Bill Amendment: IL HB2502 | 2023-2024 | 103rd General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: LIQUOR-ALCOPOPS/NA MERCHANDISE

Status: 2025-01-07 - Session Sine Die [HB2502 Detail]

Download: Illinois-2023-HB2502-House_Amendment_001.html

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Rep. Curtis J. Tarver, II

Filed: 3/21/2023

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AMENDMENT TO HOUSE BILL 2502
AMENDMENT NO. ______. Amend House Bill 2502 by replacing
everything after the enacting clause with the following:
"Section 5. The Liquor Control Act of 1934 is amended by
changing Sections 6-6.3 and 6-35 as follows:
(235 ILCS 5/6-6.3)
Sec. 6-6.3. Non-alcoholic merchandise.
(a) Nothing in this Act shall authorize the Illinois
Liquor Control Commission to regulate or exercise jurisdiction
over any action, transaction, and business of manufacturers,
distributors, or retailers, or any parent or subsidiary
thereof, engaged in any transaction involving the furnishing,
selling, or offering for sale of non-alcoholic merchandise by
manufacturers, distributors, or retailers, or any parent or
subsidiary thereof, unless the transaction involves expressed
or implied agreements or understandings prohibited by this

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Act.
(b) Non-alcoholic merchandise may be sold by a
manufacturer class license holder, non-resident dealer,
foreign importer, importing distributor, or distributor, or
any parent or subsidiary thereof, to a retail licensee if:
(1) the manufacturer class license holder,
non-resident dealer, foreign importer, importing
distributor, or distributor, or any parent or subsidiary
thereof, is also in business as a bona fide producer or
vendor of other merchandise;
(2) the merchandise is sold at its fair market value;
(3) the non-alcoholic merchandise is not sold in
combination with alcoholic liquor or conditioned on the
sale of alcoholic liquor;
(4) the manufacturer class license holder's,
non-resident dealer's, foreign importer's, importing
distributor's, or distributor's, or their parent's or
subsidiary's, acquisition or production costs of the
non-alcoholic merchandise appear on the manufacturer class
license holder's, non-resident dealer's, foreign
importer's, importing distributor's, or distributor's
purchase invoices or other records;
(5) the individual selling prices of the non-alcoholic
merchandise and alcoholic liquor sold in a single
transaction can be determined from commercial documents
covering the sales transaction if non-alcoholic

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merchandise is sold in the same transaction as alcoholic
liquor; and
(6) the price is collected by the manufacturer class
license holder, non-resident dealer, foreign importer, or
distributor, or any parent or subsidiary thereof, within
30 days of the date of the sale, unless other terms are
established in writing between the parties.
(c) The State Commission may not prohibit the sale of
non-alcoholic merchandise if it is sold in the manner in which
the non-alcoholic merchandise is sold by a manufacturer or
distributor that is not licensed by the State Commission;
provided, however, that all invoices for non-alcoholic
merchandise sold by a manufacturer class license holder,
non-resident dealer, foreign importer, importing distributor,
or distributor, or any parent or subsidiary thereof, that is
also in business as a bona fide producer or vendor of other
merchandise must be in compliance with the books and records
requirements of 11 Ill. Adm. Code 100.130. If the
non-alcoholic merchandise is sold on the same invoice as an
alcoholic liquor product, the 30-day merchandising credit
provisions of Section 6-5 of this Act shall apply to the entire
transaction, including the non-alcoholic merchandise.
(d) Except as provided in subsection (f), a manufacturer
class license holder, non-resident dealer, foreign importer,
importing distributor, or distributor, or any parent or
subsidiary thereof, that is also in business as a bona fide

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producer or vendor of non-alcoholic merchandise shall not
condition the sale of its alcoholic liquor on the sale of its
non-alcoholic merchandise and shall not combine the sale of
its alcoholic liquor with the sale of its non-alcoholic
merchandise. A manufacturer class license holder, non-resident
dealer, foreign importer, importing distributor, or
distributor, or any parent or subsidiary thereof, that is also
in business as a bona fide producer or vendor of non-alcoholic
merchandise may sell, market, and promote non-alcoholic
merchandise in the same manner in which the non-alcoholic
merchandise is sold, marketed, or promoted by a manufacturer
or distributor not licensed by the State Commission.
Notwithstanding any provision of this Section to the contrary,
the bona fide producer or vendor of non-alcoholic merchandise
shall not provide something of value to a retailer for sale of
non-alcoholic merchandise if the of-value item or items are a
subterfuge for providing something of value for the sale of
alcoholic liquor. The State Commission shall have the
authority to examine records of a manufacturer class license
holder, non-resident dealer, foreign importer, importing
distributor, or distributor, or any parent or subsidiary
thereof, for the purpose of examining all of-value
transactions between such entity and a retailer.
(e) Notwithstanding the prohibited furnishing or providing
of fixtures, equipment, and furnishings to retailers as
contained in Section 6-6 of this Act, the act of a manufacturer

