Section 100.250  Transfer of Alcohol

 

a)         The holder of a retail license is prohibited from selling, giving, or transferring alcoholic products subject to the jurisdiction of the Act to another retail license holder unless permitted by the Act, this Part, or an express authorization by the Commission.

 

b)         The holder of a retail license is prohibited from purchasing, receiving, or accepting alcoholic products subject to the jurisdiction of the Act from another retail license holder unless permitted by the Act, this Part, or an express authorization by the Commission.

 

c)         Unless otherwise permitted by the Act, this Part, or the express authorization of the Commission, a retail licensee shall purchase all alcoholic products subject to the jurisdiction of the Act  from an Illinois licensed distributor or a licensee holding a self-distribution exemption in which there is a bona fide transfer of title. 

 

d)         Transfer of Alcohol Approval Process

 

1)         The Commission may authorize the holder of a retail license to sell, give, transfer, purchase, receive or accept alcoholic products subject to the Act, to or from another holder of a retail license.

 

2)         The Commission may delegate to Commission staff the review, approval, or denial of the request to transfer alcohol.

 

3)         The request must be approved by the Commission prior to the transfer.

 

4)         The request shall be submitted on forms provided by the Commission. Forms must be completed in their entirety prior to review or approval by the Commission.

 

5)         In normal circumstances, a request must be submitted and approved by the Commission prior to the transfer.  In the case of an imminent act of god, the request must be received prior to the transfer.

 

6)         The Commission will review each request based on the information provided in the request and other factors known to the Commission.

 

7)         Each request will be reviewed independently of any other licenses held by the owners.

 

8)         The authorization may be subject to conditions imposed by the Commission at the time of the approval.

 

9)         Upon approval by the Commission, the licensee must maintain a copy of the authorization at its premises for a period of 90 days following approval or until all transferred products have been sold by the licensee, whichever is later.

 

e)         In reviewing a transfer request, the Commission may utilize the following factors:

 

1)         Acts of god (such as, but not limited to, fires, explosions, tornadoes, earthquakes, drought, and floods);

 

2)         Federal, State, or local law change;

 

3)         Other unforeseeable circumstances beyond the control of the licensee, such as circumstances:

 

A)        the licensee cannot reasonably take precautions to prevent; and

 

B)        in which the only reasonable method of dispossessing of the alcoholic liquor products would be through a transfer to another licensee;

 

4)         Bankruptcy;

 

5)         Permanent or temporary closure of the licensee; or

 

6)         A new licensee opens a business at the same location where the prior licensee conducted business, when the new licensee takes possession of the inventory of the immediately prior licensee.

 

f)         This Section shall not apply to transfers made under Section 100.150 (Salvaged Alcoholic Liquors).

 

g)         For the purposes of this Section, "retail license" shall include the following licenses:  retailer, caterer retailer, Special Event Retailer's (not-for-profit), railroad, boat, wine maker's premises, airplane, brew pub, and distiller pub licenses (Section 5-1 of the Act).

 

(Source:  Amended at 44 Ill. Reg. 16811, effective September 29, 2020)

 

Section 100.255  Off-Premises Retail Warehousing Prohibited

 

a)         A licensed retailer shall not be permitted to store alcoholic liquor at any location other than the retail licensed premises.

 

b)         Distributors shall not deliver alcoholic liquor to unlicensed locations or to alternate delivery sites. 

 

c)         Distributors shall not deliver alcoholic liquor to a retailer for sale by a different retailer or for sale at a different retail location. 

 

d)         Airports: Federal aviation safety concerns that usual delivery methods may threaten the health, safety and welfare of the general public may require alternative restrictions. With approval of the Commission, a local liquor control commission with regulatory jurisdiction over an airport shall have the authority to define retail licensed premises at or in an airport to include a location that is not contiguous or adjacent to the common retail sales and service area, but that is the site of delivery of alcoholic liquor products by distributors. The following conditions apply:

 

1)         The non-contiguous and non-adjacent area shall be expressly and clearly defined by the Commission and the local commission;

 

2)         The airport maintains a complex of runways and buildings for the takeoff, landing and maintenance of civil aircraft, with the facilities for passengers;

 

3)         Under no circumstances shall an extended premises be permitted for the purposes of increased storage capacity. The extension shall be only for the purpose of facilitating distributor delivery to the licensed establishments.

 

(Source:  Added at 39 Ill. Reg. 4433, effective March 12, 2015)

 

Section 100.260  Uniform Systems of Accounts

 

a)         It shall be the duty of all retail licensees of this Commission for the purpose of this Act, to keep the minimum uniform records described in this Rule at a location within the State of Illinois for the purpose of inspection at all reasonable times by representatives authorized in writing by the chairman or a member of the Illinois Liquor Control Commission, or by representatives authorized in writing by any local Liquor Control Commissioner that issues the local license.

 

b)         Retail licensees maintaining records on the cash basis:

 

1)         A record of cash receipts from all sources. This record must be kept in accordance with the Rules and procedural requirements of the Illinois Department of Revenue, as set forth in the Retailers Occupation Tax Act [35 ILCS 120] and 86 Ill. Adm. Code 130:  Subpart H.

 

2)         A record of all cash disbursements for payment of merchandise purchases. This record must be documented by paid invoices or receipts.

 

3)         A record of all cash disbursements for operating expenses (including rent, salaries, light, power and heat, payroll and other taxes) and all other expenses. This record shall show to whom payment was made and for what purpose.

 

4)         Monthly or quarterly statements must be available for inspection disclosing cash receipts, cash disbursements for merchandise purchases and cash disbursements for operating expenses, and all other expenses, which will reflect the licensee's gross profit, net profit or loss, and the person or persons sharing directly or indirectly in the said net profit or loss. Where physical inventories are not taken quarterly, it will be permissible to determine gross profit on the basis of deducting purchases from sales.

 

5)         A record must also be maintained of cash on hand and cash in the bank. Bank statements and canceled checks must also be on file.

 

c)         Retail licensees maintaining records on an accrual basis:

Retail licensees who maintain records on an accrual basis may continue their present methods. This method of record keeping must also be one conforming to the Rules and Regulations of the Illinois Department of Revenue as cited above. The records of such licensees shall be documented in the same manner as those of licensees on the cash basis. In addition they shall maintain records supporting entries made for accruals of income and expenses.

 

d)         Beneficial interest:

 

1)         All documents, including but not limited to bills of sale, contracts of purchase, evidence of mortgage indebtedness or leases of licensed premises, evidence of original capital investment, a record of who provided such capital funds and from what bank or other lender, if any, said funds were obtained, and any agreements for sharing profits other than on the basis of shares of stock owned or sharing of profits set forth in the articles of partnership, shall be maintained and available for inspection. Also, if the licensee is a corporation, a listing of all stockholders of record shall be maintained. If the licensee is a partnership, the articles of partnership shall be available for inspection.

 

2)         Requirements for maintenance of records of beneficial interest specified under the preceding paragraph shall not be applicable to licensees having one or more classes of equity securities registered with the Securities Exchange Commission. Nor shall they be applicable to licensees of which more than 50 per cent of the voting securities are owned by a company that would be exempted hereunder if it were the licensee.

