HB-5025, As Passed House, December 1, 2016

SUBSTITUTE FOR

HOUSE BILL NO. 5025

     A bill to amend 1998 PA 58, entitled

"Michigan liquor control code of 1998,"

by amending section 303 (MCL 436.1303).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 303. (1) The grape and wine industry council is created

in under Executive Reorganization Order No. 2014-2, MCL 333.26253,

is within the department of agriculture and rural development. The

Beginning with the effective date of the 2016 amendatory act that

amended this section, the council shall be known as the Michigan

craft beverage council and shall consist of all of the following

members:

     (a) Three wine makers.

     (b) A wine grape grower.

     (a) The following nonvoting members:

(i) (c) The director of consumer and industry services chief

executive officer of the Michigan economic development corporation

or his or her designee.

(ii) (d) The director of the department of agriculture and

rural development or his or her designee.

(iii) (e) A staff member of Michigan state university State

University appointed by, and serving at the pleasure of, the dean

of the college of agriculture and natural resources of Michigan

state university.State University.

(iv) (f) The chairperson of the commission or his or her

designee, as an ex officio member.

     (v) The president of the Michigan Restaurant Association or

his or her designee.

     (vi) The president of the Michigan Licensed Beverage

Association or his or her designee.

     (vii) The president of the Michigan Lodging and Tourism

Association or his or her designee.

     (viii) The president of the Michigan Beer and Wine Wholesalers

or his or her designee.

(b) The following voting members appointed by the governor:

     (i) (g) A person An individual who operates a retail food

establishment that holds a specially designated merchant license

and sells Michigan wines or beer or a person an individual who

operates a restaurant that holds a class C license and serves

Michigan wines.

     (ii) Three wine makers, at least 1 of whom manufactures wine

that is made with fruit other than grapes.

     (iii) A large brewer.

     (iv) A micro brewer.

     (v) A small distiller.

     (vi) A beer and wine wholesaler who markets Michigan wine.

     (vii)  A beer and wine wholesaler who markets Michigan

beer.

     (c) The following nonvoting members appointed by the governor:

     (i) A retailer who holds a specially designated merchant

license or specially designated distributor license and who does

not hold an on-premises license.

     (ii) A representative from a college or university that has a

research program related to the manufacturing of beer, wine, or

spirits.

     (iii) A representative from a college or university that has

an educational program related to the manufacturing of beer, wine,

or spirits.

     (iv) Two individuals who represent the agriculture industry

related to the production of hops, barley, grapes, apples, or

cherries.

     (h) A beer and wine wholesaler who markets Michigan wine.

     (i) Not more than 2 additional members appointed as prescribed

in subsection (3).

     (2) The members of the council described in subsection (1)(a),

(b), (g), and (h) shall be appointed by the governor. The council

members appointed under subsection (1)(g) and (h) shall be

appointed for 2-year terms beginning on October 1, 1991. Of the

council members appointed for terms beginning October 1, 1991, 1

shall be appointed for a 1-year term, and 3 shall be appointed for

terms of 2 years each. All appointments for terms beginning on or

after October 1, 1992 shall be for 2 years each. A member shall

continue to serve until a qualified successor has been appointed.

Members of the council shall serve for terms of 3 years or until a

successor is appointed, whichever is later, except that of the

voting members first appointed, 3 shall serve for 1 year, 3 shall

serve for 2 years, and 3 shall serve for 3 years. A member shall

not serve more than 2 consecutive terms. A vacancy on the board

shall must be filled in the same manner as the original

appointment. The director of the department of agriculture shall

act as and rural development is the chairperson of the council.

     (3) The governor may appoint not more than 2 additional

members to the council who shall assist the council in performing

its duties, but who shall not have the power to vote. The persons

appointed under this subsection shall not be members of the

classified state civil service, shall serve at the pleasure of the

governor, and shall receive salaries and benefits determined and

paid by the department of agriculture.

