HB-5260, As Passed House, March 7, 2018

 

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

HOUSE BILL NO. 5260

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1998 PA 58, entitled

 

"Michigan liquor control code of 1998,"

 

by amending section 532 (MCL 436.1532), as added by 2001 PA 223.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 532. (1) A club license allows the licensee to sell, for

 

consumption on the licensed premises, beer, wine, mixed spirit

 

drink, and spirits only to bona fide members of the club who have

 

attained the age of 21 years. As used in this subsection, "bona

 

fide member" means an individual admitted as a charter member or

 

admitted in accordance with the bylaws of the club, who maintains

 

current membership by the payment of annual dues, whose name and

 

address is entered on the list of members, and who has voting

 

rights to regularly elect the board of directors, officers,

 

executive committee, or similar body that conducts the affairs and

 


management of the club. For an incorporated or unincorporated

 

nonprofit veterans' organization that is a branch or chapter of a

 

national organization or an organization chartered by the United

 

States Congress, a bona fide member includes a member of another

 

branch or chapter who possesses an identification card indicating

 

current membership in the same national or congressionally

 

chartered veterans' organization. For a branch, chapter, lodge,

 

aerie, or other local unit of a national fraternal nonprofit

 

association that is exempt from federal income taxes under section

 

501(c)(8) or 501(c)(10) of the internal revenue code, 26 USC 501, a

 

bona fide member includes a member of another branch, chapter,

 

lodge, aerie, or local unit who possesses an identification card

 

indicating current membership in the same national fraternal

 

nonprofit association.

 

     (2) Except as otherwise provided in subsection (2), (3), the

 

commission shall not issue a license to a club unless the club has

 

been in existence for a period of not less than 2 years before the

 

application for the license.

 

     (3) (2) Public A club shall give public notice of the intent

 

of the commission to issue the club a club license shall be given

 

by publication in some a newspaper published or in general

 

circulation within the local governmental unit at least 10 days

 

before the issuance of commission issues the license. A club that

 

is a chapter of a national organization that has had a license for

 

10 or more years may apply for a license without a waiting period.

 

Public notice of the commission's intent to renew the club license

 

is not required.


     (4) (3) Except in the case of for a club paying a maximum fee,

 

within 10 days after February 1 of each year the club shall file

 

with the commission a list of names and residences of its members

 

and make a similar filing of the name and residence with the

 

commission within 10 days after the election of an additional

 

member. The annual filing shall must also include a statement that

 

the club's annual aggregate membership fees or dues and other

 

income, exclusive of the proceeds from the sale of alcoholic

 

liquor, are sufficient to defray the annual rental of its leased or

 

rented premises or, if the premises are owned by the club, are

 

sufficient to meet the taxes, insurance, repairs, and interest on a

 

mortgage on the premises.

 

     (5) (4) The affairs and management of the club shall must be

 

conducted by a board of directors, executive committee, or similar

 

body chosen by the members. A member, officer, agent, or employee

 

of the club shall must not be paid, or directly or indirectly

 

receive in the form of salary or other compensation, profits from

 

the disposition of alcoholic liquor to the club or to the members

 

of the club, beyond the amount of salary fixed and voted at

 

meetings by the members or by its directors or other governing body

 

and as reported by the club to the commission, within 3 months

 

after the meeting.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.