Bill Text: IL SB1831 | 2019-2020 | 101st General Assembly | Chaptered


Bill Title: Amends the Liquor Control Act of 1934. Provides that the definition of "beer" includes beverages brewed or fermented wholly or in part from malt products. Provides that a caterer retailer license shall allow the holder, a distributor, or an importing distributor to transfer any inventory to and from the holder's retail premises and to purchase alcoholic liquor from a distributor or importing distributor to be delivered directly to an off-site event. Provides that a special use permit license shall allow the holder to purchase alcoholic liquor from a distributor or importing distributor to be delivered directly to the location specified in the special use permit license. Provides that a special use permit license shall allow the holder, a distributor, or an importing distributor to transfer any inventory from the premises specified in the special use permit license to its retail premises. Provides that, if certain conditions are met, nothing in the Act prohibits a distributor or importing distributor from offering a credit or a refund for unused, salable beer to a special use permit licensee or a caterer retailer or a special use permit licensee or caterer retailer from accepting the credit or refund. In a provision that allows a manufacturer, distributor, or importing distributor to provide permanent outdoor signs to retailers if certain conditions are met, provides that the permanent outside sign shall cost not more than $3,000 per brand (instead of per manufacturer). Contains provisions concerning the servicing of certain systems by a manufacturer, distributor, or importing distributor. Prohibits a distributor or importing distributor from selling or giving coil cleaning services to certain licensees. Authorizes a manufacturer, distributor, or importing distributor to give, sell, or lease dispensing equipment to specified licensees if certain requirements are met. Makes other changes.

Spectrum: Moderate Partisan Bill (Democrat 5-1)

Status: (Passed) 2019-06-14 - Public Act . . . . . . . . . 101-0016 [SB1831 Detail]

Download: Illinois-2019-SB1831-Chaptered.html



Public Act 101-0016
SB1831 EnrolledLRB101 09851 RPS 54953 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 5-1, 6-6, 6-6.5, 8-1, and 8-5 and by adding
Sections 6-5.5 and 6-6.6 as follows:
(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. Craft Distiller, Class
10. Class 1 Brewer, Class 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.
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 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 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 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 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, 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. 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. A caterer retailer license shall allow the holder,
a distributor, or an importing distributor to transfer any
inventory to and from the holder's retail premises and shall
allow the holder to purchase alcoholic liquor from a
distributor or importing distributor to be delivered directly
to an off-site event.
Nothing in this Act prohibits a distributor or importing
distributor from offering credit or a refund for unused,
salable beer to a holder of a caterer retailer license or a
caterer retailer licensee from accepting a credit or refund for
unused, salable beer, in the event an act of God is the sole
reason an off-site event is cancelled and if: (i) the holder of
a caterer retailer license has not transferred alcoholic liquor
from its caterer retailer premises to an off-site location;
(ii) the distributor or importing distributor offers the credit
or refund for the unused, salable beer that it delivered to the
off-site premises and not for any unused, salable beer that the
distributor or importing distributor delivered to the caterer
retailer's premises; and (iii) the unused, salable beer would
likely spoil if transferred to the caterer retailer's premises.
A caterer retailer license shall allow the holder to transfer
any inventory from any off-site location to its caterer
retailer premises at the conclusion of an off-site event or
engage a distributor or importing distributor to transfer any
inventory from any off-site location to its caterer retailer
premises at the conclusion of an off-site event, provided that
the distributor or importing distributor issues bona fide
charges to the caterer retailer licensee for fuel, labor, and
delivery and the distributor or importing distributor collects
payment from the caterer retailer licensee prior to the
distributor or importing distributor transferring inventory to
the caterer retailer premises.
For purposes of this subsection (o), an "act of God" means
an unforeseeable event, such as a rain or snow storm, hail, a
flood, or a similar event, that is the sole cause of the
cancellation of an off-site, outdoor event.
(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; to purchase alcoholic
liquor from a distributor or importing distributor to be
delivered directly to the location 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 or delivered 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.
A special use permit license shall allow the holder to
transfer any inventory from the holder's special use premises
to its retail premises at the conclusion of the special use
event or engage a distributor or importing distributor to
transfer any inventory from the holder's special use premises
to its retail premises at the conclusion of an off-site event,
provided that the distributor or importing distributor issues
bona fide charges to the special use permit licensee for fuel,
labor, and delivery and the distributor or importing
distributor collects payment from the retail licensee prior to
the distributor or importing distributor transferring
inventory to the retail premises.
Nothing in this Act prohibits a distributor or importing
distributor from offering credit or a refund for unused,
salable beer to a special use permit licensee or a special use
permit licensee from accepting a credit or refund for unused,
salable beer at the conclusion of the event specified in the
license if: (i) the holder of the special use permit license
has not transferred alcoholic liquor from its retail licensed
premises to the premises specified in the special use permit
license; (ii) the distributor or importing distributor offers
the credit or refund for the unused, salable beer that it
delivered to the premises specified in the special use permit
license and not for any unused, salable beer that the
distributor or importing distributor delivered to the
retailer's premises; and (iii) the unused, salable beer would
likely spoil if transferred to the retailer premises.
(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 craft distiller to transfer a portion of its
alcoholic liquor inventory from its 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.
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.
(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 5/6-5.5 new)
Sec. 6-5.5. Consignment sales prohibited; retailer
returns.
(a) In this Section, "retailer" means a retailer, special
event retailer, special use permit licensee, caterer retailer,
or brew pub.
