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91_HB3272 LRB9111456LDmb 1 AN ACT to amend the Liquor Control Act of 1934 by 2 changing Section 5-1. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Liquor Control Act of 1934 is amended by 6 changing Section 5-1 as follows: 7 (235 ILCS 5/5-1) (from Ch. 43, par. 115) 8 Sec. 5-1. Licenses issued by the Illinois Liquor Control 9 Commission shall be of the following classes: 10 (a) Manufacturer's license - Class 1. Distiller, Class 11 2. Rectifier, Class 3. Brewer, Class 4. First Class Wine 12 Manufacturer, Class 5. Second Class Wine Manufacturer, 13 Class 6. First Class Winemaker, Class 7. Second Class 14 Winemaker, Class 8. Limited Wine Manufacturer, 15 (b) Distributor's license, 16 (c) Importing Distributor's license, 17 (d) Retailer's license, 18 (e) Special Event Retailer's license (not-for-profit), 19 (f) Railroad license, 20 (g) Boat license, 21 (h) Non-Beverage User's license, 22 (i) Wine-maker's retail license, 23 (j) Airplane license, 24 (k) Foreign importer's license, 25 (l) Broker's license, 26 (m) Non-resident dealer's license, 27 (n) Brew Pub license, 28 (o) Auction liquor license, 29 (p) Caterer retailer license, 30 (q) Special use permit license. 31 Nothing in this provision, nor in any subsequent -2- LRB9111456LDmb 1 provision of this Act shall be interpreted as forbidding an 2 individual or firm from concurrently obtaining and holding a 3 Winemaker's and a Wine manufacturer's license. 4 (a) A manufacturer's license shall allow the 5 manufacture, importation in bulk, storage, distribution and 6 sale of alcoholic liquor to persons without the State, as may 7 be permitted by law and to licensees in this State as 8 follows: 9 Class 1. A Distiller may make sales and deliveries of 10 alcoholic liquor to distillers, rectifiers, importing 11 distributors, distributors and non-beverage users and to no 12 other licensees. 13 Class 2. A Rectifier, who is not a distiller, as defined 14 herein, may make sales and deliveries of alcoholic liquor to 15 rectifiers, importing distributors, distributors, retailers 16 and non-beverage users and to no other licensees. 17 Class 3. A Brewer may make sales and deliveries of beer 18 to importing distributors, distributors, and to 19 non-licensees, and to retailers provided the brewer obtains 20 an importing distributor's license or distributor's license 21 in accordance with the provisions of this Act. 22 Class 4. A first class wine-manufacturer may make sales 23 and deliveries of between 40,000 and 50,000 gallons of wine 24 to manufacturers, importing distributors and distributors, 25 and to no other licensees. 26 Class 5. A second class Wine manufacturer may make sales 27 and deliveries of more than 50,000 gallons of wine to 28 manufacturers, importing distributors and distributors and to 29 no other licensees. 30 Class 6. A first-class wine-maker's license shall allow 31 the manufacture of less than 20,000 gallons of wine per year, 32 and the storage and sale of such wine to distributors and 33 retailers in the State and to persons without the State, as 34 may be permitted by law. -3- LRB9111456LDmb 1 Class 7. A second-class wine-maker's license shall allow 2 the manufacture of up to 150,00050,000gallons of wine per 3 year, and the storage and sale of such wine to distributors 4 in this State and to persons without the State, as may be 5 permitted by law. A second-class wine-maker's license shall 6 allow the sale ofno more than 10,000 gallons ofthe 7 licensee's wine directly to retailers. 8 Class 8. A limited wine-manufacturer may make sales and 9 deliveries not to exceed 40,000 gallons of wine per year to 10 distributors, and to non-licensees in accordance with the 11 provisions of this Act. 12 (a-1) A manufacturer which is licensed in this State to 13 make sales or deliveries of alcoholic liquor and which 14 enlists agents, representatives, or individuals acting on its 15 behalf who contact licensed retailers on a regular and 16 continual basis in this State must register those agents, 17 representatives, or persons acting on its behalf with the 18 State Commission. 19 Registration of agents, representatives, or persons 20 acting on behalf of a manufacturer is fulfilled by submitting 21 a form to the Commission. The form shall be developed by the 22 Commission and shall include the name and address of the 23 applicant, the name and address of the manufacturer he or she 24 represents, the territory or areas assigned to sell to or 25 discuss pricing terms of alcoholic liquor, and any other 26 questions deemed appropriate and necessary. All statements 27 in the forms required to be made by law or by rule shall be 28 deemed material, and any person who knowingly misstates any 29 material fact under oath in an application is guilty of a 30 Class B misdemeanor. Fraud, misrepresentation, false 31 statements, misleading statements, evasions, or suppression 32 of material facts in the securing of a registration are 33 grounds for suspension or revocation of the registration. 