Bill Text: MI SB0296 | 2019-2020 | 100th Legislature | Introduced

---

Bill Title: Liquor; licenses; population quotas on liquor licenses; eliminate. Amends secs. 415, 501, 505, 507, 509, 511, 513, 513a, 514, 514a, 515, 518, 519, 521a, 525, 531 & 533 of 1998 PA 58 (MCL 436.1415 et seq.).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2019-05-07 - Referred To Committee On Regulatory Reform [SB0296 Detail]

Download: Michigan-2019-SB0296-Introduced.html

---

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 296

 

 

May 7, 2019, Introduced by Senator LUCIDO 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 415, 501, 505, 507, 509, 511, 513, 513a,

 

514, 514a, 515, 518, 519, 521a, 525, 531, and 533 (MCL 436.1415,

 

436.1501, 436.1505, 436.1507, 436.1509, 436.1511, 436.1513,

 

436.1513a, 436.1514, 436.1514a, 436.1515, 436.1518, 436.1519,

 

436.1521a, 436.1525, 436.1531, and 436.1533), section 415 as

 

added by 2013 PA 100, section 501 as amended by 2012 PA 82,

 

section 509 as amended by 2018 PA 37, section 513 as amended by

 

2018 PA 479, section 513a as added by 2011 PA 249, section 514 as

 

added by 2000 PA 166, section 514a as added by 2004 PA 194,

 

section 515 as amended by 2004 PA 192, section 518 as amended by

 

2010 PA 279, section 519 as amended by 2018 PA 683, section 521a

 

as amended by 2014 PA 270, section 525 as amended by 2016 PA 434,

 

section 531 as amended by 2014 PA 135, and section 533 as amended

 

by 2018 PA 386.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

 1        Sec. 415. (1) Subject to the limitations provided under this

 

 2  section, the commission may issue a farmer's market permit to a

 

 3  qualified small wine maker. Regardless of the location of the

 

 4  qualified small wine maker, the commission shall only issue 1

 

 5  farmer's market permit in a county where the farmer's market is

 

 6  located for each 1,500 of population or fraction of 1,500 in that

 

 7  county as determined by the last federal decennial census, by a

 

 8  special census pursuant to section 6 of the home rule city act,

 

 9  1909 PA 279, MCL 117.6, or section 7 of the Glenn Steil state

 

10  revenue sharing act of 1971, 1971 PA 140, MCL 141.907, or by the

 

11  latest census and corrections published by the United States

 

12  department of commerce, bureau of the census, whichever is later.

 

13  The holder of a farmer's market permit may conduct tastings and

 

14  sell, at retail at a farmer's market, the wine produced by that

 

15  qualified small wine maker.

 

16        (2) The commission shall charge a fee for a farmer's market

 

17  permit of $25.00 for each farmer's market location. A farmer's

 

18  market permit issued under this section is nontransferable.

 

19  Notwithstanding the quota provision under subsection (1), the The

 

20  commission shall not limit the number of permits a qualified

 

21  small wine maker obtains under this section, but an application

 

22  for a farmer's market permit shall only contain up to 5 separate

 

23  locations at 1 time. Section 503 does not apply to the

 

24  application or issuance of a permit under this section or to the

 

 1  location of a farmer's market where the holder of a farmer's

 

 2  market permit intends to participate under this section.

 

 3        (3) The commission shall not issue a farmer's market permit

 

 4  under this section unless the applicant provides documentation,

 

 5  in a manner prescribed by the commission, that the local police

 

 6  agency where the farmer's market is located and the farmer's

 

 7  market manager at that location have approved the proposed

 

 8  activity.

 

 9        (4) The tastings and sales performed under a farmer's market

 

10  permit shall must be limited to an exclusive area that is well

 

11  defined and clearly marked, in a manner prescribed by the

 

12  commission, that is under the control of the holder of the

 

13  farmer's market permit, as verified by the farmer's market

 

14  manager.

 

15        (5) The tastings and sales performed under a farmer's market

 

16  permit shall must be conducted by employees of the holder of the

 

17  farmer's market permit who have completed a server training

 

18  program as provided for in section 906 and the rules promulgated

 

19  by the commission.

 

20        (6) The wine sold or used for tastings shall must be

 

21  furnished from the stock of the holder of the farmer's market

 

22  permit and removed from the farmer's market premises immediately

 

23  after the farmer's market has concluded.

 

24        (7) Tasting samples provided to a customer shall must not

 

25  exceed 3 servings of not more than 2 ounces of wine in a 24-hour

 

26  period of time.

 

27        (8) The commission shall develop an application for an

 

 1  annual farmer's market permit allowing for licensed activities

 

 2  under this section. A farmer's market manager shall verify on the

 

 3  application that the location listed on the application qualifies

 

 4  as a farmer's market under this section.