 

3)         Licensees availing themselves of the exemption stated in the preceding paragraph shall notify the Illinois Liquor Control Commission in writing that they are exempt under this provision, as above stated, and are filing annual reports with the Securities Exchange Commission, and that this exemption shall be effective so long as they are filing such annual reports.

 

e)         Each retail licensee must also have available for inspection said licensee's Retailer's Occupation Tax Registration Certificate as issued by the Illinois Department of Revenue.

 

f)         Each retail licensee of this Commission shall maintain and preserve the required records as set forth in this Rule for at least three calendar years.

 

(Source:  Amended at 18 Ill. Reg. 4811, effective March 9, 1994)

 

Section 100.270  Multi-Use Facilities

 

A multi-use facility, such as a hotel, conference center, stadium, or theater, that has been issued more than one local and State liquor license but has an identical Illinois Business Retailer's Occupational Tax number may store alcoholic liquor at one central location within the multi-use facility.

 

(Source:  Amended at 39 Ill. Reg. 4433, effective March 12, 2015)

 

Section 100.275  Hotel/Motel Mini Bars and Room Service

 

To sell alcoholic liquor from mini bars in hotels and motels, the hotel/motel:

 

a)         Shall possess a valid local and State retail liquor license for the entire hotel/motel or as the local commission deems necessary;

 

b)         Shall establish a method of control to prevent the use of the mini bar as a means of over-service or consumption of alcohol by a person under the age of 21;

 

c)         Shall comply with all provisions of the Act, this Part and local liquor control ordinances.

 

(Source:  Added at 39 Ill. Reg. 4433, effective March 12, 2015)

 

Section 100.280  Giving Away of Alcoholic Liquors

 

a)         No licensee, individual, partnership or corporation shall give away any alcoholic liquor for commercial purposes or in connection with the sale of non-alcoholic products or to promote the sale of non-alcoholic products.

 

b)         No licensee, individual, partnership, or corporation shall advertise or promote in any way, whether on or off licensed premises, any of the practices prohibited under subsection (a) of this Section.  This includes, but is not limited to, advertisements using the words "free" or "complimentary" with alcoholic liquor.

 

c)         Subsection (a) shall not apply to test marketing or tasting.

 

(Source:  Amended at 23 Ill. Reg. 3787, effective March 15, 1999)

 

Section 100.285  Tastings, Product Samplings and Test Marketing

 

a)         "Product Sampling" or "tastings" mean a supervised presentation of alcoholic liquor products to the public at a retailer location for the purpose of disseminating product information and education, with consumption of alcoholic liquor products being an incidental part of the presentation.

 

b)         Alcoholic liquor product sampling and tastings may be conducted by a manufacturer, non-resident dealer, foreign importer, importing distributor, distributor or retailer or a non-licensee, that complies with Section 100.40 and registers as a tasting representative at retail licensed premises.  Only alcoholic liquor products registered with the Commission may be tasted or sampled.  Tastings and product sampling may be advertised. The conditions and limitations contained in Section 100.330 and Commission rules shall apply to any manufacturer, non-resident dealer, foreign importer, importing distributor or distributor sponsored tastings or product samplings. 

 

c)         Retail premise alcoholic liquor tastings and product samplings, for which there is no charge to the consumer, may be provided in the following amounts: distilled spirits ¼ oz., wine 1 oz. and beer 2 oz. 

 

d)         A licensee may not conduct alcoholic liquor tastings or product sampling at a non-licensed premise.  Licensed premises include those premises for which a Special Use or Special Event License has been issued by the unit of local government having regulatory authority over the premises pursuant to the Act and approved by the Commission. 

 

e)         Cups, napkins, glassware, coasters and trays shall not be deemed to be inside signs or advertising materials and may only be sold to retailers by a manufacturer, non-resident dealer, foreign importer, importing distributor or distributor.

 

f)         If a retailer previously purchased the alcoholic liquor product to be tasted or sampled, a manufacturer, non-resident dealer, foreign importer, importing distributor or distributor may pay for the product at the retailer's original cost. If the manufacturer, non-resident dealer, foreign importer, importing distributor or distributor supplies the alcoholic liquor product for the tasting or sampling, the product remaining after the tasting or sampling must be returned to the manufacturer, non-resident dealer, foreign importer, importing distributor or distributor.

 

g)         Alcoholic liquor product samplings or tastings in which the consumer pays a reasonable entrance fee in relation to the amount of alcoholic liquor available for tasting or sampling is permitted, subject to the following conditions and limitations:

 

1)         The retailer must charge a uniform admission price and is prohibited from treating patrons differently.

 

2)         The retailer must use tickets, punch cards or other such reliable means of tracking the amount of alcoholic liquor purchased and consumed by each attendee.

 

3)         Retailer's legal responsibility duties, including, but not limited to, prohibitions against serving alcohol to persons under age 21 and to any intoxicated person, remain unchanged with tasting or product sampling events.

 

4)         The retailer must hold an on-premise consumption license issued by both the local governmental unit and the State.  However, the license or permit may be a special use or special event license.

 

h)         "Test Marketing" means the testing of new alcoholic liquor products or alcoholic liquor products unfamiliar to the sampler through a marketing firm, or the like.  The Commission will grant approval for the test marketing of alcoholic liquor on a case-by-case basis, only upon written request.  Requests shall state with specificity the parameters of the testing and shall include, at a minimum, the following information:

 

1)         The name and address of the marketing firm conducting the test marketing.

 

2)         The location where the test marketing will be conducted.

 

3)         The number of participants involved.

 

4)         Representation that the age of the participants is 21 years or older.

 

5)         The duration of the test marketing.

 

6)         The total amount of alcoholic liquor involved in the test marketing and the total amount of alcoholic liquor to be given or furnished to each participant.

 

(Source:  Added at 39 Ill. Reg. 4433, effective March 12, 2015)

 

Section 100.290  Refilling

 

No retail licensee shall offer for sale, or possess on the licensed premises:

 

a)         Any original package of alcoholic liquor which contains any kind or quality of alcoholic liquor other than that which has been sealed and labeled by the manufacturer or nonresident dealer.

 

b)         Any original package of alcoholic liquor to which there has been added any water or other substance.

 

(Source:  Amended at 23 Ill. Reg. 3787, effective March 15, 1999)

 

Section 100.300  Authorization to Remove Bottles

 

a)         When an authorized agent of the Commission finds or has probable cause to believe that any original package of alcoholic liquor, or other bottles, casks, or containers containing alcoholic liquor, is adulterated within the provisions of Section 100.290 of this Part or Section 6-22 of the Act [235 ILCS 5/6-22], said agent shall remove said package, bottle, cask or container from the premises together with such other sealed packages, bottles, casks or containers as may be necessary to test such suspect alcoholic liquor.

 

b)         Any such packages, bottles, casks or containers determined by the Commission to be so adulterated shall be destroyed. However, any packages, bottles, casks or containers not so adulterated and all sealed packages, bottles, casks or containers removed for comparison testing shall, after the entry of an order, be returned to the licensee.

 

(Source:  Amended at 18 Ill. Reg. 4811, effective March 9, 1994)

 

Section 100.310  Food Service at Park Districts

 

a)         Section 6-15 of the Act [235 ILCS 5/6-15] requires food service in buildings of golf courses owned by municipalities or park districts, if alcoholic liquors are to be delivered and sold in such buildings.

