Illinois General Assembly - Full Text of SB0104
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Full Text of SB0104  102nd General Assembly

SB0104ham001 102ND GENERAL ASSEMBLY

Rep. Michael J. Zalewski

Filed: 5/12/2021

 

 


 

 


 
10200SB0104ham001LRB102 15482 BMS 26484 a

1
AMENDMENT TO SENATE BILL 104

2    AMENDMENT NO. ______. Amend Senate Bill 104 by replacing
3everything after the enacting clause with the following:
 
4    "Section 1. This Act may be referred to as the COVID-19
5Pandemic Hospitality Recovery Act.
 
6    Section 5. The Liquor Control Act of 1934 is amended by
7changing Sections 6-5 and 6-28.8 as follows:
 
8    (235 ILCS 5/6-5)  (from Ch. 43, par. 122)
9    Sec. 6-5. Except as otherwise provided in this Section, it
10is unlawful for any person having a retailer's license or any
11officer, associate, member, representative or agent of such
12licensee to accept, receive or borrow money, or anything else
13of value, or accept or receive credit (other than
14merchandising credit in the ordinary course of business for a
15period not to exceed 30 days) directly or indirectly from any

 

 

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1manufacturer, importing distributor or distributor of
2alcoholic liquor, or from any person connected with or in any
3way representing, or from any member of the family of, such
4manufacturer, importing distributor, distributor or
5wholesaler, or from any stockholders in any corporation
6engaged in manufacturing, distributing or wholesaling of such
7liquor, or from any officer, manager, agent or representative
8of said manufacturer. Except as provided below, it is unlawful
9for any manufacturer or distributor or importing distributor
10to give or lend money or anything of value, or otherwise loan
11or extend credit (except such merchandising credit) directly
12or indirectly to any retail licensee or to the manager,
13representative, agent, officer or director of such licensee. A
14manufacturer, distributor or importing distributor may furnish
15free advertising, posters, signs, brochures, hand-outs, or
16other promotional devices or materials to any unit of
17government owning or operating any auditorium, exhibition
18hall, recreation facility or other similar facility holding a
19retailer's license, provided that the primary purpose of such
20promotional devices or materials is to promote public events
21being held at such facility. A unit of government owning or
22operating such a facility holding a retailer's license may
23accept such promotional devices or materials designed
24primarily to promote public events held at the facility. No
25retail licensee delinquent beyond the 30 day period specified
26in this Section shall solicit, accept or receive credit,

 

 

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1purchase or acquire alcoholic liquors, directly or indirectly
2from any other licensee, and no manufacturer, distributor or
3importing distributor shall knowingly grant or extend credit,
4sell, furnish or supply alcoholic liquors to any such
5delinquent retail licensee; provided that the purchase price
6of all beer sold to a retail licensee shall be paid by the
7retail licensee in cash on or before delivery of the beer, and
8unless the purchase price payable by a retail licensee for
9beer sold to him in returnable bottles shall expressly include
10a charge for the bottles and cases, the retail licensee shall,
11on or before delivery of such beer, pay the seller in cash a
12deposit in an amount not less than the deposit required to be
13paid by the distributor to the brewer; but where the brewer
14sells direct to the retailer, the deposit shall be an amount no
15less than that required by the brewer from his own
16distributors; and provided further, that in no instance shall
17this deposit be less than 50 cents for each case of beer in
18pint or smaller bottles and 60 cents for each case of beer in
19quart or half-gallon bottles; and provided further, that the
20purchase price of all beer sold to an importing distributor or
21distributor shall be paid by such importing distributor or
22distributor in cash on or before the 15th day (Sundays and
23holidays excepted) after delivery of such beer to such
24purchaser; and unless the purchase price payable by such
25importing distributor or distributor for beer sold in
26returnable bottles and cases shall expressly include a charge

 

 

