December 8, 2011, Introduced by Senators ROCCA, JONES, BIEDA, KOWALL, CASWELL, NOFS, GREEN, MARLEAU, ROBERTSON, WARREN, SCHUITMAKER, JANSEN, MEEKHOF, HILDENBRAND and HANSEN and referred to the Committee on Regulatory Reform.
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
10 license unless the applicant or transferee offers proof
1 acceptable to the commission that he or she has employed or has
2 present on the licensed premises, at a minimum, supervisory
3 personnel on each shift and during all hours in which alcoholic
4 liquor is served who have successfully completed a server
5 training program as further described in section 906. The
6 commission may consider an individual enrolled and actively
7 participating in a server training program as having successfully
8 completed the program for such the time as the
individual is
9 participating. The commission may allow an applicant or a
10 conditionally approved licensee at least 180 days, or more upon a
11 showing of good cause, to meet the minimum personnel training
12 requirements of this subsection. The commission may suspend the
13 license of a conditionally approved licensee for failure to if
14 that licensee does not comply with this subsection. The
15 commission may waive the server training requirements of this
16 subsection on the basis of either of the following circumstances:
17 (a) The licensee's responsible operating experience or
18 training.
19 (b) The person's demonstration of an acceptable level of
20 responsible operation either as a licensee during the preceding 3
21 years or as a manager with substantial experience in serving
22 alcoholic liquor.
23 (2) A full-year license issued by the commission shall
24 expire on April 30 following the date of issuance or the date
25 fixed by the commission. A license issued under this act shall be
26 construed as is a contract between the commission and the
27 licensee and shall be signed by both parties. If a licensee dies,
1 the commission may approve the operation of the establishment by
2 a personal representative or independent personal representative
3 duly appointed by a court of competent jurisdiction, pending the
4 settlement of the estate of the deceased licensee. The commission
5 may approve a receiver or trustee appointed by a court of
6 competent jurisdiction to operate the licensed establishment of a
7 licensee. The commission may grant a part-year license for a
8 proportionate part of the license fee specified in section 525.
9 In a resort area the commission shall grant a license for a
10 period of time as short as 3 months. A license may be transferred
11 with the consent of the commission. A class C or specially
12 designated distributor license obtained in a manner other than by
13 transfer shall not be transferred within 3 years after its
14 issuance except under circumstances where the licensee clearly
15 and convincingly demonstrates that unusual hardship will result
16 if the transfer does not receive the consent of the commission.
17 An application for a license to sell alcoholic liquor for
18 consumption on the premises, except in a city having a population
19 of 750,000 or more, shall be approved by the local legislative
20 body in which the applicant's place of business is located before
21 the license is granted by the commission, except that in the case
22 of an application for renewal of an existing license, if an
23 objection to a renewal has not been filed with the commission by
24 the local legislative body not less than 30 days before the date
25 of expiration of the license, the approval of the local
26 legislative body shall is
not be required. The commission
shall
27 provide the local legislative body and the local chief of police
1 with the name, home and business addresses, and home and business
2 phone numbers to accomplish the local legislative reviews of new
3 and transferred license applications required by this subsection.
4 Upon request of the local legislative body after due notice and
5 proper hearing by the local legislative body and the commission,
6 the commission shall revoke the license of a licensee granted a
7 license to sell alcoholic liquor for consumption on the premises
8 or any permit held in conjunction with that license.
9 (3) A local legislative body, by resolution, may request
10 that the commission revoke the license of a licensee granted a
11 license to sell alcoholic liquor for consumption off the premises
12 whose place of business is located within the local legislative
13 body's jurisdiction and who that has been determined pursuant
to
14 in commission violation hearings to have sold or furnished
15 alcoholic liquor, on at least 3 separate occasions in a single
16 calendar year, consecutive
12-month period, to a minor if those
17 violations did not involve the use of falsified or fraudulent
18 identification by the minor. If the commission verifies that the
19 licensee who is the subject of the resolution has been found to
20 have committed the violations as prescribed in this subsection,
21 the commission may suspend or revoke the licensee's license and
22 any permit held in conjunction with that license.
23 (4) This act does not prohibit a hotel which that is
or was
24 the holder of a license authorizing the retail sale of alcoholic
25 liquor for consumption on the premises from applying for and
26 receiving under this act any other and different type of license
27 authorizing the retail sale of alcoholic liquor for consumption
1 on the premises, and the application for the license shall not be
2 considered a new application for a license so long as if the
3 total number of public licenses for consumption on the premises
4 does not exceed the authorized total established in this act and
5 the sale of alcoholic liquor is approved by the electors. The
6 commission may divide the state into 3 zones and establish for
7 each zone an anniversary date for renewal of full-year retail
8 licenses in the licensing year. The commission shall promulgate
9 rules pursuant to the administrative procedures act of 1969, 1969
10 PA 306, MCL 24.201 to 24.328, for the effective administration of
11 the renewal of licenses.
12 (5) The commission, with the written approval of the
13 department of agriculture in the case of and rural development
14 for the Michigan state fairgrounds and the Upper Peninsula state
15 fairgrounds, may issue without regard to the quota provision of
16 section 531 a tavern license to a person as concessionaire
17 leasing or renting a portion of either the Upper Peninsula state
18 fairgrounds or the state fairgrounds, or both, to service the
19 licensed area in use for recreational or exhibition purposes
20 other than at the time of the annual Upper Peninsula state fair
21 under section 2 of 1927 PA 89, MCL 285.142. A license issued
22 under this subsection is not transferable.
23 (6) The application for initial licensure or for a transfer
24 of a license shall contain a notice in substantial compliance
25 with the following:
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When purchasing a license, a buyer can be held liable |
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for tax debts incurred by the previous owner. Prior to |
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committing to the purchase of any license or establishment, |
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the buyer should request a tax clearance certificate |
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from the seller that indicates that all taxes have been |
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paid up to the date of issuance. Obtaining sound |
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professional assistance from an attorney or accountant |
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can be helpful to identify and avoid any pitfalls |
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and hidden liabilities when buying even a portion |
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of a business. |
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Sellers can make a request for the tax clearance |
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certificate through the Michigan department of treasury. |