December 15, 2015, Introduced by Senators HANSEN, PROOS, MACGREGOR, MARLEAU, HORN and BOOHER and referred to the Committee on Agriculture.
A bill to amend 1998 PA 58, entitled
"Michigan liquor control code of 1998,"
by amending sections 303 and 543 (MCL 436.1303 and 436.1543),
section 543 as amended by 2010 PA 213.
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 2015 amendatory act that
amended this section, the council shall be known as the grape,
wine, brewing, and distilling industries council and shall consist
of
all of the following
members:
(a)
Three wine makers.
(b)
A wine grape grower.
(a) (c)
The director of consumer and
industry services chief
executive officer of the Michigan economic development corporation
or his or her designee.
(b) (d)
The director of the department of
agriculture and
rural development or his or her designee.
(c) (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.
(d) (f)
The chairperson of the commission
or his or her
designee, as an ex officio member.
(e) The following 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 a person an individual who operates a
restaurant that holds a class C license and serves Michigan wines.
(ii) (h)
A beer and wine wholesaler who
markets Michigan beer
or wine.
(iii) (i)
Not more than 2 additional Two
members appointed as
prescribed
in subsection (3).of the
public.
(iv) Three wine makers.
(v) A wine grape grower.
(vi) A brewer.
(vii) A hop or barley grower.
(viii) A distiller.
(ix) An individual who operates a retail food establishment
that holds a specially designated merchant license and sells
Michigan beer or an individual who operates a restaurant that holds
a class C license and serves Michigan beer or spirits.
(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.
Except as otherwise provided in subsection (3), members of the
council shall serve for terms of 3 years or until a successor is
appointed, whichever is later. 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.The
following apply to
members described in subsection (1)(e)(i) to (v) who were first
appointed under Executive Reorganization Order No. 2014-2, MCL
333.26253:
(a) The following members shall serve until February 1, 2016:
(i) The member described in subsection (1)(e)(i).
(ii) One member described in subsection (1)(e)(iii).
(iii) One member described in subsection (1)(e)(iv).
(iv) The member described in subsection (1)(e)(v).
(b) The following members shall serve until February 1, 2017:
(i) The member described in subsection (1)(e)(ii).
(ii) One member described in subsection (1)(e)(iii).
(iii) Two members described in subsection (1)(e)(iv).
(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 grape, wine, industry brewing, and distilling
industries council under section 543(2). 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.
(5) A nongovernmental 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.
(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.
(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. The council shall develop
parameters to identify wineries, breweries, and distilleries that
qualify for promotion under this subdivision. The parameters may
differ between the wine, brewing, and distilling industries.
However, at least 50% of the wineries, breweries, and distilleries
must qualify for promotion under this subdivision.
(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.
(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.
(9)
As used in this section, "council" means the grape, and
wine, industry
brewing, and distilling
industries council created
described in subsection (1).
Sec.
543. (1) Quarterly, upon on
the commission's
recommendation, of
the commission, the state shall pay pursuant to
appropriation in the manner prescribed by law to the city, village,
or township in which a full-time police department or full-time
ordinance enforcement department is maintained or, if a police
department or full-time ordinance enforcement department is not
maintained, to the county, to be credited to the sheriff's
department of the county in which the licensed premises are
located, 55% of the amount of the proceeds of the retailers'
license fees and license renewal fees collected in that
jurisdiction, for the specific purpose of enforcing this act and
the rules promulgated under this act. Forty-one and one-half
percent of the amount of the proceeds of retailers' license and
license
renewal fees collected shall must
be deposited in a special
fund to be annually appropriated to the commission for carrying out
the licensing and enforcement provisions of this act. Any
unencumbered
or uncommitted money in the special fund shall must
revert to the general fund of the state 12 months after the end of
each fiscal year in which the funds were collected. The legislature
shall appropriate 3-1/2% of the amount of the proceeds of
retailers' license and license renewal fees collected to be
credited to a special fund in the state treasury for the purposes
of promoting and sustaining programs for the prevention,
rehabilitation, care, and treatment of alcoholics. This subsection
does not apply to retail license fees collected for railroad or
Pullman cars, watercraft, aircraft, or wine auctions or to the
transfer fees provided in section 529.
(2) All license and license renewal fees, other than retail
license
and license renewal fees, shall must
be credited to the
grape, and
wine, industry brewing, and distilling industries
council
created described in section 303, to be used as provided in
section
303. Money credited to the grape, and wine, industry
brewing, and distilling industries council shall not revert to the
state general fund at the close of the fiscal year, but shall
remain in the account to which it was credited to be used as
provided in section 303.
(3) All retail license fees collected for railroad or Pullman
cars, watercraft, or aircraft and the transfer fees provided in
section
529 shall must be deposited in the special fund created in
subsection (1) for carrying out the licensing and enforcement
provisions of this act.
(4) The license fee enhancement imposed for licenses issued
under
section 531(3) and (4) shall must
be deposited into a special
fund to be annually appropriated to the commission for enforcement
and other related projects determined appropriate by the
commission. The money representing that amount of the license fees
for identical licenses not issued under section 531(3) and (4)
shall
must be allocated and appropriated under subsection (1).
(5) The license fee imposed on direct shipper licenses and any
violation
fines imposed by the commission shall must be deposited
into the direct shipper enforcement revolving fund. The direct
shipper enforcement revolving fund is created within the state
treasury. The state treasurer shall direct the investment of the
fund. The state treasurer shall credit to the fund interest and
earnings from fund investments. Money in the fund at the close of
the fiscal year shall remain in the fund and shall not lapse to the
general
fund. The commission shall expend money from the fund, upon
on appropriation, only for enforcement of the provisions of section
203 and related projects.
(6) One hundred percent of the wine auction license fee
imposed
in section 525(1)(aa) shall must
be deposited into the
general fund.
(7) As used in this section, "license fee enhancement" means
the money representing the difference between the license fee
imposed for a license under section 525(1) and the additional
amount imposed for resort and resort economic development licenses
under section 525(2).
(8) Notwithstanding any other provision of this section, the
additional
$160.00 license fee imposed upon any on a licensee
selling alcoholic liquor between the hours of 7 a.m. on Sunday and
12 noon on Sunday is allocated to the general fund.