SB 2755 — LQR CONTROL ACT-LICENSE

SB2755 EngrossedEnrolled LRB095 15971 KBJ 41983 b AN ACT concerning liquor.

Limited Wine Manufacturer, (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, SB2755 EngrossedEnrolled - 2 - LRB095 15971 KBJ 41983 b (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.

A Brewer may make sales and deliveries of beer to importing distributors, distributors, and to non-licensees, and to retailers provided the brewer obtains an importing SB2755 EngrossedEnrolled - 3 - LRB095 15971 KBJ 41983 b distributor’s license or distributor’s license in accordance with the provisions of this Act.

A second-class wine-maker’s license shall allow SB2755 EngrossedEnrolled - 4 - LRB095 15971 KBJ 41983 b the manufacture of between 50,000 and 100,000 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.

Registration of agents, representatives, or persons acting on behalf of a manufacturer is fulfilled by submitting a form SB2755 EngrossedEnrolled - 5 - LRB095 15971 KBJ 41983 b to the 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 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 SB2755 EngrossedEnrolled - 6 - LRB095 15971 KBJ 41983 b 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.

(e) A special event retailer’s license (not-for-profit) shall permit the licensee to purchase alcoholic liquors from an SB2755 EngrossedEnrolled - 7 - LRB095 15971 KBJ 41983 b 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.

and (iii) show proof satisfactory to the State Commission that the applicant has SB2755 EngrossedEnrolled - 8 - LRB095 15971 KBJ 41983 b obtained local authority approval.

(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 SB2755 EngrossedEnrolled - 9 - LRB095 15971 KBJ 41983 b or riverboat maintains a public dining room or restaurant thereon.

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 SB2755 EngrossedEnrolled - 10 - LRB095 15971 KBJ 41983 b 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.

and provided further, that SB2755 EngrossedEnrolled - 11 - LRB095 15971 KBJ 41983 b airplane licensees exercising the above powers shall be subject to all provisions of Article VIII of this Act as applied to importing distributors.

(l) (i) A broker’s license shall be required of all persons SB2755 EngrossedEnrolled - 12 - LRB095 15971 KBJ 41983 b who solicit orders for, offer to sell or offer to supply alcoholic liquor to retailers in the State of Illinois, or who offer to retailers to ship or cause to be shipped or to make contact with distillers, rectifiers, brewers or manufacturers or any other party within or without the State of Illinois in order that alcoholic liquors be shipped to a distributor, importing distributor or foreign importer, whether such solicitation or offer is consummated within or without the State of Illinois.

(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 SB2755 EngrossedEnrolled - 13 - LRB095 15971 KBJ 41983 b contract carrier.

and further provided that it shall comply with all of the provisions of SB2755 EngrossedEnrolled - 14 - LRB095 15971 KBJ 41983 b Section 6-9 hereof with respect to registration of such Illinois licensees as may be granted the right to sell such brands at wholesale, and (iii) the non-resident dealer shall comply with the provisions of Sections 6-5 and 6-6 of this Act to the same extent that these provisions apply to manufacturers.

An auction liquor license must be obtained for each SB2755 EngrossedEnrolled - 15 - LRB095 15971 KBJ 41983 b auction at least 14 days in advance of the auction date.

Limited Wine Manufacturer, (b) Distributor’s license, SB2755 EngrossedEnrolled - 16 - LRB095 15971 KBJ 41983 b (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.

A Distiller may make sales and deliveries of alcoholic liquor to distillers, rectifiers, importing SB2755 EngrossedEnrolled - 17 - LRB095 15971 KBJ 41983 b distributors, distributors and non-beverage users and to no other licensees.

A person who, prior to the effective date of this amendatory Act of the 95th General Assembly, is a holder of a first-class wine-maker’s license and annually produces more than 25,000 SB2755 EngrossedEnrolled - 18 - LRB095 15971 KBJ 41983 b 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 this amendatory Act of the 95th General Assembly.

Registration of agents, representatives, or persons acting SB2755 EngrossedEnrolled - 19 - LRB095 15971 KBJ 41983 b on behalf of a manufacturer is fulfilled by submitting a form to the 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 alcoholic liquor by the licensee into this State from any point in the United States outside this State, and the purchase of SB2755 EngrossedEnrolled - 20 - LRB095 15971 KBJ 41983 b 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.

Notwithstanding any other provision of this subsection SB2755 EngrossedEnrolled - 21 - LRB095 15971 KBJ 41983 b (d), a retail licensee may sell alcoholic liquors to a special event retailer licensee for resale to the extent permitted under subsection (e).

(A) a resale number issued under Section 2c of the Retailers’ Occupation Tax Act or evidence that the applicant is registered under Section 2a of the Retailers’ Occupation Tax Act, (B) a current, valid exemption identification number issued under Section 1g of the Retailers’ Occupation Tax Act, and a certification to the Commission that the purchase of alcoholic liquors will be a tax-exempt purchase, or (C) a statement that the applicant is not registered under Section 2a of the Retailers’ Occupation Tax Act, does not hold a resale number under Section 2c of the Retailers’ Occupation Tax Act, and does not hold an exemption number under Section 1g of the Retailers’ Occupation Tax Act, in which event the Commission shall set forth on the special SB2755 EngrossedEnrolled - 22 - LRB095 15971 KBJ 41983 b event retailer’s license a statement to that effect;

A license shall be obtained for SB2755 EngrossedEnrolled - 23 - LRB095 15971 KBJ 41983 b each car in which such sales are made.

