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

NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Introduced.html


101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2675

Introduced , by Rep. Michael J. Zalewski

SYNOPSIS AS INTRODUCED:
235 ILCS 5/3-12
235 ILCS 5/5-1 from Ch. 43, par. 115
235 ILCS 5/5-3 from Ch. 43, par. 118

Amends the Liquor Control Act of 1934. Establishes a distiller pub license. Provides that a distiller 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, (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 Illinois Liquor Control Commission, annually transfer no more than 5,000 gallons of spirits manufactured on the premises to a licensed distiller pub wholly owned and operated by the same licensee. Prohibits a distiller pub licensee from selling spirits manufactured by the licensee to retail licensees. Establishes fees for a distiller pub license. Provides that a craft distiller licensee may simultaneously hold a distiller pub license if certain requirements are met. Authorizes a craft distiller to transfer spirits to a wholly owned distiller pub if specified requirements are met. Makes conforming changes.
LRB101 07840 RPS 52894 b
FISCAL NOTE ACT MAY APPLY

A BILL FOR

HB2675LRB101 07840 RPS 52894 b
1 AN ACT concerning liquor.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Liquor Control Act of 1934 is amended by
5changing Sections 3-12, 5-1, and 5-3 as follows:
6 (235 ILCS 5/3-12)
7 Sec. 3-12. Powers and duties of State Commission.
8 (a) The State Commission shall have the following powers,
9functions, and duties:
10 (1) To receive applications and to issue licenses to
11 manufacturers, foreign importers, importing distributors,
12 distributors, non-resident dealers, on premise consumption
13 retailers, off premise sale retailers, special event
14 retailer licensees, special use permit licenses, auction
15 liquor licenses, brew pubs, distiller pubs, caterer
16 retailers, non-beverage users, railroads, including owners
17 and lessees of sleeping, dining and cafe cars, airplanes,
18 boats, brokers, and wine maker's premises licensees in
19 accordance with the provisions of this Act, and to suspend
20 or revoke such licenses upon the State Commission's
21 determination, upon notice after hearing, that a licensee
22 has violated any provision of this Act or any rule or
23 regulation issued pursuant thereto and in effect for 30

HB2675- 2 -LRB101 07840 RPS 52894 b
1 days prior to such violation. Except in the case of an
2 action taken pursuant to a violation of Section 6-3, 6-5,
3 or 6-9, any action by the State Commission to suspend or
4 revoke a licensee's license may be limited to the license
5 for the specific premises where the violation occurred. An
6 action for a violation of this Act shall be commenced by
7 the State Commission within 2 years after the date the
8 State Commission becomes aware of the violation.
9 In lieu of suspending or revoking a license, the
10 commission may impose a fine, upon the State Commission's
11 determination and notice after hearing, that a licensee has
12 violated any provision of this Act or any rule or
13 regulation issued pursuant thereto and in effect for 30
14 days prior to such violation.
15 For the purpose of this paragraph (1), when determining
16 multiple violations for the sale of alcohol to a person
17 under the age of 21, a second or subsequent violation for
18 the sale of alcohol to a person under the age of 21 shall
19 only be considered if it was committed within 5 years after
20 the date when a prior violation for the sale of alcohol to
21 a person under the age of 21 was committed.
22 The fine imposed under this paragraph may not exceed
23 $500 for each violation. Each day that the activity, which
24 gave rise to the original fine, continues is a separate
25 violation. The maximum fine that may be levied against any
26 licensee, for the period of the license, shall not exceed

HB2675- 3 -LRB101 07840 RPS 52894 b
1 $20,000. The maximum penalty that may be imposed on a
2 licensee for selling a bottle of alcoholic liquor with a
3 foreign object in it or serving from a bottle of alcoholic
4 liquor with a foreign object in it shall be the destruction
5 of that bottle of alcoholic liquor for the first 10 bottles
6 so sold or served from by the licensee. For the eleventh
7 bottle of alcoholic liquor and for each third bottle
8 thereafter sold or served from by the licensee with a
9 foreign object in it, the maximum penalty that may be
10 imposed on the licensee is the destruction of the bottle of
11 alcoholic liquor and a fine of up to $50.
12 Any notice issued by the State Commission to a licensee
13 for a violation of this Act or any notice with respect to
14 settlement or offer in compromise shall include the field
15 report, photographs, and any other supporting
16 documentation necessary to reasonably inform the licensee
17 of the nature and extent of the violation or the conduct
18 alleged to have occurred. The failure to include such
19 required documentation shall result in the dismissal of the
20 action.
21 (2) To adopt such rules and regulations consistent with
22 the provisions of this Act which shall be necessary to
23 carry on its functions and duties to the end that the
24 health, safety and welfare of the People of the State of
25 Illinois shall be protected and temperance in the
26 consumption of alcoholic liquors shall be fostered and

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1 promoted and to distribute copies of such rules and
2 regulations to all licensees affected thereby.
3 (3) To call upon other administrative departments of
4 the State, county and municipal governments, county and
5 city police departments and upon prosecuting officers for
6 such information and assistance as it deems necessary in
7 the performance of its duties.
8 (4) To recommend to local commissioners rules and
9 regulations, not inconsistent with the law, for the
10 distribution and sale of alcoholic liquors throughout the
11 State.
12 (5) To inspect, or cause to be inspected, any premises
13 in this State where alcoholic liquors are manufactured,
14 distributed, warehoused, or sold. Nothing in this Act
15 authorizes an agent of the Commission to inspect private
16 areas within the premises without reasonable suspicion or a
17 warrant during an inspection. "Private areas" include, but
18 are not limited to, safes, personal property, and closed
19 desks.
20 (5.1) Upon receipt of a complaint or upon having
21 knowledge that any person is engaged in business as a
22 manufacturer, importing distributor, distributor, or
23 retailer without a license or valid license, to notify the
24 local liquor authority, file a complaint with the State's
25 Attorney's Office of the county where the incident
26 occurred, or initiate an investigation with the

HB2675- 5 -LRB101 07840 RPS 52894 b
1 appropriate law enforcement officials.
2 (5.2) To issue a cease and desist notice to persons
3 shipping alcoholic liquor into this State from a point
4 outside of this State if the shipment is in violation of
5 this Act.
6 (5.3) To receive complaints from licensees, local
7 officials, law enforcement agencies, organizations, and
8 persons stating that any licensee has been or is violating
9 any provision of this Act or the rules and regulations
10 issued pursuant to this Act. Such complaints shall be in
11 writing, signed and sworn to by the person making the
12 complaint, and shall state with specificity the facts in
13 relation to the alleged violation. If the Commission has
14 reasonable grounds to believe that the complaint
15 substantially alleges a violation of this Act or rules and
16 regulations adopted pursuant to this Act, it shall conduct
17 an investigation. If, after conducting an investigation,
18 the Commission is satisfied that the alleged violation did
19 occur, it shall proceed with disciplinary action against
20 the licensee as provided in this Act.
21 (6) To hear and determine appeals from orders of a
22 local commission in accordance with the provisions of this
23 Act, as hereinafter set forth. Hearings under this
24 subsection shall be held in Springfield or Chicago, at
25 whichever location is the more convenient for the majority
26 of persons who are parties to the hearing.

