0001|                           SENATE BILL 1029
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0002|     43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0003|                            INTRODUCED BY
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0004|                             PETE CAMPOS
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0005|     
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0006|                                   
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0007|     
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0008|                                   
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0009|     
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0010|                                AN ACT
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0011|     RELATING TO ALCOHOLIC BEVERAGES; AMENDING THE LIQUOR CONTROL
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0012|     ACT TO CHANGE CERTAIN PROVISIONS PERTAINING TO NONRESIDENT
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0013|     MANUFACTURERS.
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0014|     
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0015|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0016|          Section 1.  Section 60-8A-1 NMSA 1978 (being Laws 1981,
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0017|     Chapter 39, Section 60) is amended to read:
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0018|          "60-8A-1.  UNFAIR COMPETITION--EXCLUSIVE OUTLET--TIED
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0019|     HOUSE--CONSIGNMENT SALES.--
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0020|               <u>A.</u>  It is unlawful for any importer, manufacturer,
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0021|     nonresident licensee or any kind or class of wholesaler,
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0022|     directly or indirectly, or through an affiliate:
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0023|                    <s>[A.]</s> <u>(1)</u>  to require by agreement or
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0024|     otherwise that any wholesaler, retailer, dispenser, canopy
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0025|     licensee, restaurant licensee, club licensee or governmental
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0001|     licensee or its lessee engaged in the sale of alcoholic
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0002|     beverages in the state purchase alcoholic beverages from such
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0003|     person to the exclusion in whole or in part of alcoholic bever-
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0004|     
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0005|     ages sold or offered for sale by other persons;
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0006|                    <s>[B.]</s> <u>(2)</u>  to induce through any of the
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0007|     following means, any wholesaler, retailer, dispenser, canopy
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0008|     licensee, restaurant licensee, club licensee or governmental
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0009|     licensee or its lessee engaged in the sale of any kind or class
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0010|     of alcoholic beverages to purchase alcoholic beverages from
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0011|     such person to the exclusion in whole or in part of alcoholic
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0012|     beverages sold or offered for sale by other persons:
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0013|                         <s>[(1)]</s> <u>(a)</u>  by acquiring or holding,
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0014|     after the expiration of any existing license, any interest in
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0015|     any license with respect to the premises of the wholesaler,
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0016|     retailer, dispenser, canopy licensee, restaurant licensee, club
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0017|     licensee or governmental licensee or its lessee;
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0018|                         <s>[(2)]</s> <u>(b)</u>  by acquiring any interest
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0019|     in any real or personal property owned, occupied or used by any
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0020|     wholesaler, retailer, dispenser, restaurant licensee or club
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0021|     licensee in the conduct of the buying wholesaler's, retailer's,
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0022|     dispenser's, canopy licensee's, restaurant licensee's, club
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0023|     licensee's or governmental licensee's or its lessee's business,
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0024|     subject to such exceptions as the director shall prescribe,
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0025|     having due regard to the free flow of commerce, the purposes of
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0001|     this subsection and established trade customs not contrary to
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0002|     the public interest;
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0003|                         <s>[(3)]</s> <u>(c)</u>  by furnishing, giving,
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0004|     renting, lending or selling to any wholesaler, retailer,
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0005|     dispenser, canopy licensee, restaurant licensee, club licensee
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0006|     or governmental licensee or its lessee any equipment, fixtures,
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0007|     signs, supplies, money, services or other thing of value,
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0008|     subject to such exceptions as the director shall by regulation
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0009|     prescribe, having due regard for public health and welfare, the
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0010|     quantity and value of the articles involved and established
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0011|     trade customs not contrary to the public interest and the
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0012|     purposes of this subsection;
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0013|                         <s>[(4)]</s> <u>(d)</u>  by paying or crediting the
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0014|     wholesaler, retailer, dispenser, canopy licensee, restaurant
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0015|     licensee, club licensee or governmental licensee or its lessee
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0016|     for any advertising, display or distribution services;
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0017|                         <s>[(5)]</s> <u>(e)</u>  by requiring any
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0018|     wholesaler, retailer, dispenser, canopy licensee, restaurant
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0019|     licensee, club licensee or governmental licensee or its lessee
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0020|     to take and dispose of a certain quota or combination of
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0021|     alcoholic beverages; or
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0022|                         <s>[(6)]</s> <u>(f)</u>  by commercial bribery by
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0023|     offering or giving any bonus, premium or compensation to any
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0024|     officer, employee, agent or representative of any wholesaler,
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0025|     retailer, dispenser, canopy licensee, restaurant licensee, club
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0001|     licensee or governmental licensee or its lessee; or
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0002|                 <s>[C.]</s> <u>(3)</u>  to sell, offer for sale or contract
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0003|     to sell to any retailer, dispenser, canopy licensee, restaurant
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0004|     licensee, club licensee or governmental licensee or its lessee
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0005|     any alcoholic beverages of any kind or class on consignment or
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0006|     under a conditional sale or on any basis other than a bona fide
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0007|     sale; provided, that this subsection shall not apply to trans-
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0008|     
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0009|     actions involving solely the bona fide return of merchandise
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0010|     for ordinary and usual commercial reasons arising after the
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0011|     merchandise has been sold.
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0012|         <u>   B.  Notwithstanding the provisions of Subsection A of
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<u></u>0013| <u>    this section or any other provision of the Liquor Control Act,
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<u></u>0014| <u>    a nonresident manufacturer may participate with a wholesaler in
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<u></u>0015| <u>    a limited partnership, as defined in Section 54-2-2 NMSA 1978,
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<u></u>0016| <u>    in which the nonresident manufacturer is a limited partner and
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<u></u>0017| <u>    the wholesaler is a general partner.  Further, notwithstanding
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<u></u>0018| <u>    the provisions of Subsection A of this section, a nonresident
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<u></u>0019| <u>    manufacturer may extend financing to a wholesaler, and that act
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<u></u>0020| <u>    shall not constitute a means to induce within the meaning of
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<u></u>0021| <u>    this section.  In the event of a default by the wholesaler, the
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<u></u>0022| <u>    nonresident manufacturer shall not control or operate the
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<u></u>0023| <u>    wholesaler for more than one hundred eighty days or until a
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<u></u>0024| <u>    suitable buyer is secured and the transaction is completed.</u>"
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