Illinois 2023-2024 Regular Session

Illinois House Bill HB5504 Latest Draft

Bill / Introduced Version Filed 02/09/2024

                            103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5504 Introduced , by Rep. Kevin John Olickal SYNOPSIS AS INTRODUCED: 235 ILCS 5/1-3.45 new235 ILCS 5/1-3.46 new235 ILCS 5/3-12235 ILCS 5/5-1 from Ch. 43, par. 115235 ILCS 5/5-3 from Ch. 43, par. 118235 ILCS 5/6-4 from Ch. 43, par. 121 Amends the Liquor Control Act of 1934. Creates a distiller showcase permit and a class 3 craft distiller license. Provides that a class 3 craft distiller license, which may be issued to a distiller or a non-resident dealer, shall allow the manufacture of no more than 100,000 gallons of spirits per year and shall allow the sale of no more than 5,000 gallons of spirits in the aggregate from the class 3 craft distiller's in-state or out-of-state class 3 craft distillery premises to retail licensees, class 3 brewers, and class 3 craft distillers as long as the class 3 craft distiller licensee meets certain requirements. Authorizes a class 3 craft distiller to self-distribute subject to certain requirements and limitations. Provides that a spirits showcase permit shall allow an Illinois-licensed distributor to transfer a portion of its spirits inventory from its licensed premises to the premises specified in the spirits showcase permit license, and, in the case of a class 3 craft distiller, transfer only spirits the class 3 craft distiller manufactures from its licensed premises to the premises specified in the spirits showcase permit license; and to sell or offer for sale at retail, only in the premises specified in the spirits showcase permit license, the transferred or delivered spirits for on or off premises consumption, but not for resale in any form and to sell to non-licensees not more than 156 fluid ounces of spirits per person. Provides that a distilling pub license shall allow the licensee to manufacture up to 10,000 gallons (instead of 5,000 gallons) of spirits per year on the premises specified in the license. LRB103 38154 RPS 68287 b   A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5504 Introduced , by Rep. Kevin John Olickal SYNOPSIS AS INTRODUCED:  235 ILCS 5/1-3.45 new235 ILCS 5/1-3.46 new235 ILCS 5/3-12235 ILCS 5/5-1 from Ch. 43, par. 115235 ILCS 5/5-3 from Ch. 43, par. 118235 ILCS 5/6-4 from Ch. 43, par. 121 235 ILCS 5/1-3.45 new  235 ILCS 5/1-3.46 new  235 ILCS 5/3-12  235 ILCS 5/5-1 from Ch. 43, par. 115 235 ILCS 5/5-3 from Ch. 43, par. 118 235 ILCS 5/6-4 from Ch. 43, par. 121 Amends the Liquor Control Act of 1934. Creates a distiller showcase permit and a class 3 craft distiller license. Provides that a class 3 craft distiller license, which may be issued to a distiller or a non-resident dealer, shall allow the manufacture of no more than 100,000 gallons of spirits per year and shall allow the sale of no more than 5,000 gallons of spirits in the aggregate from the class 3 craft distiller's in-state or out-of-state class 3 craft distillery premises to retail licensees, class 3 brewers, and class 3 craft distillers as long as the class 3 craft distiller licensee meets certain requirements. Authorizes a class 3 craft distiller to self-distribute subject to certain requirements and limitations. Provides that a spirits showcase permit shall allow an Illinois-licensed distributor to transfer a portion of its spirits inventory from its licensed premises to the premises specified in the spirits showcase permit license, and, in the case of a class 3 craft distiller, transfer only spirits the class 3 craft distiller manufactures from its licensed premises to the premises specified in the spirits showcase permit license; and to sell or offer for sale at retail, only in the premises specified in the spirits showcase permit license, the transferred or delivered spirits for on or off premises consumption, but not for resale in any form and to sell to non-licensees not more than 156 fluid ounces of spirits per person. Provides that a distilling pub license shall allow the licensee to manufacture up to 10,000 gallons (instead of 5,000 gallons) of spirits per year on the premises specified in the license.  LRB103 38154 RPS 68287 b     LRB103 38154 RPS 68287 b   A BILL FOR
103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5504 Introduced , by Rep. Kevin John Olickal SYNOPSIS AS INTRODUCED:
235 ILCS 5/1-3.45 new235 ILCS 5/1-3.46 new235 ILCS 5/3-12235 ILCS 5/5-1 from Ch. 43, par. 115235 ILCS 5/5-3 from Ch. 43, par. 118235 ILCS 5/6-4 from Ch. 43, par. 121 235 ILCS 5/1-3.45 new  235 ILCS 5/1-3.46 new  235 ILCS 5/3-12  235 ILCS 5/5-1 from Ch. 43, par. 115 235 ILCS 5/5-3 from Ch. 43, par. 118 235 ILCS 5/6-4 from Ch. 43, par. 121
235 ILCS 5/1-3.45 new
235 ILCS 5/1-3.46 new
235 ILCS 5/3-12
235 ILCS 5/5-1 from Ch. 43, par. 115
235 ILCS 5/5-3 from Ch. 43, par. 118
235 ILCS 5/6-4 from Ch. 43, par. 121
Amends the Liquor Control Act of 1934. Creates a distiller showcase permit and a class 3 craft distiller license. Provides that a class 3 craft distiller license, which may be issued to a distiller or a non-resident dealer, shall allow the manufacture of no more than 100,000 gallons of spirits per year and shall allow the sale of no more than 5,000 gallons of spirits in the aggregate from the class 3 craft distiller's in-state or out-of-state class 3 craft distillery premises to retail licensees, class 3 brewers, and class 3 craft distillers as long as the class 3 craft distiller licensee meets certain requirements. Authorizes a class 3 craft distiller to self-distribute subject to certain requirements and limitations. Provides that a spirits showcase permit shall allow an Illinois-licensed distributor to transfer a portion of its spirits inventory from its licensed premises to the premises specified in the spirits showcase permit license, and, in the case of a class 3 craft distiller, transfer only spirits the class 3 craft distiller manufactures from its licensed premises to the premises specified in the spirits showcase permit license; and to sell or offer for sale at retail, only in the premises specified in the spirits showcase permit license, the transferred or delivered spirits for on or off premises consumption, but not for resale in any form and to sell to non-licensees not more than 156 fluid ounces of spirits per person. Provides that a distilling pub license shall allow the licensee to manufacture up to 10,000 gallons (instead of 5,000 gallons) of spirits per year on the premises specified in the license.
LRB103 38154 RPS 68287 b     LRB103 38154 RPS 68287 b
    LRB103 38154 RPS 68287 b
A BILL FOR
HB5504LRB103 38154 RPS 68287 b   HB5504  LRB103 38154 RPS 68287 b
  HB5504  LRB103 38154 RPS 68287 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 Sections 3-12, 5-1, 5-3, and 6-4 and by adding
6  Sections 1-3.45 and 1-3.46 as follows:
7  (235 ILCS 5/1-3.45 new)
8  Sec. 1-3.45. Spirits showcase permit. "Spirits showcase
9  permit" means a license for use by a class 1 craft distiller,
10  class 2 craft distiller, class 3 craft distiller, or
11  distributor to allow for the transfer of spirits only from an
12  existing licensed premises of a class 1 craft distiller, class
13  2 craft distiller, class 3 craft distiller, or distributor to
14  a designated site for a specific event.
15  (235 ILCS 5/1-3.46 new)
16  Sec. 1-3.46. Class 3 craft distiller. "Class 3 craft
17  distiller" means a person who is a holder of a distiller
18  license, class 1 craft distiller license, class 2 craft
19  distiller license, or a non-resident dealer license who
20  manufactures no more than 100,000 gallons of spirits per year
21  in the aggregate and who may make sales to importing
22  distributors, distributors, and retail licensees in accordance

 

103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5504 Introduced , by Rep. Kevin John Olickal SYNOPSIS AS INTRODUCED:
235 ILCS 5/1-3.45 new235 ILCS 5/1-3.46 new235 ILCS 5/3-12235 ILCS 5/5-1 from Ch. 43, par. 115235 ILCS 5/5-3 from Ch. 43, par. 118235 ILCS 5/6-4 from Ch. 43, par. 121 235 ILCS 5/1-3.45 new  235 ILCS 5/1-3.46 new  235 ILCS 5/3-12  235 ILCS 5/5-1 from Ch. 43, par. 115 235 ILCS 5/5-3 from Ch. 43, par. 118 235 ILCS 5/6-4 from Ch. 43, par. 121
235 ILCS 5/1-3.45 new
235 ILCS 5/1-3.46 new
235 ILCS 5/3-12
235 ILCS 5/5-1 from Ch. 43, par. 115
235 ILCS 5/5-3 from Ch. 43, par. 118
235 ILCS 5/6-4 from Ch. 43, par. 121
Amends the Liquor Control Act of 1934. Creates a distiller showcase permit and a class 3 craft distiller license. Provides that a class 3 craft distiller license, which may be issued to a distiller or a non-resident dealer, shall allow the manufacture of no more than 100,000 gallons of spirits per year and shall allow the sale of no more than 5,000 gallons of spirits in the aggregate from the class 3 craft distiller's in-state or out-of-state class 3 craft distillery premises to retail licensees, class 3 brewers, and class 3 craft distillers as long as the class 3 craft distiller licensee meets certain requirements. Authorizes a class 3 craft distiller to self-distribute subject to certain requirements and limitations. Provides that a spirits showcase permit shall allow an Illinois-licensed distributor to transfer a portion of its spirits inventory from its licensed premises to the premises specified in the spirits showcase permit license, and, in the case of a class 3 craft distiller, transfer only spirits the class 3 craft distiller manufactures from its licensed premises to the premises specified in the spirits showcase permit license; and to sell or offer for sale at retail, only in the premises specified in the spirits showcase permit license, the transferred or delivered spirits for on or off premises consumption, but not for resale in any form and to sell to non-licensees not more than 156 fluid ounces of spirits per person. Provides that a distilling pub license shall allow the licensee to manufacture up to 10,000 gallons (instead of 5,000 gallons) of spirits per year on the premises specified in the license.
LRB103 38154 RPS 68287 b     LRB103 38154 RPS 68287 b
    LRB103 38154 RPS 68287 b
A BILL FOR

 

 

235 ILCS 5/1-3.45 new
235 ILCS 5/1-3.46 new
235 ILCS 5/3-12
235 ILCS 5/5-1 from Ch. 43, par. 115
235 ILCS 5/5-3 from Ch. 43, par. 118
235 ILCS 5/6-4 from Ch. 43, par. 121



    LRB103 38154 RPS 68287 b

 

 



 

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1  with the conditions set forth in paragraph (21) of subsection
2  (a) of Section 3-12.
3  (235 ILCS 5/3-12)
4  Sec. 3-12. Powers and duties of State Commission.
5  (a) The State Commission shall have the following powers,
6  functions, and duties:
7  (1) To receive applications and to issue licenses to
8  manufacturers, foreign importers, importing distributors,
9  distributors, non-resident dealers, on premise consumption
10  retailers, off premise sale retailers, special event
11  retailer licensees, special use permit licenses, auction
12  liquor licenses, brew pubs, caterer retailers,
13  non-beverage users, railroads, including owners and
14  lessees of sleeping, dining and cafe cars, airplanes,
15  boats, brokers, and wine maker's premises licensees in
16  accordance with the provisions of this Act, and to suspend
17  or revoke such licenses upon the State Commission's
18  determination, upon notice after hearing, that a licensee
19  has violated any provision of this Act or any rule or
20  regulation issued pursuant thereto and in effect for 30
21  days prior to such violation. Except in the case of an
22  action taken pursuant to a violation of Section 6-3, 6-5,
23  or 6-9, any action by the State Commission to suspend or
24  revoke a licensee's license may be limited to the license
25  for the specific premises where the violation occurred. An

 

 

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1  action for a violation of this Act shall be commenced by
2  the State Commission within 2 years after the date the
3  State Commission becomes aware of the violation.
4  In lieu of suspending or revoking a license, the
5  commission may impose a fine, upon the State Commission's
6  determination and notice after hearing, that a licensee
7  has violated any provision of this Act or any rule or
8  regulation issued pursuant thereto and in effect for 30
9  days prior to such violation.
10  For the purpose of this paragraph (1), when
11  determining multiple violations for the sale of alcohol to
12  a person under the age of 21, a second or subsequent
13  violation for the sale of alcohol to a person under the age
14  of 21 shall only be considered if it was committed within 5
15  years after the date when a prior violation for the sale of
16  alcohol to a person under the age of 21 was committed.
17  The fine imposed under this paragraph may not exceed
18  $500 for each violation. Each day that the activity, which
19  gave rise to the original fine, continues is a separate
20  violation. The maximum fine that may be levied against any
21  licensee, for the period of the license, shall not exceed
22  $20,000. The maximum penalty that may be imposed on a
23  licensee for selling a bottle of alcoholic liquor with a
24  foreign object in it or serving from a bottle of alcoholic
25  liquor with a foreign object in it shall be the
26  destruction of that bottle of alcoholic liquor for the

 

 

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

 

 

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1  such information and assistance as it deems necessary in
2  the performance of its duties.
3  (4) To recommend to local commissioners rules and
4  regulations, not inconsistent with the law, for the
5  distribution and sale of alcoholic liquors throughout the
6  State.
7  (5) To inspect, or cause to be inspected, any premises
8  in this State where alcoholic liquors are manufactured,
9  distributed, warehoused, or sold. Nothing in this Act
10  authorizes an agent of the State Commission to inspect
11  private areas within the premises without reasonable
12  suspicion or a warrant during an inspection. "Private
13  areas" include, but are not limited to, safes, personal
14  property, and closed desks.
15  (5.1) Upon receipt of a complaint or upon having
16  knowledge that any person is engaged in business as a
17  manufacturer, importing distributor, distributor, or
18  retailer without a license or valid license, to conduct an
19  investigation. If, after conducting an investigation, the
20  State Commission is satisfied that the alleged conduct
21  occurred or is occurring, it may issue a cease and desist
22  notice as provided in this Act, impose civil penalties as
23  provided in this Act, notify the local liquor authority,
24  or file a complaint with the State's Attorney's Office of
25  the county where the incident occurred or the Attorney
26  General.

