Bill Text: MI HB6224 | 2009-2010 | 95th Legislature | Engrossed
Bill Title: Liquor; authorized distribution agents; provision relating to dualing; modify and provide for certain new license categories and sampling activities. Amends secs. 109, 111, 113, 113a, 205, 307, 525, 537, 543, 603, 1025, 1027, 1111, 1113, 1114 & 1115 of 1998 PA 58 (MCL 436.1109 et seq.) & adds sec. 545.
Spectrum: Slight Partisan Bill (Democrat 48-30)
Status: (Passed) 2010-11-30 - Assigned Pa 213'10 With Immediate Effect [HB6224 Detail]
Download: Michigan-2009-HB6224-Engrossed.html
HB-6224, As Passed Senate, November 10, 2010
SENATE SUBSTITUTE FOR
HOUSE BILL NO. 6224
A bill to amend 1998 PA 58, entitled
"Michigan liquor control code of 1998,"
by amending sections 109, 111, 113, 113a, 205, 307, 525, 537, 543,
603, 1025, 1027, 1111, 1113, 1114, and 1115 (MCL 436.1109,
436.1111, 436.1113, 436.1113a, 436.1205, 436.1307, 436.1525,
436.1537, 436.1543, 436.1603, 436.2025, 436.2027, 436.2111,
436.2113, 436.2114, and 436.2115), sections 111 and 537 as amended
by 2008 PA 218, section 113 as amended and section 113a as added by
2005 PA 269, sections 205, 525, 543, and 1027 as amended by 2010 PA
175, section 603 as amended by 2009 PA 2, section 1025 as amended
by 2008 PA 11, and section 1113 as amended and section 1114 as
added by 2004 PA 134, and by adding section 545.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 109. (1) "Manufacturer" means a person engaged in the
manufacture of alcoholic liquor, including, but not limited to, a
distiller, a rectifier, a wine maker, and a brewer.
(2) "Master distributor" means a wholesaler who acts in the
same or similar capacity as a brewer, wine maker, outstate seller
of wine, or outstate seller of beer for a brand or brands of beer
or wine to other wholesalers on a regular basis in the normal
course of business.
(3) (2)
"Micro brewer" means a brewer that produces in total
less than 30,000 barrels of beer per year and that may sell the
beer produced to consumers at the licensed brewery premises for
consumption on or off the licensed brewery premises. In determining
the 30,000-barrel threshold, all brands and labels of a brewer,
whether brewed in this state or outside this state, shall be
combined and all facilities for the production of beer that are
owned or controlled by the same person shall be treated as a single
facility.
(4) (3)
"Minor" means a person less than 21 years of age.
(5) (4)
"Mixed spirit drink" means a drink produced and
packaged or sold by a mixed spirit drink manufacturer or an
outstate seller of mixed spirit drink which contains 10% or less
alcohol by volume consisting of distilled spirits mixed with
nonalcoholic beverages or flavoring or coloring materials and which
may also contain 1 or more of the following:
(a) Water.
(b) Fruit juices.
(c) Fruit adjuncts.
(d) Sugar.
(e) Carbon dioxide.
(f) Preservatives.
(6) (5)
"Mixed spirit drink manufacturer" means any person
licensed under this act to manufacture mixed spirit drink in this
state and to sell mixed spirit drink to a wholesaler. For purposes
of rules promulgated by the commission, a mixed spirit drink
manufacturer shall be treated as a wine manufacturer but is subject
to the rules applicable to spirits for purposes of manufacturing
and labeling.
(7) (6)
"Mixed wine drink" means a drink or similar product
marketed as a wine cooler and containing less than 7% alcohol by
volume, consisting of wine and plain, sparkling, or carbonated
water, and containing any 1 or more of the following:
(a) Nonalcoholic beverages.
(b) Flavoring.
(c) Coloring materials.
(d) Fruit juices.
(e) Fruit adjuncts.
(f) Sugar.
(g) Carbon dioxide.
(h) Preservatives.
(8) (7)
"Outstate seller of beer" means a person licensed by
the commission to sell beer which has not been manufactured in this
state to a wholesaler in this state in accordance with rules
promulgated by the commission.
(9) (8)
"Outstate seller of mixed spirit drink" means a person
licensed by the commission to sell mixed spirit drink which has not
been manufactured in this state to a wholesaler in this state in
accordance with rules promulgated by the commission. For purposes
of rules promulgated by the commission, an outstate seller of mixed
spirit drink shall be treated as an outstate seller of wine but is
subject to the rules applicable to spirits for purposes of
manufacturing and labeling.
(10) (9)
"Outstate seller of wine" means a person licensed by
the commission to sell wine which has not been manufactured in this
state to a wholesaler in this state in accordance with rules
promulgated by the commission and to sell sacramental wine as
provided in section 301.
Sec. 111. (1) "Person" means an individual, firm, partnership,
limited partnership, association, limited liability company, or
corporation.
(2) "Primary source of supply" means, in the case of domestic
spirits, the distiller, producer, owner of the commodity at the
time it becomes a marketable product, or bottler, or the exclusive
agent of any such person and, in the case of spirits imported into
the United States, either the foreign distiller, producer, owner of
the bottler, or the prime importer for, or the exclusive agent in
the United States of, the foreign distiller, producer, owner, or
the bottler.
(3) "Professional account" means an account established for a
person by a class C licensee or tavern licensee whose major
business is the sale of food, by which the licensee extends credit
to the person for not more than 30 days.
(4) "Residence" means the premises in which a person resides
permanently.
(5) "Retailer" means a person licensed by the commission who
sells to the consumer in accordance with rules promulgated by the
commission. Retailer includes a brewpub but does not include a
manufacturer or supplier, as defined in section 603, that is
allowed as a condition of its license to sell to consumers in this
state.
(6) "Sacramental wine" means wine containing not more than 24%
of alcohol by volume which is used for sacramental purposes.
(7) "Sale" includes the exchange, barter, traffic, furnishing,
or giving away of alcoholic liquor. In the case of a sale in which
a shipment or delivery of alcoholic liquor is made by a common or
other carrier, the sale of the alcoholic liquor is considered to be
made in the county within which the delivery of the alcoholic
liquor is made by that carrier to the consignee or his or her agent
or employee, and venue for the prosecution for that sale may be in
the county or city where the seller resides or from which the
shipment is made or at the place of delivery.
(8) "School" includes buildings used for school purposes to
provide instruction to children in grades kindergarten through 12,
when that instruction is provided by a public, private,
denominational, or parochial school, except those buildings used
primarily for adult education or college extension courses. School
does not include a proprietary trade or occupational school.
(9) "Small distiller" means a manufacturer of spirits annually
manufacturing in Michigan not exceeding 60,000 gallons of spirits,
of all brands combined.
(10) "Small wine maker" means a wine maker manufacturing or
bottling not more than 50,000 gallons of wine in 1 calendar year.
(11) "Special license" means a contract between the commission
and the special licensee granting authority to that licensee to
sell beer, wine, mixed spirit drink, or spirits. The license shall
be granted only to such persons and such organization and for such
period of time as the commission shall determine so long as the
person or organization is able to demonstrate an existence separate
from an affiliated umbrella organization. If such an existence is
demonstrated, the commission shall not deny a special license
solely by the applicant's affiliation with an organization that is
also eligible for a special license.
