Bill Text: IL SB0070 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: 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.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2023-03-10 - Rule 3-9(a) / Re-referred to Assignments [SB0070 Detail]

Download: Illinois-2023-SB0070-Introduced.html

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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
SB0070 LRB103 05146 RPS 50161 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 Section 6-40 as follows:
(235 ILCS 5/6-40 new)
Sec. 6-40. Consumer promotions and coupons.
(a) In this Section:
"Consumer promotion" means any advertisement placed in any
format, including, but not limited to, paper, digital,
electronic, online mobile application, or similar format, that
advertises an alcoholic liquor discount, program, contest
prize, premium offer, refund, or similar items but cannot
itself be used to participate in the program or receive
redemptions, prizes, or similar items.
"Coupon" means any method, including, but not limited to,
paper, digital, electronic, online mobile application, or
similar format, by which a consumer receives a discount from
the purchase price of an item if an alcoholic beverage
purchase is required in connection with such purchase that is
funded, produced, sponsored, promoted, or furnished, either
directly or indirectly, by a manufacturer or third-party agent
and redeemed directly or indirectly by a manufacturer,

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third-party agent, or retailer. "Coupon" does not include
consumer promotions.
(b) 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 this Act if the following
conditions are met:
(1) The manufacturer does not reimburse a retailer for
more than the face value of a coupon.
(2) The manufacturer does not offer coupons that make
any alcoholic liquor free of charge.
(3) The retailer prohibits the use of a coupon by any
consumer below the age of 21.
(4) Coupons provided by the manufacturer do not
identify the name or brand of the retailer.
(5) The manufacturer does not offer a coupon that is
redeemable for retailer branded or retailer private label
products.
(6) Coupons offered by the manufacturer contain an
expiration date and a retailer does not accept a coupon
from a consumer beyond the expiration date.
(7) The manufacturer does not require a retailer to
accept coupons.
(8) The retailer does not require a manufacturer to
provide coupons.
(9) The retailer provides the full amount of the

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

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

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retailer and provided directly or indirectly to a consumer
through a third-party agent and redeemed by a manufacturer,
retailer, or third-party agent is not a coupon under this
Section and not a violation under Section 6-5 or 6-6 of this
Act.
(k) 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.
(l) Any consumer promotion that is offered in the State
shall be posted on the State Commission's website 30 days
before the start of the promotion. The consumer promotion
information shall be submitted to the State Commission on a
form provided by the State Commission that includes the
following information:
(1) the manufacturer offering the consumer promotion;
(2) the consumer promotion details, including the
exact product or products for the consumer promotion, size
or sizes of the product for the consumer promotion, and,
if applicable, the rebate amount for the consumer
promotion; and
(3) the beginning and end date of the consumer
promotion.
The State Commission shall post the consumer promotion
information no later than 48 hours after receiving the
consumer promotion information.

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