 

 5        (9) A wholesaler shall not conduct or participate in any an

 

 6  event allowed by this section.

 

 7        (10) A holder of a farmer's market permit is considered a

 

 8  manufacturer as provided under section 603(15)(a).

 

 9        (11) Two years after the enactment date of the amendatory

 

10  act that added this section, By August 31, 2015, the commission

 

11  shall submit a report to the standing committees of the senate

 

12  and house of representatives concerned with issues involving

 

13  liquor control and the house and senate fiscal agencies assessing

 

14  the continued issuance of farmer's market permits to qualified

 

15  small wine makers. The report shall must include, at a minimum,

 

16  all of the following:

 

17        (a) The number of applications received each year for a

 

18  farmer's market permit.

 

19        (b) The number of farmer's market permit applications

 

20  approved each year.

 

21        (c) The number of farmer's market permit applications

 

22  approved in each county.

 

23        (12) As used in this section:

 

24        (a) "Farmer's market" means a group of farmers or their

 

25  designees or a variety of vendors, as determined by the farmer's

 

26  market manager or his or her designee, who assembles on a

 

27  recurring basis at a defined community sponsored or municipally

 

 1  sponsored location for the purposes of selling, directly to a

 

 2  consumer, food and products produced by those farmers or their

 

 3  representatives.

 

 4        (b) "Farmer's market manager" means the person responsible

 

 5  for enforcing the market policy and for the daily operation and

 

 6  management of the farmer's market.

 

 7        (c) "Farmer's market permit" means an annual permit issued

 

 8  as part of an approved license to a qualified small wine maker

 

 9  allowing that person to conduct tastings and sell at retail, for

 

10  consumption off the licensed premises, at a farmer's market, wine

 

11  produced by the qualified small wine maker.

 

12        (d) "Qualified small wine maker" means a small wine maker,

 

13  or an out-of-state entity that is the substantial equivalent of a

 

14  small wine maker, that manufactures or bottles not more than

 

15  5,000 gallons of wine in 1 calendar year.

 

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

 

17  in this act upon on the payment of the fees provided in section

 

18  525 and the filing of the bonds required in section 801 or

 

19  liability insurance as provided in section 803. The commission

 

20  shall provide a notification of the ability of the purchaser or

 

21  transferee to obtain a tax clearance certificate, as provided in

 

22  subsection (6). Subject to section 906(2) and (3), the commission

 

23  shall not issue a new on premises on-premises license or transfer

 

24  more than 50% interest in an existing on premises on-premises

 

25  license unless the applicant or transferee offers proof

 

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

 

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

 

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

 

 2  liquor is served who have successfully completed a server

 

 3  training program described in section 906. The commission may

 

 4  consider an individual enrolled and actively participating in a

 

 5  server training program as having successfully completed the

 

 6  program for the time the individual is participating. The

 

 7  commission may allow an applicant or a conditionally approved

 

 8  licensee at least 180 days, or more upon on a showing of good

 

 9  cause, to meet the minimum personnel training requirements of

 

10  this subsection. The commission may suspend the license of a

 

11  conditionally approved licensee if that licensee does not comply

 

12  with this subsection. The commission may waive the server

 

13  training requirements of this subsection on the basis of either

 

14  of the following circumstances:

 

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

 

16  training.

 

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

 

18  responsible operation either as a licensee during the preceding 3

 

19  years or as a manager with substantial experience in serving

 

20  alcoholic liquor.

 

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

 

22  expire expires on April 30 following the date of issuance or the

 

23  date fixed by the commission. A license issued under this act is

 

24  a contract between the commission and the licensee and shall must

 

25  be signed by both parties. If a licensee dies, the commission may

 

26  approve the operation of the establishment by a personal

 

27  representative or independent personal representative duly

 

 1  appointed by a court of competent jurisdiction, pending the

 

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

 

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

 

 4  competent jurisdiction to operate the licensed establishment of a

 

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

 

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

 

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

 

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

 

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

 

10  designated distributor license obtained in a manner other than by

 

11  transfer shall must not be transferred within 3 years after its

 

12  issuance except under circumstances where if the licensee clearly

 

13  and convincingly demonstrates that unusual hardship will result

 

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

 

15  An application for a license to sell alcoholic liquor for

 

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

 

17  of 600,000 or more, shall must be approved by the local

 

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

 

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

 

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

 

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

 

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

 

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

 

24  local legislative body is not required. The commission shall

 

25  provide the local legislative body and the local chief of police

 

26  with the name, home and business addresses, and home and business

 

27  phone numbers to accomplish the local legislative reviews of new

 

 1  and transferred license applications required by this subsection.

