99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB3237

 

Introduced , by Rep. Sara Feigenholtz

 

SYNOPSIS AS INTRODUCED:
 
235 ILCS 5/6-5  from Ch. 43, par. 122
235 ILCS 5/6-6  from Ch. 43, par. 123

    Amends the Liquor Control Act of 1934. In provisions that prohibit liquor distributors and manufacturers from giving, and retail licensees from receiving, anything of value, provides that a manufacturer, distributor or importing distributor may furnish free social media advertising to a person having a retail license if the social media advertisement does not contain the retail price of any alcoholic liquor. Defines "social media". Effective immediately.


LRB099 07830 RPS 27965 b

 

 

A BILL FOR

 

HB3237LRB099 07830 RPS 27965 b

1    AN ACT concerning liquor.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Liquor Control Act of 1934 is amended by
5changing Sections 6-5 and 6-6 as follows:
 
6    (235 ILCS 5/6-5)  (from Ch. 43, par. 122)
7    Sec. 6-5. Except as otherwise provided in this Section, it
8is unlawful for any person having a retailer's license or any
9officer, associate, member, representative or agent of such
10licensee to accept, receive or borrow money, or anything else
11of value, or accept or receive credit (other than merchandising
12credit in the ordinary course of business for a period not to
13exceed 30 days) directly or indirectly from any manufacturer,
14importing distributor or distributor of alcoholic liquor, or
15from any person connected with or in any way representing, or
16from any member of the family of, such manufacturer, importing
17distributor, distributor or wholesaler, or from any
18stockholders in any corporation engaged in manufacturing,
19distributing or wholesaling of such liquor, or from any
20officer, manager, agent or representative of said
21manufacturer. Except as provided below, it is unlawful for any
22manufacturer or distributor or importing distributor to give or
23lend money or anything of value, or otherwise loan or extend

 

 

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1credit (except such merchandising credit) directly or
2indirectly to any retail licensee or to the manager,
3representative, agent, officer or director of such licensee. A
4manufacturer, distributor or importing distributor may furnish
5free advertising, posters, signs, brochures, hand-outs, or
6other promotional devices or materials to any unit of
7government owning or operating any auditorium, exhibition
8hall, recreation facility or other similar facility holding a
9retailer's license, provided that the primary purpose of such
10promotional devices or materials is to promote public events
11being held at such facility. A unit of government owning or
12operating such a facility holding a retailer's license may
13accept such promotional devices or materials designed
14primarily to promote public events held at the facility. No
15retail licensee delinquent beyond the 30 day period specified
16in this Section shall solicit, accept or receive credit,
17purchase or acquire alcoholic liquors, directly or indirectly
18from any other licensee, and no manufacturer, distributor or
19importing distributor shall knowingly grant or extend credit,
20sell, furnish or supply alcoholic liquors to any such
21delinquent retail licensee; provided that the purchase price of
22all beer sold to a retail licensee shall be paid by the retail
23licensee in cash on or before delivery of the beer, and unless
24the purchase price payable by a retail licensee for beer sold
25to him in returnable bottles shall expressly include a charge
26for the bottles and cases, the retail licensee shall, on or

 

 

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1before delivery of such beer, pay the seller in cash a deposit
2in an amount not less than the deposit required to be paid by
3the distributor to the brewer; but where the brewer sells
4direct to the retailer, the deposit shall be an amount no less
5than that required by the brewer from his own distributors; and
6provided further, that in no instance shall this deposit be
7less than 50 cents for each case of beer in pint or smaller
8bottles and 60 cents for each case of beer in quart or
9half-gallon bottles; and provided further, that the purchase
10price of all beer sold to an importing distributor or
11distributor shall be paid by such importing distributor or
12distributor in cash on or before the 15th day (Sundays and
13holidays excepted) after delivery of such beer to such
14purchaser; and unless the purchase price payable by such
15importing distributor or distributor for beer sold in
16returnable bottles and cases shall expressly include a charge
17for the bottles and cases, such importing distributor or
18distributor shall, on or before the 15th day (Sundays and
19holidays excepted) after delivery of such beer to such
20purchaser, pay the seller in cash a required amount as a
21deposit to assure the return of such bottles and cases. Nothing
22herein contained shall prohibit any licensee from crediting or
23refunding to a purchaser the actual amount of money paid for
24bottles, cases, kegs or barrels returned by the purchaser to
25the seller or paid by the purchaser as a deposit on bottles,
26cases, kegs or barrels, when such containers or packages are

 

 

