Illinois 2023-2024 Regular Session

Illinois House Bill HB4775 Latest Draft

Bill / Introduced Version Filed 02/05/2024

                            103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4775 Introduced , by Rep. Will Guzzardi SYNOPSIS AS INTRODUCED: 235 ILCS 5/5-1 from Ch. 43, par. 115235 ILCS 5/6-40 new Amends the Liquor Control Act of 1934. Provides that a special event retailer's license (not-for-profit) or special use permit license 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) if certain conditions are met. Provides that a retail licensee or licensed manufacturer with retail privileges may offer incentives to consumers for participation in a consumer loyalty and reward program, offer consumers discounts on its products as part of a consumer loyalty and reward program, offer benefits to the members or participants of a consumer loyalty and reward program that are not offered to other consumers, or offer specialty glassware for sale to members or participants in a consumer loyalty and reward program, and offer a price discount to the owner of that glassware for additional purchases using the glassware. Defines "consumer loyalty and reward program". LRB103 37577 RPS 67703 b   A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4775 Introduced , by Rep. Will Guzzardi SYNOPSIS AS INTRODUCED:  235 ILCS 5/5-1 from Ch. 43, par. 115235 ILCS 5/6-40 new 235 ILCS 5/5-1 from Ch. 43, par. 115 235 ILCS 5/6-40 new  Amends the Liquor Control Act of 1934. Provides that a special event retailer's license (not-for-profit) or special use permit license 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) if certain conditions are met. Provides that a retail licensee or licensed manufacturer with retail privileges may offer incentives to consumers for participation in a consumer loyalty and reward program, offer consumers discounts on its products as part of a consumer loyalty and reward program, offer benefits to the members or participants of a consumer loyalty and reward program that are not offered to other consumers, or offer specialty glassware for sale to members or participants in a consumer loyalty and reward program, and offer a price discount to the owner of that glassware for additional purchases using the glassware. Defines "consumer loyalty and reward program".  LRB103 37577 RPS 67703 b     LRB103 37577 RPS 67703 b   A BILL FOR
103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4775 Introduced , by Rep. Will Guzzardi SYNOPSIS AS INTRODUCED:
235 ILCS 5/5-1 from Ch. 43, par. 115235 ILCS 5/6-40 new 235 ILCS 5/5-1 from Ch. 43, par. 115 235 ILCS 5/6-40 new
235 ILCS 5/5-1 from Ch. 43, par. 115
235 ILCS 5/6-40 new
Amends the Liquor Control Act of 1934. Provides that a special event retailer's license (not-for-profit) or special use permit license 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) if certain conditions are met. Provides that a retail licensee or licensed manufacturer with retail privileges may offer incentives to consumers for participation in a consumer loyalty and reward program, offer consumers discounts on its products as part of a consumer loyalty and reward program, offer benefits to the members or participants of a consumer loyalty and reward program that are not offered to other consumers, or offer specialty glassware for sale to members or participants in a consumer loyalty and reward program, and offer a price discount to the owner of that glassware for additional purchases using the glassware. Defines "consumer loyalty and reward program".
LRB103 37577 RPS 67703 b     LRB103 37577 RPS 67703 b
    LRB103 37577 RPS 67703 b
A BILL FOR
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  HB4775  LRB103 37577 RPS 67703 b
1  AN ACT concerning liquor.
2  Be it enacted by the People of the State of Illinois,
3  represented in the General Assembly:
4  Section 5. The Liquor Control Act of 1934 is amended by
5  changing Section 5-1 and adding Section 6-40 as follows:
6  (235 ILCS 5/5-1) (from Ch. 43, par. 115)
7  Sec. 5-1. Licenses issued by the Illinois Liquor Control
8  Commission shall be of the following classes:
9  (a) Manufacturer's license - Class 1. Distiller, Class 2.
10  Rectifier, Class 3. Brewer, Class 4. First Class Wine
11  Manufacturer, Class 5. Second Class Wine Manufacturer, Class
12  6. First Class Winemaker, Class 7. Second Class Winemaker,
13  Class 8. Limited Wine Manufacturer, Class 9. Craft Distiller,
14  Class 10. Class 1 Craft Distiller, Class 11. Class 2 Craft
15  Distiller, Class 12. Class 1 Brewer, Class 13. Class 2 Brewer,
16  Class 14. Class 3 Brewer,
17  (b) Distributor's license,
18  (c) Importing Distributor's license,
19  (d) Retailer's license,
20  (e) Special Event Retailer's license (not-for-profit),
21  (f) Railroad license,
22  (g) Boat license,
23  (h) Non-Beverage User's license,

 

103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4775 Introduced , by Rep. Will Guzzardi SYNOPSIS AS INTRODUCED:
235 ILCS 5/5-1 from Ch. 43, par. 115235 ILCS 5/6-40 new 235 ILCS 5/5-1 from Ch. 43, par. 115 235 ILCS 5/6-40 new
235 ILCS 5/5-1 from Ch. 43, par. 115
235 ILCS 5/6-40 new
Amends the Liquor Control Act of 1934. Provides that a special event retailer's license (not-for-profit) or special use permit license 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) if certain conditions are met. Provides that a retail licensee or licensed manufacturer with retail privileges may offer incentives to consumers for participation in a consumer loyalty and reward program, offer consumers discounts on its products as part of a consumer loyalty and reward program, offer benefits to the members or participants of a consumer loyalty and reward program that are not offered to other consumers, or offer specialty glassware for sale to members or participants in a consumer loyalty and reward program, and offer a price discount to the owner of that glassware for additional purchases using the glassware. Defines "consumer loyalty and reward program".
LRB103 37577 RPS 67703 b     LRB103 37577 RPS 67703 b
    LRB103 37577 RPS 67703 b
A BILL FOR

 

 

235 ILCS 5/5-1 from Ch. 43, par. 115
235 ILCS 5/6-40 new



    LRB103 37577 RPS 67703 b

 

 



 

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

 

 

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1  other licensees.
2  Class 2. A Rectifier, who is not a distiller, as defined
3  herein, may make sales and deliveries of alcoholic liquor to
4  rectifiers, importing distributors, distributors, retailers
5  and non-beverage users and to no other licensees.
6  Class 3. A Brewer may make sales and deliveries of beer to
7  importing distributors and distributors and may make sales as
8  authorized under subsection (e) of Section 6-4 of this Act,
9  including any alcoholic liquor that subsection (e) of Section
10  6-4 authorizes a brewer to sell in its original package only to
11  a non-licensee for pick-up by a non-licensee either within the
12  interior of the brewery premises or at outside of the brewery
13  premises at a curb-side or parking lot adjacent to the brewery
14  premises, subject to any local ordinance.
15  Class 4. A first class wine-manufacturer may make sales
16  and deliveries of up to 50,000 gallons of wine to
17  manufacturers, importing distributors and distributors, and to
18  no other licensees. If a first-class wine-manufacturer
19  manufactures beer, it shall also obtain and shall only be
20  eligible for, in addition to any current license, a class 1
21  brewer license, shall not manufacture more than 930,000
22  gallons of beer per year, and shall not be a member of or
23  affiliated with, directly or indirectly, a manufacturer that
24  produces more than 930,000 gallons of beer per year. If the
25  first-class wine-manufacturer manufactures spirits, it shall
26  also obtain and shall only be eligible for, in addition to any

