Bill Text: MI SB0594 | 2011-2012 | 96th Legislature | Introduced
Bill Title: Liquor; licenses; provision regarding having an interest in another vendor; modify. Amends sec. 603 of 1998 PA 58 (MCL 436.1603).
Spectrum: Partisan Bill (Republican 3-0)
Status: (Introduced - Dead) 2011-09-07 - Referred To Committee On Regulatory Reform [SB0594 Detail]
Download: Michigan-2011-SB0594-Introduced.html
SENATE BILL No. 594
September 7, 2011, Introduced by Senators WALKER, BOOHER and PROOS 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 603 (MCL 436.1603), as amended by 2010 PA 213.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
603. (1) Except as provided in subsections (6) to (14)
(15)
and section 605, a manufacturer,
mixed spirit drink
manufacturer
supplier, warehouser, or wholesaler ,
outstate seller
of
beer, outstate seller of wine, outstate seller of mixed spirit
drink,
or vendor of spirits shall not have
any direct or indirect
financial
interest , directly or indirectly, in the establishment,
maintenance, operation, or promotion of the business of any other
vendor.
(2)
Except as provided in subsections (6) to (14) (15) and
section
605, a manufacturer, mixed spirit drink manufacturer
supplier, warehouser, or 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 supplier, warehouser, or wholesaler ,
outstate
seller
of beer, outstate seller of wine, outstate seller of mixed
spirit
drink, or vendor of spirits shall
not have an any direct or
indirect 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 subsections (6) to (14) and section
605,
a manufacturer, mixed spirit drink manufacturer supplier,
warehouser,
or wholesaler , outstate seller of beer, outstate
seller
of wine, outstate seller of mixed spirit drink, or vendor of
spirits
shall not have an any direct or indirect 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 subsections (6) to (14) and section
605,
a person shall not buy the stocks of a manufacturer, mixed
spirit
drink manufacturer supplier, warehouser, or 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 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 if 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.
(8) This section does not prohibit a supplier from having any
direct
or indirect interest ,
directly or indirectly, in any
other
supplier.
(9)
The commission may approve the following pursuant to under
R 436.1023(3) of the Michigan administrative code, subject to the
written approval of the United States department of treasury,
bureau of alcohol and tobacco tax and trade:
(a) A wine maker participating with 1 or more wine makers in
an
alternating proprietor operation in accordance with 27 CFR part
24,
subpart D, section 24.136.
(b) A brewer participating with 1 or more brewers in an
alternating
proprietor operation in accordance with 27 CFR part 25,
subpart
F, section 25.52.
(10) A manufacturer is prohibited from having any direct or
indirect
interest , directly or
indirectly, in a wholesaler.
(11) A wine maker is prohibited from collectively delivering
wine, with any other wine maker, to retail licensees.
(12) Except in the case of a licensed warehouser, all
licensees in this state shall be separated into 3 distinct and
independent tiers composed of the following:
(a)
Supplier tier, comprising manufacturers and suppliers.
(b) Wholesaler tier, comprising wholesalers.
(c) Retailer tier, comprising retailers.
(13)
Beginning Except as
otherwise provided in subsections
(14) and (15), beginning April 30, 2011, the commission shall not
allow any of the following:
(a) A retailer to hold, directly or indirectly, a license in
the wholesaler or supplier tier.
(b) A wholesaler to hold, directly or indirectly, a license in
the retailer or supplier tier.
(c) A supplier to hold, directly or indirectly, a license in
the wholesaler or retailer tier.
(14) Subsection (13) shall not be interpreted in a manner that
would prohibit a class C, tavern, class A hotel, or class B hotel
licensee from receiving a brewpub license or that would prohibit a
micro brewer or brewer producing less than 200,000 barrels per year
from having an on-site restaurant.
(15) A small wine maker may have a leasehold interest in a
retailer.
(16) (15)
As used in this section:
(a) "Manufacturer" means, notwithstanding section 109(1), a
wine maker, small wine maker, brewer, micro brewer, manufacturer of
spirits, distiller, small distiller, brandy manufacturer, mixed
spirit drink manufacturer, direct shipper, or a person licensed by
the commission to perform substantially similar functions.
(b) "Supplier" means a manufacturer, mixed spirit drink
manufacturer, outstate seller of beer, outstate seller of wine,
outstate seller of mixed spirit drink, and vendor of spirits or a
person licensed by the commission to perform substantially similar
functions
but shall does not include a master distributor.
