HB-5175, As Passed House, February 13, 2018

HB-5175, As Passed Senate, February 13, 2018

SUBSTITUTE FOR

HOUSE BILL NO. 5175

A bill to amend 1998 PA 58, entitled

"Michigan liquor control code of 1998,"

by amending section 537 (MCL 436.1537), as amended by 2016 PA 514.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 537. (1) The following classes of vendors may sell

alcoholic liquor 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 licensee, where beer, wine, mixed spirit drink,

and spirits may be sold for consumption on the premises.

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 are 21 years of age or older.

(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 licensee, 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, 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 licensee, 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 licensee, 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 licensee, 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.

(q) Nonpublic continuing care retirement center license, where

beer, wine, mixed spirit drink, mixed wine drink, and spirits may

be sold at retail and served on the licensed premises to residents

and bona fide guests accompanying the resident for consumption only

on the licensed premises.

(r) A small wine maker or an out-of-state entity that is the

substantial equivalent of a small wine maker, that holds a farmer's

market permit, where wine may be sampled and sold at a farmer's

market for consumption off the licensed premises.

(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 on the premises where the wine maker is licensed to

manufacture wine. The wine maker may charge for the samples.

(4) 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 on which the wine tasting occurs conform to

local and state sanitation requirements.

(b) Payment of a $100.00 fee per location is made to the

commission.

premises, and the wine maker may include a charge for the samples.

(d) The wine tasting takes place during the legal hours for

the sale of alcoholic liquor by the licensee.

(e) The premises and the licensee comply with and are subject

to all applicable rules promulgated by the commission.

(5) Notwithstanding section 1025(1), an outstate seller of

beer, an outstate seller of wine, a wine maker, a brewer, a micro

brewer, or a specially designated merchant, or an agent of any of

those persons, that does not hold a license allowing the

consumption of alcoholic liquor on the premises at the same

licensed address, may conduct beer and wine tastings on the

licensed premises of a specially designated merchant under the

following conditions:

(a) A customer is not charged for the tasting of beer or wine.

(b) The tasting samples provided to a customer do not exceed 3

servings at up to 3 ounces per serving of beer or 3 servings at up

to 2 ounces of wine. A customer shall not be provided more than a

total of 3 samples of beer or wine within a 24-hour period per

licensed premises.

beer, outstate seller of wine, wine maker, micro brewer, or brewer

has first obtained an annual beer and wine tasting permit approved

by the commission.

(d) The commission is notified, in writing, a minimum of 10

working days before the event, regarding the date, time, and

location of the event.

(6) During the time a beer or wine tasting is conducted under

subsection (5), a specially designated merchant, outstate seller of

beer, outstate seller of wine, wine maker, micro brewer, or brewer,

or its agent or employee who has successfully completed a server

training program as provided for in section 906, shall devote full

time to the beer and wine tasting activity and shall not perform

other duties, including the sale of alcoholic liquor for

consumption off the licensed premises. Beer and wine used for the

tasting must come from the specially designated merchant's

inventory, and all open bottles must be removed from the premises

on the same business day or resealed and stored in a locked,

separate storage compartment on the licensed premises when not

being used for the activities allowed by the permit.

(7) A wholesaler shall not conduct or participate in beer and

wine tastings allowed under a permit issued under subsection (5).

(8) A beer and wine tasting under subsection (5) may only be

conducted during the legal hours for the sale of alcoholic liquor

by the licensee.

(9) 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 on which the brandy and spirits tastings

occur conform to local and state sanitation requirements.

(b) The brandy manufacturer or small distiller pays the

commission a $100.00 fee per location.

licensed premises.

(d) The brandy and spirits tasting takes place during the

legal hours for the sale of alcoholic liquor by the licensee.

(e) The premises and the license comply with and are subject

to all applicable rules promulgated by the commission.

(10) An eligible merchant may fill and sell growlers with beer

for consumption off the premises under the following conditions:

(a) The premises where the filling of growlers takes place

comply with the requirements for food service establishments under

the food law, 2000 PA 92, MCL 289.1101 to 289.8111.

(b) The growler is sealed and has a label affixed to it that

includes at least the brand name of the beer, the class of the

beer, the net contents of the container, and the name of the

retailer filling the growler. The label conditions described in

this subdivision do not apply to either of the following:

(i) A brewpub described in subsection (1)(j), but only as to

beer that the brewpub produces.

(ii) A micro brewer or brewer described in subsection (1)(k).

shall not fill a growler in advance of the sale.

(d) The eligible merchant or his or her agent or employee

shall only use containers that have a capacity of 5 gallons or more

to fill a growler.

(e) The beer to be dispensed has received a registration

number from the commission and has been approved for sale by the

commission.

(f) The eligible merchant complies with all applicable rules

promulgated by the commission.

(11) As used in this section:

(a) "Eligible merchant" means a person that holds a specially

designated merchant license. ~~and a specially designated~~

~~distributor, class C, tavern, class A hotel, class B hotel, club,~~

~~class G-1, or class G-2 license.~~

(b) "Growler" means any clean, refillable, resealable

container that is exclusively intended, and used only, for the sale

of beer for consumption off the premises and that has a liquid

capacity that does not exceed 1 gallon.

Enacting section 1. This amendatory act takes effect 90 days

after the date it is enacted into law.