Illinois 2023 2023-2024 Regular Session

Illinois Senate Bill SB2216 Introduced / Bill

Filed 02/10/2023

                    103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2216 Introduced 2/10/2023, by Sen. Cristina Castro SYNOPSIS AS INTRODUCED:  235 ILCS 5/1-3.43235 ILCS 5/5-1 from Ch. 43, par. 115235 ILCS 5/6-40 new235 ILCS 5/8-10.5  Amends the Liquor Control Act of 1934. Authorizes a class 1 brewer or class 2 brewer to obtain a beer showcase permit. Makes conforming changes. Provides that a class 3 brewer licensee who meets certain criteria may obtain a self-distribution exemption to allow the sale of not more than 77,500 (instead of 6,200) gallons of beer from each in-state or out-of-state class 3 brewery premises, which shall not exceed 232,500 (instead of 18,600) gallons annually in the aggregate, to retail licensees and certain brewers. Provides that a class 2 brewer may transfer up to 139,500 gallons (instead of 31,000 gallons) of beer to a brew pub wholly owned and operated by the class 2 brewer. With regard to special event retailer's licenses and special use permit licenses, provides that those licenses shall allow the licensee to sell and offer for sale, at retail, alcoholic liquors for consumption on or off the premises specified in the license (instead of for use or consumption), but not for resale in any form. Removes a provision requiring certain brewers to file a report of their water usage. Provides that any retail licensee or licensed manufacturer with retail privileges may offer incentives to consumers for participation in a consumer loyalty and reward program.  LRB103 26981 RPS 53348 b   A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2216 Introduced 2/10/2023, by Sen. Cristina Castro SYNOPSIS AS INTRODUCED:  235 ILCS 5/1-3.43235 ILCS 5/5-1 from Ch. 43, par. 115235 ILCS 5/6-40 new235 ILCS 5/8-10.5 235 ILCS 5/1-3.43  235 ILCS 5/5-1 from Ch. 43, par. 115 235 ILCS 5/6-40 new  235 ILCS 5/8-10.5  Amends the Liquor Control Act of 1934. Authorizes a class 1 brewer or class 2 brewer to obtain a beer showcase permit. Makes conforming changes. Provides that a class 3 brewer licensee who meets certain criteria may obtain a self-distribution exemption to allow the sale of not more than 77,500 (instead of 6,200) gallons of beer from each in-state or out-of-state class 3 brewery premises, which shall not exceed 232,500 (instead of 18,600) gallons annually in the aggregate, to retail licensees and certain brewers. Provides that a class 2 brewer may transfer up to 139,500 gallons (instead of 31,000 gallons) of beer to a brew pub wholly owned and operated by the class 2 brewer. With regard to special event retailer's licenses and special use permit licenses, provides that those licenses shall allow the licensee to sell and offer for sale, at retail, alcoholic liquors for consumption on or off the premises specified in the license (instead of for use or consumption), but not for resale in any form. Removes a provision requiring certain brewers to file a report of their water usage. Provides that any retail licensee or licensed manufacturer with retail privileges may offer incentives to consumers for participation in a consumer loyalty and reward program.  LRB103 26981 RPS 53348 b     LRB103 26981 RPS 53348 b   A BILL FOR
103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2216 Introduced 2/10/2023, by Sen. Cristina Castro SYNOPSIS AS INTRODUCED:
235 ILCS 5/1-3.43235 ILCS 5/5-1 from Ch. 43, par. 115235 ILCS 5/6-40 new235 ILCS 5/8-10.5 235 ILCS 5/1-3.43  235 ILCS 5/5-1 from Ch. 43, par. 115 235 ILCS 5/6-40 new  235 ILCS 5/8-10.5
235 ILCS 5/1-3.43
235 ILCS 5/5-1 from Ch. 43, par. 115
235 ILCS 5/6-40 new
235 ILCS 5/8-10.5
Amends the Liquor Control Act of 1934. Authorizes a class 1 brewer or class 2 brewer to obtain a beer showcase permit. Makes conforming changes. Provides that a class 3 brewer licensee who meets certain criteria may obtain a self-distribution exemption to allow the sale of not more than 77,500 (instead of 6,200) gallons of beer from each in-state or out-of-state class 3 brewery premises, which shall not exceed 232,500 (instead of 18,600) gallons annually in the aggregate, to retail licensees and certain brewers. Provides that a class 2 brewer may transfer up to 139,500 gallons (instead of 31,000 gallons) of beer to a brew pub wholly owned and operated by the class 2 brewer. With regard to special event retailer's licenses and special use permit licenses, provides that those licenses shall allow the licensee to sell and offer for sale, at retail, alcoholic liquors for consumption on or off the premises specified in the license (instead of for use or consumption), but not for resale in any form. Removes a provision requiring certain brewers to file a report of their water usage. Provides that any retail licensee or licensed manufacturer with retail privileges may offer incentives to consumers for participation in a consumer loyalty and reward program.
LRB103 26981 RPS 53348 b     LRB103 26981 RPS 53348 b
    LRB103 26981 RPS 53348 b
A BILL FOR
SB2216LRB103 26981 RPS 53348 b   SB2216  LRB103 26981 RPS 53348 b
  SB2216  LRB103 26981 RPS 53348 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 1-3.43, 5-1, and 8-10.5 and by adding
6  Section 6-40 as follows:
7  (235 ILCS 5/1-3.43)
8  Sec. 1-3.43. Beer showcase permit license. "Beer showcase
9  permit" means a license for use by a class 1 brewer, class 2
10  brewer, class 3 brewer, or distributor to allow for the
11  transfer of beer only from an existing licensed premises of a
12  class 3 brewer or distributor to a designated site for a
13  specific event.
14  (Source: P.A. 102-442, eff. 8-20-21; revised 2-28-22.)
15  (235 ILCS 5/5-1) (from Ch. 43, par. 115)
16  Sec. 5-1. Licenses issued by the Illinois Liquor Control
17  Commission shall be of the following classes:
18  (a) Manufacturer's license - Class 1. Distiller, Class 2.
19  Rectifier, Class 3. Brewer, Class 4. First Class Wine
20  Manufacturer, Class 5. Second Class Wine Manufacturer, Class
21  6. First Class Winemaker, Class 7. Second Class Winemaker,
22  Class 8. Limited Wine Manufacturer, Class 9. Craft Distiller,

 

