H1096B1687A02724 NES:JSL 10/24/23 #90 A02724
AMENDMENTS TO HOUSE BILL NO. 1096
Sponsor: SENATOR DILLON
Printer's No. 1687
Amend Bill, page 1, line 20, by striking out "AND" and
inserting
, for malt and brewed beverages manufacturers', distributors'
and importing distributors' licenses, for interlocking
business prohibited,
Amend Bill, page 1, line 21, by inserting after "county"
and for unlawful acts relative to malt or brewed beverages and
licensees
Amend Bill, page 5, lines 20 and 21, by striking out all of
said lines and inserting
Section 3. Section 431(d)(1) of the act is amended and the
subsection is amended by adding a paragraph to read:
Section 431. Malt and Brewed Beverages Manufacturers',
Distributors' and Importing Distributors' Licenses.--* * *
(d) (1) All distributing rights as hereinabove required
shall be in writing, shall be equitable in their provisions and
shall be substantially similar as to terms and conditions with
all other distributing rights agreements between the
manufacturer giving such agreement and its other importing
distributors and distributors shall not be modified, cancelled,
terminated or rescinded by the manufacturer without good cause,
and shall contain a provision in substance or effect as follows:
"The manufacturer recognizes that the importing distributor and
distributor are free to manage their business in the manner the
importing distributor and distributor deem best and that this
prerogative vests in the importing distributor and distributor
the exclusive right to establish a selling price, to select the
brands of malt or brewed beverages they wish to handle and to
determine the efforts and resources, including the e-commerce
platform if one is used, which the importing distributor and
distributor will exert to develop and promote the same of the
manufacturer's products handled by the importing distributor and
distributor. However, the manufacturer expects that the
importing distributor and distributor will price competitively
the products handled by them, devote reasonable effort and
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resources to the sale of such products and maintain a reasonable
sales level." "Good cause" shall mean the failure by any party
to an agreement, without reasonable excuse or justification, to
comply substantially with an essential, reasonable and
commercially acceptable requirement imposed by the other party
under the terms of an agreement.
(1.1) Providing or using an e-commerce platform shall not be
construed as providing a thing of value under section 493(24).
* * *
Section 4. Section 443 of the act is amended by adding a
subsection to read:
Section 443. Interlocking Business Prohibited.--* * *
(i) Notwithstanding any other provision of law to the
contrary, a malt or brewed beverage manufacturer and its
officers, directors, shareholders, servants, agents or employes
may provide an e-commerce platform or access to an e-commerce
platform to a distributor or importing distributor. The e-
commerce platform or access to the e-commerce platform may be
provided free of charge or may be made available for a fee.
Section 5. Section 461(c)(9.2) of the act is amended to
read:
Amend Bill, page 6, by inserting between lines 29 and 30
Section 6. Section 492 of the act is amended by adding a
paragraph to read:
Section 492. Unlawful Acts Relative to Malt or Brewed
Beverages and Licensees.--
It shall be unlawful--
* * *
(23) Interfering with the use of e-commerce. For any
manufacturer or retail licensee to prohibit or mandate any
particular e-commerce platform by any distributor or importing
distributor.
Amend Bill, page 6, line 30, by striking out "4" and
inserting
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