Bill Text: MI HB5343 | 2019-2020 | 100th Legislature | Engrossed
Bill Title: Liquor: manufacturer; self-distribution limit of micro brewers; increase. Amends 1998 PA 58 (MCL 436.1101 - 436.2303) by adding sec. 203a. TIE BAR WITH: HB 5345'20, HB 5351'20, HB 5341'20, HB 5350'20, HB 5344'20, HB 5352'20, HB 5348'20, HB 5354'20, HB 5353'20, HB 5342'20, HB 5346'20, HB 5355'20, HB 5349'20, HB 5400'20, HB 5347'20
Spectrum: Bipartisan Bill
Status: (Passed) 2020-07-21 - Assigned Pa 107'20 With Immediate Effect [HB5343 Detail]
Download: Michigan-2019-HB5343-Engrossed.html
Substitute For
HOUSE BILL NO. 5343
A bill to amend 1998 PA 58, entitled
"Michigan liquor control code of 1998,"
(MCL 436.1101 to 436.2303) by adding section 203a.
the people of the state of michigan enact:
Sec. 203a. (1) The legislature finds
that the 3-tier system is necessary to protect public health and safety of
Michigan residents and to promote competition and access to market for all
alcoholic beverage suppliers.
(2)
The legislature further finds that vertical integration of the alcoholic
beverage industry is contrary to this state's interest in protecting public
health and safety of Michigan residents and leads to anti-competitive behavior
by beverage alcohol suppliers.
(3)
The legislature further finds that the 3-tier system and the prohibitions under
section 603 achieve the following public policy goals:
(a)
Promote consumer choice and product variety by providing a platform that
provides all suppliers access to Michigan's beverage alcohol market.
(b)
Encourage wholesalers to invest in their businesses and all the brands they
distribute, free from undue interference from the suppliers of the brands they
distribute.
(c)
Create a transparent and accountable alcohol distribution system that allows
the commission to prevent the manufacture, distribution, or sale of
counterfeit, adulterated, unregistered, recalled, or prohibited alcoholic
beverages.
(4)
This state has an interest in creating market access for all sizes of suppliers
and finds that micro brewers create competition and variety in Michigan's beer
market.
(5)
For the purposes of creating access to Michigan's beer market while also
preserving the 3-tier system and limiting vertical integration, a micro brewer or
an out-of-state entity that is the substantial equivalent of a micro brewer may
sell and deliver beer to a retailer in this state only if all of the following
conditions are met:
(a)
The retailer is not located in a sales territory for which the micro brewer or out-of-state
entity that is the substantial equivalent of a micro brewer has granted
exclusive sales rights to a wholesaler under sections 401 and 403 for the sale
of any brand or brands of beer produced by the micro brewer or out-of-state
entity that is the substantial equivalent of a micro brewer.
(b)
The beer is sold and delivered by an employee of the micro brewer or out-of-state
entity that is the substantial equivalent of a micro brewer, not an agent, and
is transported and delivered using a vehicle owned by the micro brewer or out-of-state
entity that is the substantial equivalent of a micro brewer.
(c)
The micro brewer or out-of-state entity that is the substantial equivalent of a
micro brewer is in compliance with applicable state and federal law and
applicable regulatory provisions of this act and rules promulgated by the
commission under this act, including, but not limited to, those requirements
related to each of the following:
(i) Employees that sell and deliver beer
to retailers.
(ii) Vehicles used to deliver beer to
retailers.
(iii) Price schedules and temporary price
reductions.
(iv) 1976 IL 1, MCL 445.571 to 445.576.
(d)
The micro brewer or out-of-state entity that is the substantial equivalent of a
micro brewer sells not more than 2,000 barrels of beer total per year. In
determining the 2,000-barrel threshold under this subdivision, all brands and
labels of a micro brewer or out-of-state equivalent of a micro brewer, whether
sold to a wholesaler or a retailer in this state or outside of this state, must
be combined. Sales to consumers on the licensed premises of the micro brewer or
out-of-state entity that is the substantial equivalent of a micro brewer are
not included in determining the 2,000-barrel threshold under this subdivision.
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. 5344.
(d) House Bill No.
5345.
(e) House Bill
No. 5346.
(f) House Bill
No. 5347.
(g) House Bill
No. 5348.
(h) House Bill
No. 5349.
(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.