 

 

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1  current license, a class 1 craft distiller license, shall not
2  manufacture more than 50,000 gallons of spirits per year, and
3  shall not be a member of or affiliated with, directly or
4  indirectly, a manufacturer that produces more than 50,000
5  gallons of spirits per year. A first-class wine-manufacturer
6  shall be permitted to sell wine manufactured at the
7  first-class wine-manufacturer premises to non-licensees.
8  Class 5. A second class Wine manufacturer may make sales
9  and deliveries of more than 50,000 gallons of wine to
10  manufacturers, importing distributors and distributors and to
11  no other licensees.
12  Class 6. A first-class wine-maker's license shall allow
13  the manufacture of up to 50,000 gallons of wine per year, and
14  the storage and sale of such wine to distributors in the State
15  and to persons without the State, as may be permitted by law. A
16  person who, prior to June 1, 2008 (the effective date of Public
17  Act 95-634), is a holder of a first-class wine-maker's license
18  and annually produces more than 25,000 gallons of its own wine
19  and who distributes its wine to licensed retailers shall cease
20  this practice on or before July 1, 2008 in compliance with
21  Public Act 95-634. If a first-class wine-maker manufactures
22  beer, it shall also obtain and shall only be eligible for, in
23  addition to any current license, a class 1 brewer license,
24  shall not manufacture more than 930,000 gallons of beer per
25  year, and shall not be a member of or affiliated with, directly
26  or indirectly, a manufacturer that produces more than 930,000

 

 

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1  gallons of beer per year. If the first-class wine-maker
2  manufactures spirits, it shall also obtain and shall only be
3  eligible for, in addition to any current license, a class 1
4  craft distiller license, shall not manufacture more than
5  50,000 gallons of spirits per year, and shall not be a member
6  of or affiliated with, directly or indirectly, a manufacturer
7  that produces more than 50,000 gallons of spirits per year. A
8  first-class wine-maker holding a class 1 brewer license or a
9  class 1 craft distiller license shall not be eligible for a
10  wine-maker's premises license but shall be permitted to sell
11  wine manufactured at the first-class wine-maker premises to
12  non-licensees.
13  Class 7. A second-class wine-maker's license shall allow
14  the manufacture of up to 150,000 gallons of wine per year, and
15  the storage and sale of such wine to distributors in this State
16  and to persons without the State, as may be permitted by law. A
17  person who, prior to June 1, 2008 (the effective date of Public
18  Act 95-634), is a holder of a second-class wine-maker's
19  license and annually produces more than 25,000 gallons of its
20  own wine and who distributes its wine to licensed retailers
21  shall cease this practice on or before July 1, 2008 in
22  compliance with Public Act 95-634. If a second-class
23  wine-maker manufactures beer, it shall also obtain and shall
24  only be eligible for, in addition to any current license, a
25  class 2 brewer license, shall not manufacture more than
26  3,720,000 gallons of beer per year, and shall not be a member

 

 

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1  of or affiliated with, directly or indirectly, a manufacturer
2  that produces more than 3,720,000 gallons of beer per year. If
3  a second-class wine-maker manufactures spirits, it shall also
4  obtain and shall only be eligible for, in addition to any
5  current license, a class 2 craft distiller license, shall not
6  manufacture more than 100,000 gallons of spirits per year, and
7  shall not be a member of or affiliated with, directly or
8  indirectly, a manufacturer that produces more than 100,000
9  gallons of spirits per year.
10  Class 8. A limited wine-manufacturer may make sales and
11  deliveries not to exceed 40,000 gallons of wine per year to
12  distributors, and to non-licensees in accordance with the
13  provisions of this Act.
14  Class 9. A craft distiller license, which may only be held
15  by a class 1 craft distiller licensee or class 2 craft
16  distiller licensee but not held by both a class 1 craft
17  distiller licensee and a class 2 craft distiller licensee,
18  shall grant all rights conveyed by either: (i) a class 1 craft
19  distiller license if the craft distiller holds a class 1 craft
20  distiller license; or (ii) a class 2 craft distiller licensee
21  if the craft distiller holds a class 2 craft distiller
22  license.
23  Class 10. A class 1 craft distiller license, which may
24  only be issued to a licensed craft distiller or licensed
25  non-resident dealer, shall allow the manufacture of up to
26  50,000 gallons of spirits per year provided that the class 1

 

 

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1  craft distiller licensee does not manufacture more than a
2  combined 50,000 gallons of spirits per year and is not a member
3  of or affiliated with, directly or indirectly, a manufacturer
4  that produces more than 50,000 gallons of spirits per year. If
5  a class 1 craft distiller manufactures beer, it shall also
6  obtain and shall only be eligible for, in addition to any
7  current license, a class 1 brewer license, shall not
8  manufacture more than 930,000 gallons of beer per year, and
9  shall not be a member of or affiliated with, directly or
10  indirectly, a manufacturer that produces more than 930,000
11  gallons of beer per year. If a class 1 craft distiller
12  manufactures wine, it shall also obtain and shall only be
13  eligible for, in addition to any current license, a
14  first-class wine-manufacturer license or a first-class
15  wine-maker's license, shall not manufacture more than 50,000
16  gallons of wine per year, and shall not be a member of or
17  affiliated with, directly or indirectly, a manufacturer that
18  produces more than 50,000 gallons of wine per year. A class 1
19  craft distiller licensee may make sales and deliveries to
20  importing distributors and distributors and to retail
21  licensees in accordance with the conditions set forth in
22  paragraph (19) of subsection (a) of Section 3-12 of this Act.
23  However, the aggregate amount of spirits sold to non-licensees
24  and sold or delivered to retail licensees may not exceed 5,000
25  gallons per year.
26  A class 1 craft distiller licensee may sell up to 5,000

 

 

