Illinois Administrative Code › Title 11 - ALCOHOL, HORSE RACING, LOTTERY, AND VIDEO GAMING › Part 100 - THE ILLINOIS LIQUOR CONTROL COMMISSION › Section 100.150 - Salvaged Alcoholic Liquors

Current through Register Vol. 48, No. 28, July 12, 2024
a) Insurance companies or their duly
			 authorized representatives may take possession of alcoholic beverages insured
			 by such companies and damaged as a result of flood, wreck, fire or similar
			 occurrence, for which insurance was provided.
b) Common carriers or their duly authorized
			 representatives may take possession of alcoholic beverages transported by such
			 carrier and damaged in transit.
c)
			 Alcoholic beverages salvaged may be sold to retail licensees provided the
			 conditions enumerated in this Section have been complied with. Alcoholic
			 beverages so salvaged shall be referred to as "distressed
			 merchandise".
d) Each container of
			 alcoholic beverages sold pursuant to this Section shall be labeled to identify
			 the goods as distressed merchandise. The letters on the label shall be no
			 smaller than 12 point type, bold faced. The label shall be no less than two
			 inches long and one inch wide, and shall be affixed diagonally over the regular
			 label on each container prior to delivery to any retail licensee. The label
			 once applied shall not be capable of removal without damaging the label or
			 causing damage to the underlying product label. The following statement shall
			 be printed on the label: "The alcoholic beverages contained herein have been
			 designated distressed merchandise by the Illinois Liquor Control Commission.
			 This container has been salvaged from a fire, flood, wreck or similar
			 catastrophe. This label is not affixed by the manufacturer. Do not remove this
			 label."
e) Any insurance company,
			 common carrier, or representative of either, seeking to sell distressed
			 merchandise shall first obtain a distributor's license from the Commission. The
			 application shall provide, "The applicant seeks to sell distressed merchandise
			 in Illinois." Retailer's licenses may also be applied for, if the insurance
			 company, common carrier, or representative of either, seeks to sell alcoholic
			 liquors to consumers in Illinois.
f) Alcoholic beverages so salvaged outside of
			 Illinois may not be imported into Illinois for purposes of sale pursuant to
			 this Section. Prior to release of distressed merchandise for sale in Illinois,
			 an affidavit by the insurance company's or common carrier's authorized
			 representative must be presented to the Commission stating first hand knowledge
			 that the distressed merchandise was salvaged from a fire, flood, wreck or
			 similar catastrophe which occurred within the State of Illinois, stating with
			 particularity the time, place and nature of the occurrence, and a complete
			 inventory of the items so salvaged, including the quantity, brand names and
			 container sizes.
g) In the event
			 the tax provided under Art. VIII of the Act [235 ILCS 5 /Art. VIII] is unpaid
			 on the distressed merchandise, the applicant shall make payment of the tax on
			 such merchandise to the Department of Revenue, and evidence of payment must be
			 presented to the Commission prior to release of such distressed merchandise for
			 sale in Illinois.
h) An entity
			 seeking to sell distressed merchandise shall also indicate on its letter of
			 application to sell such distressed merchandise in Illinois whether the sale
			 shall be by auction or to a designated licensee. If the sale shall be by
			 auction, the time and place of the auction and the name of the auctioneer or
			 other person authorized to sell such distressed merchandise shall be listed. If
			 the sale is to be made directly to a given licensee or licensees, the name and
			 address of the licensee or licensees, together with the current State retail
			 liquor license number of such licensee or licensees, shall be listed. No sale
			 may be made by auction to any person, firm or corporation not licensed under
			 the provisions of the Act.
i)
			 Written approval and release for sale made under this Section must first be
			 obtained from the Commission. Approval and release shall not be issued until a
			 physical inspection has been made of the merchandise by an authorized
			 representative of the Commission in order to determine that the seller has
			 complied with this Section. After any sale of distressed merchandise has been
			 completed, the insurance company, common carrier, or their representative,
			 shall report in writing to the Commission the name of the licensee or licensees
			 who purchased the distressed merchandise and the quantities and brand names of
			 such distressed merchandise.
j) In
			 the event that the seller disposed of less than the entire inventory of
			 distressed merchandise, the written report shall list the remaining inventory,
			 indicating the quantity, container sizes and brand names, the place where such
			 inventory is stored, and the person in control or possession of such
			 inventory.
k) No distressed
			 merchandise shall be sold in Illinois where the original packages have been so
			 damaged as to render the label illegible, or when the substantive labeling
			 requirements under Section 6-7 of the Act [235 ILCS
			 5/6-7 ] and under Section
			 100.70 are not complied
			 with as a result of the damage to the container.