Bill Text: MI SB0427 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Liquor; licenses; small distiller offering off-site tasting on facilities operated by that distiller; allow under certain circumstances. Amends secs. 537, 603 & 1027 of 1998 PA 58 (MCL 436.1537 et seq.).
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Introduced - Dead) 2009-04-01 - Referred To Committee On Economic Development And Regulatory Reform [SB0427 Detail]
Download: Michigan-2009-SB0427-Introduced.html
SENATE BILL No. 427
April 1, 2009, Introduced by Senators ALLEN, BARCIA and PRUSI and referred to the Committee on Economic Development and Regulatory Reform.
A bill to amend 1998 PA 58, entitled
"Michigan liquor control code of 1998,"
by amending sections 537, 603, and 1027 (MCL 436.1537, 436.1603,
and 436.2027), as amended by 2008 PA 218.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 537. (1) The following classes of vendors may sell
alcoholic liquors 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 license 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 have attained the age of 21 years.
(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 licenses 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 selling less than 200,000
barrels of beer per year 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 license 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 license 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 license 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.
(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 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 upon which the wine tasting occurs conforms
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 shall be considered licensed
premises.
(d) Wine tasting does not take place between the hours of 2
a.m. and 7 a.m. Monday through Saturday, or between 2 a.m. and 12
noon on Sunday.
(e) The premises and the licensee comply with and are subject
to all applicable rules promulgated by the commission.
(4) 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 upon which the brandy and spirits tastings
occur conform to local and state sanitation requirements.
(b) Payment of a $100.00 fee per location is made to the
commission.
(c) The brandy and spirits tasting locations shall be
considered licensed premises.
(d) Brandy and spirits tasting does not take place between the
hours of 2 a.m. and 7 a.m. Monday through Saturday or between 2
a.m. and 12 noon on Sunday.
(e) The premises and the license comply with and are subject
to all applicable rules promulgated by the commission.
Sec. 603. (1) Except as provided in subsection (6) and section
605, a manufacturer, mixed spirit drink manufacturer, warehouser,
wholesaler, outstate seller of beer, outstate seller of wine,
outstate seller of mixed spirit drink, or vendor of spirits shall
not have any financial interest, directly or indirectly, in the
establishment, maintenance, operation, or promotion of the business
of any other vendor.
(2) Except as provided in subsection (6) and section 605, a
manufacturer, mixed spirit drink manufacturer, warehouser,
wholesaler, outstate seller of beer, outstate seller of wine,
outstate seller of mixed spirit drink, or vendor of spirits or a
stockholder of a manufacturer, mixed spirit drink manufacturer,
warehouser, wholesaler, outstate seller of beer, outstate seller of
wine, outstate seller of mixed spirit drink, or vendor of spirits
shall not have an interest by ownership in fee, leasehold,
mortgage, or otherwise, directly or indirectly, in the
establishment, maintenance, operation, or promotion of the business
of any other vendor.
(3) Except as provided in subsection (6) and section 605, a
manufacturer, mixed spirit drink manufacturer, warehouser,
wholesaler, outstate seller of beer, outstate seller of wine,
outstate seller of mixed spirit drink, or vendor of spirits shall
not have an interest directly or indirectly by interlocking
directors in a corporation or by interlocking stock ownership in a
corporation in the establishment, maintenance, operation, or
promotion of the business of any other vendor.
(4) Except as provided in subsection (6) and section 605, a
person shall not buy the stocks of a manufacturer, mixed spirit
drink manufacturer, warehouser, wholesaler, outstate seller of
beer, outstate seller of wine, outstate seller of mixed spirit
drink, or vendor of spirits and place the stock in any portfolio
under an arrangement, written trust agreement, or form of
investment trust agreement and issue participating shares based
upon the portfolio, trust agreement, or investment trust agreement,
and sell the participating shares within this state.
(5) The commission may approve a brandy manufacturer or small
distiller to sell brandy and spirits made by that brandy
manufacturer or small distiller in a restaurant for consumption on
or off the premises if the restaurant is owned by the brandy
manufacturer or small distiller or operated by another person under
an
agreement approved by the commission and is located on the a
premises where the brandy manufacturer or small distiller is
licensed. Brandy and spirits sold for consumption off the premises
under this subsection shall be sold at the uniform price
established by the commission.
(6) The commission shall allow a small distiller to sell
brands of spirits it manufactures for consumption on the licensed
premises at that distillery.
(7) A brewpub may have an interest in up to 2 other brewpubs
so long as the combined production of all the locations in which
the brewpub has an interest does not exceed 5,000 barrels of beer
per calendar year.
Sec. 1027. (1) Unless otherwise provided by rule of the
commission, a person shall not conduct samplings or tastings of any
alcoholic liquor for a commercial purpose except at premises that
are licensed by the commission for the sale and consumption of
alcoholic liquor on the premises.
(2) This section does not prevent either of the following:
(a) A vendor of spirits, brewer, wine maker, mixed spirit
drink manufacturer, small wine maker, outstate seller of beer,
outstate seller of wine, or outstate seller of mixed spirit drink,
or a bona fide market research organization retained by 1 of the
persons named in this subsection, from conducting samplings or
tastings of an alcoholic liquor product before it is approved for
sale in this state if the sampling or tasting is conducted pursuant
to prior written approval of the commission.
(b) An on-premises licensee from giving a sampling or tasting
of alcoholic liquor to an employee of the licensee during the legal
hours for consumption for the purpose of educating the employee
regarding 1 or more types of alcoholic liquor so long as the
employee is at least 21 years of age.
(c) A small distiller licensee from giving a sampling or
tasting of brands it manufactures on the licensed premises or on an
off-site tasting facility operated by that small distiller.
(3) A sampling or tasting of any alcoholic liquor in a home or
domicile for other than a commercial purpose is not subject to this
section.
(4) For purposes of this section, "commercial purpose" means a
purpose for which monetary gain or other remuneration could
reasonably be expected.
