BREWERS & OTHERS: REAL PROPERTY S.B. 329:
SUMMARY AS ENACTED
Senate Bill 329 (as enacted) PUBLIC ACT 45 of 2014
Sponsor: Senator Dave Hildenbrand
Senate Committee: Regulatory Reform
House Committee: Regulatory Reform
CONTENT
The bill amended the Michigan Liquor Control Code to do the following:
-- Extend to a wine maker, distiller, and brandy manufacturer, a provision that allows a brewer to acquire, develop, sell, lease, finance, maintain, operate, or promote real property occupied by another vendor (except a wholesaler) under certain circumstances.
-- Limit to seven the number of those real property arrangements allowed for each brewer, wine maker, distiller, or brandy manufacturer.
-- Delete a requirement that a State or Federal agency has designated the property as being in an urban, commercial, or community redevelopment area.
Specifically, the Code allows a brewer or its parent company, subsidiary, or affiliate located in Michigan, to acquire, develop, sell, lease, finance, maintain, operate, or promote real property occupied or to be occupied by another vendor, except a wholesaler, if all of the following apply:
-- The brewer has received the Liquor Control Commission's written approval before entering into any arrangement or contract regarding the real property.
-- The legislative body of the city, village, or township where the property is located certifies to the Commission that the property is in an urban, commercial, or community redevelopment area.
-- Any arrangement or contract entered into between the brewer, its parent company, subsidiary, or affiliate and another vendor may not directly or indirectly influence or control the brand of alcohol sold or to be sold by the vendor and may be concerned only with real property.
Under the bill, that authorization also applies to a wine maker, distiller, or brandy manufacturer, or its parent company, subsidiary, or affiliate located in Michigan.
In addition, under the bill, the brewer, wine maker, distiller, or brandy manufacturer, or its parent company, subsidiary, or affiliate, may not have acquired, developed, sold, leased, financed, maintained, operated, or promoted more than seven real properties that are occupied or to be occupied by another vendor, except a wholesaler.
The bill also deleted a requirement that the city, village, or township certify to the Commission that the real property was designated by a State or Federal agency as being in
an urban, commercial, or community redevelopment area, although the local unit still must certify that the real property is in one of those areas.
The bill took effect on March 25, 2014. It was tie-barred to Senate Bills 504 through 507 and 650 and to House Bills 4277, 4709, 4710, and 4711, all of which also amended the Liquor Control Code.
MCL 436.1605 Legislative Analyst: Patrick Affholter
FISCAL IMPACT
The bill will have no fiscal impact on State or local government.
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.