 

 2  Upon On request of the local legislative body after due notice

 

 3  and proper hearing by the local legislative body and the

 

 4  commission, the commission shall revoke the license of a licensee

 

 5  granted a license to sell alcoholic liquor for consumption on the

 

 6  premises or any permit held in conjunction with that license.

 

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

 

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

 

 9  license to sell alcoholic liquor for consumption off the premises

 

10  whose place of business is located within the local legislative

 

11  body's jurisdiction and that has been determined in commission

 

12  violation hearings to have sold or furnished alcoholic liquor, on

 

13  at least 3 separate occasions in a consecutive 12-month period,

 

14  to a minor if those violations did not involve the use of

 

15  falsified or fraudulent identification by the minor. If the

 

16  commission verifies that the licensee who is the subject of the

 

17  resolution has been found to have committed the violations as

 

18  prescribed in violated this subsection, the commission may

 

19  suspend or revoke the licensee's license and any permit held in

 

20  conjunction with that license.

 

21        (4) This act does not prohibit a hotel that is or was the

 

22  holder of a license authorizing the retail sale of alcoholic

 

23  liquor for consumption on the premises from applying for and

 

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

 

25  authorizing the retail sale of alcoholic liquor for consumption

 

26  on the premises, and the application for the license shall is not

 

27  be considered a new application for a license if the total number

 

 1  of public licenses for consumption on the premises does not

 

 2  exceed the authorized total established in this act and the sale

 

 3  of alcoholic liquor is approved by the electors. The commission

 

 4  may divide the state into 3 zones and establish for each zone an

 

 5  anniversary date for renewal of full-year retail licenses in the

 

 6  licensing year. The commission shall promulgate rules pursuant to

 

 7  under the administrative procedures act of 1969, 1969 PA 306, MCL

 

 8  24.201 to 24.328, for the effective administration of the renewal

 

 9  of licenses.

 

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

 

11  department of agriculture and rural development for the Michigan

 

12  state fairgrounds and the Upper Peninsula state fairgrounds, may

 

13  issue without regard to the quota provision of section 531 a

 

14  tavern license to a person as concessionaire leasing or renting a

 

15  portion of either the Upper Peninsula state fairgrounds or the

 

16  state fairgrounds, or both, to service the licensed area in use

 

17  for recreational or exhibition purposes other than at the time of

 

18  the annual Upper Peninsula state fair under section 2 of 1927 PA

 

19  89, MCL 285.142. A license issued under this subsection is not

 

20  transferable.

 

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

 

22  of a license shall must contain a notice in substantial

 

23  compliance with the following:

 

 

24		When purchasing a license, a buyer can be held liable
25		for tax debts incurred by the previous owner. Prior to
26		committing to the purchase of any license or establishment,

1		the buyer should request a tax clearance certificate
2		from the seller that indicates that all taxes have been
3		paid up to the date of issuance. Obtaining sound
4		professional assistance from an attorney or accountant
5		can be helpful to identify and avoid any pitfalls
6		and hidden liabilities when buying even a portion
7		of a business.
8		Sellers can make a request for the tax clearance
9		certificate through the Michigan department of treasury.

 

 

10        Sec. 505. Notwithstanding section 501, the commission, with

 

11  the approval of the bureau of aeronautics, may issue without

 

12  regard to the quota provision of section 531, not more than 1

 

13  class C or class B hotel license for each state-owned airport

 

14  serviced by scheduled commercial passenger airlines. Such A

 

15  license shall issued under this section is not be transferable.

 

16        Sec. 507. The commission may issue , without regard to the

 

17  quota provisions of section 531, licenses to the owner or lessee,

 

18  or both, to sell alcoholic beverages for consumption on the

 

19  premises of buildings in the passenger terminal complex of each

 

20  publicly owned airport that is served by scheduled commercial

 

21  passenger airlines certificated to enplane and deplane passengers

 

22  on a scheduled basis by the federal aviation agency Federal

 

23  Aviation Agency or the civil aeronautics board. A license issued

 

24  under this section is not transferable.

 

25        Sec. 509. (1) The commission may issue , without regard to

 

26  the quota provisions of section 531, licenses to a commission,

 

27  board, or authority governing or operating a municipal civic

 

 1  center or civic auditorium or to 1 or more of its

 

 2  concessionaires, or to both, if all of the following apply:

 

 3        (a) The center or auditorium is within a city or township

 

 4  having a population of not less than 5,500.

 

 5        (b) The center or auditorium is owned and operated as a

 

 6  municipal enterprise.

 

 7        (c) The legislative body of the municipality first

 

 8  authorizes the operating authority of the civic center or civic

 

 9  auditorium or its concessionaire to apply to the commission for a

 

10  license.