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class license holder, non-resident dealer, foreign importer,
importing distributor, or distributor furnishing or providing
retailers with fixtures, equipment, or furnishings for the
limited purpose of storing, servicing, displaying,
advertising, furnishing, selling, or aiding in the sale of
non-alcoholic merchandise is permitted, only to the extent
allowed by this Section, and such fixtures, equipment, and
furnishings shall not be used by the retail licensee to store,
service, display, advertise, furnish, sell, or aid in the sale
of alcoholic liquors. All such fixtures, equipment, or
furnishings shall be identified by the retail licensee as
being furnished by a manufacturer class license holder,
non-resident dealer, foreign importer, importing distributor,
or distributor licensed by the State Commission and, if
purchased by the retail licensee and sold on the same invoice
as alcoholic liquor products, the price must be collected by
the manufacturer class license holder, non-resident dealer,
foreign importer, importing distributor, or distributor
selling the same within 30 days of the date of sale.
(f) Notwithstanding any provision of this Act to the
contrary, a manufacturer class license holder, non-resident
dealer, foreign importer, importing distributor, or
distributor may package and distribute alcoholic liquor in
combination with other non-alcoholic merchandise products if
the alcoholic liquor and non-alcoholic merchandise was
originally packaged together for ultimate sale to consumers by

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the manufacturer or agent of the manufacturer as originally
packaged by the manufacturer or agent of the manufacturer for
ultimate sale to consumers.
(Source: P.A. 99-282, eff. 8-5-15.)
(235 ILCS 5/6-35)
Sec. 6-35. Alcopops.
(a) For purposes of this Section: ,
"Alcopop alcopop" means a flavored alcoholic beverage or
flavored malt beverage that includes (i) a malt beverage
containing a malt base or beer and added natural or artificial
blending material, such as fruit juices, flavors, flavorings,
colorings, or preservatives where the beverage constitutes
0.5% or more of alcohol by volume such blending material
constitutes .5% or more of the alcohol by volume contained in
the finished beverage; (ii) a beverage containing wine and
more than 15% added natural or artificial blending material,
such as fruit juices, flavors, flavorings, or adjuncts, water
(plain, carbonated, or sparkling), colorings, or
preservatives; (iii) a beverage containing distilled alcohol
and added natural or artificial blending material, such as
fruit juices, flavors, flavorings, colorings, or
preservatives; or (iv) an alcohol malt beverage containing
caffeine, guarana, tauri
ne, or ginseng, where the beverage
constitutes 0.5% or more of alcohol by volume.
"Immediately adjacent" means directly touching or

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immediately bordering one another from above, below, or the
side. "Immediately adjacent" does not include a separate
aisle.
"Retail sales floor" means the part of a retailer's
premises that contains goods on display that are freely
accessible to the consumer
(b) No entity may advertise, promote, or market any
alcopop beverages toward children. Advertise, promote, or
market includes, but is not limited to the following:
(1) the use of cartoons and youth-orientated photos in
advertising, promotion, packaging, or labeling of alcohol
products;
(2) sponsorships of athletic events where the intended
audience is primarily children;
(3) billboards advertising alcopops, as defined in
items (i), (ii), and (iii) of subsection (a) of this
Section, placed within 500 feet of schools, public parks,
amusement parks, and places of worship; and
(4) the display of any alcopop beverage in any
videogame, theater production, or other live performances
where the intended audience is primarily children.
(b-5) No retail establishment with a retail sales floor
that exceeds 2,500 square feet shall display alcopops
immediately adjacent to soft drinks, fruit juices, bottled
water, candy, or snack foods portraying cartoons or
youth-oriented photos.

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(b-10) Any retail establishment with a retail sales floor
that is equal to or less than 2,500 square feet shall either:
(1) not display alcopops immediately adjacent to soft
drinks, fruit juices, bottled water, candy, or snack foods
portraying cartoons or youth-oriented photos; or
(2) equip any such display that contains alcopops and
is immediately adjacent to soft drinks, fruit juices,
bottled water, candy, or snack foods portraying cartoons
or youth-oriented photos 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.". Such sign may be provided by the State
Commission or by the licensee.
(b-15) Subsections (b-5) and (b-10) 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.
(c) No entity shall sell for consumption an alcohol malt
beverage containing caffeine, guarana, taurine, or ginseng,
where the beverage constitutes 0.5% or more of alcohol by
volume, unless individual containers of the beverage have
imprinted on each individual container the following:
(1) the words "contains alcohol"; and
(2) the alcohol content of the beverage.

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(d) Any person who violates this Section is guilty of a
business offense and shall be fined $500 for a first offense
and $1,000 for a second or subsequent offense.
(e) Nothing in this Section shall be construed to be
inconsistent with any other provision of this Section or any
other State or federal laws, rules, or regulations regarding
the labeling of alcoholic beverages.
(Source: P.A. 95-618, eff. 6-1-08; 95-860, eff. 1-1-09.)".