Connecticut 2019 Regular Session

Connecticut House Bill HB07183 Compare Versions

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Version 2 (New)

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	3	+	LCO No. 4567 1 of 5
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7		-	General Assembly ~~Substitute~~ Bill No. 7183
	5	+	General Assembly Raised Bill No. 7183
8	6		January Session, 2019
	7	+	LCO No. 4567
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	9	+
	10	+	Referred to Committee on GENERAL LAW
	11	+
	12	+
	13	+	Introduced by:
	14	+	(GL)
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14	19		AN ACT CONCERNING AL COHOLIC LIQUOR WHOLESALER
15	20		PERMITS.
16	21		Be it enacted by the Senate and House of Representatives in General
17	22		Assembly convened:
18	23
19	24		Section 1. Section 30-17 of the general statutes is repealed and the 1
20	25		following is substituted in lieu thereof (Effective July 1, 2019): 2
21	26		(a) (1) A wholesaler permit shall allow the bottling of alcoholic 3
22	27		liquor and the wholesale sale of alcoholic liquor to permittees in this 4
23	28		state and without the state, as may be permitted by law, and the sale of 5
24	29		alcoholic liquors to vessels engaged in coastwise or foreign commerce, 6
25	30		and the sale of alcohol and alcoholic liquor for industrial purposes to 7
26	31		nonpermittees, such sales to be made in accordance with the 8
27	32		regulations adopted by the Department of Consumer Protection, and 9
28	33		the sale of alcohol and alcoholic liquor for medicinal purposes to 10
29	34		hospitals and charitable institutions and to religious organizations for 11
30	35		sacramental purposes and the receipt from out-of-state shippers of 12
31	36		multiple packages of alcoholic liquor. The holder of a wholesaler 13
32	37		permit may apply for and shall thereupon receive an out-of-state 14
33		-	shipper's permit for direct importation from abroad of alcoholic 15
	38	+	shipper's permit for direct importation from abroad of alcoholic 15 Raised Bill No. 7183
	39	+
	40	+
	41	+
	42	+	LCO No. 4567 2 of 5
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34	44		liquors manufactured outside the United States and an out-of-state 16
35	45		shipper's permit for direct importation from abroad of beer 17
36	46		manufactured outside the United States. The annual fee for a 18
37		-	wholesaler permit shall be two thousand six hundred fifty dollars. 19 Substitute Bill No. 7183
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	47	+	wholesaler permit shall be two thousand six hundred fifty dollars. 19
44	48		(2) When a holder of a wholesaler permit has had the 20
45	49		distributorship of any alcohol, beer, spirits or wine product of a 21
46		-	manufacturer or out-of-state shipper for [six~~] eighteen~~ months or more, 22
47		-	~~such~~ distributorship may be terminated or its geographic territory 23
	50	+	manufacturer or out-of-state shipper for six months or more, such 22
	51	+	distributorship may be terminated or its geographic territory 23
48	52		diminished upon (A) the execution of a written stipulation by the 24
49	53		wholesaler and manufacturer or out-of-state shipper agreeing to the 25
50	54		change and the approval of such change by the Department of 26
51	55		Consumer Protection; or (B) the sending of a written notice by certified 27
52	56		or registered mail, return receipt requested, by the manufacturer or 28
53	57		out-of-state shipper to the wholesaler, a copy of which notice has been 29
54	58		sent simultaneously by certified or registered mail, return receipt 30
55		-	requested, to the Department of Consumer Protection. No such 31
	59	+	requested, to the Department of Consumer Protection. [No such 31
56	60		termination or diminishment shall become effective except for just and 32
57	61		sufficient cause, provided such cause shall be set forth in such notice 33
58	62		and the Department of Consumer Protection shall determine, after 34
59		-	hearing, that just and sufficient cause exists. If an emergency occurs, 35
60		-	caused by the wholesaler, prior to such hearing, which threatens the 36
	63	+	hearing, that just and sufficient cause exists.] If an emergency occurs, 35
	64	+	caused by the wholesaler, [prior to such hearing,] which threatens the 36
61	65		manufacturers' or out-of-state shippers' products or otherwise 37
62	66		endangers the business of the manufacturer or out-of-state shipper and 38
63	67		said emergency is established to the satisfaction of the Department of 39
64	68		Consumer Protection, the department may temporarily suspend such 40
65	69		wholesaler permit or take whatever reasonable action the department 41
66	70		deems advisable to provide for such emergency and the department 42
67		-	may continue such temporary action until its decision after a full 43
	71	+	may continue such temporary action. [until its decision after a full 43
68	72		hearing. The Department of Consumer Protection shall render its 44
69	73		decision with reasonable promptness following such hearing. 45
70		-	Notwithstanding the aforesaid, nothing in this section shall prohibit 46
71		-	the holder of a wholesaler permit and a manufacturer or out-of-state 47