HB2675- 6 -LRB101 07840 RPS 52894 b
1 (7) The commission shall establish uniform systems of
2 accounts to be kept by all retail licensees having more
3 than 4 employees, and for this purpose the commission may
4 classify all retail licensees having more than 4 employees
5 and establish a uniform system of accounts for each class
6 and prescribe the manner in which such accounts shall be
7 kept. The commission may also prescribe the forms of
8 accounts to be kept by all retail licensees having more
9 than 4 employees, including but not limited to accounts of
10 earnings and expenses and any distribution, payment, or
11 other distribution of earnings or assets, and any other
12 forms, records and memoranda which in the judgment of the
13 commission may be necessary or appropriate to carry out any
14 of the provisions of this Act, including but not limited to
15 such forms, records and memoranda as will readily and
16 accurately disclose at all times the beneficial ownership
17 of such retail licensed business. The accounts, forms,
18 records and memoranda shall be available at all reasonable
19 times for inspection by authorized representatives of the
20 State Commission or by any local liquor control
21 commissioner or his or her authorized representative. The
22 commission, may, from time to time, alter, amend or repeal,
23 in whole or in part, any uniform system of accounts, or the
24 form and manner of keeping accounts.
25 (8) In the conduct of any hearing authorized to be held
26 by the commission, to appoint, at the commission's

HB2675- 7 -LRB101 07840 RPS 52894 b
1 discretion, hearing officers to conduct hearings involving
2 complex issues or issues that will require a protracted
3 period of time to resolve, to examine, or cause to be
4 examined, under oath, any licensee, and to examine or cause
5 to be examined the books and records of such licensee; to
6 hear testimony and take proof material for its information
7 in the discharge of its duties hereunder; to administer or
8 cause to be administered oaths; for any such purpose to
9 issue subpoena or subpoenas to require the attendance of
10 witnesses and the production of books, which shall be
11 effective in any part of this State, and to adopt rules to
12 implement its powers under this paragraph (8).
13 Any circuit court may by order duly entered, require
14 the attendance of witnesses and the production of relevant
15 books subpoenaed by the State Commission and the court may
16 compel obedience to its order by proceedings for contempt.
17 (9) To investigate the administration of laws in
18 relation to alcoholic liquors in this and other states and
19 any foreign countries, and to recommend from time to time
20 to the Governor and through him or her to the legislature
21 of this State, such amendments to this Act, if any, as it
22 may think desirable and as will serve to further the
23 general broad purposes contained in Section 1-2 hereof.
24 (10) To adopt such rules and regulations consistent
25 with the provisions of this Act which shall be necessary
26 for the control, sale or disposition of alcoholic liquor

HB2675- 8 -LRB101 07840 RPS 52894 b
1 damaged as a result of an accident, wreck, flood, fire or
2 other similar occurrence.
3 (11) To develop industry educational programs related
4 to responsible serving and selling, particularly in the
5 areas of overserving consumers and illegal underage
6 purchasing and consumption of alcoholic beverages.
7 (11.1) To license persons providing education and
8 training to alcohol beverage sellers and servers for
9 mandatory and non-mandatory training under the Beverage
10 Alcohol Sellers and Servers Education and Training
11 (BASSET) programs and to develop and administer a public
12 awareness program in Illinois to reduce or eliminate the
13 illegal purchase and consumption of alcoholic beverage
14 products by persons under the age of 21. Application for a
15 license shall be made on forms provided by the State
16 Commission.
17 (12) To develop and maintain a repository of license
18 and regulatory information.
19 (13) (Blank).
20 (14) On or before April 30, 2008 and every 2 years
21 thereafter, the Commission shall present a written report
22 to the Governor and the General Assembly that shall be
23 based on a study of the impact of Public Act 95-634 on the
24 business of soliciting, selling, and shipping wine from
25 inside and outside of this State directly to residents of
26 this State. As part of its report, the Commission shall

HB2675- 9 -LRB101 07840 RPS 52894 b
1 provide all of the following information:
2 (A) The amount of State excise and sales tax
3 revenues generated.
4 (B) The amount of licensing fees received.
5 (C) The number of cases of wine shipped from inside
6 and outside of this State directly to residents of this
7 State.
8 (D) The number of alcohol compliance operations
9 conducted.
10 (E) The number of winery shipper's licenses
11 issued.
12 (F) The number of each of the following: reported
13 violations; cease and desist notices issued by the
14 Commission; notices of violations issued by the
15 Commission and to the Department of Revenue; and
16 notices and complaints of violations to law
17 enforcement officials, including, without limitation,
18 the Illinois Attorney General and the U.S. Department
19 of Treasury's Alcohol and Tobacco Tax and Trade Bureau.
20 (15) As a means to reduce the underage consumption of
21 alcoholic liquors, the Commission shall conduct alcohol
22 compliance operations to investigate whether businesses
23 that are soliciting, selling, and shipping wine from inside
24 or outside of this State directly to residents of this
25 State are licensed by this State or are selling or
26 attempting to sell wine to persons under 21 years of age in

HB2675- 10 -LRB101 07840 RPS 52894 b
1 violation of this Act.
2 (16) The Commission shall, in addition to notifying any
3 appropriate law enforcement agency, submit notices of
4 complaints or violations of Sections 6-29 and 6-29.1 by
5 persons who do not hold a winery shipper's license under
6 this Act to the Illinois Attorney General and to the U.S.
7 Department of Treasury's Alcohol and Tobacco Tax and Trade
8 Bureau.
9 (17)(A) A person licensed to make wine under the laws
10 of another state who has a winery shipper's license under
11 this Act and annually produces less than 25,000 gallons of
12 wine or a person who has a first-class or second-class wine
13 manufacturer's license, a first-class or second-class
14 wine-maker's license, or a limited wine manufacturer's
15 license under this Act and annually produces less than
16 25,000 gallons of wine may make application to the
17 Commission for a self-distribution exemption to allow the
18 sale of not more than 5,000 gallons of the exemption
19 holder's wine to retail licensees per year.
20 (B) In the application, which shall be sworn under
21 penalty of perjury, such person shall state (1) the date it
22 was established; (2) its volume of production and sales for
23 each year since its establishment; (3) its efforts to
24 establish distributor relationships; (4) that a
25 self-distribution exemption is necessary to facilitate the
26 marketing of its wine; and (5) that it will comply with the

HB2675- 11 -LRB101 07840 RPS 52894 b
1 liquor and revenue laws of the United States, this State,
2 and any other state where it is licensed.
3 (C) The Commission shall approve the application for a
4 self-distribution exemption if such person: (1) is in
5 compliance with State revenue and liquor laws; (2) is not a
6 member of any affiliated group that produces more than
7 25,000 gallons of wine per annum or produces any other
8 alcoholic liquor; (3) will not annually produce for sale
9 more than 25,000 gallons of wine; and (4) will not annually
10 sell more than 5,000 gallons of its wine to retail
11 licensees.
12 (D) A self-distribution exemption holder shall
13 annually certify to the Commission its production of wine
14 in the previous 12 months and its anticipated production
15 and sales for the next 12 months. The Commission may fine,
16 suspend, or revoke a self-distribution exemption after a
17 hearing if it finds that the exemption holder has made a
18 material misrepresentation in its application, violated a
19 revenue or liquor law of Illinois, exceeded production of
20 25,000 gallons of wine in any calendar year, or become part
21 of an affiliated group producing more than 25,000 gallons
22 of wine or any other alcoholic liquor.
23 (E) Except in hearings for violations of this Act or
24 Public Act 95-634 or a bona fide investigation by duly
25 sworn law enforcement officials, the Commission, or its
26 agents, the Commission shall maintain the production and

HB2675- 12 -LRB101 07840 RPS 52894 b
1 sales information of a self-distribution exemption holder
2 as confidential and shall not release such information to
3 any person.
4 (F) The Commission shall issue regulations governing
5 self-distribution exemptions consistent with this Section
6 and this Act.
7 (G) Nothing in this paragraph subsection (17) shall
8 prohibit a self-distribution exemption holder from
9 entering into or simultaneously having a distribution
10 agreement with a licensed Illinois distributor.
11 (H) It is the intent of this paragraph subsection (17)
12 to promote and continue orderly markets. The General
13 Assembly finds that in order to preserve Illinois'
14 regulatory distribution system it is necessary to create an
15 exception for smaller makers of wine as their wines are
16 frequently adjusted in varietals, mixes, vintages, and
17 taste to find and create market niches sometimes too small
18 for distributor or importing distributor business
19 strategies. Limited self-distribution rights will afford
20 and allow smaller makers of wine access to the marketplace
21 in order to develop a customer base without impairing the
22 integrity of the 3-tier system.
23 (18)(A) A class 1 brewer licensee, who must also be
24 either a licensed brewer or licensed non-resident dealer
25 and annually manufacture less than 930,000 gallons of beer,
26 may make application to the State Commission for a

