HB 3172

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Full Text of HB3172
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	HB3172 - 104th General Assembly
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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB3172
Introduced 2/18/2025, by Rep. Theresa Mah
SYNOPSIS AS INTRODUCED:
235 ILCS 5/1-3.12	  from Ch. 43, par. 95.12
235 ILCS 5/1-3.40
235 ILCS 5/3-12
235 ILCS 5/5-1	  from Ch. 43, par. 115
235 ILCS 5/5-3	  from Ch. 43, par. 118
Amends the Liquor Control Act of 1934. Establishes a third-class wine-makers license. Provides that a third-class wine-makers license allows the manufacture of up to 250,000 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. Provides that a person who has a third-class wine-maker's license and annually produces less than 250,000 gallons of wine may make application to the Illinois Liquor Control Commission for a self-distribution exemption to allow the sale of not more than 25,000 gallons of the exemption holder's wine to retail licensees per year and to sell cider, mead, or both cider and mead to brewers, class 1 brewers, class 2 brewers, and class 3 brewers that sell beer, cider, mead, or any combination thereof to non-licensees at their breweries. Provides that a wine-maker's premises license shall allow a licensee who concurrently holds a third-class wine-maker's license to sell and offer for sale at retail in the premises specified in such license up to 250,000 gallons of the third-class wine-maker's wine that is made at the third-class wine-maker's licensed premises per year for use or consumption but not for resale in any form. Provides that a wine-maker's premises license shall allow the licensee to sell and offer for sale at up to 3 (instead of 2) additional locations for use and consumption and not for resale. Sets forth licensing fees for a third-class wine-maker and for a fourth location of a wine-maker's premises license.
LRB104 08306 RPS 18357 b
A BILL FOR
		HB3172		LRB104 08306 RPS 18357 b
1    AN ACT concerning liquor.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Liquor Control Act of 1934 is amended by
5changing Sections 1-3.12, 1-3.40, 3-12, 5-1, and 5-3 as
6follows:
7    (235 ILCS 5/1-3.12)  (from Ch. 43, par. 95.12)
8    Sec. 1-3.12. "Wine-maker" means a person engaged in the
9making of less than 50,000 gallons of wine annually other than
10a person issued a Second Class wine-maker's license or a 
11third-class wine-maker's license.
12(Source: P.A. 92-378, eff. 8-16-01.)
13    (235 ILCS 5/1-3.40)
14    Sec. 1-3.40. Manufacturer class license holder.
15"Manufacturer class license holder" means any holder of a
16Manufacturer's license as provided in Section 5-1 of this Act.
17The Manufacturer's licenses are: a Class 1. Distiller, a Class
182. Rectifier, a Class 3. Brewer, a Class 4. First Class Wine
19Manufacturer, a Class 5. Second Class Wine Manufacturer, a
20Class 6. First Class Winemaker, a Class 7. Second Class
21Winemaker, a Class 8. Limited Wine Manufacturer, a Class 9.
22Craft Distiller, a Class 10. Class 1 Craft Distiller, a Class
		HB3172	- 2 -	LRB104 08306 RPS 18357 b
111. Class 2 Craft Distiller, a Class 12. Class 1 Brewer, [and] a
2Class 13. Class 2 Brewer, a Class 14. Third-Class Wine-Maker,
3and any future Manufacturer's licenses established by law.
4(Source: P.A. 101-482, eff. 8-23-19; 101-615, eff. 12-20-19.)
5    (235 ILCS 5/3-12)
6    Sec. 3-12. Powers and duties of State Commission.
7    (a) The State Commission shall have the following powers,
8functions, and duties:
9        (1) To receive applications and to issue licenses to
10    manufacturers, foreign importers, importing distributors,
11    distributors, non-resident dealers, on premise consumption
12    retailers, off premise sale retailers, special event
13    retailer licensees, special use permit licenses, auction
14    liquor licenses, brew pubs, caterer retailers,
15    non-beverage users, railroads, including owners and
16    lessees of sleeping, dining and cafe cars, airplanes,
17    boats, brokers, and wine maker's premises licensees in
18    accordance with the provisions of this Act, and to suspend
19    or revoke such licenses upon the State Commission's
20    determination, upon notice after hearing, that a licensee
21    has violated any provision of this Act or any rule or
22    regulation issued pursuant thereto and in effect for 30
23    days prior to such violation. Except in the case of an
24    action taken pursuant to a violation of Section 6-3, 6-5,
25    or 6-9, any action by the State Commission to suspend or
		HB3172	- 3 -	LRB104 08306 RPS 18357 b
1    revoke a licensee's license may be limited to the license
2    for the specific premises where the violation occurred. An
3    action for a violation of this Act shall be commenced by
4    the State Commission within 2 years after the date the
5    State Commission becomes aware of the violation.
6        In lieu of suspending or revoking a license, the
7    commission may impose a fine, upon the State Commission's
8    determination and notice after hearing, that a licensee
9    has violated any provision of this Act or any rule or
10    regulation issued pursuant thereto and in effect for 30
11    days prior to such violation.
12        For the purpose of this paragraph (1), when
13    determining multiple violations for the sale of alcohol to
14    a person under the age of 21, a second or subsequent
15    violation for the sale of alcohol to a person under the age
16    of 21 shall only be considered if it was committed within 5
17    years after the date when a prior violation for the sale of
18    alcohol to a person under the age of 21 was committed.
19        The fine imposed under this paragraph may not exceed
20    $500 for each violation. Each day that the activity, which
21    gave rise to the original fine, continues is a separate
22    violation. The maximum fine that may be levied against any
23    licensee, for the period of the license, shall not exceed
24    $20,000. The maximum penalty that may be imposed on a
25    licensee for selling a bottle of alcoholic liquor with a
26    foreign object in it or serving from a bottle of alcoholic
		HB3172	- 4 -	LRB104 08306 RPS 18357 b
1    liquor with a foreign object in it shall be the
2    destruction of that bottle of alcoholic liquor for the
3    first 10 bottles so sold or served from by the licensee.
4    For the eleventh bottle of alcoholic liquor and for each
5    third bottle thereafter sold or served from by the
6    licensee with a foreign object in it, the maximum penalty
7    that may be imposed on the licensee is the destruction of
8    the bottle of alcoholic liquor and a fine of up to $50.
9        Any notice issued by the State Commission to a
10    licensee for a violation of this Act or any notice with
11    respect to settlement or offer in compromise shall include
12    the field report, photographs, and any other supporting
13    documentation necessary to reasonably inform the licensee
14    of the nature and extent of the violation or the conduct
15    alleged to have occurred. The failure to include such
16    required documentation shall result in the dismissal of
17    the action.
18        (2) To adopt such rules and regulations consistent
19    with the provisions of this Act which shall be necessary
20    to carry on its functions and duties to the end that the
21    health, safety and welfare of the People of the State of
22    Illinois shall be protected and temperance in the
23    consumption of alcoholic liquors shall be fostered and
24    promoted and to distribute copies of such rules and
25    regulations to all licensees affected thereby.
26        (3) To call upon other administrative departments of
		HB3172	- 5 -	LRB104 08306 RPS 18357 b
1    the State, county and municipal governments, county and
2    city police departments and upon prosecuting officers for
3    such information and assistance as it deems necessary in
4    the performance of its duties.
5        (4) To recommend to local commissioners rules and
6    regulations, not inconsistent with the law, for the
7    distribution and sale of alcoholic liquors throughout the
8    State.
9        (5) To inspect, or cause to be inspected, any premises
10    in this State where alcoholic liquors are manufactured,
11    distributed, warehoused, or sold. Nothing in this Act
12    authorizes an agent of the State Commission to inspect
13    private areas within the premises without reasonable
14    suspicion or a warrant during an inspection. "Private
15    areas" include, but are not limited to, safes, personal
16    property, and closed desks.
17        (5.1) Upon receipt of a complaint or upon having
18    knowledge that any person is engaged in business as a
19    manufacturer, importing distributor, distributor, or
20    retailer without a license or valid license, to conduct an
21    investigation. If, after conducting an investigation, the
22    State Commission is satisfied that the alleged conduct
23    occurred or is occurring, it may issue a cease and desist
24    notice as provided in this Act, impose civil penalties as
25    provided in this Act, notify the local liquor authority,
26    or file a complaint with the State's Attorney's Office of
		HB3172	- 6 -	LRB104 08306 RPS 18357 b
1    the county where the incident occurred or the Attorney
2    General.
3        (5.2) Upon receipt of a complaint or upon having
4    knowledge that any person is shipping alcoholic liquor
5    into this State from a point outside of this State if the
6    shipment is in violation of this Act, to conduct an
7    investigation. If, after conducting an investigation, the
8    State Commission is satisfied that the alleged conduct
9    occurred or is occurring, it may issue a cease and desist
10    notice as provided in this Act, impose civil penalties as
11    provided in this Act, notify the foreign jurisdiction, or
12    file a complaint with the State's Attorney's Office of the
13    county where the incident occurred or the Attorney
14    General.
15        (5.3) To receive complaints from licensees, local
16    officials, law enforcement agencies, organizations, and
17    persons stating that any licensee has been or is violating
18    any provision of this Act or the rules and regulations
19    issued pursuant to this Act. Such complaints shall be in
20    writing, signed and sworn to by the person making the
21    complaint, and shall state with specificity the facts in
22    relation to the alleged violation. If the State Commission
23    has reasonable grounds to believe that the complaint
24    substantially alleges a violation of this Act or rules and
25    regulations adopted pursuant to this Act, it shall conduct
26    an investigation. If, after conducting an investigation,
		HB3172	- 7 -	LRB104 08306 RPS 18357 b
1    the State Commission is satisfied that the alleged
2    violation did occur, it shall proceed with disciplinary
3    action against the licensee as provided in this Act.
4        (5.4) To make arrests and issue notices of civil
5    violations where necessary for the enforcement of this
6    Act.
7        (5.5) To investigate any and all unlicensed activity.
8        (5.6) To impose civil penalties or fines to any person
9    who, without holding a valid license, engages in conduct
10    that requires a license pursuant to this Act, in an amount
11    not to exceed $20,000 for each offense as determined by
12    the State Commission. A civil penalty shall be assessed by
13    the State Commission after a hearing is held in accordance
14    with the provisions set forth in this Act regarding the
15    provision of a hearing for the revocation or suspension of
16    a license.
17        (6) To hear and determine appeals from orders of a
18    local commission in accordance with the provisions of this
19    Act, as hereinafter set forth. Hearings under this
20    subsection shall be held in Springfield or Chicago, at
21    whichever location is the more convenient for the majority
22    of persons who are parties to the hearing.
23        (7) The State Commission shall establish uniform
24    systems of accounts to be kept by all retail licensees
25    having more than 4 employees, and for this purpose the
26    State Commission may classify all retail licensees having
		HB3172	- 8 -	LRB104 08306 RPS 18357 b
1    more than 4 employees and establish a uniform system of
2    accounts for each class and prescribe the manner in which
3    such accounts shall be kept. The State Commission may also
4    prescribe the forms of accounts to be kept by all retail
5    licensees having more than 4 employees, including, but not
6    limited to, accounts of earnings and expenses and any
7    distribution, payment, or other distribution of earnings
8    or assets, and any other forms, records, and memoranda
9    which in the judgment of the commission may be necessary
10    or appropriate to carry out any of the provisions of this
11    Act, including, but not limited to, such forms, records,
12    and memoranda as will readily and accurately disclose at
13    all times the beneficial ownership of such retail licensed
14    business. The accounts, forms, records, and memoranda
15    shall be available at all reasonable times for inspection
16    by authorized representatives of the State Commission or
17    by any local liquor control commissioner or his or her
18    authorized representative. The commission may, from time
19    to time, alter, amend, or repeal, in whole or in part, any
20    uniform system of accounts, or the form and manner of
21    keeping accounts.