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1for the bottles and cases, such importing distributor or
2distributor shall, on or before the 15th day (Sundays and
3holidays excepted) after delivery of such beer to such
4purchaser, pay the seller in cash a required amount as a
5deposit to assure the return of such bottles and cases.
6Nothing herein contained shall prohibit any licensee from
7crediting or refunding to a purchaser the actual amount of
8money paid for bottles, cases, kegs or barrels returned by the
9purchaser to the seller or paid by the purchaser as a deposit
10on bottles, cases, kegs or barrels, when such containers or
11packages are returned to the seller. Nothing herein contained
12shall prohibit any manufacturer, importing distributor or
13distributor from extending usual and customary credit for
14alcoholic liquor sold to customers or purchasers who live in
15or maintain places of business outside of this State when such
16alcoholic liquor is actually transported and delivered to such
17points outside of this State.
18    A manufacturer, distributor, or importing distributor may
19furnish free social media advertising to a retail licensee if
20the social media advertisement does not contain the retail
21price of any alcoholic liquor and the social media
22advertisement complies with any applicable rules or
23regulations issued by the Alcohol and Tobacco Tax and Trade
24Bureau of the United States Department of the Treasury. A
25manufacturer, distributor, or importing distributor may list
26the names of one or more unaffiliated retailers in the

 

 

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1advertisement of alcoholic liquor through social media.
2Nothing in this Section shall prohibit a retailer from
3communicating with a manufacturer, distributor, or importing
4distributor on social media or sharing media on the social
5media of a manufacturer, distributor, or importing
6distributor. A retailer may request free social media
7advertising from a manufacturer, distributor, or importing
8distributor. Nothing in this Section shall prohibit a
9manufacturer, distributor, or importing distributor from
10sharing, reposting, or otherwise forwarding a social media
11post by a retail licensee, so long as the sharing, reposting,
12or forwarding of the social media post does not contain the
13retail price of any alcoholic liquor. No manufacturer,
14distributor, or importing distributor shall pay or reimburse a
15retailer, directly or indirectly, for any social media
16advertising services, except as specifically permitted in this
17Act. No retailer shall accept any payment or reimbursement,
18directly or indirectly, for any social media advertising
19services offered by a manufacturer, distributor, or importing
20distributor, except as specifically permitted in this Act. For
21the purposes of this Section, "social media" means a service,
22platform, or site where users communicate with one another and
23share media, such as pictures, videos, music, and blogs, with
24other users free of charge.
25    No right of action shall exist for the collection of any
26claim based upon credit extended to a distributor, importing

 

 

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1distributor or retail licensee contrary to the provisions of
2this Section.
3    Every manufacturer, importing distributor and distributor
4shall submit or cause to be submitted, to the State
5Commission, in triplicate, not later than Thursday of each
6calendar week, a verified written list of the names and
7respective addresses of each retail licensee purchasing
8spirits or wine from such manufacturer, importing distributor
9or distributor who, on the first business day of that calendar
10week, was delinquent beyond the above mentioned permissible
11merchandising credit period of 30 days; or, if such is the
12fact, a verified written statement that no retail licensee
13purchasing spirits or wine was then delinquent beyond such
14permissible merchandising credit period of 30 days.
15    Every manufacturer, importing distributor and distributor
16shall submit or cause to be submitted, to the State
17Commission, in triplicate, a verified written list of the
18names and respective addresses of each previously reported
19delinquent retail licensee who has cured such delinquency by
20payment, which list shall be submitted not later than the
21close of the second full business day following the day such
22delinquency was so cured.
23    Such written verified reports required to be submitted by
24this Section shall be posted by the State Commission in each of
25its offices in places available for public inspection not
26later than the day following receipt thereof by the

 

 

