103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3358 Introduced 2/7/2024, by Sen. Ram Villivalam SYNOPSIS AS INTRODUCED: 235 ILCS 5/3-12235 ILCS 5/5-1 from Ch. 43, par. 115235 ILCS 5/5-3 from Ch. 43, par. 118235 ILCS 5/6-29.05 new Amends the Liquor Control Act of 1934. Creates the distillery shipper's license. Provides that a distillery shipper's license shall allow a person with an Illinois distiller license, a craft distiller license, a class 1 craft distiller license, or class 2 craft distiller license or who is licensed to make spirits under the laws of another state to ship spirits directly to a resident of this State who is 21 years of age or older for that resident's personal use and not for resale. Sets forth provisions concerning licensure application; fees; recordkeeping; and shipping and delivery of spirits. Preempts home rule powers. Makes conforming and other changes. LRB103 38772 RPS 68909 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3358 Introduced 2/7/2024, by Sen. Ram Villivalam SYNOPSIS AS INTRODUCED: 235 ILCS 5/3-12235 ILCS 5/5-1 from Ch. 43, par. 115235 ILCS 5/5-3 from Ch. 43, par. 118235 ILCS 5/6-29.05 new 235 ILCS 5/3-12 235 ILCS 5/5-1 from Ch. 43, par. 115 235 ILCS 5/5-3 from Ch. 43, par. 118 235 ILCS 5/6-29.05 new Amends the Liquor Control Act of 1934. Creates the distillery shipper's license. Provides that a distillery shipper's license shall allow a person with an Illinois distiller license, a craft distiller license, a class 1 craft distiller license, or class 2 craft distiller license or who is licensed to make spirits under the laws of another state to ship spirits directly to a resident of this State who is 21 years of age or older for that resident's personal use and not for resale. Sets forth provisions concerning licensure application; fees; recordkeeping; and shipping and delivery of spirits. Preempts home rule powers. Makes conforming and other changes. LRB103 38772 RPS 68909 b LRB103 38772 RPS 68909 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3358 Introduced 2/7/2024, by Sen. Ram Villivalam SYNOPSIS AS INTRODUCED: 235 ILCS 5/3-12235 ILCS 5/5-1 from Ch. 43, par. 115235 ILCS 5/5-3 from Ch. 43, par. 118235 ILCS 5/6-29.05 new 235 ILCS 5/3-12 235 ILCS 5/5-1 from Ch. 43, par. 115 235 ILCS 5/5-3 from Ch. 43, par. 118 235 ILCS 5/6-29.05 new 235 ILCS 5/3-12 235 ILCS 5/5-1 from Ch. 43, par. 115 235 ILCS 5/5-3 from Ch. 43, par. 118 235 ILCS 5/6-29.05 new Amends the Liquor Control Act of 1934. Creates the distillery shipper's license. Provides that a distillery shipper's license shall allow a person with an Illinois distiller license, a craft distiller license, a class 1 craft distiller license, or class 2 craft distiller license or who is licensed to make spirits under the laws of another state to ship spirits directly to a resident of this State who is 21 years of age or older for that resident's personal use and not for resale. Sets forth provisions concerning licensure application; fees; recordkeeping; and shipping and delivery of spirits. Preempts home rule powers. Makes conforming and other changes. LRB103 38772 RPS 68909 b LRB103 38772 RPS 68909 b LRB103 38772 RPS 68909 b A BILL FOR SB3358LRB103 38772 RPS 68909 b SB3358 LRB103 38772 RPS 68909 b SB3358 LRB103 38772 RPS 68909 b 1 AN ACT concerning liquor. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Liquor Control Act of 1934 is amended by 5 changing Sections 3-12, 5-1, and 5-3 and by adding Section 6 6-29.05 as follows: 7 (235 ILCS 5/3-12) 8 Sec. 3-12. Powers and duties of State Commission. 9 (a) The State Commission shall have the following powers, 10 functions, and duties: 11 (1) To receive applications and to issue licenses to 12 manufacturers, foreign importers, importing distributors, 13 distributors, non-resident dealers, on premise consumption 14 retailers, off premise sale retailers, special event 15 retailer licensees, special use permit licenses, auction 16 liquor licenses, brew pubs, caterer retailers, 17 non-beverage users, railroads, including owners and 18 lessees of sleeping, dining and cafe cars, airplanes, 19 boats, brokers, and wine maker's premises licensees in 20 accordance with the provisions of this Act, and to suspend 21 or revoke such licenses upon the State Commission's 22 determination, upon notice after hearing, that a licensee 23 has violated any provision of this Act or any rule or 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3358 Introduced 2/7/2024, by Sen. Ram Villivalam SYNOPSIS AS INTRODUCED: 235 ILCS 5/3-12235 ILCS 5/5-1 from Ch. 43, par. 115235 ILCS 5/5-3 from Ch. 43, par. 118235 ILCS 5/6-29.05 new 235 ILCS 5/3-12 235 ILCS 5/5-1 from Ch. 43, par. 115 235 ILCS 5/5-3 from Ch. 43, par. 118 235 ILCS 5/6-29.05 new 235 ILCS 5/3-12 235 ILCS 5/5-1 from Ch. 43, par. 115 235 ILCS 5/5-3 from Ch. 43, par. 118 235 ILCS 5/6-29.05 new Amends the Liquor Control Act of 1934. Creates the distillery shipper's license. Provides that a distillery shipper's license shall allow a person with an Illinois distiller license, a craft distiller license, a class 1 craft distiller license, or class 2 craft distiller license or who is licensed to make spirits under the laws of another state to ship spirits directly to a resident of this State who is 21 years of age or older for that resident's personal use and not for resale. Sets forth provisions concerning licensure application; fees; recordkeeping; and shipping and delivery of spirits. Preempts home rule powers. Makes conforming and other changes. LRB103 38772 RPS 68909 b LRB103 38772 RPS 68909 b LRB103 38772 RPS 68909 b A BILL FOR 235 ILCS 5/3-12 235 ILCS 5/5-1 from Ch. 43, par. 115 235 ILCS 5/5-3 from Ch. 43, par. 118 235 ILCS 5/6-29.05 new LRB103 38772 RPS 68909 b SB3358 LRB103 38772 RPS 68909 b SB3358- 2 -LRB103 38772 RPS 68909 b SB3358 - 2 - LRB103 38772 RPS 68909 b SB3358 - 2 - LRB103 38772 RPS 68909 b 1 regulation issued pursuant thereto and in effect for 30 2 days prior to such violation. Except in the case of an 3 action taken pursuant to a violation of Section 6-3, 6-5, 4 or 6-9, any action by the State Commission to suspend or 5 revoke a licensee's license may be limited to the license 6 for the specific premises where the violation occurred. An 7 action for a violation of this Act shall be commenced by 8 the State Commission within 2 years after the date the 9 State Commission becomes aware of the violation. 10 In lieu of suspending or revoking a license, the 11 commission may impose a fine, upon the State Commission's 12 determination and notice after hearing, that a licensee 13 has violated any provision of this Act or any rule or 14 regulation issued pursuant thereto and in effect for 30 15 days prior to such violation. 16 For the purpose of this paragraph (1), when 17 determining multiple violations for the sale of alcohol to 18 a person under the age of 21, a second or subsequent 19 violation for the sale of alcohol to a person under the age 20 of 21 shall only be considered if it was committed within 5 21 years after the date when a prior violation for the sale of 22 alcohol to a person under the age of 21 was committed. 23 The fine imposed under this paragraph may not exceed 24 $500 for each violation. Each day that the activity, which 25 gave rise to the original fine, continues is a separate 26 violation. The maximum fine that may be levied against any SB3358 - 2 - LRB103 38772 RPS 68909 b SB3358- 3 -LRB103 38772 RPS 68909 b SB3358 - 3 - LRB103 38772 RPS 68909 b SB3358 - 3 - LRB103 38772 RPS 68909 b 1 licensee, for the period of the license, shall not exceed 2 $20,000. The maximum penalty that may be imposed on a 3 licensee for selling a bottle of alcoholic liquor with a 4 foreign object in it or serving from a bottle of alcoholic 5 liquor with a foreign object in it shall be the 6 destruction of that bottle of alcoholic liquor for the 7 first 10 bottles so sold or served from by the licensee. 8 For the eleventh bottle of alcoholic liquor and for each 9 third bottle thereafter sold or served from by the 10 licensee with a foreign object in it, the maximum penalty 11 that may be imposed on the licensee is the destruction of 12 the bottle of alcoholic liquor and a fine of up to $50. 13 Any notice issued by the State Commission to a 14 licensee for a violation of this Act or any notice with 15 respect to settlement or offer in compromise shall include 16 the field report, photographs, and any other supporting 17 documentation necessary to reasonably inform the licensee 18 of the nature and extent of the violation or the conduct 19 alleged to have occurred. The failure to include such 20 required documentation shall result in the dismissal of 21 the action. 22 (2) To adopt such rules and regulations consistent 23 with the provisions of this Act which shall be necessary 24 to carry on its functions and duties to the end that the 25 health, safety and welfare of the People of the State of 26 Illinois shall be protected and temperance in the SB3358 - 3 - LRB103 38772 RPS 68909 b SB3358- 4 -LRB103 38772 RPS 68909 b SB3358 - 4 - LRB103 38772 RPS 68909 b SB3358 - 4 - LRB103 38772 RPS 68909 b 1 consumption of alcoholic liquors shall be fostered and 2 promoted and to distribute copies of such rules and 3 regulations to all licensees affected thereby. 4 (3) To call upon other administrative departments of 5 the State, county and municipal governments, county and 6 city police departments and upon prosecuting officers for 7 such information and assistance as it deems necessary in 8 the performance of its duties. 9 (4) To recommend to local commissioners rules and 10 regulations, not inconsistent with the law, for the 11 distribution and sale of alcoholic liquors throughout the 12 State. 13 (5) To inspect, or cause to be inspected, any premises 14 in this State where alcoholic liquors are manufactured, 15 distributed, warehoused, or sold. Nothing in this Act 16 authorizes an agent of the State Commission to inspect 17 private areas within the premises without reasonable 18 suspicion or a warrant during an inspection. "Private 19 areas" include, but are not limited to, safes, personal 20 property, and closed desks. 21 (5.1) Upon receipt of a complaint or upon having 22 knowledge that any person is engaged in business as a 23 manufacturer, importing distributor, distributor, or 24 retailer without a license or valid license, to conduct an 25 investigation. If, after conducting an investigation, the 26 State Commission is satisfied that the alleged conduct SB3358 - 4 - LRB103 38772 RPS 68909 b SB3358- 5 -LRB103 38772 RPS 68909 b SB3358 - 5 - LRB103 38772 RPS 68909 b SB3358 - 5 - LRB103 38772 RPS 68909 b 1 occurred or is occurring, it may issue a cease and desist 2 notice as provided in this Act, impose civil penalties as 3 provided in this Act, notify the local liquor authority, 4 or file a complaint with the State's Attorney's Office of 5 the county where the incident occurred or the Attorney 6 General. 7 (5.2) Upon receipt of a complaint or upon having 8 knowledge that any person is shipping alcoholic liquor 9 into this State from a point outside of this State if the 10 shipment is in violation of this Act, to conduct an 11 investigation. If, after conducting an investigation, the 12 State Commission is satisfied that the alleged conduct 13 occurred or is occurring, it may issue a cease and desist 14 notice as provided in this Act, impose civil penalties as 15 provided in this Act, notify the foreign jurisdiction, or 16 file a complaint with the State's Attorney's Office of the 17 county where the incident occurred or the Attorney 18 General. 19 (5.3) To receive complaints from licensees, local 20 officials, law enforcement agencies, organizations, and 21 persons stating that any licensee has been or is violating 22 any provision of this Act or the rules and regulations 23 issued pursuant to this Act. Such complaints shall be in 24 writing, signed and sworn to by the person making the 25 complaint, and shall state with specificity the facts in 26 relation to the alleged violation. If the State Commission SB3358 - 5 - LRB103 38772 RPS 68909 b SB3358- 6 -LRB103 38772 RPS 68909 b SB3358 - 6 - LRB103 38772 RPS 68909 b SB3358 - 6 - LRB103 38772 RPS 68909 b 1 has reasonable grounds to believe that the complaint 2 substantially alleges a violation of this Act or rules and 3 regulations adopted pursuant to this Act, it shall conduct 4 an investigation. If, after conducting an investigation, 5 the State Commission is satisfied that the alleged 6 violation did occur, it shall proceed with disciplinary 7 action against the licensee as provided in this Act. 8 (5.4) To make arrests and issue notices of civil 9 violations where necessary for the enforcement of this 10 Act. 11 (5.5) To investigate any and all unlicensed activity. 12 (5.6) To impose civil penalties or fines to any person 13 who, without holding a valid license, engages in conduct 14 that requires a license pursuant to this Act, in an amount 15 not to exceed $20,000 for each offense as determined by 16 the State Commission. A civil penalty shall be assessed by 17 the State Commission after a hearing is held in accordance 18 with the provisions set forth in this Act regarding the 19 provision of a hearing for the revocation or suspension of 20 a license. 21 (6) To hear and determine appeals from orders of a 22 local commission in accordance with the provisions of this 23 Act, as hereinafter set forth. Hearings under this 24 subsection shall be held in Springfield or Chicago, at 25 whichever location is the more convenient for the majority 26 of persons who are parties to the hearing. SB3358 - 6 - LRB103 38772 RPS 68909 b SB3358- 7 -LRB103 38772 RPS 68909 b SB3358 - 7 - LRB103 38772 RPS 68909 b SB3358 - 7 - LRB103 38772 RPS 68909 b 1 (7) The State Commission shall establish uniform 2 systems of accounts to be kept by all retail licensees 3 having more than 4 employees, and for this purpose the 4 State Commission may classify all retail licensees having 5 more than 4 employees and establish a uniform system of 6 accounts for each class and prescribe the manner in which 7 such accounts shall be kept. The State Commission may also 8 prescribe the forms of accounts to be kept by all retail 9 licensees having more than 4 employees, including, but not 10 limited to, accounts of earnings and expenses and any 11 distribution, payment, or other distribution of earnings 12 or assets, and any other forms, records, and memoranda 13 which in the judgment of the commission may be necessary 14 or appropriate to carry out any of the provisions of this 15 Act, including, but not limited to, such forms, records, 16 and memoranda as will readily and accurately disclose at 17 all times the beneficial ownership of such retail licensed 18 business. The accounts, forms, records, and memoranda 19 shall be available at all reasonable times for inspection 20 by authorized representatives of the State Commission or 21 by any local liquor control commissioner or his or her 22 authorized representative. The commission may, from time 23 to time, alter, amend, or repeal, in whole or in part, any 24 uniform system of accounts, or the form and manner of 25 keeping accounts. 26 (8) In the conduct of any hearing authorized to be SB3358 - 7 - LRB103 38772 RPS 68909 b SB3358- 8 -LRB103 38772 RPS 68909 b SB3358 - 8 - LRB103 38772 RPS 68909 b SB3358 - 8 - LRB103 38772 RPS 68909 b 1 held by the State Commission, to appoint, at the 2 commission's discretion, hearing officers to conduct 3 hearings involving complex issues or issues that will 4 require a protracted period of time to resolve, to 5 examine, or cause to be examined, under oath, any 6 licensee, and to examine or cause to be examined the books 7 and records of such licensee; to hear testimony and take 8 proof material for its information in the discharge of its 9 duties hereunder; to administer or cause to be 10 administered oaths; for any such purpose to issue subpoena 11 or subpoenas to require the attendance of witnesses and 12 the production of books, which shall be effective in any 13 part of this State, and to adopt rules to implement its 14 powers under this paragraph (8). 15 Any circuit court may, by order duly entered, require 16 the attendance of witnesses and the production of relevant 17 books subpoenaed by the State Commission and the court may 18 compel obedience to its order by proceedings for contempt. 19 (9) To investigate the administration of laws in 20 relation to alcoholic liquors in this and other states and 21 any foreign countries, and to recommend from time to time 22 to the Governor and through him or her to the legislature 23 of this State, such amendments to this Act, if any, as it 24 may think desirable and as will serve to further the 25 general broad purposes contained in Section 1-2 hereof. 