SB3095 Engrossed LRB099 20651 RPS 45255 b
1		AN ACT concerning liquor.
2		Be it enacted by the People of the State of Illinois,
3		represented in the General Assembly:
4		Section 5. The Alcoholism and Other Drug Abuse and
5		Dependency Act is amended by changing Section 10-15 as follows:
6		(20 ILCS 301/10-15)
7		Sec. 10-15. Qualification and appointment of members. The
8		membership of the Illinois Advisory Council shall consist of:
9		(a) A State's Attorney designated by the President of
10		the Illinois State's Attorneys Association.
11		(b) A judge designated by the Chief Justice of the
12		Illinois Supreme Court.
13		(c) A Public Defender appointed by the President of the
14		Illinois Public Defenders Association.
15		(d) A local law enforcement officer appointed by the
16		Governor.
17		(e) A labor representative appointed by the Governor.
18		(f) An educator appointed by the Governor.
19		(g) A physician licensed to practice medicine in all
20		its branches appointed by the Governor with due regard for
21		the appointee's knowledge of the field of alcoholism and
22		other drug abuse and dependency.
23		(h) 4 members of the Illinois House of Representatives,

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1		2 each appointed by the Speaker and Minority Leader.
2		(i) 4 members of the Illinois Senate, 2 each appointed
3		by the President and Minority Leader.
4		(j) The President of the Illinois Alcoholism and Drug
5		Dependence Association.
6		(k) An advocate for the needs of youth appointed by the
7		Governor.
8		(l) The President of the Illinois State Medical Society
9		or his or her designee.
10		(m) The President of the Illinois Hospital Association
11		or his or her designee.
12		(n) The President of the Illinois Nurses Association or
13		a registered nurse designated by the President.
14		(o) The President of the Illinois Pharmacists
15		Association or a licensed pharmacist designated by the
16		President.
17		(p) The President of the Illinois Chapter of the
18		Association of Labor Management Administrators and
19		Consultants on Alcoholism.
20		(p-1) The President of the Community Behavioral
21		Healthcare Association of Illinois or his or her designee.
22		(q) The Attorney General or his or her designee.
23		(r) The State Comptroller or his or her designee.
24		(s) 20 public members, 8 appointed by the Governor, 3
25		of whom shall be representatives of alcoholism or other
26		drug abuse and dependency treatment programs and one of

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1		whom shall be a representative of a manufacturer or
2		importing distributor of alcoholic liquor licensed by the
3		State of Illinois, and 3 public members appointed by each
4		of the President and Minority Leader of the Senate and the
5		Speaker and Minority Leader of the House.
6		(t) The Director, Secretary, or other chief
7		administrative officer, ex officio, or his or her designee,
8		of each of the following: the Department on Aging, the
9		Department of Children and Family Services, the Department
10		of Corrections, the Department of Juvenile Justice, the
11		Department of Healthcare and Family Services, the
12		Department of Revenue, the Department of Public Health, the
13		Department of Financial and Professional Regulation, the
14		Department of State Police, the Administrative Office of
15		the Illinois Courts, the Criminal Justice Information
16		Authority, and the Department of Transportation.
17		(u) Each of the following, ex officio, or his or her
18		designee: the Secretary of State, the State Superintendent
19		of Education, and the Chairman of the Board of Higher
20		Education.
21		The public members may not be officers or employees of the
22		executive branch of State government; however, the public
23		members may be officers or employees of a State college or
24		university or of any law enforcement agency. In appointing
25		members, due consideration shall be given to the experience of
26		appointees in the fields of medicine, law, prevention,

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1		correctional activities, and social welfare. Vacancies in the
2		public membership shall be filled for the unexpired term by
3		appointment in like manner as for original appointments, and
4		the appointive members shall serve until their successors are
5		appointed and have qualified. Vacancies among the public
6		members appointed by the legislative leaders shall be filled by
7		the leader of the same house and of the same political party as
8		the leader who originally appointed the member.
9		Each non-appointive member may designate a representative
10		to serve in his place by written notice to the Department. All
11		General Assembly members shall serve until their respective
12		successors are appointed or until termination of their
13		legislative service, whichever occurs first. The terms of
14		office for each of the members appointed by the Governor shall
15		be for 3 years, except that of the members first appointed, 3
16		shall be appointed for a term of one year, and 4 shall be
17		appointed for a term of 2 years. The terms of office of each of
18		the public members appointed by the legislative leaders shall
19		be for 2 years.
20		(Source: P.A. 94-1033, eff. 7-1-07.)
21		Section 10. The Retailers' Occupation Tax Act is amended by
22		changing Section 3 as follows:
23		(35 ILCS 120/3) (from Ch. 120, par. 442)
24		Sec. 3. Except as provided in this Section, on or before

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1		the twentieth day of each calendar month, every person engaged
2		in the business of selling tangible personal property at retail
3		in this State during the preceding calendar month shall file a
4		return with the Department, stating:
5		1. The name of the seller;
6		2. His residence address and the address of his
7		principal place of business and the address of the
8		principal place of business (if that is a different
9		address) from which he engages in the business of selling
10		tangible personal property at retail in this State;
11		3. Total amount of receipts received by him during the
12		preceding calendar month or quarter, as the case may be,
13		from sales of tangible personal property, and from services
14		furnished, by him during such preceding calendar month or
15		quarter;
16		4. Total amount received by him during the preceding
17		calendar month or quarter on charge and time sales of
18		tangible personal property, and from services furnished,
19		by him prior to the month or quarter for which the return
20		is filed;
21		5. Deductions allowed by law;
22		6. Gross receipts which were received by him during the
23		preceding calendar month or quarter and upon the basis of
24		which the tax is imposed;
25		7. The amount of credit provided in Section 2d of this
26		Act;

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1		8. The amount of tax due;
2		9. The signature of the taxpayer; and
3		10. Such other reasonable information as the
4		Department may require.
5		If a taxpayer fails to sign a return within 30 days after
6		the proper notice and demand for signature by the Department,
7		the return shall be considered valid and any amount shown to be
8		due on the return shall be deemed assessed.
9		Each return shall be accompanied by the statement of
10		prepaid tax issued pursuant to Section 2e for which credit is
11		claimed.
12		Prior to October 1, 2003, and on and after September 1,
13		2004 a retailer may accept a Manufacturer's Purchase Credit
14		certification from a purchaser in satisfaction of Use Tax as
15		provided in Section 3-85 of the Use Tax Act if the purchaser
16		provides the appropriate documentation as required by Section
17		3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
18		certification, accepted by a retailer prior to October 1, 2003
19		and on and after September 1, 2004 as provided in Section 3-85
20		of the Use Tax Act, may be used by that retailer to satisfy
21		Retailers' Occupation Tax liability in the amount claimed in
22		the certification, not to exceed 6.25% of the receipts subject
23		to tax from a qualifying purchase. A Manufacturer's Purchase
24		Credit reported on any original or amended return filed under
25		this Act after October 20, 2003 for reporting periods prior to
26		September 1, 2004 shall be disallowed. Manufacturer's

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1		Purchaser Credit reported on annual returns due on or after
2		January 1, 2005 will be disallowed for periods prior to
3		September 1, 2004. No Manufacturer's Purchase Credit may be
4		used after September 30, 2003 through August 31, 2004 to
5		satisfy any tax liability imposed under this Act, including any
6		audit liability.
7		The Department may require returns to be filed on a
8		quarterly basis. If so required, a return for each calendar
9		quarter shall be filed on or before the twentieth day of the
10		calendar month following the end of such calendar quarter. The
11		taxpayer shall also file a return with the Department for each
12		of the first two months of each calendar quarter, on or before
13		the twentieth day of the following calendar month, stating:
14		1. The name of the seller;
15		2. The address of the principal place of business from
16		which he engages in the business of selling tangible
17		personal property at retail in this State;
18		3. The total amount of taxable receipts received by him
19		during the preceding calendar month from sales of tangible
20		personal property by him during such preceding calendar
21		month, including receipts from charge and time sales, but
22		less all deductions allowed by law;
23		4. The amount of credit provided in Section 2d of this
24		Act;
25		5. The amount of tax due; and
26		6. Such other reasonable information as the Department

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1		may require.
2		Beginning on October 1, 2003, any person who is not a
3		licensed distributor, importing distributor, or manufacturer,
4		as defined in the Liquor Control Act of 1934, but is engaged in
5		the business of selling, at retail, alcoholic liquor shall file
6		a statement with the Department of Revenue, in a format and at
7		a time prescribed by the Department, showing the total amount
8		paid for alcoholic liquor purchased during the preceding month
9		and such other information as is reasonably required by the
10		Department. The Department may adopt rules to require that this
11		statement be filed in an electronic or telephonic format. Such
12		rules may provide for exceptions from the filing requirements
13		of this paragraph. For the purposes of this paragraph, the term
14		"alcoholic liquor" shall have the meaning prescribed in the
15		Liquor Control Act of 1934.
16		Beginning on October 1, 2003, every distributor, importing
17		distributor, and manufacturer of alcoholic liquor as defined in
18		the Liquor Control Act of 1934, shall file a statement with the
19		Department of Revenue, no later than the 10th day of the month
20		for the preceding month during which transactions occurred, by
21		electronic means, showing the total amount of gross receipts
22		from the sale of alcoholic liquor sold or distributed during
23		the preceding month to purchasers; identifying the purchaser to
24		whom it was sold or distributed; the purchaser's tax
25		registration number; and such other information reasonably
26		required by the Department. A distributor, importing

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1		distributor, or manufacturer of alcoholic liquor must
2		personally deliver, mail, or provide by electronic means to
3		each retailer listed on the monthly statement a report
4		containing a cumulative total of that distributor's, importing
5		distributor's, or manufacturer's total sales of alcoholic
6		liquor to that retailer no later than the 10th day of the month
7		for the preceding month during which the transaction occurred.
8		The distributor, importing distributor, or manufacturer shall
9		notify the retailer as to the method by which the distributor,
10		importing distributor, or manufacturer will provide the sales
11		information. If the retailer is unable to receive the sales
12		information by electronic means, the distributor, importing
13		distributor, or manufacturer shall furnish the sales
14		information by personal delivery or by mail. For purposes of
15		this paragraph, the term "electronic means" includes, but is
16		not limited to, the use of a secure Internet website, e-mail,
17		or facsimile.
18		If a total amount of less than $1 is payable, refundable or
19		creditable, such amount shall be disregarded if it is less than
20		50 cents and shall be increased to $1 if it is 50 cents or more.
21		Beginning October 1, 1993, a taxpayer who has an average
22		monthly tax liability of $150,000 or more shall make all
23		payments required by rules of the Department by electronic
24		funds transfer. Beginning October 1, 1994, a taxpayer who has
25		an average monthly tax liability of $100,000 or more shall make
26		all payments required by rules of the Department by electronic

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1		funds transfer. Beginning October 1, 1995, a taxpayer who has
2		an average monthly tax liability of $50,000 or more shall make
3		all payments required by rules of the Department by electronic
4		funds transfer. Beginning October 1, 2000, a taxpayer who has
5		an annual tax liability of $200,000 or more shall make all
6		payments required by rules of the Department by electronic
7		funds transfer. The term "annual tax liability" shall be the
8		sum of the taxpayer's liabilities under this Act, and under all
9		other State and local occupation and use tax laws administered
10		by the Department, for the immediately preceding calendar year.
11		The term "average monthly tax liability" shall be the sum of
12		the taxpayer's liabilities under this Act, and under all other
13		State and local occupation and use tax laws administered by the
14		Department, for the immediately preceding calendar year
15		divided by 12. Beginning on October 1, 2002, a taxpayer who has
16		a tax liability in the amount set forth in subsection (b) of
17		Section 2505-210 of the Department of Revenue Law shall make
18		all payments required by rules of the Department by electronic
19		funds transfer.
20		Before August 1 of each year beginning in 1993, the
21		Department shall notify all taxpayers required to make payments
22		by electronic funds transfer. All taxpayers required to make
23		payments by electronic funds transfer shall make those payments
24		for a minimum of one year beginning on October 1.
25		Any taxpayer not required to make payments by electronic
26		funds transfer may make payments by electronic funds transfer

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1		with the permission of the Department.
2		All taxpayers required to make payment by electronic funds
3		transfer and any taxpayers authorized to voluntarily make
4		payments by electronic funds transfer shall make those payments
5		in the manner authorized by the Department.
6		The Department shall adopt such rules as are necessary to
7		effectuate a program of electronic funds transfer and the
8		requirements of this Section.
9		Any amount which is required to be shown or reported on any
10		return or other document under this Act shall, if such amount
11		is not a whole-dollar amount, be increased to the nearest
12		whole-dollar amount in any case where the fractional part of a
13		dollar is 50 cents or more, and decreased to the nearest
14		whole-dollar amount where the fractional part of a dollar is
15		less than 50 cents.
16		If the retailer is otherwise required to file a monthly
17		return and if the retailer's average monthly tax liability to
18		the Department does not exceed $200, the Department may
19		authorize his returns to be filed on a quarter annual basis,
20		with the return for January, February and March of a given year
21		being due by April 20 of such year; with the return for April,
22		May and June of a given year being due by July 20 of such year;
23		with the return for July, August and September of a given year
24		being due by October 20 of such year, and with the return for
25		October, November and December of a given year being due by
26		January 20 of the following year.

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1		If the retailer is otherwise required to file a monthly or
2		quarterly return and if the retailer's average monthly tax
3		liability with the Department does not exceed $50, the
4		Department may authorize his returns to be filed on an annual
5		basis, with the return for a given year being due by January 20
6		of the following year.
7		Such quarter annual and annual returns, as to form and
8		substance, shall be subject to the same requirements as monthly
9		returns.
10		Notwithstanding any other provision in this Act concerning
11		the time within which a retailer may file his return, in the
12		case of any retailer who ceases to engage in a kind of business
13		which makes him responsible for filing returns under this Act,
14		such retailer shall file a final return under this Act with the
15		Department not more than one month after discontinuing such
16		business.
17		Where the same person has more than one business registered
18		with the Department under separate registrations under this
19		Act, such person may not file each return that is due as a
20		single return covering all such registered businesses, but
21		shall file separate returns for each such registered business.
22		In addition, with respect to motor vehicles, watercraft,
23		aircraft, and trailers that are required to be registered with
24		an agency of this State, every retailer selling this kind of
25		tangible personal property shall file, with the Department,
26		upon a form to be prescribed and supplied by the Department, a

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1		separate return for each such item of tangible personal
2		property which the retailer sells, except that if, in the same
3		transaction, (i) a retailer of aircraft, watercraft, motor
4		vehicles or trailers transfers more than one aircraft,
5		watercraft, motor vehicle or trailer to another aircraft,
6		watercraft, motor vehicle retailer or trailer retailer for the
7		purpose of resale or (ii) a retailer of aircraft, watercraft,
8		motor vehicles, or trailers transfers more than one aircraft,
9		watercraft, motor vehicle, or trailer to a purchaser for use as
10		a qualifying rolling stock as provided in Section 2-5 of this
11		Act, then that seller may report the transfer of all aircraft,
12		watercraft, motor vehicles or trailers involved in that
13		transaction to the Department on the same uniform
14		invoice-transaction reporting return form. For purposes of
15		this Section, "watercraft" means a Class 2, Class 3, or Class 4
16		watercraft as defined in Section 3-2 of the Boat Registration
17		and Safety Act, a personal watercraft, or any boat equipped
18		with an inboard motor.
19		Any retailer who sells only motor vehicles, watercraft,
20		aircraft, or trailers that are required to be registered with
21		an agency of this State, so that all retailers' occupation tax
22		liability is required to be reported, and is reported, on such
23		transaction reporting returns and who is not otherwise required
24		to file monthly or quarterly returns, need not file monthly or
25		quarterly returns. However, those retailers shall be required
26		to file returns on an annual basis.

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1		The transaction reporting return, in the case of motor
2		vehicles or trailers that are required to be registered with an
3		agency of this State, shall be the same document as the Uniform
4		Invoice referred to in Section 5-402 of The Illinois Vehicle
5		Code and must show the name and address of the seller; the name
6		and address of the purchaser; the amount of the selling price
7		including the amount allowed by the retailer for traded-in
8		property, if any; the amount allowed by the retailer for the
9		traded-in tangible personal property, if any, to the extent to
10		which Section 1 of this Act allows an exemption for the value
11		of traded-in property; the balance payable after deducting such
12		trade-in allowance from the total selling price; the amount of
13		tax due from the retailer with respect to such transaction; the
14		amount of tax collected from the purchaser by the retailer on
15		such transaction (or satisfactory evidence that such tax is not
16		due in that particular instance, if that is claimed to be the
17		fact); the place and date of the sale; a sufficient
18		identification of the property sold; such other information as
19		is required in Section 5-402 of The Illinois Vehicle Code, and
20		such other information as the Department may reasonably
21		require.
22		The transaction reporting return in the case of watercraft
23		or aircraft must show the name and address of the seller; the
24		name and address of the purchaser; the amount of the selling
25		price including the amount allowed by the retailer for
26		traded-in property, if any; the amount allowed by the retailer

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1		for the traded-in tangible personal property, if any, to the
2		extent to which Section 1 of this Act allows an exemption for
3		the value of traded-in property; the balance payable after
4		deducting such trade-in allowance from the total selling price;
5		the amount of tax due from the retailer with respect to such
6		transaction; the amount of tax collected from the purchaser by
7		the retailer on such transaction (or satisfactory evidence that
8		such tax is not due in that particular instance, if that is
9		claimed to be the fact); the place and date of the sale, a
10		sufficient identification of the property sold, and such other
11		information as the Department may reasonably require.
12		Such transaction reporting return shall be filed not later
13		than 20 days after the day of delivery of the item that is
14		being sold, but may be filed by the retailer at any time sooner
15		than that if he chooses to do so. The transaction reporting
16		return and tax remittance or proof of exemption from the
17		Illinois use tax may be transmitted to the Department by way of
18		the State agency with which, or State officer with whom the
19		tangible personal property must be titled or registered (if
20		titling or registration is required) if the Department and such
21		agency or State officer determine that this procedure will
22		expedite the processing of applications for title or
23		registration.
24		With each such transaction reporting return, the retailer
25		shall remit the proper amount of tax due (or shall submit
26		satisfactory evidence that the sale is not taxable if that is

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1		the case), to the Department or its agents, whereupon the
2		Department shall issue, in the purchaser's name, a use tax
3		receipt (or a certificate of exemption if the Department is
4		satisfied that the particular sale is tax exempt) which such
5		purchaser may submit to the agency with which, or State officer
6		with whom, he must title or register the tangible personal
7		property that is involved (if titling or registration is
8		required) in support of such purchaser's application for an
9		Illinois certificate or other evidence of title or registration
10		to such tangible personal property.
11		No retailer's failure or refusal to remit tax under this
12		Act precludes a user, who has paid the proper tax to the
13		retailer, from obtaining his certificate of title or other
14		evidence of title or registration (if titling or registration
15		is required) upon satisfying the Department that such user has
16		paid the proper tax (if tax is due) to the retailer. The
17		Department shall adopt appropriate rules to carry out the
18		mandate of this paragraph.
19		If the user who would otherwise pay tax to the retailer
20		wants the transaction reporting return filed and the payment of
21		the tax or proof of exemption made to the Department before the
22		retailer is willing to take these actions and such user has not
23		paid the tax to the retailer, such user may certify to the fact
24		of such delay by the retailer and may (upon the Department
25		being satisfied of the truth of such certification) transmit
26		the information required by the transaction reporting return

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1		and the remittance for tax or proof of exemption directly to
2		the Department and obtain his tax receipt or exemption
3		determination, in which event the transaction reporting return
4		and tax remittance (if a tax payment was required) shall be
5		credited by the Department to the proper retailer's account
6		with the Department, but without the 2.1% or 1.75% discount
7		provided for in this Section being allowed. When the user pays
8		the tax directly to the Department, he shall pay the tax in the
9		same amount and in the same form in which it would be remitted
10		if the tax had been remitted to the Department by the retailer.
11		Refunds made by the seller during the preceding return
12		period to purchasers, on account of tangible personal property
13		returned to the seller, shall be allowed as a deduction under
14		subdivision 5 of his monthly or quarterly return, as the case
15		may be, in case the seller had theretofore included the
16		receipts from the sale of such tangible personal property in a
17		return filed by him and had paid the tax imposed by this Act
18		with respect to such receipts.
19		Where the seller is a corporation, the return filed on
20		behalf of such corporation shall be signed by the president,
21		vice-president, secretary or treasurer or by the properly
22		accredited agent of such corporation.
23		Where the seller is a limited liability company, the return
24		filed on behalf of the limited liability company shall be
25		signed by a manager, member, or properly accredited agent of
26		the limited liability company.

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1		Except as provided in this Section, the retailer filing the
2		return under this Section shall, at the time of filing such
3		return, pay to the Department the amount of tax imposed by this
4		Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
5		on and after January 1, 1990, or $5 per calendar year,
6		whichever is greater, which is allowed to reimburse the
7		retailer for the expenses incurred in keeping records,
8		preparing and filing returns, remitting the tax and supplying
9		data to the Department on request. Any prepayment made pursuant
10		to Section 2d of this Act shall be included in the amount on
11		which such 2.1% or 1.75% discount is computed. In the case of
12		retailers who report and pay the tax on a transaction by
13		transaction basis, as provided in this Section, such discount
14		shall be taken with each such tax remittance instead of when
15		such retailer files his periodic return. The Department may
16		disallow the discount for retailers whose certificate of
17		registration is revoked at the time the return is filed, but
18		only if the Department's decision to revoke the certificate of
19		registration has become final.
20		Before October 1, 2000, if the taxpayer's average monthly
21		tax liability to the Department under this Act, the Use Tax
22		Act, the Service Occupation Tax Act, and the Service Use Tax
23		Act, excluding any liability for prepaid sales tax to be
24		remitted in accordance with Section 2d of this Act, was $10,000
25		or more during the preceding 4 complete calendar quarters, he
26		shall file a return with the Department each month by the 20th

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1		day of the month next following the month during which such tax
2		liability is incurred and shall make payments to the Department
3		on or before the 7th, 15th, 22nd and last day of the month
4		during which such liability is incurred. On and after October
5		1, 2000, if the taxpayer's average monthly tax liability to the
6		Department under this Act, the Use Tax Act, the Service
7		Occupation Tax Act, and the Service Use Tax Act, excluding any
8		liability for prepaid sales tax to be remitted in accordance
9		with Section 2d of this Act, was $20,000 or more during the
10		preceding 4 complete calendar quarters, he shall file a return
11		with the Department each month by the 20th day of the month
12		next following the month during which such tax liability is
13		incurred and shall make payment to the Department on or before
14		the 7th, 15th, 22nd and last day of the month during which such
15		liability is incurred. If the month during which such tax
16		liability is incurred began prior to January 1, 1985, each
17		payment shall be in an amount equal to 1/4 of the taxpayer's
18		actual liability for the month or an amount set by the
19		Department not to exceed 1/4 of the average monthly liability
20		of the taxpayer to the Department for the preceding 4 complete
21		calendar quarters (excluding the month of highest liability and
22		the month of lowest liability in such 4 quarter period). If the
23		month during which such tax liability is incurred begins on or
24		after January 1, 1985 and prior to January 1, 1987, each
25		payment shall be in an amount equal to 22.5% of the taxpayer's
26		actual liability for the month or 27.5% of the taxpayer's

SB3095 Engrossed - 20 - LRB099 20651 RPS 45255 b
1		liability for the same calendar month of the preceding year. If
2		the month during which such tax liability is incurred begins on
3		or after January 1, 1987 and prior to January 1, 1988, each
4		payment shall be in an amount equal to 22.5% of the taxpayer's
5		actual liability for the month or 26.25% of the taxpayer's
6		liability for the same calendar month of the preceding year. If
7		the month during which such tax liability is incurred begins on
8		or after January 1, 1988, and prior to January 1, 1989, or
9		begins on or after January 1, 1996, each payment shall be in an
10		amount equal to 22.5% of the taxpayer's actual liability for
11		the month or 25% of the taxpayer's liability for the same
12		calendar month of the preceding year. If the month during which
13		such tax liability is incurred begins on or after January 1,
14		1989, and prior to January 1, 1996, each payment shall be in an
15		amount equal to 22.5% of the taxpayer's actual liability for
16		the month or 25% of the taxpayer's liability for the same
17		calendar month of the preceding year or 100% of the taxpayer's
18		actual liability for the quarter monthly reporting period. The
19		amount of such quarter monthly payments shall be credited
20		against the final tax liability of the taxpayer's return for
21		that month. Before October 1, 2000, once applicable, the
22		requirement of the making of quarter monthly payments to the
23		Department by taxpayers having an average monthly tax liability
24		of $10,000 or more as determined in the manner provided above
25		shall continue until such taxpayer's average monthly liability
26		to the Department during the preceding 4 complete calendar

SB3095 Engrossed - 21 - LRB099 20651 RPS 45255 b
1		quarters (excluding the month of highest liability and the
2		month of lowest liability) is less than $9,000, or until such
3		taxpayer's average monthly liability to the Department as
4		computed for each calendar quarter of the 4 preceding complete
5		calendar quarter period is less than $10,000. However, if a
6		taxpayer can show the Department that a substantial change in
7		the taxpayer's business has occurred which causes the taxpayer
8		to anticipate that his average monthly tax liability for the
9		reasonably foreseeable future will fall below the $10,000
10		threshold stated above, then such taxpayer may petition the
11		Department for a change in such taxpayer's reporting status. On
12		and after October 1, 2000, once applicable, the requirement of
13		the making of quarter monthly payments to the Department by
14		taxpayers having an average monthly tax liability of $20,000 or
15		more as determined in the manner provided above shall continue
16		until such taxpayer's average monthly liability to the
17		Department during the preceding 4 complete calendar quarters
18		(excluding the month of highest liability and the month of
19		lowest liability) is less than $19,000 or until such taxpayer's
20		average monthly liability to the Department as computed for
21		each calendar quarter of the 4 preceding complete calendar
22		quarter period is less than $20,000. However, if a taxpayer can
23		show the Department that a substantial change in the taxpayer's
24		business has occurred which causes the taxpayer to anticipate
25		that his average monthly tax liability for the reasonably
26		foreseeable future will fall below the $20,000 threshold stated

SB3095 Engrossed - 22 - LRB099 20651 RPS 45255 b
1		above, then such taxpayer may petition the Department for a
2		change in such taxpayer's reporting status. The Department
3		shall change such taxpayer's reporting status unless it finds
4		that such change is seasonal in nature and not likely to be
5		long term. If any such quarter monthly payment is not paid at
6		the time or in the amount required by this Section, then the
7		taxpayer shall be liable for penalties and interest on the
8		difference between the minimum amount due as a payment and the
9		amount of such quarter monthly payment actually and timely
10		paid, except insofar as the taxpayer has previously made
11		payments for that month to the Department in excess of the
12		minimum payments previously due as provided in this Section.
13		The Department shall make reasonable rules and regulations to
14		govern the quarter monthly payment amount and quarter monthly
15		payment dates for taxpayers who file on other than a calendar
16		monthly basis.
17		The provisions of this paragraph apply before October 1,
18		2001. Without regard to whether a taxpayer is required to make
19		quarter monthly payments as specified above, any taxpayer who
20		is required by Section 2d of this Act to collect and remit
21		prepaid taxes and has collected prepaid taxes which average in
22		excess of $25,000 per month during the preceding 2 complete
23		calendar quarters, shall file a return with the Department as
24		required by Section 2f and shall make payments to the
25		Department on or before the 7th, 15th, 22nd and last day of the
26		month during which such liability is incurred. If the month

SB3095 Engrossed - 23 - LRB099 20651 RPS 45255 b
1		during which such tax liability is incurred began prior to the
2		effective date of this amendatory Act of 1985, each payment
3		shall be in an amount not less than 22.5% of the taxpayer's
4		actual liability under Section 2d. If the month during which
5		such tax liability is incurred begins on or after January 1,
6		1986, each payment shall be in an amount equal to 22.5% of the
7		taxpayer's actual liability for the month or 27.5% of the
8		taxpayer's liability for the same calendar month of the
9		preceding calendar year. If the month during which such tax
10		liability is incurred begins on or after January 1, 1987, each
11		payment shall be in an amount equal to 22.5% of the taxpayer's
12		actual liability for the month or 26.25% of the taxpayer's
13		liability for the same calendar month of the preceding year.
14		The amount of such quarter monthly payments shall be credited
15		against the final tax liability of the taxpayer's return for
16		that month filed under this Section or Section 2f, as the case
17		may be. Once applicable, the requirement of the making of
18		quarter monthly payments to the Department pursuant to this
19		paragraph shall continue until such taxpayer's average monthly
20		prepaid tax collections during the preceding 2 complete
21		calendar quarters is $25,000 or less. If any such quarter
22		monthly payment is not paid at the time or in the amount
23		required, the taxpayer shall be liable for penalties and
24		interest on such difference, except insofar as the taxpayer has
25		previously made payments for that month in excess of the
26		minimum payments previously due.

