(1) Subject to the limitations provided under this section, the commission may issue a farmer’s market permit to a qualified small wine maker. Regardless of the location of the qualified small wine maker, the commission shall only issue 1 farmer’s market permit in a county where the farmer’s market is located for each 1,500 of population or fraction of 1,500 in that county as determined by the last federal decennial census, by a special census pursuant to section 6 of the home rule city act, 1909 PA 279, MCL 117.6, or section 7 of the Glenn Steil state revenue sharing act of 1971, 1971 PA 140, MCL 141.907, or by the latest census and corrections published by the United States department of commerce, bureau of the census, whichever is later. The holder of a farmer’s market permit may conduct tastings and sell, at retail at a farmer’s market, the wine produced by that qualified small wine maker.

  (2) The commission shall charge a fee for a farmer’s market permit of $25.00 for each farmer’s market location. A farmer’s market permit issued under this section is nontransferable. Notwithstanding the quota provision under subsection (1), the commission shall not limit the number of permits a qualified small wine maker obtains under this section, but an application for a farmer’s market permit shall only contain up to 5 separate locations at 1 time. Section 503 does not apply to the application or issuance of a permit under this section or to the location of a farmer’s market where the holder of a farmer’s market permit intends to participate under this section.

  (3) The commission shall not issue a farmer’s market permit under this section unless the applicant provides documentation, in a manner prescribed by the commission, that the local police agency where the farmer’s market is located and the farmer’s market manager at that location have approved the proposed activity.

  (4) The tastings and sales performed under a farmer’s market permit shall be limited to an exclusive area that is well defined and clearly marked, in a manner prescribed by the commission, that is under the control of the holder of the farmer’s market permit, as verified by the farmer’s market manager.

  (5) The tastings and sales performed under a farmer’s market permit shall be conducted by employees of the holder of the farmer’s market permit who have completed a server training program as provided for in section 906 and the rules promulgated by the commission.

  (6) The wine sold or used for tastings shall be furnished from the stock of the holder of the farmer’s market permit and removed from the farmer’s market premises immediately after the farmer’s market has concluded.

  (7) Tasting samples provided to a customer shall not exceed 3 servings of not more than 2 ounces of wine in a 24-hour period of time.

  (8) The commission shall develop an application for an annual farmer’s market permit allowing for licensed activities under this section. A farmer’s market manager shall verify on the application that the location listed on the application qualifies as a farmer’s market under this section.

  (9) A wholesaler shall not conduct or participate in any event allowed by this section.

  (10) A holder of a farmer’s market permit is considered a manufacturer as provided under section 603(15)(a).

  (11) Two years after the enactment date of the amendatory act that added this section, the commission shall submit a report to the standing committees of the senate and house of representatives concerned with issues involving liquor control and the house and senate fiscal agencies assessing the continued issuance of farmer’s market permits to qualified small wine makers. The report shall include, at a minimum, all of the following:

  (a) The number of applications received each year for a farmer’s market permit.

  (b) The number of farmer’s market permit applications approved each year.

  (c) The number of farmer’s market permit applications approved in each county.

  (12) As used in this section:

  (a) “Farmer’s market” means a group of farmers or their designees or a variety of vendors, as determined by the farmer’s market manager or his or her designee, who assembles on a recurring basis at a defined community sponsored or municipally sponsored location for the purposes of selling, directly to a consumer, food and products produced by those farmers or their representatives.

  (b) “Farmer’s market manager” means the person responsible for enforcing the market policy and for the daily operation and management of the farmer’s market.

  (c) “Farmer’s market permit” means an annual permit issued as part of an approved license to a qualified small wine maker allowing that person to conduct tastings and sell at retail, for consumption off the licensed premises, at a farmer’s market, wine produced by the qualified small wine maker.

  (d) “Qualified small wine maker” means a small wine maker, or an out-of-state entity that is the substantial equivalent of a small wine maker, that manufactures or bottles not more than 5,000 gallons of wine in 1 calendar year.