Bill Text: MI HB5579 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Liquor; retail sales; certain out-of-state wine retailers to sell wine directly to consumers; allow, and provide for a spirits shipper license. Amends secs. 203, 204, 537 & 609c of 1998 PA 58 (MCL 436.1203 et seq.).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2020-03-05 - Bill Electronically Reproduced 03/05/2020 [HB5579 Detail]
Download: Michigan-2019-HB5579-Introduced.html
HOUSE BILL NO. 5579
March 04, 2020, Introduced by Rep. Steven
Johnson and referred to the Committee on Regulatory Reform.
A bill to amend 1998 PA 58, entitled
"Michigan liquor control code of 1998,"
by amending sections 203, 204, 537, and 609c (MCL 436.1203, 436.1204, 436.1537, and 436.1609c), section 203 as amended by 2016 PA 520, section 204 as added by 2018 PA 178, section 537 as amended by 2018 PA 560, and section 609c as added by 2017 PA 130.
the people of the state of michigan enact:
Sec. 203. (1) Except as provided in this section and
section 301, a person shall not sell, deliver, or import alcoholic liquor,
including alcoholic liquor for personal use, in this state unless the sale,
delivery, or importation is made by the commission, the commission's authorized
agent or distributor, an authorized distribution agent approved by order of the
commission, a person licensed by the commission, or by prior written order of
the commission.
(2) Notwithstanding R
436.1011(7)(b) and R 436.1527 of the Michigan Administrative Code and except as
provided in subsections (3), (12), (13), (14),
(15), and (16),
(17), (18), and (20) a
retailer shall not deliver alcoholic liquor to a consumer in this state at the
home or business of the consumer or at any location away from the licensed
premises of the retailer. The purpose of this subsection is to exercise this
state's authority under section 2 of amendment XXI of the constitution of the
United States, to maintain the inherent police powers to regulate the
transportation and delivery of alcoholic liquor, and to promote a transparent
system for the transportation and delivery of alcoholic liquor. The regulation
described in this subsection is considered necessary for both of the following
reasons:
(a) To promote the public
health, safety, and welfare.
(b) To maintain strong,
stable, and effective regulation by having beer and wine sold by retailers to
consumers in this state by passing through the 3-tier distribution system
established under this act.
(3) For purposes of
subsection (1), a retailer that holds a specially designated merchant license
located in this state or a licensed
qualified out-of-state retailer may use a common carrier to
deliver wine to a consumer in this state. A retailer or a licensed qualified out-of-state retailer that
uses a common carrier to deliver wine to a consumer under this subsection shall
comply with all of the following, as applicable:
(a) Pay any applicable
taxes to the commission and pay any applicable taxes to the department of
treasury as directed by the department of treasury. On the request of the
department of treasury, a retailer or licensed qualified out-of-state retailer shall
furnish an affidavit to verify payment.
(b) Comply with all laws
of this state, including, but not limited to, the prohibition on sales to
minors.
(c) Verify the age of the
individual placing the order by obtaining from him or her a copy of a photo
identification issued by this state, another state, or the federal government
or by using an identification verification service. The person receiving and
accepting the order on behalf of the retailer or licensed qualified out-of-state retailer shall
record the name, address, date of birth, and telephone number of the individual
placing the order on the order form or other verifiable record of a type and
generated in a manner approved by the commission and provide a duplicate to the
commission.
(d) On request of the
commission, make available to the commission any document used to verify the
age of the individual ordering or receiving the wine from the retailer or licensed qualified out-of-state retailer.
(e) Stamp, print, or
label on the outside of the shipping container that the package "Contains
Alcohol. Must be delivered to a person 21 years of age or older". The
recipient at the time of the delivery shall provide identification verifying
his or her age and sign for the delivery.
(f) Place a label on the
top panel of the shipping container containing the name and address of the
individual placing the order and the name of the designated recipient if
different from the name of the individual placing the order.
(4) For purposes of
subsection (1), a direct shipper may sell, deliver, or import wine to consumers
in this state by means of any mail order, internet, telephone, computer,
device, or other electronic means, or sell directly to a consumer on the winery
premises. A direct shipper that sells, delivers, or imports wine to a consumer
under this subsection shall comply with all of the following:
(a) Hold a direct shipper
license.
(b) Pay any applicable
taxes to the commission and pay any applicable taxes to the department of
treasury as directed by the department of treasury. On the request of the
department of treasury, a direct shipper shall furnish an affidavit to verify
payment.
(c) Comply with all laws
of this state, including, but not limited to, the prohibition on sales to
minors.
(d) Verify the age of the
individual placing the order by obtaining from him or her a copy of a photo
identification issued by this state, another state, or the federal government
or by using an identification verification service. The person receiving and
accepting the order on behalf of the direct shipper shall record the name,
address, date of birth, and telephone number of the individual placing the
order on the order form or other verifiable record of a type and generated in a
manner approved by the commission and provide a duplicate to the commission.
(e) On request of the
commission, make available to the commission any document used to verify the
age of the individual ordering or receiving the wine from the direct shipper.
(f) Stamp, print, or
label on the outside of the shipping container that the package "Contains
Alcohol. Must be delivered to a person 21 years of age or older." The
recipient at the time of the delivery shall provide photo identification
verifying his or her age and sign for the delivery.
