98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB5584

 

Introduced , by Rep. Frank J. Mautino

 

SYNOPSIS AS INTRODUCED:
 
235 ILCS 5/2-1  from Ch. 43, par. 96
235 ILCS 5/6-5  from Ch. 43, par. 122
235 ILCS 5/6-6  from Ch. 43, par. 123

    Amends the Liquor Control Act of 1934. Provides that the provisions of the Act that prohibit liquor distributors and liquor manufacturers from giving anything of value to a person who has a retailer's license do not authorize the Liquor Control Commission to regulate beverage products that contain one-half of one per cent, or less, of alcohol by volume. Provides that the provisions of the Act shall not apply to any liquid or solid containing one-half of one per cent, or less, of alcohol by volume.


LRB098 17698 RPS 52813 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5584LRB098 17698 RPS 52813 b

1    AN ACT concerning liquor.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Liquor Control Act of 1934 is amended by
5changing Sections 2-1, 6-5, and 6-6 as follows:
 
6    (235 ILCS 5/2-1)  (from Ch. 43, par. 96)
7    Sec. 2-1. No person shall manufacture, bottle, blend, sell,
8barter, transport, transfer into this State from a point
9outside this State, deliver, furnish or possess any alcoholic
10liquor for beverage purposes, unless such person has been
11issued a license by the Commission or except as permitted by
12Section 6-29 of this Act or except as otherwise specifically
13provided in this Act; provided, however, nothing herein
14contained shall prevent the possession and transportation of
15alcoholic liquor by the possessor for the personal use of the
16possessor, his family and guests, nor prevent the making of
17wine, cider or other alcoholic liquor by a person from fruits,
18vegetables or grains, or the products thereof, by simple
19fermentation and without distillation, if it is made solely for
20the use of the maker, his family and his guests; and provided
21further that nothing herein contained shall prevent any duly
22licensed practicing physician or dentist from possessing or
23using alcoholic liquor in the strict practice of his

 

 

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1profession, or any hospital or other institution caring for
2sick and diseased persons, from possessing and using alcoholic
3liquor for the treatment of bona fide patients of such hospital
4or other institution; and provided further that any drug store
5employing a licensed pharmacist may possess and use alcoholic
6liquors in the concoction of prescriptions of duly licensed
7physicians; and provided further, that the possession and
8dispensation of wine by an authorized representative of any
9church for the purpose of conducting any bona fide rite or
10religious ceremony conducted by such church shall not be
11prohibited by this Act.
12    The provisions of this Act shall not apply to any liquid or
13solid containing one-half of one per cent, or less, of alcohol
14by volume.
15(Source: P.A. 90-739, eff. 8-13-98.)
 
16    (235 ILCS 5/6-5)  (from Ch. 43, par. 122)
17    Sec. 6-5. Except as otherwise provided in this Section, it
18is unlawful for any person having a retailer's license or any
19officer, associate, member, representative or agent of such
20licensee to accept, receive or borrow money, or anything else
21of value, or accept or receive credit (other than merchandising
22credit in the ordinary course of business for a period not to
23exceed 30 days) directly or indirectly from any manufacturer,
24importing distributor or distributor of alcoholic liquor, or
25from any person connected with or in any way representing, or

 

 

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

 

 

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1importing distributor shall knowingly grant or extend credit,
2sell, furnish or supply alcoholic liquors to any such
3delinquent retail licensee; provided that the purchase price of
4all beer sold to a retail licensee shall be paid by the retail
5licensee in cash on or before delivery of the beer, and unless
6the purchase price payable by a retail licensee for beer sold
7to him in returnable bottles shall expressly include a charge
8for the bottles and cases, the retail licensee shall, on or
9before delivery of such beer, pay the seller in cash a deposit
10in an amount not less than the deposit required to be paid by
11the distributor to the brewer; but where the brewer sells
12direct to the retailer, the deposit shall be an amount no less
13than that required by the brewer from his own distributors; and
14provided further, that in no instance shall this deposit be
15less than 50 cents for each case of beer in pint or smaller
16bottles and 60 cents for each case of beer in quart or
17half-gallon bottles; and provided further, that the purchase
18price of all beer sold to an importing distributor or
19distributor shall be paid by such importing distributor or
20distributor in cash on or before the 15th day (Sundays and
21holidays excepted) after delivery of such beer to such
22purchaser; and unless the purchase price payable by such
23importing distributor or distributor for beer sold in
24returnable bottles and cases shall expressly include a charge
25for the bottles and cases, such importing distributor or
26distributor shall, on or before the 15th day (Sundays and