 

 

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1  (5.2) Upon receipt of a complaint or upon having
2  knowledge that any person is shipping alcoholic liquor
3  into this State from a point outside of this State if the
4  shipment is in violation of this Act, to conduct an
5  investigation. If, after conducting an investigation, the
6  State Commission is satisfied that the alleged conduct
7  occurred or is occurring, it may issue a cease and desist
8  notice as provided in this Act, impose civil penalties as
9  provided in this Act, notify the foreign jurisdiction, or
10  file a complaint with the State's Attorney's Office of the
11  county where the incident occurred or the Attorney
12  General.
13  (5.3) To receive complaints from licensees, local
14  officials, law enforcement agencies, organizations, and
15  persons stating that any licensee has been or is violating
16  any provision of this Act or the rules and regulations
17  issued pursuant to this Act. Such complaints shall be in
18  writing, signed and sworn to by the person making the
19  complaint, and shall state with specificity the facts in
20  relation to the alleged violation. If the State Commission
21  has reasonable grounds to believe that the complaint
22  substantially alleges a violation of this Act or rules and
23  regulations adopted pursuant to this Act, it shall conduct
24  an investigation. If, after conducting an investigation,
25  the State Commission is satisfied that the alleged
26  violation did occur, it shall proceed with disciplinary

 

 

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1  action against the licensee as provided in this Act.
2  (5.4) To make arrests and issue notices of civil
3  violations where necessary for the enforcement of this
4  Act.
5  (5.5) To investigate any and all unlicensed activity.
6  (5.6) To impose civil penalties or fines to any person
7  who, without holding a valid license, engages in conduct
8  that requires a license pursuant to this Act, in an amount
9  not to exceed $20,000 for each offense as determined by
10  the State Commission. A civil penalty shall be assessed by
11  the State Commission after a hearing is held in accordance
12  with the provisions set forth in this Act regarding the
13  provision of a hearing for the revocation or suspension of
14  a license.
15  (6) To hear and determine appeals from orders of a
16  local commission in accordance with the provisions of this
17  Act, as hereinafter set forth. Hearings under this
18  subsection shall be held in Springfield or Chicago, at
19  whichever location is the more convenient for the majority
20  of persons who are parties to the hearing.
21  (7) The State Commission shall establish uniform
22  systems of accounts to be kept by all retail licensees
23  having more than 4 employees, and for this purpose the
24  State Commission may classify all retail licensees having
25  more than 4 employees and establish a uniform system of
26  accounts for each class and prescribe the manner in which

 

 

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1  such accounts shall be kept. The State Commission may also
2  prescribe the forms of accounts to be kept by all retail
3  licensees having more than 4 employees, including, but not
4  limited to, accounts of earnings and expenses and any
5  distribution, payment, or other distribution of earnings
6  or assets, and any other forms, records, and memoranda
7  which in the judgment of the commission may be necessary
8  or appropriate to carry out any of the provisions of this
9  Act, including, but not limited to, such forms, records,
10  and memoranda as will readily and accurately disclose at
11  all times the beneficial ownership of such retail licensed
12  business. The accounts, forms, records, and memoranda
13  shall be available at all reasonable times for inspection
14  by authorized representatives of the State Commission or
15  by any local liquor control commissioner or his or her
16  authorized representative. The commission may, from time
17  to time, alter, amend, or repeal, in whole or in part, any
18  uniform system of accounts, or the form and manner of
19  keeping accounts.
20  (8) In the conduct of any hearing authorized to be
21  held by the State Commission, to appoint, at the
22  commission's discretion, hearing officers to conduct
23  hearings involving complex issues or issues that will
24  require a protracted period of time to resolve, to
25  examine, or cause to be examined, under oath, any
26  licensee, and to examine or cause to be examined the books

 

 

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1  and records of such licensee; to hear testimony and take
2  proof material for its information in the discharge of its
3  duties hereunder; to administer or cause to be
4  administered oaths; for any such purpose to issue subpoena
5  or subpoenas to require the attendance of witnesses and
6  the production of books, which shall be effective in any
7  part of this State, and to adopt rules to implement its
8  powers under this paragraph (8).
9  Any circuit court may, by order duly entered, require
10  the attendance of witnesses and the production of relevant
11  books subpoenaed by the State Commission and the court may
12  compel obedience to its order by proceedings for contempt.
13  (9) To investigate the administration of laws in
14  relation to alcoholic liquors in this and other states and
15  any foreign countries, and to recommend from time to time
16  to the Governor and through him or her to the legislature
17  of this State, such amendments to this Act, if any, as it
18  may think desirable and as will serve to further the
19  general broad purposes contained in Section 1-2 hereof.
20  (10) To adopt such rules and regulations consistent
21  with the provisions of this Act which shall be necessary
22  for the control, sale, or disposition of alcoholic liquor
23  damaged as a result of an accident, wreck, flood, fire, or
24  other similar occurrence.
25  (11) To develop industry educational programs related
26  to responsible serving and selling, particularly in the

 

 

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1  areas of overserving consumers and illegal underage
2  purchasing and consumption of alcoholic beverages.
3  (11.1) To license persons providing education and
4  training to alcohol beverage sellers and servers for
5  mandatory and non-mandatory training under the Beverage
6  Alcohol Sellers and Servers Education and Training
7  (BASSET) programs and to develop and administer a public
8  awareness program in Illinois to reduce or eliminate the
9  illegal purchase and consumption of alcoholic beverage
10  products by persons under the age of 21. Application for a
11  license shall be made on forms provided by the State
12  Commission.
13  (12) To develop and maintain a repository of license
14  and regulatory information.
15  (13) (Blank).
16  (14) On or before April 30, 2008 and every 2 years
17  thereafter, the State Commission shall present a written
18  report to the Governor and the General Assembly that shall
19  be based on a study of the impact of Public Act 95-634 on
20  the business of soliciting, selling, and shipping wine
21  from inside and outside of this State directly to
22  residents of this State. As part of its report, the State
23  Commission shall provide all of the following information:
24  (A) The amount of State excise and sales tax
25  revenues generated.
26  (B) The amount of licensing fees received.

 

 

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1  (C) The number of cases of wine shipped from
2  inside and outside of this State directly to residents
3  of this State.
4  (D) The number of alcohol compliance operations
5  conducted.
6  (E) The number of winery shipper's licenses
7  issued.
8  (F) The number of each of the following: reported
9  violations; cease and desist notices issued by the
10  Commission; notices of violations issued by the
11  Commission and to the Department of Revenue; and
12  notices and complaints of violations to law
13  enforcement officials, including, without limitation,
14  the Illinois Attorney General and the U.S. Department
15  of Treasury's Alcohol and Tobacco Tax and Trade
16  Bureau.
17  (15) As a means to reduce the underage consumption of
18  alcoholic liquors, the State Commission shall conduct
19  alcohol compliance operations to investigate whether
20  businesses that are soliciting, selling, and shipping wine
21  from inside or outside of this State directly to residents
22  of this State are licensed by this State or are selling or
23  attempting to sell wine to persons under 21 years of age in
24  violation of this Act.
25  (16) The State Commission shall, in addition to
26  notifying any appropriate law enforcement agency, submit

 

 

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1  notices of complaints or violations of Sections 6-29 and
2  6-29.1 by persons who do not hold a winery shipper's
3  license under this Act to the Illinois Attorney General
4  and to the U.S. Department of Treasury's Alcohol and
5  Tobacco Tax and Trade Bureau.
6  (17)(A) A person licensed to make wine under the laws
7  of another state who has a winery shipper's license under
8  this Act and annually produces less than 25,000 gallons of
9  wine or a person who has a first-class or second-class
10  wine manufacturer's license, a first-class or second-class
11  wine-maker's license, or a limited wine manufacturer's
12  license under this Act and annually produces less than
13  25,000 gallons of wine may make application to the
14  Commission for a self-distribution exemption to allow the
15  sale of not more than 5,000 gallons of the exemption
16  holder's wine to retail licensees per year and to sell
17  cider, mead, or both cider and mead to brewers, class 1
18  brewers, class 2 brewers, and class 3 brewers, and class 3
19  craft distillers that, pursuant to subsection (e) of
20  Section 6-4 of this Act, sell beer, cider, spirits, mead,
21  or any combination thereof to non-licensees at their
22  breweries or distilleries.
23  (B) In the application, which shall be sworn under
24  penalty of perjury, such person shall state (1) the date
25  it was established; (2) its volume of production and sales
26  for each year since its establishment; (3) its efforts to

 

 

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1  establish distributor relationships; (4) that a
2  self-distribution exemption is necessary to facilitate the
3  marketing of its wine; and (5) that it will comply with the
4  liquor and revenue laws of the United States, this State,
5  and any other state where it is licensed.
6  (C) The State Commission shall approve the application
7  for a self-distribution exemption if such person: (1) is
8  in compliance with State revenue and liquor laws; (2) is
9  not a member of any affiliated group that produces
10  directly or indirectly more than 25,000 gallons of wine
11  per annum, 930,000 gallons of beer per annum, or 50,000
12  gallons of spirits per annum; (3) will not annually
13  produce for sale more than 25,000 gallons of wine, 930,000
14  gallons of beer, or 50,000 gallons of spirits; and (4)
15  will not annually sell more than 5,000 gallons of its wine
16  to retail licensees.
17  (D) A self-distribution exemption holder shall
18  annually certify to the State Commission its production of
19  wine in the previous 12 months and its anticipated
20  production and sales for the next 12 months. The State
21  Commission may fine, suspend, or revoke a
22  self-distribution exemption after a hearing if it finds
23  that the exemption holder has made a material
24  misrepresentation in its application, violated a revenue
25  or liquor law of Illinois, exceeded production of 25,000
26  gallons of wine, 930,000 gallons of beer, or 50,000

 

 

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1  gallons of spirits in any calendar year, or become part of
2  an affiliated group producing more than 25,000 gallons of
3  wine, 930,000 gallons of beer, or 50,000 gallons of
4  spirits.
5  (E) Except in hearings for violations of this Act or
6  Public Act 95-634 or a bona fide investigation by duly
7  sworn law enforcement officials, the State Commission, or
8  its agents, the State Commission shall maintain the
9  production and sales information of a self-distribution
10  exemption holder as confidential and shall not release
11  such information to any person.
12  (F) The State Commission shall issue regulations
13  governing self-distribution exemptions consistent with
14  this Section and this Act.
15  (G) Nothing in this paragraph (17) shall prohibit a
16  self-distribution exemption holder from entering into or
17  simultaneously having a distribution agreement with a
18  licensed Illinois distributor.
19  (H) It is the intent of this paragraph (17) to promote
20  and continue orderly markets. The General Assembly finds
21  that, in order to preserve Illinois' regulatory
22  distribution system, it is necessary to create an
23  exception for smaller makers of wine as their wines are
24  frequently adjusted in varietals, mixes, vintages, and
25  taste to find and create market niches sometimes too small
26  for distributor or importing distributor business

 

 

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1  strategies. Limited self-distribution rights will afford
2  and allow smaller makers of wine access to the marketplace
3  in order to develop a customer base without impairing the
4  integrity of the 3-tier system.
5  (18)(A) A class 1 brewer licensee, who must also be
6  either a licensed brewer or licensed non-resident dealer
7  and annually manufacture less than 930,000 gallons of
8  beer, may make application to the State Commission for a
9  self-distribution exemption to allow the sale of not more
10  than 232,500 gallons per year of the exemption holder's
11  beer to retail licensees and to brewers, class 1 brewers,
12  and class 2 brewers that, pursuant to subsection (e) of
13  Section 6-4 of this Act, sell beer, cider, mead, or any
14  combination thereof to non-licensees at their breweries.
15  (B) In the application, which shall be sworn under
16  penalty of perjury, the class 1 brewer licensee shall
17  state (1) the date it was established; (2) its volume of
18  beer manufactured and sold for each year since its
19  establishment; (3) its efforts to establish distributor
20  relationships; (4) that a self-distribution exemption is
21  necessary to facilitate the marketing of its beer; and (5)
22  that it will comply with the alcoholic beverage and
23  revenue laws of the United States, this State, and any
24  other state where it is licensed.
25  (C) Any application submitted shall be posted on the
26  State Commission's website at least 45 days prior to

 

 

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1  action by the State Commission. The State Commission shall
2  approve the application for a self-distribution exemption
3  if the class 1 brewer licensee: (1) is in compliance with
4  the State, revenue, and alcoholic beverage laws; (2) is
5  not a member of any affiliated group that manufactures,
6  directly or indirectly, more than 930,000 gallons of beer
7  per annum, 25,000 gallons of wine per annum, or 50,000
8  gallons of spirits per annum; (3) shall not annually
9  manufacture for sale more than 930,000 gallons of beer,
10  25,000 gallons of wine, or 50,000 gallons of spirits; (4)
11  shall not annually sell more than 232,500 gallons of its
12  beer to retail licensees and class 3 brewers and to
13  brewers, class 1 brewers, and class 2 brewers that,
14  pursuant to subsection (e) of Section 6-4 of this Act,
15  sell beer, cider, mead, or any combination thereof to
16  non-licensees at their breweries; and (5) has relinquished
17  any brew pub license held by the licensee, including any
18  ownership interest it held in the licensed brew pub.
19  (D) A self-distribution exemption holder shall
20  annually certify to the State Commission its manufacture
21  of beer during the previous 12 months and its anticipated
22  manufacture and sales of beer for the next 12 months. The
23  State Commission may fine, suspend, or revoke a
24  self-distribution exemption after a hearing if it finds
25  that the exemption holder has made a material
26  misrepresentation in its application, violated a revenue

 

 

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1  or alcoholic beverage law of Illinois, exceeded the
2  manufacture of 930,000 gallons of beer, 25,000 gallons of
3  wine, or 50,000 gallons of spirits in any calendar year or
4  became part of an affiliated group manufacturing more than
5  930,000 gallons of beer, 25,000 gallons of wine, or 50,000
6  gallons of spirits.
7  (E) The State Commission shall issue rules and
8  regulations governing self-distribution exemptions
9  consistent with this Act.
10  (F) Nothing in this paragraph (18) shall prohibit a
11  self-distribution exemption holder from entering into or
12  simultaneously having a distribution agreement with a
13  licensed Illinois importing distributor or a distributor.
14  If a self-distribution exemption holder enters into a
15  distribution agreement and has assigned distribution
16  rights to an importing distributor or distributor, then
17  the self-distribution exemption holder's distribution
18  rights in the assigned territories shall cease in a
19  reasonable time not to exceed 60 days.
20  (G) It is the intent of this paragraph (18) to promote
21  and continue orderly markets. The General Assembly finds
22  that in order to preserve Illinois' regulatory
23  distribution system, it is necessary to create an
24  exception for smaller manufacturers in order to afford and
25  allow such smaller manufacturers of beer access to the
26  marketplace in order to develop a customer base without

 

 

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1  impairing the integrity of the 3-tier system.
2  (19)(A) A class 1 craft distiller licensee or a
3  non-resident dealer who manufactures less than 50,000
4  gallons of distilled spirits per year may make application
5  to the State Commission for a self-distribution exemption
6  to allow the sale of not more than 5,000 gallons of the
7  exemption holder's spirits to retail licensees per year.
8  (B) In the application, which shall be sworn under
9  penalty of perjury, the class 1 craft distiller licensee
10  or non-resident dealer shall state (1) the date it was
11  established; (2) its volume of spirits manufactured and
12  sold for each year since its establishment; (3) its
13  efforts to establish distributor relationships; (4) that a
14  self-distribution exemption is necessary to facilitate the
15  marketing of its spirits; and (5) that it will comply with
16  the alcoholic beverage and revenue laws of the United
17  States, this State, and any other state where it is
18  licensed.
19  (C) Any application submitted shall be posted on the
20  State Commission's website at least 45 days prior to
21  action by the State Commission. The State Commission shall
22  approve the application for a self-distribution exemption
23  if the applicant: (1) is in compliance with State revenue
24  and alcoholic beverage laws; (2) is not a member of any
25  affiliated group that produces more than 50,000 gallons of
26  spirits per annum, 930,000 gallons of beer per annum, or

 

 

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1  25,000 gallons of wine per annum; (3) does not annually
2  manufacture for sale more than 50,000 gallons of spirits,
3  930,000 gallons of beer, or 25,000 gallons of wine; and
4  (4) does not annually sell more than 5,000 gallons of its
5  spirits to retail licensees.
6  (D) A self-distribution exemption holder shall
7  annually certify to the State Commission its manufacture
8  of spirits during the previous 12 months and its
9  anticipated manufacture and sales of spirits for the next
10  12 months. The State Commission may fine, suspend, or
11  revoke a self-distribution exemption after a hearing if it
12  finds that the exemption holder has made a material
13  misrepresentation in its application, violated a revenue
14  or alcoholic beverage law of Illinois, exceeded the
15  manufacture of 50,000 gallons of spirits, 930,000 gallons
16  of beer, or 25,000 gallons of wine in any calendar year, or
17  has become part of an affiliated group manufacturing more
18  than 50,000 gallons of spirits, 930,000 gallons of beer,
19  or 25,000 gallons of wine.
20  (E) The State Commission shall adopt rules governing
21  self-distribution exemptions consistent with this Act.
22  (F) Nothing in this paragraph (19) shall prohibit a
23  self-distribution exemption holder from entering into or
24  simultaneously having a distribution agreement with a
25  licensed Illinois importing distributor or a distributor.
26  (G) It is the intent of this paragraph (19) to promote

 

 