 

b)         Said food service does not require the kitchen and dining room equipment called for in Section 1-3.23 of the Act [235 ILCS 5/1-3.23].

 

c)         Said food service shall consist of the service of sandwiches of any kind, including hot and cold sandwiches, hot dogs, hamburgers, pizzas, tacos, and any other substantial foodstuff, excluding the service of peanuts, pretzels, potato chips, popcorn or ice cream cones.

 

(Source:  Amended at 18 Ill. Reg. 4811, effective March 9, 1994)

 

Section 100.320  Airplanes

 

The holder of an airplane license issued by the Commission shall be permitted to purchase alcoholic liquor whether from non-resident dealers, manufacturers, importing distributors, distributors, or foreign importers within the State of Illinois or outside of the State of Illinois on a non-tax paid basis and to file with the Illinois Department of Revenue, as may be required by the Department, a bond and monthly liquor gallonage reports, and make payment of gallonage tax due for those alcoholic liquors sold or dispensed in the State of Illinois. All of this is to be done in accordance with and in conformity with the procedures and standards set forth in Sections 8-1, 8-2, and 8-3 of the Act [235 ILCS 5/8-1, 8-2, and 8-3].

 

(Source:  Amended at 23 Ill. Reg. 3787, effective March 15, 1999)

 

Section 100.325  Boats/Riverboat Gaming

 

a)         A boat license shall allow the sale of alcoholic liquor in individual drinks on any passenger boat regularly operated as a common carrier on navigable waters in this State or on any riverboat operated under the Riverboat Gambling Act [230 ILCS 10], if the boat or riverboat maintains a public dining room or restaurant. [235 ILCS 5/5-1(g)]

 

b)         The issuance of liquor licenses to navigable boats or to boats licensed under the Riverboat Gambling Act shall be the exclusive right of the Commission.

 

c)         The issuance of liquor licenses to boats permanently attached to a dock or land, except for boats licensed under the Riverboat Gambling Act, shall be subject to local and State dual licensing requirements.

 

d)         The establishment of hours of operation for the sale of alcoholic liquor for boats licensed under the Riverboat Gambling Act shall be the exclusive jurisdiction of the Illinois Gaming Board.

 

e)         All boat liquor license holders, including boats licensed under the Riverboat Gambling Act, shall comply with the Illinois happy hour laws (Section 6-28 of the Act) and Section 100.280, which prohibits any person from giving away alcoholic liquor for a commercial purpose.

 

(Source:  Added at 39 Ill. Reg. 4433, effective March 12, 2015)

 

Section 100.326  Auction Liquor Licenses

 

a)         "Auction liquor licensee" means a person who obtains prior written approval from the Commission to sell or offer for sale at auction, on a specified date, wine or spirits for private use or consumption, or for resale by an Illinois liquor licensee in accordance with the Act. [235 ILCS 5/1-3.32]

 

b)         A person wishing to apply for an auction liquor license must first become licensed pursuant to the Illinois Auction License Act [225 ILCS 407/5].

 

c)         An auction liquor license shall be obtained at least 14 days in advance of the auction date.

 

d)         An auction liquor license allows the licensee to do the following:

 

1)         sell and offer for sale wine and spirits for use or consumption;

 

2)         sell and offer for sale wine and spirits for resale by an Illinois liquor licensee;

 

3)         hold the auction on a specified day;

 

4)         hold the auction anywhere in the State of Illinois.

 

e)         Approved Sales

 

1)         Private sales;

 

2)         Out-of-state sales;

 

3)         Sale to ultimate consumer;

 

4)         Sale to distributor or retailer for resale.

 

f)         Nothing in this Section shall be construed to permit a retailer, outside the context of a validly licensed auction, to purchase from anyone other than a distributor or person with distribution privileges.

 

(Source:  Added at 39 Ill. Reg. 4433, effective March 12, 2015)

 

Section 100.330  Advertising

 

a)         Pursuant to Sections 6-4, 6-5, and 6-6 of the Act [235 ILCS 5/6-4, 6-5, and 6-6], no retail licensee shall have any direct or indirect interest in or control of any advertising or promotional company which receives funds directly or indirectly from, or for the account of, any manufacturer, non-resident dealer, broker, distributor, importing distributor or foreign importer of alcoholic beverages; nor shall any manufacturer, non-resident dealer, broker, distributor, importing distributor or foreign importer make any payment, direct or indirect, to any retailer or any other entity which provides advertising, promotional or display services for retailers in consideration of any advertising or promotional efforts of any kind not allowed under the Illinois Liquor Control Act or the rules and regulations of the Commission.

 

b)         Nothing herein shall prohibit any manufacturer, non-resident dealer, distributor, importing distributor, or foreign importer from sponsoring an event at a venue which sole purpose is to host live entertainment, provided that no indirect or direct payment is made to the retailer and that any reference to the retailer in any advertising is incidental to the event itself.

 

c)         Subsections (a) and (b) above do not apply to a person holding a special event retailer's license.

 

(Source:  Amended at 21 Ill. Reg. 5542, effective May 1, 1997)

 

Section 100.340  Petitions for the Adoption, Amendment or Repeal of a Rule

 

Pursuant to Sections 3-12 and 3-13 of the Act [235 ILCS 5/3-12 and 3-13] and Article 5 of the Illinois Administrative Procedure Act [5 ILCS 100/Art. 5]:

 

a)         Any interested person may petition this Commission requesting the adoption, amendment or repeal of a rule. Such petition shall be submitted in writing to the Illinois Liquor Control Commission, James R. Thompson Center, 100 W. Randolph St., Suite 5-300, Chicago, Illinois 60601 or 101 W. Jefferson St., Springfield, Illinois 62702. Six copies of each petition along with any supporting documents shall be submitted in the following form:

 

1)         Petition for (Adoption, Amendment, Repeal) of (a) Rule (Rule No. if Applicable) of the Illinois Liquor Control Commission.

 

2)         I, (Name of Interested Party), do hereby petition the Illinois Liquor Control Commission to (Adopt, Amend, Repeal) (a) Rule (Rule No. if Applicable) for the following reasons:

 

3)         (State reasons as fully as possible. Attach or include any documentation for your reasons.)

 

b)         If the petition is for the Adoption or Amendment of a Rule, attach a draft of the proposed adopted or amended Rule which you feel will adequately deal with the reasons you outlined for adoption or amendment.

 

c)         All such petitions shall be signed by the petitioner and shall state his or her address and phone number. A petition shall also state whether the petitioner is a licensee of this Commission or not, and whether they are related to or connected with any licensee of this Commission, and if so, in what capacity.

 

d)         Upon receipt of a petition in the proper form, such petition will be considered by the Commission. If the petition is granted, the petitioner will be notified in writing and the Commission shall initiate rule-making proceedings in accordance with Article 5 of the Illinois Administrative Procedure Act [5 ILCS 100/Art. 5] and 2 Ill. Adm. Code 2075.100.

 

e)         If, within 30 days after submission of a petition, the Commission has not initiated rule-making proceedings in accordance with Article 5 of the Illinois Administrative Procedure Act [5 ILCS 100/Art. 5] and 2 Ill. Adm. Code 2075.100, the petition shall be deemed to have been denied.