(12) "Specially designated distributor" means, subject to
section 534, a person engaged in an established business licensed
by the commission to distribute spirits and mixed spirit drink in
the original package for the commission for consumption off the
premises.
(13) "Specially designated merchant" means a person to whom
the commission grants a license to sell beer or wine, or both, at
retail for consumption off the licensed premises.
(14) "Spirits" means a beverage that contains alcohol obtained
by distillation, mixed with potable water or other substances, or
both, in solution, and includes wine containing an alcoholic
content of more than 21% by volume, except sacramental wine and
mixed spirit drink.
(15) "State liquor store" means a store established by the
commission under this act for the sale of spirits in the original
package for consumption off the premises.
(16) "Supplier of spirits" means a vendor of spirits, a
manufacturer of spirits, or a primary source of supply.
Sec. 113. (1) "Tavern" means any place licensed to sell at
retail beer and wine for consumption on the premises only.
(2) "Vehicle" means any means of transportation by land, by
water, or by air.
(3) "Vendor" means a person licensed by the commission to sell
alcoholic liquor.
(4) "Vendor of spirits" means a person selling spirits to the
commission.
(5) "Warehouse" means a premises or place primarily
constructed, used, or provided with facilities for the storage in
transit or other temporary storage of perishable goods or for the
conduct of a warehousing business, or for both.
(6) "Warehouser" means a licensee authorized by the commission
to store alcoholic beverages, but prohibited from making sales or
deliveries to retailers unless the licensee is also the holder of a
wholesaler or manufacturer license issued by the commission.
(7) "Wholesaler" means a person who is licensed by the
commission and sells beer, wine, or mixed spirit drink only to
retailers or other licensees, and who sells sacramental wine as
provided in section 301. A wholesaler includes a person who may
also act as a master distributor unless prohibited from doing so by
its supplier or manufacturer in a written agreement required by
either section 305(3)(i) or 403(3)(i) and, by mutual agreement with
an outstate seller of beer or wine, can be authorized by the
outstate seller of beer or wine to do, in the manner prescribed by
the commission, either or both of the following:
(a) Register with the state of Michigan the labels of the
outstate seller of beer or wine.
(b) On behalf of the outstate seller of beer or wine, collect
excise taxes levied by the state of Michigan and remit the taxes to
the commission.
(8) "Wine" means the product made by the normal alcoholic
fermentation of the juice of sound, ripe grapes, or any other fruit
with the usual cellar treatment, and containing not more than 21%
of alcohol by volume, including fermented fruit juices other than
grapes and mixed wine drinks.
(9) "Wine maker" means any person licensed by the commission
to manufacture wine and to sell that wine to a wholesaler, to a
consumer by direct shipment, at retail on the licensed winery
premises, to sell that wine to a retailer, and as provided for in
section 537.
Sec. 113a. (1) "Tavern" means any place licensed to sell at
retail beer and wine for consumption on the premises only.
(2) "Vehicle" means any means of transportation by land, by
water, or by air.
(3) "Vendor" means a person licensed by the commission to sell
alcoholic liquor.
(4) "Vendor of spirits" means a person selling spirits to the
commission.
(5) "Warehouse" means a premises or place primarily
constructed, used, or provided with facilities for the storage in
transit or other temporary storage of perishable goods or for the
conduct of a warehousing business, or for both.
(6) "Warehouser" means a licensee authorized by the commission
to store alcoholic liquor, but prohibited from making sales or
deliveries to retailers unless the licensee is also the holder of a
wholesaler license issued by the commission.
(7) "Wholesaler" means a person who is licensed by the
commission and sells beer, wine, or mixed spirit drink only to
retailers or other licensees, and who sells sacramental wine as
provided in section 301. A wholesaler includes a person who may
also act as a master distributor unless prohibited from doing so by
its supplier or manufacturer in a written agreement required by
either section 305(3)(i) or 403(3)(i) and, by mutual agreement with
an outstate seller of beer or wine, can be authorized by the
outstate seller of beer or wine to do, in the manner provided by
the commission, either or both of the following:
(a) Register with the state of Michigan the labels of the
outstate seller of beer or wine.
(b) On behalf of the outstate seller of beer or wine, collect
excise taxes levied by the state of Michigan and remit the taxes to
the commission.
(8) "Wine" means the product made by the normal alcoholic
fermentation of the juice of sound, ripe grapes, or any other fruit
with the usual cellar treatment, and containing not more than 21%
of alcohol by volume, including fermented fruit juices other than
grapes and mixed wine drinks.
(9) "Wine maker" means any person licensed by the commission
to manufacture wine, to sell that wine to a wholesaler, to sell
that wine by direct shipment to a consumer, at retail on the
licensed winery premises, and as provided for in section 537 but
not to sell wine to a retailer.
Sec. 205. (1) The commission shall, as provided in section
203(1), by order appoint authorized distribution agents to engage
in the warehousing and delivery of spirits in this state so as to
ensure that all retail licensees continue to be properly serviced
with spirits. An authorized distribution agent is subject to
uniform requirements, including business operating procedures, that
the commission may prescribe by rule, subject to this section.
(2) A person is eligible for appointment by the commission as
an authorized distribution agent if the following circumstances
exist:
(a) The person satisfies all applicable commission rules
prescribing qualifications for licensure promulgated under section
215.
(b) The person has entered into a written agreement or
contract with a supplier of spirits for the purposes of warehousing
and delivering a brand or brands of spirits of that supplier of
spirits.
(c) The person has an adequate warehousing facility located in
this state for the storing of spirits from which all delivery of
spirits to retail licensees shall be made.
(3) An authorized distribution agent shall not have a direct
or indirect interest in a supplier of spirits or in a retailer. A
supplier of spirits or a retailer shall not have a direct or
indirect interest in an authorized distribution agent. An
authorized
distribution agent shall not hold title to spirits.
After
September 24, 1996, an authorized distribution agent or an
applicant
to become an authorized distribution agent who directly
or
indirectly becomes licensed subsequently as a wholesaler shall
not
be appointed to sell a brand of wine in a county or part of a
county
for which a wholesaler has been appointed to sell that brand
under
an agreement required by this act. A wholesaler who directly
or
indirectly becomes an authorized distribution agent shall not
sell
or be appointed to sell a brand of wine to a retailer in a
county
or part of a county for which another wholesaler has been
appointed
to sell that brand under an agreement required by this
act,
unless that wholesaler was appointed to sell and was actively
selling
that brand to retailers in that county or part of that
county
prior to September 24, 1996, or unless the sale and
appointment
is the result of an acquisition, purchase, or merger
with
the existing wholesaler who was selling that brand to a
retailer
in that county or part of that county prior to September
24,
1996.
(4) An authorized distribution agent shall deliver to each
retailer located in its assigned distribution area on at least a
weekly basis if the order meets the minimum requirements. Except
that in those weeks that accompany a state holiday, the commission
may order a modified delivery schedule provided that a retailer
waits not longer than 9 days between deliveries due to a modified
delivery schedule. The commission shall provide for an integrated
on-line ordering system for spirits and shall require the
continuance of any ordering system in existence on the activation
date of the system established under section 206. The minimum
requirements shall be set by the commission and shall be a
sufficient number of bottles to comprise not more than 2 cases. A
retailer may pick up the product at the authorized distribution
agent's warehouse. To avoid occasional emergency outages of
spirits, a retail licensee may make up to 12 special emergency
orders to an authorized distribution agent per calendar year which
order shall be made available to the retail licensee within 18
hours of the placing of the order. A special emergency order placed
on Saturday or Sunday shall be made available to the retail
licensee before noon on the following Monday. An authorized
distribution agent may impose a fee of up to $20.00 to deliver a
special emergency order to a retail licensee.
