March 6, 2013, Introduced by Senators SMITH, RICHARDVILLE and 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 section 1114 (MCL 436.2114), as amended by 2011 PA 27,
and by adding section 1116.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1114. (1) Notwithstanding R 436.1403 and R 436.1503 of
the Michigan administrative code and except as otherwise provided
in section 1116, under this act, or by rule of the commission, an
on-premises and an off-premises licensee shall not sell, give away,
or furnish alcoholic liquor between the hours of 2 a.m. and 7 a.m.
on any day.
(2) Subsection (1) does not prevent any local governmental
unit from prohibiting the sale of beer and wine between the hours
of 7 a.m. and 12 noon on Sunday or between the hours of 7 a.m. on
Sunday and 2 a.m. on Monday under section 1111 and does not prevent
any local governmental unit from prohibiting the sale of spirits
and mixed spirit drink between the hours of 7 a.m. and 12 noon on
Sunday or between the hours of 7 a.m. on Sunday and 2 a.m. on
Monday under section 1113. A licensee selling alcoholic liquor
between 7 a.m. and 12 noon on Sunday shall obtain a permit and pay
to the commission an annual fee of $160.00.
(3) A reference to the time of day under this act or a rule of
the commission includes daylight savings time, when observed.
Sec. 1116. (1) An on-premises licensee located within a
central business district in a city may sell or furnish alcoholic
liquor between the hours of 2 a.m. and 4 a.m. on any day if the
licensee has obtained an extended hours permit from the commission.
(2) To obtain an extended hours permit, an on-premises
licensee shall do all of the following:
(a) Submit a completed application and a yearly permit fee of
$10,000.00 to the commission.
(b) Demonstrate to the commission all of the following:
(i) That the licensee will have 1 security person for every 50
customers on the licensed premises.
(ii) That the licensee will have security personnel at the
licensed premises from 11 p.m. to 4 a.m.
(iii) That the licensee will have 360-degree video surveillance
on the licensed premises.
(3) The commission shall determine whether the on-premises
licensee meets the conditions described in subsections (1) and (2).
If the commission determines the licensee meets the conditions
described in subsections (1) and (2), the commission shall approve
the application and issue an extended hours permit within 90 days
of receiving the application.
(4) The commission shall deposit all permit fees collected
under this section in the extended hours permit fund created in
(5) The extended hours permit fund is created within the state
(6) The state treasurer may receive money or other assets from
any source for deposit into the fund. The state treasurer shall
direct the investment of the fund. The state treasurer shall credit
to the fund interest and earnings from fund investments.
(7) Money in the fund at the close of the fiscal year shall
remain in the fund and shall not lapse to the general fund.
(8) The department of licensing and regulatory affairs shall
be the administrator of the fund for auditing purposes.
(9) The department of treasury shall expend money from the
fund, upon appropriation, only as provided in subsection (10).
(10) All money collected and deposited in the extended hours
permit fund shall be distributed as follows:
(a) 5% shall be disbursed to the cities where the extended
hours permits are located for administration costs related to this
(b) 85% shall be disbursed to the police departments of cities
where the extended hours permits are located for the specific
purpose of enforcing this section and the rules promulgated under
(c) 10% shall be distributed to the commission for carrying
out the licensing and enforcement provisions of this section.
(11) As used in this section, "central business district"
means a downtown district established under 1975 PA 197, MCL
125.1651 to 125.1681.