 

(Source: Amended at 27 Ill. Reg. 17386, effective November 10, 2003)

 

Section 100.350  Procedures For Filing Appeals From an Order of the Local Liquor Control Commissioner

 

Pursuant to Sections 3-12 and 3-13 of the Act [235 ILCS 5/3-12 and 3-13] and Section 10-25 of the Illinois Administrative Procedure Act [5 ILCS 100/10-25]:

 

a)         In all cases where an appeal from an order or action of the local liquor control commissioner is filed with the Commission, the party filing the appeal shall furnish, along with the petition to appeal:

 

1)         a copy of the citation and notice of hearing before the local liquor control commissioner, if any;

 

2)         a copy of the decision or order of the local liquor control commissioner;

 

3)         a copy of any local ordinances charged to be violated;

 

4)         the current State Retail Liquor License number of the establishment involved;

 

5)         a statement indicating whether or not the licensee has, within the last 12 month period, had a suspension or revocation placed upon the licensee, and if so, all the details relating to the suspension or revocation thereto.

 

b)         In all cases where an appeal is to be heard upon the record, a certified official record of the proceedings taken and prepared by a certified court reporter, along with all exhibits, shall be filed by the local liquor control commissioner within 5 days after notice of the filing of the appeal, if the appellant licensee pays for the transcript and five additional copies.  The failure to file the certified official record of the proceedings before the local liquor control commissioner, without sufficient written explanation, shall result in the appeal not being docketed for hearing, as originally scheduled, or as continued by the Commission.

 

c)         The parties shall file eight copies of any documents filed in connection with the appeal.  The failure to file eight copies of any document to be considered by the Commission shall result in the appeal not being docketed for hearing, as originally scheduled, or as continued by the Commission.

 

d)         Upon notice to the local liquor control commissioner that an appeal has been accepted by the Commission, Section 100.230 of this Part shall become effective, when applicable.

 

e)         All materials filed with the Commission shall be served upon the opposing party or parties in interest.

 

f)         Proof of service upon the opposing party or parties in interest shall accompany all materials filed with the Commission and served upon the parties.   All documents shall be served upon the Commission by:

 

1)         Personal delivery;

 

2)         United States mail, enclosed in an envelope, plainly addressed, with postage prepaid;

 

3)         Via facsimile machine, provided original documents with appropriate copies are also served via subsection (f)(1) or (2).

 

g)         All material filed with this Commission shall be filed at James R. Thompson Center, 100 West Randolph Street, Room 5-300, Chicago, Illinois 60601 or 101 W. Jefferson St., Springfield, Illinois 62702.

 

h)         The inability of any party to comply with the foregoing requirements shall be detailed in written communication to the Commission.

 

(Source: Amended at 27 Ill. Reg. 17386, effective November 10, 2003)

 

Section 100.360  Review on Record – Certification of Ordinance

 

Pursuant to Sections 3-12, 3-13 and 7-9 of the Act [235 ILCS 5/3-12, 3-13 and 7-9] and the Illinois Administrative Procedure Act [5 ILCS 100]:

 

a)         In all cases where an appeal shall be on the record pursuant to the requirements of Section 7-9 of the Act [235 ILCS 5/7-9], the local liquor control commissioner shall file with the Commission a certified copy of the ordinance or resolution adopted which requires that review shall be on the record.

 

b)         Once the certified copy is filed with the Commission, it shall serve as proof of the resolution for all subsequent appeals from that local decision, upon a certified representation signed by the local liquor control commissioner that the resolution is currently in force and effect as applied to the pending matter.

 

c)         All parties may also stipulate that review shall be on the record.

 

(Source:  Amended at 23 Ill. Reg. 3787, effective March 15, 1999)

 

Section 100.370  Procedures Before the Commission

 

Pursuant to Sections 3-12, 3-13 and 7-6 of the Act [235 ILCS 5/3-12, 3-13 and 7-6] and the Illinois Administrative Procedure Act [5 ILCS 100]:  The provisions of the Illinois Administrative Procedure Act concerning procedures in contested cases and licensing matters shall be applicable in all proceedings before this Commission on citations.

 

(Source:  Amended at 18 Ill. Reg. 4811, effective March 9, 1994)

 

Section 100.380  Ex Parte Consultations

 

Pursuant to Sections 3-12 and 3-13 of the Act [235 ILCS 5/3-12 and 3-13] and Section 10-60 of the Illinois Administrative Procedure Act [5 ILCS 100/10-60]:  Except in the disposition of matters which they are authorized by law to entertain or dispose of on an ex-parte basis, neither Commission members, Department of Revenue employees assigned to Commission functions nor hearing examiners shall, after notice of hearing in a contested case or licensing to which the procedures of a contested case apply under this Act, communicate, directly or indirectly, in connection with any issue of fact, with any person or party, or in connection with any other issue with any party or representative of such party, except upon notice and opportunity for all parties to participate. However, a Commission member may communicate with other members of the Commission or employees of the Department, and a Commission member, Department employee or hearing examiner may have the aid and advice of one or more personal assistants.

 

(Source: Amended at 27 Ill. Reg. 17386, effective November 10, 2003)

 

Section 100.390  Transcripts – Administrative Review

 

Pursuant to Section 7-11 of the Illinois Liquor Control Act [235 ILCS 7-11] and Section 3-109 of the Illinois Administrative Review Law [735 ILCS 5/3-109], any party seeking judicial review of any order of the Commission shall pay the cost of the transcripts of such hearings conducted by the Commission, which shall become a part of the official record.  The party requesting administrative review in the Circuit Court shall pay to the Commission the costs of preparing and certifying the record of the proceedings before the Commission.  Failure to make that payment prior to the time the Commission's answer to the complaint is due shall relieve the Commission of the necessity of filing the answer required in Section 3-108 of the Administrative Review Law and shall be authority for the entry of an order by the court, on motion therefor by the Commission, dismissing the complaint with costs.

 

(Source:  Added at 23 Ill. Reg. 3787, effective March 15, 1999)

 

Section 100.400  Procedures Before the Commission on Disputes under Section 35 of the Illinois Wine and Spirits Industry Fair Dealing Act (Repealed)

 

(Source:  Repealed at 26 Ill. Reg. 17966, effective December 9, 2002)

 

Section 100.410  Commission Meetings

 

a)         The Commission holds meetings and hearings at least monthly in accordance with Section 3-11 of the Act and the Open Meetings Act [5 ILCS 120].  The Commission holds closed meetings pursuant to Section 2a of the Open Meetings Act.

 

b)         Final decisions of the Commission may be made only at meetings or hearings at which a quorum of the Commission is present.  The presence of a quorum is required at a meeting in order for the Commission to transact any business.

 

c)         Meetings may be held with the Commission members physically present or present telephonically or through video teleconferencing.

 

d)         Per Section 7 of the Open Meetings Act, if a Commissioner attends a meeting through audio or video conferencing, the following rules shall apply:

 

1)         A quorum of the Commission shall be physically present at the location where the meeting is to be conducted; and

 

2)         The Commissioner is physically prevented from attending because of personal illness or disability, employment purposes or the business of the public body, or a family or other emergency. 

 

e)         The limitations set forth in subsection (d) do not apply to closed meetings (see Section 7(d) of the Open Meetings Act).

