SENATE BILL No. 1159

 

 

November 8, 2018, Introduced by Senator HUNE and referred to the Committee on Regulatory Reform.

 

 

     A bill to amend 1998 PA 58, entitled

 

"Michigan liquor control code of 1998,"

 

(MCL 436.1101 to 436.2303) by adding section 536.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 536. (1) Except as provided in section 105(13), the

 

commission shall allow a person to be licensed as more than 1 type

 

of manufacturer in this state.

 

     (2) A person that holds more than 1 type of manufacturing

 

license in this state shall meet all applicable provisions of this

 

act for each type of manufacturing license the person holds.

 

     (3) Subject to the requirements of this section and section

 

537, the commission may approve a licensed manufacturer to operate

 

1 or more tasting rooms.

 

     (4) Brewers and micro brewers shall not have more approved

 

tasting rooms than allowed in section 411.


     (5) A tasting room may be jointly operated by 2 or more

 

manufacturers if either of the following conditions is met:

 

     (a) The manufacturers are owned by the same person and their

 

manufacturing premises share the same address.

 

     (b) The manufacturers are not owned by the same person and

 

their manufacturing premises do not share the same address.

 

     (6) A tasting room must be treated as licensed premises for

 

purposes of this act.

 

     (7) An approved tasting room located on the manufacturing

 

premises of 1 or more manufacturers that are owned by the same

 

person and whose manufacturing premises share the same address must

 

comply with all of the following:

 

     (a) The commission must approve and issue an on-premises

 

tasting room permit to the manufacturer or manufacturers.

 

     (b) The manufacturer or manufacturers must pay the $100.00

 

initial permit fee, which is renewable annually.

 

     (c) The manufacturer or manufacturers must be approved for the

 

on-premises tasting room permit by the local legislative body in

 

which the proposed licensed premises will be located, except in a

 

city having a population of 600,000 or more.

 

     (d) The manufacturer or manufacturers must comply with the

 

server training requirements of section 906.

 

     (e) The manufacturer or manufacturers must file with the

 

commission proof of financial responsibility providing security for

 

liability under section 801(3) of not less than $50,000.00 as

 

provided in section 803.

 

     (f) A separate on-premises tasting room permit is not required


for each license type for a person licensed by the commission under

 

any combination of brewer, micro brewer, wine maker, small wine

 

maker, distiller, small distiller, brandy manufacturer, or mixed

 

spirit drink manufacturer licenses issued to that person at the

 

same manufacturing premises.

 

     (g) The commission shall not issue to a manufacturer or

 

manufacturers a Sunday sales permit, catering permit, dance permit,

 

entertainment permit, specific purpose permit, extended hours

 

permit, or authorization for outdoor service unless the commission

 

has issued an on-premises tasting room permit to the manufacturer

 

or manufacturers. A Sunday sales permit, catering permit, dance

 

permit, entertainment permit, specific purpose permit, extended

 

hours permit, or authorization for outdoor service may be issued

 

concurrently with the issuance of an on-premises tasting room

 

permit.

 

     (h) A brewer, micro brewer, wine maker, small wine maker,

 

distiller, small distiller, brandy manufacturer, or mixed spirit

 

drink manufacturer may own and operate a restaurant or allow

 

another person to operate a restaurant as part of the on-premises

 

tasting room on the manufacturing premises. If the brewer, micro

 

brewer, wine maker, small wine maker, distiller, small distiller,

 

brandy manufacturer, or mixed spirit drink manufacturer allows

 

another person to operate a restaurant on the manufacturing

 

premises, the brewer, micro brewer, wine maker, small wine maker,

 

distiller, small distiller, brandy manufacturer, or mixed spirit

 

drink manufacturer must hold a participation permit naming as a

 

participant the other person. The other person must meet the


requirements for a participant in R 436.1041(3) of the Michigan

 

Administrative Code.

 

     (8) Subject to subsection (10), an approved tasting room

 

located off the manufacturing premises of 1 or more manufacturers,

 

other than a brewer, micro brewer, or mixed spirit drink

 

manufacturer, that are owned by the same person and whose

 

manufacturing premises share the same address must comply with all

 

of the following:

 

     (a) The commission must approve and issue an off-premises

 

tasting room license to the manufacturer or manufacturers.

 

     (b) The manufacturer or manufacturers must pay the $100.00

 

initial license fee, which is renewable annually.

 

     (c) The manufacturer or manufacturers must be approved for the

 

off-premises tasting room license by the local legislative body in

 

which the proposed licensed premises will be located, except in a

 

city having a population of 600,000 or more.

 

     (d) The manufacturer or manufacturers must comply with the

 

server training requirements of section 906 at the off-premises

 

tasting room.

