February 10, 2015, Introduced by Reps. Courser and Gamrat 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 203 (MCL 436.1203), as amended by 2014 PA 50.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 203. (1) Except as provided in this section and section
301, a person shall not sell, deliver, or import alcoholic liquor,
including alcoholic liquor for personal use, in this state unless
the sale, delivery, or importation is made by the commission, the
commission's authorized agent or distributor, an authorized
distribution agent approved by order of the commission, a person
licensed by the commission, or by prior written order of the
commission.
(2) Notwithstanding R 436.1011(7)(b) and R 436.1527 of the
Michigan administrative code and except as provided in subsection
(11), a retailer shall not deliver alcoholic liquor to a consumer
in this state at the home or business of the consumer or at any
location away from the licensed premises of the retailer. The
purpose
of this subsection is to exercise the state of Michigan's
this state's authority under section 2 of amendment XXI of the
constitution of the United States, to maintain the inherent police
powers to regulate the transportation and delivery of alcoholic
liquor, and to promote a transparent system for the transportation
and delivery of alcoholic liquor. The regulation described in this
subsection is considered necessary for both of the following
reasons:
(a) To promote the public health, safety, and welfare.
(b) To maintain strong, stable, and effective regulation by
having beer and wine sold by retailers to consumers in this state
by passing through the 3-tier distribution system established under
this act.
(3) For purposes of subsection (1), a direct shipper may sell,
deliver,
or import wine , to
consumers in this state by means of
any
mail order, internet, Internet,
telephone, computer, device, or
other electronic means, or sell directly to a consumer on the
winery premises. A direct shipper that sells, delivers, or imports
wine to a consumer under this subsection shall comply with all of
the following:
(a) Hold a direct shipper license.
(b) Pay any applicable taxes to the commission and pay any
applicable taxes to the department of treasury as directed by the
department of treasury. Upon the request of the department of
treasury, a direct shipper shall furnish an affidavit to verify
payment.
(c) Comply with all prohibitions of the laws of this state,
including, but not limited to, sales to minors.
(d) Verify the age of the individual placing the order by
obtaining from him or her a copy of a photo identification issued
by this state, another state, or the federal government or by
utilizing an identification verification service. The person
receiving and accepting the order on behalf of the direct shipper
shall record the name, address, date of birth, and telephone number
of the individual placing the order on the order form or other
verifiable record of a type and generated in a manner approved by
the commission and provide a duplicate to the commission.
(e) Upon request of the commission, make available to the
commission any document used to verify the age of the individual
ordering or receiving the wine from the direct shipper.
(f) Stamp, print, or label on the outside of the shipping
container that the package "Contains Alcohol. Must be delivered to
a person 21 years of age or older." The recipient at the time of
the delivery shall provide photo identification verifying his or
her
age along with a signature.and
sign for the delivery.
(g) Place a label on the top panel of the shipping container
containing the direct shipper license number, the order number, the
name and address of the individual placing the order, and the name
of the designated recipient if different from the name of the
individual placing the order.
(h) Direct ship not more than 1,500 9-liter cases, or 13,500
liters in total, of wine in a calendar year to consumers in this
state. If a direct shipper, whether located in this state or
outside this state, owns, in whole or in part, or commonly manages
1 or more direct shippers, it shall not in combination ship to
consumers in this state more than 13,500 liters of wine in the
aggregate.
(i) Pay wine taxes quarterly and report to the commission
quarterly the total amount of wine, by type, brand, and price,
shipped to consumers in this state during the preceding calendar
quarter, and the order numbers.
(j) Authorize and allow the commission and the department of
treasury to conduct an audit of the direct shipper's records.
(k) Consent and submit to the jurisdiction of the commission,
the department of treasury, and the courts of this state concerning
enforcement of this section and any related laws, rules, and
regulations.