26 (10) To adopt such rules and regulations consistent SB3358 - 8 - LRB103 38772 RPS 68909 b SB3358- 9 -LRB103 38772 RPS 68909 b SB3358 - 9 - LRB103 38772 RPS 68909 b SB3358 - 9 - LRB103 38772 RPS 68909 b 1 with the provisions of this Act which shall be necessary 2 for the control, sale, or disposition of alcoholic liquor 3 damaged as a result of an accident, wreck, flood, fire, or 4 other similar occurrence. 5 (11) To develop industry educational programs related 6 to responsible serving and selling, particularly in the 7 areas of overserving consumers and illegal underage 8 purchasing and consumption of alcoholic beverages. 9 (11.1) To license persons providing education and 10 training to alcohol beverage sellers and servers for 11 mandatory and non-mandatory training under the Beverage 12 Alcohol Sellers and Servers Education and Training 13 (BASSET) programs and to develop and administer a public 14 awareness program in Illinois to reduce or eliminate the 15 illegal purchase and consumption of alcoholic beverage 16 products by persons under the age of 21. Application for a 17 license shall be made on forms provided by the State 18 Commission. 19 (12) To develop and maintain a repository of license 20 and regulatory information. 21 (13) (Blank). 22 (14) On or before April 30, 2008 and every 2 years 23 thereafter, the State Commission shall present a written 24 report to the Governor and the General Assembly that shall 25 be based on a study of the impact of Public Act 95-634 on 26 the business of soliciting, selling, and shipping wine SB3358 - 9 - LRB103 38772 RPS 68909 b SB3358- 10 -LRB103 38772 RPS 68909 b SB3358 - 10 - LRB103 38772 RPS 68909 b SB3358 - 10 - LRB103 38772 RPS 68909 b 1 from inside and outside of this State directly to 2 residents of this State. As part of its report, the State 3 Commission shall provide all of the following information: 4 (A) The amount of State excise and sales tax 5 revenues generated. 6 (B) The amount of licensing fees received. 7 (C) The number of cases of wine shipped from 8 inside and outside of this State directly to residents 9 of this State. 10 (D) The number of alcohol compliance operations 11 conducted. 12 (E) The number of winery shipper's licenses 13 issued. 14 (F) The number of each of the following: reported 15 violations; cease and desist notices issued by the 16 Commission; notices of violations issued by the 17 Commission and to the Department of Revenue; and 18 notices and complaints of violations to law 19 enforcement officials, including, without limitation, 20 the Illinois Attorney General and the U.S. Department 21 of Treasury's Alcohol and Tobacco Tax and Trade 22 Bureau. 23 (15) As a means to reduce the underage consumption of 24 alcoholic liquors, the State Commission shall conduct 25 alcohol compliance operations to investigate whether 26 businesses that are soliciting, selling, and shipping wine SB3358 - 10 - LRB103 38772 RPS 68909 b SB3358- 11 -LRB103 38772 RPS 68909 b SB3358 - 11 - LRB103 38772 RPS 68909 b SB3358 - 11 - LRB103 38772 RPS 68909 b 1 from inside or outside of this State directly to residents 2 of this State are licensed by this State or are selling or 3 attempting to sell wine to persons under 21 years of age in 4 violation of this Act. 5 (16) The State Commission shall, in addition to 6 notifying any appropriate law enforcement agency, submit 7 notices of complaints or violations of Sections 6-29, 8 6-29.05, and 6-29.1 by persons who do not hold a winery 9 shipper's license or distillery shipper's license under 10 this Act to the Illinois Attorney General and to the U.S. 11 Department of Treasury's Alcohol and Tobacco Tax and Trade 12 Bureau. 13 (17)(A) A person licensed to make wine under the laws 14 of another state who has a winery shipper's license under 15 this Act and annually produces less than 25,000 gallons of 16 wine or a person who has a first-class or second-class 17 wine manufacturer's license, a first-class or second-class 18 wine-maker's license, or a limited wine manufacturer's 19 license under this Act and annually produces less than 20 25,000 gallons of wine may make application to the 21 Commission for a self-distribution exemption to allow the 22 sale of not more than 5,000 gallons of the exemption 23 holder's wine to retail licensees per year and to sell 24 cider, mead, or both cider and mead to brewers, class 1 25 brewers, class 2 brewers, and class 3 brewers that, 26 pursuant to subsection (e) of Section 6-4 of this Act, SB3358 - 11 - LRB103 38772 RPS 68909 b SB3358- 12 -LRB103 38772 RPS 68909 b SB3358 - 12 - LRB103 38772 RPS 68909 b SB3358 - 12 - LRB103 38772 RPS 68909 b 1 sell beer, cider, mead, or any combination thereof to 2 non-licensees at their breweries. 3 (B) In the application, which shall be sworn under 4 penalty of perjury, such person shall state (1) the date 5 it was established; (2) its volume of production and sales 6 for each year since its establishment; (3) its efforts to 7 establish distributor relationships; (4) that a 8 self-distribution exemption is necessary to facilitate the 9 marketing of its wine; and (5) that it will comply with the 10 liquor and revenue laws of the United States, this State, 11 and any other state where it is licensed. 12 (C) The State Commission shall approve the application 13 for a self-distribution exemption if such person: (1) is 14 in compliance with State revenue and liquor laws; (2) is 15 not a member of any affiliated group that produces 16 directly or indirectly more than 25,000 gallons of wine 17 per annum, 930,000 gallons of beer per annum, or 50,000 18 gallons of spirits per annum; (3) will not annually 19 produce for sale more than 25,000 gallons of wine, 930,000 20 gallons of beer, or 50,000 gallons of spirits; and (4) 21 will not annually sell more than 5,000 gallons of its wine 22 to retail licensees. 23 (D) A self-distribution exemption holder shall 24 annually certify to the State Commission its production of 25 wine in the previous 12 months and its anticipated 26 production and sales for the next 12 months. The State SB3358 - 12 - LRB103 38772 RPS 68909 b SB3358- 13 -LRB103 38772 RPS 68909 b SB3358 - 13 - LRB103 38772 RPS 68909 b SB3358 - 13 - LRB103 38772 RPS 68909 b 1 Commission may fine, suspend, or revoke a 2 self-distribution exemption after a hearing if it finds 3 that the exemption holder has made a material 4 misrepresentation in its application, violated a revenue 5 or liquor law of Illinois, exceeded production of 25,000 6 gallons of wine, 930,000 gallons of beer, or 50,000 7 gallons of spirits in any calendar year, or become part of 8 an affiliated group producing more than 25,000 gallons of 9 wine, 930,000 gallons of beer, or 50,000 gallons of 10 spirits. 11 (E) Except in hearings for violations of this Act or 12 Public Act 95-634 or a bona fide investigation by duly 13 sworn law enforcement officials, the State Commission, or 14 its agents, the State Commission shall maintain the 15 production and sales information of a self-distribution 16 exemption holder as confidential and shall not release 17 such information to any person. 18 (F) The State Commission shall issue regulations 19 governing self-distribution exemptions consistent with 20 this Section and this Act. 21 (G) Nothing in this paragraph (17) shall prohibit a 22 self-distribution exemption holder from entering into or 23 simultaneously having a distribution agreement with a 24 licensed Illinois distributor. 25 (H) It is the intent of this paragraph (17) to promote 26 and continue orderly markets. The General Assembly finds SB3358 - 13 - LRB103 38772 RPS 68909 b SB3358- 14 -LRB103 38772 RPS 68909 b SB3358 - 14 - LRB103 38772 RPS 68909 b SB3358 - 14 - LRB103 38772 RPS 68909 b 1 that, in order to preserve Illinois' regulatory 2 distribution system, it is necessary to create an 3 exception for smaller makers of wine as their wines are 4 frequently adjusted in varietals, mixes, vintages, and 5 taste to find and create market niches sometimes too small 6 for distributor or importing distributor business 7 strategies. Limited self-distribution rights will afford 8 and allow smaller makers of wine access to the marketplace 9 in order to develop a customer base without impairing the 10 integrity of the 3-tier system. 11 (18)(A) A class 1 brewer licensee, who must also be 12 either a licensed brewer or licensed non-resident dealer 13 and annually manufacture less than 930,000 gallons of 14 beer, may make application to the State Commission for a 15 self-distribution exemption to allow the sale of not more 16 than 232,500 gallons per year of the exemption holder's 17 beer to retail licensees and to brewers, class 1 brewers, 18 and class 2 brewers that, pursuant to subsection (e) of 19 Section 6-4 of this Act, sell beer, cider, mead, or any 20 combination thereof to non-licensees at their breweries. 21 (B) In the application, which shall be sworn under 22 penalty of perjury, the class 1 brewer licensee shall 23 state (1) the date it was established; (2) its volume of 24 beer manufactured and sold for each year since its 25 establishment; (3) its efforts to establish distributor 26 relationships; (4) that a self-distribution exemption is SB3358 - 14 - LRB103 38772 RPS 68909 b SB3358- 15 -LRB103 38772 RPS 68909 b SB3358 - 15 - LRB103 38772 RPS 68909 b SB3358 - 15 - LRB103 38772 RPS 68909 b 1 necessary to facilitate the marketing of its beer; and (5) 2 that it will comply with the alcoholic beverage and 3 revenue laws of the United States, this State, and any 4 other state where it is licensed. 5 (C) Any application submitted shall be posted on the 6 State Commission's website at least 45 days prior to 7 action by the State Commission. The State Commission shall 8 approve the application for a self-distribution exemption 9 if the class 1 brewer licensee: (1) is in compliance with 10 the State, revenue, and alcoholic beverage laws; (2) is 11 not a member of any affiliated group that manufactures, 12 directly or indirectly, more than 930,000 gallons of beer 13 per annum, 25,000 gallons of wine per annum, or 50,000 14 gallons of spirits per annum; (3) shall not annually 15 manufacture for sale more than 930,000 gallons of beer, 16 25,000 gallons of wine, or 50,000 gallons of spirits; (4) 17 shall not annually sell more than 232,500 gallons of its 18 beer to retail licensees and class 3 brewers and to 19 brewers, class 1 brewers, and class 2 brewers that, 20 pursuant to subsection (e) of Section 6-4 of this Act, 21 sell beer, cider, mead, or any combination thereof to 22 non-licensees at their breweries; and (5) has relinquished 23 any brew pub license held by the licensee, including any 24 ownership interest it held in the licensed brew pub. 25 (D) A self-distribution exemption holder shall 26 annually certify to the State Commission its manufacture SB3358 - 15 - LRB103 38772 RPS 68909 b SB3358- 16 -LRB103 38772 RPS 68909 b SB3358 - 16 - LRB103 38772 RPS 68909 b SB3358 - 16 - LRB103 38772 RPS 68909 b 1 of beer during the previous 12 months and its anticipated 2 manufacture and sales of beer for the next 12 months. The 3 State Commission may fine, suspend, or revoke a 4 self-distribution exemption after a hearing if it finds 5 that the exemption holder has made a material 6 misrepresentation in its application, violated a revenue 7 or alcoholic beverage law of Illinois, exceeded the 8 manufacture of 930,000 gallons of beer, 25,000 gallons of 9 wine, or 50,000 gallons of spirits in any calendar year or 10 became part of an affiliated group manufacturing more than 11 930,000 gallons of beer, 25,000 gallons of wine, or 50,000 12 gallons of spirits. 13 (E) The State Commission shall issue rules and 14 regulations governing self-distribution exemptions 15 consistent with this Act. 16 (F) Nothing in this paragraph (18) shall prohibit a 17 self-distribution exemption holder from entering into or 18 simultaneously having a distribution agreement with a 19 licensed Illinois importing distributor or a distributor. 20 If a self-distribution exemption holder enters into a 21 distribution agreement and has assigned distribution 22 rights to an importing distributor or distributor, then 23 the self-distribution exemption holder's distribution 24 rights in the assigned territories shall cease in a 25 reasonable time not to exceed 60 days. 26 (G) It is the intent of this paragraph (18) to promote SB3358 - 16 - LRB103 38772 RPS 68909 b SB3358- 17 -LRB103 38772 RPS 68909 b SB3358 - 17 - LRB103 38772 RPS 68909 b SB3358 - 17 - LRB103 38772 RPS 68909 b 1 and continue orderly markets. The General Assembly finds 2 that in order to preserve Illinois' regulatory 3 distribution system, it is necessary to create an 4 exception for smaller manufacturers in order to afford and 5 allow such smaller manufacturers of beer access to the 6 marketplace in order to develop a customer base without 7 impairing the integrity of the 3-tier system. 8 (19)(A) A class 1 craft distiller licensee or a 9 non-resident dealer who manufactures less than 50,000 10 gallons of distilled spirits per year may make application 11 to the State Commission for a self-distribution exemption 12 to allow the sale of not more than 5,000 gallons of the 13 exemption holder's spirits to retail licensees per year. 14 (B) In the application, which shall be sworn under 15 penalty of perjury, the class 1 craft distiller licensee 16 or non-resident dealer shall state (1) the date it was 17 established; (2) its volume of spirits manufactured and 18 sold for each year since its establishment; (3) its 19 efforts to establish distributor relationships; (4) that a 20 self-distribution exemption is necessary to facilitate the 21 marketing of its spirits; and (5) that it will comply with 22 the alcoholic beverage and revenue laws of the United 23 States, this State, and any other state where it is 24 licensed. 25 (C) Any application submitted shall be posted on the 26 State Commission's website at least 45 days prior to SB3358 - 17 - LRB103 38772 RPS 68909 b SB3358- 18 -LRB103 38772 RPS 68909 b SB3358 - 18 - LRB103 38772 RPS 68909 b SB3358 - 18 - LRB103 38772 RPS 68909 b 1 action by the State Commission. The State Commission shall 2 approve the application for a self-distribution exemption 3 if the applicant: (1) is in compliance with State revenue 4 and alcoholic beverage laws; (2) is not a member of any 5 affiliated group that produces more than 50,000 gallons of 6 spirits per annum, 930,000 gallons of beer per annum, or 7 25,000 gallons of wine per annum; (3) does not annually 8 manufacture for sale more than 50,000 gallons of spirits, 9 930,000 gallons of beer, or 25,000 gallons of wine; and 10 (4) does not annually sell more than 5,000 gallons of its 11 spirits to retail licensees. 12 (D) A self-distribution exemption holder shall 13 annually certify to the State Commission its manufacture 14 of spirits during the previous 12 months and its 15 anticipated manufacture and sales of spirits for the next 16 12 months. The State Commission may fine, suspend, or 17 revoke a self-distribution exemption after a hearing if it 18 finds that the exemption holder has made a material 19 misrepresentation in its application, violated a revenue 20 or alcoholic beverage law of Illinois, exceeded the 21 manufacture of 50,000 gallons of spirits, 930,000 gallons 22 of beer, or 25,000 gallons of wine in any calendar year, or 23 has become part of an affiliated group manufacturing more 24 than 50,000 gallons of spirits, 930,000 gallons of beer, 25 or 25,000 gallons of wine. 26 (E) The State Commission shall adopt rules governing SB3358 - 18 - LRB103 38772 RPS 68909 b SB3358- 19 -LRB103 38772 RPS 68909 b SB3358 - 19 - LRB103 38772 RPS 68909 b SB3358 - 19 - LRB103 38772 RPS 68909 b 1 self-distribution exemptions consistent with this Act. 2 (F) Nothing in this paragraph (19) shall prohibit a 3 self-distribution exemption holder from entering into or 4 simultaneously having a distribution agreement with a 5 licensed Illinois importing distributor or a distributor. 6 (G) It is the intent of this paragraph (19) to promote 7 and continue orderly markets. The General Assembly finds 8 that in order to preserve Illinois' regulatory 9 distribution system, it is necessary to create an 10 exception for smaller manufacturers in order to afford and 11 allow such smaller manufacturers of spirits access to the 12 marketplace in order to develop a customer base without 13 impairing the integrity of the 3-tier system. 