Bill Text: IL HB4018 | 2015-2016 | 99th General Assembly | Chaptered


Bill Title: Amends the Liquor Control Act of 1934. Provides that specified licensees under the Act may sell non-alcoholic merchandise to retail licensees if certain conditions are met. Provides that nothing in the Act authorizes the Illinois Liquor Control Commission to regulate or exercise jurisdiction over any transaction involving the furnishing, selling, or offering for sale of non-alcoholic merchandise by manufacturers, distributors, or retailers, unless the transaction involves expressed or implied agreements or understandings prohibited by the Act. Provides certain restrictions on transactions involving the sale of non-alcoholic merchandise, including a prohibition on conditioning the sale of alcoholic liquor on the sale of non-alcoholic merchandise. Contains provisions concerning the furnishing of fixtures, equipment, and furnishings related to non-alcoholic merchandise to retail licensees. Defines "manufacturer class license holder" and "non-alcoholic merchandise". Makes other changes. Effective immediately.

Spectrum: Moderate Partisan Bill (Democrat 6-1)

Status: (Passed) 2015-08-05 - Public Act . . . . . . . . . 99-0282 [HB4018 Detail]

Download: Illinois-2015-HB4018-Chaptered.html



Public Act 099-0282
HB4018 EnrolledLRB099 07839 RPS 27974 b
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
adding Sections 1-3.40, 1-3.41, and 6-6.3 as follows:
(235 ILCS 5/1-3.40 new)
Sec. 1-3.40. Manufacturer class license holder.
"Manufacturer class license holder" means any holder of a
Manufacturer's license as provided in Section 5-1 of this Act.
The Manufacturer's licenses are: a Class 1. Distiller, a Class
2. Rectifier, a Class 3. Brewer, a Class 4. First Class Wine
Manufacturer, a Class 5. Second Class Wine Manufacturer, a
Class 6. First Class Winemaker, a Class 7. Second Class
Winemaker, a Class 8. Limited Wine Manufacturer, a Class 9.
Craft Distiller, and a Class 10. Craft Brewer and any future
Manufacturer's licenses established by law.
(235 ILCS 5/1-3.41 new)
Sec. 1-3.41. Non-alcoholic merchandise. "Non-alcoholic
merchandise" means any good or commodity that contains less
than 0.5 percent alcohol by volume. For purposes of this Act,
"non-alcoholic merchandise" does not include trade fixtures,
equipment, or furnishings that are used or intended for the
limited purpose of storing, servicing, displaying,
advertising, furnishing, selling, or aiding in the sale of
alcoholic liquors.
(235 ILCS 5/6-6.3 new)
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 engaged in any transaction
involving the furnishing, selling, or offering for sale of
non-alcoholic merchandise by manufacturers, distributors, or
retailers, unless the transaction involves expressed or
implied agreements or understandings prohibited by this Act.
(b) Non-alcoholic merchandise may be sold by a manufacturer
class license holder, non-resident dealer, foreign importer,
importing distributor, or distributor to a retail licensee if:
(1) the manufacturer class license holder,
non-resident dealer, foreign importer, importing
distributor, or distributor 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 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
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 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 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 that is also in business
as a bona fide 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 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.
(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
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
the manufacturer or agent of the manufacturer as originally
packaged by the manufacturer or agent of the manufacturer for
ultimate sale to consumers.
Section 99. Effective date. This Act takes effect upon
becoming law.
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