Bill Text: MI HB5508 | 2009-2010 | 95th Legislature | Introduced

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Bill Title: Liquor; other; patrons bringing own alcoholic beverage into certain locations; allow under certain circumstances. Amends secs. 525 & 913 of 1998 PA 58 (MCL 436.1525 & 436.1913) & adds sec. 544.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2009-10-14 - Referred To Second Reading [HB5508 Detail]

Download: Michigan-2009-HB5508-Introduced.html

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HOUSE BILL No. 5508

 

October 13, 2009, Introduced by Rep. Johnson and referred to the Committee on Regulatory Reform.

 

     A bill to amend 1998 PA 58, entitled

 

"Michigan liquor control code of 1998,"

 

by amending sections 525 and 913 (MCL 436.1525 and 436.1913),

 

section 525 as amended by 2008 PA 218 and section 913 as amended by

 

2006 PA 131, and by adding section 544.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 525. (1) Except as otherwise provided for in this

 

section, the following license fees shall be paid at the time of

 

filing applications or as otherwise provided in this act:

 

     (a) Manufacturers of spirits, but not including makers,

 

blenders, and rectifiers of wines containing 21% or less alcohol by

 

volume, $1,000.00.

 

     (b) Manufacturers of beer, $50.00 per 1,000 barrels, or

 

fraction of a barrel, production annually with a maximum fee of

 

$1,000.00, and in addition $50.00 for each motor vehicle used in

 

delivery to retail licensees. A fee increase does not apply to a

 

manufacturer of less than 15,000 barrels production per year.

 

     (c) Outstate seller of beer, delivering or selling beer in

 

this state, $1,000.00.

 

     (d) Wine makers, blenders, and rectifiers of wine, including

 

makers, blenders, and rectifiers of wines containing 21% or less

 

alcohol by volume, $100.00. The small wine maker license fee is

 

$25.00.

 

     (e) Outstate seller of wine, delivering or selling wine in

 

this state, $300.00.

 

     (f) Outstate seller of mixed spirit drink, delivering or

 

selling mixed spirit drink in this state, $300.00.

 

     (g) Dining cars or other railroad or Pullman cars selling

 

alcoholic liquor, $100.00 per train.

 

     (h) Wholesale vendors other than manufacturers of beer,

 

$300.00 for the first motor vehicle used in delivery to retail

 

licensees and $50.00 for each additional motor vehicle used in

 

delivery to retail licensees.

 

     (i) Watercraft, licensed to carry passengers, selling

 

alcoholic liquor, a minimum fee of $100.00 and a maximum fee of

 

$500.00 per year computed on the basis of $1.00 per person per

 

passenger capacity.

 

     (j) Specially designated merchants, for selling beer or wine

 

for consumption off the premises only but not at wholesale, $100.00

 

for each location regardless of the fact that the location may be a

 

part of a system or chain of merchandising.

 

     (k) Specially designated distributors licensed by the

 

commission to distribute spirits and mixed spirit drink in the

 

original package for the commission for consumption off the

 

premises, $150.00 per year, and an additional fee of $3.00 for each

 

$1,000.00 or major fraction of that amount in excess of $25,000.00

 

of the total retail value of merchandise purchased under each

 

license from the commission during the previous calendar year.

 

     (l) Hotels of class A selling beer and wine, a minimum fee of

 

$250.00 and, for all bedrooms in excess of 20, $1.00 for each

 

additional bedroom, but not more than $500.00.

 

     (m) Hotels of class B selling beer, wine, mixed spirit drink,

 

and spirits, a minimum fee of $600.00 and, for all bedrooms in

 

excess of 20, $3.00 for each additional bedroom. If a hotel of

 

class B sells beer, wine, mixed spirit drink, and spirits in more

 

than 1 public bar, the fee entitles the hotel to sell in only 1

 

public bar, other than a bedroom, and a license shall be secured

 

for each additional public bar, other than a bedroom, the fee for

 

which is $350.00.

 

     (n) Taverns, selling beer and wine, $250.00.

 

     (o) Class C license selling beer, wine, mixed spirit drink,

 

and spirits, $600.00. If a class C licensee sells beer, wine, mixed

 

spirit drink, and spirits in more than 1 bar, a fee of $350.00

 

shall be paid for each additional bar. In municipally owned or

 

supported facilities in which nonprofit organizations operate

 

concession stands, a fee of $100.00 shall be paid for each

 

additional bar.