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  HB5504 - 20 - LRB103 38154 RPS 68287 b
1  and continue orderly markets. The General Assembly finds
2  that in order to preserve Illinois' regulatory
3  distribution system, it is necessary to create an
4  exception for smaller manufacturers in order to afford and
5  allow such smaller manufacturers of spirits access to the
6  marketplace in order to develop a customer base without
7  impairing the integrity of the 3-tier system.
8  (20)(A) A class 3 brewer licensee who must manufacture
9  less than 465,000 gallons of beer in the aggregate and not
10  more than 155,000 gallons at any single brewery premises
11  may make application to the State Commission for a
12  self-distribution exemption to allow the sale of not more
13  than 6,200 gallons of beer from each in-state or
14  out-of-state class 3 brewery premises, which shall not
15  exceed 18,600 gallons annually in the aggregate, that is
16  manufactured at a wholly owned class 3 brewer's in-state
17  or out-of-state licensed premises to retail licensees and
18  class 3 brewers and to brewers, class 1 brewers, class 2
19  brewers that, pursuant to subsection (e) of Section 6-4,
20  sell beer, cider, or both beer and cider to non-licensees
21  at their licensed breweries.
22  (B) In the application, which shall be sworn under
23  penalty of perjury, the class 3 brewer licensee shall
24  state:
25  (1) the date it was established;
26  (2) its volume of beer manufactured and sold for

 

 

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1  each year since its establishment;
2  (3) its efforts to establish distributor
3  relationships;
4  (4) that a self-distribution exemption is
5  necessary to facilitate the marketing of its beer; and
6  (5) that it will comply with the alcoholic
7  beverage and revenue laws of the United States, this
8  State, and any other state where it is licensed.
9  (C) Any application submitted shall be posted on the
10  State Commission's website at least 45 days before action
11  by the State Commission. The State Commission shall
12  approve the application for a self-distribution exemption
13  if the class 3 brewer licensee: (1) is in compliance with
14  the State, revenue, and alcoholic beverage laws; (2) is
15  not a member of any affiliated group that manufacturers,
16  directly or indirectly, more than 465,000 gallons of beer
17  per annum; (3) shall not annually manufacture for sale
18  more than 465,000 gallons of beer or more than 155,000
19  gallons at any single brewery premises; and (4) shall not
20  annually sell more than 6,200 gallons of beer from each
21  in-state or out-of-state class 3 brewery premises, and
22  shall not exceed 18,600 gallons annually in the aggregate,
23  to retail licensees and class 3 brewers and to brewers,
24  class 1 brewers, and class 2 brewers that, pursuant to
25  subsection (e) of Section 6-4 of this Act, sell beer,
26  cider, or both beer and cider to non-licensees at their

 

 

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  HB5504 - 22 - LRB103 38154 RPS 68287 b
1  breweries.
2  (D) A self-distribution exemption holder shall
3  annually certify to the State Commission its manufacture
4  of beer during the previous 12 months and its anticipated
5  manufacture and sales of beer for the next 12 months. The
6  State Commission may fine, suspend, or revoke a
7  self-distribution exemption after a hearing if it finds
8  that the exemption holder has made a material
9  misrepresentation in its application, violated a revenue
10  or alcoholic beverage law of Illinois, exceeded the
11  manufacture of 465,000 gallons of beer in any calendar
12  year or became part of an affiliated group manufacturing
13  more than 465,000 gallons of beer, or exceeded the sale to
14  retail licensees, brewers, class 1 brewers, class 2
15  brewers, and class 3 brewers of 6,200 gallons per brewery
16  location or 18,600 gallons in the aggregate.
17  (E) The State Commission may adopt rules governing
18  self-distribution exemptions consistent with this Act.
19  (F) Nothing in this paragraph shall prohibit a
20  self-distribution exemption holder from entering into or
21  simultaneously having a distribution agreement with a
22  licensed Illinois importing distributor or a distributor.
23  If a self-distribution exemption holder enters into a
24  distribution agreement and has assigned distribution
25  rights to an importing distributor or distributor, then
26  the self-distribution exemption holder's distribution

 

 

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  HB5504 - 23 - LRB103 38154 RPS 68287 b
1  rights in the assigned territories shall cease in a
2  reasonable time not to exceed 60 days.
3  (G) It is the intent of this paragraph to promote and
4  continue orderly markets. The General Assembly finds that
5  in order to preserve Illinois' regulatory distribution
6  system, it is necessary to create an exception for smaller
7  manufacturers in order to afford and allow such smaller
8  manufacturers of beer access to the marketplace in order
9  to develop a customer base without impairing the integrity
10  of the 3-tier system.
11  (21)(A) A class 3 craft distiller licensee who
12  manufactures less than 100,000 gallons of spirits in the
13  aggregate may make application to the State Commission for
14  a self-distribution exemption to allow the sale of not
15  more than 5,000 gallons of spirits that are manufactured
16  at a wholly owned class 3 craft distiller's in-state or
17  out-of-state licensed premises to retail licensees and
18  class 3 brewers and to class 3 craft distillers that,
19  pursuant to subsection (e) of Section 6-4, sell beer,
20  cider, spirits, or any combination thereof to
21  non-licensees at their licensed distilleries.
22  (B) In the application, which shall be sworn under
23  penalty of perjury, the class 3 craft distiller licensee
24  shall state: (1) the date it was established; (2) its
25  volume of spirits manufactured and sold for each year
26  since its establishment; (3) its efforts to establish

 

 

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  HB5504 - 24 - LRB103 38154 RPS 68287 b
1  distributor relationships; (4) that a self-distribution
2  exemption is necessary to facilitate the marketing of its
3  spirits; and (5) that it will comply with the alcoholic
4  beverage and revenue laws of the United States, this
5  State, and any other state where it is licensed.
6  (C) Any application submitted shall be posted on the
7  State Commission's website at least 45 days before action
8  by the State Commission. The State Commission shall
9  approve the application for a self-distribution exemption
10  if the class 3 craft distiller licensee: (1) is in
11  compliance with the State, revenue, and alcoholic beverage
12  laws; (2) is not a member of any affiliated group that
13  manufacturers, directly or indirectly, more than 100,000
14  gallons of spirits per annum; (3) shall not annually
15  manufacture for sale more than 100,000 gallons of spirits;
16  and (4) shall not annually sell more than 5,000 gallons of
17  spirits in the aggregate from the class 3 craft
18  distiller's in-state or out-of-state class 3 craft
19  distillery premises to retail licensees and class 3
20  brewers and to brewers, class 1 brewers, class 2 brewers,
21  distillers, class 1 craft distillers, and class 2 craft
22  distillers that, pursuant to subsection (e) of Section 6-4
23  of this Act, sell beer, cider, spirits, or any combination
24  thereof to non-licensees at their distilleries.
25  (D) A self-distribution exemption holder shall
26  annually certify to the State Commission its manufacture

 

 

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  HB5504 - 25 - LRB103 38154 RPS 68287 b
1  of spirits during the previous 12 months and its
2  anticipated manufacture and sales of spirits for the next
3  12 months. The State Commission may fine, suspend, or
4  revoke a self-distribution exemption after a hearing if it
5  finds that the exemption holder has made a material
6  misrepresentation in its application, violated a revenue
7  or alcoholic beverage law of Illinois, exceeded the
8  manufacture of 100,000 gallons of spirits in any calendar
9  year or became part of an affiliated group manufacturing
10  more than 100,000 gallons of spirits, or exceeded the sale
11  to retail licensees, brewers, class 1 brewers, class 2
12  brewers, class 3 brewers, distillers, class 1 craft
13  distillers, and class 2 craft distillers of 5,000 gallons
14  in the aggregate.
15  (E) The State Commission may adopt rules governing
16  self-distribution exemptions consistent with this Act.
17  (F) Nothing in this paragraph shall prohibit a
18  self-distribution exemption holder from entering into or
19  simultaneously having a distribution agreement with a
20  licensed Illinois importing distributor or a distributor.
21  (G) It is the intent of this paragraph to promote and
22  continue orderly markets. The General Assembly finds that
23  in order to preserve Illinois' regulatory distribution
24  system, it is necessary to create an exception for smaller
25  manufacturers in order to afford and allow such smaller
26  manufacturers of spirits access to the marketplace in

 

 

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  HB5504 - 26 - LRB103 38154 RPS 68287 b
1  order to develop a customer base without impairing the
2  integrity of the 3-tier system.
3  (b) On or before April 30, 1999, the Commission shall
4  present a written report to the Governor and the General
5  Assembly that shall be based on a study of the impact of Public
6  Act 90-739 on the business of soliciting, selling, and
7  shipping alcoholic liquor from outside of this State directly
8  to residents of this State.
9  As part of its report, the Commission shall provide the
10  following information:
11  (i) the amount of State excise and sales tax revenues
12  generated as a result of Public Act 90-739;
13  (ii) the amount of licensing fees received as a result
14  of Public Act 90-739;
15  (iii) the number of reported violations, the number of
16  cease and desist notices issued by the Commission, the
17  number of notices of violations issued to the Department
18  of Revenue, and the number of notices and complaints of
19  violations to law enforcement officials.
20  (Source: P.A. 101-37, eff. 7-3-19; 101-81, eff. 7-12-19;
21  101-482, eff. 8-23-19; 102-442, eff. 8-20-21; 102-558, eff.
22  8-20-21; 102-813, eff. 5-13-22.)
23  (235 ILCS 5/5-1) (from Ch. 43, par. 115)
24  Sec. 5-1. Licenses issued by the Illinois Liquor Control
25  Commission shall be of the following classes:

 

 

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1  (a) Manufacturer's license - Class 1. Distiller, Class 2.
2  Rectifier, Class 3. Brewer, Class 4. First Class Wine
3  Manufacturer, Class 5. Second Class Wine Manufacturer, Class
4  6. First Class Winemaker, Class 7. Second Class Winemaker,
5  Class 8. Limited Wine Manufacturer, Class 9. Craft Distiller,
6  Class 10. Class 1 Craft Distiller, Class 11. Class 2 Craft
7  Distiller, Class 12. Class 1 Brewer, Class 13. Class 2 Brewer,
8  Class 14. Class 3 Brewer, Class 15. Class 3 Craft Distiller,
9  (b) Distributor's license,
10  (c) Importing Distributor's license,
11  (d) Retailer's license,
12  (e) Special Event Retailer's license (not-for-profit),
13  (f) Railroad license,
14  (g) Boat license,
15  (h) Non-Beverage User's license,
16  (i) Wine-maker's premises license,
17  (j) Airplane license,
18  (k) Foreign importer's license,
19  (l) Broker's license,
20  (m) Non-resident dealer's license,
21  (n) Brew Pub license,
22  (o) Auction liquor license,
23  (p) Caterer retailer license,
24  (q) Special use permit license,
25  (r) Winery shipper's license,
26  (s) Craft distiller tasting permit,

 

 

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1  (t) Brewer warehouse permit,
2  (u) Distilling pub license,
3  (v) Craft distiller warehouse permit,
4  (w) Beer showcase permit, .
5  (x) Spirits showcase permit.
6  No person, firm, partnership, corporation, or other legal
7  business entity that is engaged in the manufacturing of wine
8  may concurrently obtain and hold a wine-maker's license and a
9  wine manufacturer's license.
10  (a) A manufacturer's license shall allow the manufacture,
11  importation in bulk, storage, distribution and sale of
12  alcoholic liquor to persons without the State, as may be
13  permitted by law and to licensees in this State as follows:
14  Class 1. A Distiller may make sales and deliveries of
15  alcoholic liquor to distillers, rectifiers, importing
16  distributors, distributors and non-beverage users and to no
17  other licensees.
18  Class 2. A Rectifier, who is not a distiller, as defined
19  herein, may make sales and deliveries of alcoholic liquor to
20  rectifiers, importing distributors, distributors, retailers
21  and non-beverage users and to no other licensees.
22  Class 3. A Brewer may make sales and deliveries of beer to
23  importing distributors and distributors and may make sales as
24  authorized under subsection (e) of Section 6-4 of this Act,
25  including any alcoholic liquor that subsection (e) of Section
26  6-4 authorizes a brewer to sell in its original package only to

 

 

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1  a non-licensee for pick-up by a non-licensee either within the
2  interior of the brewery premises or at outside of the brewery
3  premises at a curb-side or parking lot adjacent to the brewery
4  premises, subject to any local ordinance.
5  Class 4. A first class wine-manufacturer may make sales
6  and deliveries of up to 50,000 gallons of wine to
7  manufacturers, importing distributors and distributors, and to
8  no other licensees. If a first-class wine-manufacturer
9  manufactures beer, it shall also obtain and shall only be
10  eligible for, in addition to any current license, a class 1
11  brewer license, shall not manufacture more than 930,000
12  gallons of beer per year, and shall not be a member of or
13  affiliated with, directly or indirectly, a manufacturer that
14  produces more than 930,000 gallons of beer per year. If the
15  first-class wine-manufacturer manufactures spirits, it shall
16  also obtain and shall only be eligible for, in addition to any
17  current license, a class 1 craft distiller license, shall not
18  manufacture more than 50,000 gallons of spirits per year, and
19  shall not be a member of or affiliated with, directly or
20  indirectly, a manufacturer that produces more than 50,000
21  gallons of spirits per year. A first-class wine-manufacturer
22  shall be permitted to sell wine manufactured at the
23  first-class wine-manufacturer premises to non-licensees.
24  Class 5. A second class Wine manufacturer may make sales
25  and deliveries of more than 50,000 gallons of wine to
26  manufacturers, importing distributors and distributors and to

 

 

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

 

 

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1  wine manufactured at the first-class wine-maker premises to
2  non-licensees.
3  Class 7. A second-class wine-maker's license shall allow
4  the manufacture of up to 150,000 gallons of wine per year, and
5  the storage and sale of such wine to distributors in this State
6  and to persons without the State, as may be permitted by law. A
7  person who, prior to June 1, 2008 (the effective date of Public
8  Act 95-634), is a holder of a second-class wine-maker's
9  license and annually produces more than 25,000 gallons of its
10  own wine and who distributes its wine to licensed retailers
11  shall cease this practice on or before July 1, 2008 in
12  compliance with Public Act 95-634. If a second-class
13  wine-maker manufactures beer, it shall also obtain and shall
14  only be eligible for, in addition to any current license, a
15  class 2 brewer license, shall not manufacture more than
16  3,720,000 gallons of beer per year, and shall not be a member
17  of or affiliated with, directly or indirectly, a manufacturer
18  that produces more than 3,720,000 gallons of beer per year. If
19  a second-class wine-maker manufactures spirits, it shall also
20  obtain and shall only be eligible for, in addition to any
21  current license, a class 2 craft distiller license, shall not
22  manufacture more than 100,000 gallons of spirits per year, and
23  shall not be a member of or affiliated with, directly or
24  indirectly, a manufacturer that produces more than 100,000
25  gallons of spirits per year.
26  Class 8. A limited wine-manufacturer may make sales and

 

 

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1  deliveries not to exceed 40,000 gallons of wine per year to
2  distributors, and to non-licensees in accordance with the
3  provisions of this Act.
4  Class 9. A craft distiller license, which may only be held
5  by a class 1 craft distiller licensee or class 2 craft
6  distiller licensee but not held by both a class 1 craft
7  distiller licensee and a class 2 craft distiller licensee,
8  shall grant all rights conveyed by either: (i) a class 1 craft
9  distiller license if the craft distiller holds a class 1 craft
10  distiller license; or (ii) a class 2 craft distiller licensee
11  if the craft distiller holds a class 2 craft distiller
12  license.
13  Class 10. A class 1 craft distiller license, which may
14  only be issued to a licensed craft distiller or licensed
15  non-resident dealer, shall allow the manufacture of up to
16  50,000 gallons of spirits per year provided that the class 1
17  craft distiller licensee does not manufacture more than a
18  combined 50,000 gallons of spirits per year and is not a member
19  of or affiliated with, directly or indirectly, a manufacturer
20  that produces more than 50,000 gallons of spirits per year. If
21  a class 1 craft distiller manufactures beer, it shall also
22  obtain and shall only be eligible for, in addition to any
23  current license, a class 1 brewer license, shall not
24  manufacture more than 930,000 gallons of beer per year, and
25  shall not be a member of or affiliated with, directly or
26  indirectly, a manufacturer that produces more than 930,000

