Section 100.5  Penalties

Any licensee who violates these Rules and Regulations or any part thereof adopted by the Commission under authority vested in it by Section 3-12(2) of the Liquor Control Act [235 ILCS 5/3-12(2)] will be subject to the penalties of revocation or suspension or fine as set forth in Section 3-12(1) of the Act [235 ILCS 5/3-12(1) or to the penalties as prescribed in Sections 10-1 and 10-4 of the Act [235 ILCS 5/10-1 and 10-4].

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

Section 100.10  Definitions

The following words or phrases are defined as follows:

"Act" means the Liquor Control Act of 1934 [235 ILCS 5].

"Airplane" shall be deemed to include railroads and airplanes.

"Alcoholic Liquor" includes alcohol, spirits, wine and beer, and every liquid or solid, patented or not, containing alcohol, spirits, wine or beer, and, in the judgment of the Commission, capable of being consumed as a beverage by a human being. The word "solid" means any substance which, by dilution or processing, becomes an alcoholic beverage. [235 ILCS 5/1-3.05]

"Commission" means Illinois Liquor Control Commission.

"Co-branded alcoholic beverage" means any alcoholic liquor containing the same or similar brand name, logo, or packaging as a non-alcoholic beverage.

"Co-partnership" means an association of two or more persons to carry on as co-owners of a business for profit.

"Corporation" means any corporation, domestic or foreign, qualified to do business in the State of Illinois under the Business Corporation Act of 1983 [805 ILCS 5], including a limited liability company as defined in this Section.

"Department" means the Illinois Department of Revenue.

"Event" means a single theme.

"IAPA" means the Illinois Administrative Procedure Act [5 ILCS 100].

"Immediately adjacent" means directly touching or immediately bordering one another from above, below, or the side. "Immediately adjacent" does not include a separate aisle.

"Limited Liability Company" means a legal business entity created and recognized under the Illinois Limited Liability Company Act [805 ILCS 180].

"Manager" or "Agent" means any individual employed by any licensed place of business, provided the individual possesses the same qualifications required of the licensee. Satisfactory evidence of such employment will be furnished the Commission in the form and manner as the Commission shall from time to time prescribe.

"Manufacturer" means every brewer, fermenter, distiller, rectifier, wine maker, blender, processor, bottler or person who fills or refills an original package, whether for themself or for another, and others engaged in brewing, fermenting, distilling, rectifying or bottling alcoholic liquors.  "Manufacturer" shall include every person who, in the process of filling or refilling an original package with alcoholic liquors purchased by such person, changes the degree or quality of such alcoholic liquors by any manner or means whatsoever. [235 ILCS 5/1-3.08]

"Meal" means food that is prepared and served on the licensed premises and excludes the serving of snacks.

"Minor" means a person under 18 years of age. (See A.G. opinion No. S-672 12/27/73.)

"Partner" is any individual who is a member of a co-partnership.

"Person" includes corporations, co-partnerships, associations, clubs, individuals, trustees, receivers, assignees, and executors, administrators or other personal representatives of decedents.

"Premises" or "Place of Business" means the place or location where alcoholic beverages are manufactured, stored, displayed, or offered for sale or where drinks containing alcoholic beverages are mixed, concocted and served for consumption. Not included are sidewalks, streets, parking areas and grounds adjacent to any such place or location.

"Resident" means any person (other than a corporation) who has resided, and maintained a bona fide residence, in the State of Illinois for at least one year and in the city, village or county in which the premises covered by the license are located for at least 90 days prior to making application for such license.

"Retail sales floor" means the part of a retailer's premises that contains goods on display that are freely accessible to the consumer.

"Service Bar" means a place or location not within view of the general public where beer and wine may be poured and served through a draught system. A service bar may only be located in a kitchen, food preparation area, or wait or server station area of a retail licensee who primarily serves meals, as described in this Section.

"Tasting" means a supervised presentation of alcoholic products to the public at an off-premise licensed retailer for the purpose of disseminating product information and education, with consumption of alcoholic products being an incidental part of the presentation.  Only products registered with the Commission may be tasted in the following amounts:  Distilled Spirits ¼ oz., Wine 1 oz., and Beer 2 oz.; notice of the tasting may be given.  Tasting must be done by a licensee and/or a registered tasting representative in accordance with Section 100.40.

"Test Marketing" means to test new products or products unfamiliar to the sampler through a marketing firm or the like.

"Wine" means any alcoholic beverage obtained by the fermentation of the natural contents of fruits, vegetables or honey, containing sugar, including such beverages when fortified by the addition of alcohol or spirits, provided that the alcoholic content does not exceed 24 per cent of alcohol by volume. [235 ILCS 5/1-3.03]

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

Section 100.20  Employment of Minors

In the sale, distribution or delivery of alcoholic liquors, no retail alcoholic liquor licensee may employ, with or without compensation, or in any way directly or indirectly, use the services of a minor.

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

Section 100.30  Violation of Federal Law, State Statute or City, Village or County Ordinance or Regulation

a)         No person holding a license issued by the Commission shall in the conduct of the licensed business or upon the licensed premises:

1)         Violate any Federal law or State statute.