103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2216 Introduced 2/10/2023, by Sen. Cristina Castro SYNOPSIS AS INTRODUCED:
235 ILCS 5/1-3.43235 ILCS 5/5-1 from Ch. 43, par. 115235 ILCS 5/6-40 new235 ILCS 5/8-10.5 235 ILCS 5/1-3.43  235 ILCS 5/5-1 from Ch. 43, par. 115 235 ILCS 5/6-40 new  235 ILCS 5/8-10.5
235 ILCS 5/1-3.43
235 ILCS 5/5-1 from Ch. 43, par. 115
235 ILCS 5/6-40 new
235 ILCS 5/8-10.5
Amends the Liquor Control Act of 1934. Authorizes a class 1 brewer or class 2 brewer to obtain a beer showcase permit. Makes conforming changes. Provides that a class 3 brewer licensee who meets certain criteria may obtain a self-distribution exemption to allow the sale of not more than 77,500 (instead of 6,200) gallons of beer from each in-state or out-of-state class 3 brewery premises, which shall not exceed 232,500 (instead of 18,600) gallons annually in the aggregate, to retail licensees and certain brewers. Provides that a class 2 brewer may transfer up to 139,500 gallons (instead of 31,000 gallons) of beer to a brew pub wholly owned and operated by the class 2 brewer. With regard to special event retailer's licenses and special use permit licenses, provides that those licenses shall allow the licensee to sell and offer for sale, at retail, alcoholic liquors for consumption on or off the premises specified in the license (instead of for use or consumption), but not for resale in any form. Removes a provision requiring certain brewers to file a report of their water usage. Provides that any retail licensee or licensed manufacturer with retail privileges may offer incentives to consumers for participation in a consumer loyalty and reward program.
LRB103 26981 RPS 53348 b     LRB103 26981 RPS 53348 b
    LRB103 26981 RPS 53348 b
A BILL FOR

 

 

235 ILCS 5/1-3.43
235 ILCS 5/5-1 from Ch. 43, par. 115
235 ILCS 5/6-40 new
235 ILCS 5/8-10.5



    LRB103 26981 RPS 53348 b

 

 



 

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1  Class 10. Class 1 Craft Distiller, Class 11. Class 2 Craft
2  Distiller, Class 12. Class 1 Brewer, Class 13. Class 2 Brewer,
3  Class 14. Class 3 Brewer,
4  (b) Distributor's license,
5  (c) Importing Distributor's license,
6  (d) Retailer's license,
7  (e) Special Event Retailer's license (not-for-profit),
8  (f) Railroad license,
9  (g) Boat license,
10  (h) Non-Beverage User's license,
11  (i) Wine-maker's premises license,
12  (j) Airplane license,
13  (k) Foreign importer's license,
14  (l) Broker's license,
15  (m) Non-resident dealer's license,
16  (n) Brew Pub license,
17  (o) Auction liquor license,
18  (p) Caterer retailer license,
19  (q) Special use permit license,
20  (r) Winery shipper's license,
21  (s) Craft distiller tasting permit,
22  (t) Brewer warehouse permit,
23  (u) Distilling pub license,
24  (v) Craft distiller warehouse permit,
25  (w) Beer showcase permit.
26  No person, firm, partnership, corporation, or other legal

 

 

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1  business entity that is engaged in the manufacturing of wine
2  may concurrently obtain and hold a wine-maker's license and a
3  wine manufacturer's license.
4  (a) A manufacturer's license shall allow the manufacture,
5  importation in bulk, storage, distribution and sale of
6  alcoholic liquor to persons without the State, as may be
7  permitted by law and to licensees in this State as follows:
8  Class 1. A Distiller may make sales and deliveries of
9  alcoholic liquor to distillers, rectifiers, importing
10  distributors, distributors and non-beverage users and to no
11  other licensees.
12  Class 2. A Rectifier, who is not a distiller, as defined
13  herein, may make sales and deliveries of alcoholic liquor to
14  rectifiers, importing distributors, distributors, retailers
15  and non-beverage users and to no other licensees.
16  Class 3. A Brewer may make sales and deliveries of beer to
17  importing distributors and distributors and may make sales as
18  authorized under subsection (e) of Section 6-4 of this Act,
19  including any alcoholic liquor that subsection (e) of Section
20  6-4 authorizes a brewer to sell in its original package only to
21  a non-licensee for pick-up by a non-licensee either within the
22  interior of the brewery premises or at outside of the brewery
23  premises at a curb-side or parking lot adjacent to the brewery
24  premises, subject to any local ordinance.
25  Class 4. A first class wine-manufacturer may make sales
26  and deliveries of up to 50,000 gallons of wine to

 

 

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

 

 

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  SB2216 - 5 - LRB103 26981 RPS 53348 b
1  Act 95-634), is a holder of a first-class wine-maker's license
2  and annually produces more than 25,000 gallons of its own wine
3  and who distributes its wine to licensed retailers shall cease
4  this practice on or before July 1, 2008 in compliance with
5  Public Act 95-634. If a first-class wine-maker manufactures
6  beer, it shall also obtain and shall only be eligible for, in
7  addition to any current license, a class 1 brewer license,
8  shall not manufacture more than 930,000 gallons of beer per
9  year, and shall not be a member of or affiliated with, directly
10  or indirectly, a manufacturer that produces more than 930,000
11  gallons of beer per year. If the first-class wine-maker
12  manufactures spirits, it shall also obtain and shall only be
13  eligible for, in addition to any current license, a class 1
14  craft distiller license, shall not manufacture more than
15  50,000 gallons of spirits per year, and shall not be a member
16  of or affiliated with, directly or indirectly, a manufacturer
17  that produces more than 50,000 gallons of spirits per year. A
18  first-class wine-maker holding a class 1 brewer license or a
19  class 1 craft distiller license shall not be eligible for a
20  wine-maker's premises license but shall be permitted to sell
21  wine manufactured at the first-class wine-maker premises to
22  non-licensees.
23  Class 7. A second-class wine-maker's license shall allow
24  the manufacture of up to 150,000 gallons of wine per year, and
25  the storage and sale of such wine to distributors in this State
26  and to persons without the State, as may be permitted by law. A

 

 

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1  person who, prior to June 1, 2008 (the effective date of Public
2  Act 95-634), is a holder of a second-class wine-maker's
3  license and annually produces more than 25,000 gallons of its
4  own wine and who distributes its wine to licensed retailers
5  shall cease this practice on or before July 1, 2008 in
6  compliance with Public Act 95-634. If a second-class
7  wine-maker manufactures beer, it shall also obtain and shall
8  only be eligible for, in addition to any current license, a
9  class 2 brewer license, shall not manufacture more than
10  3,720,000 gallons of beer per year, and shall not be a member
11  of or affiliated with, directly or indirectly, a manufacturer
12  that produces more than 3,720,000 gallons of beer per year. If
13  a second-class wine-maker manufactures spirits, it shall also
14  obtain and shall only be eligible for, in addition to any
15  current license, a class 2 craft distiller license, shall not
16  manufacture more than 100,000 gallons of spirits per year, and
17  shall not be a member of or affiliated with, directly or
18  indirectly, a manufacturer that produces more than 100,000
19  gallons of spirits per year.
20  Class 8. A limited wine-manufacturer may make sales and
21  deliveries not to exceed 40,000 gallons of wine per year to
22  distributors, and to non-licensees in accordance with the
23  provisions of this Act.
24  Class 9. A craft distiller license, which may only be held
25  by a class 1 craft distiller licensee or class 2 craft
26  distiller licensee but not held by both a class 1 craft