 

 

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  HB5504 - 33 - LRB103 38154 RPS 68287 b
1  gallons of beer per year. If a class 1 craft distiller
2  manufactures wine, it shall also obtain and shall only be
3  eligible for, in addition to any current license, a
4  first-class wine-manufacturer license or a first-class
5  wine-maker's license, shall not manufacture more than 50,000
6  gallons of wine per year, and shall not be a member of or
7  affiliated with, directly or indirectly, a manufacturer that
8  produces more than 50,000 gallons of wine per year. A class 1
9  craft distiller licensee may make sales and deliveries to
10  importing distributors and distributors and to retail
11  licensees in accordance with the conditions set forth in
12  paragraph (19) of subsection (a) of Section 3-12 of this Act.
13  However, the aggregate amount of spirits sold to non-licensees
14  and sold or delivered to retail licensees may not exceed 5,000
15  gallons per year.
16  A class 1 craft distiller licensee may sell up to 5,000
17  gallons of such spirits to non-licensees to the extent
18  permitted by any exemption approved by the State Commission
19  pursuant to Section 6-4 of this Act. A class 1 craft distiller
20  license holder may store such spirits at a non-contiguous
21  licensed location, but at no time shall a class 1 craft
22  distiller license holder directly or indirectly produce in the
23  aggregate more than 50,000 gallons of spirits per year.
24  A class 1 craft distiller licensee may hold more than one
25  class 1 craft distiller's license. However, a class 1 craft
26  distiller that holds more than one class 1 craft distiller

 

 

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  HB5504 - 34 - LRB103 38154 RPS 68287 b
1  license shall not manufacture, in the aggregate, more than
2  50,000 gallons of spirits by distillation per year and shall
3  not sell, in the aggregate, more than 5,000 gallons of such
4  spirits to non-licensees in accordance with an exemption
5  approved by the State Commission pursuant to Section 6-4 of
6  this Act.
7  Class 11. A class 2 craft distiller license, which may
8  only be issued to a licensed craft distiller or licensed
9  non-resident dealer, shall allow the manufacture of up to
10  100,000 gallons of spirits per year provided that the class 2
11  craft distiller licensee does not manufacture more than a
12  combined 100,000 gallons of spirits per year and is not a
13  member of or affiliated with, directly or indirectly, a
14  manufacturer that produces more than 100,000 gallons of
15  spirits per year. If a class 2 craft distiller manufactures
16  beer, it shall also obtain and shall only be eligible for, in
17  addition to any current license, a class 2 brewer license,
18  shall not manufacture more than 3,720,000 gallons of beer per
19  year, and shall not be a member of or affiliated with, directly
20  or indirectly, a manufacturer that produces more than
21  3,720,000 gallons of beer per year. If a class 2 craft
22  distiller manufactures wine, it shall also obtain and shall
23  only be eligible for, in addition to any current license, a
24  second-class wine-maker's license, shall not manufacture more
25  than 150,000 gallons of wine per year, and shall not be a
26  member of or affiliated with, directly or indirectly, a

 

 

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1  manufacturer that produces more than 150,000 gallons of wine
2  per year. A class 2 craft distiller licensee may make sales and
3  deliveries to importing distributors and distributors, but
4  shall not make sales or deliveries to any other licensee. If
5  the State Commission provides prior approval, a class 2 craft
6  distiller licensee may annually transfer up to 100,000 gallons
7  of spirits manufactured by that class 2 craft distiller
8  licensee to the premises of a licensed class 2 craft distiller
9  wholly owned and operated by the same licensee. A class 2 craft
10  distiller may transfer spirits to a distilling pub wholly
11  owned and operated by the class 2 craft distiller subject to
12  the following limitations and restrictions: (i) the transfer
13  shall not annually exceed more than 5,000 gallons; (ii) the
14  annual amount transferred shall reduce the distilling pub's
15  annual permitted production limit; (iii) all spirits
16  transferred shall be subject to Article VIII of this Act; (iv)
17  a written record shall be maintained by the distiller and
18  distilling pub specifying the amount, date of delivery, and
19  receipt of the product by the distilling pub; and (v) the
20  distilling pub shall be located no farther than 80 miles from
21  the class 2 craft distiller's licensed location.
22  A class 2 craft distiller shall, prior to transferring
23  spirits to a distilling pub wholly owned by the class 2 craft
24  distiller, furnish a written notice to the State Commission of
25  intent to transfer spirits setting forth the name and address
26  of the distilling pub and shall annually submit to the State

 

 

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1  Commission a verified report identifying the total gallons of
2  spirits transferred to the distilling pub wholly owned by the
3  class 2 craft distiller.
4  A class 2 craft distiller license holder may store such
5  spirits at a non-contiguous licensed location, but at no time
6  shall a class 2 craft distiller license holder directly or
7  indirectly produce in the aggregate more than 100,000 gallons
8  of spirits per year.
9  Class 12. A class 1 brewer license, which may only be
10  issued to a licensed brewer or licensed non-resident dealer,
11  shall allow the manufacture of up to 930,000 gallons of beer
12  per year provided that the class 1 brewer licensee does not
13  manufacture more than a combined 930,000 gallons of beer per
14  year and is not a member of or affiliated with, directly or
15  indirectly, a manufacturer that produces more than 930,000
16  gallons of beer per year. If a class 1 brewer manufactures
17  spirits, it shall also obtain and shall only be eligible for,
18  in addition to any current license, a class 1 craft distiller
19  license, shall not manufacture more than 50,000 gallons of
20  spirits per year, and shall not be a member of or affiliated
21  with, directly or indirectly, a manufacturer that produces
22  more than 50,000 gallons of spirits per year. If a class 1
23  craft brewer manufactures wine, it shall also obtain and shall
24  only be eligible for, in addition to any current license, a
25  first-class wine-manufacturer license or a first-class
26  wine-maker's license, shall not manufacture more than 50,000

 

 

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  HB5504 - 37 - LRB103 38154 RPS 68287 b
1  gallons of wine per year, and shall not be a member of or
2  affiliated with, directly or indirectly, a manufacturer that
3  produces more than 50,000 gallons of wine per year. A class 1
4  brewer licensee may make sales and deliveries to importing
5  distributors and distributors and to retail licensees in
6  accordance with the conditions set forth in paragraph (18) of
7  subsection (a) of Section 3-12 of this Act. If the State
8  Commission provides prior approval, a class 1 brewer may
9  annually transfer up to 930,000 gallons of beer manufactured
10  by that class 1 brewer to the premises of a licensed class 1
11  brewer wholly owned and operated by the same licensee.
12  Class 13. A class 2 brewer license, which may only be
13  issued to a licensed brewer or licensed non-resident dealer,
14  shall allow the manufacture of up to 3,720,000 gallons of beer
15  per year provided that the class 2 brewer licensee does not
16  manufacture more than a combined 3,720,000 gallons of beer per
17  year and is not a member of or affiliated with, directly or
18  indirectly, a manufacturer that produces more than 3,720,000
19  gallons of beer per year. If a class 2 brewer manufactures
20  spirits, it shall also obtain and shall only be eligible for,
21  in addition to any current license, a class 2 craft distiller
22  license, shall not manufacture more than 100,000 gallons of
23  spirits per year, and shall not be a member of or affiliated
24  with, directly or indirectly, a manufacturer that produces
25  more than 100,000 gallons of spirits per year. If a class 2
26  craft distiller manufactures wine, it shall also obtain and

 

 

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  HB5504 - 38 - LRB103 38154 RPS 68287 b
1  shall only be eligible for, in addition to any current
2  license, a second-class wine-maker's license, shall not
3  manufacture more than 150,000 gallons of wine per year, and
4  shall not be a member of or affiliated with, directly or
5  indirectly, a manufacturer that produces more than 150,000
6  gallons of wine a year. A class 2 brewer licensee may make
7  sales and deliveries to importing distributors and
8  distributors, but shall not make sales or deliveries to any
9  other licensee. If the State Commission provides prior
10  approval, a class 2 brewer licensee may annually transfer up
11  to 3,720,000 gallons of beer manufactured by that class 2
12  brewer licensee to the premises of a licensed class 2 brewer
13  wholly owned and operated by the same licensee.
14  A class 2 brewer may transfer beer to a brew pub wholly
15  owned and operated by the class 2 brewer subject to the
16  following limitations and restrictions: (i) the transfer shall
17  not annually exceed more than 31,000 gallons; (ii) the annual
18  amount transferred shall reduce the brew pub's annual
19  permitted production limit; (iii) all beer transferred shall
20  be subject to Article VIII of this Act; (iv) a written record
21  shall be maintained by the brewer and brew pub specifying the
22  amount, date of delivery, and receipt of the product by the
23  brew pub; and (v) the brew pub shall be located no farther than
24  80 miles from the class 2 brewer's licensed location.
25  A class 2 brewer shall, prior to transferring beer to a
26  brew pub wholly owned by the class 2 brewer, furnish a written

 

 

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  HB5504 - 39 - LRB103 38154 RPS 68287 b
1  notice to the State Commission of intent to transfer beer
2  setting forth the name and address of the brew pub and shall
3  annually submit to the State Commission a verified report
4  identifying the total gallons of beer transferred to the brew
5  pub wholly owned by the class 2 brewer.
6  Class 14. A class 3 brewer license, which may be issued to
7  a brewer or a non-resident dealer, shall allow the manufacture
8  of no more than 465,000 gallons of beer per year and no more
9  than 155,000 gallons at a single brewery premises, and shall
10  allow the sale of no more than 6,200 gallons of beer from each
11  in-state or out-of-state class 3 brewery premises, or 18,600
12  gallons in the aggregate, to retail licensees, class 1
13  brewers, class 2 brewers, and class 3 brewers as long as the
14  class 3 brewer licensee does not manufacture more than a
15  combined 465,000 gallons of beer per year and is not a member
16  of or affiliated with, directly or indirectly, a manufacturer
17  that produces more than 465,000 gallons of beer per year to
18  make sales to importing distributors, distributors, retail
19  licensees, brewers, class 1 brewers, class 2 brewers, and
20  class 3 brewers in accordance with the conditions set forth in
21  paragraph (20) of subsection (a) of Section 3-12. If the State
22  Commission provides prior approval, a class 3 brewer may
23  annually transfer up to 155,000 gallons of beer manufactured
24  by that class 3 brewer to the premises of a licensed class 3
25  brewer wholly owned and operated by the same licensee. A class
26  3 brewer shall manufacture beer at the brewer's class 3

 

 

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  HB5504 - 40 - LRB103 38154 RPS 68287 b
1  designated licensed premises, and may sell beer as otherwise
2  provided in this Act.
3  Class 15. A class 3 craft distiller license, which may be
4  issued to a distiller or a non-resident dealer, shall allow
5  the manufacture of no more than 100,000 gallons of spirits per
6  year and shall allow the sale of no more than 5,000 gallons of
7  spirits in the aggregate from the class 3 craft distiller's
8  in-state or out-of-state class 3 craft distillery premises to
9  retail licensees, class 3 brewers, and class 3 craft
10  distillers as long as the class 3 craft distiller licensee
11  does not manufacture more than a combined 100,000 gallons of
12  spirits per year and is not a member of or affiliated with,
13  directly or indirectly, a manufacturer that produces more than
14  100,000 gallons of spirits per year and to make sales to
15  importing distributors, distributors, retail licensees, class
16  3 brewers, and class 3 craft distillers in accordance with the
17  conditions set forth in paragraph (21) of subsection (a) of
18  Section 3-12. If the State Commission provides prior approval,
19  a class 3 craft distiller may annually transfer up to 5,000
20  gallons of spirits manufactured by that class 3 craft
21  distiller to the premises of a licensed class 3 craft
22  distiller wholly owned and operated by the same licensee. A
23  class 3 craft distiller shall manufacture spirits at the
24  distiller's class 3 designated licensed premises and may sell
25  spirits as otherwise provided in this Act.
26  (a-1) A manufacturer which is licensed in this State to

 

 

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  HB5504 - 41 - LRB103 38154 RPS 68287 b
1  make sales or deliveries of alcoholic liquor to licensed
2  distributors or importing distributors and which enlists
3  agents, representatives, or individuals acting on its behalf
4  who contact licensed retailers on a regular and continual
5  basis in this State must register those agents,
6  representatives, or persons acting on its behalf with the
7  State Commission.
8  Registration of agents, representatives, or persons acting
9  on behalf of a manufacturer is fulfilled by submitting a form
10  to the Commission. The form shall be developed by the
11  Commission and shall include the name and address of the
12  applicant, the name and address of the manufacturer he or she
13  represents, the territory or areas assigned to sell to or
14  discuss pricing terms of alcoholic liquor, and any other
15  questions deemed appropriate and necessary. All statements in
16  the forms required to be made by law or by rule shall be deemed
17  material, and any person who knowingly misstates any material
18  fact under oath in an application is guilty of a Class B
19  misdemeanor. Fraud, misrepresentation, false statements,
20  misleading statements, evasions, or suppression of material
21  facts in the securing of a registration are grounds for
22  suspension or revocation of the registration. The State
23  Commission shall post a list of registered agents on the
24  Commission's website.
25  (b) A distributor's license shall allow (i) the wholesale
26  purchase and storage of alcoholic liquors and sale of

 

 

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  HB5504 - 42 - LRB103 38154 RPS 68287 b
1  alcoholic liquors to licensees in this State and to persons
2  without the State, as may be permitted by law; (ii) the sale of
3  beer, cider, mead, or any combination thereof to brewers,
4  class 1 brewers, and class 2 brewers that, pursuant to
5  subsection (e) of Section 6-4 of this Act, sell beer, cider,
6  mead, or any combination thereof to non-licensees at their
7  breweries; (iii) the sale of vermouth to class 1 craft
8  distillers and class 2 craft distillers that, pursuant to
9  subsection (e) of Section 6-4 of this Act, sell spirits,
10  vermouth, or both spirits and vermouth to non-licensees at
11  their distilleries; or (iv) as otherwise provided in this Act.
12  No person licensed as a distributor shall be granted a
13  non-resident dealer's license.
14  (c) An importing distributor's license may be issued to
15  and held by those only who are duly licensed distributors,
16  upon the filing of an application by a duly licensed
17  distributor, with the Commission and the Commission shall,
18  without the payment of any fee, immediately issue such
19  importing distributor's license to the applicant, which shall
20  allow the importation of alcoholic liquor by the licensee into
21  this State from any point in the United States outside this
22  State, and the purchase of alcoholic liquor in barrels, casks
23  or other bulk containers and the bottling of such alcoholic
24  liquors before resale thereof, but all bottles or containers
25  so filled shall be sealed, labeled, stamped and otherwise made
26  to comply with all provisions, rules and regulations governing

 

 

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  HB5504 - 43 - LRB103 38154 RPS 68287 b
1  manufacturers in the preparation and bottling of alcoholic
2  liquors. The importing distributor's license shall permit such
3  licensee to purchase alcoholic liquor from Illinois licensed
4  non-resident dealers and foreign importers only. No person
5  licensed as an importing distributor shall be granted a
6  non-resident dealer's license.
7  (d) A retailer's license shall allow the licensee to sell
8  and offer for sale at retail, only in the premises specified in
9  the license, alcoholic liquor for use or consumption, but not
10  for resale in any form. Except as provided in Section 6-16,
11  6-29, or 6-29.1, nothing in this Act shall deny, limit,
12  remove, or restrict the ability of a holder of a retailer's
13  license to transfer or ship alcoholic liquor to the purchaser
14  for use or consumption subject to any applicable local law or
15  ordinance. For the purposes of this Section, "shipping" means
16  the movement of alcoholic liquor from a licensed retailer to a
17  consumer via a common carrier. Except as provided in Section
18  6-16, 6-29, or 6-29.1, nothing in this Act shall deny, limit,
19  remove, or restrict the ability of a holder of a retailer's
20  license to deliver alcoholic liquor to the purchaser for use
21  or consumption. The delivery shall be made only within 12
22  hours from the time the alcoholic liquor leaves the licensed
23  premises of the retailer for delivery. For the purposes of
24  this Section, "delivery" means the movement of alcoholic
25  liquor purchased from a licensed retailer to a consumer
26  through the following methods:

 

 

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  HB5504 - 44 - LRB103 38154 RPS 68287 b
1  (1) delivery within licensed retailer's parking lot,
2  including curbside, for pickup by the consumer;
3  (2) delivery by an owner, officer, director,
4  shareholder, or employee of the licensed retailer; or
5  (3) delivery by a third-party contractor, independent
6  contractor, or agent with whom the licensed retailer has
7  contracted to make deliveries of alcoholic liquors.
8  Under subsection (1), (2), or (3), delivery shall not
9  include the use of common carriers.
10  Any retail license issued to a manufacturer shall only
11  permit the manufacturer to sell beer at retail on the premises
12  actually occupied by the manufacturer. For the purpose of
13  further describing the type of business conducted at a retail
14  licensed premises, a retailer's licensee may be designated by
15  the State Commission as (i) an on premise consumption
16  retailer, (ii) an off premise sale retailer, or (iii) a
17  combined on premise consumption and off premise sale retailer.
18  Except for a municipality with a population of more than
19  1,000,000 inhabitants, a home rule unit may not regulate the
20  delivery of alcoholic liquor inconsistent with this
21  subsection. This paragraph is a limitation under subsection
22  (i) of Section 6 of Article VII of the Illinois Constitution on
23  the concurrent exercise by home rule units of powers and
24  functions exercised by the State. A non-home rule municipality
25  may not regulate the delivery of alcoholic liquor inconsistent
26  with this subsection.

