Bill Text: MI HB5350 | 2019-2020 | 100th Legislature | Enrolled
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-Enrolled.html
state of michigan
100th Legislature
Regular session of 2020
Introduced by Reps. Hall, Garza, Cambensy and Wendzel
ENROLLED HOUSE BILL No. 5350
AN ACT to amend 1998 PA 58, entitled “An act to create a commission for the control of the alcoholic beverage traffic within this state, and to prescribe its powers, duties, and limitations; to provide for powers and duties for certain state departments and agencies; to impose certain taxes for certain purposes; to provide for the control of the alcoholic liquor traffic within this state and to provide for the power to establish state liquor stores; to prohibit the use of certain devices for the dispensing of alcoholic vapor; to provide for the care and treatment of alcoholics; to provide for the incorporation of farmer cooperative wineries and the granting of certain rights and privileges to those cooperatives; to provide for the licensing and taxation of activities regulated under this act and the disposition of the money received under this act; to prescribe liability for retail licensees under certain circumstances and to require security for that liability; to provide procedures, defenses, and remedies regarding violations of this act; to provide for the enforcement and to prescribe penalties for violations of this act; to provide for allocation of certain funds for certain purposes; to provide for the confiscation and disposition of property seized under this act; to provide referenda under certain circumstances; and to repeal acts and parts of acts,” 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 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 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.
(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) 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 is a
distributor of the specified brand or brands of the manufacturer or outstate
seller. The territory is the territory agreed 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) 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) House Bill No. 5341.
(b) House Bill No. 5342.
(c) House Bill No. 5343.
(d) House Bill No. 5344.
(e) House Bill No. 5345.
(f) House Bill No. 5346.
(g) House Bill No. 5347.
(h) House Bill No. 5348.
(i) House Bill No. 5349.
(j) House Bill No. 5351.
(k) House Bill No. 5352.
(l) House Bill No. 5353.
(m) House Bill No. 5354.
(n) House Bill No. 5355.
(o) House Bill No. 5400.
Clerk of the House of Representatives
Secretary of the Senate
Approved___________________________________________
____________________________________________________
Governor
