SB 754 — LIQUOR-CRAFT BREWER-DISTRIB

SB0754 EngrossedEnrolled LRB097 04475 ASK 44514 b AN ACT concerning liquor.

"Craft brewer" means a licensed brewer or licensed non-resident dealer who manufactures up to 465,000 SB0754 EngrossedEnrolled - 2 - LRB097 04475 ASK 44514 b gallons of beer per year and who 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.

Except in the case of an action taken pursuant to a violation of Section 6-3, 6-5, or 6-9, any action by the State Commission to suspend or SB0754 EngrossedEnrolled - 3 - LRB097 04475 ASK 44514 b revoke a licensee's license may be limited to the license for the specific premises where the violation occurred.

(2) To adopt such rules and regulations consistent with the provisions of this Act which shall be necessary to SB0754 EngrossedEnrolled - 4 - LRB097 04475 ASK 44514 b carry on its functions and duties to the end that the health, safety and welfare of the People of the State of Illinois shall be protected and temperance in the consumption of alcoholic liquors shall be fostered and promoted and to distribute copies of such rules and regulations to all licensees affected thereby.

SB0754 EngrossedEnrolled - 5 - LRB097 04475 ASK 44514 b (5.2) To issue a cease and desist notice to persons shipping alcoholic liquor into this State from a point outside of this State if the shipment is in violation of this Act.

(7) The commission shall establish uniform systems of SB0754 EngrossedEnrolled - 6 - LRB097 04475 ASK 44514 b accounts to be kept by all retail licensees having more than 4 employees, and for this purpose the commission may classify all retail licensees having more than 4 employees and establish a uniform system of accounts for each class and prescribe the manner in which such accounts shall be kept.

(8) In the conduct of any hearing authorized to be held by the commission, to appoint, at the commission's discretion, hearing officers to conduct hearings involving SB0754 EngrossedEnrolled - 7 - LRB097 04475 ASK 44514 b complex issues or issues that will require a protracted period of time to resolve, to examine, or cause to be examined, under oath, any licensee, and to examine or cause to be examined the books and records of such licensee;

(10) To adopt such rules and regulations consistent with the provisions of this Act which shall be necessary for the control, sale or disposition of alcoholic liquor damaged as a result of an accident, wreck, flood, fire or SB0754 EngrossedEnrolled - 8 - LRB097 04475 ASK 44514 b other similar occurrence.

As part of its report, the Commission shall provide the SB0754 EngrossedEnrolled - 9 - LRB097 04475 ASK 44514 b following essential information:

The Commission shall consult with the Department of Public Health, the Department of Human Services, the Illinois State Police and any other executive branch agency, and private organizations that may have SB0754 EngrossedEnrolled - 10 - LRB097 04475 ASK 44514 b information relevant to this report.

SB0754 EngrossedEnrolled - 11 - LRB097 04475 ASK 44514 b (F) The number of each of the following:

(17) (A) A person licensed to make wine under the laws of another state who has a winery shipper's license under this amendatory Act and annually produces less than 25,000 SB0754 EngrossedEnrolled - 12 - LRB097 04475 ASK 44514 b gallons of wine or a person who has a first-class or second-class wine manufacturer's license, a first-class or second-class wine-maker's license, or a limited wine manufacturer's license under this Act and annually produces less than 25,000 gallons of wine may make application to the Commission for a self-distribution exemption to allow the sale of not more than 5,000 gallons of the exemption holder's wine to retail licensees per year.

(3) will not annually produce for sale more than 25,000 gallons of SB0754 EngrossedEnrolled - 13 - LRB097 04475 ASK 44514 b wine;

(G) Nothing in this subsection (17) shall prohibit a self-distribution exemption holder from entering SB0754 EngrossedEnrolled - 14 - LRB097 04475 ASK 44514 b into or simultaneously having a distribution agreement with a licensed Illinois distributor.