 

f)         Any person may attend a Commission meeting unless that meeting has been closed by vote of the Commission.  A person may make comments at a Commission meeting subject to the following conditions:

 

1)         The person offering the comments has given advance notice to the Commission at least 48 hours prior to the meeting or is otherwise permitted to speak by a majority vote of the Commissioners at the meeting.

 

2)         The person's comments are limited to a reasonable time at the discretion of the Commission Chair or Acting Chair.

 

3)         The person's comments are relevant to a subject matter within the jurisdiction of the Commission or relevant to a subject matter of the Commission meeting agenda.

 

4)         The person's comments are not repetitious or disruptive, as determined by the Commission Chair or Acting Chair. 

 

(Source:  Old Section repealed at 26 Ill. Reg. 17966, effective December 9, 2002; new Section added at 39 Ill. Reg. 4433, effective March 12, 2015)

 

Section 100.420  Wine Maker Self-Distribution

 

An in-state and out-of-state maker of wine may sell its own manufactured wine directly to retail license holders if it:

 

a)         has been issued a federal Basic Permit to make wine by the Tax and Trade Bureau of the US Department of the Treasury;

 

b)         has been issued a valid wine making license by a licensing authority of any state or territory of the United States;

 

c)         does not hold any other manufacturer's license to make any other type of alcoholic liquor;

 

d)         and its officers, managers, partners, owners who own more than 5% of the maker of wine, and any other affiliated entity or individual person annually produce less 25,000 gallons of wine;

 

e)         and its officers, managers, partners, owners who own more than 5% of the maker of wine, and any other affiliated entity or individual person annually sell 5,000 gallons of wine or less direct to retailers;

 

f)         pays all necessary State of Illinois excise taxes for the manufacture and importation of wine.

 

g)         an out-of-state maker of wine must have a valid Illinois winery shipper's license prior to the issuance of a self-distribution exemption and at all times while self-distributing.

 

(Source:  Added at 39 Ill. Reg. 4433, effective March 12, 2015)

 

Section 100.430  Craft Brewer Self-Distribution

 

An in-state and out-of-state maker of beer may sell its own manufactured beer directly to retail license holders if it:

 

a)         has been issued a federal Brewer's Notice to make beer by the Tax and Trade Bureau of the US Department of the Treasury;

 

b)         has been issued a valid beer making license by a licensing authority of any state or territory of the United States;

 

c)         has been issued an Illinois Brewer License or an Illinois Non-resident Dealer License;

 

d)         does not hold any other manufacturer's license to make any other type of alcoholic liquor;

 

e)         and any of its officers, managers, partners, owners who own more than 5% of the brewer, and any other affiliated entity or individual person annually produces less than 930,000 gallons (30,000 barrels) of beer;

 

f)         and any of its officers, managers, partners, owners who own more than 5% of the brewer, and any other affiliated entity or individual person annually sells not more than 232,500 gallons (7500 barrels) of beer direct to retailers;

 

g)         pays all necessary State of Illinois excise taxes for the manufacture and importation of beer;

 

h)         in accordance with Section 3-12(a)(18)(B)(3) submits an affidavit demonstrating with specific evidence its efforts to contact distributors for the purpose of establishing distributor relationships.

 

(Source:  Added at 39 Ill. Reg. 4433, effective March 12, 2015)

 

Section 100.460  Revoked Licenses

 

a)         In conformance with Section 6-2(7) of the Act, no officer, director, member, managing member, partner, owner of more than 5% of the revoked license holder or any other person with a direct or indirect beneficial interest in a revoked license holder shall be issued a new liquor license or renew a liquor license at the same or any other location.

 

b)         The Commission may, at its discretion, determine that a revoked license holder or any other person with more than a 5% direct or indirect beneficial interest in a prior revoked license has been sufficiently rehabilitated to be issued a new liquor license or renew an existing liquor license.  The burden of proof of sufficient rehabilitation shall be on the applicant.

 

c)         The Commission shall solely consider rehabilitation evidence for prior revoked persons seeking licenses in which the Commission has primary jurisdiction or for persons who previously held an interest in a license revoked solely by the Commission.

 

(Source:  Added at 39 Ill. Reg. 4433, effective March 12, 2015)

 

Section 100.480  Importation of Alcoholic Liquor

 

a)         Subject to exceptions expressly contained in the Act and this Part, no person shall import alcoholic liquor into this State for a non-personal or commercial use without first obtaining a license to import issued by the Commission, such as a manufacturer's, importing distributor's, railroad, airplane and foreign importer's license.  In addition, wine may be legally purchased by an Illinois resident and imported into the State from an out-of-state winery that has first obtained an Illinois winery shipper's license from the Commission.  Any person shipping or causing the shipping of alcoholic liquor into this State who does not meet the requirements of subsection (b) is an importer and must be licensed pursuant to this Act.

 

b)         A person is permitted to import alcoholic liquor into this State for his or her personal and non-commercial use without first obtaining a license to import under the following conditions:

 

1)         Either:

 

A)        The total volume to be imported per year is less than one gallon; or

 

B)        The inventory of alcoholic liquor has been reviewed and expressly approved by the Commission under the following conditions:

 

i)          The Commission shall not authorize more than one request for importation per adult person, per year;

 

ii)         The Commission shall not authorize more than one request for importation to a specific Illinois address or location per year; and

 

iii)        The Commission shall not authorize importation of a total volume of wine equivalent to more than 12 750 ml bottles unless:

 

•           Persons seeking import authorization can prove by reasonable evidence that they are or were an active member of the United States military stationed outside the United States and the alcoholic liquor to be imported has been collected and stored outside the United States; or

 

•           Persons seeking import authorization can prove by reasonable evidence that they have resided outside the State of Illinois for over one year and that the alcoholic liquor to be imported has been collected and stored outside this State;

 

2)         All persons bringing alcoholic liquor into the State of Illinois shall remit all State and local Retailers' Occupation Taxes or Use Taxes and all State and local gallonage taxes to the Illinois Department of Revenue according to its requirements or to the appropriate local unit of government levying a local tax; and

 

3)         All persons bringing alcoholic liquor into Illinois shall abide by all federal importing statutes and rules promulgated by federal agencies, which include, but are not limited to, the rules promulgated by U.S. Customs and Border Protection and the Alcohol and Tobacco Tax and Trade Bureau of the U.S. Department of the Treasury.

 

(Source:  Added at 39 Ill. Reg. 4433, effective March 12, 2015)

 

Section 100.490  Co-branded Alcoholic Beverages, Product Adjacency Prohibited

 

a)         No retail establishment with a retail sales floor that exceeds 2,500 square feet shall display co-branded alcoholic beverages immediately adjacent to soft drinks, fruit juices, bottled water, candy, or snack foods if such snack foods portray cartoons or youth-oriented images.

 

b)         Any retail establishment with a retail sales floor that is equal to or less than 2,500 square feet shall either:

 

1)         not display co-branded alcoholic beverages immediately adjacent to soft drinks, fruit juices, bottled water, candy, or snack foods if such snack foods portray cartoons or youth-oriented images; or

 

2)         equip any such display that contains co-branded alcoholic beverages and is immediately adjacent to soft drinks, fruit juices, bottled water, candy, or snack foods if such snack foods portray cartoons or youth-oriented images with signage that is clearly visible to consumers, is not less than 8.5 x 11 inches, and states the following: "THIS PRODUCT IS AN ALCOHOLIC BEVERAGE AVAILABLE ONLY TO PERSONS WHO ARE 21 YEARS OF AGE OR OLDER." This sign shall be provided by the Commission.

