SENATE BILL No. 1441

 

 

July 28, 2010, Introduced by Senators JANSEN, SWITALSKI and VAN WOERKOM and referred to the Committee on Economic Development and Regulatory Reform.

 

 

 

     A bill to amend 1998 PA 58, entitled

 

"Michigan liquor control code of 1998,"

 

by amending sections 537 and 1025 (MCL 436.1537 and 436.2025),

 

section 537 as amended by 2008 PA 218 and section 1025 as amended

 

by 2008 PA 11.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 537. (1) The following classes of vendors may sell

 

alcoholic liquors 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 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 have attained the age of 21 years.

 

     (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 selling less than 200,000

 

barrels of beer per year 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 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 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 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.

 

     (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 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 shall be considered licensed

 

premises.

 

     (d) Wine tasting does not take place between the hours of 2

 

a.m. and 7 a.m. Monday through Saturday, or between 2 a.m. and 12

 

noon on Sunday.

 

     (e) The premises and the licensee comply with and are subject

 

to all applicable rules promulgated by the commission.

 

     (4) Notwithstanding the provisions of section 1025(1), a store

 

affiliated with a Michigan-based grocery chain that, chain-wide,

 

has a total of 48,872 square feet of floor space, that is publicly

 

traded on NASDAQ, that is licensed as a specially designated

 

merchant, and that does not hold a license allowing the consumption

 

of alcoholic liquor on the premises at the same licensed address,

 

may conduct wine tastings on the licensed premises under the

 

following conditions:

 

     (a) A customer is not charged for the tasting of wine.

 

     (b) The tasting samples provided to a customer do not exceed 1

 


ounce per serving and not more than 6 servings for a total of 6

 

ounces are provided to a customer within a 24-hour period.

 

     (c) The licensee has first obtained a wine tasting permit

 

approved by the commission and paid a $50.00 annual fee per

 

location.

 

     (5) During the time the wine tasting is conducted under

 

subsection (4), the licensee, an agent, or an employee of the

 

licensee who has successfully completed a server training program

 

as provided for in section 906 shall devote full time to the wine

 

tasting activity and shall perform no other duties, including the

 

sale of alcoholic liquor for consumption off the licensed premises.

 

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.

 

     (6) A manufacturer, wholesaler, outstate seller of wine, wine

 

maker, or salesperson is prohibited from conducting or

 

participating in wine tastings allowed by the permit required in

 

subsection (4)(c).

 

     (7) Wine tasting under subsection (4) may only be conducted

 

during the legal hours for sale of alcoholic liquor by the

 

licensee.

 

     Sec. 1025. (1) A vendor shall not give away any alcoholic

 

liquor of any kind or description at any time in connection with

 

his or her business, except manufacturers for consumption on the

 

premises only.

 


     (2) Subsection (1) does not prevent either of the following:

 

     (a) A vendor of spirits, brewer, mixed spirit drink

 

manufacturer, wine maker, small wine maker, outstate seller of

 

beer, outstate seller of wine, or outstate seller of mixed spirit

 

drink, or a bona fide market research organization retained by 1 of

 

the persons named in this subsection, from conducting samplings or

 

tastings of an alcoholic liquor product before it is approved for

 

sale in this state, if the sampling or tasting is conducted

 

pursuant to prior written approval of the commission.

 

     (b) A person from conducting of any sampling or tasting

 

authorized by section 537 or rule of the commission.

 

     (3) A vendor shall not sell an alcoholic liquor to a person in

 

an intoxicated condition.

 

     (4) Evidence of any breathalyzer or blood alcohol test results

 

obtained in a licensed establishment, or on property adjacent to

 

the licensed premises and under the control or ownership of the

 

licensee, shall is not be admissible to prove a violation of this

 

section, section 707(1), (2), (3), or (4), or section 801(2). To

 

establish a violation of this section, section 707(1), (2), (3), or

 

(4), or section 801(2), the person's intoxicated condition at the

 

time of the sale or consumption of alcohol must be proven by direct

 

observation by law enforcement or commission enforcement personnel

 

or through other admissible witness statements or corroborating

 

evidence obtained as part of the standard investigation other than

 

breathalyzer or blood alcohol test results.