(2) its volume of beer manufactured and sold for each year since its SB0754 EngrossedEnrolled - 15 - LRB097 04475 ASK 44514 b establishment;

The Commission may fine, suspend, or revoke a self-distribution exemption after a hearing if it finds that the exemption holder has made a material SB0754 EngrossedEnrolled - 16 - LRB097 04475 ASK 44514 b misrepresentation in its application, violated a revenue or alcoholic beverage law of Illinois, exceeded the manufacture of 465,000 gallons of beer in any calendar year or became part of an affiliated group manufacturing more than 465,000 gallons of beer or any other alcoholic beverage.

The General Assembly finds that in order to preserve Illinois' regulatory distribution system, it is necessary to create an exception for smaller manufacturers in order to afford and allow such smaller manufacturers of beer SB0754 EngrossedEnrolled - 17 - LRB097 04475 ASK 44514 b access to the marketplace in order to develop a customer base without impairing the integrity of the 3-tier system.

SB0754 EngrossedEnrolled - 18 - LRB097 04475 ASK 44514 b (a) Manufacturer's license - Class 1.

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 SB0754 EngrossedEnrolled - 19 - LRB097 04475 ASK 44514 b wine manufacturer's license.

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 SB0754 EngrossedEnrolled - 20 - LRB097 04475 ASK 44514 b no other licensees.

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 SB0754 EngrossedEnrolled - 21 - LRB097 04475 ASK 44514 b provisions of this Act.

(a-1) A manufacturer which is licensed in this State to make sales or deliveries of alcoholic liquor 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 SB0754 EngrossedEnrolled - 22 - LRB097 04475 ASK 44514 b persons acting on its behalf with the State Commission.

(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 SB0754 EngrossedEnrolled - 23 - LRB097 04475 ASK 44514 b 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.

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 SB0754 EngrossedEnrolled - 24 - LRB097 04475 ASK 44514 b premise consumption and off premise sale retailer.

(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 SB0754 EngrossedEnrolled - 25 - LRB097 04475 ASK 44514 b 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;

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 SB0754 EngrossedEnrolled - 26 - LRB097 04475 ASK 44514 b permit the sale for resale of any alcoholic liquors to any licensee within this State.

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 SB0754 EngrossedEnrolled - 27 - LRB097 04475 ASK 44514 b 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.

SB0754 EngrossedEnrolled - 28 - LRB097 04475 ASK 44514 b (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;

provided that (i) SB0754 EngrossedEnrolled - 29 - LRB097 04475 ASK 44514 b 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.

The broker shall, upon the acceptance by a retailer of the broker's solicitation of an order or offer to sell or supply or SB0754 EngrossedEnrolled - 30 - LRB097 04475 ASK 44514 b 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.

SB0754 EngrossedEnrolled - 31 - LRB097 04475 ASK 44514 b (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;

A person who SB0754 EngrossedEnrolled - 32 - LRB097 04475 ASK 44514 b holds a brew pub license may simultaneously hold a craft brewer license if he or she otherwise qualifies for the craft brewer license and the craft brewer license is for a location separate from the brew pub's licensed premises.

(q) A special use permit license shall allow an Illinois licensed retailer to transfer a portion of its alcoholic liquor inventory from its retail licensed premises to the premises specified in the license hereby created, and to sell or offer SB0754 EngrossedEnrolled - 33 - LRB097 04475 ASK 44514 b for sale at retail, only in the premises specified in the license hereby created, the transferred alcoholic liquor for use or consumption, but not for resale in any form.

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 SB0754 EngrossedEnrolled - 34 - LRB097 04475 ASK 44514 b 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 this amendatory 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 SB0754 EngrossedEnrolled - 35 - LRB097 04475 ASK 44514 b this State.

25 SB0754 EngrossedEnrolled - 36 - LRB097 04475 ASK 44514 b For a Brew Pub License ........................

100 SB0754 EngrossedEnrolled - 37 - LRB097 04475 ASK 44514 b For a railroad license ........................

The amount credited to each licensee shall be a SB0754 EngrossedEnrolled - 38 - LRB097 04475 ASK 44514 b proportion of the balance in the Dram Fund that is the same as the proportion of the license fee paid by the licensee under this Section for the period in which the balance was accumulated to the aggregate fees paid by all licensees during that period.