Substitute For
HOUSE BILL NO. 5349
A bill to amend 1998 PA 58, entitled
"Michigan liquor control code of 1998,"
by amending section 401 (MCL 436.1401).
the people of the state of michigan enact:
Sec. 401. (1) A manufacturer and outstate seller of
beer and malt beverages shall grant to each of its wholesalers an exclusive
sales territory, as agreed upon on between the wholesaler and
manufacturer or outstate seller of beer, within which the wholesaler shall be is the exclusive distributor of the
specified brand or brands of the manufacturer or outstate seller of beer.
(2) If the manufacturer
or outstate seller manufactures or supplies more than 1 brand of beer or malt
beverage, the manufacturer or outstate seller may grant exclusive sales
territories to different wholesalers for the sale of the different brand or
brands.
(3) Notwithstanding
subsection (2), a brand extension is not considered a new or different brand. A
manufacturer or outstate seller of beer or malt beverages shall assign a brand
extension to the wholesaler that was granted the exclusive sales territory to
the brand from which the brand extension resulted.
(4) Subsection (3) does
not apply where, if, before January 1, 1994, a
manufacturer or outstate seller of beer or malt beverages had assigned a brand
extension to a wholesaler that was not the appointed wholesaler for the brand
from which the brand extension was made.
(5) Until July 1, 1995, a manufacturer
or outstate seller of beer or malt beverages who acquired or otherwise obtained
the right to assign brands of another manufacturer or outstate seller of beer
or malt beverages between January 1, 1994 and July 1, 1995 shall assign a brand
extension to the wholesaler that was granted the exclusive sales territory to
the brand from which the brand extension resulted. Beginning July 1, 1995, a
manufacturer or outstate seller of beer or malt beverages who acquires or
otherwise obtains the right to assign brands of another manufacturer or
outstate seller of beer or malt beverages 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 remain assigned to the
assigned wholesaler.Subsection (3)
does not apply if, before October 1, 2019, a successor manufacturer or
successor outstate seller of beer or malt beverages had assigned a brand
extension to a wholesaler that was not the appointed wholesaler for the brand
from which the brand extension was made.
(6) The sales territory shall be under this section is the territory
agreed upon on between the wholesaler and
manufacturer or outstate seller of beer.
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. 5350.
(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.