Legislative Update: SB 398 – Happy Hour

On July 15th Governor Rauner signed Senate Bill 398 into law – bringing back “Happy Hour” in Illinois for the first time since 1989. Representative Ron Sandack, 81st District provided Choose DuPage with the following summary to help explain some of the nuances of the bill. The following is a memorandum from Bob Myers, President and Stephanie Vojas, Vice President of Government Relations for the Associated Beer Distributors of Illinois, sent to all ABDI Distributor Members on June 3rd regarding Happy Hour Legislation.

Permitting “Happy Hour” in Illinois which was prohibited in 1989

  • Allows retailers to reduce the price of their drinks for 15 hours per week, not to exceed 4 hours per day, provided the discount is done prior to 10:00pm. The reduction of price must be posted on the premises or the retailer’s website at least 7 days prior to the specified time.
  • Retailers may offer “meal packages” which include alcoholic liquor.
  • Retailers may offer party packages provided the retailer offers food, limits the party to no more than 3 hours, and distributes wristbands or some other wearable to identify the participant.
  • Retailers may now sell buckets of beer or its equivalent to 1 person (formerly 2 or more).

Still prohibited practices:

  • Retailers may not offer 2 drinks for the price of 1 drink.
  • Retailers may not encourage games or contests that involve alcoholic drinking (beer pong, etc.).
  • Retailers may not increase the volume of a drink without increasing the price proportionately.

Other Issues Included in the Bill

Trade Practice Policies must be approved by JCAR

Prohibits the Commission from enforcing Trade Practice Policies that are not adopted with the Illinois Administrative Procedures Act. This would require the Commission to go before the Joint Committee on Administrative Rules (JCAR) to enact enforcement policies. JCAR members (legislators) have been, and continue to be, very supportive of ABDI.

Hotel Licenses with multiple retail licenses within the premises

Hotels with more than one local retail license would now only be required to receive one State license for each hotel location regardless of the number of bars located within the hotel premises. Previously, these hotels were required to receive a State license for each bar, meeting room, room service area, banquet hall, mini-bar area, etc.

State Prohibition for Sunday Sales Removed

The State prohibition for selling alcoholic liquor on Sundays is removed. Local ordinances may continue to prohibit or restrict Sunday sales.

Spirit Infusions

Retailers may sell infused spirits. Infused spirits are spirits where ingredients, including but not limited to, fruits, spices, nuts, are added to naturally infuse flavor into the sprits. The infusion must not be aged for more than 14 days. It must be destroyed within 21 days after the aging process. A label is required indicating the production date, the base spirit of the infusion, the date the infusion will finish aging, and the date which the infusion must be destroyed.

Retailer Basset Training

This was agreed language by the Illinois Restaurant Association and the Illinois Licensed Beverage Association. ABDI did not take a position on this portion of the bill because it does not affect beer distributor employees or volunteers for festivals and picnics.

Counties with 200,000 or more (Other than Cook County, which has the requirement by 7/1/15)

All alcohol servers are required to obtain and complete training in basic responsible alcohol service by July 1, 2016 or within 120 days after the alcohol server begins his or her employment, whichever is later.

Counties will 30,000 and less than 200,000 inhabitants

All alcohol servers are required to obtain and complete training in basic responsible alcohol service by July 1, 2017 or within 120 days after the alcohol server begins his or her employment, whichever is later.

Counties with a population of 30,000 inhabitants or less

All alcohol servers are required to obtain and complete training in basic responsible alcohol service by July 1, 2018 or within 120 days after the alcohol server begins his or her employment, whichever is later. The bill has an immediate effective date which means it will become law the moment it is approved (signed) by Governor Rauner. We expect the Governor to sign the legislation. Click here to download the Culinary and Hospitality Modernization Act of 2015 Click here to download the original memorandum from the Associated Beer Distributors of Illinois