(b) It is unlawful for a manufacturer with
self-distribution privileges, importing distributor, or
distributor to sell, offer for sale, or contract to sell to any
retailer, or for any such retailer to purchase, offer to
purchase, or contract to purchase any products:
(1) on consignment or conditional sale, pursuant to
which the retailer has no obligation to pay for the product
until sold;
(2) with the privilege of return unless expressly
authorized in this Act;
(3) on any basis other than a bona fide sale; or
(4) if any part of the sale involves, directly or
indirectly, the acquisition by the retailer of other
products from a manufacturer with self-distribution
privileges, importing distributor, or distributor, or an
agreement to acquire other products from the manufacturer
with self-distribution privileges, importing distributor,
or distributor.
(c) Transactions involving the bona fide return of products
for ordinary and usual commercial reasons arising after the
product has been sold are not prohibited.
(d) Unless there is a bona fide business reason for
replacement of an alcoholic liquor product when delivered, the
alcoholic liquor product may not be replaced free of charge to
a retailer. Replacement of an alcoholic liquor product damaged
while in a retailer's possession constitutes the providing of
something of value and is a violation of Sections 6-4, 6-5, and
6-6 of this Act. A manufacturer with self-distribution
privileges, importing distributor, or distributor is not
required to accept the return of products for the reasons
stated in items (1) through (7) of subsection (f).
(1) A manufacturer with self-distribution privileges,
importing distributor, or distributor may not accept the
return of alcoholic liquor products as breakage if the
product was damaged after delivery and while in the
possession of the retailer. The manufacturer with
self-distribution privileges, importing distributor, or
distributor may replace damaged cartons, packaging, or
carrying containers of alcoholic liquor at any time.
(2) Alcoholic liquor products or other compensation
shall not be furnished to a retailer for product breakage
that occurs as a result of handling by the retailer or its
agents, employees, or customers.
(3) If an alcoholic liquor product has been damaged
prior to or at the time of actual delivery, the product may
only be exchanged for an equal quantity of identical
product or returned for credit. If an identical product is
unavailable, a similar type of product, including a
similarly priced product, may be exchanged.
(4) If an alcoholic liquor product has been damaged
prior to or at the time of actual delivery, the product may
be exchanged no later than 15 days after delivery under the
following conditions:
(A) If the pre-delivery damage is visible at the
time of delivery, the retailer must identify the
damaged product immediately.
(B) If the damage is latent and not visible at the
time of delivery, the retailer must notify the
manufacturer with self-distribution privileges,
importing distributor, or distributor of the
pre-delivery damage within 15 days after delivery, or
the date of invoice, whichever is later.
(e) It is unlawful to sell, offer to sell, or contract to
sell alcoholic liquor products with the privilege of return for
any reason, other than those considered to be ordinary and
usual commercial reasons, arising after the product has been
sold. A manufacturer with self-distribution privileges,
importing distributor, or distributor is under no obligation to
accept a return or make an exchange for any product. A
manufacturer with self-distribution privileges, importing
distributor, or distributor that elects to make an authorized
exchange of a product or return of a product for cash or credit
does so at its sole discretion and must maintain proper books
and records of the transaction in accordance with 11 Ill. Adm.
Code 100.130.
(f) Ordinary and usual commercial reasons for the return of
alcoholic liquor products are limited to the following:
(1) Defective products. Products that are unmarketable
because of product deterioration, leaking containers,
damaged labels, or missing or mutilated tamper evident
closures may be exchanged for an equal quantity of
identical or similar products, including similarly priced
products, or credit against outstanding indebtedness.
(2) Error in products delivered. Any discrepancy
between products ordered and products delivered may be
corrected, within 15 days after the date of delivery or
date of invoice, whichever is later, by exchange of the
products delivered for those that were ordered or by a
return for credit against outstanding indebtedness.
(3) Products that may no longer be lawfully sold.
Products that may no longer be lawfully sold may be
returned for credit against outstanding indebtedness. This
includes situations in which, due to a change in regulation
or administrative procedure over which a retailer has no
control, a particular size or brand is no longer permitted
to be sold.
(4) Termination of business. Products on hand at the
time a retailer terminates operations may be returned for
cash or credit against outstanding indebtedness. This does
not include a temporary seasonal shutdown.
(5) Change in products. A retailer's inventory of a
product that has been changed in formula, proof, label, or
container may be exchanged for equal quantities of the new
version of that product.
(6) Discontinued products. If a manufacturer,
non-resident dealer, foreign importer, or importing
distributor discontinues the production or importation of
a product, a retailer may return its inventory of that
product for cash or credit against outstanding
indebtedness.
(7) Seasonal dealers. Manufacturers with
self-distribution privileges, importing distributors, or
distributors may accept the return of product from
retailers who are only open a portion of the year if the
products are likely to spoil during the off-season. These
returns shall be for cash or credit against outstanding
indebtedness.
(g) Without limitation, the following are not considered
ordinary and commercial reasons to justify a return of an
alcoholic liquor product:
(1) Overstocked and slow-moving alcoholic liquor
products. The return or exchange of a product because it is
overstocked or slow moving does not constitute a return for
ordinary and usual commercial reasons.
(2) Seasonal alcoholic liquor products. The return for
cash or credit or exchange of wine or spirits for which
there is only a limited or seasonal demand, such as holiday
decanters and certain distinctive bottles, does not
constitute a return for ordinary and usual commercial
reasons. Nothing in this item (2) prohibits the exchange of
seasonal beer products for similarly priced beer products.
