103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB0070

 

Introduced 1/20/2023, by Sen. Cristina Castro

 

SYNOPSIS AS INTRODUCED:
 
235 ILCS 5/6-40 new

    Amends the Liquor Control Act of 1934. Provides that the act by a manufacturer of directly or indirectly offering or providing coupons to consumers that are redeemable at or through a retailer or third-party agent does not constitute a violation under the Act if certain conditions are met. Provides that a coupon may require the purchase of one alcoholic liquor product to obtain a full or partial discount on a separate alcoholic liquor product; may be offered as part of a retailer loyalty program or awards program; may include nonalcoholic products; and may be offered by a manufacturer to a consumer for a discount on a purchase from a licensed on-premise or off-premise retailer. Provides that on and after January 1, 2024, manufacturers shall not offer paper coupons that require a consumer to present the paper coupon to the retailer at the time of purchase to obtain the discount. Contains provisions concerning definitions; consumer promotions; notice of consumer promotions to the Illinois Liquor Control Commission; recordkeeping; State Commission enforcement of policies, rules, or statements of general applicability; and other provisions. Effective immediately.


LRB103 05146 RPS 50161 b

 

 

A BILL FOR

 

SB0070LRB103 05146 RPS 50161 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
5adding Section 6-40 as follows:
 
6    (235 ILCS 5/6-40 new)
7    Sec. 6-40. Consumer promotions and coupons.
8    (a) In this Section:
9    "Consumer promotion" means any advertisement placed in any
10format, including, but not limited to, paper, digital,
11electronic, online mobile application, or similar format, that
12advertises an alcoholic liquor discount, program, contest
13prize, premium offer, refund, or similar items but cannot
14itself be used to participate in the program or receive
15redemptions, prizes, or similar items.
16    "Coupon" means any method, including, but not limited to,
17paper, digital, electronic, online mobile application, or
18similar format, by which a consumer receives a discount from
19the purchase price of an item if an alcoholic beverage
20purchase is required in connection with such purchase that is
21funded, produced, sponsored, promoted, or furnished, either
22directly or indirectly, by a manufacturer or third-party agent
23and redeemed directly or indirectly by a manufacturer,

 

 

SB0070- 2 -LRB103 05146 RPS 50161 b

1third-party agent, or retailer. "Coupon" does not include
2consumer promotions.
3    (b) The act by a manufacturer of directly or indirectly
4offering or providing coupons to consumers that are redeemable
5at or through a retailer or third-party agent does not
6constitute a violation under this Act if the following
7conditions are met:
8        (1) The manufacturer does not reimburse a retailer for
9    more than the face value of a coupon.
10        (2) The manufacturer does not offer coupons that make
11    any alcoholic liquor free of charge.
12        (3) The retailer prohibits the use of a coupon by any
13    consumer below the age of 21.
14        (4) Coupons provided by the manufacturer do not
15    identify the name or brand of the retailer.
16        (5) The manufacturer does not offer a coupon that is
17    redeemable for retailer branded or retailer private label
18    products.
19        (6) Coupons offered by the manufacturer contain an
20    expiration date and a retailer does not accept a coupon
21    from a consumer beyond the expiration date.
22        (7) The manufacturer does not require a retailer to
23    accept coupons.
24        (8) The retailer does not require a manufacturer to
25    provide coupons.
26        (9) The retailer provides the full amount of the

 

 