 

 

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  HB5504 - 45 - LRB103 38154 RPS 68287 b
1  Notwithstanding any other provision of this subsection
2  (d), a retail licensee may sell alcoholic liquors to a special
3  event retailer licensee for resale to the extent permitted
4  under subsection (e).
5  (e) A special event retailer's license (not-for-profit)
6  shall permit the licensee to purchase alcoholic liquors from
7  an Illinois licensed distributor (unless the licensee
8  purchases less than $500 of alcoholic liquors for the special
9  event, in which case the licensee may purchase the alcoholic
10  liquors from a licensed retailer) and shall allow the licensee
11  to sell and offer for sale, at retail, alcoholic liquors for
12  use or consumption, but not for resale in any form and only at
13  the location and on the specific dates designated for the
14  special event in the license. An applicant for a special event
15  retailer license must (i) furnish with the application: (A) a
16  resale number issued under Section 2c of the Retailers'
17  Occupation Tax Act or evidence that the applicant is
18  registered under Section 2a of the Retailers' Occupation Tax
19  Act, (B) a current, valid exemption identification number
20  issued under Section 1g of the Retailers' Occupation Tax Act,
21  and a certification to the Commission that the purchase of
22  alcoholic liquors will be a tax-exempt purchase, or (C) a
23  statement that the applicant is not registered under Section
24  2a of the Retailers' Occupation Tax Act, does not hold a resale
25  number under Section 2c of the Retailers' Occupation Tax Act,
26  and does not hold an exemption number under Section 1g of the

 

 

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  HB5504 - 46 - LRB103 38154 RPS 68287 b
1  Retailers' Occupation Tax Act, in which event the Commission
2  shall set forth on the special event retailer's license a
3  statement to that effect; (ii) submit with the application
4  proof satisfactory to the State Commission that the applicant
5  will provide dram shop liability insurance in the maximum
6  limits; and (iii) show proof satisfactory to the State
7  Commission that the applicant has obtained local authority
8  approval.
9  Nothing in this Act prohibits an Illinois licensed
10  distributor from offering credit or a refund for unused,
11  salable alcoholic liquors to a holder of a special event
12  retailer's license or the special event retailer's licensee
13  from accepting the credit or refund of alcoholic liquors at
14  the conclusion of the event specified in the license.
15  (f) A railroad license shall permit the licensee to import
16  alcoholic liquors into this State from any point in the United
17  States outside this State and to store such alcoholic liquors
18  in this State; to make wholesale purchases of alcoholic
19  liquors directly from manufacturers, foreign importers,
20  distributors and importing distributors from within or outside
21  this State; and to store such alcoholic liquors in this State;
22  provided that the above powers may be exercised only in
23  connection with the importation, purchase or storage of
24  alcoholic liquors to be sold or dispensed on a club, buffet,
25  lounge or dining car operated on an electric, gas or steam
26  railway in this State; and provided further, that railroad

 

 

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  HB5504 - 47 - LRB103 38154 RPS 68287 b
1  licensees exercising the above powers shall be subject to all
2  provisions of Article VIII of this Act as applied to importing
3  distributors. A railroad license shall also permit the
4  licensee to sell or dispense alcoholic liquors on any club,
5  buffet, lounge or dining car operated on an electric, gas or
6  steam railway regularly operated by a common carrier in this
7  State, but shall not permit the sale for resale of any
8  alcoholic liquors to any licensee within this State. A license
9  shall be obtained for each car in which such sales are made.
10  (g) A boat license shall allow the sale of alcoholic
11  liquor in individual drinks, on any passenger boat regularly
12  operated as a common carrier on navigable waters in this State
13  or on any riverboat operated under the Illinois Gambling Act,
14  which boat or riverboat maintains a public dining room or
15  restaurant thereon.
16  (h) A non-beverage user's license shall allow the licensee
17  to purchase alcoholic liquor from a licensed manufacturer or
18  importing distributor, without the imposition of any tax upon
19  the business of such licensed manufacturer or importing
20  distributor as to such alcoholic liquor to be used by such
21  licensee solely for the non-beverage purposes set forth in
22  subsection (a) of Section 8-1 of this Act, and such licenses
23  shall be divided and classified and shall permit the purchase,
24  possession and use of limited and stated quantities of
25  alcoholic liquor as follows:
26  Class 1, not to exceed ......................... 500 gallons

 

 

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  HB5504 - 48 - LRB103 38154 RPS 68287 b
1  Class 2, not to exceed ....................... 1,000 gallons
2  Class 3, not to exceed ....................... 5,000 gallons
3  Class 4, not to exceed ...................... 10,000 gallons
4  Class 5, not to exceed ....................... 50,000 gallons
5  (i) A wine-maker's premises license shall allow a licensee
6  that concurrently holds a first-class wine-maker's license to
7  sell and offer for sale at retail in the premises specified in
8  such license not more than 50,000 gallons of the first-class
9  wine-maker's wine that is made at the first-class wine-maker's
10  licensed premises per year for use or consumption, but not for
11  resale in any form. A wine-maker's premises license shall
12  allow a licensee who concurrently holds a second-class
13  wine-maker's license to sell and offer for sale at retail in
14  the premises specified in such license up to 100,000 gallons
15  of the second-class wine-maker's wine that is made at the
16  second-class wine-maker's licensed premises per year for use
17  or consumption but not for resale in any form. A first-class
18  wine-maker that concurrently holds a class 1 brewer license or
19  a class 1 craft distiller license shall not be eligible to hold
20  a wine-maker's premises license. A wine-maker's premises
21  license shall allow a licensee that concurrently holds a
22  first-class wine-maker's license or a second-class
23  wine-maker's license to sell and offer for sale at retail at
24  the premises specified in the wine-maker's premises license,
25  for use or consumption but not for resale in any form, any
26  beer, wine, and spirits purchased from a licensed distributor.

 

 

  HB5504 - 48 - LRB103 38154 RPS 68287 b


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  HB5504 - 49 - LRB103 38154 RPS 68287 b
1  Upon approval from the State Commission, a wine-maker's
2  premises license shall allow the licensee to sell and offer
3  for sale at (i) the wine-maker's licensed premises and (ii) at
4  up to 2 additional locations for use and consumption and not
5  for resale. Each location shall require additional licensing
6  per location as specified in Section 5-3 of this Act. A
7  wine-maker's premises licensee shall secure liquor liability
8  insurance coverage in an amount at least equal to the maximum
9  liability amounts set forth in subsection (a) of Section 6-21
10  of this Act.
11  (j) An airplane license shall permit the licensee to
12  import alcoholic liquors into this State from any point in the
13  United States outside this State and to store such alcoholic
14  liquors in this State; to make wholesale purchases of
15  alcoholic liquors directly from manufacturers, foreign
16  importers, distributors and importing distributors from within
17  or outside this State; and to store such alcoholic liquors in
18  this State; provided that the above powers may be exercised
19  only in connection with the importation, purchase or storage
20  of alcoholic liquors to be sold or dispensed on an airplane;
21  and provided further, that airplane licensees exercising the
22  above powers shall be subject to all provisions of Article
23  VIII of this Act as applied to importing distributors. An
24  airplane licensee shall also permit the sale or dispensing of
25  alcoholic liquors on any passenger airplane regularly operated
26  by a common carrier in this State, but shall not permit the

 

 

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  HB5504 - 50 - LRB103 38154 RPS 68287 b
1  sale for resale of any alcoholic liquors to any licensee
2  within this State. A single airplane license shall be required
3  of an airline company if liquor service is provided on board
4  aircraft in this State. The annual fee for such license shall
5  be as determined in Section 5-3.
6  (k) A foreign importer's license shall permit such
7  licensee to purchase alcoholic liquor from Illinois licensed
8  non-resident dealers only, and to import alcoholic liquor
9  other than in bulk from any point outside the United States and
10  to sell such alcoholic liquor to Illinois licensed importing
11  distributors and to no one else in Illinois; provided that (i)
12  the foreign importer registers with the State Commission every
13  brand of alcoholic liquor that it proposes to sell to Illinois
14  licensees during the license period, (ii) the foreign importer
15  complies with all of the provisions of Section 6-9 of this Act
16  with respect to registration of such Illinois licensees as may
17  be granted the right to sell such brands at wholesale, and
18  (iii) the foreign importer complies with the provisions of
19  Sections 6-5 and 6-6 of this Act to the same extent that these
20  provisions apply to manufacturers.
21  (l) (i) A broker's license shall be required of all
22  persons who solicit orders for, offer to sell or offer to
23  supply alcoholic liquor to retailers in the State of Illinois,
24  or who offer to retailers to ship or cause to be shipped or to
25  make contact with distillers, craft distillers, rectifiers,
26  brewers or manufacturers or any other party within or without

 

 

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  HB5504 - 51 - LRB103 38154 RPS 68287 b
1  the State of Illinois in order that alcoholic liquors be
2  shipped to a distributor, importing distributor or foreign
3  importer, whether such solicitation or offer is consummated
4  within or without the State of Illinois.
5  No holder of a retailer's license issued by the Illinois
6  Liquor Control Commission shall purchase or receive any
7  alcoholic liquor, the order for which was solicited or offered
8  for sale to such retailer by a broker unless the broker is the
9  holder of a valid broker's license.
10  The broker shall, upon the acceptance by a retailer of the
11  broker's solicitation of an order or offer to sell or supply or
12  deliver or have delivered alcoholic liquors, promptly forward
13  to the Illinois Liquor Control Commission a notification of
14  said transaction in such form as the Commission may by
15  regulations prescribe.
16  (ii) A broker's license shall be required of a person
17  within this State, other than a retail licensee, who, for a fee
18  or commission, promotes, solicits, or accepts orders for
19  alcoholic liquor, for use or consumption and not for resale,
20  to be shipped from this State and delivered to residents
21  outside of this State by an express company, common carrier,
22  or contract carrier. This Section does not apply to any person
23  who promotes, solicits, or accepts orders for wine as
24  specifically authorized in Section 6-29 of this Act.
25  A broker's license under this subsection (l) shall not
26  entitle the holder to buy or sell any alcoholic liquors for his

 

 

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  HB5504 - 52 - LRB103 38154 RPS 68287 b
1  own account or to take or deliver title to such alcoholic
2  liquors.
3  This subsection (l) shall not apply to distributors,
4  employees of distributors, or employees of a manufacturer who
5  has registered the trademark, brand or name of the alcoholic
6  liquor pursuant to Section 6-9 of this Act, and who regularly
7  sells such alcoholic liquor in the State of Illinois only to
8  its registrants thereunder.
9  Any agent, representative, or person subject to
10  registration pursuant to subsection (a-1) of this Section
11  shall not be eligible to receive a broker's license.
12  (m) A non-resident dealer's license shall permit such
13  licensee to ship into and warehouse alcoholic liquor into this
14  State from any point outside of this State, and to sell such
15  alcoholic liquor to Illinois licensed foreign importers and
16  importing distributors and to no one else in this State;
17  provided that (i) said non-resident dealer shall register with
18  the Illinois Liquor Control Commission each and every brand of
19  alcoholic liquor which it proposes to sell to Illinois
20  licensees during the license period, (ii) it shall comply with
21  all of the provisions of Section 6-9 hereof with respect to
22  registration of such Illinois licensees as may be granted the
23  right to sell such brands at wholesale by duly filing such
24  registration statement, thereby authorizing the non-resident
25  dealer to proceed to sell such brands at wholesale, and (iii)
26  the non-resident dealer shall comply with the provisions of

 

 

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  HB5504 - 53 - LRB103 38154 RPS 68287 b
1  Sections 6-5 and 6-6 of this Act to the same extent that these
2  provisions apply to manufacturers. No person licensed as a
3  non-resident dealer shall be granted a distributor's or
4  importing distributor's license.
5  (n) A brew pub license shall allow the licensee to only (i)
6  manufacture up to 155,000 gallons of beer per year only on the
7  premises specified in the license, (ii) make sales of the beer
8  manufactured on the premises or, with the approval of the
9  Commission, beer manufactured on another brew pub licensed
10  premises that is wholly owned and operated by the same
11  licensee to importing distributors, distributors, and to
12  non-licensees for use and consumption, (iii) store the beer
13  upon the premises, (iv) sell and offer for sale at retail from
14  the licensed premises for off-premises consumption no more
15  than 155,000 gallons per year so long as such sales are only
16  made in-person, (v) sell and offer for sale at retail for use
17  and consumption on the premises specified in the license any
18  form of alcoholic liquor purchased from a licensed distributor
19  or importing distributor, (vi) with the prior approval of the
20  Commission, annually transfer no more than 155,000 gallons of
21  beer manufactured on the premises to a licensed brew pub
22  wholly owned and operated by the same licensee, and (vii)
23  notwithstanding item (i) of this subsection, brew pubs wholly
24  owned and operated by the same licensee may combine each
25  location's production limit of 155,000 gallons of beer per
26  year and allocate the aggregate total between the wholly

 

 

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  HB5504 - 54 - LRB103 38154 RPS 68287 b
1  owned, operated, and licensed locations.
2  A brew pub licensee shall not under any circumstance sell
3  or offer for sale beer manufactured by the brew pub licensee to
4  retail licensees.
5  A person who holds a class 2 brewer license may
6  simultaneously hold a brew pub license if the class 2 brewer
7  (i) does not, under any circumstance, sell or offer for sale
8  beer manufactured by the class 2 brewer to retail licensees;
9  (ii) does not hold more than 3 brew pub licenses in this State;
10  (iii) does not manufacture more than a combined 3,720,000
11  gallons of beer per year, including the beer manufactured at
12  the brew pub; and (iv) is not a member of or affiliated with,
13  directly or indirectly, a manufacturer that produces more than
14  3,720,000 gallons of beer per year or any other alcoholic
15  liquor.
16  Notwithstanding any other provision of this Act, a
17  licensed brewer, class 2 brewer, or non-resident dealer who
18  before July 1, 2015 manufactured less than 3,720,000 gallons
19  of beer per year and held a brew pub license on or before July
20  1, 2015 may (i) continue to qualify for and hold that brew pub
21  license for the licensed premises and (ii) manufacture more
22  than 3,720,000 gallons of beer per year and continue to
23  qualify for and hold that brew pub license if that brewer,
24  class 2 brewer, or non-resident dealer does not simultaneously
25  hold a class 1 brewer license and is not a member of or
26  affiliated with, directly or indirectly, a manufacturer that