34 (b) A distributor's license shall allow the wholesale -4- LRB9111456LDmb 1 purchase and storage of alcoholic liquors and sale of 2 alcoholic liquors to licensees in this State and to persons 3 without the State, as may be permitted by law. 4 (c) An importing distributor's license may be issued to 5 and held by those only who are duly licensed distributors, 6 upon the filing of an application by a duly licensed 7 distributor, with the Commission and the Commission shall, 8 without the payment of any fee, immediately issue such 9 importing distributor's license to the applicant, which shall 10 allow the importation of alcoholic liquor by the licensee 11 into this State from any point in the United States outside 12 this State, and the purchase of alcoholic liquor in barrels, 13 casks or other bulk containers and the bottling of such 14 alcoholic liquors before resale thereof, but all bottles or 15 containers so filled shall be sealed, labeled, stamped and 16 otherwise made to comply with all provisions, rules and 17 regulations governing manufacturers in the preparation and 18 bottling of alcoholic liquors. The importing distributor's 19 license shall permit such licensee to purchase alcoholic 20 liquor from Illinois licensed non-resident dealers and 21 foreign importers only. 22 (d) A retailer's license shall allow the licensee to 23 sell and offer for sale at retail, only in the premises 24 specified in such license, alcoholic liquor for use or 25 consumption, but not for resale in any form: Provided that 26 any retail license issued to a manufacturer shall only permit 27 such manufacturer to sell beer at retail on the premises 28 actually occupied by such manufacturer. 29 After January 1, 1995 there shall be 2 classes of 30 licenses issued under a retailers license. 31 (1) A "retailers on premise consumption license" 32 shall allow the licensee to sell and offer for sale at 33 retail, only on the premises specified in the license, 34 alcoholic liquor for use or consumption on the premises -5- LRB9111456LDmb 1 or on and off the premises, but not for resale in any 2 form. 3 (2) An "off premise sale license" shall allow the 4 licensee to sell, or offer for sale at retail, alcoholic 5 liquor intended only for off premise consumption and not 6 for resale in any form. 7 Notwithstanding any other provision of this subsection 8 (d), a retail licensee may sell alcoholic liquors to a 9 special event retailer licensee for resale to the extent 10 permitted under subsection (e). 11 (e) A special event retailer's license (not-for-profit) 12 shall permit the licensee to purchase alcoholic liquors from 13 an Illinois licensed distributor (unless the licensee 14 purchases less than $500 of alcoholic liquors for the special 15 event, in which case the licensee may purchase the alcoholic 16 liquors from a licensed retailer) and shall allow the 17 licensee to sell and offer for sale, at retail, alcoholic 18 liquors for use or consumption, but not for resale in any 19 form and only at the location and on the specific dates 20 designated for the special event in the license. An 21 applicant for a special event retailer license must (i) 22 furnish with the application: (A) a resale number issued 23 under Section 2c of the Retailers' Occupation Tax Act or 24 evidence that the applicant is registered under Section 2a of 25 the Retailers' Occupation Tax Act, (B) a current, valid 26 exemption identification number issued under Section 1g of 27 the Retailers' Occupation Tax Act, and a certification to the 28 Commission that the purchase of alcoholic liquors will be a 29 tax-exempt purchase, or (C) a statement that the applicant is 30 not registered under Section 2a of the Retailers' Occupation 31 Tax Act, does not hold a resale number under Section 2c of 32 the Retailers' Occupation Tax Act, and does not hold an 33 exemption number under Section 1g of the Retailers' 34 Occupation Tax Act, in which event the Commission shall set -6- LRB9111456LDmb 1 forth on the special event retailer's license a statement to 2 that effect; (ii) submit with the application proof 3 satisfactory to the State Commission that the applicant will 4 provide dram shop liability insurance in the maximum limits; 5 and (iii) show proof satisfactory to the State Commission 6 that the applicant has obtained local authority approval. 