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 SB2216 LRB103 26981 RPS 53348 b SB2216- 2 -LRB103 26981 RPS 53348 b SB2216 - 2 - LRB103 26981 RPS 53348 b SB2216 - 2 - LRB103 26981 RPS 53348 b 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 SB2216 - 2 - LRB103 26981 RPS 53348 b SB2216- 3 -LRB103 26981 RPS 53348 b SB2216 - 3 - LRB103 26981 RPS 53348 b SB2216 - 3 - LRB103 26981 RPS 53348 b 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 SB2216 - 3 - LRB103 26981 RPS 53348 b SB2216- 4 -LRB103 26981 RPS 53348 b SB2216 - 4 - LRB103 26981 RPS 53348 b SB2216 - 4 - LRB103 26981 RPS 53348 b 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 SB2216 - 4 - LRB103 26981 RPS 53348 b SB2216- 5 -LRB103 26981 RPS 53348 b SB2216 - 5 - LRB103 26981 RPS 53348 b 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 SB2216 - 5 - LRB103 26981 RPS 53348 b SB2216- 6 -LRB103 26981 RPS 53348 b SB2216 - 6 - LRB103 26981 RPS 53348 b SB2216 - 6 - LRB103 26981 RPS 53348 b 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 SB2216 - 6 - LRB103 26981 RPS 53348 b SB2216- 7 -LRB103 26981 RPS 53348 b SB2216 - 7 - LRB103 26981 RPS 53348 b SB2216 - 7 - LRB103 26981 RPS 53348 b 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 SB2216 - 7 - LRB103 26981 RPS 53348 b SB2216- 8 -LRB103 26981 RPS 53348 b SB2216 - 8 - LRB103 26981 RPS 53348 b SB2216 - 8 - LRB103 26981 RPS 53348 b 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. SB2216 - 8 - LRB103 26981 RPS 53348 b SB2216- 9 -LRB103 26981 RPS 53348 b SB2216 - 9 - LRB103 26981 RPS 53348 b SB2216 - 9 - LRB103 26981 RPS 53348 b 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 SB2216 - 9 - LRB103 26981 RPS 53348 b SB2216- 10 -LRB103 26981 RPS 53348 b SB2216 - 10 - LRB103 26981 RPS 53348 b SB2216 - 10 - LRB103 26981 RPS 53348 b 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 SB2216 - 10 - LRB103 26981 RPS 53348 b SB2216- 11 -LRB103 26981 RPS 53348 b SB2216 - 11 - LRB103 26981 RPS 53348 b SB2216 - 11 - LRB103 26981 RPS 53348 b 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 SB2216 - 11 - LRB103 26981 RPS 53348 b SB2216- 12 -LRB103 26981 RPS 53348 b SB2216 - 12 - LRB103 26981 RPS 53348 b SB2216 - 12 - LRB103 26981 RPS 53348 b 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 SB2216 - 12 - LRB103 26981 RPS 53348 b SB2216- 13 -LRB103 26981 RPS 53348 b SB2216 - 13 - LRB103 26981 RPS 53348 b SB2216 - 13 - LRB103 26981 RPS 53348 b 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 SB2216 - 13 - LRB103 26981 RPS 53348 b SB2216- 14 -LRB103 26981 RPS 53348 b SB2216 - 14 - LRB103 26981 RPS 53348 b 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 SB2216- 15 -LRB103 26981 RPS 53348 b SB2216 - 15 - LRB103 26981 RPS 53348 b 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 SB2216- 16 -LRB103 26981 RPS 53348 b SB2216 - 16 - LRB103 26981 RPS 53348 b 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, SB2216 - 17 - LRB103 26981 RPS 53348 b SB2216- 18 -LRB103 26981 RPS 53348 b SB2216 - 18 - LRB103 26981 RPS 53348 b 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) SB2216 - 18 - LRB103 26981 RPS 53348 b SB2216- 19 -LRB103 26981 RPS 53348 b SB2216 - 19 - LRB103 26981 RPS 53348 b 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 SB2216 - 19 - LRB103 26981 RPS 53348 b SB2216- 20 -LRB103 26981 RPS 53348 b SB2216 - 20 - LRB103 26981 RPS 53348 b 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 SB2216- 21 -LRB103 26981 RPS 53348 b SB2216 - 21 - LRB103 26981 RPS 53348 b 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 SB2216 - 21 - LRB103 26981 RPS 53348 b SB2216- 22 -LRB103 26981 RPS 53348 b SB2216 - 22 - LRB103 26981 RPS 53348 b 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 SB2216 - 22 - LRB103 26981 RPS 53348 b SB2216- 23 -LRB103 26981 RPS 53348 b SB2216 - 23 - LRB103 26981 RPS 53348 b 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 SB2216 - 23 - LRB103 26981 RPS 53348 b SB2216- 24 -LRB103 26981 RPS 53348 b SB2216 - 24 - LRB103 26981 RPS 53348 b 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 SB2216- 25 -LRB103 26981 RPS 53348 b SB2216 - 25 - LRB103 26981 RPS 53348 b 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 SB2216- 26 -LRB103 26981 RPS 53348 b SB2216 - 26 - LRB103 26981 RPS 53348 b 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. SB2216 - 26 - LRB103 26981 RPS 53348 b SB2216- 27 -LRB103 26981 RPS 53348 b SB2216 - 27 - LRB103 26981 RPS 53348 b 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. SB2216 - 27 - LRB103 26981 RPS 53348 b SB2216- 28 -LRB103 26981 RPS 53348 b SB2216 - 28 - LRB103 26981 RPS 53348 b 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 SB2216 - 28 - LRB103 26981 RPS 53348 b SB2216- 29 -LRB103 26981 RPS 53348 b SB2216 - 29 - LRB103 26981 RPS 53348 b 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 SB2216 - 29 - LRB103 26981 RPS 53348 b SB2216- 30 -LRB103 26981 RPS 53348 b SB2216 - 30 - LRB103 26981 RPS 53348 b 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 SB2216 - 30 - LRB103 26981 RPS 53348 b SB2216- 31 -LRB103 26981 RPS 53348 b SB2216 - 31 - LRB103 26981 RPS 53348 b SB2216 - 31 - LRB103 26981 RPS 53348 b 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 SB2216 - 31 - LRB103 26981 RPS 53348 b SB2216- 32 -LRB103 26981 RPS 53348 b SB2216 - 32 - LRB103 26981 RPS 53348 b SB2216 - 32 - LRB103 26981 RPS 53348 b 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 SB2216 - 32 - LRB103 26981 RPS 53348 b SB2216- 33 -LRB103 26981 RPS 53348 b SB2216 - 33 - LRB103 26981 RPS 53348 b SB2216 - 33 - LRB103 26981 RPS 53348 b 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, SB2216 - 33 - LRB103 26981 RPS 53348 b SB2216- 34 -LRB103 26981 RPS 53348 b SB2216 - 34 - LRB103 26981 RPS 53348 b SB2216 - 34 - LRB103 26981 RPS 53348 b 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 SB2216 - 34 - LRB103 26981 RPS 53348 b SB2216- 35 -LRB103 26981 RPS 53348 b SB2216 - 35 - LRB103 26981 RPS 53348 b SB2216 - 35 - LRB103 26981 RPS 53348 b 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 SB2216 - 35 - LRB103 26981 RPS 53348 b SB2216- 36 -LRB103 26981 RPS 53348 b SB2216 - 36 - LRB103 26981 RPS 53348 b SB2216 - 36 - LRB103 26981 RPS 53348 b 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 SB2216 - 36 - LRB103 26981 RPS 53348 b SB2216- 37 -LRB103 26981 RPS 53348 b SB2216 - 37 - LRB103 26981 RPS 53348 b SB2216 - 37 - LRB103 26981 RPS 53348 b 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 SB2216 - 37 - LRB103 26981 RPS 53348 b SB2216- 38 -LRB103 26981 RPS 53348 b SB2216 - 38 - LRB103 26981 RPS 53348 b SB2216 - 38 - LRB103 26981 RPS 53348 b 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 SB2216 - 38 - LRB103 26981 RPS 53348 b SB2216- 39 -LRB103 26981 RPS 53348 b SB2216 - 39 - LRB103 26981 RPS 53348 b SB2216 - 39 - LRB103 26981 RPS 53348 b 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 SB2216 - 39 - LRB103 26981 RPS 53348 b SB2216- 40 -LRB103 26981 RPS 53348 b SB2216 - 40 - LRB103 26981 RPS 53348 b SB2216 - 40 - LRB103 26981 RPS 53348 b 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 SB2216 - 40 - LRB103 26981 RPS 53348 b SB2216- 41 -LRB103 26981 RPS 53348 b SB2216 - 41 - LRB103 26981 RPS 53348 b SB2216 - 41 - LRB103 26981 RPS 53348 b 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 SB2216 - 41 - LRB103 26981 RPS 53348 b SB2216- 42 -LRB103 26981 RPS 53348 b SB2216 - 42 - LRB103 26981 RPS 53348 b SB2216 - 42 - LRB103 26981 RPS 53348 b 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 SB2216 - 42 - LRB103 26981 RPS 53348 b SB2216- 43 -LRB103 26981 RPS 53348 b SB2216 - 43 - LRB103 26981 RPS 53348 b SB2216 - 43 - LRB103 26981 RPS 53348 b 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 SB2216 - 43 - LRB103 26981 RPS 53348 b SB2216- 44 -LRB103 26981 RPS 53348 b SB2216 - 44 - LRB103 26981 RPS 53348 b SB2216 - 44 - LRB103 26981 RPS 53348 b 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.) SB2216 - 44 - LRB103 26981 RPS 53348 b