Springfield Recap, Cocktails to Go, and More

The Illinois Restaurant Association continues to engage with local, state, and federal officials to help employers and employees address concerns about COVID-19.

Please see the below resources and information for your business - updated as of 7:50 p.m. on Tuesday, June 1.

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Illinois General Assembly End of Session Recap

Early this morning, the Illinois General Assembly approved a $42B state budget, a plan shifting next year’s primary to June, and an ethics package requiring more financial disclosure of officeholders. Read more from Chicago Tribune, Crain's Chicago Business, and The State Journal-Register.

Throughout the legislative session, the IRA has had an active presence in Springfield alongside our contract lobbyist Derek Blaida. We monitored hundreds of bills and advocated for the industry on several proposals of importance to operators, vendors, and employees.

Below are relevant proposals that have passed both chambers, and await the Governor's signature.

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Cocktails to Go/Complimentary Drink with Proof of Vaccination

The IRA was fully supportive of legislation that passed both chambers that will extend cocktails to go in Illinois until 2024, allow credit card payments between retailers and liquor distributors, and temporarily allow for retailers to offer a single, complimentary, alcoholic drink to patrons that offer proof of vaccination. Read more from NBC5 Chicago.

The provision of the bill that will allow liquor licensees to offer a free alcoholic drink is in place from June 10 to July 10, 2021, and will only be allowed from 6:00 to 10:00 p.m. nightly. A retailer's participation in the program is voluntary.

We thank Senator Sara Feigenholtz (6th) and Representative Michael Zalewski (23rd) for working with the industry on this pragmatic legislation that will benefit hospitality businesses. 

State Budget

Members of the Illinois House of Representatives and Senate passed a $42B state budget that is based in part on higher taxes on businesses. The IRA worked with other business groups to remove some revenue proposals from the state budget, including a cap on the retailer's discount. Tax increases in the budget include capping the corporate Net Operating Loss deduction at $100,000 for three years and freezing the Corporate Franchise Tax that was in the second year of a five-year phaseout, meaning only the first $1,000 is exempt from the tax.

The budget would pay off the remaining $2B in the $3.2B that Illinois borrowed from the federal government to shore up state finances during the peak of the COVID-19 pandemic in 2020.

The General Assembly also reinstates funding in the budget to convention and visitor bureaus such as Choose Chicago, after last year's COVID-19 budget removed funding for bureaus around the state.

Default Beverages for Children's Meals

The House and Senate passed a bill that will require a restaurant to offer, by default, a specified type of water, milk, milk alternative, or juice with a children's meal sold by the restaurant. The bill allows a restaurant to include another beverage with a children's meal upon request by the customer.

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The IRA will remain active in Springfield later this year during veto session in the fall. Contact Matt Quinn with any questions about the latest developments in Springfield.