Bill Text: IL SB3103 | 2013-2014 | 98th General Assembly | Chaptered

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Bill Title: Amends the Beer Industry Fair Dealing Act. Includes within the definition of the term "beer" all beverages brewed or fermented wholly or in part from malt products.

Spectrum: Moderate Partisan Bill (Democrat 5-1)

Status: (Passed) 2014-08-01 - Public Act . . . . . . . . . 98-0843 [SB3103 Detail]

Download: Illinois-2013-SB3103-Chaptered.html

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Public Act 098-0843
SB3103 Enrolled LRB098 17735 JLS 52853 b
AN ACT concerning business.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Beer Industry Fair Dealing Act is amended by
changing Section 1.1 as follows:
(815 ILCS 720/1.1) (from Ch. 43, par. 301.1)
Sec. 1.1. As used in this Act:
(1) "Beer" means a beverage obtained by the alcoholic
fermentation of an infusion or concoction of barley, or other
grain, malt, and hops in water, and includes, among other
things, beer, ale, stout, lager beer, porter, all beverages
brewed or fermented wholly or in part from malt products, and
the like; and for . For purposes of this Act only, the term
"beer" shall also include malt beverage products containing
less than one-half of 1% of alcohol by volume and marketed for
adult consumption as an alternative beverage to beer.
(2) "Agreement" means any contract, agreement,
arrangement, operating standards, or amendments to a contract,
agreement, arrangement, or operating standards, the effect of
which is to substantially change or modify the existing
contract, agreement, arrangement, or operating standards,
whether expressed or implied, whether oral or written, for a
definite or indefinite period between a brewer and a wholesaler

pursuant to which a wholesaler has been granted the right to
purchase, resell, and distribute as wholesaler or master
distributor any brand or brands of beer offered by a brewer.
The agreement between a brewer and wholesaler shall not be
considered a franchise relationship.
(3) "Wholesaler" or "beer wholesaler" means any person,
other than a manufacturer licensed under the Liquor Control Act
of 1934, who is engaged in this State in purchasing, storing,
possessing or warehousing any alcoholic liquors for resale or
reselling at wholesale, whether within or without this State.
(4) "Brewer" means a person who is engaged in the
manufacture of beer, a master distributor as defined in this
Section, a successor brewer as defined in this Section, a
non-resident dealer under the provisions of the Liquor Control
Act of 1934, a foreign importer under the provisions of the
Liquor Control Act of 1934, or a person who owns or controls
the trademark, brand, or name of beer.
(4.5) "Brand" means any word, name, group of letters,
symbols, or any combination thereof that is adopted and used by
a brewer to identify a specific beer product and to distinguish
that beer product from another beer product.
(4.7) "Brand extension" means any brand that incorporates
all or a substantial part of the features of a pre-existing
brand of the same brewer and that relies to a significant
extent on the good will associated with the pre-existing brand.
(5) "Master Distributor" means a person who, in addition to

being a wholesaler, acts in the same or similar capacity as a
brewer or outside seller of one or more brands of beer to other
wholesalers on a regular basis in the normal course of
business.
(6) "Successor Brewer" means 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.
(7) "Person" means a natural person, partnership,
corporation, trust, agency, or other form of business
enterprise. Person also includes heirs, assigns, personal
representatives and guardians.
(8) "Territory" or "sales territory" means the exclusive
geographic area of primary sales responsibility designated by
the agreement between a wholesaler and brewer for any brand,
brands, or brand extensions of the brewer. The "territory" or
"sales territory" designated by the agreement may not be
designated by address or specific location unless such specific
address or location is part of a general and broad territory or
sales territory description. The designation of a territory or
sales territory in violation of this subsection is prohibited
by this Act and deemed discriminatory.

(9) "Good cause" exists if the wholesaler or affected party
has failed to comply with essential and reasonable requirements
imposed upon the wholesaler or affected party by the agreement.
The requirements may not be discriminating either by their
terms or in the methods of their enforcement as compared with
requirements imposed on other similarly situated wholesalers
by the brewer. The requirements may not be inconsistent with
this Act or in violation of any law or regulation.
(10) "Good faith" means honesty in fact and the observance
of reasonable commercial standards of fair dealing in the trade
as defined and interpreted under Section 2-103 of the Uniform
Commercial Code.
(11) "Reasonable standards and qualifications" means those
criteria applied by the brewer to similarly situated
wholesalers during a period of 24 months before the proposed
change in manager or successor manager of the wholesaler's
business.
(12) "Affected party" means a wholesaler, brewer, master
distributor, successor brewer, or any person that is a party to
an agreement.
(13) "Signs" means signs described in Section 6-6 of the
Liquor Control Act of 1934.
(14) "Advertising materials" means advertising materials
described in Section 6-6 of the Liquor Control Act of 1934.
(Source: P.A. 95-240, eff. 8-17-07; 95-789, eff. 8-7-08;
96-662, eff. 8-25-09.)