22        (8) In the conduct of any hearing authorized to be
23    held by the State Commission, to appoint, at the
24    commission's discretion, hearing officers to conduct
25    hearings involving complex issues or issues that will
26    require a protracted period of time to resolve, to
		HB3172	- 9 -	LRB104 08306 RPS 18357 b
1    examine, or cause to be examined, under oath, any
2    licensee, and to examine or cause to be examined the books
3    and records of such licensee; to hear testimony and take
4    proof material for its information in the discharge of its
5    duties hereunder; to administer or cause to be
6    administered oaths; for any such purpose to issue subpoena
7    or subpoenas to require the attendance of witnesses and
8    the production of books, which shall be effective in any
9    part of this State, and to adopt rules to implement its
10    powers under this paragraph (8).
11        Any circuit court may, by order duly entered, require
12    the attendance of witnesses and the production of relevant
13    books subpoenaed by the State Commission and the court may
14    compel obedience to its order by proceedings for contempt.
15        (9) To investigate the administration of laws in
16    relation to alcoholic liquors in this and other states and
17    any foreign countries, and to recommend from time to time
18    to the Governor and through him or her to the legislature
19    of this State, such amendments to this Act, if any, as it
20    may think desirable and as will serve to further the
21    general broad purposes contained in Section 1-2 hereof.
22        (10) To adopt such rules and regulations consistent
23    with the provisions of this Act which shall be necessary
24    for the control, sale, or disposition of alcoholic liquor
25    damaged as a result of an accident, wreck, flood, fire, or
26    other similar occurrence.
		HB3172	- 10 -	LRB104 08306 RPS 18357 b
1        (11) To develop industry educational programs related
2    to responsible serving and selling, particularly in the
3    areas of overserving consumers and illegal underage
4    purchasing and consumption of alcoholic beverages.
5        (11.1) To license persons providing education and
6    training to alcohol beverage sellers and servers for
7    mandatory and non-mandatory training under the Beverage
8    Alcohol Sellers and Servers Education and Training
9    (BASSET) programs and to develop and administer a public
10    awareness program in Illinois to reduce or eliminate the
11    illegal purchase and consumption of alcoholic beverage
12    products by persons under the age of 21. Application for a
13    license shall be made on forms provided by the State
14    Commission.
15        (12) To develop and maintain a repository of license
16    and regulatory information.
17        (13) (Blank).
18        (14) On or before April 30, 2008 and every 2 years
19    thereafter, the State Commission shall present a written
20    report to the Governor and the General Assembly that shall
21    be based on a study of the impact of Public Act 95-634 on
22    the business of soliciting, selling, and shipping wine
23    from inside and outside of this State directly to
24    residents of this State. As part of its report, the State
25    Commission shall provide all of the following information:
26            (A) The amount of State excise and sales tax
		HB3172	- 11 -	LRB104 08306 RPS 18357 b
1        revenues generated.
2            (B) The amount of licensing fees received.
3            (C) The number of cases of wine shipped from
4        inside and outside of this State directly to residents
5        of this State.
6            (D) The number of alcohol compliance operations
7        conducted.
8            (E) The number of winery shipper's licenses
9        issued.
10            (F) The number of each of the following: reported
11        violations; cease and desist notices issued by the
12        Commission; notices of violations issued by the
13        Commission and to the Department of Revenue; and
14        notices and complaints of violations to law
15        enforcement officials, including, without limitation,
16        the Illinois Attorney General and the U.S. Department
17        of Treasury's Alcohol and Tobacco Tax and Trade
18        Bureau.
19        (15) As a means to reduce the underage consumption of
20    alcoholic liquors, the State Commission shall conduct
21    alcohol compliance operations to investigate whether
22    businesses that are soliciting, selling, and shipping wine
23    from inside or outside of this State directly to residents
24    of this State are licensed by this State or are selling or
25    attempting to sell wine to persons under 21 years of age in
26    violation of this Act.
		HB3172	- 12 -	LRB104 08306 RPS 18357 b
1        (16) The State Commission shall, in addition to
2    notifying any appropriate law enforcement agency, submit
3    notices of complaints or violations of Sections 6-29 and
4    6-29.1 by persons who do not hold a winery shipper's
5    license under this Act to the Illinois Attorney General
6    and to the U.S. Department of Treasury's Alcohol and
7    Tobacco Tax and Trade Bureau.
8        (17)(A) A person licensed to make wine under the laws
9    of another state who has a winery shipper's license under
10    this Act and annually produces less than 25,000 gallons of
11    wine or a person who has a first-class or second-class
12    wine manufacturer's license, a first-class or second-class
13    wine-maker's license, or a limited wine manufacturer's
14    license under this Act and annually produces less than
15    25,000 gallons of wine may make application to the
16    Commission for a self-distribution exemption to allow the
17    sale of not more than 5,000 gallons of the exemption
18    holder's wine to retail licensees per year and to sell
19    cider, mead, or both cider and mead to brewers, class 1
20    brewers, class 2 brewers, and class 3 brewers that,
21    pursuant to subsection (e) of Section 6-4 of this Act,
22    sell beer, cider, mead, or any combination thereof to
23    non-licensees at their breweries.
24        (B) In the application, which shall be sworn under
25    penalty of perjury, such person shall state (1) the date
26    it was established; (2) its volume of production and sales
		HB3172	- 13 -	LRB104 08306 RPS 18357 b
1    for each year since its establishment; (3) its efforts to
2    establish distributor relationships; (4) that a
3    self-distribution exemption is necessary to facilitate the
4    marketing of its wine; and (5) that it will comply with the
5    liquor and revenue laws of the United States, this State,
6    and any other state where it is licensed.
7        (C) The State Commission shall approve the application
8    for a self-distribution exemption if such person: (1) is
9    in compliance with State revenue and liquor laws; (2) is
10    not a member of any affiliated group that produces
11    directly or indirectly more than 25,000 gallons of wine
12    per annum, 930,000 gallons of beer per annum, or 50,000
13    gallons of spirits per annum; (3) will not annually
14    produce for sale more than 25,000 gallons of wine, 930,000
15    gallons of beer, or 50,000 gallons of spirits; and (4)
16    will not annually sell more than 5,000 gallons of its wine
17    to retail licensees.
18        (D) A self-distribution exemption holder shall
19    annually certify to the State Commission its production of
20    wine in the previous 12 months and its anticipated
21    production and sales for the next 12 months. The State
22    Commission may fine, suspend, or revoke a
23    self-distribution exemption after a hearing if it finds
24    that the exemption holder has made a material
25    misrepresentation in its application, violated a revenue
26    or liquor law of Illinois, exceeded production of 25,000
		HB3172	- 14 -	LRB104 08306 RPS 18357 b
1    gallons of wine, 930,000 gallons of beer, or 50,000
2    gallons of spirits in any calendar year, or become part of
3    an affiliated group producing more than 25,000 gallons of
4    wine, 930,000 gallons of beer, or 50,000 gallons of
5    spirits.
6        (E) Except in hearings for violations of this Act or
7    Public Act 95-634 or a bona fide investigation by duly
8    sworn law enforcement officials, the State Commission, or
9    its agents, the State Commission shall maintain the
10    production and sales information of a self-distribution
11    exemption holder as confidential and shall not release
12    such information to any person.
13        (F) The State Commission shall issue regulations
14    governing self-distribution exemptions consistent with
15    this Section and this Act.
16        (G) Nothing in this paragraph (17) shall prohibit a
17    self-distribution exemption holder from entering into or
18    simultaneously having a distribution agreement with a
19    licensed Illinois distributor.
20        (H) It is the intent of this paragraph (17) to promote
21    and continue orderly markets. The General Assembly finds
22    that, in order to preserve Illinois' regulatory
23    distribution system, it is necessary to create an
24    exception for smaller makers of wine as their wines are
25    frequently adjusted in varietals, mixes, vintages, and
26    taste to find and create market niches sometimes too small
		HB3172	- 15 -	LRB104 08306 RPS 18357 b
1    for distributor or importing distributor business
2    strategies. Limited self-distribution rights will afford
3    and allow smaller makers of wine access to the marketplace
4    in order to develop a customer base without impairing the
5    integrity of the 3-tier system.
6        (17.5)(A) A person who has a third-class wine-maker's 
7    license and annually produces less than 250,000 gallons of 
8    wine may make application to the Commission for a 
9    self-distribution exemption to allow the sale of not more 
10    than 25,000 gallons of the exemption holder's wine to 
11    retail licensees per year and to sell cider, mead, or both 
12    cider and mead to brewers, class 1 brewers, class 2 
13    brewers, and class 3 brewers that, pursuant to subsection 
14    (e) of Section 6-4 of this Act, sell beer, cider, mead, or 
15    any combination thereof to non-licensees at their 
16    breweries.
17        (B) In the application, which shall be sworn under 
18    penalty of perjury, such person shall state (1) the date 
19    it was established; (2) its volume of production and sales 
20    for each year since its establishment; (3) its efforts to 
21    establish distributor relationships; (4) that a 
22    self-distribution exemption is necessary to facilitate the 
23    marketing of its wine; and (5) that it will comply with the 
24    liquor and revenue laws of the United States, this State, 
25    and any other state where it is licensed.
26        (C) The State Commission shall approve the application 
		HB3172	- 16 -	LRB104 08306 RPS 18357 b
1    for a self-distribution exemption if such person: (1) is 
2    in compliance with State revenue and liquor laws; (2) is 
3    not a member of any affiliated group that produces 
4    directly or indirectly more than 250,000 gallons of wine 
5    per annum, 930,000 gallons of beer per annum, or 50,000 
6    gallons of spirits per annum; (3) will not annually 
7    produce for sale more than 250,000 gallons of wine, 
8    930,000 gallons of beer, or 50,000 gallons of spirits; and 
9    (4) will not annually sell more than 25,000 gallons of its 
10    wine to retail licensees.
11        (D) A self-distribution exemption holder shall 
12    annually certify to the State Commission its production of 
13    wine in the previous 12 months and its anticipated 
14    production and sales for the next 12 months. The State 
15    Commission may fine, suspend, or revoke a 
16    self-distribution exemption after a hearing if it finds 
17    that the exemption holder has made a material 
18    misrepresentation in its application, violated a revenue 
19    or liquor law of Illinois, exceeded production of 250,000 
20    gallons of wine, 930,000 gallons of beer, or 50,000 
21    gallons of spirits in any calendar year, or become part of 
22    an affiliated group producing more than 250,000 gallons of 
23    wine, 930,000 gallons of beer, or 50,000 gallons of 
24    spirits.
25        (E) Except in hearings for violations of this Act or 
26    Public Act 95-634 or a bona fide investigation by duly 
		HB3172	- 17 -	LRB104 08306 RPS 18357 b
1    sworn law enforcement officials, the State Commission, or 
2    its agents, the State Commission shall maintain the 
3    production and sales information of a self-distribution 
4    exemption holder as confidential and shall not release 
5    such information to any person.
6        (F) The State Commission shall issue regulations 
7    governing self-distribution exemptions consistent with 
8    this Section and this Act.
9        (G) Nothing in this paragraph (17.5) shall prohibit a 
10    self-distribution exemption holder from entering into or 
11    simultaneously having a distribution agreement with a 
12    licensed Illinois distributor.
13        (H) It is the intent of this paragraph (17.5) to 
14    promote and continue orderly markets. The General Assembly 
15    finds that, in order to preserve Illinois' regulatory 
16    distribution system, it is necessary to create an 
17    exception for smaller makers of wine as their wines are 
18    frequently adjusted in varietals, mixes, vintages, and 
19    taste to find and create market niches sometimes too small 
20    for distributor or importing distributor business 
21    strategies. Limited self-distribution rights will afford 
22    and allow smaller makers of wine access to the marketplace 
23    in order to develop a customer base without impairing the 
24    integrity of the 3-tier system.
25        (18)(A) A class 1 brewer licensee, who must also be
26    either a licensed brewer or licensed non-resident dealer
		HB3172	- 18 -	LRB104 08306 RPS 18357 b
1    and annually manufacture less than 930,000 gallons of
2    beer, may make application to the State Commission for a
3    self-distribution exemption to allow the sale of not more
4    than 232,500 gallons per year of the exemption holder's
5    beer to retail licensees and to brewers, class 1 brewers,
6    and class 2 brewers that, pursuant to subsection (e) of
7    Section 6-4 of this Act, sell beer, cider, mead, or any
8    combination thereof to non-licensees at their breweries.
