October 6, 2004, Introduced by Senator ALLEN and referred to the Committee on Economic Development, Small Business and Regulatory Reform.
A bill to amend 1998 PA 58, entitled
"Michigan liquor control code of 1998,"
by amending section 521 (MCL 436.1521), as amended by 1998 PA
282.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 521. (1) In
addition to any licenses for the sale of
2 alcoholic liquor for
consumption on the premises that may be
3 available in the local
governmental unit under section 531(1),
4 and the resort and
resort economic development licenses
5 authorized in section
531(2), (3), and (4) Beginning
the
6 effective date of the amendatory act that added section 521a, the
7 commission may shall
not issue not more than 50 any tavern or
8 class C licenses to under
this section. However, those
9 licenses issued under this section on or before the effective
10 date of section 521a shall remain valid and may be renewed if in
1 compliance with this section. The commission shall renew
2 licenses issued under this section before the effective date of
3 the amendatory act that added section 521a for persons who
4 operate businesses that meet all of the following conditions:
5 (a) The business is a full service restaurant, is open to the
6 public, and prepares food on the premises.
7 (b) The business is open for food service not less than 10
8 hours per day, 5 days a week.
9 (c) At least 50% of the gross receipts of the business are
10 derived from the sale of food for consumption on the premises.
11 For purposes of this subdivision, food does not include beer and
12 wine.
13 (d) The business has dining facilities to seat not less than
14 25 persons.
15 (e) The business is located in a development district with a
16 population of not more than 50,000, in which the authority, after
17 a public hearing, has found that the issuance of the license
18 would prevent further deterioration within the development
19 district and promote economic growth within the development
20 district. The
commission shall not issue the license unless the
21 local unit of
government within which the authority is located,
22 after holding a public
hearing, passes a resolution concurring in
23 the findings of the
authority.
24 (2) The individual
signing the application for the license
25 shall state and
demonstrate that the applicant attempted to
26 secure an appropriate
on-premise escrowed license or quota
27 license issued under
section 531 and that, to the best of his or
1 her knowledge, an
on-premise license or quota license issued
2 under section 531 is
not readily available within the local unit
3 of government in which
the applicant proposes to operate.
4 (2) (3) If
in any licensing year the sale of food for
5 consumption on the premises of the business represents less than
6 50% of the gross receipts for the business, the commission, after
7 due notice and proper hearing, shall revoke the license issued
8 under subsection (1).
9 (4) Not more than
1 license shall be issued under subsection
10 (1) to any individual,
partnership, limited partnership, limited
11 liability company,
corporation, or any combination of any of the
12 above, including
stockholders, general partners, or limited
13 partners.
14 (3) A license issued under this section is transferable as to
15 ownership or location only within the development district.
16 (4) (5) The
commission shall not issue a specially
17 designated merchant license, specially designated distributor
18 license, or any other license that allows the sale of alcoholic
19 liquor for consumption off the premises in conjunction with a
20 license issued under subsection
(1) this section or at the
21 premises for which a
license has been issued under subsection
22 (1) this section.
23 (6) The
commission shall not issue a license under this
24 section if the local
governmental unit within which the
25 development district
is located has not issued all appropriate
26 on-premise licenses
available under section 531(1) or if an
27 appropriate on-premise
escrowed license is readily available in
1 any local unit of
government in which the development district is
2 located. The commission
shall not issue more than 2 licenses
3 authorized under this
section in any city or municipality with a
4 population greater
than 50,000. If an applicant's proposed
5 location is within
more than 1 development district, the
6 applicant shall obtain
the approval of both or all of the
7 applicable local units
of government or development districts.
8 (7) The commission
may issue the licenses under this section
9 without regard to the
order in which the applications for the
10 licenses are received.
11 (8) The commission
shall annually report to the legislature
12 the names of the
businesses issued licenses under this section
13 and their locations.
14 (5) (9) As
used in this section, : (a) "Development
15 "development district" means any of the following:
16 (a) (i) An
authority district established under the tax
17 increment finance authority act, 1980 PA 450, MCL 125.1801 to
18 125.1830.
19 (b) (ii) An
authority district established under the local
20 development financing act, 1986 PA 281, MCL 125.2151 to
21 125.2174.
22 (c) (iii) A
downtown district established under 1975 PA
23 197, MCL 125.1651 to 125.1681.
24 (d) (iv) A
principal shopping district established under
25 1961 PA 120, MCL 125.981
to 125.987 125.990m, before January 1,
26 1996.
27 (b)
"Escrowed license" means a license in which the rights
1 of the licensee in the
license or to the renewal of the license
2 are still in existence
and are subject to renewal and activation
3 in the manner provided
for in R 436.1107 of the Michigan
4 administrative code.
5 (c) "Readily
available" means available under a standard of
6 economic feasibility,
as applied to the specific circumstances of
7 the applicant, that
includes but is not limited to the
8 following:
9 (i) The fair market value of the license, if
determinable.
10 (ii) The size and scope of the proposed operation.
11 (iii) The existence of mandatory contractual restrictions
or
12 inclusions attached to
the sale of the license.
13 Enacting section 1. This amendatory act does not take
14 effect unless Senate Bill No. 1445
15 of the 92nd Legislature is enacted into
16 law.