Illinois 2025-2026 Regular Session

Illinois Senate Bill SB1622 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1622 Introduced 2/4/2025, by Sen. Cristina Castro SYNOPSIS AS INTRODUCED: 235 ILCS 5/1-3.17.1 from Ch. 43, par. 95.17.1235 ILCS 5/3-12235 ILCS 5/5-1 from Ch. 43, par. 115235 ILCS 5/6-40 new Amends the Liquor Control Act of 1934. Increases the self-distribution limit for class 3 brewers that meet certain requirements to not more than 77,500 (instead of 6,200) gallons of beer from each in-state or out-of-state class 3 brewery premises, which shall not exceed 232,500 (instead of 18,600) gallons annually in the aggregate, that is manufactured at a wholly owned class 3 brewer's in-state or out-of-state licensed premises to retail licensees and class 3 brewers and to certain brewers, class 1 brewers, and class 2 brewers. Provides that a special event retailer's license (not-for-profit) shall allow the licensee to sell and offer for sale, at retail, alcoholic liquors for consumption on or off the premises specified in the license (instead of for use or consumption), but not for resale in any form and only at the location and on the specific dates designated for the special event in the license. Provides that, subject to certain conditions, a special use permit license shall allow the sale or offering for sale of certain transferred or delivered alcoholic liquor at retail for consumption on or off the premises specified in the license. Provides that a retail licensee or manufacturer with retail privileges may operate a loyalty program, reward program, or mug club for alcoholic liquors the retailer or manufacturer with retail privileges is licensed to sell so long as the price of the product is not below the retail licensee's or manufacturer with retail privileges' costs. Provides that a retail licensee or licensed manufacturer with retail privileges may offer incentives to consumers for participation in a rewards program, loyalty program, or mug club. Set forth further provisions concerning rewards programs, loyalty programs, and mug clubs. Makes conforming and other changes. LRB104 11847 RPS 21937 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1622 Introduced 2/4/2025, by Sen. Cristina Castro SYNOPSIS AS INTRODUCED: 235 ILCS 5/1-3.17.1 from Ch. 43, par. 95.17.1235 ILCS 5/3-12235 ILCS 5/5-1 from Ch. 43, par. 115235 ILCS 5/6-40 new 235 ILCS 5/1-3.17.1 from Ch. 43, par. 95.17.1 235 ILCS 5/3-12 235 ILCS 5/5-1 from Ch. 43, par. 115 235 ILCS 5/6-40 new Amends the Liquor Control Act of 1934. Increases the self-distribution limit for class 3 brewers that meet certain requirements to not more than 77,500 (instead of 6,200) gallons of beer from each in-state or out-of-state class 3 brewery premises, which shall not exceed 232,500 (instead of 18,600) gallons annually in the aggregate, that is manufactured at a wholly owned class 3 brewer's in-state or out-of-state licensed premises to retail licensees and class 3 brewers and to certain brewers, class 1 brewers, and class 2 brewers. Provides that a special event retailer's license (not-for-profit) shall allow the licensee to sell and offer for sale, at retail, alcoholic liquors for consumption on or off the premises specified in the license (instead of for use or consumption), but not for resale in any form and only at the location and on the specific dates designated for the special event in the license. Provides that, subject to certain conditions, a special use permit license shall allow the sale or offering for sale of certain transferred or delivered alcoholic liquor at retail for consumption on or off the premises specified in the license. Provides that a retail licensee or manufacturer with retail privileges may operate a loyalty program, reward program, or mug club for alcoholic liquors the retailer or manufacturer with retail privileges is licensed to sell so long as the price of the product is not below the retail licensee's or manufacturer with retail privileges' costs. Provides that a retail licensee or licensed manufacturer with retail privileges may offer incentives to consumers for participation in a rewards program, loyalty program, or mug club. Set forth further provisions concerning rewards programs, loyalty programs, and mug clubs. Makes conforming and other changes. LRB104 11847 RPS 21937 b LRB104 11847 RPS 21937 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1622 Introduced 2/4/2025, by Sen. Cristina Castro SYNOPSIS AS INTRODUCED:
3	3	235 ILCS 5/1-3.17.1 from Ch. 43, par. 95.17.1235 ILCS 5/3-12235 ILCS 5/5-1 from Ch. 43, par. 115235 ILCS 5/6-40 new 235 ILCS 5/1-3.17.1 from Ch. 43, par. 95.17.1 235 ILCS 5/3-12 235 ILCS 5/5-1 from Ch. 43, par. 115 235 ILCS 5/6-40 new
4	4	235 ILCS 5/1-3.17.1 from Ch. 43, par. 95.17.1
5	5	235 ILCS 5/3-12
6	6	235 ILCS 5/5-1 from Ch. 43, par. 115
7	7	235 ILCS 5/6-40 new
8	8	Amends the Liquor Control Act of 1934. Increases the self-distribution limit for class 3 brewers that meet certain requirements to not more than 77,500 (instead of 6,200) gallons of beer from each in-state or out-of-state class 3 brewery premises, which shall not exceed 232,500 (instead of 18,600) gallons annually in the aggregate, that is manufactured at a wholly owned class 3 brewer's in-state or out-of-state licensed premises to retail licensees and class 3 brewers and to certain brewers, class 1 brewers, and class 2 brewers. Provides that a special event retailer's license (not-for-profit) shall allow the licensee to sell and offer for sale, at retail, alcoholic liquors for consumption on or off the premises specified in the license (instead of for use or consumption), but not for resale in any form and only at the location and on the specific dates designated for the special event in the license. Provides that, subject to certain conditions, a special use permit license shall allow the sale or offering for sale of certain transferred or delivered alcoholic liquor at retail for consumption on or off the premises specified in the license. Provides that a retail licensee or manufacturer with retail privileges may operate a loyalty program, reward program, or mug club for alcoholic liquors the retailer or manufacturer with retail privileges is licensed to sell so long as the price of the product is not below the retail licensee's or manufacturer with retail privileges' costs. Provides that a retail licensee or licensed manufacturer with retail privileges may offer incentives to consumers for participation in a rewards program, loyalty program, or mug club. Set forth further provisions concerning rewards programs, loyalty programs, and mug clubs. Makes conforming and other changes.
9	9	LRB104 11847 RPS 21937 b LRB104 11847 RPS 21937 b
10	10	LRB104 11847 RPS 21937 b
11	11	A BILL FOR
12	12	SB1622LRB104 11847 RPS 21937 b SB1622 LRB104 11847 RPS 21937 b
13	13	SB1622 LRB104 11847 RPS 21937 b
14	14	1 AN ACT concerning liquor.
15	15	2 Be it enacted by the People of the State of Illinois,
16	16	3 represented in the General Assembly:
17	17	4 Section 5. The Liquor Control Act of 1934 is amended by
18	18	5 changing Sections 1-3.17.1, 3-12, and 5-1 and by adding
19	19	6 Section 6-40 as follows:
20	20	7 (235 ILCS 5/1-3.17.1) (from Ch. 43, par. 95.17.1)
21	21	8 Sec. 1-3.17.1. "Special event retailer" means an
22	22	9 educational, fraternal, political, civic, religious, or
23	23	10 non-profit organization which sells or offers for sale beer,
24	24	11 spirits, or wine, or any combination thereof, only for
25	25	12 consumption on or off the premises specified in the license
26	26	13 and those sales are made at the location and on the dates
27	27	14 designated by a special event retail license.
28	28	15 (Source: P.A. 100-17, eff. 6-30-17.)
29	29	16 (235 ILCS 5/3-12)
30	30	17 Sec. 3-12. Powers and duties of State Commission.
31	31	18 (a) The State Commission shall have the following powers,
32	32	19 functions, and duties:
33	33	20 (1) To receive applications and to issue licenses to
34	34	21 manufacturers, foreign importers, importing distributors,
35	35	22 distributors, non-resident dealers, on premise consumption
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39	39	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1622 Introduced 2/4/2025, by Sen. Cristina Castro SYNOPSIS AS INTRODUCED:
40	40	235 ILCS 5/1-3.17.1 from Ch. 43, par. 95.17.1235 ILCS 5/3-12235 ILCS 5/5-1 from Ch. 43, par. 115235 ILCS 5/6-40 new 235 ILCS 5/1-3.17.1 from Ch. 43, par. 95.17.1 235 ILCS 5/3-12 235 ILCS 5/5-1 from Ch. 43, par. 115 235 ILCS 5/6-40 new
41	41	235 ILCS 5/1-3.17.1 from Ch. 43, par. 95.17.1
42	42	235 ILCS 5/3-12
43	43	235 ILCS 5/5-1 from Ch. 43, par. 115
44	44	235 ILCS 5/6-40 new
45	45	Amends the Liquor Control Act of 1934. Increases the self-distribution limit for class 3 brewers that meet certain requirements to not more than 77,500 (instead of 6,200) gallons of beer from each in-state or out-of-state class 3 brewery premises, which shall not exceed 232,500 (instead of 18,600) gallons annually in the aggregate, that is manufactured at a wholly owned class 3 brewer's in-state or out-of-state licensed premises to retail licensees and class 3 brewers and to certain brewers, class 1 brewers, and class 2 brewers. Provides that a special event retailer's license (not-for-profit) shall allow the licensee to sell and offer for sale, at retail, alcoholic liquors for consumption on or off the premises specified in the license (instead of for use or consumption), but not for resale in any form and only at the location and on the specific dates designated for the special event in the license. Provides that, subject to certain conditions, a special use permit license shall allow the sale or offering for sale of certain transferred or delivered alcoholic liquor at retail for consumption on or off the premises specified in the license. Provides that a retail licensee or manufacturer with retail privileges may operate a loyalty program, reward program, or mug club for alcoholic liquors the retailer or manufacturer with retail privileges is licensed to sell so long as the price of the product is not below the retail licensee's or manufacturer with retail privileges' costs. Provides that a retail licensee or licensed manufacturer with retail privileges may offer incentives to consumers for participation in a rewards program, loyalty program, or mug club. Set forth further provisions concerning rewards programs, loyalty programs, and mug clubs. Makes conforming and other changes.
46	46	LRB104 11847 RPS 21937 b LRB104 11847 RPS 21937 b
47	47	LRB104 11847 RPS 21937 b
48	48	A BILL FOR
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54	54	235 ILCS 5/1-3.17.1 from Ch. 43, par. 95.17.1
55	55	235 ILCS 5/3-12
56	56	235 ILCS 5/5-1 from Ch. 43, par. 115
57	57	235 ILCS 5/6-40 new
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76	76	1 retailers, off premise sale retailers, special event
77	77	2 retailer licensees, special use permit licenses, auction
78	78	3 liquor licenses, brew pubs, caterer retailers,
79	79	4 non-beverage users, railroads, including owners and
80	80	5 lessees of sleeping, dining and cafe cars, airplanes,
81	81	6 boats, brokers, and wine maker's premises licensees in
82	82	7 accordance with the provisions of this Act, and to suspend
83	83	8 or revoke such licenses upon the State Commission's
84	84	9 determination, upon notice after hearing, that a licensee
85	85	10 has violated any provision of this Act or any rule or
86	86	11 regulation issued pursuant thereto and in effect for 30
87	87	12 days prior to such violation. Except in the case of an
88	88	13 action taken pursuant to a violation of Section 6-3, 6-5,
89	89	14 or 6-9, any action by the State Commission to suspend or
90	90	15 revoke a licensee's license may be limited to the license
91	91	16 for the specific premises where the violation occurred. An
92	92	17 action for a violation of this Act shall be commenced by
93	93	18 the State Commission within 2 years after the date the
94	94	19 State Commission becomes aware of the violation.
95	95	20 In lieu of suspending or revoking a license, the
96	96	21 commission may impose a fine, upon the State Commission's
97	97	22 determination and notice after hearing, that a licensee
98	98	23 has violated any provision of this Act or any rule or
99	99	24 regulation issued pursuant thereto and in effect for 30
100	100	25 days prior to such violation.
101	101	26 For the purpose of this paragraph (1), when
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112	112	1 determining multiple violations for the sale of alcohol to
113	113	2 a person under the age of 21, a second or subsequent
114	114	3 violation for the sale of alcohol to a person under the age
115	115	4 of 21 shall only be considered if it was committed within 5
116	116	5 years after the date when a prior violation for the sale of
117	117	6 alcohol to a person under the age of 21 was committed.
118	118	7 The fine imposed under this paragraph may not exceed
119	119	8 $500 for each violation. Each day that the activity, which
120	120	9 gave rise to the original fine, continues is a separate
121	121	10 violation. The maximum fine that may be levied against any
122	122	11 licensee, for the period of the license, shall not exceed
123	123	12 $20,000. The maximum penalty that may be imposed on a
124	124	13 licensee for selling a bottle of alcoholic liquor with a
125	125	14 foreign object in it or serving from a bottle of alcoholic
126	126	15 liquor with a foreign object in it shall be the
127	127	16 destruction of that bottle of alcoholic liquor for the
128	128	17 first 10 bottles so sold or served from by the licensee.
129	129	18 For the eleventh bottle of alcoholic liquor and for each
130	130	19 third bottle thereafter sold or served from by the
131	131	20 licensee with a foreign object in it, the maximum penalty
132	132	21 that may be imposed on the licensee is the destruction of
133	133	22 the bottle of alcoholic liquor and a fine of up to $50.
134	134	23 Any notice issued by the State Commission to a
135	135	24 licensee for a violation of this Act or any notice with
136	136	25 respect to settlement or offer in compromise shall include
137	137	26 the field report, photographs, and any other supporting
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148	148	1 documentation necessary to reasonably inform the licensee
149	149	2 of the nature and extent of the violation or the conduct
150	150	3 alleged to have occurred. The failure to include such
151	151	4 required documentation shall result in the dismissal of
152	152	5 the action.
153	153	6 (2) To adopt such rules and regulations consistent
154	154	7 with the provisions of this Act which shall be necessary
155	155	8 to carry on its functions and duties to the end that the
156	156	9 health, safety and welfare of the People of the State of
157	157	10 Illinois shall be protected and temperance in the
158	158	11 consumption of alcoholic liquors shall be fostered and
159	159	12 promoted and to distribute copies of such rules and
160	160	13 regulations to all licensees affected thereby.
161	161	14 (3) To call upon other administrative departments of
162	162	15 the State, county and municipal governments, county and
163	163	16 city police departments and upon prosecuting officers for
164	164	17 such information and assistance as it deems necessary in
165	165	18 the performance of its duties.
166	166	19 (4) To recommend to local commissioners rules and
167	167	20 regulations, not inconsistent with the law, for the
168	168	21 distribution and sale of alcoholic liquors throughout the
169	169	22 State.
170	170	23 (5) To inspect, or cause to be inspected, any premises
171	171	24 in this State where alcoholic liquors are manufactured,
172	172	25 distributed, warehoused, or sold. Nothing in this Act
173	173	26 authorizes an agent of the State Commission to inspect
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184	184	1 private areas within the premises without reasonable
185	185	2 suspicion or a warrant during an inspection. "Private
186	186	3 areas" include, but are not limited to, safes, personal
187	187	4 property, and closed desks.
188	188	5 (5.1) Upon receipt of a complaint or upon having
189	189	6 knowledge that any person is engaged in business as a
190	190	7 manufacturer, importing distributor, distributor, or
191	191	8 retailer without a license or valid license, to conduct an
192	192	9 investigation. If, after conducting an investigation, the
193	193	10 State Commission is satisfied that the alleged conduct
194	194	11 occurred or is occurring, it may issue a cease and desist
195	195	12 notice as provided in this Act, impose civil penalties as
196	196	13 provided in this Act, notify the local liquor authority,
197	197	14 or file a complaint with the State's Attorney's Office of
198	198	15 the county where the incident occurred or the Attorney
199	199	16 General.
200	200	17 (5.2) Upon receipt of a complaint or upon having
201	201	18 knowledge that any person is shipping alcoholic liquor
202	202	19 into this State from a point outside of this State if the
203	203	20 shipment is in violation of this Act, to conduct an
204	204	21 investigation. If, after conducting an investigation, the
205	205	22 State Commission is satisfied that the alleged conduct
206	206	23 occurred or is occurring, it may issue a cease and desist
207	207	24 notice as provided in this Act, impose civil penalties as
208	208	25 provided in this Act, notify the foreign jurisdiction, or
209	209	26 file a complaint with the State's Attorney's Office of the
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220	220	1 county where the incident occurred or the Attorney
221	221	2 General.
222	222	3 (5.3) To receive complaints from licensees, local
223	223	4 officials, law enforcement agencies, organizations, and
224	224	5 persons stating that any licensee has been or is violating
225	225	6 any provision of this Act or the rules and regulations
226	226	7 issued pursuant to this Act. Such complaints shall be in
227	227	8 writing, signed and sworn to by the person making the
228	228	9 complaint, and shall state with specificity the facts in
229	229	10 relation to the alleged violation. If the State Commission
230	230	11 has reasonable grounds to believe that the complaint
231	231	12 substantially alleges a violation of this Act or rules and
232	232	13 regulations adopted pursuant to this Act, it shall conduct
233	233	14 an investigation. If, after conducting an investigation,
234	234	15 the State Commission is satisfied that the alleged
235	235	16 violation did occur, it shall proceed with disciplinary
236	236	17 action against the licensee as provided in this Act.
