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HB 2956

LIQUOR-RETAILERS-TAP HANDLES

104th Regular Session Introduced by Michael Kelly

Allows manufacturers and distributors to provide tap handles, kegs, or barrels to retailers under written deposit agreements and requires retailers to return them on demand.

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Bill Summary · HB 2956

Summary — HB 2956 (Liquor Control Act amendment: tap handles, kegs, barrels)

Status: Introduced February 6, 2025. Amends 235 ILCS 5/6‑5 (Liquor Control Act of 1934). Effective immediately upon enactment. Sponsor: Rep. Michael J. Kelly.

Purpose / intent

To create a specific, narrow exception to the general prohibition on manufacturers/distributors providing things of value to retailers by permitting manufacturers, importing distributors, or distributors to provide tap handles, kegs or barrels to retailers under written deposit agreements, and to make it unlawful for a retailer (only) to refuse to return those items on demand.

Key provisions

  • Adds an express exception allowing a manufacturer, importing distributor, or distributor to provide tap handles, kegs, or barrels to a retailer pursuant to a written deposit agreement.
  • Limits the allowed deposit to an amount equal to or less than:
    • the actual amount of money paid by the manufacturer/distributor/importing distributor to the manufacturer or supplier for the tap handles, kegs, or barrels, and
    • any customary and reasonable delivery or freight fees.
  • Provides that a retailer (but not other licensees) commits an unlawful act if the retailer fails to return tap handles, bottles, cases, kegs, or barrels provided under such a written deposit agreement upon demand by the manufacturer, importing distributor, or distributor.
  • Makes a conforming statutory change to the Liquor Control Act.
  • Specifies immediate effectiveness.

(There are excerpts in the bill text referencing other advertising and deposit provisions, but the bill’s synopsis and central amendment focus on the tap-handle/keg/barrel deposit exception and return obligation.)

Who is affected

  • Retail licensees (bars, restaurants, taverns, clubs, other retailers) — they may receive equipment under deposit agreements and have an affirmative legal duty to return items on demand.
  • Manufacturers, importing distributors, distributors — gain an explicit mechanism to place tap handles, kegs, barrels with retailers under written deposit arrangements and to require return.
  • Enforcement entities overseeing compliance with the Liquor Control Act.

Practical impact and implications

  • Clarifies and legalizes common industry practice of supplying branded tap handles and leased kegs under deposit arrangements, provided the deposit does not exceed actual supplier cost plus delivery fees.
  • Protects suppliers’ property interests by creating an explicit obligation on retailers to return property on demand and a statutory basis to pursue enforcement for non‑return.
  • Requires written deposit agreements and may prompt standard contract terms among parties (documentation, billing/crediting, return procedures).
  • Does not broadly alter other prohibitions in the Act; it is a targeted exception.

Notes

  • The bill amends a longstanding provision of the Liquor Control Act (235 ILCS 5/6‑5). Specific penalties or enforcement mechanisms for a retailer’s unlawful failure to return are governed by the existing enforcement provisions of the Act; HB 2956 itself does not create new penalty types beyond making the failure unlawful.

Compiled from official sources — confirm details with the bill’s official record.

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