SB1712 102ND GENERAL ASSEMBLY

LRB102 11975 RPS 17311 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB1712

Introduced 2/26/2021, by Sen. Cristina Castro

SYNOPSIS AS INTRODUCED:

235 ILCS 5/6-9.1
235 ILCS 5/6-17.5 new
235 ILCS 5/6-40 new

Amends the Liquor Control Act of 1934. Provides that a distributor shall not require a retailer to purchase a minimum quantity of wine or spirits for delivery and shall not charge a retailer a fee for the delivery of wine or spirits. Provides that no retail licensee may purchase wine or spirits from, or possess wine or spirits purchased from, any person other than a distributor or importing distributor, except that a retail licensee may purchase 20 liters or less of wine or spirits from another retail licensee in a one-month period if specified conditions are met. Provides that no original package of wine or spirits may be transferred from one retail licensee to any other retail licensee without permission from the Illinois Liquor Control Commission, except that if the same retailer holds more than one retail license, original packages of wine or spirits may be transferred from one of the retail licensee's licensed locations to another of that retail licensee's licensed locations without prior permission from the State Commission, subject to specified conditions. Effective immediately.

A BILL FOR

AN ACT concerning liquor.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Liquor Control Act of 1934 is amended by changing Section 6-9.1 and by adding Sections 6-17.5 and 6-40 as follows:

(235 ILCS 5/6-9.1)

Sec. 6-9.1. Deliveries to retail establishments. (a) A distributor of wine or spirits shall deliver to any retailer within any geographic area in which that distributor has been granted by a wholesaler the right to sell its trademark, brand, or name at least once every 2 weeks A distributor shall not require a retailer to purchase a minimum quantity of wine or spirits for delivery. A distributor shall not charge a retailer any fee in any form above the sale price of the wine or spirits for the delivery of wine or spirits. if (i) in the case of a retailer located in a county with a population of at least 3,000,000 inhabitants or in a county adjacent to a county with at least 3,000,000 inhabitants, the retailer agrees to purchase at least $200 of wine or spirits from the distributor every 2 weeks; or (ii) in the case of a retailer located in a county with a population of less than 3,000,000 that is not adjacent to a county with a population of at least 3,000,000 inhabitants, the retailer agrees to purchase at least $50 of wine or spirits from the distributor every 2 weeks.

(b) On January 1, 2002 and every 2 years thereafter, the dollar amounts in items (i) and (ii) of subsection (a) shall be increased or decreased by a percentage equal to the percentage increase or decrease in the Consumer Price Index during the previous 2 years according to the most recent available data.

(Source: P.A. 91-482, eff. 1-1-00.)

(235 ILCS 5/6-17.5 new)

Sec. 6-17.5. Purchase of wine or spirits by a retail licensee from another retail licensee.

(a) No retail licensee may purchase wine or spirits from, or possess wine or spirits purchased from, any person other than a distributor or importing distributor; however, a retail licensee may purchase 20 liters or less of wine or spirits from another retail licensee in a one-month period if the following conditions are met:

(1) All purchases are properly documented with the following information:

(A) the license number of each retail licensee involved in the sale;

(B) the brand, size, and quantity of the wine or spirits purchased; and

(C) the date the purchase was made.

(2) A copy of the invoice of the sale is submitted to the State Commission from both retail licensees and is retained by both retail licensees.

(b) A retail licensee that purchases or sells an original package of wine or spirits as authorized by this Section shall not be deemed to be engaged in business as a wholesaler or distributor based upon the sale authorized by this Section.

(235 ILCS 5/6-40 new)

Sec. 6-40. Transfer of wine or spirits by a retail licensee.

(a) No original package of wine or spirits may be transferred from one retail licensee to any other retail licensee without permission from the State Commission; however, if the same retail licensee holds more than one retail license, original packages of wine or spirits may be transferred from one of such retail licensee's licensed locations to another of that retail licensee's licensed locations without prior permission from the State Commission, subject to the following conditions:

(1) the transfer is made by common carrier;

(2) the transfer is made by a licensed distributor's or importing distributor's vehicle; or

(3) the transfer is made by a vehicle owned and operated by the licensee.

(b) All transfers must be properly documented in the form of an invoice in triplicate with the following information:

(1) the license number of the retail licensee from which the transfer is to be made and the license number of the retail licensee to which the transfer is to be made;

(2) the brand, size, and quantity of the wine or spirits to be transferred; and

(3) the date the transfer is to be made.

(c) A copy of the invoice must, prior to the transfer, be submitted to the State Commission. A copy of the invoice must be in the possession of the driver until delivery is complete and then retained by the retail licensee to which the transfer is made. A third copy of the invoice must be retained by the retail licensee from which the transfer is made.

(d) A retail licensee that transfers or receives an original package of wine or spirits as authorized by this Section shall not be deemed to be engaged in business as a wholesaler or distributor based upon the transfer authorized by this Section.

(e) A transfer authorized by this Section shall not be deemed a sale.

(f) Transfers of wine or spirits in accordance with this Section may only take place from and to the licensed premises of the retail licensee located within the registered geographic territory of the distributor or importing distributor from whom the retail licensee purchased the transferred wine or spirits.

Section 99. Effective date. This Act takes effect upon becoming law.