237	237	18 (5.4) To make arrests and issue notices of civil
238	238	19 violations where necessary for the enforcement of this
239	239	20 Act.
240	240	21 (5.5) To investigate any and all unlicensed activity.
241	241	22 (5.6) To impose civil penalties or fines to any person
242	242	23 who, without holding a valid license, engages in conduct
243	243	24 that requires a license pursuant to this Act, in an amount
244	244	25 not to exceed $20,000 for each offense as determined by
245	245	26 the State Commission. A civil penalty shall be assessed by
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256	256	1 the State Commission after a hearing is held in accordance
257	257	2 with the provisions set forth in this Act regarding the
258	258	3 provision of a hearing for the revocation or suspension of
259	259	4 a license.
260	260	5 (6) To hear and determine appeals from orders of a
261	261	6 local commission in accordance with the provisions of this
262	262	7 Act, as hereinafter set forth. Hearings under this
263	263	8 subsection shall be held in Springfield or Chicago, at
264	264	9 whichever location is the more convenient for the majority
265	265	10 of persons who are parties to the hearing.
266	266	11 (7) The State Commission shall establish uniform
267	267	12 systems of accounts to be kept by all retail licensees
268	268	13 having more than 4 employees, and for this purpose the
269	269	14 State Commission may classify all retail licensees having
270	270	15 more than 4 employees and establish a uniform system of
271	271	16 accounts for each class and prescribe the manner in which
272	272	17 such accounts shall be kept. The State Commission may also
273	273	18 prescribe the forms of accounts to be kept by all retail
274	274	19 licensees having more than 4 employees, including, but not
275	275	20 limited to, accounts of earnings and expenses and any
276	276	21 distribution, payment, or other distribution of earnings
277	277	22 or assets, and any other forms, records, and memoranda
278	278	23 which in the judgment of the commission may be necessary
279	279	24 or appropriate to carry out any of the provisions of this
280	280	25 Act, including, but not limited to, such forms, records,
281	281	26 and memoranda as will readily and accurately disclose at
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292	292	1 all times the beneficial ownership of such retail licensed
293	293	2 business. The accounts, forms, records, and memoranda
294	294	3 shall be available at all reasonable times for inspection
295	295	4 by authorized representatives of the State Commission or
296	296	5 by any local liquor control commissioner or his or her
297	297	6 authorized representative. The commission may, from time
298	298	7 to time, alter, amend, or repeal, in whole or in part, any
299	299	8 uniform system of accounts, or the form and manner of
300	300	9 keeping accounts.
301	301	10 (8) In the conduct of any hearing authorized to be
302	302	11 held by the State Commission, to appoint, at the
303	303	12 commission's discretion, hearing officers to conduct
304	304	13 hearings involving complex issues or issues that will
305	305	14 require a protracted period of time to resolve, to
306	306	15 examine, or cause to be examined, under oath, any
307	307	16 licensee, and to examine or cause to be examined the books
308	308	17 and records of such licensee; to hear testimony and take
309	309	18 proof material for its information in the discharge of its
310	310	19 duties hereunder; to administer or cause to be
311	311	20 administered oaths; for any such purpose to issue subpoena
312	312	21 or subpoenas to require the attendance of witnesses and
313	313	22 the production of books, which shall be effective in any
314	314	23 part of this State, and to adopt rules to implement its
315	315	24 powers under this paragraph (8).
316	316	25 Any circuit court may, by order duly entered, require
317	317	26 the attendance of witnesses and the production of relevant
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328	328	1 books subpoenaed by the State Commission and the court may
329	329	2 compel obedience to its order by proceedings for contempt.
330	330	3 (9) To investigate the administration of laws in
331	331	4 relation to alcoholic liquors in this and other states and
332	332	5 any foreign countries, and to recommend from time to time
333	333	6 to the Governor and through him or her to the legislature
334	334	7 of this State, such amendments to this Act, if any, as it
335	335	8 may think desirable and as will serve to further the
336	336	9 general broad purposes contained in Section 1-2 hereof.
337	337	10 (10) To adopt such rules and regulations consistent
338	338	11 with the provisions of this Act which shall be necessary
339	339	12 for the control, sale, or disposition of alcoholic liquor
340	340	13 damaged as a result of an accident, wreck, flood, fire, or
341	341	14 other similar occurrence.
342	342	15 (11) To develop industry educational programs related
343	343	16 to responsible serving and selling, particularly in the
344	344	17 areas of overserving consumers and illegal underage
345	345	18 purchasing and consumption of alcoholic beverages.
346	346	19 (11.1) To license persons providing education and
347	347	20 training to alcohol beverage sellers and servers for
348	348	21 mandatory and non-mandatory training under the Beverage
349	349	22 Alcohol Sellers and Servers Education and Training
350	350	23 (BASSET) programs and to develop and administer a public
351	351	24 awareness program in Illinois to reduce or eliminate the
352	352	25 illegal purchase and consumption of alcoholic beverage
353	353	26 products by persons under the age of 21. Application for a
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364	364	1 license shall be made on forms provided by the State
365	365	2 Commission.
366	366	3 (12) To develop and maintain a repository of license
367	367	4 and regulatory information.
368	368	5 (13) (Blank).
369	369	6 (14) On or before April 30, 2008 and every 2 years
370	370	7 thereafter, the State Commission shall present a written
371	371	8 report to the Governor and the General Assembly that shall
372	372	9 be based on a study of the impact of Public Act 95-634 on
373	373	10 the business of soliciting, selling, and shipping wine
374	374	11 from inside and outside of this State directly to
375	375	12 residents of this State. As part of its report, the State
376	376	13 Commission shall provide all of the following information:
377	377	14 (A) The amount of State excise and sales tax
378	378	15 revenues generated.
379	379	16 (B) The amount of licensing fees received.
380	380	17 (C) The number of cases of wine shipped from
381	381	18 inside and outside of this State directly to residents
382	382	19 of this State.
383	383	20 (D) The number of alcohol compliance operations
384	384	21 conducted.
385	385	22 (E) The number of winery shipper's licenses
386	386	23 issued.
387	387	24 (F) The number of each of the following: reported
388	388	25 violations; cease and desist notices issued by the
389	389	26 Commission; notices of violations issued by the
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394	394
395	395	SB1622 - 10 - LRB104 11847 RPS 21937 b
396	396
397	397
398	398	SB1622- 11 -LRB104 11847 RPS 21937 b SB1622 - 11 - LRB104 11847 RPS 21937 b
399	399	SB1622 - 11 - LRB104 11847 RPS 21937 b
400	400	1 Commission and to the Department of Revenue; and
401	401	2 notices and complaints of violations to law
402	402	3 enforcement officials, including, without limitation,
403	403	4 the Illinois Attorney General and the U.S. Department
404	404	5 of Treasury's Alcohol and Tobacco Tax and Trade
405	405	6 Bureau.
406	406	7 (15) As a means to reduce the underage consumption of
407	407	8 alcoholic liquors, the State Commission shall conduct
408	408	9 alcohol compliance operations to investigate whether
409	409	10 businesses that are soliciting, selling, and shipping wine
410	410	11 from inside or outside of this State directly to residents
411	411	12 of this State are licensed by this State or are selling or
412	412	13 attempting to sell wine to persons under 21 years of age in
413	413	14 violation of this Act.
414	414	15 (16) The State Commission shall, in addition to
415	415	16 notifying any appropriate law enforcement agency, submit
416	416	17 notices of complaints or violations of Sections 6-29 and
417	417	18 6-29.1 by persons who do not hold a winery shipper's
418	418	19 license under this Act to the Illinois Attorney General
419	419	20 and to the U.S. Department of Treasury's Alcohol and
420	420	21 Tobacco Tax and Trade Bureau.
421	421	22 (17)(A) A person licensed to make wine under the laws
422	422	23 of another state who has a winery shipper's license under
423	423	24 this Act and annually produces less than 25,000 gallons of
424	424	25 wine or a person who has a first-class or second-class
425	425	26 wine manufacturer's license, a first-class or second-class
426	426
427	427
428	428
429	429
430	430
431	431	SB1622 - 11 - LRB104 11847 RPS 21937 b
432	432
433	433
434	434	SB1622- 12 -LRB104 11847 RPS 21937 b SB1622 - 12 - LRB104 11847 RPS 21937 b
435	435	SB1622 - 12 - LRB104 11847 RPS 21937 b
436	436	1 wine-maker's license, or a limited wine manufacturer's
437	437	2 license under this Act and annually produces less than
438	438	3 25,000 gallons of wine may make application to the
439	439	4 Commission for a self-distribution exemption to allow the
440	440	5 sale of not more than 5,000 gallons of the exemption
441	441	6 holder's wine to retail licensees per year and to sell
442	442	7 cider, mead, or both cider and mead to brewers, class 1
443	443	8 brewers, class 2 brewers, and class 3 brewers that,
444	444	9 pursuant to subsection (e) of Section 6-4 of this Act,
445	445	10 sell beer, cider, mead, or any combination thereof to
446	446	11 non-licensees at their breweries.
447	447	12 (B) In the application, which shall be sworn under
448	448	13 penalty of perjury, such person shall state (1) the date
449	449	14 it was established; (2) its volume of production and sales
450	450	15 for each year since its establishment; (3) its efforts to
451	451	16 establish distributor relationships; (4) that a
452	452	17 self-distribution exemption is necessary to facilitate the
453	453	18 marketing of its wine; and (5) that it will comply with the
454	454	19 liquor and revenue laws of the United States, this State,
455	455	20 and any other state where it is licensed.
456	456	21 (C) The State Commission shall approve the application
457	457	22 for a self-distribution exemption if such person: (1) is
458	458	23 in compliance with State revenue and liquor laws; (2) is
459	459	24 not a member of any affiliated group that produces
460	460	25 directly or indirectly more than 25,000 gallons of wine
461	461	26 per annum, 930,000 gallons of beer per annum, or 50,000
462	462
463	463
464	464
465	465
466	466
467	467	SB1622 - 12 - LRB104 11847 RPS 21937 b
468	468
469	469
470	470	SB1622- 13 -LRB104 11847 RPS 21937 b SB1622 - 13 - LRB104 11847 RPS 21937 b
471	471	SB1622 - 13 - LRB104 11847 RPS 21937 b
472	472	1 gallons of spirits per annum; (3) will not annually
473	473	2 produce for sale more than 25,000 gallons of wine, 930,000
474	474	3 gallons of beer, or 50,000 gallons of spirits; and (4)
475	475	4 will not annually sell more than 5,000 gallons of its wine
476	476	5 to retail licensees.
477	477	6 (D) A self-distribution exemption holder shall
478	478	7 annually certify to the State Commission its production of
479	479	8 wine in the previous 12 months and its anticipated
480	480	9 production and sales for the next 12 months. The State
481	481	10 Commission may fine, suspend, or revoke a
482	482	11 self-distribution exemption after a hearing if it finds
483	483	12 that the exemption holder has made a material
484	484	13 misrepresentation in its application, violated a revenue
485	485	14 or liquor law of Illinois, exceeded production of 25,000
486	486	15 gallons of wine, 930,000 gallons of beer, or 50,000
487	487	16 gallons of spirits in any calendar year, or become part of
488	488	17 an affiliated group producing more than 25,000 gallons of
489	489	18 wine, 930,000 gallons of beer, or 50,000 gallons of
490	490	19 spirits.
491	491	20 (E) Except in hearings for violations of this Act or
492	492	21 Public Act 95-634 or a bona fide investigation by duly
493	493	22 sworn law enforcement officials, the State Commission, or
494	494	23 its agents, the State Commission shall maintain the
495	495	24 production and sales information of a self-distribution
496	496	25 exemption holder as confidential and shall not release
497	497	26 such information to any person.
498	498
499	499
500	500
501	501
502	502
503	503	SB1622 - 13 - LRB104 11847 RPS 21937 b
504	504
505	505
506	506	SB1622- 14 -LRB104 11847 RPS 21937 b SB1622 - 14 - LRB104 11847 RPS 21937 b
507	507	SB1622 - 14 - LRB104 11847 RPS 21937 b
508	508	1 (F) The State Commission shall issue regulations
509	509	2 governing self-distribution exemptions consistent with
510	510	3 this Section and this Act.
511	511	4 (G) Nothing in this paragraph (17) shall prohibit a
512	512	5 self-distribution exemption holder from entering into or
513	513	6 simultaneously having a distribution agreement with a
514	514	7 licensed Illinois distributor.
515	515	8 (H) It is the intent of this paragraph (17) to promote
516	516	9 and continue orderly markets. The General Assembly finds
517	517	10 that, in order to preserve Illinois' regulatory
518	518	11 distribution system, it is necessary to create an
519	519	12 exception for smaller makers of wine as their wines are
520	520	13 frequently adjusted in varietals, mixes, vintages, and
521	521	14 taste to find and create market niches sometimes too small
522	522	15 for distributor or importing distributor business
523	523	16 strategies. Limited self-distribution rights will afford
524	524	17 and allow smaller makers of wine access to the marketplace
525	525	18 in order to develop a customer base without impairing the
526	526	19 integrity of the 3-tier system.
527	527	20 (18)(A) A class 1 brewer licensee, who must also be
528	528	21 either a licensed brewer or licensed non-resident dealer
529	529	22 and annually manufacture less than 930,000 gallons of
530	530	23 beer, may make application to the State Commission for a
531	531	24 self-distribution exemption to allow the sale of not more
532	532	25 than 232,500 gallons per year of the exemption holder's
533	533	26 beer to retail licensees and to brewers, class 1 brewers,
534	534
535	535
536	536
537	537
538	538
539	539	SB1622 - 14 - LRB104 11847 RPS 21937 b
540	540
541	541
542	542	SB1622- 15 -LRB104 11847 RPS 21937 b SB1622 - 15 - LRB104 11847 RPS 21937 b
543	543	SB1622 - 15 - LRB104 11847 RPS 21937 b
544	544	1 and class 2 brewers that, pursuant to subsection (e) of
545	545	2 Section 6-4 of this Act, sell beer, cider, mead, or any
546	546	3 combination thereof to non-licensees at their breweries.
547	547	4 (B) In the application, which shall be sworn under
548	548	5 penalty of perjury, the class 1 brewer licensee shall
549	549	6 state (1) the date it was established; (2) its volume of
550	550	7 beer manufactured and sold for each year since its
551	551	8 establishment; (3) its efforts to establish distributor
552	552	9 relationships; (4) that a self-distribution exemption is
553	553	10 necessary to facilitate the marketing of its beer; and (5)
554	554	11 that it will comply with the alcoholic beverage and
555	555	12 revenue laws of the United States, this State, and any
556	556	13 other state where it is licensed.
557	557	14 (C) Any application submitted shall be posted on the
558	558	15 State Commission's website at least 45 days prior to
559	559	16 action by the State Commission. The State Commission shall
560	560	17 approve the application for a self-distribution exemption
561	561	18 if the class 1 brewer licensee: (1) is in compliance with
562	562	19 the State, revenue, and alcoholic beverage laws; (2) is
563	563	20 not a member of any affiliated group that manufactures,
564	564	21 directly or indirectly, more than 930,000 gallons of beer
565	565	22 per annum, 25,000 gallons of wine per annum, or 50,000
566	566	23 gallons of spirits per annum; (3) shall not annually
567	567	24 manufacture for sale more than 930,000 gallons of beer,
568	568	25 25,000 gallons of wine, or 50,000 gallons of spirits; (4)
569	569	26 shall not annually sell more than 232,500 gallons of its
570	570
571	571
572	572
573	573
574	574
575	575	SB1622 - 15 - LRB104 11847 RPS 21937 b
576	576
577	577
578	578	SB1622- 16 -LRB104 11847 RPS 21937 b SB1622 - 16 - LRB104 11847 RPS 21937 b
579	579	SB1622 - 16 - LRB104 11847 RPS 21937 b
580	580	1 beer to retail licensees and class 3 brewers and to
581	581	2 brewers, class 1 brewers, and class 2 brewers that,
582	582	3 pursuant to subsection (e) of Section 6-4 of this Act,
583	583	4 sell beer, cider, mead, or any combination thereof to
584	584	5 non-licensees at their breweries; and (5) has relinquished
585	585	6 any brew pub license held by the licensee, including any
586	586	7 ownership interest it held in the licensed brew pub.