HB3237- 4 -LRB099 07830 RPS 27965 b

1returned to the seller. Nothing herein contained shall prohibit
2any manufacturer, importing distributor or distributor from
3extending usual and customary credit for alcoholic liquor sold
4to customers or purchasers who live in or maintain places of
5business outside of this State when such alcoholic liquor is
6actually transported and delivered to such points outside of
7this State.
8    A manufacturer, distributor, or importing distributor may
9furnish free social media advertising to a person having a
10retail license if the social media advertisement does not
11contain the retail price of any alcoholic liquor. For the
12purposes of this Section, "social media" means a service,
13platform, or site where users communicate with one another and
14share media, such as pictures, videos, music, and blogs, with
15other users free of charge.
16    No right of action shall exist for the collection of any
17claim based upon credit extended to a distributor, importing
18distributor or retail licensee contrary to the provisions of
19this Section.
20    Every manufacturer, importing distributor and distributor
21shall submit or cause to be submitted, to the State Commission,
22in triplicate, not later than Thursday of each calendar week, a
23verified written list of the names and respective addresses of
24each retail licensee purchasing spirits or wine from such
25manufacturer, importing distributor or distributor who, on the
26first business day of that calendar week, was delinquent beyond

 

 

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1the above mentioned permissible merchandising credit period of
230 days; or, if such is the fact, a verified written statement
3that no retail licensee purchasing spirits or wine was then
4delinquent beyond such permissible merchandising credit period
5of 30 days.
6    Every manufacturer, importing distributor and distributor
7shall submit or cause to be submitted, to the State Commission,
8in triplicate, a verified written list of the names and
9respective addresses of each previously reported delinquent
10retail licensee who has cured such delinquency by payment,
11which list shall be submitted not later than the close of the
12second full business day following the day such delinquency was
13so cured.
14    Such written verified reports required to be submitted by
15this Section shall be posted by the State Commission in each of
16its offices in places available for public inspection not later
17than the day following receipt thereof by the Commission. The
18reports so posted shall constitute notice to every
19manufacturer, importing distributor and distributor of the
20information contained therein. Actual notice to manufacturers,
21importing distributors and distributors of the information
22contained in any such posted reports, however received, shall
23also constitute notice of such information.
24    The 30 day merchandising credit period allowed by this
25Section shall commence with the day immediately following the
26date of invoice and shall include all successive days including

 

 

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1Sundays and holidays to and including the 30th successive day.
2    In addition to other methods allowed by law, payment by
3check during the period for which merchandising credit may be
4extended under the provisions of this Section shall be
5considered payment. All checks received in payment for
6alcoholic liquor shall be promptly deposited for collection. A
7post dated check or a check dishonored on presentation for
8payment shall not be deemed payment.
9    A retail licensee shall not be deemed to be delinquent in
10payment for any alleged sale to him of alcoholic liquor when
11there exists a bona fide dispute between such retailer and a
12manufacturer, importing distributor or distributor with
13respect to the amount of indebtedness existing because of such
14alleged sale.
15    A delinquent retail licensee who engages in the retail
16liquor business at 2 or more locations shall be deemed to be
17delinquent with respect to each such location.
18    The license of any person who violates any provision of
19this Section shall be subject to suspension or revocation in
20the manner provided by this Act.
21    If any part or provision of this Article or the application
22thereof to any person or circumstances shall be adjudged
23invalid by a court of competent jurisdiction, such judgment
24shall be confined by its operation to the controversy in which
25it was mentioned and shall not affect or invalidate the
26remainder of this Article or the application thereof to any

 

 

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1other person or circumstance and to this and the provisions of
2this Article are declared severable.
3(Source: P.A. 83-762.)
 
4    (235 ILCS 5/6-6)  (from Ch. 43, par. 123)
5    Sec. 6-6. Except as otherwise provided in this Act no
6manufacturer or distributor or importing distributor shall,
7directly or indirectly, sell, supply, furnish, give or pay for,
8or loan or lease, any furnishing, fixture or equipment on the
9premises of a place of business of another licensee authorized
10under this Act to sell alcoholic liquor at retail, either for
11consumption on or off the premises, nor shall he or she,
12directly or indirectly, pay for any such license, or advance,
13furnish, lend or give money for payment of such license, or
14purchase or become the owner of any note, mortgage, or other
15evidence of indebtedness of such licensee or any form of
16security therefor, nor shall such manufacturer, or
17distributor, or importing distributor, directly or indirectly,
18be interested in the ownership, conduct or operation of the
19business of any licensee authorized to sell alcoholic liquor at
20retail, nor shall any manufacturer, or distributor, or
21importing distributor be interested directly or indirectly or
22as owner or part owner of said premises or as lessee or lessor
23thereof, in any premises upon which alcoholic liquor is sold at
24retail.
25    No manufacturer or distributor or importing distributor