(5) In locations inaccessible to a motor vehicle as that term
is defined by the Michigan vehicle code, 1949 PA 300, MCL 257.1 to
257.923, the authorized distribution agent shall arrange that a
delivery of spirits to a retailer be in compliance with the
following procedures:
(a) After processing an order from a retailer, an authorized
distribution agent shall contact a retailer to confirm the quantity
of cases or bottles, or both, and the exact dollar total of the
order.
(b) The authorized distribution agent shall have the
responsibility to coordinate with the retailer the date and time a
driver is scheduled to deliver the order to a ferry transport dock,
shall arrange any ferry, drayage, or other appropriate service, and
shall pick up the retailer's payment at that time.
(c) The ferry transport company or company representing any
other form of conveyance shall take the retailer's payment to the
mainland dock and give that payment to the authorized distribution
agent's driver.
(d) The ferry transport company or company representing any
other form of conveyance shall transport the order to the drayage
or other appropriate company at the island dock for immediate
delivery to the retailer.
(e) The drayage or other appropriate company shall deliver the
order to the retailer.
(6) The authorized distribution agent is responsible for the
payment of all transportation and delivery charges imposed by the
ferry, drayage, or other conveyance company and is responsible for
all breakage and any shortages, whether attributable to the ferry,
drayage, or other conveyance company or any combination of those
companies, until the order is delivered to the retailer's
establishment. This subsection does not in any way prevent the
authorized distribution agent from seeking reimbursement or damages
from any company conveying the authorized distribution agent's
product.
(7) Except as otherwise provided in subsection (4), an
authorized distribution agent shall not charge a delivery fee or a
split-case fee for delivery of spirits sold by the commission to a
retailer.
(8) An authorized distribution agent or prospective authorized
distribution agent shall maintain and make available to the
commission or its representatives, upon notice, any contract or
written agreement it may have with a supplier of spirits or other
authorized distribution agent for the warehousing and delivery of
spirits in this state.
(9) For any violation of this act, rules promulgated under
this act, or the terms of an order appointing an authorized
distribution agent, an authorized distribution agent shall be
subject to the suspension, revocation, forfeiture, and penalty
provisions of sections 903(1) and 907 in the same manner in which a
licensee would be subject to those provisions. An authorized
distribution agent aggrieved by a penalty imposed by the commission
may invoke the hearing and appeal procedures of section 903(2) and
rules promulgated under that section.
(10) A specially designated distributor may sell to an on-
premises licensee up to 9 liters of spirits during any 1-month
period and an on-premises licensee may purchase, collectively from
specially designated distributors, up to that amount during any 1-
month period. Notwithstanding any other provision of this act or
rule promulgated under this act, a specially designated distributor
is only liable for knowingly violating this section. Records
verifying these purchases shall be maintained by the on-premises
licensee and be available to the commission upon request.
(11) An authorized distribution agent shall demonstrate that
it has made a good faith effort to provide employment to those
former state employees who were terminated due to the privatization
of the liquor distribution system. A good faith effort is
demonstrated by the authorized distribution agent performing at
least the following actions:
(a) Seeking from the commission a list of names and resumes of
all such former state employees who have indicated a desire for
continued employment in the distribution of liquor in Michigan.
(b) Providing a list of employment opportunities created by
the authorized distribution agent in the distribution of liquor in
Michigan to each individual whose name and resume is transmitted
from the commission.
(c) Providing an opportunity for application and interview to
any terminated state worker who indicates an interest in pursuing a
job opportunity with the authorized distribution agent.
(d) Providing a priority in hiring for those individuals who
apply and interview under this process.
(12) Any former state employees terminated due to
privatization who have reason to believe that an authorized
distribution agent has not made a good faith effort to provide him
or her with employment opportunities as described in subsection
(11) may file a complaint with the commission who shall hear the
complaint and make a determination on its validity. If the
commission determines that the complaint is valid, the violation
may be treated as a violation of this act and the authorized
distribution agent may be subject to the suspension, revocation,
forfeiture, and penalty provisions of sections 903(1) and 907.
(13) In addition to paying a vendor of spirits the acquisition
price for purchasing spirits, the commission may pay a vendor of
spirits an additional amount of not less than $4.50 and not more
than $7.50 for each case of spirits purchased as an offset to the
costs being incurred by that vendor of spirits in contracting with
an authorized distribution agent for the warehousing and delivery
of spirits to retailers. The payment described in this subsection
shall not be included in the cost of purchasing spirits by the
commission and shall not be subject to the commission's markup,
special taxes, or state sales tax. The per-case offset established
by this subsection may be increased by the state administrative
board each January to reflect reasonable increases in the
authorized distribution agent's cost of warehousing and delivery.
As used in this subsection, "case" means a container holding twelve
750 ml bottles of spirits or other containers containing spirits
which are standard to the industry.
Sec.
307. (1) A manufacturer, and an
outstate seller of wine,
and a master distributor shall grant to each of its wholesalers a
sales territory within which the wholesaler shall be a distributor
of
the specified brand or brands of the manufacturer, or outstate
seller of wine, or master distributor under an agreement as
required under this act. The territory shall be the territory
agreed
upon between the wholesaler and manufacturer, or outstate
seller
of wine, or master distributor. A manufacturer or outstate
seller
of wine may grant the right to sell a specified brand or
brands
in a sales territory to more than 1 wholesaler. Except as
provided for in subsection (9) and beginning June 1, 2010, a
manufacturer, outstate seller of wine, or master distributor shall
not grant the right to sell a specified brand or brands of wine in
a sales territory to more than 1 wine wholesaler. A master
distributor shall not itself distribute a specified brand or brands
of wine in the same sales territory where that master distributor
has granted the right to distribute that specified brand or brands
of wine in that sales territory to another wine wholesaler.
Notwithstanding section 109(2), as used in this section, "master
distributor" means a wholesaler that acts in the same or similar
capacity as a wine maker, wine manufacturer, or outstate seller of
wine for a brand or brands of wine to other wholesalers on a
regular basis in the normal course of business.
(2) Notwithstanding subsection (1), a brand extension is not
considered a new or different brand. A manufacturer or outstate
seller of wine shall assign a brand extension to the wholesaler
that was granted the sales territory for the brand from which the
brand extension resulted.
(3) Subsection (2) does not apply where, before January 1,
1994, a manufacturer or outstate seller of wine had assigned a
brand extension to a wholesaler that was not the appointed
wholesaler for the brand from which the brand extension was made.
(4) Until July 1, 1995, a manufacturer or outstate seller of
wine who acquired or otherwise obtained the right to assign brands
of another manufacturer or outstate seller of wine between January
1, 1994 and July 1, 1995 shall assign a brand extension to the
wholesaler that was granted the sales territory for the brand from
which the brand extension resulted. Beginning July 1, 1995, a
manufacturer or outstate seller of wine who acquires or otherwise
obtains the right to assign brands of another manufacturer or
outstate seller of wine is not required to assign a new brand
extension to the wholesaler that is granted the exclusive sales
territory to the brand from which the new brand extension results.
