Bill Text: IL SB0996 | 2019-2020 | 101st General Assembly | Engrossed

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Bill Title: Amends the Beer Industry Fair Dealing Act. Provides that a brewer may cancel an agreement with a wholesaler without notice, unless otherwise provided by agreement, if there has been a revocation or suspension of a license or permit to sell beer in this State for a period of not less than 30 days which has a material and adverse effect upon the wholesaler's ability to sell beer in this State. Effective immediately.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Failed) 2021-01-13 - Session Sine Die [SB0996 Detail]

Download: Illinois-2019-SB0996-Engrossed.html

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SB0996 Engrossed LRB101 06594 JLS 51621 b
AN ACT concerning business.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Beer Industry Fair Dealing Act is amended by
changing Section 3 as follows:
(815 ILCS 720/3) (from Ch. 43, par. 303)
Sec. 3. Termination and notice of cancellation.
(1) Except as provided in subsection (3) of this Section,
no brewer or beer wholesaler may cancel, fail to renew, or
otherwise terminate an agreement unless the brewer or
wholesaler furnishes prior notification to the affected party
in accordance with subsection (2).
(2) The notification required under subsection (1) shall be
in writing and sent to the affected party by certified mail not
less than 90 days before the date on which the agreement will
be cancelled, not renewed, or otherwise terminated. The
notification shall contain (a) a statement of intention to
cancel, failure to renew, or otherwise terminate an agreement,
(b) a complete statement of reasons therefor therefore,
including all data and documentation necessary to fully apprise
the wholesaler of the reasons for the action, and (c) the date
on which the action shall take effect.
(3) A brewer may cancel, fail to renew, or otherwise

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terminate an agreement without furnishing any prior
notification for any of the following reasons:
(A) Wholesaler's failure to pay any account when due
and upon demand by the brewer for such payment, in
accordance with agreed payment terms.
(B) Wholesaler's assignment for the benefit of
creditors, or similar disposition, of substantially all of
the assets of such party's business.
(C) Insolvency of wholesaler, or the institution of
proceedings in bankruptcy by or against the wholesaler.
(D) Dissolution or liquidation of the wholesaler.
(E) Wholesaler's conviction of, or plea of guilty or no
contest, to a charge of violating a law or regulation, in
this State which materially and adversely affects the
ability of either party to continue to sell beer in this
State, or, unless otherwise provided by agreement, the
revocation or suspension of a license or permit to sell
beer in this State for a period of not less than 30 days
which has a material and adverse effect on the wholesaler's
ability to sell beer in this State.
(F) Any attempted transfer of business assets of the
wholesaler, voting stock of the wholesaler, voting stock of
any parent corporation of the wholesaler, or any change in
the beneficial ownership or control of any entity without
obtaining the prior consent or approval as provided for
under Section 6 unless the brewer neither approves,

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consents to, nor objects to the transfer within 60 days
after receiving all requested information from the
wholesaler regarding the proposed purchase, in which event
the brewer shall be deemed to have consented to the
proposed transaction.
(G) Fraudulent conduct by the wholesaler in its
dealings with the brewer.
(Source: P.A. 88-410; revised 10-9-18.)
Section 99. Effective date. This Act takes effect upon
becoming law.