 

 

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1shall, directly or indirectly or through a subsidiary or
2affiliate, or by any officer, director or firm of such
3manufacturer, distributor or importing distributor, furnish,
4give, lend or rent, install, repair or maintain, to or for any
5retail licensee in this State, any signs or inside advertising
6materials except as provided in this Section and Section 6-5.
7With respect to retail licensees, other than any government
8owned or operated auditorium, exhibition hall, recreation
9facility or other similar facility holding a retailer's license
10as described in Section 6-5, a manufacturer, distributor, or
11importing distributor may furnish, give, lend or rent and
12erect, install, repair and maintain to or for any retail
13licensee, for use at any one time in or about or in connection
14with a retail establishment on which the products of the
15manufacturer, distributor or importing distributor are sold,
16the following signs and inside advertising materials as
17authorized in subparts (i), (ii), (iii), and (iv):
18        (i) Permanent outside signs shall be limited to one
19    outside sign, per brand, in place and in use at any one
20    time, costing not more than $893, exclusive of erection,
21    installation, repair and maintenance costs, and permit
22    fees and shall bear only the manufacturer's name, brand
23    name, trade name, slogans, markings, trademark, or other
24    symbols commonly associated with and generally used in
25    identifying the product including, but not limited to,
26    "cold beer", "on tap", "carry out", and "packaged liquor".

 

 

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1        (ii) Temporary outside signs shall be limited to one
2    temporary outside sign per brand. Examples of temporary
3    outside signs are banners, flags, pennants, streamers, and
4    other items of a temporary and non-permanent nature. Each
5    temporary outside sign must include the manufacturer's
6    name, brand name, trade name, slogans, markings,
7    trademark, or other symbol commonly associated with and
8    generally used in identifying the product. Temporary
9    outside signs may also include, for example, the product,
10    price, packaging, date or dates of a promotion and an
11    announcement of a retail licensee's specific sponsored
12    event, if the temporary outside sign is intended to promote
13    a product, and provided that the announcement of the retail
14    licensee's event and the product promotion are held
15    simultaneously. However, temporary outside signs may not
16    include names, slogans, markings, or logos that relate to
17    the retailer. Nothing in this subpart (ii) shall prohibit a
18    distributor or importing distributor from bearing the cost
19    of creating or printing a temporary outside sign for the
20    retail licensee's specific sponsored event or from bearing
21    the cost of creating or printing a temporary sign for a
22    retail licensee containing, for example, community
23    goodwill expressions, regional sporting event
24    announcements, or seasonal messages, provided that the
25    primary purpose of the temporary outside sign is to
26    highlight, promote, or advertise the product. In addition,

 

 

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1    temporary outside signs provided by the manufacturer to the
2    distributor or importing distributor may also include, for
3    example, subject to the limitations of this Section,
4    preprinted community goodwill expressions, sporting event
5    announcements, seasonal messages, and manufacturer
6    promotional announcements. However, a distributor or
7    importing distributor shall not bear the cost of such
8    manufacturer preprinted signs.
9        (iii) Permanent inside signs, whether visible from the
10    outside or the inside of the premises, include, but are not
11    limited to: alcohol lists and menus that may include names,
12    slogans, markings, or logos that relate to the retailer;
13    neons; illuminated signs; clocks; table lamps; mirrors;
14    tap handles; decalcomanias; window painting; and window
15    trim. All permanent inside signs in place and in use at any
16    one time shall cost in the aggregate not more than $2000
17    per manufacturer. A permanent inside sign must include the
18    manufacturer's name, brand name, trade name, slogans,
19    markings, trademark, or other symbol commonly associated
20    with and generally used in identifying the product.
21    However, permanent inside signs may not include names,
22    slogans, markings, or logos that relate to the retailer.
23    For the purpose of this subpart (iii), all permanent inside
24    signs may be displayed in an adjacent courtyard or patio
25    commonly referred to as a "beer garden" that is a part of
26    the retailer's licensed premises.