14 (20)(A) A class 3 brewer licensee who must manufacture 15 less than 465,000 gallons of beer in the aggregate and not 16 more than 155,000 gallons at any single brewery premises 17 may make application to the State Commission for a 18 self-distribution exemption to allow the sale of not more 19 than 6,200 gallons of beer from each in-state or 20 out-of-state class 3 brewery premises, which shall not 21 exceed 18,600 gallons annually in the aggregate, that is 22 manufactured at a wholly owned class 3 brewer's in-state 23 or out-of-state licensed premises to retail licensees and 24 class 3 brewers and to brewers, class 1 brewers, class 2 25 brewers that, pursuant to subsection (e) of Section 6-4, 26 sell beer, cider, or both beer and cider to non-licensees SB3358 - 19 - LRB103 38772 RPS 68909 b SB3358- 20 -LRB103 38772 RPS 68909 b SB3358 - 20 - LRB103 38772 RPS 68909 b SB3358 - 20 - LRB103 38772 RPS 68909 b 1 at their licensed breweries. 2 (B) In the application, which shall be sworn under 3 penalty of perjury, the class 3 brewer licensee shall 4 state: 5 (1) the date it was established; 6 (2) its volume of beer manufactured and sold for 7 each year since its establishment; 8 (3) its efforts to establish distributor 9 relationships; 10 (4) that a self-distribution exemption is 11 necessary to facilitate the marketing of its beer; and 12 (5) that it will comply with the alcoholic 13 beverage and revenue laws of the United States, this 14 State, and any other state where it is licensed. 15 (C) Any application submitted shall be posted on the 16 State Commission's website at least 45 days before action 17 by the State Commission. The State Commission shall 18 approve the application for a self-distribution exemption 19 if the class 3 brewer licensee: (1) is in compliance with 20 the State, revenue, and alcoholic beverage laws; (2) is 21 not a member of any affiliated group that manufacturers, 22 directly or indirectly, more than 465,000 gallons of beer 23 per annum; (3) shall not annually manufacture for sale 24 more than 465,000 gallons of beer or more than 155,000 25 gallons at any single brewery premises; and (4) shall not 26 annually sell more than 6,200 gallons of beer from each SB3358 - 20 - LRB103 38772 RPS 68909 b SB3358- 21 -LRB103 38772 RPS 68909 b SB3358 - 21 - LRB103 38772 RPS 68909 b SB3358 - 21 - LRB103 38772 RPS 68909 b 1 in-state or out-of-state class 3 brewery premises, and 2 shall not exceed 18,600 gallons annually in the aggregate, 3 to retail licensees and class 3 brewers and to brewers, 4 class 1 brewers, and class 2 brewers that, pursuant to 5 subsection (e) of Section 6-4 of this Act, sell beer, 6 cider, or both beer and cider to non-licensees at their 7 breweries. 8 (D) A self-distribution exemption holder shall 9 annually certify to the State Commission its manufacture 10 of beer during the previous 12 months and its anticipated 11 manufacture and sales of beer for the next 12 months. The 12 State Commission may fine, suspend, or revoke a 13 self-distribution exemption after a hearing if it finds 14 that the exemption holder has made a material 15 misrepresentation in its application, violated a revenue 16 or alcoholic beverage law of Illinois, exceeded the 17 manufacture of 465,000 gallons of beer in any calendar 18 year or became part of an affiliated group manufacturing 19 more than 465,000 gallons of beer, or exceeded the sale to 20 retail licensees, brewers, class 1 brewers, class 2 21 brewers, and class 3 brewers of 6,200 gallons per brewery 22 location or 18,600 gallons in the aggregate. 23 (E) The State Commission may adopt rules governing 24 self-distribution exemptions consistent with this Act. 25 (F) Nothing in this paragraph shall prohibit a 26 self-distribution exemption holder from entering into or SB3358 - 21 - LRB103 38772 RPS 68909 b SB3358- 22 -LRB103 38772 RPS 68909 b SB3358 - 22 - LRB103 38772 RPS 68909 b SB3358 - 22 - LRB103 38772 RPS 68909 b 1 simultaneously having a distribution agreement with a 2 licensed Illinois importing distributor or a distributor. 3 If a self-distribution exemption holder enters into a 4 distribution agreement and has assigned distribution 5 rights to an importing distributor or distributor, then 6 the self-distribution exemption holder's distribution 7 rights in the assigned territories shall cease in a 8 reasonable time not to exceed 60 days. 9 (G) It is the intent of this paragraph to promote and 10 continue orderly markets. The General Assembly finds that 11 in order to preserve Illinois' regulatory distribution 12 system, it is necessary to create an exception for smaller 13 manufacturers in order to afford and allow such smaller 14 manufacturers of beer access to the marketplace in order 15 to develop a customer base without impairing the integrity 16 of the 3-tier system. 17 (b) On or before April 30, 1999, the Commission shall 18 present a written report to the Governor and the General 19 Assembly that shall be based on a study of the impact of Public 20 Act 90-739 on the business of soliciting, selling, and 21 shipping alcoholic liquor from outside of this State directly 22 to residents of this State. 23 As part of its report, the Commission shall provide the 24 following information: 25 (i) the amount of State excise and sales tax revenues 26 generated as a result of Public Act 90-739; SB3358 - 22 - LRB103 38772 RPS 68909 b SB3358- 23 -LRB103 38772 RPS 68909 b SB3358 - 23 - LRB103 38772 RPS 68909 b SB3358 - 23 - LRB103 38772 RPS 68909 b 1 (ii) the amount of licensing fees received as a result 2 of Public Act 90-739; 3 (iii) the number of reported violations, the number of 4 cease and desist notices issued by the Commission, the 5 number of notices of violations issued to the Department 6 of Revenue, and the number of notices and complaints of 7 violations to law enforcement officials. 8 (Source: P.A. 101-37, eff. 7-3-19; 101-81, eff. 7-12-19; 9 101-482, eff. 8-23-19; 102-442, eff. 8-20-21; 102-558, eff. 10 8-20-21; 102-813, eff. 5-13-22.) 11 (235 ILCS 5/5-1) (from Ch. 43, par. 115) 12 Sec. 5-1. Licenses issued by the Illinois Liquor Control 13 Commission shall be of the following classes: 14 (a) Manufacturer's license - Class 1. Distiller, Class 2. 15 Rectifier, Class 3. Brewer, Class 4. First Class Wine 16 Manufacturer, Class 5. Second Class Wine Manufacturer, Class 17 6. First Class Winemaker, Class 7. Second Class Winemaker, 18 Class 8. Limited Wine Manufacturer, Class 9. Craft Distiller, 19 Class 10. Class 1 Craft Distiller, Class 11. Class 2 Craft 20 Distiller, Class 12. Class 1 Brewer, Class 13. Class 2 Brewer, 21 Class 14. Class 3 Brewer, 22 (b) Distributor's license, 23 (c) Importing Distributor's license, 24 (d) Retailer's license, 25 (e) Special Event Retailer's license (not-for-profit), SB3358 - 23 - LRB103 38772 RPS 68909 b SB3358- 24 -LRB103 38772 RPS 68909 b SB3358 - 24 - LRB103 38772 RPS 68909 b SB3358 - 24 - LRB103 38772 RPS 68909 b 1 (f) Railroad license, 2 (g) Boat license, 3 (h) Non-Beverage User's license, 4 (i) Wine-maker's premises license, 5 (j) Airplane license, 6 (k) Foreign importer's license, 7 (l) Broker's license, 8 (m) Non-resident dealer's license, 9 (n) Brew Pub license, 10 (o) Auction liquor license, 11 (p) Caterer retailer license, 12 (q) Special use permit license, 13 (r) Winery shipper's license, 14 (s) Craft distiller tasting permit, 15 (t) Brewer warehouse permit, 16 (u) Distilling pub license, 17 (v) Craft distiller warehouse permit, 18 (w) Beer showcase permit, . 19 (x) Distillery shipper's license. 20 No person, firm, partnership, corporation, or other legal 21 business entity that is engaged in the manufacturing of wine 22 may concurrently obtain and hold a wine-maker's license and a 23 wine manufacturer's license. 24 (a) A manufacturer's license shall allow the manufacture, 25 importation in bulk, storage, distribution and sale of 26 alcoholic liquor to persons without the State, as may be SB3358 - 24 - LRB103 38772 RPS 68909 b SB3358- 25 -LRB103 38772 RPS 68909 b SB3358 - 25 - LRB103 38772 RPS 68909 b SB3358 - 25 - LRB103 38772 RPS 68909 b 1 permitted by law and to licensees in this State as follows: 2 Class 1. A Distiller may make sales and deliveries of 3 alcoholic liquor to distillers, rectifiers, importing 4 distributors, distributors and non-beverage users and to no 5 other licensees. 6 Class 2. A Rectifier, who is not a distiller, as defined 7 herein, may make sales and deliveries of alcoholic liquor to 8 rectifiers, importing distributors, distributors, retailers 9 and non-beverage users and to no other licensees. 10 Class 3. A Brewer may make sales and deliveries of beer to 11 importing distributors and distributors and may make sales as 12 authorized under subsection (e) of Section 6-4 of this Act, 13 including any alcoholic liquor that subsection (e) of Section 14 6-4 authorizes a brewer to sell in its original package only to 15 a non-licensee for pick-up by a non-licensee either within the 16 interior of the brewery premises or at outside of the brewery 17 premises at a curb-side or parking lot adjacent to the brewery 18 premises, subject to any local ordinance. 19 Class 4. A first class wine-manufacturer may make sales 20 and deliveries of up to 50,000 gallons of wine to 21 manufacturers, importing distributors and distributors, and to 22 no other licensees. If a first-class wine-manufacturer 23 manufactures beer, it shall also obtain and shall only be 24 eligible for, in addition to any current license, a class 1 25 brewer license, shall not manufacture more than 930,000 26 gallons of beer per year, and shall not be a member of or SB3358 - 25 - LRB103 38772 RPS 68909 b SB3358- 26 -LRB103 38772 RPS 68909 b SB3358 - 26 - LRB103 38772 RPS 68909 b SB3358 - 26 - LRB103 38772 RPS 68909 b 1 affiliated with, directly or indirectly, a manufacturer that 2 produces more than 930,000 gallons of beer per year. If the 3 first-class wine-manufacturer manufactures spirits, it shall 4 also obtain and shall only be eligible for, in addition to any 5 current license, a class 1 craft distiller license, shall not 6 manufacture more than 50,000 gallons of spirits per year, and 7 shall not be a member of or affiliated with, directly or 8 indirectly, a manufacturer that produces more than 50,000 9 gallons of spirits per year. A first-class wine-manufacturer 10 shall be permitted to sell wine manufactured at the 11 first-class wine-manufacturer premises to non-licensees. 12 Class 5. A second class Wine manufacturer may make sales 13 and deliveries of more than 50,000 gallons of wine to 14 manufacturers, importing distributors and distributors and to 15 no other licensees. 16 Class 6. A first-class wine-maker's license shall allow 17 the manufacture of up to 50,000 gallons of wine per year, and 18 the storage and sale of such wine to distributors in the State 19 and to persons without the State, as may be permitted by law. A 20 person who, prior to June 1, 2008 (the effective date of Public 21 Act 95-634), is a holder of a first-class wine-maker's license 22 and annually produces more than 25,000 gallons of its own wine 23 and who distributes its wine to licensed retailers shall cease 24 this practice on or before July 1, 2008 in compliance with 25 Public Act 95-634. If a first-class wine-maker manufactures 26 beer, it shall also obtain and shall only be eligible for, in SB3358 - 26 - LRB103 38772 RPS 68909 b SB3358- 27 -LRB103 38772 RPS 68909 b SB3358 - 27 - LRB103 38772 RPS 68909 b SB3358 - 27 - LRB103 38772 RPS 68909 b 1 addition to any current license, a class 1 brewer license, 2 shall not manufacture more than 930,000 gallons of beer per 3 year, and shall not be a member of or affiliated with, directly 4 or indirectly, a manufacturer that produces more than 930,000 5 gallons of beer per year. If the first-class wine-maker 6 manufactures spirits, it shall also obtain and shall only be 7 eligible for, in addition to any current license, a class 1 8 craft distiller license, shall not manufacture more than 9 50,000 gallons of spirits per year, and shall not be a member 10 of or affiliated with, directly or indirectly, a manufacturer 11 that produces more than 50,000 gallons of spirits per year. A 12 first-class wine-maker holding a class 1 brewer license or a 13 class 1 craft distiller license shall not be eligible for a 14 wine-maker's premises license but shall be permitted to sell 15 wine manufactured at the first-class wine-maker premises to 16 non-licensees. 17 Class 7. A second-class wine-maker's license shall allow 18 the manufacture of up to 150,000 gallons of wine per year, and 19 the storage and sale of such wine to distributors in this State 20 and to persons without the State, as may be permitted by law. A 21 person who, prior to June 1, 2008 (the effective date of Public 22 Act 95-634), is a holder of a second-class wine-maker's 23 license and annually produces more than 25,000 gallons of its 24 own wine and who distributes its wine to licensed retailers 25 shall cease this practice on or before July 1, 2008 in 26 compliance with Public Act 95-634. If a second-class SB3358 - 27 - LRB103 38772 RPS 68909 b SB3358- 28 -LRB103 38772 RPS 68909 b SB3358 - 28 - LRB103 38772 RPS 68909 b SB3358 - 28 - LRB103 38772 RPS 68909 b 1 wine-maker manufactures beer, it shall also obtain and shall 2 only be eligible for, in addition to any current license, a 3 class 2 brewer license, shall not manufacture more than 4 3,720,000 gallons of beer per year, and shall not be a member 5 of or affiliated with, directly or indirectly, a manufacturer 6 that produces more than 3,720,000 gallons of beer per year. If 7 a second-class wine-maker manufactures spirits, it shall also 8 obtain and shall only be eligible for, in addition to any 9 current license, a class 2 craft distiller license, shall not 10 manufacture more than 100,000 gallons of spirits per year, and 11 shall not be a member of or affiliated with, directly or 12 indirectly, a manufacturer that produces more than 100,000 13 gallons of spirits per year. 14 Class 8. A limited wine-manufacturer may make sales and 15 deliveries not to exceed 40,000 gallons of wine per year to 16 distributors, and to non-licensees in accordance with the 17 provisions of this Act. 18 Class 9. A craft distiller license, which may only be held 19 by a class 1 craft distiller licensee or class 2 craft 20 distiller licensee but not held by both a class 1 craft 21 distiller licensee and a class 2 craft distiller licensee, 22 shall grant all rights conveyed by either: (i) a class 1 craft 23 distiller license if the craft distiller holds a class 1 craft 24 distiller license; or (ii) a class 2 craft distiller licensee 25 if the craft distiller holds a class 2 craft distiller 26 license. SB3358 - 28 - LRB103 38772 RPS 68909 b SB3358- 29 -LRB103 38772 RPS 68909 b SB3358 - 29 - LRB103 38772 RPS 68909 b SB3358 - 29 - LRB103 38772 RPS 68909 b 1 Class 10. A class 1 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 50,000 gallons of spirits per year provided that the class 1 5 craft distiller licensee does not manufacture more than a 6 combined 50,000 gallons of spirits per year and is not a member 7 of or affiliated with, directly or indirectly, a manufacturer 8 that produces more than 50,000 gallons of spirits per year. If 9 a class 1 craft distiller manufactures beer, it shall also 10 obtain and shall only be eligible for, in addition to any 11 current license, a class 1 brewer license, shall not 12 manufacture more than 930,000 gallons of beer per year, and 13 shall not be a member of or affiliated with, directly or 14 indirectly, a manufacturer that produces more than 930,000 15 gallons of beer per year. If a class 1 craft distiller 16 manufactures wine, it shall also obtain and shall only be 17 eligible for, in addition to any current license, a 18 first-class wine-manufacturer license or a first-class 19 wine-maker's license, shall not manufacture more than 50,000 20 gallons of wine per year, and shall not be a member of or 21 affiliated with, directly or indirectly, a manufacturer that 22 produces more than 50,000 gallons of wine per year. A class 1 23 craft distiller licensee may make sales and deliveries to 24 importing distributors and distributors and to retail 25 licensees in accordance with the conditions set forth in 26 paragraph (19) of subsection (a) of Section 3-12 of this Act. SB3358 - 29 - LRB103 38772 RPS 68909 b SB3358- 30 -LRB103 38772 RPS 68909 b SB3358 - 30 - LRB103 38772 RPS 68909 b SB3358 - 30 - LRB103 38772 RPS 68909 b 1 However, the aggregate amount of spirits sold to non-licensees 2 and sold or delivered to retail