 

 

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  HB5504 - 55 - LRB103 38154 RPS 68287 b
1  produces more than 3,720,000 gallons of beer per year or that
2  produces any other alcoholic liquor.
3  A brew pub licensee may apply for a class 3 brewer license
4  and, upon meeting all applicable qualifications of this Act
5  and relinquishing all commonly owned brew pub or retail
6  licenses, shall be issued a class 3 brewer license. Nothing in
7  this Act shall prohibit the issuance of a class 3 brewer
8  license if the applicant:
9  (1) has a valid retail license on or before May 1,
10  2021;
11  (2) has an ownership interest in at least two brew
12  pubs licenses on or before May 1, 2021;
13  (3) the brew pub licensee applies for a class 3 brewer
14  license on or before October 1, 2022 and relinquishes all
15  commonly owned brew pub licenses; and
16  (4) relinquishes all commonly owned retail licenses on
17  or before December 31, 2022.
18  If a brew pub licensee is issued a class 3 brewer license,
19  the class 3 brewer license shall expire on the same date as the
20  existing brew pub license and the State Commission shall not
21  require a class 3 brewer licensee to obtain a brewer license,
22  or in the alternative to pay a fee for a brewer license, until
23  the date the brew pub license of the applicant would have
24  expired.
25  (o) A caterer retailer license shall allow the holder to
26  serve alcoholic liquors as an incidental part of a food

 

 

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  HB5504 - 56 - LRB103 38154 RPS 68287 b
1  service that serves prepared meals which excludes the serving
2  of snacks as the primary meal, either on or off-site whether
3  licensed or unlicensed. A caterer retailer license shall allow
4  the holder, a distributor, or an importing distributor to
5  transfer any inventory to and from the holder's retail
6  premises and shall allow the holder to purchase alcoholic
7  liquor from a distributor or importing distributor to be
8  delivered directly to an off-site event.
9  Nothing in this Act prohibits a distributor or importing
10  distributor from offering credit or a refund for unused,
11  salable beer to a holder of a caterer retailer license or a
12  caterer retailer licensee from accepting a credit or refund
13  for unused, salable beer, in the event an act of God is the
14  sole reason an off-site event is cancelled and if: (i) the
15  holder of a caterer retailer license has not transferred
16  alcoholic liquor from its caterer retailer premises to an
17  off-site location; (ii) the distributor or importing
18  distributor offers the credit or refund for the unused,
19  salable beer that it delivered to the off-site premises and
20  not for any unused, salable beer that the distributor or
21  importing distributor delivered to the caterer retailer's
22  premises; and (iii) the unused, salable beer would likely
23  spoil if transferred to the caterer retailer's premises. A
24  caterer retailer license shall allow the holder to transfer
25  any inventory from any off-site location to its caterer
26  retailer premises at the conclusion of an off-site event or

 

 

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  HB5504 - 57 - LRB103 38154 RPS 68287 b
1  engage a distributor or importing distributor to transfer any
2  inventory from any off-site location to its caterer retailer
3  premises at the conclusion of an off-site event, provided that
4  the distributor or importing distributor issues bona fide
5  charges to the caterer retailer licensee for fuel, labor, and
6  delivery and the distributor or importing distributor collects
7  payment from the caterer retailer licensee prior to the
8  distributor or importing distributor transferring inventory to
9  the caterer retailer premises.
10  For purposes of this subsection (o), an "act of God" means
11  an unforeseeable event, such as a rain or snow storm, hail, a
12  flood, or a similar event, that is the sole cause of the
13  cancellation of an off-site, outdoor event.
14  (p) An auction liquor license shall allow the licensee to
15  sell and offer for sale at auction wine and spirits for use or
16  consumption, or for resale by an Illinois liquor licensee in
17  accordance with provisions of this Act. An auction liquor
18  license will be issued to a person and it will permit the
19  auction liquor licensee to hold the auction anywhere in the
20  State. An auction liquor license must be obtained for each
21  auction at least 14 days in advance of the auction date.
22  (q) A special use permit license shall allow an Illinois
23  licensed retailer to transfer a portion of its alcoholic
24  liquor inventory from its retail licensed premises to the
25  premises specified in the license hereby created; to purchase
26  alcoholic liquor from a distributor or importing distributor

 

 

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  HB5504 - 58 - LRB103 38154 RPS 68287 b
1  to be delivered directly to the location specified in the
2  license hereby created; and to sell or offer for sale at
3  retail, only in the premises specified in the license hereby
4  created, the transferred or delivered alcoholic liquor for use
5  or consumption, but not for resale in any form. A special use
6  permit license may be granted for the following time periods:
7  one day or less; 2 or more days to a maximum of 15 days per
8  location in any 12-month period. An applicant for the special
9  use permit license must also submit with the application proof
10  satisfactory to the State Commission that the applicant will
11  provide dram shop liability insurance to the maximum limits
12  and have local authority approval.
13  A special use permit license shall allow the holder to
14  transfer any inventory from the holder's special use premises
15  to its retail premises at the conclusion of the special use
16  event or engage a distributor or importing distributor to
17  transfer any inventory from the holder's special use premises
18  to its retail premises at the conclusion of an off-site event,
19  provided that the distributor or importing distributor issues
20  bona fide charges to the special use permit licensee for fuel,
21  labor, and delivery and the distributor or importing
22  distributor collects payment from the retail licensee prior to
23  the distributor or importing distributor transferring
24  inventory to the retail premises.
25  Nothing in this Act prohibits a distributor or importing
26  distributor from offering credit or a refund for unused,

 

 

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  HB5504 - 59 - LRB103 38154 RPS 68287 b
1  salable beer to a special use permit licensee or a special use
2  permit licensee from accepting a credit or refund for unused,
3  salable beer at the conclusion of the event specified in the
4  license if: (i) the holder of the special use permit license
5  has not transferred alcoholic liquor from its retail licensed
6  premises to the premises specified in the special use permit
7  license; (ii) the distributor or importing distributor offers
8  the credit or refund for the unused, salable beer that it
9  delivered to the premises specified in the special use permit
10  license and not for any unused, salable beer that the
11  distributor or importing distributor delivered to the
12  retailer's premises; and (iii) the unused, salable beer would
13  likely spoil if transferred to the retailer premises.
14  (r) A winery shipper's license shall allow a person with a
15  first-class or second-class wine manufacturer's license, a
16  first-class or second-class wine-maker's license, or a limited
17  wine manufacturer's license or who is licensed to make wine
18  under the laws of another state to ship wine made by that
19  licensee directly to a resident of this State who is 21 years
20  of age or older for that resident's personal use and not for
21  resale. Prior to receiving a winery shipper's license, an
22  applicant for the license must provide the Commission with a
23  true copy of its current license in any state in which it is
24  licensed as a manufacturer of wine. An applicant for a winery
25  shipper's license must also complete an application form that
26  provides any other information the Commission deems necessary.

 

 

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  HB5504 - 60 - LRB103 38154 RPS 68287 b
1  The application form shall include all addresses from which
2  the applicant for a winery shipper's license intends to ship
3  wine, including the name and address of any third party,
4  except for a common carrier, authorized to ship wine on behalf
5  of the manufacturer. The application form shall include an
6  acknowledgement consenting to the jurisdiction of the
7  Commission, the Illinois Department of Revenue, and the courts
8  of this State concerning the enforcement of this Act and any
9  related laws, rules, and regulations, including authorizing
10  the Department of Revenue and the Commission to conduct audits
11  for the purpose of ensuring compliance with Public Act 95-634,
12  and an acknowledgement that the wine manufacturer is in
13  compliance with Section 6-2 of this Act. Any third party,
14  except for a common carrier, authorized to ship wine on behalf
15  of a first-class or second-class wine manufacturer's licensee,
16  a first-class or second-class wine-maker's licensee, a limited
17  wine manufacturer's licensee, or a person who is licensed to
18  make wine under the laws of another state shall also be
19  disclosed by the winery shipper's licensee, and a copy of the
20  written appointment of the third-party wine provider, except
21  for a common carrier, to the wine manufacturer shall be filed
22  with the State Commission as a supplement to the winery
23  shipper's license application or any renewal thereof. The
24  winery shipper's license holder shall affirm under penalty of
25  perjury, as part of the winery shipper's license application
26  or renewal, that he or she only ships wine, either directly or

 

 

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  HB5504 - 61 - LRB103 38154 RPS 68287 b
1  indirectly through a third-party provider, from the licensee's
2  own production.
3  Except for a common carrier, a third-party provider
4  shipping wine on behalf of a winery shipper's license holder
5  is the agent of the winery shipper's license holder and, as
6  such, a winery shipper's license holder is responsible for the
7  acts and omissions of the third-party provider acting on
8  behalf of the license holder. A third-party provider, except
9  for a common carrier, that engages in shipping wine into
10  Illinois on behalf of a winery shipper's license holder shall
11  consent to the jurisdiction of the State Commission and the
12  State. Any third-party, except for a common carrier, holding
13  such an appointment shall, by February 1 of each calendar year
14  and upon request by the State Commission or the Department of
15  Revenue, file with the State Commission a statement detailing
16  each shipment made to an Illinois resident. The statement
17  shall include the name and address of the third-party provider
18  filing the statement, the time period covered by the
19  statement, and the following information:
20  (1) the name, address, and license number of the
21  winery shipper on whose behalf the shipment was made;
22  (2) the quantity of the products delivered; and
23  (3) the date and address of the shipment.
24  If the Department of Revenue or the State Commission requests
25  a statement under this paragraph, the third-party provider
26  must provide that statement no later than 30 days after the

 

 

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  HB5504 - 62 - LRB103 38154 RPS 68287 b
1  request is made. Any books, records, supporting papers, and
2  documents containing information and data relating to a
3  statement under this paragraph shall be kept and preserved for
4  a period of 3 years, unless their destruction sooner is
5  authorized, in writing, by the Director of Revenue, and shall
6  be open and available to inspection by the Director of Revenue
7  or the State Commission or any duly authorized officer, agent,
8  or employee of the State Commission or the Department of
9  Revenue, at all times during business hours of the day. Any
10  person who violates any provision of this paragraph or any
11  rule of the State Commission for the administration and
12  enforcement of the provisions of this paragraph is guilty of a
13  Class C misdemeanor. In case of a continuing violation, each
14  day's continuance thereof shall be a separate and distinct
15  offense.
16  The State Commission shall adopt rules as soon as
17  practicable to implement the requirements of Public Act 99-904
18  and shall adopt rules prohibiting any such third-party
19  appointment of a third-party provider, except for a common
20  carrier, that has been deemed by the State Commission to have
21  violated the provisions of this Act with regard to any winery
22  shipper licensee.
23  A winery shipper licensee must pay to the Department of
24  Revenue the State liquor gallonage tax under Section 8-1 for
25  all wine that is sold by the licensee and shipped to a person
26  in this State. For the purposes of Section 8-1, a winery

 

 

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  HB5504 - 63 - LRB103 38154 RPS 68287 b
1  shipper licensee shall be taxed in the same manner as a
2  manufacturer of wine. A licensee who is not otherwise required
3  to register under the Retailers' Occupation Tax Act must
4  register under the Use Tax Act to collect and remit use tax to
5  the Department of Revenue for all gallons of wine that are sold
6  by the licensee and shipped to persons in this State. If a
7  licensee fails to remit the tax imposed under this Act in
8  accordance with the provisions of Article VIII of this Act,
9  the winery shipper's license shall be revoked in accordance
10  with the provisions of Article VII of this Act. If a licensee
11  fails to properly register and remit tax under the Use Tax Act
12  or the Retailers' Occupation Tax Act for all wine that is sold
13  by the winery shipper and shipped to persons in this State, the
14  winery shipper's license shall be revoked in accordance with
15  the provisions of Article VII of this Act.
16  A winery shipper licensee must collect, maintain, and
17  submit to the Commission on a semi-annual basis the total
18  number of cases per resident of wine shipped to residents of
19  this State. A winery shipper licensed under this subsection
20  (r) must comply with the requirements of Section 6-29 of this
21  Act.
22  Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
23  Section 3-12, the State Commission may receive, respond to,
24  and investigate any complaint and impose any of the remedies
25  specified in paragraph (1) of subsection (a) of Section 3-12.
26  As used in this subsection, "third-party provider" means

 

 

  HB5504 - 63 - LRB103 38154 RPS 68287 b


HB5504- 64 -LRB103 38154 RPS 68287 b   HB5504 - 64 - LRB103 38154 RPS 68287 b
  HB5504 - 64 - LRB103 38154 RPS 68287 b
1  any entity that provides fulfillment house services, including
2  warehousing, packaging, distribution, order processing, or
3  shipment of wine, but not the sale of wine, on behalf of a
4  licensed winery shipper.
5  (s) A craft distiller tasting permit license shall allow
6  an Illinois licensed class 1 craft distiller or class 2 craft
7  distiller to transfer a portion of its alcoholic liquor
8  inventory from its class 1 craft distiller or class 2 craft
9  distiller licensed premises to the premises specified in the
10  license hereby created and to conduct a sampling, only in the
11  premises specified in the license hereby created, of the
12  transferred alcoholic liquor in accordance with subsection (c)
13  of Section 6-31 of this Act. The transferred alcoholic liquor
14  may not be sold or resold in any form. An applicant for the
15  craft distiller tasting permit license must also submit with
16  the application proof satisfactory to the State Commission
17  that the applicant will provide dram shop liability insurance
18  to the maximum limits and have local authority approval.
19  (t) A brewer warehouse permit may be issued to the holder
20  of a class 1 brewer license or a class 2 brewer license. If the
21  holder of the permit is a class 1 brewer licensee, the brewer
22  warehouse permit shall allow the holder to store or warehouse
23  up to 930,000 gallons of tax-determined beer manufactured by
24  the holder of the permit at the premises specified on the
25  permit. If the holder of the permit is a class 2 brewer
26  licensee, the brewer warehouse permit shall allow the holder

 

 

  HB5504 - 64 - LRB103 38154 RPS 68287 b


HB5504- 65 -LRB103 38154 RPS 68287 b   HB5504 - 65 - LRB103 38154 RPS 68287 b
  HB5504 - 65 - LRB103 38154 RPS 68287 b
1  to store or warehouse up to 3,720,000 gallons of
2  tax-determined beer manufactured by the holder of the permit
3  at the premises specified on the permit. Sales to
4  non-licensees are prohibited at the premises specified in the
5  brewer warehouse permit.
6  (u) A distilling pub license shall allow the licensee to
7  only (i) manufacture up to 10,000 5,000 gallons of spirits per
8  year only on the premises specified in the license, (ii) make
9  sales of the spirits manufactured on the premises or, with the
10  approval of the State Commission, spirits manufactured on
11  another distilling pub licensed premises that is wholly owned
12  and operated by the same licensee to importing distributors
13  and distributors and to non-licensees for use and consumption,
14  (iii) store the spirits upon the premises, (iv) sell and offer
15  for sale at retail from the licensed premises for off-premises
16  consumption no more than 5,000 gallons per year so long as such
17  sales are only made in-person, (v) sell and offer for sale at
18  retail for use and consumption on the premises specified in
19  the license any form of alcoholic liquor purchased from a
20  licensed distributor or importing distributor, and (vi) with
21  the prior approval of the State Commission, annually transfer
22  no more than 5,000 gallons of spirits manufactured on the
23  premises to a licensed distilling pub wholly owned and
24  operated by the same licensee.
25  A distilling pub licensee shall not under any circumstance
26  sell or offer for sale spirits manufactured by the distilling

 

 

