Bill Text: MI SB0426 | 2013-2014 | 97th Legislature | Introduced

---

Bill Title: Liquor; beer; limitation of number of other locations a brewpub may have an interest in and the barrel threshold; increase. Amends sec. 603 of 1998 PA 58 (MCL 436.1603).

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2013-06-12 - Referred To Committee On Regulatory Reform [SB0426 Detail]

Download: Michigan-2013-SB0426-Introduced.html

---

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 426

 

 

June 12, 2013, Introduced by Senators HILDENBRAND and BIEDA 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 603 (MCL 436.1603), as amended by 2011 PA 298.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 603. (1) Except as provided in subsections (6) to (14)

 

and section 605, a supplier, warehouser, or wholesaler shall not

 

have any direct or indirect financial interest in the

 

establishment, maintenance, operation, or promotion of the business

 

of any other vendor.

 

     (2) Except as provided in subsections (6) to (14) and section

 

605, a supplier, warehouser, or wholesaler or a stockholder of a

 

supplier, warehouser, or wholesaler shall not have any direct or

 

indirect interest by ownership in fee, leasehold, mortgage, or

 

otherwise in the establishment, maintenance, operation, or

 

promotion of the business of any other vendor.

 

     (3) Except as provided in subsections (6) to (14) and section

 

605, a supplier, warehouser, or wholesaler shall not have any

 

direct or indirect interest 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 (14) and section

 

605, a person shall not buy the stocks of a supplier, warehouser,

 

or wholesaler and place the stock in any portfolio under an

 

arrangement, written trust agreement, or form of investment trust

 

agreement, 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 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 5 other brewpubs

 

if the combined production of all the locations in which the

 

brewpub has an interest does not exceed 5,000 18,000 barrels of

 

beer per calendar year.

 

     (8) This section does not prohibit a supplier from having any

 

direct or indirect interest in any other supplier.

 

     (9) The commission may approve the following under 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

 

24.136.

 

     (b) A brewer participating with 1 or more brewers in an

 

alternating proprietor operation in accordance with 27 CFR 25.52.

 

     (10) A manufacturer shall not have any direct or indirect

 

interest in a wholesaler.

 

     (11) A wine maker shall not collectively deliver 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 suppliers.

 

     (b) Wholesaler tier, comprising wholesalers.

 

     (c) Retailer tier, comprising retailers.

 

     (13) Except as otherwise provided in subsection (14),

 

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 from having an on-site restaurant.

 

     (15) 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, 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 does not include a master distributor.