(4)
Notwithstanding subsection (3), in the case of for a
sale,
delivery, or importation of alcoholic liquor occurring by any means
described in subsection (3), a person taking the order on behalf of
the
direct shipper shall comply with subsection (3)(c) through to
(g).
(5) A person that delivers the wine for a direct shipper under
this section shall verify that the individual accepting delivery is
21 years of age or older and is the individual who placed the order
or the designated recipient, is an individual 21 years of age or
older currently occupying or present at the address, or is an
individual otherwise authorized through a rule promulgated under
this act by the commission to receive alcoholic liquor under this
section. If the delivery person, after a diligent inquiry,
determines that the purchaser or designated recipient is not 21
years of age or older, the delivery person shall return the wine to
the direct shipper. A delivery person who returns wine to the
direct shipper because the purchaser or designated recipient is not
21 years of age or older is not liable for any damages suffered by
the purchaser or direct shipper.
(6) All spirits for sale, use, storage, or distribution in
this
state , shall
originally be purchased by and imported into the
state by the commission, or by prior written authority of the
commission.
(7) This section does not apply to alcoholic liquor brought
into this state for personal or household use in an amount
permitted by federal law by an individual 21 years of age or older
at the time of reentry into this state from without the territorial
limits of the United States if the individual has been outside the
territorial limits of the United States for more than 48 hours and
has not brought alcoholic liquor into the United States during the
preceding 30 days.
(8) An individual 21 years of age or older may do either of
the following in relation to alcoholic liquor that contains less
than 21% alcohol by volume:
(a) Personally transport from another state, once in a 24-hour
period, not more than 312 ounces of alcoholic liquor for that
individual's personal use, notwithstanding subsection (1).
(b) Ship or import from another state alcoholic liquor for
that individual's personal use if that personal importation is done
in compliance with subsection (1).
(9) A direct shipper shall not sell, deliver, or import wine
to a consumer unless it applies for and is granted a direct shipper
license from the commission. This subsection does not prohibit wine
tasting or the selling at retail by a wine maker of wines he or she
produced and bottled or wine manufactured for that wine maker by
another wine maker, if done in compliance with this act. Only the
following persons qualify for the issuance of a direct shipper
license:
(a) A wine maker.
(b) A wine producer and bottler located inside this country
but outside of this state holding both a federal basic permit
issued by the alcohol and tobacco tax and trade bureau and a
license to manufacture wine in its state of domicile.
(10) An applicant for a direct shipper license shall submit an
application to the commission in a written or electronic format
provided by the commission and accompanied by an application and
initial
license fee of $100.00. The application shall must be
accompanied by a copy or other evidence of the existing federal
basic permit or license, or both, held by the applicant. The direct
shipper may renew its license annually by submission of a license
renewal fee of $100.00 and a completed renewal application. The
commission shall use the fees collected under this section to
conduct investigations and audits of direct shippers. The failure
to renew, or the revocation or suspension of, the applicant's
existing Michigan license, federal basic permit, or license to
manufacture wine in its state of domicile is grounds for revocation
or denial of the direct shipper license. If a direct shipper is
found guilty of violating this act or a rule promulgated by the
commission, the commission shall notify both the alcoholic liquor
control agency in the direct shipper's state of domicile and the
alcohol
and tobacco tax and trade bureau Alcohol
and Tobacco Tax
and
Trade Bureau of the United States department
of treasury
Department of Treasury of the violation.
(11) Except as otherwise provided under subsection (12), a
retailer that holds a specially designated merchant license in this
state; an out-of-state retailer that holds its state's substantial
equivalent license; or a brewpub, micro brewer, or an out-of-state
entity that is the substantial equivalent of a brewpub or micro
brewer may deliver beer and wine to the home or other designated
location of a consumer in this state if all of the following
conditions are met:
(a) The beer or wine, or both, is delivered by the retailer's,
brewpub's, or micro brewer's employee and not by an agent or by a
third party delivery service.
(b) The retailer, brewpub, or micro brewer or its employee who
delivers the beer or wine, or both, verifies that the individual
accepting delivery is at least 21 years of age.