9        (B) In the application, which shall be sworn under
10    penalty of perjury, the class 1 brewer licensee shall
11    state (1) the date it was established; (2) its volume of
12    beer manufactured and sold for each year since its
13    establishment; (3) its efforts to establish distributor
14    relationships; (4) that a self-distribution exemption is
15    necessary to facilitate the marketing of its beer; and (5)
16    that it will comply with the alcoholic beverage and
17    revenue laws of the United States, this State, and any
18    other state where it is licensed.
19        (C) Any application submitted shall be posted on the
20    State Commission's website at least 45 days prior to
21    action by the State Commission. The State Commission shall
22    approve the application for a self-distribution exemption
23    if the class 1 brewer licensee: (1) is in compliance with
24    the State, revenue, and alcoholic beverage laws; (2) is
25    not a member of any affiliated group that manufactures,
26    directly or indirectly, more than 930,000 gallons of beer
		HB3172	- 19 -	LRB104 08306 RPS 18357 b
1    per annum, 25,000 gallons of wine per annum, or 50,000
2    gallons of spirits per annum; (3) shall not annually
3    manufacture for sale more than 930,000 gallons of beer,
4    25,000 gallons of wine, or 50,000 gallons of spirits; (4)
5    shall not annually sell more than 232,500 gallons of its
6    beer to retail licensees and class 3 brewers and to
7    brewers, class 1 brewers, and class 2 brewers that,
8    pursuant to subsection (e) of Section 6-4 of this Act,
9    sell beer, cider, mead, or any combination thereof to
10    non-licensees at their breweries; and (5) has relinquished
11    any brew pub license held by the licensee, including any
12    ownership interest it held in the licensed brew pub.
13        (D) A self-distribution exemption holder shall
14    annually certify to the State Commission its manufacture
15    of beer during the previous 12 months and its anticipated
16    manufacture and sales of beer for the next 12 months. The
17    State Commission may fine, suspend, or revoke a
18    self-distribution exemption after a hearing if it finds
19    that the exemption holder has made a material
20    misrepresentation in its application, violated a revenue
21    or alcoholic beverage law of Illinois, exceeded the
22    manufacture of 930,000 gallons of beer, 25,000 gallons of
23    wine, or 50,000 gallons of spirits in any calendar year or
24    became part of an affiliated group manufacturing more than
25    930,000 gallons of beer, 25,000 gallons of wine, or 50,000
26    gallons of spirits.
		HB3172	- 20 -	LRB104 08306 RPS 18357 b
1        (E) The State Commission shall issue rules and
2    regulations governing self-distribution exemptions
3    consistent with this Act.
4        (F) Nothing in this paragraph (18) shall prohibit a
5    self-distribution exemption holder from entering into or
6    simultaneously having a distribution agreement with a
7    licensed Illinois importing distributor or a distributor.
8    If a self-distribution exemption holder enters into a
9    distribution agreement and has assigned distribution
10    rights to an importing distributor or distributor, then
11    the self-distribution exemption holder's distribution
12    rights in the assigned territories shall cease in a
13    reasonable time not to exceed 60 days.
14        (G) It is the intent of this paragraph (18) to promote
15    and continue orderly markets. The General Assembly finds
16    that in order to preserve Illinois' regulatory
17    distribution system, it is necessary to create an
18    exception for smaller manufacturers in order to afford and
19    allow such smaller manufacturers of beer access to the
20    marketplace in order to develop a customer base without
21    impairing the integrity of the 3-tier system.
22        (19)(A) A class 1 craft distiller licensee or a
23    non-resident dealer who manufactures less than 50,000
24    gallons of distilled spirits per year may make application
25    to the State Commission for a self-distribution exemption
26    to allow the sale of not more than 5,000 gallons of the
		HB3172	- 21 -	LRB104 08306 RPS 18357 b
1    exemption holder's spirits to retail licensees per year.
2        (B) In the application, which shall be sworn under
3    penalty of perjury, the class 1 craft distiller licensee
4    or non-resident dealer shall state (1) the date it was
5    established; (2) its volume of spirits manufactured and
6    sold for each year since its establishment; (3) its
7    efforts to establish distributor relationships; (4) that a
8    self-distribution exemption is necessary to facilitate the
9    marketing of its spirits; and (5) that it will comply with
10    the alcoholic beverage and revenue laws of the United
11    States, this State, and any other state where it is
12    licensed.
13        (C) Any application submitted shall be posted on the
14    State Commission's website at least 45 days prior to
15    action by the State Commission. The State Commission shall
16    approve the application for a self-distribution exemption
17    if the applicant: (1) is in compliance with State revenue
18    and alcoholic beverage laws; (2) is not a member of any
19    affiliated group that produces more than 50,000 gallons of
20    spirits per annum, 930,000 gallons of beer per annum, or
21    25,000 gallons of wine per annum; (3) does not annually
22    manufacture for sale more than 50,000 gallons of spirits,
23    930,000 gallons of beer, or 25,000 gallons of wine; and
24    (4) does not annually sell more than 5,000 gallons of its
25    spirits to retail licensees.
26        (D) A self-distribution exemption holder shall
		HB3172	- 22 -	LRB104 08306 RPS 18357 b
1    annually certify to the State Commission its manufacture
2    of spirits during the previous 12 months and its
3    anticipated manufacture and sales of spirits for the next
4    12 months. The State Commission may fine, suspend, or
5    revoke a self-distribution exemption after a hearing if it
6    finds that the exemption holder has made a material
7    misrepresentation in its application, violated a revenue
8    or alcoholic beverage law of Illinois, exceeded the
9    manufacture of 50,000 gallons of spirits, 930,000 gallons
10    of beer, or 25,000 gallons of wine in any calendar year, or
11    has become part of an affiliated group manufacturing more
12    than 50,000 gallons of spirits, 930,000 gallons of beer,
13    or 25,000 gallons of wine.
14        (E) The State Commission shall adopt rules governing
15    self-distribution exemptions consistent with this Act.
16        (F) Nothing in this paragraph (19) shall prohibit a
17    self-distribution exemption holder from entering into or
18    simultaneously having a distribution agreement with a
19    licensed Illinois importing distributor or a distributor.
20        (G) It is the intent of this paragraph (19) to promote
21    and continue orderly markets. The General Assembly finds
22    that in order to preserve Illinois' regulatory
23    distribution system, it is necessary to create an
24    exception for smaller manufacturers in order to afford and
25    allow such smaller manufacturers of spirits access to the
26    marketplace in order to develop a customer base without
		HB3172	- 23 -	LRB104 08306 RPS 18357 b
1    impairing the integrity of the 3-tier system.
2        (20)(A) A class 3 brewer licensee who must manufacture
3    less than 465,000 gallons of beer in the aggregate and not
4    more than 155,000 gallons at any single brewery premises
5    may make application to the State Commission for a
6    self-distribution exemption to allow the sale of not more
7    than 6,200 gallons of beer from each in-state or
8    out-of-state class 3 brewery premises, which shall not
9    exceed 18,600 gallons annually in the aggregate, that is
10    manufactured at a wholly owned class 3 brewer's in-state
11    or out-of-state licensed premises to retail licensees and
12    class 3 brewers and to brewers, class 1 brewers, class 2
13    brewers that, pursuant to subsection (e) of Section 6-4,
14    sell beer, cider, or both beer and cider to non-licensees
15    at their licensed breweries.
16        (B) In the application, which shall be sworn under
17    penalty of perjury, the class 3 brewer licensee shall
18    state:
19            (1) the date it was established;
20            (2) its volume of beer manufactured and sold for
21        each year since its establishment;
22            (3) its efforts to establish distributor
23        relationships;
24            (4) that a self-distribution exemption is
25        necessary to facilitate the marketing of its beer; and
26            (5) that it will comply with the alcoholic
		HB3172	- 24 -	LRB104 08306 RPS 18357 b
1        beverage and revenue laws of the United States, this
2        State, and any other state where it is licensed.
3        (C) Any application submitted shall be posted on the
4    State Commission's website at least 45 days before action
5    by the State Commission. The State Commission shall
6    approve the application for a self-distribution exemption
7    if the class 3 brewer licensee: (1) is in compliance with
8    the State, revenue, and alcoholic beverage laws; (2) is
9    not a member of any affiliated group that manufacturers,
10    directly or indirectly, more than 465,000 gallons of beer
11    per annum; (3) shall not annually manufacture for sale
12    more than 465,000 gallons of beer or more than 155,000
13    gallons at any single brewery premises; and (4) shall not
14    annually sell more than 6,200 gallons of beer from each
15    in-state or out-of-state class 3 brewery premises, and
16    shall not exceed 18,600 gallons annually in the aggregate,
17    to retail licensees and class 3 brewers and to brewers,
18    class 1 brewers, and class 2 brewers that, pursuant to
19    subsection (e) of Section 6-4 of this Act, sell beer,
20    cider, or both beer and cider to non-licensees at their
21    breweries.
22        (D) A self-distribution exemption holder shall
23    annually certify to the State Commission its manufacture
24    of beer during the previous 12 months and its anticipated
25    manufacture and sales of beer for the next 12 months. The
26    State Commission may fine, suspend, or revoke a
		HB3172	- 25 -	LRB104 08306 RPS 18357 b
1    self-distribution exemption after a hearing if it finds
2    that the exemption holder has made a material
3    misrepresentation in its application, violated a revenue
4    or alcoholic beverage law of Illinois, exceeded the
5    manufacture of 465,000 gallons of beer in any calendar
6    year or became part of an affiliated group manufacturing
7    more than 465,000 gallons of beer, or exceeded the sale to
8    retail licensees, brewers, class 1 brewers, class 2
9    brewers, and class 3 brewers of 6,200 gallons per brewery
10    location or 18,600 gallons in the aggregate.
11        (E) The State Commission may adopt rules governing
12    self-distribution exemptions consistent with this Act.
13        (F) Nothing in this paragraph shall prohibit a
14    self-distribution exemption holder from entering into or
15    simultaneously having a distribution agreement with a
16    licensed Illinois importing distributor or a distributor.
17    If a self-distribution exemption holder enters into a
18    distribution agreement and has assigned distribution
19    rights to an importing distributor or distributor, then
20    the self-distribution exemption holder's distribution
21    rights in the assigned territories shall cease in a
22    reasonable time not to exceed 60 days.
23        (G) It is the intent of this paragraph to promote and
24    continue orderly markets. The General Assembly finds that
25    in order to preserve Illinois' regulatory distribution
26    system, it is necessary to create an exception for smaller
		HB3172	- 26 -	LRB104 08306 RPS 18357 b
1    manufacturers in order to afford and allow such smaller
2    manufacturers of beer access to the marketplace in order
3    to develop a customer base without impairing the integrity
4    of the 3-tier system.
5    (b) On or before April 30, 1999, the Commission shall
6present a written report to the Governor and the General
7Assembly that shall be based on a study of the impact of Public
8Act 90-739 on the business of soliciting, selling, and
9shipping alcoholic liquor from outside of this State directly
10to residents of this State.
11    As part of its report, the Commission shall provide the
12following information:
13        (i) the amount of State excise and sales tax revenues
14    generated as a result of Public Act 90-739;
15        (ii) the amount of licensing fees received as a result
16    of Public Act 90-739;
17        (iii) the number of reported violations, the number of
18    cease and desist notices issued by the Commission, the
19    number of notices of violations issued to the Department
20    of Revenue, and the number of notices and complaints of
21    violations to law enforcement officials.
22(Source: P.A. 101-37, eff. 7-3-19; 101-81, eff. 7-12-19;
23101-482, eff. 8-23-19; 102-442, eff. 8-20-21; 102-558, eff.
248-20-21; 102-813, eff. 5-13-22.)
25    (235 ILCS 5/5-1)  (from Ch. 43, par. 115)
		HB3172	- 27 -	LRB104 08306 RPS 18357 b
1    Sec. 5-1. Licenses issued by the Illinois Liquor Control
2Commission shall be of the following classes:
3    (a) Manufacturer's license - Class 1. Distiller, Class 2.
