Michigan

Clean Indoor Air

Public Places

Smoking is restricted to designated areas in public places or at meetings of public bodies. See the definition of public place for more details on what is covered. If a smoking area is designated, existing physical barriers and ventilation systems shall be used to minimize the toxic effect of smoke in both smoking and adjacent nonsmoking areas. Single room public places meet this requirement if they designate one-half the room as nonsmoking. This does not apply to: 1) food service establishments; 2) licensed premises; 3) private enclosed rooms or offices occupied exclusively by smokers even if the room or office may be visited by non-smokers; 4) private functions when the seating arrangements are under the control of the sponsor of the function; and 5) private educational facilities after regular school hours.

MICH. COMP. LAWS §§ 333.12601 et seq. (1993).

Smoking is prohibited in retail food establishments. Areas may be designated for employee and public smoking, but shall be isolated from the retail food area. No-smoking signs must be posted at entrances. Violation of this act is a misdemeanor punishable by a fine not to exceed $100.

MICH. COMP. LAWS § 289.707a (1976).

Smoking, or carrying lighted tobacco in any form is prohibited in passenger elevators. Signs prohibiting smoking must be posted. Violators are subject to a fine of $50 or 90 days imprisonment.

MICH. COMP. LAWS § 408.820 (1967).

Government Buildings

Smoking is restricted to designated areas in enclosed indoor areas owned or operated by a state or local government agency and used by the general public or serving as workplaces for public employees or a meeting place for a public body. These areas include offices, educational facilities, auditoria, arenas, meeting rooms and public conveyances. Private, enclosed rooms or offices occupied exclusively by a smoker are not restricted by this law.

MICH. COMP. LAWS §§ 333.12601 et seq. (1993).

By Executive Order, smoking is prohibited in areas in state government facilities, including, but not limited to, private enclosed offices, meeting rooms, cafeterias, restrooms, breakrooms, and all other general space. Exempt from this order are living units, and a strictly limited number of designated areas, in facilities housing prisoners or mental health patients. Department directors and agency heads are responsible for posting such provisions.

Exec. Order 1992-3 (1992).

Schools

Tobacco use is prohibited in any building, structure, or real estate owned, leased, or otherwise controlled by a school district. This law does not apply to that part of school property consisting of outdoor areas including, but not limited to, an open-air stadium, on weekends or other days on which there are no regularly scheduled classes, or after 6:00 p.m. on regular school days.

MICH. COMP. LAWS § 750.473 (1993).

Except as required above, smoking is restricted to designated areas in public places, which includes public and private educational facilities. It does not apply to private educational facilities after regular school hours.

MICH. COMP. LAWS §§ 333.12601 et seq. (1993).

Child Care Centers

A prohibition on smoking is a requirement for licensing through the Department of Social Services for childcare centers. Prohibition during the hours of operation is required for licensing of group day care homes and family day care homes. Smoking is permitted on these premises during the time these facilities are not in operation, but the operator of the facility must inform parents or guardians that smoking on the premises may occur during these times. Violators are subject to the fines listed in the paragraph below.

MICH. COMP. LAWS §§ 722.111 et seq. (1993).

Individuals may not smoke in childcare institutions or childcare centers as defined, or on the real property under the control of such facilities, including other related buildings. This does not include home-based child care facilities. Violators are guilty of a misdemeanor, punishable by a fine between $100 and $1,000.

MICH. COMP. LAWS §§ 333.12601 et seq. & 722.125 (1993).

Health Facilities

Smoking is prohibited in the common and treatment areas of health facilities, including hospitals, health clinics, and doctors’ offices. Patients may be permitted to smoke if the medical staff determines that this prohibition would be detrimental to treatment. Smoking areas provided in these cases must be separately ventilated to ensure that there is a smokefree environment in other patient care and common areas.

MICH. COMP. LAWS §§ 333.12601 et seq. (1993).

Notwithstanding the above, the use of tobacco products is prohibited in and on the grounds of state psychiatric facilities.

S.B. 1094 enacted 7/17/08 and effective 10/1/08.

