Bill Text: IL HB5584 | 2013-2014 | 98th General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the Liquor Control Act of 1934. Provides that the provisions of the Act that prohibit liquor distributors and liquor manufacturers from giving anything of value to a person who has a retailer's license do not authorize the Liquor Control Commission to regulate beverage products that contain one-half of one per cent, or less, of alcohol by volume. Provides that the provisions of the Act shall not apply to any liquid or solid containing one-half of one percent, or less, of alcohol by volume.

Spectrum: Bipartisan Bill

Status: (Failed) 2015-01-04 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments [HB5584 Detail]

Download: Illinois-2013-HB5584-Introduced.html

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98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 HB5584 Introduced , by Rep. Frank J. Mautino SYNOPSIS AS INTRODUCED:
235 ILCS 5/2-1 from Ch. 43, par. 96
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. Provides that the provisions of the Act that prohibit liquor distributors and liquor manufacturers from giving anything of value to a person who has a retailer's license do not authorize the Liquor Control Commission to regulate beverage products that contain one-half of one per cent, or less, of alcohol by volume. Provides that the provisions of the Act shall not apply to any liquid or solid containing one-half of one per cent, or less, of alcohol by volume.
LRB098 17698 RPS 52813 b
FISCAL NOTE ACT MAY APPLY
A BILL FOR
HB5584 LRB098 17698 RPS 52813 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
changing Sections 2-1, 6-5, and 6-6 as follows:
(235 ILCS 5/2-1) (from Ch. 43, par. 96)
Sec. 2-1. No person shall manufacture, bottle, blend, sell,
barter, transport, transfer into this State from a point
outside this State, deliver, furnish or possess any alcoholic
liquor for beverage purposes, unless such person has been
issued a license by the Commission or except as permitted by
Section 6-29 of this Act or except as otherwise specifically
provided in this Act; provided, however, nothing herein
contained shall prevent the possession and transportation of
alcoholic liquor by the possessor for the personal use of the
possessor, his family and guests, nor prevent the making of
wine, cider or other alcoholic liquor by a person from fruits,
vegetables or grains, or the products thereof, by simple
fermentation and without distillation, if it is made solely for
the use of the maker, his family and his guests; and provided
further that nothing herein contained shall prevent any duly
licensed practicing physician or dentist from possessing or
using alcoholic liquor in the strict practice of his

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profession, or any hospital or other institution caring for
sick and diseased persons, from possessing and using alcoholic
liquor for the treatment of bona fide patients of such hospital
or other institution; and provided further that any drug store
employing a licensed pharmacist may possess and use alcoholic
liquors in the concoction of prescriptions of duly licensed
physicians; and provided further, that the possession and
dispensation of wine by an authorized representative of any
church for the purpose of conducting any bona fide rite or
religious ceremony conducted by such church shall not be
prohibited by this Act.
The provisions of this Act shall not apply to any liquid or
solid containing one-half of one per cent, or less, of alcohol
by volume.
(Source: P.A. 90-739, eff. 8-13-98.)
(235 ILCS 5/6-5) (from Ch. 43, par. 122)
Sec. 6-5. Except as otherwise provided in this Section, it
is unlawful for any person having a retailer's license or any
officer, associate, member, representative or agent of such
licensee to accept, receive or borrow money, or anything else
of value, or accept or receive credit (other than merchandising
credit in the ordinary course of business for a period not to
exceed 30 days) directly or indirectly from any manufacturer,
importing distributor or distributor of alcoholic liquor, or
from any person connected with or in any way representing, or

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from any member of the family of, such manufacturer, importing
distributor, distributor or wholesaler, or from any
stockholders in any corporation engaged in manufacturing,
distributing or wholesaling of such liquor, or from any
officer, manager, agent or representative of said
manufacturer. Except as provided below, it is unlawful for any
manufacturer or distributor or importing distributor to give or
lend money or anything of value, or otherwise loan or extend
credit (except such merchandising credit) directly or
indirectly to any retail licensee or to the manager,
representative, agent, officer or director of such licensee. A
manufacturer, distributor or importing distributor may furnish
free advertising, posters, signs, brochures, hand-outs, or
other promotional devices or materials to any unit of
government owning or operating any auditorium, exhibition
hall, recreation facility or other similar facility holding a
retailer's license, provided that the primary purpose of such
promotional devices or materials is to promote public events
being held at such facility. A unit of government owning or
operating such a facility holding a retailer's license may
accept such promotional devices or materials designed
primarily to promote public events held at the facility. No
retail licensee delinquent beyond the 30 day period specified
in this Section shall solicit, accept or receive credit,
purchase or acquire alcoholic liquors, directly or indirectly
from any other licensee, and no manufacturer, distributor or