 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 SB2755 EngrossedEnrolled - 24 - LRB095 15971 KBJ 41983 b 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.

(j) An airplane license shall permit the licensee to import alcoholic liquors into this State from any point in the United SB2755 EngrossedEnrolled - 25 - LRB095 15971 KBJ 41983 b States outside this State and to store such alcoholic liquors in this State;

provided that (i) the foreign importer registers with the State Commission every brand of alcoholic liquor that it proposes to sell to Illinois SB2755 EngrossedEnrolled - 26 - LRB095 15971 KBJ 41983 b licensees during the license period, (ii) and provided further that 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 deliver or have delivered alcoholic liquors, promptly forward to the Illinois Liquor Control Commission a notification of SB2755 EngrossedEnrolled - 27 - LRB095 15971 KBJ 41983 b said transaction in such form as the Commission may by regulations prescribe.

(m) A non-resident dealer’s license shall permit such licensee to ship into and warehouse alcoholic liquor into this SB2755 EngrossedEnrolled - 28 - LRB095 15971 KBJ 41983 b 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;

(o) A caterer retailer license shall allow the holder to serve alcoholic liquors as an incidental part of a food service that serves prepared meals which excludes the serving of snacks as the primary meal, either on or off-site whether licensed or SB2755 EngrossedEnrolled - 29 - LRB095 15971 KBJ 41983 b unlicensed.

(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 SB2755 EngrossedEnrolled - 30 - LRB095 15971 KBJ 41983 b wine manufacturer’s license or who is licensed to make wine under the laws of another state to ship wine made by that licensee directly to a resident of this State who is 21 years of age or older for that resident’s personal use and not for resale.

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 SB2755 EngrossedEnrolled - 31 - LRB095 15971 KBJ 41983 b by the licensee and shipped to persons in this State.

It is the duty of each manufacturer with respect to alcoholic liquor produced or imported by such manufacturer, or purchased tax-free by such manufacturer from another manufacturer or importing distributor, and of each importing distributor as to alcoholic liquor purchased by such importing distributor from foreign importers or from anyone from any point in the United States outside of this State or purchased SB2755 EngrossedEnrolled - 32 - LRB095 15971 KBJ 41983 b tax-free from another manufacturer or importing distributor, to pay the tax imposed by Section 8-1 to the Department of Revenue on or before the 15th day of the calendar month following the calendar month in which such alcoholic liquor is sold or used by such manufacturer or by such importing distributor other than in an authorized tax-free manner or to pay that tax electronically as provided in this Section.

A manufacturer or distributor who files an electronic report and SB2755 EngrossedEnrolled - 33 - LRB095 15971 KBJ 41983 b electronically pays the tax imposed pursuant to Section 8-1 to the Department of Revenue on or before the 15th day of the calendar month following the calendar month in which such alcoholic liquor is sold or used by that manufacturer or importing distributor other than in an authorized tax-free manner shall pay to the Department the amount of the tax imposed pursuant to Section 8-1, less a discount which is allowed to reimburse the manufacturer or importing distributor for the expenses incurred in keeping and maintaining records, preparing and filing the electronic returns, remitting the tax, and supplying data to the Department upon request.

SB2755 EngrossedEnrolled - 34 - LRB095 15971 KBJ 41983 b It shall be presumed that all alcoholic liquors acquired or made by any importing distributor or manufacturer have been sold or used by him in this State and are the basis for the tax imposed by this Article unless proven, to the satisfaction of the Department, that such alcoholic liquors are (1) still in the possession of such importing distributor or manufacturer, or (2) prior to the termination of possession have been lost by theft or through unintentional destruction, or (3) that such alcoholic liquors are otherwise exempt from taxation under this Act.

The Department shall fix the penalty of such bond in each case, taking into consideration the amount of SB2755 EngrossedEnrolled - 35 - LRB095 15971 KBJ 41983 b alcoholic liquor expected to be sold and used by such manufacturer or importing distributor, and the penalty fixed by the Department shall be sufficient, in the Department’s opinion, to protect the State of Illinois against failure to pay any amount due under this Article, but the amount of the penalty fixed by the Department shall not exceed twice the amount of tax liability of a monthly return, nor shall the amount of such penalty be less than $1,000.

If a manufacturer or importing distributor fails to SB2755 EngrossedEnrolled - 36 - LRB095 15971 KBJ 41983 b pay any amount due under this Article, his bond with the Department shall be deemed forfeited, and the Department may institute a suit in its own name on such bond.

In determining the consecutive period of time for qualification as a prior continuous compliance taxpayer, any SB2755 EngrossedEnrolled - 37 - LRB095 15971 KBJ 41983 b consecutive period of time of qualifying compliance immediately prior to the effective date of this amendatory Act of 1987 shall be credited to any manufacturer or importing distributor.

or (2) such taxpayer has ceased to collect receipts on which he is required to remit tax to the Department, has filed a final tax return, and has paid to the Department an amount sufficient to discharge his remaining tax SB2755 EngrossedEnrolled - 38 - LRB095 15971 KBJ 41983 b liability as determined by the Department under this Act.