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90_HB0903enr
235 ILCS 5/6-6 from Ch. 43, par. 123
Amends the Liquor Control Act of 1934. Provides that a
manufacturer and a distributor or importing distributor may
enter into a written agreement for the manufacturer to sell
to the distributor or importing distributor certain signs or
inside advertising materials. Effective immediately.
LRB9000875LDdv
HB0903 Enrolled LRB9000875LDdv
1 AN ACT in relation to alcoholic liquor, amending named
2 Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Liquor Control Act of 1934 is amended by
6 changing Section 6-6 as follows:
7 (235 ILCS 5/6-6) (from Ch. 43, par. 123)
8 Sec. 6-6. Except as otherwise provided in this Act no
9 manufacturer or distributor or importing distributor shall,
10 directly, or indirectly, sell, supply, furnish, give or pay
11 for, or loan or lease, any furnishing, fixture or equipment
12 on the premises of a place of business of another licensee
13 authorized under this Act to sell alcoholic liquor at retail,
14 either for consumption on or off the premises, nor shall he
15 or she, directly or indirectly, pay for any such license, or
16 advance, furnish, lend or give money for payment of such
17 license, or purchase or become the owner of any note,
18 mortgage, or other evidence of indebtedness of such licensee
19 or any form of security therefor, nor shall such
20 manufacturer, or distributor, or importing distributor,
21 directly or indirectly, be interested in the ownership,
22 conduct or operation of the business of any licensee
23 authorized to sell alcoholic liquor at retail, nor shall any
24 manufacturer, or distributor, or importing distributor be
25 interested directly or indirectly or as owner or part owner
26 of said premises or as lessee or lessor thereof, in any
27 premises upon which alcoholic liquor is sold at retail.
28 No manufacturer or distributor or importing distributor
29 shall, directly or indirectly or through a subsidiary or
30 affiliate, or by any officer, director or firm of such
31 manufacturer, distributor or importing distributor, furnish,
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1 give, lend or rent, install, repair or maintain, to or for
2 any retail licensee in this State, any signs or inside
3 advertising materials except as provided in this Section and
4 Section 6-5. With respect to retail licensees, other than any
5 government owned or operated auditorium, exhibition hall,
6 recreation facility or other similar facility holding a
7 retailer's license as described in Section 6-5, a
8 manufacturer, distributor, or importing distributor may
9 furnish, give, lend or rent and erect, install, repair and
10 maintain to or for any retail licensee, for use at any one
11 time in or about or in connection with a retail establishment
12 on which the products of the manufacturer, distributor or
13 importing distributor are sold, the following signs and
14 inside advertising materials as authorized in subparts (i),
15 (ii), (iii), and (iv):
16 (i) Permanent outside signs shall be limited to one
17 outside sign, per brand, in place and in use at any one
18 time, costing not more than $893, exclusive of erection,
19 installation, repair and maintenance costs, and permit
20 fees and shall bear only the manufacturer's name, brand
21 name, trade name, slogans, markings, trademark, or other
22 symbols commonly associated with and generally used in
23 identifying the product.
24 (ii) Temporary outside signs shall be limited to
25 one temporary outside sign per brand. Examples of
26 temporary outside signs are banners, flags, pennants,
27 streamers, and other items of a temporary and
28 non-permanent nature. Each temporary outside sign must
29 include the manufacturer's name, brand name, trade name,
30 slogans, markings, trademark, or other symbol commonly
31 associated with and generally used in identifying the
32 product. Temporary outside signs may also include, for
33 example, the product, price, packaging, date or dates of
34 a promotion and an announcement of a retail licensee's
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1 specific sponsored event, if the temporary outside sign
2 is intended to promote a product, and provided that the
3 announcement of the retail licensee's event and the
4 product promotion are held simultaneously. However,
5 temporary outside signs may not include names, slogans,
6 markings, or logos that relate to the retailer. Nothing
7 in this subpart (ii) shall prohibit a distributor or
8 importing distributor from bearing the cost of creating
9 or printing a temporary outside sign for the retail
10 licensee's specific sponsored event or from bearing the
11 cost of creating or printing a temporary sign for a
12 retail licensee containing, for example, community
13 goodwill expressions, regional sporting event
14 announcements, or seasonal messages, provided that the
15 primary purpose of the temporary outside sign is to
16 highlight, promote, or advertise the product. In
17 addition, temporary outside signs provided by the
18 manufacturer to the distributor or importing distributor
19 may also include, for example, subject to the limitations
20 of this Section, preprinted community goodwill
21 expressions, sporting event announcements, seasonal
22 messages, and manufacturer promotional announcements.