Any brand extension assigned between January 1, 1994 and July 1,
1995 shall remain assigned to the assigned wholesaler.
(5) A manufacturer of a mixed wine drink, mixed spirit drink
manufacturer, outstate seller of a mixed wine drink, or outstate
seller of mixed spirit drink shall grant to each of its wholesalers
an exclusive sales territory in which the wholesaler shall be a
distributor of the specified brand or brands of the manufacturer or
outstate seller. The territory shall be the territory agreed upon
between the wholesaler and the manufacturer of a mixed wine drink,
mixed spirit drink manufacturer, outstate seller of mixed wine
drinks, or outstate seller of mixed spirit drink.
(6) Notwithstanding subsection (5), a brand extension is not
considered a new or different brand. A manufacturer of a mixed wine
drink, mixed spirit drink manufacturer, outstate seller of a mixed
wine drink, or outstate seller of mixed spirit drink shall assign a
brand extension to the wholesaler that was granted the exclusive
sales territory for the brand from which the brand extension
resulted.
(7) Subsection (6) does not apply where, before January 1,
1994, a manufacturer of a mixed wine drink, mixed spirit drink
manufacturer, outstate seller of a mixed wine drink, or outstate
seller of mixed spirit drink had assigned a brand extension to a
wholesaler that was not the appointed wholesaler for the brand from
which the brand extension was made.
(8) Until July 1, 1995, a manufacturer of a mixed wine drink,
mixed spirit drink manufacturer, outstate seller of mixed wine
drink, or outstate seller of mixed spirit drink who acquired or
otherwise obtained the right to assign brands of another
manufacturer of a mixed wine drink, mixed spirit drink
manufacturer, outstate seller of a mixed wine drink, or outstate
seller of mixed spirit drink between January 1, 1994 and July 1,
1995 shall assign a brand extension to the wholesaler that was
granted the exclusive sales territory for the brand from which the
brand extension resulted. Beginning July 1, 1995, a manufacturer of
mixed wine drink, mixed spirit drink manufacturer, outstate seller
of mixed wine drink, or outstate seller of mixed spirit drink who
acquires or otherwise obtains the right to assign brands of another
manufacturer of mixed wine drink, mixed spirit drink manufacturer,
outstate seller of mixed wine drink, or outstate seller of mixed
spirit drink is not required to assign a new brand extension to the
wholesaler that is granted the exclusive sales territory to the
brand from which the new brand extension results. Any brand
extension assigned between January 1, 1994 and July 1, 1995 shall
remain assigned to the assigned wholesaler.
(9) Subsection (1) does not prohibit any of the following:
(a) A manufacturer of wine, an outstate seller of wine, or a
master distributor from continuing or renewing an agreement under
this act with a wholesaler for a specified brand or brands for any
county or part of a county where more than 1 wholesaler has an
agreement with the manufacturer of wine, outstate seller of wine,
or master distributor in effect on June 1, 2010 if the wholesaler
had an agreement to distribute that specified brand or brands in
that county or that part of a county and was a master distributor
or was actively selling that brand or brands of wine to a retailer
in that county or that part of a county on June 1, 2010.
(b) A wholesaler from selling or transferring the wholesaler's
distribution rights or a manufacturer of wine, outstate seller of
wine, or master distributor from approving the sale or transfer of
a wholesaler's distribution rights to a specified brand or brands
of wine for any county or part of a county to another wholesaler if
the selling or transferring wholesaler, or any of its predecessors,
had the right to distribute that brand or brands of wine in that
county or part of that county and was actively selling that brand
or brands to a retailer in that county or that part of a county on
June 1, 2010 or was acting as a master distributor for that county
or part of that county on June 1, 2010.
Sec. 525. (1) Except as otherwise provided for in this
section, the following license fees shall be paid at the time of
filing applications or as otherwise provided in this act and are
subject to allocation under section 543:
(a) Manufacturers of spirits, but not including makers,
blenders, and rectifiers of wines containing 21% or less alcohol by
volume, $1,000.00.
(b) Manufacturers of beer, $50.00 per 1,000 barrels, or
fraction of a barrel, production annually with a maximum fee of
$1,000.00, and in addition $50.00 for each motor vehicle used in
delivery to retail licensees. A fee increase does not apply to a
manufacturer of less than 15,000 barrels production per year.
(c) Outstate seller of beer, delivering or selling beer in
this state, $1,000.00.
(d) Wine makers, blenders, and rectifiers of wine, including
makers, blenders, and rectifiers of wines containing 21% or less
alcohol by volume, $100.00. The small wine maker license fee is
$25.00.
(e) Outstate seller of wine, delivering or selling wine in
this state, $300.00.
(f) Outstate seller of mixed spirit drink, delivering or
selling mixed spirit drink in this state, $300.00.
(g) Dining cars or other railroad or Pullman cars selling
alcoholic liquor, $100.00 per train.
(h) Wholesale vendors other than manufacturers of beer,
$300.00 for the first motor vehicle used in delivery to retail
licensees and $50.00 for each additional motor vehicle used in
delivery to retail licensees.
(i) Watercraft, licensed to carry passengers, selling
alcoholic liquor, a minimum fee of $100.00 and a maximum fee of
$500.00 per year computed on the basis of $1.00 per person per
passenger capacity.
(j) Specially designated merchants, for selling beer or wine
for consumption off the premises only but not at wholesale, $100.00
for each location regardless of the fact that the location may be a
part of a system or chain of merchandising.
(k) Specially designated distributors licensed by the
commission to distribute spirits and mixed spirit drink in the
original package for the commission for consumption off the
premises, $150.00 per year, and an additional fee of $3.00 for each
$1,000.00 or major fraction of that amount in excess of $25,000.00
of the total retail value of merchandise purchased under each
license from the commission during the previous calendar year.
(l) Hotels of class A selling beer and wine, a minimum fee of
$250.00 and, for all bedrooms in excess of 20, $1.00 for each
additional bedroom, but not more than $500.00.
(m) Hotels of class B selling beer, wine, mixed spirit drink,
and spirits, a minimum fee of $600.00 and, for all bedrooms in
excess of 20, $3.00 for each additional bedroom. If a hotel of
class B sells beer, wine, mixed spirit drink, and spirits in more
than 1 public bar, the fee entitles the hotel to sell in only 1
public bar, other than a bedroom, and a license shall be secured
for each additional public bar, other than a bedroom, the fee for
which is $350.00.
(n) Taverns, selling beer and wine, $250.00.
(o) Class C license selling beer, wine, mixed spirit drink,
and spirits, $600.00. If a class C licensee sells beer, wine, mixed
spirit drink, and spirits in more than 1 bar, a fee of $350.00
shall be paid for each additional bar. In municipally owned or
supported facilities in which nonprofit organizations operate
concession stands, a fee of $100.00 shall be paid for each
additional bar.
(p) Clubs selling beer, wine, mixed spirit drink, and spirits,
$300.00 for clubs having 150 or fewer duly accredited members and
$1.00 for each additional member. The membership list for the
purpose only of determining the license fees to be paid under this
subdivision shall be the accredited list of members as determined
by a sworn affidavit 30 days before the closing of the license
year. This subdivision does not prevent the commission from
checking a membership list and making its own determination from
the list or otherwise. The list of members and additional members
is not required of a club paying the maximum fee. The maximum fee
shall not exceed $750.00 for any 1 club.
