479 b
1336	1336	1 register under the Use Tax Act to collect and remit use tax to
1337	1337	2 the Department of Revenue for all gallons of wine that are sold
1338	1338	3 by the licensee and shipped to persons in this State. If a
1339	1339	4 licensee fails to remit the tax imposed under this Act in
1340	1340	5 accordance with the provisions of Article VIII of this Act,
1341	1341	6 the winery shipper's license shall be revoked in accordance
1342	1342	7 with the provisions of Article VII of this Act. If a licensee
1343	1343	8 fails to properly register and remit tax under the Use Tax Act
1344	1344	9 or the Retailers' Occupation Tax Act for all wine that is sold
1345	1345	10 by the winery shipper and shipped to persons in this State, the
1346	1346	11 winery shipper's license shall be revoked in accordance with
1347	1347	12 the provisions of Article VII of this Act.
1348	1348	13 A winery shipper licensee must collect, maintain, and
1349	1349	14 submit to the Commission on a semi-annual basis the total
1350	1350	15 number of cases per resident of wine shipped to residents of
1351	1351	16 this State. A winery shipper licensed under this subsection
1352	1352	17 (r) must comply with the requirements of Section 6-29 of this
1353	1353	18 Act.
1354	1354	19 Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
1355	1355	20 Section 3-12, the State Commission may receive, respond to,
1356	1356	21 and investigate any complaint and impose any of the remedies
1357	1357	22 specified in paragraph (1) of subsection (a) of Section 3-12.
1358	1358	23 As used in this subsection, "third-party provider" means
1359	1359	24 any entity that provides fulfillment house services, including
1360	1360	25 warehousing, packaging, distribution, order processing, or
1361	1361	26 shipment of wine, but not the sale of wine, on behalf of a
1362	1362
1363	1363
1364	1364
1365	1365
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1372	1372	1 licensed winery shipper.
1373	1373	2 (s) A craft distiller tasting permit license shall allow
1374	1374	3 an Illinois licensed class 1 craft distiller or class 2 craft
1375	1375	4 distiller to transfer a portion of its alcoholic liquor
1376	1376	5 inventory from its class 1 craft distiller or class 2 craft
1377	1377	6 distiller licensed premises to the premises specified in the
1378	1378	7 license hereby created and to conduct a sampling, only in the
1379	1379	8 premises specified in the license hereby created, of the
1380	1380	9 transferred alcoholic liquor in accordance with subsection (c)
1381	1381	10 of Section 6-31 of this Act. The transferred alcoholic liquor
1382	1382	11 may not be sold or resold in any form. An applicant for the
1383	1383	12 craft distiller tasting permit license must also submit with
1384	1384	13 the application proof satisfactory to the State Commission
1385	1385	14 that the applicant will provide dram shop liability insurance
1386	1386	15 to the maximum limits and have local authority approval.
1387	1387	16 (t) A brewer warehouse permit may be issued to the holder
1388	1388	17 of a class 1 brewer license or a class 2 brewer license. If the
1389	1389	18 holder of the permit is a class 1 brewer licensee, the brewer
1390	1390	19 warehouse permit shall allow the holder to store or warehouse
1391	1391	20 up to 930,000 gallons of tax-determined beer manufactured by
1392	1392	21 the holder of the permit at the premises specified on the
1393	1393	22 permit. If the holder of the permit is a class 2 brewer
1394	1394	23 licensee, the brewer warehouse permit shall allow the holder
1395	1395	24 to store or warehouse up to 3,720,000 gallons of
1396	1396	25 tax-determined beer manufactured by the holder of the permit
1397	1397	26 at the premises specified on the permit. Sales to
1398	1398
1399	1399
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1408	1408	1 non-licensees are prohibited at the premises specified in the
1409	1409	2 brewer warehouse permit.