 

     (p) Clubs selling beer, wine, mixed spirit drink, and spirits,

 

$300.00 for clubs having 150 or fewer duly accredited members and

 

$1.00 for each additional member. The membership list for the

 

purpose only of determining the license fees to be paid under this

 

subdivision shall be the accredited list of members as determined

 

by a sworn affidavit 30 days before the closing of the license

 

year. This subdivision does not prevent the commission from

 

checking a membership list and making its own determination from

 

the list or otherwise. The list of members and additional members

 

is not required of a club paying the maximum fee. The maximum fee

 

shall not exceed $750.00 for any 1 club.

 

     (q) Warehousers, to be fixed by the commission with a minimum

 

fee for each warehouse of $50.00.

 

     (r) Special licenses, a fee of $50.00 per day, except that the

 

fee for that license or permit issued to any bona fide nonprofit

 

association, duly organized and in continuous existence for 1 year

 

before the filing of its application, is $25.00. Not more than 12

 

special licenses may be granted to any organization, including an

 

auxiliary of the organization, in a calendar year.

 

     (s) Airlines licensed to carry passengers in this state that

 

sell, offer for sale, provide, or transport alcoholic liquor,

 

$600.00.

 

     (t) Brandy manufacturer, $100.00.

 

     (u) Mixed spirit drink manufacturer, $100.00.

 

     (v) Brewpub, $100.00.

 

     (w) Class G-1, $1,000.00.

 

     (x) Class G-2, $500.00.

 

     (y) Motorsports event license, $250.00.

 

     (z) Small distiller, $100.00.

 

     (aa) Cabaret license, $600.00.

 

     (2) The fees provided in this act for the various types of

 

licenses shall not be prorated for a portion of the effective

 

period of the license. Notwithstanding subsection (1), the initial

 

license fee for any licenses issued under section 531(3) and (4) is

 

$20,000.00. The renewal license fee shall be the amount described

 

in subsection (1). However, the commission shall not impose the

 

$20,000.00 initial license fee for applicants whose license

 

eligibility was already approved on July 20, 2005.

 

     (3) Beginning July 23, 2004, and except in the case of any

 

resort or resort economic development license issued under section

 

531(2), (3), (4), and (5) and a license issued under section 521,

 

the commission shall issue an initial or renewal license not later

 

than 90 days after the applicant files a completed application.

 

Receipt of the application is considered the date the application

 

is received by any agency or department of the state of Michigan.

 

If the application is considered incomplete by the commission, the

 

commission shall notify the applicant in writing, or make the

 

information electronically available, within 30 days after receipt

 

of the incomplete application, describing the deficiency and

 

requesting the additional information. The determination of the

 

completeness of an application does not operate as an approval of

 

the application for the license and does not confer eligibility

 

upon an applicant determined otherwise ineligible for issuance of a

 

license. The 90-day period is tolled under any of the following

 

circumstances:

 

     (a) Notice sent by the commission of a deficiency in the

 

application until the date all of the requested information is

 

received by the commission.

 

     (b) The time period during which actions required by a party

 

other than the applicant or the commission are completed that

 

include, but are not limited to, completion of construction or

 

renovation of the licensed premises; mandated inspections by the

 

commission or by any state, local, or federal agency; approval by

 

the legislative body of a local unit of government; criminal

 

history or criminal record checks; financial or court record

 

checks; or other actions mandated by this act or rule or as

 

otherwise mandated by law or local ordinance.

 

     (4) If the commission fails to issue or deny a license within

 

the time required by this section, the commission shall return the

 

license fee and shall reduce the license fee for the applicant's

 

next renewal application, if any, by 15%. The failure to issue a

 

license within the time required under this section does not allow

 

the commission to otherwise delay the processing of the

 

application, and that application, upon completion, shall be placed

 

in sequence with other completed applications received at that same

 

time. The commission shall not discriminate against an applicant in

 

the processing of the application based upon the fact that the

 

license fee was refunded or discounted under this subsection.

 

     (5) Beginning October 1, 2005, the chair of the commission

 

shall submit a report by December 1 of each year to the standing

 

committees and appropriations subcommittees of the senate and house

 

of representatives concerned with liquor license issues. The chair

 

of the commission shall include all of the following information in

 

the report concerning the preceding fiscal year:

 

     (a) The number of initial and renewal applications the

 

commission received and completed within the 90-day time period

 

described in subsection (3).

 

     (b) The number of applications denied.

 

     (c) The number of applicants not issued a license within the

 

90-day time period and the amount of money returned to licensees

 

under subsection (4).