587	587	8 (D) A self-distribution exemption holder shall
588	588	9 annually certify to the State Commission its manufacture
589	589	10 of beer during the previous 12 months and its anticipated
590	590	11 manufacture and sales of beer for the next 12 months. The
591	591	12 State Commission may fine, suspend, or revoke a
592	592	13 self-distribution exemption after a hearing if it finds
593	593	14 that the exemption holder has made a material
594	594	15 misrepresentation in its application, violated a revenue
595	595	16 or alcoholic beverage law of Illinois, exceeded the
596	596	17 manufacture of 930,000 gallons of beer, 25,000 gallons of
597	597	18 wine, or 50,000 gallons of spirits in any calendar year or
598	598	19 became part of an affiliated group manufacturing more than
599	599	20 930,000 gallons of beer, 25,000 gallons of wine, or 50,000
600	600	21 gallons of spirits.
601	601	22 (E) The State Commission shall issue rules and
602	602	23 regulations governing self-distribution exemptions
603	603	24 consistent with this Act.
604	604	25 (F) Nothing in this paragraph (18) shall prohibit a
605	605	26 self-distribution exemption holder from entering into or
606	606
607	607
608	608
609	609
610	610
611	611	SB1622 - 16 - LRB104 11847 RPS 21937 b
612	612
613	613
614	614	SB1622- 17 -LRB104 11847 RPS 21937 b SB1622 - 17 - LRB104 11847 RPS 21937 b
615	615	SB1622 - 17 - LRB104 11847 RPS 21937 b
616	616	1 simultaneously having a distribution agreement with a
617	617	2 licensed Illinois importing distributor or a distributor.
618	618	3 If a self-distribution exemption holder enters into a
619	619	4 distribution agreement and has assigned distribution
620	620	5 rights to an importing distributor or distributor, then
621	621	6 the self-distribution exemption holder's distribution
622	622	7 rights in the assigned territories shall cease in a
623	623	8 reasonable time not to exceed 60 days.
624	624	9 (G) It is the intent of this paragraph (18) to promote
625	625	10 and continue orderly markets. The General Assembly finds
626	626	11 that in order to preserve Illinois' regulatory
627	627	12 distribution system, it is necessary to create an
628	628	13 exception for smaller manufacturers in order to afford and
629	629	14 allow such smaller manufacturers of beer access to the
630	630	15 marketplace in order to develop a customer base without
631	631	16 impairing the integrity of the 3-tier system.
632	632	17 (19)(A) A class 1 craft distiller licensee or a
633	633	18 non-resident dealer who manufactures less than 50,000
634	634	19 gallons of distilled spirits per year may make application
635	635	20 to the State Commission for a self-distribution exemption
636	636	21 to allow the sale of not more than 5,000 gallons of the
637	637	22 exemption holder's spirits to retail licensees per year.
638	638	23 (B) In the application, which shall be sworn under
639	639	24 penalty of perjury, the class 1 craft distiller licensee
640	640	25 or non-resident dealer shall state (1) the date it was
641	641	26 established; (2) its volume of spirits manufactured and
642	642
643	643
644	644
645	645
646	646
647	647	SB1622 - 17 - LRB104 11847 RPS 21937 b
648	648
649	649
650	650	SB1622- 18 -LRB104 11847 RPS 21937 b SB1622 - 18 - LRB104 11847 RPS 21937 b
651	651	SB1622 - 18 - LRB104 11847 RPS 21937 b
652	652	1 sold for each year since its establishment; (3) its
653	653	2 efforts to establish distributor relationships; (4) that a
654	654	3 self-distribution exemption is necessary to facilitate the
655	655	4 marketing of its spirits; and (5) that it will comply with
656	656	5 the alcoholic beverage and revenue laws of the United
657	657	6 States, this State, and any other state where it is
658	658	7 licensed.
659	659	8 (C) Any application submitted shall be posted on the
660	660	9 State Commission's website at least 45 days prior to
661	661	10 action by the State Commission. The State Commission shall
662	662	11 approve the application for a self-distribution exemption
663	663	12 if the applicant: (1) is in compliance with State revenue
664	664	13 and alcoholic beverage laws; (2) is not a member of any
665	665	14 affiliated group that produces more than 50,000 gallons of
666	666	15 spirits per annum, 930,000 gallons of beer per annum, or
667	667	16 25,000 gallons of wine per annum; (3) does not annually
668	668	17 manufacture for sale more than 50,000 gallons of spirits,
669	669	18 930,000 gallons of beer, or 25,000 gallons of wine; and
670	670	19 (4) does not annually sell more than 5,000 gallons of its
671	671	20 spirits to retail licensees.
672	672	21 (D) A self-distribution exemption holder shall
673	673	22 annually certify to the State Commission its manufacture
674	674	23 of spirits during the previous 12 months and its
675	675	24 anticipated manufacture and sales of spirits for the next
676	676	25 12 months. The State Commission may fine, suspend, or
677	677	26 revoke a self-distribution exemption after a hearing if it
678	678
679	679
680	680
681	681
682	682
683	683	SB1622 - 18 - LRB104 11847 RPS 21937 b
684	684
685	685
686	686	SB1622- 19 -LRB104 11847 RPS 21937 b SB1622 - 19 - LRB104 11847 RPS 21937 b
687	687	SB1622 - 19 - LRB104 11847 RPS 21937 b
688	688	1 finds that the exemption holder has made a material
689	689	2 misrepresentation in its application, violated a revenue
690	690	3 or alcoholic beverage law of Illinois, exceeded the
691	691	4 manufacture of 50,000 gallons of spirits, 930,000 gallons
692	692	5 of beer, or 25,000 gallons of wine in any calendar year, or
693	693	6 has become part of an affiliated group manufacturing more
694	694	7 than 50,000 gallons of spirits, 930,000 gallons of beer,
695	695	8 or 25,000 gallons of wine.
696	696	9 (E) The State Commission shall adopt rules governing
697	697	10 self-distribution exemptions consistent with this Act.
698	698	11 (F) Nothing in this paragraph (19) shall prohibit a
699	699	12 self-distribution exemption holder from entering into or
700	700	13 simultaneously having a distribution agreement with a
701	701	14 licensed Illinois importing distributor or a distributor.
702	702	15 (G) It is the intent of this paragraph (19) to promote
703	703	16 and continue orderly markets. The General Assembly finds
704	704	17 that in order to preserve Illinois' regulatory
705	705	18 distribution system, it is necessary to create an
706	706	19 exception for smaller manufacturers in order to afford and
707	707	20 allow such smaller manufacturers of spirits access to the
708	708	21 marketplace in order to develop a customer base without
709	709	22 impairing the integrity of the 3-tier system.
710	710	23 (20)(A) A class 3 brewer licensee who must manufacture
711	711	24 less than 465,000 gallons of beer in the aggregate and not
712	712	25 more than 155,000 gallons at any single brewery premises
713	713	26 may make application to the State Commission for a
714	714
715	715
716	716
717	717
718	718
719	719	SB1622 - 19 - LRB104 11847 RPS 21937 b
720	720
721	721
722	722	SB1622- 20 -LRB104 11847 RPS 21937 b SB1622 - 20 - LRB104 11847 RPS 21937 b
723	723	SB1622 - 20 - LRB104 11847 RPS 21937 b
724	724	1 self-distribution exemption to allow the sale of not more
725	725	2 than 77,500 6,200 gallons of beer from each in-state or
726	726	3 out-of-state class 3 brewery premises, which shall not
727	727	4 exceed 232,500 18,600 gallons annually in the aggregate,
728	728	5 that is manufactured at a wholly owned class 3 brewer's
729	729	6 in-state or out-of-state licensed premises to retail
730	730	7 licensees and class 3 brewers and to brewers, class 1
731	731	8 brewers, class 2 brewers that, pursuant to subsection (e)
732	732	9 of Section 6-4, sell beer, cider, or both beer and cider to
733	733	10 non-licensees at their licensed breweries.
734	734	11 (B) In the application, which shall be sworn under
735	735	12 penalty of perjury, the class 3 brewer licensee shall
736	736	13 state:
737	737	14 (1) the date it was established;
738	738	15 (2) its volume of beer manufactured and sold for
739	739	16 each year since its establishment;
740	740	17 (3) its efforts to establish distributor
741	741	18 relationships;
742	742	19 (4) that a self-distribution exemption is
743	743	20 necessary to facilitate the marketing of its beer; and
744	744	21 (5) that it will comply with the alcoholic
745	745	22 beverage and revenue laws of the United States, this
746	746	23 State, and any other state where it is licensed.
747	747	24 (C) Any application submitted shall be posted on the
748	748	25 State Commission's website at least 45 days before action
749	749	26 by the State Commission. The State Commission shall
750	750
751	751
752	752
753	753
754	754
755	755	SB1622 - 20 - LRB104 11847 RPS 21937 b
756	756
757	757
758	758	SB1622- 21 -LRB104 11847 RPS 21937 b SB1622 - 21 - LRB104 11847 RPS 21937 b
759	759	SB1622 - 21 - LRB104 11847 RPS 21937 b
760	760	1 approve the application for a self-distribution exemption
761	761	2 if the class 3 brewer licensee: (1) is in compliance with
762	762	3 the State, revenue, and alcoholic beverage laws; (2) is
763	763	4 not a member of any affiliated group that manufacturers,
764	764	5 directly or indirectly, more than 465,000 gallons of beer
765	765	6 per annum; (3) shall not annually manufacture for sale
766	766	7 more than 465,000 gallons of beer or more than 155,000
767	767	8 gallons at any single brewery premises; and (4) shall not
768	768	9 annually sell more than 77,500 6,200 gallons of beer from
769	769	10 each in-state or out-of-state class 3 brewery premises,
770	770	11 and shall not exceed 232,500 18,600 gallons annually in
771	771	12 the aggregate, to retail licensees and class 3 brewers and
772	772	13 to brewers, class 1 brewers, and class 2 brewers that,
773	773	14 pursuant to subsection (e) of Section 6-4 of this Act,
774	774	15 sell beer, cider, or both beer and cider to non-licensees
775	775	16 at their breweries.
776	776	17 (D) A self-distribution exemption holder shall
777	777	18 annually certify to the State Commission its manufacture
778	778	19 of beer during the previous 12 months and its anticipated
779	779	20 manufacture and sales of beer for the next 12 months. The
780	780	21 State Commission may fine, suspend, or revoke a
781	781	22 self-distribution exemption after a hearing if it finds
782	782	23 that the exemption holder has made a material
783	783	24 misrepresentation in its application, violated a revenue
784	784	25 or alcoholic beverage law of Illinois, exceeded the
785	785	26 manufacture of 465,000 gallons of beer in any calendar
786	786
787	787
788	788
789	789
790	790
791	791	SB1622 - 21 - LRB104 11847 RPS 21937 b
792	792
793	793
794	794	SB1622- 22 -LRB104 11847 RPS 21937 b SB1622 - 22 - LRB104 11847 RPS 21937 b
795	795	SB1622 - 22 - LRB104 11847 RPS 21937 b
796	796	1 year or became part of an affiliated group manufacturing
797	797	2 more than 465,000 gallons of beer, or exceeded the sale to
798	798	3 retail licensees, brewers, class 1 brewers, class 2
799	799	4 brewers, and class 3 brewers of 77,500 6,200 gallons per
800	800	5 brewery location or 232,500 18,600 gallons in the
801	801	6 aggregate.
802	802	7 (E) The State Commission may adopt rules governing
803	803	8 self-distribution exemptions consistent with this Act.
804	804	9 (F) Nothing in this paragraph shall prohibit a
805	805	10 self-distribution exemption holder from entering into or
806	806	11 simultaneously having a distribution agreement with a
807	807	12 licensed Illinois importing distributor or a distributor.
808	808	13 If a self-distribution exemption holder enters into a
809	809	14 distribution agreement and has assigned distribution
810	810	15 rights to an importing distributor or distributor, then
811	811	16 the self-distribution exemption holder's distribution
812	812	17 rights in the assigned territories shall cease in a
813	813	18 reasonable time not to exceed 60 days.
814	814	19 (G) It is the intent of this paragraph to promote and
815	815	20 continue orderly markets. The General Assembly finds that
816	816	21 in order to preserve Illinois' regulatory distribution
817	817	22 system, it is necessary to create an exception for smaller
818	818	23 manufacturers in order to afford and allow such smaller
819	819	24 manufacturers of beer access to the marketplace in order
820	820	25 to develop a customer base without impairing the integrity
821	821	26 of the 3-tier system.
822	822
823	823
824	824
825	825
826	826
827	827	SB1622 - 22 - LRB104 11847 RPS 21937 b
828	828
829	829
830	830	SB1622- 23 -LRB104 11847 RPS 21937 b SB1622 - 23 - LRB104 11847 RPS 21937 b
831	831	SB1622 - 23 - LRB104 11847 RPS 21937 b
832	832	1 (b) On or before April 30, 1999, the Commission shall
833	833	2 present a written report to the Governor and the General
834	834	3 Assembly that shall be based on a study of the impact of Public
835	835	4 Act 90-739 on the business of soliciting, selling, and
836	836	5 shipping alcoholic liquor from outside of this State directly
837	837	6 to residents of this State.
838	838	7 As part of its report, the Commission shall provide the
839	839	8 following information:
840	840	9 (i) the amount of State excise and sales tax revenues
841	841	10 generated as a result of Public Act 90-739;
842	842	11 (ii) the amount of licensing fees received as a result
843	843	12 of Public Act 90-739;
844	844	13 (iii) the number of reported violations, the number of
845	845	14 cease and desist notices issued by the Commission, the
846	846	15 number of notices of violations issued to the Department
847	847	16 of Revenue, and the number of notices and complaints of
848	848	17 violations to law enforcement officials.
849	849	18 (Source: P.A. 101-37, eff. 7-3-19; 101-81, eff. 7-12-19;
850	850	19 101-482, eff. 8-23-19; 102-442, eff. 8-20-21; 102-558, eff.
851	851	20 8-20-21; 102-813, eff. 5-13-22.)
852	852	21 (235 ILCS 5/5-1) (from Ch. 43, par. 115)
853	853	22 Sec. 5-1. Licenses issued by the Illinois Liquor Control
854	854	23 Commission shall be of the following classes:
855	855	24 (a) Manufacturer's license - Class 1. Distiller, Class 2.
856	856	25 Rectifier, Class 3. Brewer, Class 4. First Class Wine
857	857
858	858
859	859
860	860
861	861
862	862	SB1622 - 23 - LRB104 11847 RPS 21937 b
863	863
864	864
865	865	SB1622- 24 -LRB104 11847 RPS 21937 b SB1622 - 24 - LRB104 11847 RPS 21937 b
866	866	SB1622 - 24 - LRB104 11847 RPS 21937 b
867	867	1 Manufacturer, Class 5. Second Class Wine Manufacturer, Class
868	868	2 6. First Class Winemaker, Class 7. Second Class Winemaker,
869	869	3 Class 8. Limited Wine Manufacturer, Class 9. Craft Distiller,
870	870	4 Class 10. Class 1 Craft Distiller, Class 11. Class 2 Craft
871	871	5 Distiller, Class 12. Class 1 Brewer, Class 13. Class 2 Brewer,
872	872	6 Class 14. Class 3 Brewer,
873	873	7 (b) Distributor's license,
874	874	8 (c) Importing Distributor's license,
875	875	9 (d) Retailer's license,
876	876	10 (e) Special Event Retailer's license (not-for-profit),
877	877	11 (f) Railroad license,
878	878	12 (g) Boat license,
879	879	13 (h) Non-Beverage User's license,
880	880	14 (i) Wine-maker's premises license,
881	881	15 (j) Airplane license,
882	882	16 (k) Foreign importer's license,
883	883	17 (l) Broker's license,
884	884	18 (m) Non-resident dealer's license,
885	885	19 (n) Brew Pub license,
886	886	20 (o) Auction liquor license,
887	887	21 (p) Caterer retailer license,
888	888	22 (q) Special use permit license,
889	889	23 (r) Winery shipper's license,
890	890	24 (s) Craft distiller tasting permit,
891	891	25 (t) Brewer warehouse permit,
892	892	26 (u) Distilling pub license,
893	893
894	894
895	895
896	896
897	897
898	898	SB1622 - 24 - LRB104 11847 RPS 21937 b
899	899
900	900
901	901	SB1622- 25 -LRB104 11847 RPS 21937 b SB1622 - 25 - LRB104 11847 RPS 21937 b
902	902	SB1622 - 25 - LRB104 11847 RPS 21937 b
903	903	1 (v) Craft distiller warehouse permit,
904	904	2 (w) Beer showcase permit.
905	905	3 No person, firm, partnership, corporation, or other legal
906	906	4 business entity that is engaged in the manufacturing of wine
907	907	5 may concurrently obtain and hold a wine-maker's license and a
908	908	6 wine manufacturer's license.