SB3095 Engrossed - 24 - LRB099 20651 RPS 45255 b
1		The provisions of this paragraph apply on and after October
2		1, 2001. Without regard to whether a taxpayer is required to
3		make quarter monthly payments as specified above, any taxpayer
4		who is required by Section 2d of this Act to collect and remit
5		prepaid taxes and has collected prepaid taxes that average in
6		excess of $20,000 per month during the preceding 4 complete
7		calendar quarters shall file a return with the Department as
8		required by Section 2f and shall make payments to the
9		Department on or before the 7th, 15th, 22nd and last day of the
10		month during which the liability is incurred. Each payment
11		shall be in an amount equal to 22.5% of the taxpayer's actual
12		liability for the month or 25% of the taxpayer's liability for
13		the same calendar month of the preceding year. The amount of
14		the quarter monthly payments shall be credited against the
15		final tax liability of the taxpayer's return for that month
16		filed under this Section or Section 2f, as the case may be.
17		Once applicable, the requirement of the making of quarter
18		monthly payments to the Department pursuant to this paragraph
19		shall continue until the taxpayer's average monthly prepaid tax
20		collections during the preceding 4 complete calendar quarters
21		(excluding the month of highest liability and the month of
22		lowest liability) is less than $19,000 or until such taxpayer's
23		average monthly liability to the Department as computed for
24		each calendar quarter of the 4 preceding complete calendar
25		quarters is less than $20,000. If any such quarter monthly
26		payment is not paid at the time or in the amount required, the

SB3095 Engrossed - 25 - LRB099 20651 RPS 45255 b
1		taxpayer shall be liable for penalties and interest on such
2		difference, except insofar as the taxpayer has previously made
3		payments for that month in excess of the minimum payments
4		previously due.
5		If any payment provided for in this Section exceeds the
6		taxpayer's liabilities under this Act, the Use Tax Act, the
7		Service Occupation Tax Act and the Service Use Tax Act, as
8		shown on an original monthly return, the Department shall, if
9		requested by the taxpayer, issue to the taxpayer a credit
10		memorandum no later than 30 days after the date of payment. The
11		credit evidenced by such credit memorandum may be assigned by
12		the taxpayer to a similar taxpayer under this Act, the Use Tax
13		Act, the Service Occupation Tax Act or the Service Use Tax Act,
14		in accordance with reasonable rules and regulations to be
15		prescribed by the Department. If no such request is made, the
16		taxpayer may credit such excess payment against tax liability
17		subsequently to be remitted to the Department under this Act,
18		the Use Tax Act, the Service Occupation Tax Act or the Service
19		Use Tax Act, in accordance with reasonable rules and
20		regulations prescribed by the Department. If the Department
21		subsequently determined that all or any part of the credit
22		taken was not actually due to the taxpayer, the taxpayer's 2.1%
23		and 1.75% vendor's discount shall be reduced by 2.1% or 1.75%
24		of the difference between the credit taken and that actually
25		due, and that taxpayer shall be liable for penalties and
26		interest on such difference.

SB3095 Engrossed - 26 - LRB099 20651 RPS 45255 b
1		If a retailer of motor fuel is entitled to a credit under
2		Section 2d of this Act which exceeds the taxpayer's liability
3		to the Department under this Act for the month which the
4		taxpayer is filing a return, the Department shall issue the
5		taxpayer a credit memorandum for the excess.
6		Beginning January 1, 1990, each month the Department shall
7		pay into the Local Government Tax Fund, a special fund in the
8		State treasury which is hereby created, the net revenue
9		realized for the preceding month from the 1% tax on sales of
10		food for human consumption which is to be consumed off the
11		premises where it is sold (other than alcoholic beverages, soft
12		drinks and food which has been prepared for immediate
13		consumption) and prescription and nonprescription medicines,
14		drugs, medical appliances and insulin, urine testing
15		materials, syringes and needles used by diabetics.
16		Beginning January 1, 1990, each month the Department shall
17		pay into the County and Mass Transit District Fund, a special
18		fund in the State treasury which is hereby created, 4% of the
19		net revenue realized for the preceding month from the 6.25%
20		general rate.
21		Beginning August 1, 2000, each month the Department shall
22		pay into the County and Mass Transit District Fund 20% of the
23		net revenue realized for the preceding month from the 1.25%
24		rate on the selling price of motor fuel and gasohol. Beginning
25		September 1, 2010, each month the Department shall pay into the
26		County and Mass Transit District Fund 20% of the net revenue

SB3095 Engrossed - 27 - LRB099 20651 RPS 45255 b
1		realized for the preceding month from the 1.25% rate on the
2		selling price of sales tax holiday items.
3		Beginning January 1, 1990, each month the Department shall
4		pay into the Local Government Tax Fund 16% of the net revenue
5		realized for the preceding month from the 6.25% general rate on
6		the selling price of tangible personal property.
7		Beginning August 1, 2000, each month the Department shall
8		pay into the Local Government Tax Fund 80% of the net revenue
9		realized for the preceding month from the 1.25% rate on the
10		selling price of motor fuel and gasohol. Beginning September 1,
11		2010, each month the Department shall pay into the Local
12		Government Tax Fund 80% of the net revenue realized for the
13		preceding month from the 1.25% rate on the selling price of
14		sales tax holiday items.
15		Beginning October 1, 2009, each month the Department shall
16		pay into the Capital Projects Fund an amount that is equal to
17		an amount estimated by the Department to represent 80% of the
18		net revenue realized for the preceding month from the sale of
19		candy, grooming and hygiene products, and soft drinks that had
20		been taxed at a rate of 1% prior to September 1, 2009 but that
21		are now taxed at 6.25%.
22		Beginning July 1, 2011, each month the Department shall pay
23		into the Clean Air Act (CAA) Permit Fund 80% of the net revenue
24		realized for the preceding month from the 6.25% general rate on
25		the selling price of sorbents used in Illinois in the process
26		of sorbent injection as used to comply with the Environmental

SB3095 Engrossed - 28 - LRB099 20651 RPS 45255 b
1		Protection Act or the federal Clean Air Act, but the total
2		payment into the Clean Air Act (CAA) Permit Fund under this Act
3		and the Use Tax Act shall not exceed $2,000,000 in any fiscal
4		year.
5		Beginning July 1, 2013, each month the Department shall pay
6		into the Underground Storage Tank Fund from the proceeds
7		collected under this Act, the Use Tax Act, the Service Use Tax
8		Act, and the Service Occupation Tax Act an amount equal to the
9		average monthly deficit in the Underground Storage Tank Fund
10		during the prior year, as certified annually by the Illinois
11		Environmental Protection Agency, but the total payment into the
12		Underground Storage Tank Fund under this Act, the Use Tax Act,
13		the Service Use Tax Act, and the Service Occupation Tax Act
14		shall not exceed $18,000,000 in any State fiscal year. As used
15		in this paragraph, the "average monthly deficit" shall be equal
16		to the difference between the average monthly claims for
17		payment by the fund and the average monthly revenues deposited
18		into the fund, excluding payments made pursuant to this
19		paragraph.
20		Beginning July 1, 2015, of the remainder of the moneys
21		received by the Department under the Use Tax Act, the Service
22		Use Tax Act, the Service Occupation Tax Act, and this Act, each
23		month the Department shall deposit $500,000 into the State
24		Crime Laboratory Fund.
25		Of the remainder of the moneys received by the Department
26		pursuant to this Act, (a) 1.75% thereof shall be paid into the

SB3095 Engrossed - 29 - LRB099 20651 RPS 45255 b
1		Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
2		and after July 1, 1989, 3.8% thereof shall be paid into the
3		Build Illinois Fund; provided, however, that if in any fiscal
4		year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
5		may be, of the moneys received by the Department and required
6		to be paid into the Build Illinois Fund pursuant to this Act,
7		Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
8		Act, and Section 9 of the Service Occupation Tax Act, such Acts
9		being hereinafter called the "Tax Acts" and such aggregate of
10		2.2% or 3.8%, as the case may be, of moneys being hereinafter
11		called the "Tax Act Amount", and (2) the amount transferred to
12		the Build Illinois Fund from the State and Local Sales Tax
13		Reform Fund shall be less than the Annual Specified Amount (as
14		hereinafter defined), an amount equal to the difference shall
15		be immediately paid into the Build Illinois Fund from other
16		moneys received by the Department pursuant to the Tax Acts; the
17		"Annual Specified Amount" means the amounts specified below for
18		fiscal years 1986 through 1993:
19 Fiscal Year Annual Specified Amount 20 1986 $54,800,000 21 1987 $76,650,000 22 1988 $80,480,000 23 1989 $88,510,000 24 1990 $115,330,000 25 1991 $145,470,000 26 1992 $182,730,000

SB3095 Engrossed - 30 - LRB099 20651 RPS 45255 b
1 1993 $206,520,000;
2		and means the Certified Annual Debt Service Requirement (as
3		defined in Section 13 of the Build Illinois Bond Act) or the
4		Tax Act Amount, whichever is greater, for fiscal year 1994 and
5		each fiscal year thereafter; and further provided, that if on
6		the last business day of any month the sum of (1) the Tax Act
7		Amount required to be deposited into the Build Illinois Bond
8		Account in the Build Illinois Fund during such month and (2)
9		the amount transferred to the Build Illinois Fund from the
10		State and Local Sales Tax Reform Fund shall have been less than
11		1/12 of the Annual Specified Amount, an amount equal to the
12		difference shall be immediately paid into the Build Illinois
13		Fund from other moneys received by the Department pursuant to
14		the Tax Acts; and, further provided, that in no event shall the
15		payments required under the preceding proviso result in
16		aggregate payments into the Build Illinois Fund pursuant to
17		this clause (b) for any fiscal year in excess of the greater of
18		(i) the Tax Act Amount or (ii) the Annual Specified Amount for
19		such fiscal year. The amounts payable into the Build Illinois
20		Fund under clause (b) of the first sentence in this paragraph
21		shall be payable only until such time as the aggregate amount
22		on deposit under each trust indenture securing Bonds issued and
23		outstanding pursuant to the Build Illinois Bond Act is
24		sufficient, taking into account any future investment income,
25		to fully provide, in accordance with such indenture, for the
26		defeasance of or the payment of the principal of, premium, if

SB3095 Engrossed - 31 - LRB099 20651 RPS 45255 b
1		any, and interest on the Bonds secured by such indenture and on
2		any Bonds expected to be issued thereafter and all fees and
3		costs payable with respect thereto, all as certified by the
4		Director of the Bureau of the Budget (now Governor's Office of
5		Management and Budget). If on the last business day of any
6		month in which Bonds are outstanding pursuant to the Build
7		Illinois Bond Act, the aggregate of moneys deposited in the
8		Build Illinois Bond Account in the Build Illinois Fund in such
9		month shall be less than the amount required to be transferred
10		in such month from the Build Illinois Bond Account to the Build
11		Illinois Bond Retirement and Interest Fund pursuant to Section
12		13 of the Build Illinois Bond Act, an amount equal to such
13		deficiency shall be immediately paid from other moneys received
14		by the Department pursuant to the Tax Acts to the Build
15		Illinois Fund; provided, however, that any amounts paid to the
16		Build Illinois Fund in any fiscal year pursuant to this
17		sentence shall be deemed to constitute payments pursuant to
18		clause (b) of the first sentence of this paragraph and shall
19		reduce the amount otherwise payable for such fiscal year
20		pursuant to that clause (b). The moneys received by the
21		Department pursuant to this Act and required to be deposited
22		into the Build Illinois Fund are subject to the pledge, claim
23		and charge set forth in Section 12 of the Build Illinois Bond
24		Act.
25		Subject to payment of amounts into the Build Illinois Fund
26		as provided in the preceding paragraph or in any amendment

SB3095 Engrossed - 32 - LRB099 20651 RPS 45255 b
1		thereto hereafter enacted, the following specified monthly
2		installment of the amount requested in the certificate of the
3		Chairman of the Metropolitan Pier and Exposition Authority
4		provided under Section 8.25f of the State Finance Act, but not
5		in excess of sums designated as "Total Deposit", shall be
6		deposited in the aggregate from collections under Section 9 of
7		the Use Tax Act, Section 9 of the Service Use Tax Act, Section
8		9 of the Service Occupation Tax Act, and Section 3 of the
9		Retailers' Occupation Tax Act into the McCormick Place
10		Expansion Project Fund in the specified fiscal years.
11 Fiscal Year Total Deposit 12 1993 $0 13 1994 53,000,000 14 1995 58,000,000 15 1996 61,000,000 16 1997 64,000,000 17 1998 68,000,000 18 1999 71,000,000 19 2000 75,000,000 20 2001 80,000,000 21 2002 93,000,000 22 2003 99,000,000 23 2004 103,000,000 24 2005 108,000,000 25 2006 113,000,000

SB3095 Engrossed - 33 - LRB099 20651 RPS 45255 b

1 2007 119,000,000 2 2008 126,000,000 3 2009 132,000,000 4 2010 139,000,000 5 2011 146,000,000 6 2012 153,000,000 7 2013 161,000,000 8 2014 170,000,000 9 2015 179,000,000 10 2016 189,000,000 11 2017 199,000,000 12 2018 210,000,000 13 2019 221,000,000 14 2020 233,000,000 15 2021 246,000,000 16 2022 260,000,000 17 2023 275,000,000 18 2024 275,000,000 19 2025 275,000,000 20 2026 279,000,000 21 2027 292,000,000 22 2028 307,000,000 23 2029 322,000,000 24 2030 338,000,000 25 2031 350,000,000 26 2032 350,000,000

SB3095 Engrossed - 34 - LRB099 20651 RPS 45255 b
1 and 2 each fiscal year 3 thereafter that bonds 4 are outstanding under 5 Section 13.2 of the 6 Metropolitan Pier and 7 Exposition Authority Act, 8 but not after fiscal year 2060.
9		Beginning July 20, 1993 and in each month of each fiscal
10		year thereafter, one-eighth of the amount requested in the
11		certificate of the Chairman of the Metropolitan Pier and
12		Exposition Authority for that fiscal year, less the amount
13		deposited into the McCormick Place Expansion Project Fund by
14		the State Treasurer in the respective month under subsection
15		(g) of Section 13 of the Metropolitan Pier and Exposition
16		Authority Act, plus cumulative deficiencies in the deposits
17		required under this Section for previous months and years,
18		shall be deposited into the McCormick Place Expansion Project
19		Fund, until the full amount requested for the fiscal year, but
20		not in excess of the amount specified above as "Total Deposit",
21		has been deposited.
22		Subject to payment of amounts into the Build Illinois Fund
23		and the McCormick Place Expansion Project Fund pursuant to the
24		preceding paragraphs or in any amendments thereto hereafter
25		enacted, beginning July 1, 1993 and ending on September 30,
26		2013, the Department shall each month pay into the Illinois Tax

SB3095 Engrossed - 35 - LRB099 20651 RPS 45255 b
1		Increment Fund 0.27% of 80% of the net revenue realized for the
2		preceding month from the 6.25% general rate on the selling
3		price of tangible personal property.
4		Subject to payment of amounts into the Build Illinois Fund
5		and the McCormick Place Expansion Project Fund pursuant to the
6		preceding paragraphs or in any amendments thereto hereafter
7		enacted, beginning with the receipt of the first report of
8		taxes paid by an eligible business and continuing for a 25-year
9		period, the Department shall each month pay into the Energy
10		Infrastructure Fund 80% of the net revenue realized from the
11		6.25% general rate on the selling price of Illinois-mined coal
12		that was sold to an eligible business. For purposes of this
13		paragraph, the term "eligible business" means a new electric
14		generating facility certified pursuant to Section 605-332 of
15		the Department of Commerce and Economic Opportunity Law of the
16		Civil Administrative Code of Illinois.
17		Subject to payment of amounts into the Build Illinois Fund,
18		the McCormick Place Expansion Project Fund, the Illinois Tax
19		Increment Fund, and the Energy Infrastructure Fund pursuant to
20		the preceding paragraphs or in any amendments to this Section
21		hereafter enacted, beginning on the first day of the first
22		calendar month to occur on or after the effective date of this
23		amendatory Act of the 98th General Assembly, each month, from
24		the collections made under Section 9 of the Use Tax Act,
25		Section 9 of the Service Use Tax Act, Section 9 of the Service
26		Occupation Tax Act, and Section 3 of the Retailers' Occupation

SB3095 Engrossed - 36 - LRB099 20651 RPS 45255 b
1		Tax Act, the Department shall pay into the Tax Compliance and
2		Administration Fund, to be used, subject to appropriation, to
3		fund additional auditors and compliance personnel at the
4		Department of Revenue, an amount equal to 1/12 of 5% of 80% of
5		the cash receipts collected during the preceding fiscal year by
6		the Audit Bureau of the Department under the Use Tax Act, the
7		Service Use Tax Act, the Service Occupation Tax Act, the
8		Retailers' Occupation Tax Act, and associated local occupation
9		and use taxes administered by the Department.
10		Of the remainder of the moneys received by the Department
11		pursuant to this Act, 75% thereof shall be paid into the State
12		Treasury and 25% shall be reserved in a special account and
13		used only for the transfer to the Common School Fund as part of
14		the monthly transfer from the General Revenue Fund in
15		accordance with Section 8a of the State Finance Act.
16		The Department may, upon separate written notice to a
17		taxpayer, require the taxpayer to prepare and file with the
18		Department on a form prescribed by the Department within not
19		less than 60 days after receipt of the notice an annual
20		information return for the tax year specified in the notice.
21		Such annual return to the Department shall include a statement
22		of gross receipts as shown by the retailer's last Federal
23		income tax return. If the total receipts of the business as
24		reported in the Federal income tax return do not agree with the
25		gross receipts reported to the Department of Revenue for the
26		same period, the retailer shall attach to his annual return a

SB3095 Engrossed - 37 - LRB099 20651 RPS 45255 b
1		schedule showing a reconciliation of the 2 amounts and the
2		reasons for the difference. The retailer's annual return to the
3		Department shall also disclose the cost of goods sold by the
4		retailer during the year covered by such return, opening and
5		closing inventories of such goods for such year, costs of goods
6		used from stock or taken from stock and given away by the
7		retailer during such year, payroll information of the
8		retailer's business during such year and any additional
9		reasonable information which the Department deems would be
10		helpful in determining the accuracy of the monthly, quarterly
11		or annual returns filed by such retailer as provided for in
12		this Section.
13		If the annual information return required by this Section
14		is not filed when and as required, the taxpayer shall be liable
15		as follows:
16		(i) Until January 1, 1994, the taxpayer shall be liable
17		for a penalty equal to 1/6 of 1% of the tax due from such
18		taxpayer under this Act during the period to be covered by
19		the annual return for each month or fraction of a month
20		until such return is filed as required, the penalty to be
21		assessed and collected in the same manner as any other
22		penalty provided for in this Act.
23		(ii) On and after January 1, 1994, the taxpayer shall
24		be liable for a penalty as described in Section 3-4 of the
25		Uniform Penalty and Interest Act.
26		The chief executive officer, proprietor, owner or highest

SB3095 Engrossed - 38 - LRB099 20651 RPS 45255 b
1		ranking manager shall sign the annual return to certify the
2		accuracy of the information contained therein. Any person who
3		willfully signs the annual return containing false or
4		inaccurate information shall be guilty of perjury and punished
5		accordingly. The annual return form prescribed by the
6		Department shall include a warning that the person signing the
7		return may be liable for perjury.
8		The provisions of this Section concerning the filing of an
9		annual information return do not apply to a retailer who is not
10		required to file an income tax return with the United States
11		Government.
12		As soon as possible after the first day of each month, upon
13		certification of the Department of Revenue, the Comptroller
14		shall order transferred and the Treasurer shall transfer from
15		the General Revenue Fund to the Motor Fuel Tax Fund an amount
16		equal to 1.7% of 80% of the net revenue realized under this Act
17		for the second preceding month. Beginning April 1, 2000, this
18		transfer is no longer required and shall not be made.
19		Net revenue realized for a month shall be the revenue
20		collected by the State pursuant to this Act, less the amount
21		paid out during that month as refunds to taxpayers for
22		overpayment of liability.
23		For greater simplicity of administration, manufacturers,
24		importers and wholesalers whose products are sold at retail in
25		Illinois by numerous retailers, and who wish to do so, may
26		assume the responsibility for accounting and paying to the

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1		Department all tax accruing under this Act with respect to such
2		sales, if the retailers who are affected do not make written
3		objection to the Department to this arrangement.
4		Any person who promotes, organizes, provides retail
5		selling space for concessionaires or other types of sellers at
6		the Illinois State Fair, DuQuoin State Fair, county fairs,
7		local fairs, art shows, flea markets and similar exhibitions or
8		events, including any transient merchant as defined by Section
9		2 of the Transient Merchant Act of 1987, is required to file a
10		report with the Department providing the name of the merchant's
11		business, the name of the person or persons engaged in
12		merchant's business, the permanent address and Illinois
13		Retailers Occupation Tax Registration Number of the merchant,
14		the dates and location of the event and other reasonable
15		information that the Department may require. The report must be
16		filed not later than the 20th day of the month next following
17		the month during which the event with retail sales was held.
18		Any person who fails to file a report required by this Section
19		commits a business offense and is subject to a fine not to
20		exceed $250.
21		Any person engaged in the business of selling tangible
22		personal property at retail as a concessionaire or other type
23		of seller at the Illinois State Fair, county fairs, art shows,
24		flea markets and similar exhibitions or events, or any
25		transient merchants, as defined by Section 2 of the Transient
26		Merchant Act of 1987, may be required to make a daily report of

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1		the amount of such sales to the Department and to make a daily
2		payment of the full amount of tax due. The Department shall
3		impose this requirement when it finds that there is a
4		significant risk of loss of revenue to the State at such an
5		exhibition or event. Such a finding shall be based on evidence
6		that a substantial number of concessionaires or other sellers
7		who are not residents of Illinois will be engaging in the
8		business of selling tangible personal property at retail at the
9		exhibition or event, or other evidence of a significant risk of
10		loss of revenue to the State. The Department shall notify
11		concessionaires and other sellers affected by the imposition of
12		this requirement. In the absence of notification by the
13		Department, the concessionaires and other sellers shall file
14		their returns as otherwise required in this Section.
15		(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
16		98-496, eff. 1-1-14; 98-756, eff. 7-16-14; 98-1098, eff.
17		8-26-14; 99-352, eff. 8-12-15.)
18		Section 15. The Counties Code is amended by changing
19		Section 3-9007 as follows:
20		(55 ILCS 5/3-9007) (from Ch. 34, par. 3-9007)
21		Sec. 3-9007. Home rule unit liquor tax ordinance;
22		prosecutions. Where any county, municipality or other unit of
23		local government has adopted any ordinance or other regulation
24		imposing a tax upon the privilege of engaging in business as a

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1		manufacturer, importing distributor, retailer, or distributor
2		of beer, alcohol or other spirits, pursuant to its home rule
3		powers under Article VII, Section 6 of the Constitution of the
4		State of Illinois, nothing shall prohibit a State's attorney
5		from prosecuting any offense under the Criminal Code of 1961 or
6		the Criminal Code of 2012 which may also constitute a violation
7		of the applicable ordinance or regulation.
8		(Source: P.A. 97-1150, eff. 1-25-13.)
9		Section 30. The Liquor Control Act of 1934 is amended by
10		changing Sections 1-3.05, 1-3.15, 1-3.21, 1-3.27, 1-3.29,
11		1-3.33, 1-3.38, 3-12, 3-14, 4-4, 5-1, 5-3, 6-2, 6-4, 6-4.5,
12		6-5, 6-6, 6-6.3, 6-6.5, 6-7, 6-8, 6-9, 6-17, 6-17.1, 6-22,
13		6-23, 6-27.1, 6-29, 6-29.1, 6-31, 7-1, 7-6, 8-1, 8-2, 8-5,
14		8-10, 9-13, 10-1, and 10-7.1 and by renumbering and changing
15		Section 1-3.40 as added by Public Act 99-448 as follows:
16		(235 ILCS 5/1-3.05) (from Ch. 43, par. 95.05)
17		Sec. 1-3.05. "Alcoholic liquor" includes alcohol, spirits,
18		wine and beer, and every liquid or solid, patented or not,
19		containing alcohol, spirits, wine or beer, and capable of being
20		consumed as a beverage by a human being. The provisions of this
21		Act shall not apply to alcohol used in the manufacture of
22		denatured alcohol produced in accordance with Acts of Congress
23		and regulations promulgated thereunder, nor to any liquid or
24		solid containing one-half of one per cent, or less, of alcohol

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1		by volume. No tax provided for in Article VIII of this Act
2		shall apply to wine intended for use and used by any church or
3		religious organization for sacramental purposes, provided that
4		such wine shall be purchased from a licensed manufacturer or
5		importing distributor under this Act.
6		(Source: P.A. 82-783.)
7		(235 ILCS 5/1-3.15) (from Ch. 43, par. 95.15)
8		Sec. 1-3.15. "Distributor" means any person, other than a
9		manufacturer or non-resident dealer licensed under this Act,
10		who is engaged in this State in purchasing, storing, possessing
11		or warehousing any alcoholic liquors for resale or reselling at
12		wholesale, whether within or without this State. "Distributor"
13		also means any person other than a non-resident dealer licensed
14		under this Act who imports into this State, from any point in
15		the United States outside this State, whether for himself or
16		for another, any alcoholic liquors for sale or resale, or for
17		use in the manufacture, preparation or compounding of products
18		other than alcoholic liquors, or who imports into this State,
19		from any point in the United States outside this State, for
20		consumption in any one calendar year, more than one gallon of
21		such liquors.
22		(Source: P.A. 83-1254.)
23		(235 ILCS 5/1-3.21) (from Ch. 43, par. 95.21)
24		Sec. 1-3.21. "Sale" means any transfer, exchange or barter

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1		in any manner, or by any means whatsoever, including the
2		transfer of alcoholic liquors by and through the transfer or
3		negotiation of warehouse receipts or certificates, and
4		includes and means all sales made by any person, whether
5		principal, proprietor, agent, servant or employee. The term
6		"sale" includes any transfer of alcoholic liquor from a foreign
7		importer's license to a an importing distributor's license even
8		if both licenses are held by the same person.
9		(Source: P.A. 82-783.)
10		(235 ILCS 5/1-3.27) (from Ch. 43, par. 95.27)
11		Sec. 1-3.27. "Foreign importer" means anyone other than a
12		non-resident dealer licensed under this Act who imports into
13		this State, from any point outside the United States, any
14		alcoholic liquors other than in bulk for sale to a licensed
15		importing distributor.
16		(Source: P.A. 83-1254.)
17		(235 ILCS 5/1-3.29) (from Ch. 43, par. 95.29)
18		Sec. 1-3.29. "Non-resident dealer" means any person, firm,
19		partnership, corporation or other legal business entity who or
20		which exports into this State, from any point outside of this
21		State, any alcoholic liquors for sale to Illinois licensed
22		foreign importers or importing distributors. Such license
23		shall be restricted to the actual manufacturer of such
24		alcoholic liquors or the primary United States importer of such

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1		alcoholic liquors, if manufactured outside of the United
2		States, or the duly registered agent of such manufacturer or
3		importer. Registration of such agent with the State Commission,
4		in such manner and form as it may prescribe, shall be a
5		prerequisite to the issuance of such license to an agent.
6		Any licensed Illinois manufacturer of Class 1, Class 2, or
7		Class 3 may obtain a Non-Resident Dealer's License at no fee. A
8		manufacturer whose production of alcoholic liquor is less than
9		500,000 gallons per year may obtain a Non-Resident Dealer's
10		License for an annual fee of $75.
11		(Source: P.A. 82-783.)
12		(235 ILCS 5/1-3.33)
13		Sec. 1-3.33. "Brew Pub" means a person who manufactures no
14		more than 155,000 gallons of beer per year only at a designated
15		licensed premises to make sales to importing distributors,
16		distributors, and to non-licensees for use and consumption
17		only, who stores beer at the designated premises, and who is
18		allowed to sell at retail from the licensed premises, provided
19		that a brew pub licensee shall not sell for off-premises
20		consumption more than 155,000 gallons per year.
21		(Source: P.A. 99-448, eff. 8-24-15.)
22		(235 ILCS 5/1-3.38)
23		Sec. 1-3.38. Class 1 brewer. "Class 1 brewer" means a
24		person who is a holder of a brewer license or non-resident

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1		dealer license who manufactures up to 930,000 gallons of beer
2		per year and who may make sales and deliveries to importing
3		distributors and distributors and to retail licensees in
4		accordance with the conditions set forth in paragraph (18) of
5		subsection (a) of Section 3-12 of this Act.
6		(Source: P.A. 98-401, eff. 8-16-13; 99-448, eff. 8-24-15.)
7		(235 ILCS 5/1-3.42)
8		Sec. 1-3.42 1-3.40. Class 2 brewer. "Class 2 brewer" means
9		a person who is a holder of a brewer license or non-resident
10		dealer license who manufactures up to 3,720,000 gallons of beer
11		per year for sale to a licensed importing distributor or
12		distributor.
13		(Source: P.A. 99-448, eff. 8-24-15; revised 10-28-15.)
14		(235 ILCS 5/3-12)
15		Sec. 3-12. Powers and duties of State Commission.
16		(a) The State commission shall have the following powers,
17		functions, and duties:
18		(1) To receive applications and to issue licenses to
19		manufacturers, foreign importers, importing distributors,
20		distributors, non-resident dealers, on premise consumption
21		retailers, off premise sale retailers, special event
22		retailer licensees, special use permit licenses, auction
23		liquor licenses, brew pubs, caterer retailers,
24		non-beverage users, railroads, including owners and

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1		lessees of sleeping, dining and cafe cars, airplanes,
2		boats, brokers, and wine maker's premises licensees in
3		accordance with the provisions of this Act, and to suspend
4		or revoke such licenses upon the State commission's
5		determination, upon notice after hearing, that a licensee
6		has violated any provision of this Act or any rule or
7		regulation issued pursuant thereto and in effect for 30
8		days prior to such violation. Except in the case of an
9		action taken pursuant to a violation of Section 6-3, 6-5,
10		or 6-9, any action by the State Commission to suspend or
11		revoke a licensee's license may be limited to the license
12		for the specific premises where the violation occurred.
13		In lieu of suspending or revoking a license, the
14		commission may impose a fine, upon the State commission's
15		determination and notice after hearing, that a licensee has
16		violated any provision of this Act or any rule or
17		regulation issued pursuant thereto and in effect for 30
18		days prior to such violation.
19		For the purpose of this paragraph (1), when determining
20		multiple violations for the sale of alcohol to a person
21		under the age of 21, a second or subsequent violation for
22		the sale of alcohol to a person under the age of 21 shall
23		only be considered if it was committed within 5 years after
24		the date when a prior violation for the sale of alcohol to
25		a person under the age of 21 was committed.
26		The fine imposed under this paragraph may not exceed

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1		$500 for each violation. Each day that the activity, which
2		gave rise to the original fine, continues is a separate
3		violation. The maximum fine that may be levied against any
4		licensee, for the period of the license, shall not exceed
5		$20,000. The maximum penalty that may be imposed on a
6		licensee for selling a bottle of alcoholic liquor with a
7		foreign object in it or serving from a bottle of alcoholic
8		liquor with a foreign object in it shall be the destruction
9		of that bottle of alcoholic liquor for the first 10 bottles
10		so sold or served from by the licensee. For the eleventh
11		bottle of alcoholic liquor and for each third bottle
12		thereafter sold or served from by the licensee with a
13		foreign object in it, the maximum penalty that may be
14		imposed on the licensee is the destruction of the bottle of
15		alcoholic liquor and a fine of up to $50.
16		(2) To adopt such rules and regulations consistent with
17		the provisions of this Act which shall be necessary to
18		carry on its functions and duties to the end that the
19		health, safety and welfare of the People of the State of
20		Illinois shall be protected and temperance in the
21		consumption of alcoholic liquors shall be fostered and
22		promoted and to distribute copies of such rules and
23		regulations to all licensees affected thereby.
24		(3) To call upon other administrative departments of
25		the State, county and municipal governments, county and
26		city police departments and upon prosecuting officers for

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1		such information and assistance as it deems necessary in
2		the performance of its duties.
3		(4) To recommend to local commissioners rules and
4		regulations, not inconsistent with the law, for the
5		distribution and sale of alcoholic liquors throughout the
6		State.
7		(5) To inspect, or cause to be inspected, any premises
8		in this State where alcoholic liquors are manufactured,
9		distributed, warehoused, or sold. Nothing in this Act
10		authorizes an agent of the Commission to inspect private
11		areas within the premises without reasonable suspicion or a
12		warrant during an inspection. "Private areas" include, but
13		are not limited to, safes, personal property, and closed
14		desks.
15		(5.1) Upon receipt of a complaint or upon having
16		knowledge that any person is engaged in business as a
17		manufacturer, importing distributor, distributor, or
18		retailer without a license or valid license, to notify the
19		local liquor authority, file a complaint with the State's
20		Attorney's Office of the county where the incident
21		occurred, or initiate an investigation with the
22		appropriate law enforcement officials.
23		(5.2) To issue a cease and desist notice to persons
24		shipping alcoholic liquor into this State from a point
25		outside of this State if the shipment is in violation of
26		this Act.

