Bill Summary for S 130 (2011-2012)

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Bill: WINE DISTRIBUTION TERRITORIES.

Summary date: 

Mar 29 2011
S.L. 2011-73

Bill Information:

View NCGA Bill Details2011-2012 Session
Senate Bill 130 (Public) Filed Thursday, February 24, 2011
TO PRESERVE THE THREE-TIER DISTRIBUTION SYSTEM FOR WINE IN NORTH CAROLINA, TO PROHIBIT A WINE WHOLESALER FROM DISTRIBUTING WINE BEYOND ITS DESIGNATED SALES TERRITORY, AND TO CONFIRM THAT GOOD CAUSE FOR THE TERMINATION OF A WINE FRANCHISE DOES NOT INCLUDE A SUPPLIER’S DESIRE TO CONSOLIDATE ITS FRANCHISE OR DISTRIBUTION PATTERN.
Intro. by Brown, Allran, Blue.

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Bill summary

Senate committee substitute makes the following changes to 1st edition. Deletes proposed amendments to GS 18B-1200(b).
Amends GS 18B-1203 to: (1) specify that redesignation of sales territories after July 1, 2011, must be reported to the Alcohol Beverage Control (ABC) Commission within 30 days; and (2) specify that only upon request from a retail permit holder must each wholesaler make a good faith effort to make available any brand of wine the wholesaler is authorized to distribute in the territory.
Deletes proposed amendments to GS 18B-1204.
Amends GS 18B-1001(4) to specify that an off-premises unfortified wine permit authorizes the permittee to transfer unfortified wine, up to four times per calendar year, to another off-premises unfortified wine permittee that is under common ownership or control as the transferor. Specifies that a particular brand of wine may be transferred only if both the transferor and the transferee are located within the territory designated between the winery and the wholesaler on file with the ABC Commission. Directs transferor to provide certain notice of the transfer. Prohibits all other transfers of wine by off-premises unfortified wine permittees, and purchases of wine by a retail permittee form another retail permittee for the purpose of resale.
Amends GS 18B-1001(6) to specify that an off-premises fortified wine permit authorizes the permittee to transfer fortified wine, up to four times per calendar year, to another off-premises fortified wine permittee that is under common ownership or control as the transferor. Specifies that a particular brand of wine may be transferred only if both the transferor and the transferee are located within the territory designated between the winery and the wholesaler on file with the ABC Commission. Directs transferor to provide certain notice of the transfer. Prohibits all other transfers of wine by off-premises fortified wine permittees, and purchases of wine by a retail permittee form another retail permittee for the purpose of resale.
Makes conforming changes to title.