4Rectifier, Class 3. Brewer, Class 4. First Class Wine
5Manufacturer, Class 5. Second Class Wine Manufacturer, Class
66. First Class Winemaker, Class 7. Second Class Winemaker,
7Class 8. Limited Wine Manufacturer, Class 9. Craft Distiller,
8Class 10. Class 1 Craft Distiller, Class 11. Class 2 Craft
9Distiller, Class 12. Class 1 Brewer, Class 13. Class 2 Brewer,
10Class 14. Class 3 Brewer, Class 15. Third-Class Wine-Maker,
11    (b) Distributor's license,
12    (c) Importing Distributor's license,
13    (d) Retailer's license,
14    (e) Special Event Retailer's license (not-for-profit),
15    (f) Railroad license,
16    (g) Boat license,
17    (h) Non-Beverage User's license,
18    (i) Wine-maker's premises license,
19    (j) Airplane license,
20    (k) Foreign importer's license,
21    (l) Broker's license,
22    (m) Non-resident dealer's license,
23    (n) Brew Pub license,
24    (o) Auction liquor license,
25    (p) Caterer retailer license,
26    (q) Special use permit license,
		HB3172	- 28 -	LRB104 08306 RPS 18357 b
1    (r) Winery shipper's license,
2    (s) Craft distiller tasting permit,
3    (t) Brewer warehouse permit,
4    (u) Distilling pub license,
5    (v) Craft distiller warehouse permit,
6    (w) Beer showcase permit.
7    No person, firm, partnership, corporation, or other legal
8business entity that is engaged in the manufacturing of wine
9may concurrently obtain and hold a wine-maker's license and a
10wine manufacturer's license.
11    (a) A manufacturer's license shall allow the manufacture,
12importation in bulk, storage, distribution and sale of
13alcoholic liquor to persons without the State, as may be
14permitted by law and to licensees in this State as follows:
15    Class 1. A Distiller may make sales and deliveries of
16alcoholic liquor to distillers, rectifiers, importing
17distributors, distributors and non-beverage users and to no
18other licensees.
19    Class 2. A Rectifier, who is not a distiller, as defined
20herein, may make sales and deliveries of alcoholic liquor to
21rectifiers, importing distributors, distributors, retailers
22and non-beverage users and to no other licensees.
23    Class 3. A Brewer may make sales and deliveries of beer to
24importing distributors and distributors and may make sales as
25authorized under subsection (e) of Section 6-4 of this Act,
26including any alcoholic liquor that subsection (e) of Section
		HB3172	- 29 -	LRB104 08306 RPS 18357 b
16-4 authorizes a brewer to sell in its original package only to
2a non-licensee for pick-up by a non-licensee either within the
3interior of the brewery premises or at outside of the brewery
4premises at a curb-side or parking lot adjacent to the brewery
5premises, subject to any local ordinance.
6    Class 4. A first class wine-manufacturer may make sales
7and deliveries of up to 50,000 gallons of wine to
8manufacturers, importing distributors and distributors, and to
9no other licensees. If a first-class wine-manufacturer
10manufactures beer, it shall also obtain and shall only be
11eligible for, in addition to any current license, a class 1
12brewer license, shall not manufacture more than 930,000
13gallons of beer per year, and shall not be a member of or
14affiliated with, directly or indirectly, a manufacturer that
15produces more than 930,000 gallons of beer per year. If the
16first-class wine-manufacturer manufactures spirits, it shall
17also obtain and shall only be eligible for, in addition to any
18current license, a class 1 craft distiller license, shall not
19manufacture more than 50,000 gallons of spirits per year, and
20shall not be a member of or affiliated with, directly or
21indirectly, a manufacturer that produces more than 50,000
22gallons of spirits per year. A first-class wine-manufacturer
23shall be permitted to sell wine manufactured at the
24first-class wine-manufacturer premises to non-licensees.
25    Class 5. A second class Wine manufacturer may make sales
26and deliveries of more than 50,000 gallons of wine to
		HB3172	- 30 -	LRB104 08306 RPS 18357 b
1manufacturers, importing distributors and distributors and to
2no other licensees.
3    Class 6. A first-class wine-maker's license shall allow
4the manufacture of up to 50,000 gallons of wine per year, and
5the storage and sale of such wine to distributors in the State
6and to persons without the State, as may be permitted by law. A
7person who, prior to June 1, 2008 (the effective date of Public
8Act 95-634), is a holder of a first-class wine-maker's license
9and annually produces more than 25,000 gallons of its own wine
10and who distributes its wine to licensed retailers shall cease
11this practice on or before July 1, 2008 in compliance with
12Public Act 95-634. If a first-class wine-maker manufactures
13beer, it shall also obtain and shall only be eligible for, in
14addition to any current license, a class 1 brewer license,
15shall not manufacture more than 930,000 gallons of beer per
16year, and shall not be a member of or affiliated with, directly
17or indirectly, a manufacturer that produces more than 930,000
18gallons of beer per year. If the first-class wine-maker
19manufactures spirits, it shall also obtain and shall only be
20eligible for, in addition to any current license, a class 1
21craft distiller license, shall not manufacture more than
2250,000 gallons of spirits per year, and shall not be a member
23of or affiliated with, directly or indirectly, a manufacturer
24that produces more than 50,000 gallons of spirits per year. A
25first-class wine-maker holding a class 1 brewer license or a
26class 1 craft distiller license shall not be eligible for a
		HB3172	- 31 -	LRB104 08306 RPS 18357 b
1wine-maker's premises license but shall be permitted to sell
2wine manufactured at the first-class wine-maker premises to
3non-licensees.
4    Class 7. A second-class wine-maker's license shall allow
5the manufacture of up to 150,000 gallons of wine per year, and
6the storage and sale of such wine to distributors in this State
7and to persons without the State, as may be permitted by law. A
8person who, prior to June 1, 2008 (the effective date of Public
9Act 95-634), is a holder of a second-class wine-maker's
10license and annually produces more than 25,000 gallons of its
11own wine and who distributes its wine to licensed retailers
12shall cease this practice on or before July 1, 2008 in
13compliance with Public Act 95-634. If a second-class
14wine-maker manufactures beer, it shall also obtain and shall
15only be eligible for, in addition to any current license, a
16class 2 brewer license, shall not manufacture more than
173,720,000 gallons of beer per year, and shall not be a member
18of or affiliated with, directly or indirectly, a manufacturer
19that produces more than 3,720,000 gallons of beer per year. If
20a second-class wine-maker manufactures spirits, it shall also
21obtain and shall only be eligible for, in addition to any
22current license, a class 2 craft distiller license, shall not
23manufacture more than 100,000 gallons of spirits per year, and
24shall not be a member of or affiliated with, directly or
25indirectly, a manufacturer that produces more than 100,000
26gallons of spirits per year.
		HB3172	- 32 -	LRB104 08306 RPS 18357 b
1    Class 8. A limited wine-manufacturer may make sales and
2deliveries not to exceed 40,000 gallons of wine per year to
3distributors, and to non-licensees in accordance with the
4provisions of this Act.
5    Class 9. A craft distiller license, which may only be held
6by a class 1 craft distiller licensee or class 2 craft
7distiller licensee but not held by both a class 1 craft
8distiller licensee and a class 2 craft distiller licensee,
9shall grant all rights conveyed by either: (i) a class 1 craft
10distiller license if the craft distiller holds a class 1 craft
11distiller license; or (ii) a class 2 craft distiller licensee
12if the craft distiller holds a class 2 craft distiller
13license.
14    Class 10. A class 1 craft distiller license, which may
15only be issued to a licensed craft distiller or licensed
16non-resident dealer, shall allow the manufacture of up to
1750,000 gallons of spirits per year provided that the class 1
18craft distiller licensee does not manufacture more than a
19combined 50,000 gallons of spirits per year and is not a member
20of or affiliated with, directly or indirectly, a manufacturer
21that produces more than 50,000 gallons of spirits per year. If
22a class 1 craft distiller manufactures beer, it shall also
23obtain and shall only be eligible for, in addition to any
24current license, a class 1 brewer license, shall not
25manufacture more than 930,000 gallons of beer per year, and
26shall not be a member of or affiliated with, directly or
		HB3172	- 33 -	LRB104 08306 RPS 18357 b
1indirectly, a manufacturer that produces more than 930,000
2gallons of beer per year. If a class 1 craft distiller
3manufactures wine, it shall also obtain and shall only be
4eligible for, in addition to any current license, a
5first-class wine-manufacturer license or a first-class
6wine-maker's license, shall not manufacture more than 50,000
7gallons of wine per year, and shall not be a member of or
8affiliated with, directly or indirectly, a manufacturer that
9produces more than 50,000 gallons of wine per year. A class 1
10craft distiller licensee may make sales and deliveries to
11importing distributors and distributors and to retail
12licensees in accordance with the conditions set forth in
13paragraph (19) of subsection (a) of Section 3-12 of this Act.
14However, the aggregate amount of spirits sold to non-licensees
15and sold or delivered to retail licensees may not exceed 5,000
16gallons per year.
17    A class 1 craft distiller licensee may sell up to 5,000
18gallons of such spirits to non-licensees to the extent
19permitted by any exemption approved by the State Commission
20pursuant to Section 6-4 of this Act. A class 1 craft distiller
21license holder may store such spirits at a non-contiguous
22licensed location, but at no time shall a class 1 craft
23distiller license holder directly or indirectly produce in the
24aggregate more than 50,000 gallons of spirits per year.
25    A class 1 craft distiller licensee may hold more than one
26class 1 craft distiller's license. However, a class 1 craft
		HB3172	- 34 -	LRB104 08306 RPS 18357 b
1distiller that holds more than one class 1 craft distiller
2license shall not manufacture, in the aggregate, more than
350,000 gallons of spirits by distillation per year and shall
4not sell, in the aggregate, more than 5,000 gallons of such
5spirits to non-licensees in accordance with an exemption
6approved by the State Commission pursuant to Section 6-4 of
7this Act.
8    Class 11. A class 2 craft distiller license, which may
9only be issued to a licensed craft distiller or licensed
10non-resident dealer, shall allow the manufacture of up to
11100,000 gallons of spirits per year provided that the class 2
12craft distiller licensee does not manufacture more than a
13combined 100,000 gallons of spirits per year and is not a
14member of or affiliated with, directly or indirectly, a
15manufacturer that produces more than 100,000 gallons of
16spirits per year. If a class 2 craft distiller manufactures
17beer, it shall also obtain and shall only be eligible for, in
18addition to any current license, a class 2 brewer license,
19shall not manufacture more than 3,720,000 gallons of beer per
20year, and shall not be a member of or affiliated with, directly
21or indirectly, a manufacturer that produces more than
223,720,000 gallons of beer per year. If a class 2 craft
23distiller manufactures wine, it shall also obtain and shall
24only be eligible for, in addition to any current license, a
25second-class wine-maker's license, shall not manufacture more
26than 150,000 gallons of wine per year, and shall not be a
		HB3172	- 35 -	LRB104 08306 RPS 18357 b
1member of or affiliated with, directly or indirectly, a
2manufacturer that produces more than 150,000 gallons of wine
3per year. A class 2 craft distiller licensee may make sales and
4deliveries to importing distributors and distributors, but
5shall not make sales or deliveries to any other licensee. If
6the State Commission provides prior approval, a class 2 craft
7distiller licensee may annually transfer up to 100,000 gallons
8of spirits manufactured by that class 2 craft distiller
9licensee to the premises of a licensed class 2 craft distiller
10wholly owned and operated by the same licensee. A class 2 craft
11distiller may transfer spirits to a distilling pub wholly
12owned and operated by the class 2 craft distiller subject to
13the following limitations and restrictions: (i) the transfer
14shall not annually exceed more than 5,000 gallons; (ii) the
15annual amount transferred shall reduce the distilling pub's
16annual permitted production limit; (iii) all spirits
17transferred shall be subject to Article VIII of this Act; (iv)
18a written record shall be maintained by the distiller and
19distilling pub specifying the amount, date of delivery, and
20receipt of the product by the distilling pub; and (v) the
21distilling pub shall be located no farther than 80 miles from
22the class 2 craft distiller's licensed location.