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1		(5.3) To receive complaints from licensees, local
2		officials, law enforcement agencies, organizations, and
3		persons stating that any licensee has been or is violating
4		any provision of this Act or the rules and regulations
5		issued pursuant to this Act. Such complaints shall be in
6		writing, signed and sworn to by the person making the
7		complaint, and shall state with specificity the facts in
8		relation to the alleged violation. If the Commission has
9		reasonable grounds to believe that the complaint
10		substantially alleges a violation of this Act or rules and
11		regulations adopted pursuant to this Act, it shall conduct
12		an investigation. If, after conducting an investigation,
13		the Commission is satisfied that the alleged violation did
14		occur, it shall proceed with disciplinary action against
15		the licensee as provided in this Act.
16		(6) To hear and determine appeals from orders of a
17		local commission in accordance with the provisions of this
18		Act, as hereinafter set forth. Hearings under this
19		subsection shall be held in Springfield or Chicago, at
20		whichever location is the more convenient for the majority
21		of persons who are parties to the hearing.
22		(7) The commission shall establish uniform systems of
23		accounts to be kept by all retail licensees having more
24		than 4 employees, and for this purpose the commission may
25		classify all retail licensees having more than 4 employees
26		and establish a uniform system of accounts for each class

SB3095 Engrossed - 50 - LRB099 20651 RPS 45255 b
1		and prescribe the manner in which such accounts shall be
2		kept. The commission may also prescribe the forms of
3		accounts to be kept by all retail licensees having more
4		than 4 employees, including but not limited to accounts of
5		earnings and expenses and any distribution, payment, or
6		other distribution of earnings or assets, and any other
7		forms, records and memoranda which in the judgment of the
8		commission may be necessary or appropriate to carry out any
9		of the provisions of this Act, including but not limited to
10		such forms, records and memoranda as will readily and
11		accurately disclose at all times the beneficial ownership
12		of such retail licensed business. The accounts, forms,
13		records and memoranda shall be available at all reasonable
14		times for inspection by authorized representatives of the
15		State commission or by any local liquor control
16		commissioner or his or her authorized representative. The
17		commission, may, from time to time, alter, amend or repeal,
18		in whole or in part, any uniform system of accounts, or the
19		form and manner of keeping accounts.
20		(8) In the conduct of any hearing authorized to be held
21		by the commission, to appoint, at the commission's
22		discretion, hearing officers to conduct hearings involving
23		complex issues or issues that will require a protracted
24		period of time to resolve, to examine, or cause to be
25		examined, under oath, any licensee, and to examine or cause
26		to be examined the books and records of such licensee; to

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1		hear testimony and take proof material for its information
2		in the discharge of its duties hereunder; to administer or
3		cause to be administered oaths; for any such purpose to
4		issue subpoena or subpoenas to require the attendance of
5		witnesses and the production of books, which shall be
6		effective in any part of this State, and to adopt rules to
7		implement its powers under this paragraph (8).
8		Any Circuit Court may by order duly entered, require
9		the attendance of witnesses and the production of relevant
10		books subpoenaed by the State commission and the court may
11		compel obedience to its order by proceedings for contempt.
12		(9) To investigate the administration of laws in
13		relation to alcoholic liquors in this and other states and
14		any foreign countries, and to recommend from time to time
15		to the Governor and through him or her to the legislature
16		of this State, such amendments to this Act, if any, as it
17		may think desirable and as will serve to further the
18		general broad purposes contained in Section 1-2 hereof.
19		(10) To adopt such rules and regulations consistent
20		with the provisions of this Act which shall be necessary
21		for the control, sale or disposition of alcoholic liquor
22		damaged as a result of an accident, wreck, flood, fire or
23		other similar occurrence.
24		(11) To develop industry educational programs related
25		to responsible serving and selling, particularly in the
26		areas of overserving consumers and illegal underage

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1		purchasing and consumption of alcoholic beverages.
2		(11.1) To license persons providing education and
3		training to alcohol beverage sellers and servers for
4		mandatory and non-mandatory training under the Beverage
5		Alcohol Sellers and Servers Education and Training
6		(BASSET) programs and to develop and administer a public
7		awareness program in Illinois to reduce or eliminate the
8		illegal purchase and consumption of alcoholic beverage
9		products by persons under the age of 21. Application for a
10		license shall be made on forms provided by the State
11		Commission.
12		(12) To develop and maintain a repository of license
13		and regulatory information.
14		(13) On or before January 15, 1994, the Commission
15		shall issue a written report to the Governor and General
16		Assembly that is to be based on a comprehensive study of
17		the impact on and implications for the State of Illinois of
18		Section 1926 of the Federal ADAMHA Reorganization Act of
19		1992 (Public Law 102-321). This study shall address the
20		extent to which Illinois currently complies with the
21		provisions of P.L. 102-321 and the rules promulgated
22		pursuant thereto.
23		As part of its report, the Commission shall provide the
24		following essential information:
25		(i) the number of retail distributors of tobacco
26		products, by type and geographic area, in the State;

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1		(ii) the number of reported citations and
2		successful convictions, categorized by type and
3		location of retail distributor, for violation of the
4		Prevention of Tobacco Use by Minors and Sale and
5		Distribution of Tobacco Products Act and the Smokeless
6		Tobacco Limitation Act;
7		(iii) the extent and nature of organized
8		educational and governmental activities that are
9		intended to promote, encourage or otherwise secure
10		compliance with any Illinois laws that prohibit the
11		sale or distribution of tobacco products to minors; and
12		(iv) the level of access and availability of
13		tobacco products to individuals under the age of 18.
14		To obtain the data necessary to comply with the
15		provisions of P.L. 102-321 and the requirements of this
16		report, the Commission shall conduct random, unannounced
17		inspections of a geographically and scientifically
18		representative sample of the State's retail tobacco
19		distributors.
20		The Commission shall consult with the Department of
21		Public Health, the Department of Human Services, the
22		Illinois State Police and any other executive branch
23		agency, and private organizations that may have
24		information relevant to this report.
25		The Commission may contract with the Food and Drug
26		Administration of the U.S. Department of Health and Human

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1		Services to conduct unannounced investigations of Illinois
2		tobacco vendors to determine compliance with federal laws
3		relating to the illegal sale of cigarettes and smokeless
4		tobacco products to persons under the age of 18.
5		(14) On or before April 30, 2008 and every 2 years
6		thereafter, the Commission shall present a written report
7		to the Governor and the General Assembly that shall be
8		based on a study of the impact of this amendatory Act of
9		the 95th General Assembly on the business of soliciting,
10		selling, and shipping wine from inside and outside of this
11		State directly to residents of this State. As part of its
12		report, the Commission shall provide all of the following
13		information:
14		(A) The amount of State excise and sales tax
15		revenues generated.
16		(B) The amount of licensing fees received.
17		(C) The number of cases of wine shipped from inside
18		and outside of this State directly to residents of this
19		State.
20		(D) The number of alcohol compliance operations
21		conducted.
22		(E) The number of winery shipper's licenses
23		issued.
24		(F) The number of each of the following: reported
25		violations; cease and desist notices issued by the
26		Commission; notices of violations issued by the

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1		Commission and to the Department of Revenue; and
2		notices and complaints of violations to law
3		enforcement officials, including, without limitation,
4		the Illinois Attorney General and the U.S. Department
5		of Treasury's Alcohol and Tobacco Tax and Trade Bureau.
6		(15) As a means to reduce the underage consumption of
7		alcoholic liquors, the Commission shall conduct alcohol
8		compliance operations to investigate whether businesses
9		that are soliciting, selling, and shipping wine from inside
10		or outside of this State directly to residents of this
11		State are licensed by this State or are selling or
12		attempting to sell wine to persons under 21 years of age in
13		violation of this Act.
14		(16) The Commission shall, in addition to notifying any
15		appropriate law enforcement agency, submit notices of
16		complaints or violations of Sections 6-29 and 6-29.1 by
17		persons who do not hold a winery shipper's license under
18		this amendatory Act to the Illinois Attorney General and to
19		the U.S. Department of Treasury's Alcohol and Tobacco Tax
20		and Trade Bureau.
21		(17) (A) A person licensed to make wine under the laws
22		of another state who has a winery shipper's license under
23		this amendatory Act and annually produces less than 25,000
24		gallons of wine or a person who has a first-class or
25		second-class wine manufacturer's license, a first-class or
26		second-class wine-maker's license, or a limited wine

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1		manufacturer's license under this Act and annually
2		produces less than 25,000 gallons of wine may make
3		application to the Commission for a self-distribution
4		exemption to allow the sale of not more than 5,000 gallons
5		of the exemption holder's wine to retail licensees per
6		year.
7		(B) In the application, which shall be sworn under
8		penalty of perjury, such person shall state (1) the
9		date it was established; (2) its volume of production
10		and sales for each year since its establishment; (3)
11		its efforts to establish distributor relationships;
12		(4) that a self-distribution exemption is necessary to
13		facilitate the marketing of its wine; and (5) that it
14		will comply with the liquor and revenue laws of the
15		United States, this State, and any other state where it
16		is licensed.
17		(C) The Commission shall approve the application
18		for a self-distribution exemption if such person: (1)
19		is in compliance with State revenue and liquor laws;
20		(2) is not a member of any affiliated group that
21		produces more than 25,000 gallons of wine per annum or
22		produces any other alcoholic liquor; (3) will not
23		annually produce for sale more than 25,000 gallons of
24		wine; and (4) will not annually sell more than 5,000
25		gallons of its wine to retail licensees.
26		(D) A self-distribution exemption holder shall

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1		annually certify to the Commission its production of
2		wine in the previous 12 months and its anticipated
3		production and sales for the next 12 months. The
4		Commission may fine, suspend, or revoke a
5		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
8		revenue or liquor law of Illinois, exceeded production
9		of 25,000 gallons of wine in any calendar year, or
10		become part of an affiliated group producing more than
11		25,000 gallons of wine or any other alcoholic liquor.
12		(E) Except in hearings for violations of this Act
13		or amendatory Act or a bona fide investigation by duly
14		sworn law enforcement officials, the Commission, or
15		its agents, the Commission shall maintain the
16		production and sales information of a
17		self-distribution exemption holder as confidential and
18		shall not release such information to any person.
19		(F) The Commission shall issue regulations
20		governing self-distribution exemptions consistent with
21		this Section and this Act.
22		(G) Nothing in this subsection (17) shall prohibit
23		a self-distribution exemption holder from entering
24		into or simultaneously having a distribution agreement
25		with a licensed Illinois distributor.
26		(H) It is the intent of this subsection (17) to

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1		promote and continue orderly markets. The General
2		Assembly finds that in order to preserve Illinois'
3		regulatory distribution system it is necessary to
4		create an exception for smaller makers of wine as their
5		wines are frequently adjusted in varietals, mixes,
6		vintages, and taste to find and create market niches
7		sometimes too small for distributor or importing
8		distributor business strategies. Limited
9		self-distribution rights will afford and allow smaller
10		makers of wine access to the marketplace in order to
11		develop a customer base without impairing the
12		integrity of the 3-tier system.
13		(18) (A) A class 1 brewer licensee, who must also be
14		either a licensed brewer or licensed non-resident dealer
15		and annually manufacture less than 930,000 gallons of beer,
16		may make application to the State Commission for a
17		self-distribution exemption to allow the sale of not more
18		than 232,500 gallons of the exemption holder's beer to
19		retail licensees per year.
20		(B) In the application, which shall be sworn under
21		penalty of perjury, the class 1 brewer licensee shall
22		state (1) the date it was established; (2) its volume
23		of beer manufactured and sold for each year since its
24		establishment; (3) its efforts to establish
25		distributor relationships; (4) that a
26		self-distribution exemption is necessary to facilitate

SB3095 Engrossed - 59 - LRB099 20651 RPS 45255 b
1		the marketing of its beer; and (5) that it will comply
2		with the alcoholic beverage and revenue laws of the
3		United States, this State, and any other state where it
4		is licensed.
5		(C) Any application submitted shall be posted on
6		the State Commission's website at least 45 days prior
7		to action by the State Commission. The State Commission
8		shall approve the application for a self-distribution
9		exemption if the class 1 brewer licensee: (1) is in
10		compliance with the State, revenue, and alcoholic
11		beverage laws; (2) is not a member of any affiliated
12		group that manufacturers more than 930,000 gallons of
13		beer per annum or produces any other alcoholic
14		beverages; (3) shall not annually manufacture for sale
15		more than 930,000 gallons of beer; (4) shall not
16		annually sell more than 232,500 gallons of its beer to
17		retail licensees; and (5) has relinquished any brew pub
18		license held by the licensee, including any ownership
19		interest it held in the licensed brew pub.
20		(D) A self-distribution exemption holder shall
21		annually certify to the State Commission its
22		manufacture of beer during the previous 12 months and
23		its anticipated manufacture and sales of beer for the
24		next 12 months. The State Commission may fine, suspend,
25		or revoke a self-distribution exemption after a
26		hearing if it finds that the exemption holder has made

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1		a material misrepresentation in its application,
2		violated a revenue or alcoholic beverage law of
3		Illinois, exceeded the manufacture of 930,000 gallons
4		of beer in any calendar year or became part of an
5		affiliated group manufacturing more than 930,000
6		gallons of beer or any other alcoholic beverage.
7		(E) The State Commission shall issue rules and
8		regulations governing self-distribution exemptions
9		consistent with this Act.
10		(F) Nothing in this paragraph (18) shall prohibit a
11		self-distribution exemption holder from entering into
12		or simultaneously having a distribution agreement with
13		a licensed Illinois importing distributor or a
14		distributor. If a self-distribution exemption holder
15		enters into a distribution agreement and has assigned
16		distribution rights to a an importing distributor or
17		distributor, then the self-distribution exemption
18		holder's distribution rights in the assigned
19		territories shall cease in a reasonable time not to
20		exceed 60 days.
21		(G) It is the intent of this paragraph (18) to
22		promote and continue orderly markets. The General
23		Assembly finds that in order to preserve Illinois'
24		regulatory distribution system, it is necessary to
25		create an exception for smaller manufacturers in order
26		to afford and allow such smaller manufacturers of beer

SB3095 Engrossed - 61 - LRB099 20651 RPS 45255 b
1		access to the marketplace in order to develop a
2		customer base without impairing the integrity of the
3		3-tier system.
4		(b) On or before April 30, 1999, the Commission shall
5		present a written report to the Governor and the General
6		Assembly that shall be based on a study of the impact of this
7		amendatory Act of 1998 on the business of soliciting, selling,
8		and shipping alcoholic liquor from outside of this State
9		directly to residents of this State.
10		As part of its report, the Commission shall provide the
11		following information:
12		(i) the amount of State excise and sales tax revenues
13		generated as a result of this amendatory Act of 1998;
14		(ii) the amount of licensing fees received as a result
15		of this amendatory Act of 1998;
16		(iii) the number of reported violations, the number of
17		cease and desist notices issued by the Commission, the
18		number of notices of violations issued to the Department of
19		Revenue, and the number of notices and complaints of
20		violations to law enforcement officials.
21		(Source: P.A. 98-401, eff. 8-16-13; 98-939, eff. 7-1-15;
22		98-941, eff. 1-1-15; 99-78, eff. 7-20-15; 99-448, eff.
23		8-24-15.)
24		(235 ILCS 5/3-14) (from Ch. 43, par. 109)
25		Sec. 3-14. Issuance of license by Commission. Nothing

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1		contained in this Act shall, however, be construed to permit
2		the State Commission to issue any license, other than
3		manufacturer's, foreign importer's, importing distributor's,
4		non-resident dealer's, and distributor's, broker's and
5		non-beverage user's license for any premises in any prohibited
6		territory, or to issue any license other than manufacturer's,
7		foreign importer's, importing distributor's, non-resident
8		dealer's, distributor's, railroad's, airplane's, boat's, or
9		broker's license, auction liquor license, or non-beverage
10		user's license, unless the person applying for such license
11		shall have obtained a local license for the same premises. For
12		purposes of this Section and only in regards to a hotel, the
13		local license issued for the same premises may include multiple
14		local licenses issued to a hotel operator for various portions
15		of the hotel building, structure, or adjacent property owned
16		and managed by the hotel operator in which alcoholic liquors
17		may be stored, offered for sale, and sold; however, all of
18		those portions of the hotel building, structure, or adjacent
19		property shall be considered the hotel premises for purposes of
20		the issuance of a retailer's license by the State Commission.
21		When such person has obtained a local license and has made
22		application to the State Commission in conformity with this Act
23		and paid the license fee provided, it shall be the duty of the
24		State Commission to issue a retailer's license to him;
25		provided, however, that the State Commission may refuse the
26		issuance or renewal of a retailer's license, upon notice and

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1		after hearing, upon the grounds authorized in Section 6-3 of
2		this Act, and, provided further, that the issuance of such
3		license shall not prejudice the State Commission's action in
4		subsequently suspending or revoking such license if it is
5		determined by the State Commission, upon notice and after
6		hearing, that the licensee has, within the same or the
7		preceding license period, violated any provision of this Act or
8		any rule or regulation issued pursuant thereto and in effect
9		for 30 days prior to such violation. The Commission may also
10		refuse to renew a license if the licensee has failed to pay an
11		offer in compromise, pre-disciplinary settlement, or a fine
12		imposed by order.
13		(Source: P.A. 99-46, eff. 7-15-15.)
14		(235 ILCS 5/4-4) (from Ch. 43, par. 112)
15		Sec. 4-4. Each local liquor control commissioner shall also
16		have the following powers, functions and duties with respect to
17		licenses, other than licenses to manufacturers, importing
18		distributors, distributors, foreign importers, non-resident
19		dealers, non-beverage users, brokers, railroads, airplanes and
20		boats.
21		1. To grant and or suspend for not more than thirty
22		days or revoke for cause all local licenses issued to
23		persons for premises within his jurisdiction;
24		2. To enter or to authorize any law enforcing officer
25		to enter at any time upon any premises licensed hereunder

SB3095 Engrossed - 64 - LRB099 20651 RPS 45255 b
1		to determine whether any of the provisions of this Act or
2		any rules or regulations adopted by him or by the State
3		Commission have been or are being violated, and at such
4		time to examine said premises of said licensee in
5		connection therewith;
6		3. To notify the Secretary of State where a club
7		incorporated under the General Not for Profit Corporation
8		Act of 1986 or a foreign corporation functioning as a club
9		in this State under a certificate of authority issued under
10		that Act has violated this Act by selling or offering for
11		sale at retail alcoholic liquors without a retailer's
12		license;
13		4. To receive complaint from any citizen within his
14		jurisdiction that any of the provisions of this Act, or any
15		rules or regulations adopted pursuant hereto, have been or
16		are being violated and to act upon such complaints in the
17		manner hereinafter provided;
18		5. To receive local license fees and pay the same
19		forthwith to the city, village, town or county treasurer as
20		the case may be.
21		Each local liquor commissioner also has the duty to notify
22		the Secretary of State of any convictions or dispositions of
23		court supervision for a violation of Section 6-20 of this Act
24		or a similar provision of a local ordinance.
25		In counties and municipalities, the local liquor control
26		commissioners shall also have the power to levy fines in

SB3095 Engrossed - 65 - LRB099 20651 RPS 45255 b
1		accordance with Section 7-5 of this Act.
2		(Source: P.A. 95-166, eff. 1-1-08.)
3		(235 ILCS 5/5-1) (from Ch. 43, par. 115)
4		Sec. 5-1. Licenses issued by the Illinois Liquor Control
5		Commission shall be of the following classes:
6		(a) Manufacturer's license - Class 1. Distiller, Class 2.
7		Rectifier, Class 3. Brewer, Class 4. First Class Wine
8		Manufacturer, Class 5. Second Class Wine Manufacturer, Class 6.
9		First Class Winemaker, Class 7. Second Class Winemaker, Class
10		8. Limited Wine Manufacturer, Class 9. Craft Distiller, Class
11		10. Class 1 Brewer, Class 11. Class 2 Brewer,
12		(b) Distributor's license,
13		(c) (Blank), Importing Distributor's license,
14		(d) Retailer's license,
15		(e) Special Event Retailer's license (not-for-profit),
16		(f) Railroad license,
17		(g) Boat license,
18		(h) Non-Beverage User's license,
19		(i) Wine-maker's premises license,
20		(j) Airplane license,
21		(k) Foreign importer's license,
22		(l) Broker's license,
23		(m) Non-resident dealer's license,
24		(n) Brew Pub license,
25		(o) Auction liquor license,

SB3095 Engrossed - 66 - LRB099 20651 RPS 45255 b
1		(p) Caterer retailer license,
2		(q) Special use permit license,
3		(r) Winery shipper's license.
4		No person, firm, partnership, corporation, or other legal
5		business entity that is engaged in the manufacturing of wine
6		may concurrently obtain and hold a wine-maker's license and a
7		wine manufacturer's license.
8		(a) A manufacturer's license shall allow the manufacture,
9		importation in bulk, storage, distribution and sale of
10		alcoholic liquor to persons without the State, as may be
11		permitted by law and to licensees in this State as follows:
12		Class 1. A Distiller may make sales and deliveries of
13		alcoholic liquor to distillers, rectifiers, importing
14		distributors, distributors, and non-beverage users and to no
15		other licensees.
16		Class 2. A Rectifier, who is not a distiller, as defined
17		herein, may make sales and deliveries of alcoholic liquor to
18		rectifiers, importing distributors, distributors, retailers,
19		and non-beverage users and to no other licensees.
20		Class 3. A Brewer may make sales and deliveries of beer to
21		importing distributors and distributors and may make sales as
22		authorized under subsection (e) of Section 6-4 of this Act.
23		Class 4. A first class wine-manufacturer may make sales and
24		deliveries of up to 50,000 gallons of wine to manufacturers,
25		importing distributors and distributors, and to no other
26		licensees.

SB3095 Engrossed - 67 - LRB099 20651 RPS 45255 b
1		Class 5. A second class Wine manufacturer may make sales
2		and deliveries of more than 50,000 gallons of wine to
3		manufacturers, importing distributors and distributors and to
4		no other licensees.
5		Class 6. A first-class wine-maker's license shall allow the
6		manufacture of up to 50,000 gallons of wine per year, and the
7		storage and sale of such wine to distributors in the State and
8		to persons without the State, as may be permitted by law. A
9		person who, prior to June 1, 2008 (the effective date of Public
10		Act 95-634) this amendatory Act of the 95th General Assembly,
11		is a holder of a first-class wine-maker's license and annually
12		produces more than 25,000 gallons of its own wine and who
13		distributes its wine to licensed retailers shall cease this
14		practice on or before July 1, 2008 in compliance with Public
15		Act 95-634 this amendatory Act of the 95th General Assembly.
16		Class 7. A second-class wine-maker's license shall allow
17		the manufacture of between 50,000 and 150,000 gallons of wine
18		per year, and the storage and sale of such wine to distributors
19		in this State and to persons without the State, as may be
20		permitted by law. A person who, prior to June 1, 2008 (the
21		effective date of Public Act 95-634) this amendatory Act of the
22		95th General Assembly, is a holder of a second-class
23		wine-maker's license and annually produces more than 25,000
24		gallons of its own wine and who distributes its wine to
25		licensed retailers shall cease this practice on or before July
26		1, 2008 in compliance with Public Act 95-634 this amendatory

SB3095 Engrossed - 68 - LRB099 20651 RPS 45255 b
1		Act of the 95th General Assembly.
2		Class 8. A limited wine-manufacturer may make sales and
3		deliveries not to exceed 40,000 gallons of wine per year to
4		distributors, and to non-licensees in accordance with the
5		provisions of this Act.
6		Class 9. A craft distiller license shall allow the
7		manufacture of up to 30,000 gallons of spirits by distillation
8		for one year after March 1, 2013 (the effective date of Public
9		Act 97-1166) this amendatory Act of the 97th General Assembly
10		and up to 35,000 gallons of spirits by distillation per year
11		thereafter and the storage of such spirits. If a craft
12		distiller licensee is not affiliated with any other
13		manufacturer, then the craft distiller licensee may sell such
14		spirits to distributors in this State and up to 2,500 gallons
15		of such spirits to non-licensees to the extent permitted by any
16		exemption approved by the Commission pursuant to Section 6-4 of
17		this Act.
18		Any craft distiller licensed under this Act who on July 28,
19		2010 (the effective date of Public Act 96-1367) this amendatory
20		Act of the 96th General Assembly was licensed as a distiller
21		and manufactured no more spirits than permitted by this Section
22		shall not be required to pay the initial licensing fee.
23		Class 10. A class 1 brewer license, which may only be
24		issued to a licensed brewer or licensed non-resident dealer,
25		shall allow the manufacture of up to 930,000 gallons of beer
26		per year provided that the class 1 brewer licensee does not

SB3095 Engrossed - 69 - LRB099 20651 RPS 45255 b
1		manufacture more than a combined 930,000 gallons of beer per
2		year and is not a member of or affiliated with, directly or
3		indirectly, a manufacturer that produces more than 930,000
4		gallons of beer per year or any other alcoholic liquor. A class
5		1 brewer licensee may make sales and deliveries to importing
6		distributors and distributors and to retail licensees in
7		accordance with the conditions set forth in paragraph (18) of
8		subsection (a) of Section 3-12 of this Act.
9		Class 11. A class 2 brewer license, which may only be
10		issued to a licensed brewer or licensed non-resident dealer,
11		shall allow the manufacture of up to 3,720,000 gallons of beer
12		per year provided that the class 2 brewer licensee does not
13		manufacture more than a combined 3,720,000 gallons of beer per
14		year and is not a member of or affiliated with, directly or
15		indirectly, a manufacturer that produces more than 3,720,000
16		gallons of beer per year or any other alcoholic liquor. A class
17		2 brewer licensee may make sales and deliveries to importing
18		distributors and distributors, but shall not make sales or
19		deliveries to any other licensee. If the State Commission
20		provides prior approval, a class 2 brewer licensee may annually
21		transfer up to 3,720,000 gallons of beer manufactured by that
22		class 2 brewer licensee to the premises of a licensed class 2
23		brewer wholly owned and operated by the same licensee.
24		(a-1) A manufacturer which is licensed in this State to
25		make sales or deliveries of alcoholic liquor to licensed
26		distributors or importing distributors and which enlists

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1		agents, representatives, or individuals acting on its behalf
2		who contact licensed retailers on a regular and continual basis
3		in this State must register those agents, representatives, or
4		persons acting on its behalf with the State Commission.
5		Registration of agents, representatives, or persons acting
6		on behalf of a manufacturer is fulfilled by submitting a form
7		to the Commission. The form shall be developed by the
8		Commission and shall include the name and address of the
9		applicant, the name and address of the manufacturer he or she
10		represents, the territory or areas assigned to sell to or
11		discuss pricing terms of alcoholic liquor, and any other
12		questions deemed appropriate and necessary. All statements in
13		the forms required to be made by law or by rule shall be deemed
14		material, and any person who knowingly misstates any material
15		fact under oath in an application is guilty of a Class B
16		misdemeanor. Fraud, misrepresentation, false statements,
17		misleading statements, evasions, or suppression of material
18		facts in the securing of a registration are grounds for
19		suspension or revocation of the registration. The State
20		Commission shall post a list of registered agents on the
21		Commission's website.
22		(b) A distributor's license shall allow the wholesale
23		purchase and storage of alcoholic liquors and sale of alcoholic
24		liquors to licensees in this State and to persons without the
25		State, as may be permitted by law. A distributor's license
26		shall further allow the importation of alcoholic liquor by the

SB3095 Engrossed - 71 - LRB099 20651 RPS 45255 b
1		licensee into this State from any point in the United States
2		outside this State and the purchase of alcoholic liquor in
3		barrels, casks, or other bulk containers and the bottling of
4		such alcoholic liquors before resale thereof, but all bottles
5		or containers so filled shall be sealed, labeled, stamped, and
6		otherwise made to comply with all provisions, rules, and
7		regulations governing manufacturers in the preparation and
8		bottling of alcoholic liquors. The distributor's license shall
9		also permit such licensee to purchase alcoholic liquor from
10		Illinois licensed non-resident dealers, foreign importers, and
11		other sources as permitted by this Act. A distributor's license
12		may not be granted to any holder of a manufacturer's license,
13		as listed in subsection (a), or holder of a non-resident dealer
14		license.
15		(c) (Blank). An importing distributor's license may be
16		issued to and held by those only who are duly licensed
17		distributors, upon the filing of an application by a duly
18		licensed distributor, with the Commission and the Commission
19		shall, without the payment of any fee, immediately issue such
20		importing distributor's license to the applicant, which shall
21		allow the importation of alcoholic liquor by the licensee into
22		this State from any point in the United States outside this
23		State, and the purchase of alcoholic liquor in barrels, casks
24		or other bulk containers and the bottling of such alcoholic
25		liquors before resale thereof, but all bottles or containers so
26		filled shall be sealed, labeled, stamped and otherwise made to

SB3095 Engrossed - 72 - LRB099 20651 RPS 45255 b
1		comply with all provisions, rules and regulations governing
2		manufacturers in the preparation and bottling of alcoholic
3		liquors. The importing distributor's license shall permit such
4		licensee to purchase alcoholic liquor from Illinois licensed
5		non-resident dealers and foreign importers only.
6		(d) A retailer's license shall allow the licensee to sell
7		and offer for sale at retail, only in the premises specified in
8		the license, alcoholic liquor for use or consumption, but not
9		for resale in any form. Nothing in Public Act 95-634 this
10		amendatory Act of the 95th General Assembly shall deny, limit,
11		remove, or restrict the ability of a holder of a retailer's
12		license to transfer, deliver, or ship alcoholic liquor to the
13		purchaser for use or consumption subject to any applicable
14		local law or ordinance. Any retail license issued to a
15		manufacturer shall only permit the manufacturer to sell beer at
16		retail on the premises actually occupied by the manufacturer.
17		For the purpose of further describing the type of business
18		conducted at a retail licensed premises, a retailer's licensee
19		may be designated by the State Commission as (i) an on premise
20		consumption retailer, (ii) an off premise sale retailer, or
21		(iii) a combined on premise consumption and off premise sale
22		retailer.
23		Notwithstanding any other provision of this subsection
24		(d), a retail licensee may sell alcoholic liquors to a special
25		event retailer licensee for resale to the extent permitted
26		under subsection (e).