(g) Place a label on the
top panel of the shipping container containing the name and address of the
individual placing the order and the name of the designated recipient if
different from the name of the individual placing the order. The direct shipper
must have received a registration number of approval from the commission for
any wine imported into this state. However, the registration number of approval
from the commission is not required to be on the invoice or on the label of the
wine that the direct shipper sells, delivers, or imports to a consumer in this
state.
(h) Direct ship not more
than 1,500 9-liter cases, or 13,500 liters in total, of wine in a calendar year
to consumers in this state. If a direct shipper, whether located in this state
or outside this state, owns, in whole or in part, or commonly manages 1 or more
direct shippers, it shall not in combination ship to consumers in this state
more than 13,500 liters of wine in the aggregate.
(i) Pay wine taxes
quarterly and report to the commission quarterly the total amount of wine, by
type, brand, and price, shipped to consumers in this state during the preceding
calendar quarter, and the order numbers.
(j) Authorize and allow
the commission and the department of treasury to conduct an audit of the direct
shipper's records.
(k) Consent and submit to
the jurisdiction of the commission, the department of treasury, and the courts
of this state concerning enforcement of this section and any related laws,
rules, and regulations.
(5)
For purposes of subsection (1), a qualified out-of-state retailer may sell,
deliver, or import wine to consumers in this state by means of any mail order,
internet, telephone, computer, device, or other electronic means. A qualified
out-of-state retailer that sells, delivers, or imports wine to a consumer under
this subsection shall comply with all of the following:
(a)
Hold a qualified out-of-state retailer license granted under subsection (14).
(b)
Pay any applicable taxes to the commission and pay any applicable taxes to the
department of treasury as directed by the department of treasury. On the
request of the department of treasury, a qualified out-of-state retailer shall
furnish an affidavit to verify payment.
(c)
Comply with all laws of this state, including, but not limited to, the
prohibition on sales to minors.
(d)
Verify the age of the individual placing the order by obtaining from him or her
a copy of a photo identification issued by this state, another state, or the
federal government or by using an identification verification service. The person
receiving and accepting the order on behalf of the qualified out-of-state
retailer shall record the name, address, date of birth, and telephone number of
the individual placing the order on the order form or other verifiable record
of a type and generated in a manner approved by the commission and provide a
duplicate to the commission.
(e)
On request of the commission, make available to the commission any document
used to verify the age of the individual ordering or receiving the wine from
the qualified out-of-state retailer.
(f)
Stamp, print, or label on the outside of the shipping container that the
package "Contains Alcohol. Must be delivered to a person 21 years of age
or older." The recipient at the time of the delivery shall provide photo
identification verifying his or her age and sign for the delivery.
(g)
Place a label on the top panel of the shipping container containing the name
and address of the individual placing the order and the name of the designated
recipient if different from the name of the individual placing the order. The
qualified out-of-state retailer must have received a registration number of
approval from the commission for any wine imported into this state. However,
the registration number of approval from the commission is not required to be
on the invoice or on the label of the wine that the qualified out-of-state
retailer sells, delivers, or imports to a consumer in this state.
(h)
Authorize and allow the commission and the department of treasury to conduct an
audit of the qualified out-of-state retailer's records.
(i)
Consent and submit to the jurisdiction of the commission, the department of
treasury, and the courts of this state concerning enforcement of this section
and any related laws, rules, and regulations.
(6)
(5) For a delivery of wine through the use of a common
carrier under subsection (3), a person taking the order on behalf of the
retailer or a licensed qualified
out-of-state retailer shall comply with subsection (3)(b) to (f).
For a sale, delivery, or importation of wine occurring by any means described
in subsection (4), a person taking the order on behalf of the direct shipper
shall comply with subsection (4)(c) to (g). For a sale, delivery, or importation of wine occurring by any
means described in subsection (5), a person taking the order on behalf of the
qualified out-of-state retailer shall comply with subsection (5)(c) to (g).
(7)
(6) A person that delivers the wine for a direct shipper or that delivers the spirits for a spirits shipper under
this section shall verify that the individual accepting delivery is 21 years of
age or older and is the individual who placed the order or the designated
recipient, is an individual 21 years of age or older currently occupying or
present at the address, or is an individual otherwise authorized through a rule
promulgated under this act by the commission to receive alcoholic liquor under
this section. If the delivery person, after a diligent inquiry, determines that
the purchaser or designated recipient is not 21 years of age or older, the
delivery person shall return the wine to the direct shipper or return the spirits to the spirits shipper, as
applicable. A delivery person who returns wine to the direct
shipper or returns spirits to the spirits
shipper, as applicable, because the purchaser or designated
recipient is not 21 years of age or older is not liable for any damages
suffered by the purchaser, or direct shipper, or spirits shipper, as applicable.