 

     (e) The manufacturer or manufacturers must file with the

 

commission proof of financial responsibility providing security for

 

liability under section 801(3) of not less than $50,000.00 as

 

provided in section 803 for the off-premises tasting room.

 

     (f) A separate off-premises tasting room license is not

 

required for each license type for a person licensed by the

 

commission under any combination of wine maker, small wine maker,

 

distiller, small distiller, or brandy manufacturer licenses issued


to that person at the same manufacturing premises.

 

     (g) The commission shall not issue to a manufacturer or

 

manufacturers a Sunday sales permit, catering permit, dance permit,

 

entertainment permit, specific purpose permit, extended hours

 

permit, authorization for outdoor service, or permission to

 

maintain a direct connection to unlicensed premises unless the

 

commission has issued an off-premises tasting room license to the

 

manufacturer or manufacturers. A Sunday sales permit, catering

 

permit, dance permit, entertainment permit, specific purpose

 

permit, extended hours permit, authorization for outdoor service,

 

or permission to maintain a direct connection to unlicensed

 

premises may be issued concurrently with the issuance of an off-

 

premises tasting room license.

 

     (9) Subject to subsection (10), an approved jointly operated

 

tasting room located off the manufacturing premises of 2 or more

 

manufacturers, other than a brewer, micro brewer, or mixed spirit

 

drink manufacturer, that are not owned by the same person and whose

 

manufacturing premises do not share the same address must comply

 

with all of the following:

 

     (a) The commission must approve and issue a joint off-premises

 

tasting room license to each of the manufacturers.

 

     (b) Each manufacturer must pay the $100.00 initial license

 

fee, which is renewable annually.

 

     (c) Each manufacturer must be approved for a joint off-

 

premises tasting room license by the local legislative body in

 

which the proposed licensed premises will be located, except in a

 

city having a population of 600,000 or more.


     (d) Each manufacturer must comply with the server training

 

requirements of section 906 at the jointly operated off-premises

 

tasting room.

 

     (e) Each manufacturer must file with the commission proof of

 

financial responsibility providing security for liability under

 

section 801(3) of not less than $50,000.00 as provided in section

 

803 for the jointly operated off-premises tasting room.

 

     (f) Any management agreements with an unlicensed manager of

 

the jointly operated off-premises tasting room must comply with the

 

requirements of R 436.1041 of the Michigan Administrative Code and

 

all the manufacturers must hold a participation permit naming as a

 

participant the unlicensed manager. The unlicensed manager must

 

meet the requirements for a participant in R 436.1041(3) of the

 

Michigan Administrative Code.

 

     (g) A Sunday sales permit, dance permit, entertainment permit,

 

specific purpose permit, extended hours permit, authorization for

 

outdoor service, or permission to maintain a direct connection to

 

unlicensed premises may be issued in conjunction with a jointly

 

operated off-premises tasting room. All manufacturers licensed at

 

the jointly operated off-premises tasting room location must hold

 

the same permits, permissions, and authorizations at the location.

 

     (h) Any violation of this act or the administrative rules by

 

any manufacturer on the premises of the jointly operated off-

 

premises tasting room is a violation by all the manufacturers

 

licensed at the jointly operated off-premises tasting room.

 

     (10) Approved off-premises tasting rooms or jointly operated

 

off-premises tasting rooms described in subsections (8) and (9)


must comply with all of the following:

 

     (a) A wine maker, small wine maker, distiller, small

 

distiller, or brandy manufacturer may have 1 of the following:

 

     (i) No more than 5 off-premises tasting room licenses issued

 

under subsection (8) where alcoholic liquor manufactured by the

 

wine maker, small wine maker, distiller, small distiller, or brandy

 

manufacturer may be sold by the glass for consumption on the

 

premises or samples may be sold or given away for consumption on

 

the premises as provided in subsections (14)(b) and (14)(c).

 

     (ii) No more than 5 joint off-premises tasting room licenses

 

issued under subsection (9) where alcoholic liquor manufactured by

 

the wine maker, small wine maker, distiller, small distiller, or

 

brandy manufacturer may be sold by the glass for consumption on the

 

premises or samples may be sold or given away for consumption on

 

the premises as provided in subsections (14)(b) and (14)(c).

 

     (iii) A combination of no more than 5 off-premises tasting

 

room licenses issued under subsection (8) and joint off-premises

 

tasting room licenses issued under subsection (9) where alcoholic

 

liquor manufactured by the wine maker, small wine maker, distiller,

 

small distiller, or brandy manufacturer may be sold by the glass

 

for consumption on the premises or samples may be sold or given

 

away for consumption on the premises as provided in subsections

 

(14)(b) and (14)(c).