2)         Violate any city, village, town or county ordinance or resolution regulating the sale of alcoholic liquors.

3)         Suffer or permit a violation of any Federal law or law of the State of Illinois, or of any rule of the Commission.

4)         Suffer or permit a violation of the city, village, town or county ordinance or resolution regulating the sale of alcoholic liquor.

b)         Violations may be proved by evidence that the licensee has been convicted of a violation of a Federal law or a law of the State of Illinois in the conduct of the licensed business or upon the premises, or has been found guilty of violating any city, village, town or county ordinance or resolution regulating the sale of alcoholic liquors.

c)           Proof before this Commission of facts which establish a violation of any Federal law, State statute, city, village, town or county ordinance or resolution or rule of the Commission, shall be sufficient cause for imposing a fine, revocation or suspension of any license issued by the Commission, irrespective of whether or not a conviction has been obtained in any court.

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

Section 100.40   Registration of Tasting Representatives

a)         Any non-licensee wishing to conduct a tasting as defined in Section 100.10 must register with the Commission.  A registered tasting representative acts as the agent of the licensee.

b)         Registration is fulfilled by submitting a Commission form including the name, address, social security number and telephone number of the registrant; name, address and telephone number of the licensee for which the registrant will be acting and any other licensee being represented; and a $100 administrative fee payable annually to the Commission.  Registration shall be completed at least 14 days prior to the initial tasting.  Any application received less than 14 days prior to the initial tasting will be assessed a $25 late fee.

c)         Registration identification, or a copy thereof, must be available for inspection during a tasting.

d)        Any applicant must meet all eligibility requirements as stated in 235 ILCS 5/6-2.

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

Section 100.50  Advertising

a)         General Requirements:

Federal Alcohol Administration Regulation No. 4 relating to the advertising of wine (27 CFR 4 (1998), no subsequent dates or editions), Federal Alcohol Administration Regulation No. 5 relating to the advertising of distilled spirits (27 CFR 5 (1998), no subsequent dates or editions) and Federal Alcohol Regulation No. 7 relating to the advertising of malt beverages (27 CFR 7 (1998), no subsequent dates or editions) are hereby adopted and made a part of this Section for advertising of wine, distilled spirits and malt beverages insofar as the federal regulations are not contrary to, or inconsistent with, the provisions of the laws of Illinois or this Part.

b)         Advertising:

1)         No licensee, or the agent or representative thereof, may advertise any alcoholic beverage in any medium intended for circulation, viewing or listening within this State unless such advertisement is in conformity with the provisions of this Part.

2)         Such advertisement shall conform to the approved label upon the immediate container of the alcoholic liquor advertised.

3)         Such advertisements shall not contain illustrations of children nor shall they make use of any material which would make a special appeal to juveniles.

4)         Such advertisements shall not contain any material which is false or untrue in any respect.

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

Section 100.60  Geographical Territories

a)         Every manufacturer, distributor, importing distributor, foreign importer or nonresident dealer who owns or controls the trademark, brand or name of any alcoholic liquor, sold or intended for sale in Illinois, shall register with the Commission the names of all persons to whom the right is granted to sell or distribute alcoholic liquor, at wholesale, specifying the trade-mark, brand or name of the alcoholic liquor, and the geographical territory or territories for which such distributing rights have been given.  A copy of the Registration Statement and Withdrawal of Registration filed with the Commission shall be sent certified or registered mail to all those listed thereon to serve as notice of the contents.

b)         No such registration shall be made by any one other than the manufacturer, distributor, importing distributor, foreign importer or nonresident dealer owning or controlling such trade-mark, brand or name.

c)         No distributor, importing distributor or foreign importer shall sell, purchase, receive or distribute at wholesale in Illinois, or shall transport or cause to be transported for sale at wholesale in Illinois any alcoholic liquor, bearing any such trade-mark, brand or name outside of the respective geographical territory for which distributing rights have been given such distributor, importing distributor, or foreign importer as registered with the Commission in accordance with the provisions hereof.

d)         No retailer may, knowingly purchase or receive for sale at retail any alcoholic liquor, bearing any such trade-mark, brand or name from any distributor not having distributing rights in the geographical area in which the place of business of such retailer is situated.

e)         No manufacturer, distributor, importing distributor, foreign importer or nonresident dealer shall wilfully fail to register with the Commission as herein provided.

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

Section 100.70  Labels

a)         No manufacturer, nonresident dealer, distributor or importing distributor shall sell or deliver any package or container containing alcoholic liquor manufactured or delivered by that person unless the package and/or container is labeled in conformity with this Section.

b)         General requirements and Restrictions:

1)         Federal Alcohol Administration Regulations Nos. 4, 5 and 7 relating to the labeling of wine, distilled spirits and malt beverages (27 CFR 4, 5, and 7, April 1998, not including any later amendments or editions) are hereby adopted and made a part of this Section for labeling every package or container of wine, distilled spirits and malt beverages, with the following exception: wine includes all products as defined in Section 1-3.03 of the Act [235 ILCS 5/1-3.03] and Section 100.10 of this Part.

