SB-0329, As Passed House, March 12, 2014

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE SUBSTITUTE FOR

 

SENATE BILL NO. 329

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1998 PA 58, entitled

 

"Michigan liquor control code of 1998,"

 

by amending section 605 (MCL 436.1605).

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 605. (1) A brewer, wine maker, distiller, brandy

 

manufacturer, or the parent company, a subsidiary or an affiliate

 

of a brewer, wine maker, distiller, or brandy manufacturer which

 

parent company, subsidiary, or affiliate is located in this state

 

may 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 exist:

 

     (a) The brewer, wine maker, distiller, or brandy manufacturer

 

has received written approval of the commission before entering

 


into any arrangement or contract between the parties regarding the

 

real property.

 

     (b) The legislative body of the city, village, or township

 

where the property is located certifies to the commission that the

 

real property is in an urban, commercial, or community

 

redevelopment area. and is designated as such by a state or federal

 

agency.

 

     (c) Any arrangement or contract entered into between the

 

brewer, wine maker, distiller, brandy manufacturer, its parent

 

company, subsidiary, or affiliate and another vendor shall not

 

directly or indirectly influence or control the brand of alcoholic

 

liquor sold or to be sold by the vendor and shall only be concerned

 

with real property.

 

     (d) The brewer, wine maker, distiller, brandy manufacturer,

 

its parent company, subsidiary, or affiliate has not acquired,

 

developed, sold, leased, financed, or maintained, operated, or

 

promoted more than 7 real properties that are occupied or to be

 

occupied by another vendor, except a wholesaler.

 

     (2) The commission may deny or approve an arrangement or

 

contract to be entered into under this section. In denying or

 

approving an arrangement or contract, the commission shall consider

 

all of the following:

 

     (a) That the arrangement or contract to be entered into is

 

concerned only with real property.

 

     (b) That the certification required under subsection (1)(b)

 

has been received by the commission.

 

     (c) That the arrangement or contract does not violate this act

 


or the rules promulgated under this act.

 

     (3) The commission may review any arrangement or contract

 

under this section at the time that 1 of the parties to the

 

arrangement or contract applies for or renews a license. The

 

commission may deny, revoke, or suspend the license of a party to

 

the arrangement or contract if the commission finds that the party

 

to the arrangement or contract has violated this act or the rules

 

promulgated under this act.

 

     (4) Except as otherwise provided in subsection (5), a

 

wholesaler shall not be a party to, directly or indirectly, an

 

arrangement or contract under this section.

 

     (5) A manufacturer, mixed spirit drink manufacturer,

 

warehouser, wholesaler, authorized distribution agent, outstate

 

seller of beer, outstate seller of wine, outstate seller of mixed

 

spirit drink, or vendor of spirits may acquire, develop, sell,

 

lease, finance, maintain, operate, or promote a condominium project

 

or own a condominium unit as its sole property, under the

 

condominium act, 1978 PA 59, MCL 559.101 to 559.275, 559.276, if

 

that condominium unit is not the licensed premises owned separately

 

by a retailer and if all of the following apply:

 

     (a) Condominium assessments in the condominium project are

 

based on the proportional area each condominium unit has to the

 

total area.

 

     (b) A condominium unit operating as a licensed premises

 

operates under a separate name from the condominium project except

 

that cooperative advertising shall be permitted among owners of

 

condominium units for the purpose of promoting the condominium

 


project if the name of a brand or brands of an alcoholic liquor is

 

not mentioned in the advertising.

 

     (c) Ownership of a condominium unit and participation in a

 

condominium association under this section is not considered a

 

financial interest, interest by ownership, or interest by

 

interlocking directors on stock ownership prohibited by section

 

603.

 

     (d) A retailer separately owning a separate condominium unit

 

as sole property does not directly purchase alcoholic liquor from

 

the manufacturer, warehouser, wholesaler, outstate seller of mixed

 

spirit drink, or vendor of spirits who owns, leases, maintains,

 

finances, or operates the condominium project.

 

     (e) A wholesaler who that has a direct or indirect interest in

 

a condominium unit in which a retailer is located does not sell

 

alcoholic liquor to any licensed retail business in which that

 

retailer, or any person having an ownership interest in that

 

retailer, has an ownership interest; and, a retail licensed

 

business in which that retailer, or any person having an ownership

 

interest in that retailer, has an ownership interest does not

 

purchase alcoholic liquor from a wholesaler who that has a direct

 

or indirect interest in a condominium or condominium unit in which

 

that retailer is located.

 

     (f) A retailer acquiring a separate condominium unit as sole

 

property pays the fair market value for the unit.

 

     (6) Subsection (5) does not apply to a manufacturer, mixed

 

spirit drink manufacturer, warehouser, wholesaler, authorized

 

distribution agent, outstate seller of beer, outstate seller of

 


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

 

with a direct or indirect interest in a license under the Michigan

 

gaming control and revenue act, the Initiated Law of 1996 IL 1, MCL

 

432.201 to 432.216. 432.226. Subsection (5) does not prohibit a

 

direct physical connection between a condominium unit which that is

 

the licensed premises and a condominium unit which that is not the

 

licensed premises.

 

     Enacting section 1. This amendatory act does not take effect

 

unless all of the following bills of the 97th Legislature are

 

enacted into law:

 

     (a) Senate Bill No. 504.

 

     (b) Senate Bill No. 505.

 

     (c) Senate Bill No. 506.

 

     (d) Senate Bill No. 507.

 

     (e) Senate Bill No. 650.

 

     (f) House Bill No. 4277.

 

     (g) House Bill No. 4709.

 

     (h) House Bill No. 4710.

 

     (i) House Bill No. 4711.