HF 3754

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to alcoholic beverages; removing limitations 
  1.3             on prohibition against a brewer requiring a wholesaler 
  1.4             to agree not to sell the products of another brewer; 
  1.5             providing for termination of agreements between brewer 
  1.6             and wholesaler under certain circumstances; amending 
  1.7             Minnesota Statutes 1998, section 325B.02; proposing 
  1.8             coding for new law in Minnesota Statutes, chapter 325B.
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1998, section 325B.02, is 
  1.11  amended to read: 
  1.12     325B.02 [NO INDUCEMENT OR COERCION.] 
  1.13     No brewer shall: 
  1.14     (1) Induce or coerce, or attempt to induce or coerce, any 
  1.15  beer wholesaler to accept delivery of any alcoholic beverage or 
  1.16  any other commodity which shall not have been ordered by the 
  1.17  beer wholesaler. 
  1.18     (2) Induce or coerce, or attempt to induce or coerce, any 
  1.19  beer wholesaler to do any illegal act or thing by threatening to 
  1.20  amend, cancel, terminate, or refuse to renew any agreement 
  1.21  existing between a brewer and a beer wholesaler. 
  1.22     (3) Require a wholesaler to assent to any condition, 
  1.23  stipulation or provision limiting the wholesaler's right to sell 
  1.24  the product of any other brewer anywhere in the state of 
  1.25  Minnesota, provided that the acquisition of the product of 
  1.26  another brewer does not materially impair the quality of service 
  1.27  or quantity of sales of the existing brand or brands of the 
  2.1   brewer seeking to impose the condition, stipulation or provision.
  2.2      (4) Refuse to supply, in reasonable quantities and within a 
  2.3   reasonable time after receipt of the wholesaler's order, beer 
  2.4   ordered by a wholesaler who has an agreement with the brewer for 
  2.5   sale and distribution of the brewer's beer, unless the refusal 
  2.6   to supply is due to: 
  2.7      (i) the brewer's prudent and reasonable restrictions on 
  2.8   extension of credit to the wholesaler; 
  2.9      (ii) weather or other natural events; 
  2.10     (iii) a work stoppage or delay resulting from a strike or 
  2.11  other labor dispute; 
  2.12     (iv) a bona fide shortage of materials; 
  2.13     (v) a freight embargo; or 
  2.14     (vi) any other cause over which the brewer or the brewer's 
  2.15  agents have no control. 
  2.16     Sec. 2.  [325B.075] [TERMINATIONS AUTHORIZED.] 
  2.17     A brewer may terminate an agreement with a wholesaler 
  2.18  without complying with sections 325B.04 to 325B.07 if in the 
  2.19  calendar year preceding the year in which the termination is 
  2.20  effective sales of the brewer's beer, as measured by volume, 
  2.21  were not more than five percent of the wholesaler's total sales 
  2.22  of beer.  A brewer intending to terminate an agreement under 
  2.23  this section must provide the wholesaler with written notice of 
  2.24  the termination at least 30 days before the effective date of 
  2.25  the termination.