2)         The aforesaid regulations shall apply to wine, distilled spirits and malt beverages packaged purely for intrastate commerce within the State of Illinois to the same extent as though intended for interstate or foreign shipment.

3)         No manufacturer, nonresident dealer, distributor or importing distributor shall affix any label to any package or container containing alcoholic liquor for sale or delivery in the State of Illinois until such label has been submitted to and approved by the federal government. Such manufacturer, nonresident dealer, distributor or importing distributor shall submit to the Commission a photostatic copy of the federal label approval.

4)         Wine Labels

A)        Wine labels must contain the name and address of the manufacturer or the bottler of the product.

B)        For the purpose of this Section, the use of an assumed trade name which has been registered with the Clerk of the County in which the manufacturer or bottler is located is acceptable.

5)         Malt Beverage Labels

A)        Malt beverage labels must contain the name and address of the brewery which manufactured or canned or bottled the product.

B)        For the purpose of this Section, the use of an assumed trade name which has been registered with the Clerk of the County in which the manufacturer or bottler is located is acceptable.

6)         Distilled Spirits Labels

A)        Labels of all alcoholic liquors other than wine and malt beverages must contain either the phrase "Bottled By" or "Distilled By" (or other descriptive identification of the manufacturer of the product) followed by the name and address of the bottler or manufacturer, as the case may be.

B)        For the purpose of this Section, the use of an assumed trade name which has been registered with the Clerk of the County in which the manufacturer or bottler is located is acceptable.

7)         No statement of age shall be made with respect to gins, cordials, liqueurs or specialties.

8)         The Commission shall withhold approval of any label if it has reasonable cause to believe that the wording or design contained on the label may, in any manner, tend to deceive the purchaser as to the true nature of such alcoholic liquor.

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

Section 100.80  Bonds (Repealed)

(Source:  Repealed at 8 Ill. Reg. 6041, effective April 19, 1984) 

Section 100.90  Credit to Retail Licensees

The following rule shall govern in the application of the provisions of Section 6-5 of the Act [235 ILCS 5/6-5] relating to extension of credit to retail licensees by manufacturers, distributors and manufacturers with limited self-distribution privileges:

a)         When two or more retail licensees are controlled by common ownership and one or more of the retail licensees becomes delinquent, all retail licensees under the common ownership shall be deemed delinquent. "Common ownership" shall be any ownership interest of more than 5% of the total ownership interests in each retailer.

b)         In totaling the 30 day period for the purpose of determining the delinquency of a retailer, the first day shall be the day immediately following the date of the invoice of the purchase in question, if the invoice date and delivery are the same, and on the delivery date if the invoice is dated before the date of delivery, and all successive days shall be included, Sunday as well as holidays, up to and including the thirtieth successive day.

c)         When a bona fide sale of a retail business occurs, the purchaser shall not be deemed delinquent because of the delinquency of the purchaser's predecessor in interest; however, in the event there is a continuity of interest, direct or indirect, between the seller and the purchaser, including, but not limited to, a change in control of the retailer licensee that requires notification to be filed with either the Commission or any local liquor control commissioner, the latter shall be deemed delinquent in the same manner, and to the same extent, as was the seller.  In the event any bankruptcy proceeding is instituted by or against a retail liquor licensee, the "automatic stay" provision of the federal bankruptcy law mandates that the retail liquor licensee not be reported as "delinquent" pursuant to Section 6-5 of the Act.  In order for that retail liquor licensee to continue to purchase alcoholic liquors, although not on credit, the properly filed bankruptcy petition must be served upon the Commission and the Wine and Spirits Distributors of Illinois (WSDI).  Upon service of the filed petition on the Commission and WSDI, that retailer shall be automatically suspended from the delinquency list, if the retail liquor licensee was on the list. Additionally, proper service shall automatically suspend the application of the Illinois 30-day credit law (Section 6-5 of the Act) to any importing distributor, distributor or self-distributing manufacturer as to that retailer during the pendency of the bankruptcy petition.  Nothing in this Section shall limit or foreclose importing distributors, distributors or self-distributing manufacturers from requiring retailers with pending bankruptcy actions to remit payment for wine and distilled spirits products on a COD or pre-payment prior to delivery basis.

d)         When there exists a bona fide dispute between the retailer and the importing distributor, distributor or manufacturer as to the fact of payment for a given sale, the sale in itself shall not be deemed sufficient grounds for considering the retailer delinquent.  Bona fide disputes shall be submitted to the Commission for hearing, which shall be expedited and heard at the next regularly scheduled meeting of the Commission.

e)         When a retailer pays a salesman, or other agent of the importing distributor, distributor or manufacturer, the payment shall be deemed effective upon the receipt of the money or check by the salesman or other agent.

f)         When a retailer is deemed delinquent and, therefore, not able to purchase for cash, or otherwise, any alcoholic liquors, the retailer may, nevertheless, purchase beer for cash.