licensees may not exceed 5,000 3 gallons per year. 4 A class 1 craft distiller licensee may sell up to 5,000 5 gallons of such spirits to non-licensees to the extent 6 permitted by any exemption approved by the State Commission 7 pursuant to Section 6-4 of this Act. A class 1 craft distiller 8 license holder may store such spirits at a non-contiguous 9 licensed location, but at no time shall a class 1 craft 10 distiller license holder directly or indirectly produce in the 11 aggregate more than 50,000 gallons of spirits per year. 12 A class 1 craft distiller licensee may hold more than one 13 class 1 craft distiller's license. However, a class 1 craft 14 distiller that holds more than one class 1 craft distiller 15 license shall not manufacture, in the aggregate, more than 16 50,000 gallons of spirits by distillation per year and shall 17 not sell, in the aggregate, more than 5,000 gallons of such 18 spirits to non-licensees in accordance with an exemption 19 approved by the State Commission pursuant to Section 6-4 of 20 this Act. 21 Class 11. A class 2 craft distiller license, which may 22 only be issued to a licensed craft distiller or licensed 23 non-resident dealer, shall allow the manufacture of up to 24 100,000 gallons of spirits per year provided that the class 2 25 craft distiller licensee does not manufacture more than a 26 combined 100,000 gallons of spirits per year and is not a SB3358 - 30 - LRB103 38772 RPS 68909 b SB3358- 31 -LRB103 38772 RPS 68909 b SB3358 - 31 - LRB103 38772 RPS 68909 b SB3358 - 31 - LRB103 38772 RPS 68909 b 1 member of or affiliated with, directly or indirectly, a 2 manufacturer that produces more than 100,000 gallons of 3 spirits per year. If a class 2 craft distiller manufactures 4 beer, it shall also obtain and shall only be eligible for, in 5 addition to any current license, a class 2 brewer license, 6 shall not manufacture more than 3,720,000 gallons of beer per 7 year, and shall not be a member of or affiliated with, directly 8 or indirectly, a manufacturer that produces more than 9 3,720,000 gallons of beer per year. If a class 2 craft 10 distiller manufactures wine, it shall also obtain and shall 11 only be eligible for, in addition to any current license, a 12 second-class wine-maker's license, shall not manufacture more 13 than 150,000 gallons of wine per year, and shall not be a 14 member of or affiliated with, directly or indirectly, a 15 manufacturer that produces more than 150,000 gallons of wine 16 per year. A class 2 craft distiller licensee may make sales and 17 deliveries to importing distributors and distributors, but 18 shall not make sales or deliveries to any other licensee. If 19 the State Commission provides prior approval, a class 2 craft 20 distiller licensee may annually transfer up to 100,000 gallons 21 of spirits manufactured by that class 2 craft distiller 22 licensee to the premises of a licensed class 2 craft distiller 23 wholly owned and operated by the same licensee. A class 2 craft 24 distiller may transfer spirits to a distilling pub wholly 25 owned and operated by the class 2 craft distiller subject to 26 the following limitations and restrictions: (i) the transfer SB3358 - 31 - LRB103 38772 RPS 68909 b SB3358- 32 -LRB103 38772 RPS 68909 b SB3358 - 32 - LRB103 38772 RPS 68909 b SB3358 - 32 - LRB103 38772 RPS 68909 b 1 shall not annually exceed more than 5,000 gallons; (ii) the 2 annual amount transferred shall reduce the distilling pub's 3 annual permitted production limit; (iii) all spirits 4 transferred shall be subject to Article VIII of this Act; (iv) 5 a written record shall be maintained by the distiller and 6 distilling pub specifying the amount, date of delivery, and 7 receipt of the product by the distilling pub; and (v) the 8 distilling pub shall be located no farther than 80 miles from 9 the class 2 craft distiller's licensed location. 10 A class 2 craft distiller shall, prior to transferring 11 spirits to a distilling pub wholly owned by the class 2 craft 12 distiller, furnish a written notice to the State Commission of 13 intent to transfer spirits setting forth the name and address 14 of the distilling pub and shall annually submit to the State 15 Commission a verified report identifying the total gallons of 16 spirits transferred to the distilling pub wholly owned by the 17 class 2 craft distiller. 18 A class 2 craft distiller license holder may store such 19 spirits at a non-contiguous licensed location, but at no time 20 shall a class 2 craft distiller license holder directly or 21 indirectly produce in the aggregate more than 100,000 gallons 22 of spirits per year. 23 Class 12. A class 1 brewer license, which may only be 24 issued to a licensed brewer or licensed non-resident dealer, 25 shall allow the manufacture of up to 930,000 gallons of beer 26 per year provided that the class 1 brewer licensee does not SB3358 - 32 - LRB103 38772 RPS 68909 b SB3358- 33 -LRB103 38772 RPS 68909 b SB3358 - 33 - LRB103 38772 RPS 68909 b SB3358 - 33 - LRB103 38772 RPS 68909 b 1 manufacture more than a combined 930,000 gallons of beer per 2 year and is not a member of or affiliated with, directly or 3 indirectly, a manufacturer that produces more than 930,000 4 gallons of beer per year. If a class 1 brewer manufactures 5 spirits, it shall also obtain and shall only be eligible for, 6 in addition to any current license, a class 1 craft distiller 7 license, shall not manufacture more than 50,000 gallons of 8 spirits per year, and shall not be a member of or affiliated 9 with, directly or indirectly, a manufacturer that produces 10 more than 50,000 gallons of spirits per year. If a class 1 11 craft brewer manufactures wine, it shall also obtain and shall 12 only be eligible for, in addition to any current license, a 13 first-class wine-manufacturer license or a first-class 14 wine-maker's license, shall not manufacture more than 50,000 15 gallons of wine per year, and shall not be a member of or 16 affiliated with, directly or indirectly, a manufacturer that 17 produces more than 50,000 gallons of wine per year. A class 1 18 brewer licensee may make sales and deliveries to importing 19 distributors and distributors and to retail licensees in 20 accordance with the conditions set forth in paragraph (18) of 21 subsection (a) of Section 3-12 of this Act. If the State 22 Commission provides prior approval, a class 1 brewer may 23 annually transfer up to 930,000 gallons of beer manufactured 24 by that class 1 brewer to the premises of a licensed class 1 25 brewer wholly owned and operated by the same licensee. 26 Class 13. A class 2 brewer license, which may only be SB3358 - 33 - LRB103 38772 RPS 68909 b SB3358- 34 -LRB103 38772 RPS 68909 b SB3358 - 34 - LRB103 38772 RPS 68909 b SB3358 - 34 - LRB103 38772 RPS 68909 b 1 issued to a licensed brewer or licensed non-resident dealer, 2 shall allow the manufacture of up to 3,720,000 gallons of beer 3 per year provided that the class 2 brewer licensee does not 4 manufacture more than a combined 3,720,000 gallons of beer per 5 year and is not a member of or affiliated with, directly or 6 indirectly, a manufacturer that produces more than 3,720,000 7 gallons of beer per year. If a class 2 brewer manufactures 8 spirits, it shall also obtain and shall only be eligible for, 9 in addition to any current license, a class 2 craft distiller 10 license, shall not manufacture more than 100,000 gallons of 11 spirits per year, and shall not be a member of or affiliated 12 with, directly or indirectly, a manufacturer that produces 13 more than 100,000 gallons of spirits per year. If a class 2 14 craft distiller manufactures wine, it shall also obtain and 15 shall only be eligible for, in addition to any current 16 license, a second-class wine-maker's license, shall not 17 manufacture more than 150,000 gallons of wine per year, and 18 shall not be a member of or affiliated with, directly or 19 indirectly, a manufacturer that produces more than 150,000 20 gallons of wine a year. A class 2 brewer licensee may make 21 sales and deliveries to importing distributors and 22 distributors, but shall not make sales or deliveries to any 23 other licensee. If the State Commission provides prior 24 approval, a class 2 brewer licensee may annually transfer up 25 to 3,720,000 gallons of beer manufactured by that class 2 26 brewer licensee to the premises of a licensed class 2 brewer SB3358 - 34 - LRB103 38772 RPS 68909 b SB3358- 35 -LRB103 38772 RPS 68909 b SB3358 - 35 - LRB103 38772 RPS 68909 b SB3358 - 35 - LRB103 38772 RPS 68909 b 1 wholly owned and operated by the same licensee. 2 A class 2 brewer may transfer beer to a brew pub wholly 3 owned and operated by the class 2 brewer subject to the 4 following limitations and restrictions: (i) the transfer shall 5 not annually exceed more than 31,000 gallons; (ii) the annual 6 amount transferred shall reduce the brew pub's annual 7 permitted production limit; (iii) all beer transferred shall 8 be subject to Article VIII of this Act; (iv) a written record 9 shall be maintained by the brewer and brew pub specifying the 10 amount, date of delivery, and receipt of the product by the 11 brew pub; and (v) the brew pub shall be located no farther than 12 80 miles from the class 2 brewer's licensed location. 13 A class 2 brewer shall, prior to transferring beer to a 14 brew pub wholly owned by the class 2 brewer, furnish a written 15 notice to the State Commission of intent to transfer beer 16 setting forth the name and address of the brew pub and shall 17 annually submit to the State Commission a verified report 18 identifying the total gallons of beer transferred to the brew 19 pub wholly owned by the class 2 brewer. 20 Class 14. A class 3 brewer license, which may be issued to 21 a brewer or a non-resident dealer, shall allow the manufacture 22 of no more than 465,000 gallons of beer per year and no more 23 than 155,000 gallons at a single brewery premises, and shall 24 allow the sale of no more than 6,200 gallons of beer from each 25 in-state or out-of-state class 3 brewery premises, or 18,600 26 gallons in the aggregate, to retail licensees, class 1 SB3358 - 35 - LRB103 38772 RPS 68909 b SB3358- 36 -LRB103 38772 RPS 68909 b SB3358 - 36 - LRB103 38772 RPS 68909 b SB3358 - 36 - LRB103 38772 RPS 68909 b 1 brewers, class 2 brewers, and class 3 brewers as long as the 2 class 3 brewer licensee does not manufacture more than a 3 combined 465,000 gallons of beer per year and is not a member 4 of or affiliated with, directly or indirectly, a manufacturer 5 that produces more than 465,000 gallons of beer per year to 6 make sales to importing distributors, distributors, retail 7 licensees, brewers, class 1 brewers, class 2 brewers, and 8 class 3 brewers in accordance with the conditions set forth in 9 paragraph (20) of subsection (a) of Section 3-12. If the State 10 Commission provides prior approval, a class 3 brewer may 11 annually transfer up to 155,000 gallons of beer manufactured 12 by that class 3 brewer to the premises of a licensed class 3 13 brewer wholly owned and operated by the same licensee. A class 14 3 brewer shall manufacture beer at the brewer's class 3 15 designated licensed premises, and may sell beer as otherwise 16 provided in this Act. 17 (a-1) A manufacturer which is licensed in this State to 18 make sales or deliveries of alcoholic liquor to licensed 19 distributors or importing distributors and which enlists 20 agents, representatives, or individuals acting on its behalf 21 who contact licensed retailers on a regular and continual 22 basis in this State must register those agents, 23 representatives, or persons acting on its behalf with the 24 State Commission. 25 Registration of agents, representatives, or persons acting 26 on behalf of a manufacturer is fulfilled by submitting a form SB3358 - 36 - LRB103 38772 RPS 68909 b SB3358- 37 -LRB103 38772 RPS 68909 b SB3358 - 37 - LRB103 38772 RPS 68909 b SB3358 - 37 - LRB103 38772 RPS 68909 b 1 to the Commission. The form shall be developed by the 2 Commission and shall include the name and address of the 3 applicant, the name and address of the manufacturer he or she 4 represents, the territory or areas assigned to sell to or 5 discuss pricing terms of alcoholic liquor, and any other 6 questions deemed appropriate and necessary. All statements in 7 the forms required to be made by law or by rule shall be deemed 8 material, and any person who knowingly misstates any material 9 fact under oath in an application is guilty of a Class B 10 misdemeanor. Fraud, misrepresentation, false statements, 11 misleading statements, evasions, or suppression of material 12 facts in the securing of a registration are grounds for 13 suspension or revocation of the registration. The State 14 Commission shall post a list of registered agents on the 15 Commission's website. 16 (b) A distributor's license shall allow (i) the wholesale 17 purchase and storage of alcoholic liquors and sale of 18 alcoholic liquors to licensees in this State and to persons 19 without the State, as may be permitted by law; (ii) the sale of 20 beer, cider, mead, or any combination thereof to brewers, 21 class 1 brewers, and class 2 brewers that, pursuant to 22 subsection (e) of Section 6-4 of this Act, sell beer, cider, 23 mead, or any combination thereof to non-licensees at their 24 breweries; (iii) the sale of vermouth to class 1 craft 25 distillers and class 2 craft distillers that, pursuant to 26 subsection (e) of Section 6-4 of this Act, sell spirits, SB3358 - 37 - LRB103 38772 RPS 68909 b SB3358- 38 -LRB103 38772 RPS 68909 b SB3358 - 38 - LRB103 38772 RPS 68909 b SB3358 - 38 - LRB103 38772 RPS 68909 b 1 vermouth, or both spirits and vermouth to non-licensees at 2 their distilleries; or (iv) as otherwise provided in this Act. 3 No person licensed as a distributor shall be granted a 4 non-resident dealer's license. 5 (c) An importing distributor's license may be issued to 6 and held by those only who are duly licensed distributors, 7 upon the filing of an application by a duly licensed 8 distributor, with the Commission and the Commission shall, 9 without the payment of any fee, immediately issue such 10 importing distributor's license to the applicant, which shall 11 allow the importation of alcoholic liquor by the licensee into 12 this State from any point in the United States outside this 13 State, and the purchase of alcoholic liquor in barrels, casks 14 or other bulk containers and the bottling of such alcoholic 15 liquors before resale thereof, but all bottles or containers 16 so filled shall be sealed, labeled, stamped and otherwise made 17 to comply with all provisions, rules and regulations governing 18 manufacturers in the preparation and bottling of alcoholic 19 liquors. The importing distributor's license shall permit such 20 licensee to purchase alcoholic liquor from Illinois licensed 21 non-resident dealers and foreign importers only. No person 22 licensed as an importing distributor shall be granted a 23 non-resident dealer's license. 24 (d) A retailer's license shall allow the licensee to sell 25 and offer for sale at retail, only in the premises specified in 26 the license, alcoholic liquor for use or consumption, but not SB3358 - 38 - LRB103 38772 RPS 68909 b SB3358- 39 -LRB103 38772 RPS 68909 b SB3358 - 39 - LRB103 38772 RPS 68909 b SB3358 - 39 - LRB103 38772 RPS 68909 b 1 for resale in any form. Except as provided in Section 6-16, 2 6-29, or 6-29.1, nothing in this Act shall deny, limit, 3 remove, or restrict the ability of a holder of a retailer's 4 license to transfer or ship alcoholic liquor to the purchaser 5 for use or consumption subject to any applicable local law or 6 ordinance. For the purposes of this Section, "shipping" means 7 the movement of alcoholic liquor from a licensed retailer to a 8 consumer via a common carrier. Except as provided in Section 9 6-16, 6-29, or 6-29.1, nothing in this Act shall deny, limit, 10 remove, or restrict the ability of a holder of a retailer's 11 license to deliver alcoholic liquor to the purchaser for use 12 or consumption. The delivery shall be made only within 12 13 hours from the time the alcoholic liquor leaves the licensed 14 premises of the retailer for delivery. For the purposes of 15 this Section, "delivery" means the movement of alcoholic 16 liquor purchased from a licensed retailer to a consumer 17 through the following methods: 18 (1) delivery within licensed retailer's parking lot, 19 including curbside, for pickup by the consumer; 20 (2) delivery by an owner, officer, director, 21 shareholder, or employee of the licensed retailer; or 22 (3) delivery by a third-party contractor, independent 23 contractor, or agent with whom the licensed retailer has 24 contracted to make deliveries of alcoholic liquors. 