HOUSE BILL No. 4719 April 30, 1997, Introduced by Reps. Griffin and LaForge and referred to the Committee on Commerce. A bill to amend 1933 (Ex Sess) PA 8, entitled "The Michigan liquor control act," by amending section 31 (MCL 436.31), as amended by 1996 PA 440. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 31. (1) Except as provided in subsection (8) and sec- 2 tion 31a, a manufacturer, mixed spirit drink manufacturer, ware- 3 houseman, wholesaler, outstate seller of beer, outstate seller of 4 wine, outstate seller of mixed spirit drink, or vendor of spirits 5 shall not have any financial interest, directly or indirectly, in 6 the establishment, maintenance, operation, or promotion of the 7 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 03009'97 LBO 2 1 stockholder of a manufacturer, mixed spirit drink manufacturer, 2 warehouseman, wholesaler, outstate seller of beer, outstate 3 seller of wine, outstate seller of mixed spirit drink, or vendor 4 of spirits shall not have an interest by ownership in fee, lease- 5 hold, mortgage, or otherwise, directly or indirectly, in the 6 establishment, maintenance, operation, or promotion of the busi- 7 ness of any other vendor. 8 (3) 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 shall 12 not have an interest directly or indirectly by interlocking 13 directors in a corporation or by interlocking stock ownership in 14 a corporation in the establishment, maintenance, operation, or 15 promotion of the business of any other vendor. 16 (4) Except as provided in subsection (8) and section 31a, a 17 person shall not buy the stocks of a manufacturer, mixed spirit 18 drink manufacturer, warehouseman, wholesaler, outstate seller of 19 beer, outstate seller of wine, outstate seller of mixed spirit 20 drink, or vendor of spirits and place the stock in any portfolio 21 under an arrangement, written trust agreement, or form of invest- 22 ment trust agreement and issue participating shares based upon 23 the portfolio, trust agreement, or investment trust agreement, 24 and sell the participating shares within this state. 25 (5) A wine maker may sell wine made by that wine maker in a 26 restaurant for consumption on or off the premises if the 27 restaurant is owned by the wine maker or operated by another 03009'97 3 1 person under an agreement approved by the commission and is 2 located on the premises where the wine maker is licensed. 3 (6) The commission may approve a brandy manufacturer to sell 4 brandy made by that brandy manufacturer in a restaurant for con- 5 sumption on or off the premises if the restaurant is owned by the 6 brandy manufacturer or operated by another person under an agree- 7 ment approved by the commission and is located on the premises 8 where the brandy manufacturer is licensed. Brandy sold for con- 9 sumption off the premises under this subsection shall be sold at 10 the uniform price established by the commission. 11 (7) A wine maker, with the prior written approval of the 12 commission, may conduct wine tastings of wines made by that wine 13 maker and may sell the wine made by that wine maker for consump- 14 tion off the premises at a location other than the premises where 15 the wine maker is licensed to manufacture wine, under the follow- 16 ing conditions: 17 (a) The premises upon which the wine tasting occurs conforms 18 to local and state sanitation requirements. 19 (b) Payment of a $100.00 fee per location is made to the 20 commission. 21 (c) The wine tasting locations are considered licensed 22 premises. 23 (d) The wine tasting does not take place between the hours 24 of 2 a.m. and 7 a.m. Monday through Saturday, or between 2 25 a.m. and 12 noon on Sunday. 26 (e) The premises and the licensee comply with and are 27 subject to all applicable rules promulgated by the commission. 03009'97 4 1 (8) A brewpub may have an interest in up to 2 other brewpubs 2 so long as the combined production of all the locations in which 3 the brewpub has an interest does not exceed 5,000 barrels of beer 4 per calendar year. 5 (9) A MICROBREWER MAY HOLD A CLASS C LICENSE IF THE FOLLOW- 6 ING CIRCUMSTANCES EXIST: 7 (A) THE MICROBREWER AND THE PERSON HOLDING THE CLASS C 8 LICENSE ARE THE SAME PERSON. 9 (B) THE CLASS C LICENSED PREMISES ARE CONTAINED WITHIN OR 10 ARE DIRECTLY CONNECTED TO THE LICENSED PREMISES OF THE 11 MICROBREWER. 03009'97 Final page. LBO