HB 2956

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Full Text of HB2956
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	HB2956 - 104th General Assembly
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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB2956
Introduced 2/6/2025, by Rep. Michael J. Kelly
SYNOPSIS AS INTRODUCED:
235 ILCS 5/6-5	  from Ch. 43, par. 122
Amends the Liquor Control Act of 1934. Provides that nothing in the provisions prohibiting retailers from accepting certain things of value shall prohibit any manufacturer, importing distributor, or distributor from providing tap handles, kegs, or barrels to a retailer pursuant to a written deposit agreement in which the deposit is in an amount equal to or less than the actual amount of money required to be paid by the manufacturer, distributor, or importing distributor to the manufacturer or supplier of any tap handles, kegs, or barrels, and any customary and reasonable delivery or freight fees. Provides that it shall be unlawful for a retailer, but not for any other licensee, to fail to return tap handles, bottles, cases, kegs, or barrels provided to a retailer pursuant to a written deposit agreement with a manufacturer, importing distributor, or distributor upon demand of the manufacturer, importing distributor, or distributor. Makes a conforming change. Effective immediately.
LRB104 10203 RPS 20277 b
A BILL FOR
		HB2956		LRB104 10203 RPS 20277 b
1    AN ACT concerning liquor.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Liquor Control Act of 1934 is amended by
5changing Section 6-5 as follows:
6    (235 ILCS 5/6-5)  (from Ch. 43, par. 122)
7    Sec. 6-5. Except as otherwise provided in this Section, it
8is unlawful for any person having a retailer's license or any
9officer, associate, member, representative or agent of such
10licensee to accept, receive or borrow money, or anything else
11of value, or accept or receive credit (other than
12merchandising credit in the ordinary course of business for a
13period not to exceed 30 days) directly or indirectly from any
14manufacturer, importing distributor or distributor of
15alcoholic liquor, or from any person connected with or in any
16way representing, or from any member of the family of, such
17manufacturer, importing distributor, distributor or
18wholesaler, or from any stockholders in any corporation
19engaged in manufacturing, distributing or wholesaling of such
20liquor, or from any officer, manager, agent or representative
21of said manufacturer. Except as provided below, it is unlawful
22for any manufacturer or distributor or importing distributor
23to give or lend money or anything of value, or otherwise loan
		HB2956	- 2 -	LRB104 10203 RPS 20277 b
1or extend credit (except such merchandising credit) directly
2or indirectly to any retail licensee or to the manager,
3representative, agent, officer or director of such licensee. A
4manufacturer, distributor or importing distributor may furnish
5free advertising, posters, signs, brochures, hand-outs, or
6other promotional devices or materials to any unit of
7government owning or operating any auditorium, exhibition
8hall, recreation facility or other similar facility holding a
9retailer's license, provided that the primary purpose of such
10promotional devices or materials is to promote public events
11being held at such facility. A unit of government owning or
12operating such a facility holding a retailer's license may
13accept such promotional devices or materials designed
14primarily to promote public events held at the facility. No
15retail licensee delinquent beyond the 30 day period specified
16in this Section shall solicit, accept or receive credit,
17purchase or acquire alcoholic liquors, directly or indirectly
18from any other licensee, and no manufacturer, distributor or
19importing distributor shall knowingly grant or extend credit,
20sell, furnish or supply alcoholic liquors to any such
21delinquent retail licensee; provided that the purchase price
22of all beer sold to a retail licensee shall be paid by the
23retail licensee in cash on or before delivery of the beer, and
24unless the purchase price payable by a retail licensee for
25beer sold to him in returnable bottles shall expressly include
26a charge for the bottles and cases, the retail licensee shall,
		HB2956	- 3 -	LRB104 10203 RPS 20277 b
1on or before delivery of such beer, pay the seller in cash a
2deposit in an amount not less than the deposit required to be
3paid by the distributor to the brewer; but where the brewer
4sells direct to the retailer, the deposit shall be an amount no
5less than that required by the brewer from his own
6distributors; and provided further, that in no instance shall
7this deposit be less than 50 cents for each case of beer in
8pint or smaller bottles and 60 cents for each case of beer in
