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91_HB4700
LRB9113190LDpr
1 AN ACT concerning beverage distribution, 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 Illinois Wine and Spirits Industry Fair
6 Dealing Act of 1999 is amended by changing Section 30 as
7 follows:
8 (815 ILCS 725/30)
9 Sec. 30. Application to arbitration agreements. An
10 agreement between a supplier that is not an Illinois winery
11 or a winery that has annual case sales in the State of
12 Illinois less than or equal to 10,000 cases per year and a
13 distributor providing for binding arbitration of disputes
14 shall be valid and enforceable in accordance with the Federal
15 Arbitration Act. If In the event that a dispute concerning
16 the existence of good cause for a termination, cancellation,
17 nonrenewal, or other harm is resolved through arbitration,
18 the definition of good cause and the substantive provisions
19 of this Act shall apply.
20 (Source: P.A. 91-2, eff. 5-21-99.)
21 Section 10. The Soft Drink Industry Fair Dealing Act is
22 amended by changing Section 30 as follows:
23 (815 ILCS 730/30)
24 Sec. 30. Reasonable compensation.
25 (a) A Any supplier that (i) cancels, fails to renew, or
26 otherwise terminates any distribution agreement, or (ii)
27 unlawfully denies approval of or unreasonably withholds
28 consent to any assignment, transfer, or sale of a
29 distributor's business, assets, stock, or other ownership
-2- LRB9113190LDpr
1 interest in a distributor, shall (i) pay the distributor the
2 fair market value of that portion of the distributor's
3 business that the supplier has cancelled, failed to renew, or
4 otherwise terminated, or (ii) pay the distributor or other
5 aggrieved person the fair market value of that portion of the
6 business, assets, stock, or other ownership interest sought
7 to be assigned, transferred, or sold. Fair market value shall
8 include, but shall not be limited to, the value of the
9 goodwill associated with the business, assets, stock, or
10 other ownership interest valued hereunder, and such fair
11 market value shall be determined without regard to any
12 marketability, minority interest, or other similar discount
13 or reduction.
14 (b) If a supplier and a distributor or other aggrieved
15 person are unable to agree on the reasonable compensation to
16 be paid under subsection (a), any such party may maintain a
17 civil suit as provided in Section 35 of this Act or the
18 matter may, by mutual agreement of the parties, be submitted
19 to arbitration or mediation. Unless the parties otherwise
20 agree, the costs of arbitration shall be shared equally by
21 the parties.
22 (c) No distributorship agreement may require the
23 distributor to pay more than half the costs of arbitration or
24 mediation or require arbitration or mediation to be conducted
25 outside this State.
26 (Source: P.A. 91-3, eff. 5-21-99.)