House of Representatives

SB 1501

bottle and can deposits

(Now: spirituous liquor; franchise agreements; termination)

Sponsors: Richardson, Nichols, Cardamone

X	Committee on Commerce and Economic Development
	Caucus and COW
	As Passed the House

SB 1501 amends the statutes relating to the relationship between the supplier and wholesale distributor of spirituous liquor. In addition, the bill modifies the applicable definition section.

History

The Trade and Commerce statutes, specifically the Spirituous Liquor Franchises provisions contained in Title 44, Chapter 10, Article 9, Arizona Revised Statutes, outline the requirements for the franchise. Franchise means a commercial relationship between a supplier and a wholesaler and includes all of the following: a) A relationship of definite duration or continuing indefinite duration. b) The wholesaler may offer, sell and distribute within Arizona or any designated territory, the supplier's spirituous liquors. [This is not intended to preclude the supplier from having more than one commercial relationship, as long as there is no violation of the Uniform State Antitrust Act]. c) An agreement relating to transferability of the commercial relationship.

Title 44, Section 1566 stipulates that a supplier or wholesaler must act in good faith in performing the terms and conditions of the franchise. Further, any termination, cancellation or non-renewal of a franchise shall be done in good faith and for good cause. Statute defines good faith, good cause.

SB 1501 modifies the applicable statutes relating to the manner in which the franchise relationship is conducted by striking all reference to the renewal process. In addition, the bill modifies the definition section.

Provisions

· Prescribes the definition of beer to mean any beverage obtained through the alcoholic fermentation, infusion or decoction of barley malt, hops or other non-drinkable ingredients, or any combination of them.

· Defines spirituous liquor and states that the definition does not include beer.

· Strikes the statutory language relating to renewal of a spirituous liquor franchise, thus making the current statutes specific only to the termination or cancellation of a franchise.

· Establishes that a beer supplier or wholesaler shall act in good faith to comply with the terms and conditions of the franchise. Requires the termination, cancellation or non-renewal of a franchise to be transacted in good faith and for good cause.

· Stipulates that in any court action it shall be a complete defense to prove that the termination, cancellation or failure to renew a franchise for a beer supplier or beer wholesaler was done in good faith and for good cause.

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· 45th Legislature

· First Regular Session 2 April 2, 2001

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