9quart or half-gallon bottles; and provided further, that the
10purchase price of all beer sold to an importing distributor or
11distributor shall be paid by such importing distributor or
12distributor in cash on or before the 15th day (Sundays and
13holidays excepted) after delivery of such beer to such
14purchaser; and unless the purchase price payable by such
15importing distributor or distributor for beer sold in
16returnable bottles and cases shall expressly include a charge
17for the bottles and cases, such importing distributor or
18distributor shall, on or before the 15th day (Sundays and
19holidays excepted) after delivery of such beer to such
20purchaser, pay the seller in cash a required amount as a
21deposit to assure the return of such bottles and cases. In 
22addition to the items that a manufacturer, importing 
23distributor, or distributor may give or sell to a retailer 
24pursuant to this Section and Section 6-6, nothing herein 
25contained shall prohibit any manufacturer, importing 
26distributor, or distributor from providing tap handles, kegs, 
		HB2956	- 4 -	LRB104 10203 RPS 20277 b
1or barrels to a retailer pursuant to a written deposit 
2agreement in which the deposit is in an amount equal to or less 
3than the actual amount of money required to be paid by the 
4manufacturer, distributor, or importing distributor to the 
5manufacturer or supplier of any tap handles, kegs, or barrels, 
6and any customary and reasonable delivery or freight fees. It 
7shall be unlawful for a retailer, but not for any other 
8licensee, to fail to return tap handles, bottles, cases, kegs, 
9or barrels provided to a retailer pursuant to a written 
10deposit agreement with a manufacturer, importing distributor, 
11or distributor upon demand of the manufacturer, importing 
12distributor, or distributor. Nothing herein contained shall
13prohibit any licensee from crediting or refunding to a
14purchaser the actual amount of money paid for tap handles,
15bottles, cases, kegs, or barrels returned by the purchaser to
16the seller or paid by the purchaser as a deposit on tap 
17handles, bottles, cases, kegs, or barrels, when such
18containers or packages are returned to the seller. Nothing
19herein contained shall prohibit any manufacturer, importing
20distributor or distributor from extending usual and customary
21credit for alcoholic liquor sold to customers or purchasers
22who live in or maintain places of business outside of this
23State when such alcoholic liquor is actually transported and
24delivered to such points outside of this State.
25    A manufacturer, distributor, or importing distributor may
26furnish free social media advertising to a retail licensee if
		HB2956	- 5 -	LRB104 10203 RPS 20277 b
1the social media advertisement does not contain the retail
2price of any alcoholic liquor and the social media
3advertisement complies with any applicable rules or
4regulations issued by the Alcohol and Tobacco Tax and Trade
5Bureau of the United States Department of the Treasury. A
6manufacturer, distributor, or importing distributor may list
7the names of one or more unaffiliated retailers in the
8advertisement of alcoholic liquor through social media.
9Nothing in this Section shall prohibit a retailer from
10communicating with a manufacturer, distributor, or importing
11distributor on social media or sharing media on the social
12media of a manufacturer, distributor, or importing
13distributor. A retailer may request free social media
14advertising from a manufacturer, distributor, or importing
15distributor. Nothing in this Section shall prohibit a
16manufacturer, distributor, or importing distributor from
17sharing, reposting, or otherwise forwarding a social media
18post by a retail licensee, so long as the sharing, reposting,
19or forwarding of the social media post does not contain the
20retail price of any alcoholic liquor. No manufacturer,
21distributor, or importing distributor shall pay or reimburse a
22retailer, directly or indirectly, for any social media
23advertising services, except as specifically permitted in this
24Act. No retailer shall accept any payment or reimbursement,
25directly or indirectly, for any social media advertising
26services offered by a manufacturer, distributor, or importing
		HB2956	- 6 -	LRB104 10203 RPS 20277 b
1distributor, except as specifically permitted in this Act. For
2the purposes of this Section, "social media" means a service,
3platform, or site where users communicate with one another and
4share media, such as pictures, videos, music, and blogs, with
5other users free of charge.
6    No right of action shall exist for the collection of any
7claim based upon credit extended to a distributor, importing
8distributor or retail licensee contrary to the provisions of
9this Section.
