Bill Text: IL HB2675 | 2019-2020 | 101st General Assembly | Chaptered

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Bill Title: Reinserts the provisions of the engrossed bill with the following changes. Provides that a craft distiller warehouse permit may be issued to the holder of a class 1 craft distiller or class 2 craft distiller (instead of a craft distiller premises) license. Provides that a distributor's license shall allow the sale of vermouth to class 1 craft distillers and class 2 craft distillers that sell spirits, vermouth, or both spirits and vermouth to non-licensees at their distilleries. Adds an immediate effective date.

Spectrum: Slight Partisan Bill (Republican 12-7)

Status: (Passed) 2019-08-23 - Public Act . . . . . . . . . 101-0482 [HB2675 Detail]

Download: Illinois-2019-HB2675-Chaptered.html

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Public Act 101-0482
HB2675 Enrolled LRB101 07840 RPS 52894 b
AN ACT concerning liquor.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Liquor Control Act of 1934 is amended by
changing Sections 1-3.40, 3-12, 5-1, 5-3, and 6-4 as follows:
(235 ILCS 5/1-3.40)
Sec. 1-3.40. Manufacturer class license holder.
"Manufacturer class license holder" means any holder of a
Manufacturer's license as provided in Section 5-1 of this Act.
The Manufacturer's licenses are: a Class 1. Distiller, a Class
2. Rectifier, a Class 3. Brewer, a Class 4. First Class Wine
Manufacturer, a Class 5. Second Class Wine Manufacturer, a
Class 6. First Class Winemaker, a Class 7. Second Class
Winemaker, a Class 8. Limited Wine Manufacturer, a Class 9.
Class 1 Craft Distiller, a Class 10. Class 2 Craft Distiller,
and a Class 11. Class 1 Brewer, and a Class 12. Class 2 Brewer,
10. Craft Brewer and any future Manufacturer's licenses
established by law.
(Source: P.A. 99-282, eff. 8-5-15; 99-642, eff. 7-28-16.)
(235 ILCS 5/3-12)
Sec. 3-12. Powers and duties of State Commission.
(a) The State Commission shall have the following powers,

functions, and duties:
(1) To receive applications and to issue licenses to
manufacturers, foreign importers, importing distributors,
distributors, non-resident dealers, on premise consumption
retailers, off premise sale retailers, special event
retailer licensees, special use permit licenses, auction
liquor licenses, brew pubs, caterer retailers,
non-beverage users, railroads, including owners and
lessees of sleeping, dining and cafe cars, airplanes,
boats, brokers, and wine maker's premises licensees in
accordance with the provisions of this Act, and to suspend
or revoke such licenses upon the State Commission's
determination, upon notice after hearing, that a licensee
has violated any provision of this Act or any rule or
regulation issued pursuant thereto and in effect for 30
days prior to such violation. Except in the case of an
action taken pursuant to a violation of Section 6-3, 6-5,
or 6-9, any action by the State Commission to suspend or
revoke a licensee's license may be limited to the license
for the specific premises where the violation occurred. An
action for a violation of this Act shall be commenced by
the State Commission within 2 years after the date the
State Commission becomes aware of the violation.
In lieu of suspending or revoking a license, the
commission may impose a fine, upon the State Commission's
determination and notice after hearing, that a licensee has

violated any provision of this Act or any rule or
regulation issued pursuant thereto and in effect for 30
days prior to such violation.
For the purpose of this paragraph (1), when determining
multiple violations for the sale of alcohol to a person
under the age of 21, a second or subsequent violation for
the sale of alcohol to a person under the age of 21 shall
only be considered if it was committed within 5 years after
the date when a prior violation for the sale of alcohol to
a person under the age of 21 was committed.
The fine imposed under this paragraph may not exceed
$500 for each violation. Each day that the activity, which
gave rise to the original fine, continues is a separate
violation. The maximum fine that may be levied against any
licensee, for the period of the license, shall not exceed
$20,000. The maximum penalty that may be imposed on a
licensee for selling a bottle of alcoholic liquor with a
foreign object in it or serving from a bottle of alcoholic
liquor with a foreign object in it shall be the destruction
of that bottle of alcoholic liquor for the first 10 bottles
so sold or served from by the licensee. For the eleventh
bottle of alcoholic liquor and for each third bottle
thereafter sold or served from by the licensee with a
foreign object in it, the maximum penalty that may be
imposed on the licensee is the destruction of the bottle of
alcoholic liquor and a fine of up to $50.

Any notice issued by the State Commission to a licensee
for a violation of this Act or any notice with respect to
settlement or offer in compromise shall include the field
report, photographs, and any other supporting
documentation necessary to reasonably inform the licensee
of the nature and extent of the violation or the conduct
alleged to have occurred. The failure to include such
required documentation shall result in the dismissal of the
action.
(2) To adopt such rules and regulations consistent with
the provisions of this Act which shall be necessary to
carry on its functions and duties to the end that the
health, safety and welfare of the People of the State of
Illinois shall be protected and temperance in the
consumption of alcoholic liquors shall be fostered and
promoted and to distribute copies of such rules and
regulations to all licensees affected thereby.
(3) To call upon other administrative departments of
the State, county and municipal governments, county and
city police departments and upon prosecuting officers for
such information and assistance as it deems necessary in
the performance of its duties.
(4) To recommend to local commissioners rules and
regulations, not inconsistent with the law, for the
distribution and sale of alcoholic liquors throughout the
State.

(5) To inspect, or cause to be inspected, any premises
in this State where alcoholic liquors are manufactured,
distributed, warehoused, or sold. Nothing in this Act
authorizes an agent of the Commission to inspect private
areas within the premises without reasonable suspicion or a
warrant during an inspection. "Private areas" include, but
are not limited to, safes, personal property, and closed
desks.
(5.1) Upon receipt of a complaint or upon having
knowledge that any person is engaged in business as a
manufacturer, importing distributor, distributor, or
retailer without a license or valid license, to notify the
local liquor authority, file a complaint with the State's
Attorney's Office of the county where the incident
occurred, or initiate an investigation with the
appropriate law enforcement officials.
(5.2) To issue a cease and desist notice to persons
shipping alcoholic liquor into this State from a point
outside of this State if the shipment is in violation of
this Act.
(5.3) To receive complaints from licensees, local
officials, law enforcement agencies, organizations, and
persons stating that any licensee has been or is violating
any provision of this Act or the rules and regulations
issued pursuant to this Act. Such complaints shall be in
writing, signed and sworn to by the person making the

complaint, and shall state with specificity the facts in
relation to the alleged violation. If the Commission has
reasonable grounds to believe that the complaint
substantially alleges a violation of this Act or rules and
regulations adopted pursuant to this Act, it shall conduct
an investigation. If, after conducting an investigation,
the Commission is satisfied that the alleged violation did
occur, it shall proceed with disciplinary action against
the licensee as provided in this Act.
(6) To hear and determine appeals from orders of a
local commission in accordance with the provisions of this
Act, as hereinafter set forth. Hearings under this
subsection shall be held in Springfield or Chicago, at
whichever location is the more convenient for the majority
of persons who are parties to the hearing.
(7) The commission shall establish uniform systems of
accounts to be kept by all retail licensees having more
than 4 employees, and for this purpose the commission may
classify all retail licensees having more than 4 employees
and establish a uniform system of accounts for each class
and prescribe the manner in which such accounts shall be
kept. The commission may also prescribe the forms of
accounts to be kept by all retail licensees having more
than 4 employees, including but not limited to accounts of
earnings and expenses and any distribution, payment, or
other distribution of earnings or assets, and any other

forms, records and memoranda which in the judgment of the
commission may be necessary or appropriate to carry out any
of the provisions of this Act, including but not limited to
such forms, records and memoranda as will readily and
accurately disclose at all times the beneficial ownership
of such retail licensed business. The accounts, forms,
records and memoranda shall be available at all reasonable
times for inspection by authorized representatives of the
State Commission or by any local liquor control
commissioner or his or her authorized representative. The
commission, may, from time to time, alter, amend or repeal,
in whole or in part, any uniform system of accounts, or the
form and manner of keeping accounts.
(8) In the conduct of any hearing authorized to be held
by the commission, to appoint, at the commission's
discretion, hearing officers to conduct hearings involving
complex issues or issues that will require a protracted
period of time to resolve, to examine, or cause to be
examined, under oath, any licensee, and to examine or cause
to be examined the books and records of such licensee; to
hear testimony and take proof material for its information
in the discharge of its duties hereunder; to administer or
cause to be administered oaths; for any such purpose to
issue subpoena or subpoenas to require the attendance of
witnesses and the production of books, which shall be
effective in any part of this State, and to adopt rules to