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1Commission. The reports so posted shall constitute notice to
2every manufacturer, importing distributor and distributor of
3the information contained therein. Actual notice to
4manufacturers, importing distributors and distributors of the
5information contained in any such posted reports, however
6received, shall also constitute notice of such information.
7    The 30 day merchandising credit period allowed by this
8Section shall commence with the day immediately following the
9date of invoice and shall include all successive days
10including Sundays and holidays to and including the 30th
11successive day.
12    In addition to other methods allowed by law, payment by
13check or credit card during the period for which merchandising
14credit may be extended under the provisions of this Section
15shall be considered payment. All checks received in payment
16for alcoholic liquor shall be promptly deposited for
17collection. A post dated check or a check dishonored on
18presentation for payment shall not be deemed payment.
19    A credit card payment in dispute by a retailer shall not be
20deemed payment, and the debt uncured for merchandising credit
21shall be reported as delinquent. Nothing in this Section shall
22prevent a distributor, self-distributing manufacturer, or
23importing distributor from assessing a usual and customary
24transaction fee representative of the actual finance charges
25incurred for processing a credit card payment. This
26transaction fee shall be disclosed on the invoice. It shall be

 

 

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1considered unlawful for a distributor, importing distributor,
2or self-distributing manufacturer to waive finance charges for
3retailers.
4    A retail licensee shall not be deemed to be delinquent in
5payment for any alleged sale to him of alcoholic liquor when
6there exists a bona fide dispute between such retailer and a
7manufacturer, importing distributor or distributor with
8respect to the amount of indebtedness existing because of such
9alleged sale. A retail licensee shall not be deemed to be
10delinquent under this provision and 11 Ill. Adm. Code 100.90
11until 30 days after the date on which the region in which the
12retail licensee is located enters Phase 4 of the Governor's
13Restore Illinois Plan as issued on May 5, 2020.
14    A delinquent retail licensee who engages in the retail
15liquor business at 2 or more locations shall be deemed to be
16delinquent with respect to each such location.
17    The license of any person who violates any provision of
18this Section shall be subject to suspension or revocation in
19the manner provided by this Act.
20    If any part or provision of this Article or the
21application thereof to any person or circumstances shall be
22adjudged invalid by a court of competent jurisdiction, such
23judgment shall be confined by its operation to the controversy
24in which it was mentioned and shall not affect or invalidate
25the remainder of this Article or the application thereof to
26any other person or circumstance and to this and the

 

 

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1provisions of this Article are declared severable.
2(Source: P.A. 101-631, eff. 6-2-20.)
 
3    (235 ILCS 5/6-28.8)
4    (Section scheduled to be repealed on June 2, 2021)
5    Sec. 6-28.8. Delivery and carry out of mixed drinks
6permitted.
7    (a) In this Section:
8    "Cocktail" or "mixed drink" means any beverage obtained by
9combining ingredients alcoholic in nature, whether brewed,
10fermented, or distilled, with ingredients non-alcoholic in
11nature, such as fruit juice, lemonade, cream, or a carbonated
12beverage.
13    "Original container" means, for the purposes of this
14Section only, a container that is (i) filled, sealed, and
15secured by a retail licensee's employee at the retail
16licensee's location with a tamper-evident lid or cap or (ii)
17filled and labeled by the manufacturer and secured by the
18manufacturer's original unbroken seal.
19    "Sealed container" means a rigid container that contains a
20mixed drink or a single serving of wine, is new, has never been
21used, has a secured lid or cap designed to prevent consumption
22without removal of the lid or cap, and is tamper-evident.
23"Sealed container" includes a manufacturer's original
24container as defined in this subsection. "Sealed container"
25does not include a container with a lid with sipping holes or

 

 