g)         Payment received from a delinquent retailer after the first business day of the calendar week and before a verified written statement of delinquency has been submitted to the Commission will entitle the manufacturer, importing distributor or distributor submitting the list to delete that retailer's name from the list.

h)         Determinations of delinquency or non-delinquency shall be made by the Chairman, Executive Director or any individual so authorized by the Chairman or Executive Director on the basis of the verified report of delinquency and any affidavits or counter-affidavits before him or her. Any retail licensee objecting to the determination may request the Commission in writing for a hearing that will be set at the next regularly scheduled meeting of the Commission.

i)          A copy of any verified written list of delinquencies shall be simultaneously caused to be forwarded to listed retail licensees by the manufacturer, importing distributor or distributor submitting the list.

j)          Payment in cash by the retail licensee shall mean payment in legal tender as provided by the United States Code, checks (including certified checks, cashier's checks, teller's checks or traveler's checks), debit cards, drafts and electronic transfer of funds, provided the transfer of funds is initiated by an irrevocable payment order on or before the date payment is due.

k)         Checks are the equivalent of payment in cash so long as they are not post-dated and are deposited by the importing distributor, distributor or manufacturer in the ordinary course of business.  For purchases of wine and spirits, a post-dated check cleared prior to the end of the 30-day credit period, including any properly disclosed finance, delivery or other usual and customary charges in the industry, is considered to be a valid payment. An "NSF", void or stop payment check for purchases of wine and spirits that is properly replaced with cash or cash equivalent before the end of the 30-day period, including any properly disclosed usual and customary charges in the industry, is considered a valid payment.

l)          Manufacturers, importing distributors or distributors may include finance, delivery and any and all usual and customary charges in the industry on credit issued and not paid and may charge usual and customary charges for NSF, void or stop-payment checks, provided a statement is printed on the original invoice delivered to the retailer at the time the merchandise is received indicating that the usual and customary charges will be assessed, with a statement specifying the terms and amounts of charges imposed.  The charges, properly disclosed to the retailer, are considered to be part of the cost of the merchandise sold as of the invoice date and, therefore, the entire amount, including any usual and customary charges, must be paid before the retailer can be considered to be non-delinquent.  All such usual and customary charges must be applied uniformly to all retailers.

m)        A retailer may not charge a distributor, importing distributor or manufacturer for the costs of electronic transfers, nor may a distributor, importing distributor or manufacturer charge a retailer for the costs of electronic transfers.  A retailer may not require a distributor, importing distributor or manufacturer to purchase or lease any software necessary to effectuate electronic transfers, nor may a distributor, importing distributor or manufacturer require a retailer to purchase or lease software necessary to effectuate electronic transfers.  The use of the system must be available, but cannot be mandated as a requirement for conducting business, to all distributors, importing distributors, manufacturers and retailers.  The use of a specific Value Added Network (VAN) cannot be mandated; all users of the system must be allowed to transmit information through any VAN.  The users of the system must continue to maintain all required records of alcoholic beverage purchases and sales.  The Commission shall have access, upon reasonable notice, to the systems for the purpose of inspection and review.

n)         The use of electronic fund transfers shall be allowed so long as the transfer of funds is initiated by an irrevocable payment order on or before delivery of the alcoholic liquor and the transfer is supported by appropriate documentation.

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

Section 100.100  Internal Changes Within Corporations

All corporations, partnerships, co-partnerships, limited liability companies, or other non-natural "persons" licensed by the Illinois Liquor Control Commission must report to the Commission within 30 days all internal changes in the corporation, partnership, co-partnership, limited liability company, or other non-natural "person" pertaining to change of name, officers, directors and stockholders holding in the aggregate more than five percent of the corporation stock, and shall include the name, home address, sex, date of birth, social security number, position and percentage of ownership (if any) not previously reported.  In the event that the ownership of the licensee corporation, partnership, co-partnership, limited liability company, or other non-natural "person" licensed by the Commission is by another or other such corporations, partnerships, co-partnerships, limited liability companies, or other non-natural "person,"  such licensee must report the name, home address, sex, date of birth, social security number, position and percentage of ownership (if any) of the individuals holding in the aggregate more than a five percent ownership interest in the corporation, partnership, co-partnership, limited liability company, or other non-natural "person."

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

Section 100.110  Application Forms

At least one person eligible to be issued, and to sign the application for, a liquor license must be 18 years of age or older (e.g., officer, director, stockholder, manager, agent or partner).