23    A class 2 craft distiller shall, prior to transferring
24spirits to a distilling pub wholly owned by the class 2 craft
25distiller, furnish a written notice to the State Commission of
26intent to transfer spirits setting forth the name and address
		HB3172	- 36 -	LRB104 08306 RPS 18357 b
1of the distilling pub and shall annually submit to the State
2Commission a verified report identifying the total gallons of
3spirits transferred to the distilling pub wholly owned by the
4class 2 craft distiller.
5    A class 2 craft distiller license holder may store such
6spirits at a non-contiguous licensed location, but at no time
7shall a class 2 craft distiller license holder directly or
8indirectly produce in the aggregate more than 100,000 gallons
9of spirits per year.
10    Class 12. A class 1 brewer license, which may only be
11issued to a licensed brewer or licensed non-resident dealer,
12shall allow the manufacture of up to 930,000 gallons of beer
13per year provided that the class 1 brewer licensee does not
14manufacture more than a combined 930,000 gallons of beer per
15year and is not a member of or affiliated with, directly or
16indirectly, a manufacturer that produces more than 930,000
17gallons of beer per year. If a class 1 brewer manufactures
18spirits, it shall also obtain and shall only be eligible for,
19in addition to any current license, a class 1 craft distiller
20license, shall not manufacture more than 50,000 gallons of
21spirits per year, and shall not be a member of or affiliated
22with, directly or indirectly, a manufacturer that produces
23more than 50,000 gallons of spirits per year. If a class 1
24craft brewer manufactures wine, it shall also obtain and shall
25only be eligible for, in addition to any current license, a
26first-class wine-manufacturer license or a first-class
		HB3172	- 37 -	LRB104 08306 RPS 18357 b
1wine-maker's license, shall not manufacture more than 50,000
2gallons of wine per year, and shall not be a member of or
3affiliated with, directly or indirectly, a manufacturer that
4produces more than 50,000 gallons of wine per year. A class 1
5brewer licensee may make sales and deliveries to importing
6distributors and distributors and to retail licensees in
7accordance with the conditions set forth in paragraph (18) of
8subsection (a) of Section 3-12 of this Act. If the State
9Commission provides prior approval, a class 1 brewer may
10annually transfer up to 930,000 gallons of beer manufactured
11by that class 1 brewer to the premises of a licensed class 1
12brewer wholly owned and operated by the same licensee.
13    Class 13. A class 2 brewer license, which may only be
14issued to a licensed brewer or licensed non-resident dealer,
15shall allow the manufacture of up to 3,720,000 gallons of beer
16per year provided that the class 2 brewer licensee does not
17manufacture more than a combined 3,720,000 gallons of beer per
18year and is not a member of or affiliated with, directly or
19indirectly, a manufacturer that produces more than 3,720,000
20gallons of beer per year. If a class 2 brewer manufactures
21spirits, it shall also obtain and shall only be eligible for,
22in addition to any current license, a class 2 craft distiller
23license, shall not manufacture more than 100,000 gallons of
24spirits per year, and shall not be a member of or affiliated
25with, directly or indirectly, a manufacturer that produces
26more than 100,000 gallons of spirits per year. If a class 2
		HB3172	- 38 -	LRB104 08306 RPS 18357 b
1craft distiller manufactures wine, it shall also obtain and
2shall only be eligible for, in addition to any current
3license, a second-class wine-maker's license, shall not
4manufacture more than 150,000 gallons of wine per year, and
5shall not be a member of or affiliated with, directly or
6indirectly, a manufacturer that produces more than 150,000
7gallons of wine a year. A class 2 brewer licensee may make
8sales and deliveries to importing distributors and
9distributors, but shall not make sales or deliveries to any
10other licensee. If the State Commission provides prior
11approval, a class 2 brewer licensee may annually transfer up
12to 3,720,000 gallons of beer manufactured by that class 2
13brewer licensee to the premises of a licensed class 2 brewer
14wholly owned and operated by the same licensee.
15    A class 2 brewer may transfer beer to a brew pub wholly
16owned and operated by the class 2 brewer subject to the
17following limitations and restrictions: (i) the transfer shall
18not annually exceed more than 31,000 gallons; (ii) the annual
19amount transferred shall reduce the brew pub's annual
20permitted production limit; (iii) all beer transferred shall
21be subject to Article VIII of this Act; (iv) a written record
22shall be maintained by the brewer and brew pub specifying the
23amount, date of delivery, and receipt of the product by the
24brew pub; and (v) the brew pub shall be located no farther than
2580 miles from the class 2 brewer's licensed location.
26    A class 2 brewer shall, prior to transferring beer to a
		HB3172	- 39 -	LRB104 08306 RPS 18357 b
1brew pub wholly owned by the class 2 brewer, furnish a written
2notice to the State Commission of intent to transfer beer
3setting forth the name and address of the brew pub and shall
4annually submit to the State Commission a verified report
5identifying the total gallons of beer transferred to the brew
6pub wholly owned by the class 2 brewer.
7    Class 14. A class 3 brewer license, which may be issued to
8a brewer or a non-resident dealer, shall allow the manufacture
9of no more than 465,000 gallons of beer per year and no more
10than 155,000 gallons at a single brewery premises, and shall
11allow the sale of no more than 6,200 gallons of beer from each
12in-state or out-of-state class 3 brewery premises, or 18,600
13gallons in the aggregate, to retail licensees, class 1
14brewers, class 2 brewers, and class 3 brewers as long as the
15class 3 brewer licensee does not manufacture more than a
16combined 465,000 gallons of beer per year and is not a member
17of or affiliated with, directly or indirectly, a manufacturer
18that produces more than 465,000 gallons of beer per year to
19make sales to importing distributors, distributors, retail
20licensees, brewers, class 1 brewers, class 2 brewers, and
21class 3 brewers in accordance with the conditions set forth in
22paragraph (20) of subsection (a) of Section 3-12. If the State
23Commission provides prior approval, a class 3 brewer may
24annually transfer up to 155,000 gallons of beer manufactured
25by that class 3 brewer to the premises of a licensed class 3
26brewer wholly owned and operated by the same licensee. A class
		HB3172	- 40 -	LRB104 08306 RPS 18357 b
13 brewer shall manufacture beer at the brewer's class 3
2designated licensed premises, and may sell beer as otherwise
3provided in this Act.
4    Class 15. A third-class wine-maker's license shall allow 
5the manufacture of up to 250,000 gallons of wine per year and 
6the storage and sale of such wine to distributors in this State 
7and to persons without the State, as may be permitted by law.
8    (a-1) A manufacturer which is licensed in this State to
9make sales or deliveries of alcoholic liquor to licensed
10distributors or importing distributors and which enlists
11agents, representatives, or individuals acting on its behalf
12who contact licensed retailers on a regular and continual
13basis in this State must register those agents,
14representatives, or persons acting on its behalf with the
15State Commission.
16    Registration of agents, representatives, or persons acting
17on behalf of a manufacturer is fulfilled by submitting a form
18to the Commission. The form shall be developed by the
19Commission and shall include the name and address of the
20applicant, the name and address of the manufacturer he or she
21represents, the territory or areas assigned to sell to or
22discuss pricing terms of alcoholic liquor, and any other
23questions deemed appropriate and necessary. All statements in
24the forms required to be made by law or by rule shall be deemed
25material, and any person who knowingly misstates any material
26fact under oath in an application is guilty of a Class B
		HB3172	- 41 -	LRB104 08306 RPS 18357 b
1misdemeanor. Fraud, misrepresentation, false statements,
2misleading statements, evasions, or suppression of material
3facts in the securing of a registration are grounds for
4suspension or revocation of the registration. The State
5Commission shall post a list of registered agents on the
6Commission's website.
7    (b) A distributor's license shall allow (i) the wholesale
8purchase and storage of alcoholic liquors and sale of
9alcoholic liquors to licensees in this State and to persons
10without the State, as may be permitted by law; (ii) the sale of
11beer, cider, mead, or any combination thereof to brewers,
12class 1 brewers, and class 2 brewers that, pursuant to
13subsection (e) of Section 6-4 of this Act, sell beer, cider,
14mead, or any combination thereof to non-licensees at their
15breweries; (iii) the sale of vermouth to class 1 craft
16distillers and class 2 craft distillers that, pursuant to
17subsection (e) of Section 6-4 of this Act, sell spirits,
18vermouth, or both spirits and vermouth to non-licensees at
19their distilleries; or (iv) as otherwise provided in this Act.
20No person licensed as a distributor shall be granted a
21non-resident dealer's license.
22    (c) An importing distributor's license may be issued to
23and held by those only who are duly licensed distributors,
24upon the filing of an application by a duly licensed
25distributor, with the Commission and the Commission shall,
26without the payment of any fee, immediately issue such
		HB3172	- 42 -	LRB104 08306 RPS 18357 b
1importing distributor's license to the applicant, which shall
2allow the importation of alcoholic liquor by the licensee into
3this State from any point in the United States outside this
4State, and the purchase of alcoholic liquor in barrels, casks
5or other bulk containers and the bottling of such alcoholic
6liquors before resale thereof, but all bottles or containers
7so filled shall be sealed, labeled, stamped and otherwise made
8to comply with all provisions, rules and regulations governing
9manufacturers in the preparation and bottling of alcoholic
10liquors. The importing distributor's license shall permit such
11licensee to purchase alcoholic liquor from Illinois licensed
12non-resident dealers and foreign importers only. No person
13licensed as an importing distributor shall be granted a
14non-resident dealer's license.
15    (d) A retailer's license shall allow the licensee to sell
16and offer for sale at retail, only in the premises specified in
17the license, alcoholic liquor for use or consumption, but not
18for resale in any form. Except as provided in Section 6-16,
196-29, or 6-29.1, nothing in this Act shall deny, limit,
20remove, or restrict the ability of a holder of a retailer's
21license to transfer or ship alcoholic liquor to the purchaser
22for use or consumption subject to any applicable local law or
23ordinance. For the purposes of this Section, "shipping" means
24the movement of alcoholic liquor from a licensed retailer to a
25consumer via a common carrier. Except as provided in Section
266-16, 6-29, or 6-29.1, nothing in this Act shall deny, limit,
		HB3172	- 43 -	LRB104 08306 RPS 18357 b
1remove, or restrict the ability of a holder of a retailer's
2license to deliver alcoholic liquor to the purchaser for use
3or consumption. The delivery shall be made only within 12
4hours from the time the alcoholic liquor leaves the licensed
5premises of the retailer for delivery. For the purposes of
6this Section, "delivery" means the movement of alcoholic
7liquor purchased from a licensed retailer to a consumer
8through the following methods:
9        (1) delivery within licensed retailer's parking lot,
10    including curbside, for pickup by the consumer;
11        (2) delivery by an owner, officer, director,
12    shareholder, or employee of the licensed retailer; or
13        (3) delivery by a third-party contractor, independent
14    contractor, or agent with whom the licensed retailer has
15    contracted to make deliveries of alcoholic liquors.
16    Under subsection (1), (2), or (3), delivery shall not
17include the use of common carriers.
18    Any retail license issued to a manufacturer shall only
19permit the manufacturer to sell beer at retail on the premises
20actually occupied by the manufacturer. For the purpose of
21further describing the type of business conducted at a retail
22licensed premises, a retailer's licensee may be designated by
23the State Commission as (i) an on premise consumption
24retailer, (ii) an off premise sale retailer, or (iii) a
25combined on premise consumption and off premise sale retailer.
26    Except for a municipality with a population of more than
		HB3172	- 44 -	LRB104 08306 RPS 18357 b
11,000,000 inhabitants, a home rule unit may not regulate the
2delivery of alcoholic liquor inconsistent with this
3subsection. This paragraph is a limitation under subsection
4(i) of Section 6 of Article VII of the Illinois Constitution on
5the concurrent exercise by home rule units of powers and
6functions exercised by the State. A non-home rule municipality
7may not regulate the delivery of alcoholic liquor inconsistent
8with this subsection.
9    Notwithstanding any other provision of this subsection
10(d), a retail licensee may sell alcoholic liquors to a special
11event retailer licensee for resale to the extent permitted
12under subsection (e).