7 (f) A railroad license shall permit the licensee to 8 import alcoholic liquors into this State from any point in 9 the United States outside this State and to store such 10 alcoholic liquors in this State; to make wholesale purchases 11 of alcoholic liquors directly from manufacturers, foreign 12 importers, distributors and importing distributors from 13 within or outside this State; and to store such alcoholic 14 liquors in this State; provided that the above powers may be 15 exercised only in connection with the importation, purchase 16 or storage of alcoholic liquors to be sold or dispensed on a 17 club, buffet, lounge or dining car operated on an electric, 18 gas or steam railway in this State; and provided further, 19 that railroad licensees exercising the above powers shall be 20 subject to all provisions of Article VIII of this Act as 21 applied to importing distributors. A railroad license shall 22 also permit the licensee to sell or dispense alcoholic 23 liquors on any club, buffet, lounge or dining car operated on 24 an electric, gas or steam railway regularly operated by a 25 common carrier in this State, but shall not permit the sale 26 for resale of any alcoholic liquors to any licensee within 27 this State. A license shall be obtained for each car in 28 which such sales are made. 29 (g) A boat license shall allow the sale of alcoholic 30 liquor in individual drinks, on any passenger boat regularly 31 operated as a common carrier on navigable waters in this 32 State, which boat maintains a public dining room or 33 restaurant thereon. 34 (h) A non-beverage user's license shall allow the -7- LRB9111456LDmb 1 licensee to purchase alcoholic liquor from a licensed 2 manufacturer or importing distributor, without the imposition 3 of any tax upon the business of such licensed manufacturer or 4 importing distributor as to such alcoholic liquor to be used 5 by such licensee solely for the non-beverage purposes set 6 forth in subsection (a) of Section 8-1 of this Act, and such 7 licenses shall be divided and classified and shall permit the 8 purchase, possession and use of limited and stated quantities 9 of alcoholic liquor as follows: 10 Class 1, not to exceed ....................... 500 gallons 11 Class 2, not to exceed ....................... 1,000 gallons 12 Class 3, not to exceed ....................... 5,000 gallons 13 Class 4, not to exceed ....................... 10,000 gallons 14 Class 5, not to exceed ....................... 50,000 gallons 15 (i) A wine-maker's retail license shall allow the 16 licensee to sell and offer for sale at retail in the premises 17 specified in such license not more than 150,00050,00018 gallons of wine per year for use or consumption, but not for 19 resale in any form; this license shall be issued only to a 20 person licensed as a first-class or second-class wine-maker. 21 A wine-maker's retail licensee, upon receiving permission 22 from the Commission, may conduct business at multiple 23 locationsa second locationthat areisseparate from the 24 location specified in its wine-maker's retail license. One 25 wine-maker's retail license-multiplelicense-secondlocation 26 may be issued per year to a wine-maker's retail licensee 27 allowing the licensee to sell and offer for sale at retail in 28 the premises specified in the wine-maker's retail 29 license-multiplelicense-secondlocation up to 150,00050,00030 gallons of wine that was produced at the licensee's first 31 location per year for use and consumption and not for resale. 32 (j) An airplane license shall permit the licensee to 33 import alcoholic liquors into this State from any point in 34 the United States outside this State and to store such -8- LRB9111456LDmb 1 alcoholic liquors in this State; to make wholesale purchases 2 of alcoholic liquors directly from manufacturers, foreign 3 importers, distributors and importing distributors from 4 within or outside this State; and to store such alcoholic 5 liquors in this State; provided that the above powers may be 6 exercised only in connection with the importation, purchase 7 or storage of alcoholic liquors to be sold or dispensed on an 8 airplane; and provided further, that airplane licensees 9 exercising the above powers shall be subject to all 10 provisions of Article VIII of this Act as applied to 11 importing distributors. An airplane licensee shall also 12 permit the sale or dispensing of alcoholic liquors on any 13 passenger airplane regularly operated by a common carrier in 14 this State, but shall not permit the sale for resale of any 15 alcoholic liquors to any licensee within this State. A 16 single airplane license shall be required of an airline 17 company if liquor service is provided on board aircraft in 18 this State. The annual fee for such license shall be as 19 determined in Section 5-3. 20 (k) A foreign importer's license shall permit such 21 licensee to purchase alcoholic liquor from Illinois licensed 22 non-resident dealers only, and to import alcoholic liquor 23 other than in bulk from any point outside the United States 24 and to sell such alcoholic liquor to Illinois licensed 25 importing distributors and to no one else in Illinois. 26 (l) (i) A broker's license shall be required of all 27 persons who solicit orders for, offer to sell or offer to 28 supply alcoholic liquor to retailers in the State of 29 Illinois, or who offer to retailers to ship or cause to be 30 shipped or to make contact with distillers, rectifiers, 31 brewers or manufacturers or any other party within or without 32 the State of Illinois in order that alcoholic liquors be 33 shipped to a distributor, importing distributor or foreign 34 importer, whether such solicitation or offer is consummated -9- LRB9111456LDmb 1 within or without the State of Illinois. 