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1		(e) A special event retailer's license (not-for-profit)
2		shall permit the licensee to purchase alcoholic liquors from an
3		Illinois licensed distributor (unless the licensee purchases
4		less than $500 of alcoholic liquors for the special event, in
5		which case the licensee may purchase the alcoholic liquors from
6		a licensed retailer) and shall allow the licensee to sell and
7		offer for sale, at retail, alcoholic liquors for use or
8		consumption, but not for resale in any form and only at the
9		location and on the specific dates designated for the special
10		event in the license. An applicant for a special event retailer
11		license must (i) furnish with the application: (A) a resale
12		number issued under Section 2c of the Retailers' Occupation Tax
13		Act or evidence that the applicant is registered under Section
14		2a of the Retailers' Occupation Tax Act, (B) a current, valid
15		exemption identification number issued under Section 1g of the
16		Retailers' Occupation Tax Act, and a certification to the
17		Commission that the purchase of alcoholic liquors will be a
18		tax-exempt purchase, or (C) a statement that the applicant is
19		not registered under Section 2a of the Retailers' Occupation
20		Tax Act, does not hold a resale number under Section 2c of the
21		Retailers' Occupation Tax Act, and does not hold an exemption
22		number under Section 1g of the Retailers' Occupation Tax Act,
23		in which event the Commission shall set forth on the special
24		event retailer's license a statement to that effect; (ii)
25		submit with the application proof satisfactory to the State
26		Commission that the applicant will provide dram shop liability

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1		insurance in the maximum limits; and (iii) show proof
2		satisfactory to the State Commission that the applicant has
3		obtained local authority approval.
4		(f) A railroad license shall permit the licensee to import
5		alcoholic liquors into this State from any point in the United
6		States outside this State and to store such alcoholic liquors
7		in this State; to make wholesale purchases of alcoholic liquors
8		directly from manufacturers, foreign importers, and
9		distributors and importing distributors from within or outside
10		this State; and to store such alcoholic liquors in this State;
11		provided that the above powers may be exercised only in
12		connection with the importation, purchase or storage of
13		alcoholic liquors to be sold or dispensed on a club, buffet,
14		lounge or dining car operated on an electric, gas or steam
15		railway in this State; and provided further, that railroad
16		licensees exercising the above powers shall be subject to all
17		provisions of Article VIII of this Act as applied to importing
18		distributors. A railroad license shall also permit the licensee
19		to sell or dispense alcoholic liquors on any club, buffet,
20		lounge or dining car operated on an electric, gas or steam
21		railway regularly operated by a common carrier in this State,
22		but shall not permit the sale for resale of any alcoholic
23		liquors to any licensee within this State. A license shall be
24		obtained for each car in which such sales are made.
25		(g) A boat license shall allow the sale of alcoholic liquor
26		in individual drinks, on any passenger boat regularly operated

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1		as a common carrier on navigable waters in this State or on any
2		riverboat operated under the Riverboat Gambling Act, which boat
3		or riverboat maintains a public dining room or restaurant
4		thereon.
5		(h) A non-beverage user's license shall allow the licensee
6		to purchase alcoholic liquor from a licensed manufacturer or
7		importing distributor, without the imposition of any tax upon
8		the business of such licensed manufacturer or importing
9		distributor as to such alcoholic liquor to be used by such
10		licensee solely for the non-beverage purposes set forth in
11		subsection (a) of Section 8-1 of this Act, and such licenses
12		shall be divided and classified and shall permit the purchase,
13		possession and use of limited and stated quantities of
14		alcoholic liquor as follows:
15		Class 1, not to exceed ......................... 500 gallons
16		Class 2, not to exceed ....................... 1,000 gallons
17		Class 3, not to exceed ....................... 5,000 gallons
18		Class 4, not to exceed ...................... 10,000 gallons
19		Class 5, not to exceed ....................... 50,000 gallons
20		(i) A wine-maker's premises license shall allow a licensee
21		that concurrently holds a first-class wine-maker's license to
22		sell and offer for sale at retail in the premises specified in
23		such license not more than 50,000 gallons of the first-class
24		wine-maker's wine that is made at the first-class wine-maker's
25		licensed premises per year for use or consumption, but not for
26		resale in any form. A wine-maker's premises license shall allow

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1		a licensee who concurrently holds a second-class wine-maker's
2		license to sell and offer for sale at retail in the premises
3		specified in such license up to 100,000 gallons of the
4		second-class wine-maker's wine that is made at the second-class
5		wine-maker's licensed premises per year for use or consumption
6		but not for resale in any form. A wine-maker's premises license
7		shall allow a licensee that concurrently holds a first-class
8		wine-maker's license or a second-class wine-maker's license to
9		sell and offer for sale at retail at the premises specified in
10		the wine-maker's premises license, for use or consumption but
11		not for resale in any form, any beer, wine, and spirits
12		purchased from a licensed distributor. Upon approval from the
13		State Commission, a wine-maker's premises license shall allow
14		the licensee to sell and offer for sale at (i) the wine-maker's
15		licensed premises and (ii) at up to 2 additional locations for
16		use and consumption and not for resale. Each location shall
17		require additional licensing per location as specified in
18		Section 5-3 of this Act. A wine-maker's premises licensee shall
19		secure liquor liability insurance coverage in an amount at
20		least equal to the maximum liability amounts set forth in
21		subsection (a) of Section 6-21 of this Act.
22		(j) An airplane license shall permit the licensee to import
23		alcoholic liquors into this State from any point in the United
24		States outside this State and to store such alcoholic liquors
25		in this State; to make wholesale purchases of alcoholic liquors
26		directly from manufacturers, foreign importers, and

SB3095 Engrossed - 77 - LRB099 20651 RPS 45255 b
1		distributors and importing distributors from within or outside
2		this State; and to store such alcoholic liquors in this State;
3		provided that the above powers may be exercised only in
4		connection with the importation, purchase or storage of
5		alcoholic liquors to be sold or dispensed on an airplane; and
6		provided further, that airplane licensees exercising the above
7		powers shall be subject to all provisions of Article VIII of
8		this Act as applied to importing distributors. An airplane
9		licensee shall also permit the sale or dispensing of alcoholic
10		liquors on any passenger airplane regularly operated by a
11		common carrier in this State, but shall not permit the sale for
12		resale of any alcoholic liquors to any licensee within this
13		State. A single airplane license shall be required of an
14		airline company if liquor service is provided on board aircraft
15		in this State. The annual fee for such license shall be as
16		determined in Section 5-3.
17		(k) A foreign importer's license shall permit such licensee
18		to purchase alcoholic liquor from Illinois licensed
19		non-resident dealers only, and to import alcoholic liquor other
20		than in bulk from any point outside the United States and to
21		sell such alcoholic liquor to Illinois licensed importing
22		distributors and to no one else in Illinois; provided that (i)
23		the foreign importer registers with the State Commission every
24		brand of alcoholic liquor that it proposes to sell to Illinois
25		licensees during the license period, (ii) the foreign importer
26		complies with all of the provisions of Section 6-9 of this Act

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1		with respect to registration of such Illinois licensees as may
2		be granted the right to sell such brands at wholesale, and
3		(iii) the foreign importer complies with the provisions of
4		Sections 6-5 and 6-6 of this Act to the same extent that these
5		provisions apply to manufacturers.
6		(l) (i) A broker's license shall be required of all persons
7		who solicit orders for, offer to sell or offer to supply
8		alcoholic liquor to retailers in the State of Illinois, or who
9		offer to retailers to ship or cause to be shipped or to make
10		contact with distillers, rectifiers, brewers or manufacturers
11		or any other party within or without the State of Illinois in
12		order that alcoholic liquors be shipped to a distributor,
13		importing distributor or foreign importer, whether such
14		solicitation or offer is consummated within or without the
15		State of Illinois.
16		No holder of a retailer's license issued by the Illinois
17		Liquor Control Commission shall purchase or receive any
18		alcoholic liquor, the order for which was solicited or offered
19		for sale to such retailer by a broker unless the broker is the
20		holder of a valid broker's license.
21		The broker shall, upon the acceptance by a retailer of the
22		broker's solicitation of an order or offer to sell or supply or
23		deliver or have delivered alcoholic liquors, promptly forward
24		to the Illinois Liquor Control Commission a notification of
25		said transaction in such form as the Commission may by
26		regulations prescribe.

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1		(ii) A broker's license shall be required of a person
2		within this State, other than a retail licensee, who, for a fee
3		or commission, promotes, solicits, or accepts orders for
4		alcoholic liquor, for use or consumption and not for resale, to
5		be shipped from this State and delivered to residents outside
6		of this State by an express company, common carrier, or
7		contract carrier. This Section does not apply to any person who
8		promotes, solicits, or accepts orders for wine as specifically
9		authorized in Section 6-29 of this Act.
10		A broker's license under this subsection (l) shall not
11		entitle the holder to buy or sell any alcoholic liquors for his
12		own account or to take or deliver title to such alcoholic
13		liquors.
14		This subsection (l) shall not apply to distributors,
15		employees of distributors, or employees of a manufacturer who
16		has registered the trademark, brand or name of the alcoholic
17		liquor pursuant to Section 6-9 of this Act, and who regularly
18		sells such alcoholic liquor in the State of Illinois only to
19		its registrants thereunder.
20		Any agent, representative, or person subject to
21		registration pursuant to subsection (a-1) of this Section shall
22		not be eligible to receive a broker's license.
23		(m) A non-resident dealer's license shall permit such
24		licensee to ship into and warehouse alcoholic liquor into this
25		State from any point outside of this State, and to sell such
26		alcoholic liquor to Illinois licensed foreign importers and

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1		importing distributors and to no one else in this State;
2		provided that (i) said non-resident dealer shall register with
3		the Illinois Liquor Control Commission each and every brand of
4		alcoholic liquor which it proposes to sell to Illinois
5		licensees during the license period, (ii) it shall comply with
6		all of the provisions of Section 6-9 hereof with respect to
7		registration of such Illinois licensees as may be granted the
8		right to sell such brands at wholesale, and (iii) the
9		non-resident dealer shall comply with the provisions of
10		Sections 6-5 and 6-6 of this Act to the same extent that these
11		provisions apply to manufacturers.
12		(n) A brew pub license shall allow the licensee to only (i)
13		manufacture up to 155,000 gallons of beer per year only on the
14		premises specified in the license, (ii) make sales of the beer
15		manufactured on the premises or, with the approval of the
16		Commission, beer manufactured on another brew pub licensed
17		premises that is wholly owned and operated by the same licensee
18		to importing distributors, distributors, and to non-licensees
19		for use and consumption, (iii) store the beer upon the
20		premises, (iv) sell and offer for sale at retail from the
21		licensed premises for off-premises consumption no more than
22		155,000 gallons per year so long as such sales are only made
23		in-person, (v) sell and offer for sale at retail for use and
24		consumption on the premises specified in the license any form
25		of alcoholic liquor purchased from a licensed distributor or
26		importing distributor, and (vi) with the prior approval of the

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1		Commission, annually transfer no more than 155,000 gallons of
2		beer manufactured on the premises to a licensed brew pub wholly
3		owned and operated by the same licensee.
4		A brew pub licensee shall not under any circumstance sell
5		or offer for sale beer manufactured by the brew pub licensee to
6		retail licensees.
7		A person who holds a class 2 brewer license may
8		simultaneously hold a brew pub license if the class 2 brewer
9		(i) does not, under any circumstance, sell or offer for sale
10		beer manufactured by the class 2 brewer to retail licensees;
11		(ii) does not hold more than 3 brew pub licenses in this State;
12		(iii) does not manufacture more than a combined 3,720,000
13		gallons of beer per year, including the beer manufactured at
14		the brew pub; and (iv) is not a member of or affiliated with,
15		directly or indirectly, a manufacturer that produces more than
16		3,720,000 gallons of beer per year or any other alcoholic
17		liquor.
18		Notwithstanding any other provision of this Act, a licensed
19		brewer, class 2 brewer, or non-resident dealer who before July
20		1, 2015 manufactured less than than 3,720,000 gallons of beer
21		per year and held a brew pub license on or before July 1, 2015
22		may (i) continue to qualify for and hold that brew pub license
23		for the licensed premises and (ii) manufacture more than
24		3,720,000 gallons of beer per year and continue to qualify for
25		and hold that brew pub license if that brewer, class 2 brewer,
26		or non-resident dealer does not simultaneously hold a class 1

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1		brewer license and is not a member of or affiliated with,
2		directly or indirectly, a manufacturer that produces more than
3		3,720,000 gallons of beer per year or that produces any other
4		alcoholic liquor.
5		(o) A caterer retailer license shall allow the holder to
6		serve alcoholic liquors as an incidental part of a food service
7		that serves prepared meals which excludes the serving of snacks
8		as the primary meal, either on or off-site whether licensed or
9		unlicensed.
10		(p) An auction liquor license shall allow the licensee to
11		sell and offer for sale at auction wine and spirits for use or
12		consumption, or for resale by an Illinois liquor licensee in
13		accordance with provisions of this Act. An auction liquor
14		license will be issued to a person and it will permit the
15		auction liquor licensee to hold the auction anywhere in the
16		State. An auction liquor license must be obtained for each
17		auction at least 14 days in advance of the auction date.
18		(q) A special use permit license shall allow an Illinois
19		licensed retailer to transfer a portion of its alcoholic liquor
20		inventory from its retail licensed premises to the premises
21		specified in the license hereby created, and to sell or offer
22		for sale at retail, only in the premises specified in the
23		license hereby created, the transferred alcoholic liquor for
24		use or consumption, but not for resale in any form. A special
25		use permit license may be granted for the following time
26		periods: one day or less; 2 or more days to a maximum of 15 days

SB3095 Engrossed - 83 - LRB099 20651 RPS 45255 b
1		per location in any 12 month period. An applicant for the
2		special use permit license must also submit with the
3		application proof satisfactory to the State Commission that the
4		applicant will provide dram shop liability insurance to the
5		maximum limits and have local authority approval.
6		(r) A winery shipper's license shall allow a person with a
7		first-class or second-class wine manufacturer's license, a
8		first-class or second-class wine-maker's license, or a limited
9		wine manufacturer's license or who is licensed to make wine
10		under the laws of another state to ship wine made by that
11		licensee directly to a resident of this State who is 21 years
12		of age or older for that resident's personal use and not for
13		resale. Prior to receiving a winery shipper's license, an
14		applicant for the license must provide the Commission with a
15		true copy of its current license in any state in which it is
16		licensed as a manufacturer of wine. An applicant for a winery
17		shipper's license must also complete an application form that
18		provides any other information the Commission deems necessary.
19		The application form shall include an acknowledgement
20		consenting to the jurisdiction of the Commission, the Illinois
21		Department of Revenue, and the courts of this State concerning
22		the enforcement of this Act and any related laws, rules, and
23		regulations, including authorizing the Department of Revenue
24		and the Commission to conduct audits for the purpose of
25		ensuring compliance with Public Act 95-634 this amendatory Act.
26		A winery shipper licensee must pay to the Department of

SB3095 Engrossed - 84 - LRB099 20651 RPS 45255 b
1		Revenue the State liquor gallonage tax under Section 8-1 for
2		all wine that is sold by the licensee and shipped to a person
3		in this State. For the purposes of Section 8-1, a winery
4		shipper licensee shall be taxed in the same manner as a
5		manufacturer of wine. A licensee who is not otherwise required
6		to register under the Retailers' Occupation Tax Act must
7		register under the Use Tax Act to collect and remit use tax to
8		the Department of Revenue for all gallons of wine that are sold
9		by the licensee and shipped to persons in this State. If a
10		licensee fails to remit the tax imposed under this Act in
11		accordance with the provisions of Article VIII of this Act, the
12		winery shipper's license shall be revoked in accordance with
13		the provisions of Article VII of this Act. If a licensee fails
14		to properly register and remit tax under the Use Tax Act or the
15		Retailers' Occupation Tax Act for all wine that is sold by the
16		winery shipper and shipped to persons in this State, the winery
17		shipper's license shall be revoked in accordance with the
18		provisions of Article VII of this Act.
19		A winery shipper licensee must collect, maintain, and
20		submit to the Commission on a semi-annual basis the total
21		number of cases per resident of wine shipped to residents of
22		this State. A winery shipper licensed under this subsection (r)
23		must comply with the requirements of Section 6-29 of this
24		amendatory Act.
25		Pursuant to paragraph (5.1) or (5.3) of subsection (a) of
26		Section 3-12, the State Commission may receive, respond to, and

SB3095 Engrossed - 85 - LRB099 20651 RPS 45255 b
1		investigate any complaint and impose any of the remedies
2		specified in paragraph (1) of subsection (a) of Section 3-12.
3		(Source: P.A. 98-394, eff. 8-16-13; 98-401, eff. 8-16-13;
4		98-756, eff. 7-16-14; 99-448, eff. 8-24-15; revised 10-27-15.)
5		(235 ILCS 5/5-3) (from Ch. 43, par. 118)
6		Sec. 5-3. License fees. Except as otherwise provided
7		herein, at the time application is made to the State Commission
8		for a license of any class, the applicant shall pay to the
9		State Commission the fee hereinafter provided for the kind of
10		license applied for.
11		The fee for licenses issued by the State Commission shall
12		be as follows:
13		For a manufacturer's license:
14 Class 1. Distiller ............................. $3,600 15 Class 2. Rectifier ............................. 3,600 16 Class 3. Brewer ................................ 900 17 Class 4. First-class Wine Manufacturer ......... 600 18 Class 5. Second-class 19 Wine Manufacturer .......................... 1,200 20 Class 6. First-class wine-maker ................ 600 21 Class 7. Second-class wine-maker ............... 1200 22 Class 8. Limited Wine Manufacturer.............. 120 23 Class 9. Craft Distiller........................ 1,800 24 Class 10. Class 1 Brewer........................ 25 25 Class 11. Class 2 Brewer........................ 25

SB3095 Engrossed - 86 - LRB099 20651 RPS 45255 b

1 For a Brew Pub License ......................... 1,050 2 For a caterer retailer's license................ 200 3 For a foreign importer's license ............... 25 4 For an importing distributor's license .......... 25 5 For a distributor's license .................... 270 6 For a non-resident dealer's license 7 (500,000 gallons or over) .................. 270 8 For a non-resident dealer's license 9 (under 500,000 gallons) .................... 90 10 For a wine-maker's premises license ............ 100 11 For a winery shipper's license 12 (under 250,000 gallons)..................... 150 13 For a winery shipper's license 14 (250,000 or over, but under 500,000 gallons). 500 15 For a winery shipper's license 16 (500,000 gallons or over)................... 1,000 17 For a wine-maker's premises license, 18 second location ............................ 350 19 For a wine-maker's premises license, 20 third location ............................. 350 21 For a retailer's license ....................... 500 22 For a special event retailer's license, 23 (not-for-profit) ........................... 25 24 For a special use permit license, 25 one day only ............................... 50 26 2 days or more ............................. 100

SB3095 Engrossed - 87 - LRB099 20651 RPS 45255 b
1 For a railroad license ......................... 60 2 For a boat license ............................. 180 3 For an airplane license, times the 4 licensee's maximum number of aircraft 5 in flight, serving liquor over the 6 State at any given time, which either 7 originate, terminate, or make 8 an intermediate stop in the State .......... 60 9 For a non-beverage user's license: 10 Class 1 .................................... 24 11 Class 2 .................................... 60 12 Class 3 .................................... 120 13 Class 4 .................................... 240 14 Class 5 .................................... 600 15 For a broker's license ......................... 600 16 For an auction liquor license .................. 50 17 For a homebrewer special event permit........... 25
18		Fees collected under this Section shall be paid into the
19		Dram Shop Fund. On and after July 1, 2003, of the funds
20		received for a retailer's license, in addition to the first
21		$175, an additional $75 shall be paid into the Dram Shop Fund,
22		and $250 shall be paid into the General Revenue Fund. Beginning
23		June 30, 1990 and on June 30 of each subsequent year through
24		June 29, 2003, any balance over $5,000,000 remaining in the
25		Dram Shop Fund shall be credited to State liquor licensees and
26		applied against their fees for State liquor licenses for the

SB3095 Engrossed - 88 - LRB099 20651 RPS 45255 b
1		following year. The amount credited to each licensee shall be a
2		proportion of the balance in the Dram Fund that is the same as
3		the proportion of the license fee paid by the licensee under
4		this Section for the period in which the balance was
5		accumulated to the aggregate fees paid by all licensees during
6		that period.
7		No fee shall be paid for licenses issued by the State
8		Commission to the following non-beverage users:
9		(a) Hospitals, sanitariums, or clinics when their use
10		of alcoholic liquor is exclusively medicinal, mechanical
11		or scientific.
12		(b) Universities, colleges of learning or schools when
13		their use of alcoholic liquor is exclusively medicinal,
14		mechanical or scientific.
15		(c) Laboratories when their use is exclusively for the
16		purpose of scientific research.
17		(Source: P.A. 98-55, eff. 7-5-13; 99-448, eff. 8-24-15.)
18		(235 ILCS 5/6-2) (from Ch. 43, par. 120)
19		Sec. 6-2. Issuance of licenses to certain persons
20		prohibited.
21		(a) Except as otherwise provided in subsection (b) of this
22		Section and in paragraph (1) of subsection (a) of Section 3-12,
23		no license of any kind issued by the State Commission or any
24		local commission shall be issued to:
25		(1) A person who is not a resident of any city, village

SB3095 Engrossed - 89 - LRB099 20651 RPS 45255 b
1		or county in which the premises covered by the license are
2		located; except in case of railroad or boat licenses.
3		(2) A person who is not of good character and
4		reputation in the community in which he resides.
5		(3) A person who is not a citizen of the United States.
6		(4) A person who has been convicted of a felony under
7		any Federal or State law, unless the Commission determines
8		that such person has been sufficiently rehabilitated to
9		warrant the public trust after considering matters set
10		forth in such person's application and the Commission's
11		investigation. The burden of proof of sufficient
12		rehabilitation shall be on the applicant.
13		(5) A person who has been convicted of keeping a place
14		of prostitution or keeping a place of juvenile
15		prostitution, promoting prostitution that involves keeping
16		a place of prostitution, or promoting juvenile
17		prostitution that involves keeping a place of juvenile
18		prostitution.
19		(6) A person who has been convicted of pandering or
20		other crime or misdemeanor opposed to decency and morality.
21		(7) A person whose license issued under this Act has
22		been revoked for cause.
23		(8) A person who at the time of application for renewal
24		of any license issued hereunder would not be eligible for
25		such license upon a first application.
26		(9) A copartnership, if any general partnership

SB3095 Engrossed - 90 - LRB099 20651 RPS 45255 b
1		thereof, or any limited partnership thereof, owning more
2		than 5% of the aggregate limited partner interest in such
3		copartnership would not be eligible to receive a license
4		hereunder for any reason other than residence within the
5		political subdivision, unless residency is required by
6		local ordinance.
7		(10) A corporation or limited liability company, if any
8		member, officer, manager or director thereof, or any
9		stockholder or stockholders owning in the aggregate more
10		than 5% of the stock of such corporation, would not be
11		eligible to receive a license hereunder for any reason
12		other than citizenship and residence within the political
13		subdivision.
14		(10a) A corporation or limited liability company
15		unless it is incorporated or organized in Illinois, or
16		unless it is a foreign corporation or foreign limited
17		liability company which is qualified under the Business
18		Corporation Act of 1983 or the Limited Liability Company
19		Act to transact business in Illinois. The Commission shall
20		permit and accept from an applicant for a license under
21		this Act proof prepared from the Secretary of State's
22		website that the corporation or limited liability company
23		is in good standing and is qualified under the Business
24		Corporation Act of 1983 or the Limited Liability Company
25		Act to transact business in Illinois.
26		(11) A person whose place of business is conducted by a

SB3095 Engrossed - 91 - LRB099 20651 RPS 45255 b
1		manager or agent unless the manager or agent possesses the
2		same qualifications required by the licensee.
3		(12) A person who has been convicted of a violation of
4		any Federal or State law concerning the manufacture,
5		possession or sale of alcoholic liquor, subsequent to the
6		passage of this Act or has forfeited his bond to appear in
7		court to answer charges for any such violation.
8		(13) A person who does not beneficially own the
9		premises for which a license is sought, or does not have a
10		lease thereon for the full period for which the license is
11		to be issued.
12		(14) Any law enforcing public official, including
13		members of local liquor control commissions, any mayor,
14		alderman, or member of the city council or commission, any
15		president of the village board of trustees, any member of a
16		village board of trustees, or any president or member of a
17		county board; and no such official shall have a direct
18		interest in the manufacture, sale, or distribution of
19		alcoholic liquor, except that a license may be granted to
20		such official in relation to premises that are not located
21		within the territory subject to the jurisdiction of that
22		official if the issuance of such license is approved by the
23		State Liquor Control Commission and except that a license
24		may be granted, in a city or village with a population of
25		55,000 or less, to any alderman, member of a city council,
26		or member of a village board of trustees in relation to

SB3095 Engrossed - 92 - LRB099 20651 RPS 45255 b
1		premises that are located within the territory subject to
2		the jurisdiction of that official if (i) the sale of
3		alcoholic liquor pursuant to the license is incidental to
4		the selling of food, (ii) the issuance of the license is
5		approved by the State Commission, (iii) the issuance of the
6		license is in accordance with all applicable local
7		ordinances in effect where the premises are located, and
8		(iv) the official granted a license does not vote on
9		alcoholic liquor issues pending before the board or council
10		to which the license holder is elected. Notwithstanding any
11		provision of this paragraph (14) to the contrary, an
12		alderman or member of a city council or commission, a
13		member of a village board of trustees other than the
14		president of the village board of trustees, or a member of
15		a county board other than the president of a county board
16		may have a direct interest in the manufacture, sale, or
17		distribution of alcoholic liquor as long as he or she is
18		not a law enforcing public official, a mayor, a village
19		board president, or president of a county board. To prevent
20		any conflict of interest, the elected official with the
21		direct interest in the manufacture, sale, or distribution
22		of alcoholic liquor shall not participate in any meetings,
23		hearings, or decisions on matters impacting the
24		manufacture, sale, or distribution of alcoholic liquor.
25		Furthermore, the mayor of a city with a population of
26		55,000 or less or the president of a village with a