72		-	shipper permittee from agreeing on different terms regarding 48
73		-	termination or alteration of a distributorship agreement, including 49
74		-	allowing for termination by the manufacturer or out-of-state shipper 50
75		-	permittee on a different timeframe, with just and sufficient cause 51
76		-	pursuant to this section, provided that such agreement is in writing. [a] 52
77		-	A manufacturer or out-of-state shipper may appoint one or more 53
78		-	additional wholesalers as the distributor for an alcohol, spirits or wine 54 Substitute Bill No. 7183
	74	+	Notwithstanding the aforesaid, a] A manufacturer or out-of-state 46
	75	+	shipper may appoint one or more additional wholesalers as the 47
	76	+	distributor for an alcohol, spirits, beer or wine product within such 48
	77	+	territory, provided such appointment shall not be effective until [six] 49 Raised Bill No. 7183
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85		-	product within such territory, provided such appointment shall not be 55
86		-	effective until [six] three months from the date such manufacturer or 56
87		-	out-of-state shipper sets forth such intention in written notice to the 57
88		-	existing wholesaler by certified or registered mail, return receipt 58
89		-	requested, with a copy of such notice simultaneously sent by certified 59
90		-	or registered mail, return receipt requested, to the Department of 60
91		-	Consumer Protection. For just and sufficient cause, a manufacturer or 61
92		-	out-of-state shipper may appoint one or more additional wholesalers 62
93		-	as the distributor for a beer product within such territory provided 63
94		-	such manufacturer or out-of-state shipper sets forth such intention and 64
95		-	cause in written notice to the existing wholesaler by certified or 65
96		-	registered mail, return receipt requested, with a copy of such notice 66
97		-	simultaneously sent by certified or registered mail, return receipt 67
98		-	requested, to the Department of Consumer Protection. For the 68
99		-	purposes of this section, "just and sufficient cause" means the existence 69
100		-	of circumstances which, in the opinion of a reasonable person 70
101		-	considering all of the equities of both the wholesaler and the 71
102		-	manufacturer or out-of-state shipper warrants a termination or a 72
103		-	diminishment of a distributorship as the case may be. For the purposes 73
104		-	of this section, "manufacturer or out-of-state shipper" means the 74
105		-	manufacturer or out-of-state shipper who originally granted a 75
106		-	distributorship of any alcohol, beer, spirits or wine product to a 76
107		-	wholesaler, any successor to such manufacturer or out-of-state shipper, 77
108		-	which successor has assumed the contractual relationship with such 78
109		-	wholesaler by assignment or otherwise, or any other manufacturer or 79
110		-	out-of-state shipper who acquires the right to ship such alcohol, beer, 80
111		-	spirits or wine into the state. 81
112		-	(3) [Nothing contained herein shall be construed to interfere with 82
113		-	the authority of the] The Department of Consumer Protection [to retain 83
114		-	or] may adopt reasonable regulations concerning the termination or 84
115		-	diminishment of a distributorship [held by a wholesaler for less than 85
116		-	six months] consistent with the provisions of this section. Where a 86
117		-	wholesaler has held a distributorship for not more than eighteen 87
118		-	months, no change on the list of authorized distributors or wholesalers 88 Substitute Bill No. 7183
	81	+	LCO No. 4567 3 of 5
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	83	+	three months from the date such manufacturer or out-of-state shipper 50
	84	+	sets forth such intention in written notice to the existing wholesaler by 51
	85	+	certified or registered mail, return receipt requested, with a copy of 52
	86	+	such notice simultaneously sent by certified or registered mail, return 53
	87	+	receipt requested, to the Department of Consumer Protection. [For just 54
	88	+	and sufficient cause, a] A manufacturer or out-of-state shipper may 55
	89	+	appoint one or more additional wholesalers as the distributor for a 56
	90	+	beer product within such territory provided such manufacturer or out-57
	91	+	of-state shipper [sets forth such intention and cause in] provides 58
	92	+	written notice to the existing wholesaler by certified or registered mail, 59
	93	+	return receipt requested, with a copy of such notice simultaneously 60
	94	+	sent by certified or registered mail, return receipt requested, to the 61
	95	+	Department of Consumer Protection. [For the purposes of this section, 62
	96	+	"just and sufficient cause" means the existence of circumstances which, 63
	97	+	in the opinion of a reasonable person considering all of the equities of 64
	98	+	both the wholesaler and the manufacturer or out-of-state shipper 65
	99	+	warrants a termination or a diminishment of a distributorship as the 66
	100	+	case may be.] For the purposes of this section, "manufacturer or out-of-67
	101	+	state shipper" means the manufacturer or out-of-state shipper who 68
	102	+	originally granted a distributorship of any alcohol, beer, spirits or wine 69
