HB-5067, As Passed Senate, November 30, 2005

 

 

 

 

 

 

 

 

 

 

 

 

SENATE SUBSTITUTE FOR

 

HOUSE BILL NO. 5067

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1998 PA 58, entitled

 

"Michigan liquor control code of 1998,"

 

by amending the title and section 105 (MCL 436.1105) and by adding

 

section 914.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

TITLE

 

     An act to create a commission for the control of the alcoholic

 

beverage traffic within this state, and to prescribe its powers,

 

duties, and limitations; to provide for powers and duties for

 

certain state departments and agencies; to impose certain taxes for

 

certain purposes; to provide for the control of the alcoholic

 

liquor traffic within this state and to provide for the power to

 

establish state liquor stores; to prohibit the use of certain

 


devices for the dispensing of alcoholic vapor; to provide for the

 

care and treatment of alcoholics; to provide for the incorporation

 

of farmer cooperative wineries and the granting of certain rights

 

and privileges to those cooperatives; to provide for the licensing

 

and taxation of activities regulated under this act and the

 

disposition of the money received under this act; to prescribe

 

liability for retail licensees under certain circumstances and to

 

require security for that liability; to provide procedures,

 

defenses, and remedies regarding violations of this act; to provide

 

for the enforcement and to prescribe penalties for violations of

 

this act; to provide for allocation of certain funds for certain

 

purposes; to provide for the confiscation and disposition of

 

property seized under this act; to provide referenda under certain

 

circumstances; and to repeal acts and parts of acts.

 

     Sec. 105. (1) "Alcohol" means the product of distillation of

 

fermented liquid, whether or not rectified or diluted with water,

 

but does not mean ethyl or industrial alcohol, diluted or not, that

 

has been denatured or otherwise rendered unfit for beverage

 

purposes.

 

     (2) "Alcohol vapor device" means any device that provides for

 

the use of air or oxygen bubbled through alcoholic liquor to

 

produce a vapor or mist that allows the user to inhale this

 

alcoholic vapor through the mouth or nose.

 

     (3)  (2)  "Alcoholic liquor" means any spirituous, vinous,

 

malt, or fermented liquor, liquids and compounds, whether or not

 

medicated, proprietary, patented, and by whatever name called,

 

containing 1/2 of 1% or more of alcohol by volume which are fit for

 


use for beverage purposes as defined and classified by the

 

commission according to alcoholic content as belonging to 1 of the

 

varieties defined in this chapter.

 

     (4)  (3)  "Authorized distribution agent" means a person

 

approved by the commission to do 1 or more of the following:

 

     (a) To store spirits owned by a supplier of spirits or the

 

commission.

 

     (b) To deliver spirits sold by the commission to retail

 

licensees.

 

     (c) To perform any function needed to store spirits owned by a

 

supplier of spirits or by the commission or to deliver spirits sold

 

by the commission to retail licensees.

 

     (5)  (4)  "Bar" means a barrier or counter at which alcoholic

 

liquor is sold to, served to, or consumed by customers.

 

     (6)  (5)  "Beer" means any beverage obtained by alcoholic

 

fermentation of an infusion or decoction of barley, malt, hops, or

 

other cereal in potable water.

 

     (7)  (6)  "Brand" means any word, name, group of letters,

 

symbol, trademark, or combination thereof adopted and used by a

 

supplier to identify a specific beer, malt beverage, wine, mixed

 

wine drink, or mixed spirit drink product and to distinguish that

 

product from another beer, malt beverage, wine, mixed wine drink,

 

or mixed spirit drink product that is produced or marketed by that

 

or another supplier. As used in this section and notwithstanding

 

sections 305(2)(j) and 403(2)(j), "supplier" means a brewer, an

 

outstate seller of beer, a wine maker, a small wine maker, an

 

outstate seller of wine, a manufacturer of mixed wine drink, an

 


outstate seller of a mixed wine drink, a mixed spirit drink

 

manufacturer, or an outstate seller of mixed spirit drink.

 

     (8)  (7)  "Brand extension" means any brand which incorporates

 

all or a substantial part of the unique features of a preexisting

 

brand of the same supplier. As used in this section and

 

notwithstanding sections 305(2)(j) and 403(2)(j), "supplier" means

 

a brewer, an outstate seller of beer, a wine maker, a small wine

 

maker, an outstate seller of wine, a manufacturer of mixed wine

 

drink, an outstate seller of a mixed wine drink, a mixed spirit

 

drink manufacturer, or an outstate seller of mixed spirit drink.

 

     (9)  (8)  "Brandy" means an alcoholic liquor as defined in 27  

 

C.F.R.  CFR 5.22(d) (1980).

 

     (10)  (9)  "Brandy manufacturer" means a person licensed under

 

this act to engage in the manufacturing, rectifying or blending, or

 

both, of brandy only and no other distilled spirit. Only a licensed

 

wine maker or a small wine maker is eligible to be a brandy

 

manufacturer. The commission may approve a brandy manufacturer to

 

sell at retail brandy which it manufactures, blends or rectifies,

 

or both, at its licensed premises or at other premises authorized

 

in this act.

 

     (11)  (10)  "Brewer" means a person located in this state that

 

is licensed to manufacture and sell to licensed wholesalers beer

 

produced by it.

 

     (12)  (11)  "Brewpub" means a license issued in conjunction

 

with a class C, tavern, class A hotel, or class B hotel license

 

that authorizes the person licensed with the class C, tavern, class

 

A hotel, or class B hotel to manufacture and brew not more than

 


5,000 barrels of beer per calendar year in Michigan and sell at

 

those licensed premises the beer produced for consumption on or off

 

the licensed brewery premises in the manner provided for in

 

sections 405 and 407.

 

     Sec. 914. (1) Except as otherwise provided in subsection (3),

 

a person shall not use or offer for use, possess, sell, or offer

 

for sale an alcohol vapor device.

 

     (2) A person who violates subsection (1) is guilty of a

 

misdemeanor punishable in the manner provided for in section 909.

 

     (3) The commission may jointly promulgate rules with the

 

department of community health to allow for the sale or use of an

 

alcohol vapor device for research purposes.