Bill Text: MI HB4667 | 2017-2018 | 99th Legislature | Engrossed
Bill Title: Liquor; economic development; grape and wine industry council; change name to Michigan craft beverage council and revise powers and duties of members. Amends sec. 303 of 1998 PA 58 (MCL 436.1303). TIE BAR WITH: SB 0440'17
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2018-05-23 - Assigned Pa 154'18 With Immediate Effect [HB4667 Detail]
Download: Michigan-2017-HB4667-Engrossed.html
HB-4667, As Passed Senate, May 2, 2018
SENATE SUBSTITUTE FOR
HOUSE BILL NO. 4667
A bill to amend 1998 PA 58, entitled
"Michigan liquor control code of 1998,"
by amending section 303 (MCL 436.1303).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
303. (1) The grape and wine industry council is created
in
under Executive
Reorganization Order No. 2014-2, MCL 333.26253,
shall be housed within the department of agriculture and rural
development. The Beginning on the effective date of the 2018
amendatory act that amended this section, the council shall be
known as the Michigan craft beverage council and shall consist of
all
of the following members:
(a)
Three wine makers.
(b)
A wine grape grower.
(c)
The director of consumer and industry services or his or
her
designee.
(a) (d)
The As a nonvoting member,
the director of the
department of agriculture and rural development or his or her
designee.
(e)
A staff member of Michigan state university appointed by,
and
serving at the pleasure of, the dean of the college of
agriculture
and natural resources of Michigan state university.
(f)
The chairperson of the commission or his or her designee,
as
an ex officio member.
(b) Subject to subsection (2), the following voting members,
appointed by the governor:
(i) (g)
A person who operates a A
representative of retail
food
establishment establishments
that holds hold a
specially
designated
merchant license and sells sell
Michigan wines or a
person
who operates a restaurant beer.
(ii) A representative of restaurants that holds hold a class C
license
and serves serve Michigan wines, beer, or spirits.
(h)
A beer and wine wholesaler who markets Michigan wine.
(i)
Not more than 2 additional members appointed as prescribed
in
subsection (3).
(iii) Two representatives of wine makers.
(iv) A representative of wine makers that primarily
manufacture cider.
(v) A representative of large brewers.
(vi) One of the following:
(A) A representative of micro brewers.
(B) A representative of brewpub license holders.
(vii) A representative of small distillers.
(viii) A representative of distillers that manufacture more
than 60,000 gallons of spirits per year.
(2) The following apply to a member of the council appointed
under subsection (1)(b):
(a) The member's principal place of business must be located
in this state.
(b) The member must not be a lobbyist or a lobbyist agent as
those terms are defined in section 5 of 1978 PA 472, MCL 4.415.
(3) (2)
The members of the council described in subsection
(1)(a),
(b), (g), and (h) shall be appointed by the governor. The
council
members appointed under subsection (1)(g) and (h) shall be
appointed
for 2-year terms beginning on October 1, 1991. Of the
council
members appointed for terms beginning October 1, 1991, 1
shall
be appointed for a 1-year term, and 3 shall be appointed for
terms
of 2 years each. All appointments for terms beginning on or
after
October 1, 1992 shall be for 2 years each. A member shall
continue
to serve until a qualified successor has been appointed.
Voting members of the council appointed by the governor under
subsection (1) shall serve for terms of 3 years or until a
successor is appointed, whichever is later, except that of the
voting members first appointed, 3 shall serve for 1 year, 3 shall
serve for 2 years, and 3 shall serve for 3 years. A voting member
shall not serve more than 2 consecutive terms. A vacancy on the
board shall be filled in the same manner as the original
appointment.
The director of the department of agriculture shall
act
as and rural development is
the chairperson of the council.
(3)
The governor may appoint not more than 2 additional
members
to the council who shall assist the council in performing
its
duties, but who shall not have the power to vote. The persons
appointed
under this subsection shall not be members of the
classified
state civil service, shall serve at the pleasure of the
governor,
and shall receive salaries and benefits determined and
paid
by the department of agriculture.
(4)
The council may employ personnel and incur such expenses
as
that are necessary to carry out the purposes responsibilities of
the
council under this act. All such expenses shall be paid from
fees
credited to the wine industry council under section 543(2). A
member
of the council or an employee or agent of the council shall
is
not be personally liable on the
contracts of the council.
(5)
A nongovernmental member of the council shall may receive
$50.00 per day for each day spent in actual attendance at meetings
of the council and traveling expenses while on council business in
accordance with standard travel regulations of the department of
technology, management, and budget.
(6) The council shall maintain accurate books and records, and
all
funds money received by the council shall be used to implement
and enforce this section. The council may accept money from any
source for the purpose of carrying out this section. All money
received by the council shall be forwarded to the state treasurer
for deposit into the Michigan craft beverage council fund created
in section 303a.
(7)
The Subject to an
appropriation, the council shall do
all
of
direct the department of
agriculture and rural development to
award grants for the following:
(a)
Provide for research on wine grapes Research into both of
the following:
(i) Fruits used in winemaking and wines, including, but not
limited to, methods of planting, growing, controlling insects and
diseases, charting microclimates and locations for growing
desirable
varieties of wine grapes, fruits
used in winemaking and
wines, marketing, processing, distribution, advertising, sales
production, and product development.