2 No holder of a retailer's license issued by the Illinois 3 Liquor Control Commission shall purchase or receive any 4 alcoholic liquor, the order for which was solicited or 5 offered for sale to such retailer by a broker unless the 6 broker is the holder of a valid broker's license. 7 The broker shall, upon the acceptance by a retailer of 8 the broker's solicitation of an order or offer to sell or 9 supply or deliver or have delivered alcoholic liquors, 10 promptly forward to the Illinois Liquor Control Commission a 11 notification of said transaction in such form as the 12 Commission may by regulations prescribe. 13 (ii) A broker's license shall be required of a person 14 within this State, other than a retail licensee, who, for a 15 fee or commission, promotes, solicits, or accepts orders for 16 alcoholic liquor, for use or consumption and not for resale, 17 to be shipped from this State and delivered to residents 18 outside of this State by an express company, common carrier, 19 or contract carrier. This Section does not apply to any 20 person who promotes, solicits, or accepts orders for wine as 21 specifically authorized in Section 6-29 of this Act. 22 A broker's license under this subsection (1) shall not 23 entitle the holder to buy or sell any alcoholic liquors for 24 his own account or to take or deliver title to such alcoholic 25 liquors. 26 This subsection (1) shall not apply to distributors, 27 employees of distributors, or employees of a manufacturer who 28 has registered the trademark, brand or name of the alcoholic 29 liquor pursuant to Section 6-9 of this Act, and who regularly 30 sells such alcoholic liquor in the State of Illinois only to 31 its registrants thereunder. 32 Any agent, representative, or person subject to 33 registration pursuant to subsection (a-1) of this Section 34 shall not be eligible to receive a broker's license. -10- LRB9111456LDmb 1 (m) A non-resident dealer's license shall permit such 2 licensee to ship into and warehouse alcoholic liquor into 3 this State from any point outside of this State, and to sell 4 such alcoholic liquor to Illinois licensed foreign importers 5 and importing distributors and to no one else in this State; 6 provided that said non-resident dealer shall register with 7 the Illinois Liquor Control Commission each and every brand 8 of alcoholic liquor which it proposes to sell to Illinois 9 licensees during the license period; and further provided 10 that it shall comply with all of the provisions of Section 11 6-9 hereof with respect to registration of such Illinois 12 licensees as may be granted the right to sell such brands at 13 wholesale. 14 (n) A brew pub license shall allow the licensee to 15 manufacture beer only on the premises specified in the 16 license, to make sales of the beer manufactured on the 17 premises to importing distributors, distributors, and to 18 non-licensees for use and consumption, to store the beer upon 19 the premises, and to sell and offer for sale at retail from 20 the licensed premises, provided that a brew pub licensee 21 shall not sell for off-premises consumption more than 50,000 22 gallons per year. 23 (o) A caterer retailer license shall allow the holder to 24 serve alcoholic liquors as an incidental part of a food 25 service that serves prepared meals which excludes the serving 26 of snacks as the primary meal, either on or off-site whether 27 licensed or unlicensed. 28 (p) An auction liquor license shall allow the licensee 29 to sell and offer for sale at auction wine and spirits for 30 use or consumption, or for resale by an Illinois liquor 31 licensee in accordance with provisions of this Act. An 32 auction liquor license will be issued to a person and it will 33 permit the auction liquor licensee to hold the auction 34 anywhere in the State. An auction liquor license must be -11- LRB9111456LDmb 1 obtained for each auction at least 14 days in advance of the 2 auction date. 3 (q) A special use permit license shall allow an Illinois 4 licensed retailer to transfer a portion of its alcoholic 5 liquor inventory from its retail licensed premises to the 6 premises specified in the license hereby created, and to sell 7 or offer for sale at retail, only in the premises specified 8 in the license hereby created, the transferred alcoholic 9 liquor for use or consumption, but not for resale in any 10 form. A special use permit license may be granted for the 11 following time periods: one day or less; 2 or more days to a 12 maximum of 15 days per location in any 12 month period. An 13 applicant for the special use permit license must also submit 14 with the application proof satisfactory to the State 15 Commission that the applicant will provide dram shop 16 liability insurance to the maximum limits and have local 17 authority approval. 18 (Source: P.A. 90-77, eff. 7-8-97; 90-432, eff. 1-1-98; 19 90-596, eff. 6-24-98; 90-655, eff. 7-30-98; 90-739, eff. 20 8-13-98; 91-357, eff. 7-29-99.) 21 Section 99. Effective date. This Act takes effect upon 22 becoming law.