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90_HB0903sam001
LRB9000875LDdvam01
1 AMENDMENT TO HOUSE BILL 903
2 AMENDMENT NO. . Amend House Bill 903 by replacing
3 the title with the following:
4 "AN ACT in relation to alcoholic liquor, amending named
5 Acts."; and
6 by replacing everything after the enacting clause with the
7 following:
8 "Section 5. The Liquor Control Act of 1934 is amended by
9 changing Section 6-6 as follows:
10 (235 ILCS 5/6-6) (from Ch. 43, par. 123)
11 Sec. 6-6. Except as otherwise provided in this Act no
12 manufacturer or distributor or importing distributor shall,
13 directly, or indirectly, sell, supply, furnish, give or pay
14 for, or loan or lease, any furnishing, fixture or equipment
15 on the premises of a place of business of another licensee
16 authorized under this Act to sell alcoholic liquor at retail,
17 either for consumption on or off the premises, nor shall he
18 or she, directly or indirectly, pay for any such license, or
19 advance, furnish, lend or give money for payment of such
20 license, or purchase or become the owner of any note,
21 mortgage, or other evidence of indebtedness of such licensee
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1 or any form of security therefor, nor shall such
2 manufacturer, or distributor, or importing distributor,
3 directly or indirectly, be interested in the ownership,
4 conduct or operation of the business of any licensee
5 authorized to sell alcoholic liquor at retail, nor shall any
6 manufacturer, or distributor, or importing distributor be
7 interested directly or indirectly or as owner or part owner
8 of said premises or as lessee or lessor thereof, in any
9 premises upon which alcoholic liquor is sold at retail.
10 No manufacturer or distributor or importing distributor
11 shall, directly or indirectly or through a subsidiary or
12 affiliate, or by any officer, director or firm of such
13 manufacturer, distributor or importing distributor, furnish,
14 give, lend or rent, install, repair or maintain, to or for
15 any retail licensee in this State, any signs or inside
16 advertising materials except as provided in this Section and
17 Section 6-5. With respect to retail licensees, other than any
18 government owned or operated auditorium, exhibition hall,
19 recreation facility or other similar facility holding a
20 retailer's license as described in Section 6-5, a
21 manufacturer, distributor, or importing distributor may
22 furnish, give, lend or rent and erect, install, repair and
23 maintain to or for any retail licensee, for use at any one
24 time in or about or in connection with a retail establishment
25 on which the products of the manufacturer, distributor or
26 importing distributor are sold, the following signs and
27 inside advertising materials as authorized in subparts (i),
28 (ii), (iii), and (iv):
29 (i) Permanent outside signs shall be limited to one
30 outside sign, per brand, in place and in use at any one
31 time, costing not more than $893, exclusive of erection,
32 installation, repair and maintenance costs, and permit
33 fees and shall bear only the manufacturer's name, brand
34 name, trade name, slogans, markings, trademark, or other
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1 symbols commonly associated with and generally used in
2 identifying the product.
3 (ii) Temporary outside signs shall be limited to
4 one temporary outside sign per brand. Examples of
5 temporary outside signs are banners, flags, pennants,
6 streamers, and other items of a temporary and
7 non-permanent nature. Each temporary outside sign must
8 include the manufacturer's name, brand name, trade name,
9 slogans, markings, trademark, or other symbol commonly
10 associated with and generally used in identifying the
11 product. Temporary outside signs may also include, for
12 example, the product, price, packaging, date or dates of
13 a promotion and an announcement of a retail licensee's
14 specific sponsored event, if the temporary outside sign
15 is intended to promote a product, and provided that the
16 announcement of the retail licensee's event and the
17 product promotion are held simultaneously. However,
18 temporary outside signs may not include names, slogans,
19 markings, or logos that relate to the retailer. Nothing
20 in this subpart (ii) shall prohibit a distributor or
21 importing distributor from bearing the cost of creating
22 or printing a temporary outside sign for the retail
23 licensee's specific sponsored event or from bearing the
24 cost of creating or printing a temporary sign for a
25 retail licensee containing, for example, community
26 goodwill expressions, regional sporting event
27 announcements, or seasonal messages, provided that the
28 primary purpose of the temporary outside sign is to
29 highlight, promote, or advertise the product. In
30 addition, temporary outside signs provided by the
31 manufacturer to the distributor or importing distributor
32 may also include, for example, subject to the limitations
33 of this Section, preprinted community goodwill
34 expressions, sporting event announcements, seasonal
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1 messages, and manufacturer promotional announcements.
