AN ACT TO PROHIBIT A WINE WHOLESALER FROM DISTRIBUTING WINE BEYOND ITS DESIGNATED SALES TERRITORY AND TO AUTHORIZE CERTAIN INTRATERRITORY TRANSFERS OF WINE BETWEEN OFF-PREMISES WINE PERMITTEES UNDER COMMON OWNERSHIP. Summarized in Daily Bulletin 2/24/11, 3/29/11, and 4/20/11. Enacted May 12, 2011. Effective May 12, 2011.
Bill Summaries: S130 WINE DISTRIBUTION TERRITORIES.
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Summary date: May 12 2011 - View Summary
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Bill S 130 (2011-2012)Summary date: Apr 20 2011 - View Summary
House committee substitute makes the following changes to 2nd edition. Exempts retail permit holder private label brands from the provisions of GS 18B-1203(b).
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Bill S 130 (2011-2012)Summary date: Mar 29 2011 - View 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.
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Bill S 130 (2011-2012)Summary date: Feb 24 2011 - View Summary
Amends GS 18B-1200(b) to include that an underlying purpose and policy of Article 12 (Wine Distribution Agreements) of GS Chapter 20 is to promote and maintain a three-tier system of distribution of wine to the public.
Amends GS 18B-1203 to prohibit a wine wholesaler from distributing any brand of wine to a retailer whose premises are located outside of the territory designated in the wholesaler’s agreement for the brand. However, permits an exception with the approval of the North Carolina Alcoholic Beverage Control Commission (Commission) if there are periods of temporary interruption of service and the winery and the wholesaler request that the wholesaler be allowed to distribute wine outside of the wholesaler’s designated territory. Provides that unless there is a written agreement between the winery and wholesaler stating otherwise, the area designated as the wholesaler’s area of primary sales responsibility as of the effective date (when the act becomes law) of this section, as amended, is declared the wholesaler’s designated sales territory. Requires that the redesignation of sales territories happening after the effective date (was, after March 21, 1983) of this proposed section are to be reported to the Commission within 30 days. Maintains that no provisions of Article 12 prohibits continuing multi-wholesaler agreements entered into prior to March 21, 1983, but when those agreements end, requires that any subsequent agreement for the affected territory be designated for a single wholesaler. Makes conforming changes.
Amends GS 18B-1204 to clarify that good cause for amending, canceling, terminating, or refusing to renew an agreement does not include the desire of a winery to consolidate its franchises or its distribution patterns without a showing that the wholesaler has failed to effectively market or distribute the winery’s product.
The act includes a severability clause.
Effective when the act becomes law and applies to all existing franchise agreements. Provides that following the effective date of the act, a winery’s shipment of wine to a wholesaler in North Carolina constitutes acceptance of the terms of this act and such acceptance will be considered as incorporated into the agreement between the winery and the wholesaler.