Bill Text: MI SB1157 | 2017-2018 | 99th Legislature | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Liquor; distribution; reference to section 109 of the Michigan liquor control code of 1998; update. Amends sec. 307 of 1998 PA 58 (MCL 436.1307). TIE BAR WITH: SB 1160'18

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2018-12-21 - Assigned Pa 406'18 With Immediate Effect [SB1157 Detail]

Download: Michigan-2017-SB1157-Introduced.html

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 1157

 

 

November 8, 2018, Introduced by Senator ROCCA 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 2010 PA 213.

 

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 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 shall be is the territory agreed upon

 

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(2), 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

 

considered 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 where, 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 shall must remain assigned to the assigned wholesaler.

 

     (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 a

 

distributor of the specified brand or brands of the manufacturer or

 

outstate seller. The territory shall be is the territory agreed

 

upon 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

 

considered 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 where, 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 shall

 

must remain assigned to the assigned wholesaler.

 

     (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.

 

     Enacting section 1. This amendatory act does not take effect

 

unless Senate Bill No. 1160                                   

 

          of the 99th Legislature is enacted into law.

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