SB3095 Engrossed - 93 - LRB099 20651 RPS 45255 b
1		population of 55,000 or less may have an interest in the
2		manufacture, sale, or distribution of alcoholic liquor as
3		long as the council or board over which he or she presides
4		has made a local liquor control commissioner appointment
5		that complies with the requirements of Section 4-2 of this
6		Act.
7		(15) A person who is not a beneficial owner of the
8		business to be operated by the licensee.
9		(16) A person who has been convicted of a gambling
10		offense as proscribed by any of subsections (a) (3) through
11		(a) (11) of Section 28-1 of, or as proscribed by Section
12		28-1.1 or 28-3 of, the Criminal Code of 1961 or the
13		Criminal Code of 2012, or as proscribed by a statute
14		replaced by any of the aforesaid statutory provisions.
15		(17) A person or entity to whom a federal wagering
16		stamp has been issued by the federal government, unless the
17		person or entity is eligible to be issued a license under
18		the Raffles and Poker Runs Act or the Illinois Pull Tabs
19		and Jar Games Act.
20		(18) A person who intends to sell alcoholic liquors for
21		use or consumption on his or her licensed retail premises
22		who does not have liquor liability insurance coverage for
23		that premises in an amount that is at least equal to the
24		maximum liability amounts set out in subsection (a) of
25		Section 6-21.
26		(19) A person who is licensed by any licensing

SB3095 Engrossed - 94 - LRB099 20651 RPS 45255 b
1		authority as a manufacturer of beer, or any partnership,
2		corporation, limited liability company, or trust or any
3		subsidiary, affiliate, or agent thereof, or any other form
4		of business enterprise licensed as a manufacturer of beer,
5		having any legal, equitable, or beneficial interest,
6		directly or indirectly, in a person licensed in this State
7		as a distributor or importing distributor. For purposes of
8		this paragraph (19), a person who is licensed by any
9		licensing authority as a "manufacturer of beer" shall also
10		mean a brewer and a non-resident dealer who is also a
11		manufacturer of beer, including a partnership,
12		corporation, limited liability company, or trust or any
13		subsidiary, affiliate, or agent thereof, or any other form
14		of business enterprise licensed as a manufacturer of beer.
15		(20) A person who is licensed in this State as a
16		distributor or importing distributor, or any partnership,
17		corporation, limited liability company, or trust or any
18		subsidiary, affiliate, or agent thereof, or any other form
19		of business enterprise licensed in this State as a
20		distributor or importing distributor having any legal,
21		equitable, or beneficial interest, directly or indirectly,
22		in a person licensed as a manufacturer of beer by any
23		licensing authority, or any partnership, corporation,
24		limited liability company, or trust or any subsidiary,
25		affiliate, or agent thereof, or any other form of business
26		enterprise, except for a person who owns, on or after the

SB3095 Engrossed - 95 - LRB099 20651 RPS 45255 b
1		effective date of this amendatory Act of the 98th General
2		Assembly, no more than 5% of the outstanding shares of a
3		manufacturer of beer whose shares are publicly traded on an
4		exchange within the meaning of the Securities Exchange Act
5		of 1934. For the purposes of this paragraph (20), a person
6		who is licensed by any licensing authority as a
7		"manufacturer of beer" shall also mean a brewer and a
8		non-resident dealer who is also a manufacturer of beer,
9		including a partnership, corporation, limited liability
10		company, or trust or any subsidiary, affiliate, or agent
11		thereof, or any other form of business enterprise licensed
12		as a manufacturer of beer.
13		(b) A criminal conviction of a corporation is not grounds
14		for the denial, suspension, or revocation of a license applied
15		for or held by the corporation if the criminal conviction was
16		not the result of a violation of any federal or State law
17		concerning the manufacture, possession or sale of alcoholic
18		liquor, the offense that led to the conviction did not result
19		in any financial gain to the corporation and the corporation
20		has terminated its relationship with each director, officer,
21		employee, or controlling shareholder whose actions directly
22		contributed to the conviction of the corporation. The
23		Commission shall determine if all provisions of this subsection
24		(b) have been met before any action on the corporation's
25		license is initiated.
26		(Source: P.A. 97-1059, eff. 8-24-12; 97-1150, eff. 1-25-13;

SB3095 Engrossed - 96 - LRB099 20651 RPS 45255 b
1		98-10, eff. 5-6-13; 98-21, eff. 6-13-13; 98-644, eff. 6-10-14;
2		98-756, eff. 7-16-14.)
3		(235 ILCS 5/6-4) (from Ch. 43, par. 121)
4		Sec. 6-4. (a) No person licensed by any licensing authority
5		as a distiller, or a wine manufacturer, or any subsidiary or
6		affiliate thereof, or any officer, associate, member, partner,
7		representative, employee, agent or shareholder owning more
8		than 5% of the outstanding shares of such person shall be
9		issued a an importing distributor's or distributor's license,
10		nor shall any person licensed by any licensing authority as a
11		an importing distributor, distributor or retailer, or any
12		subsidiary or affiliate thereof, or any officer or associate,
13		member, partner, representative, employee, agent or
14		shareholder owning more than 5% of the outstanding shares of
15		such person be issued a distiller's license or a wine
16		manufacturer's license; and no person or persons licensed as a
17		distiller by any licensing authority shall have any interest,
18		directly or indirectly, with such distributor or importing
19		distributor.
20		However, an importing distributor or distributor, which on
21		January 1, 1985 is owned by a brewer, or any subsidiary or
22		affiliate thereof or any officer, associate, member, partner,
23		representative, employee, agent or shareholder owning more
24		than 5% of the outstanding shares of the importing distributor
25		or distributor referred to in this paragraph, may own or

SB3095 Engrossed - 97 - LRB099 20651 RPS 45255 b
1		acquire an ownership interest of more than 5% of the
2		outstanding shares of a wine manufacturer and be issued a wine
3		manufacturer's license by any licensing authority.
4		(b) The foregoing provisions shall not apply to any person
5		licensed by any licensing authority as a distiller or wine
6		manufacturer, or to any subsidiary or affiliate of any
7		distiller or wine manufacturer who shall have been heretofore
8		licensed by the State Commission as either an importing
9		distributor or distributor during the annual licensing period
10		expiring June 30, 1947, and shall actually have made sales
11		regularly to retailers.
12		(c) Provided, however, that in such instances where a
13		distributor's or importing distributor's license has been
14		issued to any distiller or wine manufacturer or to any
15		subsidiary or affiliate of any distiller or wine manufacturer
16		who has, during the licensing period ending June 30, 1947, sold
17		or distributed as such licensed distributor or importing
18		distributor alcoholic liquors and wines to retailers, such
19		distiller or wine manufacturer or any subsidiary or affiliate
20		of any distiller or wine manufacturer holding such
21		distributor's or importing distributor's license may continue
22		to sell or distribute to retailers such alcoholic liquors and
23		wines which are manufactured, distilled, processed or marketed
24		by distillers and wine manufacturers whose products it sold or
25		distributed to retailers during the whole or any part of its
26		licensing periods; and such additional brands and additional

SB3095 Engrossed - 98 - LRB099 20651 RPS 45255 b
1		products may be added to the line of such distributor or
2		importing distributor, provided, that such brands and such
3		products were not sold or distributed by any distributor or
4		importing distributor licensed by the State Commission during
5		the licensing period ending June 30, 1947, but can not sell or
6		distribute to retailers any other alcoholic liquors or wines.
7		(d) It shall be unlawful for any distiller licensed
8		anywhere to have any stock ownership or interest in any
9		distributor's or importing distributor's license wherein any
10		other person has an interest therein who is not a distiller and
11		does not own more than 5% of any stock in any distillery.
12		Nothing herein contained shall apply to such distillers or
13		their subsidiaries or affiliates, who had a distributor's or
14		importing distributor's license during the licensing period
15		ending June 30, 1947, which license was owned in whole by such
16		distiller, or subsidiaries or affiliates of such distiller.
17		(e) Any person licensed as a brewer, class 1 brewer, or
18		class 2 brewer shall be permitted to sell on the licensed
19		premises to non-licensees for on or off-premises consumption
20		for the premises in which he or she actually conducts such
21		business beer manufactured by the brewer, class 1 brewer, or
22		class 2 brewer. Such sales shall be limited to on-premises,
23		in-person sales only, for lawful consumption on or off
24		premises. Such authorization shall be considered a privilege
25		granted by the brewer license and, other than a manufacturer of
26		beer as stated above, no manufacturer or distributor or

SB3095 Engrossed - 99 - LRB099 20651 RPS 45255 b
1		importing distributor, excluding airplane licensees exercising
2		powers provided in paragraph (i) of Section 5-1 of this Act, or
3		any subsidiary or affiliate thereof, or any officer, associate,
4		member, partner, representative, employee or agent, or
5		shareholder shall be issued a retailer's license, nor shall any
6		person having a retailer's license, excluding airplane
7		licensees exercising powers provided in paragraph (i) of
8		Section 5-1 of this Act, or any subsidiary or affiliate
9		thereof, or any officer, associate, member, partner,
10		representative or agent, or shareholder be issued a
11		manufacturer's license or importing distributor's license.
12		A person who holds a class 1 or class 2 brewer license and
13		is authorized by this Section to sell beer to non-licensees
14		shall not sell beer to non-licensees from more than 3 total
15		brewer or commonly owned brew pub licensed locations in this
16		State. The class 1 or class 2 brewer shall designate to the
17		State Commission the brewer or brew pub locations from which it
18		will sell beer to non-licensees.
19		A person licensed as a craft distiller not affiliated with
20		any other person manufacturing spirits may be authorized by the
21		Commission to sell up to 2,500 gallons of spirits produced by
22		the person to non-licensees for on or off-premises consumption
23		for the premises in which he or she actually conducts business
24		permitting only the retail sale of spirits manufactured at such
25		premises. Such sales shall be limited to on-premises, in-person
26		sales only, for lawful consumption on or off premises, and such

SB3095 Engrossed - 100 - LRB099 20651 RPS 45255 b
1		authorization shall be considered a privilege granted by the
2		craft distiller license. A craft distiller licensed for retail
3		sale shall secure liquor liability insurance coverage in an
4		amount at least equal to the maximum liability amounts set
5		forth in subsection (a) of Section 6-21 of this Act.
6		(f) (Blank).
7		(g) Notwithstanding any of the foregoing prohibitions, a
8		limited wine manufacturer may sell at retail at its
9		manufacturing site for on or off premises consumption and may
10		sell to distributors. A limited wine manufacturer licensee
11		shall secure liquor liability insurance coverage in an amount
12		at least equal to the maximum liability amounts set forth in
13		subsection (a) of Section 6-21 of this Act.
14		(h) The changes made to this Section by Public Act 99-47
15		this amendatory Act of the 99th General Assembly shall not
16		diminish or impair the rights of any person, whether a
17		distiller, wine manufacturer, agent, or affiliate thereof, who
18		requested in writing and submitted documentation to the State
19		Commission on or before February 18, 2015 to be approved for a
20		retail license pursuant to what has heretofore been subsection
21		(f); provided that, on or before that date, the State
22		Commission considered the intent of that person to apply for
23		the retail license under that subsection and, by recorded vote,
24		the State Commission approved a resolution indicating that such
25		a license application could be lawfully approved upon that
26		person duly filing a formal application for a retail license

SB3095 Engrossed - 101 - LRB099 20651 RPS 45255 b
1		and if that person, within 90 days of the State Commission
2		appearance and recorded vote, first filed an application with
3		the appropriate local commission, which application was
4		subsequently approved by the appropriate local commission
5		prior to consideration by the State Commission of that person's
6		application for a retail license. It is further provided that
7		the State Commission may approve the person's application for a
8		retail license or renewals of such license if such person
9		continues to diligently adhere to all representations made in
10		writing to the State Commission on or before February 18, 2015,
11		or thereafter, or in the affidavit filed by that person with
12		the State Commission to support the issuance of a retail
13		license and to abide by all applicable laws and duly adopted
14		rules.
15		(Source: P.A. 99-47, eff. 7-15-15; 99-448, eff. 8-24-15;
16		revised 10-30-15.)
17		(235 ILCS 5/6-4.5)
18		Sec. 6-4.5. Prohibited ownership interests in a
19		distributor, importing distributor, manufacturer of beer, or
20		non-resident dealer.
21		(a) The General Assembly finds, consistent with Section
22		6-1.5, that the 3-tier regulatory system is designed to prevent
23		a manufacturer of beer as described in paragraph (19) of
24		subsection (a) of Section 6-2 from exercising vertical
25		integration between a manufacturer of beer and a distributor or

SB3095 Engrossed - 102 - LRB099 20651 RPS 45255 b
1		importing distributor through any ownership interest, or
2		through control of the distributor or importing distributor.
3		The General Assembly further finds, consistent with Section
4		6-1.5, that the 3-tier regulatory system is designed to prevent
5		a distributor or importing distributor as described in
6		paragraph (20) of subsection (a) of Section 6-2 from having any
7		ownership interest in a manufacturer of beer as described in
8		paragraph (20) of subsection (a) of Section 6-2 except for the
9		ownership of no more than 5% of the outstanding shares of a
10		manufacturer of beer whose shares are publicly traded on an
11		exchange within the meaning of the Securities Exchange Act of
12		1934. The General Assembly further finds that it is necessary
13		to have the State Commission undertake an expedited
14		investigation, in accordance with procedural due process, to
15		determine whether any existing manufacturer of beer described
16		in paragraph (19) of subsection (a) of Section 6-2 or any
17		existing distributor or importing distributor described in
18		paragraph (20) of subsection (a) of Section 6-2 owns a
19		prohibited ownership interest, and an orderly process by which
20		an existing manufacturer of beer, distributor, or importing
21		distributor may divest itself of or sever the prohibited
22		ownership interest by no later than January 1, 2015.
23		(b) Notwithstanding any provision of this Act to the
24		contrary, no person licensed as a manufacturer of beer as
25		described in paragraph (19) of subsection (a) of Section 6-2
26		shall have any prohibited ownership interest, directly or

SB3095 Engrossed - 103 - LRB099 20651 RPS 45255 b
1		indirectly, in a person licensed as a distributor or importing
2		distributor. Any person who holds a prohibited ownership
3		interest in a person licensed as a distributor or importing
4		distributor prior to this amendatory Act of the 98th General
5		Assembly shall, in accordance with paragraph (19) of subsection
6		(a) of Section 6-2, be ineligible to receive or hold any
7		license issued by the State Commission, unless that person
8		complies with the provisions of this Section.
9		(c) Notwithstanding any provision of this Act to the
10		contrary, no person licensed in this State as a distributor or
11		importing distributor as described in paragraph (20) of
12		subsection (a) of Section 6-2 shall have any prohibited
13		ownership interest, directly or indirectly, in a person
14		licensed as a manufacturer of beer as described in paragraph
15		(20) of subsection (a) of Section 6-2. Any person who holds an
16		interest in a person licensed as a distributor or importing
17		distributor in this State prior to this amendatory Act of the
18		98th General Assembly shall, in accordance with paragraph (20)
19		of subsection (a) of Section 6-2, be ineligible to receive or
20		hold a license by the State Commission, unless the person
21		complies with the provisions of this Section. This subsection
22		(c) shall not apply to a person who owns, on or after the
23		effective date of this amendatory Act of the 98th General
24		Assembly, no more than 5% of the outstanding shares of a
25		manufacturer of beer whose shares are publicly traded on an
26		exchange within the meaning of the Securities Exchange Act of

SB3095 Engrossed - 104 - LRB099 20651 RPS 45255 b
1		1934.
2		(d) Within 30 days after the effective date of this
3		amendatory Act of the 98th General Assembly, the State
4		Commission shall notify in writing all persons licensed by the
5		State Commission as a manufacturer of beer, as described in
6		paragraph (19) of subsection (a) of Section 6-2 of the
7		prohibited ownership interest provision set forth in
8		subsection (b) of this Section and paragraph (19) of subsection
9		(a) of Section 6-2. Also within 30 days after the effective
10		date of this amendatory Act of the 98th General Assembly, the
11		State Commission shall notify in writing all persons licensed
12		by the State Commission as a distributor or importing
13		distributor of the prohibited ownership interest provision set
14		forth in subsection (c) of this Section and paragraph (20) of
15		subsection (a) of Section 6-2. The notice provided by the State
16		Commission shall also state for a manufacturer of beer, as
17		described in paragraph (19) of subsection (a) of Section 6-2,
18		that it is required to disclose in writing any ownership
19		interest it directly or indirectly possesses in a distributor
20		or importing distributor, as described in paragraph (20) of
21		subsection (a) of Section 6-2, the type and amount of ownership
22		interest possessed by it, the length of time the manufacturer
23		of beer has held the ownership interest in the distributor or
24		importing distributor, and any other information specified by
25		the State Commission in its written notice. The notice provided
26		by the State Commission shall also state for a distributor or

SB3095 Engrossed - 105 - LRB099 20651 RPS 45255 b
1		importing distributor, as described in paragraph (20) of
2		subsection (a) of Section 6-2, that it is required to disclose
3		in writing any ownership interest it directly or indirectly
4		possesses in a manufacturer of beer, as described in paragraph
5		(19) of subsection (a) of Section 6-2, the type and amount of
6		ownership interest possessed by it, the length of time the
7		manufacturer of beer has held the ownership interest in the
8		distributor or importing distributor, and any other
9		information specified by the State Commission in its written
10		notice.
11		(e) Within 60 days after the effective date of this
12		amendatory Act of the 98th General Assembly, each manufacturer
13		of beer, distributor, or importing distributor subject to
14		notification under subsection (d) of this Section shall
15		disclose in writing and under oath the relevant ownership
16		interest and other required information specified in the
17		notification provided by the State Commission pursuant to that
18		subsection. The written disclosure shall, as a mandatory
19		obligation, be tendered to the State Commission by either
20		personal service or via certified or registered mail at the
21		State Commission's Springfield or Chicago office on or before
22		the 60th day during regular business hours. Failure to tender
23		the required written disclosure shall result in the immediate
24		entry of an order by the State Commission suspending the
25		licensee's license within 5 days after the 60th day, and the
26		initiation of proceedings by the State Commission to enter an

SB3095 Engrossed - 106 - LRB099 20651 RPS 45255 b
1		order to permanently revoke the licensee's license no later
2		than 45 days after providing the licensee with notice and an
3		opportunity for a hearing. Whenever the State Commission has
4		reason to believe that a person has failed to comply with the
5		Commission notice under this Section, it shall notify the
6		Department of Revenue and the Attorney General, and shall file
7		a complaint with the State's Attorney of the county where the
8		alcoholic liquor was delivered or with appropriate law
9		enforcement officials. Failure to make the written disclosure
10		required under this subsection shall constitute a business
11		offense for which the person shall be fined not more than
12		$5,000 for a first offense, not more than $10,000 for a second
13		offense, and not more than $15,000 for a third or subsequent
14		offense.
15		(f) Within 180 days after the effective date of this
16		amendatory Act of the 98th General Assembly, the State
17		Commission shall review each of the disclosures tendered to the
18		State Commission by licensees pursuant to subsection (e) and
19		enter an order determining whether or not each licensee is in
20		compliance with subsection (b) or (c) of this Section,
21		whichever is applicable, after providing each licensee with
22		notice and an opportunity for a hearing. As part of making its
23		determination, the State Commission shall also consider any
24		information otherwise admissible under Section 10-40 of the
25		Illinois Administrative Procedure Act.
26		(g) If the State Commission determines, based on a

SB3095 Engrossed - 107 - LRB099 20651 RPS 45255 b
1		preponderance of record evidence, that a manufacturer of beer,
2		distributor, or importing distributor has no prohibited
3		ownership interest in a licensee in violation of subsection (b)
4		or (c) of this Section, then the State Commission shall enter
5		an order finding that the manufacturer of beer, distributor, or
6		importing distributor is in compliance with this Section,
7		record the matter as closed, and serve a copy of the order of
8		compliance on the licensee and each person with an ownership
9		interest in the licensee.
10		If the State Commission determines, based on a
11		preponderance of record evidence, that a manufacturer of beer,
12		as described in paragraph (19) of subsection (a) of Section
13		6-2, has a prohibited ownership interest as set forth in
14		subsection (b) of this Section, then the State Commission shall
15		enter an order finding that the manufacturer of beer is not in
16		compliance with this Section and that the manufacturer of beer
17		shall divest itself of that interest on or before January 1,
18		2015, subject to the State Commission's approval of the
19		successive owner pursuant to the State Commission's authority
20		provided in this Act. In addition, the State Commission shall
21		find that the relevant distributor or importing distributor is
22		not in compliance with this Section and that the distributor or
23		importing distributor is required to sever the prohibited
24		ownership interest possessed by the relevant manufacturer of
25		beer on or before January 1, 2015, subject to the State
26		Commission's approval of the successive owner pursuant to the

SB3095 Engrossed - 108 - LRB099 20651 RPS 45255 b
1		State Commission's authority provided in this Act.
2		If the State Commission determines, based on a
3		preponderance of record evidence, that a distributor or
4		importing distributor, as described in paragraph (20) of
5		subsection (a) of Section 6-2, has a prohibited ownership
6		interest as set forth in subsection (c) of this Section, then
7		the State Commission shall enter an order finding that the
8		relevant distributor or importing distributor is not in
9		compliance with this Section and that the relevant distributor
10		or importing distributor shall divest itself of that interest
11		on or before January 1, 2015, subject to the State Commission's
12		approval of the successive owner pursuant to the State
13		Commission's authority provided in this Act. In addition, the
14		State Commission shall find that the manufacturer of beer is
15		not in compliance with this Section and that the manufacturer
16		of beer shall sever the prohibited ownership interest possessed
17		by the distributor or importing distributor on or before
18		January 1, 2015, subject to the State Commission's approval of
19		the successive owner pursuant to the State Commission's
20		authority provided in this Act.
21		The State Commission's order shall further find that the
22		continued ownership of the prohibited ownership interest
23		beyond January 1, 2015 by the manufacturer of beer,
24		distributor, or importing distributor is against the public
25		interest and a violation of this Section and Section 6-1.5 of
26		the Act.

SB3095 Engrossed - 109 - LRB099 20651 RPS 45255 b
1		The State Commission's order shall further find for a
2		manufacturer of beer, as described in paragraph (19) of
3		subsection (a) of Section 6-2, found in non-compliance with
4		subsection (b) of this Section that its license is revoked on
5		January 16, 2015 as to the transport, transfer, or sale of any
6		alcoholic liquor to the relevant distributor or importing
7		distributor that the manufacturer of beer has a prohibited
8		ownership interest in if that interest is not properly divested
9		on January 1, 2015, subject to the State Commission's approval
10		of the successive owner pursuant to the State Commission's
11		authority provided in this Act. In addition, the State
12		Commission shall find that the license of a distributor or
13		importing distributor that is subject to the prohibited
14		ownership interest of the manufacturer of beer is revoked on
15		January 16, 2015 as to the transport, transfer, or sale of
16		alcoholic liquor from the relevant manufacturer of beer to any
17		retailer if that ownership interest is not properly severed on
18		January 1, 2015, subject to the State Commission's approval of
19		the successive owner pursuant to the State Commission's
20		authority provided in this Act.
21		The State Commission's order shall further find for a
22		distributor or importing distributor, as described in
23		paragraph (20) of subsection (a) of Section 6-2, found in
24		non-compliance with subsection (c) of this Section, that its
25		license is revoked on January 16, 2015 as to the transport,
26		transfer, or sale of any alcoholic liquor from the relevant

SB3095 Engrossed - 110 - LRB099 20651 RPS 45255 b
1		manufacturer of beer to any retailer if that prohibited
2		ownership interest in the manufacturer of beer is not properly
3		divested on January 1, 2015, subject to the State Commission's
4		approval of the successive owner pursuant to the State
5		Commission's authority provided in this Act. In addition, the
6		State Commission shall find that the license of the
7		manufacturer of beer that is subject to the prohibited
8		ownership interest of a distributor or importing distributor is
9		revoked on January 16, 2015 as to the transport, transfer, or
10		sale of alcoholic liquor to the distributor or importing
11		distributor if that ownership interest is not properly severed
12		on January 1, 2015, subject to the State Commission's approval
13		of the successive owner pursuant to the State Commission's
14		authority provided in this Act.
15		The State Commission shall serve a copy of the order of
16		non-compliance on the licensee and each person with an
17		ownership interest in the licensee.
18		(h) If a person with a prohibited ownership interest in a
19		licensee under subsection (b) or (c) of this Section succeeds
20		in divesting itself of or severing that interest and obtains
21		the State Commission's approval of the successive owner
22		pursuant to its authority provided in this Act on or before
23		January 1, 2015, then the State Commission shall enter an order
24		finding that the licensee is in compliance, record the matter
25		as closed, and serve a copy of the order of compliance on the
26		licensee and each person with an ownership interest in the

SB3095 Engrossed - 111 - LRB099 20651 RPS 45255 b
1		licensee.
2		If a person with a prohibited ownership interest in
3		violation of subsection (b) or (c) of this Section fails to
4		divest itself of or sever that interest and obtain the State
5		Commission's approval of the successive owner pursuant to the
6		State Commission's authority provided in this Act on or before
7		January 1, 2015, then the State Commission shall, after notice
8		and an opportunity for a hearing, revoke each licensee's
9		license as specified in subsection (g) of this Section on
10		January 16, 2015. The State Commission, when entering the
11		order, shall give notice to the person by certified mail to
12		cease and desist all shipments of alcoholic liquor into or
13		within this State and to withdraw from this State within 5
14		working days after receipt of the notice all shipments of
15		alcoholic liquor in transit. Whenever the State Commission has
16		reason to believe that a person has failed to comply with the
17		State Commission's notice under this Section, it shall notify
18		the Department of Revenue and the Attorney General, and shall
19		file a complaint with the State's Attorney of the county where
20		the alcoholic liquor was delivered, or with appropriate law
21		enforcement officials. Failure to comply with the notice issued
22		by the State Commission under this Section is against the
23		public interest and constitutes a business offense for which
24		the person shall be fined not more than $5,000 for a first
25		offense, not more than $10,000 for a second offense, and not
26		more than $15,000 for a third or subsequent offense. Each

SB3095 Engrossed - 112 - LRB099 20651 RPS 45255 b
1		shipment or transfer of alcoholic liquor in violation of the
2		cease and desist notice shall constitute a separate offense.
3		(i) The power and authority granted to the State Commission
4		under this Section is in addition to any existing power or
5		authority the State Commission has under this Act and its
6		exercise shall be accorded precedence on the State Commission's
7		meeting agenda so as to fully accommodate the schedule for any
8		proceeding under the provisions of this Section. Nothing in
9		this Act shall be construed as limiting or otherwise impairing
10		the ability of the State Commission to conduct future
11		investigations and proceedings sua sponte or pursuant to a
12		complaint to ensure compliance with this Section or paragraph
13		(19) or (20) of subsection (a) of Section 6-2 of this Act. Any
14		future investigations and proceedings shall be conducted by the
15		State Commission on an expedited basis and pursuant to an
16		initiating order entered by the State Commission. The State
17		Commission shall enter its initiating order within 30 days
18		after the receipt of a complaint. The initiating order shall
19		set forth a schedule by which the required notices,
20		disclosures, determinations, or orders specified in
21		subsections (d), (e), (f), (g), and (h) shall be made or
22		entered, and the period of time by which a licensee shall
23		divest itself of or sever a prohibited ownership interest,
24		which shall be no later than 540 days after the entry of the
25		initiating order.
26		(j) Any association or non-profit corporation representing

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1		beer distributors in this State shall have standing to
2		intervene and otherwise participate as a party in any
3		proceeding undertaken by the State Commission under this
4		Section to review and determine compliance or non-compliance
5		with this Section.
6		(k) For purposes of this Section, the term "ownership
7		interest" means a legal, equitable, or beneficial interest
8		recognized under Illinois law. The term "prohibited ownership
9		interest" means an ownership interest in a distributor,
10		importing distributor, or manufacturer of beer as specified in
11		this Section.
12		(Source: P.A. 98-21, eff. 6-13-13.)
13		(235 ILCS 5/6-5) (from Ch. 43, par. 122)
14		Sec. 6-5. Except as otherwise provided in this Section, it
15		is unlawful for any person having a retailer's license or any
16		officer, associate, member, representative or agent of such
17		licensee to accept, receive or borrow money, or anything else
18		of value, or accept or receive credit (other than merchandising
19		credit in the ordinary course of business for a period not to
20		exceed 30 days) directly or indirectly from any manufacturer,
21		importing distributor or distributor of alcoholic liquor, or
22		from any person connected with or in any way representing, or
23		from any member of the family of, such manufacturer, importing
24		distributor, distributor or wholesaler, or from any
25		stockholders in any corporation engaged in manufacturing,

SB3095 Engrossed - 114 - LRB099 20651 RPS 45255 b
1		distributing or wholesaling of such liquor, or from any
2		officer, manager, agent or representative of said
3		manufacturer. Except as provided below, it is unlawful for any
4		manufacturer or distributor or importing distributor to give or
5		lend money or anything of value, or otherwise loan or extend
6		credit (except such merchandising credit) directly or
7		indirectly to any retail licensee or to the manager,
8		representative, agent, officer or director of such licensee. A
9		manufacturer or , distributor or importing distributor may
10		furnish free advertising, posters, signs, brochures,
11		hand-outs, or other promotional devices or materials to any
12		unit of government owning or operating any auditorium,
13		exhibition hall, recreation facility or other similar facility
14		holding a retailer's license, provided that the primary purpose
15		of such promotional devices or materials is to promote public
16		events being held at such facility. A unit of government owning
17		or operating such a facility holding a retailer's license may
18		accept such promotional devices or materials designed
19		primarily to promote public events held at the facility. No
20		retail licensee delinquent beyond the 30 day period specified
21		in this Section shall solicit, accept or receive credit,
22		purchase or acquire alcoholic liquors, directly or indirectly
23		from any other licensee, and no manufacturer or , distributor or
24		importing distributor shall knowingly grant or extend credit,
25		sell, furnish or supply alcoholic liquors to any such
26		delinquent retail licensee; provided that the purchase price of

