1.1                          A bill for an act 
  1.2             relating to commerce; regulating beer brewers and 
  1.3             wholesalers; providing for the obligations of 
  1.4             successors; amending Minnesota Statutes 1996, sections 
  1.5             325B.01; and 325B.14. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1996, section 325B.01, is 
  1.8   amended to read: 
  1.9      325B.01 [DEFINITIONS.] 
  1.10     Subdivision 1.  As used in sections 325B.01 to 325B.17 and 
  1.11  unless otherwise required by the context, the terms defined in 
  1.12  this section have the meanings given them. 
  1.13     Subd. 2.  "Agreement" means one or more of the following: 
  1.14     (a) A commercial relationship between a licensed beer 
  1.15  wholesaler and a licensed brewer of a definite or indefinite 
  1.16  duration, which is not required to be evidenced in writing; 
  1.17     (b) A relationship whereby the beer wholesaler is granted 
  1.18  the right to offer and sell a brand or brands of beer offered by 
  1.19  a brewer; 
  1.20     (c) A relationship whereby the beer wholesaler, as an 
  1.21  independent business, constitutes a component of a brewer's 
  1.22  distribution system; 
  1.23     (d) A relationship whereby the beer wholesaler's business 
  1.24  is substantially associated with a brewer's brand or brands, 
  1.25  designating the brewer; 
  2.1      (e) A relationship whereby the beer wholesaler's business 
  2.2   is substantially reliant on a brewer for the continued supply of 
  2.3   beer; 
  2.4      (f) A written or oral arrangement for a definite or 
  2.5   indefinite period whereby a brewer grants to a beer wholesaler a 
  2.6   license to use a brand, trade name, trademark, or service mark, 
  2.7   and in which there is a community of interest in the marketing 
  2.8   of goods or services at wholesale or retail. 
  2.9      Subd. 3.  "Beer wholesaler" shall mean any licensed person 
  2.10  importing or causing to be imported into this state or 
  2.11  purchasing or causing to be purchased within this state, any 
  2.12  beer for sale or resale to retailers or wholesalers licensed 
  2.13  under chapter 340, without regard to whether the business of the 
  2.14  person is conducted under the terms of an agreement with a 
  2.15  licensed brewer. 
  2.16     Subd. 4.  "Brewer" means every licensed brewer or importer 
  2.17  of beer located within or without the state of Minnesota, who 
  2.18  enters into an "agreement" with any beer wholesaler licensed to 
  2.19  do doing business in the state of Minnesota. 
  2.20     Subd. 5.  "Person" means a natural person, corporation, 
  2.21  partnership, trust, agency, or other entity as well as the 
  2.22  individual officers, directors or other persons in active 
  2.23  control of the activities of each such entity.  Person also 
  2.24  includes heirs, assigns, personal representatives and guardians. 
  2.25     Subd. 6.  "Successor" means a person who replaces a brewer, 
  2.26  importer, or master distributor with regard to the right to 
  2.27  manufacture, sell, distribute, or import a brand or brands of 
  2.28  beer. 
  2.29     Subd. 7.  "Territory" or "sales territory" means the area 
  2.30  of primary sales responsibility designated by any agreement 
  2.31  between any beer wholesaler and brewer for the brand or brands 
  2.32  of any brewer. 
  2.33     Sec. 2.  Minnesota Statutes 1996, section 325B.14, is 
  2.34  amended to read: 
  2.35     325B.14 [OBLIGATIONS OF PURCHASER.] 
  2.36     Except for good cause, which shall include, but not be 
  3.1   limited to (1) revocation of the wholesaler's license to do 
  3.2   business in the state, (2) bankruptcy or insolvency of the 
  3.3   wholesaler, (3) assignment for the benefit of creditors or 
  3.4   similar disposition of the assets of the wholesaler, (4) failure 
  3.5   by the wholesaler to substantially comply, without reasonable 
  3.6   excuse or justification, with any reasonable and material 
  3.7   requirement imposed upon the wholesaler by the brewery, the 
  3.8   purchaser of a "brewer" as defined in sections 325B.01 to 
  3.9   325B.17 shall become obligated to all of the terms and 
  3.10  conditions of the agreement in effect on the date of purchase.  
  3.11  "Purchase", as defined for the purposes of sections 325B.01 to 
  3.12  325B.17, shall include, but is not limited to, the sale of 
  3.13  stock, sale of assets, merger, lease, transfer or consolidation. 
  3.14     A successor to a brewer, importer, or wholesaler shall 
  3.15  become obligated to all of the terms and conditions of the 
  3.16  agreement in effect on the date of succession.  This section 
  3.17  applies regardless of the character or form of the succession.