State of Illinois
90th General Assembly
Legislation

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[ Engrossed ][ Enrolled ][ House Amendment 001 ]
[ Senate Amendment 001 ]

90_HB0903

      235 ILCS 5/6-6            from Ch. 43, par. 123
          Amends the Liquor Control Act of 1934.  Provides  that  a
      manufacturer  and  a distributor or importing distributor may
      enter into a written agreement for the manufacturer  to  sell
      to  the distributor or importing distributor certain signs or
      inside advertising materials. Effective immediately.
                                                     LRB9000875LDdv
                                               LRB9000875LDdv
 1        AN ACT to  amend  the  Liquor  Control  Act  of  1934  by
 2    changing Section 6-6.
 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:
 5        Section 5.  The Liquor Control Act of 1934 is amended  by
 6    changing Section 6-6 as follows:
 7        (235 ILCS 5/6-6) (from Ch. 43, par. 123)
 8        Sec.  6-6.   Except  as otherwise provided in this Act no
 9    manufacturer or distributor or importing  distributor  shall,
10    directly,  or  indirectly, sell, supply, furnish, give or pay
11    for, or loan or lease, any furnishing, fixture  or  equipment
12    on  the  premises  of a place of business of another licensee
13    authorized under this Act to sell alcoholic liquor at retail,
14    either for consumption on or off the premises, nor shall  he,
15    directly or indirectly, pay for any such license, or advance,
16    furnish,  lend  or give money for payment of such license, or
17    purchase or become the owner of any note, mortgage, or  other
18    evidence  of  indebtedness  of  such  licensee or any form of
19    security  therefor,   nor   shall   such   manufacturer,   or
20    distributor,    or   importing   distributor,   directly   or
21    indirectly,  be  interested  in  the  ownership,  conduct  or
22    operation of the business of any licensee authorized to  sell
23    alcoholic  liquor  at  retail, nor shall any manufacturer, or
24    distributor, or importing distributor be interested  directly
25    or  indirectly  or as owner or part owner of said premises or
26    as lessee or lessor  thereof,  in  any  premises  upon  which
27    alcoholic liquor is sold at retail.
28        No  manufacturer  or distributor or importing distributor
29    shall, directly or indirectly  or  through  a  subsidiary  or
30    affiliate,  or  by  any  officer,  director  or  firm of such
31    manufacturer, distributor or importing distributor,  furnish,
                            -2-                LRB9000875LDdv
 1    give,  lend  or  rent, install, repair or maintain, to or for
 2    any retail licensee  in  this  State,  any  signs  or  inside
 3    advertising  materials except as provided in this Section and
 4    Section 6-5. With respect to retail licensees, other than any
 5    government owned or  operated  auditorium,  exhibition  hall,
 6    recreation  facility  or  other  similar  facility  holding a
 7    retailer's  license  as   described   in   Section   6-5,   a
 8    manufacturer,   distributor,  or  importing  distributor  may
 9    furnish, give, lend or rent and erect,  install,  repair  and
10    maintain  to  or  for any retail licensee, for use at any one
11    time in or about or in connection with a retail establishment
12    on which the products of  the  manufacturer,  distributor  or
13    importing  distributor  are  sold,  the  following  signs and
14    inside advertising materials as authorized in  subparts  (i),
15    (ii), (iii), and (iv):
16             (i)  Permanent outside signs shall be limited to one
17        outside  sign,  per brand, in place and in use at any one
18        time, costing not more than $893, exclusive of  erection,
19        installation,  repair  and  maintenance costs, and permit
20        fees and shall bear only the manufacturer's  name,  brand
21        name,  trade name, slogans, markings, trademark, or other
22        symbols commonly associated with and  generally  used  in
23        identifying the product.