implement its powers under this paragraph (8).
Any circuit court may by order duly entered, require
the attendance of witnesses and the production of relevant
books subpoenaed by the State Commission and the court may
compel obedience to its order by proceedings for contempt.
(9) To investigate the administration of laws in
relation to alcoholic liquors in this and other states and
any foreign countries, and to recommend from time to time
to the Governor and through him or her to the legislature
of this State, such amendments to this Act, if any, as it
may think desirable and as will serve to further the
general broad purposes contained in Section 1-2 hereof.
(10) To adopt such rules and regulations consistent
with the provisions of this Act which shall be necessary
for the control, sale or disposition of alcoholic liquor
damaged as a result of an accident, wreck, flood, fire or
other similar occurrence.
(11) To develop industry educational programs related
to responsible serving and selling, particularly in the
areas of overserving consumers and illegal underage
purchasing and consumption of alcoholic beverages.
(11.1) To license persons providing education and
training to alcohol beverage sellers and servers for
mandatory and non-mandatory training under the Beverage
Alcohol Sellers and Servers Education and Training
(BASSET) programs and to develop and administer a public

awareness program in Illinois to reduce or eliminate the
illegal purchase and consumption of alcoholic beverage
products by persons under the age of 21. Application for a
license shall be made on forms provided by the State
Commission.
(12) To develop and maintain a repository of license
and regulatory information.
(13) (Blank).
(14) On or before April 30, 2008 and every 2 years
thereafter, the Commission shall present a written report
to the Governor and the General Assembly that shall be
based on a study of the impact of Public Act 95-634 on the
business of soliciting, selling, and shipping wine from
inside and outside of this State directly to residents of
this State. As part of its report, the Commission shall
provide all of the following information:
(A) The amount of State excise and sales tax
revenues generated.
(B) The amount of licensing fees received.
(C) The number of cases of wine shipped from inside
and outside of this State directly to residents of this
State.
(D) The number of alcohol compliance operations
conducted.
(E) The number of winery shipper's licenses
issued.

(F) The number of each of the following: reported
violations; cease and desist notices issued by the
Commission; notices of violations issued by the
Commission and to the Department of Revenue; and
notices and complaints of violations to law
enforcement officials, including, without limitation,
the Illinois Attorney General and the U.S. Department
of Treasury's Alcohol and Tobacco Tax and Trade Bureau.
(15) As a means to reduce the underage consumption of
alcoholic liquors, the Commission shall conduct alcohol
compliance operations to investigate whether businesses
that are soliciting, selling, and shipping wine from inside
or outside of this State directly to residents of this
State are licensed by this State or are selling or
attempting to sell wine to persons under 21 years of age in
violation of this Act.
(16) The Commission shall, in addition to notifying any
appropriate law enforcement agency, submit notices of
complaints or violations of Sections 6-29 and 6-29.1 by
persons who do not hold a winery shipper's license under
this Act to the Illinois Attorney General and to the U.S.
Department of Treasury's Alcohol and Tobacco Tax and Trade
Bureau.
(17)(A) A person licensed to make wine under the laws
of another state who has a winery shipper's license under
this Act and annually produces less than 25,000 gallons of

wine or a person who has a first-class or second-class wine
manufacturer's license, a first-class or second-class
wine-maker's license, or a limited wine manufacturer's
license under this Act and annually produces less than
25,000 gallons of wine may make application to the
Commission for a self-distribution exemption to allow the
sale of not more than 5,000 gallons of the exemption
holder's wine to retail licensees per year.
(B) In the application, which shall be sworn under
penalty of perjury, such person shall state (1) the date it
was established; (2) its volume of production and sales for
each year since its establishment; (3) its efforts to
establish distributor relationships; (4) that a
self-distribution exemption is necessary to facilitate the
marketing of its wine; and (5) that it will comply with the
liquor and revenue laws of the United States, this State,
and any other state where it is licensed.
(C) The Commission shall approve the application for a
self-distribution exemption if such person: (1) is in
compliance with State revenue and liquor laws; (2) is not a
member of any affiliated group that produces more than
25,000 gallons of wine per annum or produces any other
alcoholic liquor; (3) will not annually produce for sale
more than 25,000 gallons of wine; and (4) will not annually
sell more than 5,000 gallons of its wine to retail
licensees.

(D) A self-distribution exemption holder shall
annually certify to the Commission its production of wine
in the previous 12 months and its anticipated production
and sales for the next 12 months. The Commission may fine,
suspend, or revoke a self-distribution exemption after a
hearing if it finds that the exemption holder has made a
material misrepresentation in its application, violated a
revenue or liquor law of Illinois, exceeded production of
25,000 gallons of wine in any calendar year, or become part
of an affiliated group producing more than 25,000 gallons
of wine or any other alcoholic liquor.
(E) Except in hearings for violations of this Act or
Public Act 95-634 or a bona fide investigation by duly
sworn law enforcement officials, the Commission, or its
agents, the Commission shall maintain the production and
sales information of a self-distribution exemption holder
as confidential and shall not release such information to
any person.
(F) The Commission shall issue regulations governing
self-distribution exemptions consistent with this Section
and this Act.
(G) Nothing in this paragraph subsection (17) shall
prohibit a self-distribution exemption holder from
entering into or simultaneously having a distribution
agreement with a licensed Illinois distributor.
(H) It is the intent of this paragraph subsection (17)

to promote and continue orderly markets. The General
Assembly finds that in order to preserve Illinois'
regulatory distribution system it is necessary to create an
exception for smaller makers of wine as their wines are
frequently adjusted in varietals, mixes, vintages, and
taste to find and create market niches sometimes too small
for distributor or importing distributor business
strategies. Limited self-distribution rights will afford
and allow smaller makers of wine access to the marketplace
in order to develop a customer base without impairing the
integrity of the 3-tier system.
(18)(A) A class 1 brewer licensee, who must also be
either a licensed brewer or licensed non-resident dealer
and annually manufacture less than 930,000 gallons of beer,
may make application to the State Commission for a
self-distribution exemption to allow the sale of not more
than 232,500 gallons of the exemption holder's beer per
year to retail licensees and to brewers, class 1 brewers,
and class 2 brewers that, pursuant to subsection (e) of
Section 6-4 of this Act, sell beer, cider, or both beer and
cider to non-licensees at their breweries.
(B) In the application, which shall be sworn under
penalty of perjury, the class 1 brewer licensee shall state
(1) the date it was established; (2) its volume of beer
manufactured and sold for each year since its
establishment; (3) its efforts to establish distributor

relationships; (4) that a self-distribution exemption is
necessary to facilitate the marketing of its beer; and (5)
that it will comply with the alcoholic beverage and revenue
laws of the United States, this State, and any other state
where it is licensed.
(C) Any application submitted shall be posted on the
State Commission's website at least 45 days prior to action
by the State Commission. The State Commission shall approve
the application for a self-distribution exemption if the
class 1 brewer licensee: (1) is in compliance with the
State, revenue, and alcoholic beverage laws; (2) is not a
member of any affiliated group that manufactures more than
930,000 gallons of beer per annum or produces any other
alcoholic beverages; (3) shall not annually manufacture
for sale more than 930,000 gallons of beer; (4) shall not
annually sell more than 232,500 gallons of its beer to
retail licensees or to brewers, class 1 brewers, and class
2 brewers that, pursuant to subsection (e) of Section 6-4
of this Act, sell beer, cider, or both beer and cider to
non-licensees at their breweries; and (5) has relinquished
any brew pub license held by the licensee, including any
ownership interest it held in the licensed brew pub.
(D) A self-distribution exemption holder shall
annually certify to the State Commission its manufacture of
beer during the previous 12 months and its anticipated
manufacture and sales of beer for the next 12 months. The