 

 

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1  distiller licensee and a class 2 craft distiller licensee,
2  shall grant all rights conveyed by either: (i) a class 1 craft
3  distiller license if the craft distiller holds a class 1 craft
4  distiller license; or (ii) a class 2 craft distiller licensee
5  if the craft distiller holds a class 2 craft distiller
6  license.
7  Class 10. A class 1 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  50,000 gallons of spirits per year provided that the class 1
11  craft distiller licensee does not manufacture more than a
12  combined 50,000 gallons of spirits per year and is not a member
13  of or affiliated with, directly or indirectly, a manufacturer
14  that produces more than 50,000 gallons of spirits per year. If
15  a class 1 craft distiller manufactures beer, it shall also
16  obtain and shall only be eligible for, in addition to any
17  current license, a class 1 brewer license, shall not
18  manufacture more than 930,000 gallons of beer per year, and
19  shall not be a member of or affiliated with, directly or
20  indirectly, a manufacturer that produces more than 930,000
21  gallons of beer per year. If a class 1 craft distiller
22  manufactures wine, it shall also obtain and shall only be
23  eligible for, in addition to any current license, a
24  first-class wine-manufacturer license or a first-class
25  wine-maker's license, shall not manufacture more than 50,000
26  gallons of wine per year, and shall not be a member of or

 

 

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

 

 

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1  Class 11. A class 2 craft distiller license, which may
2  only be issued to a licensed craft distiller or licensed
3  non-resident dealer, shall allow the manufacture of up to
4  100,000 gallons of spirits per year provided that the class 2
5  craft distiller licensee does not manufacture more than a
6  combined 100,000 gallons of spirits per year and is not a
7  member of or affiliated with, directly or indirectly, a
8  manufacturer that produces more than 100,000 gallons of
9  spirits per year. If a class 2 craft distiller manufactures
10  beer, it shall also obtain and shall only be eligible for, in
11  addition to any current license, a class 2 brewer license,
12  shall not manufacture more than 3,720,000 gallons of beer per
13  year, and shall not be a member of or affiliated with, directly
14  or indirectly, a manufacturer that produces more than
15  3,720,000 gallons of beer per year. If a class 2 craft
16  distiller manufactures wine, it shall also obtain and shall
17  only be eligible for, in addition to any current license, a
18  second-class wine-maker's license, shall not manufacture more
19  than 150,000 gallons of wine per year, and shall not be a
20  member of or affiliated with, directly or indirectly, a
21  manufacturer that produces more than 150,000 gallons of wine
22  per year. A class 2 craft distiller licensee may make sales and
23  deliveries to importing distributors and distributors, but
24  shall not make sales or deliveries to any other licensee. If
25  the State Commission provides prior approval, a class 2 craft
26  distiller licensee may annually transfer up to 100,000 gallons

 

 

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1  of spirits manufactured by that class 2 craft distiller
2  licensee to the premises of a licensed class 2 craft distiller
3  wholly owned and operated by the same licensee. A class 2 craft
4  distiller may transfer spirits to a distilling pub wholly
5  owned and operated by the class 2 craft distiller subject to
6  the following limitations and restrictions: (i) the transfer
7  shall not annually exceed more than 5,000 gallons; (ii) the
8  annual amount transferred shall reduce the distilling pub's
9  annual permitted production limit; (iii) all spirits
10  transferred shall be subject to Article VIII of this Act; (iv)
11  a written record shall be maintained by the distiller and
12  distilling pub specifying the amount, date of delivery, and
13  receipt of the product by the distilling pub; and (v) the
14  distilling pub shall be located no farther than 80 miles from
15  the class 2 craft distiller's licensed location.
16  A class 2 craft distiller shall, prior to transferring
17  spirits to a distilling pub wholly owned by the class 2 craft
18  distiller, furnish a written notice to the State Commission of
19  intent to transfer spirits setting forth the name and address
20  of the distilling pub and shall annually submit to the State
21  Commission a verified report identifying the total gallons of
22  spirits transferred to the distilling pub wholly owned by the
23  class 2 craft distiller.
24  A class 2 craft distiller license holder may store such
25  spirits at a non-contiguous licensed location, but at no time
26  shall a class 2 craft distiller license holder directly or

 

 

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1  indirectly produce in the aggregate more than 100,000 gallons
2  of spirits per year.
3  Class 12. A class 1 brewer license, which may only be
4  issued to a licensed brewer or licensed non-resident dealer,
5  shall allow the manufacture of up to 930,000 gallons of beer
6  per year provided that the class 1 brewer licensee does not
7  manufacture more than a combined 930,000 gallons of beer per
8  year and is not a member of or affiliated with, directly or
9  indirectly, a manufacturer that produces more than 930,000
10  gallons of beer per year. If a class 1 brewer manufactures
11  spirits, it shall also obtain and shall only be eligible for,
12  in addition to any current license, a class 1 craft distiller
13  license, shall not manufacture more than 50,000 gallons of
14  spirits per year, and shall not be a member of or affiliated
15  with, directly or indirectly, a manufacturer that produces
16  more than 50,000 gallons of spirits per year. If a class 1
17  craft brewer manufactures wine, it shall also obtain and shall
18  only be eligible for, in addition to any current license, a
19  first-class wine-manufacturer license or a first-class
20  wine-maker's license, shall not manufacture more than 50,000
21  gallons of wine per year, and shall not be a member of or
22  affiliated with, directly or indirectly, a manufacturer that
23  produces more than 50,000 gallons of wine per year. A class 1
24  brewer licensee may make sales and deliveries to importing
25  distributors and distributors and to retail licensees in
26  accordance with the conditions set forth in paragraph (18) of

 

 

