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