State Commission may fine, suspend, or revoke a
self-distribution exemption after a hearing if it finds
that the exemption holder has made a material
misrepresentation in its application, violated a revenue
or alcoholic beverage law of Illinois, exceeded the
manufacture of 930,000 gallons of beer in any calendar year
or became part of an affiliated group manufacturing more
than 930,000 gallons of beer or any other alcoholic
beverage.
(E) The State Commission shall issue rules and
regulations governing self-distribution exemptions
consistent with this Act.
(F) Nothing in this paragraph (18) shall prohibit a
self-distribution exemption holder from entering into or
simultaneously having a distribution agreement with a
licensed Illinois importing distributor or a distributor.
If a self-distribution exemption holder enters into a
distribution agreement and has assigned distribution
rights to an importing distributor or distributor, then the
self-distribution exemption holder's distribution rights
in the assigned territories shall cease in a reasonable
time not to exceed 60 days.
(G) It is the intent of this paragraph (18) to promote
and continue orderly markets. The General Assembly finds
that in order to preserve Illinois' regulatory
distribution system, it is necessary to create an exception

for smaller manufacturers in order to afford and allow such
smaller manufacturers of beer access to the marketplace in
order to develop a customer base without impairing the
integrity of the 3-tier system.
(19)(A) A class 1 craft distiller licensee or a
non-resident dealer who manufactures less than 50,000
gallons of distilled spirits per year may make application
to the State Commission for a self-distribution exemption
to allow the sale of not more than 5,000 gallons of the
exemption holder's spirits to retail licensees per year.
(B) In the application, which shall be sworn under
penalty of perjury, the class 1 craft distiller licensee or
non-resident dealer shall state (1) the date it was
established; (2) its volume of spirits manufactured and
sold for each year since its establishment; (3) its efforts
to establish distributor relationships; (4) that a
self-distribution exemption is necessary to facilitate the
marketing of its spirits; and (5) that it will comply with
the alcoholic beverage and revenue laws of the United
States, this State, and any other state where it is
licensed.
(C) Any application submitted shall be posted on the
State Commission's website at least 45 days prior to action
by the State Commission. The State Commission shall approve
the application for a self-distribution exemption if the
applicant: (1) is in compliance with State revenue and

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

and continue orderly markets. The General Assembly finds
that in order to preserve Illinois' regulatory
distribution system, it is necessary to create an exception
for smaller manufacturers in order to afford and allow such
smaller manufacturers of spirits access to the marketplace
in order to develop a customer base without impairing the
integrity of the 3-tier system.
(b) On or before April 30, 1999, the Commission shall
present a written report to the Governor and the General
Assembly that shall be based on a study of the impact of Public
Act 90-739 on the business of soliciting, selling, and shipping
alcoholic liquor from outside of this State directly to
residents of this State.
As part of its report, the Commission shall provide the
following information:
(i) the amount of State excise and sales tax revenues
generated as a result of Public Act 90-739;
(ii) the amount of licensing fees received as a result
of Public Act 90-739;
(iii) the number of reported violations, the number of
cease and desist notices issued by the Commission, the
number of notices of violations issued to the Department of
Revenue, and the number of notices and complaints of
violations to law enforcement officials.
(Source: P.A. 99-78, eff. 7-20-15; 99-448, eff. 8-24-15;
100-134, eff. 8-18-17; 100-201, eff. 8-18-17; 100-816, eff.

8-13-18; 100-1012, eff. 8-21-18; 100-1050, eff. 8-23-18;
revised 10-24-18.)
(235 ILCS 5/5-1) (from Ch. 43, par. 115)
Sec. 5-1. Licenses issued by the Illinois Liquor Control
Commission shall be of the following classes:
(a) Manufacturer's license - Class 1. Distiller, Class 2.
Rectifier, Class 3. Brewer, Class 4. First Class Wine
Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
First Class Winemaker, Class 7. Second Class Winemaker, Class
8. Limited Wine Manufacturer, Class 9. Class 1 Craft Distiller,
Class 10. Class 2 Craft Distiller, Class 11. Class 1 Brewer,
Class 12 11. Class 2 Brewer,
(b) Distributor's license,
(c) Importing Distributor's license,
(d) Retailer's license,
(e) Special Event Retailer's license (not-for-profit),
(f) Railroad license,
(g) Boat license,
(h) Non-Beverage User's license,
(i) Wine-maker's premises license,
(j) Airplane license,
(k) Foreign importer's license,
(l) Broker's license,
(m) Non-resident dealer's license,
(n) Brew Pub license,

(o) Auction liquor license,
(p) Caterer retailer license,
(q) Special use permit license,
(r) Winery shipper's license,
(s) Craft distiller tasting permit,
(t) Brewer warehouse permit, .
(u) Distilling pub license,
(v) Craft distiller warehouse permit.
No person, firm, partnership, corporation, or other legal
business entity that is engaged in the manufacturing of wine
may concurrently obtain and hold a wine-maker's license and a
wine manufacturer's license.
(a) A manufacturer's license shall allow the manufacture,
importation in bulk, storage, distribution and sale of
alcoholic liquor to persons without the State, as may be
permitted by law and to licensees in this State as follows:
Class 1. A Distiller may make sales and deliveries of
alcoholic liquor to distillers, rectifiers, importing
distributors, distributors and non-beverage users and to no
other licensees.
Class 2. A Rectifier, who is not a distiller, as defined
herein, may make sales and deliveries of alcoholic liquor to
rectifiers, importing distributors, distributors, retailers
and non-beverage users and to no other licensees.
Class 3. A Brewer may make sales and deliveries of beer to
importing distributors and distributors and may make sales as

authorized under subsection (e) of Section 6-4 of this Act.
Class 4. A first class wine-manufacturer may make sales and
deliveries of up to 50,000 gallons of wine to manufacturers,
importing distributors and distributors, and to no other
licensees.
Class 5. A second class Wine manufacturer may make sales
and deliveries of more than 50,000 gallons of wine to
manufacturers, importing distributors and distributors and to
no other licensees.
Class 6. A first-class wine-maker's license shall allow the
manufacture of up to 50,000 gallons of wine per year, and the
storage and sale of such wine to distributors in the State and
to persons without the State, as may be permitted by law. A
person who, prior to June 1, 2008 (the effective date of Public
Act 95-634), is a holder of a first-class wine-maker's license
and annually produces more than 25,000 gallons of its own wine
and who distributes its wine to licensed retailers shall cease
this practice on or before July 1, 2008 in compliance with
Public Act 95-634.
Class 7. A second-class wine-maker's license shall allow
the manufacture of between 50,000 and 150,000 gallons of wine
per year, and the storage and sale of such wine to distributors
in this State and to persons without the State, as may be
permitted by law. A person who, prior to June 1, 2008 (the
effective date of Public Act 95-634), is a holder of a
second-class wine-maker's license and annually produces more

than 25,000 gallons of its own wine and who distributes its
wine to licensed retailers shall cease this practice on or
before July 1, 2008 in compliance with Public Act 95-634.
Class 8. A limited wine-manufacturer may make sales and
deliveries not to exceed 40,000 gallons of wine per year to
distributors, and to non-licensees in accordance with the
provisions of this Act.
Class 9. A class 1 craft distiller license, which may only
be issued to a licensed distiller or licensed non-resident
dealer, shall allow the manufacture of up to 50,000 gallons of
spirits per year provided that the class 1 craft distiller
licensee does not manufacture more than a combined 50,000
gallons of spirits per year and is not a member of or
affiliated with, directly or indirectly, a manufacturer that
produces more than 50,000 gallons of spirits per year or any
other alcoholic liquor. A class 1 craft distiller licensee may
make sales and deliveries to importing distributors and
distributors and to retail licensees in accordance with the
conditions set forth in paragraph (19) of subsection (a) of
Section 3-12 of this Act. However, the aggregate amount of
spirits sold to non-licensees and sold or delivered to retail
licensees may not exceed 5,000 gallons per year.
A class 1 craft distiller licensee may sell up to 5,000
gallons of such spirits to non-licensees to the extent
permitted by any exemption approved by the State Commission
pursuant to Section 6-4 of this Act. A class 1 craft distiller

license holder may store such spirits at a non-contiguous
licensed location, but at no time shall a class 1 craft
distiller license holder directly or indirectly produce in the
aggregate more than 50,000 gallons of spirits per year.
A class 1 craft distiller licensee may hold more than one
class 1 craft distiller's license. However, a class 1 craft
distiller that holds more than one class 1 craft distiller
license shall not manufacture, in the aggregate, more than
50,000 gallons of spirits by distillation per year and shall
not sell, in the aggregate, more than 5,000 gallons of such
spirits to non-licensees in accordance with an exemption
approved by the State Commission pursuant to Section 6-4 of
this Act.
Class 10. A class 2 craft distiller license, which may only
be issued to a licensed distiller or licensed non-resident
dealer, shall allow the manufacture of up to 100,000 gallons of
spirits per year provided that the class 2 craft distiller
licensee does not manufacture more than a combined 100,000
gallons of spirits per year and is not a member of or
affiliated with, directly or indirectly, a manufacturer that
produces more than 100,000 gallons of spirits per year or any
other alcoholic liquor. A class 2 craft distiller licensee may
make sales and deliveries to importing distributors and
distributors, but shall not make sales or deliveries to any
other licensee. If the State Commission provides prior
approval, a class 2 craft distiller licensee may annually