2 However, a distributor or importing distributor shall not
3 bear the cost of such manufacturer preprinted signs.
4 (iii) Permanent inside signs, whether visible from
5 the outside or the inside of the premises, include, for
6 example, neons, illuminated signs, clocks, table lamps,
7 mirrors, tap handles, decalcomanias, window painting,
8 window trim, and spirits or wine lists and menus. All
9 permanent inside signs in place and in use at any one
10 time shall cost in the aggregate not more than $2000 per
11 manufacturer. A permanent inside sign must include the
12 manufacturer's name, brand name, trade name, slogans,
13 markings, trademark, or other symbol commonly associated
14 with and generally used in identifying the product.
15 However, permanent inside signs may not include names,
16 slogans, markings, or logos that relate to the retailer.
17 For the purpose of this subpart (iii), all permanent
18 inside signs may be displayed in an adjacent courtyard or
19 patio commonly referred to as a "beer garden" that is a
20 part of the retailer's licensed premises.
21 (iv) Temporary inside signs shall include, for
22 example, lighted chalk boards, acrylic table tent
23 beverage or hors d'oeuvre list holders, banners, flags,
24 pennants, streamers, and inside advertising materials
25 such as posters, placards, bowling sheets, table tents,
26 inserts for acrylic table tent beverage or hors d'oeuvre
27 list holders, sports schedules, or similar printed or
28 illustrated materials; however, such items, for example,
29 as coasters, trays, napkins, and cups may not be provided
30 to retailers. All temporary inside signs and inside
31 advertising materials in place and in use at any one time
32 shall cost in the aggregate not more than $325 per
33 manufacturer. Nothing in this subpart (iv) prohibits a
34 distributor or importing distributor from paying the cost
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1 of printing or creating any temporary inside banner or
2 inserts for acrylic table tent beverage or hors d'oeuvre
3 list holders for a retail licensee, provided that the
4 primary purpose for the banner or insert is to highlight,
5 promote, or advertise the product. For the purpose of
6 this subpart (iv), all temporary inside signs and inside
7 advertising materials may be displayed in an adjacent
8 courtyard or patio commonly referred to as a "beer
9 garden" that is a part of the retailer's licensed
10 premises.
11 A "cost adjustment factor" shall be used to periodically
12 update the dollar limitations prescribed in subparts (i),
13 (iii), and (iv). The Commission shall establish the adjusted
14 dollar limitation on an annual basis beginning in January,
15 1997. The term "cost adjustment factor" means a percentage
16 equal to the change in the Bureau of Labor Statistics
17 Consumer Price Index or 5%, whichever is greater. The
18 restrictions contained in this Section 6-6 do not apply to
19 signs, or promotional or advertising materials furnished by
20 manufacturers, distributors or importing distributors to a
21 government owned or operated facility holding a retailer's
22 license as described in Section 6-5.
23 No distributor or importing distributor shall directly or
24 indirectly or through a subsidiary or affiliate, or by any
25 officer, director or firm of such manufacturer, distributor
26 or importing distributor, furnish, give, lend or rent,
27 install, repair or maintain, to or for any retail licensee in
28 this State, any signs or inside advertising materials
29 described in subparts (i), (ii), (iii), or (iv) of this
30 Section except as the agent for or on behalf of a
31 manufacturer, provided that the total cost of any signs and
32 inside advertising materials including but not limited to
33 labor, erection, installation and permit fees shall be paid
34 by the manufacturer whose product or products said signs, and
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1 inside advertising materials advertise and except as follows:
2 A distributor or importing distributor may purchase from
3 or enter into a written agreement with a manufacturer or a
4 manufacturer's designated supplier and such manufacturer or
5 the manufacturer's designated supplier may sell or enter into
6 an agreement to sell to a distributor or importing
7 distributor permitted signs and advertising materials
8 described in subparts (ii), (iii), or (iv) of this Section
9 for the purpose of furnishing, giving, lending, renting,
10 installing, repairing, or maintaining such signs or
11 advertising materials to or for any retail licensee in this
12 State. Any purchase by a distributor or importing
13 distributor from a manufacturer or a manufacturer's
14 designated supplier shall be voluntary and the manufacturer
15 may not require the distributor or the importing distributor
16 to purchase signs or advertising materials from the
17 manufacturer or the manufacturer's designated supplier.