 

 

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1holidays excepted) after delivery of such beer to such
2purchaser, pay the seller in cash a required amount as a
3deposit to assure the return of such bottles and cases. Nothing
4herein contained shall prohibit any licensee from crediting or
5refunding to a purchaser the actual amount of money paid for
6bottles, cases, kegs or barrels returned by the purchaser to
7the seller or paid by the purchaser as a deposit on bottles,
8cases, kegs or barrels, when such containers or packages are
9returned to the seller. Nothing herein contained shall prohibit
10any manufacturer, importing distributor or distributor from
11extending usual and customary credit for alcoholic liquor sold
12to customers or purchasers who live in or maintain places of
13business outside of this State when such alcoholic liquor is
14actually transported and delivered to such points outside of
15this State.
16    No right of action shall exist for the collection of any
17claim based upon credit extended to a distributor, importing
18distributor or retail licensee contrary to the provisions of
19this Section.
20    Every manufacturer, importing distributor and distributor
21shall submit or cause to be submitted, to the State Commission,
22in triplicate, not later than Thursday of each calendar week, a
23verified written list of the names and respective addresses of
24each retail licensee purchasing spirits or wine from such
25manufacturer, importing distributor or distributor who, on the
26first business day of that calendar week, was delinquent beyond

 

 

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

 

 

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1Sundays and holidays to and including the 30th successive day.
2    In addition to other methods allowed by law, payment by
3check during the period for which merchandising credit may be
4extended under the provisions of this Section shall be
5considered payment. All checks received in payment for
6alcoholic liquor shall be promptly deposited for collection. A
7post dated check or a check dishonored on presentation for
8payment shall not be deemed payment.
9    A retail licensee shall not be deemed to be delinquent in
10payment for any alleged sale to him of alcoholic liquor when
11there exists a bona fide dispute between such retailer and a
12manufacturer, importing distributor or distributor with
13respect to the amount of indebtedness existing because of such
14alleged sale.
15    A delinquent retail licensee who engages in the retail
16liquor business at 2 or more locations shall be deemed to be
17delinquent with respect to each such location.
18    The license of any person who violates any provision of
19this Section shall be subject to suspension or revocation in
20the manner provided by this Act.
21    If any part or provision of this Article or the application
22thereof to any person or circumstances shall be adjudged
23invalid by a court of competent jurisdiction, such judgment
24shall be confined by its operation to the controversy in which
25it was mentioned and shall not affect or invalidate the
26remainder of this Article or the application thereof to any

 

 

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1other person or circumstance and to this and the provisions of
2this Article are declared severable.
3    This Section does not authorize the State Commission to
4regulate beverage products that contain one-half of one per
5cent, or less, of alcohol by volume.
6(Source: P.A. 83-762.)
 
7    (235 ILCS 5/6-6)  (from Ch. 43, par. 123)
8    Sec. 6-6. Except as otherwise provided in this Act no
9manufacturer or distributor or importing distributor shall,
10directly, or indirectly, sell, supply, furnish, give or pay
11for, or loan or lease, any furnishing, fixture or equipment on
12the premises of a place of business of another licensee
13authorized under this Act to sell alcoholic liquor at retail,
14either for consumption on or off the premises, nor shall he or
15she, directly or indirectly, pay for any such license, or
16advance, furnish, lend or give money for payment of such
17license, or purchase or become the owner of any note, mortgage,
18or other evidence of indebtedness of such licensee or any form
19of security therefor, nor shall such manufacturer, or
20distributor, or importing distributor, directly or indirectly,
21be interested in the ownership, conduct or operation of the
22business of any licensee authorized to sell alcoholic liquor at
23retail, nor shall any manufacturer, or distributor, or
24importing distributor be interested directly or indirectly or
25as owner or part owner of said premises or as lessee or lessor