(h) Nothing in this Section prohibits a manufacturer with
self-distribution privileges, importing distributor, or
distributor from accepting the return of beer from a retailer
if the beer is near or beyond its freshness date, code date,
pull date, or other similar date marking the deterioration or
freshness of the beer if:
(1) the brewer has policies and procedures in place
that specify the date the retailer must pull the product;
(2) the brewer's freshness return or exchange policies
and procedures are readily verifiable and consistently
followed by the brewer; and
(3) the container has identifying markings that
correspond with this date.
Returns under this subsection may be accepted in return for
credit against indebtedness or equal amounts of the same or
similar beer, including a similarly priced product.
For purposes of this Section, beer is near code on any date
on or before the freshness or code date not to exceed 30 days
prior to the freshness or code date. If near-code beer is
returned, a manufacturer with self-distribution privileges,
importing distributor, or distributor may sell near-code beer
to another retailer who may reasonably sell the beer on or
before the expiration of the freshness or code date. No beer
shall be returned as near-code prior to 30 days of the
freshness or code date.
It is a violation of this Section for a retailer to hold
beer for the purpose of returning beer as out of code.
(235 ILCS 5/6-6) (from Ch. 43, par. 123)
Sec. 6-6. Except as otherwise provided in this Act no
manufacturer or distributor or importing distributor shall,
directly or indirectly, sell, supply, furnish, give or pay for,
or loan or lease, any furnishing, fixture or equipment on the
premises of a place of business of another licensee authorized
under this Act to sell alcoholic liquor at retail, either for
consumption on or off the premises, nor shall he or she,
directly or indirectly, pay for any such license, or advance,
furnish, lend or give money for payment of such license, or
purchase or become the owner of any note, mortgage, or other
evidence of indebtedness of such licensee or any form of
security therefor, nor shall such manufacturer, or
distributor, or importing distributor, directly or indirectly,
be interested in the ownership, conduct or operation of the
business of any licensee authorized to sell alcoholic liquor at
retail, nor shall any manufacturer, or distributor, or
importing distributor be interested directly or indirectly or
as owner or part owner of said premises or as lessee or lessor
thereof, in any premises upon which alcoholic liquor is sold at
retail.
No manufacturer or distributor or importing distributor
shall, directly or indirectly or through a subsidiary or
affiliate, or by any officer, director or firm of such
manufacturer, distributor or importing distributor, furnish,
give, lend or rent, install, repair or maintain, to or for any
retail licensee in this State, any signs or inside advertising
materials except as provided in this Section and Section 6-5.
With respect to retail licensees, other than any government
owned or operated auditorium, exhibition hall, recreation
facility or other similar facility holding a retailer's license
as described in Section 6-5, a manufacturer, distributor, or
importing distributor may furnish, give, lend or rent and
erect, install, repair and maintain to or for any retail
licensee, for use at any one time in or about or in connection
with a retail establishment on which the products of the
manufacturer, distributor or importing distributor are sold,
the following signs and inside advertising materials as
authorized in subparts (i), (ii), (iii), and (iv):
(i) Permanent outside signs shall cost not more than
$3,000 per brand manufacturer, exclusive of erection,
installation, repair and maintenance costs, and permit
fees and shall bear only the manufacturer's name, brand
name, trade name, slogans, markings, trademark, or other
symbols commonly associated with and generally used in
identifying the product including, but not limited to,
"cold beer", "on tap", "carry out", and "packaged liquor".
(ii) Temporary outside signs shall include, but not be
limited to, banners, flags, pennants, streamers, and other
items of a temporary and non-permanent nature, and shall
cost not more than $1,000 per manufacturer. Each temporary
outside sign must include the manufacturer's name, brand
name, trade name, slogans, markings, trademark, or other
symbol commonly associated with and generally used in
identifying the product. Temporary outside signs may also
include, for example, the product, price, packaging, date
or dates of a promotion and an announcement of a retail
licensee's specific sponsored event, if the temporary
outside sign is intended to promote a product, and provided
that the announcement of the retail licensee's event and
the product promotion are held simultaneously. However,
temporary outside signs may not include names, slogans,
markings, or logos that relate to the retailer. Nothing in
this subpart (ii) shall prohibit a distributor or importing
distributor from bearing the cost of creating or printing a
temporary outside sign for the retail licensee's specific
sponsored event or from bearing the cost of creating or
printing a temporary sign for a retail licensee containing,
for example, community goodwill expressions, regional
sporting event announcements, or seasonal messages,
provided that the primary purpose of the temporary outside
sign is to highlight, promote, or advertise the product. In
addition, temporary outside signs provided by the
manufacturer to the distributor or importing distributor
may also include, for example, subject to the limitations
of this Section, preprinted community goodwill
expressions, sporting event announcements, seasonal
messages, and manufacturer promotional announcements.
However, a distributor or importing distributor shall not
bear the cost of such manufacturer preprinted signs.
(iii) Permanent inside signs, whether visible from the
outside or the inside of the premises, include, but are not
limited to: alcohol lists and menus that may include names,
slogans, markings, or logos that relate to the retailer;
neons; illuminated signs; clocks; table lamps; mirrors;
tap handles; decalcomanias; window painting; and window
trim. All neons, illuminated signs, clocks, table lamps,
mirrors, and tap handles are the property of the
manufacturer and shall be returned to the manufacturer or
its agent upon request. All permanent inside signs in place
and in use at any one time shall cost in the aggregate not
more than $6,000 per manufacturer. A permanent inside sign
must include the manufacturer's name, brand name, trade
name, slogans, markings, trademark, or other symbol
commonly associated with and generally used in identifying
the product. However, permanent inside signs may not
include names, slogans, markings, or logos that relate to
the retailer. For the purpose of this subpart (iii), all
permanent inside signs may be displayed in an adjacent
courtyard or patio commonly referred to as a "beer garden"
that is a part of the retailer's licensed premises.
