Bill Text: MI HB5175 | 2017-2018 | 99th Legislature | Engrossed
Bill Title: Liquor; licenses; qualifications of an eligible merchant that may fill and sell growlers of beer; revise. Amends sec. 537 of 1998 PA 58 (MCL 436.1537).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2018-03-01 - Assigned Pa 40'18 With Immediate Effect [HB5175 Detail]
Download: Michigan-2017-HB5175-Engrossed.html
HB-5175, As Passed House, December 6, 2017
SUBSTITUTE FOR
HOUSE BILL NO. 5175
A bill to amend 1998 PA 58, entitled
"Michigan liquor control code of 1998,"
by amending section 537 (MCL 436.1537), as amended by 2016 PA 514.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 537. (1) The following classes of vendors may sell
alcoholic liquor at retail as provided in this section:
(a) Taverns, where beer and wine may be sold for consumption
on the premises only.
(b) Class C licensee, where beer, wine, mixed spirit drink,
and spirits may be sold for consumption on the premises.
(c) Clubs, where beer, wine, mixed spirit drink, and spirits
may be sold for consumption on the premises only to bona fide
members where consumption is limited to these members and their
bona fide guests, who are 21 years of age or older.
(d) Direct shippers, where wine may be sold and shipped
directly to the consumer.
(e) Hotels of class A, where beer and wine may be sold for
consumption on the premises and in the rooms of bona fide
registered guests. Hotels of class B where beer, wine, mixed spirit
drink, and spirits may be sold for consumption on the premises and
in the rooms of bona fide registered guests.
(f) Specially designated merchants, where beer and wine may be
sold for consumption off the premises only.
(g) Specially designated distributors, where spirits and mixed
spirit drink may be sold for consumption off the premises only.
(h) Special licensee, where beer and wine or beer, wine, mixed
spirit drink, and spirits may be sold for consumption on the
premises only.
(i) Dining cars or other railroad or Pullman cars, watercraft,
or aircraft, where alcoholic liquor may be sold for consumption on
the premises only, subject to rules promulgated by the commission.
(j) Brewpubs, where beer manufactured on the premises by the
licensee may be sold for consumption on or off the premises by any
of the following licensees:
(i) Class C.
(ii) Tavern.
(iii) Class A hotel.
(iv) Class B hotel.
(k) Micro brewers and brewers, where beer produced by the
micro brewer or brewer may be sold to a consumer for consumption on
or off the brewery premises.
(l) Class G-1 licensee, where beer, wine, mixed spirit drink,
and spirits may be sold for consumption on the premises only to
members required to pay an annual membership fee and consumption is
limited to these members and their bona fide guests.
(m) Class G-2 licensee, where beer and wine may be sold for
consumption on the premises only to members required to pay an
annual membership fee and consumption is limited to these members
and their bona fide guests.
(n) Motorsports event licensee, where beer and wine may be
sold for consumption on the premises during sanctioned motorsports
events only.
(o) Wine maker, where wine may be sold by direct shipment, at
retail on the licensed premises, and as provided for in subsections
(2) and (3).
(p) Small distiller selling not more than 60,000 gallons of
spirits manufactured by that licensee to the consumer at retail for
consumption on or off the licensed premises in the manner provided
for in section 534.
(q) Nonpublic continuing care retirement center license, where
beer, wine, mixed spirit drink, mixed wine drink, and spirits may
be sold at retail and served on the licensed premises to residents
and bona fide guests accompanying the resident for consumption only
on the licensed premises.
(r) A small wine maker or an out-of-state entity that is the
substantial equivalent of a small wine maker, that holds a farmer's
market permit, where wine may be sampled and sold at a farmer's
market for consumption off the licensed premises.
(2) A wine maker may sell wine made by that wine maker in a
restaurant for consumption on or off the premises if the restaurant
is owned by the wine maker or operated by another person under an
agreement approved by the commission and located on the premises
where the wine maker is licensed.
(3) A wine maker, with the prior written approval of the
commission, may conduct wine tastings of wines made by that wine
maker on the premises where the wine maker is licensed to
manufacture wine. The wine maker may charge for the samples.
(4) A wine maker, with the prior written approval of the
commission, may conduct wine tastings of wines made by that wine
maker and may sell the wine made by that wine maker for consumption
off the premises at a location other than the premises where the
wine maker is licensed to manufacture wine, under the following
conditions:
(a) The premises on which the wine tasting occurs conform to
local and state sanitation requirements.
