House of Representatives

HB 2445

beer franchises

Sponsor: Representative May

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

HB 2445 removes the provision of law relating to the franchise agreement between the supplier of spirituous liquor and the wholesaler of spirituous liquor.

Current Status

HB 2445 passed the Commerce and Economic Development Committee unamended.

History

Current law requires the supplier and wholesaler of spirituous liquor to abide by franchise law, which requires both parties to act in good faith in performing and complying with the terms, provisions and conditions of the franchise agreement. Further, Title 44, Section 1566, Subsection A, Arizona Revised Statutes, specifically requires that "any termination or cancellation shall be done in good faith and for good cause." [Emphasis added]

HB 2445 removes the statutory language relative to the franchise agreement between the supplier and the wholesaler of spirituous liquor, but maintains the current requirements for the beer supplier and wholesaler.

SB 1211 mirrors the language of this bill.

Provisions

· Removes the requirement for the supplier and wholesaler of spirituous liquor to act in good faith in performing the terms and conditions of their franchise agreement. Eliminates the requirement that any termination or cancellation must be for good cause while acting in good faith.

· In any court action seeking damages and attorney's fees, eliminates the requirement to prove both good faith and good cause in terminating or canceling a franchise agreement.

· Retains current law with regard to the franchise agreement between the beer supplier and wholesaler.

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· 45th Legislature

· Second Regular Session 2 March 20, 2002

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