HB-4668, As Passed House, February 28, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

HOUSE BILL NO. 4668

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1998 PA 58, entitled

 

"Michigan liquor control code of 1998,"

 

by amending sections 221 and 543 (MCL 436.1221 and 436.1543),

 

section 543 as amended by 2016 PA 434, and by adding section 303a.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 221. (1) The commission is authorized to may maintain a

 

revolving fund that is to be derived from the money deposited to

 

the credit of the commission with the state treasurer. From time to

 

time, amounts shall money must be transferred from the revolving

 

fund to the general fund in accordance with the management and

 

budget act, 1984 PA 431, MCL 18.1101 to 18.1594. The fund provided

 

for in this section shall must be used for replenishing,

 

maintaining, warehousing, and distributing liquor stock throughout

 

the this state and for administration of this act. The commission

 


shall make a monthly report of the revolving fund to the state

 

treasurer and to the budget director. The report shall contain must

 

include an itemized account of all money received and all

 

expenditures made by the commission during the month covered in the

 

report.

 

     (2) Interest earnings on common cash attributable to the

 

revolving fund shall must be credited to the revolving fund and

 

shall must be available to the commission for administration of

 

this act.

 

     (3) All money received by the commission under this act shall

 

must be turned over to the state treasurer according to department

 

of treasury procedures.

 

     (4) All money deposited by the commission with the state

 

treasurer shall must be either credited to the revolving fund for

 

expenditures or transfers authorized under subsection (1). or

 

credited to the general fund to be available for the purposes for

 

which the general fund is available.

 

     Sec. 303a. (1) The Michigan craft beverage council fund is

 

created within the state treasury.

 

     (2) The state treasurer may receive money or other assets from

 

any source for deposit into the Michigan craft beverage council

 

fund. The state treasurer shall direct the investment of the

 

Michigan craft beverage council fund. The state treasurer shall

 

credit to the Michigan craft beverage council fund interest and

 

earnings from fund investments.

 

     (3) Money in the Michigan craft beverage council fund at the

 

close of the fiscal year shall remain in the fund and shall not


lapse to the general fund.

 

     (4) Subject to subsection (5), money from the Michigan craft

 

beverage council fund shall be expended annually, upon

 

appropriation, for the following:

 

     (a) Not more than $80,000.00 may be used by the department of

 

agriculture and rural development to administer the grants program

 

under section 303.

 

     (b) Not less than 50% of the money that is expended after the

 

expenditure under subdivision (a) shall be used for grants under

 

section 303(7)(a).

 

     (c) For grants under section 303(7)(b).

 

     (d) For the Michigan craft beverage council to carry out its

 

responsibilities under this act.

 

     (5) Notwithstanding subsection (4), if the Michigan craft

 

beverage council receives money under section 303(9)(a), the money

 

may be expended for the purposes and subject to the conditions for

 

which it was received.

 

     (6) As used in this section, "Michigan craft beverage council"

 

means the Michigan craft beverage council created in section 303.

 

     Sec. 543. (1) Quarterly, on the commission's recommendation,

 

the this state shall pay pursuant to appropriation in the manner

 

prescribed by law to the city, village, or township in which a

 

full-time police department or full-time ordinance enforcement

 

department is maintained or, if a police department or full-time

 

ordinance enforcement department is not maintained, to the county,

 

to be credited to the sheriff's department of the county in which

 

the licensed premises are located, 55% of the amount of the


proceeds of the retailers' license fees and license renewal fees

 

collected in that jurisdiction, for the specific purpose of

 

enforcing this act and the rules promulgated under this act. Forty-

 

one and one-half percent of the amount of the proceeds of

 

retailers' license and license renewal fees collected must be

 

deposited in a special fund to be annually appropriated to the

 

commission for carrying out the licensing and enforcement

 

provisions of this act. Any unencumbered or uncommitted money in

 

the special fund must revert to the general fund of this state 12

 

months after the end of each fiscal year in which the money was

 

collected. The legislature shall appropriate 3-1/2% of the amount

 

of the proceeds of retailers' license and license renewal fees

 

collected to be credited to a special fund in the state treasury

 

for the purposes of promoting and sustaining programs for the

 

prevention, rehabilitation, care, and treatment of alcoholics. This

 

subsection does not apply to retail license fees collected for

 

railroad or Pullman cars, watercraft, aircraft, or wine auctions or

 

to the transfer fees provided in section 529.

