Public Act 90-0373 of the 90th General Assembly
Public Act 90-0373
HB0903 Enrolled LRB9000875LDdv
AN ACT in relation to alcoholic liquor, amending named
Acts.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Liquor Control Act of 1934 is amended by
changing Section 6-6 as follows:
(235 ILCS 5/6-6) (from Ch. 43, par. 123)
Sec. 6-6. Except as otherwise provided in this Act no
manufacturer or distributor or importing distributor shall,
directly, or indirectly, sell, supply, furnish, give or pay
for, or loan or lease, any furnishing, fixture or equipment
on the premises of a place of business of another licensee
authorized under this Act to sell alcoholic liquor at retail,
either for consumption on or off the premises, nor shall he
or she, directly or indirectly, pay for any such license, or
advance, furnish, lend or give money for payment of such
license, or purchase or become the owner of any note,
mortgage, or other evidence of indebtedness of such licensee
or any form of security therefor, nor shall such
manufacturer, or distributor, or importing distributor,
directly or indirectly, be interested in the ownership,
conduct or operation of the business of any licensee
authorized to sell alcoholic liquor at retail, nor shall any
manufacturer, or distributor, or importing distributor be
interested directly or indirectly or as owner or part owner
of said premises or as lessee or lessor thereof, in any
premises upon which alcoholic liquor is sold at retail.
No manufacturer or distributor or importing distributor
shall, directly or indirectly or through a subsidiary or
affiliate, or by any officer, director or firm of such
manufacturer, distributor or importing distributor, furnish,
give, lend or rent, install, repair or maintain, to or for
any retail licensee in this State, any signs or inside
advertising materials except as provided in this Section and
Section 6-5. With respect to retail licensees, other than any
government owned or operated auditorium, exhibition hall,
recreation facility or other similar facility holding a
retailer's license as described in Section 6-5, a
manufacturer, distributor, or importing distributor may
furnish, give, lend or rent and erect, install, repair and
maintain to or for any retail licensee, for use at any one
time in or about or in connection with a retail establishment
on which the products of the manufacturer, distributor or
importing distributor are sold, the following signs and
inside advertising materials as authorized in subparts (i),
(ii), (iii), and (iv):
(i) Permanent outside signs shall be limited to one
outside sign, per brand, in place and in use at any one
time, costing not more than $893, exclusive of erection,
installation, repair and maintenance costs, and permit
fees and shall bear only the manufacturer's name, brand
name, trade name, slogans, markings, trademark, or other
symbols commonly associated with and generally used in
identifying the product.
(ii) Temporary outside signs shall be limited to
one temporary outside sign per brand. Examples of
temporary outside signs are banners, flags, pennants,
streamers, and other items of a temporary and
non-permanent nature. Each temporary outside sign must
include the manufacturer's name, brand name, trade name,
slogans, markings, trademark, or other symbol commonly
associated with and generally used in identifying the
product. Temporary outside signs may also include, for
example, the product, price, packaging, date or dates of
a promotion and an announcement of a retail licensee's
specific sponsored event, if the temporary outside sign
is intended to promote a product, and provided that the
announcement of the retail licensee's event and the
product promotion are held simultaneously. However,
temporary outside signs may not include names, slogans,
markings, or logos that relate to the retailer. Nothing
in this subpart (ii) shall prohibit a distributor or
importing distributor from bearing the cost of creating
or printing a temporary outside sign for the retail
licensee's specific sponsored event or from bearing the
cost of creating or printing a temporary sign for a
retail licensee containing, for example, community
goodwill expressions, regional sporting event
announcements, or seasonal messages, provided that the
primary purpose of the temporary outside sign is to
highlight, promote, or advertise the product. In
addition, temporary outside signs provided by the
manufacturer to the distributor or importing distributor
may also include, for example, subject to the limitations
of this Section, preprinted community goodwill
expressions, sporting event announcements, seasonal
messages, and manufacturer promotional announcements.
However, a distributor or importing distributor shall not
bear the cost of such manufacturer preprinted signs.