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1    discount to the consumer.
2        (10) The manufacturer offering, promoting, furnishing,
3    or providing coupons makes such coupons redeemable at all
4    retailers that elect and are able to participate.
5        (11) A distributor is not required to disseminate any
6    coupons on the behalf of the manufacturer to any retailer.
7        (12) Printed coupons are not offered or provided
8    anywhere on the retailer's premises.
9        (13) The manufacturer does not reimburse a retailer
10    unless the consumer meets the terms and conditions of the
11    consumer promotion.
12        (14) Alcoholic liquor discounts are only applied as
13    part of a consumer promotion. No manufacturer shall offer
14    a coupon or provide reimbursement for alcoholic liquors
15    that are not subject to a manufacturer consumer promotion.
16        (15) The coupon does not provide a full or partial
17    discount for the purchase of an alcoholic liquor product
18    that would apply to a separate alcoholic liquor product
19    that is not manufactured or owned by the same alcohol
20    manufacturer.
21    (c) A coupon may require the purchase of one alcoholic
22liquor product to obtain a full or partial discount on a
23separate alcoholic product.
24    (d) A coupon may be offered as part of a retailer loyalty
25program or awards program.
26    (e) A coupon for alcoholic liquor may include nonalcoholic

 

 

SB0070- 4 -LRB103 05146 RPS 50161 b

1products as long as the discount applies to a nonalcoholic
2product that is not a retailer branded or private label
3product.
4    (f) A coupon may be offered by a manufacturer to a consumer
5for a discount on a purchase from a licensed on-premise or
6off-premise retailer.
7    (g) Consumer promotions are allowed on on-premise and
8off-premise retail premises.
9    (h) A coupon or consumer promotion may be promoted,
10provided, furnished, or fulfilled through a third-party agent
11acting on behalf of the manufacturer offering the coupon or
12consumer promotion. Any act or omission of a third-party agent
13related to a coupon or consumer promotion is the act or
14omission of the manufacturer.
15    (i) Any licensee that funds, offers, or redeems coupons
16shall maintain complete, accurate, and itemized records of
17reimbursements. All records of reimbursement, including any
18supporting documentation, including, but not limited to,
19consumer promotions, purchase invoices, sales receipts, or
20similar documentation, shall be maintained by the licensee for
21a period of no less than 3 years after the reimbursement. A
22licensee shall make records of reimbursements and supporting
23documentation available upon reasonable notice for the purpose
24of investigation by the State Commission. The records may be
25kept in an electronic or digital format.
26    (j) A discount funded solely by the manufacturer or

 

 

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1retailer and provided directly or indirectly to a consumer
2through a third-party agent and redeemed by a manufacturer,
3retailer, or third-party agent is not a coupon under this
4Section and not a violation under Section 6-5 or 6-6 of this
5Act.
6    (k) On and after January 1, 2024, manufacturers shall not
7offer paper coupons that require a consumer to present the
8paper coupon to the retailer at the time of purchase to obtain
9the discount.
10    (l) Any consumer promotion that is offered in the State
11shall be posted on the State Commission's website 30 days
12before the start of the promotion. The consumer promotion
13information shall be submitted to the State Commission on a
14form provided by the State Commission that includes the
15following information:
16        (1) the manufacturer offering the consumer promotion;
17        (2) the consumer promotion details, including the
18    exact product or products for the consumer promotion, size
19    or sizes of the product for the consumer promotion, and,
20    if applicable, the rebate amount for the consumer
21    promotion; and
22        (3) the beginning and end date of the consumer
23    promotion.
24    The State Commission shall post the consumer promotion
25information no later than 48 hours after receiving the
26consumer promotion information.

 

 

SB0070- 6 -LRB103 05146 RPS 50161 b

1    (m) Subject to the conditions set forth in subsection (b),
2nothing in this Section shall be construed to limit or
3prohibit a consumer promotion, coupon program, or similar
4discount.
5    (n) The State Commission shall not enforce any policy,
6rule, or statement of general applicability that implements
7applies, or interprets this Section that was not adopted in
8accordance with the Illinois Administrative Procedure Act. Any
9policy, rule, or statement of general applicability that
10implements, applies, or interprets this Section that was not
11adopted in accordance with the Illinois Administrative
12Procedure Act is invalid, is not effective against any person
13or entity, and may not be invoked or enforced by the State
14Commission, person, or any other entity for any purpose.
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.