0001| HOUSE BILL 154 | 0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0003| INTRODUCED BY | 0004| MURRAY RYAN | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| AN ACT | 0011| RELATING TO ALCOHOLIC BEVERAGES; PROVIDING THAT A SUCCESSOR | 0012| SUPPLIER SHALL BE BOUND BY THE TERMS AND CONDITIONS OF AN | 0013| EXISTING FRANCHISE AGREEMENT; AMENDING A SECTION OF THE LIQUOR | 0014| CONTROL ACT. | 0015| | 0016| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0017| Section 1. Section 60-8A-8 NMSA 1978 (being Laws 1981, | 0018| Chapter 39, Section 55, as amended) is amended to read: | 0019| "60-8A-8. FRANCHISES--VIOLATIONS.-- | 0020| A. The purpose of the provisions of Sections | 0021| 60-8A-7 through 60-8A-11 NMSA 1978 is to provide an equal | 0022| bargaining position between the parties and to protect the | 0023| health, safety and welfare of the citizens by ensuring that | 0024| there is an orderly and fair distribution of alcoholic | 0025| beverages in the state. | 0001| B. It is a violation of Sections 60-8A-7 through | 0002| 60-8A-11 NMSA 1978 for the supplier, directly or through any | 0003| officer, agent or employee, to fail to act in good faith in | 0004| performing or complying with any terms, provisions or | 0005| conditions of the franchise, or in terminating, canceling or | 0006| not renewing a franchise with a wholesaler, unless such | 0007| termination, cancellation or failure to renew is done in good | 0008| faith and for good cause. Good cause shall not include | 0009| supplier mergers or acquisitions or consolidation of brands | 0010| with one wholesaler. | 0011| C. If more than one franchise for the same brand | 0012| ~~[or brands]~~ of alcoholic beverages is originally granted to | 0013| different wholesalers in this state, it is a violation of | 0014| Sections 60-8A-7 through 60-8A-11 NMSA 1978 for any supplier to | 0015| discriminate in any of the terms, provisions and conditions of | 0016| the franchise between the wholesalers. It is not the purpose | 0017| of this section to allow suppliers to unilaterally and without | 0018| good cause or in violation of the contract change the terms of | 0019| an existing franchise or exclusive distribution agreement by | 0020| authorizing the transfer of brands to another wholesaler ~~[in~~ | 0021| ~~violation of this act]~~. | 0022| D. A successor supplier shall be bound by the | 0023| terms and conditions, whether express or implied, of the | 0024| existing franchise agreement. It is a violation of Sections | 0025| 60-8A-7 through 60-8A-11 NMSA 1978 for a successor supplier to | 0001| fail to comply with the terms and conditions, whether express | 0002| or implied, of the existing franchise agreement." | 0003| Section 2. EFFECTIVE DATE.--The effective date of the | 0004| provisions of this act is July 1, 1997. | 0005| | 0006| State of New Mexico | 0007| House of Representatives | 0008| | 0009| FORTY-THIRD LEGISLATURE | 0010| FIRST SESSION, 1997 | 0011| | 0012| | 0013| February 6, 1997 | 0014| | 0015| | 0016| Mr. Speaker: | 0017| | 0018| Your BUSINESS AND INDUSTRY COMMITTEE, to whom | 0019| has been referred | 0020| | 0021| HOUSE BILL 154 | 0022| | 0023| has had it under consideration and reports same with | 0024| recommendation that it DO PASS, and thence referred to the | 0025| JUDICIARY COMMITTEE. | 0001| | 0002| Respectfully submitted, | 0003| | 0004| | 0005| | 0006| | 0007| | 0008| Fred Luna, Chairman | 0009| | 0010| | 0011| Adopted Not Adopted | 0012| | 0013| (Chief Clerk) (Chief Clerk) | 0014| | 0015| Date | 0016| | 0017| The roll call vote was 10 For 1 Against | 0018| Yes: 10 | 0019| No: Gubbels | 0020| Excused: Getty, Olguin | 0021| Absent: None | 0022| | 0023| | 0024| G:\BILLTEXT\BILLW_97\H0154 State of New Mexico | 