(q) Warehousers, to be fixed by the commission with a minimum
fee for each warehouse of $50.00.
(r) Special licenses, a fee of $50.00 per day, except that the
fee for that license or permit issued to any bona fide nonprofit
association, duly organized and in continuous existence for 1 year
before the filing of its application, is $25.00. Not more than 12
special licenses may be granted to any organization, including an
auxiliary of the organization, in a calendar year.
(s) Airlines licensed to carry passengers in this state that
sell, offer for sale, provide, or transport alcoholic liquor,
$600.00.
(t) Brandy manufacturer, $100.00.
(u) Mixed spirit drink manufacturer, $100.00.
(v) Brewpub, $100.00.
(w) Class G-1, $1,000.00.
(x) Class G-2, $500.00.
(y) Motorsports event license, $250.00.
(z) Small distiller, $100.00.
(aa) Wine auction license, $50,000.00.
(bb) Nonpublic continuing care retirement center license,
$600.00.
(2) The fees provided in this act for the various types of
licenses shall not be prorated for a portion of the effective
period of the license. Notwithstanding subsection (1), the initial
license fee for any licenses issued under section 531(3) and (4) is
$20,000.00. The renewal license fee shall be the amount described
in subsection (1). However, the commission shall not impose the
$20,000.00 initial license fee for applicants whose license
eligibility was already approved on July 20, 2005.
(3) Beginning July 23, 2004, and except in the case of any
resort or resort economic development license issued under section
531(2), (3), (4), and (5) and a license issued under section 521,
the commission shall issue an initial or renewal license not later
than 90 days after the applicant files a completed application.
Receipt of the application is considered the date the application
is received by any agency or department of the state of Michigan.
If the application is considered incomplete by the commission, the
commission shall notify the applicant in writing, or make the
information electronically available, within 30 days after receipt
of the incomplete application, describing the deficiency and
requesting the additional information. The determination of the
completeness of an application does not operate as an approval of
the application for the license and does not confer eligibility
upon an applicant determined otherwise ineligible for issuance of a
license. The 90-day period is tolled under any of the following
circumstances:
(a) Notice sent by the commission of a deficiency in the
application until the date all of the requested information is
received by the commission.
(b) The time period during which actions required by a party
other than the applicant or the commission are completed that
include, but are not limited to, completion of construction or
renovation of the licensed premises; mandated inspections by the
commission or by any state, local, or federal agency; approval by
the legislative body of a local unit of government; criminal
history or criminal record checks; financial or court record
checks; or other actions mandated by this act or rule or as
otherwise mandated by law or local ordinance.
(4) If the commission fails to issue or deny a license within
the time required by this section, the commission shall return the
license fee and shall reduce the license fee for the applicant's
next renewal application, if any, by 15%. The failure to issue a
license within the time required under this section does not allow
the commission to otherwise delay the processing of the
application, and that application, upon completion, shall be placed
in sequence with other completed applications received at that same
time. The commission shall not discriminate against an applicant in
the processing of the application based upon the fact that the
license fee was refunded or discounted under this subsection.
(5) Beginning October 1, 2005, the chair of the commission
shall submit a report by December 1 of each year to the standing
committees and appropriations subcommittees of the senate and house
of representatives concerned with liquor license issues. The chair
of the commission shall include all of the following information in
the report concerning the preceding fiscal year:
(a) The number of initial and renewal applications the
commission received and completed within the 90-day time period
described in subsection (3).
(b) The number of applications denied.
(c) The number of applicants not issued a license within the
90-day time period and the amount of money returned to licensees
under subsection (4).
(6) As used in this section, "completed application" means an
application complete on its face and submitted with any applicable
licensing fees as well as any other information, records, approval,
security, or similar item required by law or rule from a local unit
of government, a federal agency, or a private entity but not from
another department or agency of the state of Michigan.
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.
(c) Clubs where beer, wine, mixed spirit drink, and spirits
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.
(q) Nonpublic continuing care retirement center license, where
beer, wine, mixed spirit drink, mixed wine drink, and spirits may
be sold at retail and served on the licensed premises to residents
and bona fide guests accompanying the resident for consumption only
on the licensed premises.
(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 on the premises where the wine maker is licensed to
manufacture wine. The wine maker may charge for the samples.
(4) (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.
(c) The wine tasting locations shall be considered licensed
premises, and the wine maker may include a charge for the samples.
(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 takes place during
the legal hours for the sale of
alcoholic liquor by the licensee.
(e) The premises and the licensee comply with and are subject
to all applicable rules promulgated by the commission.
(5) Notwithstanding section 1025(1), an outstate seller of
beer, an outstate seller of wine, a wine maker, a brewer, a micro
brewer, or a specially designated merchant, or an agent of any of
those persons, who does not hold a license allowing the consumption
of alcoholic liquor on the premises at the same licensed address,
may conduct beer and wine tastings on the licensed premises of a
specially designated merchant under the following conditions:
(a) A customer is not charged for the tasting of beer or wine.
(b) The tasting samples provided to a customer do not exceed 3
servings at up to 3 ounces per serving of beer or 3 servings at up
to 2 ounces of wine. A customer shall not be provided more than a
total of 3 samples of beer or wine within a 24-hour period per
licensed premises.
(c) The specially designated merchant, outstate seller of
beer, outstate seller of wine, wine maker, micro brewer, or brewer
has first obtained an annual beer and wine tasting permit approved
by the commission.
(d) The commission is notified, in writing, a minimum of 10
working days prior to the event, regarding the date, time, and
location of the event.
(6) During the time a beer or wine tasting is conducted under
subsection (5), specially designated merchant, outstate seller of
beer, outstate seller of wine, wine maker, micro brewer, or brewer,
or its agent or employee who has successfully completed a server
training program as provided for in section 906, shall devote full
time to the beer and wine tasting activity and shall perform no
other duties, including the sale of alcoholic liquor for
consumption off the licensed premises. Beer and wine used for the
tasting must come from the specially designated merchant's
inventory, and all open bottles must be removed from the premises
on the same business day or resealed and stored in a locked,
separate storage compartment on the licensed premises when not
being used for the activities allowed by the permit.
(7) A wholesaler is prohibited from conducting or
participating in beer and wine tastings allowed by the permit
created in subsection (5).
(8) A beer and wine tasting under subsection (5) may only be
conducted during the legal hours for sale of alcoholic liquor by
(9) 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.
(c) The brandy and spirits tasting locations shall be
considered licensed premises.
(d) Brandy and spirits tasting shall take place during the
legal hours for selling alcoholic liquor by the licensee.
(e) The premises and the license comply with and are subject
to all applicable rules promulgated by the commission.