23 However, a distributor or importing distributor shall not
24 bear the cost of such manufacturer preprinted signs.
25 (iii) Permanent inside signs, whether visible from
26 the outside or the inside of the premises, include, for
27 example, neons, illuminated signs, clocks, table lamps,
28 mirrors, tap handles, decalcomanias, window painting,
29 window trim, and spirits or wine lists and menus. All
30 permanent inside signs in place and in use at any one
31 time shall cost in the aggregate not more than $2000 per
32 manufacturer. A permanent inside sign must include the
33 manufacturer's name, brand name, trade name, slogans,
34 markings, trademark, or other symbol commonly associated
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1 with and generally used in identifying the product.
2 However, permanent inside signs may not include names,
3 slogans, markings, or logos that relate to the retailer.
4 For the purpose of this subpart (iii), all permanent
5 inside signs may be displayed in an adjacent courtyard or
6 patio commonly referred to as a "beer garden" that is a
7 part of the retailer's licensed premises.
8 (iv) Temporary inside signs shall include, for
9 example, lighted chalk boards, acrylic table tent
10 beverage or hors d'oeuvre list holders, banners, flags,
11 pennants, streamers, and inside advertising materials
12 such as posters, placards, bowling sheets, table tents,
13 inserts for acrylic table tent beverage or hors d'oeuvre
14 list holders, sports schedules, or similar printed or
15 illustrated materials; however, such items, for example,
16 as coasters, trays, napkins, and cups may not be provided
17 to retailers. All temporary inside signs and inside
18 advertising materials in place and in use at any one time
19 shall cost in the aggregate not more than $325 per
20 manufacturer. Nothing in this subpart (iv) prohibits a
21 distributor or importing distributor from paying the cost
22 of printing or creating any temporary inside banner or
23 inserts for acrylic table tent beverage or hors d'oeuvre
24 list holders for a retail licensee, provided that the
25 primary purpose for the banner or insert is to highlight,
26 promote, or advertise the product. For the purpose of
27 this subpart (iv), all temporary inside signs and inside
28 advertising materials may be displayed in an adjacent
29 courtyard or patio commonly referred to as a "beer
30 garden" that is a part of the retailer's licensed
31 premises.
32 A "cost adjustment factor" shall be used to periodically
33 update the dollar limitations prescribed in subparts (i),
34 (iii), and (iv). The Commission shall establish the adjusted
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1 dollar limitation on an annual basis beginning in January,
2 1997. The term "cost adjustment factor" means a percentage
3 equal to the change in the Bureau of Labor Statistics
4 Consumer Price Index or 5%, whichever is greater. The
5 restrictions contained in this Section 6-6 do not apply to
6 signs, or promotional or advertising materials furnished by
7 manufacturers, distributors or importing distributors to a
8 government owned or operated facility holding a retailer's
9 license as described in Section 6-5.
10 No distributor or importing distributor shall directly or
11 indirectly or through a subsidiary or affiliate, or by any
12 officer, director or firm of such manufacturer, distributor
13 or importing distributor, furnish, give, lend or rent,
14 install, repair or maintain, to or for any retail licensee in
15 this State, any signs or inside advertising materials
16 described in subparts (i), (ii), (iii), or (iv) of this
17 Section except as the agent for or on behalf of a
18 manufacturer, provided that the total cost of any signs and
19 inside advertising materials including but not limited to
20 labor, erection, installation and permit fees shall be paid
21 by the manufacturer whose product or products said signs, and
22 inside advertising materials advertise and except as follows:
23 A distributor or importing distributor may purchase from
24 or enter into a written agreement with a manufacturer or a
25 manufacturer's designated supplier and such manufacturer or
26 the manufacturer's designated supplier may sell or enter into
27 an agreement to sell to a distributor or importing
28 distributor permitted signs and advertising materials
29 described in subparts (ii), (iii), or (iv) of this Section
30 for the purpose of furnishing, giving, lending, renting,
31 installing, repairing, or maintaining such signs or
32 advertising materials to or for any retail licensee in this
33 State. Any purchase by a distributor or importing
34 distributor from a manufacturer or a manufacturer's
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1 designated supplier shall be voluntary and the manufacturer
2 may not require the distributor or the importing distributor
3 to purchase signs or advertising materials from the
4 manufacturer or the manufacturer's designated supplier.