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

Section 100.120  Railroad Licenses

a)         A railroad license shall be required for every club, buffet, lounge or dining car on a railway operating in the State of Illinois on which alcoholic liquors are sold or offered for sale. Likewise, a railroad license is required for every such railroad car to which deliveries of alcoholic liquors intended to be offered for sale or sold thereon are made within the State of Illinois, even though such offer for sale or sale will only be made beyond the borders of the State of Illinois.

b)         Only one application is required to be filed by each operator, but the application shall state thereon, or upon schedules submitted therewith, the names, numbers and classification of all cars for which a railroad license is required as provided in paragraph a above.

c)         A railroad license shall be issued for each car described in an application. Each license shall state the name, number and classification of the car to which it applies. Such license shall at all times be displayed in the car to which it applies in the manner provided in the Act, or the railroad licenses shall be maintained at the licensee's business premises in Illinois.

d)         If during any licensing period any car for which a license has been issued for any reason ceases to operate in or over the State of Illinois and another is substituted in its place, a new license will not be required for the car substituted, but the operator must transfer the issued license from the licensed car to the substitute car.

e)         It is the intent and purpose of this Rule to require a license for each car in which alcoholic liquors are sold or offered for sale in or over the State of Illinois. Any operator who, by reason of changes of schedules, additions of trains or equipment, or otherwise, increases the number of cars for which licenses are required beyond the existing number of licenses theretofore issued to such operator during that licensing period, shall make an application and receive a license for each added or additional car.

f)         A railroad license permits the sale of alcoholic liquors only for consumption upon the train on which they are sold. No railroad licensee or any agent or employee thereof, is permitted to sell and deliver to any purchaser any alcoholic beverage in an unopened original package.

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

Section 100.130  Books and Records

a)         It is the duty of each manufacturer, importing distributor, distributor and foreign importer to keep at all times complete and accurate records of all purchases and all sales or other dispositions of alcoholic liquor, and complete and accurate records of alcoholic liquor produced, manufactured, compounded or imported, whether for the licensee or for another. All books and records, which manufacturers, distributors, importing distributors and foreign importers are required by the Act to keep, shall be preserved for a period of three (3) years, unless the State Commission in writing authorizes their destruction or disposal at an earlier date.

b)         Each such licensee is required to retain invoices and bills of lading covering sales of alcoholic liquors.

c)         Each manufacturer, distributor, importing distributor and foreign importer must at the time of sale of any alcoholic liquors render to the purchaser an invoice describing the alcoholic liquor sold, the date of sale, to whom sold and the quantity sold. Duplicate copies of all such invoices must be made and preserved by such manufacturer, distributor, importing distributor and Foreign importer for audit purposes.

d)         Each manufacturer, distributor, importing distributor and foreign importer shall keep a ledger or other records giving the name, license number and expiration date, and address of each purchaser of alcoholic liquors and information concerning each purchase, including invoice number, date of sale, amount of sale and date of payment therefor.

e)         It is the duty of each retail licensee to keep on the licensed premises invoices, or copies thereof, covering purchases of alcoholic liquor for a period of 90 days after such purchase, unless the State Commission has granted a waiver in response to a written request in cases where books and records are kept at a central business location within the State of Illinois.  If granted a waiver, each licensee will be required to have at each location a copy of the waiver granting permission to have the invoices located at a central business location.  A copy of the waiver must be available for inspection at the location of the business within 30 days of the date of the signed waiver.  An administrative fee of $10.00 per location, or $100 maximum for businesses with multiple locations of 10 or more, will be assessed.  Before any change is made in the central business location where the invoices are to be kept, the Illinois Liquor Control Commission should be notified and a new waiver request form must be submitted to the Illinois Liquor Control Commission for prior approval.  The waiver will remain effective unless and until a new waiver request has been approved by the Illinois Liquor Control Commission.  Periodic updates may be required.

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

Section 100.140  Miniatures (Repealed)

Section 100.150  Salvaged Alcoholic Liquors

a)         Insurance companies or their duly authorized representatives may take possession of alcoholic beverages insured by such companies and damaged as a result of flood, wreck, fire or similar occurrence, for which insurance was provided.

b)         Common carriers or their duly authorized representatives may take possession of alcoholic beverages transported by such carrier and damaged in transit.

c)         Alcoholic beverages salvaged may be sold to retail licensees provided the conditions enumerated in this Section have been complied with. Alcoholic beverages so salvaged shall be referred to as "distressed merchandise".

d)         Each container of alcoholic beverages sold pursuant to this Section shall be labeled to identify the goods as distressed merchandise. The letters on the label shall be no smaller than 12 point type, bold faced. The label shall be no less than two inches long and one inch wide, and shall be affixed diagonally over the regular label on each container prior to delivery to any retail licensee. The label once applied shall not be capable of removal without damaging the label or causing damage to the underlying product label.  The following statement shall be printed on the label: "The alcoholic beverages contained herein have been designated distressed merchandise by the Illinois Liquor Control Commission. This container has been salvaged from a fire, flood, wreck or similar catastrophe. This label is not affixed by the manufacturer. Do not remove this label."

e)         Any insurance company, common carrier, or representative of either, seeking to sell distressed merchandise shall first obtain a distributor's license from the Commission. The application shall provide, "The applicant seeks to sell distressed merchandise in Illinois." Retailer's licenses may also be applied for, if the insurance company, common carrier, or representative of either, seeks to sell alcoholic liquors to consumers in Illinois.

