CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Waive the first reading and pass an ordinance amending Sections 3-3-3 and 3-3-12 of the Naperville Municipal Code to allow happy hour specials consistent with state law, while adding a local restriction that prohibit such specials after 7:00 p.m. (requires six positive votes)
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DEPARTMENT: Legal Department
SUBMITTED BY: Jennifer Bonner, Senior Assistant City Attorney
BOARD/COMMISSION REVIEW:
On August 6, 2026, the Liquor Commission unanimously recommended removing the prohibition on happy hours to permit their conclusion at 7:00 p.m. Draft minutes from the August 6, 2026 Liquor Commission meeting are attached.
BACKGROUND:
Following Illinois’s 1989 statewide happy hour ban intended to curb binge drinking, the state reversed course on July 15, 2015, by enacting Public Act 99-0046, which authorized regulated happy hour promotions. Exercising its home rule authority, the Naperville Liquor Commission voted on October 5, 2017, to keep the City's local prohibition in place.
At the July 9, 2026, Liquor Control Commission meeting, Kevin Reed (Vice President of Operations, Biaggi’s Ristorante Italiano; Ancho & Agave) requested a reconsideration of this prohibition. The Liquor Commission directed staff to place the item on a future meeting agenda. Staff subsequently placed the item on the August 6, 2026 Liquor Commission agenda.
In considering any amendments to its happy hour restrictions, the City is limited to enacting regulations that are stricter than those of the state.
The Illinois Liquor Control Act permits happy hours subject to the following:
• Time Limits: Discounts cannot exceed 4 hours per day or 15 hours per week. Happy hours are prohibited between 10:00 PM and closing, though nonconsecutive hours are allowed within the daily 4-hour limit.
• Pricing & Equity: Drink prices must apply equally to all patrons (e.g., no "ladies' nights" or costume-based discounts). Single drink prices cannot be tied to conditions or increased alcoholic content without a proportional price change.
• Prohibited Promotions: Unlimited drinks, multi-drink specials (like 2-for-1), drinking games, contests, and free alcohol are strictly banned.
• Notice: Any promotion requires at least 7 days of public notice.
• Permitted Additions: Businesses may offer free food and entertainment at any time, or bundle food and alcohol into a single meal package.
DISCUSSION:
Restaurant owners emphasized that happy hour promotions are essential for attracting patrons during off-peak times, such as early weekday evenings, noting that without these specials, customers frequently leave local establishments for neighboring communities where such discounts are permitted.
Addressing historical safety concerns that originally prompted the ban, the Liquor Commission stated that those risks are now effectively managed through current regulations and modern tools, including digital age-verification scanners and ride-sharing availability. To further ensure safety, the Commission recommended a 7:00 p.m. cutoff for all promotional pricing.
FISCAL IMPACT:
Corresponding increase in sales tax.