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1  subsection (a) of Section 3-12 of this Act. If the State
2  Commission provides prior approval, a class 1 brewer may
3  annually transfer up to 930,000 gallons of beer manufactured
4  by that class 1 brewer to the premises of a licensed class 1
5  brewer wholly owned and operated by the same licensee.
6  Class 13. A class 2 brewer license, which may only be
7  issued to a licensed brewer or licensed non-resident dealer,
8  shall allow the manufacture of up to 3,720,000 gallons of beer
9  per year provided that the class 2 brewer licensee does not
10  manufacture more than a combined 3,720,000 gallons of beer per
11  year and is not a member of or affiliated with, directly or
12  indirectly, a manufacturer that produces more than 3,720,000
13  gallons of beer per year. If a class 2 brewer manufactures
14  spirits, it shall also obtain and shall only be eligible for,
15  in addition to any current license, a class 2 craft distiller
16  license, shall not manufacture more than 100,000 gallons of
17  spirits per year, and shall not be a member of or affiliated
18  with, directly or indirectly, a manufacturer that produces
19  more than 100,000 gallons of spirits per year. If a class 2
20  craft distiller manufactures wine, it shall also obtain and
21  shall only be eligible for, in addition to any current
22  license, a second-class wine-maker's license, shall not
23  manufacture more than 150,000 gallons of wine per year, and
24  shall not be a member of or affiliated with, directly or
25  indirectly, a manufacturer that produces more than 150,000
26  gallons of wine a year. A class 2 brewer licensee may make

 

 

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1  sales and deliveries to importing distributors and
2  distributors, but shall not make sales or deliveries to any
3  other licensee. If the State Commission provides prior
4  approval, a class 2 brewer licensee may annually transfer up
5  to 3,720,000 gallons of beer manufactured by that class 2
6  brewer licensee to the premises of a licensed class 2 brewer
7  wholly owned and operated by the same licensee.
8  A class 2 brewer may transfer beer to a brew pub wholly
9  owned and operated by the class 2 brewer subject to the
10  following limitations and restrictions: (i) the transfer shall
11  not annually exceed more than 139,500 31,000 gallons; (ii) the
12  annual amount transferred shall reduce the brew pub's annual
13  permitted production limit; (iii) all beer transferred shall
14  be subject to Article VIII of this Act; (iv) a written record
15  shall be maintained by the brewer and brew pub specifying the
16  amount, date of delivery, and receipt of the product by the
17  brew pub; and (v) the brew pub shall be located no farther than
18  80 miles from the class 2 brewer's licensed location.
19  A class 2 brewer shall, prior to transferring beer to a
20  brew pub wholly owned by the class 2 brewer, furnish a written
21  notice to the State Commission of intent to transfer beer
22  setting forth the name and address of the brew pub and shall
23  annually submit to the State Commission a verified report
24  identifying the total gallons of beer transferred to the brew
25  pub wholly owned by the class 2 brewer.
26  Class 14. A class 3 brewer license, which may be issued to

 

 

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  SB2216 - 14 - LRB103 26981 RPS 53348 b
1  a brewer or a non-resident dealer, shall allow the manufacture
2  of no more than 465,000 gallons of beer per year and no more
3  than 155,000 gallons at a single brewery premises, and shall
4  allow the sale of no more than 77,500 6,200 gallons of beer
5  from each in-state or out-of-state class 3 brewery premises,
6  or 232,500 18,600 gallons in the aggregate, to retail
7  licensees, class 1 brewers, class 2 brewers, and class 3
8  brewers as long as the class 3 brewer licensee does not
9  manufacture more than a combined 465,000 gallons of beer per
10  year and is not a member of or affiliated with, directly or
11  indirectly, a manufacturer that produces more than 465,000
12  gallons of beer per year to make sales to importing
13  distributors, distributors, retail licensees, brewers, class 1
14  brewers, class 2 brewers, and class 3 brewers in accordance
15  with the conditions set forth in paragraph (20) of subsection
16  (a) of Section 3-12. If the State Commission provides prior
17  approval, a class 3 brewer may annually transfer up to 155,000
18  gallons of beer manufactured by that class 3 brewer to the
19  premises of a licensed class 3 brewer wholly owned and
20  operated by the same licensee. A class 3 brewer shall
21  manufacture beer at the brewer's class 3 designated licensed
22  premises, and may sell beer as otherwise provided in this Act.
23  (a-1) A manufacturer which is licensed in this State to
24  make sales or deliveries of alcoholic liquor to licensed
25  distributors or importing distributors and which enlists
26  agents, representatives, or individuals acting on its behalf

 

 

  SB2216 - 14 - LRB103 26981 RPS 53348 b


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  SB2216 - 15 - LRB103 26981 RPS 53348 b
1  who contact licensed retailers on a regular and continual
2  basis in this State must register those agents,
3  representatives, or persons acting on its behalf with the
4  State Commission.
5  Registration of agents, representatives, or persons acting
6  on behalf of a manufacturer is fulfilled by submitting a form
7  to the Commission. The form shall be developed by the
8  Commission and shall include the name and address of the
9  applicant, the name and address of the manufacturer he or she
10  represents, the territory or areas assigned to sell to or
11  discuss pricing terms of alcoholic liquor, and any other
12  questions deemed appropriate and necessary. All statements in
13  the forms required to be made by law or by rule shall be deemed
14  material, and any person who knowingly misstates any material
15  fact under oath in an application is guilty of a Class B
16  misdemeanor. Fraud, misrepresentation, false statements,
17  misleading statements, evasions, or suppression of material
18  facts in the securing of a registration are grounds for
19  suspension or revocation of the registration. The State
20  Commission shall post a list of registered agents on the
21  Commission's website.
22  (b) A distributor's license shall allow (i) the wholesale
23  purchase and storage of alcoholic liquors and sale of
24  alcoholic liquors to licensees in this State and to persons
25  without the State, as may be permitted by law; (ii) the sale of
26  beer, cider, mead, or any combination thereof to brewers,

 

 

  SB2216 - 15 - LRB103 26981 RPS 53348 b


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  SB2216 - 16 - LRB103 26981 RPS 53348 b
1  class 1 brewers, and class 2 brewers that, pursuant to
2  subsection (e) of Section 6-4 of this Act, sell beer, cider,
3  mead, or any combination thereof to non-licensees at their
4  breweries; (iii) the sale of vermouth to class 1 craft
5  distillers and class 2 craft distillers that, pursuant to
6  subsection (e) of Section 6-4 of this Act, sell spirits,
7  vermouth, or both spirits and vermouth to non-licensees at
8  their distilleries; or (iv) as otherwise provided in this Act.
9  No person licensed as a distributor shall be granted a
10  non-resident dealer's license.
11  (c) An importing distributor's license may be issued to
12  and held by those only who are duly licensed distributors,
13  upon the filing of an application by a duly licensed
14  distributor, with the Commission and the Commission shall,
15  without the payment of any fee, immediately issue such
16  importing distributor's license to the applicant, which shall
17  allow the importation of alcoholic liquor by the licensee into
18  this State from any point in the United States outside this
19  State, and the purchase of alcoholic liquor in barrels, casks
20  or other bulk containers and the bottling of such alcoholic
21  liquors before resale thereof, but all bottles or containers
22  so filled shall be sealed, labeled, stamped and otherwise made
23  to comply with all provisions, rules and regulations governing
24  manufacturers in the preparation and bottling of alcoholic
25  liquors. The importing distributor's license shall permit such
26  licensee to purchase alcoholic liquor from Illinois licensed