 

11        (2) Licenses issued under this section are not transferable,

 

12  must not be issued to an educational institution or for a

 

13  facility operated in connection with an educational institution,

 

14  and must authorize the sale of alcoholic liquor only in

 

15  connection with a scheduled event at the licensed premises.

 

16        Sec. 511. (1) Notwithstanding section 501, the commission

 

17  may issue the following licenses: without regard to the quota

 

18  provisions of section 531:

 

19        (a) With the approval of the Mackinac Island state park

 

20  commission, not more than 1 class C or class B hotel license for

 

21  each hotel which is located within the Mackinac Island state park

 

22  and is owned by the Mackinac Island state park commission and not

 

23  more than 1 class C license to a concessionaire of the Mackinac

 

24  Island state park commission who operates a restaurant located

 

25  within Fort Mackinac.

 

26        (b) A license for the sale of alcoholic liquor for

 

27  consumption on or off the premises at the Presque Isle harbor

 

 1  marina.

 

 2        (2) A license issued under this section is not transferable

 

 3  as to ownership or location.

 

 4        Sec. 513. (1) The commission may issue to the governing

 

 5  board of a college or university , without regard to the quota

 

 6  provisions of section 531, a license to sell alcoholic liquor for

 

 7  consumption on the premises of a conference center operated by

 

 8  the governing board. Licenses granted under this subsection may

 

 9  be used only for the sale of alcoholic liquor at regularly

 

10  scheduled conference center activities. The sale of alcoholic

 

11  liquor to unscheduled patrons or at unscheduled events is

 

12  prohibited under this subsection.

 

13        (2) Subject to section 531, the commission may issue a

 

14  license to a private entity for the sale of alcoholic liquor for

 

15  consumption on the premises of a hotel located on land owned by

 

16  Central Michigan University if both of the following

 

17  circumstances exist:

 

18        (a) The land is leased or subleased at fair market value to

 

19  a private entity that owns, leases, or subleases the hotel

 

20  building and its fixtures.

 

21        (b) The hotel and land are located within an industrial,

 

22  research, or commercial development park established by the

 

23  governing board of Central Michigan University.

 

24        (3) Subject to section 531, the commission may issue a

 

25  license to a private entity for the sale of alcoholic liquor for

 

26  consumption on the licensed premises of a restaurant located on

 

27  land owned by Wayne State University if both of the following

 

 1  circumstances exist:

 

 2        (a) The land is leased or subleased at fair market value to

 

 3  a private entity that owns, leases, or subleases the licensed

 

 4  premises for the operation of a restaurant.

 

 5        (b) The restaurant is located within an area designated for

 

 6  industrial, research, or commercial development by the governing

 

 7  board of Wayne State University.

 

 8        (4) Subject to section 531, the commission may issue a

 

 9  license to a golf course clubhouse and any adjacent outdoor

 

10  service area owned or operated by a college or university for the

 

11  sale of alcoholic liquor for consumption on the premises of the

 

12  golf course clubhouse and any adjacent outdoor service area.

 

13        (5) Licenses issued under this section are nontransferable,

 

14  and the licensee shall pay the fee required under section 525.

 

15        (6) As used in this section:

 

16        (a) "College" or "university" means a 2-year or 4-year state

 

17  supported institution of higher education.

 

18        (b) "Conference center" means a building or portion of a

 

19  building, other than a student residence hall or student center,

 

20  that has meeting rooms, banquet areas, social halls, overnight

 

21  accommodations, and related facilities for special activities

 

22  scheduled by the college or university, and that, in the judgment

 

23  of the commission, has been regularly used for conferences and

 

24  lodging of guests. All of the following are considered conference

 

25  centers for the purpose of this act:

 

26        (i) The convocation center, the corporate education center,

 

27  Pease Auditorium, and McKenny Hall at Eastern Michigan

 

 1  University.

 

 2        (ii) The Kirkhof and Eberhard Centers at Grand Valley State

 

 3  University.

 

 4        (iii) The Bernhard Center and Heritage Hall Alumni Center at

 

 5  Western Michigan University.

 

 6        (iv) The Wadsworth Center at Michigan Technological

 

 7  University.

 

 8        (v) The West Complex, Fredericks Sculpture Museum, and

 

 9  Alumni Building at Saginaw Valley State University.

 

10        (vi) The Conference Center at Big Rapids, the Applied

 

11  Technology Center at Grand Rapids, and the FSU-GR Conference

 

12  Center of Ferris State University, Grand Rapids Junior College.

 

13        (vii) The Waterman Campus Center at Schoolcraft College.

 

14        (viii) The Mendel Center at Lake Michigan Community College.

