HOUSE BILL NO. 5343

January 16, 2020, Introduced by Reps. Wendzel, Hall, Garza and Cambensy and referred to the Committee on Regulatory Reform.

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. 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) Senate Bill No.____ or House Bill No. 5342 (request no. 04270'19).

(b) Senate Bill No.____ or House Bill No. 5344 (request no. 04270'19 a).

(c) Senate Bill No.____ or House Bill No. 5348 (request no. 04540'19).

(d) Senate Bill No.____ or House Bill No. 5354 (request no. 04747'19).

(e) Senate Bill No.____ or House Bill No. 5350 (request no. 05038'19).

(f) Senate Bill No.____ or House Bill No. 5349 (request no. 05039'19).

(g) Senate Bill No.____ or House Bill No. 5346 (request no. 05040'19).

(h) Senate Bill No.____ or House Bill No. 5345 (request no. 05041'19).

(i) Senate Bill No.____ or House Bill No. 5342 (request no. 05042'19).

(j) Senate Bill No.____ or House Bill No. 5355 (request no. 05075'19).

(k) Senate Bill No.____ or House Bill No. 5341 (request no. 05076'19).

(l) Senate Bill No.____ or House Bill No. 5347 (request no. 05077'19).

(m) Senate Bill No.____ or House Bill No. 5353 (request no. 05078'19).

(n) Senate Bill No.____ or House Bill No.____ (request no. 05122'19).

(o) Senate Bill No.____ or House Bill No. 5351 (request no. 05151'19).