March 14, 2006, Introduced by Reps. Jones, Polidori, Brown, Garfield, Robertson, Casperson, Hansen, David Law, Espinoza, Moore, Brandenburg, Taub, Palmer, Drolet, Baxter, Clemente, Dillon, Caul, Nofs, Plakas, Stakoe, Bieda, Green, Huizenga, Booher, Kahn, Gleason, Marleau, LaJoy, Sheen, Sheltrown, Vander Veen, Gaffney, Elsenheimer, Ball, Schuitmaker, Hune, Pavlov, Proos, Newell, Emmons, Pastor, Acciavatti, Farhat, Mortimer and Accavitti 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 522 and 532 (MCL 436.1522 and 436.1532),
section 522 as amended by 1998 PA 416 and section 532 as added by
2001 PA 223.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 522. (1) The commission may issue 1 banquet facility
permit to an on-premise licensee, as an extension of that on-
premise license, for the serving of alcoholic liquor only on the
permitted premises. This section does not limit the number of
banquet facility permits that the commission may issue within any
local unit of government. The banquet facility shall be used only
for scheduled functions and events, shall not have regular meal
service, and shall not be generally open to the public. The holder
of the banquet facility permit shall furnish the alcoholic liquor
and provide servers. The applicant shall provide documentation that
demonstrates a preexisting ownership or lease interest in the
banquet facility or proof of ownership or lease of the club
facility.
(2) The commission shall charge an initial permit issuance fee
and, upon renewal of the permit, a permit renewal fee sufficient to
cover the cost of administering the issuance and renewal of the
permit. The fees shall be $600.00.
(3) The banquet facility permit expires on the same date as
the on-premise license and may be renewed in conjunction with that
license. The commission shall issue the permit only to a licensee
to which the following apply:
(a) The licensee does not have a record of any prior offenses
or violations that the commission considers to be of such a nature
as to pose a threat to the general public if a permit is issued.
(b) The licensee has demonstrated to the commission that at
least 50% of the gross receipts of the on-premise license are
derived from the sale of food and nonalcoholic beverages prepared
for consumption on the licensed premises. This subdivision does not
apply to an applicant holding a club license.
(4) The licensee shall apply on forms provided by the
commission and provide information considered necessary by the
commission to protect the public interest and welfare including,
but not limited to, a diagram of the premises and evidence that the
premises meets local safety, building, and health codes.
(5) The commission shall not issue a banquet facility permit
unless issuance is approved through adoption of a resolution of the
legislative body of the local unit of government within which the
permitted facility is located.
Sec. 532. (1) A club license allows the licensee to sell, for
consumption on the licensed premises, beer, wine, mixed spirit
drink, and spirits only to bona fide members of the club who have
attained the age of 21 years or to lessors of the club facilities
who have attained 21 years of age, if the club holds a banquet
permit issued under section 522. Except as otherwise provided in
subsection (2), the commission shall not issue a license to a club
unless the club has been in existence for a period of not less than
2 years before the application for the license.
(2) Public notice of the intent of the commission to issue the
club license shall be given by publication in some newspaper
published or in general circulation within the local governmental
unit at least 10 days before the issuance of the license. A club
that is a chapter of a national organization that has had a license
for 10 or more years may apply for a license without a waiting
period. Public notice of the commission's intent to renew the club
license is not required.
(3) Except in the case of a club paying a maximum fee, within
10 days after February 1 of each year the club shall file with the
commission a list of names and residences of its bona fide members
and make a similar filing of the name and residence with the
commission within 10 days after the election of an additional bona
fide member. The annual filing shall also include a statement that
the club's annual aggregate membership fees or dues and other
income, exclusive of the proceeds from the sale of alcoholic
liquor, are sufficient to defray the annual rental of its leased or
rented premises or, if the premises are owned by the club, are
sufficient to meet the taxes, insurance, repairs, and interest on a
mortgage on the premises.
(4) The affairs and management of the club shall be conducted
by a board of directors, executive committee, or similar body
chosen by the members. A member, officer, agent, or employee of the
club shall not be paid, or directly or indirectly receive in the
form of salary or other compensation, profits from the disposition
of alcoholic liquor to the club or to the members of the club,
beyond the amount of salary fixed and voted at meetings by the
members or by its directors or other governing body and as reported
by the club to the commission, within 3 months after the meeting.