909	909	7 (a) A manufacturer's license shall allow the manufacture,
910	910	8 importation in bulk, storage, distribution and sale of
911	911	9 alcoholic liquor to persons without the State, as may be
912	912	10 permitted by law and to licensees in this State as follows:
913	913	11 Class 1. A Distiller may make sales and deliveries of
914	914	12 alcoholic liquor to distillers, rectifiers, importing
915	915	13 distributors, distributors and non-beverage users and to no
916	916	14 other licensees.
917	917	15 Class 2. A Rectifier, who is not a distiller, as defined
918	918	16 herein, may make sales and deliveries of alcoholic liquor to
919	919	17 rectifiers, importing distributors, distributors, retailers
920	920	18 and non-beverage users and to no other licensees.
921	921	19 Class 3. A Brewer may make sales and deliveries of beer to
922	922	20 importing distributors and distributors and may make sales as
923	923	21 authorized under subsection (e) of Section 6-4 of this Act,
924	924	22 including any alcoholic liquor that subsection (e) of Section
925	925	23 6-4 authorizes a brewer to sell in its original package only to
926	926	24 a non-licensee for pick-up by a non-licensee either within the
927	927	25 interior of the brewery premises or at outside of the brewery
928	928	26 premises at a curb-side or parking lot adjacent to the brewery
929	929
930	930
931	931
932	932
933	933
934	934	SB1622 - 25 - LRB104 11847 RPS 21937 b
935	935
936	936
937	937	SB1622- 26 -LRB104 11847 RPS 21937 b SB1622 - 26 - LRB104 11847 RPS 21937 b
938	938	SB1622 - 26 - LRB104 11847 RPS 21937 b
939	939	1 premises, subject to any local ordinance.
940	940	2 Class 4. A first class wine-manufacturer may make sales
941	941	3 and deliveries of up to 50,000 gallons of wine to
942	942	4 manufacturers, importing distributors and distributors, and to
943	943	5 no other licensees. If a first-class wine-manufacturer
944	944	6 manufactures beer, it shall also obtain and shall only be
945	945	7 eligible for, in addition to any current license, a class 1
946	946	8 brewer license, shall not manufacture more than 930,000
947	947	9 gallons of beer per year, and shall not be a member of or
948	948	10 affiliated with, directly or indirectly, a manufacturer that
949	949	11 produces more than 930,000 gallons of beer per year. If the
950	950	12 first-class wine-manufacturer manufactures spirits, it shall
951	951	13 also obtain and shall only be eligible for, in addition to any
952	952	14 current license, a class 1 craft distiller license, shall not
953	953	15 manufacture more than 50,000 gallons of spirits per year, and
954	954	16 shall not be a member of or affiliated with, directly or
955	955	17 indirectly, a manufacturer that produces more than 50,000
956	956	18 gallons of spirits per year. A first-class wine-manufacturer
957	957	19 shall be permitted to sell wine manufactured at the
958	958	20 first-class wine-manufacturer premises to non-licensees.
959	959	21 Class 5. A second class Wine manufacturer may make sales
960	960	22 and deliveries of more than 50,000 gallons of wine to
961	961	23 manufacturers, importing distributors and distributors and to
962	962	24 no other licensees.
963	963	25 Class 6. A first-class wine-maker's license shall allow
964	964	26 the manufacture of up to 50,000 gallons of wine per year, and
965	965
966	966
967	967
968	968
969	969
970	970	SB1622 - 26 - LRB104 11847 RPS 21937 b
971	971
972	972
973	973	SB1622- 27 -LRB104 11847 RPS 21937 b SB1622 - 27 - LRB104 11847 RPS 21937 b
974	974	SB1622 - 27 - LRB104 11847 RPS 21937 b
975	975	1 the storage and sale of such wine to distributors in the State
976	976	2 and to persons without the State, as may be permitted by law. A
977	977	3 person who, prior to June 1, 2008 (the effective date of Public
978	978	4 Act 95-634), is a holder of a first-class wine-maker's license
979	979	5 and annually produces more than 25,000 gallons of its own wine
980	980	6 and who distributes its wine to licensed retailers shall cease
981	981	7 this practice on or before July 1, 2008 in compliance with
982	982	8 Public Act 95-634. If a first-class wine-maker manufactures
983	983	9 beer, it shall also obtain and shall only be eligible for, in
984	984	10 addition to any current license, a class 1 brewer license,
985	985	11 shall not manufacture more than 930,000 gallons of beer per
986	986	12 year, and shall not be a member of or affiliated with, directly
987	987	13 or indirectly, a manufacturer that produces more than 930,000
988	988	14 gallons of beer per year. If the first-class wine-maker
989	989	15 manufactures spirits, it shall also obtain and shall only be
990	990	16 eligible for, in addition to any current license, a class 1
991	991	17 craft distiller license, shall not manufacture more than
992	992	18 50,000 gallons of spirits per year, and shall not be a member
993	993	19 of or affiliated with, directly or indirectly, a manufacturer
994	994	20 that produces more than 50,000 gallons of spirits per year. A
995	995	21 first-class wine-maker holding a class 1 brewer license or a
996	996	22 class 1 craft distiller license shall not be eligible for a
997	997	23 wine-maker's premises license but shall be permitted to sell
998	998	24 wine manufactured at the first-class wine-maker premises to
999	999	25 non-licensees.
1000	1000	26 Class 7. A second-class wine-maker's license shall allow
1001	1001
1002	1002
1003	1003
1004	1004
1005	1005
1006	1006	SB1622 - 27 - LRB104 11847 RPS 21937 b
1007	1007
1008	1008
1009	1009	SB1622- 28 -LRB104 11847 RPS 21937 b SB1622 - 28 - LRB104 11847 RPS 21937 b
1010	1010	SB1622 - 28 - LRB104 11847 RPS 21937 b
1011	1011	1 the manufacture of up to 150,000 gallons of wine per year, and
1012	1012	2 the storage and sale of such wine to distributors in this State
1013	1013	3 and to persons without the State, as may be permitted by law. A
1014	1014	4 person who, prior to June 1, 2008 (the effective date of Public
1015	1015	5 Act 95-634), is a holder of a second-class wine-maker's
1016	1016	6 license and annually produces more than 25,000 gallons of its
1017	1017	7 own wine and who distributes its wine to licensed retailers
1018	1018	8 shall cease this practice on or before July 1, 2008 in
1019	1019	9 compliance with Public Act 95-634. If a second-class
1020	1020	10 wine-maker manufactures beer, it shall also obtain and shall
1021	1021	11 only be eligible for, in addition to any current license, a
1022	1022	12 class 2 brewer license, shall not manufacture more than
1023	1023	13 3,720,000 gallons of beer per year, and shall not be a member
1024	1024	14 of or affiliated with, directly or indirectly, a manufacturer
1025	1025	15 that produces more than 3,720,000 gallons of beer per year. If
1026	1026	16 a second-class wine-maker manufactures spirits, it shall also
1027	1027	17 obtain and shall only be eligible for, in addition to any
1028	1028	18 current license, a class 2 craft distiller license, shall not
1029	1029	19 manufacture more than 100,000 gallons of spirits per year, and
1030	1030	20 shall not be a member of or affiliated with, directly or
1031	1031	21 indirectly, a manufacturer that produces more than 100,000
1032	1032	22 gallons of spirits per year.
1033	1033	23 Class 8. A limited wine-manufacturer may make sales and
1034	1034	24 deliveries not to exceed 40,000 gallons of wine per year to
1035	1035	25 distributors, and to non-licensees in accordance with the
1036	1036	26 provisions of this Act.
1037	1037
1038	1038
1039	1039
1040	1040
1041	1041
1042	1042	SB1622 - 28 - LRB104 11847 RPS 21937 b
1043	1043
1044	1044
1045	1045	SB1622- 29 -LRB104 11847 RPS 21937 b SB1622 - 29 - LRB104 11847 RPS 21937 b
1046	1046	SB1622 - 29 - LRB104 11847 RPS 21937 b
1047	1047	1 Class 9. A craft distiller license, which may only be held
1048	1048	2 by a class 1 craft distiller licensee or class 2 craft
1049	1049	3 distiller licensee but not held by both a class 1 craft
1050	1050	4 distiller licensee and a class 2 craft distiller licensee,
1051	1051	5 shall grant all rights conveyed by either: (i) a class 1 craft
1052	1052	6 distiller license if the craft distiller holds a class 1 craft
1053	1053	7 distiller license; or (ii) a class 2 craft distiller licensee
1054	1054	8 if the craft distiller holds a class 2 craft distiller
1055	1055	9 license.
1056	1056	10 Class 10. A class 1 craft distiller license, which may
1057	1057	11 only be issued to a licensed craft distiller or licensed
1058	1058	12 non-resident dealer, shall allow the manufacture of up to
1059	1059	13 50,000 gallons of spirits per year provided that the class 1
1060	1060	14 craft distiller licensee does not manufacture more than a
1061	1061	15 combined 50,000 gallons of spirits per year and is not a member
1062	1062	16 of or affiliated with, directly or indirectly, a manufacturer
1063	1063	17 that produces more than 50,000 gallons of spirits per year. If
1064	1064	18 a class 1 craft distiller manufactures beer, it shall also
1065	1065	19 obtain and shall only be eligible for, in addition to any
1066	1066	20 current license, a class 1 brewer license, shall not
1067	1067	21 manufacture more than 930,000 gallons of beer per year, and
1068	1068	22 shall not be a member of or affiliated with, directly or
1069	1069	23 indirectly, a manufacturer that produces more than 930,000
1070	1070	24 gallons of beer per year. If a class 1 craft distiller
1071	1071	25 manufactures wine, it shall also obtain and shall only be
1072	1072	26 eligible for, in addition to any current license, a
1073	1073
1074	1074
1075	1075
1076	1076
1077	1077
1078	1078	SB1622 - 29 - LRB104 11847 RPS 21937 b
1079	1079
1080	1080
1081	1081	SB1622- 30 -LRB104 11847 RPS 21937 b SB1622 - 30 - LRB104 11847 RPS 21937 b
1082	1082	SB1622 - 30 - LRB104 11847 RPS 21937 b
1083	1083	1 first-class wine-manufacturer license or a first-class
1084	1084	2 wine-maker's license, shall not manufacture more than 50,000
1085	1085	3 gallons of wine per year, and shall not be a member of or
1086	1086	4 affiliated with, directly or indirectly, a manufacturer that
1087	1087	5 produces more than 50,000 gallons of wine per year. A class 1
1088	1088	6 craft distiller licensee may make sales and deliveries to
1089	1089	7 importing distributors and distributors and to retail
1090	1090	8 licensees in accordance with the conditions set forth in
1091	1091	9 paragraph (19) of subsection (a) of Section 3-12 of this Act.
1092	1092	10 However, the aggregate amount of spirits sold to non-licensees
1093	1093	11 and sold or delivered to retail licensees may not exceed 5,000
1094	1094	12 gallons per year.
1095	1095	13 A class 1 craft distiller licensee may sell up to 5,000
1096	1096	14 gallons of such spirits to non-licensees to the extent
1097	1097	15 permitted by any exemption approved by the State Commission
1098	1098	16 pursuant to Section 6-4 of this Act. A class 1 craft distiller
1099	1099	17 license holder may store such spirits at a non-contiguous
1100	1100	18 licensed location, but at no time shall a class 1 craft
1101	1101	19 distiller license holder directly or indirectly produce in the
1102	1102	20 aggregate more than 50,000 gallons of spirits per year.
1103	1103	21 A class 1 craft distiller licensee may hold more than one
1104	1104	22 class 1 craft distiller's license. However, a class 1 craft
1105	1105	23 distiller that holds more than one class 1 craft distiller
1106	1106	24 license shall not manufacture, in the aggregate, more than
1107	1107	25 50,000 gallons of spirits by distillation per year and shall
1108	1108	26 not sell, in the aggregate, more than 5,000 gallons of such
1109	1109
1110	1110
1111	1111
1112	1112
1113	1113
1114	1114	SB1622 - 30 - LRB104 11847 RPS 21937 b
1115	1115
1116	1116
1117	1117	SB1622- 31 -LRB104 11847 RPS 21937 b SB1622 - 31 - LRB104 11847 RPS 21937 b
1118	1118	SB1622 - 31 - LRB104 11847 RPS 21937 b
1119	1119	1 spirits to non-licensees in accordance with an exemption
1120	1120	2 approved by the State Commission pursuant to Section 6-4 of
1121	1121	3 this Act.
1122	1122	4 Class 11. A class 2 craft distiller license, which may
1123	1123	5 only be issued to a licensed craft distiller or licensed
1124	1124	6 non-resident dealer, shall allow the manufacture of up to
1125	1125	7 100,000 gallons of spirits per year provided that the class 2
1126	1126	8 craft distiller licensee does not manufacture more than a
1127	1127	9 combined 100,000 gallons of spirits per year and is not a
1128	1128	10 member of or affiliated with, directly or indirectly, a
1129	1129	11 manufacturer that produces more than 100,000 gallons of
1130	1130	12 spirits per year. If a class 2 craft distiller manufactures
1131	1131	13 beer, it shall also obtain and shall only be eligible for, in
1132	1132	14 addition to any current license, a class 2 brewer license,
1133	1133	15 shall not manufacture more than 3,720,000 gallons of beer per
1134	1134	16 year, and shall not be a member of or affiliated with, directly
1135	1135	17 or indirectly, a manufacturer that produces more than
1136	1136	18 3,720,000 gallons of beer per year. If a class 2 craft
1137	1137	19 distiller manufactures wine, it shall also obtain and shall
1138	1138	20 only be eligible for, in addition to any current license, a
1139	1139	21 second-class wine-maker's license, shall not manufacture more
1140	1140	22 than 150,000 gallons of wine per year, and shall not be a
1141	1141	23 member of or affiliated with, directly or indirectly, a
1142	1142	24 manufacturer that produces more than 150,000 gallons of wine
1143	1143	25 per year. A class 2 craft distiller licensee may make sales and
1144	1144	26 deliveries to importing distributors and distributors, but
1145	1145
1146	1146
1147	1147
1148	1148
1149	1149
1150	1150	SB1622 - 31 - LRB104 11847 RPS 21937 b
1151	1151
1152	1152
1153	1153	SB1622- 32 -LRB104 11847 RPS 21937 b SB1622 - 32 - LRB104 11847 RPS 21937 b
1154	1154	SB1622 - 32 - LRB104 11847 RPS 21937 b
1155	1155	1 shall not make sales or deliveries to any other licensee. If
1156	1156	2 the State Commission provides prior approval, a class 2 craft
1157	1157	3 distiller licensee may annually transfer up to 100,000 gallons
1158	1158	4 of spirits manufactured by that class 2 craft distiller
1159	1159	5 licensee to the premises of a licensed class 2 craft distiller
1160	1160	6 wholly owned and operated by the same licensee. A class 2 craft
1161	1161	7 distiller may transfer spirits to a distilling pub wholly
1162	1162	8 owned and operated by the class 2 craft distiller subject to
1163	1163	9 the following limitations and restrictions: (i) the transfer
1164	1164	10 shall not annually exceed more than 5,000 gallons; (ii) the
1165	1165	11 annual amount transferred shall reduce the distilling pub's
1166	1166	12 annual permitted production limit; (iii) all spirits
1167	1167	13 transferred shall be subject to Article VIII of this Act; (iv)
1168	1168	14 a written record shall be maintained by the distiller and
1169	1169	15 distilling pub specifying the amount, date of delivery, and
1170	1170	16 receipt of the product by the distilling pub; and (v) the
1171	1171	17 distilling pub shall be located no farther than 80 miles from
1172	1172	18 the class 2 craft distiller's licensed location.
1173	1173	19 A class 2 craft distiller shall, prior to transferring
1174	1174	20 spirits to a distilling pub wholly owned by the class 2 craft
1175	1175	21 distiller, furnish a written notice to the State Commission of
1176	1176	22 intent to transfer spirits setting forth the name and address
1177	1177	23 of the distilling pub and shall annually submit to the State
1178	1178	24 Commission a verified report identifying the total gallons of
1179	1179	25 spirits transferred to the distilling pub wholly owned by the
1180	1180	26 class 2 craft distiller.
1181	1181
1182	1182
1183	1183
1184	1184
1185	1185
1186	1186	SB1622 - 32 - LRB104 11847 RPS 21937 b
1187	1187
1188	1188
1189	1189	SB1622- 33 -LRB104 11847 RPS 21937 b SB1622 - 33 - LRB104 11847 RPS 21937 b
1190	1190	SB1622 - 33 - LRB104 11847 RPS 21937 b
1191	1191	1 A class 2 craft distiller license holder may store such
1192	1192	2 spirits at a non-contiguous licensed location, but at no time
1193	1193	3 shall a class 2 craft distiller license holder directly or
1194	1194	4 indirectly produce in the aggregate more than 100,000 gallons
1195	1195	5 of spirits per year.