Licensed nursing homes and licensed homes for the aged must adopt a policy that regulates smoking to provide patients with the option of no-smoking rooms, and restrict patient smoking to private or semiprivate rooms or designated smoking areas. Visitors and staff are permitted to smoke in designated smoking areas only. Tobacco sales are prohibited in nursing homes, except as provided for by owners. Notices must be posted for smoking and non-smoking areas.

MICH. COMP. LAWS. §§ 333.21333 (1978) & 333.21733 (1979).

Restaurants

Food service establishments seating 50 or more persons that are not owned or operated by a private club must reserve a minimum of 50 percent of all seating for a nonsmoking section. All food service establishments seating fewer than 50 people, including establishments owned and operated by a private club, must reserve a minimum of 25 percent of the seating for a non-smoking section. Public areas in restaurants must be smokefree. These areas include, but are not limited to, restrooms, coatrooms, and entrances. Public areas do not include lobbies, waiting rooms, hallways, or lounges. This law also applies to food service establishments or food court areas in enclosed shopping malls. A county, city, village, or township shall not regulate those aspects of food service establishments or vending machines which are subject to regulation under sections 333.12901 et seq. of the Michigan Compiled Laws except to the extent necessary to carry out the responsibility of a local health department.

MICH. COMP. LAWS §§ 333.12905 (1993) & 333.12915 (1983).

A Michigan appeals court found in 2001 that Michigan law preempts local ordinances more restrictive than state law on smoking in restaurants and bars.

Michigan Restaurant Association et al. v. City of Marquette (2001).

Penalties/Enforcement

A state or local governmental agency or the person who owns or operates a public place shall, at a minimum, do all of the following in order to prevent smoking: post signs which state that smoking in that public place is prohibited, except in designated smoking areas; arrange seating to provide, as nearly as practicable, a smokefree area. And implement and enforce the policy for the separation of smokers and nonsmokers developed under section 12605(3). Persons who smoke in nonsmoking areas of public places or health care facilities or a person or governmental agency that fails to follow the applicable guidelines or post the appropriate signs shall be subject to a civil fine of not more than $100 for the first offense and not more than $500 for subsequent offenses. The state Department of Public Health and/or local health departments shall enforce the restrictions on smoking in public places. In addition to the civil fine, the state Department of Public Health or local health departments may enforce these provisions through an action in the appropriate court of law.

MICH. COMP. LAWS §§ 333.12611 (1994) & 333.12613 (1989).

Tobacco Excise Tax

Cigarettes

Tax rate per pack of 20: $2.00

Date last changed: July 1, 2004 — from $1.25 to $2.00

Year first enacted: 1947

MICH. COMP. LAWS § 205.427 (2004).

Michigan’s cigarette tax revenue is distributed as follows:

1) Seventy-five cents is distributed: 6 percent to the Healthy Michigan Fund, 6.5 percent to the Health and Safety Fund, 24.1 percent to the general fund and 63.4 percent to the State School Aid Fund;

2) Another 30 cents is distributed: 6 percent to the Healthy Michigan Fund, 9 percent to the general fund, 56.3 percent to the State School Aid Fund, 3.7 percent to counties with a year 2000 population of more than two million, to be used only for indigent health care and 25 percent to the Medicaid Benefits Trust Fund;

3) Another 20 cents is distributed: 6 percent to the Healthy Michigan Fund and 94 percent to the State School Aid Fund;

4) The final 75 cents is distributed: 75 percent to the Medicaid Benefits Trust Fund and 25 percent to the general fund.

MICH. COMP. LAWS § 205.432 (2004).

An additional fund, entitled the Healthy Michigan Fund, was created in the state treasury for health programs addressing the needs of vulnerable populations, including smoking cessation and anti-tobacco activities. Six percent of $1.25 of the cigarette tax goes into the Healthy Michigan Fund.

MICH. COMP. LAWS §§ 333.5951 et seq. (1995).

An equity assessment was imposed on nonparticipating tobacco product manufacturers, those that have not signed the Master Settlement Agreement, of 35 cents per pack of 20 cigarettes in addition to all other taxes on cigarettes.

MICH. COMP. LAWS § 205.426d(4) (2004).