Sec. 543. (1) Quarterly, upon recommendation of the
commission, the state shall pay pursuant to appropriation in the
manner prescribed by law to the city, village, or township in which
a full-time police department or full-time ordinance enforcement
department is maintained or, if a police department or full-time
ordinance enforcement department is not maintained, to the county,
to be credited to the sheriff's department of the county in which
the licensed premises are located, 55% of the amount of the
proceeds of the retailers' license fees and license renewal fees
collected in that jurisdiction, for the specific purpose of
enforcing this act and the rules promulgated under this act. Forty-
one and one-half percent of the amount of the proceeds of
retailers' license and license renewal fees collected shall be
deposited in a special fund to be annually appropriated to the
commission for carrying out the licensing and enforcement
provisions of this act. Any unencumbered or uncommitted money in
the special fund shall revert to the general fund of the state 12
months after the end of each fiscal year in which the funds were
collected. The legislature shall appropriate 3-1/2% of the amount
of the proceeds of retailers' license and license renewal fees
collected to be credited to a special fund in the state treasury
for the purposes of promoting and sustaining programs for the
prevention, rehabilitation, care, and treatment of alcoholics. This
subsection does not apply to retail license fees collected for
railroad or Pullman cars, watercraft, aircraft, or wine auctions or
to the transfer fees provided in section 529.
(2) All license and license renewal fees, other than retail
license and license renewal fees, shall be credited to the grape
and wine industry council created in section 303, to be used as
provided in section 303. Money credited to the grape and wine
industry council shall not revert to the state general fund at the
close of the fiscal year, but shall remain in the account to which
it was credited to be used as provided in section 303.
(3) All retail license fees collected for railroad or Pullman
cars, watercraft, or aircraft and the transfer fees provided in
section 529 shall be deposited in the special fund created in
subsection (1) for carrying out the licensing and enforcement
provisions of this act.
(4) The license fee enhancement imposed for licenses issued
under section 531(3) and (4) shall be deposited into a special fund
to be annually appropriated to the commission for enforcement and
other related projects determined appropriate by the commission.
The money representing that amount of the license fees for
identical licenses not issued under section 531(3) and (4) shall be
allocated and appropriated under subsection (1).
(5) The license fee imposed on direct shipper licenses and any
violation fines imposed by the commission shall be deposited into
the direct shipper enforcement revolving fund. The direct shipper
enforcement revolving fund is created within the state treasury.
The state treasurer shall direct the investment of the fund. The
state treasurer shall credit to the fund interest and earnings from
fund investments. Money in the fund at the close of the fiscal year
shall remain in the fund and shall not lapse to the general fund.
The commission shall expend money from the fund, upon
appropriation, only for enforcement of the provisions of section
203 and related projects.
(6) One hundred percent of the wine auction license fee
imposed in section 525(1)(aa) shall be deposited into the general
fund.
(7) As used in this section, "license fee enhancement" means
the money representing the difference between the license fee
imposed for a license under section 525(1) and the additional
amount imposed for resort and resort economic development licenses
under section 525(2).
(8) Notwithstanding any other provision of this section, the
additional $160.00 license fee imposed upon any licensee selling
alcoholic liquor between the hours of 7 a.m. on Sunday and 12 noon
on Sunday is allocated to the general fund.
Sec. 545. (1) As used in this act, "nonpublic continuing care
retirement center" means a residential community that, as
determined by the commission, meets both of the following
conditions:
(a) Provides full-time residential housing predominantly for
individuals over the age of 62.
(b) Is registered as a facility under the living care
disclosure act, 1976 PA 440, MCL 554.801 to 554.844.
(2) The commission, upon submission of a completed
application, shall grant a nonpublic continuing care retirement
center license to an applicant complying with this section. The
total number of licenses issued under this section shall not exceed
20. If the holder of a license issued under this section goes out
of business, the license shall be surrendered to the commission.
The commission may allow the transfer of such a license to a new
business owner upon transfer of the owner's interest in the
business.
(3) The nonpublic continuing care retirement center license
allows the licensee to sell at retail and serve on the licensed
premises beer, wine, mixed spirit drink, mixed wine drink, and
spirits, for consumption by a resident or the bona fide guests
accompanying the resident, only on the licensed premises.
Sec. 603. (1) Except as provided in subsections (6)
to (12)
(14) 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) (14) 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) (14) 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) (14) 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
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.
(8) This section does not prohibit a supplier from having any
interest, directly or indirectly, in any other supplier.
(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.
(10) A manufacturer is prohibited from having any interest,
directly or indirectly, in a wholesaler.
(11) A wine maker is prohibited from collectively delivering
wine, with any other wine maker, to retail licensees.
(12) Except in the case of a licensed warehouser, all
licensees in this state shall be separated into 3 distinct and
independent tiers composed of the following:
(a) Supplier tier, comprising manufacturers and suppliers.
(b) Wholesaler tier, comprising wholesalers.
(c) Retailer tier, comprising retailers.
(13) Beginning April 30, 2011, the commission shall not allow
any of the following:
(a) A retailer to hold, directly or indirectly, a license in
the wholesaler or supplier tier.
(b) A wholesaler to hold, directly or indirectly, a license in
the retailer or supplier tier.
(c) A supplier to hold, directly or indirectly, a license in
the wholesaler or retailer tier.
(14) Subsection (13) shall not be interpreted in a manner that
would prohibit a class C, tavern, class A hotel, or class B hotel
licensee from receiving a brewpub license or that would prohibit a
micro brewer or brewer producing less than 200,000 barrels per year
from having an on-site restaurant.
(15) (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,
distiller, small distiller, brandy manufacturer, and mixed
spirit drink manufacturer, direct shipper, or a person licensed by
the commission to perform substantially similar functions.
(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 or a
person licensed by the commission to perform substantially similar
functions but shall not include a master distributor.
Sec. 1025. (1) A vendor shall not give away any alcoholic
liquor of any kind or description at any time in connection with
his or her business, except manufacturers for consumption on the
premises only.
(2) Subsection (1) does not prevent any of the following:
(a) A vendor of spirits, brewer, mixed spirit drink
manufacturer, wine maker, 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) A person from conducting of any sampling or tasting
authorized by section 537 or rule of the commission.
(c) A class A or B hotel designed to attract and accommodate
tourists and visitors in a resort area from giving away alcoholic
liquor to an invitee or guest in connection with a business event
or as a part of a room special or promotion for overnight
accommodations.
(3) A vendor shall not sell an alcoholic liquor to a person in
an intoxicated condition.
(4) Evidence of any breathalyzer or blood alcohol test results
obtained in a licensed establishment, or on property adjacent to
the licensed premises and under the control or ownership of the
licensee, shall not be admissible to prove a violation of this
section, section 707(1), (2), (3), or (4), or section 801(2). To
establish a violation of this section, section 707(1), (2), (3), or
(4), or section 801(2), the person's intoxicated condition at the
time of the sale or consumption of alcohol must be proven by direct
observation by law enforcement or commission enforcement personnel
or through other admissible witness statements or corroborating
evidence obtained as part of the standard investigation other than
breathalyzer or blood alcohol test results.
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) Notwithstanding section 1025(1), a retailer licensed by
the commission for consumption on the premises may allow customers
to sample beer, wine, and distilled spirits so long as the retailer
does not charge for the samples provided to customers. Sample
serving sizes shall not exceed 3 ounces for beer, 2 ounces for
wine, and 1/2 ounce for distilled spirits. A customer shall not be
provided more than 2 samples within a 24-hour period per licensed
premises.
(3) (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.
(c) A small distiller licensee from giving a sampling or
tasting of brands it manufactures on the licensed premises or an
off-site tasting facility operated by that small distiller.
(4) (3)
A vendor of spirits or a
manufacturer may conduct a
consumer sampling event on the premises of a holder of a specially
designated distributor license upon submission of a completed
application to the commission.