HB2675- 13 -LRB101 07840 RPS 52894 b
1 self-distribution exemption to allow the sale of not more
2 than 232,500 gallons of the exemption holder's beer per
3 year to retail licensees and to brewers, class 1 brewers,
4 and class 2 brewers that, pursuant to subsection (e) of
5 Section 6-4 of this Act, sell beer, cider, or both beer and
6 cider to non-licensees at their breweries.
7 (B) In the application, which shall be sworn under
8 penalty of perjury, the class 1 brewer licensee shall state
9 (1) the date it was established; (2) its volume of beer
10 manufactured and sold for each year since its
11 establishment; (3) its efforts to establish distributor
12 relationships; (4) that a self-distribution exemption is
13 necessary to facilitate the marketing of its beer; and (5)
14 that it will comply with the alcoholic beverage and revenue
15 laws of the United States, this State, and any other state
16 where it is licensed.
17 (C) Any application submitted shall be posted on the
18 State Commission's website at least 45 days prior to action
19 by the State Commission. The State Commission shall approve
20 the application for a self-distribution exemption if the
21 class 1 brewer licensee: (1) is in compliance with the
22 State, revenue, and alcoholic beverage laws; (2) is not a
23 member of any affiliated group that manufactures more than
24 930,000 gallons of beer per annum or produces any other
25 alcoholic beverages; (3) shall not annually manufacture
26 for sale more than 930,000 gallons of beer; (4) shall not

HB2675- 14 -LRB101 07840 RPS 52894 b
1 annually sell more than 232,500 gallons of its beer to
2 retail licensees or to brewers, class 1 brewers, and class
3 2 brewers that, pursuant to subsection (e) of Section 6-4
4 of this Act, sell beer, cider, or both beer and cider to
5 non-licensees at their breweries; and (5) has relinquished
6 any brew pub license held by the licensee, including any
7 ownership interest it held in the licensed brew pub.
8 (D) A self-distribution exemption holder shall
9 annually certify to the State Commission its manufacture of
10 beer during the previous 12 months and its anticipated
11 manufacture and sales of beer for the next 12 months. The
12 State Commission may fine, suspend, or revoke a
13 self-distribution exemption after a hearing if it finds
14 that the exemption holder has made a material
15 misrepresentation in its application, violated a revenue
16 or alcoholic beverage law of Illinois, exceeded the
17 manufacture of 930,000 gallons of beer in any calendar year
18 or became part of an affiliated group manufacturing more
19 than 930,000 gallons of beer or any other alcoholic
20 beverage.
21 (E) The State Commission shall issue rules and
22 regulations governing self-distribution exemptions
23 consistent with this Act.
24 (F) Nothing in this paragraph (18) shall prohibit a
25 self-distribution exemption holder from entering into or
26 simultaneously having a distribution agreement with a

HB2675- 15 -LRB101 07840 RPS 52894 b
1 licensed Illinois importing distributor or a distributor.
2 If a self-distribution exemption holder enters into a
3 distribution agreement and has assigned distribution
4 rights to an importing distributor or distributor, then the
5 self-distribution exemption holder's distribution rights
6 in the assigned territories shall cease in a reasonable
7 time not to exceed 60 days.
8 (G) It is the intent of this paragraph (18) to promote
9 and continue orderly markets. The General Assembly finds
10 that in order to preserve Illinois' regulatory
11 distribution system, it is necessary to create an exception
12 for smaller manufacturers in order to afford and allow such
13 smaller manufacturers of beer access to the marketplace in
14 order to develop a customer base without impairing the
15 integrity of the 3-tier system.
16 (b) On or before April 30, 1999, the Commission shall
17present a written report to the Governor and the General
18Assembly that shall be based on a study of the impact of Public
19Act 90-739 on the business of soliciting, selling, and shipping
20alcoholic liquor from outside of this State directly to
21residents of this State.
22 As part of its report, the Commission shall provide the
23following information:
24 (i) the amount of State excise and sales tax revenues
25 generated as a result of Public Act 90-739;
26 (ii) the amount of licensing fees received as a result

HB2675- 16 -LRB101 07840 RPS 52894 b
1 of Public Act 90-739;
2 (iii) the number of reported violations, the number of
3 cease and desist notices issued by the Commission, the
4 number of notices of violations issued to the Department of
5 Revenue, and the number of notices and complaints of
6 violations to law enforcement officials.
7(Source: P.A. 99-78, eff. 7-20-15; 99-448, eff. 8-24-15;
8100-134, eff. 8-18-17; 100-201, eff. 8-18-17; 100-816, eff.
98-13-18; 100-1012, eff. 8-21-18; 100-1050, eff. 8-23-18;
10revised 10-24-18.)
11 (235 ILCS 5/5-1) (from Ch. 43, par. 115)
12 Sec. 5-1. Licenses issued by the Illinois Liquor Control
13Commission shall be of the following classes:
14 (a) Manufacturer's license - Class 1. Distiller, Class 2.
15Rectifier, Class 3. Brewer, Class 4. First Class Wine
16Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
17First Class Winemaker, Class 7. Second Class Winemaker, Class
188. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
1910. Class 1 Brewer, Class 11. Class 2 Brewer,
20 (b) Distributor's license,
21 (c) Importing Distributor's license,
22 (d) Retailer's license,
23 (e) Special Event Retailer's license (not-for-profit),
24 (f) Railroad license,
25 (g) Boat license,

HB2675- 17 -LRB101 07840 RPS 52894 b
1 (h) Non-Beverage User's license,
2 (i) Wine-maker's premises license,
3 (j) Airplane license,
4 (k) Foreign importer's license,
5 (l) Broker's license,
6 (m) Non-resident dealer's license,
7 (n) Brew Pub license,
8 (o) Auction liquor license,
9 (p) Caterer retailer license,
10 (q) Special use permit license,
11 (r) Winery shipper's license,
12 (s) Craft distiller tasting permit,
13 (t) Brewer warehouse permit, .
14 (u) Distiller pub license.
15 No person, firm, partnership, corporation, or other legal
16business entity that is engaged in the manufacturing of wine
17may concurrently obtain and hold a wine-maker's license and a
18wine manufacturer's license.
19 (a) A manufacturer's license shall allow the manufacture,
20importation in bulk, storage, distribution and sale of
21alcoholic liquor to persons without the State, as may be
22permitted by law and to licensees in this State as follows:
23 Class 1. A Distiller may make sales and deliveries of
24alcoholic liquor to distillers, rectifiers, importing
25distributors, distributors and non-beverage users and to no
26other licensees.

