HOUSE BILL No. 4667

 

 

May 30, 2017, Introduced by Reps. Iden, Kesto, McCready, Hauck, Crawford, Zemke, Webber, Griffin, Maturen, Bellino, Leutheuser, Brann, Lucido and Hughes and referred to the Committee on Regulatory Reform.

 

     A bill to amend 1998 PA 58, entitled

 

"Michigan liquor control code of 1998,"

 

by amending section 303 (MCL 436.1303).

 

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 amendatory act that added

 

subsection (10), the council shall be known as the Michigan craft

 

beverage council and shall consist of all of the following members:

 

     (a) Three wine makers.

 

     (b) A wine grape grower.

 

     (c) The director of consumer and industry services or his or

 

her designee.

 

     (a) (d) The director of the department of agriculture and


rural development or his or her designee as a nonvoting member.

 

     (e) A staff member of Michigan state university appointed by,

 

and serving at the pleasure of, the dean of the college of

 

agriculture and natural resources of Michigan state university.

 

     (f) The chairperson of the commission or his or her designee,

 

as an ex officio member.

 

     (b) The following voting 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 beer.

 

     (ii) An individual who operates a restaurant that holds a

 

class C license and serves Michigan wines.

 

     (h) A beer and wine wholesaler who markets Michigan wine.

 

     (i) Not more than 2 additional members appointed as prescribed

 

in subsection (3).

 

     (iii) Two wine makers.

 

     (iv) A wine maker that manufactures wine made from fruit other

 

than grapes.

 

     (v) A large brewer.

 

     (vi) An individual who holds a brewpub license.

 

     (vii) A small distiller.

 

     (viii) A distiller that manufactures more than 60,000 gallons

 

of spirits per year.

 

     (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.

 

Voting members of the council appointed by the governor under

 

subsection (1) shall serve for terms of 3 years or until a

 

successor is appointed, whichever is later, except that of the

 

voting members first appointed, 3 shall serve for 1 year, 3 shall

 

serve for 2 years, and 3 shall serve for 3 years. A voting 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.

 

     (3) (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 wine industry council under section

 

543(2) and credited to the council under section 221. The council

 

shall expend at least 50% of its annual budget on any of its duties


described in subsection (6)(a), (b), (g), (h), or (i). 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.

 

     (4) (5) A nongovernmental member of the council shall may

 

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.

 

     (5) (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.

 

     (6) (7) The council shall do all of the following:

 

     (a) Provide for research on wine grapes fruits used in

 

winemaking 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, fruits used in winemaking, 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 fruits used in


winemaking 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 fruits used in winemaking, wines, hops, barley,

 

beer, and spirits.

 

     (f) (d) Provide for the promotion of the sale of Michigan wine

 

grapes and fruits used in winemaking, wines, hops, barley, beer,

 

and spirits for the purpose of maintaining or expanding present

 

markets and creating new and larger domestic and foreign markets.

 

     (g) (e) Develop and administer financial aid programs to wine

 

grape growers of fruits used in winemaking to encourage the

 

increased planting in this state of desirable grape fruit 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.

 

     (j) Prepare and approve an annual budget.


     (k) Apply for, receive, and accept a grant from the office

 

that promotes the Pure Michigan tourism campaign or any successor

 

campaign.

 

     (l) Establish educational partnerships to benefit the beer,

 

wine, and spirits industries.

 

     (7) (8) The council may promulgate rules pursuant to 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.

 

     (8) Except as otherwise provided in this subsection, the

 

council shall not engage in lobbying. This subsection does not

 

prohibit the council or a council member or council employee from

 

providing technical information to the legislature or to the

 

department of agriculture and rural development, regardless of

 

whether the council, council member, or council employee is

 

appearing before an officially convened legislative committee or

 

department of agriculture and rural development hearing panel, if

 

the technical information is related to the council's duties under

 

this section. As used in this subsection:

 

     (a) "Lobbying" means that term as defined in section 5 of 1978

 

PA 472, MCL 4.415.

 

     (b) "Technical information" means that term as defined in

 

section 5 of 1978 PA 472, MCL 4.415.

 

     (9) This section does not prevent the council from

 

establishing a commodity committee under the agriculture


commodities marketing act, 1965 PA 232, MCL 290.651 to 290.674.

 

     (10) (9) As used in this section: , "council"

 

     (a) "Council" means the grape and wine industry Michigan craft

 

beverage council created described in subsection (1).

 

     (b) "Large brewer" means a brewer that produces in total at

 

least 60,000 barrels of beer and not more than 1,000,000 barrels of

 

beer per year. In determining the barrel threshold under this

 

subdivision, all brands and labels of a brewer, whether brewed in

 

this state or outside this state, must be combined and all

 

facilities for the production of beer that are owned or controlled

 

by the same person are treated as a single facility.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.

 

     Enacting section 2. This amendatory act does not take effect

 

unless Senate Bill No. ____ or House Bill No. 4668 (request no.

 

02052'17) of the 99th Legislature is enacted into law.