(8)
A person that delivers the wine for a qualified out-of-state retailer under
this section shall verify that the individual accepting delivery is 21 years of
age or older and is the individual who placed the order or the designated
recipient, is an individual 21 years of age or older currently occupying or
present at the address, or is an individual otherwise authorized through a rule
promulgated under this act by the commission to receive wine under this
section. If the delivery person, after a diligent inquiry, determines that the
purchaser or designated recipient is not 21 years of age or older, the delivery
person shall return the wine to the qualified out-of-state retailer. A delivery
person who returns wine to the qualified out-of-state retailer because the
purchaser or designated recipient is not 21 years of age or older is not liable
for any damages suffered by the purchaser or qualified out-of-state retailer.
(9)
(7) All Except as otherwise provided under
this section, all spirits for
sale, use, storage, or distribution in this state shall must originally
be purchased by and imported into the state by the commission, or by prior
written authority of the commission.
(10)
(8) This section does not apply to alcoholic liquor
brought into this state for personal or household use in an amount permitted by
federal law by an individual 21 years of age or older at the time of reentry
into this state from without outside the territorial limits of the
United States if the individual has been outside the territorial limits of the
United States for more than 48 hours and has not brought alcoholic liquor into
the United States during the preceding 30 days.
(11)
(9) An individual 21 years of age or older may do either
of the following in relation to alcoholic liquor that contains less than 21%
alcohol by volume:
(a) Personally transport
from another state, once in a 24-hour period, not more than 312 ounces of
alcoholic liquor for that individual's personal use, notwithstanding subsection
(1).
(b) Ship or import from
another state alcoholic liquor for that individual's personal use if that
personal importation is done in compliance with subsection (1).
(12)
(10) A direct shipper shall not sell, deliver, or import
wine to a consumer unless it applies for and is granted a direct shipper
license from the commission. This subsection does not prohibit wine tasting or
the selling at retail by a wine maker of wines he or she produced and bottled
or wine manufactured for that wine maker by another wine maker, if done in
compliance with this act. Only the following persons qualify for the issuance
of a direct shipper license:
(a) A wine maker.
(b) A wine producer and
bottler located inside this country but outside of this state holding both a
federal basic permit issued by the Alcohol and Tobacco Tax and Trade Bureau of
the United States Department of Treasury and a license to manufacture wine in
its state of domicile.
(13)
(11) An applicant for a direct shipper license shall submit
an application to the commission in a written or electronic format provided by
the commission and accompanied by an application and initial license fee of
$100.00. The application must be accompanied by a copy or other evidence of the
existing federal basic permit or license, or both, held by the applicant. The
direct shipper may renew its license annually by submission of a license
renewal fee of $100.00 and a completed renewal application. The commission
shall use the fees collected under this section to conduct investigations and
audits of direct shippers. The failure to renew, or the revocation or
suspension of, the applicant's existing Michigan license, federal basic permit,
or license to manufacture wine in its state of domicile is grounds for
revocation or denial of the direct shipper license. If a direct shipper is
found guilty of violating this act or a rule promulgated by the commission, the
commission shall notify both the alcoholic liquor control agency in the direct shipper's
state of domicile and the Alcohol and Tobacco Tax and Trade Bureau of the
United States Department of Treasury of the violation.
(14)
A qualified out-of-state retailer shall not sell, deliver, or import wine to a
consumer unless it applies for and is granted a qualified out-of-state retailer
license from the commission. An applicant for a qualified out-of-state retailer
license shall submit an application to the commission in a written or
electronic format provided by the commission and accompanied by an application
and initial license fee of $200.00. The application must be accompanied by a
copy or other evidence of the applicant's state's equivalent to a retailer
license. The commission shall use the fees collected under this section to
conduct investigations and audits of qualified out-of-state retailers. The
failure to renew, or the revocation or suspension of, the applicant's existing
Michigan license or the applicant's state's equivalent to a retailer license is
grounds for revocation or denial of the qualified out-of-state retailer
license. If a qualified out-of-state retailer is found guilty of violating this
act or a rule promulgated by the commission, the commission shall notify the
alcoholic liquor control agency in the qualified out-of-state retailer's state
of domicile.
(15)
(12) A retailer that holds a specially designated merchant license,
a brewpub, a micro brewer, or an out-of-state entity that is the substantial
equivalent of a brewpub or micro brewer may deliver beer and wine, and a licensed qualified out-of-state retailer may
deliver wine, to the home or other designated location of a
consumer in this state if all of the following conditions are met:
(a) The beer or wine, or
both, as applicable, is
delivered by the retailer's, licensed
qualified out-of-state retailer's, brewpub's, or micro brewer's
employee.
(b) The retailer, licensed qualified out-of-state retailer, brewpub,
or micro brewer or its employee who delivers the beer or wine, or both, as applicable, verifies that the individual
accepting delivery is at least 21 years of age.
(c) If the retailer, licensed qualified out-of-state retailer, brewpub,
or micro brewer or its employee intends to provide service to consumers, the
retailer, brewpub, or micro brewer or its employee providing the service has
received alcohol server training through a server training program approved by
the commission.
(16)
(13) A retailer that holds a specially designated merchant
license or a licensed qualified
out-of-state retailer may use a third party that provides
delivery service to municipalities in this state that are surrounded by water
and inaccessible by motor vehicle to deliver beer and wine, and a licensed qualified out-of-state retailer may
use a third party that provides delivery service to municipalities in this
state that are surrounded by water and inaccessible by motor vehicle to deliver
wine, to the home or other designated location of that consumer
if the delivery service is approved by the commission and agrees to verify that
the individual accepting delivery of the beer and or wine, as applicable, is at least 21 years of
age.