 

     (2) All license and license renewal fees, other than retail

 

license and license renewal fees and wholesale vendor license and

 

license renewal fees, must be credited to the grape and wine

 

industry Michigan craft beverage council fund created in section

 

303, to be used as provided in section 303. Money credited to the

 

grape and wine industry council must not revert to the general fund

 

at the close of the fiscal year, but must remain in the account to

 

which it was credited to be used as provided in section 303.303a.

 

On the effective date of the 2018 amendatory act that amended this


section, any money in the former grape and wine industry council

 

account is transferred to the Michigan craft beverage council fund.

 

     (3) All retail license fees collected for railroad or Pullman

 

cars, watercraft, or aircraft and the transfer fees provided in

 

section 529 must be deposited in the special fund created in

 

subsection (1) for carrying out the licensing and enforcement

 

provisions of this act.

 

     (4) The license fee enhancement imposed for licenses issued

 

under section 531(3) and (4) must be deposited into a special fund

 

to be annually appropriated to the commission for enforcement and

 

other related projects determined appropriate by the commission.

 

The money representing that amount of the license fees for

 

identical licenses not issued under section 531(3) and (4) must be

 

allocated and appropriated under subsection (1).

 

     (5) The license fee imposed on direct shipper licenses and any

 

violation fines imposed by the commission must be deposited into

 

the direct shipper enforcement revolving fund. The direct shipper

 

enforcement revolving fund is created within the state treasury.

 

The state treasurer shall direct the investment of the fund. The

 

state treasurer shall credit to the fund interest and earnings from

 

fund investments. Money in the fund at the close of the fiscal year

 

must remain in the fund and must not lapse to the general fund. The

 

commission shall expend money from the fund, on appropriation, only

 

for enforcement of the provisions of section 203 and related

 

projects.

 

     (6) One hundred percent of the wine auction license fee

 

imposed in section 525(1)(aa) must be deposited into the general


fund.

 

     (7) Notwithstanding any other provision of this section, the

 

additional $160.00 license fee imposed on a licensee selling

 

alcoholic liquor between the hours of 7 a.m. on Sunday and 12 noon

 

on Sunday is allocated to the general fund.

 

     (8) Wholesale vendor license fees and license renewal fees

 

must be deposited into the liquor control enforcement and license

 

investigation revolving fund created under subsection (9).

 

     (9) The liquor control enforcement and license investigation

 

revolving fund is created within the state treasury. The state

 

treasurer shall direct the investment of the fund. The state

 

treasurer shall credit to the fund interest and earnings from fund

 

investments. Money in the fund at the close of the fiscal year must

 

remain in the fund and must not lapse to the general fund. The

 

commission shall expend money from the fund, on appropriation, only

 

for enforcement of this act and the rules promulgated under this

 

act and for license investigations. The commission shall not use

 

more than 35% of the money appropriated to the fund under this

 

subsection to carry out the licensing provisions of this act.

 

     (10) As used in this section, "license fee enhancement" means

 

the money representing the difference between the license fee

 

imposed for a license under section 525(1) and the additional

 

amount imposed for resort and resort economic development licenses

 

under section 525(2).

 

     Enacting section 1. This amendatory act takes effect October

 

1, 2018.

 

     Enacting section 2. This amendatory act does not take effect


unless House Bill No. 4667 of the 99th Legislature is enacted into

 

law.