 

     (iv) If a wine maker, small wine maker, distiller, small

 

distiller, or brandy manufacturer had more than 5 off-premises

 

tasting room licenses before October 1, 2018, no more than the

 

number of off-premises tasting room licenses that were issued


before October 1, 2018.

 

     (b) Notwithstanding the limitation in subsection (10)(a), a

 

wine maker, small wine maker, distiller, small distiller, or brandy

 

manufacturer may have any number of off-premises tasting room

 

licenses or joint off-premises tasting room licenses where

 

alcoholic liquor manufactured by the wine maker, small wine maker,

 

distiller, small distiller, or brandy manufacturer may only be sold

 

or given away as samples for consumption on the premises as

 

provided in subsection (14)(d).

 

     (c) A wine maker, small wine maker, distiller, small

 

distiller, or brandy manufacturer must designate at the time of

 

application whether the tasting room location for which the off-

 

premises tasting room license or the joint off-premises tasting

 

room license application is being made will sell by the glass as

 

provided in subdivision (a) or provide only samples as provided in

 

subdivision (b). The designation made for the off-premises tasting

 

room license or the joint off-premises tasting room license must

 

not be changed after the license has been issued.

 

     (d) All wine makers, small wine makers, distillers, small

 

distillers, or brandy manufacturers licensed at the same approved

 

jointly operated off-premises tasting room must have an identical

 

designation under subdivision (c).

 

     (e) A wine maker, small wine maker, distiller, small

 

distiller, or brandy manufacturer that has an off-premises tasting

 

room or jointly operated off-premises tasting room location that

 

was approved by the commission before the effective date of the

 

amendatory act that added this section must submit to the


commission in writing a designation as required under subdivision

 

(c) by April 1, 2019.

 

     (11) A wine maker, small wine maker, brewer, micro brewer,

 

distiller, small distiller, brandy manufacturer, or mixed spirit

 

drink manufacturer may add a nonalcoholic mixing ingredient or an

 

alcoholic mixing ingredient manufactured by the wine maker, small

 

wine maker, brewer, micro brewer, distiller, small distiller,

 

brandy manufacturer, or mixed spirit drink manufacturer to sampled

 

or purchased alcoholic liquor if the sampled or purchased alcoholic

 

liquor is consumed on the premises of the approved tasting room.

 

     (12) A manufacturer is not a retailer under this act merely

 

because the manufacturer has a tasting room.

 

     (13) A manufacturer with an approved tasting room may sample

 

and sell alcoholic liquor only as specifically allowed in this act.

 

     (14) A manufacturer may do all of the following:

 

     (a) Sell alcoholic liquor it manufactured for consumption off

 

the premises in an approved tasting room under subsections (7) to

 

(9).

 

     (b) Subject to subsection (10)(a), sell alcoholic liquor it

 

manufactured by the glass for consumption on the premises of an

 

approved tasting room under subsections (7) to (9).

 

     (c) Subject to subsection (10)(a), sell or give away samples

 

of any size of alcoholic liquor it manufactured for consumption on

 

the premises of an approved tasting room under subsections (7) to

 

(9).

 

     (d) Subject to subsection (10)(b), sell or give away samples

 

of alcoholic liquor it manufactured for consumption on the premises


of an approved tasting room under subsections (8) and (9) under all

 

of the following conditions:

 

     (i) A wine maker or small wine maker may offer samples of wine

 

that do not exceed 3 ounces per sample.

 

     (ii) A brandy manufacturer may offer samples of brandy that do

 

not exceed 1/3 ounce per sample.

 

     (iii) A distiller or small distiller may offer samples of

 

spirits or mixed drinks that do not exceed 1/3 ounce per sample.

 

     (15) A manufacturer issued a license before the effective date

 

of the amendatory act that added this section that intends to sell

 

for consumption off its licensed premises or sell, serve, and allow

 

consumption on its licensed premises of alcoholic liquor as allowed

 

under this section and section 537 must comply with this section by

 

April 1, 2019.

 

     (16) The revenue received from subsection (7) must be

 

deposited into the liquor control enforcement and license

 

investigation revolving fund under section 543(9).

 

     Enacting section 1. This amendatory act does not take effect

 

unless all of the following bills of the 99th Legislature are

 

enacted into law:

 

     (a) Senate Bill No. 1154.                                   

 

          

 

     (b) Senate Bill No. 1164.                                  

 

         

 

     (c) Senate Bill No. 1165.                                  

 

         

 

     (d) Senate Bill No._1160.                                  


         

 

     (e) Senate Bill No. 1166.                                  

 

         

 

     (f) Senate Bill No. 1155.                                  

 

         

 

     (g) Senate Bill No. 1161.                                  

 

         

 

     (h) Senate Bill No. 1156.