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SB 2136

AN ACT to amend and reenact sections 5-04-02 and 5-04-14 of the North Dakota Century Code, relating to wholesaler and brewer relations.

69th Legislative Assembly (2025-26) Introduced by Jeff Barta and 4 co-sponsors

Strengthens beer wholesalers’ protections by barring coercive actions and ensuring existing contracts are honored after a brewer sale or transfer.

Filed with Secretary Of State 03/26
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Bill Summary · SB 2136

Summary — SB 2136 (North Dakota)

Act to amend and reenact NDCC §§ 5-04-02 and 5-04-14 (wholesaler–brewer relations)

Status & Sponsors
- Introduced: March 10, 2025.
- Sponsors: Senators Klein, Barta, Kessel; Representatives Hagert, Warrey.
- Legislative action: Passed both chambers (Senate 46–0; House 92–0).
- Governor signed: March 25, 2025. Filed with Secretary of State: March 26, 2025.

Purpose
- To strengthen protections for beer wholesalers (distributors) against coercive or restrictive practices by brewers and to preserve wholesaler contract rights when a brewer is sold or otherwise transferred.

Key provisions (amending NDCC § 5-04-02)
SB 2136 expands and clarifies specific prohibitions on brewer conduct toward beer wholesalers. After enactment, a brewer may not do the following:

  1. Force or attempt to force a wholesaler to accept delivery of any alcoholic beverage or other commodity that the wholesaler did not order.
  2. Threaten to amend, cancel, terminate, or refuse to renew an agreement to induce a wholesaler to enter an agreement or take actions that would violate state law or rule.
  3. Require a wholesaler to agree to a term that limits the wholesaler’s right to sell another brewer’s product anywhere in the state, unless the competing sale would materially impair the service quality or sales of the brewer’s brand(s).
  4. Require, as a condition of renewal/continuation of an agreement, that a wholesaler submit specific, confidential information regarding competitive brands (the enrolled bill bars requiring such confidential competitive information).
  5. Fail to provide each wholesaler with a written contract that conforms to this chapter and embodies the brewer’s agreement.
  6. Require a wholesaler to use — or prohibit a wholesaler from using — a business‑to‑business electronic commerce platform.

Key provision (amending NDCC § 5-04-14)
- When a brewer is purchased (defined broadly to include sale of stock/assets, merger, lease, transfer, consolidation) and the purchaser continues to operate as a brewer, the purchaser is generally obligated to honor all terms and conditions of the existing wholesaler agreement in effect on the date of purchase — except for “good cause” as defined in NDCC § 5-04-04.

Who is affected
- Primary: brewers and beer wholesalers/distributors operating in North Dakota.
- Secondary: retailers and consumers could see indirect effects through distribution stability, continuity of product availability, and preserved wholesale competition. Legal counsel for breweries and distributors will need to review contract practices to ensure compliance.

Practical effect
- Reinforces anti‑tying and anti‑coercion protections for wholesalers, protects confidential competitive data, preserves wholesaler contractual continuity after brewer ownership changes, and preserves wholesalers’ freedom to use e‑commerce platforms. The purchaser‑obligation language reduces the ability of a new brewer owner to unilaterally void or renegotiate existing wholesaler agreements except for defined good‑cause situations.

Note on drafting history
- Committee/markup versions included variations that explicitly listed “financial information” as an example of confidential information; the enrolled text bars requiring “specific, confidential information regarding competitive brands.”

Compiled from official sources — confirm details with the bill’s official record.

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