(iv) Temporary inside signs shall include, but are not
limited to, lighted chalk boards, acrylic table tent
beverage or hors d'oeuvre list holders, banners, flags,
pennants, streamers, and inside advertising materials such
as posters, placards, bowling sheets, table tents, inserts
for acrylic table tent beverage or hors d'oeuvre list
holders, sports schedules, or similar printed or
illustrated materials and product displays, such as
display racks, bins, barrels, or similar items, the primary
function of which is to temporarily hold and display
alcoholic beverages; however, such items, for example, as
coasters, trays, napkins, glassware and cups shall not be
deemed to be inside signs or advertising materials and may
only be sold to retailers at fair market value, which shall
be no less than the cost of the item to the manufacturer,
distributor, or importing distributor. All temporary
inside signs and inside advertising materials in place and
in use at any one time shall cost in the aggregate not more
than $1,000 per manufacturer. Nothing in this subpart (iv)
prohibits a distributor or importing distributor from
paying the cost of printing or creating any temporary
inside banner or inserts for acrylic table tent beverage or
hors d'oeuvre list holders for a retail licensee, provided
that the primary purpose for the banner or insert is to
highlight, promote, or advertise the product. For the
purpose of this subpart (iv), all temporary inside signs
and inside advertising materials may be displayed in an
adjacent courtyard or patio commonly referred to as a "beer
garden" that is a part of the retailer's licensed premises.
The restrictions contained in this Section 6-6 do not apply
to signs, or promotional or advertising materials furnished by
manufacturers, distributors or importing distributors to a
government owned or operated facility holding a retailer's
license as described in Section 6-5.
No distributor or importing distributor shall directly or
indirectly or through a subsidiary or affiliate, or by any
officer, director or firm of such manufacturer, distributor or
importing distributor, furnish, give, lend or rent, install,
repair or maintain, to or for any retail licensee in this
State, any signs or inside advertising materials described in
subparts (i), (ii), (iii), or (iv) of this Section except as
the agent for or on behalf of a manufacturer, provided that the
total cost of any signs and inside advertising materials
including but not limited to labor, erection, installation and
permit fees shall be paid by the manufacturer whose product or
products said signs and inside advertising materials advertise
and except as follows:
A distributor or importing distributor may purchase from or
enter into a written agreement with a manufacturer or a
manufacturer's designated supplier and such manufacturer or
the manufacturer's designated supplier may sell or enter into
an agreement to sell to a distributor or importing distributor
permitted signs and advertising materials described in
subparts (ii), (iii), or (iv) of this Section for the purpose
of furnishing, giving, lending, renting, installing,
repairing, or maintaining such signs or advertising materials
to or for any retail licensee in this State. Any purchase by a
distributor or importing distributor from a manufacturer or a
manufacturer's designated supplier shall be voluntary and the
manufacturer may not require the distributor or the importing
distributor to purchase signs or advertising materials from the
manufacturer or the manufacturer's designated supplier.
A distributor or importing distributor shall be deemed the
owner of such signs or advertising materials purchased from a
manufacturer or a manufacturer's designated supplier.
The provisions of Public Act 90-373 concerning signs or
advertising materials delivered by a manufacturer to a
distributor or importing distributor shall apply only to signs
or advertising materials delivered on or after August 14, 1997.
A manufacturer, distributor, or importing distributor may
furnish free social media advertising to a retail licensee if
the social media advertisement does not contain the retail
price of any alcoholic liquor and the social media
advertisement complies with any applicable rules or
regulations issued by the Alcohol and Tobacco Tax and Trade
Bureau of the United States Department of the Treasury. A
manufacturer, distributor, or importing distributor may list
the names of one or more unaffiliated retailers in the
advertisement of alcoholic liquor through social media.
Nothing in this Section shall prohibit a retailer from
communicating with a manufacturer, distributor, or importing
distributor on social media or sharing media on the social
media of a manufacturer, distributor, or importing
distributor. A retailer may request free social media
advertising from a manufacturer, distributor, or importing
distributor. Nothing in this Section shall prohibit a
manufacturer, distributor, or importing distributor from
sharing, reposting, or otherwise forwarding a social media post
by a retail licensee, so long as the sharing, reposting, or
forwarding of the social media post does not contain the retail
price of any alcoholic liquor. No manufacturer, distributor, or
importing distributor shall pay or reimburse a retailer,
directly or indirectly, for any social media advertising
services, except as specifically permitted in this Act. No
retailer shall accept any payment or reimbursement, directly or
indirectly, for any social media advertising services offered
by a manufacturer, distributor, or importing distributor,
except as specifically permitted in this Act. For the purposes
of this Section, "social media" means a service, platform, or
site where users communicate with one another and share media,
such as pictures, videos, music, and blogs, with other users
free of charge.
No person engaged in the business of manufacturing,
importing or distributing alcoholic liquors shall, directly or
indirectly, pay for, or advance, furnish, or lend money for the
payment of any license for another. Any licensee who shall
permit or assent, or be a party in any way to any violation or
infringement of the provisions of this Section shall be deemed
guilty of a violation of this Act, and any money loaned
contrary to a provision of this Act shall not be recovered
back, or any note, mortgage or other evidence of indebtedness,
or security, or any lease or contract obtained or made contrary
to this Act shall be unenforceable and void.
