Bill Text: IL HB3237 | 2015-2016 | 99th General Assembly | Engrossed
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: 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.
Spectrum: Bipartisan Bill
Status: (Passed) 2015-08-24 - Public Act . . . . . . . . . 99-0448 [HB3237 Detail]
Download: Illinois-2015-HB3237-Engrossed.html
Bill Title: 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.
Spectrum: Bipartisan Bill
Status: (Passed) 2015-08-24 - Public Act . . . . . . . . . 99-0448 [HB3237 Detail]
Download: Illinois-2015-HB3237-Engrossed.html
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1 | AN ACT concerning liquor.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Liquor Control Act of 1934 is amended by | ||||||
5 | changing Sections 6-5 and 6-6 as follows:
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6 | (235 ILCS 5/6-5) (from Ch. 43, par. 122)
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7 | Sec. 6-5.
Except as otherwise provided in this Section, it | ||||||
8 | is unlawful
for any person having a retailer's license or
any | ||||||
9 | officer, associate, member, representative or agent of such | ||||||
10 | licensee
to accept, receive or borrow money, or anything else | ||||||
11 | of value, or accept
or receive credit (other than merchandising | ||||||
12 | credit in the ordinary
course of business for a period not to | ||||||
13 | exceed 30 days) directly or
indirectly from any manufacturer, | ||||||
14 | importing distributor or distributor
of alcoholic liquor, or | ||||||
15 | from any person connected with or in any way
representing, or | ||||||
16 | from any member of the family of, such manufacturer,
importing | ||||||
17 | distributor, distributor or wholesaler, or from any
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18 | stockholders in any corporation engaged in manufacturing, | ||||||
19 | distributing
or wholesaling of such liquor, or from any | ||||||
20 | officer, manager, agent or
representative of said | ||||||
21 | manufacturer. Except as provided below, it is
unlawful for any | ||||||
22 | manufacturer
or distributor or importing distributor to give or | ||||||
23 | lend money or
anything of value, or otherwise loan or extend |
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1 | credit (except such
merchandising credit) directly or | ||||||
2 | indirectly to any retail licensee or
to the manager, | ||||||
3 | representative, agent, officer or director of such
licensee. A | ||||||
4 | manufacturer, distributor or importing distributor may furnish
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5 | free advertising, posters,
signs, brochures, hand-outs, or | ||||||
6 | other promotional devices or materials to
any unit of | ||||||
7 | government owning or operating any auditorium, exhibition | ||||||
8 | hall,
recreation facility or other similar facility holding a | ||||||
9 | retailer's license,
provided that the primary purpose of such | ||||||
10 | promotional devices or materials
is to promote public events | ||||||
11 | being held at such facility. A unit of government
owning or | ||||||
12 | operating such a facility holding a retailer's license may | ||||||
13 | accept
such promotional devices or materials designed | ||||||
14 | primarily to promote public
events held at the facility. No | ||||||
15 | retail licensee delinquent beyond the
30 day period specified | ||||||
16 | in this Section shall
solicit, accept or receive credit, | ||||||
17 | purchase or acquire alcoholic
liquors, directly or indirectly | ||||||
18 | from any other licensee, and no
manufacturer, distributor or | ||||||
19 | importing distributor shall knowingly grant
or extend credit, | ||||||
20 | sell, furnish or supply alcoholic liquors to any such
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21 | delinquent retail licensee; provided that the purchase price of | ||||||
22 | all beer
sold to a retail licensee shall be paid by the retail | ||||||
23 | licensee in cash
on or before delivery of the beer, and unless | ||||||
24 | the purchase price payable
by a retail licensee for beer sold | ||||||
25 | to him in returnable bottles shall
expressly include a charge | ||||||
26 | for the bottles and cases, the retail
licensee shall, on or |
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1 | before delivery of such beer, pay the seller in
cash a deposit | ||||||
2 | in an amount not less than the deposit required to be
paid by | ||||||
3 | the distributor to the brewer; but where the brewer sells | ||||||
4 | direct
to the retailer, the deposit shall be an amount no less | ||||||
5 | than that
required by the brewer from his own distributors; and | ||||||
6 | provided further,
that in no instance shall this deposit be | ||||||
7 | less than 50 cents for each
case of beer in pint or smaller | ||||||
8 | bottles and 60 cents for each case of
beer in quart or | ||||||
9 | half-gallon bottles; and provided further, that the
purchase | ||||||
10 | price of all beer sold to an importing distributor or
| ||||||
11 | distributor shall be paid by such importing distributor or | ||||||
12 | distributor
in cash on or before the 15th day (Sundays and | ||||||
13 | holidays excepted) after
delivery of such beer to such | ||||||
14 | purchaser; and unless the purchase price
payable by such | ||||||
15 | importing distributor or distributor for beer sold in
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16 | returnable bottles and cases shall expressly include a charge | ||||||
17 | for the
bottles and cases, such importing distributor or | ||||||
18 | distributor shall, on
or before the 15th day (Sundays and | ||||||
19 | holidays excepted) after delivery of
such beer to such | ||||||
20 | purchaser, pay the seller in cash a required amount as
a | ||||||
21 | deposit to assure the return of such bottles and cases. Nothing | ||||||
22 | herein
contained shall prohibit any licensee from crediting or | ||||||
23 | refunding to a
purchaser the actual amount of money paid for | ||||||
24 | bottles, cases, kegs or
barrels returned by the purchaser to | ||||||
25 | the seller or paid by the purchaser
as a deposit on bottles, | ||||||
26 | cases, kegs or barrels, when such containers or
packages are |
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1 | returned to the seller. Nothing herein contained shall
prohibit | ||||||
2 | any manufacturer, importing distributor or distributor from
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3 | extending usual and customary credit for alcoholic liquor sold | ||||||
4 | to
customers or purchasers who live in or maintain places of | ||||||
5 | business
outside of this State when such alcoholic liquor is | ||||||
6 | actually transported
and delivered to such points outside of | ||||||
7 | this State.
