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G-1098 - 01/24/2017 - ALCOHOL - Ordinances Supporting Documents ITEM 9.A.3) BOARD OF TRUSTEES MEETING VILLAGE OF SAMUEL E. DEAN BOARD ROOM OAK B R , K BUTLER GOVERNMENT CENTER 1200 OAK BROOK ROAD OAK BROOK, ILLINOIS 630-368-5000 AGENDA ITEM Regular Board of Trustees Meeting of January 24, 2017 SUBJECT: Amend the Liquor Code to Allow for Happy Hour FROM: James R. Kruger Jr., Chief of Police BUDGET SOURCE/BUDGET IMPACT: None RECOMMENDED MOTION: I move that the Village Board approve Ordinance 2017- LC-AL-G-1098 amending Title 4, Chapter 1, Section B. Limitations on the Sale and Promotion of Alcoholic Liquor on Licensed Premises to allow for Happy Hour provisions as amended in Public Act 99-0046 by the Illinois General Assembly. Back2round/Historv: The Illinois General Assembly amended the Illinois Liquor Control Act by added a new section, 235 ILCS5/6-28.5 to permit happy hours and meal packages, party packages and entertainment packages. The new law went into effect July 15, 2015. Subsequent to that state law change, the Village Code had not been amended to allow for that change. Several licensed liquor establishments in Oak Brook made the request for our ordinances to be changed to allow for the same provisions now available to them by state law. The establishments believed they were at a competitive disadvantage from other establishments in other communities. The Police Department has reviewed the changes in state law and believes there have been enough safeguards placed in the law by the General Assembly as to not be a burden on the Village or the Police Department. Some of these provisions include a seven day notice given by the license holder on their web site or business location, drink limits are required unless part of a meal or party package and cannot be unlimited, discounts cannot be from 10:00 PM to close, and the promotion cannot be longer than four hours in any one given day or fifteen hours in a week. �G BOT AGENDA Page I Recommendation Staff recommends passing Ordinance G-1098 to amend the Village of Oak Brook Liquor Code to make it consistent with current state law. The Police Department will be the responsible department to assist the Village Clerk with any violations of the provisions of this ordinance. BOT AGENDA Page 2 ORDINANCE 2017-LC-AL-G-1098 AN ORDINANCE PERMITTING HAPPY HOUR WITHIN THE VILLAGE OF OAK BROOK WHEREAS, Public Act 99-46 authorized "happy hour," a period of time during which bars and restaurants could sell alcoholic beverages for a reduced price; and WHEREAS, the Illinois General Assembly, in passing Public Act 99-46, determined that there is no evidence that "happy hour" promotes binge drinking or increases the likelihood of patrons becoming excessively intoxicated; and WHEREAS, the Municipal Code of the Village of Oak Brook ("Village") forbids"happy hour;" and WHEREAS, the Village Board of Trustees ("Board") has determined that many residents of the Village want bars and restaurants to provide"happy hour;" and WHEREAS, based on the aforementioned considerations, the Board has determined that it would be in the best interests of the public to amend the Village Code to make it consistent with Public Act 99- 46; NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF OAK BROOK, DUPAGE AND COOK COUNTIES, ILLINOIS, as follows: SECTION 1: Recitals. The foregoing recitals are hereby incorporated into, and made a part of, this Ordinance as though findings of the President and Board of Trustees of the Village of Oak Brook. SECTION 2: Amendment. The following changes are made to Section 4-1-24(B) of the Village of Oak Brook Code of Ordinances (new language underlined and deletions noted with s#Fikethfeug-h-text): B. Limitations On The Sale And Promotion Of Alcoholic Liquor On Licensed Premises: 1. It shall be unlawful for any licensee, or any employee or agent of any licensee, on licensed premises where alcoholic liquor is sold or offered for sale for consumption thereon, to engage in any of the following practices: a. Delivery of two(2)or more drinks to one person at one time. b. Sell, offer for sale, or delivery to any person an unlimited number of drinks during any set period of time for a fixed price, except at private functions not open to the public. G. Sale, 9#eF f9F sale, 9F deloveF dFinks to aRy person 9F gFeup of peFseRS 9R aRy GAe day-at pF Ges less than these nherned the general pUblin en that t' day, a ne t at pFivate d c.lncrease the volume of alcoholic liquor contained in a drink without a proportionate increase in the price charged for such drink as compared to prices during the same calendar week. Ordinance 2017-LC-AL-G-1098 An Ordinance Permitting Happy Hour within the Village of Oak Brook Page 2 of 3 d.Encouraging or permitting on the licensed premises any game or contest which involves drinking or the awarding of drinks as prizes. 2. No licensee shall advertise or promote in any way, whether within or outside the licensed premises, any of the practices prohibited under this section. 