 

 

HB3237- 11 -LRB099 07830 RPS 27965 b

1        (iv) Temporary inside signs shall include, but are not
2    limited to, lighted chalk boards, acrylic table tent
3    beverage or hors d'oeuvre list holders, banners, flags,
4    pennants, streamers, and inside advertising materials such
5    as posters, placards, bowling sheets, table tents, inserts
6    for acrylic table tent beverage or hors d'oeuvre list
7    holders, sports schedules, or similar printed or
8    illustrated materials; however, such items, for example,
9    as coasters, trays, napkins, glassware and cups shall not
10    be deemed to be inside signs or advertising materials and
11    may only be sold to retailers. All temporary inside signs
12    and inside advertising materials in place and in use at any
13    one time shall cost in the aggregate not more than $325 per
14    manufacturer. Nothing in this subpart (iv) prohibits a
15    distributor or importing distributor from paying the cost
16    of printing or creating any temporary inside banner or
17    inserts for acrylic table tent beverage or hors d'oeuvre
18    list holders for a retail licensee, provided that the
19    primary purpose for the banner or insert is to highlight,
20    promote, or advertise the product. For the purpose of this
21    subpart (iv), all temporary inside signs and inside
22    advertising materials may be displayed in an adjacent
23    courtyard or patio commonly referred to as a "beer garden"
24    that is a part of the retailer's licensed premises.
25    A "cost adjustment factor" shall be used to periodically
26update the dollar limitations prescribed in subparts (i),

 

 

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1(iii), and (iv). The Commission shall establish the adjusted
2dollar limitation on an annual basis beginning in January,
31997. The term "cost adjustment factor" means a percentage
4equal to the change in the Bureau of Labor Statistics Consumer
5Price Index or 5%, whichever is greater. The restrictions
6contained in this Section 6-6 do not apply to signs, or
7promotional or advertising materials furnished by
8manufacturers, distributors or importing distributors to a
9government owned or operated facility holding a retailer's
10license as described in Section 6-5.
11    No distributor or importing distributor shall directly or
12indirectly or through a subsidiary or affiliate, or by any
13officer, director or firm of such manufacturer, distributor or
14importing distributor, furnish, give, lend or rent, install,
15repair or maintain, to or for any retail licensee in this
16State, any signs or inside advertising materials described in
17subparts (i), (ii), (iii), or (iv) of this Section except as
18the agent for or on behalf of a manufacturer, provided that the
19total cost of any signs and inside advertising materials
20including but not limited to labor, erection, installation and
21permit fees shall be paid by the manufacturer whose product or
22products said signs and inside advertising materials advertise
23and except as follows:
24    A distributor or importing distributor may purchase from or
25enter into a written agreement with a manufacturer or a
26manufacturer's designated supplier and such manufacturer or

 

 

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1the manufacturer's designated supplier may sell or enter into
2an agreement to sell to a distributor or importing distributor
3permitted signs and advertising materials described in
4subparts (ii), (iii), or (iv) of this Section for the purpose
5of furnishing, giving, lending, renting, installing,
6repairing, or maintaining such signs or advertising materials
7to or for any retail licensee in this State. Any purchase by a
8distributor or importing distributor from a manufacturer or a
9manufacturer's designated supplier shall be voluntary and the
10manufacturer may not require the distributor or the importing
11distributor to purchase signs or advertising materials from the
12manufacturer or the manufacturer's designated supplier.
13    A distributor or importing distributor shall be deemed the
14owner of such signs or advertising materials purchased from a
15manufacturer or a manufacturer's designated supplier.
16    The provisions of Public Act 90-373 concerning signs or
17advertising materials delivered by a manufacturer to a
18distributor or importing distributor shall apply only to signs
19or advertising materials delivered on or after August 14, 1997.
20    A manufacturer, distributor, or importing distributor may
21furnish free social media advertising to a person having a
22retail license if the social media advertisement does not
23contain the retail price of any alcoholic liquor. For the
24purposes of this Section, "social media" means a service,
25platform, or site where users communicate with one another and
26share media, such as pictures, videos, music, and blogs, with

 

 

HB3237- 14 -LRB099 07830 RPS 27965 b

1other users free of charge.
2    No person engaged in the business of manufacturing,
3importing or distributing alcoholic liquors shall, directly or
4indirectly, pay for, or advance, furnish, or lend money for the
5payment of any license for another. Any licensee who shall
6permit or assent, or be a party in any way to any violation or
7infringement of the provisions of this Section shall be deemed
8guilty of a violation of this Act, and any money loaned
9contrary to a provision of this Act shall not be recovered
10back, or any note, mortgage or other evidence of indebtedness,
11or security, or any lease or contract obtained or made contrary
12to this Act shall be unenforceable and void.
13    This Section shall not apply to airplane licensees
14exercising powers provided in paragraph (i) of Section 5-1 of
15this Act.
16(Source: P.A. 98-756, eff. 7-16-14.)
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.