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90_HB0903
235 ILCS 5/6-6 from Ch. 43, par. 123
Amends the Liquor Control Act of 1934. Provides that a
manufacturer and a distributor or importing distributor may
enter into a written agreement for the manufacturer to sell
to the distributor or importing distributor certain signs or
inside advertising materials. Effective immediately.
LRB9000875LDdv
LRB9000875LDdv
1 AN ACT to amend the Liquor Control Act of 1934 by
2 changing Section 6-6.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Liquor Control Act of 1934 is amended by
6 changing Section 6-6 as follows:
7 (235 ILCS 5/6-6) (from Ch. 43, par. 123)
8 Sec. 6-6. Except as otherwise provided in this Act no
9 manufacturer or distributor or importing distributor shall,
10 directly, or indirectly, sell, supply, furnish, give or pay
11 for, or loan or lease, any furnishing, fixture or equipment
12 on the premises of a place of business of another licensee
13 authorized under this Act to sell alcoholic liquor at retail,
14 either for consumption on or off the premises, nor shall he,
15 directly or indirectly, pay for any such license, or advance,
16 furnish, lend or give money for payment of such license, or
17 purchase or become the owner of any note, mortgage, or other
18 evidence of indebtedness of such licensee or any form of
19 security therefor, nor shall such manufacturer, or
20 distributor, or importing distributor, directly or
21 indirectly, be interested in the ownership, conduct or
22 operation of the business of any licensee authorized to sell
23 alcoholic liquor at retail, nor shall any manufacturer, or
24 distributor, or importing distributor be interested directly
25 or indirectly or as owner or part owner of said premises or
26 as lessee or lessor thereof, in any premises upon which
27 alcoholic liquor is sold at retail.
28 No manufacturer or distributor or importing distributor
29 shall, directly or indirectly or through a subsidiary or
30 affiliate, or by any officer, director or firm of such
31 manufacturer, distributor or importing distributor, furnish,
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1 give, lend or rent, install, repair or maintain, to or for
2 any retail licensee in this State, any signs or inside
3 advertising materials except as provided in this Section and
4 Section 6-5. With respect to retail licensees, other than any
5 government owned or operated auditorium, exhibition hall,
6 recreation facility or other similar facility holding a
7 retailer's license as described in Section 6-5, a
8 manufacturer, distributor, or importing distributor may
9 furnish, give, lend or rent and erect, install, repair and
10 maintain to or for any retail licensee, for use at any one
11 time in or about or in connection with a retail establishment
12 on which the products of the manufacturer, distributor or
13 importing distributor are sold, the following signs and
14 inside advertising materials as authorized in subparts (i),
15 (ii), (iii), and (iv):
16 (i) Permanent outside signs shall be limited to one
17 outside sign, per brand, in place and in use at any one
18 time, costing not more than $893, exclusive of erection,
19 installation, repair and maintenance costs, and permit
20 fees and shall bear only the manufacturer's name, brand
21 name, trade name, slogans, markings, trademark, or other
22 symbols commonly associated with and generally used in
23 identifying the product.
24 (ii) Temporary outside signs shall be limited to
25 one temporary outside sign per brand. Examples of
26 temporary outside signs are banners, flags, pennants,
27 streamers, and other items of a temporary and
28 non-permanent nature. Each temporary outside sign must
29 include the manufacturer's name, brand name, trade name,
30 slogans, markings, trademark, or other symbol commonly
31 associated with and generally used in identifying the
32 product. Temporary outside signs may also include, for
33 example, the product, price, packaging, date or dates of
34 a promotion and an announcement of a retail licensee's
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1 specific sponsored event, if the temporary outside sign
2 is intended to promote a product, and provided that the
3 announcement of the retail licensee's event and the
4 product promotion are held simultaneously. However,
5 temporary outside signs may not include names, slogans,
6 markings, or logos that relate to the retailer. Nothing
7 in this subpart (ii) shall prohibit a distributor or
8 importing distributor from bearing the cost of creating
9 or printing a temporary outside sign for the retail
10 licensee's specific sponsored event or from bearing the
11 cost of creating or printing a temporary sign for a
12 retail licensee containing, for example, community
13 goodwill expressions, regional sporting event
14 announcements, or seasonal messages, provided that the
15 primary purpose of the temporary outside sign is to
16 highlight, promote, or advertise the product. In
17 addition, temporary outside signs provided by the
18 manufacturer to the distributor or importing distributor
19 may also include, for example, subject to the limitations
20 of this Section, preprinted community goodwill
21 expressions, sporting event announcements, seasonal
22 messages, and manufacturer promotional announcements.
23 However, a distributor or importing distributor shall not
24 bear the cost of such manufacturer preprinted signs.
25 (iii) Permanent inside signs, whether visible from
26 the outside or the inside of the premises, include, for
27 example, neons, illuminated signs, clocks, table lamps,
28 mirrors, tap handles, decalcomanias, window painting,
29 window trim, and spirits or wine lists and menus. All
30 permanent inside signs in place and in use at any one
31 time shall cost in the aggregate not more than $2000 per
32 manufacturer. A permanent inside sign must include the
33 manufacturer's name, brand name, trade name, slogans,
34 markings, trademark, or other symbol commonly associated
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1 with and generally used in identifying the product.
