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HB 3694

Relating to student athletes; and declaring an emergency.

2025 Regular Session Introduced by Tom Andersen and 3 co-sponsors

Creates a Class 3 craft distiller license (≤100k gal/yr) and allows direct-to-consumer shipping, limited on-site sales, and spirits showcases to expand craft distiller access.

Chapter 448, (2025 Laws): Effective date June 26, 2025.
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Bill Summary · HB 3694

Summary — HB 3694 (Liquor — Distilleries)

Status: Introduced Feb 18, 2025 (Rep. Kevin John Olickal). Passed the Illinois House on 5/16/2025; received and read in the Senate and referred to the Senate Criminal Justice committee on 5/19/2025. Added co-sponsors include Rep. Maura Hirschauer.

Purpose

HB 3694 amends the Illinois Liquor Control Act of 1934 to create new license types and event permits for distillers, expand direct-to-consumer shipping, and authorize limited on-site retail sales and transfers of spirits for tasting/showcase events. The bill aims to modernize the regulatory framework for craft distilleries and distributors.

Key provisions

  • Creates a new license category: Class 3 craft distiller.

    • Defined as a distiller (or non-resident dealer) that manufactures no more than 100,000 gallons of spirits per year.
    • Permits sales from the class 3 craft distillery premises (in-state or out-of-state) to retail licensees, class 3 brewers, and other class 3 craft distillers when statutory requirements are met.
    • Authorizes self-distribution by class 3 craft distillers subject to specified requirements and limits (details to be set in statute/rules).

  • Establishes a distillery shipper's license.

    • Allows persons holding an Illinois distiller, craft distiller, class 1 or 2 or 3 craft distiller license, or those licensed to make spirits under another state's law, to ship spirits directly to Illinois residents who are 21 years or older for personal use (not for resale).

  • Creates a spirits showcase permit for limited off‑site transfers/sales at designated events.

    • Allows an Illinois-licensed distributor (and, for class 3 craft distillers, only their own manufactured spirits) to transfer inventory from licensed premises to a specified event site.
    • Permits retail sale or offering for sale at the showcase location for on- or off-premises consumption, but not for resale.
    • Limits sales to non-licensee consumers to no more than 156 fluid ounces of spirits per person at the showcase location.

  • Administrative and regulatory matters:

    • Adds new statutory definitions and makes conforming changes in the Liquor Control Act.
    • Addresses licensure applications, fees, recordkeeping, and requirements around shipping and delivery.
    • Preempts home‑rule powers, limiting local governments from imposing different rules on these activities.

Who is affected

  • Craft distillers (particularly small/medium producers under the 100,000 gal cap)
  • Out‑of‑state distillers seeking to ship to Illinois consumers
  • Illinois distributors and retail licensees participating in showcases or receiving direct shipments
  • Consumers (adults 21+) who may receive direct-to-consumer shipments or purchase at authorized showcases
  • Local governments (preemption clause reduces local regulatory flexibility)

Procedural/timeline notes

  • Introduced in the House (2/18/2025); passed the House on 5/16/2025.
  • Transmitted to the Senate and referred to the Senate Criminal Justice Committee (read 1st time 5/19/2025).
  • Further rulemaking and detailed requirements (fees, recordkeeping, shipping standards) would be established in statutory text and administrative rules if enacted.

Considerations

  • The bill expands market access for craft distillers and direct‑to‑consumer sales, but implementation details (licensing fees, reporting, delivery safeguards, and enforcement) will determine practical impact.
  • Preemption of home-rule authority centralizes regulation at the state level and could affect local control over alcohol events and sales.

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

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