 

     (6) As used in this section, "completed application" means an

 

application complete on its face and submitted with any applicable

 

licensing fees as well as any other information, records, approval,

 

security, or similar item required by law or rule from a local unit

 

of government, a federal agency, or a private entity but not from

 

another department or agency of the state of Michigan.

 

     Sec. 544. (1) As used in this section:

 

     (a) "Cabaret license" means a license issued by the commission

 

where the licensee, for consideration, may allow only the

 

consumption of alcoholic liquor on the licensed premises and does

 

not allow the licensee to sell or furnish alcoholic liquor on those

 

premises.

 

     (b) "Consideration" means any fee, cover charge, ticket

 

purchase, the storage of alcoholic liquor, the sale of food, ice,

 

mixers, or other liquids used with alcoholic liquor drinks, or the

 

purchasing of any service or item, or combination of service and

 

item; or includes the furnishing of glassware or other containers

 

for use in the consumption of alcoholic liquor in conjunction with

 

the sale of food.

 

     (2) The commission, upon submission of a completed application

 

and proof demonstrating compliance with the conditions imposed in

 

subsection (3), shall issue a cabaret license to a qualified

 

applicant. A cabaret license allows the licensee to request and

 

accept consideration for the admission of an individual to the

 

licensed premises for the consumption of alcoholic liquor on a

 

bring-your-own basis as well as for other activities allowable

 

within the premises as provided by law or ordinance. The cabaret

 

license does not allow the sale of alcoholic liquor at retail to

 

any person for consumption on or off the licensed premises. The

 

commission shall not issue a cabaret license to any person holding

 

any other license issued under this act. The cabaret license is not

 

transferable as to holder or location.

 

     (3) The commission shall issue a cabaret license to an

 

applicant demonstrating compliance with the following conditions:

 

     (a) Location in a city with a population of at least 500,000.

 

     (b) The existence of a duly enacted city ordinance allowing

 

the presence of establishments that provide for the consumption of

 

alcoholic liquor, on a bring-your-own basis, but not allowing for

 

the sale or furnishing of alcoholic liquor by the license holders

 

or the owners of the establishment.

 

     (c) Lack of any current license issued under this act.

 

     (d) Compliance of the premises with any applicable codes,

 

ordinances, or state or federal laws.

 

     (e) A duly approved resolution issued by the local legislative

 

body approving and recommending the issuance of the license.

 

     (4) An application for a cabaret license shall be approved by

 

the local legislative body in which the applicant's place of

 

business is located before the license is granted by the

 

commission, except that in the case of an application for renewal

 

of an existing license, if an objection to a renewal has not been

 

filed with the commission by the local legislative body not less

 

than 30 days before the date of expiration of the license, the

 

approval of the local legislative body is not required. The

 

commission shall provide the local legislative body and the local

 

chief of police with the name, home and business addresses, and

 

home and business telephone numbers to accomplish the local

 

legislative reviews of new license applications required by this

 

section. Upon request of the local legislative body after due

 

notice and opportunity for an administrative hearing by the local

 

legislative body and the commission, the commission shall revoke

 

the cabaret license of a licensee granted a license under this

 

section if the local legislative body presents evidence acceptable

 

to the commission that a renewal license should not be issued based

 

upon violations of this act.

 

     Sec. 913. (1) A person shall not do either of the following:

 

     (a) Maintain, operate, or lease, or otherwise furnish to any

 

person, any premises or place that is not licensed under this act

 

within which the other person may engage in the drinking of

 

alcoholic liquor for consideration.

 

     (b) Obtain by way of lease or rental agreement, and furnish or

 

provide to any other person, any premises or place that is not

 

licensed under this act within which any other person may engage in

 

the drinking of alcoholic liquor for consideration.

 

     (2) A person shall not consume alcoholic liquor in a

 

commercial establishment selling food if the commercial

 

establishment is not licensed under this act. A person owning,

 

operating, or leasing a commercial establishment selling food which

 

is not licensed under this act shall not allow the consumption of

 

alcoholic liquor on its premises.

 

     (3) This section shall not apply to any hotel, a licensed

 

cabaret, or any other licensee under this act.

 

     (4) This section shall not be construed to repeal or amend

 

section 1019.

 

     (5) As used in this section, "consideration" includes any fee,

 

cover charge, ticket purchase, the storage of alcoholic liquor, the

 

sale of food, ice, mixers, or other liquids used with alcoholic

 

liquor drinks, or the purchasing of any service or item, or

 

combination of service and item; or includes the furnishing of

 

glassware or other containers for use in the consumption of

 

alcoholic liquor in conjunction with the sale of food.