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91_HB4700eng HB4700 Engrossed 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. IfIn the event thata 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) AAnysupplier 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 HB4700 Engrossed -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.)