Other Tobacco Products

Cigars, noncigarette smoking tobacco, and smokeless tobacco: 32% of the wholesale price

MICH. COMP. LAWS § 205.427 (2004).

Seventy-five percent of the revenue from the tax on other tobacco products goes to the Michigan Medicaid Benefits Trust Fund, and 25 percent goes to the state general fund.

MICH. COMP. LAWS § 205.432 (2004).

Revenue Collected

$1,094,495,000

Penalties for Sales to Minors

A person shall not sell or furnish any tobacco product to a person less than 18 years of age. Violation is a misdemeanor, punishable by a fine of not more than $50 for each offense. It is an affirmative defense that the defendant had, and continues to have in force, a written policy to prevent the sale of tobacco products to minors and enforces said policy. This does not apply to the handling or transportation of a tobacco product by a minor under the terms of that minor’s employment. This also does not interfere with the right of a parent or legal guardian in the rearing and management of their minor children within the bounds of their private premises.

MICH. COMP. LAWS §§ 722.641 (2006) & 722.643 (1989).

Penalties to Minors

A minor shall not purchase or attempt to purchase a tobacco product; possess or attempt to possess a tobacco product; use a tobacco product in a public place; and/or present or offer to an individual a purported proof of age that is false, fraudulent or not actually their own for the purpose of purchasing, attempting to purchase, possessing, or attempting to possess a tobacco product. Violation is a misdemeanor, punishable by a fine of not more than $50 for each offense. Pursuant to a probation order, the court may also require an individual to participate in a health promotion and risk reduction assessment program, if available. The individual is responsible for the cost of the program. In addition, an individual is subject to one of the following for a first violation: perform not more than 16 hours of community service in a hospice, nursing home or long-term care facility; or participate in a health promotion and risk reduction program. For a second violation, in addition to participation in a health promotion and risk reduction program, the court may order the individual to perform not more than 32 hours of community service in a hospice, nursing home, or long-term care facility. For a third or subsequent violation, in addition to participation in a health promotion and risk reduction program, the court may order the individual to perform not more than 48 hours of community service in a hospice, nursing home, or long-term care facility. This does not apply to minors used in efforts to gauge compliance with the law. This also does not apply to the handling or transportation of a tobacco product by a minor under the terms of that minor’s employment or interfere with the right of a parent or legal guardian in the rearing and management of their minor children within the bounds of their private premises.

MICH. COMP. LAWS §§ 722.642 (2006) & 722.643 (1989).

Sign Posting

A person who sells tobacco products at retail shall post, in a place close to the point of sale, conspicuous to both employees and customers, a sign produced by the Department of Community Health that states: “THE PURCHASE OF TOBACCO PRODUCTS BY A MINOR UNDER 18 YEARS OF AGE AND PROVISION OF TOBACCO PRODUCTS TO A MINOR ARE PROHIBITED BY LAW. A MINOR UNLAWFULLY PURCHASING OR USING TOBACCO PRODUCTS IS SUBJECT TO CRIMINAL PENALTIES.”

MICH. COMP. LAWS § 722.641 (2006).

Other Provisions

Internet Sales: All sales conducted through the Internet, by telephone, or in a mail-order transaction shall not be completed unless, before each delivery of cigarettes is made, the seller has obtained from the purchaser an affirmation that includes a copy of a valid government-issued document that confirms the purchaser’s name, address, and date of birth showing that the purchaser is at least the legal minimum age to purchase cigarettes; that the cigarettes purchased are not intended for consumption by an individual who is younger than the legal minimum age to purchase cigarettes; and a written statement signed by the purchaser that affirms the purchaser’s address and that the purchaser is at least the minimum legal age to purchase cigarettes. The seller shall verify the information contained in the affirmation provided by the purchaser against a commercially available database of governmental records, or obtain a photocopy, fax copy, or other image of the valid, government-issued identification stating the date of birth or age of the purchaser. The deliverer of the cigarettes is required to obtain proof from a valid government-issued document that the person signing for the cigarettes is the purchaser. Violation is a misdemeanor punishable by a fine of $1,000 or five times the retail value of the tobacco products involved, whichever is greater and/or imprisonment for not more than one year.