3. Nothing contained in this section shall prohibit a licensee from engaging in any of the following practices: a. Offering free food or entertainment at any time; b. Offering a drink as part of a meal or hotel services package; c. Offering free wine tastings; d. Offering room service to registered guests in hotels licensed for such service; e. Selling pitchers or the equivalent, including, but not limited to, buckets, carafes or bottles of alcoholic liquor which are customarily sold in such manner and delivered to two (2) or more persons at one time. f. Discounting any drink of alcoholic liquor during a specified time only if: (1) the price of the drink of alcoholic liquor is not changed during the time that it is discounted; (2) the period of time during which any drink of alcoholic liquor is discounted does not exceed 4 hours per day and 15 hours per week; however, this period of time is not required to be consecutive and may be divided by the licensee in any manner: (3) the drink of alcoholic liquor is not discounted between the hours of 10:00 p.m. and the licensed premises' closing hour: and (4) _notice of the discount of the drink of alcoholic liquor during a specified time is posted on the licensed premises or on the licensee's publicly available website at least 7 days prior to the specified time. SECTION 3: Repealer. All ordinances or parts of ordinances in conflict with this ordinance are hereby repealed insofar as they are in conflict with this ordinance. SECTION 4: Severability. If any provision of this ordinance or its application to any person or under any circumstances is adjudged invalid, such adjudication shall not affect the validity of the ordinance as a whole or of any portion not adjudicated invalid. SECTION 5: Effective date. This ordinance shall be in full force and effect from and after its passage, approval and publication as required by law. Ordinance 2017-LC-AL-G-1098 An Ordinance Permitting Happy Hour within the Village of Oak Brook Page 3 of 3 APPROVED THIS 24th day of January, 2017. Gopal G. Lalmalani Village President PASSED THIS 24th day of January, 2017. Ayes: Nays: Absent: ATTEST: Charlotte K. Pruss Village Clerk 4828-9261-4976,v. 1 FAQs on "happy hour" changes Below are some frequently asked questions regarding Illinois Public Act 99-0046 which went into effect on July 15,2015: Liquor Control Q. Will 1 be able to offer"happy hour"specials by temporarily Commission reducing the price of drinks at my establishment'? A: Yes.This legislation permits licensees to offer discounted drinks for up to 4 hours per day,and not more than 15 hours per week.The specified drink promotional period does not have to be for 4 consecutive hours. Q: What are the additional rules and restrictions on price reductions? A: Licensees must adhere to the following stipulations on price reductions on drinks: • Licensee must give notice of the discount of alcohol drinks on the licensee's premises or on their website 7 days prior to the specified drink promotion period. • Licensee shall not offer a specified drink promotion period between the hours of 10:00 p.m.and the licensed premise's closing hour. • Licensee shall not change the price of an alcoholic drink during a single drink promotion period. Q: When can I start reducing prices as part of happy hour? A: No earlier than 7 days after the license holder has given notice of the discount of alcohol drinks at its licensed location or on its website. Q: Can 1 provide unlimited drinks for a single price? A: No. Drink limits are required unless the drinks are part of a meal/party package or private function. Q: Am I allowed to sell "meal packages" with food and alcohol? What does that entail? A: Yes. "Meal package"means a food&beverage package,which may or may not include entertainment,where the service of alcoholic liquor is an accompaniment to the food,including,but not limited to: a meal,tour, tasting,or any combination thereof for a fixed price by a retail licensee or any other licensee operating within a sports facility,restaurant,winery,brewery,or distillery. Q: Is there a limit on the number of drinks which may be served with a meal package? A: No.There is no limit to the number of drinks included with a meal package. Q: What is considered "food" for purposes of a areal package? A: Any food,including snacks and other so-called"finger food,"that is available on the licensed premises as long as the food and alcoholic drinks are sold as a package for a fixed price. Q: Am I allowed to sell "party packages," such as wristband deals for a private event? What are the regulations? A: Yes."Party package"means a private party,function, or event for a specific social or business occasion, either arranged by invitation or reservation for a defined number of individuals,that is not open to the general public and where attendees are served both food and alcohol for a fixed price in a DEDICATED EVENT space.In order to sell a party package,a business must: • Offer food in the dedicated event space. • Limit the party package to no more than 3 hours. • Distribute wristbands,lanyards,or shirts that designate party package attendees. • Exclude individuals not participating in the party package from the dedicated event space. cont'd. on page 2 "Happy hour"FAQs(contd.) Q: Is there a limit on the number of drinks which may be served with a party package? A: No.There is no limit on the number of drinks allowed to be included with a party package. Q: What is considered "food" for purposes of a party package?. A: Any food,including snacks and other so-called"finger food,"that is available on the licensed premises. Q: Private functions as defined in the Liquor Control Act (2 35 iLCS 5/1=3.36) have always been an