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(235 ILCS 5/6-9.15) Sec. 6-9.15. Quantity discounting terms for wine or spirits cooperative purchase agreements. (a) All wine or spirits quantity discount programs offered to consumption off the premises retailers must be offered to all consumption off the premises cooperative groups and cooperative agents, and all quantity discount programs offered to consumption on the premises retailers shall be offered to all consumption on the premises cooperative groups and cooperative agents. Quantity discount programs shall: (1) be open and available for acceptance for 7 |
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(2) be designed and implemented to produce product
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| volume growth with retail licensees;
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(3) be based on the volume of product purchased;
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| however, discounts may include price reductions, cash, and credits, and no-charge wine or spirits products may be given instead of a discount;
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(4) be documented on related sales invoices or
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(5) not require a retail licensee to take and
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| dispose of any quota of wine or spirits; however, bona fide quantity discounts shall not be deemed to be quota sales; and
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(6) not require a retail licensee to purchase one
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| product in order to purchase another; this includes combination sales if one or more products may be purchased only in combination with other products and not individually.
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(b) A distributor or importing distributor that makes quantity discount sales to participating members of a cooperative purchase group shall issue customary invoices to each participating retail licensee itemizing the wine or spirit sold and delivered as part of a quantity discount program to each participating retail licensee.
(c) If a distributor or importing distributor offers a quantity discount for wine or spirits, excluding any product fermented with malt or any substitute for malt, cooperative purchase groups shall purchase a minimum of 250 cases in each quantity discount program. Each individual participating member of a cooperative purchase group purchasing product through a quantity discount program may be required to purchase the following minimum amounts:
(1) 2% of cases of any quantity discount program of
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(2) 1.5% of cases of any quantity discount program
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| of at least 501 and not more than 2,000 cases.
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(3) 1% of cases of any quantity discount program of
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(d) The cooperative agent shall place each cooperative purchase order under the name of the cooperative purchase group and shall identify each participating retail member involved with the purchase, the quantity of product purchased, the price attributable to each retailer member's purchase, and a requested delivery date. A retail licensee may make purchases through a cooperative purchasing group or independently of such group. Nothing in this Section shall be construed to prohibit retail licensees from making purchases separate and apart from any cooperative purchasing group.
(e) Each distributor or importing distributor shall separately invoice each participating cooperative purchase group member for the purchase made on behalf of such participating member.
(f) A cooperative purchasing group shall maintain the records of each cooperative purchase order placed for 90 days. The records shall include:
(1) the date the cooperative purchasing group order
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| was placed and the date of any amendments to the order;
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(2) the distributor or importing distributor with
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| which the cooperative purchasing group placed the order;
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(3) the names and license numbers of each
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| cooperative purchasing group member participating in the order;
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(4) the price discounts and net price of all wine
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| or spirits ordered by each cooperative purchase group member; and
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(5) the requested delivery date for the order.
(g) A cooperative purchase group is subject to the books and records requirements of Section 6-10 and subsection (e) of 11 Ill. Adm. Code 100.130.
(h) A cooperative purchasing group shall retain a surety bond at all times for no less than $250,000. If a cooperative purchasing group member is delinquent in payment pursuant to Section 6-5, the surety shall immediately pay the importing distributor or distributor the delinquent amount. The surety bond required by this Section may be acquired from a company, agent, or broker of the cooperative purchase group's choice. If the surety bond does not cure the indebtedness, the 30-day merchandising credit requirements of Section 6-5 shall apply jointly to each cooperative purchasing group until the indebtedness is cured. The cooperative purchasing group is responsible for all costs and fees related to the surety bond.
(i) Any licensee that fails to comply with the terms and conditions of this Section may be deemed to be in violation of this Act.
(j) Nothing in this Section shall apply to quantity discount programs offered for any product fermented with malt or any substitute for malt. Nothing in this Section shall be construed to prohibit, limit, or interfere with quantity discount, credit, or rebate programs offered for any product fermented with malt or any substitute for malt.
(Source: P.A. 102-442, eff. 8-20-21; 103-154, eff. 6-30-23.)
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