SB3095 Engrossed - 115 - LRB099 20651 RPS 45255 b
1		all beer sold to a retail licensee shall be paid by the retail
2		licensee in cash on or before delivery of the beer, and unless
3		the purchase price payable by a retail licensee for beer sold
4		to him in returnable bottles shall expressly include a charge
5		for the bottles and cases, the retail licensee shall, on or
6		before delivery of such beer, pay the seller in cash a deposit
7		in an amount not less than the deposit required to be paid by
8		the distributor to the brewer; but where the brewer sells
9		direct to the retailer, the deposit shall be an amount no less
10		than that required by the brewer from his own distributors; and
11		provided further, that in no instance shall this deposit be
12		less than 50 cents for each case of beer in pint or smaller
13		bottles and 60 cents for each case of beer in quart or
14		half-gallon bottles; and provided further, that the purchase
15		price of all beer sold to a an importing distributor or
16		distributor shall be paid by such importing distributor or
17		distributor in cash on or before the 15th day (Sundays and
18		holidays excepted) after delivery of such beer to such
19		purchaser; and unless the purchase price payable by such
20		importing distributor or distributor for beer sold in
21		returnable bottles and cases shall expressly include a charge
22		for the bottles and cases, such importing distributor or
23		distributor shall, on or before the 15th day (Sundays and
24		holidays excepted) after delivery of such beer to such
25		purchaser, pay the seller in cash a required amount as a
26		deposit to assure the return of such bottles and cases. Nothing

SB3095 Engrossed - 116 - LRB099 20651 RPS 45255 b
1		herein contained shall prohibit any licensee from crediting or
2		refunding to a purchaser the actual amount of money paid for
3		bottles, cases, kegs or barrels returned by the purchaser to
4		the seller or paid by the purchaser as a deposit on bottles,
5		cases, kegs or barrels, when such containers or packages are
6		returned to the seller. Nothing herein contained shall prohibit
7		any manufacturer, importing distributor or distributor from
8		extending usual and customary credit for alcoholic liquor sold
9		to customers or purchasers who live in or maintain places of
10		business outside of this State when such alcoholic liquor is
11		actually transported and delivered to such points outside of
12		this State.
13		A manufacturer or , distributor, or importing distributor
14		may furnish free social media advertising to a retail licensee
15		if the social media advertisement does not contain the retail
16		price of any alcoholic liquor and the social media
17		advertisement complies with any applicable rules or
18		regulations issued by the Alcohol and Tobacco Tax and Trade
19		Bureau of the United States Department of the Treasury. A
20		manufacturer or , distributor, or importing distributor may
21		list the names of one or more unaffiliated retailers in the
22		advertisement of alcoholic liquor through social media.
23		Nothing in this Section shall prohibit a retailer from
24		communicating with a manufacturer or , distributor, or
25		importing distributor on social media or sharing media on the
26		social media of a manufacturer or , distributor, or importing

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1		distributor. A retailer may request free social media
2		advertising from a manufacturer or , distributor, or importing
3		distributor. Nothing in this Section shall prohibit a
4		manufacturer or , distributor, or importing distributor from
5		sharing, reposting, or otherwise forwarding a social media post
6		by a retail licensee, so long as the sharing, reposting, or
7		forwarding of the social media post does not contain the retail
8		price of any alcoholic liquor. No manufacturer or , distributor,
9		or importing distributor shall pay or reimburse a retailer,
10		directly or indirectly, for any social media advertising
11		services, except as specifically permitted in this Act. No
12		retailer shall accept any payment or reimbursement, directly or
13		indirectly, for any social media advertising services offered
14		by a manufacturer or , distributor, or importing distributor,
15		except as specifically permitted in this Act. For the purposes
16		of this Section, "social media" means a service, platform, or
17		site where users communicate with one another and share media,
18		such as pictures, videos, music, and blogs, with other users
19		free of charge.
20		No right of action shall exist for the collection of any
21		claim based upon credit extended to a distributor, importing
22		distributor or retail licensee contrary to the provisions of
23		this Section.
24		Every manufacturer, importing distributor and distributor
25		shall submit or cause to be submitted, to the State Commission,
26		in triplicate, not later than Thursday of each calendar week, a

SB3095 Engrossed - 118 - LRB099 20651 RPS 45255 b
1		verified written list of the names and respective addresses of
2		each retail licensee purchasing spirits or wine from such
3		manufacturer, importing distributor or distributor who, on the
4		first business day of that calendar week, was delinquent beyond
5		the above mentioned permissible merchandising credit period of
6		30 days; or, if such is the fact, a verified written statement
7		that no retail licensee purchasing spirits or wine was then
8		delinquent beyond such permissible merchandising credit period
9		of 30 days.
10		Every manufacturer, importing distributor and distributor
11		shall submit or cause to be submitted, to the State Commission,
12		in triplicate, a verified written list of the names and
13		respective addresses of each previously reported delinquent
14		retail licensee who has cured such delinquency by payment,
15		which list shall be submitted not later than the close of the
16		second full business day following the day such delinquency was
17		so cured.
18		Such written verified reports required to be submitted by
19		this Section shall be posted by the State Commission in each of
20		its offices in places available for public inspection not later
21		than the day following receipt thereof by the Commission. The
22		reports so posted shall constitute notice to every
23		manufacturer, importing distributor and distributor of the
24		information contained therein. Actual notice to manufacturers,
25		importing distributors and distributors of the information
26		contained in any such posted reports, however received, shall

SB3095 Engrossed - 119 - LRB099 20651 RPS 45255 b
1		also constitute notice of such information.
2		The 30 day merchandising credit period allowed by this
3		Section shall commence with the day immediately following the
4		date of invoice and shall include all successive days including
5		Sundays and holidays to and including the 30th successive day.
6		In addition to other methods allowed by law, payment by
7		check during the period for which merchandising credit may be
8		extended under the provisions of this Section shall be
9		considered payment. All checks received in payment for
10		alcoholic liquor shall be promptly deposited for collection. A
11		post dated check or a check dishonored on presentation for
12		payment shall not be deemed payment.
13		A retail licensee shall not be deemed to be delinquent in
14		payment for any alleged sale to him of alcoholic liquor when
15		there exists a bona fide dispute between such retailer and a
16		manufacturer, importing distributor or distributor with
17		respect to the amount of indebtedness existing because of such
18		alleged sale.
19		A delinquent retail licensee who engages in the retail
20		liquor business at 2 or more locations shall be deemed to be
21		delinquent with respect to each such location.
22		The license of any person who violates any provision of
23		this Section shall be subject to suspension or revocation in
24		the manner provided by this Act.
25		If any part or provision of this Article or the application
26		thereof to any person or circumstances shall be adjudged

SB3095 Engrossed - 120 - LRB099 20651 RPS 45255 b
1		invalid by a court of competent jurisdiction, such judgment
2		shall be confined by its operation to the controversy in which
3		it was mentioned and shall not affect or invalidate the
4		remainder of this Article or the application thereof to any
5		other person or circumstance and to this and the provisions of
6		this Article are declared severable.
7		(Source: P.A. 99-448, eff. 8-24-15.)
8		(235 ILCS 5/6-6) (from Ch. 43, par. 123)
9		Sec. 6-6. Except as otherwise provided in this Act no
10		manufacturer or distributor or importing distributor shall,
11		directly or indirectly, sell, supply, furnish, give or pay for,
12		or loan or lease, any furnishing, fixture or equipment on the
13		premises of a place of business of another licensee authorized
14		under this Act to sell alcoholic liquor at retail, either for
15		consumption on or off the premises, nor shall he or she,
16		directly or indirectly, pay for any such license, or advance,
17		furnish, lend or give money for payment of such license, or
18		purchase or become the owner of any note, mortgage, or other
19		evidence of indebtedness of such licensee or any form of
20		security therefor, nor shall such manufacturer, or
21		distributor, or importing distributor, directly or indirectly,
22		be interested in the ownership, conduct or operation of the
23		business of any licensee authorized to sell alcoholic liquor at
24		retail, nor shall any manufacturer, or distributor, or
25		importing distributor be interested directly or indirectly or

SB3095 Engrossed - 121 - LRB099 20651 RPS 45255 b
1		as owner or part owner of said premises or as lessee or lessor
2		thereof, in any premises upon which alcoholic liquor is sold at
3		retail.
4		No manufacturer or distributor or importing distributor
5		shall, directly or indirectly or through a subsidiary or
6		affiliate, or by any officer, director or firm of such
7		manufacturer or , distributor or importing distributor,
8		furnish, give, lend or rent, install, repair or maintain, to or
9		for any retail licensee in this State, any signs or inside
10		advertising materials except as provided in this Section and
11		Section 6-5. With respect to retail licensees, other than any
12		government owned or operated auditorium, exhibition hall,
13		recreation facility or other similar facility holding a
14		retailer's license as described in Section 6-5, a manufacturer
15		or , distributor, or importing distributor may furnish, give,
16		lend or rent and erect, install, repair and maintain to or for
17		any retail licensee, for use at any one time in or about or in
18		connection with a retail establishment on which the products of
19		the manufacturer or , distributor or importing distributor are
20		sold, the following signs and inside advertising materials as
21		authorized in subparts (i), (ii), (iii), and (iv):
22		(i) Permanent outside signs shall be limited to one
23		outside sign, per brand, in place and in use at any one
24		time, costing not more than $893, exclusive of erection,
25		installation, repair and maintenance costs, and permit
26		fees and shall bear only the manufacturer's name, brand

SB3095 Engrossed - 122 - LRB099 20651 RPS 45255 b
1		name, trade name, slogans, markings, trademark, or other
2		symbols commonly associated with and generally used in
3		identifying the product including, but not limited to,
4		"cold beer", "on tap", "carry out", and "packaged liquor".
5		(ii) Temporary outside signs shall be limited to one
6		temporary outside sign per brand. Examples of temporary
7		outside signs are banners, flags, pennants, streamers, and
8		other items of a temporary and non-permanent nature. Each
9		temporary outside sign must include the manufacturer's
10		name, brand name, trade name, slogans, markings,
11		trademark, or other symbol commonly associated with and
12		generally used in identifying the product. Temporary
13		outside signs may also include, for example, the product,
14		price, packaging, date or dates of a promotion and an
15		announcement of a retail licensee's specific sponsored
16		event, if the temporary outside sign is intended to promote
17		a product, and provided that the announcement of the retail
18		licensee's event and the product promotion are held
19		simultaneously. However, temporary outside signs may not
20		include names, slogans, markings, or logos that relate to
21		the retailer. Nothing in this subpart (ii) shall prohibit a
22		distributor or importing distributor from bearing the cost
23		of creating or printing a temporary outside sign for the
24		retail licensee's specific sponsored event or from bearing
25		the cost of creating or printing a temporary sign for a
26		retail licensee containing, for example, community

SB3095 Engrossed - 123 - LRB099 20651 RPS 45255 b
1		goodwill expressions, regional sporting event
2		announcements, or seasonal messages, provided that the
3		primary purpose of the temporary outside sign is to
4		highlight, promote, or advertise the product. In addition,
5		temporary outside signs provided by the manufacturer to the
6		distributor or importing distributor may also include, for
7		example, subject to the limitations of this Section,
8		preprinted community goodwill expressions, sporting event
9		announcements, seasonal messages, and manufacturer
10		promotional announcements. However, a distributor or
11		importing distributor shall not bear the cost of such
12		manufacturer preprinted signs.
13		(iii) Permanent inside signs, whether visible from the
14		outside or the inside of the premises, include, but are not
15		limited to: alcohol lists and menus that may include names,
16		slogans, markings, or logos that relate to the retailer;
17		neons; illuminated signs; clocks; table lamps; mirrors;
18		tap handles; decalcomanias; window painting; and window
19		trim. All permanent inside signs in place and in use at any
20		one time shall cost in the aggregate not more than $2000
21		per manufacturer. A permanent inside sign must include the
22		manufacturer's name, brand name, trade name, slogans,
23		markings, trademark, or other symbol commonly associated
24		with and generally used in identifying the product.
25		However, permanent inside signs may not include names,
26		slogans, markings, or logos that relate to the retailer.

SB3095 Engrossed - 124 - LRB099 20651 RPS 45255 b
1		For the purpose of this subpart (iii), all permanent inside
2		signs may be displayed in an adjacent courtyard or patio
3		commonly referred to as a "beer garden" that is a part of
4		the retailer's licensed premises.
5		(iv) Temporary inside signs shall include, but are not
6		limited to, lighted chalk boards, acrylic table tent
7		beverage or hors d'oeuvre list holders, banners, flags,
8		pennants, streamers, and inside advertising materials such
9		as posters, placards, bowling sheets, table tents, inserts
10		for acrylic table tent beverage or hors d'oeuvre list
11		holders, sports schedules, or similar printed or
12		illustrated materials; however, such items, for example,
13		as coasters, trays, napkins, glassware and cups shall not
14		be deemed to be inside signs or advertising materials and
15		may only be sold to retailers. All temporary inside signs
16		and inside advertising materials in place and in use at any
17		one time shall cost in the aggregate not more than $325 per
18		manufacturer. Nothing in this subpart (iv) prohibits a
19		distributor or importing distributor from paying the cost
20		of printing or creating any temporary inside banner or
21		inserts for acrylic table tent beverage or hors d'oeuvre
22		list holders for a retail licensee, provided that the
23		primary purpose for the banner or insert is to highlight,
24		promote, or advertise the product. For the purpose of this
25		subpart (iv), all temporary inside signs and inside
26		advertising materials may be displayed in an adjacent

SB3095 Engrossed - 125 - LRB099 20651 RPS 45255 b
1		courtyard or patio commonly referred to as a "beer garden"
2		that is a part of the retailer's licensed premises.
3		A "cost adjustment factor" shall be used to periodically
4		update the dollar limitations prescribed in subparts (i),
5		(iii), and (iv). The Commission shall establish the adjusted
6		dollar limitation on an annual basis beginning in January,
7		1997. The term "cost adjustment factor" means a percentage
8		equal to the change in the Bureau of Labor Statistics Consumer
9		Price Index or 5%, whichever is greater. The restrictions
10		contained in this Section 6-6 do not apply to signs, or
11		promotional or advertising materials furnished by
12		manufacturers or , distributors or importing distributors to a
13		government owned or operated facility holding a retailer's
14		license as described in Section 6-5.
15		No distributor or importing distributor shall directly or
16		indirectly or through a subsidiary or affiliate, or by any
17		officer, director or firm of such manufacturer or , distributor
18		or importing distributor, furnish, give, lend or rent, install,
19		repair or maintain, to or for any retail licensee in this
20		State, any signs or inside advertising materials described in
21		subparts (i), (ii), (iii), or (iv) of this Section except as
22		the agent for or on behalf of a manufacturer, provided that the
23		total cost of any signs and inside advertising materials
24		including but not limited to labor, erection, installation and
25		permit fees shall be paid by the manufacturer whose product or
26		products said signs and inside advertising materials advertise

SB3095 Engrossed - 126 - LRB099 20651 RPS 45255 b
1		and except as follows:
2		A distributor or importing distributor may purchase from or
3		enter into a written agreement with a manufacturer or a
4		manufacturer's designated supplier and such manufacturer or
5		the manufacturer's designated supplier may sell or enter into
6		an agreement to sell to a distributor or importing distributor
7		permitted signs and advertising materials described in
8		subparts (ii), (iii), or (iv) of this Section for the purpose
9		of furnishing, giving, lending, renting, installing,
10		repairing, or maintaining such signs or advertising materials
11		to or for any retail licensee in this State. Any purchase by a
12		distributor or importing distributor from a manufacturer or a
13		manufacturer's designated supplier shall be voluntary and the
14		manufacturer may not require the distributor or the importing
15		distributor to purchase signs or advertising materials from the
16		manufacturer or the manufacturer's designated supplier.
17		A distributor or importing distributor shall be deemed the
18		owner of such signs or advertising materials purchased from a
19		manufacturer or a manufacturer's designated supplier.
20		The provisions of Public Act 90-373 concerning signs or
21		advertising materials delivered by a manufacturer to a
22		distributor or importing distributor shall apply only to signs
23		or advertising materials delivered on or after August 14, 1997.
24		A manufacturer or , distributor, or importing distributor
25		may furnish free social media advertising to a retail licensee
26		if the social media advertisement does not contain the retail

SB3095 Engrossed - 127 - LRB099 20651 RPS 45255 b
1		price of any alcoholic liquor and the social media
2		advertisement complies with any applicable rules or
3		regulations issued by the Alcohol and Tobacco Tax and Trade
4		Bureau of the United States Department of the Treasury. A
5		manufacturer or , distributor, or importing distributor may
6		list the names of one or more unaffiliated retailers in the
7		advertisement of alcoholic liquor through social media.
8		Nothing in this Section shall prohibit a retailer from
9		communicating with a manufacturer or , distributor, or
10		importing distributor on social media or sharing media on the
11		social media of a manufacturer or , distributor, or importing
12		distributor. A retailer may request free social media
13		advertising from a manufacturer or , distributor, or importing
14		distributor. Nothing in this Section shall prohibit a
15		manufacturer or , distributor, or importing distributor from
16		sharing, reposting, or otherwise forwarding a social media post
17		by a retail licensee, so long as the sharing, reposting, or
18		forwarding of the social media post does not contain the retail
19		price of any alcoholic liquor. No manufacturer or , distributor,
20		or importing distributor shall pay or reimburse a retailer,
21		directly or indirectly, for any social media advertising
22		services, except as specifically permitted in this Act. No
23		retailer shall accept any payment or reimbursement, directly or
24		indirectly, for any social media advertising services offered
25		by a manufacturer or , distributor, or importing distributor,
26		except as specifically permitted in this Act. For the purposes

SB3095 Engrossed - 128 - LRB099 20651 RPS 45255 b
1		of this Section, "social media" means a service, platform, or
2		site where users communicate with one another and share media,
3		such as pictures, videos, music, and blogs, with other users
4		free of charge.
5		No person engaged in the business of manufacturing,
6		importing or distributing alcoholic liquors shall, directly or
7		indirectly, pay for, or advance, furnish, or lend money for the
8		payment of any license for another. Any licensee who shall
9		permit or assent, or be a party in any way to any violation or
10		infringement of the provisions of this Section shall be deemed
11		guilty of a violation of this Act, and any money loaned
12		contrary to a provision of this Act shall not be recovered
13		back, or any note, mortgage or other evidence of indebtedness,
14		or security, or any lease or contract obtained or made contrary
15		to this Act shall be unenforceable and void.
16		This Section shall not apply to airplane licensees
17		exercising powers provided in paragraph (i) of Section 5-1 of
18		this Act.
19		(Source: P.A. 98-756, eff. 7-16-14; 99-448, eff. 8-24-15.)
20		(235 ILCS 5/6-6.3)
21		Sec. 6-6.3. Non-alcoholic merchandise.
22		(a) Nothing in this Act shall authorize the Illinois Liquor
23		Control Commission to regulate or exercise jurisdiction over
24		any action, transaction, and business of manufacturers,
25		distributors, or retailers engaged in any transaction

SB3095 Engrossed - 129 - LRB099 20651 RPS 45255 b
1		involving the furnishing, selling, or offering for sale of
2		non-alcoholic merchandise by manufacturers, distributors, or
3		retailers, unless the transaction involves expressed or
4		implied agreements or understandings prohibited by this Act.
5		(b) Non-alcoholic merchandise may be sold by a manufacturer
6		class license holder, non-resident dealer, foreign importer,
7		importing distributor, or distributor to a retail licensee if:
8		(1) the manufacturer class license holder,
9		non-resident dealer, foreign importer, importing
10		distributor, or distributor is also in business as a bona
11		fide producer or vendor of other merchandise;
12		(2) the merchandise is sold at its fair market value;
13		(3) the non-alcoholic merchandise is not sold in
14		combination with alcoholic liquor or conditioned on the
15		sale of alcoholic liquor;
16		(4) the manufacturer class license holder's,
17		non-resident dealer's, foreign importer's, importing
18		distributor's, or distributor's acquisition or production
19		costs of the non-alcoholic merchandise appear on the
20		manufacturer class license holder's, non-resident
21		dealer's, foreign importer's, importing distributor's, or
22		distributor's purchase invoices or other records;
23		(5) the individual selling prices of the non-alcoholic
24		merchandise and alcoholic liquor sold in a single
25		transaction can be determined from commercial documents
26		covering the sales transaction if non-alcoholic

SB3095 Engrossed - 130 - LRB099 20651 RPS 45255 b
1		merchandise is sold in the same transaction as alcoholic
2		liquor; and
3		(6) the price is collected by the manufacturer class
4		license holder, non-resident dealer, foreign importer, or
5		distributor within 30 days of the date of the sale, unless
6		other terms are established in writing between the parties.
7		(c) The State Commission may not prohibit the sale of
8		non-alcoholic merchandise if it is sold in the manner in which
9		the non-alcoholic merchandise is sold by a manufacturer or
10		distributor that is not licensed by the State Commission;
11		provided, however, that all invoices for non-alcoholic
12		merchandise sold by a manufacturer class license holder,
13		non-resident dealer, foreign importer, importing distributor,
14		or distributor that is also in business as a bona fide producer
15		or vendor of other merchandise must be in compliance with the
16		books and records requirements of 11 Ill. Adm. Code 100.130. If
17		the non-alcoholic merchandise is sold on the same invoice as an
18		alcoholic liquor product, the 30-day merchandising credit
19		provisions of Section 6-5 of this Act shall apply to the entire
20		transaction, including the non-alcoholic merchandise.
21		(d) Except as provided in subsection (f), a manufacturer
22		class license holder, non-resident dealer, foreign importer,
23		importing distributor, or distributor that is also in business
24		as a bona fide producer or vendor of non-alcoholic merchandise
25		shall not condition the sale of its alcoholic liquor on the
26		sale of its non-alcoholic merchandise and shall not combine the

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1		sale of its alcoholic liquor with the sale of its non-alcoholic
2		merchandise. A manufacturer class license holder, non-resident
3		dealer, foreign importer, importing distributor, or
4		distributor that is also in business as a bona fide producer or
5		vendor of non-alcoholic merchandise may sell, market, and
6		promote non-alcoholic merchandise in the same manner in which
7		the non-alcoholic merchandise is sold, marketed, or promoted by
8		a manufacturer or distributor not licensed by the State
9		Commission.
10		(e) Notwithstanding the prohibited furnishing or providing
11		of fixtures, equipment, and furnishings to retailers as
12		contained in Section 6-6 of this Act, the act of a manufacturer
13		class license holder, non-resident dealer, foreign importer,
14		importing distributor, or distributor furnishing or providing
15		retailers with fixtures, equipment, or furnishings for the
16		limited purpose of storing, servicing, displaying,
17		advertising, furnishing, selling, or aiding in the sale of
18		non-alcoholic merchandise is permitted, only to the extent
19		allowed by this Section, and such fixtures, equipment, and
20		furnishings shall not be used by the retail licensee to store,
21		service, display, advertise, furnish, sell, or aid in the sale
22		of alcoholic liquors. All such fixtures, equipment, or
23		furnishings shall be identified by the retail licensee as being
24		furnished by a manufacturer class license holder, non-resident
25		dealer, foreign importer, importing distributor, or
26		distributor licensed by the State Commission and, if purchased

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1		by the retail licensee and sold on the same invoice as
2		alcoholic liquor products, the price must be collected by the
3		manufacturer class license holder, non-resident dealer,
4		foreign importer, importing distributor, or distributor
5		selling the same within 30 days of the date of sale.
6		(f) Notwithstanding any provision of this Act to the
7		contrary, a manufacturer class license holder, non-resident
8		dealer, foreign importer, importing distributor, or
9		distributor may package and distribute alcoholic liquor in
10		combination with other non-alcoholic merchandise products if
11		the alcoholic liquor and non-alcoholic merchandise was
12		originally packaged together for ultimate sale to consumers by
13		the manufacturer or agent of the manufacturer as originally
14		packaged by the manufacturer or agent of the manufacturer for
15		ultimate sale to consumers.
16		(Source: P.A. 99-282, eff. 8-5-15.)
17		(235 ILCS 5/6-6.5)
18		Sec. 6-6.5. Sanitation. A manufacturer or , distributor, or
19		importing distributor may sell coil cleaning services to a
20		retail licensee at fair market cost.
21		A manufacturer or , distributor, or importing distributor
22		may sell dispensing accessories to retail licensees at a price
23		not less than the cost to the manufacturer or , distributor, or
24		importing distributor who initially purchased them. Dispensing
25		accessories include, but are not limited to, items such as

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1		standards, faucets, cold plates, rods, vents, taps, tap
2		standards, hoses, washers, couplings, gas gauges, vent
3		tongues, shanks, and check valves.
4		Coil cleaning supplies consisting of detergents, cleaning
5		chemicals, brushes, or similar type cleaning devices may be
6		sold at a price not less than the cost to the manufacturer or ,
7		distributor, or importing distributor.
8		(Source: P.A. 90-432, eff. 1-1-98.)
9		(235 ILCS 5/6-7) (from Ch. 43, par. 124)
10		Sec. 6-7. No manufacturer or distributor or importing
11		distributor or foreign importer shall sell or deliver any
12		package containing alcoholic liquor manufactured or
13		distributed by him unless the same shall have affixed thereto
14		all cancelled revenue stamps which may be provided by Federal
15		law, and shall also bear thereon a clear and legible label
16		containing the name and address of the manufacturer, the kind
17		of alcoholic liquor contained therein, and in the case of
18		alcoholic liquor (other than beer and imported Scotch whiskey
19		and brandy 4 years old or more) the date when manufactured and
20		the minimum alcoholic content thereof. No person or persons,
21		corporation, partnership or firm shall label alcoholic liquor
22		as "whiskey" or "gin" or shall import for sale or shall sell in
23		this State alcoholic liquor labeled as "whiskey" or "gin"
24		unless the entire alcoholic content thereof, except flavoring
25		materials, is a distillate of fermented mash of grain or

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1		mixture of grains. Alcoholic liquor of the type of whiskey or
2		gin not conforming to this requirement must be labeled
3		"imitation whiskey" or "imitation gin" (as the case may be). No
4		spirits shall contain any substance, compound or ingredient
5		which is injurious to health or deleterious for human
6		consumption. No package shall be delivered by any manufacturer
7		or distributor or importing distributor or foreign importer
8		unless the same shall be securely sealed so that the contents
9		thereof cannot be removed without breaking the seal so placed
10		thereon by said manufacturer, and no other licensee shall sell,
11		have in his possession, or use any package or container which
12		does not comply with this Section or does not bear evidence
13		that said package, when delivered to him, complied herewith.
14		(Source: P.A. 82-783.)
15		(235 ILCS 5/6-8) (from Ch. 43, par. 125)
16		Sec. 6-8. Each manufacturer or importing distributor or
17		foreign importer shall keep an accurate record of all alcoholic
18		liquors manufactured, distributed, sold, used, or delivered by
19		him in this State during each month, showing therein to whom
20		sold, and shall furnish a copy thereof or a report thereon to
21		the State Commission, as the State Commission may, request.
22		Each importing distributor or manufacturer to whom
23		alcoholic liquors imported into this State have been consigned
24		shall effect possession and physical control thereof by storing
25		such alcoholic liquors in the premises wherein such importing

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1		distributor or manufacturer is licensed to engage in such
2		business as a an importing distributor or manufacturer and to
3		make such alcoholic liquors together with accompanying
4		invoices, bills of lading and receiving tickets available for
5		inspection by an agent or representative of the Department of
6		Revenue and of the State Commission.
7		All alcoholic liquor imported into this State must be
8		off-loaded from the common carrier, vehicle, or mode of
9		transportation by which the alcoholic liquor was delivered into
10		this State. The alcoholic liquor shall be stored at the
11		licensed premises of the importing distributor before sale and
12		delivery to licensees in this State. A distributor or importing
13		distributor, upon application to the Commission, may secure a
14		waiver of the provisions of this Section for purposes of
15		delivering beer directly to a licensee holding or otherwise
16		participating in a special event sponsored by a unit of
17		government or a not-for-profit organization.
18		(Source: P.A. 88-535.)
19		(235 ILCS 5/6-9) (from Ch. 43, par. 126)
20		Sec. 6-9. Registration of trade marks; sale within
21		geographical area; delivery to authorized persons. The
22		Legislature hereby finds and declares that for purposes of
23		ensuring the preservation and enhancement of interbrand
24		competition in the alcoholic liquor industry within the State,
25		ensuring that importation and distribution of alcoholic liquor

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1		in the State will be subject to thorough and inexpensive
2		monitoring by the State, reducing the importation of illicit or
3		untaxed alcoholic liquor into the State, excluding misbranded
4		alcoholic liquor products from the State, providing incentives
5		to distributors to service and sell to larger numbers of retail
6		licensees in the geographic area where such distributors are
7		engaged in business, and reducing the amount of spoiled and
8		overaged alcoholic liquor products sold to consumers, it is
9		necessary to restrict the purchase of alcoholic liquors at
10		wholesale in the State to those persons selected by the
11		manufacturer, distributor, importing distributor or foreign
12		importer who owns or controls the trade mark, brand or name of
13		the alcoholic liquor products sold to such persons, and to
14		restrict the geographic area or areas within which such persons
15		sell such alcoholic liquor at wholesale, as provided in this
16		Section.
17		Each manufacturer, non-resident dealer, distributor,
18		importing distributor, or foreign importer who owns or controls
19		the trade mark, brand or name of any alcoholic liquor shall
20		register with the State Commission, in the Chicago office, on
21		or before the effective date, the name of each person to whom
22		such manufacturer, non-resident dealer, distributor, importing
23		distributor, or foreign importer grants the right to sell at
24		wholesale in this State any such alcoholic liquor, specifying
25		the particular trade mark, brand or name of alcoholic liquor as
26		to which such right is granted, the geographical area or areas

