August 4, 2009, Introduced by Reps. Nerat, Leland, Sheltrown, Lahti, McDowell, Lindberg, Bauer, Cushingberry, Constan, Slavens, Huckleberry, Liss, Neumann and Valentine 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 2009 PA 2.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
603. (1) Except as provided in subsections (6) to (12)
(13) and section 605, a manufacturer, mixed spirit drink
manufacturer, warehouser, wholesaler, outstate seller of beer,
outstate seller of wine, outstate seller of mixed spirit drink, or
vendor of spirits shall not have any 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 (12) (13) and
section 605, a manufacturer, mixed spirit drink manufacturer,
warehouser, 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, warehouser, wholesaler, outstate seller of beer,
outstate seller of wine, outstate seller of mixed spirit drink, or
vendor of spirits shall not have an 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 (12) (13) and
section 605, a manufacturer, mixed spirit drink manufacturer,
warehouser, wholesaler, outstate seller of beer, outstate seller of
wine, outstate seller of mixed spirit drink, or vendor of spirits
shall not have an 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 (12) (13) and
section 605, a person shall not buy the stocks of a manufacturer,
mixed spirit drink manufacturer, warehouser, 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 to sell
brandy made by that brandy manufacturer in a restaurant for
consumption on or off the premises if the restaurant is owned by
the brandy manufacturer or operated by another person under an
agreement approved by the commission and is located on the premises
where the brandy manufacturer is licensed. Brandy sold for
consumption off the premises under this subsection shall be sold at
the uniform price established by the commission.
(6) The commission shall issue a wine maker license to a
holder of a class C license under the following circumstances:
(a) The applicant is located in a county with a population of
not more than 40,000, at the time of application.
(b) The county within which the applicant proposes to conduct
business as a wine maker has, at the time of application, an
unemployment rate of at least 7.0% as verified by the records of
the department of energy, labor, and economic growth.
(c) The applicant submits plans to the commission
demonstrating that the proposed wine manufacturing operation will
have separate licensed premises.
(d) The applicant submits a duly authorized resolution from
the county commission having jurisdiction over the proposed wine
manufacturing operation approving the grant of the application.
(7) (6)
The commission shall allow a small
distiller to sell
brands of spirits it manufactures for consumption on the licensed
premises at that distillery.
(8) (7)
A brewpub may have an interest in
up to 2 other
brewpubs so long as 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.
(9) (8)
This section does not prohibit a
supplier from having
any interest, directly or indirectly, in any other supplier.
(10) (9)
The commission may approve the
following pursuant to
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.
(11) (10)
A manufacturer is prohibited from
having any
interest, directly or indirectly, in a wholesaler.
(12) (11)
A wine maker is prohibited from
collectively
delivering wine, with any other wine maker, to retail licensees.
(13) (12)
As used in this section:
(a) "Manufacturer" means, notwithstanding section 109(1), a
wine maker, small wine maker, brewer, micro brewer, manufacturer of
spirits, small distiller, brandy manufacturer, and mixed spirit
drink manufacturer.
(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.