1410	1410	3 (u) A distilling pub license shall allow the licensee to
1411	1411	4 only (i) manufacture up to 5,000 gallons of spirits per year
1412	1412	5 only on the premises specified in the license, (ii) make sales
1413	1413	6 of the spirits manufactured on the premises or, with the
1414	1414	7 approval of the State Commission, spirits manufactured on
1415	1415	8 another distilling pub licensed premises that is wholly owned
1416	1416	9 and operated by the same licensee to importing distributors
1417	1417	10 and distributors and to non-licensees for use and consumption,
1418	1418	11 (iii) store the spirits upon the premises, (iv) sell and offer
1419	1419	12 for sale at retail from the licensed premises for off-premises
1420	1420	13 consumption no more than 5,000 gallons per year so long as such
1421	1421	14 sales are only made in-person, (v) sell and offer for sale at
1422	1422	15 retail for use and consumption on the premises specified in
1423	1423	16 the license any form of alcoholic liquor purchased from a
1424	1424	17 licensed distributor or importing distributor, and (vi) with
1425	1425	18 the prior approval of the State Commission, annually transfer
1426	1426	19 no more than 5,000 gallons of spirits manufactured on the
1427	1427	20 premises to a licensed distilling pub wholly owned and
1428	1428	21 operated by the same licensee.
1429	1429	22 A distilling pub licensee shall not under any circumstance
1430	1430	23 sell or offer for sale spirits manufactured by the distilling
1431	1431	24 pub licensee to retail licensees.
1432	1432	25 A person who holds a class 2 craft distiller license may
1433	1433	26 simultaneously hold a distilling pub license if the class 2
1434	1434
1435	1435
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1444	1444	1 craft distiller (i) does not, under any circumstance, sell or
1445	1445	2 offer for sale spirits manufactured by the class 2 craft
1446	1446	3 distiller to retail licensees; (ii) does not hold more than 3
1447	1447	4 distilling pub licenses in this State; (iii) does not
1448	1448	5 manufacture more than a combined 100,000 gallons of spirits
1449	1449	6 per year, including the spirits manufactured at the distilling
1450	1450	7 pub; and (iv) is not a member of or affiliated with, directly
1451	1451	8 or indirectly, a manufacturer that produces more than 100,000
1452	1452	9 gallons of spirits per year or any other alcoholic liquor.
1453	1453	10 (v) A craft distiller warehouse permit may be issued to
1454	1454	11 the holder of a class 1 craft distiller or class 2 craft
1455	1455	12 distiller license. The craft distiller warehouse permit shall
1456	1456	13 allow the holder to store or warehouse up to 500,000 gallons of
1457	1457	14 spirits manufactured by the holder of the permit at the
1458	1458	15 premises specified on the permit. Sales to non-licensees are
1459	1459	16 prohibited at the premises specified in the craft distiller
1460	1460	17 warehouse permit.
1461	1461	18 (w) A beer showcase permit license shall allow an
1462	1462	19 Illinois-licensed distributor or beer manufacturer with retail
1463	1463	20 privileges to transfer a portion of its beer inventory from
1464	1464	21 its licensed premises to the premises specified in the beer
1465	1465	22 showcase permit license, and, in the case of a class 1 brewer,
1466	1466	23 class 2 brewer, or class 3 brewer, transfer only beer the class
1467	1467	24 1 brewer, class 2 brewer, or class 3 brewer manufactures from
1468	1468	25 its licensed premises to the premises specified in the beer
1469	1469	26 showcase permit license; and to sell or offer for sale at
1470	1470
1471	1471
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1473	1473
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1476	1476
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1480	1480	1 retail, only in the premises specified in the beer showcase
1481	1481	2 permit license, the transferred or delivered beer for on or
1482	1482	3 off premise consumption, but not for resale in any form and to
1483	1483	4 sell to non-licensees not more than 96 fluid ounces of beer per
1484	1484	5 person. A beer showcase permit license may be granted for the
1485	1485	6 following time periods: one day or less; or 2 or more days to a
1486	1486	7 maximum of 15 days per location in any 12-month period. An
1487	1487	8 applicant for a beer showcase permit license must also submit
1488	1488	9 with the application proof satisfactory to the State
1489	1489	10 Commission that the applicant will provide dram shop liability
1490	1490	11 insurance to the maximum limits and have local authority
1491	1491	12 approval. The State Commission shall require the beer showcase
1492	1492	13 applicant to comply with Section 6-27.1.
1493	1493	14 (Source: P.A. 101-16, eff. 6-14-19; 101-31, eff. 6-28-19;
1494	1494	15 101-81, eff. 7-12-19; 101-482, eff. 8-23-19; 101-517, eff.
1495	1495	16 8-23-19; 101-615, eff. 12-20-19; 101-668, eff. 1-1-22;
1496	1496	17 102-442, eff. 8-20-21; revised 2-28-22.)
1497	1497	18 (235 ILCS 5/6-40 new)
1498	1498	19 Sec. 6-40. Consumer loyalty and reward programs.