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1  gallons of such spirits to non-licensees to the extent
2  permitted by any exemption approved by the State Commission
3  pursuant to Section 6-4 of this Act. A class 1 craft distiller
4  license holder may store such spirits at a non-contiguous
5  licensed location, but at no time shall a class 1 craft
6  distiller license holder directly or indirectly produce in the
7  aggregate more than 50,000 gallons of spirits per year.
8  A class 1 craft distiller licensee may hold more than one
9  class 1 craft distiller's license. However, a class 1 craft
10  distiller that holds more than one class 1 craft distiller
11  license shall not manufacture, in the aggregate, more than
12  50,000 gallons of spirits by distillation per year and shall
13  not sell, in the aggregate, more than 5,000 gallons of such
14  spirits to non-licensees in accordance with an exemption
15  approved by the State Commission pursuant to Section 6-4 of
16  this Act.
17  Class 11. A class 2 craft distiller license, which may
18  only be issued to a licensed craft distiller or licensed
19  non-resident dealer, shall allow the manufacture of up to
20  100,000 gallons of spirits per year provided that the class 2
21  craft distiller licensee does not manufacture more than a
22  combined 100,000 gallons of spirits per year and is not a
23  member of or affiliated with, directly or indirectly, a
24  manufacturer that produces more than 100,000 gallons of
25  spirits per year. If a class 2 craft distiller manufactures
26  beer, it shall also obtain and shall only be eligible for, in

 

 

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1  addition to any current license, a class 2 brewer license,
2  shall not manufacture more than 3,720,000 gallons of beer per
3  year, and shall not be a member of or affiliated with, directly
4  or indirectly, a manufacturer that produces more than
5  3,720,000 gallons of beer per year. If a class 2 craft
6  distiller manufactures wine, it shall also obtain and shall
7  only be eligible for, in addition to any current license, a
8  second-class wine-maker's license, shall not manufacture more
9  than 150,000 gallons of wine per year, and shall not be a
10  member of or affiliated with, directly or indirectly, a
11  manufacturer that produces more than 150,000 gallons of wine
12  per year. A class 2 craft distiller licensee may make sales and
13  deliveries to importing distributors and distributors, but
14  shall not make sales or deliveries to any other licensee. If
15  the State Commission provides prior approval, a class 2 craft
16  distiller licensee may annually transfer up to 100,000 gallons
17  of spirits manufactured by that class 2 craft distiller
18  licensee to the premises of a licensed class 2 craft distiller
19  wholly owned and operated by the same licensee. A class 2 craft
20  distiller may transfer spirits to a distilling pub wholly
21  owned and operated by the class 2 craft distiller subject to
22  the following limitations and restrictions: (i) the transfer
23  shall not annually exceed more than 5,000 gallons; (ii) the
24  annual amount transferred shall reduce the distilling pub's
25  annual permitted production limit; (iii) all spirits
26  transferred shall be subject to Article VIII of this Act; (iv)

 

 

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1  a written record shall be maintained by the distiller and
2  distilling pub specifying the amount, date of delivery, and
3  receipt of the product by the distilling pub; and (v) the
4  distilling pub shall be located no farther than 80 miles from
5  the class 2 craft distiller's licensed location.
6  A class 2 craft distiller shall, prior to transferring
7  spirits to a distilling pub wholly owned by the class 2 craft
8  distiller, furnish a written notice to the State Commission of
9  intent to transfer spirits setting forth the name and address
10  of the distilling pub and shall annually submit to the State
11  Commission a verified report identifying the total gallons of
12  spirits transferred to the distilling pub wholly owned by the
13  class 2 craft distiller.
14  A class 2 craft distiller license holder may store such
15  spirits at a non-contiguous licensed location, but at no time
16  shall a class 2 craft distiller license holder directly or
17  indirectly produce in the aggregate more than 100,000 gallons
18  of spirits per year.
19  Class 12. A class 1 brewer license, which may only be
20  issued to a licensed brewer or licensed non-resident dealer,
21  shall allow the manufacture of up to 930,000 gallons of beer
22  per year provided that the class 1 brewer licensee does not
23  manufacture more than a combined 930,000 gallons of beer per
24  year and is not a member of or affiliated with, directly or
25  indirectly, a manufacturer that produces more than 930,000
26  gallons of beer per year. If a class 1 brewer manufactures

 

 

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1  spirits, it shall also obtain and shall only be eligible for,
2  in addition to any current license, a class 1 craft distiller
3  license, shall not manufacture more than 50,000 gallons of
4  spirits per year, and shall not be a member of or affiliated
5  with, directly or indirectly, a manufacturer that produces
6  more than 50,000 gallons of spirits per year. If a class 1
7  craft brewer manufactures wine, it shall also obtain and shall
8  only be eligible for, in addition to any current license, a
9  first-class wine-manufacturer license or a first-class
10  wine-maker's license, shall not manufacture more than 50,000
11  gallons of wine per year, and shall not be a member of or
12  affiliated with, directly or indirectly, a manufacturer that
13  produces more than 50,000 gallons of wine per year. A class 1
14  brewer licensee may make sales and deliveries to importing
15  distributors and distributors and to retail licensees in
16  accordance with the conditions set forth in paragraph (18) of
17  subsection (a) of Section 3-12 of this Act. If the State
18  Commission provides prior approval, a class 1 brewer may
19  annually transfer up to 930,000 gallons of beer manufactured
20  by that class 1 brewer to the premises of a licensed class 1
21  brewer wholly owned and operated by the same licensee.
22  Class 13. A class 2 brewer license, which may only be
23  issued to a licensed brewer or licensed non-resident dealer,
24  shall allow the manufacture of up to 3,720,000 gallons of beer
25  per year provided that the class 2 brewer licensee does not
26  manufacture more than a combined 3,720,000 gallons of beer per

 

 

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1  year and is not a member of or affiliated with, directly or
2  indirectly, a manufacturer that produces more than 3,720,000
3  gallons of beer per year. If a class 2 brewer manufactures
4  spirits, it shall also obtain and shall only be eligible for,
5  in addition to any current license, a class 2 craft distiller
6  license, shall not manufacture more than 100,000 gallons of
7  spirits per year, and shall not be a member of or affiliated
8  with, directly or indirectly, a manufacturer that produces
9  more than 100,000 gallons of spirits per year. If a class 2
10  craft distiller manufactures wine, it shall also obtain and
11  shall only be eligible for, in addition to any current
12  license, a second-class wine-maker's license, shall not
13  manufacture more than 150,000 gallons of wine per year, and
14  shall not be a member of or affiliated with, directly or
15  indirectly, a manufacturer that produces more than 150,000
16  gallons of wine a year. A class 2 brewer licensee may make
17  sales and deliveries to importing distributors and
18  distributors, but shall not make sales or deliveries to any
19  other licensee. If the State Commission provides prior
20  approval, a class 2 brewer licensee may annually transfer up
21  to 3,720,000 gallons of beer manufactured by that class 2
22  brewer licensee to the premises of a licensed class 2 brewer
23  wholly owned and operated by the same licensee.
24  A class 2 brewer may transfer beer to a brew pub wholly
25  owned and operated by the class 2 brewer subject to the
26  following limitations and restrictions: (i) the transfer shall

 

 