1196	1196	6 Class 12. A class 1 brewer license, which may only be
1197	1197	7 issued to a licensed brewer or licensed non-resident dealer,
1198	1198	8 shall allow the manufacture of up to 930,000 gallons of beer
1199	1199	9 per year provided that the class 1 brewer licensee does not
1200	1200	10 manufacture more than a combined 930,000 gallons of beer per
1201	1201	11 year and is not a member of or affiliated with, directly or
1202	1202	12 indirectly, a manufacturer that produces more than 930,000
1203	1203	13 gallons of beer per year. If a class 1 brewer manufactures
1204	1204	14 spirits, it shall also obtain and shall only be eligible for,
1205	1205	15 in addition to any current license, a class 1 craft distiller
1206	1206	16 license, shall not manufacture more than 50,000 gallons of
1207	1207	17 spirits per year, and shall not be a member of or affiliated
1208	1208	18 with, directly or indirectly, a manufacturer that produces
1209	1209	19 more than 50,000 gallons of spirits per year. If a class 1
1210	1210	20 craft brewer manufactures wine, it shall also obtain and shall
1211	1211	21 only be eligible for, in addition to any current license, a
1212	1212	22 first-class wine-manufacturer license or a first-class
1213	1213	23 wine-maker's license, shall not manufacture more than 50,000
1214	1214	24 gallons of wine per year, and shall not be a member of or
1215	1215	25 affiliated with, directly or indirectly, a manufacturer that
1216	1216	26 produces more than 50,000 gallons of wine per year. A class 1
1217	1217
1218	1218
1219	1219
1220	1220
1221	1221
1222	1222	SB1622 - 33 - LRB104 11847 RPS 21937 b
1223	1223
1224	1224
1225	1225	SB1622- 34 -LRB104 11847 RPS 21937 b SB1622 - 34 - LRB104 11847 RPS 21937 b
1226	1226	SB1622 - 34 - LRB104 11847 RPS 21937 b
1227	1227	1 brewer licensee may make sales and deliveries to importing
1228	1228	2 distributors and distributors and to retail licensees in
1229	1229	3 accordance with the conditions set forth in paragraph (18) of
1230	1230	4 subsection (a) of Section 3-12 of this Act. If the State
1231	1231	5 Commission provides prior approval, a class 1 brewer may
1232	1232	6 annually transfer up to 930,000 gallons of beer manufactured
1233	1233	7 by that class 1 brewer to the premises of a licensed class 1
1234	1234	8 brewer wholly owned and operated by the same licensee.
1235	1235	9 Class 13. A class 2 brewer license, which may only be
1236	1236	10 issued to a licensed brewer or licensed non-resident dealer,
1237	1237	11 shall allow the manufacture of up to 3,720,000 gallons of beer
1238	1238	12 per year provided that the class 2 brewer licensee does not
1239	1239	13 manufacture more than a combined 3,720,000 gallons of beer per
1240	1240	14 year and is not a member of or affiliated with, directly or
1241	1241	15 indirectly, a manufacturer that produces more than 3,720,000
1242	1242	16 gallons of beer per year. If a class 2 brewer manufactures
1243	1243	17 spirits, it shall also obtain and shall only be eligible for,
1244	1244	18 in addition to any current license, a class 2 craft distiller
1245	1245	19 license, shall not manufacture more than 100,000 gallons of
1246	1246	20 spirits per year, and shall not be a member of or affiliated
1247	1247	21 with, directly or indirectly, a manufacturer that produces
1248	1248	22 more than 100,000 gallons of spirits per year. If a class 2
1249	1249	23 craft distiller manufactures wine, it shall also obtain and
1250	1250	24 shall only be eligible for, in addition to any current
1251	1251	25 license, a second-class wine-maker's license, shall not
1252	1252	26 manufacture more than 150,000 gallons of wine per year, and
1253	1253
1254	1254
1255	1255
1256	1256
1257	1257
1258	1258	SB1622 - 34 - LRB104 11847 RPS 21937 b
1259	1259
1260	1260
1261	1261	SB1622- 35 -LRB104 11847 RPS 21937 b SB1622 - 35 - LRB104 11847 RPS 21937 b
1262	1262	SB1622 - 35 - LRB104 11847 RPS 21937 b
1263	1263	1 shall not be a member of or affiliated with, directly or
1264	1264	2 indirectly, a manufacturer that produces more than 150,000
1265	1265	3 gallons of wine a year. A class 2 brewer licensee may make
1266	1266	4 sales and deliveries to importing distributors and
1267	1267	5 distributors, but shall not make sales or deliveries to any
1268	1268	6 other licensee. If the State Commission provides prior
1269	1269	7 approval, a class 2 brewer licensee may annually transfer up
1270	1270	8 to 3,720,000 gallons of beer manufactured by that class 2
1271	1271	9 brewer licensee to the premises of a licensed class 2 brewer
1272	1272	10 wholly owned and operated by the same licensee.
1273	1273	11 A class 2 brewer may transfer beer to a brew pub wholly
1274	1274	12 owned and operated by the class 2 brewer subject to the
1275	1275	13 following limitations and restrictions: (i) the transfer shall
1276	1276	14 not annually exceed more than 31,000 gallons; (ii) the annual
1277	1277	15 amount transferred shall reduce the brew pub's annual
1278	1278	16 permitted production limit; (iii) all beer transferred shall
1279	1279	17 be subject to Article VIII of this Act; (iv) a written record
1280	1280	18 shall be maintained by the brewer and brew pub specifying the
1281	1281	19 amount, date of delivery, and receipt of the product by the
1282	1282	20 brew pub; and (v) the brew pub shall be located no farther than
1283	1283	21 80 miles from the class 2 brewer's licensed location.
1284	1284	22 A class 2 brewer shall, prior to transferring beer to a
1285	1285	23 brew pub wholly owned by the class 2 brewer, furnish a written
1286	1286	24 notice to the State Commission of intent to transfer beer
1287	1287	25 setting forth the name and address of the brew pub and shall
1288	1288	26 annually submit to the State Commission a verified report
1289	1289
1290	1290
1291	1291
1292	1292
1293	1293
1294	1294	SB1622 - 35 - LRB104 11847 RPS 21937 b
1295	1295
1296	1296
1297	1297	SB1622- 36 -LRB104 11847 RPS 21937 b SB1622 - 36 - LRB104 11847 RPS 21937 b
1298	1298	SB1622 - 36 - LRB104 11847 RPS 21937 b
1299	1299	1 identifying the total gallons of beer transferred to the brew
1300	1300	2 pub wholly owned by the class 2 brewer.
1301	1301	3 Class 14. A class 3 brewer license, which may be issued to
1302	1302	4 a brewer or a non-resident dealer, shall allow the manufacture
1303	1303	5 of no more than 465,000 gallons of beer per year and no more
1304	1304	6 than 155,000 gallons at a single brewery premises, and shall
1305	1305	7 allow the sale of no more than 77,500 6,200 gallons of beer
1306	1306	8 from each in-state or out-of-state class 3 brewery premises,
1307	1307	9 or 232,500 18,600 gallons in the aggregate, to retail
1308	1308	10 licensees, class 1 brewers, class 2 brewers, and class 3
1309	1309	11 brewers as long as the class 3 brewer licensee does not
1310	1310	12 manufacture more than a combined 465,000 gallons of beer per
1311	1311	13 year and is not a member of or affiliated with, directly or
1312	1312	14 indirectly, a manufacturer that produces more than 465,000
1313	1313	15 gallons of beer per year to make sales to importing
1314	1314	16 distributors, distributors, retail licensees, brewers, class 1
1315	1315	17 brewers, class 2 brewers, and class 3 brewers in accordance
1316	1316	18 with the conditions set forth in paragraph (20) of subsection
1317	1317	19 (a) of Section 3-12. If the State Commission provides prior
1318	1318	20 approval, a class 3 brewer may annually transfer up to 155,000
1319	1319	21 gallons of beer manufactured by that class 3 brewer to the
1320	1320	22 premises of a licensed class 3 brewer wholly owned and
1321	1321	23 operated by the same licensee. A class 3 brewer shall
1322	1322	24 manufacture beer at the brewer's class 3 designated licensed
1323	1323	25 premises, and may sell beer as otherwise provided in this Act.
1324	1324	26 (a-1) A manufacturer which is licensed in this State to
1325	1325
1326	1326
1327	1327
1328	1328
1329	1329
1330	1330	SB1622 - 36 - LRB104 11847 RPS 21937 b
1331	1331
1332	1332
1333	1333	SB1622- 37 -LRB104 11847 RPS 21937 b SB1622 - 37 - LRB104 11847 RPS 21937 b
1334	1334	SB1622 - 37 - LRB104 11847 RPS 21937 b
1335	1335	1 make sales or deliveries of alcoholic liquor to licensed
1336	1336	2 distributors or importing distributors and which enlists
1337	1337	3 agents, representatives, or individuals acting on its behalf
1338	1338	4 who contact licensed retailers on a regular and continual
1339	1339	5 basis in this State must register those agents,
1340	1340	6 representatives, or persons acting on its behalf with the
1341	1341	7 State Commission.
1342	1342	8 Registration of agents, representatives, or persons acting
1343	1343	9 on behalf of a manufacturer is fulfilled by submitting a form
1344	1344	10 to the Commission. The form shall be developed by the
1345	1345	11 Commission and shall include the name and address of the
1346	1346	12 applicant, the name and address of the manufacturer he or she
1347	1347	13 represents, the territory or areas assigned to sell to or
1348	1348	14 discuss pricing terms of alcoholic liquor, and any other
1349	1349	15 questions deemed appropriate and necessary. All statements in
1350	1350	16 the forms required to be made by law or by rule shall be deemed
1351	1351	17 material, and any person who knowingly misstates any material
1352	1352	18 fact under oath in an application is guilty of a Class B
1353	1353	19 misdemeanor. Fraud, misrepresentation, false statements,
1354	1354	20 misleading statements, evasions, or suppression of material
1355	1355	21 facts in the securing of a registration are grounds for
1356	1356	22 suspension or revocation of the registration. The State
1357	1357	23 Commission shall post a list of registered agents on the
1358	1358	24 Commission's website.
1359	1359	25 (b) A distributor's license shall allow (i) the wholesale
1360	1360	26 purchase and storage of alcoholic liquors and sale of
1361	1361
1362	1362
1363	1363
1364	1364
1365	1365
1366	1366	SB1622 - 37 - LRB104 11847 RPS 21937 b
1367	1367
1368	1368
1369	1369	SB1622- 38 -LRB104 11847 RPS 21937 b SB1622 - 38 - LRB104 11847 RPS 21937 b
1370	1370	SB1622 - 38 - LRB104 11847 RPS 21937 b
1371	1371	1 alcoholic liquors to licensees in this State and to persons
1372	1372	2 without the State, as may be permitted by law; (ii) the sale of
1373	1373	3 beer, cider, mead, or any combination thereof to brewers,
1374	1374	4 class 1 brewers, and class 2 brewers that, pursuant to
1375	1375	5 subsection (e) of Section 6-4 of this Act, sell beer, cider,
1376	1376	6 mead, or any combination thereof to non-licensees at their
1377	1377	7 breweries; (iii) the sale of vermouth to class 1 craft
1378	1378	8 distillers and class 2 craft distillers that, pursuant to
1379	1379	9 subsection (e) of Section 6-4 of this Act, sell spirits,
1380	1380	10 vermouth, or both spirits and vermouth to non-licensees at
1381	1381	11 their distilleries; or (iv) as otherwise provided in this Act.
1382	1382	12 No person licensed as a distributor shall be granted a
1383	1383	13 non-resident dealer's license.
1384	1384	14 (c) An importing distributor's license may be issued to
1385	1385	15 and held by those only who are duly licensed distributors,
1386	1386	16 upon the filing of an application by a duly licensed
1387	1387	17 distributor, with the Commission and the Commission shall,
1388	1388	18 without the payment of any fee, immediately issue such
1389	1389	19 importing distributor's license to the applicant, which shall
1390	1390	20 allow the importation of alcoholic liquor by the licensee into
1391	1391	21 this State from any point in the United States outside this
1392	1392	22 State, and the purchase of alcoholic liquor in barrels, casks
1393	1393	23 or other bulk containers and the bottling of such alcoholic
1394	1394	24 liquors before resale thereof, but all bottles or containers
1395	1395	25 so filled shall be sealed, labeled, stamped and otherwise made
1396	1396	26 to comply with all provisions, rules and regulations governing
1397	1397
1398	1398
1399	1399
1400	1400
1401	1401
1402	1402	SB1622 - 38 - LRB104 11847 RPS 21937 b
1403	1403
1404	1404
1405	1405	SB1622- 39 -LRB104 11847 RPS 21937 b SB1622 - 39 - LRB104 11847 RPS 21937 b
1406	1406	SB1622 - 39 - LRB104 11847 RPS 21937 b
1407	1407	1 manufacturers in the preparation and bottling of alcoholic
1408	1408	2 liquors. The importing distributor's license shall permit such
1409	1409	3 licensee to purchase alcoholic liquor from Illinois licensed
1410	1410	4 non-resident dealers and foreign importers only. No person
1411	1411	5 licensed as an importing distributor shall be granted a
1412	1412	6 non-resident dealer's license.
1413	1413	7 (d) A retailer's license shall allow the licensee to sell
1414	1414	8 and offer for sale at retail, only in the premises specified in
1415	1415	9 the license, alcoholic liquor for use or consumption, but not
1416	1416	10 for resale in any form. Except as provided in Section 6-16,
1417	1417	11 6-29, or 6-29.1, nothing in this Act shall deny, limit,
1418	1418	12 remove, or restrict the ability of a holder of a retailer's
1419	1419	13 license to transfer or ship alcoholic liquor to the purchaser
1420	1420	14 for use or consumption subject to any applicable local law or
1421	1421	15 ordinance. For the purposes of this Section, "shipping" means
1422	1422	16 the movement of alcoholic liquor from a licensed retailer to a
1423	1423	17 consumer via a common carrier. Except as provided in Section
1424	1424	18 6-16, 6-29, or 6-29.1, nothing in this Act shall deny, limit,
1425	1425	19 remove, or restrict the ability of a holder of a retailer's
1426	1426	20 license to deliver alcoholic liquor to the purchaser for use
1427	1427	21 or consumption. The delivery shall be made only within 12
1428	1428	22 hours from the time the alcoholic liquor leaves the licensed
1429	1429	23 premises of the retailer for delivery. For the purposes of
1430	1430	24 this Section, "delivery" means the movement of alcoholic
1431	1431	25 liquor purchased from a licensed retailer to a consumer
1432	1432	26 through the following methods:
1433	1433
1434	1434
1435	1435
1436	1436
1437	1437
1438	1438	SB1622 - 39 - LRB104 11847 RPS 21937 b
1439	1439
1440	1440
1441	1441	SB1622- 40 -LRB104 11847 RPS 21937 b SB1622 - 40 - LRB104 11847 RPS 21937 b
1442	1442	SB1622 - 40 - LRB104 11847 RPS 21937 b
1443	1443	1 (1) delivery within licensed retailer's parking lot,
1444	1444	2 including curbside, for pickup by the consumer;
1445	1445	3 (2) delivery by an owner, officer, director,
1446	1446	4 shareholder, or employee of the licensed retailer; or
1447	1447	5 (3) delivery by a third-party contractor, independent
1448	1448	6 contractor, or agent with whom the licensed retailer has
1449	1449	7 contracted to make deliveries of alcoholic liquors.
1450	1450	8 Under subsection (1), (2), or (3), delivery shall not
1451	1451	9 include the use of common carriers.
1452	1452	10 Any retail license issued to a manufacturer shall only
1453	1453	11 permit the manufacturer to sell beer at retail on the premises
1454	1454	12 actually occupied by the manufacturer. For the purpose of
1455	1455	13 further describing the type of business conducted at a retail
1456	1456	14 licensed premises, a retailer's licensee may be designated by
1457	1457	15 the State Commission as (i) an on premise consumption
1458	1458	16 retailer, (ii) an off premise sale retailer, or (iii) a
1459	1459	17 combined on premise consumption and off premise sale retailer.
1460	1460	18 Except for a municipality with a population of more than
1461	1461	19 1,000,000 inhabitants, a home rule unit may not regulate the
1462	1462	20 delivery of alcoholic liquor inconsistent with this
1463	1463	21 subsection. This paragraph is a limitation under subsection
1464	1464	22 (i) of Section 6 of Article VII of the Illinois Constitution on
1465	1465	23 the concurrent exercise by home rule units of powers and
1466	1466	24 functions exercised by the State. A non-home rule municipality
1467	1467	25 may not regulate the delivery of alcoholic liquor inconsistent
1468	1468	26 with this subsection.