1499	1499	20 (a) In this Section, "consumer loyalty and reward program"
1500	1500	21 means any program offered to consumers by a licensed retailer
1501	1501	22 or manufacturer with retail privileges designed to allow a
1502	1502	23 consumer to access rewards for purchases made at the retailer
1503	1503	24 or manufacturer with retail privileges. "Consumer loyalty and
1504	1504	25 reward program" includes, but is not limited to, point
1505	1505
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1515	1515	1 accumulation programs, memberships in retailer clubs or
1516	1516	2 organizations, email lists or other forms of registration by a
1517	1517	3 consumer in a retailer program, or mug clubs.
1518	1518	4 (b) Any retail licensee or licensed manufacturer with
1519	1519	5 retail privileges may offer incentives to consumers for
1520	1520	6 participation in a consumer loyalty and reward program.
1521	1521	7 (c) Any retail licensee or licensed manufacturer with
1522	1522	8 retail privileges may, as part of a consumer loyalty and
1523	1523	9 reward program, offer consumers discounts on its products.
1524	1524	10 (d) Any retail licensee or licensed manufacturer with
1525	1525	11 retail privileges may offer benefits to the members or
1526	1526	12 participants of a consumer loyalty and reward program that are
1527	1527	13 not offered to other consumers.
1528	1528	14 (e) Any retail licensee or licensed manufacturer with
1529	1529	15 retail privileges may offer specialty glassware for sale to
1530	1530	16 members or participants in a consumer loyalty and reward
1531	1531	17 program and offer a price discount to the owner of that
1532	1532	18 glassware for additional purchases using the glassware.
1533	1533	19 (235 ILCS 5/8-10.5)
1534	1534	20 Sec. 8-10.5. Beer production quantity reporting.
1535	1535	21 (a) As used in this Section:
1536	1536	22 "Directly" means that a licensed distributor was not used
1537	1537	23 in the transaction.
1538	1538	24 "Final packaging container" means the last vessel in which
1539	1539	25 beer is held before (i) consumption by an individual on the
1540	1540
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1550	1550	1 brewer's licensed premises; (ii) being placed in a keg,
1551	1551	2 bottle, or can for consumption by an individual; or (iii)
1552	1552	3 being removed for additional fermentation and aging in a cask
1553	1553	4 or barrel.
1554	1554	5 (b) A brewer who is a class 1 brewer, class 2 brewer, class
1555	1555	6 3 brewer, or brew pub licensee shall accurately measure the
1556	1556	7 quantity of beer transferred into its final packaging
1557	1557	8 container to determine the brewer's tax liability by
1558	1558	9 converting beer production into the amount of beer sold and to
1559	1559	10 ensure compliance with any production or self-distribution
1560	1560	11 quantity limitations under this Act applicable to the class 1
1561	1561	12 brewer, class 2 brewer, class 3 brewer, or brew pub. The
1562	1562	13 measurement shall comply with 27 CFR 25.41 and 27 CFR 25.42.
1563	1563	14 Any brewer subject to this Section shall file, on the same date
1564	1564	15 as the brewer files similar reports with the U.S. Department
1565	1565	16 of the Treasury's Tobacco and Alcohol Tax and Trade Bureau,
1566	1566	17 with the Department and State Commission a report of their use
1567	1567	18 of water along with their "Brewer's Report of Operations"
1568	1568	19 filed with the U.S. Department of Treasury's Alcohol and
1569	1569	20 Tobacco Tax and Trade Bureau and shall maintain and produce
1570	1570	21 for examination and inspection by the Department and the State
1571	1571	22 Commission utility bills for water for 3 years along with
1572	1572	23 their "Brewer's Report of Operations" filed with the U.S.
1573	1573	24 Department of Treasury's Alcohol and Tobacco Tax and Trade
1574	1574	25 Bureau. The Department, in cooperation with the State
1575	1575	26 Commission, may audit on an annual basis the amount a class 1
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1586	1586	1 brewer, class 2 brewer, class 3 brewer, or brew pub licensee
1587	1587	2 produces to determine compliance with this Act.
1588	1588	3 (c) A brewer's failure to comply with this Section shall
1589	1589	4 result in the State Commission issuing a fine or suspending or
1590	1590	5 revoking the brewer's license.
1591	1591	6 (Source: P.A. 102-442, eff. 8-20-21.)
1592	1592
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