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1 Class 2. A Rectifier, who is not a distiller, as defined
2herein, may make sales and deliveries of alcoholic liquor to
3rectifiers, importing distributors, distributors, retailers
4and non-beverage users and to no other licensees.
5 Class 3. A Brewer may make sales and deliveries of beer to
6importing distributors and distributors and may make sales as
7authorized under subsection (e) of Section 6-4 of this Act.
8 Class 4. A first class wine-manufacturer may make sales and
9deliveries of up to 50,000 gallons of wine to manufacturers,
10importing distributors and distributors, and to no other
11licensees.
12 Class 5. A second class Wine manufacturer may make sales
13and deliveries of more than 50,000 gallons of wine to
14manufacturers, importing distributors and distributors and to
15no other licensees.
16 Class 6. A first-class wine-maker's license shall allow the
17manufacture of up to 50,000 gallons of wine per year, and the
18storage and sale of such wine to distributors in the State and
19to persons without the State, as may be permitted by law. A
20person who, prior to June 1, 2008 (the effective date of Public
21Act 95-634), is a holder of a first-class wine-maker's license
22and annually produces more than 25,000 gallons of its own wine
23and who distributes its wine to licensed retailers shall cease
24this practice on or before July 1, 2008 in compliance with
25Public Act 95-634.
26 Class 7. A second-class wine-maker's license shall allow

HB2675- 19 -LRB101 07840 RPS 52894 b
1the manufacture of between 50,000 and 150,000 gallons of wine
2per year, and the storage and sale of such wine to distributors
3in this State and to persons without the State, as may be
4permitted by law. A person who, prior to June 1, 2008 (the
5effective date of Public Act 95-634), is a holder of a
6second-class wine-maker's license and annually produces more
7than 25,000 gallons of its own wine and who distributes its
8wine to licensed retailers shall cease this practice on or
9before July 1, 2008 in compliance with Public Act 95-634.
10 Class 8. A limited wine-manufacturer may make sales and
11deliveries not to exceed 40,000 gallons of wine per year to
12distributors, and to non-licensees in accordance with the
13provisions of this Act.
14 Class 9. A craft distiller license shall allow the
15manufacture of up to 100,000 gallons of spirits by distillation
16per year and the storage of such spirits. If a craft distiller
17licensee, including a craft distiller licensee who holds more
18than one craft distiller license, is not affiliated with any
19other manufacturer of spirits, then the craft distiller
20licensee may sell such spirits to distributors in this State
21and up to 2,500 gallons of such spirits to non-licensees to the
22extent permitted by any exemption approved by the Commission
23pursuant to Section 6-4 of this Act. A craft distiller license
24holder may store such spirits at a non-contiguous licensed
25location, but at no time shall a craft distiller license holder
26directly or indirectly produce in the aggregate more than

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1100,000 gallons of spirits per year.
2 A craft distiller licensee may hold more than one craft
3distiller's license. However, a craft distiller that holds more
4than one craft distiller license shall not manufacture, in the
5aggregate, more than 100,000 gallons of spirits by distillation
6per year and shall not sell, in the aggregate, more than 2,500
7gallons of such spirits to non-licensees in accordance with an
8exemption approved by the State Commission pursuant to Section
96-4 of this Act.
10 Any craft distiller licensed under this Act who on July 28,
112010 (the effective date of Public Act 96-1367) was licensed as
12a distiller and manufactured no more spirits than permitted by
13this Section shall not be required to pay the initial licensing
14fee.
15 A craft distiller may transfer spirits to a distiller pub
16wholly owned and operated by the craft distiller subject to the
17following limitations and restrictions: (i) the transfer shall
18not annually exceed more than 8,000 gallons; (ii) the annual
19amount transferred shall reduce the distiller pub's annual
20permitted production limit; (iii) all spirits transferred
21shall be subject to Article VIII of this Act; (iv) a written
22record shall be maintained by the craft distiller and distiller
23pub specifying the amount, date of delivery, and receipt of the
24product by the distiller pub; and (v) the distiller pub shall
25be located no farther than 80 miles from the craft distiller's
26licensed location.

HB2675- 21 -LRB101 07840 RPS 52894 b
1 A craft distiller shall, prior to transferring spirits to a
2distiller pub wholly owned by the craft distiller, furnish a
3written notice to the State Commission of intent to transfer
4spirits setting forth the name and address of the distiller pub
5and shall annually submit to the State Commission a verified
6report identifying the total gallons of spirits transferred to
7the distiller pub wholly owned by the craft distiller.
8 Class 10. A class 1 brewer license, which may only be
9issued to a licensed brewer or licensed non-resident dealer,
10shall allow the manufacture of up to 930,000 gallons of beer
11per year provided that the class 1 brewer licensee does not
12manufacture more than a combined 930,000 gallons of beer per
13year and is not a member of or affiliated with, directly or
14indirectly, a manufacturer that produces more than 930,000
15gallons of beer per year or any other alcoholic liquor. A class
161 brewer licensee may make sales and deliveries to importing
17distributors and distributors and to retail licensees in
18accordance with the conditions set forth in paragraph (18) of
19subsection (a) of Section 3-12 of this Act. If the State
20Commission provides prior approval, a class 1 brewer may
21annually transfer up to 930,000 gallons of beer manufactured by
22that class 1 brewer to the premises of a licensed class 1
23brewer wholly owned and operated by the same licensee.
24 Class 11. A class 2 brewer license, which may only be
25issued to a licensed brewer or licensed non-resident dealer,
26shall allow the manufacture of up to 3,720,000 gallons of beer

HB2675- 22 -LRB101 07840 RPS 52894 b
1per year provided that the class 2 brewer licensee does not
2manufacture more than a combined 3,720,000 gallons of beer per
3year and is not a member of or affiliated with, directly or
4indirectly, a manufacturer that produces more than 3,720,000
5gallons of beer per year or any other alcoholic liquor. A class
62 brewer licensee may make sales and deliveries to importing
7distributors and distributors, but shall not make sales or
8deliveries to any other licensee. If the State Commission
9provides prior approval, a class 2 brewer licensee may annually
10transfer up to 3,720,000 gallons of beer manufactured by that
11class 2 brewer licensee to the premises of a licensed class 2
12brewer wholly owned and operated by the same licensee.
13 A class 2 brewer may transfer beer to a brew pub wholly
14owned and operated by the class 2 brewer subject to the
15following limitations and restrictions: (i) the transfer shall
16not annually exceed more than 31,000 gallons; (ii) the annual
17amount transferred shall reduce the brew pub's annual permitted
18production limit; (iii) all beer transferred shall be subject
19to Article VIII of this Act; (iv) a written record shall be
20maintained by the brewer and brew pub specifying the amount,
21date of delivery, and receipt of the product by the brew pub;
22and (v) the brew pub shall be located no farther than 80 miles
23from the class 2 brewer's licensed location.
24 A class 2 brewer shall, prior to transferring beer to a
25brew pub wholly owned by the class 2 brewer, furnish a written
26notice to the State Commission of intent to transfer beer

HB2675- 23 -LRB101 07840 RPS 52894 b
1setting forth the name and address of the brew pub and shall
2annually submit to the State Commission a verified report
3identifying the total gallons of beer transferred to the brew
4pub wholly owned by the class 2 brewer.
5 (a-1) A manufacturer which is licensed in this State to
6make sales or deliveries of alcoholic liquor to licensed
7distributors or importing distributors and which enlists
8agents, representatives, or individuals acting on its behalf
9who contact licensed retailers on a regular and continual basis
10in this State must register those agents, representatives, or
11persons acting on its behalf with the State Commission.
12 Registration of agents, representatives, or persons acting
13on behalf of a manufacturer is fulfilled by submitting a form
14to the Commission. The form shall be developed by the
15Commission and shall include the name and address of the
16applicant, the name and address of the manufacturer he or she
17represents, the territory or areas assigned to sell to or
18discuss pricing terms of alcoholic liquor, and any other
19questions deemed appropriate and necessary. All statements in
20the forms required to be made by law or by rule shall be deemed
21material, and any person who knowingly misstates any material
22fact under oath in an application is guilty of a Class B
23misdemeanor. Fraud, misrepresentation, false statements,
24misleading statements, evasions, or suppression of material
25facts in the securing of a registration are grounds for
26suspension or revocation of the registration. The State

