Bill Text: MI SB1157 | 2017-2018 | 99th Legislature | Engrossed
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-Engrossed.html
SB-1157, As Passed Senate, November 29, 2018
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.