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1  not annually exceed more than 31,000 gallons; (ii) the annual
2  amount transferred shall reduce the brew pub's annual
3  permitted production limit; (iii) all beer transferred shall
4  be subject to Article VIII of this Act; (iv) a written record
5  shall be maintained by the brewer and brew pub specifying the
6  amount, date of delivery, and receipt of the product by the
7  brew pub; and (v) the brew pub shall be located no farther than
8  80 miles from the class 2 brewer's licensed location.
9  A class 2 brewer shall, prior to transferring beer to a
10  brew pub wholly owned by the class 2 brewer, furnish a written
11  notice to the State Commission of intent to transfer beer
12  setting forth the name and address of the brew pub and shall
13  annually submit to the State Commission a verified report
14  identifying the total gallons of beer transferred to the brew
15  pub wholly owned by the class 2 brewer.
16  Class 14. A class 3 brewer license, which may be issued to
17  a brewer or a non-resident dealer, shall allow the manufacture
18  of no more than 465,000 gallons of beer per year and no more
19  than 155,000 gallons at a single brewery premises, and shall
20  allow the sale of no more than 6,200 gallons of beer from each
21  in-state or out-of-state class 3 brewery premises, or 18,600
22  gallons in the aggregate, to retail licensees, class 1
23  brewers, class 2 brewers, and class 3 brewers as long as the
24  class 3 brewer licensee does not manufacture more than a
25  combined 465,000 gallons of beer per year and is not a member
26  of or affiliated with, directly or indirectly, a manufacturer

 

 

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1  that produces more than 465,000 gallons of beer per year to
2  make sales to importing distributors, distributors, retail
3  licensees, brewers, class 1 brewers, class 2 brewers, and
4  class 3 brewers in accordance with the conditions set forth in
5  paragraph (20) of subsection (a) of Section 3-12. If the State
6  Commission provides prior approval, a class 3 brewer may
7  annually transfer up to 155,000 gallons of beer manufactured
8  by that class 3 brewer to the premises of a licensed class 3
9  brewer wholly owned and operated by the same licensee. A class
10  3 brewer shall manufacture beer at the brewer's class 3
11  designated licensed premises, and may sell beer as otherwise
12  provided in this Act.
13  (a-1) A manufacturer which is licensed in this State to
14  make sales or deliveries of alcoholic liquor to licensed
15  distributors or importing distributors and which enlists
16  agents, representatives, or individuals acting on its behalf
17  who contact licensed retailers on a regular and continual
18  basis in this State must register those agents,
19  representatives, or persons acting on its behalf with the
20  State Commission.
21  Registration of agents, representatives, or persons acting
22  on behalf of a manufacturer is fulfilled by submitting a form
23  to the Commission. The form shall be developed by the
24  Commission and shall include the name and address of the
25  applicant, the name and address of the manufacturer he or she
26  represents, the territory or areas assigned to sell to or

 

 

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1  discuss pricing terms of alcoholic liquor, and any other
2  questions deemed appropriate and necessary. All statements in
3  the forms required to be made by law or by rule shall be deemed
4  material, and any person who knowingly misstates any material
5  fact under oath in an application is guilty of a Class B
6  misdemeanor. Fraud, misrepresentation, false statements,
7  misleading statements, evasions, or suppression of material
8  facts in the securing of a registration are grounds for
9  suspension or revocation of the registration. The State
10  Commission shall post a list of registered agents on the
11  Commission's website.
12  (b) A distributor's license shall allow (i) the wholesale
13  purchase and storage of alcoholic liquors and sale of
14  alcoholic liquors to licensees in this State and to persons
15  without the State, as may be permitted by law; (ii) the sale of
16  beer, cider, mead, or any combination thereof to brewers,
17  class 1 brewers, and class 2 brewers that, pursuant to
18  subsection (e) of Section 6-4 of this Act, sell beer, cider,
19  mead, or any combination thereof to non-licensees at their
20  breweries; (iii) the sale of vermouth to class 1 craft
21  distillers and class 2 craft distillers that, pursuant to
22  subsection (e) of Section 6-4 of this Act, sell spirits,
23  vermouth, or both spirits and vermouth to non-licensees at
24  their distilleries; or (iv) as otherwise provided in this Act.
25  No person licensed as a distributor shall be granted a
26  non-resident dealer's license.

 

 

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1  (c) An importing distributor's license may be issued to
2  and held by those only who are duly licensed distributors,
3  upon the filing of an application by a duly licensed
4  distributor, with the Commission and the Commission shall,
5  without the payment of any fee, immediately issue such
6  importing distributor's license to the applicant, which shall
7  allow the importation of alcoholic liquor by the licensee into
8  this State from any point in the United States outside this
9  State, and the purchase of alcoholic liquor in barrels, casks
10  or other bulk containers and the bottling of such alcoholic
11  liquors before resale thereof, but all bottles or containers
12  so filled shall be sealed, labeled, stamped and otherwise made
13  to comply with all provisions, rules and regulations governing
14  manufacturers in the preparation and bottling of alcoholic
15  liquors. The importing distributor's license shall permit such
16  licensee to purchase alcoholic liquor from Illinois licensed
17  non-resident dealers and foreign importers only. No person
18  licensed as an importing distributor shall be granted a
19  non-resident dealer's license.
20  (d) A retailer's license shall allow the licensee to sell
21  and offer for sale at retail, only in the premises specified in
22  the license, alcoholic liquor for use or consumption, but not
23  for resale in any form. Except as provided in Section 6-16,
24  6-29, or 6-29.1, nothing in this Act shall deny, limit,
25  remove, or restrict the ability of a holder of a retailer's
26  license to transfer or ship alcoholic liquor to the purchaser

 

 

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1  for use or consumption subject to any applicable local law or
2  ordinance. For the purposes of this Section, "shipping" means
3  the movement of alcoholic liquor from a licensed retailer to a
4  consumer via a common carrier. Except as provided in Section
5  6-16, 6-29, or 6-29.1, nothing in this Act shall deny, limit,
6  remove, or restrict the ability of a holder of a retailer's
7  license to deliver alcoholic liquor to the purchaser for use
8  or consumption. The delivery shall be made only within 12
9  hours from the time the alcoholic liquor leaves the licensed
10  premises of the retailer for delivery. For the purposes of
11  this Section, "delivery" means the movement of alcoholic
12  liquor purchased from a licensed retailer to a consumer
13  through the following methods:
14  (1) delivery within licensed retailer's parking lot,
15  including curbside, for pickup by the consumer;
16  (2) delivery by an owner, officer, director,
17  shareholder, or employee of the licensed retailer; or
18  (3) delivery by a third-party contractor, independent
19  contractor, or agent with whom the licensed retailer has
20  contracted to make deliveries of alcoholic liquors.
21  Under subsection (1), (2), or (3), delivery shall not
22  include the use of common carriers.
23  Any retail license issued to a manufacturer shall only
24  permit the manufacturer to sell beer at retail on the premises
25  actually occupied by the manufacturer. For the purpose of
26  further describing the type of business conducted at a retail