 

15        (ix) The McGregor Memorial Conference Center at Wayne State

 

16  University.

 

17        (x) The Michigan State University Management Educational

 

18  Center.

 

19        (xi) The Superior Dome at Northern Michigan University.

 

20        (xii) The Walker Cisler Center at Lake Superior State

 

21  University.

 

22        (xiii) The Marie Prahl College Center at Mott Community

 

23  College.

 

24        (xiv) The West Hall Innovation Center, the Gerald and Frances

 

25  Oleson Center, the Dennos Museum Center, and the Great Lakes

 

26  Campus at Northwestern Michigan College.

 

27        (xv) The Farmhouse at Delta College.

 

 1        (xvi) The Oakland Community College Culinary Studies

 

 2  Institute.

 

 3        (xvii) The Performing Arts and Cultural Center Complex at

 

 4  Macomb Community College.

 

 5        (xviii) Meadow Brook Hall, Golf Pavilion, Oakland Center,

 

 6  O'Rena, and Shotwell-Gustafson Pavilion at Oakland University.

 

 7        Sec. 513a. (1) Beginning October 1, 2011, the The commission

 

 8  may issue to the governing board of a community college or

 

 9  university that is accredited by a nationally recognized

 

10  accrediting agency as determined by the United States secretary

 

11  of education under 20 USC 1099b and that operates an accredited

 

12  culinary or hospitality program , without regard to the quota

 

13  provisions of section 531, a license to sell alcoholic liquor for

 

14  consumption at the community college's or university's culinary

 

15  or hospitality program's location for activities that further the

 

16  community college's or university's community or academic

 

17  mission.

 

18        (2) Except as otherwise provided in subsection (7), the sale

 

19  of a person shall not sell alcoholic liquor to patrons at a

 

20  location other than the community college's or university's

 

21  culinary or hospitality program's location or at activities that

 

22  do not further the community college's or university's community

 

23  or academic mission, including, but not limited to, public and

 

24  private gatherings or meetings that do not have a direct

 

25  correlation to the community college's or university's community

 

26  or academic mission. , is prohibited under this section.

 

27        (3) To obtain a license under this section, a community

 

 1  college or university shall submit both of the following to the

 

 2  commission:

 

 3        (a) Documentation verifying that the community college or

 

 4  university is accredited by a nationally recognized accrediting

 

 5  agency as determined by the United States secretary of education

 

 6  under 20 USC 1099b.

 

 7        (b) Either of the following:

 

 8        (i) Documentation verifying that the community college's or

 

 9  university's culinary or hospitality program is accredited by a

 

10  regionally recognized accrediting body.

 

11        (ii) Within 180 days after the effective date of the

 

12  amendatory act that added this section, a A copy of the community

 

13  college's or university's application to a regionally recognized

 

14  accrediting body for accreditation of its culinary or hospitality

 

15  program.

 

16        (4) The commission shall cancel a license issued under this

 

17  section if, within 2 years of applying for a license under this

 

18  section, the community college's or university's culinary or

 

19  hospitality program is not accredited by a regionally recognized

 

20  accrediting body, unless the community college or university

 

21  demonstrates good cause for an extension of time to obtain

 

22  accreditation by a regionally recognized accrediting body.

 

23        (5) Except as otherwise provided in subsection (7), a liquor

 

24  license issued under this section shall must be granted and

 

25  registered to the community college's or university's culinary or

 

26  hospitality program's location.

 

27        (6) Except as otherwise provided in subsection (7), a liquor

 

 1  license issued under this section shall must be used by the

 

 2  community college or university and not by a private entity.

 

 3        (7) Subject to section 531, the commission may issue a

 

 4  license to a private entity for the sale of alcoholic liquor for

 

 5  consumption on the premises of an outdoor stadium located on land

 

 6  owned by Lake Michigan college and leased to a private entity.

 

 7  The prohibition in section 531(7) on licenses at outdoor stadiums

 

 8  does not apply to a license issued under this subsection.

 

 9        (8) A community college or university that holds a liquor

 

10  license under this section shall not obtain a catering permit

 

11  under section 547.

 

12        (9) As used in this section:

 

13        (a) "Community college" means a community college

 

14  established under the community college act of 1966, 1966 PA 331,

 

15  MCL 389.1 to 389.195.

 

16        (b) "University" means a public university described in

 

17  section 4, 5, or 6 of article VIII of the state constitution of

 

18  1963.

 

19        Sec. 514. (1) Notwithstanding section 501, and subject to

 

20  the quota system under this act, the commission may issue a class

 

21  B hotel license to a hotel and conference center owned and

 

22  operated by a university meeting that meets at least all of the

 

23  following conditions:

 

24        (a) Contains a hotel with at least 150 guest rooms.