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1		for which such right is granted and the period of time for
2		which such rights are granted to such person. Each
3		manufacturer, non-resident dealer, distributor or importing
4		distributor, or foreign importer who is required to register
5		under this Section must furnish a copy of the registration
6		statement at the time of appointment to the person who has been
7		granted the right to sell alcoholic liquor at wholesale.
8		However, if a person who has been appointed the right to sell
9		alcoholic liquor at wholesale does not receive a copy of the
10		registration statement as required under this Section, such
11		person may file a registration statement with the State
12		Commission, provided that the person furnishes a copy of that
13		registration statement to the manufacturer, non-resident
14		dealer, distributor, importing distributor, or foreign
15		importer within 30 days of filing the registration statement.
16		The registration statement shall state:
17		(1) the name of the person appointed;
18		(2) the name of the manufacturer, non-resident dealer,
19		distributor, importing distributor, or foreign importer from
20		whom the person received the right to sell alcoholic liquor;
21		(3) the particular trade mark, brand, or name of alcoholic
22		liquor as to which the right to sell at wholesale is granted;
23		and
24		(4) the geographical areas for which the right to sell at
25		wholesale is granted.
26		Such manufacturer, non-resident dealer, distributor,

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1		importing distributor, or foreign importer may grant the right
2		to sell at wholesale any trade mark, brand or name of any
3		alcoholic liquor in any geographical area to more than one
4		person. If the registration is received after the effective
5		date, the Commission shall treat the date the registration was
6		received in the Chicago office as the effective date. Such
7		registration shall be made on a form prescribed by the State
8		Commission and the State Commission may require such
9		registration to be on a form provided by it.
10		A non-resident dealer or foreign importer who is not a
11		manufacturer shall file the registration statement jointly
12		with the manufacturer identifying the person authorized by the
13		manufacturer to sign the registration statement on behalf of
14		the manufacturer.
15		No such registration shall be made in any other manner than
16		as is provided in this Section and only those persons
17		registered by the manufacturer, non-resident dealer,
18		distributor, importing distributor or foreign importer, shall
19		have the right to sell at wholesale in this State, the brand of
20		alcoholic liquor specified on the registration form.
21		However, a licensed Illinois distributor who has not been
22		registered to sell a brand of alcoholic liquor, but for a
23		period of 2 years prior to November 8, 1979 has been engaged in
24		the purchase of a brand for resale from a licensed Illinois
25		distributor who has the right to sell that brand at wholesale,
26		may continue to purchase and resell the brand at wholesale, and

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1		may purchase from the same distributor and resell at wholesale
2		any new brands of the same manufacturer, provided that:
3		(1) Within 60 days after November 8, 1979 he identifies
4		the brand which he so purchased to the State Commission and
5		the Commission within 30 days thereafter verifies that the
6		purchases have occurred;
7		(2) Thereafter, he notifies the State Commission in
8		writing of any brands of the same manufacturer which he
9		wishes to purchase from the same distributor that were not
10		available for distribution on or before November 8, 1979,
11		and that the Commission within 30 days of such notification
12		verifies that the brand is a new brand of the same
13		manufacturer, and that the same licensed Illinois
14		distributor has the right to sell the new brand at
15		wholesale;
16		(3) His licensed business address is within the
17		geographical area for which the licensed Illinois
18		distributor from whom the purchases are made has the right
19		to sell said brand or brands of alcoholic liquor; and
20		(4) His sales are made within the geographical area for
21		which the licensed Illinois distributor from whom the
22		purchases are made has the right to sell the brand or
23		brands of alcoholic liquor and only to retail licensees
24		whose licensed premises are located within the
25		aforementioned geographical area.
26		No person to whom such right is granted shall sell at

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1		wholesale in this State any alcoholic liquor bearing such trade
2		mark, brand or name outside of the geographical area for which
3		such person holds such selling right, as registered with the
4		State Commission, nor shall he sell such alcoholic liquor
5		within such geographical area to a retail licensee if the
6		premises specified in such retailer's license are located
7		outside such geographical area. Any licensed Illinois
8		distributor who has not been granted the right to sell any
9		alcoholic liquor at wholesale and is purchasing alcoholic
10		liquor from a person who has been granted the right to sell at
11		wholesale may sell and deliver only to retail licensees whose
12		licensed premises are within the same geographical area as the
13		person who has been granted the right to sell at wholesale.
14		No manufacturer, importing distributor, distributor,
15		non-resident dealer, or foreign importer shall sell or deliver
16		any package containing alcoholic liquor manufactured or
17		distributed by him for resale, unless the person to whom such
18		package is sold or delivered is authorized to receive such
19		package in accordance with the provisions of this Act.
20		(Source: P.A. 96-482, eff. 8-14-09.)
21		(235 ILCS 5/6-17) (from Ch. 43, par. 133)
22		Sec. 6-17. (a) No licensee licensed under the provisions of
23		this Act shall deny or permit his agents and employees to deny
24		any person the full and equal enjoyment of the accommodations,
25		advantages, facilities and privileges of any premises in which

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1		alcoholic liquors are authorized to be sold subject only to the
2		conditions and limitations established by law and applicable
3		alike to all citizens.
4		(b) A distributor or an importing distributor may refuse to
5		sell beer, brew, or similar beverages containing 0.5% or less
6		of alcohol by volume to a non-licensee.
7		(Source: P.A. 86-1469.)
8		(235 ILCS 5/6-17.1)
9		Sec. 6-17.1. Distributors; sales to retailers. The General
10		Assembly hereby finds and declares that for the purposes of
11		ensuring that all retail licensees have the opportunity to
12		receive alcoholic liquor, reducing the amount of spoiled and
13		overaged alcoholic liquor sold to customers, and maintaining
14		the distribution system and the State's ability to regulate
15		against illegal importation of alcoholic liquor, it is
16		necessary to prevent discrimination among retail licensees as
17		provided in this Section.
18		A distributor or importing distributor designated as a
19		distributor or importing distributor for alcoholic liquor
20		within a designated geographic area or areas under Section 6-9
21		of this Act shall use its best efforts to make available for
22		sale to retail licensees, in its designated geographic area or
23		areas, each brand of alcoholic liquor which the distributor or
24		the importing distributor has been authorized to distribute.
25		Nothing in this Section prohibits a distributor or importing

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1		distributor from establishing purchase requirements unless the
2		requirements have the effect of excluding a majority of the
3		retail licensees in the designated geographic area or areas
4		from purchasing the alcoholic liquor.
5		(Source: P.A. 91-186, eff. 1-1-00.)
6		(235 ILCS 5/6-22) (from Ch. 43, par. 137)
7		Sec. 6-22. No person except a manufacturer or distributor,
8		or importing distributor, shall fill or refill, in whole or in
9		part, any original package of alcoholic liquor with the same or
10		any other kind or quality of alcoholic liquor, and it shall be
11		unlawful for any person to have in his possession for sale at
12		retail any bottles, casks or other containers containing
13		alcoholic liquor, except in original packages.
14		(Source: P.A. 82-783.)
15		(235 ILCS 5/6-23) (from Ch. 43, par. 138)
16		Sec. 6-23. No manufacturer or distributor or importing
17		distributor or foreign importer shall enter into any contract
18		with any person licensed to sell at retail whereby such
19		licensee agrees not to sell any alcoholic liquors manufactured
20		or distributed by any other manufacturer or distributor or
21		importing distributor or foreign importer, and any provision in
22		any contract violative of this Section shall render the whole
23		of such contract void and no action shall be brought thereon in
24		any court. However, nothing in this Section shall prohibit the

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1		Department of Agriculture from entering into contracts for
2		exclusive facilities upon the State Fair Grounds on an equal
3		basis.
4		(Source: P.A. 85-142.)
5		(235 ILCS 5/6-27.1)
6		Sec. 6-27.1. Responsible alcohol service server training.
7		(a) Unless issued a valid server training certificate
8		between July 1, 2012 and July 1, 2015 by a certified Beverage
9		Alcohol Sellers and Servers Education and Training (BASSET)
10		trainer, all alcohol servers in Cook County are required to
11		obtain and complete training in basic responsible alcohol
12		service as outlined in 77 Ill. Adm. Code 3500, as those
13		provisions exist on July 1, 2015 (the effective date of Public
14		Act 98-939), by July 1, 2015 or within 120 days after the
15		alcohol server begins his or her employment, whichever is
16		later. All alcohol servers in a county, other than Cook County,
17		with a population of 200,000 inhabitants or more are required
18		to obtain and complete training in basic responsible alcohol
19		service as outlined in 77 Ill. Adm. Code 3500, as those
20		provisions exist on July 1, 2015 (the effective date of Public
21		Act 98-939), by July 1, 2016 or within 120 days after the
22		alcohol server begins his or her employment, whichever is
23		later. All alcohol servers in a county with a population of
24		more than 30,000 inhabitants and less than 200,000 inhabitants
25		are required to obtain and complete training in basic

SB3095 Engrossed - 144 - LRB099 20651 RPS 45255 b
1		responsible alcohol service as outlined in 77 Ill. Adm. Code
2		3500, as those provisions exist on July 1, 2015 (the effective
3		date of Public Act 98-939), by July 1, 2017 or within 120 days
4		after the alcohol server begins his or her employment,
5		whichever is later. All alcohol servers in counties with a
6		population of 30,000 inhabitants or less are required to obtain
7		and complete training in basic responsible alcohol service as
8		outlined in 77 Ill. Adm. Code 3500, as those provisions exist
9		on July 1, 2015 (the effective date of Public Act 98-939), by
10		July 1, 2018 or within 120 days after the alcohol server begins
11		his or her employment, whichever is later.
12		There is no limit to the amount of times a server may take
13		the training. A certificate of training belongs to the server,
14		and a server may transfer a certificate of training to a
15		different employer, but shall not transfer a certificate of
16		training to another server. Proof that an alcohol server has
17		been trained must be available upon reasonable request by State
18		law enforcement officials. For the purpose of this Section,
19		"alcohol servers" means persons who sell or serve open
20		containers of alcoholic beverages at retail and anyone whose
21		job description entails the checking of identification for the
22		purchase of open containers of alcoholic beverages at retail or
23		for entry into the licensed premises. The definition does not
24		include (i) a distributor or importing distributor conducting
25		product sampling as authorized in Section 6-31 of this Act or a
26		registered tasting representative, as provided in 11 Ill. Adm.

SB3095 Engrossed - 145 - LRB099 20651 RPS 45255 b
1		Code 100.40, conducting a tasting, as defined in 11 Ill. Adm.
2		Code 100.10; (ii) a volunteer serving alcoholic beverages at a
3		charitable function; or (iii) an instructor engaged in training
4		or educating on the proper technique for using a system that
5		dispenses alcoholic beverages.
6		(b) Responsible alcohol service training must cover and
7		assess knowledge of the topics noted in 77 Ill. Adm. Code
8		3500.155.
9		(c) Beginning on the effective date of this amendatory Act
10		of the 98th General Assembly, but no later than October 1,
11		2015, all existing BASSET trainers who are already BASSET
12		certified as of the effective date of this amendatory Act of
13		the 98th General Assembly shall be recertified by the State
14		Commission and be required to comply with the conditions for
15		server training set forth in this amendatory Act of the 98th
16		General Assembly.
17		(d) Training modules and certificate program plans must be
18		approved by the State Commission. All documents, materials, or
19		information related to responsible alcohol service training
20		program approval that are submitted to the State Commission are
21		confidential and shall not be open to public inspection or
22		dissemination and are exempt from disclosure.
23		The State Commission shall only approve programs that meet
24		the following criteria:
25		(1) the training course covers the content specified in
26		77 Ill. Adm. Code 3500.155;

SB3095 Engrossed - 146 - LRB099 20651 RPS 45255 b
1		(2) if the training course is classroom-based, the
2		classroom training is at least 4 hours, is available in
3		English and Spanish, and includes a test;
4		(3) if the training course is online or computer-based,
5		the course is designed in a way that ensures that no
6		content can be skipped, is interactive, has audio for
7		content for servers that have a disability, and includes a
8		test;
9		(4) training and testing is based on a job task
10		analysis that clearly identifies and focuses on the
11		knowledge, skills, and abilities needed to responsibly
12		serve alcoholic beverages and is developed using best
13		practices in instructional design and exam development to
14		ensure that the program is fair and legally defensible;
15		(5) training and testing is conducted by any means
16		available, including, but not limited to, online,
17		computer, classroom, or live trainers; and
18		(6) the program must provide access on a
19		24-hour-per-day, 7-days-per-week basis for certificate
20		verification for State Commission, State law enforcement
21		officials, and employers to be able to verify certificate
22		authenticity.
23		(e) Nothing in subsection (d) of this Section shall be
24		construed to require a program to use a test administrator or
25		proctor.
26		(f) A certificate issued from a BASSET-licensed training

SB3095 Engrossed - 147 - LRB099 20651 RPS 45255 b
1		program shall be accepted as meeting the training requirements
2		for all server license and permit laws and ordinances in the
3		State.
4		(g) A responsible alcohol service training certificate
5		from a BASSET-licensed program shall be valid for 3 years.
6		(h) The provisions of this Section shall apply beginning
7		July 1, 2015. From July 1, 2015 through December 31, 2015,
8		enforcement of the provisions of this Section shall be limited
9		to education and notification of the requirements to encourage
10		compliance.
11		(i) The provisions of this Section do not apply to a
12		special event retailer.
13		(Source: P.A. 98-939, eff. 7-1-15; 99-46, eff. 7-15-15.)
14		(235 ILCS 5/6-29) (from Ch. 43, par. 144e)
15		Sec. 6-29. Winery shipper's license.
16		(a) The General Assembly declares that the following is the
17		intent of this Section:
18		(1) To authorize direct shipment of wine by an
19		out-of-state maker of wine on the same basis permitted an
20		in-state maker of wine pursuant to the authority of the
21		State under the provisions of Section 2 of the Twenty-First
22		Amendment to the United States Constitution and in
23		conformance with the United States Supreme Court decision
24		decided on May 16, 2005 in Granholm v. Heald.
25		(2) To reaffirm that the General Assembly's findings

SB3095 Engrossed - 148 - LRB099 20651 RPS 45255 b
1		and declarations that selling alcoholic liquor through
2		various direct marketing means such as catalogs,
3		newspapers, mailings, and the Internet directly to
4		consumers of this State poses a serious threat to the
5		State's efforts to further temperance and prevent youth
6		from accessing alcoholic liquor and the expansion of youth
7		access to additional types of alcoholic liquors.
8		(3) To maintain the State's broad powers granted by
9		Section 2 of the Twenty-First Amendment to the United
10		States Constitution to control the importation or sale of
11		alcoholic liquor and its right to structure its alcoholic
12		liquor distribution system.
13		(4) To ensure that the General Assembly, by authorizing
14		limited direct shipment of wine to meet the directives of
15		the United States Supreme Court, does not intend to impair
16		or modify the State's distribution of wine through
17		distributors or importing distributors, but only to permit
18		limited shipment of wine for personal use.
19		(5) To provide that, in the event that a court of
20		competent jurisdiction declares or finds that this
21		Section, which is enacted to conform Illinois law to the
22		United States Supreme Court decision, is invalid or
23		unconstitutional, the Illinois General Assembly at its
24		earliest general session shall conduct hearings and study
25		methods to conform to any directive or order of the court
26		consistent with the temperance and revenue collection

SB3095 Engrossed - 149 - LRB099 20651 RPS 45255 b
1		purposes of this Act.
2		(b) Notwithstanding any other provision of law, a wine
3		shipper licensee may ship, for personal use and not for resale,
4		not more than 12 cases of wine per year to any resident of this
5		State who is 21 years of age or older.
6		(b-3) Notwithstanding any other provision of law, sale and
7		shipment by a winery shipper licensee pursuant to this Section
8		shall be deemed to constitute a sale in this State.
9		(b-5) The shipping container of any wine shipped under this
10		Section shall be clearly labeled with the following words:
11		"CONTAINS ALCOHOL. SIGNATURE OF A PERSON 21 YEARS OF AGE OR
12		OLDER REQUIRED FOR DELIVERY. PROOF OF AGE AND IDENTITY MUST BE
13		SHOWN BEFORE DELIVERY.". This warning must be prominently
14		displayed on the packaging. A licensee shall require the
15		transporter or common carrier that delivers the wine to obtain
16		the signature of a person 21 years of age or older at the
17		delivery address at the time of delivery. At the expense of the
18		licensee, the licensee shall receive a delivery confirmation
19		from the express company, common carrier, or contract carrier
20		indicating the location of the delivery, time of delivery, and
21		the name and signature of the individual 21 years of age or
22		older who accepts delivery. The Commission shall design and
23		create a label or approve a label that must be affixed to the
24		shipping container by the licensee.
25		(c) No broker within this State shall solicit consumers to
26		engage in direct wine shipments under this Section.

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1		(d) It is not the intent of this Section to impair the
2		distribution of wine through distributors or importing
3		distributors, but only to permit shipments of wine for personal
4		use.
5		(Source: P.A. 95-634, eff. 6-1-08.)
6		(235 ILCS 5/6-29.1)
7		Sec. 6-29.1. Direct shipments of alcoholic liquor.
8		(a) The General Assembly makes the following findings:
9		(1) The General Assembly of Illinois, having reviewed
10		this Act in light of the United States Supreme Court's 2005
11		decision in Granholm v. Heald, has determined to conform
12		that law to the constitutional principles enunciated by the
13		Court in a manner that best preserves the temperance,
14		revenue, and orderly distribution values of this Act.
15		(2) Minimizing automobile accidents and fatalities,
16		domestic violence, health problems, loss of productivity,
17		unemployment, and other social problems associated with
18		dependency and improvident use of alcoholic beverages
19		remains the policy of Illinois.
20		(3) To the maximum extent constitutionally feasible,
21		Illinois desires to collect sufficient revenue from excise
22		and use taxes on alcoholic beverages for the purpose of
23		responding to such social problems.
24		(4) Combined with family education and individual
25		discipline, retail validation of age, and assessment of the

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1		capacity of the consumer remains the best pre-sale social
2		protection against the problems associated with the abuse
3		of alcoholic liquor.
4		(5) Therefore, the paramount purpose of this
5		amendatory Act is to continue to carefully limit direct
6		shipment sales of wine produced by makers of wine and to
7		continue to prohibit such direct shipment sales for spirits
8		and beer.
9		For these reasons, the Commission shall establish a system
10		to notify the out-of-state trade of this prohibition and to
11		detect violations. The Commission shall request the Attorney
12		General to extradite any offender.
13		(b) Pursuant to the Twenty-First Amendment of the United
14		States Constitution allowing states to regulate the
15		distribution and sale of alcoholic liquor and pursuant to the
16		federal Webb-Kenyon Act declaring that alcoholic liquor
17		shipped in interstate commerce must comply with state laws, the
18		General Assembly hereby finds and declares that selling
19		alcoholic liquor from a point outside this State through
20		various direct marketing means, such as catalogs, newspapers,
21		mailers, and the Internet, directly to residents of this State
22		poses a serious threat to the State's efforts to prevent youths
23		from accessing alcoholic liquor; to State revenue collections;
24		and to the economy of this State.
25		Any person manufacturing, distributing, or selling
26		alcoholic liquor who knowingly ships or transports or causes

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1		the shipping or transportation of any alcoholic liquor from a
2		point outside this State to a person in this State who does not
3		hold a manufacturer's, distributor's, importing distributor's,
4		or non-resident dealer's license issued by the Liquor Control
5		Commission, other than a shipment of sacramental wine to a bona
6		fide religious organization, a shipment authorized by Section
7		6-29, subparagraph (17) of Section 3-12, or any other shipment
8		authorized by this Act, is in violation of this Act.
9		The Commission, upon determining, after investigation,
10		that a person has violated this Section, shall give notice to
11		the person by certified mail to cease and desist all shipments
12		of alcoholic liquor into this State and to withdraw from this
13		State within 5 working days after receipt of the notice all
14		shipments of alcoholic liquor then in transit.
15		Whenever the Commission has reason to believe that a person
16		has failed to comply with the Commission notice under this
17		Section, it shall notify the Department of Revenue and file a
18		complaint with the State's Attorney of the county where the
19		alcoholic liquor was delivered or with appropriate law
20		enforcement officials.
21		Failure to comply with the notice issued by the Commission
22		under this Section constitutes a business offense for which the
23		person shall be fined not more than $1,000 for a first offense,
24		not more than $5,000 for a second offense, and not more than
25		$10,000 for a third or subsequent offense. Each shipment of
26		alcoholic liquor delivered in violation of the cease and desist

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1		notice shall constitute a separate offense.
2		(Source: P.A. 95-634, eff. 6-1-08.)
3		(235 ILCS 5/6-31)
4		Sec. 6-31. Product sampling.
5		(a) Retailer, distributor, importing distributor,
6		manufacturer, and nonresident dealer licensees may conduct
7		product sampling for consumption at a licensed retail location.
8		Up to 3 samples, consisting of no more than (i) 1/4 ounce of
9		distilled spirits, (ii) one ounce of wine, or (iii) 2 ounces of
10		beer may be served to a consumer in one day.
11		(b) Notwithstanding the provisions of subsection (a), an
12		on-premises retail licensee may offer for sale and serve more
13		than one drink per person for sampling purposes. In any event,
14		all provisions of Section 6-28 shall apply to an on-premises
15		retail licensee that conducts product sampling.
16		(Source: P.A. 99-46, eff. 7-15-15.)
17		(235 ILCS 5/7-1) (from Ch. 43, par. 145)
18		Sec. 7-1. An applicant for a retail license from the State
19		Commission shall submit to the State Commission an application
20		in writing under oath stating:
21		(1) The applicant's name and mailing address;
22		(2) The name and address of the applicant's business;
23		(3) If applicable, the date of the filing of the
24		"assumed name" of the business with the County Clerk;

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1		(4) In case of a copartnership, the date of the
2		formation of the partnership; in the case of an Illinois
3		corporation, the date of its incorporation; or in the case
4		of a foreign corporation, the State where it was
5		incorporated and the date of its becoming qualified under
6		the Business Corporation Act of 1983 to transact business
7		in the State of Illinois;
8		(5) The number, the date of issuance and the date of
9		expiration of the applicant's current local retail liquor
10		license;
11		(6) The name of the city, village, or county that
12		issued the local retail liquor license;
13		(7) The name and address of the landlord if the
14		premises are leased;
15		(8) The date of the applicant's first request for a
16		State liquor license and whether it was granted, denied or
17		withdrawn;
18		(9) The address of the applicant when the first
19		application for a State liquor license was made;
20		(10) The applicant's current State liquor license
21		number;
22		(11) The date the applicant began liquor sales at his
23		place of business;
24		(12) The address of the applicant's warehouse if he
25		warehouses liquor;
26		(13) The applicant's Retailers' Occupation Tax (ROT)

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1		Registration Number;
2		(14) The applicant's document locator number on his
3		Federal Special Tax Stamp;
4		(15) Whether the applicant is delinquent in the payment
5		of the Retailers' Occupation Tax (Sales Tax), and if so,
6		the reasons therefor;
7		(16) Whether the applicant is delinquent under the cash
8		beer law, and if so, the reasons therefor;
9		(17) In the case of a retailer, whether he is
10		delinquent under the 30-day credit law, and if so, the
11		reasons therefor;
12		(18) In the case of a distributor, whether he is
13		delinquent under the 15-day credit law, and if so, the
14		reasons therefor;
15		(19) Whether the applicant has made an application for
16		a liquor license which has been denied, and if so, the
17		reasons therefor;
18		(20) Whether the applicant has ever had any previous
19		liquor license suspended or revoked, and if so, the reasons
20		therefor;
21		(21) Whether the applicant has ever been convicted of a
22		gambling offense or felony, and if so, the particulars
23		thereof;
24		(22) Whether the applicant possesses a current Federal
25		Wagering Stamp, and if so, the reasons therefor;
26		(23) Whether the applicant, or any other person,

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1		directly in his place of business is a public official, and
2		if so, the particulars thereof;
3		(24) The applicant's name, sex, date of birth, social
4		security number, position and percentage of ownership in
5		the business; and the name, sex, date of birth, social
6		security number, position and percentage of ownership in
7		the business of every sole owner, partner, corporate
8		officer, director, manager and any person who owns 5% or
9		more of the shares of the applicant business entity or
10		parent corporations of the applicant business entity; and
11		(25) That he has not received or borrowed money or
12		anything else of value, and that he will not receive or
13		borrow money or anything else of value (other than
14		merchandising credit in the ordinary course of business for
15		a period not to exceed 90 days as herein expressly
16		permitted under Section 6-5 hereof), directly or
17		indirectly, from any manufacturer, importing distributor
18		or distributor or from any representative of any such
19		manufacturer, importing distributor or distributor, nor be
20		a party in any way, directly or indirectly, to any
21		violation by a manufacturer or , distributor or importing
22		distributor of Section 6-6 of this Act.
23		In addition to any other requirement of this Section, an
24		applicant for a special use permit license and a special event
25		retailer's license shall also submit (A) proof satisfactory to
26		the Commission that the applicant has a resale number issued

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1		under Section 2c of the Retailers' Occupation Tax Act or that
2		the applicant is registered under Section 2a of the Retailers'
3		Occupation Tax Act, (B) proof satisfactory to the Commission
4		that the applicant has a current, valid exemption
5		identification number issued under Section 1g of the Retailers'
6		Occupation Tax Act and a certification to the Commission that
7		the purchase of alcoholic liquors will be a tax-exempt
8		purchase, or (C) a statement that the applicant is not
9		registered under Section 2a of the Retailers' Occupation Tax
10		Act, does not hold a resale number under Section 2c of the
11		Retailers' Occupation Tax Act, and does not hold an exemption
12		number under Section 1g of the Retailers' Occupation Tax Act.
13		The applicant shall also submit proof of adequate dram shop
14		insurance for the special event prior to being issued a
15		license.
16		In addition to the foregoing information, such application
17		shall contain such other and further information as the State
18		Commission and the local commission may, by rule or regulation
19		not inconsistent with law, prescribe.
20		If the applicant reports a felony conviction as required
21		under paragraph (21) of this Section, such conviction may be
22		considered by the Commission in determining qualifications for
23		licensing, but shall not operate as a bar to licensing.
24		If said application is made in behalf of a partnership,
25		firm, association, club or corporation, then the same shall be
26		signed by one member of such partnership or the president or

SB3095 Engrossed - 158 - LRB099 20651 RPS 45255 b
1		secretary of such corporation or an authorized agent of said
2		partnership or corporation.
3		All other applications shall be on forms prescribed by the
4		State Commission, and which may exclude any of the above
5		requirements which the State Commission rules to be
6		inapplicable.
7		(Source: P.A. 98-756, eff. 7-16-14.)
8		(235 ILCS 5/7-6) (from Ch. 43, par. 150)
9		Sec. 7-6. All proceedings for the revocation or suspension
10		of licenses of manufacturers, distributors, importing
11		distributors, non-resident dealers, foreign importers,
12		non-beverage users, railroads, airplanes and boats shall be
13		before the State Commission. All such proceedings and all
14		proceedings for the revocation or suspension of a retailer's
15		license before the State commission shall be in accordance with
16		rules and regulations established by it not inconsistent with
17		law. However, no such license shall be so revoked or suspended
18		except after a hearing by the State commission with reasonable
19		notice to the licensee served by registered or certified mail
20		with return receipt requested at least 10 days prior to the
21		hearings at the last known place of business of the licensee
22		and after an opportunity to appear and defend. Such notice
23		shall specify the time and place of the hearing, the nature of
24		the charges, the specific provisions of the Act and rules
25		violated, and the specific facts supporting the charges or

SB3095 Engrossed - 159 - LRB099 20651 RPS 45255 b
1		violation. The findings of the Commission shall be predicated
2		upon competent evidence. The revocation of a local license
3		shall automatically result in the revocation of a State
4		license. Upon notification by the Illinois Department of
5		Revenue, the State Commission, in accordance with Section 3-12,
6		may refuse the issuance or renewal of a license, fine a
7		licensee, or suspend or revoke any license issued by the State
8		Commission if the licensee or license applicant has violated
9		the provisions of Section 3 of the Retailers' Occupation Tax
10		Act. All procedures for the suspension or revocation of a
11		license, as enumerated above, are applicable to the levying of
12		fines for violations of this Act or any rule or regulation
13		issued pursuant thereto.
14		(Source: P.A. 95-331, eff. 8-21-07.)
15		(235 ILCS 5/8-1)
16		Sec. 8-1. A tax is imposed upon the privilege of engaging
17		in business as a manufacturer or as an importing distributor of
18		alcoholic liquor other than beer at the rate of $0.185 per
19		gallon until September 1, 2009 and $0.231 per gallon beginning
20		September 1, 2009 for cider containing not less than 0.5%
21		alcohol by volume nor more than 7% alcohol by volume, $0.73 per
22		gallon until September 1, 2009 and $1.39 per gallon beginning
23		September 1, 2009 for wine other than cider containing less
24		than 7% alcohol by volume, and $4.50 per gallon until September
25		1, 2009 and $8.55 per gallon beginning September 1, 2009 on