transfer up to 100,000 gallons of spirits manufactured by that
class 2 craft distiller licensee to the premises of a licensed
class 2 craft distiller wholly owned and operated by the same
licensee. A class 2 craft distiller may transfer spirits to a
distilling pub wholly owned and operated by the class 2 craft
distiller subject to the following limitations and
restrictions: (i) the transfer shall not annually exceed more
than 5,000 gallons; (ii) the annual amount transferred shall
reduce the distilling pub's annual permitted production limit;
(iii) all spirits transferred shall be subject to Article VIII
of this Act; (iv) a written record shall be maintained by the
distiller and distilling pub specifying the amount, date of
delivery, and receipt of the product by the distilling pub; and
(v) the distilling pub shall be located no farther than 80
miles from the class 2 craft distiller's licensed location.
A class 2 craft distiller shall, prior to transferring
spirits to a distilling pub wholly owned by the class 2 craft
distiller, furnish a written notice to the State Commission of
intent to transfer spirits setting forth the name and address
of the distilling pub and shall annually submit to the State
Commission a verified report identifying the total gallons of
spirits transferred to the distilling pub wholly owned by the
class 2 craft distiller.
A class 2 craft distiller license holder may store such
spirits at a non-contiguous licensed location, but at no time
shall a class 2 craft distiller license holder directly or

indirectly produce in the aggregate more than 100,000 gallons
of spirits per year.
A craft distiller license shall allow the manufacture of up to
100,000 gallons of spirits by distillation per year and the
storage of such spirits. If a craft distiller licensee,
including a craft distiller licensee who holds more than one
craft distiller license, is not affiliated with any other
manufacturer of spirits, then the craft distiller licensee may
sell such spirits to distributors in this State and up to 2,500
gallons of such spirits to non-licensees to the extent
permitted by any exemption approved by the Commission pursuant
to Section 6-4 of this Act. A craft distiller license holder
may store such spirits at a non-contiguous licensed location,
but at no time shall a craft distiller license holder directly
or indirectly produce in the aggregate more than 100,000
gallons of spirits per year.
A craft distiller licensee may hold more than one craft
distiller's license. However, a craft distiller that holds more
than one craft distiller license shall not manufacture, in the
aggregate, more than 100,000 gallons of spirits by distillation
per year and shall not sell, in the aggregate, more than 2,500
gallons of such spirits to non-licensees in accordance with an
exemption approved by the State Commission pursuant to Section
6-4 of this Act.
Any craft distiller licensed under this Act who on July 28,
2010 (the effective date of Public Act 96-1367) was licensed as

a distiller and manufactured no more spirits than permitted by
this Section shall not be required to pay the initial licensing
fee.
Class 11 10. A class 1 brewer license, which may only be
issued to a licensed brewer or licensed non-resident dealer,
shall allow the manufacture of up to 930,000 gallons of beer
per year provided that the class 1 brewer licensee does not
manufacture more than a combined 930,000 gallons of beer per
year and is not a member of or affiliated with, directly or
indirectly, a manufacturer that produces more than 930,000
gallons of beer per year or any other alcoholic liquor. A class
1 brewer licensee may make sales and deliveries to importing
distributors and distributors and to retail licensees in
accordance with the conditions set forth in paragraph (18) of
subsection (a) of Section 3-12 of this Act. If the State
Commission provides prior approval, a class 1 brewer may
annually transfer up to 930,000 gallons of beer manufactured by
that class 1 brewer to the premises of a licensed class 1
brewer wholly owned and operated by the same licensee.
Class 12 11. A class 2 brewer license, which may only be
issued to a licensed brewer or licensed non-resident dealer,
shall allow the manufacture of up to 3,720,000 gallons of beer
per year provided that the class 2 brewer licensee does not
manufacture more than a combined 3,720,000 gallons of beer per
year and is not a member of or affiliated with, directly or
indirectly, a manufacturer that produces more than 3,720,000

gallons of beer per year or any other alcoholic liquor. A class
2 brewer licensee may make sales and deliveries to importing
distributors and distributors, but shall not make sales or
deliveries to any other licensee. If the State Commission
provides prior approval, a class 2 brewer licensee may annually
transfer up to 3,720,000 gallons of beer manufactured by that
class 2 brewer licensee to the premises of a licensed class 2
brewer wholly owned and operated by the same licensee.
A class 2 brewer may transfer beer to a brew pub wholly
owned and operated by the class 2 brewer subject to the
following limitations and restrictions: (i) the transfer shall
not annually exceed more than 31,000 gallons; (ii) the annual
amount transferred shall reduce the brew pub's annual permitted
production limit; (iii) all beer transferred shall be subject
to Article VIII of this Act; (iv) a written record shall be
maintained by the brewer and brew pub specifying the amount,
date of delivery, and receipt of the product by the brew pub;
and (v) the brew pub shall be located no farther than 80 miles
from the class 2 brewer's licensed location.
A class 2 brewer shall, prior to transferring beer to a
brew pub wholly owned by the class 2 brewer, furnish a written
notice to the State Commission of intent to transfer beer
setting forth the name and address of the brew pub and shall
annually submit to the State Commission a verified report
identifying the total gallons of beer transferred to the brew
pub wholly owned by the class 2 brewer.

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

liquors to licensees in this State and to persons without the
State, as may be permitted by law; (ii) , and the sale of beer,
cider, or both beer and cider to brewers, class 1 brewers, and
class 2 brewers that, pursuant to subsection (e) of Section 6-4
of this Act, sell beer, cider, or both beer and cider to
non-licensees at their breweries; and (iii) the sale of
vermouth to class 1 craft distillers and class 2 craft
distillers that, pursuant to subsection (e) of Section 6-4 of
this Act, sell spirits, vermouth, or both spirits and vermouth
to non-licensees at their distilleries. No person licensed as a
distributor shall be granted a non-resident dealer's license.
(c) An importing distributor's license may be issued to and
held by those only who are duly licensed distributors, upon the
filing of an application by a duly licensed distributor, with
the Commission and the Commission shall, without the payment of
any fee, immediately issue such importing distributor's
license to the applicant, which shall allow the importation of
alcoholic liquor by the licensee into this State from any point
in the United States outside this State, and the purchase of
alcoholic liquor in barrels, casks or other bulk containers and
the bottling of such alcoholic liquors before resale thereof,
but all bottles or containers so filled shall be sealed,
labeled, stamped and otherwise made to comply with all
provisions, rules and regulations governing manufacturers in
the preparation and bottling of alcoholic liquors. The
importing distributor's license shall permit such licensee to

purchase alcoholic liquor from Illinois licensed non-resident
dealers and foreign importers only. No person licensed as an
importing distributor shall be granted a non-resident dealer's
license.
(d) A retailer's license shall allow the licensee to sell
and offer for sale at retail, only in the premises specified in
the license, alcoholic liquor for use or consumption, but not
for resale in any form. Nothing in Public Act 95-634 shall
deny, limit, remove, or restrict the ability of a holder of a
retailer's license to transfer, deliver, or ship alcoholic
liquor to the purchaser for use or consumption subject to any
applicable local law or ordinance. Any retail license issued to
a manufacturer shall only permit the manufacturer to sell beer
at retail on the premises actually occupied by the
manufacturer. For the purpose of further describing the type of
business conducted at a retail licensed premises, a retailer's
licensee may be designated by the State Commission as (i) an on
premise consumption retailer, (ii) an off premise sale
retailer, or (iii) a combined on premise consumption and off
premise sale retailer.
Notwithstanding any other provision of this subsection
(d), a retail licensee may sell alcoholic liquors to a special
event retailer licensee for resale to the extent permitted
under subsection (e).
(e) A special event retailer's license (not-for-profit)
shall permit the licensee to purchase alcoholic liquors from an