f)         Alcoholic beverages so salvaged outside of Illinois may not be imported into Illinois for purposes of sale pursuant to this Section. Prior to release of distressed merchandise for sale in Illinois, an affidavit by the insurance company's or common carrier's authorized representative must be presented to the Commission stating first hand knowledge that the distressed merchandise was salvaged from a fire, flood, wreck or similar catastrophe which occurred within the State of Illinois, stating with particularity the time, place and nature of the occurrence, and a complete inventory of the items so salvaged, including the quantity, brand names and container sizes.

g)         In the event the tax provided under Art. VIII of the Act [235 ILCS 5/Art. VIII] is unpaid on the distressed merchandise, the applicant shall make payment of the tax on such merchandise to the Department of Revenue, and evidence of payment must be presented to the Commission prior to release of such distressed merchandise for sale in Illinois.

h)         An entity seeking to sell distressed merchandise shall also indicate on its letter of application to sell such distressed merchandise in Illinois whether the sale shall be by auction or to a designated licensee. If the sale shall be by auction, the time and place of the auction and the name of the auctioneer or other person authorized to sell such distressed merchandise shall be listed. If the sale is to be made directly to a given licensee or licensees, the name and address of the licensee or licensees, together with the current State retail liquor license number of such licensee or licensees, shall be listed. No sale may be made by auction to any person, firm or corporation not licensed under the provisions of the Act.

i)          Written approval and release for sale made under this Section must first be obtained from the Commission. Approval and release shall not be issued until a physical inspection has been made of the merchandise by an authorized representative of the Commission in order to determine that the seller has complied with this Section. After any sale of distressed merchandise has been completed, the insurance company, common carrier, or their representative, shall report in writing to the Commission the name of the licensee or licensees who purchased the distressed merchandise and the quantities and brand names of such distressed merchandise.

j)          In the event that the seller disposed of less than the entire inventory of distressed merchandise, the written report shall list the remaining inventory, indicating the quantity, container sizes and brand names, the place where such inventory is stored, and the person in control or possession of such inventory.

k)         No distressed merchandise shall be sold in Illinois where the original packages have been so damaged as to render the label illegible, or when the substantive labeling requirements under Section 6-7 of the Act [235 ILCS 5/6-7] and under Section 100.70 are not complied with as a result of the damage to the container.

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

Section 100.160  Sanitation

a)         All licensees must conduct their business in premises which are at all times kept clean and sanitary. This applies not only to licensed premises, but to places of storage as well. This includes also the place of storage for materials and equipment used in the manufacture of alcoholic liquor.

b)         Cleaning Requirements

1)         Each retailer, not using one of the systems referred to in subsection (b)(2), dispensing draught beer or wine shall have coils and other equipment used in drawing draught beer or wine cleaned at least once every week in some manner or means, either chemical or mechanical. The use of steam or hot water alone is not permissible.

2)         Retailers utilizing systems such as "glycol," "constant cold," "electronic," or "constant cleaning," which are designed to prevent build-up of contaminants in the dispensing system, shall be required to have coils and other equipment used in drawing draught beer or wine cleaned at least once every two weeks in some manner or means, either chemical or mechanical, and monitor the operation of the system to determine it is operational and to verify its proper functioning, at least once every week.

3)         A record shall be kept of the dates when the cleaning was done, signed by the person who actually performed the cleaning and monitoring.

c)         No retail licensee shall offer for sale or possess on the licensed premises any bottles, casks or other containers of alcoholic liquor which contain any deleterious, contaminated, filthy, or putrid substance or insects.

d)         No licensed manufacturer or importing distributor shall fill or refill any container of alcoholic liquor unless such person possesses upon the licensed premises adequate and sanitary equipment for cleaning, washing and sterilizing such container, and uses such equipment before filling or refilling a container.

e)         Pre-mixed alcoholic beverages and their containers must comply with all sanitation requirements found in this Section, along with all prohibitions against refilling found in Section 100.290(c).  All pre-mix dispensing containers or systems must be drained, contents disposed of, and thoroughly cleaned at least once every week.  For mechanical systems a record shall be kept on the premises as to the dates the cleaning was done, signed by the person who actually performed the cleaning.

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

Section 100.170  Taps

a)         Each retail licensee selling malt beverages or wine on draught for consumption on the premises shall display a sign on, over or near each tap or faucet showing the trademark, brand or name of alcoholic liquor. This sign must be visible to patrons for a distance of at least ten feet unless it is a service bar as defined in Section 100.10.

b)         Pursuant to subsection (a) of this Section, no licensee shall substitute any other brand of malt beverages or wine in place of the brand designated by such visible sign and the licensee shall be prepared at all times to serve any malt beverages or wine that are advertised by such sign or signs upon the premises.

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

Section 100.180  Procedure Before Commission on Citations

a)         The Commission shall have the right to proceed by citation and notice of hearing to require any licensee of the Commission to appear at a time and place specified in the notice to show cause why its State liquor license should not be suspended or revoked or a fine imposed for violations of the Illinois Liquor Control Act or this Part.

