HB-4061, As Passed Senate, October 26, 2011

SUBSTITUTE FOR

HOUSE BILL NO. 4061

     A bill to amend 1998 PA 58, entitled

"Michigan liquor control code of 1998,"

by amending section 1027 (MCL 436.2027), as amended by 2010 PA 213.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 1027. (1) Unless otherwise provided by rule of the

commission, a person shall not conduct samplings or tastings of any

alcoholic liquor for a commercial purpose except at premises that

are licensed by the commission for the sale and consumption of

alcoholic liquor on the premises.

     (2) Notwithstanding section 1025(1) or (2), a retailer

licensed by the commission for consumption on the premises may

allow customers to sample beer, wine, and distilled spirits so long

as if the retailer does not charge for the samples provided to

customers. Sample serving sizes shall not exceed 3 ounces for beer,

2 ounces for wine, and 1/2 ounce for distilled spirits. A customer

shall not be provided more than 2 samples within a 24-hour period

per licensed premises.

     (3) This section does not prevent either prohibit any of the

following:

     (a) A vendor of spirits, brewer, wine maker, mixed spirit

drink manufacturer, 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) An on-premises licensee from giving a sampling or tasting

of alcoholic liquor to an employee of the licensee during the legal

hours for consumption for the purpose of educating the employee

regarding 1 or more types of alcoholic liquor so long as if the

employee is at least 21 years of age.

     (c) A small distiller licensee from giving a sampling or

tasting of brands it manufactures on the licensed premises or an

off-site tasting facility operated by that small distiller.

     (d) A micro brewer, brewpub, or on-premises licensee from

allowing the sampling and consumption on the licensed premises of

beer, wine, mead, honey-based beer, or cider produced by 1 or more

home brewers at a meeting of home brewers, or a club composed

primarily of home brewers, under the following circumstances:

     (i) The sampling or consumption is for the purpose of

exhibitions or competitions involving home brewers.

     (ii) The beer, honey-based beer, or cider is served in portions

that do not exceed 3 ounces. The wine or mead is served in portions

that do not exceed 2 ounces.

     (iii) The beer, wine, mead, honey-based beer, or cider produced

by the home brewer is only consumed by the home brewer, the home

brewer's family, a club member, a judge, or a guest speaker and is

not sold to members of the general public.

     (iv) The participants in the sampling or consumption otherwise

comply with applicable state and federal law and applicable

regulatory provisions of this act and rules adopted by the

commission under this act.

     (v) The participants in the sampling or consumption are not

charged for the sampling or consumption of the beer, wine, mead,

honey-based beer, or cider.

     (4) A vendor of spirits or a manufacturer may conduct a

consumer sampling event on the premises of a holder of a specially

designated distributor license upon submission of a completed

application to the commission.

     (5) The holder of the a consumer sampling event license shall

comply with the following:

     (a) The commission must be notified in writing a minimum of 10

working days prior to before the event with the date, time, and

location of the event.

     (b) The consumer sampling event is limited to 3 events per

vendor of spirits or manufacturer per specially designated

distributor license per month.

     (c) The vendor of spirits or manufacturer conducting the

consumer sampling event must have a licensed representative present

at the specially designated distributor's establishment.

     (d) Licensed representatives or an authorized representative

may distribute merchandise, not to exceed $100.00 in value, to

consumers 21 years of age or older during the event.

     (e) Participating specially designated distributor licensees

do not receive any fee or other valuable consideration for

participating in the event.

     (f) Each consumer is limited to 3 samples, which total no more

than 1/3 ounce of distilled spirits per serving.

     (g) The consumer is not charged for and does not purchase any

sample.

     (h) The alcoholic liquor used in the consumer sampling event

is provided by the vendor of spirits or manufacturer, and purchased

at the minimum retail selling price fixed by the commission from

the specially designated distributor on whose premises the event is

located. The vendor of spirits or manufacturer shall remove any

unfinished product from the premises at which the event is held

upon completion of the event.

     (i) A consumer sampling event shall not be allowed when if the

sale of alcoholic liquor is otherwise prohibited on the premises at

which the event is conducted.

     (j) Samples are not to be offered to, or allowed to be

consumed by, any person under the legal age for consuming alcoholic

liquor.

House Bill No. 4061 as amended October 25, 2011

     (k) A consumer sampling event may be advertised in any type of

media and the advertisements may include the date, time, location,

and other information regarding the event.

     (l) The participating vendor of spirits or manufacturer and

specially designated distributor licensees must comply with this

act and commission rules.

     (m) The vendor of spirits or manufacturer must demonstrate

that the individual actually conducting the sampling has

successfully completed the server training program in the manner

provided for in section 906 and rules promulgated by the

commission.

     (6) Violation of this section subjects the vendor of spirits

or manufacturer to the sanctions and penalties as provided for

under this act.

     (7) The commission, by rule or issuance of an order, may

further define eligibility for licensure and processes for

conducting consumer sampling events.

     (8) A sampling or tasting of any alcoholic liquor in a home or

domicile for other than a commercial purpose is not subject to this

section.

     <<(9) Before a micro brewer, brewpub, or on-premises licensee allows an event to be held under subsection (3)(d), the micro brewer, brewpub, or on-premises licensee shall enter into a written agreement with the home brewers or home brewers club stating all of the following:

     (a) The date and time the event will be held.

     (b) The location of the event.

     (c) Either of the following:

     (i) A statement that the micro brewer, brewpub, or on-premises licensee acknowledges that it is not in control of an unregulated alcoholic beverage at its establishment and agrees to assume liability under section 801(3) for the event.

     (ii) Proof that the home brewers or home brewers club has obtained a bond or liability insurance equal to that required under section 803(1).

(9)(10)>> For purposes of As used in this section: , "commercial

     (a) "Commercial purpose" means a purpose for which monetary

gain or other remuneration could reasonably be expected.

     (b) "Home brewer" means an individual who manufactures beer,

wine, mead, honey-based beer, or cider at his or her dwelling.