Illinois licensed distributor (unless the licensee purchases
less than $500 of alcoholic liquors for the special event, in
which case the licensee may purchase the alcoholic liquors from
a licensed retailer) and shall allow the licensee to sell and
offer for sale, at retail, alcoholic liquors 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. An applicant for a special event retailer
license must (i) furnish with the application: (A) a resale
number issued under Section 2c of the Retailers' Occupation Tax
Act or evidence that the applicant is registered under Section
2a of the Retailers' Occupation Tax Act, (B) a current, valid
exemption identification number issued under Section 1g of the
Retailers' Occupation Tax Act, and a certification to the
Commission that the purchase of alcoholic liquors will be a
tax-exempt purchase, or (C) a statement that the applicant is
not registered under Section 2a of the Retailers' Occupation
Tax Act, does not hold a resale number under Section 2c of the
Retailers' Occupation Tax Act, and does not hold an exemption
number under Section 1g of the Retailers' Occupation Tax Act,
in which event the Commission shall set forth on the special
event retailer's license a statement to that effect; (ii)
submit with the application proof satisfactory to the State
Commission that the applicant will provide dram shop liability
insurance in the maximum limits; and (iii) show proof
satisfactory to the State Commission that the applicant has

obtained local authority approval.
Nothing in this Act prohibits an Illinois licensed
distributor from offering credit or a refund for unused,
salable alcoholic liquors to a holder of a special event
retailer's license or from the special event retailer's
licensee from accepting the credit or refund of alcoholic
liquors at the conclusion of the event specified in the
license.
(f) A railroad license shall permit the licensee to import
alcoholic liquors into this State from any point in the United
States outside this State and to store such alcoholic liquors
in this State; to make wholesale purchases of alcoholic liquors
directly from manufacturers, foreign importers, distributors
and importing distributors from within or outside this State;
and to store such alcoholic liquors in this State; provided
that the above powers may be exercised only in connection with
the importation, purchase or storage of alcoholic liquors to be
sold or dispensed on a club, buffet, lounge or dining car
operated on an electric, gas or steam railway in this State;
and provided further, that railroad licensees exercising the
above powers shall be subject to all provisions of Article VIII
of this Act as applied to importing distributors. A railroad
license shall also permit the licensee to sell or dispense
alcoholic liquors on any club, buffet, lounge or dining car
operated on an electric, gas or steam railway regularly
operated by a common carrier in this State, but shall not

permit the sale for resale of any alcoholic liquors to any
licensee within this State. A license shall be obtained for
each car in which such sales are made.
(g) A boat license shall allow the sale of alcoholic liquor
in individual drinks, on any passenger boat regularly operated
as a common carrier on navigable waters in this State or on any
riverboat operated under the Riverboat Gambling Act, which boat
or riverboat maintains a public dining room or restaurant
thereon.
(h) A non-beverage user's license shall allow the licensee
to purchase alcoholic liquor from a licensed manufacturer or
importing distributor, without the imposition of any tax upon
the business of such licensed manufacturer or importing
distributor as to such alcoholic liquor to be used by such
licensee solely for the non-beverage purposes set forth in
subsection (a) of Section 8-1 of this Act, and such licenses
shall be divided and classified and shall permit the purchase,
possession and use of limited and stated quantities of
alcoholic liquor as follows:
Class 1, not to exceed ......................... 500 gallons
Class 2, not to exceed ....................... 1,000 gallons
Class 3, not to exceed ....................... 5,000 gallons
Class 4, not to exceed ...................... 10,000 gallons
Class 5, not to exceed ....................... 50,000 gallons
(i) A wine-maker's premises license shall allow a licensee
that concurrently holds a first-class wine-maker's license to

sell and offer for sale at retail in the premises specified in
such license not more than 50,000 gallons of the first-class
wine-maker's wine that is made at the first-class wine-maker's
licensed premises per year for use or consumption, but not for
resale in any form. A wine-maker's premises license shall allow
a licensee who concurrently holds a second-class wine-maker's
license to sell and offer for sale at retail in the premises
specified in such license up to 100,000 gallons of the
second-class wine-maker's wine that is made at the second-class
wine-maker's licensed premises per year for use or consumption
but not for resale in any form. A wine-maker's premises license
shall allow a licensee that concurrently holds a first-class
wine-maker's license or a second-class wine-maker's license to
sell and offer for sale at retail at the premises specified in
the wine-maker's premises license, for use or consumption but
not for resale in any form, any beer, wine, and spirits
purchased from a licensed distributor. Upon approval from the
State Commission, a wine-maker's premises license shall allow
the licensee to sell and offer for sale at (i) the wine-maker's
licensed premises and (ii) at up to 2 additional locations for
use and consumption and not for resale. Each location shall
require additional licensing per location as specified in
Section 5-3 of this Act. A wine-maker's premises licensee shall
secure liquor liability insurance coverage in an amount at
least equal to the maximum liability amounts set forth in
subsection (a) of Section 6-21 of this Act.

(j) An airplane license shall permit the licensee to import
alcoholic liquors into this State from any point in the United
States outside this State and to store such alcoholic liquors
in this State; to make wholesale purchases of alcoholic liquors
directly from manufacturers, foreign importers, distributors
and importing distributors from within or outside this State;
and to store such alcoholic liquors in this State; provided
that the above powers may be exercised only in connection with
the importation, purchase or storage of alcoholic liquors to be
sold or dispensed on an airplane; and provided further, that
airplane licensees exercising the above powers shall be subject
to all provisions of Article VIII of this Act as applied to
importing distributors. An airplane licensee shall also permit
the sale or dispensing of alcoholic liquors on any passenger
airplane regularly operated by a common carrier in this State,
but shall not permit the sale for resale of any alcoholic
liquors to any licensee within this State. A single airplane
license shall be required of an airline company if liquor
service is provided on board aircraft in this State. The annual
fee for such license shall be as determined in Section 5-3.
(k) A foreign importer's license shall permit such licensee
to purchase alcoholic liquor from Illinois licensed
non-resident dealers only, and to import alcoholic liquor other
than in bulk from any point outside the United States and to
sell such alcoholic liquor to Illinois licensed importing
distributors and to no one else in Illinois; provided that (i)

the foreign importer registers with the State Commission every
brand of alcoholic liquor that it proposes to sell to Illinois
licensees during the license period, (ii) the foreign importer
complies with all of the provisions of Section 6-9 of this Act
with respect to registration of such Illinois licensees as may
be granted the right to sell such brands at wholesale, and
(iii) the foreign importer complies with the provisions of
Sections 6-5 and 6-6 of this Act to the same extent that these
provisions apply to manufacturers.
(l) (i) A broker's license shall be required of all persons
who solicit orders for, offer to sell or offer to supply
alcoholic liquor to retailers in the State of Illinois, or who
offer to retailers to ship or cause to be shipped or to make
contact with distillers, rectifiers, brewers or manufacturers
or any other party within or without the State of Illinois in
order that alcoholic liquors be shipped to a distributor,
importing distributor or foreign importer, whether such
solicitation or offer is consummated within or without the
State of Illinois.
No holder of a retailer's license issued by the Illinois
Liquor Control Commission shall purchase or receive any
alcoholic liquor, the order for which was solicited or offered
for sale to such retailer by a broker unless the broker is the
holder of a valid broker's license.
The broker shall, upon the acceptance by a retailer of the
broker's solicitation of an order or offer to sell or supply or

deliver or have delivered alcoholic liquors, promptly forward
to the Illinois Liquor Control Commission a notification of
said transaction in such form as the Commission may by
regulations prescribe.
(ii) A broker's license shall be required of a person
within this State, other than a retail licensee, who, for a fee
or commission, promotes, solicits, or accepts orders for
alcoholic liquor, for use or consumption and not for resale, to
be shipped from this State and delivered to residents outside
of this State by an express company, common carrier, or
contract carrier. This Section does not apply to any person who
promotes, solicits, or accepts orders for wine as specifically
authorized in Section 6-29 of this Act.
A broker's license under this subsection (l) shall not
entitle the holder to buy or sell any alcoholic liquors for his
own account or to take or deliver title to such alcoholic
liquors.
This subsection (l) shall not apply to distributors,
employees of distributors, or employees of a manufacturer who
has registered the trademark, brand or name of the alcoholic
liquor pursuant to Section 6-9 of this Act, and who regularly
sells such alcoholic liquor in the State of Illinois only to
its registrants thereunder.
Any agent, representative, or person subject to
registration pursuant to subsection (a-1) of this Section shall
not be eligible to receive a broker's license.