(ii) Hops, barley, beer, and spirits, including, but not
limited to, methods of planting, growing, controlling insects and
diseases, marketing, processing, distribution, advertising, sales
production, and product development.
(b) Projects that do 1 or more of the following:
(i) (b)
Provide the wine industry,
including growers,
wineries, distributors, and retailers, with information relative to
proper
methods of handling and selling wine grapes fruits used in
winemaking and wines.
(ii) Provide the brewing and distilling industries, including
growers, brewers, distillers, distributors, and retailers, with
information relative to proper methods of handling and selling
hops, barley, beer, spirits, and mixed spirit drinks.
(iii) (c)
Provide for market surveys and
analyses for purposes
of expanding existing markets and creating new and larger markets
for
wine grapes and wines.Michigan
agricultural products such as
fruits, hops, and barley, that are used in the production of wine,
cider, beer, spirits, and mixed spirit drinks.
(iv) (d)
Provide for the promotion of the
sale of Michigan
wine
grapes and wines agricultural
products such as fruits, hops,
and barley, that are used in the production of wine, cider, beer,
spirits, and mixed spirit drinks for the purpose of maintaining or
expanding present markets and creating new and larger domestic and
foreign markets.
(v) (e)
Develop and administer financial
aid programs to wine
grape
growers of fruits used in winemaking to encourage the
increased
planting in this state of desirable grape fruit varieties
in microclimates determined to provide the best conditions for
producing quality wines.
(vi) Develop and administer financial aid programs to hops
growers to encourage increased planting in this state of desirable
hops varieties in microclimates determined to provide the best
conditions for producing quality beer.
(vii) Develop and administer financial aid programs to barley
growers to encourage increased planting in this state of desirable
barley varieties in microclimates determined to provide the best
conditions for producing quality beer.
(viii) Establish educational partnerships to benefit the beer,
wine, cider, spirits, and mixed spirit drink industries.
(8) The department of agriculture and rural development shall
administer the grants awarded under subsection (7).
(9) The council shall do all of the following:
(a) Apply for and accept grants or contributions from the
federal government or any of its agencies, the state, or other
public or private agencies to be used for any of the purposes of
this section and to do any and all things within its express or
implied powers necessary or desirable to secure that financial or
other aid or cooperation in the carrying out of any of the purposes
of this section.
(b) Invite the chief executive officer of the Michigan
economic development corporation or his or her designee to attend
at least 1 council meeting annually to inform the council about
partnership activities and opportunities related to the marketing
and promotion of Michigan agricultural products such as fruits,
hops, and barley, that are used in the production of wine, cider,
beer, spirits, and mixed spirit drinks.
(c) Invite the director of the department of licensing and
regulatory affairs to attend at least 1 council meeting annually to
inform the council about funding activities affecting the council.
(d) Prepare and adopt an annual budget.
(10) Based on the information provided to the council under
subsection (9)(b) and (c), the council may do either or both of the
following:
(a) Take actions that will enhance the marketing and promotion
of Michigan agricultural products, such as fruits, hops, and
barley, that are used in the production of wine, cider, beer,
spirits, and mixed spirit drinks.
(b) Annually review and adopt strategies for marketing and
promotion of Michigan agricultural products, such as fruits, hops,
and barley, that are used in the production of wine, cider, beer,
spirits, and mixed spirit drinks.
(11) (8)
The council may promulgate rules
pursuant to the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328, for the purposes of implementing and enforcing this
section.
However, a rule the
council shall not be promulgated
promulgate a rule that conflicts with a rule promulgated by the
commission
pursuant to under section 215.
(12) Except as otherwise provided in this subsection, the
council shall not engage in lobbying. This subsection does not
prohibit the council or a council member or council employee from
providing technical information to the legislature or to the
department of agriculture and rural development, regardless of
whether the council, council member, or council employee is
appearing before an officially convened legislative committee or
department of agriculture and rural development hearing panel, if
the technical information is related to the council's duties under
this section.
(13) This section does not prevent the council from
establishing a commodity committee under the agriculture
commodities marketing act, 1965 PA 232, MCL 290.651 to 290.674.
(14) (9)
As used in this section: ,
"council"
(a) "Cider" means an alcoholic beverage made from the
fermentation of juice from primarily apples or pears, or both,
which contains not less than 1/2 of 1% and not more than 8.5% of
alcohol by volume. Cider may be still or carbonated and may contain
other fruits, spices, botanicals, or other flavors.
(b)
"Council" means the grape
and wine industry Michigan
craft
beverage
council created described in subsection (1).
(c) "Large brewer" means a brewer that produces in total at
least 60,000 barrels of beer and not more than 1,000,000 barrels of
beer per year. In determining the barrel threshold under this
subdivision, all brands and labels of a brewer, whether brewed in
this state or outside this state, must be combined and all
facilities for the production of beer that are owned or controlled
by the same person are treated as a single facility.
(d) "Lobbying" means that term as defined in section 5 of 1978
PA 472, MCL 4.415.
(e) "Technical information" means that term as defined in
section 5 of 1978 PA 472, MCL 4.415.
Enacting section 1. This amendatory act takes effect October
1, 2018.
Enacting section 2. This amendatory act does not take effect
unless Senate Bill No. 440 of the 99th Legislature is enacted into
law.
