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

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

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Bill Title: Reinserts the provisions of the engrossed bill with the following changes. Removes provisions authorizing a distributor or importing distributor to transfer any inventory from any off-site location to its caterer retailer premises or special use premises at the conclusion of an off-site event. Provides that a caterer retailer or special use permit licensee may engage a distributor or importing distributor to transfer any inventory from any off-site location to its caterer retailer premises or special use premises at the conclusion of an off-site event if specified conditions are met. Removes a provision prohibiting a distributor or importing distributor from selling or giving coil cleaning services to retailers or other specified licensees. Provides that the term of a lease for dispensing equipment shall not exceed 180 days in the aggregate in one calendar year (instead of 180 days) and no lease (instead of 180-day lease) shall be renewed automatically. Provides that there shall be a lapse of 90 (instead of 30) consecutive days before the beginning of a new lease term. Removes a provision authorizing a manufacturer, distributor, or importing distributor to enter into a written lease for the fair market value of dispensing equipment to specified licensees that sell alcoholic liquor at certain events. Makes changes to the definition of "fair market value". Adds an immediate effective date.

Spectrum: Moderate Partisan Bill (Democrat 5-1)

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

Download: Illinois-2019-SB1831-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 SB1831 Introduced 2/15/2019, by Sen. Antonio Muñoz SYNOPSIS AS INTRODUCED:
235 ILCS 5/1-3.04 from Ch. 43, par. 95.04
235 ILCS 5/5-1 from Ch. 43, par. 115
235 ILCS 5/6-6 from Ch. 43, par. 123
235 ILCS 5/6-6.5
235 ILCS 5/6-6.6 new
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.
LRB101 09851 RPS 54953 b
A BILL FOR
SB1831 LRB101 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 1-3.04, 5-1, 6-6, 6-6.5, 6-6.6 as follows:
(235 ILCS 5/1-3.04) (from Ch. 43, par. 95.04)
Sec. 1-3.04. "Beer" means a beverage obtained by the
alcoholic fermentation of an infusion or concoction of barley,
or other grain, malt, and hops in water, and includes, among
other things, beer, ale, stout, lager beer, porter, beverages
brewed or fermented wholly or in part from malt products, and
the like.
(Source: P.A. 82-783.)
(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,

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(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

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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

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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

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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

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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

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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

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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

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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

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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

SB1831 - 11 - LRB101 09851 RPS 54953 b
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;

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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

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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

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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

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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

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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

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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)

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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.

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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

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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, a
distributor, or an importing distributor to transfer any
inventory from any off-site location to its caterer retailer
premises at the conclusion of an off-site event.

SB1831 - 21 - LRB101 09851 RPS 54953 b
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

SB1831 - 22 - LRB101 09851 RPS 54953 b
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, a
distributor, or an importing distributor to transfer any
inventory from the holder's special use premises to its retail
premises at the conclusion of the special use event.
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

SB1831 - 23 - LRB101 09851 RPS 54953 b
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

SB1831 - 24 - LRB101 09851 RPS 54953 b
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

SB1831 - 25 - LRB101 09851 RPS 54953 b
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

SB1831 - 26 - LRB101 09851 RPS 54953 b
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

SB1831 - 27 - LRB101 09851 RPS 54953 b
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

SB1831 - 28 - LRB101 09851 RPS 54953 b
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 5/6-6) (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

SB1831 - 29 - LRB101 09851 RPS 54953 b
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

SB1831 - 30 - LRB101 09851 RPS 54953 b
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,

SB1831 - 31 - LRB101 09851 RPS 54953 b
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

SB1831 - 32 - LRB101 09851 RPS 54953 b
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

SB1831 - 33 - LRB101 09851 RPS 54953 b
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

SB1831 - 34 - LRB101 09851 RPS 54953 b
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.

SB1831 - 35 - LRB101 09851 RPS 54953 b
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

SB1831 - 36 - LRB101 09851 RPS 54953 b
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.)

SB1831 - 37 - LRB101 09851 RPS 54953 b
(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.
A distributor or importing distributor shall not sell or
give coil cleaning services to a retailer, special use permit
licensee, caterer retailer, or brew pub.
(Source: P.A. 90-432, eff. 1-1-98.)

SB1831 - 38 - LRB101 09851 RPS 54953 b
(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, caterer retailer,
or brew pub one time per year for a one-day period. A
manufacturer, distributor, or importing distributor shall
not supply a retailer, special use permit licensee, caterer
retailer, or brew pub with free beer, wine, or spirits for
the same one-day period the dispensing equipment is given;
(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; or
(3) sell dispensing equipment to a retailer, special
event retailer, special use permit licensee, caterer
retailer, or brew pub 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,

SB1831 - 39 - LRB101 09851 RPS 54953 b
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, caterer retailers, or
brew pubs. 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, caterer retailer, or
brew pub 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 12 months and no 12-month
lease shall be renewed automatically. Upon expiration of a
12-month lease, there shall be a lapse of 30 consecutive days
before the beginning of a new lease term, except that for
concert venues, stadiums, convention or conference centers,
theaters or music venues where the primary purpose of the venue
is to host live entertainment, and state and county fairs, the
term of the lease shall correspond with the entire season or

SB1831 - 40 - LRB101 09851 RPS 54953 b
calendar of games, concerts, conferences, or other events of a
similar nature. At the direction of the manufacturer,
distributor, or importing distributor, the retailer, special
event retailer, special use permit licensee, caterer retailer,
or brew pub shall return the equipment or the manufacturer,
distributor, or importing distributor shall retrieve the
dispensing equipment at the termination of the lease.
For purposes of this Section, "dispensing equipment" means
any portable or temporary unit the primary purpose of which is
to pour beer or to maintain the beer in a consumable state.
"Dispensing equipment" includes, but is not limited to,
courtesy wagons, beer wagons, beer trailers, Waymatics,
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, caterer
retailer, or brew pub.
The State Commission shall adopt rules to define the term
"fair market value" for selling or leasing dispensing
equipment.