Bill Text: MI HB5056 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Liquor; licenses; certain fees; increase, and allow for expanded hours of operation for licensees. Amends secs. 525, 543 & 1114 of 1998 PA 58 (MCL 436.1525 et seq.) & adds secs. 1116 & 1117.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2009-10-08 - Referred To Second Reading [HB5056 Detail]
Download: Michigan-2009-HB5056-Introduced.html
HOUSE BILL No. 5056
June 9, 2009, Introduced by Rep. Hammel and referred to the Committee on Appropriations.
A bill to amend 1998 PA 58, entitled
"Michigan liquor control code of 1998,"
by amending sections 525, 543, and 1114 (MCL 436.1525, 436.1543,
and 436.2114), section 525 as amended by 2008 PA 218, section 543
as amended by 2005 PA 269, and section 1114 as added by 2004 PA
134, and by adding sections 1116 and 1117.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 525. (1) Except as otherwise provided for in this
section, the following license and permit 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 $200.00 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 $200.00 and a maximum
fee
of $500.00 $1,000.00 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
$200.00 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 $300.00 per year, and an additional fee of $3.00
$6.00 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
$500.00 and, for all bedrooms in excess of 20, $1.00 $2.00
for
each additional bedroom, but not more than $500.00 $1,000.00.
(m) Hotels of class B selling beer, wine, mixed spirit drink,
and
spirits, a minimum fee of $600.00 $1,200.00 and, for all
bedrooms
in excess of 20, $3.00 $6.00
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 $700.00.
(n)
Taverns, selling beer and wine, $250.00 $500.00.
(o) Class C license selling beer, wine, mixed spirit drink,
and
spirits, $600.00 $1,200.00. If a class C licensee sells beer,
wine, mixed spirit drink, and spirits in more than 1 bar, a fee of
$350.00
$700.00 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 $200.00
shall be paid for each additional bar.
(p) Clubs selling beer, wine, mixed spirit drink, and spirits,
$300.00
$600.00 for clubs having 150 or fewer duly accredited
members
and $1.00 $2.00 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 $1,500.00
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
$1,200.00.
(t) Brandy manufacturer, $100.00.
(u) Mixed spirit drink manufacturer, $100.00.
(v) Brewpub, $100.00.
(w)
Class G-1, $1,000.00 $2,000.00.
(x) Class G-2, $500.00.
(y)
Motorsports event license, $250.00 $500.00.
(z) Small distiller, $100.00.
(aa) Late night permit, $1,500.00.
(bb) Sunday morning permit, $1,500.00.
(2) The fees provided in this act for the various types of
licenses and permits shall not be prorated for a portion of the
effective period of the license or permit. 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 or permit
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 or permit
and does not confer eligibility upon an applicant determined
otherwise ineligible for issuance of a license or permit. 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 or
permit within the time required by this section, the commission
shall
return the license or permit fee and shall reduce the license
fee for the applicant's next renewal application, if any, by 15%.
The failure to issue a license or permit 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 or permit 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 or permit
within the 90-day time period and the amount of money returned to
licensees or permittees under subsection (4).
(6) As used in this section, "completed application" means an
application complete on its face and submitted with any applicable
licensing or permit 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.
543. (1) Quarterly, Except
for 50% of the revenue
collected pursuant to section 525(1)(j), (k), (l), (m), (n), (o),
(p), (w), and (y), and 100% of the revenue collected pursuant to
section 525(1)(g), (i), (s), (aa), and (bb), and transfer fees
provided in section 529, quarterly, upon recommendation of the
commission, the state shall pay pursuant to appropriation in the
manner prescribed by law to the city, village, or township in which
a full-time police department or full-time ordinance enforcement
department is maintained or, if a police department or full-time
ordinance enforcement department is not maintained, to the county,
to be credited to the sheriff's department of the county in which
the licensed premises are located, 55% of the amount of the
proceeds of the retailers' license fees and license renewal fees
collected in that jurisdiction, for the specific purpose of
enforcing
this act and the rules promulgated under this act. Forty-
one
and one-half percent Except
as otherwise provided in this
subsection, 41-1/2% of the amount of the proceeds of retailers'
license and license renewal fees collected shall be deposited in a
special fund to be annually appropriated to the commission for
carrying out the licensing and enforcement provisions of this act.