(m) A non-resident dealer's license shall permit such
licensee to ship into and warehouse alcoholic liquor into this
State from any point outside of this State, and to sell such
alcoholic liquor to Illinois licensed foreign importers and
importing distributors and to no one else in this State;
provided that (i) said non-resident dealer shall register with
the Illinois Liquor Control Commission each and every brand of
alcoholic liquor which it proposes to sell to Illinois
licensees during the license period, (ii) it shall comply with
all of the provisions of Section 6-9 hereof with respect to
registration of such Illinois licensees as may be granted the
right to sell such brands at wholesale by duly filing such
registration statement, thereby authorizing the non-resident
dealer to proceed to sell such brands at wholesale, and (iii)
the non-resident dealer shall comply with the provisions of
Sections 6-5 and 6-6 of this Act to the same extent that these
provisions apply to manufacturers. No person licensed as a
non-resident dealer shall be granted a distributor's or
importing distributor's license.
(n) A brew pub license shall allow the licensee to only (i)
manufacture up to 155,000 gallons of beer per year only on the
premises specified in the license, (ii) make sales of the beer
manufactured on the premises or, with the approval of the
Commission, beer manufactured on another brew pub licensed
premises that is wholly owned and operated by the same licensee
to importing distributors, distributors, and to non-licensees

for use and consumption, (iii) store the beer upon the
premises, (iv) sell and offer for sale at retail from the
licensed premises for off-premises consumption no more than
155,000 gallons per year so long as such sales are only made
in-person, (v) sell and offer for sale at retail for use and
consumption on the premises specified in the license any form
of alcoholic liquor purchased from a licensed distributor or
importing distributor, and (vi) with the prior approval of the
Commission, annually transfer no more than 155,000 gallons of
beer manufactured on the premises to a licensed brew pub wholly
owned and operated by the same licensee.
A brew pub licensee shall not under any circumstance sell
or offer for sale beer manufactured by the brew pub licensee to
retail licensees.
A person who holds a class 2 brewer license may
simultaneously hold a brew pub license if the class 2 brewer
(i) does not, under any circumstance, sell or offer for sale
beer manufactured by the class 2 brewer to retail licensees;
(ii) does not hold more than 3 brew pub licenses in this State;
(iii) does not manufacture more than a combined 3,720,000
gallons of beer per year, including the beer manufactured at
the brew pub; and (iv) is not a member of or affiliated with,
directly or indirectly, a manufacturer that produces more than
3,720,000 gallons of beer per year or any other alcoholic
liquor.
Notwithstanding any other provision of this Act, a licensed

brewer, class 2 brewer, or non-resident dealer who before July
1, 2015 manufactured less than 3,720,000 gallons of beer per
year and held a brew pub license on or before July 1, 2015 may
(i) continue to qualify for and hold that brew pub license for
the licensed premises and (ii) manufacture more than 3,720,000
gallons of beer per year and continue to qualify for and hold
that brew pub license if that brewer, class 2 brewer, or
non-resident dealer does not simultaneously hold a class 1
brewer license and is not a member of or affiliated with,
directly or indirectly, a manufacturer that produces more than
3,720,000 gallons of beer per year or that produces any other
alcoholic liquor.
(o) A caterer retailer license shall allow the holder to
serve alcoholic liquors as an incidental part of a food service
that serves prepared meals which excludes the serving of snacks
as the primary meal, either on or off-site whether licensed or
unlicensed.
(p) An auction liquor license shall allow the licensee to
sell and offer for sale at auction wine and spirits for use or
consumption, or for resale by an Illinois liquor licensee in
accordance with provisions of this Act. An auction liquor
license will be issued to a person and it will permit the
auction liquor licensee to hold the auction anywhere in the
State. An auction liquor license must be obtained for each
auction at least 14 days in advance of the auction date.
(q) A special use permit license shall allow an Illinois

licensed retailer to transfer a portion of its alcoholic liquor
inventory from its retail licensed premises to the premises
specified in the license hereby created, and to sell or offer
for sale at retail, only in the premises specified in the
license hereby created, the transferred alcoholic liquor for
use or consumption, but not for resale in any form. A special
use permit license may be granted for the following time
periods: one day or less; 2 or more days to a maximum of 15 days
per location in any 12-month period. An applicant for the
special use permit license must also submit with the
application proof satisfactory to the State Commission that the
applicant will provide dram shop liability insurance to the
maximum limits and have local authority approval.
(r) A winery shipper's license shall allow a person with a
first-class or second-class wine manufacturer's license, a
first-class or second-class wine-maker's license, or a limited
wine manufacturer's license or who is licensed to make wine
under the laws of another state to ship wine made by that
licensee directly to a resident of this State who is 21 years
of age or older for that resident's personal use and not for
resale. Prior to receiving a winery shipper's license, an
applicant for the license must provide the Commission with a
true copy of its current license in any state in which it is
licensed as a manufacturer of wine. An applicant for a winery
shipper's license must also complete an application form that
provides any other information the Commission deems necessary.

The application form shall include all addresses from which the
applicant for a winery shipper's license intends to ship wine,
including the name and address of any third party, except for a
common carrier, authorized to ship wine on behalf of the
manufacturer. The application form shall include an
acknowledgement consenting to the jurisdiction of the
Commission, the Illinois Department of Revenue, and the courts
of this State concerning the enforcement of this Act and any
related laws, rules, and regulations, including authorizing
the Department of Revenue and the Commission to conduct audits
for the purpose of ensuring compliance with Public Act 95-634,
and an acknowledgement that the wine manufacturer is in
compliance with Section 6-2 of this Act. Any third party,
except for a common carrier, authorized to ship wine on behalf
of a first-class or second-class wine manufacturer's licensee,
a first-class or second-class wine-maker's licensee, a limited
wine manufacturer's licensee, or a person who is licensed to
make wine under the laws of another state shall also be
disclosed by the winery shipper's licensee, and a copy of the
written appointment of the third-party wine provider, except
for a common carrier, to the wine manufacturer shall be filed
with the State Commission as a supplement to the winery
shipper's license application or any renewal thereof. The
winery shipper's license holder shall affirm under penalty of
perjury, as part of the winery shipper's license application or
renewal, that he or she only ships wine, either directly or

indirectly through a third-party provider, from the licensee's
own production.
Except for a common carrier, a third-party provider
shipping wine on behalf of a winery shipper's license holder is
the agent of the winery shipper's license holder and, as such,
a winery shipper's license holder is responsible for the acts
and omissions of the third-party provider acting on behalf of
the license holder. A third-party provider, except for a common
carrier, that engages in shipping wine into Illinois on behalf
of a winery shipper's license holder shall consent to the
jurisdiction of the State Commission and the State. Any
third-party, except for a common carrier, holding such an
appointment shall, by February 1 of each calendar year and upon
request by the State Commission or the Department of Revenue,
file with the State Commission a statement detailing each
shipment made to an Illinois resident. The statement shall
include the name and address of the third-party provider filing
the statement, the time period covered by the statement, and
the following information:
(1) the name, address, and license number of the winery
shipper on whose behalf the shipment was made;
(2) the quantity of the products delivered; and
(3) the date and address of the shipment.
If the Department of Revenue or the State Commission requests a
statement under this paragraph, the third-party provider must
provide that statement no later than 30 days after the request

is made. Any books, records, supporting papers, and documents
containing information and data relating to a statement under
this paragraph shall be kept and preserved for a period of 3
years, unless their destruction sooner is authorized, in
writing, by the Director of Revenue, and shall be open and
available to inspection by the Director of Revenue or the State
Commission or any duly authorized officer, agent, or employee
of the State Commission or the Department of Revenue, at all
times during business hours of the day. Any person who violates
any provision of this paragraph or any rule of the State
Commission for the administration and enforcement of the
provisions of this paragraph is guilty of a Class C
misdemeanor. In case of a continuing violation, each day's
continuance thereof shall be a separate and distinct offense.
The State Commission shall adopt rules as soon as
practicable to implement the requirements of Public Act 99-904
and shall adopt rules prohibiting any such third-party
appointment of a third-party provider, except for a common
carrier, that has been deemed by the State Commission to have
violated the provisions of this Act with regard to any winery
shipper licensee.
A winery shipper licensee must pay to the Department of
Revenue the State liquor gallonage tax under Section 8-1 for
all wine that is sold by the licensee and shipped to a person
in this State. For the purposes of Section 8-1, a winery
shipper licensee shall be taxed in the same manner as a

