Bill Text: MI HB5350 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Liquor; wine; successor manufacturer or successor outstate seller of wine not assigned a brand extension; provide certain exception. Amends sec. 307 of 1998 PA 58 (MCL 436.1307). TIE BAR WITH: HB 5400'19, HB 5348'19, HB 5351'19, HB 5344'19, HB 5343'19, HB 5355'19, HB 5346'19, HB 5353'19, HB 5342'19, HB 5345'19, HB 5354'19, HB 5341'19, HB 5352'19, HB 5347'19, HB 5349'19
Spectrum: Bipartisan Bill
Status: (Passed) 2020-07-21 - Assigned Pa 114'20 With Immediate Effect [HB5350 Detail]
Download: Michigan-2019-HB5350-Introduced.html
HOUSE BILL NO. 5350
January 16, 2020, Introduced by Reps. Hall,
Garza, Cambensy and Wendzel and referred to the Committee on Regulatory
Reform.
A bill to amend 1998 PA 58, entitled
"Michigan liquor control code of 1998,"
by amending section 307 (MCL 436.1307), as amended by 2018 PA 406.
the people of the state of michigan enact:
Sec. 307. (1) A manufacturer, an outstate seller of
wine, and a master distributor shall grant to each of its wholesalers a sales
territory within which the wholesaler shall be is a distributor of the specified brand or brands of
the manufacturer, outstate seller of wine, or master distributor under an
agreement as required under this act. The territory is the territory agreed upon on between the wholesaler and
manufacturer, outstate seller of wine, or master distributor. Except as
provided for in subsection (9) and beginning June 1, 2010, a manufacturer,
outstate seller of wine, or master distributor shall not grant the right to
sell a specified brand or brands of wine in a sales territory to more than 1
wine wholesaler. A master distributor shall not itself distribute a specified
brand or brands of wine in the same sales territory where that master
distributor has granted the right to distribute that specified brand or brands
of wine in that sales territory to another wine wholesaler. Notwithstanding
section 109(4), as used in this section, "master distributor" means a
wholesaler that acts in the same or similar capacity as a wine maker, wine
manufacturer, or outstate seller of wine for a brand or brands of wine to other
wholesalers on a regular basis in the normal course of business.
(2) Notwithstanding
subsection (1), a brand extension is not a new or different brand. A
manufacturer or outstate seller of wine shall assign a brand extension to the
wholesaler that was granted the sales territory for the brand from which the
brand extension resulted.
(3) Subsection (2) does
not apply if, before January 1, 1994, a manufacturer or outstate seller of wine
had assigned a brand extension to a wholesaler that was not the appointed
wholesaler for the brand from which the brand extension was made.
(4) Until July 1, 1995, a manufacturer
or outstate seller of wine who acquired or otherwise obtained the right to
assign brands of another manufacturer or outstate seller of wine between
January 1, 1994 and July 1, 1995 shall assign a brand extension to the
wholesaler that was granted the sales territory for the brand from which the
brand extension resulted. Beginning July 1, 1995, a manufacturer or outstate
seller of wine who acquires or otherwise obtains the right to assign brands of
another manufacturer or outstate seller of wine is not required to assign a new
brand extension to the wholesaler that is granted the exclusive sales territory
to the brand from which the new brand extension results. Any brand extension
assigned between January 1, 1994 and July 1, 1995 must remain assigned to the
assigned wholesaler.Subsection (2)
does not apply if, before October 1, 2019, a successor manufacturer or
successor outstate seller of wine had assigned a brand extension to a
wholesaler that was not the appointed wholesaler for the brand from which the
extension was made.
(5) A manufacturer of a
mixed wine drink, mixed spirit drink manufacturer, outstate seller of a mixed
wine drink, or outstate seller of mixed spirit drink shall grant to each of its
wholesalers an exclusive sales territory in which the wholesaler shall be is a distributor of the specified brand
or brands of the manufacturer or outstate seller. The territory is the
territory agreed upon on between the wholesaler and the manufacturer
of a mixed wine drink, mixed spirit drink manufacturer, outstate seller of
mixed wine drinks, or outstate seller of mixed spirit drink.
(6) Notwithstanding
subsection (5), a brand extension is not a new or different brand. A
manufacturer of a mixed wine drink, mixed spirit drink manufacturer, outstate
seller of a mixed wine drink, or outstate seller of mixed spirit drink shall
assign a brand extension to the wholesaler that was granted the exclusive sales
territory for the brand from which the brand extension resulted.