 

25        (b) Has a restaurant seating at least 125 guests that serves

 

26  a full-menu breakfast, lunch, and dinner.

 

27        (c) Has over 30,000 square feet of flexible meeting space.

 

 1        (d) Is open year-round to provide services to the public and

 

 2  to serve the mission of the hospitality program.

 

 3        (e) Has a hospitality program providing at least all of the

 

 4  following at the site of the hotel and conference center as part

 

 5  of that program:

 

 6        (i) Student education classrooms.

 

 7        (ii) A working hospitality laboratory setting.

 

 8        (iii) Utilization of rotational interns each semester or

 

 9  equivalent time period.

 

10        (2) In public areas of the hotel and conference center, the

 

11  sale and consumption of alcoholic liquor is limited to table

 

12  service only unless the public areas are reserved for private

 

13  functions.

 

14        (3) As used in this section, "hospitality program" means a

 

15  course of academic study that, at a minimum, is a nationally

 

16  accredited program at baccalaureate and graduate levels in the

 

17  hospitality business that requires at least 120 semester credits

 

18  or the equivalent for completion of the baccalaureate degree and

 

19  that has a teaching and research staff predominated by

 

20  individuals with at least doctoral degrees.

 

21        Sec. 514a. (1) Notwithstanding section 501, and subject to

 

22  the quota system under this act, the commission may issue a class

 

23  B hotel license to a hotel and conference center owned and

 

24  operated by a university that holds a class B hotel license

 

25  issued under section 514 and meets at least all of the following

 

26  conditions:

 

27        (a) Contains a hotel with at least 45 guest rooms.

 

 1        (b) Has a restaurant seating at least 90 guests that serves

 

 2  a full-menu breakfast, lunch, and dinner.

 

 3        (c) Has over 13,000 square feet of flexible meeting space.

 

 4        (d) Is open year-round to provide services to the public and

 

 5  to serve the mission of the hospitality program.

 

 6        (e) Has a hospitality program providing at least 2 of the

 

 7  following at the site of the hotel and conference center as part

 

 8  of that program:

 

 9        (i) Student education classrooms.

 

10        (ii) A working hospitality laboratory setting.

 

11        (iii) Utilization of rotational interns each semester or

 

12  during the summer.

 

13        (2) In public areas of the hotel and conference center, the

 

14  sale and consumption of alcoholic liquor is limited to table

 

15  service only unless the public areas are reserved for private

 

16  functions.

 

17        (3) As used in this section, "hospitality program" means a

 

18  course of academic study that, at a minimum, is a nationally

 

19  accredited program at baccalaureate and graduate levels in the

 

20  hospitality business that requires at least 120 semester credits

 

21  or the equivalent for completion of the baccalaureate degree and

 

22  that has a teaching and research staff predominated by

 

23  individuals with at least doctoral degrees.

 

24        Sec. 515. (1) The commission may issue in a county with a

 

25  population of 1,000,000 or more , without regard to the quota

 

26  provisions of section 531, a class C license for a golf course

 

27  that is owned by a county, city, village, or township and is open

 

 1  to the public.

 

 2        (2) The commission may issue in a county with a population

 

 3  of between 500,000 and 700,000 , without regard to the quota

 

 4  provisions of section 531, 1 tavern license for a golf course

 

 5  that is owned by a city with a population of over 190,000 but

 

 6  under 300,000 and is open to the public.

 

 7        (3) The commission shall not transfer a license issued under

 

 8  this section to another location. If a licensee who receives a

 

 9  license under this section goes out of business, the license

 

10  issued under this section shall must be surrendered to the

 

11  commission.

 

12        Sec. 518. (1) As used in this section:

 

13        (a) "Motorsports entertainment complex" means a closed-

 

14  course motorsports facility and its ancillary grounds that comply

 

15  with all of the following:

 

16        (i) Has at least 1,500 fixed seats for race patrons.

 

17        (ii) Has at least 7 scheduled days of motorsports events each

 

18  calendar year.

 

19        (iii) Serves food and beverages at the facility during

 

20  sanctioned motorsports events each calendar year through

 

21  concession outlets, which may be staffed by individuals who

 

22  represent or are members of 1 or more nonprofit civic or

 

23  charitable organizations that directly financially benefit from

 

24  the concession outlets' sales.

 

25        (iv) Engages in tourism promotion.

 

26        (b) "Motorsports event" means a motorsports race and its

 

27  ancillary activities that have been sanctioned by a sanctioning

 

 1  body.

 

 2        (c) "Owner" means a person who owns and operates a

 

 3  motorsports entertainment complex.