	103	+	product to a wholesaler, any successor to such manufacturer or out-of-70
	104	+	state shipper, which successor has assumed the contractual 71
	105	+	relationship with such wholesaler by assignment or otherwise, or any 72
	106	+	other manufacturer or out-of-state shipper who acquires the right to 73
	107	+	ship such alcohol, beer, spirits or wine into the state. 74
	108	+	(3) Nothing contained herein shall be construed to interfere with the 75
	109	+	authority of the Department of Consumer Protection to retain or adopt 76
	110	+	reasonable regulations concerning the termination or diminishment of 77
	111	+	a distributorship held by a wholesaler for less than six months. 78
	112	+	[(4) All hearings held hereunder shall be held in accordance with 79
	113	+	the provisions of chapter 54.] 80
	114	+	(b) A wholesaler permit for beer shall be in all respects the same as a 81
	115	+	wholesaler permit issued pursuant to subsection (a) of this section, 82 Raised Bill No. 7183
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125		-	of a manufacturer or out-of-state shipper shall be made, except after 89
126		-	fourteen days' prior notice to the department and, by certified or 90
127		-	registered mail, to all such authorized distributors or wholesalers 91
128		-	affected by such change that appear on the list of the particular 92
129		-	manufacturer or out-of-state shipper, as maintained by the 93
130		-	department. The department may adopt regulations consistent with 94
131		-	this section. 95
132		-	(4) All hearings held hereunder shall be held in accordance with the 96
133		-	provisions of chapter 54. 97
134		-	(b) A wholesaler permit for beer shall be in all respects the same as a 98
135		-	wholesaler permit issued pursuant to subsection (a) of this section, 99
136		-	except that the scope of operations of the holder shall be limited to 100
137		-	beer; but shall not prohibit the handling of nonalcoholic merchandise. 101
138		-	The holder of a wholesaler permit for beer may apply for and shall 102
139		-	thereupon receive an out-of-state shipper's permit for direct 103
140		-	importation from abroad of beer manufactured outside the United 104
141		-	States. The annual fee for a wholesaler permit for beer shall be one 105
142		-	thousand dollars. 106
	119	+	LCO No. 4567 4 of 5
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	121	+	except that the scope of operations of the holder shall be limited to 83
	122	+	beer; but shall not prohibit the handling of nonalcoholic merchandise. 84
	123	+	The holder of a wholesaler permit for beer may apply for and shall 85
	124	+	thereupon receive an out-of-state shipper's permit for direct 86
	125	+	importation from abroad of beer manufactured outside the United 87
	126	+	States. The annual fee for a wholesaler permit for beer shall be one 88
	127	+	thousand dollars. 89
	128	+	Sec. 2. Section 30-17a of the general statutes is repealed and the 90
	129	+	following is substituted in lieu thereof (Effective July 1, 2019): 91
	130	+	Notwithstanding any provision of the general statutes to the 92
	131	+	contrary, no wholesaler permittee that has the distributorship of any 93
	132	+	alcohol, beer, spirits or wine product of a manufacturer or out-of-state 94
	133	+	shipper shall refuse to sell any such alcohol, beer, spirits or wine to any 95
	134	+	retail permittee, without regard to the location of such retail 96
	135	+	permittee's place of business if (1) such retail permittee is willing to 97
	136	+	accept delivery at such wholesaler permittee's place of distribution, (2) 98
	137	+	such retail permittee meets any reasonable conditions imposed upon 99
	138	+	other retail permittees located within such wholesaler permittee's 100
	139	+	geographic territory and (3) the item of alcohol, beer, spirits or wine 101
	140	+	sought by such retail permittee is not available from any wholesaler 102
	141	+	permittee serving a geographic territory in which such retail 103
	142	+	permittee's place of business is located or is only available from such a 104
	143	+	wholesaler permittee at a higher price. Any agreement entered into on 105
	144	+	or after June 8, 1981, which conflicts with the terms of this section shall 106
	145	+	be void. As used in this section, the term "retail permittee" means the 107
	146	+	holder of a permit allowing the sale of alcoholic liquor for on or off-108
	147	+	premises consumption. 109
143	148		This act shall take effect as follows and shall amend the following
144	149		sections:
145	150
146	151		Section 1 July 1, 2019 30-17
	152	+	Sec. 2 July 1, 2019 30-17a
	153	+	Raised Bill No. 7183
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148		-	Statement of Legislative Commissioners:
149		-	In Subsec. (a)(3) technical changes were made for conformity with
150		-	standard drafting conventions.
151	155
152		-	GL Joint Favorable Subst.
	156	+
	157	+	LCO No. 4567 5 of 5
	158	+
	159	+	Statement of Purpose:
	160	+	To modernize Liquor Control Act provisions regarding alcoholic
	161	+	liquor wholesaler permits.
	162	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
	163	+	except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
	164	+	not underlined.]
153	165