13    (e) A special event retailer's license (not-for-profit)
14shall permit the licensee to purchase alcoholic liquors from
15an Illinois licensed distributor (unless the licensee
16purchases less than $500 of alcoholic liquors for the special
17event, in which case the licensee may purchase the alcoholic
18liquors from a licensed retailer) and shall allow the licensee
19to sell and offer for sale, at retail, alcoholic liquors for
20use or consumption, but not for resale in any form and only at
21the location and on the specific dates designated for the
22special event in the license. An applicant for a special event
23retailer license must (i) furnish with the application: (A) a
24resale number issued under Section 2c of the Retailers'
25Occupation Tax Act or evidence that the applicant is
26registered under Section 2a of the Retailers' Occupation Tax
		HB3172	- 45 -	LRB104 08306 RPS 18357 b
1Act, (B) a current, valid exemption identification number
2issued under Section 1g of the Retailers' Occupation Tax Act,
3and a certification to the Commission that the purchase of
4alcoholic liquors will be a tax-exempt purchase, or (C) a
5statement that the applicant is not registered under Section
62a of the Retailers' Occupation Tax Act, does not hold a resale
7number under Section 2c of the Retailers' Occupation Tax Act,
8and does not hold an exemption number under Section 1g of the
9Retailers' Occupation Tax Act, in which event the Commission
10shall set forth on the special event retailer's license a
11statement to that effect; (ii) submit with the application
12proof satisfactory to the State Commission that the applicant
13will provide dram shop liability insurance in the maximum
14limits; and (iii) show proof satisfactory to the State
15Commission that the applicant has obtained local authority
16approval.
17    Nothing in this Act prohibits an Illinois licensed
18distributor from offering credit or a refund for unused,
19salable alcoholic liquors to a holder of a special event
20retailer's license or the special event retailer's licensee
21from accepting the credit or refund of alcoholic liquors at
22the conclusion of the event specified in the license.
23    (f) A railroad license shall permit the licensee to import
24alcoholic liquors into this State from any point in the United
25States outside this State and to store such alcoholic liquors
26in this State; to make wholesale purchases of alcoholic
		HB3172	- 46 -	LRB104 08306 RPS 18357 b
1liquors directly from manufacturers, foreign importers,
2distributors and importing distributors from within or outside
3this State; and to store such alcoholic liquors in this State;
4provided that the above powers may be exercised only in
5connection with the importation, purchase or storage of
6alcoholic liquors to be sold or dispensed on a club, buffet,
7lounge or dining car operated on an electric, gas or steam
8railway in this State; and provided further, that railroad
9licensees exercising the above powers shall be subject to all
10provisions of Article VIII of this Act as applied to importing
11distributors. A railroad license shall also permit the
12licensee to sell or dispense alcoholic liquors on any club,
13buffet, lounge or dining car operated on an electric, gas or
14steam railway regularly operated by a common carrier in this
15State, but shall not permit the sale for resale of any
16alcoholic liquors to any licensee within this State. A license
17shall be obtained for each car in which such sales are made.
18    (g) A boat license shall allow the sale of alcoholic
19liquor in individual drinks, on any passenger boat regularly
20operated as a common carrier on navigable waters in this State
21or on any riverboat operated under the Illinois Gambling Act,
22which boat or riverboat maintains a public dining room or
23restaurant thereon.
24    (h) A non-beverage user's license shall allow the licensee
25to purchase alcoholic liquor from a licensed manufacturer or
26importing distributor, without the imposition of any tax upon
		HB3172	- 47 -	LRB104 08306 RPS 18357 b
1the business of such licensed manufacturer or importing
2distributor as to such alcoholic liquor to be used by such
3licensee solely for the non-beverage purposes set forth in
4subsection (a) of Section 8-1 of this Act, and such licenses
5shall be divided and classified and shall permit the purchase,
6possession and use of limited and stated quantities of
7alcoholic liquor as follows:
8Class 1, not to exceed ......................... 500 gallons
9Class 2, not to exceed ....................... 1,000 gallons
10Class 3, not to exceed ....................... 5,000 gallons
11Class 4, not to exceed ...................... 10,000 gallons
12Class 5, not to exceed ....................... 50,000 gallons
13    (i) A wine-maker's premises license shall allow a licensee
14that concurrently holds a first-class wine-maker's license to
15sell and offer for sale at retail in the premises specified in
16such license not more than 50,000 gallons of the first-class
17wine-maker's wine that is made at the first-class wine-maker's
18licensed premises per year for use or consumption, but not for
19resale in any form. A wine-maker's premises license shall
20allow a licensee who concurrently holds a second-class
21wine-maker's license to sell and offer for sale at retail in
22the premises specified in such license up to 100,000 gallons
23of the second-class wine-maker's wine that is made at the
24second-class wine-maker's licensed premises per year for use
25or consumption but not for resale in any form. A wine-maker's 
26premises license shall allow a licensee who concurrently holds 
		HB3172	- 48 -	LRB104 08306 RPS 18357 b
1a third-class wine-maker's license to sell and offer for sale 
2at retail in the premises specified in such license up to 
3250,000 gallons of the third-class wine-maker's wine that is 
4made at the third-class wine-maker's licensed premises per 
5year for use or consumption but not for resale in any form. [A ]
6[first-class wine-maker that concurrently holds a class 1 ]
7[brewer license or a class 1 craft distiller license shall not ]
8[be eligible to hold a wine-maker's premises license.] A
9wine-maker's premises license shall allow a licensee that
10concurrently holds a first-class wine-maker's license, [or] a
11second-class wine-maker's license, or a third-class 
12wine-maker's license to sell and offer for sale at retail at
13the premises specified in the wine-maker's premises license,
14for use or consumption but not for resale in any form, any
15beer, wine, and spirits purchased from a licensed distributor.
16Upon approval from the State Commission, a wine-maker's
17premises license shall allow the licensee to sell and offer
18for sale at (i) the wine-maker's licensed premises and (ii) at
19up to 3 [2] additional locations for use and consumption and not
20for resale. Each location shall require additional licensing
21per location as specified in Section 5-3 of this Act. A
22wine-maker's premises licensee shall secure liquor liability
23insurance coverage in an amount at least equal to the maximum
24liability amounts set forth in subsection (a) of Section 6-21
25of this Act.
26    (j) An airplane license shall permit the licensee to
		HB3172	- 49 -	LRB104 08306 RPS 18357 b
1import alcoholic liquors into this State from any point in the
2United States outside this State and to store such alcoholic
3liquors in this State; to make wholesale purchases of
4alcoholic liquors directly from manufacturers, foreign
5importers, distributors and importing distributors from within
6or outside this State; and to store such alcoholic liquors in
7this State; provided that the above powers may be exercised
8only in connection with the importation, purchase or storage
9of alcoholic liquors to be sold or dispensed on an airplane;
10and provided further, that airplane licensees exercising the
11above powers shall be subject to all provisions of Article
12VIII of this Act as applied to importing distributors. An
13airplane licensee shall also permit the sale or dispensing of
14alcoholic liquors on any passenger airplane regularly operated
15by a common carrier in this State, but shall not permit the
16sale for resale of any alcoholic liquors to any licensee
17within this State. A single airplane license shall be required
18of an airline company if liquor service is provided on board
19aircraft in this State. The annual fee for such license shall
20be as determined in Section 5-3.
21    (k) A foreign importer's license shall permit such
22licensee to purchase alcoholic liquor from Illinois licensed
23non-resident dealers only, and to import alcoholic liquor
24other than in bulk from any point outside the United States and
25to sell such alcoholic liquor to Illinois licensed importing
26distributors and to no one else in Illinois; provided that (i)
		HB3172	- 50 -	LRB104 08306 RPS 18357 b
1the foreign importer registers with the State Commission every
2brand of alcoholic liquor that it proposes to sell to Illinois
3licensees during the license period, (ii) the foreign importer
4complies with all of the provisions of Section 6-9 of this Act
5with respect to registration of such Illinois licensees as may
6be granted the right to sell such brands at wholesale, and
7(iii) the foreign importer complies with the provisions of
8Sections 6-5 and 6-6 of this Act to the same extent that these
9provisions apply to manufacturers.
10    (l) (i) A broker's license shall be required of all
11persons who solicit orders for, offer to sell or offer to
12supply alcoholic liquor to retailers in the State of Illinois,
13or who offer to retailers to ship or cause to be shipped or to
14make contact with distillers, craft distillers, rectifiers,
15brewers or manufacturers or any other party within or without
16the State of Illinois in order that alcoholic liquors be
17shipped to a distributor, importing distributor or foreign
18importer, whether such solicitation or offer is consummated
19within or without the State of Illinois.
20    No holder of a retailer's license issued by the Illinois
21Liquor Control Commission shall purchase or receive any
22alcoholic liquor, the order for which was solicited or offered
23for sale to such retailer by a broker unless the broker is the
24holder of a valid broker's license.
25    The broker shall, upon the acceptance by a retailer of the
26broker's solicitation of an order or offer to sell or supply or
		HB3172	- 51 -	LRB104 08306 RPS 18357 b
1deliver or have delivered alcoholic liquors, promptly forward
2to the Illinois Liquor Control Commission a notification of
3said transaction in such form as the Commission may by
4regulations prescribe.
5    (ii) A broker's license shall be required of a person
6within this State, other than a retail licensee, who, for a fee
7or commission, promotes, solicits, or accepts orders for
8alcoholic liquor, for use or consumption and not for resale,
9to be shipped from this State and delivered to residents
10outside of this State by an express company, common carrier,
11or contract carrier. This Section does not apply to any person
12who promotes, solicits, or accepts orders for wine as
13specifically authorized in Section 6-29 of this Act.
14    A broker's license under this subsection (l) shall not
15entitle the holder to buy or sell any alcoholic liquors for his
16own account or to take or deliver title to such alcoholic
17liquors.
18    This subsection (l) shall not apply to distributors,
19employees of distributors, or employees of a manufacturer who
20has registered the trademark, brand or name of the alcoholic
21liquor pursuant to Section 6-9 of this Act, and who regularly
22sells such alcoholic liquor in the State of Illinois only to
23its registrants thereunder.
24    Any agent, representative, or person subject to
25registration pursuant to subsection (a-1) of this Section
26shall not be eligible to receive a broker's license.
		HB3172	- 52 -	LRB104 08306 RPS 18357 b
1    (m) A non-resident dealer's license shall permit such
2licensee to ship into and warehouse alcoholic liquor into this
3State from any point outside of this State, and to sell such
4alcoholic liquor to Illinois licensed foreign importers and
5importing distributors and to no one else in this State;
6provided that (i) said non-resident dealer shall register with
7the Illinois Liquor Control Commission each and every brand of
8alcoholic liquor which it proposes to sell to Illinois
9licensees during the license period, (ii) it shall comply with
10all of the provisions of Section 6-9 hereof with respect to
11registration of such Illinois licensees as may be granted the
12right to sell such brands at wholesale by duly filing such
13registration statement, thereby authorizing the non-resident
14dealer to proceed to sell such brands at wholesale, and (iii)
15the non-resident dealer shall comply with the provisions of
16Sections 6-5 and 6-6 of this Act to the same extent that these
17provisions apply to manufacturers. No person licensed as a
18non-resident dealer shall be granted a distributor's or
19importing distributor's license.
20    (n) A brew pub license shall allow the licensee to only (i)
21manufacture up to 155,000 gallons of beer per year only on the
22premises specified in the license, (ii) make sales of the beer
23manufactured on the premises or, with the approval of the
24Commission, beer manufactured on another brew pub licensed
25premises that is wholly owned and operated by the same
26licensee to importing distributors, distributors, and to
		HB3172	- 53 -	LRB104 08306 RPS 18357 b
1non-licensees for use and consumption, (iii) store the beer
2upon the premises, (iv) sell and offer for sale at retail from
3the licensed premises for off-premises consumption no more
4than 155,000 gallons per year so long as such sales are only
5made in-person, (v) sell and offer for sale at retail for use
6and consumption on the premises specified in the license any
7form of alcoholic liquor purchased from a licensed distributor
8or importing distributor, (vi) with the prior approval of the
9Commission, annually transfer no more than 155,000 gallons of
10beer manufactured on the premises to a licensed brew pub
11wholly owned and operated by the same licensee, and (vii)
12notwithstanding item (i) of this subsection, brew pubs wholly
13owned and operated by the same licensee may combine each
14location's production limit of 155,000 gallons of beer per
15year and allocate the aggregate total between the wholly
16owned, operated, and licensed locations.