10    Every manufacturer, importing distributor and distributor
11shall submit or cause to be submitted, to the State
12Commission, not later than Thursday of each calendar week, a
13verified written list of the names and respective addresses of
14each retail licensee purchasing spirits or wine from such
15manufacturer, importing distributor or distributor who, on the
16first business day of that calendar week, was delinquent
17beyond the above mentioned permissible merchandising credit
18period of 30 days; or, if such is the fact, a verified written
19statement that no retail licensee purchasing spirits or wine
20was then delinquent beyond such permissible merchandising
21credit period of 30 days.
22    Every manufacturer, importing distributor and distributor
23shall submit or cause to be submitted, to the State
24Commission, a verified written list of the names and
25respective addresses of each previously reported delinquent
26retail licensee who has cured such delinquency by payment,
		HB2956	- 7 -	LRB104 10203 RPS 20277 b
1which list shall be submitted not later than the close of the
2second full business day following the day such delinquency
3was so cured.
4    The written list of delinquent retail licensees shall be
5developed, administered, and maintained only by the State
6Commission. The State Commission shall notify each retail
7licensee that it has been placed on the delinquency list.
8Determinations of delinquency or nondelinquency shall be made
9only by the State Commission.
10    Such written verified reports required to be submitted by
11this Section shall be posted by the State Commission in each of
12its offices in places available for public inspection not
13later than the day following receipt thereof by the State
14Commission. The reports so posted shall constitute notice to
15every manufacturer, importing distributor and distributor of
16the information contained therein. Actual notice to
17manufacturers, importing distributors and distributors of the
18information contained in any such posted reports, however
19received, shall also constitute notice of such information.
20    The 30-day merchandising credit period allowed by this
21Section shall commence with the day immediately following the
22date of invoice and shall include all successive days
23including Sundays and holidays to and including the 30th
24successive day.
25    In addition to other methods allowed by law, payment by
26check or credit card during the period for which merchandising
		HB2956	- 8 -	LRB104 10203 RPS 20277 b
1credit may be extended under the provisions of this Section
2shall be considered payment. All checks received in payment
3for alcoholic liquor shall be promptly deposited for
4collection. A post dated check or a check dishonored on
5presentation for payment shall not be deemed payment.
6    A credit card payment in dispute by a retailer shall not be
7deemed payment, and the debt uncured for merchandising credit
8shall be reported as delinquent. Nothing in this Section shall
9prevent a distributor, self-distributing manufacturer, or
10importing distributor from assessing a usual and customary
11transaction fee representative of the actual finance charges
12incurred for processing a credit card payment. This
13transaction fee shall be disclosed on the invoice. It shall be
14considered unlawful for a distributor, importing distributor,
15or self-distributing manufacturer to waive finance charges for
16retailers.
17    A retail licensee shall not be deemed to be delinquent in
18payment for any alleged sale to him of alcoholic liquor when
19there exists a bona fide dispute between such retailer and a
20manufacturer, importing distributor or distributor with
21respect to the amount of indebtedness existing because of such
22alleged sale. A retail licensee shall not be deemed to be
23delinquent under this provision and 11 Ill. Adm. Code 100.90
24until 30 days after the date on which the region in which the
25retail licensee is located enters Phase 4 of the Governor's
26Restore Illinois Plan as issued on May 5, 2020.
		HB2956	- 9 -	LRB104 10203 RPS 20277 b
1    A delinquent retail licensee who engages in the retail
2liquor business at 2 or more locations shall be deemed to be
3delinquent with respect to each such location.
4    The license of any person who violates any provision of
5this Section shall be subject to suspension or revocation in
6the manner provided by this Act.
7    If any part or provision of this Article or the
8application thereof to any person or circumstances shall be
9adjudged invalid by a court of competent jurisdiction, such
10judgment shall be confined by its operation to the controversy
11in which it was mentioned and shall not affect or invalidate
12the remainder of this Article or the application thereof to
13any other person or circumstance and to this and the
14provisions of this Article are declared severable.
15(Source: P.A. 102-8, eff. 6-2-21; 102-442, eff. 1-1-22;
16102-813, eff. 5-13-22; 103-363, eff. 7-28-23.)
17    Section 99. Effective date. This Act takes effect upon
18becoming law.