The Commonwealth of Massachusetts
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PETITION OF:
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In the Year Two Thousand and Seven.
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Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
SECTION 1. Chapter 138 of the General Laws, as appearing in the 1992 Official Edition, is hereby amended by adding, after Section 25E, the following section:
Section 25F. Each supplier of malt beverages shall sell its malt beverages through wholesaler licensees, of the commission to retail licenses in the Commonwealth, and shall designate exclusive sales territories for every brand or brands sold in the Commonwealth, and shall name one licensed wholesaler for each such sales territory who, within such territory, shall be the exclusive wholesaler for such brand or brands designated by said supplier. Such supplier shall enter into a territorial agreement, in writing, designating the exclusive territory and authorizing the sale by a designated wholesaler of that brand or brands within the designated territory. Such supplier shall not designate more than one wholesaler for each brand for all or any part of a designated territory. The wholesaler licensee designated as the exclusive wholesaler for a brand or brands within a designated territory shall service retail licensees within that territory without discrimination, and shall service for the purposes of quality control required by the supplier for each brand or brands of the supplier all of the malt beverages sold by that wholesaler to retailers within such territory.
It shall be unlawful for any wholesaler, without the prior written approval of the supplier, to sell such supplier’s malt beverage products to any retailer whose place of business is outside of the wholesaler’s designated sales territory for such products, or to any person the wholesaler has reason to believe will sell or supply such products to any such retailer; provided however that any agreement between a supplier and a wholesaler, whether oral or written, entered into prior to April first, two thousand one, which permits a brand or brands of malt beverages to be sold by more than one wholesaler in a designated sales territory shall be exempted from the provisions of this section. Any violation of the provisions of this section shall subject the licensee to suspension or revocation. For, the purposes of this section, “Supplier” shall mean a certificate of compliance holder, farmer-brewer, manufacturer or importer of malt beverages.
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