HOUSE BILL No. 5426

March 25, 2014, Introduced by Reps. Hovey-Wright, Daley, Lauwers, Kowall, Graves, Potvin, Bumstead, Yonker, Jacobsen, Denby, Pscholka, Haveman, Haines, Slavens, Haugh, LaFontaine, Pettalia, Rogers, Singh, Irwin, Lipton, Abed, Knezek, Darany, Roberts, Lamonte, Cochran, LaVoy, Geiss, Segal, Faris, Lane, Brinks, Schor, Kivela, Dianda, Driskell, Switalski, Hobbs, Dillon, Brown, Kosowski, Lund, Kelly, Victory, Pagel and MacGregor 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 415 (MCL 436.1415), as added by 2013 PA 100.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 415. (1) Subject to the limitations provided under this

 

section, the commission may issue a farmer's market permit to a

 

qualified small wine maker or a micro brewer. Regardless of the

 

location of the qualified small wine maker or micro brewer, the

 

commission shall only issue 1 farmer's market permit for a

 

qualified small wine maker and 1 farmer's market permit for a micro

 

brewer in a county where the farmer's market is located for each

 

1,500 of population or fraction of 1,500 in that county as

 

determined by the last federal decennial census, by a special

 

census pursuant to section 6 of the home rule city act, 1909 PA

 


279, MCL 117.6, or section 7 of the Glenn Steil state revenue

 

sharing act of 1971, 1971 PA 140, MCL 141.907, or by the latest

 

census and corrections published by the United States department of

 

commerce, bureau of the census, whichever is later. The holder of a

 

farmer's market permit may conduct tastings and sell, at retail at

 

a farmer's market, the wine produced by that qualified small wine

 

maker or the beer produced by that micro brewer.

 

     (2) The commission shall charge a fee for a farmer's market

 

permit of $25.00 for each farmer's market location. A farmer's

 

market permit issued under this section is nontransferable.

 

Notwithstanding the quota provision under subsection (1), the

 

commission shall not limit the number of permits a qualified small

 

wine maker or a micro brewer obtains under this section, but an

 

application for a farmer's market permit shall only contain up to 5

 

separate locations at 1 time. Section 503 does not apply to the

 

application or issuance of a permit under this section or to the

 

location of a farmer's market where the holder of a farmer's market

 

permit intends to participate under this section.

 

     (3) The commission shall not issue a farmer's market permit

 

under this section unless the applicant provides documentation, in

 

a manner prescribed by the commission, that the local police agency

 

where the farmer's market is located and the farmer's market

 

manager at that location have approved the proposed activity.

 

     (4) The tastings and sales performed under a farmer's market

 

permit shall be limited to an exclusive area that is well defined

 

and clearly marked, in a manner prescribed by the commission, that

 

is under the control of the holder of the farmer's market permit,

 


as verified by the farmer's market manager.

 

     (5) The tastings and sales performed under a farmer's market

 

permit shall be conducted by employees of the holder of the

 

farmer's market permit who have completed a server training program

 

as provided for in section 906 and the rules promulgated by the

 

commission.

 

     (6) The wine or beer sold or used for tastings shall be

 

furnished from the stock of the holder of the farmer's market

 

permit and removed from the farmer's market premises immediately

 

after the farmer's market has concluded.

 

     (7) Tasting samples provided to a customer shall not exceed 3

 

servings of not more than 2 ounces of wine or 3 ounces of beer in a

 

24-hour period of time.

 

     (8) The commission shall develop an application for an annual

 

farmer's market permit allowing for licensed activities under this

 

section. A farmer's market manager shall verify on the application

 

that the location listed on the application qualifies as a farmer's

 

market under this section.

 

     (9) A wholesaler shall not conduct or participate in any event

 

allowed by this section.

 

     (10) A holder of a farmer's market permit is considered a

 

manufacturer as provided under section 603(15)(a).

 

     (11) Two years after the enactment date of the amendatory act

 

that added this section, By July 2, 2015, the commission shall

 

submit a report to the standing committees of the senate and house

 

of representatives concerned with issues involving liquor control

 

and the house and senate fiscal agencies assessing the continued

 


issuance of farmer's market permits to qualified small wine makers

 

and micro brewers. The report shall include, at a minimum, all of

 

the following:

 

     (a) The number of applications received each year for a

 

farmer's market permit.

 

     (b) The number of farmer's market permit applications approved

 

each year.

 

     (c) The number of farmer's market permit applications approved

 

in each county.

 

     (12) As used in this section:

 

     (a) "Farmer's market" means a group of farmers or their

 

designees or a variety of vendors, as determined by the farmer's

 

market manager or his or her designee, who assembles on a recurring

 

basis at a defined community sponsored or municipally sponsored

 

location for the purposes of selling, directly to a consumer, food

 

and products produced by those farmers or their representatives.

 

     (b) "Farmer's market manager" means the person responsible for

 

enforcing the market policy and for the daily operation and

 

management of the farmer's market.

 

     (c) "Farmer's market permit" means an annual permit issued as

 

part of an approved license to a qualified small wine maker or a

 

micro brewer allowing that person to conduct tastings and sell at

 

retail, for consumption off the licensed premises, at a farmer's

 

market, wine produced by the qualified small wine maker or beer

 

produced by the micro brewer.

 

     (d) "Qualified small wine maker" means a small wine maker, or

 

an out-of-state entity that is the substantial equivalent of a

 


small wine maker, that manufactures or bottles not more than 5,000

 

gallons of wine in 1 calendar year.

 

     Enacting section 1. This amendatory act does not take effect

 

unless Senate Bill No.____ or House Bill No. 5427 (request no.

 

05055'14 *) of the 97th Legislature is enacted into law.