Bill Text: MI SB0049 | 2021-2022 | 101st Legislature | Engrossed
Bill Title: Liquor: permits; an on-premises tasting room and an off-premises tasting room held at same location; allow under certain conditions. Amends sec. 536 of 1998 PA 58 (MCL 436.1536).
Spectrum: Partisan Bill (Republican 8-0)
Status: (Passed) 2021-06-08 - Assigned Pa 0020'21 With Immediate Effect [SB0049 Detail]
Download: Michigan-2021-SB0049-Engrossed.html
SENATE BILL NO. 49
January 27, 2021, Introduced by Senators
LASATA, VICTORY, JOHNSON, NESBITT, DALEY, RUNESTAD, MACDONALD and
VANDERWALL and referred to the Committee on Regulatory Reform.
A bill to amend 1998 PA 58, entitled
"Michigan liquor control code of 1998,"
by amending section 536 (MCL 436.1536), as amended by 2020 PA 126.
The people of the state of michigan enact:
Sec. 536. (1)
Except as provided in section 105(13), the commission shall allow a person to be
licensed as more than 1 type of manufacturer in this state.
(2) A person that holds more than 1 type of manufacturing
license in this state shall meet all applicable provisions of this act for each
type of manufacturing license the person holds.
(3) Subject to the requirements of this section and section
537, the commission may approve a licensed manufacturer to operate 1 or more
tasting rooms.
(4) Brewers and micro brewers shall not have more approved
tasting rooms than allowed in section 411.
(5) A tasting room may be jointly operated by 2 or more
manufacturers if either of the following conditions is met:
(a) The manufacturers are owned by the same person and their
manufacturing premises share the same address.
(b) The manufacturers are not owned by the same person and
their manufacturing premises do not share the same address.
(6) A tasting room is treated as licensed premises for
purposes of this act.
(7) An approved tasting room located on the manufacturing
premises of 1 or more manufacturers that are owned by the same person and whose
manufacturing premises share the same address must comply with all of the
following:
(a) The commission must approve and issue an on-premises
tasting room permit to the manufacturer or manufacturers.
(b) The manufacturer or manufacturers must pay the $100.00
initial permit fee, which is renewable annually.
(c) The manufacturer or manufacturers must be approved for
the on-premises tasting room permit by the local legislative body in which the
proposed licensed premises will be located, except in a city having a
population of 600,000 or more or as provided in subsection (17).(18).
(d) The manufacturer or manufacturers must comply with the
server training requirements of section 906.
(e) The manufacturer or manufacturers must file with the
commission proof of financial responsibility providing security for liability
under section 801(2) of not less than $50,000.00 as provided in section 803.
(f) A separate on-premises tasting room permit is not
required for each license type for a person licensed by the commission under
any combination of brewer, micro brewer, wine maker, small wine maker,
distiller, small distiller, brandy manufacturer, or mixed spirit drink
manufacturer licenses issued to that person at the same manufacturing premises.
(g) The commission shall not issue to a manufacturer or
manufacturers a Sunday sales permit, catering permit, dance permit,
entertainment permit, specific purpose permit, extended hours permit, or authorization
for outdoor service unless the commission has issued an on-premises tasting
room permit to the manufacturer or manufacturers. A Sunday sales permit,
catering permit, dance permit, entertainment permit, specific purpose permit,
extended hours permit, or authorization for outdoor service may be issued
concurrently with the issuance of an on-premises tasting room permit.
(h) A brewer, micro brewer, wine maker, small wine maker,
distiller, small distiller, brandy manufacturer, or mixed spirit drink manufacturer
may own and operate a restaurant or allow another person to operate a
restaurant as part of the on-premises tasting room on the manufacturing
premises. If the brewer, micro brewer, wine maker, small wine maker, distiller,
small distiller, brandy manufacturer, or mixed spirit drink manufacturer allows
another person to operate a restaurant on the manufacturing premises, the
brewer, micro brewer, wine maker, small wine maker, distiller, small distiller,
brandy manufacturer, or mixed spirit drink manufacturer must hold a
participation permit naming as a participant the other person. The other person
must meet the requirements for a participant in R 436.1041(3) of the Michigan
Administrative Code.
(8) Subject to subsection (10), an approved tasting room
located off the manufacturing premises of 1 or more manufacturers, other than a
brewer, micro brewer, or mixed spirit drink manufacturer, that are owned by the
same person and whose manufacturing premises share the same address must comply
with all of the following:
(a) The commission must approve and issue an off-premises
tasting room license to the manufacturer or manufacturers.
(b) The manufacturer or manufacturers must pay the $100.00
initial license fee, which is renewable annually.
(c) The manufacturer or manufacturers must be approved for
the off-premises tasting room license by the local legislative body in which
the proposed licensed premises will be located, except in a city having a
population of 600,000 or more or as provided in subsection (17).(18).
(d) The manufacturer or manufacturers must comply with the
server training requirements of section 906 at the off-premises tasting room.