 

 

  SB2216 - 16 - LRB103 26981 RPS 53348 b


SB2216- 17 -LRB103 26981 RPS 53348 b   SB2216 - 17 - LRB103 26981 RPS 53348 b
  SB2216 - 17 - LRB103 26981 RPS 53348 b
1  non-resident dealers and foreign importers only. No person
2  licensed as an importing distributor shall be granted a
3  non-resident dealer's license.
4  (d) A retailer's license shall allow the licensee to sell
5  and offer for sale at retail, only in the premises specified in
6  the license, alcoholic liquor for use or consumption, but not
7  for resale in any form. Except as provided in Section 6-16,
8  6-29, or 6-29.1, nothing in this Act shall deny, limit,
9  remove, or restrict the ability of a holder of a retailer's
10  license to transfer or ship alcoholic liquor to the purchaser
11  for use or consumption subject to any applicable local law or
12  ordinance. For the purposes of this Section, "shipping" means
13  the movement of alcoholic liquor from a licensed retailer to a
14  consumer via a common carrier. Except as provided in Section
15  6-16, 6-29, or 6-29.1, nothing in this Act shall deny, limit,
16  remove, or restrict the ability of a holder of a retailer's
17  license to deliver alcoholic liquor to the purchaser for use
18  or consumption. The delivery shall be made only within 12
19  hours from the time the alcoholic liquor leaves the licensed
20  premises of the retailer for delivery. For the purposes of
21  this Section, "delivery" means the movement of alcoholic
22  liquor purchased from a licensed retailer to a consumer
23  through the following methods:
24  (1) delivery within licensed retailer's parking lot,
25  including curbside, for pickup by the consumer;
26  (2) delivery by an owner, officer, director,

 

 

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  SB2216 - 18 - LRB103 26981 RPS 53348 b
1  shareholder, or employee of the licensed retailer; or
2  (3) delivery by a third-party contractor, independent
3  contractor, or agent with whom the licensed retailer has
4  contracted to make deliveries of alcoholic liquors.
5  Under subsection (1), (2), or (3), delivery shall not
6  include the use of common carriers.
7  Any retail license issued to a manufacturer shall only
8  permit the manufacturer to sell beer at retail on the premises
9  actually occupied by the manufacturer. For the purpose of
10  further describing the type of business conducted at a retail
11  licensed premises, a retailer's licensee may be designated by
12  the State Commission as (i) an on premise consumption
13  retailer, (ii) an off premise sale retailer, or (iii) a
14  combined on premise consumption and off premise sale retailer.
15  Except for a municipality with a population of more than
16  1,000,000 inhabitants, a home rule unit may not regulate the
17  delivery of alcoholic liquor inconsistent with this
18  subsection. This paragraph is a limitation under subsection
19  (i) of Section 6 of Article VII of the Illinois Constitution on
20  the concurrent exercise by home rule units of powers and
21  functions exercised by the State.
22  Notwithstanding any other provision of this subsection
23  (d), a retail licensee may sell alcoholic liquors to a special
24  event retailer licensee for resale to the extent permitted
25  under subsection (e).
26  (e) A special event retailer's license (not-for-profit)

 

 

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  SB2216 - 19 - LRB103 26981 RPS 53348 b
1  shall permit the licensee to purchase alcoholic liquors from
2  an Illinois licensed distributor (unless the licensee
3  purchases less than $500 of alcoholic liquors for the special
4  event, in which case the licensee may purchase the alcoholic
5  liquors from a licensed retailer) and shall allow the licensee
6  to sell and offer for sale, at retail, alcoholic liquors for
7  consumption on or off the premises specified in the license
8  use or consumption, but not for resale in any form and only at
9  the location and on the specific dates designated for the
10  special event in the license. An applicant for a special event
11  retailer license must (i) furnish with the application: (A) a
12  resale number issued under Section 2c of the Retailers'
13  Occupation Tax Act or evidence that the applicant is
14  registered under Section 2a of the Retailers' Occupation Tax
15  Act, (B) a current, valid exemption identification number
16  issued under Section 1g of the Retailers' Occupation Tax Act,
17  and a certification to the Commission that the purchase of
18  alcoholic liquors will be a tax-exempt purchase, or (C) a
19  statement that the applicant is not registered under Section
20  2a of the Retailers' Occupation Tax Act, does not hold a resale
21  number under Section 2c of the Retailers' Occupation Tax Act,
22  and does not hold an exemption number under Section 1g of the
23  Retailers' Occupation Tax Act, in which event the Commission
24  shall set forth on the special event retailer's license a
25  statement to that effect; (ii) submit with the application
26  proof satisfactory to the State Commission that the applicant

 

 

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  SB2216 - 20 - LRB103 26981 RPS 53348 b
1  will provide dram shop liability insurance in the maximum
2  limits; and (iii) show proof satisfactory to the State
3  Commission that the applicant has obtained local authority
4  approval.
5  Nothing in this Act prohibits an Illinois licensed
6  distributor from offering credit or a refund for unused,
7  salable alcoholic liquors to a holder of a special event
8  retailer's license or the special event retailer's licensee
9  from accepting the credit or refund of alcoholic liquors at
10  the conclusion of the event specified in the license.
11  (f) A railroad license shall permit the licensee to import
12  alcoholic liquors into this State from any point in the United
13  States outside this State and to store such alcoholic liquors
14  in this State; to make wholesale purchases of alcoholic
15  liquors directly from manufacturers, foreign importers,
16  distributors and importing distributors from within or outside
17  this State; and to store such alcoholic liquors in this State;
18  provided that the above powers may be exercised only in
19  connection with the importation, purchase or storage of
20  alcoholic liquors to be sold or dispensed on a club, buffet,
21  lounge or dining car operated on an electric, gas or steam
22  railway in this State; and provided further, that railroad
23  licensees exercising the above powers shall be subject to all
24  provisions of Article VIII of this Act as applied to importing
25  distributors. A railroad license shall also permit the
26  licensee to sell or dispense alcoholic liquors on any club,

 

 

