Full Text of HB4929 100th General Assembly
HB4929 100TH GENERAL ASSEMBLY |
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 HB4929 Introduced , by Rep. David A. Welter SYNOPSIS AS INTRODUCED: |
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820 ILCS 120/1 | from Ch. 48, par. 2251 |
820 ILCS 120/3 | from Ch. 48, par. 2253 |
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Amends the Sales Representative Act. Changes the definition of "principal" to mean a sole proprietorship, partnership, corporation or
other business entity which offers a product or service for sale (rather than manufactures, produces, imports, or distributes a product for
sale). Removes from the definition of "sales representative" a person who qualifies as an
employee of a principal pursuant to the Illinois Wage Payment and
Collection Act. Provides that a principal who fails to comply with certain provisions under the Act concerning timely payment or with any contractual
provision concerning timely payment of commissions due upon the termination
of the contract with the sales representative, shall be liable in a civil
action for exemplary damages in an amount which is at least the amount of the commission owed and does not exceed 3 times the
amount of the commissions owed to the sales representative (rather than which does not exceed 3 times the
amount of the commissions owed to the sales representative). Effective immediately.
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| | A BILL FOR |
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| 1 | | AN ACT concerning employment.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Sales Representative Act is amended by | 5 | | changing Sections 1 and 3 as follows:
| 6 | | (820 ILCS 120/1) (from Ch. 48, par. 2251)
| 7 | | Sec. 1. As used in this Act:
| 8 | | (1) "Commission" means compensation accruing to a sales | 9 | | representative
for payment by a principal, the rate of which is | 10 | | expressed as a percentage
of the dollar amount of orders or | 11 | | sales or as a percentage of the dollar
amount of profits.
| 12 | | (2) When a commission becomes due shall be determined in | 13 | | the following
manner:
| 14 | | (A) The terms of the contract between the principal and | 15 | | salesperson
shall control;
| 16 | | (B) If there is no contract, or if the terms of the | 17 | | contract do not
provide when the commission becomes due, or | 18 | | the terms are ambiguous or
unclear, the past practice used | 19 | | by the parties shall control;
| 20 | | (C) If neither (A) nor (B) can be used to clearly | 21 | | ascertain when the
commission becomes due, the custom and | 22 | | usage prevalent in this State for
the parties' particular | 23 | | industry shall control.
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| 1 | | (3) "Principal" means a sole proprietorship, partnership, | 2 | | corporation or
other business entity whether or not it has a | 3 | | permanent or fixed
place of business in this State and which:
| 4 | | (A) Offers a product or service for sale; Manufactures, | 5 | | produces, imports, or distributes a product for
sale;
| 6 | | (B) Contracts with a sales representative to solicit | 7 | | orders for the
product; and
| 8 | | (C) Compensates the sales representative, in whole or | 9 | | in part, by
commission.
| 10 | | (4) "Sales representative" means a person who contracts | 11 | | with a principal
to solicit orders and who is compensated, in
| 12 | | whole or in part, by commission, but shall not include one who | 13 | | places
orders or purchases for his own account for resale . or | 14 | | one who qualifies as an
employee of the principal pursuant to | 15 | | the Illinois Wage Payment and
Collection Act.
| 16 | | (Source: P.A. 86-586; 87-948.)
| 17 | | (820 ILCS 120/3) (from Ch. 48, par. 2253)
| 18 | | Sec. 3.
A principal who fails to comply with the
provisions | 19 | | of Section 2 concerning timely payment or with any contractual
| 20 | | provision concerning timely payment of commissions due upon the | 21 | | termination
of the contract with the sales representative, | 22 | | shall be liable in a civil
action for exemplary damages in an | 23 | | amount which is at least the amount of the commission owed and | 24 | | does not exceed 3 times the
amount of the commissions owed to | 25 | | the sales representative. Additionally,
such principal shall |
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| 1 | | pay the sales representative's reasonable attorney's
fees and | 2 | | court costs.
| 3 | | (Source: P.A. 84-627.)
| 4 | | Section 99. Effective date. This Act takes effect upon | 5 | | becoming law.
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