5 A distributor or importing distributor shall be deemed
6 the owner of such signs or advertising materials purchased
7 from a manufacturer or a manufacturer's designated supplier.
8 The provisions of this amendatory Act of 1997 concerning
9 signs or advertising materials delivered by a manufacturer to
10 a distributor or importing distributor shall apply only to
11 signs or advertising materials delivered on or after the
12 effective date of this amendatory Act of 1997 herein
13 provided.
14 No person engaged in the business of manufacturing,
15 importing or distributing alcoholic liquors shall, directly
16 or indirectly, pay for, or advance, furnish, or lend money
17 for the payment of any license for another. Any licensee who
18 shall permit or assent, or be a party in any way to any
19 violation or infringement of the provisions of this Section
20 shall be deemed guilty of a violation of this Act, and any
21 money loaned contrary to a provision of this Act shall not be
22 recovered back, or any note, mortgage or other evidence of
23 indebtedness, or security, or any lease or contract obtained
24 or made contrary to this Act shall be unenforceable and void.
25 This Section shall not apply to airplane licensees
26 exercising powers provided in paragraph (i) of Section 5-1 of
27 this Act.
28 (Source: P.A. 89-238, eff. 8-4-95; 89-529, eff. 7-19-96.)
29 Section 10. The Beer Industry Fair Dealing Act is
30 amended by changing Sections 1.1 and 5 as follows:
31 (815 ILCS 720/1.1) (from Ch. 43, par. 301.1)
32 Sec. 1.1. As used in this Act:
HB0903 Enrolled -7- LRB9000875LDdv
1 (1) "Beer" means a beverage obtained by the alcoholic
2 fermentation of an infusion or concoction of barley, or other
3 grain, malt, and hops in water, and includes, among other
4 things, beer, ale, stout, lager beer, porter and the like.
5 For purposes of this Act only, the term "beer" shall also
6 include malt beverage products containing less than one-half
7 of 1% of alcohol by volume and marketed for adult consumption
8 as an alternative beverage to beer.
9 (2) "Agreement" means any contract, agreement, or
10 arrangement, whether expressed or implied, whether oral or
11 written, for a definite or indefinite period between a brewer
12 and a wholesaler pursuant to which a wholesaler has been
13 granted the right to purchase, resell, and distribute as
14 wholesaler or master distributor any brand or brands of beer
15 offered by a brewer. The agreement between a brewer and
16 wholesaler shall not be considered a franchise relationship.
17 (3) "Wholesaler" or "beer wholesaler" means any person,
18 other than a manufacturer licensed under The Liquor Control
19 Act of 1934, who is engaged in this State in purchasing,
20 storing, possessing or warehousing any alcoholic liquors for
21 resale or reselling at wholesale, whether within or without
22 this State.
23 (4) "Brewer" means a person who is engaged in the
24 manufacture of beer, a master distributor as defined in this
25 Section, a successor brewer as defined in this Section, a
26 non-resident dealer under the provisions of the Liquor
27 Control Act of 1934, a foreign importer under the provisions
28 of the Liquor Control Act of 1934, or a person who owns or
29 controls the trademark, brand, or name of beer.
30 (5) "Master Distributor" means a person who, in addition
31 to being a wholesaler, acts in the same or similar capacity
32 as a brewer or outside seller of one or more brands of beer
33 to other wholesalers on a regular basis in the normal course
34 of business.
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1 (6) "Successor Brewer" means any person who in any way
2 obtains the distribution rights that a brewer or master
3 distributor once had to manufacture or distribute a brand or
4 brands of beer whether by merger, purchase of corporate
5 shares, purchase of assets, or any other arrangement.
6 (7) "Person" means a natural person, partnership,
7 corporation, trust, agency, or other form of business
8 enterprise. Person also includes heirs, assigns, personal
9 representatives and guardians.
10 (8) "Territory" or "sales territory" means the
11 geographic area of primary sales responsibility designated by
12 an agreement between a wholesaler and brewer for any brand or
13 brands of the brewer.
14 (9) "Good cause" exists if the wholesaler or affected
15 party has failed to comply with essential and reasonable
16 requirements imposed upon the wholesaler or affected party by
17 the agreement. The requirements may not be discriminating
18 either by their terms or in the methods of their enforcement
19 as compared with requirements imposed on other similarly
20 situated wholesalers by the brewer. The requirements may not
21 be inconsistent with this Act or in violation of any law or
22 regulation.
23 (10) "Good faith" means honesty in fact and the
24 observance of reasonable commercial standards of fair dealing
25 in the trade as defined and interpreted under Section 2-103
26 of the Uniform Commercial Code.
