HOUSE BILL No. 4626 April 15, 1997, Introduced by Reps. Anthony, Prusi, Martinez, Kelly, Wetters, McManus and Griffin and referred to the Committee on Regulatory Affairs. A bill to amend 1933 (Ex Sess) PA 8, entitled "The Michigan liquor control act," by amending sections 2aa, 31, and 31b (MCL 436.2aa, 436.31, and 436.31b), as amended by 1996 PA 440. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 2aa. "Brewpub" means a license issued in conjunction 2 with a class "C", tavern, class "A" hotel, or class "B" hotel 3 license which authorizes the person licensed with the class "C", 4 tavern, class "A" hotel, or class "B" hotel to manufacture and 5 brew IN MICHIGAN not more than5,00012,000 barrels of beer per 6 calendar yearin MichiganBUT NOT MORE THAN 4,000 BARRELS PER 7 LOCATION and sell at that licensed brewery premises the beer 8 produced for consumption on or off the licensed brewery premises 9 in the manner provided for in sections 31b and 31c. 02421'97 LBO 2 1 Sec. 31. (1) Except as provided in subsection (8) and 2 section 31a, a manufacturer, mixed spirit drink manufacturer, 3 warehouseman, wholesaler, outstate seller of beer, outstate 4 seller of wine, outstate seller of mixed spirit drink, or vendor 5 of spirits shall not have any financial interest, directly or 6 indirectly, in the establishment, maintenance, operation, or pro- 7 motion of the business of any other vendor. 8 (2) Except as provided in subsection (8) and section 31a, a 9 manufacturer, mixed spirit drink manufacturer, warehouseman, 10 wholesaler, outstate seller of beer, outstate seller of wine, 11 outstate seller of mixed spirit drink, or vendor of spirits or a 12 stockholder of a manufacturer, mixed spirit drink manufacturer, 13 warehouseman, wholesaler, outstate seller of beer, outstate 14 seller of wine, outstate seller of mixed spirit drink, or vendor 15 of spirits shall not have an interest by ownership in fee, lease- 16 hold, mortgage, or otherwise, directly or indirectly, in the 17 establishment, maintenance, operation, or promotion of the busi- 18 ness of any other vendor. 19 (3) Except as provided in subsection (8) and section 31a, a 20 manufacturer, mixed spirit drink manufacturer, warehouseman, 21 wholesaler, outstate seller of beer, outstate seller of wine, 22 outstate seller of mixed spirit drink, or vendor of spirits shall 23 not have an interest directly or indirectly by interlocking 24 directors in a corporation or by interlocking stock ownership in 25 a corporation in the establishment, maintenance, operation, or 26 promotion of the business of any other vendor. 02421'97 3 1 (4) Except as provided in subsection (8) and section 31a, a 2 person shall not buy the stocks of a manufacturer, mixed spirit 3 drink manufacturer, warehouseman, wholesaler, outstate seller of 4 beer, outstate seller of wine, outstate seller of mixed spirit 5 drink, or vendor of spirits and place the stock in any portfolio 6 under an arrangement, written trust agreement, or form of invest- 7 ment trust agreement and issue participating shares based upon 8 the portfolio, trust agreement, or investment trust agreement, 9 and sell the participating shares within this state. 10 (5) A wine maker may sell wine made by that wine maker in a 11 restaurant for consumption on or off the premises if the restau- 12 rant is owned by the wine maker or operated by another person 13 under an agreement approved by the commission and is located on 14 the premises where the wine maker is licensed. 15 (6) The commission may approve a brandy manufacturer to sell 16 brandy made by that brandy manufacturer in a restaurant for con- 17 sumption on or off the premises if the restaurant is owned by the 18 brandy manufacturer or operated by another person under an agree- 19 ment approved by the commission and is located on the premises 20 where the brandy manufacturer is licensed. Brandy sold for con- 21 sumption off the premises under this subsection shall be sold at 22 the uniform price established by the commission. 23 (7) A wine maker, with the prior written approval of the 24 commission, may conduct wine tastings of wines made by that wine 25 maker and may sell the wine made by that wine maker for consump- 26 tion off the premises at a location other than the premises where 02421'97 4 1 the wine maker is licensed to manufacture wine, under the 2 following conditions: 3 (a) The premises upon which the wine tasting occurs conforms 4 to local and state sanitation requirements. 5 (b) Payment of a $100.00 fee per location is made to the 6 commission. 7 (c) The wine tasting locations are considered licensed 8 premises. 9 (d) The wine tasting does not take place between the hours 10 of 2 a.m. and 7 a.m. Monday through Saturday, or between 2 11 a.m. and 12 noon on Sunday. 12 (e) The premises and the licensee comply with and are 13 subject to all applicable rules promulgated by the commission. 14 (8) A brewpub may have an interest in up to 2 other brewpubs 15 so long as the combined production of all the locations in which 16 the brewpub has an interest does not exceed5,00012,000 bar- 17 rels of beer per calendar year BUT DOES NOT EXCEED 4,000 BARRELS 18 PER LOCATION. 19 Sec. 31b. (1) Subject to section 31c, the commission shall 20 issue a brewpub license to a person who is licensed as a food 21 service establishment under part 129 of the public health code, 22Act No. 368 of the Public Acts of 1978, being sections 333.1290123to 333.12922 of the Michigan Compiled Laws1978 PA 368, MCL 24 333.12901 TO 333.12922, and at the time of application for the 25 brewpub license is licensed and continues to be licensed as 1 or 26 more of the following: 02421'97 5 1 (a) Class "C". 2 (b) Tavern. 3 (c) Class "A" hotel. 4 (d) Class "B" hotel. 5 (2) A brewpub shall possess the necessary equipment for a 6 satisfactory operation which shall be maintained in good working 7 order and in a sanitary condition. 8 (3) Agricultural products processed by a manufacturer shall 9 comply with laws and rules of the department of agriculture. 10 (4) A brewpub shall not sell beer in this state unless it 11 provides for each brand or type of beer sold a label that truth- 12 fully describes the content of each container and provides proof 13 that a valid "application for and certification/exemption of 14 label/bottle approval" has been obtained and is unrevoked under 15 the federal malt beverage labeling requirements as published in 16 title 27, part 7, subpart C, C.F.R. 1935 which are hereby adopted 17 by reference. 18 (5) Each location of a brewpub shall have a manufacturing 19 operation on the licensed premises that complies with subsection 20 (6). A brewpub shall apply for and obtain a license for each 21 location of that brewpub. In determining the5,000-barrel22 12,000-BARREL threshold, all brands and labels of the brewpub 23 produced in this state shall be combined. 24 (6) Beer shall be manufactured pursuant to federal malt bev- 25 erage regulations published in title 27, part 25, C.F.R. 1935 26 which are adopted by reference. 02421'97 6 1 (7) Each brewpub shall submit to the commission, on forms 2 acceptable to the commission and postmarked not later than 3 January 15, April 15, July 15, and October 15 of each year, a 4 beer tax report of all beer sold under their brewpub license 5 during the preceding quarter and shall also submit, with the beer 6 tax report, the payment of the required beer excise tax due pur- 7 suant to section 40. 8 (8) A brewpub shall be the holder of a "brewers notice" as 9 issued by the United States department of treasury, bureau of 10 alcohol, tobacco and firearms in accordance with title 27, part 11 25, subpart G, C.F.R. 1935. 02421'97 Final page. LBO