Bill Text: MI SB1159 | 2017-2018 | 99th Legislature | Introduced
Bill Title: Liquor; manufacturer; multiple manufacturing licenses and tasting rooms; provide for. Amends 1998 PA 58 (MCL 436.1101 - 436.2303) by adding sec. 536. TIE BAR WITH: SB 1154'18, SB 1155'18, SB 1156'18, SB 1160'18, SB 1161'18, SB 1164'18, SB 1165'18, SB 1166'18
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2018-12-21 - Assigned Pa 0408'18 With Immediate Effect [SB1159 Detail]
Download: Michigan-2017-SB1159-Introduced.html
SENATE BILL No. 1159
November 8, 2018, Introduced by Senator HUNE and referred to the Committee on Regulatory Reform.
A bill to amend 1998 PA 58, entitled
"Michigan liquor control code of 1998,"
(MCL 436.1101 to 436.2303) by adding section 536.
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 must be 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.
(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(3) 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.
(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(3) 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.
(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(3) 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) Any 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) where 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 subsections (14)(b) and (14)(c).
(ii) No more than 5 joint off-premises tasting room licenses
issued under subsection (9) where 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 subsections (14)(b) and (14)(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) where 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 subsections
(14)(b) and (14)(c).
(iv) If a wine maker, small wine maker, distiller, small
distiller, or brandy manufacturer had more than 5 off-premises
tasting room licenses before October 1, 2018, no more than the
number of off-premises tasting room licenses that were issued
before October 1, 2018.
(b) Notwithstanding the limitation in subsection (10)(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 where
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 the effective date of the
amendatory act that added this section 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 1/3 ounce per sample.
(iii) A distiller or small distiller may offer samples of
spirits or mixed drinks that do not exceed 1/3 ounce per sample.
(15) A manufacturer issued a license before the effective date
of the amendatory act that added this section 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.
(16) The revenue received from subsection (7) must be
deposited into the liquor control enforcement and license
investigation revolving fund under section 543(9).
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 99th Legislature are
enacted into law:
(a) Senate Bill No. 1154.
(b) Senate Bill No. 1164.
(c) Senate Bill No. 1165.
(d) Senate Bill No._1160.
(e) Senate Bill No. 1166.
(f) Senate Bill No. 1155.
(g) Senate Bill No. 1161.
(h) Senate Bill No. 1156.