manufacturer of wine. A licensee who is not otherwise required
to register under the Retailers' Occupation Tax Act must
register under the Use Tax Act to collect and remit use tax to
the Department of Revenue for all gallons of wine that are sold
by the licensee and shipped to persons in this State. If a
licensee fails to remit the tax imposed under this Act in
accordance with the provisions of Article VIII of this Act, the
winery shipper's license shall be revoked in accordance with
the provisions of Article VII of this Act. If a licensee fails
to properly register and remit tax under the Use Tax Act or the
Retailers' Occupation Tax Act for all wine that is sold by the
winery shipper and shipped to persons in this State, the winery
shipper's license shall be revoked in accordance with the
provisions of Article VII of this Act.
A winery shipper licensee must collect, maintain, and
submit to the Commission on a semi-annual basis the total
number of cases per resident of wine shipped to residents of
this State. A winery shipper licensed under this subsection (r)
must comply with the requirements of Section 6-29 of this Act.
Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
Section 3-12, the State Commission may receive, respond to, and
investigate any complaint and impose any of the remedies
specified in paragraph (1) of subsection (a) of Section 3-12.
As used in this subsection, "third-party provider" means
any entity that provides fulfillment house services, including
warehousing, packaging, distribution, order processing, or

shipment of wine, but not the sale of wine, on behalf of a
licensed winery shipper.
(s) A craft distiller tasting permit license shall allow an
Illinois licensed class 1 craft distiller or class 2 craft
distiller to transfer a portion of its alcoholic liquor
inventory from its class 1 craft distiller or class 2 craft
distiller licensed premises to the premises specified in the
license hereby created and to conduct a sampling, only in the
premises specified in the license hereby created, of the
transferred alcoholic liquor in accordance with subsection (c)
of Section 6-31 of this Act. The transferred alcoholic liquor
may not be sold or resold in any form. An applicant for the
craft distiller tasting permit license must also submit with
the application proof satisfactory to the State Commission that
the applicant will provide dram shop liability insurance to the
maximum limits and have local authority approval.
(t) A brewer warehouse permit may be issued to the holder
of a class 1 brewer license or a class 2 brewer license. If the
holder of the permit is a class 1 brewer licensee, the brewer
warehouse permit shall allow the holder to store or warehouse
up to 930,000 gallons of tax-determined beer manufactured by
the holder of the permit at the premises specified on the
permit. If the holder of the permit is a class 2 brewer
licensee, the brewer warehouse permit shall allow the holder to
store or warehouse up to 3,720,000 gallons of tax-determined
beer manufactured by the holder of the permit at the premises

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

craft distiller (i) does not, under any circumstance, sell or
offer for sale spirits manufactured by the class 2 craft
distiller to retail licensees; (ii) does not hold more than 3
distilling pub licenses in this State; (iii) does not
manufacture more than a combined 100,000 gallons of spirits per
year, including the spirits manufactured at the distilling pub;
and (iv) is not a member of or affiliated with, directly or
indirectly, a manufacturer that produces more than 100,000
gallons of spirits per year or any other alcoholic liquor.
(v) A craft distiller warehouse permit may be issued to the
holder of a class 1 craft distiller or class 2 craft distiller
license. The craft distiller warehouse permit shall allow the
holder to store or warehouse up to 500,000 gallons of spirits
manufactured by the holder of the permit at the premises
specified on the permit. Sales to non-licensees are prohibited
at the premises specified in the craft distiller warehouse
permit.
(Source: P.A. 99-448, eff. 8-24-15; 99-642, eff. 7-28-16;
99-800, eff. 8-12-16; 99-902, eff. 8-26-16; 99-904, eff.
1-1-17; 100-17, eff. 6-30-17; 100-201, eff. 8-18-17; 100-816,
eff. 8-13-18; 100-885, eff. 8-14-18; 100-1050, eff. 8-23-18;
revised 10-2-18.)
(235 ILCS 5/5-3) (from Ch. 43, par. 118)
Sec. 5-3. License fees. Except as otherwise provided
herein, at the time application is made to the State Commission

for a license of any class, the applicant shall pay to the
State Commission the fee hereinafter provided for the kind of
license applied for.
The fee for licenses issued by the State Commission shall
be as follows:
Online Initial
renewal license
or
non-online
renewal
For a manufacturer's license:
Class 1. Distiller ................. $4,000 $5,000
Class 2. Rectifier ................. 4,000 5,000
Class 3. Brewer .................... 1,200 1,500
Class 4. First-class Wine
Manufacturer ................... 750 900
Class 5. Second-class
Wine Manufacturer .............. 1,500 1,750
Class 6. First-class wine-maker .... 750 900
Class 7. Second-class wine-maker ... 1,500 1,750
Class 8. Limited Wine
Manufacturer.................... 250 350
Class 9. Class 1 Craft Distiller.... 50 75
Class 10. Class 2 Craft Distiller... 75 100
Class 11 10. Class 1 Brewer.......... 50 75
Class 12 11. Class 2 Brewer.......... 75 100

For a Brew Pub License.............. 1,200 1,500
For a Distilling Pub License........ 1,200 1,500
For a caterer retailer's license.... 350 500
For a foreign importer's license ... 25 25
For an importing distributor's
license......................... 25 25
For a distributor's license
(11,250,000 gallons
or over)........................ 1,450 2,200
For a distributor's license
(over 4,500,000 gallons, but
under 11,250,000 gallons)....... 950 1,450
For a distributor's license
(4,500,000 gallons or under).... 300 450
For a non-resident dealer's license
(500,000 gallons or over) ...... 1,200 1,500
For a non-resident dealer's license
(under 500,000 gallons) ........ 250 350
For a wine-maker's premises
license ........................ 250 500
For a winery shipper's license
(under 250,000 gallons)......... 200 350
For a winery shipper's license
(250,000 or over, but
under 500,000 gallons).......... 750 1,000
For a winery shipper's license

(500,000 gallons or over)....... 1,200 1,500
For a wine-maker's premises license,
second location ................ 500 1,000
For a wine-maker's premises license,
third location ................. 500 1,000
For a retailer's license ........... 600 750
For a special event retailer's
license, (not-for-profit) ...... 25 25
For a special use permit license,
one day only ................... 100 150
2 days or more ................. 150 250
For a railroad license ............. 100 150
For a boat license ................. 500 1,000
For an airplane license, times the
licensee's maximum number of
aircraft in flight, serving
liquor over the State at any
given time, which either
originate, terminate, or make
an intermediate stop in
the State....................... 100 150
For a non-beverage user's license:
Class 1 ........................ 24 24
Class 2 ........................ 60 60
Class 3 ........................ 120 120
Class 4 ........................ 240 240

Class 5 ........................ 600 600
For a broker's license ............. 750 1,000
For an auction liquor license ...... 100 150
For a homebrewer special
event permit.................... 25 25
For a craft distiller
tasting permit.................. 25 25
For a BASSET trainer license........ 300 350
For a tasting representative
license......................... 200 300
For a brewer warehouse permit....... 25 25
For a craft distiller
warehouse permit............... 25 25
Fees collected under this Section shall be paid into the
Dram Shop Fund. On and after July 1, 2003 and until June 30,
2016, of the funds received for a retailer's license, in
addition to the first $175, an additional $75 shall be paid
into the Dram Shop Fund, and $250 shall be paid into the
General Revenue Fund. On and after June 30, 2016, one-half of
the funds received for a retailer's license shall be paid into
the Dram Shop Fund and one-half of the funds received for a
retailer's license shall be paid into the General Revenue Fund.
Beginning June 30, 1990 and on June 30 of each subsequent year
through June 29, 2003, any balance over $5,000,000 remaining in
the Dram Shop Fund shall be credited to State liquor licensees
and applied against their fees for State liquor licenses for

the following year. The amount credited to each licensee shall
be a proportion of the balance in the Dram Fund that is the
same as the proportion of the license fee paid by the licensee
under this Section for the period in which the balance was
accumulated to the aggregate fees paid by all licensees during
that period.
No fee shall be paid for licenses issued by the State
Commission to the following non-beverage users:
(a) Hospitals, sanitariums, or clinics when their use
of alcoholic liquor is exclusively medicinal, mechanical
or scientific.
(b) Universities, colleges of learning or schools when
their use of alcoholic liquor is exclusively medicinal,
mechanical or scientific.
(c) Laboratories when their use is exclusively for the
purpose of scientific research.
(Source: P.A. 99-448, eff. 8-24-15; 99-902, eff. 8-26-16;
99-904, eff. 8-26-16; 100-201, eff. 8-18-17; 100-816, eff.
8-13-18.)
(235 ILCS 5/6-4) (from Ch. 43, par. 121)
Sec. 6-4. (a) No person licensed by any licensing authority
as a distiller, or a wine manufacturer, or any subsidiary or
affiliate thereof, or any officer, associate, member, partner,
representative, employee, agent or shareholder owning more
than 5% of the outstanding shares of such person shall be

