Bill Text: MI SB0329 | 2013-2014 | 97th Legislature | Engrossed
Bill Title: Liquor; other; provision regarding the acquisition, sale, development, or operation of real property to another vendor by a brewer; expand to include wine maker, distiller, or brandy manufacturer and limit the number of real properties. Amends sec. 605 of 1998 PA 58 (MCL 436.1605). TIE BAR WITH: HB 4277'13, HB 4709'13, HB 4710'13, HB 4711'13, SB 0504'13, SB 0505'13, SB 0506'13, SB 0507'13, SB 0650'13, SB 0651'13
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2014-03-27 - Assigned Pa 0045'14 With Immediate Effect [SB0329 Detail]
Download: Michigan-2013-SB0329-Engrossed.html
SB-0329, As Passed Senate, November 13, 2013
SUBSTITUTE FOR
SENATE BILL NO. 329
A bill to amend 1998 PA 58, entitled
"Michigan liquor control code of 1998,"
by amending section 605 (MCL 436.1605).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 605. (1) A brewer, wine maker, distiller, brandy
manufacturer, or the parent company, a subsidiary or an affiliate
of a brewer, wine maker, distiller, or brandy manufacturer which
parent company, subsidiary, or affiliate is located in this state
may acquire, develop, sell, lease, finance, maintain, operate, or
promote real property occupied or to be occupied by another vendor,
except a wholesaler, if all of the following exist:
(a) The brewer, wine maker, distiller, or brandy manufacturer
has received written approval of the commission before entering
into any arrangement or contract between the parties regarding the
real property.
(b) The legislative body of the city, village, or township
where the property is located certifies to the commission that the
real property is in an urban, commercial, or community
redevelopment
area. and is designated as such by a state or federal
agency.
(c) Any arrangement or contract entered into between the
brewer, wine maker, distiller, brandy manufacturer, its parent
company, subsidiary, or affiliate and another vendor shall not
directly or indirectly influence or control the brand of alcoholic
liquor sold or to be sold by the vendor and shall only be concerned
with real property.
(d) The brewer, wine maker, distiller, brandy manufacturer,
its parent company, subsidiary, or affiliate has not acquired,
developed, sold, leased, financed, or maintained, operated, or
promoted more than 7 real properties that are occupied or to be
occupied by another vendor, except a wholesaler.
(2) The commission may deny or approve an arrangement or
contract to be entered into under this section. In denying or
approving an arrangement or contract, the commission shall consider
all of the following:
(a) That the arrangement or contract to be entered into is
concerned only with real property.
(b) That the certification required under subsection (1)(b)
has been received by the commission.
(c) That the arrangement or contract does not violate this act
or the rules promulgated under this act.
(3) The commission may review any arrangement or contract
under this section at the time that 1 of the parties to the
arrangement or contract applies for or renews a license. The
commission may deny, revoke, or suspend the license of a party to
the arrangement or contract if the commission finds that the party
to the arrangement or contract has violated this act or the rules
promulgated under this act.
(4) Except as otherwise provided in subsection (5), a
wholesaler shall not be a party to, directly or indirectly, an
arrangement or contract under this section.
(5) A manufacturer, mixed spirit drink manufacturer,
warehouser, wholesaler, authorized distribution agent, outstate
seller of beer, outstate seller of wine, outstate seller of mixed
spirit drink, or vendor of spirits may acquire, develop, sell,
lease, finance, maintain, operate, or promote a condominium project
or own a condominium unit as its sole property, under the
condominium
act, 1978 PA 59, MCL 559.101 to 559.275, 559.276, if
that condominium unit is not the licensed premises owned separately
by a retailer and if all of the following apply:
(a) Condominium assessments in the condominium project are
based on the proportional area each condominium unit has to the
total area.
(b) A condominium unit operating as a licensed premises
operates under a separate name from the condominium project except
that cooperative advertising shall be permitted among owners of
condominium units for the purpose of promoting the condominium
project if the name of a brand or brands of an alcoholic liquor is
not mentioned in the advertising.
(c) Ownership of a condominium unit and participation in a
condominium association under this section is not considered a
financial interest, interest by ownership, or interest by
interlocking directors on stock ownership prohibited by section
603.
(d) A retailer separately owning a separate condominium unit
as sole property does not directly purchase alcoholic liquor from
the manufacturer, warehouser, wholesaler, outstate seller of mixed
spirit drink, or vendor of spirits who owns, leases, maintains,
finances, or operates the condominium project.
(e)
A wholesaler who that has a direct or indirect interest in
a condominium unit in which a retailer is located does not sell
alcoholic liquor to any licensed retail business in which that
retailer, or any person having an ownership interest in that
retailer, has an ownership interest; and, a retail licensed
business in which that retailer, or any person having an ownership
interest in that retailer, has an ownership interest does not
purchase
alcoholic liquor from a wholesaler who that has a direct
or indirect interest in a condominium or condominium unit in which
that retailer is located.
(f) A retailer acquiring a separate condominium unit as sole
property pays the fair market value for the unit.
(6) Subsection (5) does not apply to a manufacturer, mixed
spirit drink manufacturer, warehouser, wholesaler, authorized
distribution agent, outstate seller of beer, outstate seller of
wine, outstate seller of mixed spirit drink, or vendor of spirits
with a direct or indirect interest in a license under the Michigan
gaming
control and revenue act, the Initiated Law of 1996 IL 1,
MCL
432.201
to 432.216. 432.226. Subsection (5) does not prohibit a
direct
physical connection between a condominium unit which that is
the
licensed premises and a condominium unit which that is
not the
licensed premises.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 97th Legislature are
enacted into law:
(a) Senate Bill No. 504.
(b) Senate Bill No. 505.
(c) Senate Bill No. 506.
(d) Senate Bill No. 507.
(e) Senate Bill No. 650.
(f) Senate Bill No. 651.
(g) House Bill No. 4277.
(h) House Bill No. 4709.
(i) House Bill No. 4710.
(j) House Bill No. 4711.