(e) The manufacturer or manufacturers must file with the
commission proof of financial responsibility providing security for liability
under section 801(2) of not less than $50,000.00 as provided in section 803 for
the off-premises tasting room.
(f) A separate off-premises tasting room license is not
required for each license type for a person licensed by the commission under
any combination of wine maker, small wine maker, distiller, small distiller, or
brandy manufacturer licenses issued to that person at the same manufacturing
premises.
(g) The commission shall not issue to a manufacturer or manufacturers
a Sunday sales permit, catering permit, dance permit, entertainment permit,
specific purpose permit, extended hours permit, authorization for outdoor
service, or permission to maintain a direct connection to unlicensed premises
unless the commission has issued an off-premises tasting room license to the
manufacturer or manufacturers. A Sunday sales permit, catering permit, dance
permit, entertainment permit, specific purpose permit, extended hours permit,
authorization for outdoor service, or permission to maintain a direct
connection to unlicensed premises may be issued concurrently with the issuance
of an off-premises tasting room license.
(9) Subject to subsection (10), an approved jointly operated
tasting room located off the manufacturing premises of 2 or more manufacturers,
other than a brewer, micro brewer, or mixed spirit drink manufacturer, that are
not owned by the same person and whose manufacturing premises do not share the
same address must comply with all of the following:
(a) The commission must approve and issue a joint
off-premises tasting room license to each of the manufacturers.
(b) Each manufacturer must pay the $100.00 initial license
fee, which is renewable annually.
(c) Each manufacturer must be approved for a joint off-premises
tasting room license by the local legislative body in which the proposed
licensed premises will be located, except in a city having a population of
600,000 or more or as provided in subsection (17).(18).
(d) Each manufacturer must comply with the server training
requirements of section 906 at the jointly operated off-premises tasting room.
(e) Each manufacturer must file with the commission proof of
financial responsibility providing security for liability under section 801(2)
of not less than $50,000.00 as provided in section 803 for the jointly operated
off-premises tasting room.
(f) Any management agreements with an unlicensed manager of
the jointly operated off-premises tasting room must comply with the
requirements of R 436.1041 of the Michigan Administrative Code and all the
manufacturers must hold a participation permit naming as a participant the
unlicensed manager. The unlicensed manager must meet the requirements for a
participant in R 436.1041(3) of the Michigan Administrative Code.
(g) A Sunday sales permit, dance permit, entertainment
permit, specific purpose permit, extended hours permit, authorization for
outdoor service, or permission to maintain a direct connection to unlicensed
premises may be issued in conjunction with a jointly operated off-premises
tasting room. All manufacturers licensed at the jointly operated off-premises
tasting room location must hold the same permits, permissions, and
authorizations at the location.
(h) A violation of this act or the administrative rules by
any manufacturer on the premises of the jointly operated off-premises tasting
room is a violation by all the manufacturers licensed at the jointly operated
off-premises tasting room.
(10) Approved off-premises tasting rooms or jointly operated
off-premises tasting rooms described in subsections (8) and (9) must comply
with all of the following:
(a) A wine maker, small wine maker, distiller, small
distiller, or brandy manufacturer may have 1 of the following:
(i) No more than 5
off-premises tasting room licenses issued under subsection (8) under which
alcoholic liquor manufactured by the wine maker, small wine maker, distiller,
small distiller, or brandy manufacturer may be sold by the glass for
consumption on the premises or samples may be sold or given away for
consumption on the premises as provided in subsection (14)(b) and (c).
(ii) No more than 5 joint off-premises tasting room licenses
issued under subsection (9) under which alcoholic liquor manufactured by the
wine maker, small wine maker, distiller, small distiller, or brandy
manufacturer may be sold by the glass for consumption on the premises or
samples may be sold or given away for consumption on the premises as provided
in subsection (14)(b) and (c).
(iii) A combination of no more than 5 off-premises tasting room
licenses issued under subsection (8) and joint off-premises tasting room
licenses issued under subsection (9) under which alcoholic liquor manufactured
by the wine maker, small wine maker, distiller, small distiller, or brandy manufacturer
may be sold by the glass for consumption on the premises or samples may be sold
or given away for consumption on the premises as provided in subsection (14)(b)
and (c).
(iv) No more than the equivalent number of off-premises tasting
room licenses issued under subsection (8), joint off-premises tasting room
licenses issued under subsection (9), or a combination of off-premises tasting
room licenses issued under subsection (8) and joint off-premises tasting room
licenses issued under subsection (9) that were issued before October 1, 2018
under which alcoholic liquor manufactured by the wine maker, small wine maker,
distiller, small distiller, or brandy manufacturer may be sold by the glass for
consumption on the premises or samples may be sold or given away for
consumption on the premises as provided in subsection (14)(b) and (c).
(b) Notwithstanding the
limitation in subdivision (a), a wine maker, small wine maker, distiller, small
distiller, or brandy manufacturer may have any number of off-premises tasting
room licenses or joint off-premises tasting room licenses under which alcoholic
liquor manufactured by the wine maker, small wine maker, distiller, small
distiller, or brandy manufacturer may only be sold or given away as samples for
consumption on the premises as provided in subsection (14)(d).