 

 

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

 

 

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

 

 

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

 

 

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

 

 

HB5584- 13 -LRB098 17698 RPS 52813 b

1    that is a part of the retailer's licensed premises.
2    A "cost adjustment factor" shall be used to periodically
3update the dollar limitations prescribed in subparts (i),
4(iii), and (iv). The Commission shall establish the adjusted
5dollar limitation on an annual basis beginning in January,
61997. The term "cost adjustment factor" means a percentage
7equal to the change in the Bureau of Labor Statistics Consumer
8Price Index or 5%, whichever is greater. The restrictions
9contained in this Section 6-6 do not apply to signs, or
10promotional or advertising materials furnished by
11manufacturers, distributors or importing distributors to a
12government owned or operated facility holding a retailer's
13license as described in Section 6-5.
14    No distributor or importing distributor shall directly or
15indirectly or through a subsidiary or affiliate, or by any
16officer, director or firm of such manufacturer, distributor or
17importing distributor, furnish, give, lend or rent, install,
18repair or maintain, to or for any retail licensee in this
19State, any signs or inside advertising materials described in
20subparts (i), (ii), (iii), or (iv) of this Section except as
21the agent for or on behalf of a manufacturer, provided that the
22total cost of any signs and inside advertising materials
23including but not limited to labor, erection, installation and
24permit fees shall be paid by the manufacturer whose product or
25products said signs and inside advertising materials advertise
26and except as follows:

 

 

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1    A distributor or importing distributor may purchase from or
2enter into a written agreement with a manufacturer or a
3manufacturer's designated supplier and such manufacturer or
4the manufacturer's designated supplier may sell or enter into
5an agreement to sell to a distributor or importing distributor
6permitted signs and advertising materials described in
7subparts (ii), (iii), or (iv) of this Section for the purpose
8of furnishing, giving, lending, renting, installing,
9repairing, or maintaining such signs or advertising materials
10to or for any retail licensee in this State. Any purchase by a
11distributor or importing distributor from a manufacturer or a
12manufacturer's designated supplier shall be voluntary and the
13manufacturer may not require the distributor or the importing
14distributor to purchase signs or advertising materials from the
15manufacturer or the manufacturer's designated supplier.
16    A distributor or importing distributor shall be deemed the
17owner of such signs or advertising materials purchased from a
18manufacturer or a manufacturer's designated supplier.
19    The provisions of Public Act 90-373 concerning signs or
20advertising materials delivered by a manufacturer to a
21distributor or importing distributor shall apply only to signs
22or advertising materials delivered on or after August 14, 1997.
23    No person engaged in the business of manufacturing,
24importing or distributing alcoholic liquors shall, directly or
25indirectly, pay for, or advance, furnish, or lend money for the
26payment of any license for another. Any licensee who shall

 

 

HB5584- 15 -LRB098 17698 RPS 52813 b

1permit or assent, or be a party in any way to any violation or
2infringement of the provisions of this Section shall be deemed
3guilty of a violation of this Act, and any money loaned
4contrary to a provision of this Act shall not be recovered
5back, or any note, mortgage or other evidence of indebtedness,
6or security, or any lease or contract obtained or made contrary
7to this Act shall be unenforceable and void.
8    This Section shall not apply to airplane licensees
9exercising powers provided in paragraph (i) of Section 5-1 of
10this Act.
11    This Section does not authorize the State Commission to
12regulate beverage products that contain one-half of one per
13cent, or less, of alcohol by volume.
14(Source: P.A. 89-238, eff. 8-4-95; 89-529, eff. 7-19-96;
1590-373, eff. 8-14-97; 90-432, eff. 1-1-98; 90-655, eff.
167-30-98; revised 9-24-13.)