MICH. COMP. LAWS §§ 205.428 & 205.431 (2004).

Other limitations are made on tobacco products distributed through United States mail service, express mail service, parcel post service, or common carrier. Tobacco products are not to be distributed via these services unless the receiver has previously paid or agreed to pay for the products at fair market value, in response to a consumer complaint, or as part of marketing to specifically named individuals that involves the prior return by that same individual of a signed authorization card to be kept on file by the tobacco company for at least one year that indicates that the individual is at least 18 years of age. A person who violates this section is guilty of a misdemeanor punishable by imprisonment for not more than one year, a fine of not more than $10,000, or both.

MICH. COMP. LAWS § 750.42b (1992).

Note: Some parts of both of the above laws may be affected by the U.S. Supreme Court decision in Rowe v. New Hampshire Motor Transport Association, decided February 20, 2008.

Restrictions on Distribution of Tobacco Product Samples or Sales of Single Cigarettes

Samples

No person shall furnish any tobacco product to a person less than 18 years of age. Violation is a misdemeanor, punishable by a fine of not more than $50 for each offense. This does not interfere with the right of a parent or legal guardian in the rearing and management of their minor children within the bounds of their private premises.

MICH. COMP. LAWS §§ 722.641 & 722.643 (1989).

Single Cigarettes

A person who sells tobacco products at retail shall not sell a cigarette separately from its package. Any person who violates this law is guilty of a misdemeanor, punishable by a fine of not more than $500 for each offense. This law does not apply to tobacco specialty stores or other retail stores that deal exclusively in the sale of tobacco products and smoking paraphernalia.

MICH. COMP. LAWS § 722.642a (1992).

Restrictions on Sale of Tobacco Products in Vending Machines

Placement

Vending machines are restricted to establishments holding a Class C license. If this establishment has a bar that is in a separate room from the rest of the establishment, the vending machine must be located entirely within that room. If the bar area is not separate, the vending machine shall be located entirely within the bar area and not in a hallway, coat room, restroom or similar area, must be no more than 20 feet from the bar itself and must be under the direct visual supervision of an adult. Vending machines are also permitted in areas, offices, plants, factories and private membership clubs not open to the public, and must be located not less than 20 feet from all entrances and exits accessible to the general public.

MICH. COMP. LAWS § 750.470 (1998).

Penalty

A person who violates this section is guilty of a misdemeanor, punishable by imprisonment for not more than six months, service to the community for a period of not more than 45 days, or a fine of not more than $1,000, or any combination thereof. Each day of violation constitutes a separate offense.

MICH. COMP. LAWS § 750.470 (1998).

Licensing Requirements

Requirements

Manufacturers, wholesalers, and vending machine operators must obtain a license to sell tobacco products. Each place of business shall be separately licensed. Licenses expire on the June 30th next succeeding the date of issuance and can be renewed annually. Beginning on March 15, 1994, any local unit of government or political subdivision of this state shall not impose any new requirement or prohibition pertaining to the sale or licensure of tobacco products for distribution purposes.

MICH. COMP. LAWS §§ 205.423 (1997), 205.424 (1994) & 205.434 (1994).

Fee

$100 annually for a wholesale license; $25 annually for a vending machine operator’s license; and $100 annually for a manufacturer’s license. For multiple places of business, the fee is one quarter of the above fee. Beginning on March 15, 1994, any local unit of government or political subdivision of this state shall not impose any new requirement or prohibition pertaining to the sale or licensure of tobacco products for distribution purposes.

MICH. COMP. LAWS § 205.423 (1997).