 

c)         Subsections (a) and (b) of this Section do not apply to a shelf, aisle, display or display area in which the primary items for sale are alcoholic liquors or in an area in which persons under the age of 21 are prohibited from entering without a parent or legal guardian.

 

(Source:  Added at 47 Ill. Reg. 14117, effective September 21, 2023)

 

Section 100.500 "Of Value" Provisions – General Applicability

 

a)         Except as allowed by the Act, it shall be unlawful for any licensed manufacturer, non-resident dealer, distributor, importing distributor, foreign importer, any of their officers, managers, partners, owners, employees, agents, or affiliates, or any member of the family of such manufacturer, non-resident dealer, distributor, importing distributor, or foreign importer (collectively referred to as an "industry member") to furnish, give or lend money or anything of value, or otherwise loan  extend credit (other than merchandising credit in the ordinary course of business for a period not to exceed 30 days, as permitted by Section 6-5 of the Act, and Section 100.90 of this Part), directly or indirectly to a licensed retailer or any officer, associate, member, representative, agent or employee of that licensee ("retailer").  It is likewise unlawful for any retailer, as defined in this subsection, to accept or receive money or any item of value from an industry member. A retailer does not include a special event retailer as defined in Section 1-3.17.1 of the Act.

 

b)         Third-Party Arrangements.  The furnishing, giving, renting, lending or selling of equipment, fixtures, signs, supplies, money, services or other thing of value, not specifically allowed by this Section, by an industry member to a third party, when the benefits resulting from the things of value flow to a retailer, is an indirect furnishing of a thing of value within the meaning of Sections 6-5 and 6-6 of the Act.  Indirect furnishing of a thing of value includes, but is not limited to, making payments for advertising to a retailer association or a display company when the resulting benefits flow to an individual retailer.  An indirect furnishing of a thing of value does not arise when the industry member did not intend that the thing of value would be furnished to a retailer by a third party, or the industry member did not reasonably foresee that the thing of value would have been furnished to the retailer.

 

c)         Violations of the "Of Value" Provisions of Sections 6-5 and 6-6.  Performance of the following activities or provision of the following items violates the provisions on giving anything "of value" under Sections 6-5 and 6-6 of the Act:

 

1)         Shelf Space Payments, Display Service and Slotting Fees Prohibition.  An industry member shall not directly or indirectly offer or give anything "of value" to a retailer, and a retailer shall not directly or indirectly request or accept anything "of value" from an industry member, in exchange for offering for sale or displaying an industry member's product on a retailer's shelf, on a tap handle, at any other desired location within the retail establishment, or on a retailer's website. 

 

2)         Credit to Retailers.  An industry member shall not provide credit to retailers unless permitted by Section 6-5 of the Act as implemented by Section 100.90 of this Part.  The statute provides the following parameters for extending credit to retailers:

 

A)        No credit extensions are allowed on the purchase of beer by retailers.  The full invoice cost of beer must be paid in cash as defined in Section 100.90(j) by the retailer on or before the delivery date.

 

B)        An industry member selling wine or spirits to a retailer may extend a merchandising credit in the ordinary course of business not to exceed 30 days.

 

3)         Security Interest.  An industry member's acquisition of a mortgage on any of the real or personal property a retailer uses in its alcoholic beverage business is a prohibited interest in the retailer's property, except to the extent a lien or other security interest is acquired only in the industry member's products sold to the retailer in order to secure payment of goods sold on credit, if that credit is permissible under Section 6-5 of the Act.

 

4)         Guaranteeing Loans.  An industry member is prohibited from guaranteeing any loan or repayment of any financial obligation owed by a retailer, and a retailer is prohibited from guaranteeing any loan or repayment of any financial obligation owed by an industry member.

 

5)         Industry Member Advertising.  An industry member shall not give, and a retailer shall not accept, anything of value in exchange for any advertising service, including but not limited to:

 

A)        Display space advertising or placement of ads in a retailer's publications, including a retailer's website; or

 

B)        Payments to a third party for advertisements in which the primary purpose of the advertisement promotes a retailer's business or aspects of the retailer's business.

 

d)         Exceptions to the "Of Value" Provisions of Sections 6-5 and 6-6 of the Act. Having due regard for public health, established trade customs not contrary to the public interest, the purposes of the Act, and the items or activities permissible under the "of value" provisions of Sections 6-5 and 6-6, performance of the following activities or provision of the following items is permissible under Sections 6-5 and 6-6, as long as the performance or provision is not conditioned upon an activity or arrangement intended to create a "tied-house" as defined in 27 USC 305(b).

 

1)         All licensees shall maintain records on the licensed premises, subject to a Section 100.130(e) waiver, for all items furnished to retailers, or received by retailers, under Sections 6-5 and 6-6 and this Section 100.500 for a period of three years.  Commercial records or invoices may be used to satisfy this recordkeeping requirement, provided that all required information listed in this subsection (d)(1) is contained in these commercial records or invoices.  These records must include:

 

A)        The name and address of the retailer receiving the item;

 

B)        The date furnished;

 

C)        The item furnished;

 

D)        The cost of the furnished item to the industry member, determined by the invoice price paid by the industry member; and

 

E)        Charges to the retailer for any item.

 

2)         Signage. An industry member may provide signage to a retailer, and a retailer may accept signage from an industry member, so long as the signage, in the aggregate, does not exceed the number of signs allowed or the cost adjustment factor dollar limitations under Section 6-6.

 

3)         Product Displays.  An industry member shall not directly or indirectly offer or give anything "of value" to a retailer, and a retailer shall not directly or indirectly request or accept anything "of value" from an industry member, in exchange for setting up product or other displays, or renting displays, shelf, cold box, storage or warehouse space at a retail establishment (i.e., slotting fee or allowance), except as specifically permitted by Section 6-6.3.  The act by an industry member of giving or selling product displays to a retailer is permissible if the total value of the product display does not exceed $300 per brand at any time per retail location. The value of a product display is the actual cost to the industry member that initially purchased the product display or, if the industry member did not purchase the product display, the fair market value of the product display.  Transportation and installation costs are not included in the $300 value.

 

A)        A product display means any racks, bins, barrels, casks, coolers (having a fair market value of no more than $175, with no exterior plumbing or electrical hookup), buckets, glass or transparent display cases, shelving or similar items whose primary function is to hold and display alcoholic liquors at point-of-sale, at or on a retail licensed premises. Product displays may also include "display enhancers" that are exclusive of trade fixtures and equipment and include only items that convey the product display sales programming message to consumers.  All product displays, including display enhancers, must cumulatively fall within the dollar limitation of product displays.

 

B)        All product displays must bear conspicuous and substantial advertising matter on the product of the industry member that is permanently inscribed or securely affixed.  The name and address of the retailer may appear on the product display.

 

C)        Industry members may not pool or combine dollar limitations to provide a retailer with a product display in excess of $300 per brand.

