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H0632......................................................by STATE AFFAIRS
BEER - BREWERS/DEALERS - Amends existing law to allow a brewer or dealer
and a wholesaler of beer to agree to distribute the products of one brewer
or dealer to the exclusion of other brewers or dealers.
02/18 House intro - 1st rdg - to printing
02/21 Rpt prt - to St Aff
02/29 Rpt out - rec d/p - to 2nd rdg
03/01 2nd rdg - to 3rd rdg
03/02 3rd rdg - PASSED - 60-3-7
AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Black, Boe,
Bruneel, Callister, Campbell, Chase, Cheirrett, Clark, Crow, Deal,
Denney, Ellsworth, Field(13), Field(20), Gagner, Geddes, Hammond,
Hansen(23), Hansen(29), Henbest, Hornbeck, Jaquet, Kellogg, Kempton,
Kendell, Kunz, Lake, Linford, Loertscher, Mader, Marley, McKague,
Meyer, Montgomery, Mortensen, Moss, Moyle, Pischner, Pomeroy,
Reynolds, Ridinger, Ringo, Robison, Sali, Schaefer(Tiegs), Sellman,
Shepherd, Smylie, Stevenson, Stoicheff, Stone, Taylor, Tilman, Trail,
Zimmermann
NAYS -- Pearce, Wheeler, Wood
Absent and excused -- Cuddy, Gould, Hadley, Jones, Judd, Smith, Mr
Speaker
Floor Sponsor - Stone
Title apvd - to Senate
03/03 Senate intro - 1st rdg - to St Aff
03/13 Rpt out - rec d/p - to 2nd rdg
03/14 2nd rdg - to 3rd rdg
03/29 3rd rdg - PASSED - 18-9-8
AYES--Andreason, Boatright, Branch, Crow, Deide, Frasure, Ingram,
Ipsen, King-Barrutia, Richardson, Riggs, Risch, Schroeder, Sorensen,
Stegner, Stennett, Wheeler, Whitworth
NAYS--Bunderson, Burtenshaw, Cameron, Darrington, Dunklin, Lee, Noh,
Sandy, Williams
Absent and excused--Danielson, Davis, Geddes, Hawkins, Keough,
McLaughlin, Parry, Thorne
Floor Sponsor - Whitworth
Title apvd - to House
03/30 To enrol
03/31 Rpt enrol - Sp signed
04/03 Pres signed - to Governor
04/17 Governor signed
Session Law Chapter 428
Effective: 07/01/00
H0632
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature Second Regular Session - 2000
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 632
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO TRADE PRACTICES BETWEEN BREWERS OR DEALERS AND WHOLESALERS; AMEND-