 

 

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1  licensed premises, a retailer's licensee may be designated by
2  the State Commission as (i) an on premise consumption
3  retailer, (ii) an off premise sale retailer, or (iii) a
4  combined on premise consumption and off premise sale retailer.
5  Except for a municipality with a population of more than
6  1,000,000 inhabitants, a home rule unit may not regulate the
7  delivery of alcoholic liquor inconsistent with this
8  subsection. This paragraph is a limitation under subsection
9  (i) of Section 6 of Article VII of the Illinois Constitution on
10  the concurrent exercise by home rule units of powers and
11  functions exercised by the State. A non-home rule municipality
12  may not regulate the delivery of alcoholic liquor inconsistent
13  with this subsection.
14  Notwithstanding any other provision of this subsection
15  (d), a retail licensee may sell alcoholic liquors to a special
16  event retailer licensee for resale to the extent permitted
17  under subsection (e).
18  (e) A special event retailer's license (not-for-profit)
19  shall permit the licensee to purchase alcoholic liquors from
20  an Illinois licensed distributor (unless the licensee
21  purchases less than $500 of alcoholic liquors for the special
22  event, in which case the licensee may purchase the alcoholic
23  liquors from a licensed retailer) and shall allow the licensee
24  to sell and offer for sale, at retail, alcoholic liquors for
25  consumption on or off the premises specified in the license
26  use or consumption, but not for resale in any form and only at

 

 

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1  the location and on the specific dates designated for the
2  special event in the license. An applicant for a special event
3  retailer license must (i) furnish with the application: (A) a
4  resale number issued under Section 2c of the Retailers'
5  Occupation Tax Act or evidence that the applicant is
6  registered under Section 2a of the Retailers' Occupation Tax
7  Act, (B) a current, valid exemption identification number
8  issued under Section 1g of the Retailers' Occupation Tax Act,
9  and a certification to the Commission that the purchase of
10  alcoholic liquors will be a tax-exempt purchase, or (C) a
11  statement that the applicant is not registered under Section
12  2a of the Retailers' Occupation Tax Act, does not hold a resale
13  number under Section 2c of the Retailers' Occupation Tax Act,
14  and does not hold an exemption number under Section 1g of the
15  Retailers' Occupation Tax Act, in which event the Commission
16  shall set forth on the special event retailer's license a
17  statement to that effect; (ii) submit with the application
18  proof satisfactory to the State Commission that the applicant
19  will provide dram shop liability insurance in the maximum
20  limits; and (iii) show proof satisfactory to the State
21  Commission that the applicant has obtained local authority
22  approval.
23  Nothing in this Act prohibits an Illinois licensed
24  distributor from offering credit or a refund for unused,
25  salable alcoholic liquors to a holder of a special event
26  retailer's license or the special event retailer's licensee

 

 

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1  from accepting the credit or refund of alcoholic liquors at
2  the conclusion of the event specified in the license.
3  (f) A railroad license shall permit the licensee to import
4  alcoholic liquors into this State from any point in the United
5  States outside this State and to store such alcoholic liquors
6  in this State; to make wholesale purchases of alcoholic
7  liquors directly from manufacturers, foreign importers,
8  distributors and importing distributors from within or outside
9  this State; and to store such alcoholic liquors in this State;
10  provided that the above powers may be exercised only in
11  connection with the importation, purchase or storage of
12  alcoholic liquors to be sold or dispensed on a club, buffet,
13  lounge or dining car operated on an electric, gas or steam
14  railway in this State; and provided further, that railroad
15  licensees exercising the above powers shall be subject to all
16  provisions of Article VIII of this Act as applied to importing
17  distributors. A railroad license shall also permit the
18  licensee to sell or dispense alcoholic liquors on any club,
19  buffet, lounge or dining car operated on an electric, gas or
20  steam railway regularly operated by a common carrier in this
21  State, but shall not permit the sale for resale of any
22  alcoholic liquors to any licensee within this State. A license
23  shall be obtained for each car in which such sales are made.
24  (g) A boat license shall allow the sale of alcoholic
25  liquor in individual drinks, on any passenger boat regularly
26  operated as a common carrier on navigable waters in this State

 

 

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1  or on any riverboat operated under the Illinois Gambling Act,
2  which boat or riverboat maintains a public dining room or
3  restaurant thereon.
4  (h) A non-beverage user's license shall allow the licensee
5  to purchase alcoholic liquor from a licensed manufacturer or
6  importing distributor, without the imposition of any tax upon
7  the business of such licensed manufacturer or importing
8  distributor as to such alcoholic liquor to be used by such
9  licensee solely for the non-beverage purposes set forth in
10  subsection (a) of Section 8-1 of this Act, and such licenses
11  shall be divided and classified and shall permit the purchase,
12  possession and use of limited and stated quantities of
13  alcoholic liquor as follows:
14  Class 1, not to exceed ......................... 500 gallons
15  Class 2, not to exceed ....................... 1,000 gallons
16  Class 3, not to exceed ....................... 5,000 gallons
17  Class 4, not to exceed ...................... 10,000 gallons
18  Class 5, not to exceed ....................... 50,000 gallons
19  (i) A wine-maker's premises license shall allow a licensee
20  that concurrently holds a first-class wine-maker's license to
21  sell and offer for sale at retail in the premises specified in
22  such license not more than 50,000 gallons of the first-class
23  wine-maker's wine that is made at the first-class wine-maker's
24  licensed premises per year for use or consumption, but not for
25  resale in any form. A wine-maker's premises license shall
26  allow a licensee who concurrently holds a second-class

 

 

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

 

 

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  HB4775 - 23 - LRB103 37577 RPS 67703 b
1  United States outside this State and to store such alcoholic
2  liquors in this State; to make wholesale purchases of
3  alcoholic liquors directly from manufacturers, foreign
4  importers, distributors and importing distributors from within
5  or outside this State; and to store such alcoholic liquors in
6  this State; provided that the above powers may be exercised
7  only in connection with the importation, purchase or storage
8  of alcoholic liquors to be sold or dispensed on an airplane;
9  and provided further, that airplane licensees exercising the
10  above powers shall be subject to all provisions of Article
11  VIII of this Act as applied to importing distributors. An
12  airplane licensee shall also permit the sale or dispensing of
13  alcoholic liquors on any passenger airplane regularly operated
14  by a common carrier in this State, but shall not permit the
15  sale for resale of any alcoholic liquors to any licensee
16  within this State. A single airplane license shall be required
17  of an airline company if liquor service is provided on board
18  aircraft in this State. The annual fee for such license shall
19  be as determined in Section 5-3.
20  (k) A foreign importer's license shall permit such
21  licensee to purchase alcoholic liquor from Illinois licensed
22  non-resident dealers only, and to import alcoholic liquor
23  other than in bulk from any point outside the United States and
24  to sell such alcoholic liquor to Illinois licensed importing
25  distributors and to no one else in Illinois; provided that (i)
26  the foreign importer registers with the State Commission every

