SB-0874, As Passed House, March 27, 2012

SUBSTITUTE FOR

SENATE BILL NO. 874

      A bill to amend 1998 PA 58, entitled

"Michigan liquor control code of 1998,"

by amending section 501 (MCL 436.1501), as amended by 2006 PA

547.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1        Sec. 501. (1) The commission may issue licenses as provided

 2  in this act upon the payment of the fees provided in section 525

 3  and the filing of the bonds required in section 801 or liability

 4  insurance as provided in section 803. The commission shall

 5  provide a notification of the ability of the purchaser or

 6  transferee to obtain a tax clearance certificate, in the manner

 7  as provided for in subsection (6). Subject to section 906(2) and

 8  (3), the commission shall not issue a new on premises license or

 9  transfer more than 50% interest in an existing on premises

 1  license unless the applicant or transferee offers proof

 2  acceptable to the commission that he or she has employed or has

 3  present on the licensed premises, at a minimum, supervisory

 4  personnel on each shift and during all hours in which alcoholic

 5  liquor is served who have successfully completed a server

 6  training program as further described in section 906. The

 7  commission may consider an individual enrolled and actively

 8  participating in a server training program as having successfully

 9  completed the program for such the time as the individual is

10  participating. The commission may allow an applicant or a

11  conditionally approved licensee at least 180 days, or more upon a

12  showing of good cause, to meet the minimum personnel training

13  requirements of this subsection. The commission may suspend the

14  license of a conditionally approved licensee for failure to if

15  that licensee does not comply with this subsection. The

16  commission may waive the server training requirements of this

17  subsection on the basis of either of the following circumstances:

18        (a) The licensee's responsible operating experience or

19  training.

20        (b) The person's demonstration of an acceptable level of

21  responsible operation either as a licensee during the preceding 3

22  years or as a manager with substantial experience in serving

23  alcoholic liquor.

24        (2) A full-year license issued by the commission shall

25  expire on April 30 following the date of issuance or the date

26  fixed by the commission. A license issued under this act shall be

27  construed as is a contract between the commission and the

 1  licensee and shall be signed by both parties. If a licensee dies,

 2  the commission may approve the operation of the establishment by

 3  a personal representative or independent personal representative

 4  duly appointed by a court of competent jurisdiction, pending the

 5  settlement of the estate of the deceased licensee. The commission

 6  may approve a receiver or trustee appointed by a court of

 7  competent jurisdiction to operate the licensed establishment of a

 8  licensee. The commission may grant a part-year license for a

 9  proportionate part of the license fee specified in section 525.

10  In a resort area the commission shall grant a license for a

11  period of time as short as 3 months. A license may be transferred

12  with the consent of the commission. A class C or specially

13  designated distributor license obtained in a manner other than by

14  transfer shall not be transferred within 3 years after its

15  issuance except under circumstances where the licensee clearly

16  and convincingly demonstrates that unusual hardship will result

17  if the transfer does not receive the consent of the commission.

18  An application for a license to sell alcoholic liquor for

19  consumption on the premises, except in a city having a population

20  of 750,000 600,000 or more, shall be approved by the local

21  legislative body in which the applicant's place of business is

22  located before the license is granted by the commission, except

23  that in the case of an application for renewal of an existing

24  license, if an objection to a renewal has not been filed with the

25  commission by the local legislative body not less than 30 days

26  before the date of expiration of the license, the approval of the

27  local legislative body shall is not be required. The commission

 1  shall provide the local legislative body and the local chief of

 2  police with the name, home and business addresses, and home and

 3  business phone numbers to accomplish the local legislative

 4  reviews of new and transferred license applications required by

 5  this subsection. Upon request of the local legislative body after

 6  due notice and proper hearing by the local legislative body and

 7  the commission, the commission shall revoke the license of a

 8  licensee granted a license to sell alcoholic liquor for

 9  consumption on the premises or any permit held in conjunction

10  with that license.

11        (3) A local legislative body, by resolution, may request

12  that the commission revoke the license of a licensee granted a

13  license to sell alcoholic liquor for consumption off the premises

14  whose place of business is located within the local legislative

15  body's jurisdiction and who that has been determined pursuant to

16  in commission violation hearings to have sold or furnished

17  alcoholic liquor, on at least 3 separate occasions in a single

18  calendar year, consecutive 12-month period, to a minor if those

19  violations did not involve the use of falsified or fraudulent

20  identification by the minor. If the commission verifies that the

21  licensee who is the subject of the resolution has been found to

22  have committed the violations as prescribed in this subsection,

23  the commission may suspend or revoke the licensee's license and

24  any permit held in conjunction with that license.

25        (4) This act does not prohibit a hotel which that is or was

26  the holder of a license authorizing the retail sale of alcoholic

27  liquor for consumption on the premises from applying for and

 1  receiving under this act any other and different type of license

 2  authorizing the retail sale of alcoholic liquor for consumption

 3  on the premises, and the application for the license shall not be

 4  considered a new application for a license so long as if the

 5  total number of public licenses for consumption on the premises

 6  does not exceed the authorized total established in this act and

 7  the sale of alcoholic liquor is approved by the electors. The

 8  commission may divide the state into 3 zones and establish for

 9  each zone an anniversary date for renewal of full-year retail

10  licenses in the licensing year. The commission shall promulgate

11  rules pursuant to the administrative procedures act of 1969, 1969

12  PA 306, MCL 24.201 to 24.328, for the effective administration of

13  the renewal of licenses.

14        (5) The commission, with the written approval of the

15  department of agriculture in the case of and rural development

16  for the Michigan state fairgrounds and the Upper Peninsula state

17  fairgrounds, may issue without regard to the quota provision of

18  section 531 a tavern license to a person as concessionaire

19  leasing or renting a portion of either the Upper Peninsula state

20  fairgrounds or the state fairgrounds, or both, to service the

21  licensed area in use for recreational or exhibition purposes

22  other than at the time of the annual Upper Peninsula state fair

23  under section 2 of 1927 PA 89, MCL 285.142. A license issued

24  under this subsection is not transferable.

25        (6) The application for initial licensure or for a transfer

26  of a license shall contain a notice in substantial compliance

27  with the following:

1  When purchasing a license, a buyer can be held liable

2  for tax debts incurred by the previous owner. Prior to

3  committing to the purchase of any license or establishment,

4  the buyer should request a tax clearance certificate

5  from the seller that indicates that all taxes have been

6  paid up to the date of issuance. Obtaining sound

7  professional assistance from an attorney or accountant

8  can be helpful to identify and avoid any pitfalls

9  and hidden liabilities when buying even a portion

10 of a business.

11 Sellers can make a request for the tax clearance

12 certificate through the Michigan department of treasury.