Any
unencumbered or uncommitted money in the special fund shall
revert
to the general fund of the state 12 months after the end of
each
fiscal year in which the funds were collected. The Except as
otherwise provided in this subsection, the legislature shall
appropriate 3-1/2% of the amount of the proceeds of retailers'
license and license renewal fees collected to be credited to a
special fund in the state treasury for the purposes of promoting
and sustaining programs for the prevention, rehabilitation, care,
and
treatment of alcoholics. This subsection does not apply to
retail
license fees collected for railroad or Pullman cars,
watercraft,
or aircraft, or to the transfer fees provided in
section
529.
(2) The balance of the proceeds collected from retailers'
license, license renewal, permit, and transfer fees shall be
deposited in a special fund to be annually appropriated by the
legislature to the commission for carrying out the licensing and
enforcement provisions of this act. Any unencumbered or uncommitted
money in the special fund shall revert to the general fund of the
state at the end of each fiscal year in which the funds were
collected.
(3) (2)
All license and license renewal
fees, other than
retail
license, and license renewal, permit, and transfer fees,
shall be credited to the grape and wine industry council created in
section 303, to be used as provided in section 303. Money credited
to the grape and wine industry council shall not revert to the
state general fund at the close of the fiscal year, but shall
remain in the account to which it was credited to be used as
provided in section 303.
(3)
All retail license fees collected for railroad or Pullman
cars,
watercraft, or aircraft, and the transfer fees provided in
section
529 shall be deposited in the special fund created in
subsection
(1) for carrying out the licensing and enforcement
provisions
of this act.
(4) The license fee enhancement imposed for licenses issued
under section 531(3) and (4) shall be deposited into a special fund
to be annually appropriated to the commission for enforcement and
other related projects determined appropriate by the commission.
The money representing that amount of the license fees for
identical licenses not issued under section 531(3) and (4) shall be
allocated and appropriated under subsection (1).
(5) The license fee imposed on direct shipper licenses and any
violation fines imposed by the commission shall be deposited into
the direct shipper enforcement revolving fund. The direct shipper
enforcement revolving fund is created within the state treasury.
The state treasurer shall direct the investment of the fund. The
state treasurer shall credit to the fund interest and earnings from
fund investments. Money in the fund at the close of the fiscal year
shall remain in the fund and shall not lapse to the general fund.
The department of energy, labor, and economic growth is considered
the administrator of the fund for audit purposes. The commission
shall expend money from the fund, upon appropriation, only for
enforcement of the provisions of section 203 and related projects.
(6) As used in this section, "license fee enhancement" means
the money representing the difference between the license fee
imposed for a license under section 525(1) and the additional
amount imposed for resort and resort economic development licenses
under section 525(2).
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 late night
and Sunday morning permits issued under sections 1116 and 1117.
Sec. 1116. (1) Notwithstanding R 436.1403 and R 436.1503 of
the Michigan administrative code and except as otherwise provided
in subsections (3) and (4) and this chapter, an on-premises or off-
premises licensee, or both, may sell or furnish alcoholic liquor
from 2 a.m. until 4 a.m., EST, if that licensee holds a late night
permit issued under this section by the commission. A county, city,
village, or township may prohibit the issuance of a late night
permit to only on-premises or only off-premises licensees or may
completely prohibit the issuance of a late night permit to any
licensees.
(2) An on-premises or off-premises licensee, or both, desiring
to sell or furnish alcoholic liquor from 2 a.m. until 4 a.m., EST,
shall apply to the commission for a late night permit and pay the
additional fee described in section 525 for each application. Such
a permit is an addendum to each specific on-premises or off-
premises license. Subject to the licensing qualifications in this
act and rules promulgated under this act, the commission shall
issue a late night permit to an applicant not prohibited under the
circumstances described in subsection (3) and shall limit the
issuance of a late night permit to only those applicants located
within the area of an entertainment district as described in
subsection (4) or as described in subsection (5). The commission
shall limit the issuance to only 1 or both types of late night
permits authorized by the resolution passed under subsection (4).