SB3095 Engrossed - 160 - LRB099 20651 RPS 45255 b
1		alcohol and spirits manufactured and sold or used by such
2		manufacturer, or as agent for any other person, or sold or used
3		by such importing distributor, or as agent for any other
4		person. A tax is imposed upon the privilege of engaging in
5		business as a manufacturer of beer or as an importing
6		distributor of beer at the rate of $0.185 per gallon until
7		September 1, 2009 and $0.231 per gallon beginning September 1,
8		2009 on all beer manufactured and sold or used by such
9		manufacturer, or as agent for any other person, or sold or used
10		by such importing distributor, or as agent for any other
11		person. Any brewer manufacturing beer in this State shall be
12		entitled to and given a credit or refund of 75% of the tax
13		imposed on each gallon of beer up to 4.9 million gallons per
14		year in any given calendar year for tax paid or payable on beer
15		produced and sold in the State of Illinois.
16		For the purpose of this Section, "cider" means any
17		alcoholic beverage obtained by the alcohol fermentation of the
18		juice of apples or pears including, but not limited to,
19		flavored, sparkling, or carbonated cider.
20		The credit or refund created by this Act shall apply to all
21		beer taxes in the calendar years 1982 through 1986.
22		The increases made by this amendatory Act of the 91st
23		General Assembly in the rates of taxes imposed under this
24		Section shall apply beginning on July 1, 1999.
25		A tax at the rate of 1¢ per gallon on beer and 48¢ per
26		gallon on alcohol and spirits is also imposed upon the

SB3095 Engrossed - 161 - LRB099 20651 RPS 45255 b
1		privilege of engaging in business as a retailer or as a
2		distributor who is not also an importing distributor with
3		respect to all beer and all alcohol and spirits owned or
4		possessed by such retailer or distributor when this amendatory
5		Act of 1969 becomes effective, and with respect to which the
6		additional tax imposed by this amendatory Act upon
7		manufacturers and importing distributors does not apply.
8		Retailers and distributors who are subject to the additional
9		tax imposed by this paragraph of this Section shall be required
10		to inventory such alcoholic liquor and to pay this additional
11		tax in a manner prescribed by the Department.
12		The provisions of this Section shall be construed to apply
13		to any importing distributor engaging in business in this
14		State, whether licensed or not.
15		However, such tax is not imposed upon any such business as
16		to any alcoholic liquor shipped outside Illinois by an Illinois
17		licensed manufacturer or importing distributor, nor as to any
18		alcoholic liquor delivered in Illinois by an Illinois licensed
19		manufacturer or importing distributor to a purchaser for
20		immediate transportation by the purchaser to another state into
21		which the purchaser has a legal right, under the laws of such
22		state, to import such alcoholic liquor, nor as to any alcoholic
23		liquor other than beer sold by one Illinois licensed
24		manufacturer or importing distributor to another Illinois
25		licensed manufacturer or importing distributor to the extent to
26		which the sale of alcoholic liquor other than beer by one

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1		Illinois licensed manufacturer or importing distributor to
2		another Illinois licensed manufacturer or importing
3		distributor is authorized by the licensing provisions of this
4		Act, nor to alcoholic liquor whether manufactured in or
5		imported into this State when sold to a "non-beverage user"
6		licensed by the State for use in the manufacture of any of the
7		following when they are unfit for beverage purposes:
8		Patent and proprietary medicines and medicinal,
9		antiseptic, culinary and toilet preparations;
10		Flavoring extracts and syrups and food products;
11		Scientific, industrial and chemical products, excepting
12		denatured alcohol;
13		Or for scientific, chemical, experimental or mechanical
14		purposes;
15		Nor is the tax imposed upon the privilege of engaging in
16		any business in interstate commerce or otherwise, which
17		business may not, under the Constitution and Statutes of the
18		United States, be made the subject of taxation by this State.
19		The tax herein imposed shall be in addition to all other
20		occupation or privilege taxes imposed by the State of Illinois
21		or political subdivision thereof.
22		If any alcoholic liquor manufactured in or imported into
23		this State is sold to a licensed manufacturer or importing
24		distributor by a licensed manufacturer or importing
25		distributor to be used solely as an ingredient in the
26		manufacture of any beverage for human consumption, the tax

SB3095 Engrossed - 163 - LRB099 20651 RPS 45255 b
1		imposed upon such purchasing manufacturer or importing
2		distributor shall be reduced by the amount of the taxes which
3		have been paid by the selling manufacturer or importing
4		distributor under this Act as to such alcoholic liquor so used
5		to the Department of Revenue.
6		If any person received any alcoholic liquors from a
7		manufacturer or importing distributor, with respect to which
8		alcoholic liquors no tax is imposed under this Article, and
9		such alcoholic liquor shall thereafter be disposed of in such
10		manner or under such circumstances as may cause the same to
11		become the base for the tax imposed by this Article, such
12		person shall make the same reports and returns, pay the same
13		taxes and be subject to all other provisions of this Article
14		relating to manufacturers and importing distributors.
15		Nothing in this Article shall be construed to require the
16		payment to the Department of the taxes imposed by this Article
17		more than once with respect to any quantity of alcoholic liquor
18		sold or used within this State.
19		No tax is imposed by this Act on sales of alcoholic liquor
20		by Illinois licensed foreign importers to Illinois licensed
21		importing distributors.
22		All of the proceeds of the additional tax imposed by Public
23		Act 96-34 shall be deposited by the Department into the Capital
24		Projects Fund. The remainder of the tax imposed by this Act
25		shall be deposited by the Department into the General Revenue
26		Fund.

SB3095 Engrossed - 164 - LRB099 20651 RPS 45255 b
1		The provisions of this Section 8-1 are severable under
2		Section 1.31 of the Statute on Statutes.
3		(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-38,
4		eff. 7-13-09; 96-1000, eff. 7-2-10.)
5		(235 ILCS 5/8-2) (from Ch. 43, par. 159)
6		Sec. 8-2. It is the duty of each manufacturer with respect
7		to alcoholic liquor produced or imported by such manufacturer,
8		or purchased tax-free by such manufacturer from another
9		manufacturer or importing distributor, and of each importing
10		distributor as to alcoholic liquor purchased by such importing
11		distributor from foreign importers or from anyone from any
12		point in the United States outside of this State or purchased
13		tax-free from another manufacturer or importing distributor,
14		to pay the tax imposed by Section 8-1 to the Department of
15		Revenue on or before the 15th day of the calendar month
16		following the calendar month in which such alcoholic liquor is
17		sold or used by such manufacturer or by such importing
18		distributor other than in an authorized tax-free manner or to
19		pay that tax electronically as provided in this Section.
20		Each manufacturer and each importing distributor shall
21		make payment under one of the following methods: (1) on or
22		before the 15th day of each calendar month, file in person or
23		by United States first-class mail, postage pre-paid, with the
24		Department of Revenue, on forms prescribed and furnished by the
25		Department, a report in writing in such form as may be required

SB3095 Engrossed - 165 - LRB099 20651 RPS 45255 b
1		by the Department in order to compute, and assure the accuracy
2		of, the tax due on all taxable sales and uses of alcoholic
3		liquor occurring during the preceding month. Payment of the tax
4		in the amount disclosed by the report shall accompany the
5		report or, (2) on or before the 15th day of each calendar
6		month, electronically file with the Department of Revenue, on
7		forms prescribed and furnished by the Department, an electronic
8		report in such form as may be required by the Department in
9		order to compute, and assure the accuracy of, the tax due on
10		all taxable sales and uses of alcoholic liquor occurring during
11		the preceding month. An electronic payment of the tax in the
12		amount disclosed by the report shall accompany the report. A
13		manufacturer or distributor who files an electronic report and
14		electronically pays the tax imposed pursuant to Section 8-1 to
15		the Department of Revenue on or before the 15th day of the
16		calendar month following the calendar month in which such
17		alcoholic liquor is sold or used by that manufacturer or
18		importing distributor other than in an authorized tax-free
19		manner shall pay to the Department the amount of the tax
20		imposed pursuant to Section 8-1, less a discount which is
21		allowed to reimburse the manufacturer or importing distributor
22		for the expenses incurred in keeping and maintaining records,
23		preparing and filing the electronic returns, remitting the tax,
24		and supplying data to the Department upon request.
25		The discount shall be in an amount as follows:
26		(1) For original returns due on or after January 1,

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1		2003 through September 30, 2003, the discount shall be
2		1.75% or $1,250 per return, whichever is less;
3		(2) For original returns due on or after October 1,
4		2003 through September 30, 2004, the discount shall be 2%
5		or $3,000 per return, whichever is less; and
6		(3) For original returns due on or after October 1,
7		2004, the discount shall be 2% or $2,000 per return,
8		whichever is less.
9		The Department may, if it deems it necessary in order to
10		insure the payment of the tax imposed by this Article, require
11		returns to be made more frequently than and covering periods of
12		less than a month. Such return shall contain such further
13		information as the Department may reasonably require.
14		It shall be presumed that all alcoholic liquors acquired or
15		made by any importing distributor or manufacturer have been
16		sold or used by him in this State and are the basis for the tax
17		imposed by this Article unless proven, to the satisfaction of
18		the Department, that such alcoholic liquors are (1) still in
19		the possession of such importing distributor or manufacturer,
20		or (2) prior to the termination of possession have been lost by
21		theft or through unintentional destruction, or (3) that such
22		alcoholic liquors are otherwise exempt from taxation under this
23		Act.
24		The Department may require any foreign importer to file
25		monthly information returns, by the 15th day of the month
26		following the month which any such return covers, if the

SB3095 Engrossed - 167 - LRB099 20651 RPS 45255 b
1		Department determines this to be necessary to the proper
2		performance of the Department's functions and duties under this
3		Act. Such return shall contain such information as the
4		Department may reasonably require.
5		Every manufacturer and importing distributor shall also
6		file, with the Department, a bond in an amount not less than
7		$1,000 and not to exceed $100,000 on a form to be approved by,
8		and with a surety or sureties satisfactory to, the Department.
9		Such bond shall be conditioned upon the manufacturer or
10		importing distributor paying to the Department all monies
11		becoming due from such manufacturer or importing distributor
12		under this Article. The Department shall fix the penalty of
13		such bond in each case, taking into consideration the amount of
14		alcoholic liquor expected to be sold and used by such
15		manufacturer or importing distributor, and the penalty fixed by
16		the Department shall be sufficient, in the Department's
17		opinion, to protect the State of Illinois against failure to
18		pay any amount due under this Article, but the amount of the
19		penalty fixed by the Department shall not exceed twice the
20		amount of tax liability of a monthly return, nor shall the
21		amount of such penalty be less than $1,000. The Department
22		shall notify the Commission of the Department's approval or
23		disapproval of any such manufacturer's or importing
24		distributor's bond, or of the termination or cancellation of
25		any such bond, or of the Department's direction to a
26		manufacturer or importing distributor that he must file

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1		additional bond in order to comply with this Section. The
2		Commission shall not issue a license to any applicant for a
3		manufacturer's or importing distributor's license unless the
4		Commission has received a notification from the Department
5		showing that such applicant has filed a satisfactory bond with
6		the Department hereunder and that such bond has been approved
7		by the Department. Failure by any licensed manufacturer or
8		importing distributor to keep a satisfactory bond in effect
9		with the Department or to furnish additional bond to the
10		Department, when required hereunder by the Department to do so,
11		shall be grounds for the revocation or suspension of such
12		manufacturer's or importing distributor's license by the
13		Commission. If a manufacturer or importing distributor fails to
14		pay any amount due under this Article, his bond with the
15		Department shall be deemed forfeited, and the Department may
16		institute a suit in its own name on such bond.
17		After notice and opportunity for a hearing the State
18		Commission may revoke or suspend the license of any
19		manufacturer or importing distributor who fails to comply with
20		the provisions of this Section. Notice of such hearing and the
21		time and place thereof shall be in writing and shall contain a
22		statement of the charges against the licensee. Such notice may
23		be given by United States registered or certified mail with
24		return receipt requested, addressed to the person concerned at
25		his last known address and shall be given not less than 7 days
26		prior to the date fixed for the hearing. An order revoking or

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1		suspending a license under the provisions of this Section may
2		be reviewed in the manner provided in Section 7-10 of this Act.
3		No new license shall be granted to a person whose license has
4		been revoked for a violation of this Section or, in case of
5		suspension, shall such suspension be terminated until he has
6		paid to the Department all taxes and penalties which he owes
7		the State under the provisions of this Act.
8		Every manufacturer or importing distributor who has, as
9		verified by the Department, continuously complied with the
10		conditions of the bond under this Act for a period of 2 years
11		shall be considered to be a prior continuous compliance
12		taxpayer. In determining the consecutive period of time for
13		qualification as a prior continuous compliance taxpayer, any
14		consecutive period of time of qualifying compliance
15		immediately prior to the effective date of this amendatory Act
16		of 1987 shall be credited to any manufacturer or importing
17		distributor.
18		A manufacturer or importing distributor that is a prior
19		continuous compliance taxpayer under this Section and becomes a
20		successor as the result of an acquisition, merger, or
21		consolidation of a manufacturer or importing distributor shall
22		be deemed to be a prior continuous compliance taxpayer with
23		respect to the acquired, merged, or consolidated entity.
24		Every prior continuous compliance taxpayer shall be exempt
25		from the bond requirements of this Act until the Department has
26		determined the taxpayer to be delinquent in the filing of any

SB3095 Engrossed - 170 - LRB099 20651 RPS 45255 b
1		return or deficient in the payment of any tax under this Act.
2		Any taxpayer who fails to pay an admitted or established
3		liability under this Act may also be required to post bond or
4		other acceptable security with the Department guaranteeing the
5		payment of such admitted or established liability.
6		The Department shall discharge any surety and shall release
7		and return any bond or security deposit assigned, pledged or
8		otherwise provided to it by a taxpayer under this Section
9		within 30 days after: (1) such taxpayer becomes a prior
10		continuous compliance taxpayer; or (2) such taxpayer has ceased
11		to collect receipts on which he is required to remit tax to the
12		Department, has filed a final tax return, and has paid to the
13		Department an amount sufficient to discharge his remaining tax
14		liability as determined by the Department under this Act.
15		(Source: P.A. 95-769, eff. 7-29-08.)
16		(235 ILCS 5/8-5) (from Ch. 43, par. 163a)
17		Sec. 8-5. As soon as practicable after any return is filed,
18		the Department shall examine such return and shall correct such
19		return according to its best judgment and information, which
20		return so corrected by the Department shall be prima facie
21		correct and shall be prima facie evidence of the correctness of
22		the amount of tax due, as shown therein. Instead of requiring
23		the licensee to file an amended return, the Department may
24		simply notify the licensee of the correction or corrections it
25		has made. Proof of such correction by the Department, or of the

SB3095 Engrossed - 171 - LRB099 20651 RPS 45255 b
1		determination of the amount of tax due as provided in Sections
2		8-4 and 8-10, may be made at any hearing before the Department
3		or in any legal proceeding by a reproduced copy of the
4		Department's record relating thereto in the name of the
5		Department under the certificate of the Director of Revenue.
6		Such reproduced copy shall, without further proof, be admitted
7		into evidence before the Department or in any legal proceeding
8		and shall be prima facie proof of the correctness of the amount
9		of tax due, as shown therein. If the return so corrected by the
10		Department discloses the sale or use, by a licensed
11		manufacturer or importing distributor, of alcoholic liquors as
12		to which the tax provided for in this Article should have been
13		paid, but has not been paid, in excess of the alcoholic liquors
14		reported as being taxable by the licensee, and as to which the
15		proper tax was paid the Department shall notify the licensee
16		that it shall issue the taxpayer a notice of tax liability for
17		the amount of tax claimed by the Department to be due, together
18		with penalties at the rates prescribed by Sections 3-3, 3-5 and
19		3-6 of the Uniform Penalty and Interest Act, which amount of
20		tax shall be equivalent to the amount of tax which, at the
21		prescribed rate per gallon, should have been paid with respect
22		to the alcoholic liquors disposed of in excess of those
23		reported as being taxable. In a case where no return has been
24		filed, the Department shall determine the amount of tax due
25		according to its best judgment and information and shall issue
26		the taxpayer a notice of tax liability for the amount of tax

SB3095 Engrossed - 172 - LRB099 20651 RPS 45255 b
1		claimed by the Department to be due as herein provided together
2		with penalties at the rates prescribed by Sections 3-3, 3-5 and
3		3-6 of the Uniform Penalty and Interest Act. If, in
4		administering the provisions of this Act, a comparison of a
5		licensee's return or returns with the books, records and
6		physical inventories of such licensee discloses a deficiency
7		which cannot be allocated by the Department to a particular
8		month or months, the Department shall issue the taxpayer a
9		notice of tax liability for the amount of tax claimed by the
10		Department to be due for a given period, but without any
11		obligation upon the Department to allocate such deficiency to
12		any particular month or months, together with penalties at the
13		rates prescribed by Sections 3-3, 3-5 and 3-6 of the Uniform
14		Penalty and Interest Act, which amount of tax shall be
15		equivalent to the amount of tax which, at the prescribed rate
16		per gallon, should have been paid with respect to the alcoholic
17		liquors disposed of in excess of those reported being taxable,
18		with the tax thereon having been paid under which circumstances
19		the aforesaid notice of tax liability shall be prima facie
20		correct and shall be prima facie evidence of the correctness of
21		the amount of tax due as shown therein; and proof of such
22		correctness may be made in accordance with, and the
23		admissibility of a reproduced copy of such notice of the
24		Department's notice of tax liability shall be governed by, all
25		the provisions of this Act applicable to corrected returns.
26		If the licensee dies or becomes a person under legal

SB3095 Engrossed - 173 - LRB099 20651 RPS 45255 b
1		disability at any time before the Department issues its notice
2		of tax liability, such notice shall be issued to the
3		administrator, executor or other legal representative, as
4		such, of the deceased or licensee who is under legal
5		disability.
6		If such licensee or legal representative, within 60 days
7		after such notice of tax liability, files a protest to such
8		notice of tax liability and requests a hearing thereon, the
9		Department shall give at least 7 days' notice to such licensee
10		or legal representative, as the case may be, of the time and
11		place fixed for such hearing and shall hold a hearing in
12		conformity with the provisions of this Act, and pursuant
13		thereto shall issue a final assessment to such licensee or
14		legal representative for the amount found to be due as a result
15		of such hearing.
16		If a protest to the notice of tax liability and a request
17		for a hearing thereon is not filed within 60 days after such
18		notice of tax liability, such notice of tax liability shall
19		become final without the necessity of a final assessment being
20		issued and shall be deemed to be a final assessment.
21		In case of failure to pay the tax, or any portion thereof,
22		or any penalty provided for herein, when due, the Department
23		may recover the amount of such tax, or portion thereof, or
24		penalty in a civil action; or if the licensee dies or becomes a
25		person under legal disability, by filing a claim therefor
26		against his or her estate; provided that no such claim shall be

SB3095 Engrossed - 174 - LRB099 20651 RPS 45255 b
1		filed against the estate of any deceased or of the licensee who
2		is under legal disability for any tax or penalty or portion
3		thereof except in the manner prescribed and within the time
4		limited by the Probate Act of 1975, as amended.
5		The collection of any such tax and penalty, or either, by
6		any means provided for herein, shall not be a bar to any
7		prosecution under this Act.
8		In addition to any other penalty provided for in this
9		Article, any licensee who fails to pay any tax within the time
10		required by this Article shall be subject to assessment of
11		penalties and interest at rates set forth in the Uniform
12		Penalty and Interest Act.
13		(Source: P.A. 87-205; 87-879.)
14		(235 ILCS 5/8-10) (from Ch. 43, par. 164)
15		Sec. 8-10. It is the duty of each manufacturer, importing
16		distributor and foreign importer to keep, at his licensed
17		address or place of business, complete and accurate records of
18		all sales or other dispositions of alcoholic liquor, and
19		complete and accurate records of all alcoholic liquor produced,
20		manufactured, compounded or imported, whether for himself or
21		for another, together with a physical inventory made as of the
22		close of each period for which a return is required, covering
23		all alcoholic liquors on hand. However, the Department of
24		Revenue may grant a an importing distributor a waiver to permit
25		such records to be kept at a central business location within

SB3095 Engrossed - 175 - LRB099 20651 RPS 45255 b
1		the State upon written request by the importing distributor.
2		The central business location shall be located at a licensed
3		importing distributor's premises. The Department of Revenue
4		may in its discretion prescribe reasonable and uniform methods
5		for keeping such records by manufacturers and importing
6		distributors and foreign importers.
7		In case of failure by manufacturers and importing
8		distributors to keep such records or to make them available to
9		the Department on demand, the Department shall determine the
10		amount of tax due according to its best judgment and
11		information, which amount so determined by the Department shall
12		be prima facie correct, and the Department's notice of tax
13		liability shall be given, and protest thereto and demand for a
14		hearing may be made and final assessments arrived at, in
15		accordance with the provisions of Section 8-5 hereof.
16		It is the duty of each manufacturer, importing distributor,
17		and foreign importer, who imports alcoholic liquor into the
18		State, and each non-resident dealer who ships alcoholic liquor
19		into the State, to mail to the Department one duplicate
20		invoice, together with a bill of lading, covering such shipment
21		and stating the quantity and, except in the case of alcoholic
22		liquor imported in bulk to be bottled by an authorized licensee
23		in this State using his own label and brand, the invoice shall
24		also state the brand, labels and size of containers.
25		It is the duty of each manufacturer, importing distributor,
26		and foreign importer, who imports spirits into the State, and

SB3095 Engrossed - 176 - LRB099 20651 RPS 45255 b
1		each non-resident dealer who ships spirits into the State, to
2		mail to the State Commission monthly a report containing a
3		compilation of the information required to be furnished to the
4		Department by the preceding paragraph, except that information
5		concerning spirits imported in bulk need not be included. The
6		report shall include all information mailed to the Department
7		during the preceding month.
8		All books and records, which manufacturers, importing
9		distributors, non-resident dealers, and foreign importers are
10		required by this Section to keep, shall be preserved for a
11		period of 3 years, unless the Department, in writing,
12		authorizes their destruction or disposal at an earlier date.
13		(Source: P.A. 98-394, eff. 8-16-13.)
14		(235 ILCS 5/9-13) (from Ch. 43, par. 176)
15		Sec. 9-13. It is unlawful to sell alcoholic liquor at
16		retail or to grant or issue, or cause to be granted or issued,
17		any license to sell alcoholic liquor at retail within the
18		limits of any political subdivision or precinct or at any
19		premises while the prohibition against such sales is in effect,
20		or to sell at retail alcoholic liquor other than beer
21		containing not more than 4% of alcohol by weight, or to grant
22		or issue or cause to be granted any license to sell such
23		alcoholic liquor at retail within the limits of such political
24		subdivision or precinct while the prohibition against such
25		sales is in effect, or to sell at retail alcoholic liquor

SB3095 Engrossed - 177 - LRB099 20651 RPS 45255 b
1		containing more than 4% of alcohol by weight except in the
2		original package and not for consumption on the premises, or to
3		grant or issue or cause to be granted or issued any license to
4		sell such alcoholic liquor at retail within the limits of such
5		political subdivision or precinct while the prohibition
6		against such sales is in effect. If any such license be granted
7		or issued in violation of this section, the license shall be
8		void. This section shall not prohibit the issuance of and
9		operation under a manufacturer's or distributor's or importing
10		distributor's license in accordance with law.
11		(Source: P.A. 86-861.)
12		(235 ILCS 5/10-1) (from Ch. 43, par. 183)
13		Sec. 10-1. Violations; penalties. Whereas a substantial
14		threat to the sound and careful control, regulation, and
15		taxation of the manufacture, sale, and distribution of
16		alcoholic liquors exists by virtue of individuals who
17		manufacture, import, distribute, or sell alcoholic liquors
18		within the State without having first obtained a valid license
19		to do so, and whereas such threat is especially serious along
20		the borders of this State, and whereas such threat requires
21		immediate correction by this Act, by active investigation and
22		prosecution by law enforcement officials and prosecutors, and
23		by prompt and strict enforcement through the courts of this
24		State to punish violators and to deter such conduct in the
25		future:

SB3095 Engrossed - 178 - LRB099 20651 RPS 45255 b
1		(a) Any person who manufactures, imports for distribution
2		or use, or distributes or sells alcoholic liquor at any place
3		within the State without having first obtained a valid license
4		to do so under the provisions of this Act shall be guilty of a
5		business offense and fined not more than $1,000 for the first
6		such offense and shall be guilty of a Class 4 felony for each
7		subsequent offense.
8		(b) (1) Any retailer, licensed in this State, who knowingly
9		causes to furnish, give, sell, or otherwise being within the
10		State, any alcoholic liquor destined to be used, distributed,
11		consumed or sold in another state, unless such alcoholic liquor
12		was received in this State by a duly licensed distributor, or
13		importing distributors shall have his license suspended for 7
14		days for the first offense and for the second offense, shall
15		have his license revoked by the Commission.
16		(2) In the event the Commission receives a certified copy
17		of a final order from a foreign jurisdiction that an Illinois
18		retail licensee has been found to have violated that foreign
19		jurisdiction's laws, rules, or regulations concerning the
20		importation of alcoholic liquor into that foreign
21		jurisdiction, the violation may be grounds for the Commission
22		to revoke, suspend, or refuse to issue or renew a license, to
23		impose a fine, or to take any additional action provided by
24		this Act with respect to the Illinois retail license or
25		licensee. Any such action on the part of the Commission shall
26		be in accordance with this Act and implementing rules.

SB3095 Engrossed - 179 - LRB099 20651 RPS 45255 b
1		For the purposes of paragraph (2): (i) "foreign
2		jurisdiction" means a state, territory, or possession of the
3		United States, the District of Columbia, or the Commonwealth of
4		Puerto Rico, and (ii) "final order" means an order or judgment
5		of a court or administrative body that determines the rights of
6		the parties respecting the subject matter of the proceeding,
7		that remains in full force and effect, and from which no appeal
8		can be taken.
9		(c) Any person who shall make any false statement or
10		otherwise violates any of the provisions of this Act in
11		obtaining any license hereunder, or who having obtained a
12		license hereunder shall violate any of the provisions of this
13		Act with respect to the manufacture, possession, distribution
14		or sale of alcoholic liquor, or with respect to the maintenance
15		of the licensed premises, or shall violate any other provision
16		of this Act, shall for a first offense be guilty of a petty
17		offense and fined not more than $500, and for a second or
18		subsequent offense shall be guilty of a Class B misdemeanor.
19		(c-5) Any owner of an establishment that serves alcohol on
20		its premises, if more than 50% of the establishment's gross
21		receipts within the prior 3 months is from the sale of alcohol,
22		who knowingly fails to prohibit concealed firearms on its
23		premises or who knowingly makes a false statement or record to
24		avoid the prohibition of concealed firearms on its premises
25		under the Firearm Concealed Carry Act shall be guilty of a
26		business offense with a fine up to $5,000.

SB3095 Engrossed - 180 - LRB099 20651 RPS 45255 b
1		(d) Each day any person engages in business as a
2		manufacturer, foreign importer, importing distributor,
3		distributor, or retailer in violation of the provisions of this
4		Act shall constitute a separate offense.
5		(e) Any person, under the age of 21 years who, for the
6		purpose of buying, accepting or receiving alcoholic liquor from
7		a licensee, represents that he is 21 years of age or over shall
8		be guilty of a Class A misdemeanor.
9		(f) In addition to the penalties herein provided, any
10		person licensed as a wine-maker in either class who
11		manufactures more wine than authorized by his license shall be
12		guilty of a business offense and shall be fined $1 for each
13		gallon so manufactured.
14		(g) A person shall be exempt from prosecution for a
15		violation of this Act if he is a peace officer in the
16		enforcement of the criminal laws and such activity is approved
17		in writing by one of the following:
18		(1) In all counties, the respective State's Attorney;
19		(2) The Director of State Police under Section 2605-10,
20		2605-15, 2605-75, 2605-100, 2605-105, 2605-110, 2605-115,
21		2605-120, 2605-130, 2605-140, 2605-190, 2605-200,
22		2605-205, 2605-210, 2605-215, 2605-250, 2605-275,
23		2605-300, 2605-305, 2605-315, 2605-325, 2605-335,
24		2605-340, 2605-350, 2605-355, 2605-360, 2605-365,
25		2605-375, 2605-390, 2605-400, 2605-405, 2605-420,
26		2605-430, 2605-435, 2605-500, 2605-525, or 2605-550 of the

SB3095 Engrossed - 181 - LRB099 20651 RPS 45255 b
1		Department of State Police Law (20 ILCS 2605/2605-10,
2		2605/2605-15, 2605/2605-75, 2605/2605-100, 2605/2605-105,
3		2605/2605-110, 2605/2605-115, 2605/2605-120,
4		2605/2605-130, 2605/2605-140, 2605/2605-190,
5		2605/2605-200, 2605/2605-205, 2605/2605-210,
6		2605/2605-215, 2605/2605-250, 2605/2605-275,
7		2605/2605-300, 2605/2605-305, 2605/2605-315,
8		2605/2605-325, 2605/2605-335, 2605/2605-340,
9		2605/2605-350, 2605/2605-355, 2605/2605-360,
10		2605/2605-365, 2605/2605-375, 2605/2605-390,
11		2605/2605-400, 2605/2605-405, 2605/2605-420,
12		2605/2605-430, 2605/2605-435, 2605/2605-500,
13		2605/2605-525, or 2605/2605-550); or
14		(3) In cities over 1,000,000, the Superintendent of
15		Police.
16		(Source: P.A. 98-63, eff. 7-9-13.)
17		(235 ILCS 5/10-7.1) (from Ch. 43, par. 189.1)
18		Sec. 10-7.1. The Commission, upon receipt of a complaint or
19		upon having knowledge that any person is engaged in the
20		business as a manufacturer, importing distributor,
21		distributor, or retailer without a license or valid license,
22		shall notify the Department of Revenue and the local liquor
23		authority, and file a complaint with the State's Attorney's
24		Office of the County where the incident occurred or initiate an
25		investigation with the appropriate law enforcement officials.

SB3095 Engrossed - 182 - LRB099 20651 RPS 45255 b
1		(Source: P.A. 90-739, eff. 8-13-98.)
2		(235 ILCS 5/1-3.16 rep.)
3		Section 35. The Liquor Control Act of 1934 is amended by
4		repealing Section 1-3.16.