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.