This Section shall not apply to airplane licensees
exercising powers provided in paragraph (i) of Section 5-1 of
this Act.
(Source: P.A. 99-448, eff. 8-24-15; 100-885, eff. 8-14-18.)
(235 ILCS 5/6-6.5)
Sec. 6-6.5. Sanitation. A manufacturer, distributor, or
importing distributor may sell coil cleaning services to a
retail licensee at fair market cost.
A manufacturer, distributor, or importing distributor may
sell dispensing accessories to retail licensees at a price not
less than the cost to the manufacturer, distributor, or
importing distributor who initially purchased them. Dispensing
accessories include, but are not limited to, items such as
standards, faucets, cold plates, rods, vents, taps, tap
standards, hoses, washers, couplings, gas gauges, vent
tongues, shanks, and check valves. A manufacturer,
distributor, or importing distributor may service, balance, or
inspect draft beer, wine, or distilled spirits systems at
regular intervals and may provide labor to replace or install
dispensing accessories.
Coil cleaning supplies consisting of detergents, cleaning
chemicals, brushes, or similar type cleaning devices may be
sold at a price not less than the cost to the manufacturer,
distributor, or importing distributor.
(Source: P.A. 90-432, eff. 1-1-98.)
(235 ILCS 5/6-6.6 new)
Sec. 6-6.6. Giving, selling, and leasing dispensing
equipment. Notwithstanding any provision of this Act to the
contrary, a manufacturer, distributor, or importing
distributor may:
(1) give dispensing equipment free of charge to a
retailer, special use permit licensee, or caterer retailer
one time per year for a one-day period. A manufacturer,
distributor, or importing distributor shall not supply a
retailer, special use permit licensee, or caterer retailer
with free beer, wine, spirits, or any other item of value
for the same one-day period the dispensing equipment is
given, except as otherwise provided in this Act or the
Illinois Administrative Code;
(2) give dispensing equipment free of charge to a
special event retailer only for the duration of the
licensed special event. A manufacturer, distributor, or
importing distributor shall not supply a special event
retailer with free beer, wine, or distilled spirits for the
event the dispensing equipment is given, except as
otherwise provided in this Act or the Illinois
Administrative Code; or
(3) sell dispensing equipment to a retailer, special
event retailer, special use permit licensee, or caterer
retailer for a price that is not less than the cost to the
manufacturer, distributor, or importing distributor. For
purposes of this paragraph (3), the cost of dispensing
equipment is the amount that the manufacturer,
distributor, or importing distributor paid for the
dispensing equipment. If the manufacturer, distributor, or
importing distributor did not pay for the dispensing
equipment but was given the equipment, the cost of the
dispensing equipment is equal to (i) the amount another
manufacturer, distributor, or importing distributor paid
for the dispensing equipment, (ii) the cost of
manufacturing or producing the dispensing equipment, or
(iii) the fair market value of the dispensing equipment.
A manufacturer, distributor, or importing distributor may
also enter into a written lease for the fair market value of
the dispensing equipment to retailers, special event
retailers, special use permit licensees, or caterer retailers.
The manufacturer, distributor, or importing distributor shall
invoice and collect the sale price or payment for the entire
lease period from the retailer, special event retailer, special
use permit licensee, or caterer retailer within 30 days of the
date of the invoice or from the date the lease is executed. The
term of any lease for dispensing equipment shall not exceed 180
days in the aggregate in one calendar year, and no lease shall
be renewed automatically. There shall be a lapse of 90
consecutive days before the beginning of a new lease term.
At the direction of the manufacturer, distributor, or
importing distributor, the retailer, special event retailer,
special use permit licensee, or caterer retailer shall return
the equipment or the manufacturer, distributor, or importing
distributor shall retrieve the dispensing equipment at the
termination of the lease.
In this Section, "dispensing equipment" means any portable
or temporary unit the primary purpose of which is to pour
alcoholic liquor or to maintain the alcoholic liquor in a
consumable state. "Dispensing equipment" includes courtesy
wagons, beer wagons, beer trailers, ice bins, draft coolers,
coil boxes, portable bars, and kiosks. "Dispensing equipment"
does not include permanent tap systems, permanent
refrigeration systems, or any other built-in or physically
attached fixture of the retailer, special event retailer,
special use permit licensee, or caterer retailer.
In this Section, "fair market value" for the purposes of
leasing dispensing equipment means (i) the cost of depreciation
of the dispensing equipment to the manufacturer, distributor,
or importing distributor for the same period of the lease or
(ii) the cost of depreciation the manufacturer, distributor, or
importing distributor would have incurred based upon the market
value of the dispensing equipment if the manufacturer,
distributor, or importing distributor did not pay for the
dispensing equipment or if the dispensing equipment is fully
depreciated.
(235 ILCS 5/8-1)
Sec. 8-1. A tax is imposed upon the privilege of engaging
in business as a manufacturer or as an importing distributor of
alcoholic liquor other than beer at the rate of $0.185 per
gallon until September 1, 2009 and $0.231 per gallon beginning
September 1, 2009 for cider containing not less than 0.5%
alcohol by volume nor more than 7% alcohol by volume, $0.73 per
gallon until September 1, 2009 and $1.39 per gallon beginning
September 1, 2009 for wine other than cider containing less
than 7% alcohol by volume, and $4.50 per gallon until September
1, 2009 and $8.55 per gallon beginning September 1, 2009 on
alcohol and spirits manufactured and sold or used by such
manufacturer, or as agent for any other person, or sold or used
by such importing distributor, or as agent for any other
person. A tax is imposed upon the privilege of engaging in
business as a manufacturer of beer or as an importing
distributor of beer at the rate of $0.185 per gallon until
September 1, 2009 and $0.231 per gallon beginning September 1,
2009 on all beer, regardless of alcohol by volume, manufactured
and sold or used by such manufacturer, or as agent for any
other person, or sold or used by such importing distributor, or
as agent for any other person. Any brewer manufacturing beer in
this State shall be entitled to and given a credit or refund of
75% of the tax imposed on each gallon of beer up to 4.9 million
gallons per year in any given calendar year for tax paid or
payable on beer produced and sold in the State of Illinois.