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8 | A manufacturer, distributor, or importing distributor may | ||||||
9 | furnish free social media advertising to a person having a | ||||||
10 | retail license if the social media advertisement does not | ||||||
11 | contain the retail price of any alcoholic liquor. For the | ||||||
12 | purposes of this Section, "social media" means a service, | ||||||
13 | platform, or site where users communicate with one another and | ||||||
14 | share media, such as pictures, videos, music, and blogs, with | ||||||
15 | other users free of charge. | ||||||
16 | No right of action shall exist for the collection of any | ||||||
17 | claim based
upon credit extended to a distributor, importing | ||||||
18 | distributor or retail
licensee contrary to the provisions of | ||||||
19 | this Section.
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20 | Every manufacturer, importing distributor and distributor | ||||||
21 | shall
submit or cause to be submitted, to the State Commission, | ||||||
22 | in triplicate,
not later than Thursday of each calendar week, a | ||||||
23 | verified written list
of the names and respective addresses of | ||||||
24 | each retail licensee purchasing
spirits or wine from such | ||||||
25 | manufacturer, importing distributor or
distributor who, on the | ||||||
26 | first business day of that calendar week, was
delinquent beyond |
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1 | the above mentioned permissible merchandising credit
period of | ||||||
2 | 30 days; or, if such is the fact, a verified written statement
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3 | that no retail licensee purchasing spirits or wine was then | ||||||
4 | delinquent
beyond such permissible merchandising credit period | ||||||
5 | of 30 days.
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6 | Every manufacturer, importing distributor and distributor | ||||||
7 | shall
submit or cause to be submitted, to the State Commission, | ||||||
8 | in triplicate,
a verified written list of the names and | ||||||
9 | respective addresses of each
previously reported delinquent | ||||||
10 | retail licensee who has cured such
delinquency by payment, | ||||||
11 | which list shall be submitted not later than the
close of the | ||||||
12 | second full business day following the day such delinquency
was | ||||||
13 | so cured.
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14 | Such written verified reports required to be submitted by | ||||||
15 | this
Section shall be posted by the State Commission in each of | ||||||
16 | its offices
in places available for public inspection not later | ||||||
17 | than the day
following receipt thereof by the Commission. The | ||||||
18 | reports so posted shall
constitute notice to every | ||||||
19 | manufacturer, importing distributor and
distributor of the | ||||||
20 | information contained therein. Actual notice to
manufacturers, | ||||||
21 | importing distributors and distributors of the
information | ||||||
22 | contained in any such posted reports, however received,
shall | ||||||
23 | also constitute notice of such information.
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24 | The 30 day merchandising credit period allowed by this | ||||||
25 | Section shall
commence with the day immediately following the | ||||||
26 | date of invoice and
shall include all successive days including |
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1 | Sundays and holidays to and
including the 30th successive day.
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2 | In addition to other methods allowed by law, payment by | ||||||
3 | check during
the period for which merchandising credit may be | ||||||
4 | extended under the
provisions of this Section shall be | ||||||
5 | considered payment. All checks
received in payment for | ||||||
6 | alcoholic liquor shall be promptly deposited for
collection. A | ||||||
7 | post dated check or a check dishonored on presentation for
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8 | payment shall not be deemed payment.
