Castro legislation aims to support craft distillers, small liquor licensees

SPRINGFIELD - State Senator Cristina Castro led a measure through the Senate that would make a temporary "cocktails to-go" state law permanent and create new rules to allow more small Illinois distilleries to self-distribute spirits.

"By giving bars, restaurants and craft distilleries the ability to grow and reach more customers, we're supporting small, independent producers and retailers across Illinois," said Castro (D-Elgin). "We should be making it easier, not harder, to operate and grow a business in our state."

The measure would create a class 3 craft distiller's license, which would allow the distillery to manufacture up to 100,000 gallons of spirits annually. These licensees would then be able to apply for the ability to self-distribute up to 2,500 gallons annually.

The legislation would also make permanent a temporary law permitting bars and restaurants to sell cocktails and mixed drinks for delivery and curbside pickup - often referred to as "cocktails to-go."

To ease barriers for small businesses seeking a liquor license, the measure would also eliminate the requirement for a business applying for a liquor license to provide a tax bond during the application process. On average, a tax bond costs small craft manufacturers or distributors $500 to obtain from a financial institution, creating another monetary barrier for those seeking to start or expand their business.

Senate Bill 618 passed the Senate with bipartisan support on Wednesday.