For purposes of this Section, "beer" means beer, ale,
porter, stout, and other similar fermented beverages of any
name or description containing one-half of one percent or more
of alcohol by volume, brewed or produced from malt, wholly or
in part, or from any substitute for malt.
For the purpose of this Section, "cider" means any
alcoholic beverage obtained by the alcohol fermentation of the
juice of apples or pears including, but not limited to,
flavored, sparkling, or carbonated cider.
The credit or refund created by this Act shall apply to all
beer taxes in the calendar years 1982 through 1986.
The increases made by this amendatory Act of the 91st
General Assembly in the rates of taxes imposed under this
Section shall apply beginning on July 1, 1999.
A tax at the rate of 1 per gallon on beer and 48 per
gallon on alcohol and spirits is also imposed upon the
privilege of engaging in business as a retailer or as a
distributor who is not also an importing distributor with
respect to all beer and all alcohol and spirits owned or
possessed by such retailer or distributor when this amendatory
Act of 1969 becomes effective, and with respect to which the
additional tax imposed by this amendatory Act upon
manufacturers and importing distributors does not apply.
Retailers and distributors who are subject to the additional
tax imposed by this paragraph of this Section shall be required
to inventory such alcoholic liquor and to pay this additional
tax in a manner prescribed by the Department.
The provisions of this Section shall be construed to apply
to any importing distributor engaging in business in this
State, whether licensed or not.
However, such tax is not imposed upon any such business as
to any alcoholic liquor shipped outside Illinois by an Illinois
licensed manufacturer or importing distributor, nor as to any
alcoholic liquor delivered in Illinois by an Illinois licensed
manufacturer or importing distributor to a purchaser for
immediate transportation by the purchaser to another state into
which the purchaser has a legal right, under the laws of such
state, to import such alcoholic liquor, nor as to any alcoholic
liquor other than beer sold by one Illinois licensed
manufacturer or importing distributor to another Illinois
licensed manufacturer or importing distributor to the extent to
which the sale of alcoholic liquor other than beer by one
Illinois licensed manufacturer or importing distributor to
another Illinois licensed manufacturer or importing
distributor is authorized by the licensing provisions of this
Act, nor to alcoholic liquor whether manufactured in or
imported into this State when sold to a "non-beverage user"
licensed by the State for use in the manufacture of any of the
following when they are unfit for beverage purposes:
Patent and proprietary medicines and medicinal,
antiseptic, culinary and toilet preparations;
Flavoring extracts and syrups and food products;
Scientific, industrial and chemical products, excepting
denatured alcohol;
Or for scientific, chemical, experimental or mechanical
purposes;
Nor is the tax imposed upon the privilege of engaging in
any business in interstate commerce or otherwise, which
business may not, under the Constitution and Statutes of the
United States, be made the subject of taxation by this State.
The tax herein imposed shall be in addition to all other
occupation or privilege taxes imposed by the State of Illinois
or political subdivision thereof.
If any alcoholic liquor manufactured in or imported into
this State is sold to a licensed manufacturer or importing
distributor by a licensed manufacturer or importing
distributor to be used solely as an ingredient in the
manufacture of any beverage for human consumption, the tax
imposed upon such purchasing manufacturer or importing
distributor shall be reduced by the amount of the taxes which
have been paid by the selling manufacturer or importing
distributor under this Act as to such alcoholic liquor so used
to the Department of Revenue.
If any person received any alcoholic liquors from a
manufacturer or importing distributor, with respect to which
alcoholic liquors no tax is imposed under this Article, and
such alcoholic liquor shall thereafter be disposed of in such
manner or under such circumstances as may cause the same to
become the base for the tax imposed by this Article, such
person shall make the same reports and returns, pay the same
taxes and be subject to all other provisions of this Article
relating to manufacturers and importing distributors.
Nothing in this Article shall be construed to require the
payment to the Department of the taxes imposed by this Article
more than once with respect to any quantity of alcoholic liquor
sold or used within this State.
No tax is imposed by this Act on sales of alcoholic liquor
by Illinois licensed foreign importers to Illinois licensed
importing distributors.
All of the proceeds of the additional tax imposed by Public
Act 96-34 shall be deposited by the Department into the Capital
Projects Fund. The remainder of the tax imposed by this Act
shall be deposited by the Department into the General Revenue
Fund.
A manufacturer of beer that imports or transfers beer into
this State must comply with the provisions of this Section with
regard to the beer imported into this State.
The provisions of this Section 8-1 are severable under
Section 1.31 of the Statute on Statutes.
(Source: P.A. 100-885, eff. 8-14-18.)
