SB 1084

SENATE BILL NO. 1084
A bill to amend 1998 PA 58, entitled
"Michigan liquor control code of 1998,"
by amending section 109 (MCL 436.1109), as amended by
2021 PA 19, and by adding section 609l.
the people of the state of michigan enact:
Sec. 109. (1) "Manufacture"
means to distill, rectify, ferment, brew, make, produce, filter, mix, concoct,
process, or blend an alcoholic liquor or to complete a portion of 1 or more of
these activities. Manufacture does not include bottling or the mixing or other
preparation of drinks for serving by those persons authorized under this act to
serve alcoholic liquor for consumption on the licensed premises. In addition,
manufacture does not include attaching a label to a shiner. All containers or
packages of alcoholic liquor must state clearly the name, city, and state of
the bottler.
(2)
"Manufacturer" means, except as provided in section 603, a person
that manufactures alcoholic liquor, whether located in or out of this state,
including, but not limited to, a distiller, a small distiller, a rectifier, a
mixed spirit drink manufacturer, a mixed wine drink manufacturer, a wine maker,
a small wine maker, a brewer, and a micro brewer.
(3)
"Manufacturing premises" means the licensed premises of a
manufacturer where the manufacturer manufactures alcoholic liquor or, for a
small wine maker only, bottles wine.
(4) "Master
distributor" means, except as provided in section 307, a wholesaler that
acts in the same or similar capacity as a brewer, wine maker, mixed spirit
drink manufacturer, outstate seller of wine, outstate seller of beer, or
outstate seller of mixed spirit drink for a brand or brands of beer, wine, or
mixed spirit drink to other wholesalers on a regular basis in the normal course
of business.
(5) "Micro
brewer" means a brewer that manufactures in total less than 60,000 barrels
of beer per year and that may sell the beer manufactured to consumers at the
licensed brewery premises for consumption on or off the licensed brewery
premises and to retailers as provided in section 203a. In determining the
60,000-barrel threshold, all brands and labels of a brewer, whether
manufactured in this state or outside this state, must be combined and all
facilities for the manufacturing of beer that are owned or controlled by the
same person must be treated as a single facility.
(6)
"Minor" means an individual less than 21 years of age.
(7) "Mixed
spirit drink" means a drink manufactured and packaged or sold by a mixed
spirit drink manufacturer or sold by an outstate seller of mixed spirit drink
to a wholesaler that meets either any of the following conditions:
(a) Contains 10% or
less alcohol by volume consisting of spirits mixed with nonalcoholic beverages
or flavoring or coloring materials and that may also contain 1 or more of the
following:
(i) Water.
(ii) Fruit juices.
(iii) Fruit adjuncts.
(iv) Sugar.
(v) Carbon dioxide.
(vi) Preservatives.
(b) Meets both of
the following conditions:
(i) Contains more than 10% and not more than
13.5% alcohol by volume consisting of spirits mixed with nonalcoholic beverages
and flavoring or coloring materials and that may also contain 1 or more
ingredients listed in subdivision (a).
(ii) Is filled in a metal container that
meets all of the following conditions:
(A) The container
has the general shape and design of a can that has a liquid capacity that does
not exceed 24 ounces.
(B) The container
has a closure that is an integral part of the container.
(C) The container
cannot be readily closed after opening.
(c) Meets both of the following conditions:
(i) Contains more than 13.5% and not more
than 21% alcohol by volume consisting of spirits mixed with nonalcoholic
beverages and flavoring or coloring materials and that may also contain 1 or
more ingredients listed in subdivision (a).
(ii) Is filled in a metal container that
meets all of the following conditions:
(A) The container has the general shape and design of a can that has a
liquid capacity of more than 200ml and does not exceed 24 ounces.
(B) The container has a closure that is an integral part of the
container.
(C) The container cannot be readily closed after opening.
(8) "Mixed
spirit drink manufacturer" means a person licensed under this act to
manufacture mixed spirit drink in this state and to sell mixed spirit drink at
retail in accordance with section 537, or to a wholesaler, or to a retailer as
provided in section 203b. For purposes of rules promulgated by the commission,
a mixed spirit drink manufacturer is treated as a wine manufacturer but is
subject to the rules applicable to spirits for manufacturing and labeling.
(9) "Mixed
wine drink" means a drink or similar product marketed as a wine cooler
that contains less than 7% alcohol by volume, consists of wine and plain,
sparkling, or carbonated water, and contains any 1 or more of the following:
(a) Nonalcoholic
beverages.
(b) Flavoring.
(c) Coloring
materials.
(d) Fruit juices.
(e) Fruit adjuncts.
(f) Sugar.
(g) Carbon dioxide.
(h) Preservatives.