18 A distributor or importing distributor shall be deemed
19 the owner of such signs or advertising materials purchased
20 from a manufacturer or a manufacturer's designated supplier.
21 The provisions of this amendatory Act of 1997 concerning
22 signs or advertising materials delivered by a manufacturer to
23 a distributor or importing distributor shall apply only to
24 signs or advertising materials delivered on or after the
25 effective date of this amendatory Act of 1997 herein
26 provided.
27 No person engaged in the business of manufacturing,
28 importing or distributing alcoholic liquors shall, directly
29 or indirectly, pay for, or advance, furnish, or lend money
30 for the payment of any license for another. Any licensee who
31 shall permit or assent, or be a party in any way to any
32 violation or infringement of the provisions of this Section
33 shall be deemed guilty of a violation of this Act, and any
34 money loaned contrary to a provision of this Act shall not be
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1 recovered back, or any note, mortgage or other evidence of
2 indebtedness, or security, or any lease or contract obtained
3 or made contrary to this Act shall be unenforceable and void.
4 This Section shall not apply to airplane licensees
5 exercising powers provided in paragraph (i) of Section 5-1 of
6 this Act.
7 (Source: P.A. 89-238, eff. 8-4-95; 89-529, eff. 7-19-96.)
8 Section 10. The Beer Industry Fair Dealing Act is
9 amended by changing Sections 1.1 and 5 as follows:
10 (815 ILCS 720/1.1) (from Ch. 43, par. 301.1)
11 Sec. 1.1. As used in this Act:
12 (1) "Beer" means a beverage obtained by the alcoholic
13 fermentation of an infusion or concoction of barley, or other
14 grain, malt, and hops in water, and includes, among other
15 things, beer, ale, stout, lager beer, porter and the like.
16 For purposes of this Act only, the term "beer" shall also
17 include malt beverage products containing less than one-half
18 of 1% of alcohol by volume and marketed for adult consumption
19 as an alternative beverage to beer.
20 (2) "Agreement" means any contract, agreement, or
21 arrangement, whether expressed or implied, whether oral or
22 written, for a definite or indefinite period between a brewer
23 and a wholesaler pursuant to which a wholesaler has been
24 granted the right to purchase, resell, and distribute as
25 wholesaler or master distributor any brand or brands of beer
26 offered by a brewer. The agreement between a brewer and
27 wholesaler shall not be considered a franchise relationship.
28 (3) "Wholesaler" or "beer wholesaler" means any person,
29 other than a manufacturer licensed under The Liquor Control
30 Act of 1934, who is engaged in this State in purchasing,
31 storing, possessing or warehousing any alcoholic liquors for
32 resale or reselling at wholesale, whether within or without
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1 this State.
2 (4) "Brewer" means a person who is engaged in the
3 manufacture of beer, a master distributor as defined in this
4 Section, a successor brewer as defined in this Section, a
5 non-resident dealer under the provisions of the Liquor
6 Control Act of 1934, a foreign importer under the provisions
7 of the Liquor Control Act of 1934, or a person who owns or
8 controls the trademark, brand, or name of beer.
9 (5) "Master Distributor" means a person who, in addition
10 to being a wholesaler, acts in the same or similar capacity
11 as a brewer or outside seller of one or more brands of beer
12 to other wholesalers on a regular basis in the normal course
13 of business.
14 (6) "Successor Brewer" means any person who in any way
15 obtains the distribution rights that a brewer or master
16 distributor once had to manufacture or distribute a brand or
17 brands of beer whether by merger, purchase of corporate
18 shares, purchase of assets, or any other arrangement.
19 (7) "Person" means a natural person, partnership,
20 corporation, trust, agency, or other form of business
21 enterprise. Person also includes heirs, assigns, personal
22 representatives and guardians.
23 (8) "Territory" or "sales territory" means the
24 geographic area of primary sales responsibility designated by
25 an agreement between a wholesaler and brewer for any brand or
26 brands of the brewer.
27 (9) "Good cause" exists if the wholesaler or affected
28 party has failed to comply with essential and reasonable
29 requirements imposed upon the wholesaler or affected party by
30 the agreement. The requirements may not be discriminating
31 either by their terms or in the methods of their enforcement
32 as compared with requirements imposed on other similarly
33 situated wholesalers by the brewer. The requirements may not
34 be inconsistent with this Act or in violation of any law or
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1 regulation.