Advertising and Promotion

A person who uses an outdoor sign to advertise a smokeless tobacco product shall display on the outdoor sign one of the following statements: “WARNING: THIS PRODUCT MAY CAUSE MOUTH CANCER; WARNING: THIS PRODUCT MAY CAUSE GUM DISEASE AND TOOTH LOSS; WARNING: THIS PRODUCT IS NOT A SAFE ALTERNATIVE TO CIGARETTES.” The warning statements shall be rotated every four months, and shall meet several size and format requirements. Outdoor sign is defined as a sign, display, device, figure, painting, drawing, message, placard, poster, or billboard that is placed outdoors, is stationary, has a surface area of more than 150 square feet, and is designed, intended, or used to advertise or promote. A person who violates this section is guilty of a misdemeanor, punishable by imprisonment for not more than one year or a fine of not more than $5,000, or both. An ordinance, regulation or other law enacted by a local unit of government shall not require a statement, format or type style other than those required by this section.

MICH. COMP. LAWS § 750.42a (1989).

Tobacco Liability

Industry Protection

The amount of a bond issued to stay execution on a judgment while an appeal is pending shall be determined according to the applicable Michigan court rules and statutory provisions. The bond shall not exceed $25 million regardless of the amount of the judgment. If the appellee proves by a preponderance of the evidence that the party for whom the bond to stay execution has been limited is purposefully dissipating or diverting assets outside of the ordinary course of business for the purpose of avoiding ultimate payment of the judgment, the court shall rescind this limitation.

MICH. COMP. LAWS § 600.2607 (2002).

Tobacco Settlement

Tobacco Control Appropriations

Michigan appropriated $3,680,000 for tobacco prevention and cessation programs in FY2009 (October 1, 2008 to September 30, 2009) from a portion of state cigarette tax revenue. $3,600,000 was appropriated in FY2008.

FY2009 Department of Community Health Budget (S.B. 1094) enacted 7/17/08 and effective 10/1/08.

The 21st Century Jobs Trust Fund is established in the Department of Treasury. The trust fund shall consist of the net proceeds of the sale of a portion of tobacco settlement revenues to the Tobacco Settlement Finance Authority (TSFA), and in FY2008 through FY2015, $75 million of tobacco settlement revenue not sold to the TSFA each year. In FY2016, $30 million of tobacco settlement revenue not sold to the TSFA shall be distributed to the fund. The trust fund also receives money from the general fund as specified. Interest on the trust fund is deposited in the general fund.

MICH. COMP. LAWS §§ 12.257 (2008) & 12.258 (2005).

The Michigan Merit Award Trust Fund is also established in the Department of Treasury. The trust fund shall consist only of interest and earnings from trust fund investments, and, in each fiscal year, any tobacco settlement money not sold to the Tobacco Settlement Finance Authority or allocated to the 21st Century Jobs Trust Fund. Upon appropriation, the money is spent on specified educational initiatives.

MICH. COMP. LAWS §§ 12.259 & 12.260 (2005).

Securitization

The Michigan Tobacco Settlement Finance Authority is created as a public body corporate and politic within the Department of Treasury. The authority shall have power and is hereby authorized from time to time to issue bonds in the principal amount or amounts and with the maturities as the authority shall determine to be necessary to provide sufficient funds for achieving its authorized purposes, consisting of the purchase of all or a portion of the state’s tobacco receipts and the payment of or provision for financing costs. The state Budget Director with the approval of the state Administrative Board may sell to the authority, and the authority may purchase, for cash or other consideration and in one or more installments, all or a portion of the state’s tobacco receipts pursuant to the terms of one or more sale agreements. In the alternative, the state Budget Director with the approval of the state Administrative Board may sell all or a portion of the state’s tobacco receipts for cash or other consideration to a person or persons other than the authority, if the terms of the sale agreement to sell the state’s tobacco receipts are in the best interests of this state and the net proceeds of the sale will not exceed $400 million. The sale agreement or combined sale agreements shall provide for the sale of that portion of the state’s tobacco receipts sufficient to provide net proceeds to the state in the amount of $815 million, $400 million of which shall be expended pursuant to the Michigan Trust Fund Act (Michigan Compiled Laws sections 12.251 to 12.260), $207,800,000 shall be deposited in the state school aid fund, and the remainder shall be deposited in the general fund. A sale agreement or combined sale agreements may also provide for refunding, refinancing, and the sale by this state of residual interests sufficient to provide net proceeds to the state in the amount of $60 million.

MICH. COMP. LAWS §§ 129.261 to 129.279 (2008).

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