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importing distributor shall knowingly grant or extend credit,
sell, furnish or supply alcoholic liquors to any such
delinquent retail licensee; provided that the purchase price of
all beer sold to a retail licensee shall be paid by the retail
licensee in cash on or before delivery of the beer, and unless
the purchase price payable by a retail licensee for beer sold
to him in returnable bottles shall expressly include a charge
for the bottles and cases, the retail licensee shall, on or
before delivery of such beer, pay the seller in cash a deposit
in an amount not less than the deposit required to be paid by
the distributor to the brewer; but where the brewer sells
direct to the retailer, the deposit shall be an amount no less
than that required by the brewer from his own distributors; and
provided further, that in no instance shall this deposit be
less than 50 cents for each case of beer in pint or smaller
bottles and 60 cents for each case of beer in quart or
half-gallon bottles; and provided further, that the purchase
price of all beer sold to an importing distributor or
distributor shall be paid by such importing distributor or
distributor in cash on or before the 15th day (Sundays and
holidays excepted) after delivery of such beer to such
purchaser; and unless the purchase price payable by such
importing distributor or distributor for beer sold in
returnable bottles and cases shall expressly include a charge
for the bottles and cases, such importing distributor or
distributor shall, on or before the 15th day (Sundays and

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holidays excepted) after delivery of such beer to such
purchaser, pay the seller in cash a required amount as a
deposit to assure the return of such bottles and cases. Nothing
herein contained shall prohibit any licensee from crediting or
refunding to a purchaser the actual amount of money paid for
bottles, cases, kegs or barrels returned by the purchaser to
the seller or paid by the purchaser as a deposit on bottles,
cases, kegs or barrels, when such containers or packages are
returned to the seller. Nothing herein contained shall prohibit
any manufacturer, importing distributor or distributor from
extending usual and customary credit for alcoholic liquor sold
to customers or purchasers who live in or maintain places of
business outside of this State when such alcoholic liquor is
actually transported and delivered to such points outside of
this State.
No right of action shall exist for the collection of any
claim based upon credit extended to a distributor, importing
distributor or retail licensee contrary to the provisions of
this Section.
Every manufacturer, importing distributor and distributor
shall submit or cause to be submitted, to the State Commission,
in triplicate, not later than Thursday of each calendar week, a
verified written list of the names and respective addresses of
each retail licensee purchasing spirits or wine from such
manufacturer, importing distributor or distributor who, on the
first business day of that calendar week, was delinquent beyond

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

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

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other person or circumstance and to this and the provisions of
this Article are declared severable.
This Section does not authorize the State Commission to
regulate beverage products that contain one-half of one per
cent, or less, of alcohol by volume.
(Source: P.A. 83-762.)
(235 ILCS 5/6-6) (from Ch. 43, par. 123)
Sec. 6-6. Except as otherwise provided in this Act no
manufacturer or distributor or importing distributor shall,
directly, or indirectly, sell, supply, furnish, give or pay
for, or loan or lease, any furnishing, fixture or equipment on
the premises of a place of business of another licensee
authorized under this Act to sell alcoholic liquor at retail,
either for consumption on or off the premises, nor shall he or
she, directly or indirectly, pay for any such license, or
advance, furnish, lend or give money for payment of such
license, or purchase or become the owner of any note, mortgage,
or other evidence of indebtedness of such licensee or any form
of security therefor, nor shall such manufacturer, or
distributor, or importing distributor, directly or indirectly,
be interested in the ownership, conduct or operation of the
business of any licensee authorized to sell alcoholic liquor at
retail, nor shall any manufacturer, or distributor, or
importing distributor be interested directly or indirectly or
as owner or part owner of said premises or as lessee or lessor