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9 | A retail licensee shall not be deemed to be delinquent in | ||||||
10 | payment for
any alleged sale to him of alcoholic liquor when | ||||||
11 | there exists a bona fide
dispute between such retailer and a | ||||||
12 | manufacturer, importing distributor
or distributor with | ||||||
13 | respect to the amount of indebtedness existing
because of such | ||||||
14 | alleged sale.
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15 | A delinquent retail licensee who engages in the retail | ||||||
16 | liquor
business at 2 or more locations shall be deemed to be | ||||||
17 | delinquent with
respect to each such location.
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18 | The license of any person who violates any provision of | ||||||
19 | this Section
shall be subject to suspension or revocation in | ||||||
20 | the manner provided by
this Act.
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21 | If any part or provision of this Article or the application | ||||||
22 | thereof
to any person or circumstances shall be adjudged | ||||||
23 | invalid by a court of
competent jurisdiction, such judgment | ||||||
24 | shall be confined by its operation
to the controversy in which | ||||||
25 | it was mentioned and shall not affect or
invalidate the | ||||||
26 | remainder of this Article or the application thereof to
any |
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1 | other person or circumstance and to this and the provisions of | ||||||
2 | this
Article are declared severable.
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3 | (Source: P.A. 83-762.)
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4 | (235 ILCS 5/6-6) (from Ch. 43, par. 123)
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5 | Sec. 6-6.
Except as otherwise provided in this Act no | ||||||
6 | manufacturer or
distributor or importing distributor shall, | ||||||
7 | directly or indirectly,
sell, supply, furnish, give or pay for, | ||||||
8 | or loan or lease, any
furnishing, fixture or equipment on the | ||||||
9 | premises of a place of business
of another licensee authorized | ||||||
10 | under this Act to sell alcoholic liquor
at retail, either for | ||||||
11 | consumption on or off the premises, nor shall he or she,
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12 | directly or indirectly, pay for any such license, or advance, | ||||||
13 | furnish,
lend or give money for payment of such license, or | ||||||
14 | purchase or become
the owner of any note, mortgage, or other | ||||||
15 | evidence of indebtedness of
such licensee or any form of | ||||||
16 | security therefor, nor shall such
manufacturer, or | ||||||
17 | distributor, or importing distributor, directly or
indirectly, | ||||||
18 | be interested in the ownership, conduct or operation of the
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19 | business of any licensee authorized to sell alcoholic liquor at | ||||||
20 | retail,
nor shall any manufacturer, or distributor, or | ||||||
21 | importing distributor be
interested directly or indirectly or | ||||||
22 | as owner or part owner of said
premises or as lessee or lessor | ||||||
23 | thereof, in any premises upon which
alcoholic liquor is sold at | ||||||
24 | retail.
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25 | No manufacturer or distributor or importing distributor |
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1 | shall,
directly or indirectly or through a subsidiary or | ||||||
2 | affiliate, or by any
officer, director or firm of such | ||||||
3 | manufacturer, distributor or importing
distributor, furnish, | ||||||
4 | give, lend or rent, install, repair or maintain,
to or for any | ||||||
5 | retail licensee in this State, any
signs or inside advertising | ||||||
6 | materials except as provided in this Section and
Section 6-5. | ||||||
7 | With respect to
retail licensees, other than any government | ||||||
8 | owned or operated auditorium,
exhibition hall, recreation | ||||||
9 | facility or other similar facility holding a
retailer's license | ||||||
10 | as described in Section 6-5, a manufacturer,
distributor, or | ||||||
11 | importing distributor may furnish, give, lend or rent and
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12 | erect, install, repair and maintain to or for any retail | ||||||
13 | licensee, for use
at any one time in or about or in connection | ||||||
14 | with a retail establishment on
which the products of the | ||||||
15 | manufacturer, distributor or importing
distributor are sold, | ||||||
16 | the following signs and inside advertising materials
as | ||||||
17 | authorized in subparts (i), (ii), (iii), and (iv):
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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,
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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,
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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,
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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
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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
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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
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22 | retail licensee containing, for example, community | ||||||
23 | goodwill expressions,
regional sporting event | ||||||
24 | announcements, or seasonal messages, provided that the
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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.
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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
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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
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25 | commonly referred to as a "beer garden" that is a part of | ||||||
26 | the retailer's
licensed premises.
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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,
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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
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23 | courtyard or patio commonly referred to as a "beer garden" | ||||||
24 | that is a part of
the retailer's licensed premises.