 

D)        The giving or selling of product displays may be conditioned upon the purchase of alcoholic liquor advertised on those displays in a quantity necessary for the initial completion of the display. No other condition can be imposed by the industry member on the retailer in order for the retailer to obtain the product display.

 

4)         Equipment, Fixtures, Furniture and Supplies.  Except as provided under the Act, an industry member cannot give, lend, lease, furnish or sell furniture, equipment or fixtures to a retailer. An industry member may sell equipment and supplies to retailers if the equipment or supplies are sold to the retailer for a price that is not less than the cost of the equipment or supplies.  For purposes of this Section, the cost of equipment or supplies is the amount that the industry member paid for the equipment or supplies if the industry member did not acquire them from another industry member.  If the industry member selling equipment or supplies to a retailer acquired the equipment or supplies from another industry member (initial selling industry member), the cost of the equipment or supplies is the amount that the initial selling industry member paid for them.  In either case, if the equipment or supplies were manufactured or produced by an industry member, the cost of the equipment or supplies is deemed to be the fair market price of the equipment or supplies.  The sale price must be collected from the retailer by the industry member within 30 days after the date of the sale.  Equipment and supplies includes items such as glassware (or similar containers made of other material), dispensing accessories, carbon dioxide (and other gasses used in dispensing equipment), coasters, trays, napkins, cups and buckets.  Dispensing accessories include items such as standards, faucets, cold plates, rods, vents, taps, tap standards, hoses, washers, couplings, gas gauges, vent tongues, shanks, check valves, and counter-top branded shot machines. 

 

5)         Quantity Discounting.  Quantity discounting is permissible only if an industry member offers the same quantity price discount to all similarly situated retailers in the same geographic area who agree to purchase the required predetermined quantity of alcoholic liquor of the same brand.  A "quantity discount" is when an industry member offers a retailer a discount at the time of sale based upon an agreement by which the retailer will purchase a predetermined number of products in return for receiving a discount on the same goods purchased.  However, the following activities are prohibited:

 

A)        An industry member may not require a retailer to take and dispose of any quota of alcoholic liquors.  Bona fide quantity discounts shall not be deemed to be quota sales.

 

B)        An industry member may not require a retailer to purchase one 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.  However, an industry member is not prohibited from selling, at a special combination price, two or more kinds or brands of products to a retailer provided:

 

i)          The retailer has the option of purchasing either product at the usual price; and

 

ii)         The retailer is not required to purchase any product it does not want.

 

C)        The furnishing of free warehousing by delaying delivery of alcoholic liquors beyond the time that payment for the product is received, or if a retailer is purchasing on credit as permitted by Section 6-5 of the Act, as implemented by Section 100.90 of this Part, delaying final delivery of product beyond the close of the 30-day credit period, is the furnishing of an "of value" service in violation of Section 6-5. 

 

D)        Subsections (d)(5)(A) through (C) notwithstanding, this Section does not prohibit legitimate sales programming among or between the industry tiers in which the primary purpose of the programming is to increase product sales and merchandising to retailers and is not a subterfuge to provide prohibited "of value" inducements to a retailer. These legitimate sales programs are lawful if:

 

i)          Sales incentives are temporary and designed and implemented to produce product volume growth with retailers;

 

ii)         The sales incentives to retailers are based on volume and discounted pricing, including discounts in the form of cash, credits, rebates, alcoholic liquor products, and product displays; 

 

iii)        The sales incentives are documented on related sales or credit memoranda; and

 

iv)        The sales incentives are offered to all similarly situated retailers.

 

E)        The use of product credits and rebates, such as "end of month", "end of year", "end of period", or other such temporary cumulative discounts, credits and rebates from an industry member to a retailer is an adjustment of the purchase price based on volume purchasing and, as such, is not a violation of Section 6-5 of the Act. These cumulative discounts are considered to be a form of pricing arrangement; provided they are made pursuant to a written agreement, entered into at the time of sale; extend for a specific period of time; are calculated based solely upon the purchases made by the retailer receiving the cumulative discount; and are documented on related sales and credit memoranda.  If the retailer is part of a group of retailers with common ownership, however, cumulative discounts, credits or rebates may be provided in one aggregate payment for all retailers within the common ownership structure.  In this case, the cumulative discount, credit or rebate must be calculated based upon the volume purchases of each individual retailer, with supporting documentation that denotes the portion of the discount, credit or rebate attributable to each individual retailer. 

 

F)         "No Charge" Products.  Price-to-retailer sales incentives that include volume-based discounts on the purchase price, and/or "no charge" products that represent an additional overall discount on the related alcoholic liquor product purchased, is an adjustment of the purchase price based on volume purchasing if made at the time of sale, and if the amount of the product given at no charge with the order is not so great as to constitute a subterfuge in which the pricing aspect is merely a means to provide a retailer with a "gift" or "free" product.  These transactions are not a violation of Section 6-5 or 6-6 of the Act.  However, "penny deals" and other such transactions in which the "no charge" or deeply discounted products (i.e., $.01 per case) are not related to a corresponding volume purchase are considered free product and a violation of Section 6-5 or 6-6.  Deals regarding product closeouts and other such deep discounting, non-ordinary business transactions are not prohibited under this subsection (d)(5)(F).  "No charge" goods must be listed and indicated as such on the invoice to the retailer. The importing distributor or distributor must have records to support the volume-based discount and the purchase price.  The provisions of Section 100.280 prohibiting a licensee from giving away alcoholic liquor for commercial purposes is applicable.

 

6)         Samples.  If a retailer has not purchased a brand of alcoholic liquor from an industry member during the immediately preceding 12-month period, it is not an "of value" violation for an industry member to provide that retailer with not more than 384 ounces of any brand of beer, 3 liters of any brand of wine, and 3 liters of any brand of spirits. These sample requirements do not apply to consumer tastings.

 

7)         Social Media Advertising. An industry member may use social media to advertise product location communications that inform the public where its products may be purchased (retail locators) and pre-announcing any promotional activity to be held on a retailer's premises, if otherwise permitted by the Act, provided:

 

A)        The industry member does not give compensation to, or receive compensation from, directly or indirectly, the retail license holder for social media advertising.

 

B)        If the social media advertising is a product location communication, the purpose of the communication must be limited to allowing a consumer to determine the availability of a specific product at a retailer. If the social media pre-announces promotional activity at a retailer's premise, the focus of the social media advertising must be the product promotion and any reference to the retailer should provide only necessary information, such as location of the event.

 

C)        The advertisement does not contain the retail price of the product.

 

D)        All social media advertising must also comply with all applicable rules and regulations issued by the Alcohol and Tobacco Tax and Trade Bureau of the United States Department of the Treasury.

 

E)        The industry member does not offer social media advertising to a specific retailer to the exclusion of other, similarly situated retailers.

 

8)         Industry Member Promotional Events at Retailer Locations.  Any promotional event sponsored by an industry member at a retailer's premises that primarily promotes the retailer's business and does not promote, or only incidentally promotes, the industry member's brand or brands of products violates the "of value" provisions of Section 6-5 of the Act. Industry member promotional events held at retailer premises must focus on the industry member or brands being promoted and all reference to the retailer in any advertisement shall be limited to the name and address of the retailer, which shall be relatively inconspicuous in relation to the advertisement as a whole.  Promotional events include, but are not limited to, tastings, samplings, bottle signings, public product launch events, or other similar methods of brand promotion.  The promotions shall be available to all similarly situated retailers without a purchase requirement imposed upon a retailer.