25 Under subsection (1), (2), or (3), delivery shall not 26 include the use of common carriers. SB3358 - 39 - LRB103 38772 RPS 68909 b SB3358- 40 -LRB103 38772 RPS 68909 b SB3358 - 40 - LRB103 38772 RPS 68909 b SB3358 - 40 - LRB103 38772 RPS 68909 b 1 Any retail license issued to a manufacturer shall only 2 permit the manufacturer to sell beer at retail on the premises 3 actually occupied by the manufacturer. For the purpose of 4 further describing the type of business conducted at a retail 5 licensed premises, a retailer's licensee may be designated by 6 the State Commission as (i) an on premise consumption 7 retailer, (ii) an off premise sale retailer, or (iii) a 8 combined on premise consumption and off premise sale retailer. 9 Except for a municipality with a population of more than 10 1,000,000 inhabitants, a home rule unit may not regulate the 11 delivery of alcoholic liquor inconsistent with this 12 subsection. This paragraph is a limitation under subsection 13 (i) of Section 6 of Article VII of the Illinois Constitution on 14 the concurrent exercise by home rule units of powers and 15 functions exercised by the State. A non-home rule municipality 16 may not regulate the delivery of alcoholic liquor inconsistent 17 with this subsection. 18 Notwithstanding any other provision of this subsection 19 (d), a retail licensee may sell alcoholic liquors to a special 20 event retailer licensee for resale to the extent permitted 21 under subsection (e). 22 (e) A special event retailer's license (not-for-profit) 23 shall permit the licensee to purchase alcoholic liquors from 24 an Illinois licensed distributor (unless the licensee 25 purchases less than $500 of alcoholic liquors for the special 26 event, in which case the licensee may purchase the alcoholic SB3358 - 40 - LRB103 38772 RPS 68909 b SB3358- 41 -LRB103 38772 RPS 68909 b SB3358 - 41 - LRB103 38772 RPS 68909 b SB3358 - 41 - LRB103 38772 RPS 68909 b 1 liquors from a licensed retailer) and shall allow the licensee 2 to sell and offer for sale, at retail, alcoholic liquors for 3 use or consumption, but not for resale in any form and only at 4 the location and on the specific dates designated for the 5 special event in the license. An applicant for a special event 6 retailer license must (i) furnish with the application: (A) a 7 resale number issued under Section 2c of the Retailers' 8 Occupation Tax Act or evidence that the applicant is 9 registered under Section 2a of the Retailers' Occupation Tax 10 Act, (B) a current, valid exemption identification number 11 issued under Section 1g of the Retailers' Occupation Tax Act, 12 and a certification to the Commission that the purchase of 13 alcoholic liquors will be a tax-exempt purchase, or (C) a 14 statement that the applicant is not registered under Section 15 2a of the Retailers' Occupation Tax Act, does not hold a resale 16 number under Section 2c of the Retailers' Occupation Tax Act, 17 and does not hold an exemption number under Section 1g of the 18 Retailers' Occupation Tax Act, in which event the Commission 19 shall set forth on the special event retailer's license a 20 statement to that effect; (ii) submit with the application 21 proof satisfactory to the State Commission that the applicant 22 will provide dram shop liability insurance in the maximum 23 limits; and (iii) show proof satisfactory to the State 24 Commission that the applicant has obtained local authority 25 approval. 26 Nothing in this Act prohibits an Illinois licensed SB3358 - 41 - LRB103 38772 RPS 68909 b SB3358- 42 -LRB103 38772 RPS 68909 b SB3358 - 42 - LRB103 38772 RPS 68909 b SB3358 - 42 - LRB103 38772 RPS 68909 b 1 distributor from offering credit or a refund for unused, 2 salable alcoholic liquors to a holder of a special event 3 retailer's license or the special event retailer's licensee 4 from accepting the credit or refund of alcoholic liquors at 5 the conclusion of the event specified in the license. 6 (f) A railroad license shall permit the licensee to import 7 alcoholic liquors into this State from any point in the United 8 States outside this State and to store such alcoholic liquors 9 in this State; to make wholesale purchases of alcoholic 10 liquors directly from manufacturers, foreign importers, 11 distributors and importing distributors from within or outside 12 this State; and to store such alcoholic liquors in this State; 13 provided that the above powers may be exercised only in 14 connection with the importation, purchase or storage of 15 alcoholic liquors to be sold or dispensed on a club, buffet, 16 lounge or dining car operated on an electric, gas or steam 17 railway in this State; and provided further, that railroad 18 licensees exercising the above powers shall be subject to all 19 provisions of Article VIII of this Act as applied to importing 20 distributors. A railroad license shall also permit the 21 licensee to sell or dispense alcoholic liquors on any club, 22 buffet, lounge or dining car operated on an electric, gas or 23 steam railway regularly operated by a common carrier in this 24 State, but shall not permit the sale for resale of any 25 alcoholic liquors to any licensee within this State. A license 26 shall be obtained for each car in which such sales are made. SB3358 - 42 - LRB103 38772 RPS 68909 b SB3358- 43 -LRB103 38772 RPS 68909 b SB3358 - 43 - LRB103 38772 RPS 68909 b SB3358 - 43 - LRB103 38772 RPS 68909 b 1 (g) A boat license shall allow the sale of alcoholic 2 liquor in individual drinks, on any passenger boat regularly 3 operated as a common carrier on navigable waters in this State 4 or on any riverboat operated under the Illinois Gambling Act, 5 which boat or riverboat maintains a public dining room or 6 restaurant thereon. 7 (h) A non-beverage user's license shall allow the licensee 8 to purchase alcoholic liquor from a licensed manufacturer or 9 importing distributor, without the imposition of any tax upon 10 the business of such licensed manufacturer or importing 11 distributor as to such alcoholic liquor to be used by such 12 licensee solely for the non-beverage purposes set forth in 13 subsection (a) of Section 8-1 of this Act, and such licenses 14 shall be divided and classified and shall permit the purchase, 15 possession and use of limited and stated quantities of 16 alcoholic liquor as follows: 17 Class 1, not to exceed ......................... 500 gallons 18 Class 2, not to exceed ....................... 1,000 gallons 19 Class 3, not to exceed ....................... 5,000 gallons 20 Class 4, not to exceed ...................... 10,000 gallons 21 Class 5, not to exceed ....................... 50,000 gallons 22 (i) A wine-maker's premises license shall allow a licensee 23 that concurrently holds a first-class wine-maker's license to 24 sell and offer for sale at retail in the premises specified in 25 such license not more than 50,000 gallons of the first-class 26 wine-maker's wine that is made at the first-class wine-maker's SB3358 - 43 - LRB103 38772 RPS 68909 b SB3358- 44 -LRB103 38772 RPS 68909 b SB3358 - 44 - LRB103 38772 RPS 68909 b SB3358 - 44 - LRB103 38772 RPS 68909 b 1 licensed premises per year for use or consumption, but not for 2 resale in any form. A wine-maker's premises license shall 3 allow a licensee who concurrently holds a second-class 4 wine-maker's license to sell and offer for sale at retail in 5 the premises specified in such license up to 100,000 gallons 6 of the second-class wine-maker's wine that is made at the 7 second-class wine-maker's licensed premises per year for use 8 or consumption but not for resale in any form. A first-class 9 wine-maker that concurrently holds a class 1 brewer license or 10 a class 1 craft distiller license shall not be eligible to hold 11 a wine-maker's premises license. A wine-maker's premises 12 license shall allow a licensee that concurrently holds a 13 first-class wine-maker's license or a second-class 14 wine-maker's license to sell and offer for sale at retail at 15 the premises specified in the wine-maker's premises license, 16 for use or consumption but not for resale in any form, any 17 beer, wine, and spirits purchased from a licensed distributor. 18 Upon approval from the State Commission, a wine-maker's 19 premises license shall allow the licensee to sell and offer 20 for sale at (i) the wine-maker's licensed premises and (ii) at 21 up to 2 additional locations for use and consumption and not 22 for resale. Each location shall require additional licensing 23 per location as specified in Section 5-3 of this Act. A 24 wine-maker's premises licensee shall secure liquor liability 25 insurance coverage in an amount at least equal to the maximum 26 liability amounts set forth in subsection (a) of Section 6-21 SB3358 - 44 - LRB103 38772 RPS 68909 b SB3358- 45 -LRB103 38772 RPS 68909 b SB3358 - 45 - LRB103 38772 RPS 68909 b SB3358 - 45 - LRB103 38772 RPS 68909 b 1 of this Act. 2 (j) An airplane license shall permit the licensee to 3 import alcoholic liquors into this State from any point in the 4 United States outside this State and to store such alcoholic 5 liquors in this State; to make wholesale purchases of 6 alcoholic liquors directly from manufacturers, foreign 7 importers, distributors and importing distributors from within 8 or outside this State; and to store such alcoholic liquors in 9 this State; provided that the above powers may be exercised 10 only in connection with the importation, purchase or storage 11 of alcoholic liquors to be sold or dispensed on an airplane; 12 and provided further, that airplane licensees exercising the 13 above powers shall be subject to all provisions of Article 14 VIII of this Act as applied to importing distributors. An 15 airplane licensee shall also permit the sale or dispensing of 16 alcoholic liquors on any passenger airplane regularly operated 17 by a common carrier in this State, but shall not permit the 18 sale for resale of any alcoholic liquors to any licensee 19 within this State. A single airplane license shall be required 20 of an airline company if liquor service is provided on board 21 aircraft in this State. The annual fee for such license shall 22 be as determined in Section 5-3. 23 (k) A foreign importer's license shall permit such 24 licensee to purchase alcoholic liquor from Illinois licensed 25 non-resident dealers only, and to import alcoholic liquor 26 other than in bulk from any point outside the United States and SB3358 - 45 - LRB103 38772 RPS 68909 b SB3358- 46 -LRB103 38772 RPS 68909 b SB3358 - 46 - LRB103 38772 RPS 68909 b SB3358 - 46 - LRB103 38772 RPS 68909 b 1 to sell such alcoholic liquor to Illinois licensed importing 2 distributors and to no one else in Illinois; provided that (i) 3 the foreign importer registers with the State Commission every 4 brand of alcoholic liquor that it proposes to sell to Illinois 5 licensees during the license period, (ii) the foreign importer 6 complies with all of the provisions of Section 6-9 of this Act 7 with respect to registration of such Illinois licensees as may 8 be granted the right to sell such brands at wholesale, and 9 (iii) the foreign importer complies with the provisions of 10 Sections 6-5 and 6-6 of this Act to the same extent that these 11 provisions apply to manufacturers. 12 (l) (i) A broker's license shall be required of all 13 persons who solicit orders for, offer to sell or offer to 14 supply alcoholic liquor to retailers in the State of Illinois, 15 or who offer to retailers to ship or cause to be shipped or to 16 make contact with distillers, craft distillers, rectifiers, 17 brewers or manufacturers or any other party within or without 18 the State of Illinois in order that alcoholic liquors be 19 shipped to a distributor, importing distributor or foreign 20 importer, whether such solicitation or offer is consummated 21 within or without the State of Illinois. 22 No holder of a retailer's license issued by the Illinois 23 Liquor Control Commission shall purchase or receive any 24 alcoholic liquor, the order for which was solicited or offered 25 for sale to such retailer by a broker unless the broker is the 26 holder of a valid broker's license. SB3358 - 46 - LRB103 38772 RPS 68909 b SB3358- 47 -LRB103 38772 RPS 68909 b SB3358 - 47 - LRB103 38772 RPS 68909 b SB3358 - 47 - LRB103 38772 RPS 68909 b 1 The broker shall, upon the acceptance by a retailer of the 2 broker's solicitation of an order or offer to sell or supply or 3 deliver or have delivered alcoholic liquors, promptly forward 4 to the Illinois Liquor Control Commission a notification of 5 said transaction in such form as the Commission may by 6 regulations prescribe. 7 (ii) A broker's license shall be required of a person 8 within this State, other than a retail licensee, who, for a fee 9 or commission, promotes, solicits, or accepts orders for 10 alcoholic liquor, for use or consumption and not for resale, 11 to be shipped from this State and delivered to residents 12 outside of this State by an express company, common carrier, 13 or contract carrier. This Section does not apply to any person 14 who promotes, solicits, or accepts orders for wine as 15 specifically authorized in Section 6-29 of this Act. 16 A broker's license under this subsection (l) shall not 17 entitle the holder to buy or sell any alcoholic liquors for his 18 own account or to take or deliver title to such alcoholic 19 liquors. 20 This subsection (l) shall not apply to distributors, 21 employees of distributors, or employees of a manufacturer who 22 has registered the trademark, brand or name of the alcoholic 23 liquor pursuant to Section 6-9 of this Act, and who regularly 24 sells such alcoholic liquor in the State of Illinois only to 25 its registrants thereunder. 26 Any agent, representative, or person subject to SB3358 - 47 - LRB103 38772 RPS 68909 b SB3358- 48 -LRB103 38772 RPS 68909 b SB3358 - 48 - LRB103 38772 RPS 68909 b SB3358 - 48 - LRB103 38772 RPS 68909 b 1 registration pursuant to subsection (a-1) of this Section 2 shall not be eligible to receive a broker's license. 3 (m) A non-resident dealer's license shall permit such 4 licensee to ship into and warehouse alcoholic liquor into this 5 State from any point outside of this State, and to sell such 6 alcoholic liquor to Illinois licensed foreign importers and 7 importing distributors and to no one else in this State; 8 provided that (i) said non-resident dealer shall register with 9 the Illinois Liquor Control Commission each and every brand of 10 alcoholic liquor which it proposes to sell to Illinois 11 licensees during the license period, (ii) it shall comply with 12 all of the provisions of Section 6-9 hereof with respect to 13 registration of such Illinois licensees as may be granted the 14 right to sell such brands at wholesale by duly filing such 15 registration statement, thereby authorizing the non-resident 16 dealer to proceed to sell such brands at wholesale, and (iii) 17 the non-resident dealer shall comply with the provisions of 18 Sections 6-5 and 6-6 of this Act to the same extent that these 19 provisions apply to manufacturers. No person licensed as a 20 non-resident dealer shall be granted a distributor's or 21 importing distributor's license. 22 (n) A brew pub license shall allow the licensee to only (i) 23 manufacture up to 155,000 gallons of beer per year only on the 24 premises specified in the license, (ii) make sales of the beer 25 manufactured on the premises or, with the approval of the 26 Commission, beer manufactured on another brew pub licensed SB3358 - 48 - LRB103 38772 RPS 68909 b SB3358- 49 -LRB103 38772 RPS 68909 b SB3358 - 49 - LRB103 38772 RPS 68909 b SB3358 - 49 - LRB103 38772 RPS 68909 b 1 premises that is wholly owned and operated by the same 2 licensee to importing distributors, distributors, and to 3 non-licensees for use and consumption, (iii) store the beer 4 upon the premises, (iv) sell and offer for sale at retail from 5 the licensed premises for off-premises consumption no more 6 than 155,000 gallons per year so long as such sales are only 7 made in-person, (v) sell and offer for sale at retail for use 8 and consumption on the premises specified in the license any 9 form of alcoholic liquor purchased from a licensed distributor 10 or importing distributor, (vi) with the prior approval of the 11 Commission, annually transfer no more than 155,000 gallons of 12 beer manufactured on the premises to a licensed brew pub 13 wholly owned and operated by the same licensee, and (vii) 14 notwithstanding item (i) of this subsection, brew pubs wholly 15 owned and operated by the same licensee may combine each 16 location's production limit of 155,000 gallons of beer per 17 year and allocate the aggregate total between the wholly 18 owned, operated, and licensed locations. 