  SB2216 - 20 - LRB103 26981 RPS 53348 b


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  SB2216 - 21 - LRB103 26981 RPS 53348 b
1  buffet, lounge or dining car operated on an electric, gas or
2  steam railway regularly operated by a common carrier in this
3  State, but shall not permit the sale for resale of any
4  alcoholic liquors to any licensee within this State. A license
5  shall be obtained for each car in which such sales are made.
6  (g) A boat license shall allow the sale of alcoholic
7  liquor in individual drinks, on any passenger boat regularly
8  operated as a common carrier on navigable waters in this State
9  or on any riverboat operated under the Illinois Gambling Act,
10  which boat or riverboat maintains a public dining room or
11  restaurant thereon.
12  (h) A non-beverage user's license shall allow the licensee
13  to purchase alcoholic liquor from a licensed manufacturer or
14  importing distributor, without the imposition of any tax upon
15  the business of such licensed manufacturer or importing
16  distributor as to such alcoholic liquor to be used by such
17  licensee solely for the non-beverage purposes set forth in
18  subsection (a) of Section 8-1 of this Act, and such licenses
19  shall be divided and classified and shall permit the purchase,
20  possession and use of limited and stated quantities of
21  alcoholic liquor as follows:
22  Class 1, not to exceed ......................... 500 gallons
23  Class 2, not to exceed ....................... 1,000 gallons
24  Class 3, not to exceed ....................... 5,000 gallons
25  Class 4, not to exceed ...................... 10,000 gallons
26  Class 5, not to exceed ....................... 50,000 gallons

 

 

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  SB2216 - 22 - LRB103 26981 RPS 53348 b
1  (i) A wine-maker's premises license shall allow a licensee
2  that concurrently holds a first-class wine-maker's license to
3  sell and offer for sale at retail in the premises specified in
4  such license not more than 50,000 gallons of the first-class
5  wine-maker's wine that is made at the first-class wine-maker's
6  licensed premises per year for use or consumption, but not for
7  resale in any form. A wine-maker's premises license shall
8  allow a licensee who concurrently holds a second-class
9  wine-maker's license to sell and offer for sale at retail in
10  the premises specified in such license up to 100,000 gallons
11  of the second-class wine-maker's wine that is made at the
12  second-class wine-maker's licensed premises per year for use
13  or consumption but not for resale in any form. A first-class
14  wine-maker that concurrently holds a class 1 brewer license or
15  a class 1 craft distiller license shall not be eligible to hold
16  a wine-maker's premises license. A wine-maker's premises
17  license shall allow a licensee that concurrently holds a
18  first-class wine-maker's license or a second-class
19  wine-maker's license to sell and offer for sale at retail at
20  the premises specified in the wine-maker's premises license,
21  for use or consumption but not for resale in any form, any
22  beer, wine, and spirits purchased from a licensed distributor.
23  Upon approval from the State Commission, a wine-maker's
24  premises license shall allow the licensee to sell and offer
25  for sale at (i) the wine-maker's licensed premises and (ii) at
26  up to 2 additional locations for use and consumption and not

 

 

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  SB2216 - 23 - LRB103 26981 RPS 53348 b
1  for resale. Each location shall require additional licensing
2  per location as specified in Section 5-3 of this Act. A
3  wine-maker's premises licensee shall secure liquor liability
4  insurance coverage in an amount at least equal to the maximum
5  liability amounts set forth in subsection (a) of Section 6-21
6  of this Act.
7  (j) An airplane license shall permit the licensee to
8  import alcoholic liquors into this State from any point in the
9  United States outside this State and to store such alcoholic
10  liquors in this State; to make wholesale purchases of
11  alcoholic liquors directly from manufacturers, foreign
12  importers, distributors and importing distributors from within
13  or outside this State; and to store such alcoholic liquors in
14  this State; provided that the above powers may be exercised
15  only in connection with the importation, purchase or storage
16  of alcoholic liquors to be sold or dispensed on an airplane;
17  and provided further, that airplane licensees exercising the
18  above powers shall be subject to all provisions of Article
19  VIII of this Act as applied to importing distributors. An
20  airplane licensee shall also permit the sale or dispensing of
21  alcoholic liquors on any passenger airplane regularly operated
22  by a common carrier in this State, but shall not permit the
23  sale for resale of any alcoholic liquors to any licensee
24  within this State. A single airplane license shall be required
25  of an airline company if liquor service is provided on board
26  aircraft in this State. The annual fee for such license shall

 

 

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  SB2216 - 24 - LRB103 26981 RPS 53348 b
1  be as determined in Section 5-3.
2  (k) A foreign importer's license shall permit such
3  licensee to purchase alcoholic liquor from Illinois licensed
4  non-resident dealers only, and to import alcoholic liquor
5  other than in bulk from any point outside the United States and
6  to sell such alcoholic liquor to Illinois licensed importing
7  distributors and to no one else in Illinois; provided that (i)
8  the foreign importer registers with the State Commission every
9  brand of alcoholic liquor that it proposes to sell to Illinois
10  licensees during the license period, (ii) the foreign importer
11  complies with all of the provisions of Section 6-9 of this Act
12  with respect to registration of such Illinois licensees as may
13  be granted the right to sell such brands at wholesale, and
14  (iii) the foreign importer complies with the provisions of
15  Sections 6-5 and 6-6 of this Act to the same extent that these
16  provisions apply to manufacturers.
17  (l) (i) A broker's license shall be required of all
18  persons who solicit orders for, offer to sell or offer to
19  supply alcoholic liquor to retailers in the State of Illinois,
20  or who offer to retailers to ship or cause to be shipped or to
21  make contact with distillers, craft distillers, rectifiers,
22  brewers or manufacturers or any other party within or without
23  the State of Illinois in order that alcoholic liquors be
24  shipped to a distributor, importing distributor or foreign
25  importer, whether such solicitation or offer is consummated
26  within or without the State of Illinois.

 

 

  SB2216 - 24 - LRB103 26981 RPS 53348 b


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  SB2216 - 25 - LRB103 26981 RPS 53348 b
1  No holder of a retailer's license issued by the Illinois
2  Liquor Control Commission shall purchase or receive any
3  alcoholic liquor, the order for which was solicited or offered
4  for sale to such retailer by a broker unless the broker is the
5  holder of a valid broker's license.
6  The broker shall, upon the acceptance by a retailer of the
7  broker's solicitation of an order or offer to sell or supply or
8  deliver or have delivered alcoholic liquors, promptly forward
9  to the Illinois Liquor Control Commission a notification of
10  said transaction in such form as the Commission may by
11  regulations prescribe.
12  (ii) A broker's license shall be required of a person
13  within this State, other than a retail licensee, who, for a fee
14  or commission, promotes, solicits, or accepts orders for
15  alcoholic liquor, for use or consumption and not for resale,
16  to be shipped from this State and delivered to residents
17  outside of this State by an express company, common carrier,
18  or contract carrier. This Section does not apply to any person
19  who promotes, solicits, or accepts orders for wine as
20  specifically authorized in Section 6-29 of this Act.
21  A broker's license under this subsection (l) shall not
22  entitle the holder to buy or sell any alcoholic liquors for his
23  own account or to take or deliver title to such alcoholic
24  liquors.
25  This subsection (l) shall not apply to distributors,
26  employees of distributors, or employees of a manufacturer who