(c) A wine maker, small
wine maker, distiller, small distiller, or brandy manufacturer must designate
at the time of application whether the tasting room location for which the
off-premises tasting room license or the joint off-premises tasting room
license application is being made will sell by the glass as provided in
subdivision (a) or provide only samples as provided in subdivision (b). The
designation made for the off-premises tasting room license or the joint
off-premises tasting room license must not be changed after the license has
been issued.
(d) All wine makers,
small wine makers, distillers, small distillers, or brandy manufacturers
licensed at the same approved jointly operated off-premises tasting room must
have an identical designation under subdivision (c).
(e) A wine maker, small
wine maker, distiller, small distiller, or brandy manufacturer that has an
off-premises tasting room or jointly operated off-premises tasting room
location that was approved by the commission before December 19, 2018 must
submit to the commission in writing a designation as required under subdivision
(c) by April 1, 2019.
(11) A wine maker, small
wine maker, brewer, micro brewer, distiller, small distiller, brandy manufacturer,
or mixed spirit drink manufacturer may add a nonalcoholic mixing ingredient or
an alcoholic mixing ingredient manufactured by the wine maker, small wine
maker, brewer, micro brewer, distiller, small distiller, brandy manufacturer,
or mixed spirit drink manufacturer to sampled or purchased alcoholic liquor if
the sampled or purchased alcoholic liquor is consumed on the premises of the
approved tasting room.
(12) A manufacturer is
not a retailer under this act merely because the manufacturer has a tasting
room.
(13) A manufacturer with
an approved tasting room may sample and sell alcoholic liquor only as
specifically allowed in this act.
(14) A manufacturer may
do all of the following:
(a) Sell alcoholic
liquor it manufactured for consumption off the premises in an approved tasting
room under subsections (7) to (9).
(b) Subject to
subsection (10)(a), sell alcoholic liquor it manufactured by the glass for
consumption on the premises of an approved tasting room under subsections (7)
to (9).
(c) Subject to
subsection (10)(a), sell or give away samples of any size of alcoholic liquor
it manufactured for consumption on the premises of an approved tasting room
under subsections (7) to (9).
(d) Subject to
subsection (10)(b), sell or give away samples of alcoholic liquor it
manufactured for consumption on the premises of an approved tasting room under
subsections (8) and (9) under all of the following conditions:
(i) A wine maker or small wine maker may offer samples of wine
that do not exceed 3 ounces per sample.
(ii) A brandy manufacturer may offer samples of brandy that do
not exceed 1/2 ounce per sample.
(iii) A distiller or small distiller may offer samples of spirits
or mixed drinks that do not exceed 1/2 ounce per sample.
(15) An on-premises tasting room permit issued under
subsection (7) and an off-premises tasting room license issued under subsection
(8) may be held in conjunction at the same location by the same person if
either of the following conditions is met:
(a) The person holds the on-premises tasting room permit
issued under subsection (7) in conjunction with a brewer or micro brewer
license only and no other manufacturing license, and the off-premises tasting
room license issued under subsection (8) at the same location.
(b) Both of the following conditions are met:
(i) The person holds
an on-premises tasting room permit issued under subsection (7) in conjunction
with a micro brewer, small distiller, or small wine maker license, or any
combination of micro brewer, small distiller, or small wine maker licenses, and
the off-premises tasting room license issued under subsection (8) at the same
location.
(ii) The commission
issued to the person both the permit and applicable licenses described in
subparagraph (i), or their
equivalent at the time of issuance, before October 1, 2018.
(16) (15) A
manufacturer issued a license before December 19, 2018 that intends to sell for
consumption off its licensed premises or sell, serve, and allow consumption on
its licensed premises of alcoholic liquor as allowed under this section and
section 537 must comply with this section by April 1, 2019.
(17) (16) The
revenue received from subsection (7) must be deposited into the liquor control
enforcement and license investigation revolving fund under section 543(9).
(18) (17) Local
approval under subsection (7)(c), (8)(c), or (9)(c) is not required for a
tasting room that was in existence before December 19, 2018.
(19) (18) A small
distiller or distiller that also holds a mixed spirit drink manufacturer
license may do all of the following:
(a) Sell mixed spirit
drink it manufactured for consumption off the licensed premises of an approved
tasting room under subsections (8) and (9).
(b) Subject to
subsection (10)(a), sell mixed spirit drink it manufactured for consumption on
the premises of an approved tasting room under subsections (8) and (9).
(c) Subject to
subsection (10)(a), sell or give away samples of any size of mixed spirit drink
it manufactured for consumption on the premises of an approved tasting room
under subsections (8) and (9).
(d) Subject to
subsection (10)(b), sell or give away samples that do not exceed 3 ounces per
sample of mixed spirit drink it manufactured for consumption on the premises of
an approved tasting room under subsections (8) and (9).