2 (10) "Good faith" means honesty in fact and the
3 observance of reasonable commercial standards of fair dealing
4 in the trade as defined and interpreted under Section 2-103
5 of the Uniform Commercial Code.
6 (11) "Reasonable standards and qualifications" means
7 those 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.
11 (12) "Affected party" means a wholesaler, brewer, master
12 distributor, successor brewer, or any person that is a party
13 to an agreement.
14 (13) "Signs" means signs described in Section 6-6 of the
15 Liquor Control Act of 1934.
16 (14) "Advertising materials" means advertising materials
17 described in Section 6-6 of the Liquor Control Act of 1934.
18 (Source: P.A. 88-410; 89-83, eff. 6-30-95.)
19 (815 ILCS 720/5) (from Ch. 43, par. 305)
20 Sec. 5. Prohibited conduct. No brewer shall:
21 (1) Induce or coerce, or attempt to induce or
22 coerce, any wholesaler to engage in any illegal act or
23 course of conduct either by threatening to amend, modify,
24 cancel, terminate, or refuse to renew any agreement
25 existing between the brewer and the wholesaler, or by any
26 other means.
27 (2) Require a wholesaler to assent to any
28 unreasonable requirement, condition, understanding or
29 term or an agreement prohibiting a wholesaler from
30 selling the product of any other brewer or brewers.
31 (3) Directly or indirectly fix or maintain the
32 price at which a wholesaler may resell beer.
33 (4) Fail to provide to each wholesaler of its
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1 brands a written contract which embodies the brewer's
2 agreement with its wholesalers and conforms to the
3 provisions of this Act.
4 (5) Require any wholesaler to accept delivery of
5 any beer, signs, advertising materials, or any other item
6 or commodity which has not been ordered by the
7 wholesaler, or require any wholesaler to accept a common
8 carrier for delivery of beer into this State unless the
9 wholesaler consents to the common carrier. In the event
10 a brewer adopts a uniform practice of delivering beer
11 into this State to the premises of all licensed
12 wholesalers, the brewer may select the common carrier in
13 this State.
14 (6) Require a wholesaler without the wholesaler's
15 approval to participate in an arrangement for the payment
16 or crediting by an electronic fund transfer transaction
17 for any item or commodity other than beer or to access a
18 wholesaler's account for any item or commodity other than
19 beer.
20 (7) Require a wholesaler to assent to any
21 requirement prohibiting the wholesaler from disposing,
22 after notice to the brewer, of a product which has been
23 deemed salvageable by a local or State health authority.
24 Nothing herein shall prohibit the brewer from having the
25 first right to purchase the salvageable product from the
26 wholesaler at a price not to exceed the original cost of
27 the product or to subsequently repurchase the product
28 from the insurance company or salvage company.
29 (8) Refuse to approve or require a wholesaler to
30 terminate a manager or successor manager without good
31 cause. A brewer has good cause only if the person
32 designated as manager or successor manager by the
33 wholesaler fails to meet reasonable standards and
34 qualifications.
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1 (9) Present an agreement to a wholesaler that
2 attempts to waive compliance with any provision of this
3 Act or that requires the wholesaler to waive compliance
4 with any provision of this Act.
5 (10) Terminate or attempt to terminate an agreement
6 on the basis that the wholesaler refuses to purchase
7 signs or advertising materials or any quantity or types
8 thereof.
9 (11) Discriminate against a wholesaler who has
10 entered into a contract relative to signs or advertising
11 materials by not making signs or advertising materials or
12 any quantity or types thereof available to the wholesaler
13 when the brewer makes available such signs or advertising
14 materials to other similarly situated wholesalers in this
15 State.
16 No brewer who, pursuant to an agreement with a wholesaler
17 which does not violate antitrust laws, has designated a sales
18 territory for which the wholesaler is primarily responsible
19 or in which the wholesaler is required to concentrate its
20 efforts, shall enter into an agreement with any other
21 wholesaler for the purpose of establishing an additional
22 wholesaler for the brewer's brand or brands in all or part of
23 the same territory.
24 No wholesaler who, pursuant to an agreement is granted a
25 sales territory for which it shall be primarily responsible
26 or in which it is required to concentrate its efforts, shall
27 make any sale or delivery of beer to any retail licensee
28 whose place of business is not within the territory granted
29 to the wholesaler.
30 (Source: P.A. 88-410; 89-83, eff. 6-30-95.)
31 Section 99. Effective date. This act takes effect upon
32 becoming law.".