 

 

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

 

 

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

 

 

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

 

 

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1  upon the premises, (iv) sell and offer for sale at retail from
2  the licensed premises for off-premises consumption no more
3  than 155,000 gallons per year so long as such sales are only
4  made in-person, (v) sell and offer for sale at retail for use
5  and consumption on the premises specified in the license any
6  form of alcoholic liquor purchased from a licensed distributor
7  or importing distributor, (vi) with the prior approval of the
8  Commission, annually transfer no more than 155,000 gallons of
9  beer manufactured on the premises to a licensed brew pub
10  wholly owned and operated by the same licensee, and (vii)
11  notwithstanding item (i) of this subsection, brew pubs wholly
12  owned and operated by the same licensee may combine each
13  location's production limit of 155,000 gallons of beer per
14  year and allocate the aggregate total between the wholly
15  owned, operated, and licensed locations.
16  A brew pub licensee shall not under any circumstance sell
17  or offer for sale beer manufactured by the brew pub licensee to
18  retail licensees.
19  A person who holds a class 2 brewer license may
20  simultaneously hold a brew pub license if the class 2 brewer
21  (i) does not, under any circumstance, sell or offer for sale
22  beer manufactured by the class 2 brewer to retail licensees;
23  (ii) does not hold more than 3 brew pub licenses in this State;
24  (iii) does not manufacture more than a combined 3,720,000
25  gallons of beer per year, including the beer manufactured at
26  the brew pub; and (iv) is not a member of or affiliated with,

 

 

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1  directly or indirectly, a manufacturer that produces more than
2  3,720,000 gallons of beer per year or any other alcoholic
3  liquor.
4  Notwithstanding any other provision of this Act, a
5  licensed brewer, class 2 brewer, or non-resident dealer who
6  before July 1, 2015 manufactured less than 3,720,000 gallons
7  of beer per year and held a brew pub license on or before July
8  1, 2015 may (i) continue to qualify for and hold that brew pub
9  license for the licensed premises and (ii) manufacture more
10  than 3,720,000 gallons of beer per year and continue to
11  qualify for and hold that brew pub license if that brewer,
12  class 2 brewer, or non-resident dealer does not simultaneously
13  hold a class 1 brewer license and is not a member of or
14  affiliated with, directly or indirectly, a manufacturer that
15  produces more than 3,720,000 gallons of beer per year or that
16  produces any other alcoholic liquor.
17  A brew pub licensee may apply for a class 3 brewer license
18  and, upon meeting all applicable qualifications of this Act
19  and relinquishing all commonly owned brew pub or retail
20  licenses, shall be issued a class 3 brewer license. Nothing in
21  this Act shall prohibit the issuance of a class 3 brewer
22  license if the applicant:
23  (1) has a valid retail license on or before May 1,
24  2021;
25  (2) has an ownership interest in at least two brew
26  pubs licenses on or before May 1, 2021;

 

 

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1  (3) the brew pub licensee applies for a class 3 brewer
2  license on or before October 1, 2022 and relinquishes all
3  commonly owned brew pub licenses; and
4  (4) relinquishes all commonly owned retail licenses on
5  or before December 31, 2022.
6  If a brew pub licensee is issued a class 3 brewer license,
7  the class 3 brewer license shall expire on the same date as the
8  existing brew pub license and the State Commission shall not
9  require a class 3 brewer licensee to obtain a brewer license,
10  or in the alternative to pay a fee for a brewer license, until
11  the date the brew pub license of the applicant would have
12  expired.
13  (o) A caterer retailer license shall allow the holder to
14  serve alcoholic liquors as an incidental part of a food
15  service that serves prepared meals which excludes the serving
16  of snacks as the primary meal, either on or off-site whether
17  licensed or unlicensed. A caterer retailer license shall allow
18  the holder, a distributor, or an importing distributor to
19  transfer any inventory to and from the holder's retail
20  premises and shall allow the holder to purchase alcoholic
21  liquor from a distributor or importing distributor to be
22  delivered directly to an off-site event.
23  Nothing in this Act prohibits a distributor or importing
24  distributor from offering credit or a refund for unused,
25  salable beer to a holder of a caterer retailer license or a
26  caterer retailer licensee from accepting a credit or refund

 

 

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1  for unused, salable beer, in the event an act of God is the
2  sole reason an off-site event is cancelled and if: (i) the
3  holder of a caterer retailer license has not transferred
4  alcoholic liquor from its caterer retailer premises to an
5  off-site location; (ii) the distributor or importing
6  distributor offers the credit or refund for the unused,
7  salable beer that it delivered to the off-site premises and
8  not for any unused, salable beer that the distributor or
9  importing distributor delivered to the caterer retailer's
10  premises; and (iii) the unused, salable beer would likely
11  spoil if transferred to the caterer retailer's premises. A
12  caterer retailer license shall allow the holder to transfer
13  any inventory from any off-site location to its caterer
14  retailer premises at the conclusion of an off-site event or
15  engage a distributor or importing distributor to transfer any
16  inventory from any off-site location to its caterer retailer
17  premises at the conclusion of an off-site event, provided that
18  the distributor or importing distributor issues bona fide
19  charges to the caterer retailer licensee for fuel, labor, and
20  delivery and the distributor or importing distributor collects
21  payment from the caterer retailer licensee prior to the
22  distributor or importing distributor transferring inventory to
23  the caterer retailer premises.
24  For purposes of this subsection (o), an "act of God" means
25  an unforeseeable event, such as a rain or snow storm, hail, a
26  flood, or a similar event, that is the sole cause of the

 

 

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1  cancellation of an off-site, outdoor event.
2  (p) An auction liquor license shall allow the licensee to
3  sell and offer for sale at auction wine and spirits for use or
4  consumption, or for resale by an Illinois liquor licensee in
5  accordance with provisions of this Act. An auction liquor
6  license will be issued to a person and it will permit the
7  auction liquor licensee to hold the auction anywhere in the
8  State. An auction liquor license must be obtained for each
9  auction at least 14 days in advance of the auction date.
10  (q) A special use permit license shall allow an Illinois
11  licensed retailer to transfer a portion of its alcoholic
12  liquor inventory from its retail licensed premises to the
13  premises specified in the license hereby created; to purchase
14  alcoholic liquor from a distributor or importing distributor
15  to be delivered directly to the location specified in the
16  license hereby created; and to sell or offer for sale at
17  retail, only in the premises specified in the license hereby
18  created, the transferred or delivered alcoholic liquor for
19  consumption on or off the premises specified in the license
20  for use or consumption, but not for resale in any form. A
21  special use permit license may be granted for the following
22  time periods: one day or less; 2 or more days to a maximum of
23  15 days per location in any 12-month period. An applicant for
24  the special use permit license must also submit with the
25  application proof satisfactory to the State Commission that
26  the applicant will provide dram shop liability insurance to