(iii) Permanent inside signs, whether visible from
the outside or the inside of the premises, include, for
example, neons, illuminated signs, clocks, table lamps,
mirrors, tap handles, decalcomanias, window painting,
window trim, and spirits or wine lists and menus. All
permanent inside signs in place and in use at any one
time shall cost in the aggregate not more than $2000 per
manufacturer. A permanent inside sign must include the
manufacturer's name, brand name, trade name, slogans,
markings, trademark, or other symbol commonly associated
with and generally used in identifying the product.
However, permanent inside signs may not include names,
slogans, markings, or logos that relate to the retailer.
For the purpose of this subpart (iii), all permanent
inside signs may be displayed in an adjacent courtyard or
patio commonly referred to as a "beer garden" that is a
part of the retailer's licensed premises.
(iv) Temporary inside signs shall include, for
example, lighted chalk boards, acrylic table tent
beverage or hors d'oeuvre list holders, banners, flags,
pennants, streamers, and inside advertising materials
such as posters, placards, bowling sheets, table tents,
inserts for acrylic table tent beverage or hors d'oeuvre
list holders, sports schedules, or similar printed or
illustrated materials; however, such items, for example,
as coasters, trays, napkins, and cups may not be provided
to retailers. All temporary inside signs and inside
advertising materials in place and in use at any one time
shall cost in the aggregate not more than $325 per
manufacturer. Nothing in this subpart (iv) prohibits a
distributor or importing distributor from paying the cost
of printing or creating any temporary inside banner or
inserts for acrylic table tent beverage or hors d'oeuvre
list holders for a retail licensee, provided that the
primary purpose for the banner or insert is to highlight,
promote, or advertise the product. For the purpose of
this subpart (iv), all temporary inside signs and inside
advertising materials may be displayed in an adjacent
courtyard or patio commonly referred to as a "beer
garden" that is a part of the retailer's licensed
premises.
A "cost adjustment factor" shall be used to periodically
update the dollar limitations prescribed in subparts (i),
(iii), and (iv). The Commission shall establish the adjusted
dollar limitation on an annual basis beginning in January,
1997. The term "cost adjustment factor" means a percentage
equal to the change in the Bureau of Labor Statistics
Consumer Price Index or 5%, whichever is greater. The
restrictions contained in this Section 6-6 do not apply to
signs, or promotional or advertising materials furnished by
manufacturers, distributors or importing distributors to a
government owned or operated facility holding a retailer's
license as described in Section 6-5.
No distributor or importing distributor shall directly or
indirectly or through a subsidiary or affiliate, or by any
officer, director or firm of such manufacturer, distributor
or importing distributor, furnish, give, lend or rent,
install, repair or maintain, to or for any retail licensee in
this State, any signs or inside advertising materials
described in subparts (i), (ii), (iii), or (iv) of this
Section except as the agent for or on behalf of a
manufacturer, provided that the total cost of any signs and
inside advertising materials including but not limited to
labor, erection, installation and permit fees shall be paid
by the manufacturer whose product or products said signs, and
inside advertising materials advertise and except as follows:
A distributor or importing distributor may purchase from
or enter into a written agreement with a manufacturer or a
manufacturer's designated supplier and such manufacturer or
the manufacturer's designated supplier may sell or enter into
an agreement to sell to a distributor or importing
distributor permitted signs and advertising materials
described in subparts (ii), (iii), or (iv) of this Section
for the purpose of furnishing, giving, lending, renting,
installing, repairing, or maintaining such signs or
advertising materials to or for any retail licensee in this
State. Any purchase by a distributor or importing
distributor from a manufacturer or a manufacturer's
designated supplier shall be voluntary and the manufacturer
may not require the distributor or the importing distributor
to purchase signs or advertising materials from the
manufacturer or the manufacturer's designated supplier.
A distributor or importing distributor shall be deemed
the owner of such signs or advertising materials purchased
from a manufacturer or a manufacturer's designated supplier.
The provisions of this amendatory Act of 1997 concerning
signs or advertising materials delivered by a manufacturer to
a distributor or importing distributor shall apply only to
signs or advertising materials delivered on or after the
effective date of this amendatory Act of 1997 herein
provided.