24             (ii)  Temporary  outside  signs  shall be limited to
25        one  temporary  outside  sign  per  brand.   Examples  of
26        temporary outside signs  are  banners,  flags,  pennants,
27        streamers,   and   other   items   of   a  temporary  and
28        non-permanent nature.  Each temporary outside  sign  must
29        include  the manufacturer's name, brand name, trade name,
30        slogans, markings, trademark, or  other  symbol  commonly
31        associated  with  and  generally  used in identifying the
32        product.  Temporary outside signs may also  include,  for
33        example,  the product, price, packaging, date or dates of
34        a promotion and an announcement of  a  retail  licensee's
                            -3-                LRB9000875LDdv
 1        specific  sponsored  event, if the temporary outside sign
 2        is intended to promote a product, and provided  that  the
 3        announcement  of  the  retail  licensee's  event  and the
 4        product  promotion  are  held  simultaneously.   However,
 5        temporary outside signs may not include  names,  slogans,
 6        markings,  or logos that relate to the retailer.  Nothing
 7        in this subpart (ii)  shall  prohibit  a  distributor  or
 8        importing  distributor  from bearing the cost of creating
 9        or printing a  temporary  outside  sign  for  the  retail
10        licensee's  specific sponsored event  or from bearing the
11        cost of creating or  printing  a  temporary  sign  for  a
12        retail   licensee   containing,  for  example,  community
13        goodwill    expressions,    regional    sporting    event
14        announcements, or seasonal messages,  provided  that  the
15        primary  purpose  of  the  temporary  outside  sign is to
16        highlight,  promote,  or  advertise  the  product.     In
17        addition,   temporary   outside  signs  provided  by  the
18        manufacturer to the distributor or importing  distributor
19        may also include, for example, subject to the limitations
20        of    this   Section,   preprinted   community   goodwill
21        expressions,  sporting  event   announcements,   seasonal
22        messages,  and  manufacturer  promotional  announcements.
23        However, a distributor or importing distributor shall not
24        bear the cost of such manufacturer preprinted signs.
25             (iii)  Permanent  inside signs, whether visible from
26        the outside or the inside of the premises,  include,  for
27        example,  neons,  illuminated signs, clocks, table lamps,
28        mirrors, tap  handles,  decalcomanias,  window  painting,
29        window  trim,  and  spirits or wine lists and menus.  All
30        permanent inside signs in place and in  use  at  any  one
31        time  shall cost in the aggregate not more than $2000 per
32        manufacturer.   A  permanent inside sign must include the
33        manufacturer's name, brand  name,  trade  name,  slogans,
34        markings,  trademark, or other symbol commonly associated
                            -4-                LRB9000875LDdv
 1        with and  generally  used  in  identifying  the  product.
 2        However,  permanent  inside  signs may not include names,
 3        slogans, markings, or logos that relate to the  retailer.
 4        For  the  purpose  of  this  subpart (iii), all permanent
 5        inside signs may be displayed in an adjacent courtyard or
 6        patio commonly referred to as a "beer garden" that  is  a
 7        part of the retailer's licensed premises.
 8             (iv)  Temporary  inside  signs  shall   include, for
 9        example,  lighted  chalk  boards,  acrylic   table   tent
10        beverage  or  hors d'oeuvre list holders, banners, flags,
11        pennants, streamers,  and  inside  advertising  materials
12        such  as  posters, placards, bowling sheets, table tents,
13        inserts for acrylic table tent beverage or hors  d'oeuvre
14        list  holders,  sports  schedules,  or similar printed or
15        illustrated materials; however, such items, for  example,
16        as coasters, trays, napkins, and cups may not be provided
17        to  retailers.  All  temporary  inside  signs  and inside
18        advertising materials in place and in use at any one time
19        shall cost in  the  aggregate  not  more  than  $325  per
20        manufacturer.    Nothing in this subpart (iv) prohibits a
21        distributor or importing distributor from paying the cost
22        of printing or creating any temporary  inside  banner  or
23        inserts  for acrylic table tent beverage or hors d'oeuvre
24        list holders for a retail  licensee,  provided  that  the
25        primary purpose for the banner or insert is to highlight,
26        promote,  or  advertise  the product.  For the purpose of
27        this subpart (iv), all temporary inside signs and  inside
28        advertising  materials  may  be  displayed in an adjacent
29        courtyard or  patio  commonly  referred  to  as  a  "beer
30        garden"  that  is  a  part  of  the  retailer's  licensed
31        premises.
