SB-1155, As Passed House, December 11, 2018

SB-1155, As Passed Senate, November 29, 2018

SUBSTITUTE FOR

SENATE BILL NO. 1155

     A bill to amend 1998 PA 58, entitled

"Michigan liquor control code of 1998,"

(MCL 436.1101 to 436.2303) by adding section 204a.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 204a. (1) A manufacturer shall not sell or transfer

alcoholic liquor to a licensed manufacturer in this state except as

provided in subsections (2) and (3).

     (2) Notwithstanding any provision in this act to the contrary,

a manufacturer may sell or transfer wine or spirits to a licensed

manufacturer, and a licensed manufacturer may purchase or receive

wine or spirits, under any of the following conditions:

     (a) For a sale or transfer of wine:

     (i) The selling or transferring manufacturer is a wine maker,

small wine maker, or out-of-state entity that is the substantial

equivalent of a wine maker or small wine maker and is selling or

transferring the wine to a wine maker, small wine maker, or out-of-

state entity that is the substantial equivalent of a wine maker or

small wine maker.

     (ii) The purchasing or receiving wine maker or small wine

maker manufactures wine at its licensed premises or the purchasing

or receiving small wine maker bottles wine at its licensed

premises.

     (b) For a sale or transfer of spirits:

     (i) The selling or transferring manufacturer is a distiller,

small distiller, or out-of-state entity that is the substantial

equivalent of a distiller or small distiller and is selling or

transferring the spirits to a distiller, small distiller, or out-

of-state entity that is the substantial equivalent of a distiller

or small distiller.

     (ii) The purchasing or receiving distiller or small distiller

manufactures spirits at their licensed premises.

     (3) A wine maker, small wine maker, distiller, or small

distiller may not sell alcoholic liquor purchased or received under

this section unless 1 of the following conditions is met:

     (a) The purchasing or receiving manufacturer modifies the

purchased or received alcoholic liquor by performing a portion of

the manufacturing process as described in section 109(1).

     (b) The purchasing or receiving small wine maker bottles the

purchased or received wine.

     (c) The purchasing or receiving wine maker or small wine maker

is selling a shiner on which the wine maker or small wine maker has

placed a label under section 111(10).

     (4) This section does not prevent a manufacturer from selling,

purchasing, or receiving nonalcoholic ingredients to or from

another manufacturer.

     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. 1156.

     (c) Senate Bill No. 1159.

     (d) Senate Bill No. 1160.

     (e) Senate Bill No. 1161.

     (f) Senate Bill No. 1164.

     (g) Senate Bill No. 1165.

     (h) Senate Bill No. 1166.