 

 4        (d) "Sanctioning body" means the American motorcycle

 

 5  association Motorcycle Association (AMA); auto racing club Auto

 

 6  Racing Club of America (ARCA); championship auto racing teams

 

 7  Championship Auto Racing Teams (CART); grand Grand American road

 

 8  racing association Road Racing Association (GRAND AM); Indy

 

 9  racing league Racing League (IRL); national association National

 

10  Association for stock car auto racing Stock Car Auto Racing

 

11  (NASCAR); nation hot rod association National Hot Rod Association

 

12  (NHRA); professional sportscar racing Professional Sportscar

 

13  Racing (PSR); sports car club Sports Car Club of America (SCCA);

 

14  United States auto club Auto Club (USAC); Michigan state

 

15  promoters association; State Promoters Association; or any

 

16  successor organization or any other nationally or internationally

 

17  recognized governing body of motorsports that establishes an

 

18  annual schedule of motorsports events and grants rights to

 

19  conduct the events, that has established and administers rules

 

20  and regulations governing all participants involved in the events

 

21  and all persons conducting the events, and that requires certain

 

22  liability assurances, including insurance.

 

23        (2) Notwithstanding the quota provisions of section 531, the

 

24  The commission may issue motorsports event licenses for the sale

 

25  of beer and wine or beer, wine, mixed spirit drink, and spirits

 

26  for consumption on the premises to the owner of a motorsports

 

27  entertainment complex for use during sanctioned motorsports

 

 1  events only. The sale of beer, wine, mixed spirit drink, and

 

 2  spirits at concession outlets or additional locations within the

 

 3  motorsports entertainment complex during motorsports sanctioned

 

 4  events shall is not be considered additional bars for the purpose

 

 5  of determining a license fee pursuant to under section 525(1)(o).

 

 6  An applicant for a license under this section that elects to sell

 

 7  beer and wine only shall pay to the commission a license fee of

 

 8  $250.00. An applicant for a license under this section that

 

 9  elects to sell beer, wine, mixed spirit drink, and spirits shall

 

10  pay to the commission a license fee of $600.00.

 

11        (3) For a period of time not to exceed 7 consecutive days

 

12  during which public access is permitted to a motorsports

 

13  entertainment complex in connection with a motorsports event,

 

14  members of the general public at least 21 years or older may

 

15  bring beer and wine not purchased at the licensed motorsports

 

16  entertainment complex into the motorsports entertainment complex

 

17  and possess and consume that beer and wine. Possession and

 

18  consumption of beer and wine under this section are allowed only

 

19  in portions of the motorsports entertainment complex open to the

 

20  general public that are also part of the licensed premises of a

 

21  retail licensee under both of the following circumstances:

 

22        (a) The licensed premises are located within the motorsports

 

23  entertainment complex.

 

24        (b) The retail licensee holds a license for consumption on

 

25  the licensed premises of the motorsports entertainment complex.

 

26        (4) A person holding a license for the sale of alcoholic

 

27  liquor for consumption on the premises at a motorsports

 

 1  entertainment complex is subject to the civil liability

 

 2  provisions of section 801 if the civil action is brought by or on

 

 3  behalf of an individual who suffers damage or is personally

 

 4  injured by a minor or visibly intoxicated person by reason of the

 

 5  unlawful consumption of alcoholic liquor on the licensed premises

 

 6  by that minor or visibly intoxicated person if the unlawful

 

 7  consumption is proven to be a proximate cause of the damage,

 

 8  injury, or death of the individual, whether the alcoholic liquor

 

 9  was sold or furnished by the licensee or was brought onto the

 

10  licensed premises under subsection (3).

 

11        Sec. 519. (1) Except as otherwise provided in this act, the

 

12  commission shall not issue a license to sell alcoholic liquor,

 

13  either on or off the premises, if the property or establishment

 

14  to be covered by the license is situated in or on state owned

 

15  land.

 

16        (2) Subsection (1) does not apply to a special license that

 

17  has been approved by the governing authority of that state owned

 

18  land.

 

19        (3) Subsection (1) does not apply to any of the following:

 

20        (a) The Michigan state fairgrounds.

 

21        (b) The Upper Peninsula state fairgrounds.

 

22        (c) Armories, air bases, and naval installations owned or

 

23  leased by this state or provided by the federal government by

 

24  either lease, license, or use permit and used by outside parties

 

25  of a nonmilitary or nonstate governmental nature.

 

26        (d) Land that was under lease to a person licensed in the

 

27  calendar year 1954 and on which a licensed establishment is

 

 1  presently located.

