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SB 1624

LIQUOR-BOND REQUIREMENT

104th Regular Session Introduced by Cristina Castro

Liquor bond changes: first-time manufacturers/importers exempt from DOR bond; renewals may require a bond if tax exceeds $50,000, and ILCC cannot renew without an approved bond.

Rule 3-9(a) / Re-referred to Assignments
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Bill Summary · SB 1624

SB 1624 — "Liquor — Bond Requirement" (Summary)

Status: Rule 3‑9(a) / Re‑referred to Assignments (introduced Feb 25, 2025)

This bill amends the Liquor Control Act to change which manufacturers and importing distributors must post a bond with the Department of Revenue and adjusts the agency/commission conditions tied to that bond.

Main purpose

To modify the bond-filing requirements that secure payment of liquor excise taxes by manufacturers and importing distributors, and to clarify the role of the Department of Revenue and the Illinois Liquor Control Commission (ILCC) in license issuance and renewal when a bond is missing or unapproved.

Key provisions

  • Bond filing exemption for first‑time applicants:
    • A manufacturer or importing distributor applying for a manufacturer's or importing distributor's license for the first time is exempted from the Department bond‑filing requirement.
  • Bond requirement scope and amounts:
    • Except as noted above, manufacturers and importing distributors must file a bond with the Department of Revenue.
    • Bond amounts remain subject to the statutory floor and ceiling: not less than $1,000 and not exceeding $100,000 (form and surety subject to Department approval).
  • Renewal condition tied to tax liability:
    • A bond may be required as a condition to renew a license for subsequent annual terms if a manufacturer or importing distributor exceeds $50,000 in tax liability in the preceding period.
  • ILCC authority tied to Department notification:
    • The ILCC shall not renew a license if it has received a Department of Revenue notification that the licensee is required to file a bond and has not filed a satisfactory bond that the Department has approved.
    • The bill removes prior language that made initial issuance contingent on the ILCC having received Department notification that a satisfactory bond had been filed and approved (i.e., issuance no longer explicitly blocked by lack of Department notification).

Who or what is affected

  • Primary: manufacturers and importing distributors of alcoholic liquor doing business in the state.
  • State agencies: Illinois Department of Revenue (responsible for bond review/approval and notifications) and the Illinois Liquor Control Commission (license issuance/renewal actions).
  • Indirect: wholesalers/retailers potentially affected by compliance and tax‑collection enforcement changes.

Procedural / timeline aspects

  • Introduced in 2025; current status listed as Rule 3‑9(a) / Re‑referred to Assignments (per provided legislative action).
  • No effective date specified in the provided text; effect would follow standard enactment and any specified effective-date language.

Potential impacts / considerations

  • Reduces an upfront licensing barrier for first‑time manufacturers/importing distributors by exempting them from immediate bond posting.
  • Provides the Department a tool (bond requirement on renewal) to secure tax compliance for entities that accumulate larger tax liabilities (over $50,000).
  • Strengthens enforcement leverage on renewals (ILCC may refuse renewal upon Department notification), while reducing an explicit pre‑issuance barrier tied to Department notification.
  • Administrative coordination between the Department of Revenue and the ILCC will be important to implement the notification/renewal provisions effectively.

Compiled from official sources — confirm details with the bill’s official record.

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