(7) Subsection (6) does
not apply if, before January 1, 1994, a manufacturer of a mixed wine drink,
mixed spirit drink manufacturer, outstate seller of a mixed wine drink, or
outstate seller of mixed spirit drink had assigned a brand extension to a
wholesaler that was not the appointed wholesaler for the brand from which the
brand extension was made.
(8) Until July 1, 1995, a manufacturer
of a mixed wine drink, mixed spirit drink manufacturer, outstate seller of
mixed wine drink, or outstate seller of mixed spirit drink who acquired or
otherwise obtained the right to assign brands of another manufacturer of a
mixed wine drink, mixed spirit drink manufacturer, outstate seller of a mixed
wine drink, or outstate seller of mixed spirit drink between January 1, 1994
and July 1, 1995 shall assign a brand extension to the wholesaler that was
granted the exclusive sales territory for the brand from which the brand
extension resulted. Beginning July 1, 1995, a manufacturer of mixed wine drink,
mixed spirit drink manufacturer, outstate seller of mixed wine drink, or
outstate seller of mixed spirit drink who acquires or otherwise obtains the
right to assign brands of another manufacturer of mixed wine drink, mixed
spirit drink manufacturer, outstate seller of mixed wine drink, or outstate
seller of mixed spirit drink is not required to assign a new brand extension to
the wholesaler that is granted the exclusive sales territory to the brand from
which the new brand extension results. Any brand extension assigned between
January 1, 1994 and July 1, 1995 must remain assigned to the assigned
wholesaler.Subsection (6)
does not apply if, before October 1, 2019, a successor manufacturer or
successor outstate seller of mixed wine drink or mixed spirit drink had
assigned a brand extension to a wholesaler that was not the appointed
wholesaler for the brand from which the brand extension was made.
(9) Subsection (1) does
not prohibit any of the following:
(a) A manufacturer of
wine, an outstate seller of wine, or a master distributor from continuing or
renewing an agreement under this act with a wholesaler for a specified brand or
brands for any county or part of a county where more than 1 wholesaler has an
agreement with the manufacturer of wine, outstate seller of wine, or master
distributor in effect on June 1, 2010 if the wholesaler had an agreement to
distribute that specified brand or brands in that county or that part of a
county and was a master distributor or was actively selling that brand or
brands of wine to a retailer in that county or that part of a county on June 1,
2010.
(b) A wholesaler from
selling or transferring the wholesaler's distribution rights or a manufacturer
of wine, outstate seller of wine, or master distributor from approving the sale
or transfer of a wholesaler's distribution rights to a specified brand or
brands of wine for any county or part of a county to another wholesaler if the
selling or transferring wholesaler, or any of its predecessors, had the right
to distribute that brand or brands of wine in that county or part of that
county and was actively selling that brand or brands to a retailer in that
county or that part of a county on June 1, 2010 or was acting as a master
distributor for that county or part of that county on June 1, 2010.
(10) As used in this section, "master distributor" means, notwithstanding section 109(4), a wholesaler that acts in the same or similar capacity as a wine maker, wine manufacturer, or outstate seller of wine for a brand or brands of wine to other wholesalers on a regular basis in the normal course of business.
Enacting section 1. This amendatory act does not take effect unless all of the following bills of the 100th Legislature are enacted into law:
(a) Senate Bill No.____ or House Bill No. 5342 (request no. 04270'19).
(b) Senate Bill No.____ or House Bill No. 5344 (request no. 04270'19 a).
(c) Senate Bill No.____ or House Bill No. 5348 (request no. 04540'19).
(d) Senate Bill No.____ or House Bill No. 5354 (request no. 04747'19).
(e) Senate Bill No.____ or House Bill No. 5349 (request no. 05039'19).
(f) Senate Bill No.____ or House Bill No. 5346 (request no. 05040'19).
(g) Senate Bill No.____ or House Bill No. 5345 (request no. 05041'19).
(h) Senate Bill No.____ or House Bill No. 5352 (request no. 05042'19).
(i) Senate Bill No.____ or House Bill No. 5343 (request no. 05074'19).
(j) Senate Bill No.____ or House Bill No. 5355 (request no. 05075'19).
(k) Senate Bill No.____ or House Bill No. 5341 (request no. 05076'19).
(l) Senate Bill No.____ or House Bill No. 5347 (request no. 05077'19).
(m) Senate Bill No.____ or House Bill No. 5353 (request no. 05078'19).
(n) Senate Bill No.____ or House Bill No.____ (request no. 05122'19).
(o) Senate Bill No.____ or House Bill No. 5351 (request no. 05151'19).