(17)
(14) A retailer that holds a specially designated
distributor license may deliver spirits to the home or other designated
location of a consumer in this state if all of the following conditions are
met:
(a) The spirits are
delivered by the retailer's employee.
(b) The retailer or its
employee who delivers the spirits verifies that the individual accepting
delivery is at least 21 years of age.
(c) If the retailer or
its employee intends to provide service to consumers, the retailer or its
employee providing the service has received alcohol server training through a
server training program approved by the commission.
(18)
(15) A retailer that holds a specially designated merchant
license located in this state may use a third party facilitator service by
means of the internet or mobile application to facilitate the sale of beer or
wine to be delivered to the home or designated location of a consumer as provided
in subsection (12) (15) or this subsection, and a third
party facilitator service may deliver beer or wine to a consumer on behalf of a
retailer that holds a specially designated merchant license located in this
state, if all of the following conditions are met:
(a) If the third party
facilitator service delivers beer or wine under this subsection, the third
party facilitator service verifies that the individual accepting the delivery
of the beer or wine is at least 21 years of age.
(b) A manufacturer, warehouser,
wholesaler, outstate seller of beer, outstate seller of wine, supplier of
spirits, or outstate seller of mixed spirit drinks drink does
not have a direct or indirect interest in the third party facilitator service.
(c) A manufacturer,
warehouser, wholesaler, outstate seller of beer, outstate seller of wine,
supplier of spirits, or outstate seller of mixed spirit drinks drink does not aid or assist a third
party facilitator service by gift, loan of money or property of any
description, or other valuable thing as defined in section 609, and a third
party facilitator service does not accept the same.
(d) The retailer or
consumer pays the fees associated with deliveries provided for under this
subsection.
(e) The third party
facilitator service offers services for all brands available at the retail
location.
(19)
A licensed qualified out-of-state retailer may use a third party facilitator
service by means of the internet or mobile application to facilitate the sale
of wine to be delivered to the home or designated location of a consumer as
provided in subsection (15) or this subsection, and a third party facilitator
service may deliver wine to a consumer on behalf of a licensed qualified
out-of-state retailer, if all of the following conditions are met:
(a)
If the third party facilitator service delivers wine under this subsection, the
third party facilitator service verifies that the individual accepting the
delivery of the wine is at least 21 years of age.
(b)
A manufacturer, warehouser, wholesaler, outstate seller of beer, outstate
seller of wine, supplier of spirits, or outstate seller of mixed spirit drink
does not have a direct or indirect interest in the third party facilitator
service.
(c)
A manufacturer, warehouser, wholesaler, outstate seller of beer, outstate
seller of wine, supplier of spirits, or outstate seller of mixed spirit drink
does not aid or assist a third party facilitator service by gift, loan of money
or property of any description, or other valuable thing as defined in section
609, and a third party facilitator service does not accept the same.
(d)
The licensed qualified out-of-state retailer or consumer pays the fees
associated with deliveries provided for under this subsection.
(e)
The third party facilitator service offers services for all brands available at
the retail location.
(20)
(16) A retailer that holds a specially designated
distributor license located in this state may use a third party facilitator
service by means of the internet or mobile application to facilitate the sale
of spirits to be delivered to the home or designated location of a consumer as
provided in subsection (14) (17) or this subsection, and a third
party facilitator service may deliver spirits to a consumer on behalf of a
retailer that holds a specially designated distributor license located in this
state, if all of the following conditions are met:
(a) If the third party
facilitator service delivers spirits under this subsection, the third party
facilitator service verifies that the individual accepting the delivery of the
spirits is at least 21 years of age.
(b) A manufacturer,
warehouser, wholesaler, outstate seller of beer, outstate seller of wine,
supplier of spirits, or outstate seller of mixed spirit drinks drink does not have a direct or indirect
interest in the third party facilitator service.
(c) A manufacturer,
warehouser, wholesaler, outstate seller of beer, outstate seller of wine,
supplier of spirits, or outstate seller of mixed spirit drinks drink does not aid or assist a third
party facilitator service by gift, loan of money or property of any description,
or other valuable thing as defined in section 609, and a third party
facilitator service does not accept the same.
(d) The retailer or
consumer pays the fees associated with deliveries provided for under this
subsection.
(e) The third party facilitator
service offers services for all brands available at the retail location.
(21)
(17) A third party facilitator service shall not deliver
beer, wine, or spirits to a consumer under subsection (15) or (16), (18), (19), or (20), as applicable, and shall not
facilitate the sale of beer, wine, or spirits under subsection (15) or (16), (18), (19), or (20), as applicable,
unless it applies for and is granted a third party facilitator service license
by the commission. The commission may charge a reasonable application fee,
initial license fee, and annual license renewal fee. The commission shall
establish a fee under this subsection by written order.
(22)
(18) If a third party facilitator service used by a
retailer that holds a specially designated merchant or specially designated
distributor license or a licensed
qualified out-of-state retailer under subsection (15) or (16), (18), (19), or (20), as applicable,
violates this section, the commission shall not treat the third party
facilitator service's violation as a violation by the retailer or licensed qualified out-of-state retailer.