(5) (4)
The holder of the consumer sampling
event license
shall comply with the following:
(a) The commission must be notified in writing a minimum of 10
working days prior to the event with the date, time, and location
of the event.
(b) The consumer sampling event is limited to 3 events per
vendor of spirits or manufacturer per specially designated
distributor license per month.
(c) The vendor of spirits or manufacturer conducting the
consumer sampling event must have a licensed representative present
at the specially designated distributor's establishment.
(d) Licensed representatives or an authorized representative
may distribute merchandise, not to exceed $100.00 in value, to
consumers 21 years of age or older during the event.
(e) Participating specially designated distributor licensees
do not receive any fee or other valuable consideration for
participating in the event.
(f) Each consumer is limited to 3 samples, which total no more
than 1/3 ounce of distilled spirits per serving.
(g) The consumer is not charged for and does not purchase any
sample.
(h) The alcoholic liquor used in the consumer sampling event
is provided by the vendor of spirits or manufacturer, and purchased
at the minimum retail selling price fixed by the commission from
the specially designated distributor on whose premises the event is
located. The vendor of spirits or manufacturer shall remove any
unfinished product from the premises at which the event is held
upon completion of the event.
(i) A consumer sampling event shall not be allowed when the
sale of alcoholic liquor is otherwise prohibited on the premises at
which the event is conducted.
(j) Samples are not to be offered to, or allowed to be
consumed by, any person under the legal age for consuming alcoholic
liquor.
(k) A consumer sampling event may be advertised in any type of
media and the advertisements may include the date, time, location,
and other information regarding the event.
(l) The participating vendor of spirits or manufacturer and
specially designated distributor licensees must comply with this
act and commission rules.
(m) The vendor of spirits or manufacturer must demonstrate
that the individual actually conducting the sampling has
successfully completed the server training program in the manner
provided for in section 906 and rules promulgated by the
commission.
(6) (5)
Violation of this subsection section subjects
the
vendor of spirits or manufacturer to the sanctions and penalties as
provided for under this act.
(7) (6)
The commission, by rule or issuance
of an order, may
further define eligibility for licensure and processes for
conducting consumer sampling events.
(8) (7)
A sampling or tasting of any
alcoholic liquor in a
home or domicile for other than a commercial purpose is not subject
to this section.
(9) (8)
For purposes of this section,
"commercial purpose"
means a purpose for which monetary gain or other remuneration could
reasonably be expected.
Sec.
1111. (1) The Except as
otherwise provided for in
subsection
(6), the sale of beer and wine between
the hours of 2
a.m.
and 12 midnight 7 a.m. on Sunday and
2 a.m. on Monday is
allowed, but may be prohibited, in any county, city, village, or
township under the following circumstances:
(a) By majority vote of the legislative body voting on the
resolution to make such an authorization. Failure of the
legislative body to act on such an authorization is grounds for the
petitioning of the county, city, village, or township for
submission of the question to the voters of the county, city,
village, or township under subsection (2).
(b) By submission of a petition under subsection (2) by a
majority vote of the electors voting at a regular state election.
(2) Not more often than once in every 4 years, upon the filing
of a petition with the county, city, village, or township clerk, by
a majority of the electors voting at a regular state election
within that county, village, city, or township, as applicable,
requesting the submission of the question of the Sunday sale of
beer and wine, the clerk shall submit that question to the electors
of the county, city, village, or township at the next regular state
election held in that county, city, village, or township. A
petition filed under this subsection shall be filed not less than
60 days before the regular state election. A ballot question under
this subsection shall not be submitted more often than once in any
4-year period.
(3) (2)
In the case of a county, city, or
township, the
petition shall be signed by a number of the registered and
qualified electors of the county, city, or township that is not
less than 35% of the total number of votes cast for all candidates
for the office of secretary of state in that county, city, or
township at the last general election held for that purpose and, in
the case of a village the petition shall be signed by a number of
the registered and qualified electors of the village that is less
than 35% of the total number of votes cast for all candidates for
the office of president of the village at the last village election
held for that purpose.
(4) (3)
The question of the Sunday sale of
beer and wine shall
be submitted by ballot in substantially the following form:
"Shall the sale of beer and wine within (the county, city,
village,
or township as the case may be) between the hours of 2
a.m.
and 12 midnight 7 a.m. on Sunday and
2 a.m. on Monday be
prohibited?
Yes .........
No .........".
(5) (4)
All votes on the question submitted
to the electors
under this section shall be taken, counted, and canvassed in the
same manner as votes cast in county, city, village, or township
election, as applicable, are taken, counted, and canvassed. Ballots
shall be furnished by the election commission or similar body of
the respective county, city, village, or township. If a majority of
the electors voting at an election conducted under this section
vote in favor of the question submitted, the sale of beer and wine
within that county, city, village, or township between the hours of
2
a.m. and 12 midnight 7 a.m. on Sunday and
2 a.m. on Monday is
prohibited.
(6) The sale of beer and wine in any county between the hours
of 7 a.m. on Sunday and 2 a.m. on Monday shall not be prohibited
under the provisions of subsections (1) through (5) as applied to a
motorsports entertainment complex located in more than 1 county if
a resolution or referendum under this section results in the
question's failing to pass in 1 county but passing in another.
Under such circumstances, the commission shall determine the issue
of the sale of beer and wine in the motorsports entertainment
complex in those counties between the hours of 7 a.m. on Sunday and
2 a.m. on Monday. As used in this section, "motorsports
entertainment complex" means a closed-course motorsports facility,
and its ancillary grounds and facilities, that satisfies all of the
following:
(a) Has at least 70,000 fixed seats for race patrons.
(b) Has at least 4 scheduled days of motorsports events each
calendar year.
(c) Serves food and beverages at the motorsports entertainment
complex during motorsports events each calendar year through
concession outlets, which are staffed by individuals who represent
or are members of 1 or more nonprofit civic or charitable
organizations that directly benefit from the concession outlets'
sales.
(d) Engages in tourism promotion.
(e) Has permanent exhibitions of motorsports history, events,
or vehicles within the motorsports entertainment complex.
Sec. 1113. (1) Except as provided in subsection (2), (3), or
(5) and subject to subsection (6), a licensee enumerated under
section
525 or any other person shall not may sell at retail, give
away,
or furnish, and a person shall
not knowingly and willfully
may
buy, spirits or mixed spirit drink
between the hours of 2 a.m.
and
12 midnight 7 a.m. on Sunday
and 2 a.m. on Monday. If January 1
falls
on Sunday, the hours may be extended to 4 a.m.
