Bill Text: MI SB0439 | 2017-2018 | 99th Legislature | Engrossed
Bill Title: Liquor; economic development; grape and wine industry council; change name to Michigan craft beverage council and revise powers and duties of members. Amends sec. 303 of 1998 PA 58 (MCL 436.1303). TIE BAR WITH: SB 0440'17
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2018-01-17 - Referred To Committee On Regulatory Reform [SB0439 Detail]
Download: Michigan-2017-SB0439-Engrossed.html
SB-0439, As Passed Senate, January 17, 2018
SUBSTITUTE FOR
SENATE BILL NO. 439
A bill to amend 1998 PA 58, entitled
"Michigan liquor control code of 1998,"
by amending section 303 (MCL 436.1303).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
303. (1) The grape and wine industry council is created
in
under Executive
Reorganization Order No. 2014-2, MCL 333.26253,
shall be housed within the department of agriculture and rural
development. The Beginning on the effective date of the amendatory
act that amended this section, the council shall be known as the
Michigan
craft beverage council and shall
consist of all of the
following members:
(a)
Three wine makers.
(b)
A wine grape grower.
(c)
The director of consumer and industry services or his or
her
designee.
(a) (d)
The director of the department of
agriculture and
rural development or his or her designee as a nonvoting member.
(e)
A staff member of Michigan state university appointed by,
and
serving at the pleasure of, the dean of the college of
agriculture
and natural resources of Michigan state university.
(f)
The chairperson of the commission or his or her designee,
as
an ex officio member.
(b) Subject to subdivision (c), the following voting members,
whose principal place of business is located in this state,
appointed by the governor:
(i) (g)
A person An individual who operates a retail food
establishment that holds a specially designated merchant license
and
sells Michigan wines or a person beer or his or her designee.
(ii) An individual who operates a restaurant that holds a
class C license and serves Michigan wines, beer, or spirits, or his
or her designee.
(h)
A beer and wine wholesaler who markets Michigan wine.
(i)
Not more than 2 additional members appointed as prescribed
in
subsection (3).
(iii) Two wine makers or the designees of those wine makers.
(iv) A wine maker that primarily manufactures hard cider or a
designee of that wine maker.
(v) A large brewer or a designee of that large brewer.
(vi) One of the following:
(A) A micro brewer or a designee of the micro brewer.
(B) An individual who holds a brewpub license or his or her
designee.
(vii) A small distiller or a designee of the small distiller.
(viii) A distiller that manufactures more than 60,000 gallons
of spirits per year or a designee of that distiller, or an
authorized distribution agent.
(c) All of the following apply to a designee of a member
appointed under subdivision (b):
(i) The designee's principal place of business must be located
in this state.
(ii) The designee must not be a lobbyist or a lobbyist agent
as those terms are defined in section 5 of 1978 PA 472, MCL 4.415.
(iii) During the member's term, the member may only designate
1 individual as a designee.
(2)
The members of the council described in subsection (1)(a),
(b),
(g), and (h) shall be appointed by the governor. The council
members
appointed under subsection (1)(g) and (h) shall be
appointed
for 2-year terms beginning on October 1, 1991. Of the
council
members appointed for terms beginning October 1, 1991, 1
shall
be appointed for a 1-year term, and 3 shall be appointed for
terms
of 2 years each. All appointments for terms beginning on or
after
October 1, 1992 shall be for 2 years each. A member shall
continue
to serve until a qualified successor has been appointed.
Voting members of the council appointed by the governor under
subsection (1) shall serve for terms of 3 years or until a
successor is appointed, whichever is later, except that of the
voting members first appointed, 3 shall serve for 1 year, 3 shall
serve for 2 years, and 3 shall serve for 3 years. A voting member
shall not serve more than 2 consecutive terms. A vacancy on the
board shall be filled in the same manner as the original
appointment.
The director of the department of agriculture shall
act
as and rural development is
the chairperson of the council.
(3)
The governor may appoint not more than 2 additional
members
to the council who shall assist the council in performing
its
duties, but who shall not have the power to vote. The persons
appointed
under this subsection shall not be members of the
classified
state civil service, shall serve at the pleasure of the
governor,
and shall receive salaries and benefits determined and
paid
by the department of agriculture.
(3) (4)
The council may employ personnel
and incur such
expenses
as that are necessary to carry out the purposes of the
council
under this act. All such The
expenses of the council shall
be
paid from fees credited to the wine industry council under
section 543(2) and credited to the council under section 221. The
council shall expend at least 50% of its annual budget on any of
its duties described in subsection (6)(a), (b), (g), (h), or (i). A
member
of the council or an employee or agent of the council shall
is
not be personally liable on the
contracts of the council.
(4) (5)
A nongovernmental member of the council
shall may
receive $50.00 per day for each day spent in actual attendance at
meetings of the council and traveling expenses while on council
business in accordance with standard travel regulations of the
department of technology, management, and budget.
(5) (6)
The council shall maintain accurate
books and records,
and
all funds money received by the council shall must be
used to
implement and enforce this section.