(23)
(19) For purposes of subsection (1), a qualified micro
brewer or an out-of-state entity that is the substantial equivalent of a
qualified micro brewer may sell and deliver beer to a retailer in this state if
all of the following conditions are met:
(a) The retailer is not
located in a sales territory for which the qualified micro brewer has granted
exclusive sales rights to a wholesaler under sections 401 and 403 for the sale
of any brand or brands of beer produced by that micro brewer.
(b) The beer is sold and
delivered by an employee of the qualified micro brewer, not an agent, and is
transported and delivered using a vehicle owned by the qualified micro brewer.
(c) The qualified micro
brewer is in compliance with applicable state and federal law and applicable
regulatory provisions of this act and rules adopted by the commission under
this act including, but not limited to, those requirements related to each of
the following:
(i) Employees that sell and deliver beer to retailers.
(ii) Vehicles used to
deliver beer to retailers.
(iii) Price schedules
and temporary price reductions.
(24) (20) A common carrier that carries or transports
alcoholic liquor into this state to a person in this state shall submit
quarterly reports to the commission. A report required under this subsection
must include all of the following about each delivery to a consumer in this
state during the preceding calendar quarter:
(a) The name and business address of the person that ships
alcoholic liquor.
(b) The name and address of the recipient of alcoholic
liquor.
(c) The weight of alcoholic liquor delivered to a consignee.
(d) The date of the delivery.
(25) (21) A common carrier described in subsection (20) (24) shall maintain the
books, records, and documents supporting a report submitted under subsection (20) (24) for 3 years unless
the commission notifies the common carrier in writing that the books, records,
and supporting documents may be destroyed. Within 30 days after the
commission's request, the common carrier shall make the books, records, and
documents available for inspection during normal business hours. Within 30 days
after a local law enforcement agency's or local governmental unit's request,
the common carrier shall also make the books, records, and documents available
for inspection to a local law enforcement agency or local governmental unit
where the carrier resides or does business.
(26) (22) A third party facilitator service that delivers
beer, wine, or spirits to a consumer under subsection (15) or (16), (18), (19), or (20), as applicable, shall
submit quarterly reports to the commission. A report required under this
subsection must include all of the following about each delivery to a consumer
in this state during the preceding calendar quarter:
(a) The name and business address of the person that ships
beer, wine, or spirits.
(b) The name and address of the recipient of beer, wine, or
spirits.
(c) The weight of beer, wine, or spirits delivered to a
consignee.
(d) The date of the delivery.
(27) (23) A third party facilitator service shall
maintain the books, records, and documents supporting a report submitted under
subsection (22) (26) for 3 years unless
the commission notifies the third party facilitator service in writing that the
books, records, and supporting documents may be destroyed. Within 30 days after
the commission's request, the third party facilitator service shall make the
books, records, and documents available for inspection during normal business
hours. Within 30 days after a local law enforcement agency's or local
governmental unit's request, the third party facilitator service shall also
make the books, records, and documents available for inspection to a local law
enforcement agency or local governmental unit where the third party facilitator
service resides or does business.
(28) (24) A report submitted under subsection (20) (24) or (22) (26) is subject to
disclosure under the freedom of information act, 1976 PA 442, MCL 15.231 to
15.246.
(29) For purposes of subsection (1), a spirits shipper may
sell, deliver, or import spirits to consumers in this state by means of any
mail order, internet, telephone, computer, device, or other electronic means. A
spirits shipper that sells, delivers, or imports spirits to a consumer under
this subsection shall comply with all of the following:
(a) Hold a spirits shipper license.
(b) Pay any applicable taxes to the commission and pay any
applicable taxes to the department of treasury as directed by the department of
treasury. On the request of the department of treasury, a spirits shipper shall
furnish an affidavit to verify payment.
(c) Comply with all laws of this state, including, but not
limited to, the prohibition on sales to minors.
(d) Verify the age of the individual placing the order by
obtaining from him or her a copy of a photo identification issued by this
state, another state, or the federal government or by using an identification
verification service. The person receiving and accepting the order on behalf of
the spirits shipper shall record the name, address, date of birth, and
telephone number of the individual placing the order on the order form or other
verifiable record of a type and generated in a manner approved by the
commission and provide a duplicate to the commission.
(e) On request of the commission, make available to the
commission any document used to verify the age of the individual ordering or
receiving the spirits from the spirits shipper.
(f) Stamp, print, or label on the outside of the shipping
container that the package "Contains Alcohol. Must be delivered to a
person 21 years of age or older." The recipient at the time of the
delivery shall provide photo identification verifying his or her age and sign
for the delivery.
(g) Place a label on the top panel of the shipping container
containing the name and address of the individual placing the order and the
name of the designated recipient if different from the name of the individual
placing the order. The spirits shipper must have received a registration number
of approval from the commission for any spirits imported into this state.
However, the registration number of approval from the commission is not
required to be on the invoice or on the label of the spirits that the spirits
shipper sells, delivers, or imports to a consumer in this state.