This Commission shall also have the right to proceed by citation and notice of hearing against a licensee for failure to respond to any Commission correspondence.  This correspondence shall include but is not limited to any Violation Discharge Letters, Offers in Compromise, and Pre-Disciplinary Conferences.

b)         All such original proceedings shall be instituted by complaint in writing, shall state the particular provision, rule or regulation alleged to have been violated and the facts in detail upon which such allegation is based and shall be signed by the Chairman or any member of the Commission.

c)         The licensee against whom a complaint has been filed shall be entitled to be served with a copy of the complaint or citation and shall be given notice of the time and place set for the hearing of the complaint.

d)         A citation and notice of hearing shall be served on the licensee named in the citation not less than 10 days prior to the date specified in the notice of hearing.

e)         The licensee named in the citation and notice of hearing shall appear at the time and place designated in the citation and notice of hearing.

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

Section 100.190  Procedure Before Commission on Request for Continuance of Any Hearing

a)         A request for a continuance of any hearing in any matter before the Commission will not be allowed unless for a good and valid reason and unless made at least five (5) days prior to the date set for the hearing.

b)         The Commission may in its discretion grant a continuance if extenuating and unusual circumstances are presented in support of the request for continuance.

Section 100.200  Wagering Stamps (Repealed)

(Source:  Repealed at 8 Ill. Reg. 6041, effective April 19, 1984) 

Section 100.210  Inducements

a)         Distributors servicing, balancing, or inspecting draft beer or wine systems at regular intervals, and providing labor to replace or install rods, taps, faucets, fittings and lines in draft beer or wine dispensing equipment, shall not be considered a subsidy. However, free cleaning of coils by a distributor or by a company whose services are paid for by a distributor shall be considered a subsidy, or something of value in violation of Sections 6-5 and 6-6 of the Act [235 ILCS 5/6-5 and 6-6].

b)         Courtesy wagons and/or coil boxes and pumps may be supplied by a distributor free of charge one time per year for a one day period to a retail liquor licensee for picnics held by the retailer for the retailer's customers. However, this is not to be construed to mean that free beer or wine may also be supplied to a retail licensee.

c)         Courtesy wagon and/or coil boxes and pumps may be supplied by a distributor for a picnic, carnival or social event that is given by or under the auspices or sponsorship of a municipal, religious, charitable, fraternal or social organization and that will be licensed as a Special Event Retailer.  However, this is not to be construed to mean that free beer or wine may also be supplied to a retail licensee.

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

Section 100.220  Retail Licensee Clubs (Repealed)

(Source:  Repealed at 8 Ill. Reg. 6041, effective April 19, 1984)

Section 100.230  Resumption of Business on Appeal

a)         In any case where a licensee appeals to the Illinois Liquor Control Commission from an order of the Local Liquor Control Commission, fining, suspending or revoking a license, or denying a renewal application and in which latter circumstance said licensee shall have on deposit with the Local Liquor Control Commission an amount sufficient to cover the license fee for the renewal period and any bond that may be required, the licensee may resume the operation of the licensed business pending the decision of the Illinois Liquor Control Commission and the expiration of the time allowed for an application for rehearing.

b)         Second or subsequent Suspension or Revocation

1)         The foregoing shall not apply to the appeal of a suspension or revocation order entered by a Local Liquor Control Commissioner that is the second or subsequent such suspension or revocation placed upon that licensee within the preceeding 12 month period.

2)         In such event, the licensee shall cease all activity otherwise authorized by the liquor license.

c)         If in the event of a hearing upon a second or subsequent revocation as stated above, the State Liquor Control Commission reverses or modifies the action of the Local Liquor Control Commissioner, the licensee may immediately resume operation of the licensed business pursuant to the terms of the State Commission's order.

d)         If an application for rehearing is filed in either a first revocation, suspension or fine situation, or a second or subsequent revocation or fine that the State Commission has reversed or modified, the licensee may continue the operation of the licensed business until the denial of the application or if the rehearing is granted, until the decision on rehearing.

(Source:  Amended at 12 Ill. Reg. 19387, effective November 7, 1988)

Section 100.240  Transactions Involving Use of Checks and Their Equivalent (Repealed)

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

Section 100.245  Consignment Sales Prohibited; Bona Fide and Non-Bona Fide Returns

a)         It is unlawful for a manufacturer, non-resident dealer, foreign importer, importing distributor or distributor to sell, offer for sale, or contract to sell to any retailer, or for any such retailer to purchase, offer to purchase, or contract to purchase any products:

1)         on consignment or conditional sale, pursuant to which the retailer has no obligation to pay for the product until sold;

2)         with the privilege of return;

3)         on any basis other than a bona fide sale; or

4)         if any part of the sale involves, directly or indirectly, the acquisition by the retailer of other products from a manufacturer, non-resident dealer, foreign importer, importing distributor or distributor, or the agreement to acquire other products from the manufacturer, non-resident dealer, foreign importer, importing distributor or distributor.

b)         Transactions involving the bona fide return of products for ordinary and usual commercial reasons arising after the product has been sold are not prohibited. 

c)         Unless there is a bona fide business reason for replacement of damaged or defective alcoholic liquor product when delivered, the product may not be replaced free of charge to a retailer.  Replacement of alcoholic liquor damaged while in a trade buyer's possession constitutes the providing of something "of value" and a violation of Sections 6-4, 6-5 and 6-6 of the Act.  A manufacturer, non-resident dealer, foreign importer, importing distributor or distributor is under no obligation to accept the return of products for the reasons stated in subsections (e)(1) through (8).