(235 ILCS 5/8-5) (from Ch. 43, par. 163a)
(Text of Section before amendment by P.A. 100-1050)
Sec. 8-5. As soon as practicable after any return is filed,
the Department shall examine such return and shall correct such
return according to its best judgment and information, which
return so corrected by the Department shall be prima facie
correct and shall be prima facie evidence of the correctness of
the amount of tax due, as shown therein. Instead of requiring
the licensee to file an amended return, the Department may
simply notify the licensee of the correction or corrections it
has made. Proof of such correction by the Department, or of the
determination of the amount of tax due as provided in Sections
8-4 and 8-10, may be made at any hearing before the Department
or in any legal proceeding by a reproduced copy of the
Department's record relating thereto in the name of the
Department under the certificate of the Director of Revenue.
Such reproduced copy shall, without further proof, be admitted
into evidence before the Department or in any legal proceeding
and shall be prima facie proof of the correctness of the amount
of tax due, as shown therein. If the return so corrected by the
Department discloses the sale or use, by a licensed
manufacturer or importing distributor, of alcoholic liquors as
to which the tax provided for in this Article should have been
paid, but has not been paid, in excess of the alcoholic liquors
reported as being taxable by the licensee, and as to which the
proper tax was paid the Department shall notify the licensee
that it shall issue the taxpayer a notice of tax liability for
the amount of tax claimed by the Department to be due, together
with penalties at the rates prescribed by Sections 3-3, 3-5 and
3-6 of the Uniform Penalty and Interest Act, which amount of
tax shall be equivalent to the amount of tax which, at the
prescribed rate per gallon, should have been paid with respect
to the alcoholic liquors disposed of in excess of those
reported as being taxable. No earlier than 90 days after the
due date of the return, the Department may compare filed
returns, or any amendments thereto, against reports of sales of
alcoholic liquor submitted to the Department by other
manufacturers and distributors. If a return or amended return
is corrected by the Department because the return or amended
return failed to disclose the purchase of alcoholic liquor from
manufacturers or distributors on which the tax provided for in
this Article should have been paid, but has not been paid, the
Department shall issue the taxpayer a notice of tax liability
for the amount of tax claimed by the Department to be due,
together with penalties at the rates prescribed by Sections
3-3, 3-5, and 3-6 of the Uniform Penalty and Interest Act. In a
case where no return has been filed, the Department shall
determine the amount of tax due according to its best judgment
and information and shall issue the taxpayer a notice of tax
liability for the amount of tax claimed by the Department to be
due as herein provided together with penalties at the rates
prescribed by Sections 3-3, 3-5 and 3-6 of the Uniform Penalty
and Interest Act. If, in administering the provisions of this
Act, a comparison of a licensee's return or returns with the
books, records and physical inventories of such licensee
discloses a deficiency which cannot be allocated by the
Department to a particular month or months, the Department
shall issue the taxpayer a notice of tax liability for the
amount of tax claimed by the Department to be due for a given
period, but without any obligation upon the Department to
allocate such deficiency to any particular month or months,
together with penalties at the rates prescribed by Sections
3-3, 3-5 and 3-6 of the Uniform Penalty and Interest Act, which
amount of tax shall be equivalent to the amount of tax which,
at the prescribed rate per gallon, should have been paid with
respect to the alcoholic liquors disposed of in excess of those
reported being taxable, with the tax thereon having been paid
under which circumstances the aforesaid notice of tax liability
shall be prima facie correct and shall be prima facie evidence
of the correctness of the amount of tax due as shown therein;
and proof of such correctness may be made in accordance with,
and the admissibility of a reproduced copy of such notice of
the Department's notice of tax liability shall be governed by,
all the provisions of this Act applicable to corrected returns.
If the licensee dies or becomes a person under legal
disability at any time before the Department issues its notice
of tax liability, such notice shall be issued to the
administrator, executor or other legal representative, as
such, of the deceased or licensee who is under legal
disability.
If such licensee or legal representative, within 60 days
after such notice of tax liability, files a protest to such
notice of tax liability and requests a hearing thereon, the
Department shall give at least 7 days' notice to such licensee
or legal representative, as the case may be, of the time and
place fixed for such hearing and shall hold a hearing in
conformity with the provisions of this Act, and pursuant
thereto shall issue a final assessment to such licensee or
legal representative for the amount found to be due as a result
of such hearing.
If a protest to the notice of tax liability and a request
for a hearing thereon is not filed within 60 days after such
notice of tax liability, such notice of tax liability shall
become final without the necessity of a final assessment being
issued and shall be deemed to be a final assessment.
In case of failure to pay the tax, or any portion thereof,
or any penalty provided for herein, when due, the Department
may recover the amount of such tax, or portion thereof, or
penalty in a civil action; or if the licensee dies or becomes a
person under legal disability, by filing a claim therefor
against his or her estate; provided that no such claim shall be
filed against the estate of any deceased or of the licensee who
is under legal disability for any tax or penalty or portion
thereof except in the manner prescribed and within the time
limited by the Probate Act of 1975, as amended.
The collection of any such tax and penalty, or either, by
any means provided for herein, shall not be a bar to any
prosecution under this Act.
In addition to any other penalty provided for in this
Article, all provisions of the Uniform Penalty and Interest Act
that are not inconsistent with this Act apply any licensee who
fails to pay any tax within the time required by this Article
shall be subject to assessment of penalties and interest at
rates set forth in the Uniform Penalty and Interest Act.
(Source: P.A. 87-205; 87-879.)