32        A  "cost adjustment factor" shall be used to periodically
33    update the dollar limitations  prescribed  in  subparts  (i),
34    (iii), and (iv).  The Commission shall establish the adjusted
                            -5-                LRB9000875LDdv
 1    dollar  limitation  on  an annual basis beginning in January,
 2    1997.  The term "cost adjustment factor" means  a  percentage
 3    equal  to  the  change  in  the  Bureau  of  Labor Statistics
 4    Consumer  Price  Index  or  5%,  whichever  is  greater.  The
 5    restrictions contained in this Section 6-6 do  not  apply  to
 6    signs,  or  promotional or advertising materials furnished by
 7    manufacturers, distributors or importing  distributors  to  a
 8    government  owned  or  operated facility holding a retailer's
 9    license as described in Section 6-5.
10        No distributor or importing distributor shall directly or
11    indirectly or through a subsidiary or affiliate,  or  by  any
12    officer,  director  or firm of such manufacturer, distributor
13    or  importing  distributor,  furnish,  give,  lend  or  rent,
14    install, repair or maintain, to or for any retail licensee in
15    this  State,   any  signs  or  inside  advertising  materials
16    described in subparts (i),  (ii),  (iii),  or  (iv)  of  this
17    Section   except   as  the  agent  for  or  on  behalf  of  a
18    manufacturer, provided that the total cost of any  signs  and
19    inside  advertising  materials  including  but not limited to
20    labor, erection, installation and permit fees shall  be  paid
21    by the manufacturer whose product or products said signs, and
22    inside advertising materials advertise and except as follows:
23        (1)  A   manufacturer  and  a  distributor  or  importing
24    distributor may,  at  their  option,  enter  into  a  written
25    arrangement  whereby  the  manufacturer agrees to sell to the
26    distributor or importing distributor and the  distributor  or
27    importing  distributor  agrees to purchase at its own expense
28    from  the  manufacturer  or  the  manufacturer's   designated
29    supplier  permitted  signs  or  inside  advertising materials
30    described in subparts (i),  (ii),  (iii),  or  (iv)  of  this
31    Section  for  the  purpose  of  furnishing,  giving, lending,
32    renting, installing, repairing, or maintaining such signs  or
33    materials  to  or for any retail licensee in this State.  The
34    distributor or  importing  distributor  shall  at  all  times
                            -6-                LRB9000875LDdv
 1    remain  free  to  select  which  signs  or inside advertising
 2    materials it wishes to purchase.
 3        (2)  Any arrangement  described  in  item  (1)  shall  be
 4    terminable  for  any  reason  by  either  party  upon 30 days
 5    written notice to the other.  Nothing contained in  item  (1)
 6    shall relieve the distributor or importing distributor of any
 7    financial  obligation  for  any  signs  or inside advertising
 8    materials ordered by the distributor or importing distributor
 9    prior  to  the  effective  date  of  the  termination.    The
10    termination  of  any  arrangement described in item (1) shall
11    not constitute a violation of the Beer Industry Fair  Dealing
12    Act,  nor  shall  a  party's  unwillingness  to enter into or
13    continue with an arrangement pursuant to item (1)  constitute
14    good  cause  for  termination of the distributor or importing
15    distributor under the Beer Industry Fair Dealing  Act  herein
16    provided.
17        No  person  engaged  in  the  business  of manufacturing,
18    importing or distributing alcoholic liquors  shall,  directly
19    or  indirectly,  pay  for, or advance, furnish, or lend money
20    for the payment of any license for another. Any licensee  who
21    shall  permit  or  assent,  or  be  a party in any way to any
22    violation or infringement of the provisions of  this  Section
23    shall  be  deemed  guilty of a violation of this Act, and any
24    money loaned contrary to a provision of this Act shall not be
25    recovered back, or any note, mortgage or  other  evidence  of
26    indebtedness,  or security, or any lease or contract obtained
27    or made contrary to this Act shall be unenforceable and void.
28        This  Section  shall  not  apply  to  airplane  licensees
29    exercising powers provided in paragraph (i) of Section 5-1 of
30    this Act.
31    (Source: P.A. 89-238, eff. 8-4-95; 89-529, eff. 7-19-96.)
32        Section 99.  Effective date.  This Act takes effect  upon
33    becoming law.

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