19 A brew pub licensee shall not under any circumstance sell 20 or offer for sale beer manufactured by the brew pub licensee to 21 retail licensees. 22 A person who holds a class 2 brewer license may 23 simultaneously hold a brew pub license if the class 2 brewer 24 (i) does not, under any circumstance, sell or offer for sale 25 beer manufactured by the class 2 brewer to retail licensees; 26 (ii) does not hold more than 3 brew pub licenses in this State; SB3358 - 49 - LRB103 38772 RPS 68909 b SB3358- 50 -LRB103 38772 RPS 68909 b SB3358 - 50 - LRB103 38772 RPS 68909 b SB3358 - 50 - LRB103 38772 RPS 68909 b 1 (iii) does not manufacture more than a combined 3,720,000 2 gallons of beer per year, including the beer manufactured at 3 the brew pub; and (iv) is not a member of or affiliated with, 4 directly or indirectly, a manufacturer that produces more than 5 3,720,000 gallons of beer per year or any other alcoholic 6 liquor. 7 Notwithstanding any other provision of this Act, a 8 licensed brewer, class 2 brewer, or non-resident dealer who 9 before July 1, 2015 manufactured less than 3,720,000 gallons 10 of beer per year and held a brew pub license on or before July 11 1, 2015 may (i) continue to qualify for and hold that brew pub 12 license for the licensed premises and (ii) manufacture more 13 than 3,720,000 gallons of beer per year and continue to 14 qualify for and hold that brew pub license if that brewer, 15 class 2 brewer, or non-resident dealer does not simultaneously 16 hold a class 1 brewer license and is not a member of or 17 affiliated with, directly or indirectly, a manufacturer that 18 produces more than 3,720,000 gallons of beer per year or that 19 produces any other alcoholic liquor. 20 A brew pub licensee may apply for a class 3 brewer license 21 and, upon meeting all applicable qualifications of this Act 22 and relinquishing all commonly owned brew pub or retail 23 licenses, shall be issued a class 3 brewer license. Nothing in 24 this Act shall prohibit the issuance of a class 3 brewer 25 license if the applicant: 26 (1) has a valid retail license on or before May 1, SB3358 - 50 - LRB103 38772 RPS 68909 b SB3358- 51 -LRB103 38772 RPS 68909 b SB3358 - 51 - LRB103 38772 RPS 68909 b SB3358 - 51 - LRB103 38772 RPS 68909 b 1 2021; 2 (2) has an ownership interest in at least two brew 3 pubs licenses on or before May 1, 2021; 4 (3) the brew pub licensee applies for a class 3 brewer 5 license on or before October 1, 2022 and relinquishes all 6 commonly owned brew pub licenses; and 7 (4) relinquishes all commonly owned retail licenses on 8 or before December 31, 2022. 9 If a brew pub licensee is issued a class 3 brewer license, 10 the class 3 brewer license shall expire on the same date as the 11 existing brew pub license and the State Commission shall not 12 require a class 3 brewer licensee to obtain a brewer license, 13 or in the alternative to pay a fee for a brewer license, until 14 the date the brew pub license of the applicant would have 15 expired. 16 (o) A caterer retailer license shall allow the holder to 17 serve alcoholic liquors as an incidental part of a food 18 service that serves prepared meals which excludes the serving 19 of snacks as the primary meal, either on or off-site whether 20 licensed or unlicensed. A caterer retailer license shall allow 21 the holder, a distributor, or an importing distributor to 22 transfer any inventory to and from the holder's retail 23 premises and shall allow the holder to purchase alcoholic 24 liquor from a distributor or importing distributor to be 25 delivered directly to an off-site event. 26 Nothing in this Act prohibits a distributor or importing SB3358 - 51 - LRB103 38772 RPS 68909 b SB3358- 52 -LRB103 38772 RPS 68909 b SB3358 - 52 - LRB103 38772 RPS 68909 b SB3358 - 52 - LRB103 38772 RPS 68909 b 1 distributor from offering credit or a refund for unused, 2 salable beer to a holder of a caterer retailer license or a 3 caterer retailer licensee from accepting a credit or refund 4 for unused, salable beer, in the event an act of God is the 5 sole reason an off-site event is cancelled and if: (i) the 6 holder of a caterer retailer license has not transferred 7 alcoholic liquor from its caterer retailer premises to an 8 off-site location; (ii) the distributor or importing 9 distributor offers the credit or refund for the unused, 10 salable beer that it delivered to the off-site premises and 11 not for any unused, salable beer that the distributor or 12 importing distributor delivered to the caterer retailer's 13 premises; and (iii) the unused, salable beer would likely 14 spoil if transferred to the caterer retailer's premises. A 15 caterer retailer license shall allow the holder to transfer 16 any inventory from any off-site location to its caterer 17 retailer premises at the conclusion of an off-site event or 18 engage a distributor or importing distributor to transfer any 19 inventory from any off-site location to its caterer retailer 20 premises at the conclusion of an off-site event, provided that 21 the distributor or importing distributor issues bona fide 22 charges to the caterer retailer licensee for fuel, labor, and 23 delivery and the distributor or importing distributor collects 24 payment from the caterer retailer licensee prior to the 25 distributor or importing distributor transferring inventory to 26 the caterer retailer premises. SB3358 - 52 - LRB103 38772 RPS 68909 b SB3358- 53 -LRB103 38772 RPS 68909 b SB3358 - 53 - LRB103 38772 RPS 68909 b SB3358 - 53 - LRB103 38772 RPS 68909 b 1 For purposes of this subsection (o), an "act of God" means 2 an unforeseeable event, such as a rain or snow storm, hail, a 3 flood, or a similar event, that is the sole cause of the 4 cancellation of an off-site, outdoor event. 5 (p) An auction liquor license shall allow the licensee to 6 sell and offer for sale at auction wine and spirits for use or 7 consumption, or for resale by an Illinois liquor licensee in 8 accordance with provisions of this Act. An auction liquor 9 license will be issued to a person and it will permit the 10 auction liquor licensee to hold the auction anywhere in the 11 State. An auction liquor license must be obtained for each 12 auction at least 14 days in advance of the auction date. 13 (q) A special use permit license shall allow an Illinois 14 licensed retailer to transfer a portion of its alcoholic 15 liquor inventory from its retail licensed premises to the 16 premises specified in the license hereby created; to purchase 17 alcoholic liquor from a distributor or importing distributor 18 to be delivered directly to the location specified in the 19 license hereby created; and to sell or offer for sale at 20 retail, only in the premises specified in the license hereby 21 created, the transferred or delivered alcoholic liquor for use 22 or consumption, but not for resale in any form. A special use 23 permit license may be granted for the following time periods: 24 one day or less; 2 or more days to a maximum of 15 days per 25 location in any 12-month period. An applicant for the special 26 use permit license must also submit with the application proof SB3358 - 53 - LRB103 38772 RPS 68909 b SB3358- 54 -LRB103 38772 RPS 68909 b SB3358 - 54 - LRB103 38772 RPS 68909 b SB3358 - 54 - LRB103 38772 RPS 68909 b 1 satisfactory to the State Commission that the applicant will 2 provide dram shop liability insurance to the maximum limits 3 and have local authority approval. 4 A special use permit license shall allow the holder to 5 transfer any inventory from the holder's special use premises 6 to its retail premises at the conclusion of the special use 7 event or engage a distributor or importing distributor to 8 transfer any inventory from the holder's special use premises 9 to its retail premises at the conclusion of an off-site event, 10 provided that the distributor or importing distributor issues 11 bona fide charges to the special use permit licensee for fuel, 12 labor, and delivery and the distributor or importing 13 distributor collects payment from the retail licensee prior to 14 the distributor or importing distributor transferring 15 inventory to the retail premises. 16 Nothing in this Act prohibits a distributor or importing 17 distributor from offering credit or a refund for unused, 18 salable beer to a special use permit licensee or a special use 19 permit licensee from accepting a credit or refund for unused, 20 salable beer at the conclusion of the event specified in the 21 license if: (i) the holder of the special use permit license 22 has not transferred alcoholic liquor from its retail licensed 23 premises to the premises specified in the special use permit 24 license; (ii) the distributor or importing distributor offers 25 the credit or refund for the unused, salable beer that it 26 delivered to the premises specified in the special use permit SB3358 - 54 - LRB103 38772 RPS 68909 b SB3358- 55 -LRB103 38772 RPS 68909 b SB3358 - 55 - LRB103 38772 RPS 68909 b SB3358 - 55 - LRB103 38772 RPS 68909 b 1 license and not for any unused, salable beer that the 2 distributor or importing distributor delivered to the 3 retailer's premises; and (iii) the unused, salable beer would 4 likely spoil if transferred to the retailer premises. 5 (r) A winery shipper's license shall allow a person with a 6 first-class or second-class wine manufacturer's license, a 7 first-class or second-class wine-maker's license, or a limited 8 wine manufacturer's license or who is licensed to make wine 9 under the laws of another state to ship wine made by that 10 licensee directly to a resident of this State who is 21 years 11 of age or older for that resident's personal use and not for 12 resale. Prior to receiving a winery shipper's license, an 13 applicant for the license must provide the Commission with a 14 true copy of its current license in any state in which it is 15 licensed as a manufacturer of wine. An applicant for a winery 16 shipper's license must also complete an application form that 17 provides any other information the Commission deems necessary. 18 The application form shall include all addresses from which 19 the applicant for a winery shipper's license intends to ship 20 wine, including the name and address of any third party, 21 except for a common carrier, authorized to ship wine on behalf 22 of the manufacturer. The application form shall include an 23 acknowledgement consenting to the jurisdiction of the 24 Commission, the Illinois Department of Revenue, and the courts 25 of this State concerning the enforcement of this Act and any 26 related laws, rules, and regulations, including authorizing SB3358 - 55 - LRB103 38772 RPS 68909 b SB3358- 56 -LRB103 38772 RPS 68909 b SB3358 - 56 - LRB103 38772 RPS 68909 b SB3358 - 56 - LRB103 38772 RPS 68909 b 1 the Department of Revenue and the Commission to conduct audits 2 for the purpose of ensuring compliance with Public Act 95-634, 3 and an acknowledgement that the wine manufacturer is in 4 compliance with Section 6-2 of this Act. Any third party, 5 except for a common carrier, authorized to ship wine on behalf 6 of a first-class or second-class wine manufacturer's licensee, 7 a first-class or second-class wine-maker's licensee, a limited 8 wine manufacturer's licensee, or a person who is licensed to 9 make wine under the laws of another state shall also be 10 disclosed by the winery shipper's licensee, and a copy of the 11 written appointment of the third-party wine provider, except 12 for a common carrier, to the wine manufacturer shall be filed 13 with the State Commission as a supplement to the winery 14 shipper's license application or any renewal thereof. The 15 winery shipper's license holder shall affirm under penalty of 16 perjury, as part of the winery shipper's license application 17 or renewal, that he or she only ships wine, either directly or 18 indirectly through a third-party provider, from the licensee's 19 own production. 20 Except for a common carrier, a third-party provider 21 shipping wine on behalf of a winery shipper's license holder 22 is the agent of the winery shipper's license holder and, as 23 such, a winery shipper's license holder is responsible for the 24 acts and omissions of the third-party provider acting on 25 behalf of the license holder. A third-party provider, except 26 for a common carrier, that engages in shipping wine into SB3358 - 56 - LRB103 38772 RPS 68909 b SB3358- 57 -LRB103 38772 RPS 68909 b SB3358 - 57 - LRB103 38772 RPS 68909 b SB3358 - 57 - LRB103 38772 RPS 68909 b 1 Illinois on behalf of a winery shipper's license holder shall 2 consent to the jurisdiction of the State Commission and the 3 State. Any third-party, except for a common carrier, holding 4 such an appointment shall, by February 1 of each calendar year 5 and upon request by the State Commission or the Department of 6 Revenue, file with the State Commission a statement detailing 7 each shipment made to an Illinois resident. The statement 8 shall include the name and address of the third-party provider 9 filing the statement, the time period covered by the 10 statement, and the following information: 11 (1) the name, address, and license number of the 12 winery shipper on whose behalf the shipment was made; 13 (2) the quantity of the products delivered; and 14 (3) the date and address of the shipment. 15 If the Department of Revenue or the State Commission requests 16 a statement under this paragraph, the third-party provider 17 must provide that statement no later than 30 days after the 18 request is made. Any books, records, supporting papers, and 19 documents containing information and data relating to a 20 statement under this paragraph shall be kept and preserved for 21 a period of 3 years, unless their destruction sooner is 22 authorized, in writing, by the Director of Revenue, and shall 23 be open and available to inspection by the Director of Revenue 24 or the State Commission or any duly authorized officer, agent, 25 or employee of the State Commission or the Department of 26 Revenue, at all times during business hours of the day. Any SB3358 - 57 - LRB103 38772 RPS 68909 b SB3358- 58 -LRB103 38772 RPS 68909 b SB3358 - 58 - LRB103 38772 RPS 68909 b SB3358 - 58 - LRB103 38772 RPS 68909 b 1 person who violates any provision of this paragraph or any 2 rule of the State Commission for the administration and 3 enforcement of the provisions of this paragraph is guilty of a 4 Class C misdemeanor. In case of a continuing violation, each 5 day's continuance thereof shall be a separate and distinct 6 offense. 7 The State Commission shall adopt rules as soon as 8 practicable to implement the requirements of Public Act 99-904 9 and shall adopt rules prohibiting any such third-party 10 appointment of a third-party provider, except for a common 11 carrier, that has been deemed by the State Commission to have 12 violated the provisions of this Act with regard to any winery 13 shipper licensee. 14 A winery shipper licensee must pay to the Department of 15 Revenue the State liquor gallonage tax under Section 8-1 for 16 all wine that is sold by the licensee and shipped to a person 17 in this State. For the purposes of Section 8-1, a winery 18 shipper licensee shall be taxed in the same manner as a 19 manufacturer of wine. A licensee who is not otherwise required 20 to register under the Retailers' Occupation Tax Act must 21 register under the Use Tax Act to collect and remit use tax to 22 the Department of Revenue for all gallons of wine that are sold 23 by the licensee and shipped to persons in this State. If a 24 licensee fails to remit the tax imposed under this Act in 25 accordance with the provisions of Article VIII of this Act, 26 the winery shipper's license shall be revoked in accordance SB3358 - 58 - LRB103 38772 RPS 68909 b SB3358- 59 -LRB103 38772 RPS 68909 b SB3358 - 59 - LRB103 38772 RPS 68909 b SB3358 - 59 - LRB103 38772 RPS 68909 b 1 with the provisions of Article VII of this Act. If a licensee 2 fails to properly register and remit tax under the Use Tax Act 3 or the Retailers' Occupation Tax Act for all wine that is sold 4 by the winery shipper and shipped to persons in this State, the 5 winery shipper's license shall be revoked in accordance with 6 the provisions of Article VII of this Act. 7 A winery shipper licensee must collect, maintain, and 8 submit to the Commission on a semi-annual basis the total 9 number of cases per resident of wine shipped to residents of 10 this State. A winery shipper licensed under this subsection 11 (r) must comply with the requirements of Section 6-29 of this 12 Act. 13 Pursuant to paragraph (5.1) or (5.3) of subsection (a) of 14 Section 3-12, the State Commission may receive, respond to, 15 and investigate any complaint and impose any of the remedies 16 specified in paragraph (1) of subsection (a) of Section 3-12. 