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thereof, in any premises upon which alcoholic liquor is sold at
retail.
No manufacturer or distributor or importing distributor
shall, directly or indirectly or through a subsidiary or
affiliate, or by any officer, director or firm of such
manufacturer, distributor or importing distributor, furnish,
give, lend or rent, install, repair or maintain, to or for any
retail licensee in this State, any signs or inside advertising
materials except as provided in this Section and Section 6-5.
With respect to retail licensees, other than any government
owned or operated auditorium, exhibition hall, recreation
facility or other similar facility holding a retailer's license
as described in Section 6-5, a manufacturer, distributor, or
importing distributor may furnish, give, lend or rent and
erect, install, repair and maintain to or for any retail
licensee, for use at any one time in or about or in connection
with a retail establishment on which the products of the
manufacturer, distributor or importing distributor are sold,
the following signs and inside advertising materials as
authorized in subparts (i), (ii), (iii), and (iv):
(i) Permanent outside signs shall be limited to one
outside sign, per brand, in place and in use at any one
time, costing not more than $893, exclusive of erection,
installation, repair and maintenance costs, and permit
fees and shall bear only the manufacturer's name, brand
name, trade name, slogans, markings, trademark, or other

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symbols commonly associated with and generally used in
identifying the product including, but not limited to,
"cold beer", "on tap", "carry out", and "packaged liquor".
(ii) Temporary outside signs shall be limited to one
temporary outside sign per brand. Examples of temporary
outside signs are banners, flags, pennants, streamers, and
other items of a temporary and non-permanent nature. Each
temporary outside sign must include the manufacturer's
name, brand name, trade name, slogans, markings,
trademark, or other symbol commonly associated with and
generally used in identifying the product. Temporary
outside signs may also include, for example, the product,
price, packaging, date or dates of a promotion and an
announcement of a retail licensee's specific sponsored
event, if the temporary outside sign is intended to promote
a product, and provided that the announcement of the retail
licensee's event and the product promotion are held
simultaneously. However, temporary outside signs may not
include names, slogans, markings, or logos that relate to
the retailer. Nothing in this subpart (ii) shall prohibit a
distributor or importing distributor from bearing the cost
of creating or printing a temporary outside sign for the
retail licensee's specific sponsored event or from bearing
the cost of creating or printing a temporary sign for a
retail licensee containing, for example, community
goodwill expressions, regional sporting event

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announcements, or seasonal messages, provided that the
primary purpose of the temporary outside sign is to
highlight, promote, or advertise the product. In addition,
temporary outside signs provided by the manufacturer to the
distributor or importing distributor may also include, for
example, subject to the limitations of this Section,
preprinted community goodwill expressions, sporting event
announcements, seasonal messages, and manufacturer
promotional announcements. However, a distributor or
importing distributor shall not bear the cost of such
manufacturer preprinted signs.
(iii) Permanent inside signs, whether visible from the
outside or the inside of the premises, include, but are not
limited to: alcohol lists and menus that may include names,
slogans, markings, or logos that relate to the retailer;
neons; illuminated signs; clocks; table lamps; mirrors;
tap handles; decalcomanias; window painting; and window
trim. All permanent inside signs in place and in use at any
one time shall cost in the aggregate not more than $2000
per manufacturer. A permanent inside sign must include the
manufacturer's name, brand name, trade name, slogans,
markings, trademark, or other symbol commonly associated
with and generally used in identifying the product.
However, permanent inside signs may not include names,
slogans, markings, or logos that relate to the retailer.
For the purpose of this subpart (iii), all permanent inside