2 However, permanent inside signs may not include names,
3 slogans, markings, or logos that relate to the retailer.
4 For the purpose of this subpart (iii), all permanent
5 inside signs may be displayed in an adjacent courtyard or
6 patio commonly referred to as a "beer garden" that is a
7 part of the retailer's licensed premises.
8 (iv) Temporary inside signs shall include, for
9 example, lighted chalk boards, acrylic table tent
10 beverage or hors d'oeuvre list holders, banners, flags,
11 pennants, streamers, and inside advertising materials
12 such as posters, placards, bowling sheets, table tents,
13 inserts for acrylic table tent beverage or hors d'oeuvre
14 list holders, sports schedules, or similar printed or
15 illustrated materials; however, such items, for example,
16 as coasters, trays, napkins, and cups may not be provided
17 to retailers. All temporary inside signs and inside
18 advertising materials in place and in use at any one time
19 shall cost in the aggregate not more than $325 per
20 manufacturer. Nothing in this subpart (iv) prohibits a
21 distributor or importing distributor from paying the cost
22 of printing or creating any temporary inside banner or
23 inserts for acrylic table tent beverage or hors d'oeuvre
24 list holders for a retail licensee, provided that the
25 primary purpose for the banner or insert is to highlight,
26 promote, or advertise the product. For the purpose of
27 this subpart (iv), all temporary inside signs and inside
28 advertising materials may be displayed in an adjacent
29 courtyard or patio commonly referred to as a "beer
30 garden" that is a part of the retailer's licensed
31 premises.
32 A "cost adjustment factor" shall be used to periodically
33 update the dollar limitations prescribed in subparts (i),
34 (iii), and (iv). The Commission shall establish the adjusted
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1 dollar limitation on an annual basis beginning in January,
2 1997. The term "cost adjustment factor" means a percentage
3 equal to the change in the Bureau of Labor Statistics
4 Consumer Price Index or 5%, whichever is greater. The
5 restrictions contained in this Section 6-6 do not apply to
6 signs, or promotional or advertising materials furnished by
7 manufacturers, distributors or importing distributors to a
8 government owned or operated facility holding a retailer's
9 license as described in Section 6-5.
10 No distributor or importing distributor shall directly or
11 indirectly or through a subsidiary or affiliate, or by any
12 officer, director or firm of such manufacturer, distributor
13 or importing distributor, furnish, give, lend or rent,
14 install, repair or maintain, to or for any retail licensee in
15 this State, any signs or inside advertising materials
16 described in subparts (i), (ii), (iii), or (iv) of this
17 Section except as the agent for or on behalf of a
18 manufacturer, provided that the total cost of any signs and
19 inside advertising materials including but not limited to
20 labor, erection, installation and permit fees shall be paid
21 by the manufacturer whose product or products said signs, and
22 inside advertising materials advertise and except as follows:
23 (1) A manufacturer and a distributor or importing
24 distributor may, at their option, enter into a written
25 arrangement whereby the manufacturer agrees to sell to the
26 distributor or importing distributor and the distributor or
27 importing distributor agrees to purchase at its own expense
28 from the manufacturer or the manufacturer's designated
29 supplier permitted signs or inside advertising materials
30 described in subparts (i), (ii), (iii), or (iv) of this
31 Section for the purpose of furnishing, giving, lending,
32 renting, installing, repairing, or maintaining such signs or
33 materials to or for any retail licensee in this State. The
34 distributor or importing distributor shall at all times
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1 remain free to select which signs or inside advertising
2 materials it wishes to purchase.
3 (2) Any arrangement described in item (1) shall be
4 terminable for any reason by either party upon 30 days
5 written notice to the other. Nothing contained in item (1)
6 shall relieve the distributor or importing distributor of any
7 financial obligation for any signs or inside advertising
8 materials ordered by the distributor or importing distributor
9 prior to the effective date of the termination. The
10 termination of any arrangement described in item (1) shall
11 not constitute a violation of the Beer Industry Fair Dealing
12 Act, nor shall a party's unwillingness to enter into or
13 continue with an arrangement pursuant to item (1) constitute
14 good cause for termination of the distributor or importing
15 distributor under the Beer Industry Fair Dealing Act herein
16 provided.
17 No person engaged in the business of manufacturing,
18 importing or distributing alcoholic liquors shall, directly
19 or indirectly, pay for, or advance, furnish, or lend money
20 for the payment of any license for another. Any licensee who
21 shall permit or assent, or be a party in any way to any
22 violation or infringement of the provisions of this Section
23 shall be deemed guilty of a violation of this Act, and any
24 money loaned contrary to a provision of this Act shall not be
25 recovered back, or any note, mortgage or other evidence of
26 indebtedness, or security, or any lease or contract obtained
27 or made contrary to this Act shall be unenforceable and void.
28 This Section shall not apply to airplane licensees
29 exercising powers provided in paragraph (i) of Section 5-1 of
30 this Act.
31 (Source: P.A. 89-238, eff. 8-4-95; 89-529, eff. 7-19-96.)
32 Section 99. Effective date. This Act takes effect upon
33 becoming law.