HOUSE BILL No. 5627

 

February 1, 2006, Introduced by Reps. Rocca, Jones, Wojno, Bieda, Gaffney and Palmer and referred to the Committee on Regulatory Reform.

 

     A bill to amend 1998 PA 58, entitled

 

"Michigan liquor control code of 1998,"

 

by amending sections 111 and 913 (MCL 436.1111 and 436.1913).

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 111. (1) "Person" means an individual, firm, partnership,

 

limited partnership, association, limited liability company, or

 

corporation.

 

     (2) "Primary source of supply" means, in the case of domestic

 

spirits, the distiller, producer, owner of the commodity at the

 

time it becomes a marketable product, or bottler, or the exclusive

 

agent of any such person and, in the case of spirits imported into

 

the United States, either the foreign distiller, producer, owner of

 

the bottler, or the prime importer for, or the exclusive agent in

 

the United States of, the foreign distiller, producer, owner, or


 

the bottler.

 

     (3) "Professional account" means an account established for a

 

person by a class C licensee or tavern licensee whose major

 

business is the sale of food, by which the licensee extends credit

 

to the person for not more than 30 days.

 

     (4) "Residence" means the premises in which a person resides

 

permanently.

 

     (5) "Retailer" means a person licensed by the commission who

 

sells to the consumer in accordance with rules promulgated by the

 

commission.

 

     (6) "Sacramental wine" means wine containing not more than 24%

 

of alcohol by volume which is used for sacramental purposes.

 

     (7) "Sale" includes the exchange, barter, traffic, furnishing,

 

or giving away of alcoholic liquor. In the case of a sale in which

 

a shipment or delivery of alcoholic liquor is made by a common or

 

other carrier, the sale of the alcoholic liquor is considered to be

 

made in the county within which the delivery of the alcoholic

 

liquor is made by that carrier to the consignee or his or her agent

 

or employee, and venue for the prosecution for that sale may be in

 

the county or city where the seller resides or from which the

 

shipment is made or at the place of delivery.

 

     (8) "School" includes buildings used for school purposes to

 

provide instruction to children in grades kindergarten through 12,

 

when that instruction is provided by a public, private,

 

denominational, or parochial school, except those buildings used

 

primarily for adult education or college extension courses. School

 

does not include a proprietary trade or occupational school.


 

     (9) "Small wine maker" means a wine maker manufacturing or

 

bottling not more than 50,000 gallons of wine in 1 calendar year.

 

     (10) "Special license" means a contract between the commission

 

and the special licensee granting authority to that licensee to

 

sell beer, wine, mixed spirit drink, or spirits. The license shall

 

be granted only to such persons and such organization and for such

 

period of time as the commission shall determine so long as the

 

person or organization is able to demonstrate an existence separate

 

from an affiliated umbrella or parent organization and otherwise in

 

compliance with R 436.572 through R 436.582 of the Michigan

 

administrative code. If such an existence is demonstrated, the

 

commission shall not deny a special license solely by the

 

applicant's affiliation with an organization that is also eligible

 

for a special license.

 

     (11) "Specially designated distributor" means a person engaged

 

in an established business licensed by the commission to distribute

 

spirits and mixed spirit drink in the original package for the

 

commission for consumption off the premises.

 

     (12) "Specially designated merchant" means a person to whom

 

the commission grants a license to sell beer or wine, or both, at

 

retail for consumption off the licensed premises.

 

     (13) "Spirits" means a beverage that contains alcohol obtained

 

by distillation, mixed with potable water or other substances, or

 

both, in solution, and includes wine containing an alcoholic

 

content of more than 21% by volume, except sacramental wine and

 

mixed spirit drink.

 

     (14) "State liquor store" means a store established by the


 

commission under this act for the sale of spirits in the original

 

package for consumption off the premises.

 

     (15) "Supplier of spirits" means a vendor of spirits, a

 

manufacturer of spirits, or a primary source of supply.

 

     Sec. 913. (1) A person shall not  maintain  do any of the

 

following:

 

     (a) Maintain, operate, or lease, or otherwise furnish to any

 

person, any premises  ,  or place  which  that is not licensed

 

under this act within which the other person may engage in the

 

drinking of alcoholic liquor for consideration.

 

     (b) Obtain by way of lease or rental agreement, and furnish or

 

provide to any other person, any premises or place that is not

 

licensed under this act within which any other person may engage in

 

the drinking of alcoholic liquor for consideration.

 

     (c) Maintain, operate, or lease, or otherwise furnish to any

 

person, for consideration, any premises or place that is not

 

licensed under this act within which the other person may engage in

 

the drinking of alcoholic liquor.

 

     (d) Obtain by way of lease or rental agreement, and furnish or

 

provide to any other person, for consideration, any premises or

 

place that is not licensed under this act within which any other

 

person may engage in the drinking of alcoholic liquor.

 

     (2) A person shall not consume alcoholic liquor in a

 

commercial establishment selling food if the commercial

 

establishment is not licensed under this act. A person owning,

 

operating, or leasing a commercial establishment selling food which

 

is not licensed under this act shall not allow the consumption of


 

alcoholic liquor on its premises.

 

     (3) This section shall not apply to any hotel or any licensee

 

under this act.

 

     (4) This section shall not be construed to repeal or amend

 

section 1019.

 

     (5) As used in this section, "consideration" includes any fee,

 

cover charge, ticket purchase, the storage of alcoholic liquor, the

 

sale of food, ice, mixers, or other liquids used with alcoholic

 

liquor drinks, the providing of any service or item, or combination

 

of service and item, the purchasing of any service or item, or

 

combination of service and item, or the furnishing of glassware or

 

other containers for use in the consumption of alcoholic liquor in

 

conjunction with the sale of food.