SENATE BILL No. 427

April 1, 2009, Introduced by Senators ALLEN, BARCIA and PRUSI and referred to the Committee on Economic Development and Regulatory Reform.

A bill to amend 1998 PA 58, entitled

"Michigan liquor control code of 1998,"

by amending sections 537, 603, and 1027 (MCL 436.1537, 436.1603,

and 436.2027), as amended by 2008 PA 218.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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

alcoholic liquors 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 license 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 have attained the age of 21 years.

(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 licenses 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 selling less than 200,000

barrels of beer per year 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 license 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 license 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 license 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.

(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 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 upon which the wine tasting occurs conforms

to local and state sanitation requirements.

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

commission.

premises.

(d) Wine tasting does not take place between the hours of 2

a.m. and 7 a.m. Monday through Saturday, or between 2 a.m. and 12

noon on Sunday.

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

to all applicable rules promulgated by the commission.

(4) 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 upon which the brandy and spirits tastings

occur conform to local and state sanitation requirements.

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

commission.

considered licensed premises.

(d) Brandy and spirits tasting does not take place between the

hours of 2 a.m. and 7 a.m. Monday through Saturday or between 2

a.m. and 12 noon on Sunday.

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

to all applicable rules promulgated by the commission.

Sec. 603. (1) Except as provided in subsection (6) 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 subsection (6) 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 subsection (6) 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 subsection (6) 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 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 ~~the~~ a

premises where the brandy manufacturer or small distiller is

licensed. Brandy and spirits sold for consumption off the premises

under this subsection shall 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 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.

Sec. 1027. (1) Unless otherwise provided by rule of the

commission, a person shall not conduct samplings or tastings of any

alcoholic liquor for a commercial purpose except at premises that

are licensed by the commission for the sale and consumption of

alcoholic liquor on the premises.

(2) This section does not prevent either of the following:

(a) A vendor of spirits, brewer, wine maker, mixed spirit

drink manufacturer, small wine maker, outstate seller of beer,

outstate seller of wine, or outstate seller of mixed spirit drink,

or a bona fide market research organization retained by 1 of the

persons named in this subsection, from conducting samplings or

tastings of an alcoholic liquor product before it is approved for

sale in this state if the sampling or tasting is conducted pursuant

to prior written approval of the commission.

(b) An on-premises licensee from giving a sampling or tasting

of alcoholic liquor to an employee of the licensee during the legal

hours for consumption for the purpose of educating the employee

regarding 1 or more types of alcoholic liquor so long as the

employee is at least 21 years of age.

tasting of brands it manufactures on the licensed premises or on an

off-site tasting facility operated by that small distiller.

(3) A sampling or tasting of any alcoholic liquor in a home or