17 As used in this subsection, "third-party provider" means 18 any entity that provides fulfillment house services, including 19 warehousing, packaging, distribution, order processing, or 20 shipment of wine, but not the sale of wine, on behalf of a 21 licensed winery shipper. 22 (s) A craft distiller tasting permit license shall allow 23 an Illinois licensed class 1 craft distiller or class 2 craft 24 distiller to transfer a portion of its alcoholic liquor 25 inventory from its class 1 craft distiller or class 2 craft 26 distiller licensed premises to the premises specified in the SB3358 - 59 - LRB103 38772 RPS 68909 b SB3358- 60 -LRB103 38772 RPS 68909 b SB3358 - 60 - LRB103 38772 RPS 68909 b SB3358 - 60 - LRB103 38772 RPS 68909 b 1 license hereby created and to conduct a sampling, only in the 2 premises specified in the license hereby created, of the 3 transferred alcoholic liquor in accordance with subsection (c) 4 of Section 6-31 of this Act. The transferred alcoholic liquor 5 may not be sold or resold in any form. An applicant for the 6 craft distiller tasting permit license must also submit with 7 the application proof satisfactory to the State Commission 8 that the applicant will provide dram shop liability insurance 9 to the maximum limits and have local authority approval. 10 (t) A brewer warehouse permit may be issued to the holder 11 of a class 1 brewer license or a class 2 brewer license. If the 12 holder of the permit is a class 1 brewer licensee, the brewer 13 warehouse permit shall allow the holder to store or warehouse 14 up to 930,000 gallons of tax-determined beer manufactured by 15 the holder of the permit at the premises specified on the 16 permit. If the holder of the permit is a class 2 brewer 17 licensee, the brewer warehouse permit shall allow the holder 18 to store or warehouse up to 3,720,000 gallons of 19 tax-determined beer manufactured by the holder of the permit 20 at the premises specified on the permit. Sales to 21 non-licensees are prohibited at the premises specified in the 22 brewer warehouse permit. 23 (u) A distilling pub license shall allow the licensee to 24 only (i) manufacture up to 5,000 gallons of spirits per year 25 only on the premises specified in the license, (ii) make sales 26 of the spirits manufactured on the premises or, with the SB3358 - 60 - LRB103 38772 RPS 68909 b SB3358- 61 -LRB103 38772 RPS 68909 b SB3358 - 61 - LRB103 38772 RPS 68909 b SB3358 - 61 - LRB103 38772 RPS 68909 b 1 approval of the State Commission, spirits manufactured on 2 another distilling pub licensed premises that is wholly owned 3 and operated by the same licensee to importing distributors 4 and distributors and to non-licensees for use and consumption, 5 (iii) store the spirits upon the premises, (iv) sell and offer 6 for sale at retail from the licensed premises for off-premises 7 consumption no more than 5,000 gallons per year so long as such 8 sales are only made in-person, (v) sell and offer for sale at 9 retail for use and consumption on the premises specified in 10 the license any form of alcoholic liquor purchased from a 11 licensed distributor or importing distributor, and (vi) with 12 the prior approval of the State Commission, annually transfer 13 no more than 5,000 gallons of spirits manufactured on the 14 premises to a licensed distilling pub wholly owned and 15 operated by the same licensee. 16 A distilling pub licensee shall not under any circumstance 17 sell or offer for sale spirits manufactured by the distilling 18 pub licensee to retail licensees. 19 A person who holds a class 2 craft distiller license may 20 simultaneously hold a distilling pub license if the class 2 21 craft distiller (i) does not, under any circumstance, sell or 22 offer for sale spirits manufactured by the class 2 craft 23 distiller to retail licensees; (ii) does not hold more than 3 24 distilling pub licenses in this State; (iii) does not 25 manufacture more than a combined 100,000 gallons of spirits 26 per year, including the spirits manufactured at the distilling SB3358 - 61 - LRB103 38772 RPS 68909 b SB3358- 62 -LRB103 38772 RPS 68909 b SB3358 - 62 - LRB103 38772 RPS 68909 b SB3358 - 62 - LRB103 38772 RPS 68909 b 1 pub; and (iv) is not a member of or affiliated with, directly 2 or indirectly, a manufacturer that produces more than 100,000 3 gallons of spirits per year or any other alcoholic liquor. 4 (v) A craft distiller warehouse permit may be issued to 5 the holder of a class 1 craft distiller or class 2 craft 6 distiller license. The craft distiller warehouse permit shall 7 allow the holder to store or warehouse up to 500,000 gallons of 8 spirits manufactured by the holder of the permit at the 9 premises specified on the permit. Sales to non-licensees are 10 prohibited at the premises specified in the craft distiller 11 warehouse permit. 12 (w) A beer showcase permit license shall allow an 13 Illinois-licensed distributor to transfer a portion of its 14 beer inventory from its licensed premises to the premises 15 specified in the beer showcase permit license, and, in the 16 case of a class 3 brewer, transfer only beer the class 3 brewer 17 manufactures from its licensed premises to the premises 18 specified in the beer showcase permit license; and to sell or 19 offer for sale at retail, only in the premises specified in the 20 beer showcase permit license, the transferred or delivered 21 beer for on or off premise consumption, but not for resale in 22 any form and to sell to non-licensees not more than 96 fluid 23 ounces of beer per person. A beer showcase permit license may 24 be granted for the following time periods: one day or less; or 25 2 or more days to a maximum of 15 days per location in any 26 12-month period. An applicant for a beer showcase permit SB3358 - 62 - LRB103 38772 RPS 68909 b SB3358- 63 -LRB103 38772 RPS 68909 b SB3358 - 63 - LRB103 38772 RPS 68909 b SB3358 - 63 - LRB103 38772 RPS 68909 b 1 license must also submit with the application proof 2 satisfactory to the State Commission that the applicant will 3 provide dram shop liability insurance to the maximum limits 4 and have local authority approval. The State Commission shall 5 require the beer showcase applicant to comply with Section 6 6-27.1. 7 (x) A distillery shipper's license shall allow a person 8 with an Illinois distiller license, a craft distiller license, 9 a class 1 craft distiller license, or a class 2 craft distiller 10 license or who is licensed to make spirits under the laws of 11 another state to ship spirits directly to a resident of this 12 State who is 21 years of age or older for that resident's 13 personal use and not for resale. Prior to receiving a 14 distillery shipper's license, an applicant for the license 15 must provide the State Commission with a true copy of its 16 current license in any state in which it is licensed as a 17 distiller. An applicant for a distillery shipper's license 18 must also complete an application form that provides any other 19 information the State Commission deems necessary. The 20 application form shall include an acknowledgement consenting 21 to the jurisdiction of the State Commission, the Illinois 22 Department of Revenue, and the courts of this State concerning 23 the enforcement of this Act and any related laws, rules, and 24 regulations, including authorizing the Illinois Department of 25 Revenue and the State Commission to conduct audits for the 26 purpose of ensuring compliance with this amendatory Act of the SB3358 - 63 - LRB103 38772 RPS 68909 b SB3358- 64 -LRB103 38772 RPS 68909 b SB3358 - 64 - LRB103 38772 RPS 68909 b SB3358 - 64 - LRB103 38772 RPS 68909 b 1 103rd General Assembly. 2 A distillery shipper's licensee must pay to the Illinois 3 Department of Revenue the State liquor gallonage tax under 4 Section 8-1 for all spirits that are sold by the licensee and 5 shipped to a person in this State. For the purposes of Section 6 8-1, an out-of-state distillery shipper's licensee shall be 7 taxed in the same manner as a manufacturer of spirits. A 8 licensee who is not otherwise required to register under the 9 Retailers' Occupation Tax Act must register under the Use Tax 10 Act to collect and remit use tax to the Illinois Department of 11 Revenue for all gallons of spirits that are sold by the 12 licensee and shipped to persons in this State. If a licensee 13 fails to remit the tax imposed under this Act in accordance 14 with the provisions of Article VIII of this Act, the 15 distillery shipper's license shall be revoked in accordance 16 with the provisions of Article VII of this Act. If a licensee 17 fails to properly register and remit tax under the Use Tax Act 18 or the Retailers' Occupation Tax Act for all spirits that is 19 sold by the distillery shipper and shipped to persons in this 20 State, the distillery shipper's license shall be revoked in 21 accordance with the provisions of Article VII of this Act. 22 A distillery shipper's licensee must collect, maintain, 23 and submit to the State Commission on a semi-annual basis the 24 total gallons of spirits per resident shipped to residents of 25 this State. A distillery shipper licensed under this 26 subsection must comply with the requirements of Section SB3358 - 64 - LRB103 38772 RPS 68909 b SB3358- 65 -LRB103 38772 RPS 68909 b SB3358 - 65 - LRB103 38772 RPS 68909 b SB3358 - 65 - LRB103 38772 RPS 68909 b 1 6-29.05 of this Act. Pursuant to paragraph (5.1) or (5.3) of 2 subsection (a) of Section 3-12, the State Commission may 3 receive, respond to, and investigate any complaint and impose 4 any of the remedies specified in paragraph (1) of subsection 5 (a) of Section 3-12. 6 Except as provided in Section 6-16, 6-29, or 6-29.05, 7 nothing in this Act shall deny, limit, remove, or restrict the 8 ability of a holder of a distilling pub license to transfer or 9 ship alcoholic liquor it produces to the purchaser for use or 10 consumption subject to any applicable local law or ordinance. 11 Except as provided in Section 6-16, 6-29, or 6-29.05, nothing 12 in this Act shall limit, remove, or restrict the ability of a 13 holder of a distilling pub license to deliver alcoholic liquor 14 to the purchaser for use or consumption. The delivery shall be 15 made only within 12 hours after the alcoholic liquor leaves 16 the licensed premises of the distilling pub for delivery. 17 For the purposes of this subsection, "delivery" means the 18 movement of alcoholic liquor purchased from a licensed 19 distilling pub to the consumer through the following methods: 20 (1) delivery within the licensed distilling pub 21 parking lot, including curbside, for pickup by the 22 consumer; 23 (2) delivery by an owner, officer, director, 24 shareholder, or employee of the licensed distilling pub; 25 or 26 (3) delivery by a third-party contractor, independent SB3358 - 65 - LRB103 38772 RPS 68909 b SB3358- 66 -LRB103 38772 RPS 68909 b SB3358 - 66 - LRB103 38772 RPS 68909 b SB3358 - 66 - LRB103 38772 RPS 68909 b 1 contractor, or agent with whom the licensed distilling pub 2 has contracted to make deliveries of alcoholic liquors. 3 Under paragraphs (1), (2), or (3) of this subsection, 4 "delivery" does not include common carriers. 5 For the purposes of this subsection, "ship" means to move 6 alcoholic liquor from a licensed distilling pub to a consumer 7 via a common carrier. 8 Except for a municipality with a population of more than 9 1,000,000 inhabitants, a home rule unit may not regulate the 10 delivery of alcoholic liquor in a manner inconsistent with 11 this subsection. This paragraph is a limitation under 12 subsection (i) of Section 6 of Article VII of the Illinois 13 Constitution on the concurrent exercise by home rule units of 14 powers and functions exercised by the State. 15 (Source: P.A. 101-16, eff. 6-14-19; 101-31, eff. 6-28-19; 16 101-81, eff. 7-12-19; 101-482, eff. 8-23-19; 101-517, eff. 17 8-23-19; 101-615, eff. 12-20-19; 101-668, eff. 1-1-22; 18 102-442, eff. 8-20-21; 102-1142, eff. 2-17-23.) 19 (235 ILCS 5/5-3) (from Ch. 43, par. 118) 20 Sec. 5-3. License fees. Except as otherwise provided 21 herein, at the time application is made to the State 22 Commission for a license of any class, the applicant shall pay 23 to the State Commission the fee hereinafter provided for the 24 kind of license applied for. 25 The fee for licenses issued by the State Commission shall SB3358 - 66 - LRB103 38772 RPS 68909 b SB3358- 67 -LRB103 38772 RPS 68909 b SB3358 - 67 - LRB103 38772 RPS 68909 b SB3358 - 67 - LRB103 38772 RPS 68909 b 1 be as follows: 2OnlineInitial3renewallicense4 or5 non-online6 renewal 2 Online Initial 3 renewal license 4 or 5 non-online 6 renewal 2 Online Initial 3 renewal license 4 or 5 non-online 6 renewal 7 For a manufacturer's license:8 Class 1. Distiller .................$4,000$5,0009 Class 2. Rectifier .................4,000 5,00010 Class 3. Brewer ....................1,200 1,50011 Class 4. First-class Wine 12 Manufacturer ...................75090013 Class 5. Second-class14 Wine Manufacturer ..............1,500 1,75015 Class 6. First-class wine-maker ....750 90016 Class 7. Second-class wine-maker ...1,500 1,75017 Class 8. Limited Wine 18 Manufacturer....................250 350 19 Class 9. Craft Distiller............ 2,000 2,500 20 Class 10. Class 1 Craft Distiller... 50 75 21 Class 11. Class 2 Craft Distiller... 75 100 22 Class 12. Class 1 Brewer............50 7523 Class 13. Class 2 Brewer............ 75 100 24 Class 14. Class 3 Brewer............ 25 50 25 For a Brew Pub License..............1,2001,50026 For a Distilling Pub License........ 1,200 1,500 7 For a manufacturer's license: 8 Class 1. Distiller ................. $4,000 $5,000 9 Class 2. Rectifier ................. 4,000 5,000 10 Class 3. Brewer .................... 1,200 1,500 11 Class 4. First-class Wine 12 Manufacturer ................... 750 900 13 Class 5. Second-class 14 Wine Manufacturer .............. 1,500 1,750 15 Class 6. First-class wine-maker .... 750 900 16 Class 7. Second-class wine-maker ... 1,500 1,750 17 Class 8. Limited Wine 18 Manufacturer.................... 250 350 19 Class 9. Craft Distiller............ 2,000 2,500 20 Class 10. Class 1 Craft Distiller... 50 75 21 Class 11. Class 2 Craft Distiller... 75 100 22 Class 12. Class 1 Brewer............ 50 75 23 Class 13. Class 2 Brewer............ 75 100 24 Class 14. Class 3 Brewer............ 25 50 25 For a Brew Pub License.............. 1,200 1,500 26 For a Distilling Pub License........ 1,200 1,500 7 For a manufacturer's license: 8 Class 1. Distiller ................. $4,000 $5,000 9 Class 2. Rectifier ................. 4,000 5,000 10 Class 3. Brewer .................... 1,200 1,500 11 Class 4. First-class Wine 12 Manufacturer ................... 750 900 13 Class 5. Second-class 14 Wine Manufacturer .............. 1,500 1,750 15 Class 6. First-class wine-maker .... 750 900 16 Class 7. Second-class wine-maker ... 1,500 1,750 17 Class 8. Limited Wine 18 Manufacturer.................... 250 350 19 Class 9. Craft Distiller............ 2,000 2,500 20 Class 10. Class 1 Craft Distiller... 50 75 21 Class 11. Class 2 Craft Distiller... 75 100 22 Class 12. Class 1 Brewer............ 50 75 23 Class 13. Class 2 Brewer............ 75 100 24 Class 14. Class 3 Brewer............ 25 50 25 For a Brew Pub License.............. 1,200 1,500 26 For a Distilling Pub License........ 1,200 1,500 SB3358 - 67 - LRB103 38772 RPS 68909 b 2 Online Initial 3 renewal license 4 or 5 non-online 6 renewal 7 For a manufacturer's license: 8 Class 1. Distiller ................. $4,000 $5,000 9 Class 2. Rectifier ................. 4,000 5,000 10 Class 3. Brewer .................... 1,200 1,500 11 Class 4. First-class Wine 12 Manufacturer ................... 750 900 13 Class 5. Second-class 14 Wine Manufacturer .............. 1,500 1,750 15 Class 6. First-class wine-maker .... 750 900 16 Class 7. Second-class wine-maker ... 1,500 1,750 17 Class 8. Limited Wine 18 Manufacturer.................... 250 350 19 Class 9. Craft Distiller............ 2,000 2,500 20 Class 10. Class 1 Craft Distiller... 50 75 21 Class 11. Class 2 Craft Distiller... 75 100 22 Class 12. Class 1 Brewer............ 50 75 23 Class 13. Class 2 Brewer............ 75 100 24 Class 14. Class 3 Brewer............ 