Full Text of HB1084 95th General Assembly
HB1084enr 95TH GENERAL ASSEMBLY
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HB1084 Enrolled |
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LRB095 09966 LCT 30179 b |
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| AN ACT concerning business.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Beer Industry Fair Dealing Act is amended by | 5 |
| changing Sections 1.1 and 5 as follows:
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| (815 ILCS 720/1.1) (from Ch. 43, par. 301.1)
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| Sec. 1.1. As used in this Act:
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| (1) "Beer" means a beverage obtained by the alcoholic | 9 |
| fermentation of an
infusion or concoction of barley, or other | 10 |
| grain, malt, and hops in water,
and includes, among other | 11 |
| things, beer, ale, stout, lager beer, porter and
the like.
For | 12 |
| purposes of this Act only, the term "beer" shall also include | 13 |
| malt
beverage products containing less
than one-half of 1% of | 14 |
| alcohol by volume and marketed for adult consumption as
an | 15 |
| alternative beverage to beer.
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| (2) "Agreement" means any contract, agreement, | 17 |
| arrangement,
operating
standards, or amendments to a contract, | 18 |
| agreement, arrangement, or operating
standards, the effect of | 19 |
| which is to substantially change or modify
the existing | 20 |
| contract, agreement, arrangement, or operating standards,
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| whether
expressed or implied, whether oral or written, for a | 22 |
| definite or indefinite
period between a brewer and a wholesaler | 23 |
| pursuant to which a wholesaler
has been granted the right to |
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HB1084 Enrolled |
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LRB095 09966 LCT 30179 b |
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| purchase, resell, and distribute as
wholesaler or master | 2 |
| distributor
any brand
or brands of beer offered by a brewer. | 3 |
| The agreement between a brewer
and wholesaler shall not be | 4 |
| considered a franchise relationship.
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| (3) "Wholesaler" or "beer wholesaler" means any person, | 6 |
| other than a
manufacturer licensed under The Liquor Control Act | 7 |
| of 1934, who is
engaged in this State in purchasing, storing, | 8 |
| possessing or warehousing any
alcoholic liquors for resale or | 9 |
| reselling at wholesale, whether within or
without this State.
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| (4) "Brewer" means a person who is engaged in the | 11 |
| manufacture of beer,
a master distributor as defined in this
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| Section, a
successor brewer as defined in this Section, a | 13 |
| non-resident dealer under the
provisions of the Liquor Control | 14 |
| Act of 1934, a foreign importer under the
provisions of the | 15 |
| Liquor Control Act of 1934, or a person who owns or controls
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| the trademark, brand, or name of beer.
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| (4.5) "Brand" means any word, name, group of letters, | 18 |
| symbols, or any combination thereof that is adopted and used by | 19 |
| a brewer to identify a specific beer product and to distinguish | 20 |
| that beer product from another beer product. | 21 |
| (4.7) "Brand extension" means any brand that incorporates | 22 |
| all or a substantial part of the features of a pre-existing | 23 |
| brand of the same brewer and that relies to a significant | 24 |
| extent on the good will associated with the pre-existing brand.
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| (5) "Master Distributor" means a person who, in addition to | 26 |
| being a
wholesaler, acts in the same or
similar capacity as a |
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LRB095 09966 LCT 30179 b |
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| brewer or outside seller of one or more brands of
beer to other | 2 |
| wholesalers on a regular basis in the normal course of
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| business.
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| (6) "Successor Brewer" means any person who in any way
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| obtains the distribution rights that a
brewer or master | 6 |
| distributor once had
to manufacture or distribute a brand or | 7 |
| brands
of beer whether by merger, purchase of corporate shares, | 8 |
| purchase of
assets, or any other arrangement.
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| (7) "Person" means a natural person, partnership, | 10 |
| corporation, trust,
agency, or other form of business | 11 |
| enterprise. Person also includes heirs,
assigns, personal | 12 |
| representatives and guardians.
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| (8) "Territory" or "sales territory" means the geographic | 14 |
| area of primary
sales responsibility designated by an agreement | 15 |
| between a wholesaler and
brewer for any brand or brands of the | 16 |
| brewer.
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| (9) "Good cause" exists if the wholesaler or affected party | 18 |
| has failed
to comply with essential and reasonable requirements | 19 |
| imposed upon the
wholesaler or affected party by the agreement. | 20 |
| The requirements may not be
discriminating either by their | 21 |
| terms or in the methods of their enforcement
as compared with | 22 |
| requirements imposed on other similarly situated
wholesalers | 23 |
| by the brewer. The requirements may not be inconsistent with
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| this Act or in violation of any law or regulation.
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| (10) "Good faith" means honesty in fact and the observance | 26 |
| of reasonable
commercial standards of fair dealing in the trade |
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LRB095 09966 LCT 30179 b |
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| as defined and
interpreted under Section 2-103 of the Uniform | 2 |
| Commercial Code.
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| (11) "Reasonable standards and qualifications" means those | 4 |
| criteria
applied by the brewer to similarly situated | 5 |
| wholesalers during a period of
24 months before the proposed | 6 |
| change in manager or successor manager of the
wholesaler's | 7 |
| business.
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| (12) "Affected party" means a wholesaler, brewer, master | 9 |
| distributor,
successor brewer, or any person that is a party to | 10 |
| an agreement.
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| (13) "Signs" means signs described in Section 6-6 of the | 12 |
| Liquor Control
Act of 1934.
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| (14) "Advertising materials" means advertising materials | 14 |
| described in
Section 6-6 of the Liquor Control Act of 1934.
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| (Source: P.A. 90-373, eff. 8-14-97; 91-247, eff. 7-22-99.)
