Full Text of SB2754 95th General Assembly
SB2754 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 SB2754
Introduced 2/15/2008, by Sen. Don Harmon SYNOPSIS AS INTRODUCED: |
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815 ILCS 720/1.1 |
from Ch. 43, par. 301.1 |
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Amends the Beer Industry Fair Dealing Act. Changes the definition of "successor brewer" to "any person who in any way obtains the distribution rights that a brewer, non-resident dealer, foreign importer, or master distributor once had to manufacture or distribute a brand or brands of beer whether by merger, purchase of corporate shares, purchase of assets, or any other arrangement, including but not limited to any arrangements transferring the ownership or control of the trademark, brand or name of the brand". Effective immediately.
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A BILL FOR
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SB2754 |
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LRB095 15970 WGH 41982 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, 5, and 7 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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SB2754 |
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LRB095 15970 WGH 41982 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 15970 WGH 41982 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 , non-resident | 6 |
| dealer, foreign importer, or master distributor once had
to | 7 |
| manufacture or distribute a brand or brands
of beer whether by | 8 |
| merger, purchase of corporate shares, purchase of
assets, or | 9 |
| any other arrangement , including but not limited to any | 10 |
| arrangements transferring the ownership or control of the | 11 |
| trademark, brand or name of the brand .
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| (7) "Person" means a natural person, partnership, | 13 |
| corporation, trust,
agency, or other form of business | 14 |
| enterprise. Person also includes heirs,
assigns, personal | 15 |
| representatives and guardians.
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| (8) "Territory" or "sales territory" means the geographic | 17 |
| area of primary
sales responsibility designated by an agreement | 18 |
| between a wholesaler and
brewer for any brand or brands of the | 19 |
| brewer.
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| (9) "Good cause" exists if the wholesaler or affected party | 21 |
| has failed
to comply with essential and reasonable requirements | 22 |
| imposed upon the
wholesaler or affected party by the agreement. | 23 |
| The requirements may not be
discriminating either by their | 24 |
| terms or in the methods of their enforcement
as compared with | 25 |
| requirements imposed on other similarly situated
wholesalers | 26 |
| by the brewer. The requirements may not be inconsistent with
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LRB095 15970 WGH 41982 b |
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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 | 3 |
| of reasonable
commercial standards of fair dealing in the trade | 4 |
| as defined and
interpreted under Section 2-103 of the Uniform | 5 |
| Commercial Code.
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| (11) "Reasonable standards and qualifications" means those | 7 |
| criteria
applied by the brewer to similarly situated | 8 |
| wholesalers during a period of
24 months before the proposed | 9 |
| change in manager or successor manager of the
wholesaler's | 10 |
| business.
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| (12) "Affected party" means a wholesaler, brewer, master | 12 |
| distributor,
successor brewer, or any person that is a party to | 13 |
| an agreement.
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| (13) "Signs" means signs described in Section 6-6 of the | 15 |
| Liquor Control
Act of 1934.
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| (14) "Advertising materials" means advertising materials | 17 |
| described in
Section 6-6 of the Liquor Control Act of 1934.
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| (Source: P.A. 95-240, eff. 8-17-07.)
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| Section 99. Effective date. This Act takes effect upon | 20 |
| becoming law.
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