Bill No.:                     SF0064                                   Drafter:  LGC

LSO No.:                   13LSO-0292                         Effective Date:  Immediate

Enrolled Act No.:    SEA0042

Chapter No.:            CH0093

Prime Sponsor:       Senator Coe

Catch Title:              Wholesale malt beverage distributors-limitations.

Subject:                     Limiting vertical integration of malt beverage distributors and breweries.

Summary/Major Elements:

· Under current law, a wholesale malt beverage distributor license may be granted to breweries, microbreweries and wholesalers.  This act restricts breweries from obtaining a wholesale malt beverage distributor license.

· The act further limits a brewery or malt beverage importer from having any legal ownership interest in the license, business, assets or corporate stock of a wholesale malt beverage distributor licensee.

· The act provides a temporary exemption from the ownership interest restriction if a current wholesale malt beverage distributor licensee who has been granted distribution rights for a brand in a designated territory is unable to service the territory as a result of loss of his license, bankruptcy or insolvency.  In that case, the brewery or importer may receive a temporary license to distribute those products for not more than one year.