HB2675- 24 -LRB101 07840 RPS 52894 b
1Commission shall post a list of registered agents on the
2Commission's website.
3 (b) A distributor's license shall allow the wholesale
4purchase and storage of alcoholic liquors and sale of alcoholic
5liquors to licensees in this State and to persons without the
6State, as may be permitted by law, and the sale of beer, cider,
7or both beer and cider to brewers, class 1 brewers, and class 2
8brewers that, pursuant to subsection (e) of Section 6-4 of this
9Act, sell beer, cider, or both beer and cider to non-licensees
10at their breweries. No person licensed as a distributor shall
11be granted a non-resident dealer's license.
12 (c) An importing distributor's license may be issued to and
13held by those only who are duly licensed distributors, upon the
14filing of an application by a duly licensed distributor, with
15the Commission and the Commission shall, without the payment of
16any fee, immediately issue such importing distributor's
17license to the applicant, which shall allow the importation of
18alcoholic liquor by the licensee into this State from any point
19in the United States outside this State, and the purchase of
20alcoholic liquor in barrels, casks or other bulk containers and
21the bottling of such alcoholic liquors before resale thereof,
22but all bottles or containers so filled shall be sealed,
23labeled, stamped and otherwise made to comply with all
24provisions, rules and regulations governing manufacturers in
25the preparation and bottling of alcoholic liquors. The
26importing distributor's license shall permit such licensee to

HB2675- 25 -LRB101 07840 RPS 52894 b
1purchase alcoholic liquor from Illinois licensed non-resident
2dealers and foreign importers only. No person licensed as an
3importing distributor shall be granted a non-resident dealer's
4license.
5 (d) A retailer's license shall allow the licensee to sell
6and offer for sale at retail, only in the premises specified in
7the license, alcoholic liquor for use or consumption, but not
8for resale in any form. Nothing in Public Act 95-634 shall
9deny, limit, remove, or restrict the ability of a holder of a
10retailer's license to transfer, deliver, or ship alcoholic
11liquor to the purchaser for use or consumption subject to any
12applicable local law or ordinance. Any retail license issued to
13a manufacturer shall only permit the manufacturer to sell beer
14at retail on the premises actually occupied by the
15manufacturer. For the purpose of further describing the type of
16business conducted at a retail licensed premises, a retailer's
17licensee may be designated by the State Commission as (i) an on
18premise consumption retailer, (ii) an off premise sale
19retailer, or (iii) a combined on premise consumption and off
20premise sale retailer.
21 Notwithstanding any other provision of this subsection
22(d), a retail licensee may sell alcoholic liquors to a special
23event retailer licensee for resale to the extent permitted
24under subsection (e).
25 (e) A special event retailer's license (not-for-profit)
26shall permit the licensee to purchase alcoholic liquors from an

HB2675- 26 -LRB101 07840 RPS 52894 b
1Illinois licensed distributor (unless the licensee purchases
2less than $500 of alcoholic liquors for the special event, in
3which case the licensee may purchase the alcoholic liquors from
4a licensed retailer) and shall allow the licensee to sell and
5offer for sale, at retail, alcoholic liquors for use or
6consumption, but not for resale in any form and only at the
7location and on the specific dates designated for the special
8event in the license. An applicant for a special event retailer
9license must (i) furnish with the application: (A) a resale
10number issued under Section 2c of the Retailers' Occupation Tax
11Act or evidence that the applicant is registered under Section
122a of the Retailers' Occupation Tax Act, (B) a current, valid
13exemption identification number issued under Section 1g of the
14Retailers' Occupation Tax Act, and a certification to the
15Commission that the purchase of alcoholic liquors will be a
16tax-exempt purchase, or (C) a statement that the applicant is
17not registered under Section 2a of the Retailers' Occupation
18Tax Act, does not hold a resale number under Section 2c of the
19Retailers' Occupation Tax Act, and does not hold an exemption
20number under Section 1g of the Retailers' Occupation Tax Act,
21in which event the Commission shall set forth on the special
22event retailer's license a statement to that effect; (ii)
23submit with the application proof satisfactory to the State
24Commission that the applicant will provide dram shop liability
25insurance in the maximum limits; and (iii) show proof
26satisfactory to the State Commission that the applicant has

HB2675- 27 -LRB101 07840 RPS 52894 b
1obtained local authority approval.
2 Nothing in this Act prohibits an Illinois licensed
3distributor from offering credit or a refund for unused,
4salable alcoholic liquors to a holder of a special event
5retailer's license or from the special event retailer's
6licensee from accepting the credit or refund of alcoholic
7liquors at the conclusion of the event specified in the
8license.
9 (f) A railroad license shall permit the licensee to import
10alcoholic liquors into this State from any point in the United
11States outside this State and to store such alcoholic liquors
12in this State; to make wholesale purchases of alcoholic liquors
13directly from manufacturers, foreign importers, distributors
14and importing distributors from within or outside this State;
15and to store such alcoholic liquors in this State; provided
16that the above powers may be exercised only in connection with
17the importation, purchase or storage of alcoholic liquors to be
18sold or dispensed on a club, buffet, lounge or dining car
19operated on an electric, gas or steam railway in this State;
20and provided further, that railroad licensees exercising the
21above powers shall be subject to all provisions of Article VIII
22of this Act as applied to importing distributors. A railroad
23license shall also permit the licensee to sell or dispense
24alcoholic liquors on any club, buffet, lounge or dining car
25operated on an electric, gas or steam railway regularly
26operated by a common carrier in this State, but shall not

HB2675- 28 -LRB101 07840 RPS 52894 b
1permit the sale for resale of any alcoholic liquors to any
2licensee within this State. A license shall be obtained for
3each car in which such sales are made.
4 (g) A boat license shall allow the sale of alcoholic liquor
5in individual drinks, on any passenger boat regularly operated
6as a common carrier on navigable waters in this State or on any
7riverboat operated under the Riverboat Gambling Act, which boat
8or riverboat maintains a public dining room or restaurant
9thereon.
10 (h) A non-beverage user's license shall allow the licensee
11to purchase alcoholic liquor from a licensed manufacturer or
12importing distributor, without the imposition of any tax upon
13the business of such licensed manufacturer or importing
14distributor as to such alcoholic liquor to be used by such
15licensee solely for the non-beverage purposes set forth in
16subsection (a) of Section 8-1 of this Act, and such licenses
17shall be divided and classified and shall permit the purchase,
18possession and use of limited and stated quantities of
19alcoholic liquor as follows:
20Class 1, not to exceed ......................... 500 gallons
21Class 2, not to exceed ....................... 1,000 gallons
22Class 3, not to exceed ....................... 5,000 gallons
23Class 4, not to exceed ...................... 10,000 gallons
24Class 5, not to exceed ....................... 50,000 gallons
25 (i) A wine-maker's premises license shall allow a licensee
26that concurrently holds a first-class wine-maker's license to

HB2675- 29 -LRB101 07840 RPS 52894 b
1sell and offer for sale at retail in the premises specified in
2such license not more than 50,000 gallons of the first-class
3wine-maker's wine that is made at the first-class wine-maker's
4licensed premises per year for use or consumption, but not for
5resale in any form. A wine-maker's premises license shall allow
6a licensee who concurrently holds a second-class wine-maker's
7license to sell and offer for sale at retail in the premises
8specified in such license up to 100,000 gallons of the
9second-class wine-maker's wine that is made at the second-class
10wine-maker's licensed premises per year for use or consumption
11but not for resale in any form. A wine-maker's premises license
12shall allow a licensee that concurrently holds a first-class
13wine-maker's license or a second-class wine-maker's license to
14sell and offer for sale at retail at the premises specified in
15the wine-maker's premises license, for use or consumption but
16not for resale in any form, any beer, wine, and spirits
17purchased from a licensed distributor. Upon approval from the
18State Commission, a wine-maker's premises license shall allow
19the licensee to sell and offer for sale at (i) the wine-maker's
20licensed premises and (ii) at up to 2 additional locations for
21use and consumption and not for resale. Each location shall
22require additional licensing per location as specified in
23Section 5-3 of this Act. A wine-maker's premises licensee shall
24secure liquor liability insurance coverage in an amount at
25least equal to the maximum liability amounts set forth in
26subsection (a) of Section 6-21 of this Act.