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1openings for straws or a container made of plastic, paper, or
2polystyrene foam.
3    "Tamper-evident" means a lid or cap that has been sealed
4with tamper-evident covers, including, but not limited to, wax
5dip or heat shrink wrap.
6    (b) A cocktail, or mixed drink, or single serving of wine
7placed in a sealed container by a retail licensee at the retail
8licensee's location may be transferred and sold for
9off-premises consumption if the following requirements are
10met:
11        (1) the cocktail, mixed drink, or single serving of
12    wine is transferred within the licensed premises, by a
13    curbside pickup, or by delivery by an employee of the
14    retail licensee who:
15            (A) has been trained in accordance with Section
16        6-27.1 at the time of the sale;
17            (B) is at least 21 years of age; and
18            (C) upon delivery, verifies the age of the person
19        to whom the cocktail, mixed drink, or single serving
20        of wine is being delivered;
21        (2) if the employee delivering the cocktail, mixed
22    drink, or single serving of wine is not able to safely
23    verify a person's age or level of intoxication upon
24    delivery, the employee shall cancel the sale of alcohol
25    and return the product to the retail license holder;
26        (3) the sealed container is placed in the trunk of the

 

 

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1    vehicle or if there is no trunk, in the vehicle's rear
2    compartment that is not readily accessible to the
3    passenger area;
4        (4) a the sealed container filled and sealed at a
5    retail licensee's location shall be affixed with a label
6    or tag that contains the following information:
7            (A) the cocktail or mixed drink ingredients, type,
8        and name of the alcohol;
9            (B) the name, license number, and address of the
10        retail licensee that filled the original container and
11        sold the product;
12            (C) the volume of the cocktail, or mixed drink, or
13        single serving of wine in the sealed container; and
14            (D) the sealed container was filled less than 7
15        days before the date of sale; and .
16        (5) a manufacturer's original container shall be
17    affixed with a label or tag that contains the name,
18    license number, and address of the retail licensee that
19    sold the product.
20    (c) Third-party delivery services are not permitted to
21deliver cocktails and mixed drinks under this Section.
22    (d) If there is an executive order of the Governor in
23effect during a disaster, the employee delivering the mixed
24drink, or cocktail, or single serving of wine must comply with
25any requirements of that executive order, including, but not
26limited to, wearing gloves and a mask and maintaining

 

 

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1distancing requirements when interacting with the public.
2    (e) Delivery or carry out of a cocktail, or mixed drink, or
3single serving of wine is prohibited if:
4        (1) a third party delivers the cocktail or mixed
5    drink;
6        (2) a container of a mixed drink, or cocktail, or
7    single serving of wine is not tamper-evident and sealed;
8        (3) a container of a mixed drink, or cocktail, or
9    single serving of wine is transported in the passenger
10    area of a vehicle;
11        (4) a mixed drink, or cocktail, or single serving of
12    wine is delivered by a person or to a person who is under
13    the age of 21; or
14        (5) the person delivering a mixed drink, or cocktail,
15    or single serving of wine fails to verify the age of the
16    person to whom the mixed drink or cocktail is being
17    delivered.
18    (f) Violations of this Section shall be subject to any
19applicable penalties, including, but not limited to, the
20penalties specified under Section 11-502 of the Illinois
21Vehicle Code.
22    (f-5) This Section is not intended to prohibit or preempt
23the ability of a brew pub, tap room, or distilling pub to
24continue to temporarily deliver alcoholic liquor pursuant to
25guidance issued by the State Commission on March 19, 2020
26entitled "Illinois Liquor Control Commission, COVID-19 Related

 

 

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1Actions, Guidance on Temporary Delivery of Alcoholic Liquor".
2This Section shall only grant authorization to holders of
3State of Illinois retail liquor licenses but not to licensees
4that simultaneously hold any licensure or privilege to
5manufacture alcoholic liquors within or outside of the State
6of Illinois.
7    (g) This Section is not a denial or limitation of home rule
8powers and functions under Section 6 of Article VII of the
9Illinois Constitution.
10    (h) This Section is repealed on January 1, 2025 one year
11after the effective date of this amendatory Act of the 101st
12General Assembly.
13(Source: P.A. 101-631, eff. 6-2-20.)
 
14    Section 99. Effective date. This Act takes effect upon
15becoming law.".