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signs may be displayed in an adjacent courtyard or patio
commonly referred to as a "beer garden" that is a part of
the retailer's licensed premises.
(iv) Temporary inside signs shall include, but are not
limited to, lighted chalk boards, acrylic table tent
beverage or hors d'oeuvre list holders, banners, flags,
pennants, streamers, and inside advertising materials such
as posters, placards, bowling sheets, table tents, inserts
for acrylic table tent beverage or hors d'oeuvre list
holders, sports schedules, or similar printed or
illustrated materials; however, such items, for example,
as coasters, trays, napkins, glassware and cups shall not
be deemed to be inside signs or advertising materials and
may only be sold to retailers. All temporary inside signs
and inside advertising materials in place and in use at any
one time shall cost in the aggregate not more than $325 per
manufacturer. Nothing in this subpart (iv) prohibits a
distributor or importing distributor from paying the cost
of printing or creating any temporary inside banner or
inserts for acrylic table tent beverage or hors d'oeuvre
list holders for a retail licensee, provided that the
primary purpose for the banner or insert is to highlight,
promote, or advertise the product. For the purpose of this
subpart (iv), all temporary inside signs and inside
advertising materials may be displayed in an adjacent
courtyard or patio commonly referred to as a "beer garden"

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that is a part of the retailer's licensed premises.
A "cost adjustment factor" shall be used to periodically
update the dollar limitations prescribed in subparts (i),
(iii), and (iv). The Commission shall establish the adjusted
dollar limitation on an annual basis beginning in January,
1997. The term "cost adjustment factor" means a percentage
equal to the change in the Bureau of Labor Statistics Consumer
Price Index or 5%, whichever is greater. The restrictions
contained in this Section 6-6 do not apply to signs, or
promotional or advertising materials furnished by
manufacturers, distributors or importing distributors to a
government owned or operated facility holding a retailer's
license as described in Section 6-5.
No distributor or importing distributor shall directly or
indirectly or through a subsidiary or affiliate, or by any
officer, director or firm of such manufacturer, distributor or
importing distributor, furnish, give, lend or rent, install,
repair or maintain, to or for any retail licensee in this
State, any signs or inside advertising materials described in
subparts (i), (ii), (iii), or (iv) of this Section except as
the agent for or on behalf of a manufacturer, provided that the
total cost of any signs and inside advertising materials
including but not limited to labor, erection, installation and
permit fees shall be paid by the manufacturer whose product or
products said signs and inside advertising materials advertise
and except as follows:

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A distributor or importing distributor may purchase from or
enter into a written agreement with a manufacturer or a
manufacturer's designated supplier and such manufacturer or
the manufacturer's designated supplier may sell or enter into
an agreement to sell to a distributor or importing distributor
permitted signs and advertising materials described in
subparts (ii), (iii), or (iv) of this Section for the purpose
of furnishing, giving, lending, renting, installing,
repairing, or maintaining such signs or advertising materials
to or for any retail licensee in this State. Any purchase by a
distributor or importing distributor from a manufacturer or a
manufacturer's designated supplier shall be voluntary and the
manufacturer may not require the distributor or the importing
distributor to purchase signs or advertising materials from the
manufacturer or the manufacturer's designated supplier.
A distributor or importing distributor shall be deemed the
owner of such signs or advertising materials purchased from a
manufacturer or a manufacturer's designated supplier.
The provisions of Public Act 90-373 concerning signs or
advertising materials delivered by a manufacturer to a
distributor or importing distributor shall apply only to signs
or advertising materials delivered on or after August 14, 1997.
No person engaged in the business of manufacturing,
importing or distributing alcoholic liquors shall, directly or
indirectly, pay for, or advance, furnish, or lend money for the
payment of any license for another. Any licensee who shall

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permit or assent, or be a party in any way to any violation or
infringement of the provisions of this Section shall be deemed
guilty of a violation of this Act, and any money loaned
contrary to a provision of this Act shall not be recovered
back, or any note, mortgage or other evidence of indebtedness,
or security, or any lease or contract obtained or made contrary
to this Act shall be unenforceable and void.
This Section shall not apply to airplane licensees
exercising powers provided in paragraph (i) of Section 5-1 of
this Act.
This Section does not authorize the State Commission to
regulate beverage products that contain one-half of one per
cent, or less, of alcohol by volume.
(Source: P.A. 89-238, eff. 8-4-95; 89-529, eff. 7-19-96;
90-373, eff. 8-14-97; 90-432, eff. 1-1-98; 90-655, eff.
7-30-98; revised 9-24-13.)