  HB5504 - 65 - LRB103 38154 RPS 68287 b


HB5504- 66 -LRB103 38154 RPS 68287 b   HB5504 - 66 - LRB103 38154 RPS 68287 b
  HB5504 - 66 - LRB103 38154 RPS 68287 b
1  pub licensee to retail licensees.
2  A person who holds a class 2 craft distiller license may
3  simultaneously hold a distilling pub license if the class 2
4  craft distiller (i) does not, under any circumstance, sell or
5  offer for sale spirits manufactured by the class 2 craft
6  distiller to retail licensees; (ii) does not hold more than 3
7  distilling pub licenses in this State; (iii) does not
8  manufacture more than a combined 100,000 gallons of spirits
9  per year, including the spirits manufactured at the distilling
10  pub; and (iv) is not a member of or affiliated with, directly
11  or indirectly, a manufacturer that produces more than 100,000
12  gallons of spirits per year or any other alcoholic liquor.
13  (v) A craft distiller warehouse permit may be issued to
14  the holder of a class 1 craft distiller or class 2 craft
15  distiller license. The craft distiller warehouse permit shall
16  allow the holder to store or warehouse up to 500,000 gallons of
17  spirits manufactured by the holder of the permit at the
18  premises specified on the permit. Sales to non-licensees are
19  prohibited at the premises specified in the craft distiller
20  warehouse permit.
21  (w) A beer showcase permit license shall allow an
22  Illinois-licensed distributor to transfer a portion of its
23  beer inventory from its licensed premises to the premises
24  specified in the beer showcase permit license, and, in the
25  case of a class 3 brewer, transfer only beer the class 3 brewer
26  manufactures from its licensed premises to the premises

 

 

  HB5504 - 66 - LRB103 38154 RPS 68287 b


HB5504- 67 -LRB103 38154 RPS 68287 b   HB5504 - 67 - LRB103 38154 RPS 68287 b
  HB5504 - 67 - LRB103 38154 RPS 68287 b
1  specified in the beer showcase permit license; and to sell or
2  offer for sale at retail, only in the premises specified in the
3  beer showcase permit license, the transferred or delivered
4  beer for on or off premise consumption, but not for resale in
5  any form and to sell to non-licensees not more than 96 fluid
6  ounces of beer per person. A beer showcase permit license may
7  be granted for the following time periods: one day or less; or
8  2 or more days to a maximum of 15 days per location in any
9  12-month period. An applicant for a beer showcase permit
10  license must also submit with the application proof
11  satisfactory to the State Commission that the applicant will
12  provide dram shop liability insurance to the maximum limits
13  and have local authority approval. The State Commission shall
14  require the beer showcase applicant to comply with Section
15  6-27.1.
16  (x) A spirits showcase permit shall allow an
17  Illinois-licensed distributor to transfer a portion of its
18  spirits inventory from its licensed premises to the premises
19  specified in the spirits showcase permit and, in the case of a
20  class 3 craft distiller, transfer only spirits the class 3
21  craft distiller manufactures from its licensed premises to the
22  premises specified in the spirits showcase permit; and to sell
23  or offer for sale at retail, only in the premises specified in
24  the spirits showcase permit, the transferred or delivered
25  spirits for on-premises or off-premises consumption, but not
26  for resale in any form and to sell to non-licensees not more

 

 

  HB5504 - 67 - LRB103 38154 RPS 68287 b


HB5504- 68 -LRB103 38154 RPS 68287 b   HB5504 - 68 - LRB103 38154 RPS 68287 b
  HB5504 - 68 - LRB103 38154 RPS 68287 b
1  than 156 fluid ounces of spirits per person. A spirits
2  showcase permit may be granted for the following time periods:
3  one day or less; or 2 or more days to a maximum of 15 days per
4  location in any 12-month period. An applicant for a spirits
5  showcase permit must also submit with the application proof
6  satisfactory to the State Commission that the applicant will
7  provide dram shop liability insurance to the maximum limits
8  and have local authority approval. The State Commission shall
9  require the spirits showcase applicant to comply with Section
10  6-27.1.
11  (Source: P.A. 101-16, eff. 6-14-19; 101-31, eff. 6-28-19;
12  101-81, eff. 7-12-19; 101-482, eff. 8-23-19; 101-517, eff.
13  8-23-19; 101-615, eff. 12-20-19; 101-668, eff. 1-1-22;
14  102-442, eff. 8-20-21; 102-1142, eff. 2-17-23.)
15  (235 ILCS 5/5-3) (from Ch. 43, par. 118)
16  Sec. 5-3. License fees. Except as otherwise provided
17  herein, at the time application is made to the State
18  Commission for a license of any class, the applicant shall pay
19  to the State Commission the fee hereinafter provided for the
20  kind of license applied for.
21  The fee for licenses issued by the State Commission shall
22  be as follows:
23OnlineInitial24renewallicense25 or 23   Online Initial 24   renewal license 25    or
23   Online Initial
24   renewal license
25    or

 

 

  HB5504 - 68 - LRB103 38154 RPS 68287 b


23   Online Initial
24   renewal license
25    or


HB5504- 69 -LRB103 38154 RPS 68287 b   HB5504 - 69 - LRB103 38154 RPS 68287 b
  HB5504 - 69 - LRB103 38154 RPS 68287 b
1 non-online2 renewal 1    non-online 2    renewal
1    non-online
2    renewal
3 For a manufacturer's license:4 Class 1. Distiller .................$4,000$5,0005 Class 2. Rectifier .................4,000 5,0006 Class 3. Brewer ....................1,200 1,5007 Class 4. First-class Wine 8  Manufacturer ...................7509009 Class 5. Second-class10  Wine Manufacturer ..............1,500 1,75011 Class 6. First-class wine-maker ....750 90012 Class 7. Second-class wine-maker ...1,500 1,75013 Class 8. Limited Wine 14  Manufacturer....................250 350 15 Class 9. Craft Distiller............ 2,000 2,500 16 Class 10. Class 1 Craft Distiller... 50 75 17 Class 11. Class 2 Craft Distiller... 75 100 18 Class 12. Class 1 Brewer............50 7519 Class 13. Class 2 Brewer............ 75 100 20 Class 14. Class 3 Brewer............ 25 50 21 Class 15. Class 3 Craft Distiller.17520022 For a Brew Pub License..............1,2001,50023 For a Distilling Pub License........ 1,200 1,500 24 For a caterer retailer's license....350 50025 For a foreign importer's license ...25 2526 For an importing distributor's 3  For a manufacturer's license:   4  Class 1. Distiller ................. $4,000 $5,000 5  Class 2. Rectifier ................. 4,000 5,000 6  Class 3. Brewer .................... 1,200 1,500 7  Class 4. First-class Wine   8  Manufacturer ................... 750 900 9  Class 5. Second-class   10  Wine Manufacturer .............. 1,500 1,750 11  Class 6. First-class wine-maker .... 750 900 12  Class 7. Second-class wine-maker ... 1,500 1,750 13  Class 8. Limited Wine   14  Manufacturer.................... 250 350 15  Class 9. Craft Distiller............ 2,000 2,500 16  Class 10. Class 1 Craft Distiller... 50 75 17  Class 11. Class 2 Craft Distiller... 75 100 18  Class 12. Class 1 Brewer............ 50 75 19  Class 13. Class 2 Brewer............ 75 100 20  Class 14. Class 3 Brewer............ 25 50 21  Class 15. Class 3 Craft Distiller. 175 200 22  For a Brew Pub License.............. 1,200 1,500 23  For a Distilling Pub License........ 1,200 1,500 24  For a caterer retailer's license.... 350 500 25  For a foreign importer's license ... 25 25 26  For an importing distributor's
3  For a manufacturer's license:
4  Class 1. Distiller ................. $4,000 $5,000
5  Class 2. Rectifier ................. 4,000 5,000
6  Class 3. Brewer .................... 1,200 1,500
7  Class 4. First-class Wine
8  Manufacturer ................... 750 900
9  Class 5. Second-class
10  Wine Manufacturer .............. 1,500 1,750
11  Class 6. First-class wine-maker .... 750 900
12  Class 7. Second-class wine-maker ... 1,500 1,750
13  Class 8. Limited Wine
14  Manufacturer.................... 250 350
15  Class 9. Craft Distiller............ 2,000 2,500
16  Class 10. Class 1 Craft Distiller... 50 75
17  Class 11. Class 2 Craft Distiller... 75 100
18  Class 12. Class 1 Brewer............ 50 75
19  Class 13. Class 2 Brewer............ 75 100
20  Class 14. Class 3 Brewer............ 25 50
21  Class 15. Class 3 Craft Distiller. 175 200
22  For a Brew Pub License.............. 1,200 1,500
23  For a Distilling Pub License........ 1,200 1,500
24  For a caterer retailer's license.... 350 500
25  For a foreign importer's license ... 25 25
26  For an importing distributor's

 

 

  HB5504 - 69 - LRB103 38154 RPS 68287 b

1    non-online
2    renewal


3  For a manufacturer's license:
4  Class 1. Distiller ................. $4,000 $5,000
5  Class 2. Rectifier ................. 4,000 5,000
6  Class 3. Brewer .................... 1,200 1,500
7  Class 4. First-class Wine
8  Manufacturer ................... 750 900
9  Class 5. Second-class
10  Wine Manufacturer .............. 1,500 1,750
11  Class 6. First-class wine-maker .... 750 900
12  Class 7. Second-class wine-maker ... 1,500 1,750
13  Class 8. Limited Wine
14  Manufacturer.................... 250 350
15  Class 9. Craft Distiller............ 2,000 2,500
16  Class 10. Class 1 Craft Distiller... 50 75
17  Class 11. Class 2 Craft Distiller... 75 100
18  Class 12. Class 1 Brewer............ 50 75
19  Class 13. Class 2 Brewer............ 75 100
20  Class 14. Class 3 Brewer............ 25 50
21  Class 15. Class 3 Craft Distiller. 175 200
22  For a Brew Pub License.............. 1,200 1,500
23  For a Distilling Pub License........ 1,200 1,500
24  For a caterer retailer's license.... 350 500
25  For a foreign importer's license ... 25 25
26  For an importing distributor's


HB5504- 70 -LRB103 38154 RPS 68287 b   HB5504 - 70 - LRB103 38154 RPS 68287 b
  HB5504 - 70 - LRB103 38154 RPS 68287 b
1  license.........................25252 For a distributor's license 3  (11,250,000 gallons    4  or over)........................1,4502,2005 For a distributor's license  6  (over 4,500,000 gallons, but7  under 11,250,000 gallons)....... 9501,4508 For a distributor's license9  (4,500,000 gallons or under)....30045010 For a non-resident dealer's license11  (500,000 gallons or over) 12  or with self-distribution 13  privileges .....................1,200 1,50014 For a non-resident dealer's license15  (under 500,000 gallons) ........250 35016 For a wine-maker's premises 17  license ........................25050018 For a winery shipper's license19  (under 250,000 gallons).........200 35020 For a winery shipper's license 21  (250,000 or over, but 22  under 500,000 gallons)..........7501,00023 For a winery shipper's license 24  (500,000 gallons or over).......1,200 1,50025 For a wine-maker's premises 26  license, second location .......500 1,000 1  license......................... 25 25 2  For a distributor's license   3  (11,250,000 gallons   4  or over)........................ 1,450 2,200 5  For a distributor's license   6  (over 4,500,000 gallons, but   7  under 11,250,000 gallons)....... 950 1,450 8  For a distributor's license   9  (4,500,000 gallons or under).... 300 450 10  For a non-resident dealer's license   11  (500,000 gallons or over)   12  or with self-distribution   13  privileges ..................... 1,200 1,500 14  For a non-resident dealer's license   15  (under 500,000 gallons) ........ 250 350 16  For a wine-maker's premises   17  license ........................ 250 500 18  For a winery shipper's license   19  (under 250,000 gallons)......... 200 350 20  For a winery shipper's license   21  (250,000 or over, but   22  under 500,000 gallons).......... 750 1,000 23  For a winery shipper's license   24  (500,000 gallons or over)....... 1,200 1,500 25  For a wine-maker's premises   26  license, second location ....... 500 1,000
1  license......................... 25 25
2  For a distributor's license
3  (11,250,000 gallons
4  or over)........................ 1,450 2,200
5  For a distributor's license
6  (over 4,500,000 gallons, but
7  under 11,250,000 gallons)....... 950 1,450
8  For a distributor's license
9  (4,500,000 gallons or under).... 300 450
10  For a non-resident dealer's license
11  (500,000 gallons or over)
12  or with self-distribution
13  privileges ..................... 1,200 1,500
14  For a non-resident dealer's license
15  (under 500,000 gallons) ........ 250 350
16  For a wine-maker's premises
17  license ........................ 250 500
18  For a winery shipper's license
19  (under 250,000 gallons)......... 200 350
20  For a winery shipper's license
21  (250,000 or over, but
22  under 500,000 gallons).......... 750 1,000
23  For a winery shipper's license
24  (500,000 gallons or over)....... 1,200 1,500
25  For a wine-maker's premises
26  license, second location ....... 500 1,000

 

 

  HB5504 - 70 - LRB103 38154 RPS 68287 b

1  license......................... 25 25
2  For a distributor's license
3  (11,250,000 gallons
4  or over)........................ 1,450 2,200
5  For a distributor's license
6  (over 4,500,000 gallons, but
7  under 11,250,000 gallons)....... 950 1,450
8  For a distributor's license
9  (4,500,000 gallons or under).... 300 450
10  For a non-resident dealer's license
11  (500,000 gallons or over)
12  or with self-distribution
13  privileges ..................... 1,200 1,500
14  For a non-resident dealer's license
15  (under 500,000 gallons) ........ 250 350
16  For a wine-maker's premises
17  license ........................ 250 500
18  For a winery shipper's license
19  (under 250,000 gallons)......... 200 350
20  For a winery shipper's license
21  (250,000 or over, but
22  under 500,000 gallons).......... 750 1,000
23  For a winery shipper's license
24  (500,000 gallons or over)....... 1,200 1,500
25  For a wine-maker's premises
26  license, second location ....... 500 1,000


HB5504- 71 -LRB103 38154 RPS 68287 b   HB5504 - 71 - LRB103 38154 RPS 68287 b
  HB5504 - 71 - LRB103 38154 RPS 68287 b
1 For a wine-maker's premises 2  license, third location ........5001,0003 For a retailer's license ...........600 7504 For a special event retailer's5  license, (not-for-profit) ......25 256 For a beer showcase permit, 7  one day only ................... 100 150 8  2 days or more ................. 150 250 9 For a spirits showcase permit10  one day only.10015011  2 days or more.15025012 For a special use permit license,13  one day only ...................100 15014  2 days or more .................150 25015 For a railroad license .............100 15016 For a boat license .................500 1,00017 For an airplane license, times the18  licensee's maximum number of 19  aircraft in flight, serving 20  liquor over the State at any 21  given time, which either 22  originate, terminate, or make  23  an intermediate stop in  24  the State.......................10015025 For a non-beverage user's license:26  Class 1 ........................2424 1  For a wine-maker's premises   2  license, third location ........ 500 1,000 3  For a retailer's license ........... 600 750 4  For a special event retailer's   5  license, (not-for-profit) ...... 25 25 6  For a beer showcase permit,   7  one day only ................... 100 150 8  2 days or more ................. 150 250 9  For a spirits showcase permit   10  one day only. 100 150 11  2 days or more. 150 250 12  For a special use permit license,   13  one day only ................... 100 150 14  2 days or more ................. 150 250 15  For a railroad license ............. 100 150 16  For a boat license ................. 500 1,000 17  For an airplane license, times the   18  licensee's maximum number of   19  aircraft in flight, serving   20  liquor over the State at any   21  given time, which either   22  originate, terminate, or make   23  an intermediate stop in   24  the State....................... 100 150 25  For a non-beverage user's license:   26  Class 1 ........................ 24 24
1  For a wine-maker's premises
2  license, third location ........ 500 1,000
3  For a retailer's license ........... 600 750
4  For a special event retailer's
5  license, (not-for-profit) ...... 25 25
6  For a beer showcase permit,
7  one day only ................... 100 150
8  2 days or more ................. 150 250
9  For a spirits showcase permit
10  one day only. 100 150
11  2 days or more. 150 250
12  For a special use permit license,
13  one day only ................... 100 150
14  2 days or more ................. 150 250
15  For a railroad license ............. 100 150
16  For a boat license ................. 500 1,000
17  For an airplane license, times the
18  licensee's maximum number of
19  aircraft in flight, serving
20  liquor over the State at any
21  given time, which either
22  originate, terminate, or make
23  an intermediate stop in
24  the State....................... 100 150
25  For a non-beverage user's license:
26  Class 1 ........................ 24 24