 

 

  SB2216 - 25 - LRB103 26981 RPS 53348 b


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  SB2216 - 26 - LRB103 26981 RPS 53348 b
1  has registered the trademark, brand or name of the alcoholic
2  liquor pursuant to Section 6-9 of this Act, and who regularly
3  sells such alcoholic liquor in the State of Illinois only to
4  its registrants thereunder.
5  Any agent, representative, or person subject to
6  registration pursuant to subsection (a-1) of this Section
7  shall not be eligible to receive a broker's license.
8  (m) A non-resident dealer's license shall permit such
9  licensee to ship into and warehouse alcoholic liquor into this
10  State from any point outside of this State, and to sell such
11  alcoholic liquor to Illinois licensed foreign importers and
12  importing distributors and to no one else in this State;
13  provided that (i) said non-resident dealer shall register with
14  the Illinois Liquor Control Commission each and every brand of
15  alcoholic liquor which it proposes to sell to Illinois
16  licensees during the license period, (ii) it shall comply with
17  all of the provisions of Section 6-9 hereof with respect to
18  registration of such Illinois licensees as may be granted the
19  right to sell such brands at wholesale by duly filing such
20  registration statement, thereby authorizing the non-resident
21  dealer to proceed to sell such brands at wholesale, and (iii)
22  the non-resident dealer shall comply with the provisions of
23  Sections 6-5 and 6-6 of this Act to the same extent that these
24  provisions apply to manufacturers. No person licensed as a
25  non-resident dealer shall be granted a distributor's or
26  importing distributor's license.

 

 

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  SB2216 - 27 - LRB103 26981 RPS 53348 b
1  (n) A brew pub license shall allow the licensee to only (i)
2  manufacture up to 155,000 gallons of beer per year only on the
3  premises specified in the license, (ii) make sales of the beer
4  manufactured on the premises or, with the approval of the
5  Commission, beer manufactured on another brew pub licensed
6  premises that is wholly owned and operated by the same
7  licensee to importing distributors, distributors, and to
8  non-licensees for use and consumption, (iii) store the beer
9  upon the premises, (iv) sell and offer for sale at retail from
10  the licensed premises for off-premises consumption no more
11  than 155,000 gallons per year so long as such sales are only
12  made in-person, (v) sell and offer for sale at retail for use
13  and consumption on the premises specified in the license any
14  form of alcoholic liquor purchased from a licensed distributor
15  or importing distributor, (vi) with the prior approval of the
16  Commission, annually transfer no more than 155,000 gallons of
17  beer manufactured on the premises to a licensed brew pub
18  wholly owned and operated by the same licensee, and (vii)
19  notwithstanding item (i) of this subsection, brew pubs wholly
20  owned and operated by the same licensee may combine each
21  location's production limit of 155,000 gallons of beer per
22  year and allocate the aggregate total between the wholly
23  owned, operated, and licensed locations.
24  A brew pub licensee shall not under any circumstance sell
25  or offer for sale beer manufactured by the brew pub licensee to
26  retail licensees.

 

 

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  SB2216 - 28 - LRB103 26981 RPS 53348 b
1  A person who holds a class 2 brewer license may
2  simultaneously hold a brew pub license if the class 2 brewer
3  (i) does not, under any circumstance, sell or offer for sale
4  beer manufactured by the class 2 brewer to retail licensees;
5  (ii) does not hold more than 3 brew pub licenses in this State;
6  (iii) does not manufacture more than a combined 3,720,000
7  gallons of beer per year, including the beer manufactured at
8  the brew pub; and (iv) is not a member of or affiliated with,
9  directly or indirectly, a manufacturer that produces more than
10  3,720,000 gallons of beer per year or any other alcoholic
11  liquor.
12  Notwithstanding any other provision of this Act, a
13  licensed brewer, class 2 brewer, or non-resident dealer who
14  before July 1, 2015 manufactured less than 3,720,000 gallons
15  of beer per year and held a brew pub license on or before July
16  1, 2015 may (i) continue to qualify for and hold that brew pub
17  license for the licensed premises and (ii) manufacture more
18  than 3,720,000 gallons of beer per year and continue to
19  qualify for and hold that brew pub license if that brewer,
20  class 2 brewer, or non-resident dealer does not simultaneously
21  hold a class 1 brewer license and is not a member of or
22  affiliated with, directly or indirectly, a manufacturer that
23  produces more than 3,720,000 gallons of beer per year or that
24  produces any other alcoholic liquor.
25  A brew pub licensee may apply for a class 3 brewer license
26  and, upon: (i) meeting all applicable qualifications of this

 

 

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  SB2216 - 29 - LRB103 26981 RPS 53348 b
1  Act, and relinquishing all commonly owned brew pub or retail
2  licenses, shall be issued a class 3 brewer license. Nothing in
3  this Act shall prohibit the issuance of a class 3 brewer
4  license if the applicant:
5  (1) has a valid retail license on or before May 1,
6  2021;
7  (2) has an ownership interest in at least two brew
8  pubs licenses on or before May 1, 2021;
9  (3) the brew pub licensee applies for a class 3 brewer
10  license on or before October 1, 2022 and relinquishes all
11  commonly owned brew pub licenses; and
12  (4) relinquishes all commonly owned retail licenses on
13  or before December 31, 2022.
14  If a brew pub licensee is issued a class 3 brewer license,
15  the class 3 brewer license shall expire on the same date as the
16  existing brew pub license and the State Commission shall not
17  require a class 3 brewer licensee to obtain a brewer license,
18  or in the alternative to pay a fee for a brewer license, until
19  the date the brew pub license of the applicant would have
20  expired.
21  (o) A caterer retailer license shall allow the holder to
22  serve alcoholic liquors as an incidental part of a food
23  service that serves prepared meals which excludes the serving
24  of snacks as the primary meal, either on or off-site whether
25  licensed or unlicensed. A caterer retailer license shall allow
26  the holder, a distributor, or an importing distributor to

 

 