17    A brew pub licensee shall not under any circumstance sell
18or offer for sale beer manufactured by the brew pub licensee to
19retail licensees.
20    A person who holds a class 2 brewer license may
21simultaneously hold a brew pub license if the class 2 brewer
22(i) does not, under any circumstance, sell or offer for sale
23beer manufactured by the class 2 brewer to retail licensees;
24(ii) does not hold more than 3 brew pub licenses in this State;
25(iii) does not manufacture more than a combined 3,720,000
26gallons of beer per year, including the beer manufactured at
		HB3172	- 54 -	LRB104 08306 RPS 18357 b
1the brew pub; and (iv) is not a member of or affiliated with,
2directly or indirectly, a manufacturer that produces more than
33,720,000 gallons of beer per year or any other alcoholic
4liquor.
5    Notwithstanding any other provision of this Act, a
6licensed brewer, class 2 brewer, or non-resident dealer who
7before July 1, 2015 manufactured less than 3,720,000 gallons
8of beer per year and held a brew pub license on or before July
91, 2015 may (i) continue to qualify for and hold that brew pub
10license for the licensed premises and (ii) manufacture more
11than 3,720,000 gallons of beer per year and continue to
12qualify for and hold that brew pub license if that brewer,
13class 2 brewer, or non-resident dealer does not simultaneously
14hold a class 1 brewer license and is not a member of or
15affiliated with, directly or indirectly, a manufacturer that
16produces more than 3,720,000 gallons of beer per year or that
17produces any other alcoholic liquor.
18    A brew pub licensee may apply for a class 3 brewer license
19and, upon meeting all applicable qualifications of this Act
20and relinquishing all commonly owned brew pub or retail
21licenses, shall be issued a class 3 brewer license. Nothing in
22this Act shall prohibit the issuance of a class 3 brewer
23license if the applicant:
24        (1) has a valid retail license on or before May 1,
25    2021;
26        (2) has an ownership interest in at least two brew
		HB3172	- 55 -	LRB104 08306 RPS 18357 b
1    pubs licenses on or before May 1, 2021;
2        (3) the brew pub licensee applies for a class 3 brewer
3    license on or before October 1, 2022 and relinquishes all
4    commonly owned brew pub licenses; and
5        (4) relinquishes all commonly owned retail licenses on
6    or before December 31, 2022.
7    If a brew pub licensee is issued a class 3 brewer license,
8the class 3 brewer license shall expire on the same date as the
9existing brew pub license and the State Commission shall not
10require a class 3 brewer licensee to obtain a brewer license,
11or in the alternative to pay a fee for a brewer license, until
12the date the brew pub license of the applicant would have
13expired.
14    (o) A caterer retailer license shall allow the holder to
15serve alcoholic liquors as an incidental part of a food
16service that serves prepared meals which excludes the serving
17of snacks as the primary meal, either on or off-site whether
18licensed or unlicensed. A caterer retailer license shall allow
19the holder, a distributor, or an importing distributor to
20transfer any inventory to and from the holder's retail
21premises and shall allow the holder to purchase alcoholic
22liquor from a distributor or importing distributor to be
23delivered directly to an off-site event.
24    Nothing in this Act prohibits a distributor or importing
25distributor from offering credit or a refund for unused,
26salable beer to a holder of a caterer retailer license or a
		HB3172	- 56 -	LRB104 08306 RPS 18357 b
1caterer retailer licensee from accepting a credit or refund
2for unused, salable beer, in the event an act of God is the
3sole reason an off-site event is cancelled and if: (i) the
4holder of a caterer retailer license has not transferred
5alcoholic liquor from its caterer retailer premises to an
6off-site location; (ii) the distributor or importing
7distributor offers the credit or refund for the unused,
8salable beer that it delivered to the off-site premises and
9not for any unused, salable beer that the distributor or
10importing distributor delivered to the caterer retailer's
11premises; and (iii) the unused, salable beer would likely
12spoil if transferred to the caterer retailer's premises. A
13caterer retailer license shall allow the holder to transfer
14any inventory from any off-site location to its caterer
15retailer premises at the conclusion of an off-site event or
16engage a distributor or importing distributor to transfer any
17inventory from any off-site location to its caterer retailer
18premises at the conclusion of an off-site event, provided that
19the distributor or importing distributor issues bona fide
20charges to the caterer retailer licensee for fuel, labor, and
21delivery and the distributor or importing distributor collects
22payment from the caterer retailer licensee prior to the
23distributor or importing distributor transferring inventory to
24the caterer retailer premises.
25    For purposes of this subsection (o), an "act of God" means
26an unforeseeable event, such as a rain or snow storm, hail, a
		HB3172	- 57 -	LRB104 08306 RPS 18357 b
1flood, or a similar event, that is the sole cause of the
2cancellation of an off-site, outdoor event.
3    (p) An auction liquor license shall allow the licensee to
4sell and offer for sale at auction wine and spirits for use or
5consumption, or for resale by an Illinois liquor licensee in
6accordance with provisions of this Act. An auction liquor
7license will be issued to a person and it will permit the
8auction liquor licensee to hold the auction anywhere in the
9State. An auction liquor license must be obtained for each
10auction at least 14 days in advance of the auction date.
11    (q) A special use permit license shall allow an Illinois
12licensed retailer to transfer a portion of its alcoholic
13liquor inventory from its retail licensed premises to the
14premises specified in the license hereby created; to purchase
15alcoholic liquor from a distributor or importing distributor
16to be delivered directly to the location specified in the
17license hereby created; and to sell or offer for sale at
18retail, only in the premises specified in the license hereby
19created, the transferred or delivered alcoholic liquor for use
20or consumption, but not for resale in any form. A special use
21permit license may be granted for the following time periods:
22one day or less; 2 or more days to a maximum of 15 days per
23location in any 12-month period. An applicant for the special
24use permit license must also submit with the application proof
25satisfactory to the State Commission that the applicant will
26provide dram shop liability insurance to the maximum limits
		HB3172	- 58 -	LRB104 08306 RPS 18357 b
1and have local authority approval.
2    A special use permit license shall allow the holder to
3transfer any inventory from the holder's special use premises
4to its retail premises at the conclusion of the special use
5event or engage a distributor or importing distributor to
6transfer any inventory from the holder's special use premises
7to its retail premises at the conclusion of an off-site event,
8provided that the distributor or importing distributor issues
9bona fide charges to the special use permit licensee for fuel,
10labor, and delivery and the distributor or importing
11distributor collects payment from the retail licensee prior to
12the distributor or importing distributor transferring
13inventory to the retail premises.
14    Nothing in this Act prohibits a distributor or importing
15distributor from offering credit or a refund for unused,
16salable beer to a special use permit licensee or a special use
17permit licensee from accepting a credit or refund for unused,
18salable beer at the conclusion of the event specified in the
19license if: (i) the holder of the special use permit license
20has not transferred alcoholic liquor from its retail licensed
21premises to the premises specified in the special use permit
22license; (ii) the distributor or importing distributor offers
23the credit or refund for the unused, salable beer that it
24delivered to the premises specified in the special use permit
25license and not for any unused, salable beer that the
26distributor or importing distributor delivered to the
		HB3172	- 59 -	LRB104 08306 RPS 18357 b
1retailer's premises; and (iii) the unused, salable beer would
2likely spoil if transferred to the retailer premises.
3    (r) A winery shipper's license shall allow a person with a
4first-class wine-maker's license, a [or] second-class
5wine-maker's license, a third-class wine manufacturer's
6license, a first-class or second-class wine-maker's license,
7or a limited wine manufacturer's license or who is licensed to
8make wine under the laws of another state to ship wine made by
9that licensee directly to a resident of this State who is 21
10years of age or older for that resident's personal use and not
11for resale. Prior to receiving a winery shipper's license, an
12applicant for the license must provide the Commission with a
13true copy of its current license in any state in which it is
14licensed as a manufacturer of wine. An applicant for a winery
15shipper's license must also complete an application form that
16provides any other information the Commission deems necessary.
17The application form shall include all addresses from which
18the applicant for a winery shipper's license intends to ship
19wine, including the name and address of any third party,
20except for a common carrier, authorized to ship wine on behalf
21of the manufacturer. The application form shall include an
22acknowledgement consenting to the jurisdiction of the
23Commission, the Illinois Department of Revenue, and the courts
24of this State concerning the enforcement of this Act and any
25related laws, rules, and regulations, including authorizing
26the Department of Revenue and the Commission to conduct audits
		HB3172	- 60 -	LRB104 08306 RPS 18357 b
1for the purpose of ensuring compliance with Public Act 95-634,
2and an acknowledgement that the wine manufacturer is in
3compliance with Section 6-2 of this Act. Any third party,
4except for a common carrier, authorized to ship wine on behalf
5of a first-class or second-class wine manufacturer's licensee,
6a first-class wine-maker's licensee, a [or] second-class
7wine-maker's licensee, a third-class wine-maker's licensee, a
8limited wine manufacturer's licensee, or a person who is
9licensed to make wine under the laws of another state shall
10also be disclosed by the winery shipper's licensee, and a copy
11of the written appointment of the third-party wine provider,
12except for a common carrier, to the wine manufacturer shall be
13filed with the State Commission as a supplement to the winery
14shipper's license application or any renewal thereof. The
15winery shipper's license holder shall affirm under penalty of
16perjury, as part of the winery shipper's license application
17or renewal, that he or she only ships wine, either directly or
18indirectly through a third-party provider, from the licensee's
19own production.
20    Except for a common carrier, a third-party provider
21shipping wine on behalf of a winery shipper's license holder
22is the agent of the winery shipper's license holder and, as
23such, a winery shipper's license holder is responsible for the
24acts and omissions of the third-party provider acting on
25behalf of the license holder. A third-party provider, except
26for a common carrier, that engages in shipping wine into
		HB3172	- 61 -	LRB104 08306 RPS 18357 b
1Illinois on behalf of a winery shipper's license holder shall
2consent to the jurisdiction of the State Commission and the
3State. Any third-party, except for a common carrier, holding
4such an appointment shall, by February 1 of each calendar year
5and upon request by the State Commission or the Department of
6Revenue, file with the State Commission a statement detailing
7each shipment made to an Illinois resident. The statement
8shall include the name and address of the third-party provider
9filing the statement, the time period covered by the
10statement, and the following information:
11        (1) the name, address, and license number of the
12    winery shipper on whose behalf the shipment was made;
13        (2) the quantity of the products delivered; and
14        (3) the date and address of the shipment.
15If the Department of Revenue or the State Commission requests
16a statement under this paragraph, the third-party provider
17must provide that statement no later than 30 days after the
18request is made. Any books, records, supporting papers, and
19documents containing information and data relating to a
20statement under this paragraph shall be kept and preserved for
21a period of 3 years, unless their destruction sooner is
22authorized, in writing, by the Director of Revenue, and shall
23be open and available to inspection by the Director of Revenue
24or the State Commission or any duly authorized officer, agent,
25or employee of the State Commission or the Department of
26Revenue, at all times during business hours of the day. Any
		HB3172	- 62 -	LRB104 08306 RPS 18357 b
1person who violates any provision of this paragraph or any
2rule of the State Commission for the administration and
3enforcement of the provisions of this paragraph is guilty of a
4Class C misdemeanor. In case of a continuing violation, each
5day's continuance thereof shall be a separate and distinct
6offense.
7    The State Commission shall adopt rules as soon as
8practicable to implement the requirements of Public Act 99-904
9and shall adopt rules prohibiting any such third-party
10appointment of a third-party provider, except for a common
11carrier, that has been deemed by the State Commission to have
12violated the provisions of this Act with regard to any winery
13shipper licensee.