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| (815 ILCS 720/5) (from Ch. 43, par. 305)
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| Sec. 5. Prohibited conduct. No brewer shall:
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| (1) Induce or coerce, or attempt to induce or coerce, | 19 |
| any wholesaler to
engage in any illegal act or
course of | 20 |
| conduct either by threatening to
amend, modify, cancel, | 21 |
| terminate, or refuse to renew any agreement existing
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| between the brewer and the wholesaler, or by any other | 23 |
| means.
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| (2) Require a wholesaler to assent to any unreasonable | 25 |
| requirement,
condition, understanding or term or an |
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HB1084 Enrolled |
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LRB095 09966 LCT 30179 b |
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| agreement prohibiting a wholesaler
from selling the | 2 |
| product of any other brewer or brewers.
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| (3) Directly or indirectly fix or maintain
the price at | 4 |
| which a wholesaler may resell beer.
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| (4) Fail to provide to each wholesaler of its brands a | 6 |
| written contract
which embodies the brewer's agreement | 7 |
| with its wholesalers and conforms
to the provisions of this | 8 |
| Act.
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| (5) Require any wholesaler to accept delivery of any | 10 |
| beer, signs,
advertising materials, or any other
item or | 11 |
| commodity which has not been ordered by the wholesaler, or | 12 |
| require
any wholesaler to accept a common carrier for | 13 |
| delivery of beer into this State
unless the wholesaler | 14 |
| consents to the common carrier. In the event
a brewer | 15 |
| adopts a uniform practice of delivering beer into this | 16 |
| State to the
premises of all licensed wholesalers, the | 17 |
| brewer may select the common carrier
in this State.
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| (6) Require a wholesaler without the wholesaler's | 19 |
| approval to
participate in an arrangement for the payment | 20 |
| or crediting by an electronic
fund transfer transaction for | 21 |
| any item or commodity other than beer or to
access a | 22 |
| wholesaler's account for any item or commodity other than | 23 |
| beer.
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| (7) Require a wholesaler to assent to any requirement
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| prohibiting the wholesaler from disposing, after notice to | 26 |
| the brewer,
of a product which has been deemed salvageable |
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HB1084 Enrolled |
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LRB095 09966 LCT 30179 b |
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| by a local or State health
authority. Nothing herein shall | 2 |
| prohibit the brewer from having the first
right to purchase | 3 |
| the salvageable product from the wholesaler at a price
not | 4 |
| to exceed the original cost of the product or to | 5 |
| subsequently
repurchase the product from the insurance | 6 |
| company or salvage company.
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| (8) Refuse to approve or require a wholesaler to | 8 |
| terminate a manager
or successor manager without good | 9 |
| cause. A brewer has good cause only if
the person | 10 |
| designated as manager or successor manager by the | 11 |
| wholesaler
fails to meet reasonable standards and | 12 |
| qualifications.
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| (9) Present an agreement to a wholesaler that attempts | 14 |
| to waive
compliance with any provision of this Act or that | 15 |
| requires the wholesaler to
waive compliance with any | 16 |
| provision of this Act.
No brewer shall induce or coerce, or | 17 |
| attempt to induce or coerce, any
wholesaler to assent to | 18 |
| any agreement, amendment, renewal, or replacement
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| agreement that does not comply with this Act and
the laws | 20 |
| of this State.
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| (10) Terminate or attempt to terminate an agreement on | 22 |
| the basis that
the wholesaler refuses to purchase signs or | 23 |
| advertising materials or any
quantity or types thereof.
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| (11) Discriminate against a wholesaler who has entered | 25 |
| into a contract
relative to signs or advertising materials | 26 |
| by not making signs or advertising
materials or any |
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HB1084 Enrolled |
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LRB095 09966 LCT 30179 b |
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| quantity or types thereof available to the wholesaler when | 2 |
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brewer makes available such signs or advertising | 3 |
| materials to other similarly
situated wholesalers in this | 4 |
| State.
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| (12) Present an agreement requiring the wholesaler to | 6 |
| arbitrate all
disputes without offering the wholesaler in | 7 |
| writing the opportunity to reject
arbitration and elect to | 8 |
| resolve all disputes by maintaining a civil suit in
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| accordance with this Act.
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| (13) Fail to assign brand extensions to a wholesaler | 11 |
| who has been granted the territory to the brand from which | 12 |
| the brand extension resulted and agrees to accept the brand | 13 |
| extension; however, this requirement does not apply if the | 14 |
| wholesaler is not in compliance with the agreement at the | 15 |
| time the brewer offers the brand extension to the | 16 |
| wholesaler.
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| No brewer who, pursuant to an agreement with a wholesaler | 18 |
| which does not
violate antitrust laws, has designated a sales | 19 |
| territory for which the
wholesaler is exclusively
primarily | 20 |
| responsible or in which the wholesaler is required
to | 21 |
| concentrate its efforts, shall enter into an agreement with any | 22 |
| other
wholesaler for the purpose of establishing an additional | 23 |
| wholesaler for the
brewer's brand ,
or brands , or brand | 24 |
| extension in the territory.
in all or part of the same | 25 |
| territory.
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| No wholesaler who, pursuant to an agreement is granted a |
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HB1084 Enrolled |
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LRB095 09966 LCT 30179 b |
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| sales territory
for which it shall be exclusively
primarily | 2 |
| responsible or in which it is required to
concentrate its | 3 |
| efforts, shall make any sale or delivery of beer to any
retail | 4 |
| licensee whose place of business is not within the territory | 5 |
| granted
to the wholesaler.
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| (Source: P.A. 90-373, eff. 8-14-97; 91-247, eff. 7-22-99.)
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| Section 99. Effective date. This Act takes effect upon | 8 |
| becoming law.
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