3 ING SECTION 23-1033A, IDAHO CODE, TO PERMIT A BREWER OR DEALER AND A
4 WHOLESALER TO AGREE TO DISTRIBUTE THE PRODUCTS OF ONE BREWER OR DEALER TO
5 THE EXCLUSION OF THE PRODUCTS OF OTHER BREWERS OR DEALERS.
6 Be It Enacted by the Legislature of the State of Idaho:
7 SECTION 1. That Section 23-1033A, Idaho Code, be, and the same is hereby
8 amended to read as follows:
9 23-1033A. PROHIBITION OF CERTAIN TRADE PRACTICES BETWEEN BREWERS OR DEAL-
10 ERS AND WHOLESALERS. (1) It shall be unlawful for any brewer or dealer,
11 directly or indirectly, or through an affiliate, subsidiary, officer, direc-
12 tor, agent or employee:
13 (a) To require, by agreement or otherwise, that any wholesaler purchase
14 any such beer or other distributed products from such person to the exclusion
15 in whole or in part of beer or other products made or imported by other deal-
16 ers or brewers;
17 (b) To induce, by any means, any wholesaler engaged in the sale or dis-
18 tribution of beer to purchase from or distribute the beer or other products of
19 any brewer or dealer to the exclusion of the beer or products of other brewers
20 or dealers by any means, including, but not limited to the brewer or dealer's
21 acquisition of any interest in the wholesaler's license, or by acquiring any
22 interest in the real or personal property owned, occupied, or used by the
23 wholesaler;
24 (c) To discriminate in price, allowance, rebate, refund, commission, dis-
25 count, or service between the wholesalers purchasing beer or other products
26 from such brewer or dealer;
27 (dc) To threaten any wholesaler with any discrimination prohibited under
28 subsection (1)(cb) of this section, with the purpose or effect of changing or
29 maintaining resale prices of the wholesaler;
30 (ed) To impose conditions or restrictions on a wholesaler not generally
31 imposed on other wholesalers of such brewer.; or
32 (f) To cause a termination, cancellation, nonrenewal or substantial
33 change in competitive circumstances in the relationship with the wholesaler
34 without providing at least ninety (90) days' written notice of the termina-
35 tion, cancellation, nonrenewal or substantial change in competitive circum-
36 stances. The notice shall state all the reasons for termination, cancellation,
37 nonrenewal or substantial change in competitive circumstances and shall pro-
38 vide that the wholesaler has sixty (60) days from the date of receipt by said
39 wholesaler of the brewer's or dealer's notice in which to rectify any claimed
40 deficiency; provided that said notice need not provide for an opportunity to
41 rectify if any written agreement between the brewer or dealer and wholesaler
42 then exists pursuant to which the brewer or dealer has the right of termina-
43 tion, cancellation or nonrenewal without cause. If the deficiency is rectified
2
1 within sixty (60) days the notice shall be void in those cases where the
2 wholesaler has a right to rectify any claimed deficiency as herein provided.
3 The notice provisions of this section shall not apply if the reason for termi-
4 nation, cancellation or nonrenewal is insolvency, the occurrence of an assign-
5 ment for the benefit of creditors, bankruptcy, the conviction of the whole-
6 saler in a court of competent jurisdiction of violating any federal or state
7 law relating to or regulating the sale and distribution of any alcoholic bev-
8 erage, the conviction of the wholesaler in any court of competent jurisdiction
9 of any felony or other crime involving moral turpitude, the suspension, for a
10 period of sixty (60) or more days, or revocation or nonrewal of any federal or
11 state permit or license of the wholesaler authorizing the sale or distribution
12 of any alcoholic beverage, or the act or acts of the wholesaler in the course
13 of the wholesaler's dealings with the brewer or dealer which constitute dis-
14 honesty, fraud or deceit on the part of the wholesaler. If the reason for ter-
15 mination, cancellation, nonrenewal or substantial change in competitive cir-
16 cumstances is nonpayment of sums due for the purchase of product, the whole-
17 saler shall be entitled to written notice of such default, and shall have
18 twenty (20) days in which to remedy such default from the date of delivery or
19 posting of such notice. By mutual agreement in writing executed by the brewer
20 and wholesaler the period of any notice herein required may be shortened pro-
21 vided such agreement is executed specifically for that purpose after receipt
22 by the wholesaler of any written form of notice herein required has been
23 given.
24 (2) Nothing in this section shall be deemed to prohibit brewers or deal-
25 ers from selecting their own customers in bona fide transactions not in
26 restraint of trade, nor to prohibit a brewer, or any affiliate or subsidiary
27 of such brewer, duly licensed as a wholesaler from selling and distributing
28 beer or other products manufactured by such brewer at wholesale to the exclu-
29 sion of beer or other products manufactured by any other brewers. The terms
30 "wholesaler" and "wholesalers" as used in this section shall mean a wholesaler
31 or wholesalers licensed and engaged as such in the sale and distribution of
32 beer in the state of Idaho.
STATEMENT OF PURPOSE
RS09842
The proposed legislation revises current law to permit a wholesaler to agree with a
brewer that the wholesaler will market or sell only the products of that brewer.
The statute does not permit the brewery to require such agreement, but validates
agreements voluntarily entered into between the brewer and the wholesaler. The
proposal further permits the brewer to give inducement to the wholesaler in return
for such agreement.
FISCAL NOTE
None.
CONTACT: Bill Roden
Idaho Beer & Wine Distributors Assn.
(208) 336-7930
STATEMENT OF PURPOSE/ FISCAL NOTE H 632