(Text of Section after amendment by P.A. 100-1050)
Sec. 8-5. As soon as practicable after any return is filed
but not before 90 days after the return is filed, or any
amendments to that return, whichever is later, the Department
shall examine such return or amended return and shall correct
such return according to its best judgment and information,
which return so corrected by the Department shall be prima
facie correct and shall be prima facie evidence of the
correctness of the amount of tax due, as shown therein. Instead
of requiring the licensee to file an amended return, the
Department may simply notify the licensee of the correction or
corrections it has made. Proof of such correction by the
Department, or of the determination of the amount of tax due as
provided in Sections 8-4 and 8-10, may be made at any hearing
before the Department or in any legal proceeding by a
reproduced copy of the Department's record relating thereto in
the name of the Department under the certificate of the
Director of Revenue. Such reproduced copy shall, without
further proof, be admitted into evidence before the Department
or in any legal proceeding and shall be prima facie proof of
the correctness of the amount of tax due, as shown therein. If
the return so corrected by the Department discloses the sale or
use, by a licensed manufacturer or importing distributor, of
alcoholic liquors as to which the tax provided for in this
Article should have been paid, but has not been paid, in excess
of the alcoholic liquors reported as being taxable by the
licensee, and as to which the proper tax was paid the
Department shall notify the licensee that it shall issue the
taxpayer a notice of tax liability for the amount of tax
claimed by the Department to be due, together with penalties at
the rates prescribed by Sections 3-3, 3-5 and 3-6 of the
Uniform Penalty and Interest Act, which amount of tax shall be
equivalent to the amount of tax which, at the prescribed rate
per gallon, should have been paid with respect to the alcoholic
liquors disposed of in excess of those reported as being
taxable. No earlier than 90 days after the due date of the
return, the Department may compare filed returns, or any
amendments thereto, against reports of sales of alcoholic
liquor submitted to the Department by other manufacturers and
distributors. If a return or amended return is corrected by the
Department because the return or amended return failed to
disclose the purchase of alcoholic liquor from manufacturers or
distributors on which the tax provided for in this Article
should have been paid, but has not been paid, the Department
shall issue the taxpayer a notice of tax liability for the
amount of tax claimed by the Department to be due, together
with penalties at the rates prescribed by Sections 3-3, 3-5,
and 3-6 of the Uniform Penalty and Interest Act. In a case
where no return has been filed, the Department shall determine
the amount of tax due according to its best judgment and
information and shall issue the taxpayer a notice of tax
liability for the amount of tax claimed by the Department to be
due as herein provided together with penalties at the rates
prescribed by Sections 3-3, 3-5 and 3-6 of the Uniform Penalty
and Interest Act. If, in administering the provisions of this
Act, a comparison of a licensee's return or returns with the
books, records and physical inventories of such licensee
discloses a deficiency which cannot be allocated by the
Department to a particular month or months, the Department
shall issue the taxpayer a notice of tax liability for the
amount of tax claimed by the Department to be due for a given
period, but without any obligation upon the Department to
allocate such deficiency to any particular month or months,
together with penalties at the rates prescribed by Sections
3-3, 3-5 and 3-6 of the Uniform Penalty and Interest Act, which
amount of tax shall be equivalent to the amount of tax which,
at the prescribed rate per gallon, should have been paid with
respect to the alcoholic liquors disposed of in excess of those
reported being taxable, with the tax thereon having been paid
under which circumstances the aforesaid notice of tax liability
shall be prima facie correct and shall be prima facie evidence
of the correctness of the amount of tax due as shown therein;
and proof of such correctness may be made in accordance with,
and the admissibility of a reproduced copy of such notice of
the Department's notice of tax liability shall be governed by,
all the provisions of this Act applicable to corrected returns.
If the licensee dies or becomes a person under legal
disability at any time before the Department issues its notice
of tax liability, such notice shall be issued to the
administrator, executor or other legal representative, as
such, of the deceased or licensee who is under legal
disability.
If such licensee or legal representative, within 60 days
after such notice of tax liability, files a protest to such
notice of tax liability and requests a hearing thereon, the
Department shall give at least 7 days' notice to such licensee
or legal representative, as the case may be, of the time and
place fixed for such hearing and shall hold a hearing in
conformity with the provisions of this Act, and pursuant
thereto shall issue a final assessment to such licensee or
legal representative for the amount found to be due as a result
of such hearing.
If a protest to the notice of tax liability and a request
for a hearing thereon is not filed within 60 days after such
notice of tax liability, such notice of tax liability shall
become final without the necessity of a final assessment being
issued and shall be deemed to be a final assessment.
In case of failure to pay the tax, or any portion thereof,
or any penalty provided for herein, when due, the Department
may recover the amount of such tax, or portion thereof, or
penalty in a civil action; or if the licensee dies or becomes a
person under legal disability, by filing a claim therefor
against his or her estate; provided that no such claim shall be
filed against the estate of any deceased or of the licensee who
is under legal disability for any tax or penalty or portion
thereof except in the manner prescribed and within the time
limited by the Probate Act of 1975, as amended.
The collection of any such tax and penalty, or either, by
any means provided for herein, shall not be a bar to any
prosecution under this Act.
In addition to any other penalty provided for in this
Article, all provisions of the Uniform Penalty and Interest Act
that are not inconsistent with this Act apply any licensee who
fails to pay any tax within the time required by this Article
shall be subject to assessment of penalties and interest at
rates set forth in the Uniform Penalty and Interest Act.
(Source: P.A. 100-1050, eff. 7-1-19.)
Section 95. No acceleration or delay. Where this Act makes
changes in a statute that is represented in this Act by text
that is not yet or no longer in effect (for example, a Section
represented by multiple versions), the use of that text does
not accelerate or delay the taking effect of (i) the changes
made by this Act or (ii) provisions derived from any other
Public Act.
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