 

 

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1  the maximum limits and have local authority approval.
2  A special use permit license shall allow the holder to
3  transfer any inventory from the holder's special use premises
4  to its retail premises at the conclusion of the special use
5  event or engage a distributor or importing distributor to
6  transfer any inventory from the holder's special use premises
7  to its retail premises at the conclusion of an off-site event,
8  provided that the distributor or importing distributor issues
9  bona fide charges to the special use permit licensee for fuel,
10  labor, and delivery and the distributor or importing
11  distributor collects payment from the retail licensee prior to
12  the distributor or importing distributor transferring
13  inventory to the retail premises.
14  Nothing in this Act prohibits a distributor or importing
15  distributor from offering credit or a refund for unused,
16  salable beer to a special use permit licensee or a special use
17  permit licensee from accepting a credit or refund for unused,
18  salable beer at the conclusion of the event specified in the
19  license if: (i) the holder of the special use permit license
20  has not transferred alcoholic liquor from its retail licensed
21  premises to the premises specified in the special use permit
22  license; (ii) the distributor or importing distributor offers
23  the credit or refund for the unused, salable beer that it
24  delivered to the premises specified in the special use permit
25  license and not for any unused, salable beer that the
26  distributor or importing distributor delivered to the

 

 

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1  retailer's premises; and (iii) the unused, salable beer would
2  likely spoil if transferred to the retailer premises.
3  (r) A winery shipper's license shall allow a person with a
4  first-class or second-class wine manufacturer's license, a
5  first-class or second-class wine-maker's license, or a limited
6  wine manufacturer's license or who is licensed to make wine
7  under the laws of another state to ship wine made by that
8  licensee directly to a resident of this State who is 21 years
9  of age or older for that resident's personal use and not for
10  resale. Prior to receiving a winery shipper's license, an
11  applicant for the license must provide the Commission with a
12  true copy of its current license in any state in which it is
13  licensed as a manufacturer of wine. An applicant for a winery
14  shipper's license must also complete an application form that
15  provides any other information the Commission deems necessary.
16  The application form shall include all addresses from which
17  the applicant for a winery shipper's license intends to ship
18  wine, including the name and address of any third party,
19  except for a common carrier, authorized to ship wine on behalf
20  of the manufacturer. The application form shall include an
21  acknowledgement consenting to the jurisdiction of the
22  Commission, the Illinois Department of Revenue, and the courts
23  of this State concerning the enforcement of this Act and any
24  related laws, rules, and regulations, including authorizing
25  the Department of Revenue and the Commission to conduct audits
26  for the purpose of ensuring compliance with Public Act 95-634,

 

 

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1  and an acknowledgement that the wine manufacturer is in
2  compliance with Section 6-2 of this Act. Any third party,
3  except for a common carrier, authorized to ship wine on behalf
4  of a first-class or second-class wine manufacturer's licensee,
5  a first-class or second-class wine-maker's licensee, a limited
6  wine manufacturer's licensee, or a person who is licensed to
7  make wine under the laws of another state shall also be
8  disclosed by the winery shipper's licensee, and a copy of the
9  written appointment of the third-party wine provider, except
10  for a common carrier, to the wine manufacturer shall be filed
11  with the State Commission as a supplement to the winery
12  shipper's license application or any renewal thereof. The
13  winery shipper's license holder shall affirm under penalty of
14  perjury, as part of the winery shipper's license application
15  or renewal, that he or she only ships wine, either directly or
16  indirectly through a third-party provider, from the licensee's
17  own production.
18  Except for a common carrier, a third-party provider
19  shipping wine on behalf of a winery shipper's license holder
20  is the agent of the winery shipper's license holder and, as
21  such, a winery shipper's license holder is responsible for the
22  acts and omissions of the third-party provider acting on
23  behalf of the license holder. A third-party provider, except
24  for a common carrier, that engages in shipping wine into
25  Illinois on behalf of a winery shipper's license holder shall
26  consent to the jurisdiction of the State Commission and the

 

 

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1  State. Any third-party, except for a common carrier, holding
2  such an appointment shall, by February 1 of each calendar year
3  and upon request by the State Commission or the Department of
4  Revenue, file with the State Commission a statement detailing
5  each shipment made to an Illinois resident. The statement
6  shall include the name and address of the third-party provider
7  filing the statement, the time period covered by the
8  statement, and the following information:
9  (1) the name, address, and license number of the
10  winery shipper on whose behalf the shipment was made;
11  (2) the quantity of the products delivered; and
12  (3) the date and address of the shipment.
13  If the Department of Revenue or the State Commission requests
14  a statement under this paragraph, the third-party provider
15  must provide that statement no later than 30 days after the
16  request is made. Any books, records, supporting papers, and
17  documents containing information and data relating to a
18  statement under this paragraph shall be kept and preserved for
19  a period of 3 years, unless their destruction sooner is
20  authorized, in writing, by the Director of Revenue, and shall
21  be open and available to inspection by the Director of Revenue
22  or the State Commission or any duly authorized officer, agent,
23  or employee of the State Commission or the Department of
24  Revenue, at all times during business hours of the day. Any
25  person who violates any provision of this paragraph or any
26  rule of the State Commission for the administration and

 

 

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1  enforcement of the provisions of this paragraph is guilty of a
2  Class C misdemeanor. In case of a continuing violation, each
3  day's continuance thereof shall be a separate and distinct
4  offense.
5  The State Commission shall adopt rules as soon as
6  practicable to implement the requirements of Public Act 99-904
7  and shall adopt rules prohibiting any such third-party
8  appointment of a third-party provider, except for a common
9  carrier, that has been deemed by the State Commission to have
10  violated the provisions of this Act with regard to any winery
11  shipper licensee.
12  A winery shipper licensee must pay to the Department of
13  Revenue the State liquor gallonage tax under Section 8-1 for
14  all wine that is sold by the licensee and shipped to a person
15  in this State. For the purposes of Section 8-1, a winery
16  shipper licensee shall be taxed in the same manner as a
17  manufacturer of wine. A licensee who is not otherwise required
18  to register under the Retailers' Occupation Tax Act must
19  register under the Use Tax Act to collect and remit use tax to
20  the Department of Revenue for all gallons of wine that are sold
21  by the licensee and shipped to persons in this State. If a
22  licensee fails to remit the tax imposed under this Act in
23  accordance with the provisions of Article VIII of this Act,
24  the winery shipper's license shall be revoked in accordance
25  with the provisions of Article VII of this Act. If a licensee
26  fails to properly register and remit tax under the Use Tax Act

 

 

