Mich. Admin. Code R. 436.1802 - Authorized distribution agents generally
Rule 2.
(1) As used
in this rule, "authorized distribution agent" means a person who has entered
into a contractual relationship with 1 or more manufacturers or suppliers of
spirits or with another authorized distribution agent for warehousing or
distribution, or both, of spirits and who has been certified, in writing, by
the commission, to act as the commission's agent for the warehousing and
distribution of spirits to retail licensees of the commission.
(2) A person shall apply for certification as
an authorized distribution agent to the commission in Lansing on forms, and in
the manner, approved by the commission.
(3) An applicant for certification as an
authorized distribution agent shall provide both of the following to the
commission:
(a) A technical plan for the
importation, transportation, warehousing, and delivery of spirits in this
state.
(b) Any information or
documentation required by the commission relating to the honesty and integrity
of any applicant or any principal in the corporation, company, association,
limited liability company, or partnership applying for certification as an
authorized distribution agent.
(4) An authorized distribution agent or
prospective authorized distribution agent shall maintain, and make available to
the commission or its representative upon being given notice, any contract or
written agreement or proposed contract or written agreement that the authorized
distribution agent or prospective authorized distribution agent may have with a
manufacturer, supplier of spirits, or other authorized distribution agent for
the importation, warehousing, delivery, or sale of spirits in this
state.
(5) An authorized
distribution agent shall maintain an adequate physical plant and proper
equipment to perform the functions for which the authorized distribution agent
is certified.
(6) The commission
may inspect, during normal business hours, any facility or equipment used in
conjunction with the business of an authorized distribution agent or applicant
for certification as an authorized distribution agent.
(7) An authorized distribution agent or
prospective authorized distribution agent shall make available, for inspection
by the commission and its representatives, all financial and accounting records
pertinent to the operation of the authorized distribution agent or prospective
authorized distribution agent.
(8)
An authorized distribution agent shall maintain, at its expense, insurance
approved by the commission to protect against claims resulting from business
operations or activities, including insurance on alcoholic beverages in storage
or transit.
(9) An authorized
distribution agent shall obtain and maintain a blanket bond payable to the
state of Michigan in an amount equal to the risk of loss to the state as
determined by the commission.
(10)
An authorized distribution agent shall not have a direct or indirect interest
in a retail alcoholic beverage license issued by the state of Michigan as
enumerated in section 537 of Act No. 8 58 of the Public Acts of 1998, as
amended, being §
436.1537
of the Michigan Compiled Laws.
(11)
An authorized distribution agent may not subcontract any of the business
functions or activities specified in the agent's contract or agreement with the
manufacturer or supplier of spirits without the prior written consent of the
commission and certification of the subcontractor as an authorized distribution
agent of the commission.
(12) The
commission may rescind the certification of an authorized distribution agent
who fails to comply with any and all federal, state, or local codes, laws,
ordinances, rules, or regulations applicable to the agent's operations or fails
to comply with Act No. 8 58 of the Public Acts of 1998, as amended, being
§
436.1101et seq. of
the Michigan Compiled Laws, commission rules, certification requirements, or
commission order, including an order that establishes further business
operating procedures for authorized distribution agents.
(13) Certification of an authorized
distribution agent shall terminate automatically and without any act of the
commission if the contract or agreement between the authorized distribution
agent and the manufacturer or supplier of spirits or another authorized
distribution agent expires or is terminated. Certification shall also terminate
automatically upon modification of the system of warehousing and distribution
of spirits by the legislature or the commission that eliminates the need for
the authorized distribution agent certification.
(14) The commission may, by order, establish
further business operating procedures for authorized distribution agents
relative to the wholesaling and distribution of spirits.
Notes
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