(10) "Outstate
self-distributor" means a person located in another state that is the
substantial equivalent of a micro brewer, small distiller, mixed spirit drink
manufacturer, or small wine maker licensed by the commission to sell alcoholic
liquor that the person manufactured outside this state directly to a retailer
under sections 203(20), 203a, and 203b in accordance with rules promulgated by
the commission. An applicant for an outstate self-distributor license must
submit a copy of its federal basic permit or brewer's notice and its
manufacturing license from the state of issuance.
(11) "Outstate
seller of beer" means a person licensed by the commission to sell beer
that has not been manufactured in this state, or beer that the person purchased
from a limited production manufacturer, to a wholesaler in this state in
accordance with rules promulgated by the commission. As used in this
subsection, "limited production manufacturer" means a person licensed
under section 504.
(12) "Outstate
seller of mixed spirit drink" means a person licensed by the commission to
sell mixed spirit drink that has not been manufactured in this state to a
wholesaler in this state in accordance with rules promulgated by the
commission. For purposes of rules promulgated by the commission, an outstate
seller of mixed spirit drink is treated as an outstate seller of wine but is
subject to the rules applicable to spirits for manufacturing and labeling.
(13) "Outstate
seller of wine" means a person licensed by the commission to sell wine
that has not been manufactured in this state to a wholesaler in this state in
accordance with rules promulgated by the commission and to sell sacramental
wine as provided in section 301.
Sec. 609l. (1) A vendor of spirits; a vendor
representative, salesperson, or broker that represents the vendor of spirits;
or a third party that provides engraving services may do either of the
following:
(a) Engrave a bottle of spirits sold by a specially designated
distributor before selling the bottle to a consumer.
(b) Engrave a bottle of spirits purchased by a consumer from a specially
designated distributor. Both of the following apply to this subdivision:
(i) The vendor of spirits; a vendor representative,
salesperson, or broker that represents the vendor of spirits; or a third party
that provides engraving services may pick up from the specially designated
distributor's licensed premises the bottle of spirits that has been purchased
by the consumer from the specially designated distributor and return the bottle
to the specially designated distributor's licensed premises after the engraving
has been completed for the consumer to pick up.
(ii) Possession by a retailer of an engraved bottle of spirits
that has been returned to the licensed premises of the specially designated
distributor that sold the bottle of spirits for the consumer to pick up subject
to subparagraph (i) does not violate section 901.
(2) A
vendor of spirits; a vendor representative, salesperson, or broker that
represents the vendor of spirits; or a third party that provides engraving
services may engrave a bottle of spirits purchased by a consumer from the
inventory of a specially designated distributor during a consumer sampling
event conducted in compliance with section 1027 by a vendor of spirits that
holds a consumer sampling event license, or a vendor representative,
salesperson, or broker that represents the supplier.
(3) A
brewer, micro brewer, wine maker, small wine maker, outstate seller of beer, or
outstate seller of wine; a salesperson or broker that represents a brewer,
micro brewer, wine maker, small wine maker, outstate seller of beer, or
outstate seller of wine; or a third party that provides engraving services may
do either of the following:
(a) Engrave
a bottle of beer or wine sold by a specially designated merchant before selling
the bottle to a consumer.
(b) Engrave
a bottle of beer or wine purchased by a consumer from a specially designated
merchant subject to both of the following:
(i) The brewer, micro brewer, wine maker, small wine maker,
outstate seller of beer, or outstate seller of wine; a salesperson or broker
that represents a brewer, micro brewer, wine maker, small wine maker, outstate
seller of beer, or outstate seller of wine; or a third party that provides
engraving services may pick up from the specially designated merchant's
licensed premises the bottle of beer or wine that has been purchased by the
consumer from the specially designated merchant and return the bottle to the
specially designated merchant's licensed premises after the engraving has been
completed for the consumer to pick up.
(ii) Possession by a retailer of an engraved bottle of beer or
wine that has been returned to the licensed premises of the specially
designated merchant that sold the bottle of beer or wine for the consumer to
pick up subject to subparagraph (i) does not violate section 901.
(4) A
brewer, micro brewer, wine maker, small wine maker, outstate seller of beer, or
outstate seller of wine; a salesperson or broker that represents a brewer,
micro brewer, wine maker, small wine maker, outstate seller of beer, or
outstate seller of wine; or a third party that provides engraving services may
engrave a bottle of beer or wine purchased by a consumer from the inventory of
a specially designated merchant during a beer and wine tasting event conducted
in compliance with section 537 by a brewer, micro brewer, wine maker, small
wine maker, outstate seller of beer, or outstate seller of wine that holds a
beer and wine tasting permit, or salesperson or broker that represents the
brewer, micro brewer, wine maker, small wine maker, outstate seller of beer, or
outstate seller of wine.