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  SB2216 - 30 - LRB103 26981 RPS 53348 b
1  transfer any inventory to and from the holder's retail
2  premises and shall allow the holder to purchase alcoholic
3  liquor from a distributor or importing distributor to be
4  delivered directly to an off-site event.
5  Nothing in this Act prohibits a distributor or importing
6  distributor from offering credit or a refund for unused,
7  salable beer to a holder of a caterer retailer license or a
8  caterer retailer licensee from accepting a credit or refund
9  for unused, salable beer, in the event an act of God is the
10  sole reason an off-site event is cancelled and if: (i) the
11  holder of a caterer retailer license has not transferred
12  alcoholic liquor from its caterer retailer premises to an
13  off-site location; (ii) the distributor or importing
14  distributor offers the credit or refund for the unused,
15  salable beer that it delivered to the off-site premises and
16  not for any unused, salable beer that the distributor or
17  importing distributor delivered to the caterer retailer's
18  premises; and (iii) the unused, salable beer would likely
19  spoil if transferred to the caterer retailer's premises. A
20  caterer retailer license shall allow the holder to transfer
21  any inventory from any off-site location to its caterer
22  retailer premises at the conclusion of an off-site event or
23  engage a distributor or importing distributor to transfer any
24  inventory from any off-site location to its caterer retailer
25  premises at the conclusion of an off-site event, provided that
26  the distributor or importing distributor issues bona fide

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1  licensed winery shipper.
2  (s) A craft distiller tasting permit license shall allow
3  an Illinois licensed class 1 craft distiller or class 2 craft
4  distiller to transfer a portion of its alcoholic liquor
5  inventory from its class 1 craft distiller or class 2 craft
6  distiller licensed premises to the premises specified in the
7  license hereby created and to conduct a sampling, only in the
8  premises specified in the license hereby created, of the
9  transferred alcoholic liquor in accordance with subsection (c)
10  of Section 6-31 of this Act. The transferred alcoholic liquor
11  may not be sold or resold in any form. An applicant for the
12  craft distiller tasting permit license must also submit with
13  the application proof satisfactory to the State Commission
14  that the applicant will provide dram shop liability insurance
15  to the maximum limits and have local authority approval.
16  (t) A brewer warehouse permit may be issued to the holder
17  of a class 1 brewer license or a class 2 brewer license. If the
18  holder of the permit is a class 1 brewer licensee, the brewer
19  warehouse permit shall allow the holder to store or warehouse
20  up to 930,000 gallons of tax-determined beer manufactured by
21  the holder of the permit at the premises specified on the
22  permit. If the holder of the permit is a class 2 brewer
23  licensee, the brewer warehouse permit shall allow the holder
24  to store or warehouse up to 3,720,000 gallons of
25  tax-determined beer manufactured by the holder of the permit
26  at the premises specified on the permit. Sales to

 

 

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

 

 

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

 

 

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1  specified in the beer showcase permit license, the transferred
2  or delivered beer for on or off premise consumption, but not
3  for resale in any form and to sell to non-licensees not more
4  than 96 fluid ounces of beer per person. A beer showcase permit
5  license may be granted for the following time periods: one day
6  or less; or 2 or more days to a maximum of 15 days per location
7  in any 12-month period. An applicant for a beer showcase
8  permit license must also submit with the application proof
9  satisfactory to the State Commission that the applicant will
10  provide dram shop liability insurance to the maximum limits
11  and have local authority approval. The State Commission shall
12  require the beer showcase applicant to comply with Section
13  6-27.1.
14  (Source: P.A. 101-16, eff. 6-14-19; 101-31, eff. 6-28-19;
15  101-81, eff. 7-12-19; 101-482, eff. 8-23-19; 101-517, eff.
16  8-23-19; 101-615, eff. 12-20-19; 101-668, eff. 1-1-22;
17  102-442, eff. 8-20-21; revised 2-28-22.)
18  (235 ILCS 5/6-40 new)
19  Sec. 6-40. Consumer loyalty and reward programs.
20  (a) In this Section, "consumer loyalty and reward program"
21  means any program offered to consumers by a licensed retailer
22  or manufacturer with retail privileges designed to allow a
23  consumer to access rewards for purchases made at the retailer.
24  "Consumer loyalty and reward program" includes, but is not
25  limited to, point accumulation programs, memberships in

 

 

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1  retailer clubs or organizations, email lists or other forms of
2  registration by a consumer in a retailer program, or mug
3  clubs.
4  (b) Any retail licensee or licensed manufacturer with
5  retail privileges may offer incentives to consumers for
6  participation in a consumer loyalty and reward program.
7  (c) Any retail licensee or licensed manufacturer with
8  retail privileges may, as part of a consumer loyalty and
9  reward program, offer consumers discounts on its products.
10  (d) Any retail licensee or licensed manufacturer with
11  retail privileges may offer benefits to the members or
12  participants of a consumer loyalty and reward program that are
13  not offered to other consumers.
14  (e) Any retail licensee or licensed manufacturer with
15  retail privileges may offer specialty glassware for sale to
16  members or participants in a consumer loyalty and reward
17  program and offer a price discount to the owner of that
18  glassware for additional purchases using the glassware.
19  (235 ILCS 5/8-10.5)
20  Sec. 8-10.5. Beer production quantity reporting.
21  (a) As used in this Section:
22  "Directly" means that a licensed distributor was not used
23  in the transaction.
24  "Final packaging container" means the last vessel in which
25  beer is held before (i) consumption by an individual on the

 

 

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1  brewer's licensed premises; (ii) being placed in a keg,
2  bottle, or can for consumption by an individual; or (iii)
3  being removed for additional fermentation and aging in a cask
4  or barrel.
5  (b) A brewer who is a class 1 brewer, class 2 brewer, class
6  3 brewer, or brew pub licensee shall accurately measure the
7  quantity of beer transferred into its final packaging
8  container to determine the brewer's tax liability by
9  converting beer production into the amount of beer sold and to
10  ensure compliance with any production or self-distribution
11  quantity limitations under this Act applicable to the class 1
12  brewer, class 2 brewer, class 3 brewer, or brew pub. The
13  measurement shall comply with 27 CFR 25.41 and 27 CFR 25.42.
14  Any brewer subject to this Section shall file, on the same date
15  as the brewer files similar reports with the U.S. Department
16  of the Treasury's Tobacco and Alcohol Tax and Trade Bureau,
17  with the Department and State Commission a report of their use
18  of water along with their "Brewer's Report of Operations"
19  filed with the U.S. Department of Treasury's Alcohol and
20  Tobacco Tax and Trade Bureau and shall maintain and produce
21  for examination and inspection by the Department and the State
22  Commission utility bills for water for 3 years along with
23  their "Brewer's Report of Operations" filed with the U.S.
24  Department of Treasury's Alcohol and Tobacco Tax and Trade
25  Bureau. The Department, in cooperation with the State
26  Commission, may audit on an annual basis the amount a class 1

 

 

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1  brewer, class 2 brewer, class 3 brewer, or brew pub licensee
2  produces to determine compliance with this Act.
3  (c) A brewer's failure to comply with this Section shall
4  result in the State Commission issuing a fine or suspending or
5  revoking the brewer's license.
6  (Source: P.A. 102-442, eff. 8-20-21.)

 

 

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