HB2675- 30 -LRB101 07840 RPS 52894 b
1 (j) An airplane license shall permit the licensee to import
2alcoholic liquors into this State from any point in the United
3States outside this State and to store such alcoholic liquors
4in this State; to make wholesale purchases of alcoholic liquors
5directly from manufacturers, foreign importers, distributors
6and importing distributors from within or outside this State;
7and to store such alcoholic liquors in this State; provided
8that the above powers may be exercised only in connection with
9the importation, purchase or storage of alcoholic liquors to be
10sold or dispensed on an airplane; and provided further, that
11airplane licensees exercising the above powers shall be subject
12to all provisions of Article VIII of this Act as applied to
13importing distributors. An airplane licensee shall also permit
14the sale or dispensing of alcoholic liquors on any passenger
15airplane regularly operated by a common carrier in this State,
16but shall not permit the sale for resale of any alcoholic
17liquors to any licensee within this State. A single airplane
18license shall be required of an airline company if liquor
19service is provided on board aircraft in this State. The annual
20fee for such license shall be as determined in Section 5-3.
21 (k) A foreign importer's license shall permit such licensee
22to purchase alcoholic liquor from Illinois licensed
23non-resident dealers only, and to import alcoholic liquor other
24than in bulk from any point outside the United States and to
25sell such alcoholic liquor to Illinois licensed importing
26distributors and to no one else in Illinois; provided that (i)

HB2675- 31 -LRB101 07840 RPS 52894 b
1the foreign importer registers with the State Commission every
2brand of alcoholic liquor that it proposes to sell to Illinois
3licensees during the license period, (ii) the foreign importer
4complies with all of the provisions of Section 6-9 of this Act
5with respect to registration of such Illinois licensees as may
6be granted the right to sell such brands at wholesale, and
7(iii) the foreign importer complies with the provisions of
8Sections 6-5 and 6-6 of this Act to the same extent that these
9provisions apply to manufacturers.
10 (l) (i) A broker's license shall be required of all persons
11who solicit orders for, offer to sell or offer to supply
12alcoholic liquor to retailers in the State of Illinois, or who
13offer to retailers to ship or cause to be shipped or to make
14contact with distillers, rectifiers, brewers or manufacturers
15or any other party within or without the State of Illinois in
16order that alcoholic liquors be shipped to a distributor,
17importing distributor or foreign importer, whether such
18solicitation or offer is consummated within or without the
19State of Illinois.
20 No holder of a retailer's license issued by the Illinois
21Liquor Control Commission shall purchase or receive any
22alcoholic liquor, the order for which was solicited or offered
23for sale to such retailer by a broker unless the broker is the
24holder of a valid broker's license.
25 The broker shall, upon the acceptance by a retailer of the
26broker's solicitation of an order or offer to sell or supply or

HB2675- 32 -LRB101 07840 RPS 52894 b
1deliver or have delivered alcoholic liquors, promptly forward
2to the Illinois Liquor Control Commission a notification of
3said transaction in such form as the Commission may by
4regulations prescribe.
5 (ii) A broker's license shall be required of a person
6within this State, other than a retail licensee, who, for a fee
7or commission, promotes, solicits, or accepts orders for
8alcoholic liquor, for use or consumption and not for resale, to
9be shipped from this State and delivered to residents outside
10of this State by an express company, common carrier, or
11contract carrier. This Section does not apply to any person who
12promotes, solicits, or accepts orders for wine as specifically
13authorized in Section 6-29 of this Act.
14 A broker's license under this subsection (l) shall not
15entitle the holder to buy or sell any alcoholic liquors for his
16own account or to take or deliver title to such alcoholic
17liquors.
18 This subsection (l) shall not apply to distributors,
19employees of distributors, or employees of a manufacturer who
20has registered the trademark, brand or name of the alcoholic
21liquor pursuant to Section 6-9 of this Act, and who regularly
22sells such alcoholic liquor in the State of Illinois only to
23its registrants thereunder.
24 Any agent, representative, or person subject to
25registration pursuant to subsection (a-1) of this Section shall
26not be eligible to receive a broker's license.

HB2675- 33 -LRB101 07840 RPS 52894 b
1 (m) A non-resident dealer's license shall permit such
2licensee to ship into and warehouse alcoholic liquor into this
3State from any point outside of this State, and to sell such
4alcoholic liquor to Illinois licensed foreign importers and
5importing distributors and to no one else in this State;
6provided that (i) said non-resident dealer shall register with
7the Illinois Liquor Control Commission each and every brand of
8alcoholic liquor which it proposes to sell to Illinois
9licensees during the license period, (ii) it shall comply with
10all of the provisions of Section 6-9 hereof with respect to
11registration of such Illinois licensees as may be granted the
12right to sell such brands at wholesale by duly filing such
13registration statement, thereby authorizing the non-resident
14dealer to proceed to sell such brands at wholesale, and (iii)
15the non-resident dealer shall comply with the provisions of
16Sections 6-5 and 6-6 of this Act to the same extent that these
17provisions apply to manufacturers. No person licensed as a
18non-resident dealer shall be granted a distributor's or
19importing distributor's license.
20 (n) A brew pub license shall allow the licensee to only (i)
21manufacture up to 155,000 gallons of beer per year only on the
22premises specified in the license, (ii) make sales of the beer
23manufactured on the premises or, with the approval of the
24Commission, beer manufactured on another brew pub licensed
25premises that is wholly owned and operated by the same licensee
26to importing distributors, distributors, and to non-licensees

HB2675- 34 -LRB101 07840 RPS 52894 b
1for use and consumption, (iii) store the beer upon the
2premises, (iv) sell and offer for sale at retail from the
3licensed premises for off-premises consumption no more than
4155,000 gallons per year so long as such sales are only made
5in-person, (v) sell and offer for sale at retail for use and
6consumption on the premises specified in the license any form
7of alcoholic liquor purchased from a licensed distributor or
8importing distributor, and (vi) with the prior approval of the
9Commission, annually transfer no more than 155,000 gallons of
10beer manufactured on the premises to a licensed brew pub wholly
11owned and operated by the same licensee.
12 A brew pub licensee shall not under any circumstance sell
13or offer for sale beer manufactured by the brew pub licensee to
14retail licensees.
15 A person who holds a class 2 brewer license may
16simultaneously hold a brew pub license if the class 2 brewer
17(i) does not, under any circumstance, sell or offer for sale
18beer manufactured by the class 2 brewer to retail licensees;
19(ii) does not hold more than 3 brew pub licenses in this State;
20(iii) does not manufacture more than a combined 3,720,000
21gallons of beer per year, including the beer manufactured at
22the brew pub; and (iv) is not a member of or affiliated with,
23directly or indirectly, a manufacturer that produces more than
243,720,000 gallons of beer per year or any other alcoholic
25liquor.
26 Notwithstanding any other provision of this Act, a licensed

HB2675- 35 -LRB101 07840 RPS 52894 b
1brewer, class 2 brewer, or non-resident dealer who before July
21, 2015 manufactured less than 3,720,000 gallons of beer per
3year and held a brew pub license on or before July 1, 2015 may
4(i) continue to qualify for and hold that brew pub license for
5the licensed premises and (ii) manufacture more than 3,720,000
6gallons of beer per year and continue to qualify for and hold
7that brew pub license if that brewer, class 2 brewer, or
8non-resident dealer does not simultaneously hold a class 1
9brewer license and is not a member of or affiliated with,
10directly or indirectly, a manufacturer that produces more than
113,720,000 gallons of beer per year or that produces any other
12alcoholic liquor.
13 (o) A caterer retailer license shall allow the holder to
14serve alcoholic liquors as an incidental part of a food service
15that serves prepared meals which excludes the serving of snacks
16as the primary meal, either on or off-site whether licensed or
17unlicensed.
18 (p) An auction liquor license shall allow the licensee to
19sell and offer for sale at auction wine and spirits for use or
20consumption, or for resale by an Illinois liquor licensee in
21accordance with provisions of this Act. An auction liquor
22license will be issued to a person and it will permit the
23auction liquor licensee to hold the auction anywhere in the
24State. An auction liquor license must be obtained for each
25auction at least 14 days in advance of the auction date.
26 (q) A special use permit license shall allow an Illinois

