Full Text of SB3103 98th General Assembly
SB3103enr 98TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning business.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Beer Industry Fair Dealing Act is amended by | 5 | | changing Section 1.1 as follows:
| 6 | | (815 ILCS 720/1.1) (from Ch. 43, par. 301.1)
| 7 | | Sec. 1.1. As used in this Act:
| 8 | | (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 , all beverages | 12 | | brewed or fermented wholly or in part from malt products, and
| 13 | | the like ; and for .
For purposes of this Act only, the term | 14 | | "beer" shall also include malt
beverage products containing | 15 | | less
than one-half of 1% of alcohol by volume and marketed for | 16 | | adult consumption as
an alternative beverage to beer.
| 17 | | (2) "Agreement" means any contract, agreement, | 18 | | arrangement,
operating
standards, or amendments to a contract, | 19 | | agreement, arrangement, or operating
standards, the effect of | 20 | | which is to substantially change or modify
the existing | 21 | | contract, agreement, arrangement, or operating standards,
| 22 | | whether
expressed or implied, whether oral or written, for a | 23 | | definite or indefinite
period between a brewer and a wholesaler |
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| 1 | | pursuant to which a wholesaler
has been granted the right to | 2 | | purchase, resell, and distribute as
wholesaler or master | 3 | | distributor
any brand
or brands of beer offered by a brewer. | 4 | | The agreement between a brewer
and wholesaler shall not be | 5 | | considered a franchise relationship.
| 6 | | (3) "Wholesaler" or "beer wholesaler" means any person, | 7 | | other than a
manufacturer licensed under the Liquor Control Act | 8 | | of 1934, who is
engaged in this State in purchasing, storing, | 9 | | possessing or warehousing any
alcoholic liquors for resale or | 10 | | reselling at wholesale, whether within or
without this State.
| 11 | | (4) "Brewer" means a person who is engaged in the | 12 | | manufacture of beer,
a master distributor as defined in this
| 13 | | Section, a
successor brewer as defined in this Section, a | 14 | | non-resident dealer under the
provisions of the Liquor Control | 15 | | Act of 1934, a foreign importer under the
provisions of the | 16 | | Liquor Control Act of 1934, or a person who owns or controls
| 17 | | the trademark, brand, or name of beer.
| 18 | | (4.5) "Brand" means any word, name, group of letters, | 19 | | symbols, or any combination thereof that is adopted and used by | 20 | | a brewer to identify a specific beer product and to distinguish | 21 | | that beer product from another beer product. | 22 | | (4.7) "Brand extension" means any brand that incorporates | 23 | | all or a substantial part of the features of a pre-existing | 24 | | brand of the same brewer and that relies to a significant | 25 | | extent on the good will associated with the pre-existing brand.
| 26 | | (5) "Master Distributor" means a person who, in addition to |
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| 1 | | being a
wholesaler, acts in the same or
similar capacity as a | 2 | | brewer or outside seller of one or more brands of
beer to other | 3 | | wholesalers on a regular basis in the normal course of
| 4 | | business.
| 5 | | (6) "Successor Brewer" means any person who in any way
| 6 | | obtains the distribution rights that a
brewer, non-resident | 7 | | dealer, foreign importer, or master distributor once had
to | 8 | | manufacture or distribute a brand or brands
of beer whether by | 9 | | merger, purchase of corporate shares, purchase of
assets, or | 10 | | any other arrangement, including but not limited to any | 11 | | arrangements transferring the ownership or control of the | 12 | | trademark, brand or name of the brand.
| 13 | | (7) "Person" means a natural person, partnership, | 14 | | corporation, trust,
agency, or other form of business | 15 | | enterprise. Person also includes heirs,
assigns, personal | 16 | | representatives and guardians.
| 17 | | (8) "Territory" or "sales territory" means the exclusive | 18 | | geographic area of primary
sales responsibility designated by | 19 | | the agreement between a wholesaler and
brewer for any brand, | 20 | | brands, or brand extensions of the brewer. The "territory" or | 21 | | "sales territory" designated by the agreement may not be | 22 | | designated by address or specific location unless such specific | 23 | | address or location is part of a general and broad territory or | 24 | | sales territory description. The designation of a territory or | 25 | | sales territory in violation of this subsection is prohibited | 26 | | by this Act and deemed discriminatory.
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| 1 | | (9) "Good cause" exists if the wholesaler or affected party | 2 | | has failed
to comply with essential and reasonable requirements | 3 | | imposed upon the
wholesaler or affected party by the agreement. | 4 | | The requirements may not be
discriminating either by their | 5 | | terms or in the methods of their enforcement
as compared with | 6 | | requirements imposed on other similarly situated
wholesalers | 7 | | by the brewer. The requirements may not be inconsistent with
| 8 | | this Act or in violation of any law or regulation.
| 9 | | (10) "Good faith" means honesty in fact and the observance | 10 | | of reasonable
commercial standards of fair dealing in the trade | 11 | | as defined and
interpreted under Section 2-103 of the Uniform | 12 | | Commercial Code.
| 13 | | (11) "Reasonable standards and qualifications" means those | 14 | | criteria
applied by the brewer to similarly situated | 15 | | wholesalers during a period of
24 months before the proposed | 16 | | change in manager or successor manager of the
wholesaler's | 17 | | business.
| 18 | | (12) "Affected party" means a wholesaler, brewer, master | 19 | | distributor,
successor brewer, or any person that is a party to | 20 | | an agreement.
| 21 | | (13) "Signs" means signs described in Section 6-6 of the | 22 | | Liquor Control
Act of 1934.
| 23 | | (14) "Advertising materials" means advertising materials | 24 | | described in
Section 6-6 of the Liquor Control Act of 1934.
| 25 | | (Source: P.A. 95-240, eff. 8-17-07; 95-789, eff. 8-7-08; | 26 | | 96-662, eff. 8-25-09.)
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