February 20, 2009





HOUSE BILL No. 1037

_____


DIGEST OF HB 1037 (Updated February 18, 2009 9:43 am - DI 84)



Citations Affected: IC 7.1-3.

Synopsis: Product transfer between beer wholesalers. Provides that a primary source of supply that acquires brands of beer or flavored malt beverages: (1) shall reappoint the existing beer wholesaler to distribute the brands; and (2) is prohibited from transferring the brands to another beer wholesaler; if the brands represent at least 15% of the existing wholesaler's dollar sales in the 12 months preceding the acquisition. Requires a primary source of supply that acquires brands of beer or flavored malt beverages to give a beer wholesaler notice of the primary source of supply's intent not to reappoint the wholesaler not later than 60 days after acquisition of the brands.

Effective: July 1, 2009.





Van Haaften




    January 7, 2009, read first time and referred to Committee on Public Policy.
    February 19, 2009, amended, reported _ Do Pass.






February 20, 2009

First Regular Session 116th General Assembly (2009)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
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HOUSE BILL No. 1037



    A BILL FOR AN ACT to amend the Indiana Code concerning alcohol and tobacco.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 7.1-3-25-4.5; (09)HB1037.1.1. -->     SECTION 1. IC 7.1-3-25-4.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 4.5. (a) Except as provided in subsection (b), a successor, upon acquiring products, shall:
        (1) reappoint the existing wholesaler for:
            (A) all acquired products; and
            (B) the territories covered by the existing wholesaler for the products; or
        (2) comply with this chapter to transfer the products to another wholesaler.
    (b) If the products acquired by a successor represent at least fifteen percent (15%) of an existing wholesaler's dollar sales in the twelve (12) months preceding the closing of the transaction in which the successor acquires the products, the successor:
        (1) shall reappoint the existing wholesaler for:
            (A) all acquired products; and
            (B) the territories covered by the existing wholesaler for

the products; and
        (2) may not transfer the product to another wholesaler.

SOURCE: IC 7.1-3-25-6; (09)HB1037.1.2. -->     SECTION 2. IC 7.1-3-25-6, AS ADDED BY P.L.224-2005, SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 6. The successor shall notify the existing wholesaler of the successor's intent not to appoint the existing wholesaler for all or a part of the existing wholesaler's territory for the product not later than sixty (60) days after the closing of the transaction in which the successor acquires the product. The successor shall mail the notice by certified mail, return receipt requested, to the existing wholesaler. The successor shall include in the notice the names, addresses, and telephone numbers of the successor's designees.