(c) If the retailer, brewpub, or micro brewer or its employee
intends to provide service to consumers, the retailer, brewpub, or
micro brewer or its employee providing the service has received
alcohol server training through a server training program approved
by the commission.
(12) A retailer that holds a specially designated merchant
license in this state or an out-of-state retailer that holds its
state's substantial equivalent license may utilize a third party
that provides delivery service to municipalities in this state that
are surrounded by water and inaccessible by motor vehicle to
deliver beer and wine to the home or other designated location of
that consumer if the delivery service is approved by the commission
and agrees to verify that the individual accepting delivery of the
beer and wine is at least 21 years of age.
(13) For purposes of subsection (1), a qualified micro brewer
or an out-of-state entity that is the substantial equivalent of a
qualified micro brewer may sell and deliver beer to a retailer in
this state if all of the following conditions are met:
(a) The retailer is not located in a sales territory for which
the qualified micro brewer has granted exclusive sales rights to a
wholesaler
pursuant to under sections 401 and 403 for the sale of
any brand or brands of beer produced by that micro brewer.
(b) The beer is sold and delivered by an employee of the
qualified micro brewer, not an agent, and is transported and
delivered utilizing a vehicle owned by the qualified micro brewer,
not by a third party delivery service.
(c) The qualified micro brewer is in compliance with
applicable state and federal law and applicable regulatory
provisions of this act and rules adopted by the commission under
this act including, but not limited to, those requirements related
to each of the following:
(i) Employees that sell and deliver beer to retailers.
(ii) Vehicles used to deliver beer to retailers.
(iii) Price schedules and temporary price reductions.
(14) A brewer may sell its beer directly to a consumer.
(15) A winemaker may sell its wine directly to a consumer.
(16) (14)
As used in this section:
(a) "Computer" means any connected, directly interoperable or
interactive device, equipment, or facility that uses a computer
program or other instructions to perform specific operations
including logical, arithmetic, or memory functions with or on
computer data or a computer program and that can store, retrieve,
alter, or communicate the results of the operations to a person,
computer program, computer, computer system, or computer network.
(b) "Computer network" means the interconnection of hardwire
or wireless communication lines with a computer through remote
terminals, or a complex consisting of 2 or more interconnected
computers.
(c) "Computer program" means a series of internal or external
instructions communicated in a form acceptable to a computer that
directs the functioning of a computer, computer system, or computer
network in a manner designed to provide or produce products or
results from the computer, computer system, or computer network.
(d) "Computer system" means a set of related, connected or
unconnected, computer equipment, devices, software, or hardware.
(e) "Consumer" means an individual who purchases beer or wine
for personal consumption and not for resale.
(f) "Device" includes, but is not limited to, an electronic,
magnetic, electrochemical, biochemical, hydraulic, optical, or
organic object that performs input, output, or storage functions by
the manipulation of electronic, magnetic, or other impulses.
(g) "Diligent inquiry" means a diligent good faith effort to
determine the age of an individual, that includes at least an
examination of an official Michigan operator's or chauffeur's
license, an official Michigan personal identification card, or any
other bona fide picture identification that establishes the
identity and age of the individual.
(h) "Direct shipper" means a person who sells, delivers, or
imports wine, to consumers in this state, that he or she produces
and bottles or wine that is manufactured by a wine maker for
another wine maker and that is transacted or caused to be
transacted
through the use of any mail order, internet, Internet,
telephone, computer, device, or other electronic means, or sells
directly to consumers on the winery premises.
(i)
"Identification verification service" means any internet-
based
Internet-based service approved by the commission
specializing in age and identity verification.
(j) "Qualified micro brewer" means a micro brewer that
produces in total less than 1,000 barrels of beer per year. In
determining the 1,000-barrel threshold, all brands and labels of a
micro brewer, whether brewed in this state or outside this state,
shall
must be combined.