(3) A late night permit does not authorize the serving of
alcoholic liquor in contravention of any of the following:
(a) Section 1111 when a county, city, village, or township has
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 on
Sunday.
(b) Section 1113 when a county has not 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 on
Sunday.
(c) A resolution duly passed by a city, village, or township
prohibiting the issuance of a late night permit within the local
unit of government.
(4) A city, village, or township, by resolution duly passed by
the governing body of the city, village, or township, may establish
1 or more entertainment districts within its jurisdiction. The
resolution shall clearly indicate whether the city, village, or
township is authorizing the issuance of late night permits for on-
premises licensees only, off-premises licensees only, or both. The
commission shall only issue a late night permit to an applicant
meeting the qualifications described in subsections (1) and (2) who
can demonstrate inclusion within an entertainment district
established under this subsection. Passage of such a resolution by
the city, village, or township confers eligibility for issuance of
such a permit to all licensees within the entertainment district
that are determined eligible by the commission.
(5) 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 late night
permit. Under such circumstances, the commission shall issue a
permit to a person submitting a completed application and the
appropriate additional fee as described in section 525 for each
application. If the commission determines that the applicant is
eligible, the commission shall issue the late night permit.
(6) The issuance of a late night permit under this section
only allows the permit holder to sell, give away, or furnish the
type of alcoholic liquor authorized by its license or licenses and
is subject to any prohibitions enacted by a local unit of
government under section 1111 or 1113. Consumption of alcoholic
liquor may continue on the licensed premises until 4:30 a.m. for
on-premises licensees that have obtained a late night permit.
Sec. 1117. (1) Notwithstanding R 436.1403 and R 436.1503 of
the Michigan administrative code and except as otherwise provided
in subsections (3) and (4) 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 county, city, village, or township may prohibit
the issuance of a Sunday morning permit to only on-premises or only
off-premises licensees or may completely prohibit the issuance of a
Sunday morning permit to any licensees.
(2) An on-premises or off-premises licensee, or both, desiring
to sell or furnish alcoholic liquor on Sunday from 7 a.m. until
noon, EST, shall apply to the commission for a Sunday morning
permit and pay the additional fee described in section 525 for each
application. Such a permit is an addendum to each specific on-
premises or off-premises license. 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)
and shall limit the issuance of a Sunday morning permit to only
those applicants located within the area of an entertainment
district as described in subsection (4) or as described in
subsection (5). The commission shall limit the issuance to only 1
or both types of Sunday morning permits authorized by the
resolution passed under subsection (4).
(3) The commission shall not issue a Sunday morning permit to
an on-premises or off-premises licensee, or both, located within
any of the following:
(a) A county, city, village, or township that prohibits the
sale of beer and wine for consumption on and off the licensed
premises between the hours of 2 a.m. and 12 midnight, EST, on
Sunday pursuant to section 1111.
(b) A county that has not authorized the sale of spirits and
mixed spirit drink for consumption on or off the licensed premises,
or both, between 2 a.m. and 12 midnight, on Sunday pursuant to
section 1113.
(c) A city, village, or township that has prohibited the
issuance of a Sunday morning permit to an off-premises or on-
premises licensee, or both, by resolution duly passed by the local
unit of government.
(4) A city, village or township, by resolution duly passed by
the governing body of the city, village, or township, may establish
1 or more entertainment districts within its jurisdiction. The
resolution shall clearly indicate whether the city, village, or
township is authorizing the issuance of Sunday morning permits for
on-premises licensees only, off-premises licensees only, or both.
The commission shall only issue a Sunday morning permit to an
applicant meeting the qualifications described in subsections (1)
and (2) who can demonstrate inclusion within an entertainment
district established under this subsection. Passage of such a
resolution by the city, village, or township confers eligibility
for issuance of such a permit to all licensees within the
entertainment district that are determined eligible by the
commission.
(5) 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. Under such circumstances, the commission shall issue a
permit to a person submitting a completed application and the
appropriate additional fee as described in section 525 for each
application. If the commission determines that the applicant is
eligible, the commission shall issue the Sunday morning permit.
(6) 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 or licenses.
