Bill Summary for S 745 (2011-2012)

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Bill: BEER FRANCHISE LAW CLARIFICATIONS.

Summary date: 

May 23 2012
S.L. 2012-4

Bill Information:

View NCGA Bill Details2011-2012 Session
Senate Bill 745 (Public) Filed Tuesday, April 19, 2011
TO PRESERVE THE THREE TIER DISTRIBUTION SYSTEM FOR MALT BEVERAGES IN NORTH CAROLINA BY CLARIFYING PROVISIONS OF THE BEER FRANCHISE LAW TO PROVIDE: A FRANCHISE AGREEMENT APPLIES TO ALL SUPPLIER PRODUCTS UNDER THE SAME BRAND NAME; A WHOLESALER MUST SELL MALT BEVERAGES TO ALL RETAILERS IN ITS TERRITORY AT THE SAME PRICE AT THE TIME OF DELIVERY; PROHIBITED ACTS OF SUPPLIERS WITH RESPECT TO THEIR DEALINGS WITH WHOLESALERS; GOOD CAUSE FOR TERMINATION MAY NOT BE MODIFIED BY AN AGREEMENT THAT DEFINES GOOD CAUSE IN A MANNER DIFFERENT THAN PROVIDED BY STATE LAW; CERTAIN ACTS THAT DO NOT AMOUNT TO GOOD CAUSE FOR TERMINATION OF A FRANCHISE; REMEDIES FOR A SUPPLIER'S WRONGFUL TERMINATION OF A FRANCHISE; INCLUSION OF A WHOLESALER MERGER, THE FACTORS THAT MAY BE CONSIDERED BY THE SUPPLIER IN APPROVING A MERGER OR TRANSFER, AND REMEDIES FOR UNLAWFUL REFUSAL TO APPROVE A MERGER OR TRANSFER; THE BEER FRANCHISE LAW MAY NOT BE WAIVED BY AN AGREEMENT CONTRARY TO STATE LAW; AND MEDIATION OF DISPUTES ARISING UNDER THE BEER FRANCHISE LAW.
Intro. by Allran.

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Bill summary

House committee substitute makes the following changes to 3rd edition:
Section 1: (1) deletes previous amendments to GS 18B-1303(b); (2) clarifies amendments to GS 18B-1304(10) that the definition of “discriminate” for purposes of that subsection excludes granting more favorable freight and transportation costs and price promotions for special events under limited circumstances; (3) revises amendments to GS 18B-1305(a1) to provide that a brewery’s authorization to a wholesaler for distribution of its own malt beverage products reverts back to the brewery following the fifth business day after confirmed receipt of written notice of such reversion, and deletes requirement that reversion cannot take effect until brewery and wholesaler agree in writing on the fair market value of distribution rights; (4) deletes previous amendments to GS 18B-1306(b) concerning monetary damages for wrongfull termination; (5) revises amendments to GS 18B-1307 to combine language in previous new subsection (b1) into existing subsection (b) and to add provision in that subsection preserving supplier’s right to match and reassign to a designee the right to purchase an ownership interest subject to the limitation that that the price and conditions applicable to the purchase be the same as those proposed by the transferee; and (6) deletes previous amendments to GS 18B-1307(c) except to make technical and conforming changes to include reference to mergers.
Section 2: Adds new amendments to GS 18B-702(j) clarifying that the Alcoholic Beverage Control Commission may approve a local board general manager also serving as that local board’s finance officer by a grant of a waiver and that the Commission may grant more than one waiver to a local board.
Section 4: Revises the effective date to provide that amendments to GS 18B-1304 become effective October 1, 2012.
Makes other technical and conforming changes and renumbers Sections 3 and 4.