Bill Summary for S 745 (2011-2012)
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| View NCGA Bill Details | 2011-2012 Session |
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
Senate committee substitute makes the following changes to 1st edition. Adds new subsection (a1) to GS 18B-1305 providing for the termination of a franchise agreement by a small brewery. Makes a conforming change to GS 18B-1304.
Amends GS 18B-1304 to create an exception to the provision that makes it unlawful for a supplier, an officer, agent, or representative of a supplier to prohibit a wholesaler from distributing the product of any other supplier. Makes it unlawful for a supplier, an officer, agent, or representative of a supplier to withdraw money from or otherwise access a wholesaler’s bank accounts without the wholesaler’s consent (was, also made it unlawful to require a wholesaler to participate in an arrangement for the payment or crediting by an electronic fund transfer without the wholesaler’s consent).
Amends GS 18B-1307 providing that in determining whether the proposed transferee or merged wholesaler is a qualified person, the supplier must consider (was, may consider), but is not limited to, the specified factors. Makes technical changes. Makes a conforming change to the bill title.