issued an importing distributor's or distributor's license,
nor shall any person licensed by any licensing authority as an
importing distributor, distributor or retailer, or any
subsidiary or affiliate thereof, or any officer or associate,
member, partner, representative, employee, agent or
shareholder owning more than 5% of the outstanding shares of
such person be issued a distiller's license, a craft
distiller's license, or a wine manufacturer's license; and no
person or persons licensed as a distiller, or class 1 craft
distiller, or class 2 craft distiller by any licensing
authority shall have any interest, directly or indirectly, with
such distributor or importing distributor.
However, an importing distributor or distributor, which on
January 1, 1985 is owned by a brewer, or any subsidiary or
affiliate thereof or any officer, associate, member, partner,
representative, employee, agent or shareholder owning more
than 5% of the outstanding shares of the importing distributor
or distributor referred to in this paragraph, may own or
acquire an ownership interest of more than 5% of the
outstanding shares of a wine manufacturer and be issued a wine
manufacturer's license by any licensing authority.
(b) The foregoing provisions shall not apply to any person
licensed by any licensing authority as a distiller or wine
manufacturer, or to any subsidiary or affiliate of any
distiller or wine manufacturer who shall have been heretofore
licensed by the State Commission as either an importing

distributor or distributor during the annual licensing period
expiring June 30, 1947, and shall actually have made sales
regularly to retailers.
(c) Provided, however, that in such instances where a
distributor's or importing distributor's license has been
issued to any distiller or wine manufacturer or to any
subsidiary or affiliate of any distiller or wine manufacturer
who has, during the licensing period ending June 30, 1947, sold
or distributed as such licensed distributor or importing
distributor alcoholic liquors and wines to retailers, such
distiller or wine manufacturer or any subsidiary or affiliate
of any distiller or wine manufacturer holding such
distributor's or importing distributor's license may continue
to sell or distribute to retailers such alcoholic liquors and
wines which are manufactured, distilled, processed or marketed
by distillers and wine manufacturers whose products it sold or
distributed to retailers during the whole or any part of its
licensing periods; and such additional brands and additional
products may be added to the line of such distributor or
importing distributor, provided, that such brands and such
products were not sold or distributed by any distributor or
importing distributor licensed by the State Commission during
the licensing period ending June 30, 1947, but can not sell or
distribute to retailers any other alcoholic liquors or wines.
(d) It shall be unlawful for any distiller licensed
anywhere to have any stock ownership or interest in any

distributor's or importing distributor's license wherein any
other person has an interest therein who is not a distiller and
does not own more than 5% of any stock in any distillery.
Nothing herein contained shall apply to such distillers or
their subsidiaries or affiliates, who had a distributor's or
importing distributor's license during the licensing period
ending June 30, 1947, which license was owned in whole by such
distiller, or subsidiaries or affiliates of such distiller.
(e) Any person licensed as a brewer, class 1 brewer, or
class 2 brewer shall be permitted to sell on the licensed
premises to non-licensees for on or off-premises consumption
for the premises in which he or she actually conducts such
business: (i) beer manufactured by the brewer, class 1 brewer,
or class 2 brewer; (ii) beer manufactured by any other brewer,
class 1 brewer, or class 2 brewer; and (iii) cider. Such sales
shall be limited to on-premises, in-person sales only, for
lawful consumption on or off premises. Such authorization shall
be considered a privilege granted by the brewer license and,
other than a manufacturer of beer as stated above, no
manufacturer or distributor or importing distributor,
excluding airplane licensees exercising powers provided in
paragraph (i) of Section 5-1 of this Act, or any subsidiary or
affiliate thereof, or any officer, associate, member, partner,
representative, employee or agent, or shareholder shall be
issued a retailer's license, nor shall any person having a
retailer's license, excluding airplane licensees exercising

powers provided in paragraph (i) of Section 5-1 of this Act, or
any subsidiary or affiliate thereof, or any officer, associate,
member, partner, representative or agent, or shareholder be
issued a manufacturer's license or importing distributor's
license.
A manufacturer of beer that imports or transfers beer into
this State must comply with Sections 6-8 and 8-1 of this Act.
A person who holds a class 1 or class 2 brewer license and
is authorized by this Section to sell beer to non-licensees
shall not sell beer to non-licensees from more than 3 total
brewer or commonly owned brew pub licensed locations in this
State. The class 1 or class 2 brewer shall designate to the
State Commission the brewer or brew pub locations from which it
will sell beer to non-licensees.
A person licensed as a class 1 craft distiller or a class 2
craft distiller, including a person who holds more than one
class 1 craft distiller or class 2 craft distiller license, not
affiliated with any other person manufacturing spirits may be
authorized by the State Commission to sell (1) up to 5,000
2,500 gallons of spirits produced by the person to
non-licensees for on or off-premises consumption for the
premises in which he or she actually conducts business
permitting only the retail sale of spirits manufactured at such
premises and (2) vermouth purchased through a licensed
distributor for on-premises consumption. Such sales shall be
limited to on-premises, in-person sales only, for lawful

consumption on or off premises, and such authorization shall be
considered a privilege granted by the class 1 craft distiller
or class 2 craft distiller license. A class 1 craft distiller
or class 2 craft distiller licensed for retail sale shall
secure liquor liability insurance coverage in an amount at
least equal to the maximum liability amounts set forth in
subsection (a) of Section 6-21 of this Act.
A class 1 craft distiller or class 2 craft distiller
license holder shall not deliver any alcoholic liquor to any
non-licensee off the licensed premises. A class 1 craft
distiller or class 2 craft distiller shall affirm in its annual
craft distiller's license application that it does not produce
more than 50,000 or 100,000 gallons of distilled spirits
annually, whichever is applicable, and that the craft distiller
does not sell more than 5,000 2,500 gallons of spirits to
non-licensees for on or off-premises consumption. In the
application, which shall be sworn under penalty of perjury, the
class 1 craft distiller or class 2 craft distiller shall state
the volume of production and sales for each year since the
class 1 craft distiller's or class 2 craft distiller's
establishment.
A person who holds a class 1 craft distiller or class 2
craft distiller license and is authorized by this Section to
sell spirits to non-licensees shall not sell spirits to
non-licensees from more than 3 total distillery or commonly
owned distilling pub licensed locations in this State. The

class 1 craft distiller or class 2 craft distiller shall
designate to the State Commission the distillery or distilling
pub locations from which it will sell spirits to non-licensees.
(f) (Blank).
(g) Notwithstanding any of the foregoing prohibitions, a
limited wine manufacturer may sell at retail at its
manufacturing site for on or off premises consumption and may
sell to distributors. A limited wine manufacturer licensee
shall secure liquor liability insurance coverage in an amount
at least equal to the maximum liability amounts set forth in
subsection (a) of Section 6-21 of this Act.
(h) The changes made to this Section by Public Act 99-47
shall not diminish or impair the rights of any person, whether
a distiller, wine manufacturer, agent, or affiliate thereof,
who requested in writing and submitted documentation to the
State Commission on or before February 18, 2015 to be approved
for a retail license pursuant to what has heretofore been
subsection (f); provided that, on or before that date, the
State Commission considered the intent of that person to apply
for the retail license under that subsection and, by recorded
vote, the State Commission approved a resolution indicating
that such a license application could be lawfully approved upon
that person duly filing a formal application for a retail
license and if that person, within 90 days of the State
Commission appearance and recorded vote, first filed an
application with the appropriate local commission, which

application was subsequently approved by the appropriate local
commission prior to consideration by the State Commission of
that person's application for a retail license. It is further
provided that the State Commission may approve the person's
application for a retail license or renewals of such license if
such person continues to diligently adhere to all
representations made in writing to the State Commission on or
before February 18, 2015, or thereafter, or in the affidavit
filed by that person with the State Commission to support the
issuance of a retail license and to abide by all applicable
laws and duly adopted rules.
(Source: P.A. 99-47, eff. 7-15-15; 99-448, eff. 8-24-15;
99-642, eff. 7-28-16; 99-902, eff. 8-26-16; 100-201, eff.
8-18-17; 100-816, eff. 8-13-18; 100-885, eff. 8-14-18; revised
10-24-18.)
Section 99. Effective date. This Act takes effect upon
becoming law.