(6) (7)
The council shall do all of the
following:
(a)
Provide for research on wine grapes fruits used in
winemaking and wines, including, but not limited to, methods of
planting, growing, controlling insects and diseases, charting
microclimates
and locations for growing desirable varieties of wine
grapes,
fruits used in winemaking, marketing, processing,
distribution, advertising, sales production, and product
development.
(b) Provide for research on hops, barley, beer, and spirits,
including, but not limited to, methods of planting, growing,
controlling insects and diseases, marketing, processing,
distribution, advertising, sales production, and product
development.
(c) (b)
Provide the wine industry,
including growers,
wineries, distributors, and retailers, with information relative to
proper
methods of handling and selling wine grapes fruits used in
winemaking and wines.
(d) Provide the brewing and distilling industries, including
growers, brewers, distillers, distributors, and retailers, with
information relative to proper methods of handling and selling
hops, barley, beer, and spirits.
(e) (c)
Provide for market surveys and
analyses for purposes
of expanding existing markets and creating new and larger markets
for
wine grapes and fruits
used in winemaking, wines, hops, barley,
beer, and spirits.
(f) (d)
Provide for the promotion of the
sale of Michigan wine
grapes
and fruits used in
winemaking, wines, hops, barley, beer,
and spirits for the purpose of maintaining or expanding present
markets and creating new and larger domestic and foreign markets.
(g) (e)
Develop and administer financial
aid programs to wine
grape
growers of fruits used in winemaking to encourage the
increased
planting in this state of desirable grape fruit varieties
in microclimates determined to provide the best conditions for
producing quality wines.
(h) Develop and administer financial aid programs to hops
growers to encourage increased planting in this state of desirable
hops varieties in microclimates determined to provide the best
conditions for producing quality beer.
(i) Develop and administer financial aid programs to barley
growers to encourage increased planting in this state of desirable
barley varieties in microclimates determined to provide the best
conditions for producing quality beer.
(j) Prepare and approve an annual budget.
(k) Apply for and accept grants or contributions from the
federal government or any of its agencies, the state, or other
public or private agencies to be used for any of the purposes of
this section and to do any and all things within its express or
implied powers necessary or desirable to secure that financial or
other aid or cooperation in the carrying out of any of the purposes
of this section.
(l) Based on the information provided to the council under
subdivision (n), annually review and record recommendations that
will enhance the marketing and promotion of Michigan fruits used in
winemaking, wines, hops, barley, beer, hard cider, and spirits. The
council shall make these recommendations available upon request.
(m) Based on the information provided to the council under
subdivision (n), annually review and record recommendations
concerning changes to the strategies adopted by the council for
marketing and promotion of Michigan fruits used in winemaking,
wines, hops, barley, beer, hard cider, and spirits. The council
shall make these recommendations available upon request.
(n) Invite the chief executive officer of the Michigan
economic development corporation or his or her designee to attend
at least 1 council meeting annually to inform the council about
partnership activities and opportunities related to the marketing
and promotion of Michigan fruits used in winemaking, wines, hops,
barley, beer, hard cider, and spirits.
(o) Invite the director of the department of licensing and
regulatory affairs to attend at least 1 council meeting annually to
inform the council about funding activities affecting the council.
(p) Establish educational partnerships to benefit the beer,
wine, and spirits industries.
(7) (8)
The council may promulgate rules
pursuant to the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328, for the purposes of implementing and enforcing this
section.
However, a rule the
council shall not be promulgated
promulgate a rule that conflicts with a rule promulgated by the
commission
pursuant to under section 215.
(8) Except as otherwise provided in this subsection, the
council shall not engage in lobbying. This subsection does not
prohibit the council or a council member or council employee from
providing technical information to the legislature or to the
department of agriculture and rural development, regardless of
whether the council, council member, or council employee is
appearing before an officially convened legislative committee or
department of agriculture and rural development hearing panel, if
the technical information is related to the council's duties under
this section. As used in this subsection:
(a) "Lobbying" means that term as defined in section 5 of 1978
PA 472, MCL 4.415.
(b) "Technical information" means that term as defined in
section 5 of 1978 PA 472, MCL 4.415.
(9) This section does not prevent the council from
establishing a commodity committee under the agriculture
commodities marketing act, 1965 PA 232, MCL 290.651 to 290.674.
(10) (9)
As used in this section: ,
"council"
(a)
"Council" means the grape
and wine industry Michigan
craft
beverage
council created described in subsection (1).
(b) "Large brewer" means a brewer that produces in total at
least 60,000 barrels of beer and not more than 1,000,000 barrels of
beer per year. In determining the barrel threshold under this
subdivision, all brands and labels of a brewer, whether brewed in
this state or outside this state, must be combined and all
facilities for the production of beer that are owned or controlled
by the same person are treated as a single facility.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
Enacting section 2. This amendatory act does not take effect
unless Senate Bill No. 440 of the 99th Legislature is enacted into
law.