(2)
If Unless the legislative body of a county has authorized
prohibited the sale of spirits and mixed spirit drink for
consumption on the premises on Sunday, by resolution approved by a
majority of the legislative body voting on that resolution, the
spirits
and mixed spirit drink may be sold after 12 noon 7 a.m. on
Sunday, EST, in an establishment licensed under
this act in which
the gross receipts derived from the sale of food and other goods
and services exceed 50% of the total gross receipts. With respect
to an action taken by the legislative body or if the legislative
body fails to act, a petition may be filed with the county clerk
requesting the submission of the question regarding the prohibition
of the sale of spirits and mixed spirit drink for consumption on
the premises in addition to beer and wine on Sunday. The petition
shall be signed by a number of the registered and qualified
electors of the county that is not less than 8% of the total number
of votes cast for all candidates for the office of secretary of
state in the county at the last general election held for that
purpose. The question shall not be submitted to the electors of a
county more than once every 4 years. The county clerk shall submit
the question at the next regular state election held in the county
if the petitions are filed not less than 60 days before the
election. The question regarding the prohibition of the sale of
spirits and mixed spirit drink for consumption on the premises, in
addition to beer and wine, on Sunday shall be submitted by ballot
in substantially the following form:
"Shall the sale of spirits and mixed spirit drink for
consumption
on the premises be permitted prohibited
on Sunday in an
establishment licensed under the Michigan liquor control code of
1998 in which the gross receipts derived from the sale of food or
other goods and services exceed 50% of the total gross receipts
within the county of .......... under the provisions of the law
governing the sale of spirits and mixed spirit drink for
consumption?
Yes ..........
No ........... ".
(3)
If Unless the legislative body of a county has authorized
prohibited the sale of spirits and mixed spirit drink for
consumption off the premises on Sunday by resolution approved by a
majority of the legislative body voting on the resolution, spirits
and
mixed spirit drink may be sold after 12 noon 7 a.m.,
EST, in a
retail establishment licensed under this act. With respect to an
action taken by the legislative body or if the legislative body
fails to act, a petition may be filed with the county clerk
requesting the submission of the question regarding the prohibition
of the sale of spirits and mixed spirit drink for consumption off
the premises, in addition to beer and wine, in a retail
establishment licensed under this act on Sunday. The petition shall
be signed by a number of the registered and qualified electors of
the county that is not less than 8% of the total number of votes
cast for all candidates for the office of secretary of state in the
county at the last general election shall not be held for that
purpose. The question submitted to the electors of a county more
than once every 4 years. The county clerk shall submit the question
at the next regular state election held in the county if the
petitions are filed not less than 60 days before the election. The
question regarding the prohibition of the sale of spirits and mixed
spirit drink for consumption off the premises, in addition to beer
and wine, in a retail establishment licensed under this act on
Sunday shall be submitted by ballot in substantially the following
form:
"Shall the sale of spirits and mixed spirit drink for
consumption
off the premises be permitted prohibited
on Sunday in a
retail establishment licensed under the Michigan liquor control
code of 1998 within the county of .......... under the provisions
of the law governing the sale of spirits and mixed spirit drink for
consumption?
Yes ..........
No ...........".
(4) Votes on a question submitted under this section shall be
taken, counted, and canvassed in the same manner as votes cast in
county elections are taken, counted, and canvassed. A ballot shall
be furnished by the election commission or similar body of the
county. If a majority of the electors voting at an election vote in
favor of the proposal, the sale of spirits and mixed spirit drink
may
be sold prohibited in the county under this act for consumption
on the premises or by a retail establishment for consumption off
the premises, in addition to beer and wine, on Sunday. The sale
shall not be permitted in a city, village, or township in which the
sale of spirits and mixed spirit drink is prohibited under this
act. A violation of this section is a misdemeanor. This section
does not apply to spirits and mixed spirit drink served to a bona
fide guest in the residence of a person or sold or furnished for
medicinal purposes as provided for in this act.
(5) A licensee enumerated under section 525 or any other
person shall not sell at retail, and a person shall not knowingly
and
willfully buy, alcoholic liquor between the hours of 9 p.m. on
December
24 and 7 a.m. on December 26. 11:59
p.m. on December 24
and 12 noon on December 25. If December 26 falls on Sunday, the
hours of closing shall be determined pursuant to this act. The
legislative body of a city, village, or township, by resolution or
ordinance, may prohibit the sale of alcoholic liquor on Sunday or a
legal holiday, primary election day, general election day, or
municipal election day.
(6) The sale of spirits or mixed spirit drink in any county
between the hours of 7 a.m. on Sunday and 2 a.m. on Monday shall
not be prohibited under the provisions of subsections (1) through
(5) as applied to a motorsports entertainment complex located in
more than 1 county if a resolution or referendum under this section
results in the question's failing to pass in 1 county but passing
in another. Under such circumstances, the commission shall
determine the issue of the sale of spirits and mixed spirit drink
in the motorsports entertainment complex in those counties between
the hours of 7 a.m. on Sunday and 2 a.m. on Monday. As used in this
section, "motorsports entertainment complex" means a closed-course
motorsports facility, and its ancillary grounds and facilities,
that satisfies all of the following:
(a) Has at least 70,000 fixed seats for race patrons.
(b) Has at least 4 scheduled days of motorsports events each
calendar year.
(c) Serves food and beverages at the motorsports entertainment
complex during motorsports events each calendar year through
concession outlets, which are staffed by individuals who represent
or are members of 1 or more nonprofit civic or charitable
organizations that directly benefit from the concession outlets'
sales.
(d) Engages in tourism promotion.
(e) Has permanent exhibitions of motorsports history, events,
or vehicles within the motorsports entertainment complex.
Sec. 1114. (1) Notwithstanding R 436.1403 and R 436.1503 of
the Michigan administrative code and except as otherwise provided
under this act or rule of the commission, an on-premises and an
off-premises licensee shall not sell, give away, or furnish
alcoholic
liquor between the hours of 2 a.m. and 7 a.m. on any day.
and
shall not sell, give away, or furnish alcoholic liquor between
the
hours of 2 a.m. and 12 noon, EST, on Sunday. An on-premises and
an
off-premises licensee shall not sell, give away, or furnish
spirits
between the hours of 2 a.m. and 12 midnight on Sunday,
unless
issued a Sunday sales permit by the commission that allows
the
licensee to sell spirits on Sunday between the hours of 12
noon,
EST, and 12 midnight.
(2)
For purposes of R 436.1403 and R 436.1503 of the Michigan
administrative
code, 12 noon on Sunday is considered 12 noon on
Sunday,
EST, for any licensee located in the central time zone.
Subsection (1) does not prevent any local governmental unit from
prohibiting the sale of beer and wine on Sundays under section 1111
and does not prevent any local governmental unit from prohibiting
the sale of spirits and mixed spirit drink on Sundays under section
1113. A licensee selling alcoholic liquor between 7 a.m. and noon
on Sunday shall obtain a permit and pay to the commission an annual
fee of $160.00.
(3) A reference to the time of day under this act or a rule of
the commission includes daylight savings time, when observed.
Sec. 1115. (1) A licensee who elects to sell spirits or mixed
spirit drink between the hours of 12 noon on Sunday and 2 a.m. on
Monday under section 1113 shall not do so until he or she first
obtains a permit and pays to the commission an additional fee in
the amount of 15% of the fee charged for the issuance of his or her
license.
(2) The revenue received from subsection (1) for the sale of
spirits or mixed spirit drink between 12 noon on Sunday and 2 a.m.
on Monday shall be deposited with the state treasurer in a special
fund to be used only by the department of public health in programs
for the treatment of alcoholics. Any other revenue resulting from
the additional $160.00 license fee as described in section 1114 for
sales of alcoholic liquor permitted under sections 1111 and 1113
shall be deposited into the general fund.
Enacting section 1. Sections 1111, 1113, 1114, and 1115 of the
Michigan liquor control code of 1998, 1998 PA 58, MCL 436.2111,
436.2113, 436.2114, and 436.2115, as amended by this amendatory
act, take effect December 1, 2010.