(3) (4) The council may employ personnel and incur such

expenses as that are necessary to carry out the purposes of the

council under this act. All such The expenses shall must be paid

from fees credited to the wine industry council under section

543(2) and credited to the council under section 221. However, the

council or the department of agriculture and rural development on

behalf of the council shall not expend more than 20% of the

council's annual budget to employ personnel under this subsection.

A member of the council or an employee or agent of the council

shall is not be personally liable on the contracts of the council.

(4) (5) A nongovernmental voting member of the council shall

receive $50.00 per day for each day spent in actual attendance at

meetings of the council and traveling expenses while on council

business in accordance with standard travel regulations of the

department of technology, management, and budget.

(5) (6) The council shall maintain accurate books and records,

and all funds money received by the council shall must be used to

implement and enforce this section.

(6) (7) The council shall do all of the following:

     (a) Provide for research on wine grapes and wines, including,

but not limited to, methods of planting, growing, controlling

insects and diseases, charting microclimates and locations for

growing desirable varieties of wine grapes, marketing, processing,

distribution, advertising, sales production, and product

development.

     (b) Provide for research on hops, barley, beer, and spirits,

including, but not limited to, methods of planting, growing,

controlling insects and diseases, marketing, processing,

distribution, advertising, sales production, and product

development.

(c) (b) Provide the wine industry, including growers,

wineries, distributors, and retailers, with information relative to

proper methods of handling and selling wine grapes and wines.

     (d) Provide the brewing and distilling industries, including

growers, brewers, distillers, distributors, and retailers, with

information relative to proper methods of handling and selling

hops, barley, beer, and spirits.

(e) (c) Provide for market surveys and analyses for purposes

of expanding existing markets and creating new and larger markets

for wine grapes, and wines, hops, barley, beer, and spirits.

(f) (d) Provide for the promotion of the sale of Michigan wine

grapes, and wines, hops, barley, beer, and spirits for the purpose

of maintaining or expanding present markets and creating new and

larger domestic and foreign markets.

(g) (e) Develop and administer financial aid programs to wine

grape growers to encourage the increased planting in this state of

desirable grape varieties in microclimates determined to provide

the best conditions for producing quality wines.

     (h) Develop and administer financial aid programs to hops

growers to encourage increased planting in this state of desirable

hops varieties in microclimates determined to provide the best

conditions for producing quality beer.

     (i) Develop and administer financial aid programs to barley

growers to encourage increased planting in this state of desirable

barley varieties in microclimates determined to provide the best

conditions for producing quality beer.

     (j) Prepare and approve an annual budget.

     (k) Apply for, receive, and accept a grant from the office

that promotes the Pure Michigan tourism campaign or any successor

campaign.

     (l) Establish educational partnerships to benefit the beer,

wine, and spirits industries.

(7) (8) The council may promulgate rules pursuant to under the

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

24.328, for the purposes of implementing and enforcing this

section. However, a rule the council shall not be promulgated

promulgate a rule that conflicts with a rule promulgated by the

commission pursuant to under section 215.

     (8) The council shall not engage in lobbying as that term is

defined in section 5 of 1978 PA 472, MCL 4.415.

     (9) This section does not prevent the council from

establishing a commodity committee under the agriculture

commodities marketing act, 1965 PA 232, MCL 290.651 to 290.674.

(10) (9) As used in this section: , "council"

     (a) "Council" means the grape and wine industry Michigan craft

beverage council created described in subsection (1).

     (b) "Large brewer" means a brewer that produces in total at

least 60,000 barrels of beer and not more than 1,000,000 barrels of

beer per year. In determining the barrel threshold under this

subdivision, all brands and labels of a brewer, whether brewed in

this state or outside this state, must be combined and all

facilities for the production of beer that are owned or controlled

by the same person are treated as a single facility.

     Enacting section 1. This amendatory act takes effect 90 days

after the date it is enacted into law.

     Enacting section 2. This amendatory act does not take effect

unless Senate Bill No. 671 of the 98th Legislature is enacted into

law.