0025| House of Representatives | 0001| | 0002| FORTY-THIRD LEGISLATURE | 0003| FIRST SESSION, 1997 | 0004| | 0005| | 0006| February 15, 1997 | 0007| | 0008| | 0009| Mr. Speaker: | 0010| | 0011| Your JUDICIARY COMMITTEE, to whom has been referred | 0012| | 0013| HOUSE BILL 154 | 0014| | 0015| has had it under consideration and reports same with | 0016| recommendation that it DO PASS. | 0017| | 0018| Respectfully submitted, | 0019| | 0020| | 0021| | 0022| | 0023| | 0024| Thomas P. Foy, Chairman | 0025| | 0001| | 0002| Adopted Not Adopted | 0003| | 0004| (Chief Clerk) (Chief Clerk) | 0005| | 0006| Date | 0007| | 0008| The roll call vote was 7 For 2 Against | 0009| Yes: 7 | 0010| No: King, Mallory | 0011| Excused: Carpenter, Rios, Stewart, Vaughn | 0012| Absent: None | 0013| | 0014| | 0015| G:\BILLTEXT\BILLW_97\H0154 FORTY-THIRD LEGISLATURE | 0016| FIRST SESSION, 1997 HB 154/a | 0017| | 0018| March 5, 1997 | 0019| | 0020| Mr. President: | 0021| | 0022| Your PUBLIC AFFAIRS COMMITTEE, to whom has been | 0023| referred | 0024| | 0025| HOUSE BILL 154 | 0001| | 0002| has had it under consideration and reports same with | 0003| recommendation that it DO PASS, amended as follows: | 0004| | 0005| 1. On page 1, line 11, after "SUCCESSOR" insert "TO A". | 0006| | 0007| 2. On page 1, lines 12 and 13, strike "BY THE TERMS AND | 0008| CONDITIONS OF AN EXISTING FRANCHISE AGREEMENT" and insert in lieu | 0009| thereof "TO PROVIDE THE SAME BRANDS OF ALCOHOLIC BEVERAGES TO A | 0010| WHOLESALER". | 0011| | 0012| 3. On page 2, strike lines 20 through 25 in their entirety | 0013| and insert in lieu thereof the following new subsection: | 0014| | 0015| "D. A successor to a supplier shall be bound to provide | 0016| the same brands of alcoholic beverages to the same wholesaler who | 0017| had those brands in this state.""., | 0018| | 0019| and thence referred to the JUDICIARY COMMITTEE. | 0020| | 0021| Respectfully submitted, | 0022| | 0023| | 0024| | 0025| __________________________________ | 0001| Shannon Robinson, Chairman | 0002| | 0003| Adopted_______________________ Not | 0004| Adopted_______________________ | 0005| (Chief Clerk) (Chief Clerk) | 0006| | 0007| Date ________________________ | 0008| | 0009| | 0010| The roll call vote was 5 For 0 Against | 0011| Yes: 5 | 0012| No: 0 | 0013| Excused: Garcia, Ingle, Vernon, Smith | 0014| Absent: None | 0015| | 0016| | 0017| H0154PA1 .117868.2 | 0018| | 0019| | 0020| | 0021| | 0022| | 0023| | 0024| FORTY-THIRD LEGISLATURE HB 154/a | 0025| FIRST SESSION, 1997 | 0001| | 0002| | 0003| March 10, 1997 | 0004| | 0005| Mr. President: | 0006| | 0007| Your JUDICIARY COMMITTEE, to whom has been referred | 0008| | 0009| HOUSE BILL 154, as amended | 0010| | 0011| has had it under consideration and reports same with | 0012| recommendation that it DO PASS, amended as follows: | 0013| | 0014| 1. Strike Senate Public Affairs Committee Amendment 3. | 0015| | 0016| 2. On page 2, strike lines 20 through 25 in their entirety | 0017| and insert in lieu thereof the following new subsection: | 0018| | 0019| "D. A successor to a supplier shall be bound to provide | 0020| the same brands of alcoholic beverages to the same wholesaler who | 0021| has those brands in this state."". | 0022| | 0023| | 0024| | 0025| Respectfully submitted, | 0001| | 0002| | 0003| | 0004| __________________________________ | 0005| Fernando R. Macias, Chairman | 0006| | 0007| | 0008| Adopted_______________________ Not | 0009| Adopted_______________________ | 0010| (Chief Clerk) (Chief Clerk) | 0011| | 0012| Date ________________________ | 0013| | 0014| | 0015| The roll call vote was 7 For 0 Against | 0016| Yes: 7 | 0017| No: 0 | 0018| Excused: Sanchez | 0019| Absent: None | 0020| | 0021| | 0022| H0154JU1 .118752.1 | 0023| |