HB2675- 36 -LRB101 07840 RPS 52894 b
1licensed retailer to transfer a portion of its alcoholic liquor
2inventory from its retail licensed premises to the premises
3specified in the license hereby created, and to sell or offer
4for sale at retail, only in the premises specified in the
5license hereby created, the transferred alcoholic liquor for
6use or consumption, but not for resale in any form. A special
7use permit license may be granted for the following time
8periods: one day or less; 2 or more days to a maximum of 15 days
9per location in any 12-month period. An applicant for the
10special use permit license must also submit with the
11application proof satisfactory to the State Commission that the
12applicant will provide dram shop liability insurance to the
13maximum limits and have local authority approval.
14 (r) A winery shipper's license shall allow a person with a
15first-class or second-class wine manufacturer's license, a
16first-class or second-class wine-maker's license, or a limited
17wine manufacturer's license or who is licensed to make wine
18under the laws of another state to ship wine made by that
19licensee directly to a resident of this State who is 21 years
20of age or older for that resident's personal use and not for
21resale. Prior to receiving a winery shipper's license, an
22applicant for the license must provide the Commission with a
23true copy of its current license in any state in which it is
24licensed as a manufacturer of wine. An applicant for a winery
25shipper's license must also complete an application form that
26provides any other information the Commission deems necessary.

HB2675- 37 -LRB101 07840 RPS 52894 b
1The application form shall include all addresses from which the
2applicant for a winery shipper's license intends to ship wine,
3including the name and address of any third party, except for a
4common carrier, authorized to ship wine on behalf of the
5manufacturer. The application form shall include an
6acknowledgement consenting to the jurisdiction of the
7Commission, the Illinois Department of Revenue, and the courts
8of this State concerning the enforcement of this Act and any
9related laws, rules, and regulations, including authorizing
10the Department of Revenue and the Commission to conduct audits
11for the purpose of ensuring compliance with Public Act 95-634,
12and an acknowledgement that the wine manufacturer is in
13compliance with Section 6-2 of this Act. Any third party,
14except for a common carrier, authorized to ship wine on behalf
15of a first-class or second-class wine manufacturer's licensee,
16a first-class or second-class wine-maker's licensee, a limited
17wine manufacturer's licensee, or a person who is licensed to
18make wine under the laws of another state shall also be
19disclosed by the winery shipper's licensee, and a copy of the
20written appointment of the third-party wine provider, except
21for a common carrier, to the wine manufacturer shall be filed
22with the State Commission as a supplement to the winery
23shipper's license application or any renewal thereof. The
24winery shipper's license holder shall affirm under penalty of
25perjury, as part of the winery shipper's license application or
26renewal, that he or she only ships wine, either directly or

HB2675- 38 -LRB101 07840 RPS 52894 b
1indirectly through a third-party provider, from the licensee's
2own production.
3 Except for a common carrier, a third-party provider
4shipping wine on behalf of a winery shipper's license holder is
5the agent of the winery shipper's license holder and, as such,
6a winery shipper's license holder is responsible for the acts
7and omissions of the third-party provider acting on behalf of
8the license holder. A third-party provider, except for a common
9carrier, that engages in shipping wine into Illinois on behalf
10of a winery shipper's license holder shall consent to the
11jurisdiction of the State Commission and the State. Any
12third-party, except for a common carrier, holding such an
13appointment shall, by February 1 of each calendar year and upon
14request by the State Commission or the Department of Revenue,
15file with the State Commission a statement detailing each
16shipment made to an Illinois resident. The statement shall
17include the name and address of the third-party provider filing
18the statement, the time period covered by the statement, and
19the following information:
20 (1) the name, address, and license number of the winery
21 shipper on whose behalf the shipment was made;
22 (2) the quantity of the products delivered; and
23 (3) the date and address of the shipment.
24If the Department of Revenue or the State Commission requests a
25statement under this paragraph, the third-party provider must
26provide that statement no later than 30 days after the request

HB2675- 39 -LRB101 07840 RPS 52894 b
1is made. Any books, records, supporting papers, and documents
2containing information and data relating to a statement under
3this paragraph shall be kept and preserved for a period of 3
4years, unless their destruction sooner is authorized, in
5writing, by the Director of Revenue, and shall be open and
6available to inspection by the Director of Revenue or the State
7Commission or any duly authorized officer, agent, or employee
8of the State Commission or the Department of Revenue, at all
9times during business hours of the day. Any person who violates
10any provision of this paragraph or any rule of the State
11Commission for the administration and enforcement of the
12provisions of this paragraph is guilty of a Class C
13misdemeanor. In case of a continuing violation, each day's
14continuance thereof shall be a separate and distinct offense.
15 The State Commission shall adopt rules as soon as
16practicable to implement the requirements of Public Act 99-904
17and shall adopt rules prohibiting any such third-party
18appointment of a third-party provider, except for a common
19carrier, that has been deemed by the State Commission to have
20violated the provisions of this Act with regard to any winery
21shipper licensee.
22 A winery shipper licensee must pay to the Department of
23Revenue the State liquor gallonage tax under Section 8-1 for
24all wine that is sold by the licensee and shipped to a person
25in this State. For the purposes of Section 8-1, a winery
26shipper licensee shall be taxed in the same manner as a

HB2675- 40 -LRB101 07840 RPS 52894 b
1manufacturer of wine. A licensee who is not otherwise required
2to register under the Retailers' Occupation Tax Act must
3register under the Use Tax Act to collect and remit use tax to
4the Department of Revenue for all gallons of wine that are sold
5by the licensee and shipped to persons in this State. If a
6licensee fails to remit the tax imposed under this Act in
7accordance with the provisions of Article VIII of this Act, the
8winery shipper's license shall be revoked in accordance with
9the provisions of Article VII of this Act. If a licensee fails
10to properly register and remit tax under the Use Tax Act or the
11Retailers' Occupation Tax Act for all wine that is sold by the
12winery shipper and shipped to persons in this State, the winery
13shipper's license shall be revoked in accordance with the
14provisions of Article VII of this Act.
15 A winery shipper licensee must collect, maintain, and
16submit to the Commission on a semi-annual basis the total
17number of cases per resident of wine shipped to residents of
18this State. A winery shipper licensed under this subsection (r)
19must comply with the requirements of Section 6-29 of this Act.
20 Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
21Section 3-12, the State Commission may receive, respond to, and
22investigate any complaint and impose any of the remedies
23specified in paragraph (1) of subsection (a) of Section 3-12.
24 As used in this subsection, "third-party provider" means
25any entity that provides fulfillment house services, including
26warehousing, packaging, distribution, order processing, or

HB2675- 41 -LRB101 07840 RPS 52894 b
1shipment of wine, but not the sale of wine, on behalf of a
2licensed winery shipper.
3 (s) A craft distiller tasting permit license shall allow an
4Illinois licensed craft distiller to transfer a portion of its
5alcoholic liquor inventory from its craft distiller licensed
6premises to the premises specified in the license hereby
7created and to conduct a sampling, only in the premises
8specified in the license hereby created, of the transferred
9alcoholic liquor in accordance with subsection (c) of Section
106-31 of this Act. The transferred alcoholic liquor may not be
11sold or resold in any form. An applicant for the craft
12distiller tasting permit license must also submit with the
13application proof satisfactory to the State Commission that the
14applicant will provide dram shop liability insurance to the
15maximum limits and have local authority approval.
16 (t) A brewer warehouse permit may be issued to the holder
17of a class 1 brewer license or a class 2 brewer license. If the
18holder of the permit is a class 1 brewer licensee, the brewer
19warehouse permit shall allow the holder to store or warehouse
20up to 930,000 gallons of tax-determined beer manufactured by
21the holder of the permit at the premises specified on the
22permit. If the holder of the permit is a class 2 brewer
23licensee, the brewer warehouse permit shall allow the holder to
24store or warehouse up to 3,720,000 gallons of tax-determined
25beer manufactured by the holder of the permit at the premises
26specified on the permit. Sales to non-licensees are prohibited

