Bill Text: MI HB4668 | 2015-2016 | 98th Legislature | Chaptered
Bill Title: Insurance; other; waiver of proof of financial responsibility filing requirement for retail licensees; eliminate. Amends sec. 803 of 1998 PA 58 (MCL 436.1803). TIE BAR WITH: HB 4667'15
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2016-05-04 - Assigned Pa 105'16 With Immediate Effect [HB4668 Detail]
Download: Michigan-2015-HB4668-Chaptered.html
Act No. 105
Public Acts of 2016
Approved by the Governor
May 3, 2016
Filed with the Secretary of State
May 3, 2016
EFFECTIVE DATE: August 1, 2016
STATE OF MICHIGAN
98TH LEGISLATURE
REGULAR SESSION OF 2016
Introduced by Rep. LaFontaine
ENROLLED HOUSE BILL No. 4668
AN ACT to amend 1998 PA 58, entitled “An act to create a commission for the control of the alcoholic beverage traffic within this state, and to prescribe its powers, duties, and limitations; to provide for powers and duties for certain state departments and agencies; to impose certain taxes for certain purposes; to provide for the control of the alcoholic liquor traffic within this state and to provide for the power to establish state liquor stores; to prohibit the use of certain devices for the dispensing of alcoholic vapor; to provide for the care and treatment of alcoholics; to provide for the incorporation of farmer cooperative wineries and the granting of certain rights and privileges to those cooperatives; to provide for the licensing and taxation of activities regulated under this act and the disposition of the money received under this act; to prescribe liability for retail licensees under certain circumstances and to require security for that liability; to provide procedures, defenses, and remedies regarding violations of this act; to provide for the enforcement and to prescribe penalties for violations of this act; to provide for allocation of certain funds for certain purposes; to provide for the confiscation and disposition of property seized under this act; to provide referenda under certain circumstances; and to repeal acts and parts of acts,” by amending section 803 (MCL 436.1803).
The People of the State of Michigan enact:
Sec. 803. (1) Before the renewal or approval and granting of a retail license, a retail licensee or applicant for a retail license shall file with the commission proof of financial responsibility providing security for liability under section 801(3) of not less than $50,000.00. The proof of financial responsibility may be in the form of cash, unencumbered securities, a policy or policies of liquor liability insurance, a constant value bond executed by a surety company authorized to do business in this state, or membership in a group self-insurance pool authorized by law that provides security for liability under section 801.
(2) A licensee may furnish proof of financial responsibility that exceeds the requirements of this section.
(3) An insurer under a policy or policies of liquor liability insurance or a surety under a bond shall not be named as a defendant in an action brought against the insured or bonded licensee for liability under section 801. Bankruptcy of the insured does not discharge an insurer or surety under this section from liability. Insurance policies and bonds issued for purposes under this section shall continue from year to year unless sooner canceled by the insurer.
(4) An insured retail licensee shall not cancel a liquor liability insurance policy except upon 30 days’ prior written notice to the commission and unless new proof of financial responsibility complying with this section is procured by the retail licensee and delivered to the commission before the expiration of the 30-day period. The commission shall revoke the license of a retail licensee that violates this subsection.
(5) This section does not apply to a special licensee or applicant for a special license.
(6) The commission shall promulgate rules under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, to implement and enforce this section.
Enacting section 1. This amendatory act takes effect 90 days after the date it is enacted into law.
Enacting section 2. This amendatory act does not take effect unless House Bill No. 4667 of the 98th Legislature is enacted into law.
This act is ordered to take immediate effect.
Clerk of the House of Representatives
Secretary of the Senate
Approved
Governor
