| 1 | 1 | | HOUSE BILL NO. 5910 A bill to amend 1998 PA 58, entitled "Michigan liquor control code of 1998," by amending section 1027 (MCL 436.2027), as amended by 2019 PA 131. 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 spirits if the retailer does not charge for the samples provided to customers. Sample serving sizes must not exceed 3 ounces for beer, 2 ounces for wine, and 1/2 ounce for spirits. A customer must not be provided more than 2 samples within a 24-hour period per licensed premises. (3) This section does not 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 under 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 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 a consumer sampling event license shall comply with the following: (a) The commission must be notified in writing a minimum of 10 working days 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 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) The consumer sampling event is not allowed if the sale of alcoholic liquor is otherwise prohibited on the premises at which the event is conducted. (j) Samples are not offered to, or allowed to be consumed by, any person under the legal age for consuming alcoholic liquor. (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 complies with this act and commission rules. (m) The vendor of spirits or manufacturer demonstrates 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) A holder of a consumer sampling event license may provide a complimentary engraving of a bottle of spirits to a consumer at a consumer sampling event if both of the following conditions are met: (a) The consumer purchased the bottle of spirits from the specially designated distributor at which the consumer sampling event took place. (b) The cost of the engraving does not exceed $100.00. (7) (6) Violation of this section subjects the vendor of spirits or manufacturer to the sanctions and penalties as provided for under this act. (8) (7) The commission, by rule or issuance of an order, may further define eligibility for licensure and processes for conducting consumer sampling events. (9) (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. (10) (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(2) 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). (11) (10) As used in this section: (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 the individual's dwelling. |
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| 23 | 23 | | HOUSE BILL NO. 5910 |
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| 26 | 26 | | |
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| 27 | 27 | | A bill to amend 1998 PA 58, entitled |
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| 28 | 28 | | |
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| 29 | 29 | | "Michigan liquor control code of 1998," |
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| 30 | 30 | | |
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| 31 | 31 | | by amending section 1027 (MCL 436.2027), as amended by 2019 PA 131. |
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| 32 | 32 | | |
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| 33 | 33 | | the people of the state of michigan enact: |
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| 34 | 34 | | |
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| 35 | 35 | | 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. |
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| 36 | 36 | | |
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| 37 | 37 | | (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 spirits if the retailer does not charge for the samples provided to customers. Sample serving sizes must not exceed 3 ounces for beer, 2 ounces for wine, and 1/2 ounce for spirits. A customer must not be provided more than 2 samples within a 24-hour period per licensed premises. |
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| 38 | 38 | | |
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| 39 | 39 | | (3) This section does not prohibit any of the following: |
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| 40 | 40 | | |
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| 41 | 41 | | (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 under prior written approval of the commission. |
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| 42 | 42 | | |
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| 43 | 43 | | (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 if the employee is at least 21 years of age. |
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| 44 | 44 | | |
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| 45 | 45 | | (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. |
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| 46 | 46 | | |
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| 47 | 47 | | (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: |
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| 48 | 48 | | |
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| 49 | 49 | | (i) The sampling or consumption is for the purpose of exhibitions or competitions involving home brewers. |
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| 50 | 50 | | |
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| 51 | 51 | | (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. |
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| 52 | 52 | | |
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| 53 | 53 | | (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. |
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| 54 | 54 | | |
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| 55 | 55 | | (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. |
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| 56 | 56 | | |
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| 57 | 57 | | (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. |
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| 58 | 58 | | |
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| 59 | 59 | | (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. |
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| 60 | 60 | | |
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| 61 | 61 | | (5) The holder of a consumer sampling event license shall comply with the following: |
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| 62 | 62 | | |
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| 63 | 63 | | (a) The commission must be notified in writing a minimum of 10 working days before the event with the date, time, and location of the event. |
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| 64 | 64 | | |
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| 65 | 65 | | (b) The consumer sampling event is limited to 3 events per vendor of spirits or manufacturer per specially designated distributor license per month. |
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| 66 | 66 | | |
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| 67 | 67 | | (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. |
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| 68 | 68 | | |
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| 69 | 69 | | (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. |
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| 70 | 70 | | |
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| 71 | 71 | | (e) Participating specially designated distributor licensees do not receive any fee or other valuable consideration for participating in the event. |
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| 72 | 72 | | |
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| 73 | 73 | | (f) Each consumer is limited to 3 samples, which total no more than 1/3 ounce of spirits per serving. |
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| 74 | 74 | | |
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| 75 | 75 | | (g) The consumer is not charged for and does not purchase any sample. |
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| 76 | 76 | | |
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| 77 | 77 | | (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. |
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| 78 | 78 | | |
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| 79 | 79 | | (i) The consumer sampling event is not allowed if the sale of alcoholic liquor is otherwise prohibited on the premises at which the event is conducted. |
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| 80 | 80 | | |
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| 81 | 81 | | (j) Samples are not offered to, or allowed to be consumed by, any person under the legal age for consuming alcoholic liquor. |
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| 82 | 82 | | |
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| 83 | 83 | | (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. |
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| 84 | 84 | | |
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| 85 | 85 | | (l) The participating vendor of spirits or manufacturer and specially designated distributor licensees complies with this act and commission rules. |
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| 86 | 86 | | |
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| 87 | 87 | | (m) The vendor of spirits or manufacturer demonstrates 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. |
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| 88 | 88 | | |
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| 89 | 89 | | (6) A holder of a consumer sampling event license may provide a complimentary engraving of a bottle of spirits to a consumer at a consumer sampling event if both of the following conditions are met: |
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| 90 | 90 | | |
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| 91 | 91 | | (a) The consumer purchased the bottle of spirits from the specially designated distributor at which the consumer sampling event took place. |
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| 92 | 92 | | |
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| 93 | 93 | | (b) The cost of the engraving does not exceed $100.00. |
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| 94 | 94 | | |
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| 95 | 95 | | (7) (6) Violation of this section subjects the vendor of spirits or manufacturer to the sanctions and penalties as provided for under this act. |
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| 96 | 96 | | |
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| 97 | 97 | | (8) (7) The commission, by rule or issuance of an order, may further define eligibility for licensure and processes for conducting consumer sampling events. |
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| 98 | 98 | | |
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| 99 | 99 | | (9) (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. |
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| 100 | 100 | | |
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| 101 | 101 | | (10) (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: |
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| 102 | 102 | | |
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| 103 | 103 | | (a) The date and time the event will be held. |
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| 104 | 104 | | |
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| 105 | 105 | | (b) The location of the event. |
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| 107 | 107 | | (c) Either of the following: |
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| 109 | 109 | | (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(2) for the event. |
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| 110 | 110 | | |
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| 111 | 111 | | (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). |
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| 112 | 112 | | |
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| 113 | 113 | | (11) (10) As used in this section: |
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| 115 | 115 | | (a) "Commercial purpose" means a purpose for which monetary gain or other remuneration could reasonably be expected. |
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| 116 | 116 | | |
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| 117 | 117 | | (b) "Home brewer" means an individual who manufactures beer, wine, mead, honey-based beer, or cider at his or her the individual's dwelling. |
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