1469	1469
1470	1470
1471	1471
1472	1472
1473	1473
1474	1474	SB1622 - 40 - LRB104 11847 RPS 21937 b
1475	1475
1476	1476
1477	1477	SB1622- 41 -LRB104 11847 RPS 21937 b SB1622 - 41 - LRB104 11847 RPS 21937 b
1478	1478	SB1622 - 41 - LRB104 11847 RPS 21937 b
1479	1479	1 Notwithstanding any other provision of this subsection
1480	1480	2 (d), a retail licensee may sell alcoholic liquors to a special
1481	1481	3 event retailer licensee for resale to the extent permitted
1482	1482	4 under subsection (e).
1483	1483	5 (e) A special event retailer's license (not-for-profit)
1484	1484	6 shall permit the licensee to purchase alcoholic liquors from
1485	1485	7 an Illinois licensed distributor (unless the licensee
1486	1486	8 purchases less than $500 of alcoholic liquors for the special
1487	1487	9 event, in which case the licensee may purchase the alcoholic
1488	1488	10 liquors from a licensed retailer) and shall allow the licensee
1489	1489	11 to sell and offer for sale, at retail, alcoholic liquors for
1490	1490	12 consumption on or off the premises specified in the license
1491	1491	13 for use or consumption, but not for resale in any form and only
1492	1492	14 at the location and on the specific dates designated for the
1493	1493	15 special event in the license. An applicant for a special event
1494	1494	16 retailer license must (i) furnish with the application: (A) a
1495	1495	17 resale number issued under Section 2c of the Retailers'
1496	1496	18 Occupation Tax Act or evidence that the applicant is
1497	1497	19 registered under Section 2a of the Retailers' Occupation Tax
1498	1498	20 Act, (B) a current, valid exemption identification number
1499	1499	21 issued under Section 1g of the Retailers' Occupation Tax Act,
1500	1500	22 and a certification to the Commission that the purchase of
1501	1501	23 alcoholic liquors will be a tax-exempt purchase, or (C) a
1502	1502	24 statement that the applicant is not registered under Section
1503	1503	25 2a of the Retailers' Occupation Tax Act, does not hold a resale
1504	1504	26 number under Section 2c of the Retailers' Occupation Tax Act,
1505	1505
1506	1506
1507	1507
1508	1508
1509	1509
1510	1510	SB1622 - 41 - LRB104 11847 RPS 21937 b
1511	1511
1512	1512
1513	1513	SB1622- 42 -LRB104 11847 RPS 21937 b SB1622 - 42 - LRB104 11847 RPS 21937 b
1514	1514	SB1622 - 42 - LRB104 11847 RPS 21937 b
1515	1515	1 and does not hold an exemption number under Section 1g of the
1516	1516	2 Retailers' Occupation Tax Act, in which event the Commission
1517	1517	3 shall set forth on the special event retailer's license a
1518	1518	4 statement to that effect; (ii) submit with the application
1519	1519	5 proof satisfactory to the State Commission that the applicant
1520	1520	6 will provide dram shop liability insurance in the maximum
1521	1521	7 limits; and (iii) show proof satisfactory to the State
1522	1522	8 Commission that the applicant has obtained local authority
1523	1523	9 approval.
1524	1524	10 Nothing in this Act prohibits an Illinois licensed
1525	1525	11 distributor from offering credit or a refund for unused,
1526	1526	12 salable alcoholic liquors to a holder of a special event
1527	1527	13 retailer's license or the special event retailer's licensee
1528	1528	14 from accepting the credit or refund of alcoholic liquors at
1529	1529	15 the conclusion of the event specified in the license.
1530	1530	16 (f) A railroad license shall permit the licensee to import
1531	1531	17 alcoholic liquors into this State from any point in the United
1532	1532	18 States outside this State and to store such alcoholic liquors
1533	1533	19 in this State; to make wholesale purchases of alcoholic
1534	1534	20 liquors directly from manufacturers, foreign importers,
1535	1535	21 distributors and importing distributors from within or outside
1536	1536	22 this State; and to store such alcoholic liquors in this State;
1537	1537	23 provided that the above powers may be exercised only in
1538	1538	24 connection with the importation, purchase or storage of
1539	1539	25 alcoholic liquors to be sold or dispensed on a club, buffet,
1540	1540	26 lounge or dining car operated on an electric, gas or steam
1541	1541
1542	1542
1543	1543
1544	1544
1545	1545
1546	1546	SB1622 - 42 - LRB104 11847 RPS 21937 b
1547	1547
1548	1548
1549	1549	SB1622- 43 -LRB104 11847 RPS 21937 b SB1622 - 43 - LRB104 11847 RPS 21937 b
1550	1550	SB1622 - 43 - LRB104 11847 RPS 21937 b
1551	1551	1 railway in this State; and provided further, that railroad
1552	1552	2 licensees exercising the above powers shall be subject to all
1553	1553	3 provisions of Article VIII of this Act as applied to importing
1554	1554	4 distributors. A railroad license shall also permit the
1555	1555	5 licensee to sell or dispense alcoholic liquors on any club,
1556	1556	6 buffet, lounge or dining car operated on an electric, gas or
1557	1557	7 steam railway regularly operated by a common carrier in this
1558	1558	8 State, but shall not permit the sale for resale of any
1559	1559	9 alcoholic liquors to any licensee within this State. A license
1560	1560	10 shall be obtained for each car in which such sales are made.
1561	1561	11 (g) A boat license shall allow the sale of alcoholic
1562	1562	12 liquor in individual drinks, on any passenger boat regularly
1563	1563	13 operated as a common carrier on navigable waters in this State
1564	1564	14 or on any riverboat operated under the Illinois Gambling Act,
1565	1565	15 which boat or riverboat maintains a public dining room or
1566	1566	16 restaurant thereon.
1567	1567	17 (h) A non-beverage user's license shall allow the licensee
1568	1568	18 to purchase alcoholic liquor from a licensed manufacturer or
1569	1569	19 importing distributor, without the imposition of any tax upon
1570	1570	20 the business of such licensed manufacturer or importing
1571	1571	21 distributor as to such alcoholic liquor to be used by such
1572	1572	22 licensee solely for the non-beverage purposes set forth in
1573	1573	23 subsection (a) of Section 8-1 of this Act, and such licenses
1574	1574	24 shall be divided and classified and shall permit the purchase,
1575	1575	25 possession and use of limited and stated quantities of
1576	1576	26 alcoholic liquor as follows:
1577	1577
1578	1578
1579	1579
1580	1580
1581	1581
1582	1582	SB1622 - 43 - LRB104 11847 RPS 21937 b
1583	1583
1584	1584
1585	1585	SB1622- 44 -LRB104 11847 RPS 21937 b SB1622 - 44 - LRB104 11847 RPS 21937 b
1586	1586	SB1622 - 44 - LRB104 11847 RPS 21937 b
1587	1587	1 Class 1, not to exceed ......................... 500 gallons
1588	1588	2 Class 2, not to exceed ....................... 1,000 gallons
1589	1589	3 Class 3, not to exceed ....................... 5,000 gallons
1590	1590	4 Class 4, not to exceed ...................... 10,000 gallons
1591	1591	5 Class 5, not to exceed ....................... 50,000 gallons
1592	1592	6 (i) A wine-maker's premises license shall allow a licensee
1593	1593	7 that concurrently holds a first-class wine-maker's license to
1594	1594	8 sell and offer for sale at retail in the premises specified in
1595	1595	9 such license not more than 50,000 gallons of the first-class
1596	1596	10 wine-maker's wine that is made at the first-class wine-maker's
1597	1597	11 licensed premises per year for use or consumption, but not for
1598	1598	12 resale in any form. A wine-maker's premises license shall
1599	1599	13 allow a licensee who concurrently holds a second-class
1600	1600	14 wine-maker's license to sell and offer for sale at retail in
1601	1601	15 the premises specified in such license up to 100,000 gallons
1602	1602	16 of the second-class wine-maker's wine that is made at the
1603	1603	17 second-class wine-maker's licensed premises per year for use
1604	1604	18 or consumption but not for resale in any form. A first-class
1605	1605	19 wine-maker that concurrently holds a class 1 brewer license or
1606	1606	20 a class 1 craft distiller license shall not be eligible to hold
1607	1607	21 a wine-maker's premises license. A wine-maker's premises
1608	1608	22 license shall allow a licensee that concurrently holds a
1609	1609	23 first-class wine-maker's license or a second-class
1610	1610	24 wine-maker's license to sell and offer for sale at retail at
1611	1611	25 the premises specified in the wine-maker's premises license,
1612	1612	26 for use or consumption but not for resale in any form, any
1613	1613
1614	1614
1615	1615
1616	1616
1617	1617
1618	1618	SB1622 - 44 - LRB104 11847 RPS 21937 b
1619	1619
1620	1620
1621	1621	SB1622- 45 -LRB104 11847 RPS 21937 b SB1622 - 45 - LRB104 11847 RPS 21937 b
1622	1622	SB1622 - 45 - LRB104 11847 RPS 21937 b
1623	1623	1 beer, wine, and spirits purchased from a licensed distributor.
1624	1624	2 Upon approval from the State Commission, a wine-maker's
1625	1625	3 premises license shall allow the licensee to sell and offer
1626	1626	4 for sale at (i) the wine-maker's licensed premises and (ii) at
1627	1627	5 up to 2 additional locations for use and consumption and not
1628	1628	6 for resale. Each location shall require additional licensing
1629	1629	7 per location as specified in Section 5-3 of this Act. A
1630	1630	8 wine-maker's premises licensee shall secure liquor liability
1631	1631	9 insurance coverage in an amount at least equal to the maximum
1632	1632	10 liability amounts set forth in subsection (a) of Section 6-21
1633	1633	11 of this Act.
1634	1634	12 (j) An airplane license shall permit the licensee to
1635	1635	13 import alcoholic liquors into this State from any point in the
1636	1636	14 United States outside this State and to store such alcoholic
1637	1637	15 liquors in this State; to make wholesale purchases of
1638	1638	16 alcoholic liquors directly from manufacturers, foreign
1639	1639	17 importers, distributors and importing distributors from within
1640	1640	18 or outside this State; and to store such alcoholic liquors in
1641	1641	19 this State; provided that the above powers may be exercised
1642	1642	20 only in connection with the importation, purchase or storage
1643	1643	21 of alcoholic liquors to be sold or dispensed on an airplane;
1644	1644	22 and provided further, that airplane licensees exercising the
1645	1645	23 above powers shall be subject to all provisions of Article
1646	1646	24 VIII of this Act as applied to importing distributors. An
1647	1647	25 airplane licensee shall also permit the sale or dispensing of
1648	1648	26 alcoholic liquors on any passenger airplane regularly operated
1649	1649
1650	1650
1651	1651
1652	1652
1653	1653
1654	1654	SB1622 - 45 - LRB104 11847 RPS 21937 b
1655	1655
1656	1656
1657	1657	SB1622- 46 -LRB104 11847 RPS 21937 b SB1622 - 46 - LRB104 11847 RPS 21937 b
1658	1658	SB1622 - 46 - LRB104 11847 RPS 21937 b
1659	1659	1 by a common carrier in this State, but shall not permit the
1660	1660	2 sale for resale of any alcoholic liquors to any licensee
1661	1661	3 within this State. A single airplane license shall be required
1662	1662	4 of an airline company if liquor service is provided on board
1663	1663	5 aircraft in this State. The annual fee for such license shall
1664	1664	6 be as determined in Section 5-3.
1665	1665	7 (k) A foreign importer's license shall permit such
1666	1666	8 licensee to purchase alcoholic liquor from Illinois licensed
1667	1667	9 non-resident dealers only, and to import alcoholic liquor
1668	1668	10 other than in bulk from any point outside the United States and
1669	1669	11 to sell such alcoholic liquor to Illinois licensed importing
1670	1670	12 distributors and to no one else in Illinois; provided that (i)
1671	1671	13 the foreign importer registers with the State Commission every
1672	1672	14 brand of alcoholic liquor that it proposes to sell to Illinois
1673	1673	15 licensees during the license period, (ii) the foreign importer
1674	1674	16 complies with all of the provisions of Section 6-9 of this Act
1675	1675	17 with respect to registration of such Illinois licensees as may
1676	1676	18 be granted the right to sell such brands at wholesale, and
1677	1677	19 (iii) the foreign importer complies with the provisions of
1678	1678	20 Sections 6-5 and 6-6 of this Act to the same extent that these
1679	1679	21 provisions apply to manufacturers.
1680	1680	22 (l) (i) A broker's license shall be required of all
1681	1681	23 persons who solicit orders for, offer to sell or offer to
1682	1682	24 supply alcoholic liquor to retailers in the State of Illinois,
1683	1683	25 or who offer to retailers to ship or cause to be shipped or to
1684	1684	26 make contact with distillers, craft distillers, rectifiers,
1685	1685
1686	1686
1687	1687
1688	1688
1689	1689
1690	1690	SB1622 - 46 - LRB104 11847 RPS 21937 b
1691	1691
1692	1692
1693	1693	SB1622- 47 -LRB104 11847 RPS 21937 b SB1622 - 47 - LRB104 11847 RPS 21937 b
1694	1694	SB1622 - 47 - LRB104 11847 RPS 21937 b
1695	1695	1 brewers or manufacturers or any other party within or without
1696	1696	2 the State of Illinois in order that alcoholic liquors be
1697	1697	3 shipped to a distributor, importing distributor or foreign
1698	1698	4 importer, whether such solicitation or offer is consummated
1699	1699	5 within or without the State of Illinois.
1700	1700	6 No holder of a retailer's license issued by the Illinois
1701	1701	7 Liquor Control Commission shall purchase or receive any
1702	1702	8 alcoholic liquor, the order for which was solicited or offered
1703	1703	9 for sale to such retailer by a broker unless the broker is the
1704	1704	10 holder of a valid broker's license.
1705	1705	11 The broker shall, upon the acceptance by a retailer of the
1706	1706	12 broker's solicitation of an order or offer to sell or supply or
1707	1707	13 deliver or have delivered alcoholic liquors, promptly forward
1708	1708	14 to the Illinois Liquor Control Commission a notification of
1709	1709	15 said transaction in such form as the Commission may by
1710	1710	16 regulations prescribe.
1711	1711	17 (ii) A broker's license shall be required of a person
1712	1712	18 within this State, other than a retail licensee, who, for a fee
1713	1713	19 or commission, promotes, solicits, or accepts orders for
1714	1714	20 alcoholic liquor, for use or consumption and not for resale,
1715	1715	21 to be shipped from this State and delivered to residents
1716	1716	22 outside of this State by an express company, common carrier,
1717	1717	23 or contract carrier. This Section does not apply to any person
1718	1718	24 who promotes, solicits, or accepts orders for wine as
1719	1719	25 specifically authorized in Section 6-29 of this Act.
1720	1720	26 A broker's license under this subsection (l) shall not
1721	1721
1722	1722
1723	1723
1724	1724
1725	1725
1726	1726	SB1622 - 47 - LRB104 11847 RPS 21937 b
1727	1727
1728	1728
1729	1729	SB1622- 48 -LRB104 11847 RPS 21937 b SB1622 - 48 - LRB104 11847 RPS 21937 b
1730	1730	SB1622 - 48 - LRB104 11847 RPS 21937 b
1731	1731	1 entitle the holder to buy or sell any alcoholic liquors for his
1732	1732	2 own account or to take or deliver title to such alcoholic
1733	1733	3 liquors.
1734	1734	4 This subsection (l) shall not apply to distributors,
1735	1735	5 employees of distributors, or employees of a manufacturer who
1736	1736	6 has registered the trademark, brand or name of the alcoholic
1737	1737	7 liquor pursuant to Section 6-9 of this Act, and who regularly
1738	1738	8 sells such alcoholic liquor in the State of Illinois only to
1739	1739	9 its registrants thereunder.
1740	1740	10 Any agent, representative, or person subject to
1741	1741	11 registration pursuant to subsection (a-1) of this Section
1742	1742	12 shall not be eligible to receive a broker's license.
1743	1743	13 (m) A non-resident dealer's license shall permit such
1744	1744	14 licensee to ship into and warehouse alcoholic liquor into this
1745	1745	15 State from any point outside of this State, and to sell such
1746	1746	16 alcoholic liquor to Illinois licensed foreign importers and
1747	1747	17 importing distributors and to no one else in this State;
1748	1748	18 provided that (i) said non-resident dealer shall register with
1749	1749	19 the Illinois Liquor Control Commission each and every brand of
1750	1750	20 alcoholic liquor which it proposes to sell to Illinois
1751	1751	21 licensees during the license period, (ii) it shall comply with
1752	1752	22 all of the provisions of Section 6-9 hereof with respect to
1753	1753	23 registration of such Illinois licensees as may be granted the
1754	1754	24 right to sell such brands at wholesale by duly filing such
1755	1755	25 registration statement, thereby authorizing the non-resident
1756	1756	26 dealer to proceed to sell such brands at wholesale, and (iii)
1757	1757
1758	1758
1759	1759
1760	1760
1761	1761
1762	1762	SB1622 - 48 - LRB104 11847 RPS 21937 b
1763	1763
1764	1764
1765	1765	SB1622- 49 -LRB104 11847 RPS 21937 b SB1622 - 49 - LRB104 11847 RPS 21937 b
1766	1766	SB1622 - 49 - LRB104 11847 RPS 21937 b
1767	1767	1 the non-resident dealer shall comply with the provisions of
1768	1768	2 Sections 6-5 and 6-6 of this Act to the same extent that these
1769	1769	3 provisions apply to manufacturers. No person licensed as a
1770	1770	4 non-resident dealer shall be granted a distributor's or
1771	1771	5 importing distributor's license.