No person engaged in the business of manufacturing,
importing or distributing alcoholic liquors shall, directly
or indirectly, pay for, or advance, furnish, or lend money
for the payment of any license for another. Any licensee who
shall permit or assent, or be a party in any way to any
violation or infringement of the provisions of this Section
shall be deemed guilty of a violation of this Act, and any
money loaned contrary to a provision of this Act shall not be
recovered back, or any note, mortgage or other evidence of
indebtedness, or security, or any lease or contract obtained
or made contrary to this Act shall be unenforceable and void.
This Section shall not apply to airplane licensees
exercising powers provided in paragraph (i) of Section 5-1 of
this Act.
(Source: P.A. 89-238, eff. 8-4-95; 89-529, eff. 7-19-96.)
Section 10. The Beer Industry Fair Dealing Act is
amended by changing Sections 1.1 and 5 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 and the like.
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, or
arrangement, 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.
(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 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.
(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
geographic area of primary sales responsibility designated by
an agreement between a wholesaler and brewer for any brand or
brands of the brewer.
(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. 88-410; 89-83, eff. 6-30-95.)
(815 ILCS 720/5) (from Ch. 43, par. 305)
Sec. 5. Prohibited conduct. No brewer shall:
(1) Induce or coerce, or attempt to induce or
coerce, any wholesaler to engage in any illegal act or
course of conduct either by threatening to amend, modify,
cancel, terminate, or refuse to renew any agreement
existing between the brewer and the wholesaler, or by any
other means.
(2) Require a wholesaler to assent to any
unreasonable requirement, condition, understanding or
term or an agreement prohibiting a wholesaler from
selling the product of any other brewer or brewers.
(3) Directly or indirectly fix or maintain the
price at which a wholesaler may resell beer.
(4) Fail to provide to each wholesaler of its
brands a written contract which embodies the brewer's
agreement with its wholesalers and conforms to the
provisions of this Act.
(5) Require any wholesaler to accept delivery of
any beer, signs, advertising materials, or any other item
or commodity which has not been ordered by the
wholesaler, or require any wholesaler to accept a common
carrier for delivery of beer into this State unless the
wholesaler consents to the common carrier. In the event
a brewer adopts a uniform practice of delivering beer
into this State to the premises of all licensed
wholesalers, the brewer may select the common carrier in
this State.
(6) Require a wholesaler without the wholesaler's
approval to participate in an arrangement for the payment
or crediting by an electronic fund transfer transaction
for any item or commodity other than beer or to access a
wholesaler's account for any item or commodity other than
beer.
(7) Require a wholesaler to assent to any
requirement prohibiting the wholesaler from disposing,
after notice to the brewer, of a product which has been
deemed salvageable by a local or State health authority.
Nothing herein shall prohibit the brewer from having the
first right to purchase the salvageable product from the
wholesaler at a price not to exceed the original cost of
the product or to subsequently repurchase the product
from the insurance company or salvage company.
(8) Refuse to approve or require a wholesaler to
terminate a manager or successor manager without good
cause. A brewer has good cause only if the person
designated as manager or successor manager by the
wholesaler fails to meet reasonable standards and
qualifications.
(9) Present an agreement to a wholesaler that
attempts to waive compliance with any provision of this
Act or that requires the wholesaler to waive compliance
with any provision of this Act.
(10) Terminate or attempt to terminate an agreement
on the basis that the wholesaler refuses to purchase
signs or advertising materials or any quantity or types
thereof.
(11) Discriminate against a wholesaler who has
entered into a contract relative to signs or advertising
materials by not making signs or advertising materials or
any quantity or types thereof available to the wholesaler
when the brewer makes available such signs or advertising
materials to other similarly situated wholesalers in this
State.
No brewer who, pursuant to an agreement with a wholesaler
which does not violate antitrust laws, has designated a sales
territory for which the wholesaler is primarily responsible
or in which the wholesaler is required to concentrate its
efforts, shall enter into an agreement with any other
wholesaler for the purpose of establishing an additional
wholesaler for the brewer's brand or brands in all or part of
the same territory.
No wholesaler who, pursuant to an agreement is granted a
sales territory for which it shall be primarily responsible
or in which it is required to concentrate its efforts, shall
make any sale or delivery of beer to any retail licensee
whose place of business is not within the territory granted
to the wholesaler.
(Source: P.A. 88-410; 89-83, eff. 6-30-95.)
Section 99. Effective date. This Act takes effect upon
becoming law.