Bill Text: MI SB1158 | 2017-2018 | 99th Legislature | Engrossed
Bill Title: Liquor; manufacturer; reference to section 109 of the Michigan liquor control code of 1998; update. Amends sec. 603 of 1998 PA 58 (MCL 436.1603). TIE BAR WITH: SB 1160'18
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2018-12-21 - Assigned Pa 0407'18 With Immediate Effect [SB1158 Detail]
Download: Michigan-2017-SB1158-Engrossed.html
SB-1158, As Passed House, December 11, 2018
SB-1158, As Passed Senate, November 29, 2018
SENATE BILL No. 1158
November 8, 2018, Introduced by Senator ROCCA 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 2014 PA 43.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 603. (1) Except as provided in subsections (6) to (14)
and section 605, a supplier, warehouser, or wholesaler shall not
have any direct or indirect financial interest in the
establishment, maintenance, operation, or promotion of the business
of any other vendor.
(2) Except as provided in subsections (6) to (14) and section
605, a supplier, warehouser, or wholesaler or a stockholder of a
supplier, warehouser, or wholesaler shall not have any direct or
indirect interest by ownership in fee, leasehold, mortgage, or
otherwise 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 supplier, warehouser, or wholesaler shall not have any
direct or indirect interest 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 supplier, warehouser,
or wholesaler and place the stock in any portfolio under an
arrangement, written trust agreement, or form of investment trust
agreement, 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 must 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 5 other brewpubs
if the combined production of all the locations in which the
brewpub has an interest does not exceed 18,000 barrels of beer per
calendar year.
(8) This section does not prohibit a supplier from having any
direct or indirect interest in any other supplier.
(9) The commission may approve the following under R
436.1023(3)
of the Michigan administrative code, Administrative
Code, subject to the written approval of the United States
department
of treasury, bureau of alcohol and tobacco tax and
trade:Department of Treasury Alcohol and Tobacco Tax
and Trade
Bureau:
(a) A wine maker participating with 1 or more wine makers in
an alternating proprietor operation in accordance with 27 CFR
24.136.
(b) A brewer participating with 1 or more brewers in an
alternating proprietor operation in accordance with 27 CFR 25.52.
(10) A manufacturer shall not have any direct or indirect
interest in a wholesaler.
(11) A wine maker shall not collectively deliver wine, with
any other wine maker, to retail licensees.
(12)
Except in the case of for 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 suppliers.
(b) Wholesaler tier, comprising wholesalers.
(c) Retailer tier, comprising retailers.
(13) Except as otherwise provided in subsection (14),
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 does
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 from
having an on-site
restaurant.
(15) As used in this section:
(a)
"Manufacturer" means, notwithstanding section 109(1),
109(2), 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 does not include a master distributor.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No. 1160
of the 99th Legislature is enacted into law.