14    A winery shipper licensee must pay to the Department of
15Revenue the State liquor gallonage tax under Section 8-1 for
16all wine that is sold by the licensee and shipped to a person
17in this State. For the purposes of Section 8-1, a winery
18shipper licensee shall be taxed in the same manner as a
19manufacturer of wine. A licensee who is not otherwise required
20to register under the Retailers' Occupation Tax Act must
21register under the Use Tax Act to collect and remit use tax to
22the Department of Revenue for all gallons of wine that are sold
23by the licensee and shipped to persons in this State. If a
24licensee fails to remit the tax imposed under this Act in
25accordance with the provisions of Article VIII of this Act,
26the winery shipper's license shall be revoked in accordance
		HB3172	- 63 -	LRB104 08306 RPS 18357 b
1with the provisions of Article VII of this Act. If a licensee
2fails to properly register and remit tax under the Use Tax Act
3or the Retailers' Occupation Tax Act for all wine that is sold
4by the winery shipper and shipped to persons in this State, the
5winery shipper's license shall be revoked in accordance with
6the provisions of Article VII of this Act.
7    A winery shipper licensee must collect, maintain, and
8submit to the Commission on a semi-annual basis the total
9number of cases per resident of wine shipped to residents of
10this State. A winery shipper licensed under this subsection
11(r) must comply with the requirements of Section 6-29 of this
12Act.
13    Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
14Section 3-12, the State Commission may receive, respond to,
15and investigate any complaint and impose any of the remedies
16specified in paragraph (1) of subsection (a) of Section 3-12.
17    As used in this subsection, "third-party provider" means
18any entity that provides fulfillment house services, including
19warehousing, packaging, distribution, order processing, or
20shipment of wine, but not the sale of wine, on behalf of a
21licensed winery shipper.
22    (s) A craft distiller tasting permit license shall allow
23an Illinois licensed class 1 craft distiller or class 2 craft
24distiller to transfer a portion of its alcoholic liquor
25inventory from its class 1 craft distiller or class 2 craft
26distiller licensed premises to the premises specified in the
		HB3172	- 64 -	LRB104 08306 RPS 18357 b
1license hereby created and to conduct a sampling, only in the
2premises specified in the license hereby created, of the
3transferred alcoholic liquor in accordance with subsection (c)
4of Section 6-31 of this Act. The transferred alcoholic liquor
5may not be sold or resold in any form. An applicant for the
6craft distiller tasting permit license must also submit with
7the application proof satisfactory to the State Commission
8that the applicant will provide dram shop liability insurance
9to the maximum limits and have local authority approval.
10    (t) A brewer warehouse permit may be issued to the holder
11of a class 1 brewer license or a class 2 brewer license. If the
12holder of the permit is a class 1 brewer licensee, the brewer
13warehouse permit shall allow the holder to store or warehouse
14up to 930,000 gallons of tax-determined beer manufactured by
15the holder of the permit at the premises specified on the
16permit. If the holder of the permit is a class 2 brewer
17licensee, the brewer warehouse permit shall allow the holder
18to store or warehouse up to 3,720,000 gallons of
19tax-determined beer manufactured by the holder of the permit
20at the premises specified on the permit. Sales to
21non-licensees are prohibited at the premises specified in the
22brewer warehouse permit.
23    (u) A distilling pub license shall allow the licensee to
24only (i) manufacture up to 5,000 gallons of spirits per year
25only on the premises specified in the license, (ii) make sales
26of the spirits manufactured on the premises or, with the
		HB3172	- 65 -	LRB104 08306 RPS 18357 b
1approval of the State Commission, spirits manufactured on
2another distilling pub licensed premises that is wholly owned
3and operated by the same licensee to importing distributors
4and distributors and to non-licensees for use and consumption,
5(iii) store the spirits upon the premises, (iv) sell and offer
6for sale at retail from the licensed premises for off-premises
7consumption no more than 5,000 gallons per year so long as such
8sales are only made in-person, (v) sell and offer for sale at
9retail for use and consumption on the premises specified in
10the license any form of alcoholic liquor purchased from a
11licensed distributor or importing distributor, and (vi) with
12the prior approval of the State Commission, annually transfer
13no more than 5,000 gallons of spirits manufactured on the
14premises to a licensed distilling pub wholly owned and
15operated by the same licensee.
16    A distilling pub licensee shall not under any circumstance
17sell or offer for sale spirits manufactured by the distilling
18pub licensee to retail licensees.
19    A person who holds a class 2 craft distiller license may
20simultaneously hold a distilling pub license if the class 2
21craft distiller (i) does not, under any circumstance, sell or
22offer for sale spirits manufactured by the class 2 craft
23distiller to retail licensees; (ii) does not hold more than 3
24distilling pub licenses in this State; (iii) does not
25manufacture more than a combined 100,000 gallons of spirits
26per year, including the spirits manufactured at the distilling
		HB3172	- 66 -	LRB104 08306 RPS 18357 b
1pub; and (iv) is not a member of or affiliated with, directly
2or indirectly, a manufacturer that produces more than 100,000
3gallons of spirits per year or any other alcoholic liquor.
4    (v) A craft distiller warehouse permit may be issued to
5the holder of a class 1 craft distiller or class 2 craft
6distiller license. The craft distiller warehouse permit shall
7allow the holder to store or warehouse up to 500,000 gallons of
8spirits manufactured by the holder of the permit at the
9premises specified on the permit. Sales to non-licensees are
10prohibited at the premises specified in the craft distiller
11warehouse permit.
12    (w) A beer showcase permit license shall allow an
13Illinois-licensed distributor to transfer a portion of its
14beer inventory from its licensed premises to the premises
15specified in the beer showcase permit license, and, in the
16case of a class 3 brewer, transfer only beer the class 3 brewer
17manufactures from its licensed premises to the premises
18specified in the beer showcase permit license; and to sell or
19offer for sale at retail, only in the premises specified in the
20beer showcase permit license, the transferred or delivered
21beer for on or off premise consumption, but not for resale in
22any form and to sell to non-licensees not more than 96 fluid
23ounces of beer per person. A beer showcase permit license may
24be granted for the following time periods: one day or less; or
252 or more days to a maximum of 15 days per location in any
2612-month period. An applicant for a beer showcase permit
		HB3172	- 67 -	LRB104 08306 RPS 18357 b
1license must also submit with the application proof
2satisfactory to the State Commission that the applicant will
3provide dram shop liability insurance to the maximum limits
4and have local authority approval. The State Commission shall
5require the beer showcase applicant to comply with Section
66-27.1.
7(Source: P.A. 101-16, eff. 6-14-19; 101-31, eff. 6-28-19;
8101-81, eff. 7-12-19; 101-482, eff. 8-23-19; 101-517, eff.
98-23-19; 101-615, eff. 12-20-19; 101-668, eff. 1-1-22;
10102-442, eff. 8-20-21; 102-1142, eff. 2-17-23.)
11    (235 ILCS 5/5-3)  (from Ch. 43, par. 118)
12    Sec. 5-3. License fees. Except as otherwise provided
13herein, at the time application is made to the State
14Commission for a license of any class, the applicant shall pay
15to the State Commission the fee hereinafter provided for the
16kind of license applied for.
17    The fee for licenses issued by the State Commission shall
18be as follows:
19	Online	Initial
20	renewal	license
21	 	or
22	 	non-online
23	 	renewal
24    For a manufacturer's license:
25    Class 1. Distiller .................	$4,000	$5,000
		HB3172	- 68 -	LRB104 08306 RPS 18357 b
1    Class 2. Rectifier .................	4,000 	5,000
2    Class 3. Brewer ....................	1,200 	1,500
3    Class 4. First-class Wine
4        Manufacturer ...................	750	900
5    Class 5. Second-class
6        Wine Manufacturer ..............	1,500 	1,750
7    Class 6. First-class wine-maker ....	750 	900
8    Class 7. Second-class wine-maker ...	1,500 	1,750
9    Class 8. Limited Wine
10        Manufacturer....................	250 	350
11    Class 9. Craft Distiller........... 	2,000 	2,500
12    Class 10. Class 1 Craft Distiller.. 	50 	75
13    Class 11. Class 2 Craft Distiller.. 	75 	100
14    Class 12. Class 1 Brewer............	50 	75
15    Class 13. Class 2 Brewer........... 	75 	100
16    Class 14. Class 3 Brewer........... 	25 	50
17    Class 15. Third-class wine-maker.	1,500 	1,750
18    For a Brew Pub License..............	1,200	1,500
19    For a Distilling Pub License....... 	1,200 	1,500
20    For a caterer retailer's license....	350 	500
21    For a foreign importer's license ...	25 	25
22    For an importing distributor's
23        license.........................	25	25
24    For a distributor's license
25        (11,250,000 gallons
26        or over).......................	1,450	2,200
		HB3172	- 69 -	LRB104 08306 RPS 18357 b
1    For a distributor's license
2        (over 4,500,000 gallons, but
3        under 11,250,000 gallons)...... 	950	1,450
4    For a distributor's license
5        (4,500,000 gallons or under)....	300	450
6    For a non-resident dealer's license
7        (500,000 gallons or over)
8        or with self-distribution
9        privileges .....................	1,200 	1,500
10    For a non-resident dealer's license
11        (under 500,000 gallons) ........	250 	350
12    For a wine-maker's premises
13        license ........................	250	500
14    For a winery shipper's license
15        (under 250,000 gallons).........	200 	350
16    For a winery shipper's license
17        (250,000 or over, but
18        under 500,000 gallons)..........	750	1,000
19    For a winery shipper's license
20        (500,000 gallons or over).......	1,200 	1,500
21    For a wine-maker's premises
22        license, second location .......	500 	1,000
23    For a wine-maker's premises
24        license, third location ........	500	1,000
25    For a wine-maker's premises
26    license, fourth location.	500 	1,000
		HB3172	- 70 -	LRB104 08306 RPS 18357 b
1    For a retailer's license ...........	600 	750
2    For a special event retailer's
3        license, (not-for-profit) ......	25 	25
4    For a beer showcase permit,
5        one day only .................. 	100 	150
6        2 days or more ................ 	150 	250
7    For a special use permit license,
8        one day only ...................	100 	150
9        2 days or more .................	150 	250
10    For a railroad license .............	100 	150
11    For a boat license .................	500 	1,000
12    For an airplane license, times the
13        licensee's maximum number of
14        aircraft in flight, serving
15        liquor over the State at any
16        given time, which either
17        originate, terminate, or make
18        an intermediate stop in
19        the State......................	100	150
20    For a non-beverage user's license:
21        Class 1 ........................	24	24
22        Class 2 ........................	60	60
23        Class 3 ........................	120	120
24        Class 4 ........................	240	240
25        Class 5 ........................	600	600
26    For a broker's license .............	750 	1,000
		HB3172	- 71 -	LRB104 08306 RPS 18357 b
1    For an auction liquor license ......	100 	150
2    For a homebrewer special
3        event permit....................	25	25
4    For a craft distiller
5        tasting permit..................	25 	25
6    For a BASSET trainer license....... 	300 	350
7    For a tasting representative
8        license........................	200	300
9    For a brewer warehouse permit...... 	25	25
10    For a craft distiller
11        warehouse permit................	25 	25
12    Fees collected under this Section shall be paid into the
13Dram Shop Fund. The State Commission shall waive license
14renewal fees for those retailers' licenses that are designated
15as "1A" by the State Commission and expire on or after July 1,
162022, and on or before June 30, 2023. One-half of the funds
17received for a retailer's license shall be paid into the Dram
18Shop Fund and one-half of the funds received for a retailer's
19license shall be paid into the General Revenue Fund.
20    No fee shall be paid for licenses issued by the State
21Commission to the following non-beverage users:
22        (a) Hospitals, sanitariums, or clinics when their use
23    of alcoholic liquor is exclusively medicinal, mechanical,
24    or scientific.
25        (b) Universities, colleges of learning, or schools
26    when their use of alcoholic liquor is exclusively
		HB3172	- 72 -	LRB104 08306 RPS 18357 b
1    medicinal, mechanical, or scientific.
2        (c) Laboratories when their use is exclusively for the
3    purpose of scientific research.
4(Source: P.A. 102-442, eff. 8-20-21; 102-558, eff. 8-20-21;
5102-699, eff. 4-19-22; 102-1142, eff. 2-17-23; 103-154, eff.
66-30-23; 103-605, eff. 7-1-24.)