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25 | A "cost adjustment factor" shall be used to periodically | ||||||
26 | update the
dollar limitations prescribed in subparts (i), |
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1 | (iii), and (iv). The Commission
shall establish the adjusted | ||||||
2 | dollar limitation on an annual basis beginning in
January, | ||||||
3 | 1997. The term "cost adjustment factor"
means a percentage | ||||||
4 | equal to the change in the Bureau of Labor Statistics
Consumer | ||||||
5 | Price Index or 5%, whichever is greater.
The restrictions | ||||||
6 | contained in this Section 6-6 do not apply to signs, or
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7 | promotional or advertising materials furnished by | ||||||
8 | manufacturers, distributors
or importing distributors to a | ||||||
9 | government owned or operated facility holding
a retailer's | ||||||
10 | license as described in Section 6-5.
| ||||||
11 | No distributor or importing distributor shall directly or | ||||||
12 | indirectly
or through a subsidiary or affiliate, or by any | ||||||
13 | officer, director or
firm of such manufacturer, distributor or | ||||||
14 | importing distributor,
furnish, give, lend or rent, install, | ||||||
15 | repair or maintain, to or for any
retail licensee in this | ||||||
16 | State, any signs or
inside advertising materials described in | ||||||
17 | subparts (i), (ii), (iii), or (iv)
of this Section except as | ||||||
18 | the agent for or on behalf of a manufacturer,
provided that the | ||||||
19 | total cost of any signs and inside advertising materials
| ||||||
20 | including but not limited to labor, erection, installation and | ||||||
21 | permit fees
shall be paid by the manufacturer whose product or | ||||||
22 | products said signs
and inside advertising materials advertise | ||||||
23 | and except as follows:
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24 | A distributor or importing distributor may purchase from or | ||||||
25 | enter into a
written agreement with a manufacturer or a | ||||||
26 | manufacturer's designated supplier
and such manufacturer or |
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1 | the manufacturer's designated supplier may sell or
enter into | ||||||
2 | an agreement to sell to a distributor or importing distributor
| ||||||
3 | permitted signs and advertising materials described in | ||||||
4 | subparts (ii), (iii), or
(iv) of this Section for the purpose | ||||||
5 | of furnishing, giving, lending, renting,
installing, | ||||||
6 | repairing, or maintaining such signs or advertising materials | ||||||
7 | to or
for any retail licensee in this State. Any purchase by a | ||||||
8 | distributor or
importing distributor from a manufacturer or a | ||||||
9 | manufacturer's designated
supplier shall be voluntary and the | ||||||
10 | manufacturer may not require the
distributor or the importing | ||||||
11 | distributor to purchase signs or advertising
materials from the | ||||||
12 | manufacturer or the manufacturer's designated supplier.
| ||||||
13 | A distributor or importing distributor shall be deemed the | ||||||
14 | owner of such
signs or advertising materials purchased from a | ||||||
15 | manufacturer or
a manufacturer's designated supplier.
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16 | The provisions of Public Act 90-373
concerning signs or | ||||||
17 | advertising materials delivered by a manufacturer to a
| ||||||
18 | distributor or importing distributor shall apply only to signs | ||||||
19 | or advertising
materials delivered on or after August 14, 1997.
| ||||||
20 | A manufacturer, distributor, or importing distributor may | ||||||
21 | furnish free social media advertising to a person having a | ||||||
22 | retail license if the social media advertisement does not | ||||||
23 | contain the retail price of any alcoholic liquor. For the | ||||||
24 | purposes of this Section, "social media" means a service, | ||||||
25 | platform, or site where users communicate with one another and | ||||||
26 | share media, such as pictures, videos, music, and blogs, with |
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1 | other users free of charge. | ||||||
2 | No person engaged in the business of manufacturing, | ||||||
3 | importing or
distributing alcoholic liquors shall, directly or | ||||||
4 | indirectly, pay for,
or advance, furnish, or lend money for the | ||||||
5 | payment of any license for
another. Any licensee who shall | ||||||
6 | permit or assent, or be a party in any
way to any violation or | ||||||
7 | infringement of the provisions of this Section
shall be deemed | ||||||
8 | guilty of a violation of this Act, and any money loaned
| ||||||
9 | contrary to a provision of this Act shall not be recovered | ||||||
10 | back, or any
note, mortgage or other evidence of indebtedness, | ||||||
11 | or security, or any
lease or contract obtained or made contrary | ||||||
12 | to this Act shall be
unenforceable and void.
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13 | This Section shall not apply to airplane licensees | ||||||
14 | exercising powers
provided in paragraph (i) of Section 5-1 of | ||||||
15 | this Act.
| ||||||
16 | (Source: P.A. 98-756, eff. 7-16-14.)
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17 | Section 99. Effective date. This Act takes effect upon | ||||||
18 | becoming law.
|