January 24, 2013, Introduced by Senators HANSEN, WALKER, JONES, ROBERTSON, BOOHER, PROOS, NOFS and MARLEAU 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 537 (MCL 436.1537), as amended by 2011 PA 298,
and by adding section 415.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 415. (1) The commission may issue a farmer's market
permit to a small wine maker or an out-of-state entity that is the
substantial equivalent of a small wine maker. 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 small wine maker.
(2) The commission shall charge a fee for a farmer's market
permit of $25.00 for each farmer's market location. The commission
shall not limit the number of permits a small wine maker, or an
out-of-state entity that is substantial equivalent of a small wine
maker, 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 subsection 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, 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 course
approved by the commission.
(6) The wine 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 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) 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 small wine maker or an out-of-
state entity that is the substantial equivalent of a small wine
maker 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 small wine maker.
Sec. 537. (1) The following classes of vendors may sell
alcoholic liquor at retail as provided in this section:
(a) Taverns, where beer and wine may be sold for consumption
on the premises only.
(b)
Class C license licensee, where beer, wine, mixed spirit
drink, and spirits may be sold for consumption on the premises.
(c) Clubs, where beer, wine, mixed spirit drink, and spirits
may be sold for consumption on the premises only to bona fide
members where consumption is limited to these members and their
bona fide guests, who are 21 years of age or older.
(d) Direct shippers, where wine may be sold and shipped
directly to the consumer.
(e) Hotels of class A, where beer and wine may be sold for
consumption on the premises and in the rooms of bona fide
registered guests. Hotels of class B, where beer, wine, mixed
spirit drink, and spirits may be sold for consumption on the
premises and in the rooms of bona fide registered guests.
(f) Specially designated merchants, where beer and wine may be
sold for consumption off the premises only.
(g) Specially designated distributors, where spirits and mixed
spirit drink may be sold for consumption off the premises only.
(h) Special licenses, where beer and wine or beer, wine, mixed
spirit drink, and spirits may be sold for consumption on the
premises only.
(i) Dining cars or other railroad or Pullman cars, watercraft,
or aircraft, where alcoholic liquor may be sold for consumption on
the premises only, subject to rules promulgated by the commission.
(j) Brewpubs, where beer manufactured on the premises by the
licensee may be sold for consumption on or off the premises by any
of the following licensees:
(i) Class C.
(ii) Tavern.
(iii) Class A hotel.
(iv) Class B hotel.
(k) Micro brewers and brewers, where beer produced by the
micro brewer or brewer may be sold to a consumer for consumption on
or off the brewery premises.
(l) Class G-1 license licensee, where beer, wine, mixed spirit
drink, and spirits may be sold for consumption on the premises only
to members required to pay an annual membership fee and consumption
is limited to these members and their bona fide guests.
(m)
Class G-2 license licensee,
where beer and wine may be
sold for consumption on the premises only to members required to
pay an annual membership fee and consumption is limited to these
members and their bona fide guests.
(n)
Motorsports event license licensee,
where beer and wine
may be sold for consumption on the premises during sanctioned
motorsports events only.
(o) Wine maker, where wine may be sold by direct shipment, at
retail on the licensed premises, and as provided for in subsections
(2) and (3).
(p) Small distiller selling not more than 60,000 gallons of
spirits manufactured by that licensee to the consumer at retail for
consumption on or off the licensed premises in the manner provided
for in section 534.
(q)
Nonpublic continuing care retirement center license
licensee, where beer, wine, mixed spirit drink, mixed wine drink,
and spirits may be sold at retail and served on the licensed
premises to residents and bona fide guests accompanying the
resident for consumption only on the licensed premises.
(r) A small wine maker or an out-of-state entity that is the
substantial equivalent of a small wine maker, that holds a farmer's
market permit, where wine may be sampled and sold at a farmer's
market for consumption off the licensed premises.
(2) A wine maker may sell wine made by that wine maker in a
restaurant for consumption on or off the premises if the restaurant
is owned by the wine maker or operated by another person under an
agreement approved by the commission and located on the premises
where the wine maker is licensed.
(3) A wine maker, with the prior written approval of the
commission, may conduct wine tastings of wines made by that wine
maker on the premises where the wine maker is licensed to
manufacture wine. The wine maker may charge for the samples.
(4) A wine maker, with the prior written approval of the
commission, may conduct wine tastings of wines made by that wine
maker and may sell the wine made by that wine maker for consumption
off the premises at a location other than the premises where the
wine maker is licensed to manufacture wine, under the following
conditions:
(a) The premises upon which the wine tasting occurs conforms
to local and state sanitation requirements.
(b) Payment of a $100.00 fee per location is made to the
commission.
(c) The wine tasting locations are considered licensed
premises, and the wine maker may include a charge for the samples.
(d) The wine tasting takes place during the legal hours for
the sale of alcoholic liquor by the licensee.
(e) The premises and the licensee comply with and are subject
to all applicable rules promulgated by the commission.
(5) Notwithstanding section 1025(1), an outstate seller of
beer, an outstate seller of wine, a wine maker, a brewer, a micro
brewer, or a specially designated merchant, or an agent of any of
those persons, who does not hold a license allowing the consumption
of alcoholic liquor on the premises at the same licensed address,
may conduct beer and wine tastings on the licensed premises of a
specially designated merchant under the following conditions:
(a) A customer is not charged for the tasting of beer or wine.
(b) The tasting samples provided to a customer do not exceed 3
servings at up to 3 ounces per serving of beer or 3 servings at up
to 2 ounces of wine. A customer shall not be provided more than a
total of 3 samples of beer or wine within a 24-hour period per
licensed premises.
(c) The specially designated merchant, outstate seller of
beer, outstate seller of wine, wine maker, micro brewer, or brewer
has first obtained an annual beer and wine tasting permit approved
by the commission.
(d) The commission is notified, in writing, a minimum of 10
working days before the event, regarding the date, time, and
location of the event.
(6) During the time a beer or wine tasting is conducted under
subsection (5), a specially designated merchant, outstate seller of
beer, outstate seller of wine, wine maker, micro brewer, or brewer,
or its agent or employee who has successfully completed a server
training program as provided for in section 906, shall devote full
time to the beer and wine tasting activity and shall perform no
other duties, including the sale of alcoholic liquor for
consumption off the licensed premises. Beer and wine used for the
tasting must come from the specially designated merchant's
inventory, and all open bottles must be removed from the premises
on the same business day or resealed and stored in a locked,
separate storage compartment on the licensed premises when not
being used for the activities allowed by the permit.
(7) A wholesaler shall not conduct or participate in beer and
wine tastings allowed under a permit issued under subsection (5).
(8) A beer and wine tasting under subsection (5) may only be
conducted during the legal hours for the sale of alcoholic liquor
by the licensee.
(9) A brandy manufacturer or small distiller, with the prior
written approval of the commission, may conduct tastings of brandy
and spirits made by that brandy manufacturer or small distiller and
may sell the brandy and spirits made by that brandy manufacturer or
small distiller for consumption off the licensed premises at a
location other than the licensed premises where the brandy
manufacturer or small distiller is licensed to manufacture brandy
or spirits under the following conditions:
(a) The premises upon which the brandy and spirits tastings
occur conform to local and state sanitation requirements.
(b) Payment of a $100.00 fee per location is made to the
commission.
(c) The brandy and spirits tasting locations are considered
licensed premises.
(d) The brandy and spirits tasting takes place during the
legal hours for the sale of alcoholic liquor by the licensee.
(e) The premises and the license comply with and are subject
to all applicable rules promulgated by the commission.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.