(b) Payment of a $100.00 fee per location is made to the
commission.
(c) The wine tasting locations are considered licensed
premises, and the wine maker may include a charge for the samples.
(d) The wine tasting takes place during the legal hours for
the sale of alcoholic liquor by the licensee.
(e) The premises and the licensee comply with and are subject
to all applicable rules promulgated by the commission.
(5) Notwithstanding section 1025(1), an outstate seller of
beer, an outstate seller of wine, a wine maker, a brewer, a micro
brewer, or a specially designated merchant, or an agent of any of
those persons, that does not hold a license allowing the
consumption of alcoholic liquor on the premises at the same
licensed address, may conduct beer and wine tastings on the
licensed premises of a specially designated merchant under the
following conditions:
(a) A customer is not charged for the tasting of beer or wine.
(b) The tasting samples provided to a customer do not exceed 3
servings at up to 3 ounces per serving of beer or 3 servings at up
to 2 ounces of wine. A customer shall not be provided more than a
total of 3 samples of beer or wine within a 24-hour period per
licensed premises.
(c) The specially designated merchant, outstate seller of
beer, outstate seller of wine, wine maker, micro brewer, or brewer
has first obtained an annual beer and wine tasting permit approved
by the commission.
(d) The commission is notified, in writing, a minimum of 10
working days before the event, regarding the date, time, and
location of the event.
(6) During the time a beer or wine tasting is conducted under
subsection (5), a specially designated merchant, outstate seller of
beer, outstate seller of wine, wine maker, micro brewer, or brewer,
or its agent or employee who has successfully completed a server
training program as provided for in section 906, shall devote full
time to the beer and wine tasting activity and shall not perform
other duties, including the sale of alcoholic liquor for
consumption off the licensed premises. Beer and wine used for the
tasting must come from the specially designated merchant's
inventory, and all open bottles must be removed from the premises
on the same business day or resealed and stored in a locked,
separate storage compartment on the licensed premises when not
being used for the activities allowed by the permit.
(7) A wholesaler shall not conduct or participate in beer and
wine tastings allowed under a permit issued under subsection (5).
(8) A beer and wine tasting under subsection (5) may only be
conducted during the legal hours for the sale of alcoholic liquor
by the licensee.
(9) A brandy manufacturer or small distiller, with the prior
written approval of the commission, may conduct tastings of brandy
and spirits made by that brandy manufacturer or small distiller and
may sell the brandy and spirits made by that brandy manufacturer or
small distiller for consumption off the licensed premises at a
location other than the licensed premises where the brandy
manufacturer or small distiller is licensed to manufacture brandy
or spirits under the following conditions:
(a) The premises on which the brandy and spirits tastings
occur conform to local and state sanitation requirements.
(b) The brandy manufacturer or small distiller pays the
commission a $100.00 fee per location.
(c) The brandy and spirits tasting locations are considered
licensed premises.
(d) The brandy and spirits tasting takes place during the
legal hours for the sale of alcoholic liquor by the licensee.
(e) The premises and the license comply with and are subject
to all applicable rules promulgated by the commission.
(10) An eligible merchant may fill and sell growlers with beer
for consumption off the premises under the following conditions:
(a) The premises where the filling of growlers takes place
comply with the requirements for food service establishments under
the food law, 2000 PA 92, MCL 289.1101 to 289.8111.
(b) The growler is sealed and has a label affixed to it that
includes at least the brand name of the beer, the class of the
beer, the net contents of the container, and the name of the
retailer filling the growler. The label conditions described in
this subdivision do not apply to either of the following:
(i) A brewpub described in subsection (1)(j), but only as to
beer that the brewpub produces.
(ii) A micro brewer or brewer described in subsection (1)(k).
(c) The eligible merchant or his or her agent or employee
shall not fill a growler in advance of the sale.
(d) The eligible merchant or his or her agent or employee
shall only use containers that have a capacity of 5 gallons or more
to fill a growler.
(e) The beer to be dispensed has received a registration
number from the commission and has been approved for sale by the
commission.
(f) The eligible merchant complies with all applicable rules
promulgated by the commission.
(11) As used in this section:
(a) "Eligible merchant" means a person that holds a specially
designated
merchant license. and a specially designated
distributor,
class C, tavern, class A hotel, class B hotel, club,
class
G-1, or class G-2 license.
(b) "Growler" means any clean, refillable, resealable
container that is exclusively intended, and used only, for the sale
of beer for consumption off the premises and that has a liquid
capacity that does not exceed 1 gallon.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