(h) Direct ship not more than 1,500 9-liter cases, or 13,500
liters in total, of spirits in a calendar year to consumers in this state. If a
spirits shipper, whether located in this state or outside this state, owns, in
whole or in part, or commonly manages 1 or more spirits shippers, it shall not
in combination ship to consumers in this state more than 13,500 liters of spirits
in the aggregate.
(i) Authorize and allow the commission and the department of
treasury to conduct an audit of the spirits shipper's records.
(j) Consent and submit to the jurisdiction of the commission,
the department of treasury, and the courts of this state concerning enforcement
of this section and any related laws, rules, and regulations.
(30) A spirits shipper shall not sell, deliver, or import spirits
to a consumer unless it applies for and is granted a spirits shipper license
from the commission. This subsection does not prohibit spirits tasting or the
selling at retail by a distiller of spirits he or she produced and bottled or spirits
manufactured for that distiller by another distiller, if done in compliance
with this act. Only the following persons qualify for the issuance of a spirits
shipper license:
(a) A distiller.
(b) A small distiller.
(c) A spirits producer and bottler located inside this
country but outside of this state holding both a federal basic permit issued by
the Alcohol and Tobacco Tax and Trade Bureau of the United States Department of
Treasury and a license to manufacture spirits in its state of domicile.
(31) An applicant for a spirits shipper license shall submit
an application to the commission in a written or electronic format provided by
the commission and accompanied by an application and initial license fee of
$100.00. The application must be accompanied by a copy or other evidence of the
existing federal basic permit or license, or both, held by the applicant. The
spirits shipper may renew its license annually by submission of a license
renewal fee of $100.00 and a completed renewal application. The commission
shall use the fees collected under this section to conduct investigations and
audits of spirits shippers. The failure to renew, or the revocation or
suspension of, the applicant's existing Michigan license, federal basic permit,
or license to manufacture spirits in its state of domicile is grounds for
revocation or denial of the spirits shipper license. If a spirits shipper is
found guilty of violating this act or a rule promulgated by the commission, the
commission shall notify both the alcoholic liquor control agency in the spirits
shipper's state of domicile and the Alcohol and Tobacco Tax and Trade Bureau of
the United States Department of Treasury of the violation.
(32) (25) As used in this section:
(a) "Common carrier" means a company that
transports goods, on reasonable request, on regular routes and at set rates.
(b) "Computer" means any connected, directly
interoperable or interactive device, equipment, or facility that uses a
computer program or other instructions to perform specific operations including
logical, arithmetic, or memory functions with or on computer data or a computer
program and that can store, retrieve, alter, or communicate the results of the
operations to a person, computer program, computer, computer system, or
computer network.
(c) "Computer network" means the interconnection of
hardwire or wireless communication lines with a computer through remote
terminals, or a complex consisting of 2 or more interconnected computers.
(d) "Computer program" means a series of internal
or external instructions communicated in a form acceptable to a computer that
directs the functioning of a computer, computer system, or computer network in
a manner designed to provide or produce products or results from the computer,
computer system, or computer network.
(e) "Computer system" means a set of related,
connected or unconnected, computer equipment, devices, software, or hardware.
(f) "Consumer" means an individual who purchases
beer, wine, or spirits for personal consumption and not for resale.
(g) "Device" includes, but is not limited to, an
electronic, magnetic, electrochemical, biochemical, hydraulic, optical, or
organic object that performs input, output, or storage functions by the
manipulation of electronic, magnetic, or other impulses.
(h) "Diligent inquiry" means a diligent good faith
effort to determine the age of an individual, that includes at least an
examination of an official Michigan operator's or chauffeur's license, an
official Michigan personal identification card, or any other bona fide picture
identification that establishes the identity and age of the individual.
(i) "Direct shipper" means a person who sells,
delivers, or imports wine, to consumers in this state, that he or she produces
and bottles or wine that is manufactured by a wine maker for another wine maker
and that is transacted or caused to be transacted through the use of any mail
order, internet, telephone, computer, device, or other electronic means, or
sells directly to consumers on the winery premises.
(j) "Identification verification service" means an
internet-based service approved by the commission specializing in age and
identity verification.
(k) "Licensed qualified out-of-state retailer"
means a qualified out-of-state retailer that is licensed under subsection (14).
(l) (k) "Mobile application" means a
specialized software program downloaded onto a wireless communication device.
(m) (l) "Qualified
micro brewer" means a micro brewer that produces in total less than 1,000
barrels of beer per year. In determining the 1,000-barrel threshold, all brands
and labels of a micro brewer, whether brewed in this state or outside this
state, must be combined.
(n) "Qualified out-of-state retailer" means a
person that holds a license in its state of domicile that is substantially
equivalent to a retailer.
(o) "Spirits shipper" means a person who sells,
delivers, or imports spirits, to consumers in this state, that he or she
produces and bottles, or spirits that are manufactured by a distiller for
another distiller and that is transacted or caused to be transacted through the
use of any mail order, internet, telephone, computer, device, or other
electronic means.
(p) (m) "Third party facilitator service"
means a person licensed by the commission to do any of the following:
(i) Facilitate the
sale of beer or wine to a consumer as provided in subsection (15) (18) or (19), as applicable, on
behalf of a retailer that holds a specially designated merchant license located
in this state or a licensed
qualified out-of-state retailer.