exception to the prohibition on unlimited drinks; are private functions now limited to 3 hours? A: No. Private functions such as weddings,private parties,fund-raising functions,etc.,where"guests in attendance are served in a room or rooms designated and used exclusively for the private party,function or event" (235 ILCS 5/1-3.36) are not subjected to a time limit. Q: How can alcoholic drinks be sold and served to a customer? A: 1) You may serve two or more drinks to one customer at one time; 2) You may not sell two or more drinks for the price of one drink; 3) You must increase the price of a drink proportionately to an increase in the volume of the same drink(Example:The price of a 24 ounce draft of Brand X beer must cost twice as much as a 12 ounce draft of Brand X beer). Q: Can 1 sell or serve a pitcher, bottle, carafe, bucket, flight, or similar container to one person? A: Yes. Q: How does proportionate pricing apply to prices of a pitcher, bottle, carafe, bucket, flight, or similar container? A: Proportionate pricing applies to individual drinks,not to pitchers,bottles,carafes,buckets,flight or similar containers.As long as a price reduction is not equal to selling 2 or more alcoholic drinks for the price of one, a retailer is free to set any price for a pitcher,bottle,carafe,bucket,flight or similar container. Q: Can I permit or encourage drinking games or contests at my licensed premises? A: No. Q: Can 1 still offer daily drink specials? A: Yes,as long as the price of the drink special is listed on the mandatory schedule of drink prices. Q: May 1 advertise happy hour, meal packages, and party packages? A: Yes.Events permitted under the Liquor Control Act may be legally advertised. Q. May 1 advertise events and drink specials permitted under the Happy Hour law on social media? A: Yes.Social media advertising is allowed. Q. Where can 1 learn more about "infusions" and its legality in Illinois? A: For FAQ's on this subject,please see the following page. Q. Does the new law mandate that all servers in Illinois be trained and certified every three years? A: Yes.All alcohol servers and those checking ID's for alcohol service in on-premise establishments(ie,bars, restaurants,banquet halls)will be required to successfully complete BASSET every three years.The mandate takes effect by a pre-determined date cited in the law.See page 4 for the schedule. Illinois Liquor Control Commission Page 2 of 4 J FAQs on "infusions" Below are frequently asked questions regarding the Illinois legality of"infusions"as cited in Public Act 99-0046 which went into effect on July 15,2015: ( U O r O t rO l Q: What is an infusion? A: An infusion is a spirit where ingredients,including,but not limited to,fruits,spices,or nuts,are added to naturally infuse flavor into the spirit. Q: Can I sell infusions? A: Yes. Q: What are the rules and regulations for selling infusions? A: The infusion may be aged for up to 14 days.After aging,it may be served to customers for up to 21 days.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. Q: How is an infusion different than a mixed drink or pre-mix like a margarita? A. Infusions are not intended for immediate consumption. Mixed drinks and pre-mixes are intended for immediate consumption. Q. Do rules differ for pre-mixes like a margarita? A. Yes.All pre-mix dispensing containers or systems must be drained,contents disposed of,and thoroughly cleaned at least once every week.A record shall be kept on the premises as to the dates the cleaning was done,signed by the person who actually performed the cleaning. ILCC Rule and Regulation 100.160(e). Q. is sangria an infusion? A. No.The base ingredient of sangria is wine not spirits.Therefore,sangria is not an infusion and is regulated according to the pre-mix rules. Q. Does the Illinois Liquor Control Commission regulate the sales or service of the non- beverage byproducts of an infusion (i.e. fruit saturated with alcoholic liquor). A. No.The Illinois Liquor Control Commission solely regulates items which"are capable of being consumed as a beverage by a human being." 235 ILCS 5/1-3.05. Infusion byproducts that are sold or served as food items are regulated by local food ordinances and the Illinois Food, Drug and Cosmetic Act(420 ILCS 620/). Q. Can 1 sell infusions to go? A. No.Infusions can only be served and consumed on the licensed premises. Illinois Liquor Control Commission Page 3 of 4 JO DAVIESS Illinois CARROLL COOK Liquor Commission Mem WARREN STARK MARSHALL 1 Mm HANCOCK "D SCHUYLER DEM i NIENM cAss PIKE FIATT DOMM EDGAR L) scow GIME SHELBY t]l1RK M NMBERLAND - B R%ET JERSEY JASPER 1%Serve Responsibly • CuY 1cMwM RK:HLAND LAWRENCE Required training dates for alcohol servers The signing of Public Act 99-0046 on July 15,2015 WAYNE requires all Illinois on-premise alcohol servers m (and those checking ID's for alcohol service) to successfully complete a Beverage Alcohol wASHUl�raa wnRIE' Sellers/Servers Education&Training(BASSET) PM class by a certain date based upon county population. SMM BASSET certification currently required F ■ BASSET certification required by July 1,2016 UNION JOHNSON POPE HARDIN ■ BASSET certification required by July 1,2017 BASSET certification required by July 1,2018 PULAXI MASSAC 1 NOTE:Some local jurisdictions may already require BASSET. Please visit www.illinois.govIlLCC/SitePages/Survey.aspx for ordinances in your community.