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1  or the Retailers' Occupation Tax Act for all wine that is sold
2  by the winery shipper and shipped to persons in this State, the
3  winery shipper's license shall be revoked in accordance with
4  the provisions of Article VII of this Act.
5  A winery shipper licensee must collect, maintain, and
6  submit to the Commission on a semi-annual basis the total
7  number of cases per resident of wine shipped to residents of
8  this State. A winery shipper licensed under this subsection
9  (r) must comply with the requirements of Section 6-29 of this
10  Act.
11  Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
12  Section 3-12, the State Commission may receive, respond to,
13  and investigate any complaint and impose any of the remedies
14  specified in paragraph (1) of subsection (a) of Section 3-12.
15  As used in this subsection, "third-party provider" means
16  any entity that provides fulfillment house services, including
17  warehousing, packaging, distribution, order processing, or
18  shipment of wine, but not the sale of wine, on behalf of a
19  licensed winery shipper.
20  (s) A craft distiller tasting permit license shall allow
21  an Illinois licensed class 1 craft distiller or class 2 craft
22  distiller to transfer a portion of its alcoholic liquor
23  inventory from its class 1 craft distiller or class 2 craft
24  distiller licensed premises to the premises specified in the
25  license hereby created and to conduct a sampling, only in the
26  premises specified in the license hereby created, of the

 

 

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1  transferred alcoholic liquor in accordance with subsection (c)
2  of Section 6-31 of this Act. The transferred alcoholic liquor
3  may not be sold or resold in any form. An applicant for the
4  craft distiller tasting permit license must also submit with
5  the application proof satisfactory to the State Commission
6  that the applicant will provide dram shop liability insurance
7  to the maximum limits and have local authority approval.
8  (t) A brewer warehouse permit may be issued to the holder
9  of a class 1 brewer license or a class 2 brewer license. If the
10  holder of the permit is a class 1 brewer licensee, the brewer
11  warehouse permit shall allow the holder to store or warehouse
12  up to 930,000 gallons of tax-determined beer manufactured by
13  the holder of the permit at the premises specified on the
14  permit. If the holder of the permit is a class 2 brewer
15  licensee, the brewer warehouse permit shall allow the holder
16  to store or warehouse up to 3,720,000 gallons of
17  tax-determined beer manufactured by the holder of the permit
18  at the premises specified on the permit. Sales to
19  non-licensees are prohibited at the premises specified in the
20  brewer warehouse permit.
21  (u) A distilling pub license shall allow the licensee to
22  only (i) manufacture up to 5,000 gallons of spirits per year
23  only on the premises specified in the license, (ii) make sales
24  of the spirits manufactured on the premises or, with the
25  approval of the State Commission, spirits manufactured on
26  another distilling pub licensed premises that is wholly owned

 

 

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1  and operated by the same licensee to importing distributors
2  and distributors and to non-licensees for use and consumption,
3  (iii) store the spirits upon the premises, (iv) sell and offer
4  for sale at retail from the licensed premises for off-premises
5  consumption no more than 5,000 gallons per year so long as such
6  sales are only made in-person, (v) sell and offer for sale at
7  retail for use and consumption on the premises specified in
8  the license any form of alcoholic liquor purchased from a
9  licensed distributor or importing distributor, and (vi) with
10  the prior approval of the State Commission, annually transfer
11  no more than 5,000 gallons of spirits manufactured on the
12  premises to a licensed distilling pub wholly owned and
13  operated by the same licensee.
14  A distilling pub licensee shall not under any circumstance
15  sell or offer for sale spirits manufactured by the distilling
16  pub licensee to retail licensees.
17  A person who holds a class 2 craft distiller license may
18  simultaneously hold a distilling pub license if the class 2
19  craft distiller (i) does not, under any circumstance, sell or
20  offer for sale spirits manufactured by the class 2 craft
21  distiller to retail licensees; (ii) does not hold more than 3
22  distilling pub licenses in this State; (iii) does not
23  manufacture more than a combined 100,000 gallons of spirits
24  per year, including the spirits manufactured at the distilling
25  pub; and (iv) is not a member of or affiliated with, directly
26  or indirectly, a manufacturer that produces more than 100,000

 

 

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1  gallons of spirits per year or any other alcoholic liquor.
2  (v) A craft distiller warehouse permit may be issued to
3  the holder of a class 1 craft distiller or class 2 craft
4  distiller license. The craft distiller warehouse permit shall
5  allow the holder to store or warehouse up to 500,000 gallons of
6  spirits manufactured by the holder of the permit at the
7  premises specified on the permit. Sales to non-licensees are
8  prohibited at the premises specified in the craft distiller
9  warehouse permit.
10  (w) A beer showcase permit license shall allow an
11  Illinois-licensed distributor to transfer a portion of its
12  beer inventory from its licensed premises to the premises
13  specified in the beer showcase permit license, and, in the
14  case of a class 3 brewer, transfer only beer the class 3 brewer
15  manufactures from its licensed premises to the premises
16  specified in the beer showcase permit license; and to sell or
17  offer for sale at retail, only in the premises specified in the
18  beer showcase permit license, the transferred or delivered
19  beer for on or off premise consumption, but not for resale in
20  any form and to sell to non-licensees not more than 96 fluid
21  ounces of beer per person. A beer showcase permit license may
22  be granted for the following time periods: one day or less; or
23  2 or more days to a maximum of 15 days per location in any
24  12-month period. An applicant for a beer showcase permit
25  license must also submit with the application proof
26  satisfactory to the State Commission that the applicant will

 

 

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1  provide dram shop liability insurance to the maximum limits
2  and have local authority approval. The State Commission shall
3  require the beer showcase applicant to comply with Section
4  6-27.1.
5  (Source: P.A. 101-16, eff. 6-14-19; 101-31, eff. 6-28-19;
6  101-81, eff. 7-12-19; 101-482, eff. 8-23-19; 101-517, eff.
7  8-23-19; 101-615, eff. 12-20-19; 101-668, eff. 1-1-22;
8  102-442, eff. 8-20-21; 102-1142, eff. 2-17-23.)
9  (235 ILCS 5/6-40 new)
10  Sec. 6-40. Consumer loyalty and reward programs.
11  (a) In this Section, "consumer loyalty and reward program"
12  means any program offered to consumers by a licensed retailer
13  or manufacturer with retail privileges designed to allow a
14  consumer to access rewards for purchases made at the premises
15  of the retailer or the premises of the manufacturer with
16  retail privileges. "Consumer loyalty and reward program"
17  includes, but is not limited to, selling the retailer's or
18  manufacturer with retail privileges' products at a discount
19  for promotional purposes, targeted discounts, membership
20  programs that offer discounts, point accumulation programs,
21  membership in a retailer's or manufacturer with retail
22  privileges' club or organization, email lists or other forms
23  of registration by a consumer in a retailer's or manufacturer
24  with retail privileges' program, or mug clubs.
25  (b) Any retail licensee or licensed manufacturer with

 

 

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