(ii) Facilitate the
sale of spirits to a consumer as provided in subsection (16) (20) on behalf of a
retailer that holds a specially designated distributor license located in this
state.
(iii) Deliver beer or
wine to a consumer as provided in subsection (15) (18) or (19), as applicable, on behalf of a
retailer that holds a specially designated merchant license located in this
state or
a licensed qualified out-of-state retailer.
(iv) Deliver spirits
to a consumer as provided in subsection (16) (20) on behalf of a retailer that holds a
specially designated distributor license located in this state.
Sec. 204. (1) Except for an individual who brings,
transports, ships, or imports alcoholic liquor into this state under section 203(8) or (9), 203(10) or (11), as applicable, for a
retailer, or for sacramental wines imported under section 301, a person shall
not sell, deliver, or import beer, wine, or mixed spirit drink in this state
unless the person is 1 of the following:
(a) A supplier as that
term is defined in section 603.
(b) A licensed direct
shipper described in section 203(10).203(12).
(c)
A licensed qualified out-of-state retailer as that term is defined in section
203.
(d)
(c) A wholesaler.
(2) Except for an
individual who brings, transports, ships, or imports alcoholic liquor into this
state under section 203(8) or (9), 203(10) or (11), as applicable, for a
retailer, or for sacramental wines imported under section 301, a person
described in subsection (1) may only sell, deliver, or import beer, wine, or
mixed spirit drink in this state in 1 of the following ways:
(a) A licensed direct
shipper may sell to a consumer under section 203.
(b)
A licensed qualified out-of-state retailer may sell to a consumer under section
203.
(c)
(b) An outstate seller of beer, outstate seller of wine,
or outstate seller of mixed spirit drink, may deliver the beer, wine, or mixed
spirit drink to the licensed premises of the wholesalers designated to sell and
deliver the beer, wine, or mixed spirit drink to the individual licensed
location of the retailer in the wholesaler's sales territory under section 305
or 403, as applicable.
(d)
(c) A wholesaler that picks up the beer, wine, or mixed
spirit drink from the premises of an outstate seller of beer, outstate seller
of wine, or outstate seller of mixed spirit drink, may deliver the beer, wine,
or mixed spirit drink to the licensed premises of the wholesaler designated to
sell and deliver the beer, wine, or mixed spirit drink to the individual
licensed location of the retailer in the wholesaler's sales territory under
section 305 or 403, as applicable.
(e)
(d) An outstate seller of beer, outstate seller of wine,
or outstate seller of mixed spirit drink may deliver the beer, wine, or mixed
spirit drink to its licensed premises in this state. However, the beer, wine,
or mixed spirit drink must be delivered to the licensed premises of the
wholesaler designated to sell and deliver the beer, wine, or mixed spirit drink
to the individual licensed location of the retailer in the wholesaler's sales
territory under section 305 or 403, as applicable.
(f)
(e) A brewer, wine maker, or mixed spirit drink
manufacturer that has a manufacturing plant located outside of this state may
deliver the beer, wine, or mixed spirit drink manufactured in the manufacturing
plant to its licensed premises in this state. However, the beer, wine, or mixed
spirit drink must be delivered to the licensed premises of the wholesaler
designated to sell and deliver the beer, wine, or mixed spirit drink to the
individual licensed location of the retailer in the wholesaler's sales
territory under section 305 or 403, as applicable.
(g)
(f) Except as otherwise provided in this act, a brewer,
wine maker, or mixed spirit drink manufacturer may deliver the beer, wine, or
mixed spirit drink to the licensed premises of the wholesaler designated to
sell and deliver the beer, wine, or mixed spirit drink to the individual
licensed location of the retailer in the wholesaler's sales territory under
section 305 or 403, as applicable.
(3) Except as otherwise
provided in subsection (4), both of the following apply to beer, wine, or mixed
spirit drink that is delivered to a wholesaler under this act:
(a) The wholesaler shall
maintain the beer, wine, or mixed spirit drink on the wholesaler's licensed
premises.
(b) The wholesaler shall
make the beer, wine, or mixed spirit drink maintained on the wholesaler's
licensed premises as required under subdivision (a) available for inspection by
the commission for at least 24 hours before the wholesaler delivers the beer,
wine, or mixed spirit drink to a retailer.
(4) For beer, wine, or
mixed spirit drink that has been delivered to a wholesaler under this act,
subsection (3) does not apply and the wholesaler may deliver beer, wine, or
mixed spirit drink to a retailer if all of the following apply:
(a) Either of the
following applies:
(i) The wholesaler cannot fulfill the retailer's order for the
beer, wine, or mixed spirit drink from the inventory currently available on the
wholesaler's licensed premises.
(ii) The wholesaler
intends to deliver the beer, wine, or mixed spirit drink to a special licensee,
including as provided under section 526, before the 24-hour period under
subsection (3)(b) has expired.
(b) Either of the following applies:
(i) The beer, wine,
or mixed spirit drink has been delivered to the address of the wholesaler's licensed
premises.
(ii) The wholesaler
picked up the beer, wine, or mixed spirit drink from the licensed premises of
any of the following:
(A) A brewer.
(B) A wine maker.