1)         A manufacturer with the privilege of self-distribution, importing distributor or distributor may not accept the return of alcoholic liquor products as "breakage" if the product was damaged after delivery and while in the possession of the retailer. The self-distributing manufacturer, importing distributor or distributor may replace damaged cartons or packaging carrying containers of alcoholic liquor at any time.

2)         Under no circumstances may alcoholic liquor products or other compensation be furnished to a retailer for product breakage that occurs as a result of handling by the retailer or its agents, employees or customers.

3)         If the alcoholic liquor product has been damaged prior to or at the time of actual delivery, the product may only be exchanged for an equal quantity of identical product or returned for credit. If identical product is unavailable, exchange will be permitted for similar type product.

4)         If the alcoholic liquor product has been damaged prior to or at the time of actual delivery, the product may be exchanged no later than 15 days after delivery under the following conditions:

A)        If pre-delivery damage is visible at the time of delivery, the retailer must identify the damaged product immediately.

B)        If the damage is latent and not visible at the time of delivery, the retailer must notify the manufacturer with self-distribution privileges, importing distributor or distributor of the pre-delivery damage within 15 days after delivery, or date of invoice, whichever is later.

d)         It is unlawful to sell, offer to sell, or contract to sell alcoholic liquor products with the privilege of return for any reason, other than those considered to be "ordinary and usual commercial reasons", arising after the product has been sold.  A manufacturer, non-resident dealer, foreign importer, importing distributor or distributor is under no obligation to accept a return or make an exchange for any product. A manufacturer with self-distribution privileges, non-resident dealer, foreign importer, importing distributor or distributor that elects to make an authorized exchange of product or return of product for cash or credit does so at its sole discretion and must maintain proper books and records of the transaction, in accordance with Section 100.130.

e)         Ordinary and usual commercial reasons for the return of alcoholic liquor products are limited to:

1)         Defective Products.  Products that are unmarketable because of product deterioration, leaking containers, damaged labels or missing or mutilated tamper evident closures may be exchanged for an equal quantity of identical products, or credit against outstanding indebtedness.

2)         Error in Products Delivered.  Any discrepancy between products ordered and products delivered may be corrected, within 15 days after the date of delivery or date of invoice, whichever is later, by exchange of the products delivered for those that were ordered or by a return for credit against outstanding indebtedness.

3)         Products that May No Longer be Lawfully Sold. Products that may no longer be lawfully sold may be returned for credit against outstanding indebtedness. This would include situations in which, due to a change in regulation or administrative procedure over which a retailer has no control, a particular size or brand is no longer permitted to be sold.

4)         Termination of Business. Products on hand at the time a foreign importer, importing distributor, distributor or retailer terminates operations may be returned for cash or credit against outstanding indebtedness. This does not include a temporary seasonal shutdown.

5)         Termination of Franchise.  When a manufacturer, non-resident dealer, or foreign importer has sold products for cash or credit to one of its importing distributors or distributors and the distributorship arrangement is subsequently terminated, stocks of the product on hand may be returned for cash or credit against outstanding indebtedness.

6)         Change in Product. A retailer's inventory of a product that has been changed in formula, proof, label or container may be exchanged for equal quantities of the new version of that product.

7)         Discontinued Products.  When a manufacturer, non-resident dealer, foreign importer or importing distributor discontinues the production or importation of a product, a distributor or retailer, as the case may be, may return its inventory of that product for cash or credit against outstanding indebtedness.

8)         Seasonal Dealers. Manufacturers, non-resident dealers, foreign importers, importing distributors or distributors may accept the return of product from retailers who are only open a portion of the year, if the products are likely to spoil during the off season. These returns will be for cash or credit against outstanding indebtedness.

f)         Without limitation, the following are specifically not considered ordinary and commercial reasons to justify a return of alcoholic liquor product:

1)         Overstocked and Slow Moving Alcoholic Liquor Products.  The return or exchange of a product because it is overstocked or slow moving does not constitute a return for "ordinary and usual commercial reasons".

2)         Seasonal Alcoholic Liquor Products. The return or exchange of products for which there is only a limited or seasonal demand, such as holiday decanters and certain distinctive bottles, does not constitute a return for "ordinary and usual commercial reasons".  Nothing in this subsection (f) shall prohibit the exchange of deteriorated product that includes product near or beyond the manufacturer's expiration or "code" date.  It is a violation of this subsection (f) and Sections 6-4, 6-5 and 6-6 of the Act for a retailer to hold on to deteriorated product in order for it to be exchanged or returned as "out of code".

(Source:  Added at 39 Ill. Reg. 10386, effective July 10, 2015)

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)