1772	1772	6 (n) A brew pub license shall allow the licensee to only (i)
1773	1773	7 manufacture up to 155,000 gallons of beer per year only on the
1774	1774	8 premises specified in the license, (ii) make sales of the beer
1775	1775	9 manufactured on the premises or, with the approval of the
1776	1776	10 Commission, beer manufactured on another brew pub licensed
1777	1777	11 premises that is wholly owned and operated by the same
1778	1778	12 licensee to importing distributors, distributors, and to
1779	1779	13 non-licensees for use and consumption, (iii) store the beer
1780	1780	14 upon the premises, (iv) sell and offer for sale at retail from
1781	1781	15 the licensed premises for off-premises consumption no more
1782	1782	16 than 155,000 gallons per year so long as such sales are only
1783	1783	17 made in-person, (v) sell and offer for sale at retail for use
1784	1784	18 and consumption on the premises specified in the license any
1785	1785	19 form of alcoholic liquor purchased from a licensed distributor
1786	1786	20 or importing distributor, (vi) with the prior approval of the
1787	1787	21 Commission, annually transfer no more than 155,000 gallons of
1788	1788	22 beer manufactured on the premises to a licensed brew pub
1789	1789	23 wholly owned and operated by the same licensee, and (vii)
1790	1790	24 notwithstanding item (i) of this subsection, brew pubs wholly
1791	1791	25 owned and operated by the same licensee may combine each
1792	1792	26 location's production limit of 155,000 gallons of beer per
1793	1793
1794	1794
1795	1795
1796	1796
1797	1797
1798	1798	SB1622 - 49 - LRB104 11847 RPS 21937 b
1799	1799
1800	1800
1801	1801	SB1622- 50 -LRB104 11847 RPS 21937 b SB1622 - 50 - LRB104 11847 RPS 21937 b
1802	1802	SB1622 - 50 - LRB104 11847 RPS 21937 b
1803	1803	1 year and allocate the aggregate total between the wholly
1804	1804	2 owned, operated, and licensed locations.
1805	1805	3 A brew pub licensee shall not under any circumstance sell
1806	1806	4 or offer for sale beer manufactured by the brew pub licensee to
1807	1807	5 retail licensees.
1808	1808	6 A person who holds a class 2 brewer license may
1809	1809	7 simultaneously hold a brew pub license if the class 2 brewer
1810	1810	8 (i) does not, under any circumstance, sell or offer for sale
1811	1811	9 beer manufactured by the class 2 brewer to retail licensees;
1812	1812	10 (ii) does not hold more than 3 brew pub licenses in this State;
1813	1813	11 (iii) does not manufacture more than a combined 3,720,000
1814	1814	12 gallons of beer per year, including the beer manufactured at
1815	1815	13 the brew pub; and (iv) is not a member of or affiliated with,
1816	1816	14 directly or indirectly, a manufacturer that produces more than
1817	1817	15 3,720,000 gallons of beer per year or any other alcoholic
1818	1818	16 liquor.
1819	1819	17 Notwithstanding any other provision of this Act, a
1820	1820	18 licensed brewer, class 2 brewer, or non-resident dealer who
1821	1821	19 before July 1, 2015 manufactured less than 3,720,000 gallons
1822	1822	20 of beer per year and held a brew pub license on or before July
1823	1823	21 1, 2015 may (i) continue to qualify for and hold that brew pub
1824	1824	22 license for the licensed premises and (ii) manufacture more
1825	1825	23 than 3,720,000 gallons of beer per year and continue to
1826	1826	24 qualify for and hold that brew pub license if that brewer,
1827	1827	25 class 2 brewer, or non-resident dealer does not simultaneously
1828	1828	26 hold a class 1 brewer license and is not a member of or
1829	1829
1830	1830
1831	1831
1832	1832
1833	1833
1834	1834	SB1622 - 50 - LRB104 11847 RPS 21937 b
1835	1835
1836	1836
1837	1837	SB1622- 51 -LRB104 11847 RPS 21937 b SB1622 - 51 - LRB104 11847 RPS 21937 b
1838	1838	SB1622 - 51 - LRB104 11847 RPS 21937 b
1839	1839	1 affiliated with, directly or indirectly, a manufacturer that
1840	1840	2 produces more than 3,720,000 gallons of beer per year or that
1841	1841	3 produces any other alcoholic liquor.
1842	1842	4 A brew pub licensee may apply for a class 3 brewer license
1843	1843	5 and, upon meeting all applicable qualifications of this Act
1844	1844	6 and relinquishing all commonly owned brew pub or retail
1845	1845	7 licenses, shall be issued a class 3 brewer license. Nothing in
1846	1846	8 this Act shall prohibit the issuance of a class 3 brewer
1847	1847	9 license if the applicant:
1848	1848	10 (1) has a valid retail license on or before May 1,
1849	1849	11 2021;
1850	1850	12 (2) has an ownership interest in at least two brew
1851	1851	13 pubs licenses on or before May 1, 2021;
1852	1852	14 (3) the brew pub licensee applies for a class 3 brewer
1853	1853	15 license on or before October 1, 2022 and relinquishes all
1854	1854	16 commonly owned brew pub licenses; and
1855	1855	17 (4) relinquishes all commonly owned retail licenses on
1856	1856	18 or before December 31, 2022.
1857	1857	19 If a brew pub licensee is issued a class 3 brewer license,
1858	1858	20 the class 3 brewer license shall expire on the same date as the
1859	1859	21 existing brew pub license and the State Commission shall not
1860	1860	22 require a class 3 brewer licensee to obtain a brewer license,
1861	1861	23 or in the alternative to pay a fee for a brewer license, until
1862	1862	24 the date the brew pub license of the applicant would have
1863	1863	25 expired.
1864	1864	26 (o) A caterer retailer license shall allow the holder to
1865	1865
1866	1866
1867	1867
1868	1868
1869	1869
1870	1870	SB1622 - 51 - LRB104 11847 RPS 21937 b
1871	1871
1872	1872
1873	1873	SB1622- 52 -LRB104 11847 RPS 21937 b SB1622 - 52 - LRB104 11847 RPS 21937 b
1874	1874	SB1622 - 52 - LRB104 11847 RPS 21937 b
1875	1875	1 serve alcoholic liquors as an incidental part of a food
1876	1876	2 service that serves prepared meals which excludes the serving
1877	1877	3 of snacks as the primary meal, either on or off-site whether
1878	1878	4 licensed or unlicensed. A caterer retailer license shall allow
1879	1879	5 the holder, a distributor, or an importing distributor to
1880	1880	6 transfer any inventory to and from the holder's retail
1881	1881	7 premises and shall allow the holder to purchase alcoholic
1882	1882	8 liquor from a distributor or importing distributor to be
1883	1883	9 delivered directly to an off-site event.
1884	1884	10 Nothing in this Act prohibits a distributor or importing
1885	1885	11 distributor from offering credit or a refund for unused,
1886	1886	12 salable beer to a holder of a caterer retailer license or a
1887	1887	13 caterer retailer licensee from accepting a credit or refund
1888	1888	14 for unused, salable beer, in the event an act of God is the
1889	1889	15 sole reason an off-site event is cancelled and if: (i) the
1890	1890	16 holder of a caterer retailer license has not transferred
1891	1891	17 alcoholic liquor from its caterer retailer premises to an
1892	1892	18 off-site location; (ii) the distributor or importing
1893	1893	19 distributor offers the credit or refund for the unused,
1894	1894	20 salable beer that it delivered to the off-site premises and
1895	1895	21 not for any unused, salable beer that the distributor or
1896	1896	22 importing distributor delivered to the caterer retailer's
1897	1897	23 premises; and (iii) the unused, salable beer would likely
1898	1898	24 spoil if transferred to the caterer retailer's premises. A
1899	1899	25 caterer retailer license shall allow the holder to transfer
1900	1900	26 any inventory from any off-site location to its caterer
1901	1901
1902	1902
1903	1903
1904	1904
1905	1905
1906	1906	SB1622 - 52 - LRB104 11847 RPS 21937 b
1907	1907
1908	1908
1909	1909	SB1622- 53 -LRB104 11847 RPS 21937 b SB1622 - 53 - LRB104 11847 RPS 21937 b
1910	1910	SB1622 - 53 - LRB104 11847 RPS 21937 b
1911	1911	1 retailer premises at the conclusion of an off-site event or
1912	1912	2 engage a distributor or importing distributor to transfer any
1913	1913	3 inventory from any off-site location to its caterer retailer
1914	1914	4 premises at the conclusion of an off-site event, provided that
1915	1915	5 the distributor or importing distributor issues bona fide
1916	1916	6 charges to the caterer retailer licensee for fuel, labor, and
1917	1917	7 delivery and the distributor or importing distributor collects
1918	1918	8 payment from the caterer retailer licensee prior to the
1919	1919	9 distributor or importing distributor transferring inventory to
1920	1920	10 the caterer retailer premises.
1921	1921	11 For purposes of this subsection (o), an "act of God" means
1922	1922	12 an unforeseeable event, such as a rain or snow storm, hail, a
1923	1923	13 flood, or a similar event, that is the sole cause of the
1924	1924	14 cancellation of an off-site, outdoor event.
1925	1925	15 (p) An auction liquor license shall allow the licensee to
1926	1926	16 sell and offer for sale at auction wine and spirits for use or
1927	1927	17 consumption, or for resale by an Illinois liquor licensee in
1928	1928	18 accordance with provisions of this Act. An auction liquor
1929	1929	19 license will be issued to a person and it will permit the
1930	1930	20 auction liquor licensee to hold the auction anywhere in the
1931	1931	21 State. An auction liquor license must be obtained for each
1932	1932	22 auction at least 14 days in advance of the auction date.
1933	1933	23 (q) A special use permit license shall allow an Illinois
1934	1934	24 licensed retailer to transfer a portion of its alcoholic
1935	1935	25 liquor inventory from its retail licensed premises to the
1936	1936	26 premises specified in the license hereby created; to purchase
1937	1937
1938	1938
1939	1939
1940	1940
1941	1941
1942	1942	SB1622 - 53 - LRB104 11847 RPS 21937 b
1943	1943
1944	1944
1945	1945	SB1622- 54 -LRB104 11847 RPS 21937 b SB1622 - 54 - LRB104 11847 RPS 21937 b
1946	1946	SB1622 - 54 - LRB104 11847 RPS 21937 b
1947	1947	1 alcoholic liquor from a distributor or importing distributor
1948	1948	2 to be delivered directly to the location specified in the
1949	1949	3 license hereby created; and to sell or offer for sale at retail
1950	1950	4 for consumption on or off the premises specified in the
1951	1951	5 license, only in the premises specified in the license hereby
1952	1952	6 created, the transferred or delivered alcoholic liquor for use
1953	1953	7 or consumption, but not for resale in any form. A special use
1954	1954	8 permit license may be granted for the following time periods:
1955	1955	9 one day or less; 2 or more days to a maximum of 15 days per
1956	1956	10 location in any 12-month period. An applicant for the special
1957	1957	11 use permit license must also submit with the application proof
1958	1958	12 satisfactory to the State Commission that the applicant will
1959	1959	13 provide dram shop liability insurance to the maximum limits
1960	1960	14 and have local authority approval.
1961	1961	15 A special use permit license shall allow the holder to
1962	1962	16 transfer any inventory from the holder's special use premises
1963	1963	17 to its retail premises at the conclusion of the special use
1964	1964	18 event or engage a distributor or importing distributor to
1965	1965	19 transfer any inventory from the holder's special use premises
1966	1966	20 to its retail premises at the conclusion of an off-site event,
1967	1967	21 provided that the distributor or importing distributor issues
1968	1968	22 bona fide charges to the special use permit licensee for fuel,
1969	1969	23 labor, and delivery and the distributor or importing
1970	1970	24 distributor collects payment from the retail licensee prior to
1971	1971	25 the distributor or importing distributor transferring
1972	1972	26 inventory to the retail premises.
1973	1973
1974	1974
1975	1975
1976	1976
1977	1977
1978	1978	SB1622 - 54 - LRB104 11847 RPS 21937 b
1979	1979
1980	1980
1981	1981	SB1622- 55 -LRB104 11847 RPS 21937 b SB1622 - 55 - LRB104 11847 RPS 21937 b
1982	1982	SB1622 - 55 - LRB104 11847 RPS 21937 b
1983	1983	1 Nothing in this Act prohibits a distributor or importing
1984	1984	2 distributor from offering credit or a refund for unused,
1985	1985	3 salable beer to a special use permit licensee or a special use
1986	1986	4 permit licensee from accepting a credit or refund for unused,
1987	1987	5 salable beer at the conclusion of the event specified in the
1988	1988	6 license if: (i) the holder of the special use permit license
1989	1989	7 has not transferred alcoholic liquor from its retail licensed
1990	1990	8 premises to the premises specified in the special use permit
1991	1991	9 license; (ii) the distributor or importing distributor offers
1992	1992	10 the credit or refund for the unused, salable beer that it
1993	1993	11 delivered to the premises specified in the special use permit
1994	1994	12 license and not for any unused, salable beer that the
1995	1995	13 distributor or importing distributor delivered to the
1996	1996	14 retailer's premises; and (iii) the unused, salable beer would
1997	1997	15 likely spoil if transferred to the retailer premises.
1998	1998	16 (r) A winery shipper's license shall allow a person with a
1999	1999	17 first-class or second-class wine manufacturer's license, a
2000	2000	18 first-class or second-class wine-maker's license, or a limited
2001	2001	19 wine manufacturer's license or who is licensed to make wine
2002	2002	20 under the laws of another state to ship wine made by that
2003	2003	21 licensee directly to a resident of this State who is 21 years
2004	2004	22 of age or older for that resident's personal use and not for
2005	2005	23 resale. Prior to receiving a winery shipper's license, an
2006	2006	24 applicant for the license must provide the Commission with a
2007	2007	25 true copy of its current license in any state in which it is
2008	2008	26 licensed as a manufacturer of wine. An applicant for a winery
2009	2009
2010	2010
2011	2011
2012	2012
2013	2013
2014	2014	SB1622 - 55 - LRB104 11847 RPS 21937 b
2015	2015
2016	2016
2017	2017	SB1622- 56 -LRB104 11847 RPS 21937 b SB1622 - 56 - LRB104 11847 RPS 21937 b
2018	2018	SB1622 - 56 - LRB104 11847 RPS 21937 b
2019	2019	1 shipper's license must also complete an application form that
2020	2020	2 provides any other information the Commission deems necessary.
2021	2021	3 The application form shall include all addresses from which
2022	2022	4 the applicant for a winery shipper's license intends to ship
2023	2023	5 wine, including the name and address of any third party,
2024	2024	6 except for a common carrier, authorized to ship wine on behalf
2025	2025	7 of the manufacturer. The application form shall include an
2026	2026	8 acknowledgement consenting to the jurisdiction of the
2027	2027	9 Commission, the Illinois Department of Revenue, and the courts
2028	2028	10 of this State concerning the enforcement of this Act and any
2029	2029	11 related laws, rules, and regulations, including authorizing
2030	2030	12 the Department of Revenue and the Commission to conduct audits
2031	2031	13 for the purpose of ensuring compliance with Public Act 95-634,
2032	2032	14 and an acknowledgement that the wine manufacturer is in
2033	2033	15 compliance with Section 6-2 of this Act. Any third party,
2034	2034	16 except for a common carrier, authorized to ship wine on behalf
2035	2035	17 of a first-class or second-class wine manufacturer's licensee,
2036	2036	18 a first-class or second-class wine-maker's licensee, a limited
2037	2037	19 wine manufacturer's licensee, or a person who is licensed to
2038	2038	20 make wine under the laws of another state shall also be
2039	2039	21 disclosed by the winery shipper's licensee, and a copy of the
2040	2040	22 written appointment of the third-party wine provider, except
2041	2041	23 for a common carrier, to the wine manufacturer shall be filed
2042	2042	24 with the State Commission as a supplement to the winery
2043	2043	25 shipper's license application or any renewal thereof. The
2044	2044	26 winery shipper's license holder shall affirm under penalty of
2045	2045
2046	2046
2047	2047
2048	2048
2049	2049
2050	2050	SB1622 - 56 - LRB104 11847 RPS 21937 b
2051	2051
2052	2052
2053	2053	SB1622- 57 -LRB104 11847 RPS 21937 b SB1622 - 57 - LRB104 11847 RPS 21937 b
2054	2054	SB1622 - 57 - LRB104 11847 RPS 21937 b
2055	2055	1 perjury, as part of the winery shipper's license application
2056	2056	2 or renewal, that he or she only ships wine, either directly or
2057	2057	3 indirectly through a third-party provider, from the licensee's
2058	2058	4 own production.