 

9)         Consumer Advertising Specialties.  Consumer advertising specialties, which are items, including but not limited to trading stamps, non-alcoholic mixers, pouring racks, ash trays, bottle or can openers, corkscrews, shopping bags, matches, printed recipes, pamphlets, cards, leaflets, blotters, postcards, pencils, shirts, caps and visors, that are intended to be given to and received by the consumer, may be given by an industry member to a retailer, as long as the retailer gives all the items away to consumers.

 

A)        The industry member may not, directly or indirectly, pay or credit the retailer for using or distributing these items, or for any expense incidental to their use.

 

B)        Only if the retailer pays for the consumer advertising specialties may the items be retailer-specific. Consumer advertising specialties must bear conspicuous and substantial advertising matter about the brand or the industry member.

 

10)         Educational Seminars. An industry member may give or sponsor educational seminars for employees of retailers either at the industry member's premises or at the retail establishment.  Examples of these educational seminars include seminars dealing with use of a retailer's equipment, training seminars for employees of retailers, or tours of the industry member's plant premises.  This subsection (d)(10) does not authorize an industry member to pay a retailer's expense in conjunction with an educational seminar (such as travel and lodging).  Industry members may provide nominal hospitality during the event, including meals and local transportation.

 

11)         Industry members may service, balance or inspect draft beer, wine or distilled spirits systems at regular intervals, and may provide labor to replace or install rods, taps, faucets, fittings and lines in draft beer, wine or distilled spirits dispensing equipment.  However, free cleaning of coils by an industry member or by a company whose services are paid for by an industry member shall be considered something of value in violation of Sections 6-5 and 6-6 of the Act.

 

12)         Courtesy wagons, coil boxes, cold plates or pumps may be supplied to a retailer, by an industry member,  free of charge one time per year for a one-day period.  However, the industry member shall not supply free beer, wine or distilled spirits to a retailer for the event.

 

13)         Courtesy wagons, coil boxes, cold plates or pumps may be supplied to a retailer, by an industry member, for an event that is given by or under the auspices or sponsorship of a municipal, religious, charitable, fraternal or social organization that is a holder of a Special Event License.  However, the industry member shall not supply free beer, wine or distilled spirits to a retailer for the event.

 

14)         Product Donations.  An industry member may make contributions of cash, alcoholic liquor products, non-alcoholic products, services, equipment or signs to a not-for-profit organization, including but not limited to charitable organizations, religious organizations, trade associations, political organizations, and fraternal organizations.  An industry member may not make contributions of alcoholic liquor products to any not-for-profit organization that has a local municipal and State of Illinois retail license.  These donations shall be subject to the following conditions:

 

A)        Donations of alcoholic liquor products may not be given for commercial purposes.  The proof of donative intent is on the industry member;

 

B)        An industry member must maintain invoices on its licensed premises for a period of three years for all alcoholic liquor products donated to not-for-profit organizations;

 

C)        Signage dollar limitations contained in Section 6-6 of the Act do not apply to signage and advertising materials donated to a not-for-profit organization; and

 

D)        Advertising and signage referencing the industry member must be reasonably commensurate with a donative intent to ensure that the charitable donation is not being made for a commercial purpose, in violation of Section 100.280.  The proof of donative intent is on the industry member. 

 

15)         Customized Label for Wine and Spirits Products.  Wine or spirits customized label programs may be offered by industry members to retailers.  A customized label program is defined as a sale in which the retailer purchases a single barrel of wine or spirits and the retailer has the option of selecting the product blend, age, estate, barrel or wood type in which the wine or spirits is stored or aged.  Custom label programs must be offered to all similarly situated retailers who agree to purchase the program, under the following guidelines:

 

A)        All formulas and brand rights to the wine and spirits products must be owned by industry members; no brand rights to the wine or spirits product, or exclusive use of the blend or product options, may be offered to, or accepted by, the retailer;

 

B)        An individual, non-exclusive custom label may include the retailer's name, provided there is a matching Federal Certificate of Label Approval and no language on the label or container suggests or implies that the wine or spirits is exclusive to the retailer; and

 

C)        Any product displays that are a part of the customized label program must adhere to the rules on product displays set forth in subsection (d)(3).

 

16)         Non-Alcoholic Merchandise.  An industry member who is also in business as a bona fide producer or vendor of merchandise other than "alcohol", "spirits", "wine", "beer" or "alcoholic liquor", as those terms are defined in Article I of the Act, may furnish, give, sell or offer to sell that non-alcoholic merchandise to retailers as provided in Section 6-6.3 of the Act.  However, non-alcoholic merchandise may not be used by an industry member to induce or cause a retailer to engage in any activity prohibited by the Act or this Part.

 

17)         Stocking, Rotation, Resetting, and Pricing Services

 

A)        Industry members, at retail licensed establishments, may stock alcoholic liquors they sell, provided that alcoholic liquor products of other industry members are not moved, altered or disturbed.  This stocking may be done only during the course of, or within 24 hours after, a regular sales call or delivery to the retailer. The stocking is considered service incidental to a sales call or delivery.  Stocking is defined as any placing of alcoholic liquors where they are to be stored or where they are offered for sale. 

 

B)        Industry members may rotate their own alcoholic liquor products at a retailer's premises during the normal course of a sales call or a delivery.  Rotation is defined as moving newer, fresher product from a storage area to a point-of-sale area and the replenishing of the point-of-sale area with fresh product.  Rotation may be performed at any location within a retailer's premises.

 

C)        Industry members are permitted to participate in or be present at merchandising resets conducted at a retailer's premises no more than four times per year.  Resets are defined as large-scale rearrangement of the alcoholic liquor products at a retailer's premises.  During resets, industry members may stock or restock entire sections of point-of-sale locations at the retailer's premises.  No reset shall occur without at least 14 days prior notice made by the retailer to all industry members whose alcoholic liquor products are carried by the retailer.  Industry members may only move, alter, disturb or displace their alcoholic liquor products and the products of properly notified but nonattending industry members. 

 

D)        Industry members may provide to retailers recommended diagrams, shelf plans or shelf schematics that suggest beneficial display locations for their alcoholic liquor products at the retailer's premises.  Industry members may not condition pricing discounts, credits, rebates, access to brands, or provision of any other item or activity permissible under the Act or this Section upon a retailer's choice to implement or not implement diagrams, shelf plans or shelf schematics.

 

E)        Industry members may not affix prices to products on behalf of retailers.  This prohibition includes the indirect affixing of prices to product, including entering prices into a retailer's computer system.  This prohibition does not prohibit industry members, after stocking a shelf, from affixing shelf tags that identify the product and price of the alcoholic liquor; however, at no time may an industry member delegate or contract this service to a third party.  Shelf tags are considered point-of-sale advertising materials and are subject to the provisions of Section 6-6 of the Act.  If permitted stocking by an industry member involves movement and a change in the placement of its product on the retailer's shelf, shelf tags may be moved to the new position of the product. 

 

(Source:  Added at 42 Ill. Reg. 22577, effective November 29, 2018)