27 (11) "Reasonable standards and qualifications" means
28 those criteria applied by the brewer to similarly situated
29 wholesalers during a period of 24 months before the proposed
30 change in manager or successor manager of the wholesaler's
31 business.
32 (12) "Affected party" means a wholesaler, brewer, master
33 distributor, successor brewer, or any person that is a party
34 to an agreement.
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1 (13) "Signs" means signs described in Section 6-6 of the
2 Liquor Control Act of 1934.
3 (14) "Advertising materials" means advertising materials
4 described in Section 6-6 of the Liquor Control Act of 1934.
5 (Source: P.A. 88-410; 89-83, eff. 6-30-95.)
6 (815 ILCS 720/5) (from Ch. 43, par. 305)
7 Sec. 5. Prohibited conduct. No brewer shall:
8 (1) Induce or coerce, or attempt to induce or
9 coerce, any wholesaler to engage in any illegal act or
10 course of conduct either by threatening to amend, modify,
11 cancel, terminate, or refuse to renew any agreement
12 existing between the brewer and the wholesaler, or by any
13 other means.
14 (2) Require a wholesaler to assent to any
15 unreasonable requirement, condition, understanding or
16 term or an agreement prohibiting a wholesaler from
17 selling the product of any other brewer or brewers.
18 (3) Directly or indirectly fix or maintain the
19 price at which a wholesaler may resell beer.
20 (4) Fail to provide to each wholesaler of its
21 brands a written contract which embodies the brewer's
22 agreement with its wholesalers and conforms to the
23 provisions of this Act.
24 (5) Require any wholesaler to accept delivery of
25 any beer, signs, advertising materials, or any other item
26 or commodity which has not been ordered by the
27 wholesaler, or require any wholesaler to accept a common
28 carrier for delivery of beer into this State unless the
29 wholesaler consents to the common carrier. In the event
30 a brewer adopts a uniform practice of delivering beer
31 into this State to the premises of all licensed
32 wholesalers, the brewer may select the common carrier in
33 this State.
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1 (6) Require a wholesaler without the wholesaler's
2 approval to participate in an arrangement for the payment
3 or crediting by an electronic fund transfer transaction
4 for any item or commodity other than beer or to access a
5 wholesaler's account for any item or commodity other than
6 beer.
7 (7) Require a wholesaler to assent to any
8 requirement prohibiting the wholesaler from disposing,
9 after notice to the brewer, of a product which has been
10 deemed salvageable by a local or State health authority.
11 Nothing herein shall prohibit the brewer from having the
12 first right to purchase the salvageable product from the
13 wholesaler at a price not to exceed the original cost of
14 the product or to subsequently repurchase the product
15 from the insurance company or salvage company.
16 (8) Refuse to approve or require a wholesaler to
17 terminate a manager or successor manager without good
18 cause. A brewer has good cause only if the person
19 designated as manager or successor manager by the
20 wholesaler fails to meet reasonable standards and
21 qualifications.
22 (9) Present an agreement to a wholesaler that
23 attempts to waive compliance with any provision of this
24 Act or that requires the wholesaler to waive compliance
25 with any provision of this Act.
26 (10) Terminate or attempt to terminate an agreement
27 on the basis that the wholesaler refuses to purchase
28 signs or advertising materials or any quantity or types
29 thereof.
30 (11) Discriminate against a wholesaler who has
31 entered into a contract relative to signs or advertising
32 materials by not making signs or advertising materials or
33 any quantity or types thereof available to the wholesaler
34 when the brewer makes available such signs or advertising
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1 materials to other similarly situated wholesalers in this
2 State.
3 No brewer who, pursuant to an agreement with a wholesaler
4 which does not violate antitrust laws, has designated a sales
5 territory for which the wholesaler is primarily responsible
6 or in which the wholesaler is required to concentrate its
7 efforts, shall enter into an agreement with any other
8 wholesaler for the purpose of establishing an additional
9 wholesaler for the brewer's brand or brands in all or part of
10 the same territory.
11 No wholesaler who, pursuant to an agreement is granted a
12 sales territory for which it shall be primarily responsible
13 or in which it is required to concentrate its efforts, shall
14 make any sale or delivery of beer to any retail licensee
15 whose place of business is not within the territory granted
16 to the wholesaler.
17 (Source: P.A. 88-410; 89-83, eff. 6-30-95.)
18 Section 99. Effective date. This Act takes effect upon
19 becoming law.