2059	2059	5 Except for a common carrier, a third-party provider
2060	2060	6 shipping wine on behalf of a winery shipper's license holder
2061	2061	7 is the agent of the winery shipper's license holder and, as
2062	2062	8 such, a winery shipper's license holder is responsible for the
2063	2063	9 acts and omissions of the third-party provider acting on
2064	2064	10 behalf of the license holder. A third-party provider, except
2065	2065	11 for a common carrier, that engages in shipping wine into
2066	2066	12 Illinois on behalf of a winery shipper's license holder shall
2067	2067	13 consent to the jurisdiction of the State Commission and the
2068	2068	14 State. Any third-party, except for a common carrier, holding
2069	2069	15 such an appointment shall, by February 1 of each calendar year
2070	2070	16 and upon request by the State Commission or the Department of
2071	2071	17 Revenue, file with the State Commission a statement detailing
2072	2072	18 each shipment made to an Illinois resident. The statement
2073	2073	19 shall include the name and address of the third-party provider
2074	2074	20 filing the statement, the time period covered by the
2075	2075	21 statement, and the following information:
2076	2076	22 (1) the name, address, and license number of the
2077	2077	23 winery shipper on whose behalf the shipment was made;
2078	2078	24 (2) the quantity of the products delivered; and
2079	2079	25 (3) the date and address of the shipment.
2080	2080	26 If the Department of Revenue or the State Commission requests
2081	2081
2082	2082
2083	2083
2084	2084
2085	2085
2086	2086	SB1622 - 57 - LRB104 11847 RPS 21937 b
2087	2087
2088	2088
2089	2089	SB1622- 58 -LRB104 11847 RPS 21937 b SB1622 - 58 - LRB104 11847 RPS 21937 b
2090	2090	SB1622 - 58 - LRB104 11847 RPS 21937 b
2091	2091	1 a statement under this paragraph, the third-party provider
2092	2092	2 must provide that statement no later than 30 days after the
2093	2093	3 request is made. Any books, records, supporting papers, and
2094	2094	4 documents containing information and data relating to a
2095	2095	5 statement under this paragraph shall be kept and preserved for
2096	2096	6 a period of 3 years, unless their destruction sooner is
2097	2097	7 authorized, in writing, by the Director of Revenue, and shall
2098	2098	8 be open and available to inspection by the Director of Revenue
2099	2099	9 or the State Commission or any duly authorized officer, agent,
2100	2100	10 or employee of the State Commission or the Department of
2101	2101	11 Revenue, at all times during business hours of the day. Any
2102	2102	12 person who violates any provision of this paragraph or any
2103	2103	13 rule of the State Commission for the administration and
2104	2104	14 enforcement of the provisions of this paragraph is guilty of a
2105	2105	15 Class C misdemeanor. In case of a continuing violation, each
2106	2106	16 day's continuance thereof shall be a separate and distinct
2107	2107	17 offense.
2108	2108	18 The State Commission shall adopt rules as soon as
2109	2109	19 practicable to implement the requirements of Public Act 99-904
2110	2110	20 and shall adopt rules prohibiting any such third-party
2111	2111	21 appointment of a third-party provider, except for a common
2112	2112	22 carrier, that has been deemed by the State Commission to have
2113	2113	23 violated the provisions of this Act with regard to any winery
2114	2114	24 shipper licensee.
2115	2115	25 A winery shipper licensee must pay to the Department of
2116	2116	26 Revenue the State liquor gallonage tax under Section 8-1 for
2117	2117
2118	2118
2119	2119
2120	2120
2121	2121
2122	2122	SB1622 - 58 - LRB104 11847 RPS 21937 b
2123	2123
2124	2124
2125	2125	SB1622- 59 -LRB104 11847 RPS 21937 b SB1622 - 59 - LRB104 11847 RPS 21937 b
2126	2126	SB1622 - 59 - LRB104 11847 RPS 21937 b
2127	2127	1 all wine that is sold by the licensee and shipped to a person
2128	2128	2 in this State. For the purposes of Section 8-1, a winery
2129	2129	3 shipper licensee shall be taxed in the same manner as a
2130	2130	4 manufacturer of wine. A licensee who is not otherwise required
2131	2131	5 to register under the Retailers' Occupation Tax Act must
2132	2132	6 register under the Use Tax Act to collect and remit use tax to
2133	2133	7 the Department of Revenue for all gallons of wine that are sold
2134	2134	8 by the licensee and shipped to persons in this State. If a
2135	2135	9 licensee fails to remit the tax imposed under this Act in
2136	2136	10 accordance with the provisions of Article VIII of this Act,
2137	2137	11 the winery shipper's license shall be revoked in accordance
2138	2138	12 with the provisions of Article VII of this Act. If a licensee
2139	2139	13 fails to properly register and remit tax under the Use Tax Act
2140	2140	14 or the Retailers' Occupation Tax Act for all wine that is sold
2141	2141	15 by the winery shipper and shipped to persons in this State, the
2142	2142	16 winery shipper's license shall be revoked in accordance with
2143	2143	17 the provisions of Article VII of this Act.
2144	2144	18 A winery shipper licensee must collect, maintain, and
2145	2145	19 submit to the Commission on a semi-annual basis the total
2146	2146	20 number of cases per resident of wine shipped to residents of
2147	2147	21 this State. A winery shipper licensed under this subsection
2148	2148	22 (r) must comply with the requirements of Section 6-29 of this
2149	2149	23 Act.
2150	2150	24 Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
2151	2151	25 Section 3-12, the State Commission may receive, respond to,
2152	2152	26 and investigate any complaint and impose any of the remedies
2153	2153
2154	2154
2155	2155
2156	2156
2157	2157
2158	2158	SB1622 - 59 - LRB104 11847 RPS 21937 b
2159	2159
2160	2160
2161	2161	SB1622- 60 -LRB104 11847 RPS 21937 b SB1622 - 60 - LRB104 11847 RPS 21937 b
2162	2162	SB1622 - 60 - LRB104 11847 RPS 21937 b
2163	2163	1 specified in paragraph (1) of subsection (a) of Section 3-12.
2164	2164	2 As used in this subsection, "third-party provider" means
2165	2165	3 any entity that provides fulfillment house services, including
2166	2166	4 warehousing, packaging, distribution, order processing, or
2167	2167	5 shipment of wine, but not the sale of wine, on behalf of a
2168	2168	6 licensed winery shipper.
2169	2169	7 (s) A craft distiller tasting permit license shall allow
2170	2170	8 an Illinois licensed class 1 craft distiller or class 2 craft
2171	2171	9 distiller to transfer a portion of its alcoholic liquor
2172	2172	10 inventory from its class 1 craft distiller or class 2 craft
2173	2173	11 distiller licensed premises to the premises specified in the
2174	2174	12 license hereby created and to conduct a sampling, only in the
2175	2175	13 premises specified in the license hereby created, of the
2176	2176	14 transferred alcoholic liquor in accordance with subsection (c)
2177	2177	15 of Section 6-31 of this Act. The transferred alcoholic liquor
2178	2178	16 may not be sold or resold in any form. An applicant for the
2179	2179	17 craft distiller tasting permit license must also submit with
2180	2180	18 the application proof satisfactory to the State Commission
2181	2181	19 that the applicant will provide dram shop liability insurance
2182	2182	20 to the maximum limits and have local authority approval.
2183	2183	21 (t) A brewer warehouse permit may be issued to the holder
2184	2184	22 of a class 1 brewer license or a class 2 brewer license. If the
2185	2185	23 holder of the permit is a class 1 brewer licensee, the brewer
2186	2186	24 warehouse permit shall allow the holder to store or warehouse
2187	2187	25 up to 930,000 gallons of tax-determined beer manufactured by
2188	2188	26 the holder of the permit at the premises specified on the
2189	2189
2190	2190
2191	2191
2192	2192
2193	2193
2194	2194	SB1622 - 60 - LRB104 11847 RPS 21937 b
2195	2195
2196	2196
2197	2197	SB1622- 61 -LRB104 11847 RPS 21937 b SB1622 - 61 - LRB104 11847 RPS 21937 b
2198	2198	SB1622 - 61 - LRB104 11847 RPS 21937 b
2199	2199	1 permit. If the holder of the permit is a class 2 brewer
2200	2200	2 licensee, the brewer warehouse permit shall allow the holder
2201	2201	3 to store or warehouse up to 3,720,000 gallons of
2202	2202	4 tax-determined beer manufactured by the holder of the permit
2203	2203	5 at the premises specified on the permit. Sales to
2204	2204	6 non-licensees are prohibited at the premises specified in the
2205	2205	7 brewer warehouse permit.
2206	2206	8 (u) A distilling pub license shall allow the licensee to
2207	2207	9 only (i) manufacture up to 5,000 gallons of spirits per year
2208	2208	10 only on the premises specified in the license, (ii) make sales
2209	2209	11 of the spirits manufactured on the premises or, with the
2210	2210	12 approval of the State Commission, spirits manufactured on
2211	2211	13 another distilling pub licensed premises that is wholly owned
2212	2212	14 and operated by the same licensee to importing distributors
2213	2213	15 and distributors and to non-licensees for use and consumption,
2214	2214	16 (iii) store the spirits upon the premises, (iv) sell and offer
2215	2215	17 for sale at retail from the licensed premises for off-premises
2216	2216	18 consumption no more than 5,000 gallons per year so long as such
2217	2217	19 sales are only made in-person, (v) sell and offer for sale at
2218	2218	20 retail for use and consumption on the premises specified in
2219	2219	21 the license any form of alcoholic liquor purchased from a
2220	2220	22 licensed distributor or importing distributor, and (vi) with
2221	2221	23 the prior approval of the State Commission, annually transfer
2222	2222	24 no more than 5,000 gallons of spirits manufactured on the
2223	2223	25 premises to a licensed distilling pub wholly owned and
2224	2224	26 operated by the same licensee.
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2235	2235	1 A distilling pub licensee shall not under any circumstance
2236	2236	2 sell or offer for sale spirits manufactured by the distilling
2237	2237	3 pub licensee to retail licensees.
2238	2238	4 A person who holds a class 2 craft distiller license may
2239	2239	5 simultaneously hold a distilling pub license if the class 2
2240	2240	6 craft distiller (i) does not, under any circumstance, sell or
2241	2241	7 offer for sale spirits manufactured by the class 2 craft
2242	2242	8 distiller to retail licensees; (ii) does not hold more than 3
2243	2243	9 distilling pub licenses in this State; (iii) does not
2244	2244	10 manufacture more than a combined 100,000 gallons of spirits
2245	2245	11 per year, including the spirits manufactured at the distilling
2246	2246	12 pub; and (iv) is not a member of or affiliated with, directly
2247	2247	13 or indirectly, a manufacturer that produces more than 100,000
2248	2248	14 gallons of spirits per year or any other alcoholic liquor.
2249	2249	15 (v) A craft distiller warehouse permit may be issued to
2250	2250	16 the holder of a class 1 craft distiller or class 2 craft
2251	2251	17 distiller license. The craft distiller warehouse permit shall
2252	2252	18 allow the holder to store or warehouse up to 500,000 gallons of
2253	2253	19 spirits manufactured by the holder of the permit at the
2254	2254	20 premises specified on the permit. Sales to non-licensees are
2255	2255	21 prohibited at the premises specified in the craft distiller
2256	2256	22 warehouse permit.
2257	2257	23 (w) A beer showcase permit license shall allow an
2258	2258	24 Illinois-licensed distributor to transfer a portion of its
2259	2259	25 beer inventory from its licensed premises to the premises
2260	2260	26 specified in the beer showcase permit license, and, in the
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2271	2271	1 case of a class 3 brewer, transfer only beer the class 3 brewer
2272	2272	2 manufactures from its licensed premises to the premises
2273	2273	3 specified in the beer showcase permit license; and to sell or
2274	2274	4 offer for sale at retail, only in the premises specified in the
2275	2275	5 beer showcase permit license, the transferred or delivered
2276	2276	6 beer for on or off premise consumption, but not for resale in
2277	2277	7 any form and to sell to non-licensees not more than 96 fluid
2278	2278	8 ounces of beer per person. A beer showcase permit license may
2279	2279	9 be granted for the following time periods: one day or less; or
2280	2280	10 2 or more days to a maximum of 15 days per location in any
2281	2281	11 12-month period. An applicant for a beer showcase permit
2282	2282	12 license must also submit with the application proof
2283	2283	13 satisfactory to the State Commission that the applicant will
2284	2284	14 provide dram shop liability insurance to the maximum limits
2285	2285	15 and have local authority approval. The State Commission shall
2286	2286	16 require the beer showcase applicant to comply with Section
2287	2287	17 6-27.1.
2288	2288	18 (Source: P.A. 101-16, eff. 6-14-19; 101-31, eff. 6-28-19;
2289	2289	19 101-81, eff. 7-12-19; 101-482, eff. 8-23-19; 101-517, eff.
2290	2290	20 8-23-19; 101-615, eff. 12-20-19; 101-668, eff. 1-1-22;
2291	2291	21 102-442, eff. 8-20-21; 102-1142, eff. 2-17-23.)
2292	2292	22 (235 ILCS 5/6-40 new)
2293	2293	23 Sec. 6-40. Consumer loyalty and reward programs.
2294	2294	24 (a) In this Section:
2295	2295	25 "Loyalty program" means a structured program used by a
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2306	2306	1 retail licensee or manufacturer with retail privileges
2307	2307	2 licensed under this Act to encourage participants to continue
2308	2308	3 to shop at the retail licensee's or manufacturer with retail
2309	2309	4 privileges's business by allowing participants access to
2310	2310	5 special pricing on products by virtue of being a member of a
2311	2311	6 bona fide loyalty program.
2312	2312	7 "Mug club" means a group organized by a retail licensee or
2313	2313	8 a manufacturer with retail privileges licensed under this Act
2314	2314	9 whose members are entitled to discounted malt, brewed, or
2315	2315	10 distilled beverages and that is designed to allow a consumer
2316	2316	11 to access rewards for purchases made on the retail licensee's
2317	2317	12 premises or manufacturer with retail privileges's premises.
2318	2318	13 "Mug club" includes, but is not limited to, point accumulation
2319	2319	14 programs, the purchase and use of specialty glassware, and the
2320	2320	15 purchase and use of non-alcoholic beverage products.
2321	2321	16 "Rewards program" means a structured program used by a
2322	2322	17 retail licensee or manufacturer with retail privileges
2323	2323	18 licensed under this Act to encourage participants to continue
2324	2324	19 to shop at the retail licensee's or manufacturer with retail
2325	2325	20 privileges licensed business by allowing participants to
2326	2326	21 accrue program benefits, in the form of points or other
2327	2327	22 accrual-based methods of reward, through the purchase of
2328	2328	23 alcoholic beverages, to be redeemed in the form of a discount
2329	2329	24 upon a subsequent transaction on alcoholic or non-alcoholic
2330	2330	25 products.
2331	2331	26 (b) A retail licensee or manufacturer with retail
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2342	2342	1 privileges may do any of the following:
2343	2343	2 (1) Operate a loyalty program, reward program, or mug
2344	2344	3 club for alcoholic beverages that the retail licensee or
2345	2345	4 manufacturer with retail privileges is licensed to sell so
2346	2346	5 long as the price of the product is not below the retail
2347	2347	6 licensee's or manufacturer with retail privileges' costs.
2348	2348	7 (2) Offer incentives to consumers for participation in
2349	2349	8 a rewards program, loyalty program, or mug club.
2350	2350	9 (3) Offer consumers discounts on its products as part
2351	2351	10 of a rewards program, loyalty program, or mug club.
2352	2352	11 (4) Offer benefits to members or participants of a
2353	2353	12 rewards program, loyalty program, or mug club that are not
2354	2354	13 offered to other consumers.
2355	2355	14 (5) Offer specialty glassware or other non-alcoholic
2356	2356	15 products for sale to members or participants in a rewards
2357	2357	16 program, loyalty program, or mug club and offer a price
2358	2358	17 discount to the owner of that glassware on additional
2359	2359	18 purchases using the glassware.
2360	2360	19 (6) Require members or participants in a rewards
2361	2361	20 program, loyalty program, or mug club to pay an annual fee
2362	2362	21 as well as a renewal fee to join or maintain membership or
2363	2363	22 continue participation in a rewards program, loyalty
2364	2364	23 program, or mug club.
2365	2365	24 (c) Membership in a mug club shall be by written
2366	2366	25 application and the licensee that organized the mug club must
2367	2367	26 maintain a written list of active members as part of its
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