HB2675- 42 -LRB101 07840 RPS 52894 b
1at the premises specified in the brewer warehouse permit.
2 (u) A distiller pub license shall allow the licensee to
3only (i) manufacture up to 5,000 gallons of spirits per year
4only on the premises specified in the license, (ii) make sales
5of the spirits manufactured on the premises or, with the
6approval of the State Commission, spirits manufactured on
7another distiller pub licensed premises that is wholly owned
8and operated by the same licensee to importing distributors,
9distributors, and to non-licensees for use and consumption,
10(iii) store the spirits upon the premises, (iv) sell and offer
11for sale at retail from the licensed premises for off-premises
12consumption no more than 5,000 gallons per year so long as such
13sales are only made in-person, (v) sell and offer for sale at
14retail for use and consumption on the premises specified in the
15license any form of alcoholic liquor purchased from a licensed
16distributor or importing distributor, and (vi) with the prior
17approval of the State Commission, annually transfer no more
18than 5,000 gallons of spirits manufactured on the premises to a
19licensed distiller pub wholly owned and operated by the same
20licensee.
21 A distiller pub licensee shall not under any circumstance
22sell or offer for sale spirits manufactured by the distiller
23pub licensee to retail licensees.
24 A person who holds a craft distiller license may
25simultaneously hold a distiller pub license if the craft
26distiller (i) does not, under any circumstance, sell or offer

HB2675- 43 -LRB101 07840 RPS 52894 b
1for sale spirits manufactured by the craft distiller to retail
2licensees; (ii) does not hold more than 3 distiller pub
3licenses in this State; (iii) does not manufacture more than a
4combined 100,000 gallons of spirits per year, including the
5spirits manufactured at the distiller pub; and (iv) is not a
6member of or affiliated with, directly or indirectly, a
7manufacturer that produces more than 100,000 gallons of spirits
8per year or any other alcoholic liquor.
9(Source: P.A. 99-448, eff. 8-24-15; 99-642, eff. 7-28-16;
1099-800, eff. 8-12-16; 99-902, eff. 8-26-16; 99-904, eff.
111-1-17; 100-17, eff. 6-30-17; 100-201, eff. 8-18-17; 100-816,
12eff. 8-13-18; 100-885, eff. 8-14-18; 100-1050, eff. 8-23-18;
13revised 10-2-18.)
14 (235 ILCS 5/5-3) (from Ch. 43, par. 118)
15 Sec. 5-3. License fees. Except as otherwise provided
16herein, at the time application is made to the State Commission
17for a license of any class, the applicant shall pay to the
18State Commission the fee hereinafter provided for the kind of
19license applied for.
20 The fee for licenses issued by the State Commission shall
21be as follows:
22OnlineInitial
23renewallicense
24 or
25 non-online

HB2675- 44 -LRB101 07840 RPS 52894 b
1 renewal
2 For a manufacturer's license:
3 Class 1. Distiller .................$4,000$5,000
4 Class 2. Rectifier .................4,000 5,000
5 Class 3. Brewer ....................1,200 1,500
6 Class 4. First-class Wine
7 Manufacturer ...................750900
8 Class 5. Second-class
9 Wine Manufacturer ..............1,500 1,750
10 Class 6. First-class wine-maker ....750 900
11 Class 7. Second-class wine-maker ...1,500 1,750
12 Class 8. Limited Wine
13 Manufacturer....................250350
14 Class 9. Craft Distiller............ 2,000 2,500
15 Class 10. Class 1 Brewer............50 75
16 Class 11. Class 2 Brewer............ 75 100
17 For a Brew Pub License..............1,2001,500
18 For a Distiller Pub License......... 1,200 1,500
19 For a caterer retailer's license....350 500
20 For a foreign importer's license ...25 25
21 For an importing distributor's
22 license.........................2525
23 For a distributor's license
24 (11,250,000 gallons
25 or over)........................1,4502,200
26 For a distributor's license

HB2675- 45 -LRB101 07840 RPS 52894 b
1 (over 4,500,000 gallons, but
2 under 11,250,000 gallons)....... 9501,450
3 For a distributor's license
4 (4,500,000 gallons or under)....300450
5 For a non-resident dealer's license
6 (500,000 gallons or over) ......1,200 1,500
7 For a non-resident dealer's license
8 (under 500,000 gallons) ........250 350
9 For a wine-maker's premises
10 license ........................250500
11 For a winery shipper's license
12 (under 250,000 gallons).........200 350
13 For a winery shipper's license
14 (250,000 or over, but
15 under 500,000 gallons)..........7501,000
16 For a winery shipper's license
17 (500,000 gallons or over).......1,200 1,500
18 For a wine-maker's premises license,
19 second location ................500 1,000
20 For a wine-maker's premises license,
21 third location .................5001,000
22 For a retailer's license ...........600 750
23 For a special event retailer's
24 license, (not-for-profit) ......25 25
25 For a special use permit license,
26 one day only ...................100 150

HB2675- 46 -LRB101 07840 RPS 52894 b
1 2 days or more .................150 250
2 For a railroad license .............100 150
3 For a boat license .................500 1,000
4 For an airplane license, times the
5 licensee's maximum number of
6 aircraft in flight, serving
7 liquor over the State at any
8 given time, which either
9 originate, terminate, or make
10 an intermediate stop in
11 the State.......................100150
12 For a non-beverage user's license:
13 Class 1 ........................2424
14 Class 2 ........................6060
15 Class 3 ........................120120
16 Class 4 ........................240240
17 Class 5 ........................600600
18 For a broker's license .............750 1,000
19 For an auction liquor license ......100 150
20 For a homebrewer special
21 event permit....................2525
22 For a craft distiller
23 tasting permit..................25 25
24 For a BASSET trainer license........ 300 350
25 For a tasting representative
26 license.........................200300

HB2675- 47 -LRB101 07840 RPS 52894 b
1 For a brewer warehouse permit....... 2525
2 Fees collected under this Section shall be paid into the
3Dram Shop Fund. On and after July 1, 2003 and until June 30,
42016, of the funds received for a retailer's license, in
5addition to the first $175, an additional $75 shall be paid
6into the Dram Shop Fund, and $250 shall be paid into the
7General Revenue Fund. On and after June 30, 2016, one-half of
8the funds received for a retailer's license shall be paid into
9the Dram Shop Fund and one-half of the funds received for a
10retailer's license shall be paid into the General Revenue Fund.
11Beginning June 30, 1990 and on June 30 of each subsequent year
12through June 29, 2003, any balance over $5,000,000 remaining in
13the Dram Shop Fund shall be credited to State liquor licensees
14and applied against their fees for State liquor licenses for
15the following year. The amount credited to each licensee shall
16be a proportion of the balance in the Dram Fund that is the
17same as the proportion of the license fee paid by the licensee
18under this Section for the period in which the balance was
19accumulated to the aggregate fees paid by all licensees during
20that period.
21 No fee shall be paid for licenses issued by the State
22Commission to the following non-beverage users:
23 (a) Hospitals, sanitariums, or clinics when their use
24 of alcoholic liquor is exclusively medicinal, mechanical
25 or scientific.
26 (b) Universities, colleges of learning or schools when

HB2675- 48 -LRB101 07840 RPS 52894 b
1 their use of alcoholic liquor is exclusively medicinal,
2 mechanical or scientific.
3 (c) Laboratories when their use is exclusively for the
4 purpose of scientific research.
5(Source: P.A. 99-448, eff. 8-24-15; 99-902, eff. 8-26-16;
699-904, eff. 8-26-16; 100-201, eff. 8-18-17; 100-816, eff.
78-13-18.)
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