(C) A mixed spirit manufacturer.
(D) An outstate seller of beer.
(E) An outstate seller of wine.
(F) An outstate seller of mixed spirit drink.
(G) A wholesaler.
(c) The wholesaler maintains the invoice of the delivery and
attaches documentation to the invoice that details each product and the amount
of each product that was not placed on the wholesaler's floor.
(5) This section does not prohibit a brewer, micro brewer,
wine maker, small wine maker, or retailer from selling alcoholic liquor or
nonalcoholic beverages as provided in this act.
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 if 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)
Spirit shippers, where spirits may be sold and shipped directly to the
consumer.
(f)
Qualified out-of-state retailers, where wine may be sold and shipped directly
to the consumer.
(g)
(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.
(h)
(f) Specially designated merchants, where beer and wine
may be sold for consumption off the premises only.
(i)
(g) Specially designated distributors, where spirits and
mixed spirit drink may be sold for consumption off the premises only.
(j)
(h) Special licensee, where beer and wine or beer, wine,
mixed spirit drink, and spirits may be sold for consumption on the premises
only.
(k)
(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.
(l) (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.
(m) (k) Micro brewers and brewers, where beer
manufactured by the micro brewer or brewer may be sold in an approved tasting
room under section 536 to a consumer for consumption on or off the
manufacturing premises.
(n) (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.
(o) (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.
(p) (n) Motorsports event licensee, where beer and wine
may be sold for consumption on the premises during sanctioned motorsports
events only.
(q) (o) Wine maker or small wine maker, where wine
manufactured by the wine maker or small wine maker may be sold by direct
shipment as provided in section 203, at retail for consumption on or off the
premises in an approved tasting room under section 536, or as otherwise
provided for in this act.
(r) (p) Small wine maker, where wine bottled by the
small wine maker may be sold by direct shipment as provided in section 203, at
retail for consumption on or off the premises in an approved tasting room under
section 536, or as otherwise provided for in this act.
(s) (q) Wine maker or small wine maker, where shiners as that term is defined in section
111 may be sold by direct shipment as provided in section 203, at
retail for consumption on or off the premises in an approved tasting room under
section 536, or as otherwise provided for in this act.
(t) (r) Distiller or small distiller, where spirits
manufactured by the distiller or small distiller may be sold to the consumer at
retail for consumption on or off the premises in an approved tasting room under
section 536.
(u) (s) 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.
(v) (t) 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 manufactured or bottled by the small wine maker and
shiners as that term is
defined in section 111 may be sampled and sold at a farmers'
market for consumption off the licensed premises.
(w) (u) A brandy manufacturer where brandy manufactured
by the brandy manufacturer may be sold at retail for consumption on or off the
premises in an approved tasting room under section 536 located on the
manufacturing premises of the brandy manufacturer.
(x) (v) A mixed spirit drink manufacturer where mixed
spirit drink manufactured by the mixed spirit drink manufacturer may be sold at
retail for consumption on or off the premises in an approved tasting room under
section 536.
(2) 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.
(3) While a beer or wine tasting is conducted under
subsection (2), 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.
(4) A wholesaler shall not conduct or participate in beer and
wine tastings allowed under a permit issued under subsection (2).
(5) A beer and wine tasting under subsection (2) may only be
conducted during the legal hours for the sale of alcoholic liquor by the
licensee.
(6) 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),
(1)(l), but only as to beer
that the brewpub produces.
(ii) A micro brewer or
brewer described in subsection (1)(k).(1)(m).
(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.
(7) A wine maker, brandy manufacturer, small distiller, micro
brewer, brewer, or brewpub shall provide water, and may, in the sole discretion
of the wine maker, brandy manufacturer, small distiller, micro brewer, brewer,
or brewpub, sell or provide other nonalcoholic beverages, for consumption on or
off the premises where the wine maker, brandy manufacturer, small distiller,
micro brewer, brewer, or brewpub is licensed.
(8) As used in this section:
(a) "Eligible merchant" means a person that holds a
specially designated merchant 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.
Sec. 609c. (1) A manufacturer that sells direct to a
retailer as provided under section 203(19) 203(23) or a wholesaler may refund to a retailer the
amount the retailer paid for beer or wine, as applicable, or a manufacturer
that sells direct to a retailer as provided under section 203(19) 203(23) or a wholesaler may replace that
beer or wine for any of the following reasons:
(a) The beer or wine is
outdated.
(b) The beer or wine is
defective.
(c) An error in the beer
or wine delivered.
(d) The beer or wine may
no longer be lawfully sold.
(e) The termination of
the retailer's business.
(f) The formula, proof,
label, or container of the beer or wine is changed.
(g) The beer or wine is
discontinued.
(h) The retailer is only
open a portion of the year and the beer or wine is likely to spoil during the
off-season.
(2) If beer is within 30
days of its out-of-date code, a manufacturer that sells direct to a retailer as
provided under section 203(19) 203(23) or a wholesaler may refund to a
retailer the amount the retailer paid for the beer.
(3) A manufacturer that sells direct to a retailer as provided under section 203(19) 203(23) or a wholesaler may only issue a refund or replacement under this section for beer or wine that the manufacturer or wholesaler sold to the retailer.