25 50 25 For a Brew Pub License.............. 1,200 1,500 26 For a Distilling Pub License........ 1,200 1,500 SB3358- 68 -LRB103 38772 RPS 68909 b SB3358 - 68 - LRB103 38772 RPS 68909 b SB3358 - 68 - LRB103 38772 RPS 68909 b 1 For a caterer retailer's license....350 5002 For a foreign importer's license ...25 253 For an importing distributor's 4 license.........................25255 For a distributor's license 6 (11,250,000 gallons 7 or over)........................1,4502,2008 For a distributor's license 9 (over 4,500,000 gallons, but10 under 11,250,000 gallons)....... 9501,45011 For a distributor's license12 (4,500,000 gallons or under)....30045013 For a non-resident dealer's license14 (500,000 gallons or over) 15 or with self-distribution 16 privileges .....................1,200 1,50017 For a non-resident dealer's license18 (under 500,000 gallons) ........250 35019 For a wine-maker's premises 20 license ........................25050021 For a winery shipper's license22 (under 250,000 gallons).........200 35023 For a winery shipper's license 24 (250,000 or over, but 25 under 500,000 gallons)..........7501,00026 For a winery shipper's license 1 For a caterer retailer's license.... 350 500 2 For a foreign importer's license ... 25 25 3 For an importing distributor's 4 license......................... 25 25 5 For a distributor's license 6 (11,250,000 gallons 7 or over)........................ 1,450 2,200 8 For a distributor's license 9 (over 4,500,000 gallons, but 10 under 11,250,000 gallons)....... 950 1,450 11 For a distributor's license 12 (4,500,000 gallons or under).... 300 450 13 For a non-resident dealer's license 14 (500,000 gallons or over) 15 or with self-distribution 16 privileges ..................... 1,200 1,500 17 For a non-resident dealer's license 18 (under 500,000 gallons) ........ 250 350 19 For a wine-maker's premises 20 license ........................ 250 500 21 For a winery shipper's license 22 (under 250,000 gallons)......... 200 350 23 For a winery shipper's license 24 (250,000 or over, but 25 under 500,000 gallons).......... 750 1,000 26 For a winery shipper's license 1 For a caterer retailer's license.... 350 500 2 For a foreign importer's license ... 25 25 3 For an importing distributor's 4 license......................... 25 25 5 For a distributor's license 6 (11,250,000 gallons 7 or over)........................ 1,450 2,200 8 For a distributor's license 9 (over 4,500,000 gallons, but 10 under 11,250,000 gallons)....... 950 1,450 11 For a distributor's license 12 (4,500,000 gallons or under).... 300 450 13 For a non-resident dealer's license 14 (500,000 gallons or over) 15 or with self-distribution 16 privileges ..................... 1,200 1,500 17 For a non-resident dealer's license 18 (under 500,000 gallons) ........ 250 350 19 For a wine-maker's premises 20 license ........................ 250 500 21 For a winery shipper's license 22 (under 250,000 gallons)......... 200 350 23 For a winery shipper's license 24 (250,000 or over, but 25 under 500,000 gallons).......... 750 1,000 26 For a winery shipper's license SB3358 - 68 - LRB103 38772 RPS 68909 b 1 For a caterer retailer's license.... 350 500 2 For a foreign importer's license ... 25 25 3 For an importing distributor's 4 license......................... 25 25 5 For a distributor's license 6 (11,250,000 gallons 7 or over)........................ 1,450 2,200 8 For a distributor's license 9 (over 4,500,000 gallons, but 10 under 11,250,000 gallons)....... 950 1,450 11 For a distributor's license 12 (4,500,000 gallons or under).... 300 450 13 For a non-resident dealer's license 14 (500,000 gallons or over) 15 or with self-distribution 16 privileges ..................... 1,200 1,500 17 For a non-resident dealer's license 18 (under 500,000 gallons) ........ 250 350 19 For a wine-maker's premises 20 license ........................ 250 500 21 For a winery shipper's license 22 (under 250,000 gallons)......... 200 350 23 For a winery shipper's license 24 (250,000 or over, but 25 under 500,000 gallons).......... 750 1,000 26 For a winery shipper's license SB3358- 69 -LRB103 38772 RPS 68909 b SB3358 - 69 - LRB103 38772 RPS 68909 b SB3358 - 69 - LRB103 38772 RPS 68909 b 1 (500,000 gallons or over).......1,200 1,5002 For a distillery shipper's license 3 (under 100,000 gallons).2003504 For a distillery shipper's license5 (100,000 gallons or over).1,2001,5006 For a wine-maker's premises 7 license, second location .......500 1,0008 For a wine-maker's premises 9 license, third location ........5001,00010 For a retailer's license ...........600 75011 For a special event retailer's12 license, (not-for-profit) ......25 2513 For a beer showcase permit, 14 one day only ................... 100 150 15 2 days or more ................. 150 250 16 For a special use permit license,17 one day only ...................100 15018 2 days or more .................150 25019 For a railroad license .............100 15020 For a boat license .................500 1,00021 For an airplane license, times the22 licensee's maximum number of 23 aircraft in flight, serving 24 liquor over the State at any 25 given time, which either 26 originate, terminate, or make 1 (500,000 gallons or over)....... 1,200 1,500 2 For a distillery shipper's license 3 (under 100,000 gallons). 200 350 4 For a distillery shipper's license 5 (100,000 gallons or over). 1,200 1,500 6 For a wine-maker's premises 7 license, second location ....... 500 1,000 8 For a wine-maker's premises 9 license, third location ........ 500 1,000 10 For a retailer's license ........... 600 750 11 For a special event retailer's 12 license, (not-for-profit) ...... 25 25 13 For a beer showcase permit, 14 one day only ................... 100 150 15 2 days or more ................. 150 250 16 For a special use permit license, 17 one day only ................... 100 150 18 2 days or more ................. 150 250 19 For a railroad license ............. 100 150 20 For a boat license ................. 500 1,000 21 For an airplane license, times the 22 licensee's maximum number of 23 aircraft in flight, serving 24 liquor over the State at any 25 given time, which either 26 originate, terminate, or make 1 (500,000 gallons or over)....... 1,200 1,500 2 For a distillery shipper's license 3 (under 100,000 gallons). 200 350 4 For a distillery shipper's license 5 (100,000 gallons or over). 1,200 1,500 6 For a wine-maker's premises 7 license, second location ....... 500 1,000 8 For a wine-maker's premises 9 license, third location ........ 500 1,000 10 For a retailer's license ........... 600 750 11 For a special event retailer's 12 license, (not-for-profit) ...... 25 25 13 For a beer showcase permit, 14 one day only ................... 100 150 15 2 days or more ................. 150 250 16 For a special use permit license, 17 one day only ................... 100 150 18 2 days or more ................. 150 250 19 For a railroad license ............. 100 150 20 For a boat license ................. 500 1,000 21 For an airplane license, times the 22 licensee's maximum number of 23 aircraft in flight, serving 24 liquor over the State at any 25 given time, which either 26 originate, terminate, or make SB3358 - 69 - LRB103 38772 RPS 68909 b 1 (500,000 gallons or over)....... 1,200 1,500 2 For a distillery shipper's license 3 (under 100,000 gallons). 200 350 4 For a distillery shipper's license 5 (100,000 gallons or over). 1,200 1,500 6 For a wine-maker's premises 7 license, second location ....... 500 1,000 8 For a wine-maker's premises 9 license, third location ........ 500 1,000 10 For a retailer's license ........... 600 750 11 For a special event retailer's 12 license, (not-for-profit) ...... 25 25 13 For a beer showcase permit, 14 one day only ................... 100 150 15 2 days or more ................. 150 250 16 For a special use permit license, 17 one day only ................... 100 150 18 2 days or more ................. 150 250 19 For a railroad license ............. 100 150 20 For a boat license ................. 500 1,000 21 For an airplane license, times the 22 licensee's maximum number of 23 aircraft in flight, serving 24 liquor over the State at any 25 given time, which either 26 originate, terminate, or make SB3358- 70 -LRB103 38772 RPS 68909 b SB3358 - 70 - LRB103 38772 RPS 68909 b SB3358 - 70 - LRB103 38772 RPS 68909 b 1 an intermediate stop in 2 the State.......................1001503 For a non-beverage user's license:4 Class 1 ........................24245 Class 2 ........................60606 Class 3 ........................1201207 Class 4 ........................2402408 Class 5 ........................6006009 For a broker's license .............750 1,00010 For an auction liquor license ......100 15011 For a homebrewer special 12 event permit....................252513 For a craft distiller 14 tasting permit..................25 2515 For a BASSET trainer license........ 300 35016 For a tasting representative 17 license.........................20030018 For a brewer warehouse permit....... 252519 For a craft distiller 20 warehouse permit................25 25 1 an intermediate stop in 2 the State....................... 100 150 3 For a non-beverage user's license: 4 Class 1 ........................ 24 24 5 Class 2 ........................ 60 60 6 Class 3 ........................ 120 120 7 Class 4 ........................ 240 240 8 Class 5 ........................ 600 600 9 For a broker's license ............. 750 1,000 10 For an auction liquor license ...... 100 150 11 For a homebrewer special 12 event permit.................... 25 25 13 For a craft distiller 14 tasting permit.................. 25 25 15 For a BASSET trainer license........ 300 350 16 For a tasting representative 17 license......................... 200 300 18 For a brewer warehouse permit....... 25 25 19 For a craft distiller 20 warehouse permit................ 25 25 1 an intermediate stop in 2 the State....................... 100 150 3 For a non-beverage user's license: 4 Class 1 ........................ 24 24 5 Class 2 ........................ 60 60 6 Class 3 ........................ 120 120 7 Class 4 ........................ 240 240 8 Class 5 ........................ 600 600 9 For a broker's license ............. 750 1,000 10 For an auction liquor license ...... 100 150 11 For a homebrewer special 12 event permit.................... 25 25 13 For a craft distiller 14 tasting permit.................. 25 25 15 For a BASSET trainer license........ 300 350 16 For a tasting representative 17 license......................... 200 300 18 For a brewer warehouse permit....... 25 25 19 For a craft distiller 20 warehouse permit................ 25 25 21 Fees collected under this Section shall be paid into the 22 Dram Shop Fund. The State Commission shall waive license 23 renewal fees for those retailers' licenses that are designated 24 as "1A" by the State Commission and expire on or after July 1, 25 2022, and on or before June 30, 2023. One-half of the funds 26 received for a retailer's license shall be paid into the Dram SB3358 - 70 - LRB103 38772 RPS 68909 b 1 an intermediate stop in 2 the State....................... 100 150 3 For a non-beverage user's license: 4 Class 1 ........................ 24 24 5 Class 2 ........................ 60 60 6 Class 3 ........................ 120 120 7 Class 4 ........................ 240 240 8 Class 5 ........................ 600 600 9 For a broker's license ............. 750 1,000 10 For an auction liquor license ...... 100 150 11 For a homebrewer special 12 event permit.................... 25 25 13 For a craft distiller 14 tasting permit.................. 25 25 15 For a BASSET trainer license........ 300 350 16 For a tasting representative 17 license......................... 200 300 18 For a brewer warehouse permit....... 25 25 19 For a craft distiller 20 warehouse permit................ 25 25 SB3358- 71 -LRB103 38772 RPS 68909 b SB3358 - 71 - LRB103 38772 RPS 68909 b SB3358 - 71 - LRB103 38772 RPS 68909 b 1 Shop Fund and one-half of the funds received for a retailer's 2 license shall be paid into the General Revenue Fund. 3 No fee shall be paid for licenses issued by the State 4 Commission to the following non-beverage users: 5 (a) Hospitals, sanitariums, or clinics when their use 6 of alcoholic liquor is exclusively medicinal, mechanical, 7 or scientific. 8 (b) Universities, colleges of learning, or schools 9 when their use of alcoholic liquor is exclusively 10 medicinal, mechanical, or scientific. 11 (c) Laboratories when their use is exclusively for the 12 purpose of scientific research. 13 (Source: P.A. 102-442, eff. 8-20-21; 102-558, eff. 8-20-21; 14 102-699, eff. 4-19-22; 102-1142, eff. 2-17-23; 103-154, eff. 15 6-30-23; revised 9-5-23.) 16 (235 ILCS 5/6-29.05 new) 17 Sec. 6-29.05. Distillery shipper's license. 18 (a) The General Assembly declares that the following is 19 the intent of this Section: 20 (1) To authorize direct shipment of spirits by an 21 out-of-state distiller on the same basis permitted an 22 in-state distiller, an in-state craft distiller, an 23 in-state class 1 craft distiller, and an in-state class 2 24 craft distiller pursuant to the authority of the State 25 under the provisions of Section 2 of the Twenty-First SB3358 - 71 - LRB103 38772 RPS 68909 b SB3358- 72 -LRB103 38772 RPS 68909 b SB3358 - 72 - LRB103 38772 RPS 68909 b SB3358 - 72 - LRB103 38772 RPS 68909 b 1 Amendment to the United States Constitution and in 2 conformance with the United States Supreme Court decision 3 decided on May 16, 2005 in Granholm v. Heald. 4 (2) To reaffirm that the General Assembly's findings 5 and declarations that selling alcoholic liquor through 6 various direct marketing means, such as catalogs, 7 newspapers, mailings, and the Internet, directly to 8 consumers of this State poses a serious threat to the 9 State's efforts to further temperance and prevent youth 10 from accessing alcoholic liquor and the expansion of youth 11 access to additional types of alcoholic liquors. 12 (3) To maintain the State's broad powers granted by 13 Section 2 of the Twenty-First Amendment to the United 14 States Constitution to control the importation or sale of 15 alcoholic liquor and its right to structure its alcoholic 16 liquor distribution system. 17 (4) To ensure that the General Assembly, by 18 authorizing limited direct shipment of spirits to meet the 19 directives of the United States Supreme Court, does not 20 intend to impair or modify the State's distribution of 21 spirits through distributors or importing distributors, 22 but only to permit limited shipment of spirits for 23 personal use. 24 (5) To provide that if a court of competent 25 jurisdiction declares or finds that this Section, which is 26 enacted to conform Illinois law to the United States SB3358 - 72 - LRB103 38772 RPS 68909 b SB3358- 73 -LRB103 38772 RPS 68909 b SB3358 - 73 - LRB103 38772 RPS 68909 b SB3358 - 73 - LRB103 38772 RPS 68909 b 1 Supreme Court decision, is invalid or unconstitutional, 2 the Illinois General Assembly at its earliest general 3 session shall conduct hearings and study methods to 4 conform to any directive or order of the court consistent 5 with the temperance and revenue collection purposes of 6 this Act. 7 (b) Notwithstanding any other provision of law, a 8 distillery shipper's licensee may ship, for personal use and 9 not for resale, not more than 12 cases of spirits per year to 10 any resident of this State who is 21 years of age or older. 11 (c) Notwithstanding any other provision of law, sale and 12 shipment by a distillery shipper's licensee pursuant to this 13 Section shall be deemed to constitute a sale in this State. 14 (d) The shipping container of any spirit shipped under 15 this Section shall be clearly labeled with the following 16 words: "CONTAINS ALCOHOL. SIGNATURE OF A PERSON 21 YEARS OF 17 AGE OR OLDER REQUIRED FOR DELIVERY. PROOF OF AGE AND IDENTITY 18 MUST BE SHOWN BEFORE DELIVERY.". This warning must be 19 prominently displayed on the packaging. A licensee shall 20 require the transporter or common carrier that delivers the 21 spirits to obtain the signature of a person 21 years of age or 22 older at the delivery address at the time of delivery. At the 23 expense of the licensee, the licensee shall receive a delivery 24 confirmation from the express company, common carrier, or 25 contract carrier indicating the location of the delivery, time 26 of delivery, and the name and signature of the individual 21 SB3358 - 73 - LRB103 38772 RPS 68909 b SB3358- 74 -LRB103 38772 RPS 68909 b SB3358 - 74 - LRB103 38772 RPS 68909 b SB3358 - 74 - LRB103 38772 RPS 68909 b SB3358 - 74 - LRB103 38772 RPS 68909 b