May 1, 2008, Introduced by Reps. Farrah, Sak, Byrnes, Johnson, Ward, Warren, Gillard, Horn, Griffin, Accavitti, Simpson, Cheeks and Tobocman 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, 1111, and 1114 (MCL 436.1525, 436.2111,
and 436.2114), section 525 as amended by 2006 PA 539 and section
1114 as added by 2004 PA 134, and by adding section 1116.
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) Sunday morning permit, $250.00.
(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. 1111. (1) The sale of beer and wine between the hours of
2 a.m. and 12 midnight on Sunday may be prohibited in any county,
city, village, or township by a majority vote of the electors
voting at a regular state election. Not more often than once in
every 4 years, upon the filing of a petition with the county, city,
village, or township clerk, as applicable, requesting the
submission of the question of the Sunday sale of beer and wine, the
clerk shall submit that question to the electors of the county,
city, village, or township at the next regular state election held
in that county, city, village, or township. A petition filed under
this subsection shall be filed not less than 60 days before the
regular state election. A ballot question under this subsection
shall not be submitted more often than once in any 4-year period.
(2) In the case of a county, city, or township, the petition
shall be signed by a number of the registered and qualified
electors of the county, city, or township that is
not less than 35%
8% of the total number of votes cast for all candidates for the
office of secretary of state in that county, city, or township at
the last general election held for that purpose and, in the case of
a village the petition shall be signed by a number of the
registered and qualified electors of the village that is less than
35% 8%
of the total number of votes cast for
all candidates for the
office of president of the village at the last village election
held for that purpose.
(3) The question of the Sunday sale of beer and wine shall be
submitted by ballot in substantially the following form:
"Shall the sale of beer and wine within (the county, city,
village, or township as the case may be) between the hours of 2
a.m. and 12 midnight on Sunday be prohibited?
Yes .........
No .........".
(4) All votes on the question submitted to the electors under
this section shall be taken, counted, and canvassed in the same
manner as votes cast in county, city, village, or township
election, as applicable, are taken, counted, and canvassed. Ballots
shall be furnished by the election commission or similar body of
the respective county, city, village, or township. If a majority of
the electors voting at an election conducted under this section
vote in favor of the question submitted, the sale of beer and wine
within that county, city, village, or township between the hours of
2 a.m. and 12 midnight on Sunday is prohibited.
Sec. 1114. (1) Notwithstanding R 436.1403 and R 436.1503 of
the Michigan administrative code and except as otherwise provided
under this act or 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
and shall not sell, give away, or furnish alcoholic liquor between
the
hours of 2 a.m. and 12 noon, EST, on Sunday. An
(2) Notwithstanding R 436.1403 and R 436.1503 of the Michigan
administrative code and except as otherwise provided under this
act, an on-premises and an off-premises licensee shall not sell,
give away, or furnish spirits between the hours of 2 a.m. and 12
midnight on Sunday, unless issued a Sunday sales permit by the
commission that allows the licensee to sell spirits on Sunday
between the hours of 12 noon, EST, and 12 midnight.
(3) (2)
For purposes of R 436.1403 and R 436.1503 of the
Michigan administrative code, 12 noon on Sunday is considered 12
noon on Sunday, EST, for any licensee located in the central time
zone.
(4) (3)
A reference to the time of day under this act or a
rule of the commission includes daylight savings time, when
observed.
(5) As applicable, this section is subject to any Sunday
morning permits issued under section 1116.
Sec. 1116. (1) Notwithstanding R 436.1403 and R 436.1503 of
the Michigan administrative code and except as otherwise provided
in subsection (3) and this chapter, an on-premises or off-premises
licensee, or both, may sell or furnish alcoholic liquor between the
hours of 7 a.m. and 12 noon, EST, on Sunday if that licensee holds
a Sunday morning permit issued under this section by the
commission. A city, village, or township may prohibit, by
resolution, the issuance of a Sunday morning permit to only on-
premises or only off-premises licensees or may completely prohibit,
by resolution, the issuance of a Sunday morning permit to any
licensees.
(2) Subject to a resolution providing otherwise, an on-
premises or off-premises licensee, or both, desiring to sell or
furnish alcoholic liquor on Sunday from 7 a.m. until 12 noon, EST,
shall apply to the commission for a Sunday morning permit and pay
the additional fee described in section 525 for each application. A
permit issued under this section is an addendum to each specific
on-premises or off-premises license, and a licensee holding more
than 1 license at a specific location shall submit a separate
application and pay the corresponding fee for each permit. Subject
to the licensing qualifications in this act and rules promulgated
under this act, the commission shall issue a Sunday morning permit
to an applicant not prohibited under the circumstances described in
subsection (3).
(3) A Sunday morning permit does not authorize the serving of
alcoholic liquor in contravention of any of the following:
(a) Section 1111 if the county, city, village, or township
where the licensed premises are located prohibits the sale of beer
and wine for consumption on or off licensed premises between the
hours of 2 a.m. and 12 midnight, EST, on Sunday.
(b) Section 1113 if the county where the licensed premises are
located has not authorized the sale of spirits and mixed spirit
drink for consumption on or off licensed premises, or both, between
2 a.m. and 12 midnight, on Sunday.
(c) A resolution passed by the city, village, or township
where the licensed premises are located prohibiting the issuance of
a Sunday morning permit to off-premises or on-premises licensees,
or both.
(4) A county, city, village, or township that has not
prohibited the sale of beer and wine for consumption on or off the
licensed premises between the hours of 2 a.m. and 12 midnight under
section 1111 or that has authorized the sale of spirits and mixed
spirit drink for consumption on or off the licensed premises
between the hours of 2 a.m. and 12 midnight under section 1113, or
both, is not required to authorize the issuance of a Sunday morning
permit.
(5) The issuance of a Sunday morning permit under this section
only allows the permit holder to sell or furnish the type of
alcoholic liquor authorized by its license.
(6) Notwithstanding subsection (3)(c), the commission shall
issue a Sunday morning permit to a motorsports entertainment
complex applicant holding a license under this act that submits the
appropriate fee and completed application. The permit shall be
limited only to the type of alcoholic liquor and on-premises or
off-premises service, or both, that is authorized by the license
held by the motorsports entertainment complex. As used in this
subsection, "motorsports entertainment complex" means that term as
defined in section 518(1)(a).
Enacting section 1. This amendatory act takes effect 60 days
after the date it is enacted.