 

 

  HB5504 - 71 - LRB103 38154 RPS 68287 b

1  For a wine-maker's premises
2  license, third location ........ 500 1,000
3  For a retailer's license ........... 600 750
4  For a special event retailer's
5  license, (not-for-profit) ...... 25 25
6  For a beer showcase permit,
7  one day only ................... 100 150
8  2 days or more ................. 150 250
9  For a spirits showcase permit
10  one day only. 100 150
11  2 days or more. 150 250
12  For a special use permit license,
13  one day only ................... 100 150
14  2 days or more ................. 150 250
15  For a railroad license ............. 100 150
16  For a boat license ................. 500 1,000
17  For an airplane license, times the
18  licensee's maximum number of
19  aircraft in flight, serving
20  liquor over the State at any
21  given time, which either
22  originate, terminate, or make
23  an intermediate stop in
24  the State....................... 100 150
25  For a non-beverage user's license:
26  Class 1 ........................ 24 24


HB5504- 72 -LRB103 38154 RPS 68287 b   HB5504 - 72 - LRB103 38154 RPS 68287 b
  HB5504 - 72 - LRB103 38154 RPS 68287 b
1  Class 2 ........................60602  Class 3 ........................1201203  Class 4 ........................2402404  Class 5 ........................6006005 For a broker's license .............750 1,0006 For an auction liquor license ......100 1507 For a homebrewer special   8  event permit....................25259 For a craft distiller 10  tasting permit..................25 2511 For a BASSET trainer license........ 300 35012 For a tasting representative 13  license.........................20030014 For a brewer warehouse permit....... 252515 For a craft distiller 16  warehouse permit................25 25 1  Class 2 ........................ 60 60 2  Class 3 ........................ 120 120 3  Class 4 ........................ 240 240 4  Class 5 ........................ 600 600 5  For a broker's license ............. 750 1,000 6  For an auction liquor license ...... 100 150 7  For a homebrewer special   8  event permit.................... 25 25 9  For a craft distiller   10  tasting permit.................. 25 25 11  For a BASSET trainer license........ 300 350 12  For a tasting representative   13  license......................... 200 300 14  For a brewer warehouse permit....... 25 25 15  For a craft distiller   16  warehouse permit................ 25 25
1  Class 2 ........................ 60 60
2  Class 3 ........................ 120 120
3  Class 4 ........................ 240 240
4  Class 5 ........................ 600 600
5  For a broker's license ............. 750 1,000
6  For an auction liquor license ...... 100 150
7  For a homebrewer special
8  event permit.................... 25 25
9  For a craft distiller
10  tasting permit.................. 25 25
11  For a BASSET trainer license........ 300 350
12  For a tasting representative
13  license......................... 200 300
14  For a brewer warehouse permit....... 25 25
15  For a craft distiller
16  warehouse permit................ 25 25
17  Fees collected under this Section shall be paid into the
18  Dram Shop Fund. The State Commission shall waive license
19  renewal fees for those retailers' licenses that are designated
20  as "1A" by the State Commission and expire on or after July 1,
21  2022, and on or before June 30, 2023. One-half of the funds
22  received for a retailer's license shall be paid into the Dram
23  Shop Fund and one-half of the funds received for a retailer's
24  license shall be paid into the General Revenue Fund.
25  No fee shall be paid for licenses issued by the State
26  Commission to the following non-beverage users:

 

 

  HB5504 - 72 - LRB103 38154 RPS 68287 b

1  Class 2 ........................ 60 60
2  Class 3 ........................ 120 120
3  Class 4 ........................ 240 240
4  Class 5 ........................ 600 600
5  For a broker's license ............. 750 1,000
6  For an auction liquor license ...... 100 150
7  For a homebrewer special
8  event permit.................... 25 25
9  For a craft distiller
10  tasting permit.................. 25 25
11  For a BASSET trainer license........ 300 350
12  For a tasting representative
13  license......................... 200 300
14  For a brewer warehouse permit....... 25 25
15  For a craft distiller
16  warehouse permit................ 25 25


HB5504- 73 -LRB103 38154 RPS 68287 b   HB5504 - 73 - LRB103 38154 RPS 68287 b
  HB5504 - 73 - LRB103 38154 RPS 68287 b
1  (a) Hospitals, sanitariums, or clinics when their use
2  of alcoholic liquor is exclusively medicinal, mechanical,
3  or scientific.
4  (b) Universities, colleges of learning, or schools
5  when their use of alcoholic liquor is exclusively
6  medicinal, mechanical, or scientific.
7  (c) Laboratories when their use is exclusively for the
8  purpose of scientific research.
9  (Source: P.A. 102-442, eff. 8-20-21; 102-558, eff. 8-20-21;
10  102-699, eff. 4-19-22; 102-1142, eff. 2-17-23; 103-154, eff.
11  6-30-23; revised 9-5-23.)
12  (235 ILCS 5/6-4) (from Ch. 43, par. 121)
13  Sec. 6-4. (a) No person licensed by any licensing
14  authority as a distiller, or a wine manufacturer, or any
15  subsidiary or affiliate thereof, or any officer, associate,
16  member, partner, representative, employee, agent or
17  shareholder owning more than 5% of the outstanding shares of
18  such person shall be issued an importing distributor's or
19  distributor's license, nor shall any person licensed by any
20  licensing authority as an importing distributor, distributor
21  or retailer, or any subsidiary or affiliate thereof, or any
22  officer or associate, member, partner, representative,
23  employee, agent or shareholder owning more than 5% of the
24  outstanding shares of such person be issued a distiller's
25  license, a craft distiller's license, or a wine manufacturer's

 

 

  HB5504 - 73 - LRB103 38154 RPS 68287 b


HB5504- 74 -LRB103 38154 RPS 68287 b   HB5504 - 74 - LRB103 38154 RPS 68287 b
  HB5504 - 74 - LRB103 38154 RPS 68287 b
1  license; and no person or persons licensed as a distiller,
2  craft distiller, class 1 craft distiller, or class 2 craft
3  distiller by any licensing authority shall have any interest,
4  directly or indirectly, with such distributor or importing
5  distributor.
6  However, an importing distributor or distributor, which on
7  January 1, 1985 is owned by a brewer, or any subsidiary or
8  affiliate thereof or any officer, associate, member, partner,
9  representative, employee, agent or shareholder owning more
10  than 5% of the outstanding shares of the importing distributor
11  or distributor referred to in this paragraph, may own or
12  acquire an ownership interest of more than 5% of the
13  outstanding shares of a wine manufacturer and be issued a wine
14  manufacturer's license by any licensing authority.
15  (b) The foregoing provisions shall not apply to any person
16  licensed by any licensing authority as a distiller or wine
17  manufacturer, or to any subsidiary or affiliate of any
18  distiller or wine manufacturer who shall have been heretofore
19  licensed by the State Commission as either an importing
20  distributor or distributor during the annual licensing period
21  expiring June 30, 1947, and shall actually have made sales
22  regularly to retailers.
23  (c) Provided, however, that in such instances where a
24  distributor's or importing distributor's license has been
25  issued to any distiller or wine manufacturer or to any
26  subsidiary or affiliate of any distiller or wine manufacturer

 

 

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1  who has, during the licensing period ending June 30, 1947,
2  sold or distributed as such licensed distributor or importing
3  distributor alcoholic liquors and wines to retailers, such
4  distiller or wine manufacturer or any subsidiary or affiliate
5  of any distiller or wine manufacturer holding such
6  distributor's or importing distributor's license may continue
7  to sell or distribute to retailers such alcoholic liquors and
8  wines which are manufactured, distilled, processed or marketed
9  by distillers and wine manufacturers whose products it sold or
10  distributed to retailers during the whole or any part of its
11  licensing periods; and such additional brands and additional
12  products may be added to the line of such distributor or
13  importing distributor, provided, that such brands and such
14  products were not sold or distributed by any distributor or
15  importing distributor licensed by the State Commission during
16  the licensing period ending June 30, 1947, but can not sell or
17  distribute to retailers any other alcoholic liquors or wines.
18  (d) It shall be unlawful for any distiller licensed
19  anywhere to have any stock ownership or interest in any
20  distributor's or importing distributor's license wherein any
21  other person has an interest therein who is not a distiller and
22  does not own more than 5% of any stock in any distillery.
23  Nothing herein contained shall apply to such distillers or
24  their subsidiaries or affiliates, who had a distributor's or
25  importing distributor's license during the licensing period
26  ending June 30, 1947, which license was owned in whole by such

 

 

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1  distiller, or subsidiaries or affiliates of such distiller.
2  (e) Any person licensed as a brewer, class 1 brewer, or
3  class 2 brewer shall be permitted to sell on the licensed
4  premises to non-licensees for on or off-premises consumption
5  for the premises in which he or she actually conducts such
6  business: (i) beer manufactured by the brewer, class 1 brewer,
7  class 2 brewer, or class 3 brewer; (ii) beer manufactured by
8  any other brewer, class 1 brewer, class 2 brewer, or class 3
9  brewer; and (iii) cider or mead. Any person licensed as a class
10  3 brewer shall be permitted to sell on the licensed premises to
11  non-licensees for on or off premises consumption for the
12  premises in which he or she actually conducts such business:
13  (i) beer manufactured by the class 3 brewer on the premises;
14  (ii) beer manufactured by any other brewer, class 1 brewer,
15  class 2 brewer, or class 3 brewer; and (iii) cider, wine, and
16  spirits. All products sold under this subsection that are not
17  manufactured on premises must be purchased through a licensed
18  distributor, importing distributor, or manufacturer with
19  self-distribution privileges. Such sales shall be limited to
20  on-premises, in-person sales only, for lawful consumption on
21  or off premises. Such authorization shall be considered a
22  privilege granted by the brewer license and, other than a
23  manufacturer of beer as stated above, no manufacturer or
24  distributor or importing distributor, excluding airplane
25  licensees exercising powers provided in paragraph (i) of
26  Section 5-1 of this Act, or any subsidiary or affiliate

 

 

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1  thereof, or any officer, associate, member, partner,
2  representative, employee or agent, or shareholder shall be
3  issued a retailer's license, nor shall any person having a
4  retailer's license, excluding airplane licensees exercising
5  powers provided in paragraph (i) of Section 5-1 of this Act, or
6  any subsidiary or affiliate thereof, or any officer,
7  associate, member, partner, representative or agent, or
8  shareholder be issued a manufacturer's license or importing
9  distributor's license.
10  A manufacturer of beer that imports or transfers beer into
11  this State must comply with Sections 6-8 and 8-1 of this Act.
12  A person who holds a class 2 brewer license and is
13  authorized by this Section to sell beer to non-licensees shall
14  not sell beer to non-licensees from more than 3 total brewer or
15  commonly owned brew pub licensed locations in this State. The
16  class 2 brewer shall designate to the State Commission the
17  brewer or brew pub locations from which it will sell beer to
18  non-licensees.
19  A person licensed as a class 1 craft distiller or a class 2
20  craft distiller, including a person who holds more than one
21  class 1 craft distiller or class 2 craft distiller license,
22  not affiliated with any other person manufacturing spirits may
23  be authorized by the State Commission to sell (1) up to 5,000
24  gallons of spirits produced by the person to non-licensees for
25  on or off-premises consumption for the premises in which he or
26  she actually conducts business permitting only the retail sale

 

 

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1  of spirits manufactured at such premises and (2) vermouth
2  purchased through a licensed distributor for on-premises
3  consumption. Such sales shall be limited to on-premises,
4  in-person sales only, for lawful consumption on or off
5  premises, and such authorization shall be considered a
6  privilege granted by the class 1 craft distiller or class 2
7  craft distiller license. A class 1 craft distiller or class 2
8  craft distiller licensed for retail sale shall secure liquor
9  liability insurance coverage in an amount at least equal to
10  the maximum liability amounts set forth in subsection (a) of
11  Section 6-21 of this Act.
12  A class 1 craft distiller or class 2 craft distiller
13  license holder shall not deliver any alcoholic liquor to any
14  non-licensee off the licensed premises. A class 1 craft
15  distiller or class 2 craft distiller shall affirm in its
16  annual license application that it does not produce more than
17  50,000 or 100,000 gallons of distilled spirits annually,
18  whichever is applicable, and that the craft distiller does not
19  sell more than 5,000 gallons of spirits to non-licensees for
20  on or off-premises consumption. In the application, which
21  shall be sworn under penalty of perjury, the class 1 craft
22  distiller or class 2 craft distiller shall state the volume of
23  production and sales for each year since the class 1 craft
24  distiller's or class 2 craft distiller's establishment.
25  A person who holds a class 1 craft distiller or class 2
26  craft distiller license and is authorized by this Section to

 

 

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1  sell spirits to non-licensees shall not sell spirits to
2  non-licensees from more than 3 total distillery or commonly
3  owned distilling pub licensed locations in this State. The
4  class 1 craft distiller or class 2 craft distiller shall
5  designate to the State Commission the distillery or distilling
6  pub locations from which it will sell spirits to
7  non-licensees.
8  A class 3 craft distiller license shall allow the licensee
9  to only (i) manufacture up to 100,000 gallons of spirits per
10  year, (ii) make sales of the spirits manufactured on the
11  premises or, with the approval of the State Commission,
12  spirits manufactured on another class 3 craft distiller
13  licensed premises that is wholly owned and operated by the
14  same licensee to importing distributors and distributors, to
15  retail licensees in accordance with the conditions set forth
16  in paragraph (21) of subsection (a) of Section 3-12 of this
17  Act, and to non-licensees for use and consumption, (iii) store
18  the spirits upon the premises, (iv) sell and offer for sale at
19  retail from the licensed premises for off-premises consumption
20  no more than 5,000 gallons per year so long as such sales are
21  only made in-person, (v) sell and offer for sale at retail for
22  use and consumption on the premises specified in the license
23  any form of alcoholic liquor purchased from a licensed
24  distributor or importing distributor, and (vi) with the prior
25  approval of the State Commission, annually transfer no more
26  than 19,375 gallons of spirits manufactured on the premises to

 

 

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  HB5504 - 80 - LRB103 38154 RPS 68287 b
1  a licensed class 3 craft distiller wholly owned and operated
2  by the same licensee.
3  (f) (Blank).
4  (g) Notwithstanding any of the foregoing prohibitions, a
5  limited wine manufacturer may sell at retail at its
6  manufacturing site for on or off premises consumption and may
7  sell to distributors. A limited wine manufacturer licensee
8  shall secure liquor liability insurance coverage in an amount
9  at least equal to the maximum liability amounts set forth in
10  subsection (a) of Section 6-21 of this Act.
11  (h) The changes made to this Section by Public Act 99-47
12  shall not diminish or impair the rights of any person, whether
13  a distiller, wine manufacturer, agent, or affiliate thereof,
14  who requested in writing and submitted documentation to the
15  State Commission on or before February 18, 2015 to be approved
16  for a retail license pursuant to what has heretofore been
17  subsection (f); provided that, on or before that date, the
18  State Commission considered the intent of that person to apply
19  for the retail license under that subsection and, by recorded
20  vote, the State Commission approved a resolution indicating
21  that such a license application could be lawfully approved
22  upon that person duly filing a formal application for a retail
23  license and if that person, within 90 days of the State
24  Commission appearance and recorded vote, first filed an
25  application with the appropriate local commission, which
26  application was subsequently approved by the appropriate local

 

 

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  HB5504 - 81 - LRB103 38154 RPS 68287 b