 

 2        (e) Land located in the Upper Peninsula that was owned or

 

 3  leased by the federal government, used as a military

 

 4  installation, and transferred to this state before December 31,

 

 5  2000 under 1978 PA 151, MCL 3.551 to 3.561, or 1993 PA 159, MCL

 

 6  3.571 to 3.580. The commission may issue 2 additional licenses

 

 7  under this subdivision for establishments located on this state

 

 8  land without regard to or without an effect on the quota

 

 9  provisions of section 531 in the local governmental unit in which

 

10  the license will be issued subject to the recommendation of the

 

11  authority established under 1978 PA 151, MCL 3.551 to 3.561, or

 

12  1993 PA 159, MCL 3.571 to 3.580. A person issued a license under

 

13  this subdivision may renew the license and transfer ownership of

 

14  the license , without regard to or without an effect on the quota

 

15  provisions of section 531, if title to the property covered by

 

16  the license is transferred from this state to another person or

 

17  to another governmental unit. The commission shall not transfer a

 

18  license issued under this subdivision to another location. Before

 

19  the issuance of a license, and annually thereafter before the

 

20  issuance of a license for a new licensing period, the applicant

 

21  for a license shall submit to the commission a certificate from

 

22  the department or agency charged with control of the land setting

 

23  forth that the issuance of a license is not incompatible with the

 

24  objects and purposes entrusted to that department or agency under

 

25  the law establishing control of the land in the department or

 

26  agency. This subsection does not prohibit the issuance of a

 

27  license under section 513.

 

 1        (f) Property owned by the Michigan state waterways

 

 2  commission and leased to persons under part 791 of the natural

 

 3  resources and environmental protection act, 1994 PA 451, MCL

 

 4  324.79101 to 324.79118. The commission may issue a license under

 

 5  this subdivision to a lessee. without regard to the quota

 

 6  provisions of section 531. However, the commission shall not

 

 7  issue a license under this subdivision without the written

 

 8  approval of the Michigan state waterways commission or its

 

 9  designee. A license issued under this subdivision is not

 

10  transferable as to ownership or location, and, if the licensee

 

11  goes out of business, the license must be surrendered to the

 

12  commission.

 

13        (g) Property owned by the state treasurer of this state when

 

14  acting in the capacity of custodian of the assets of the state

 

15  retirement systems created by the public school employees

 

16  retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1437; the

 

17  state employees' retirement act, 1943 PA 240, MCL 38.1 to 38.69;

 

18  the state police retirement act of 1986, 1986 PA 182, MCL 38.1601

 

19  to 38.1675; 38.1674; and the judges retirement act of 1992, 1992

 

20  PA 234, MCL 38.2101 to 38.2670.

 

21        (h) A building to which all of the following apply:

 

22        (i) The building is owned by this state.

 

23        (ii) The land on which the building is located is owned by

 

24  this state.

 

25        (iii) The building is more than 1,000,000 square feet.

 

26        (iv) Space within the building is leased to a private entity

 

27  to which both of the following apply:

 

 1        (A) In the building, the private entity provides services to

 

 2  the general public.

 

 3        (B) The private entity holds a license to sell alcoholic

 

 4  liquor as provided by this act.

 

 5        Sec. 521a. (1) In order to allow cities, villages, and

 

 6  townships to enhance the quality of life for their residents and

 

 7  visitors to their communities, the commission may issue public

 

 8  on-premises licenses. in addition to those quota licenses allowed

 

 9  in cities, villages, and townships under section 531(1). The

 

10  licenses under this section shall must be issued to businesses

 

11  that meet either of the following conditions:

 

12        (a) Are located in a redevelopment project area meeting the

 

13  criteria described in subsections (3) and (4) and are engaged in

 

14  activities determined by the commission to be related to dining,

 

15  entertainment, or recreation.

 

16        (b) Are located in a development district or area that is

 

17  any of the following:

 

18        (i) An authority district established under the tax increment

 

19  finance authority act, 1980 PA 450, MCL 125.1801 to 125.1830.

 

20        (ii) A development area established under the corridor

 

21  improvement authority act, 2005 PA 280, MCL 125.2871 to 125.2899.

 

22        (iii) A downtown district established under 1975 PA 197, MCL

 

23  125.1651 to 125.1681.

 

24        (iii) (iv) A principal shopping district established under

 

25  1961 PA 120, MCL 125.981 to 125.990n.

 

26        (2) The commission shall not issue a license under

 

27  subsection (1)(a) unless the applicant fulfills the following in

 

 1  relation to the licensed premises:

 

 2        (a) Provides the activity described in subsection (1)(a) not

 

 3  less than 5 days per week.

 

 4        (b) Is open to the public not less than 10 hours per day, 5

 

 5  days per week.

 

 6        (c) Presents verification of redevelopment project area

 

 7  status to the commission that includes the following:

 

 8        (i) A resolution of the governing body of the city, village,

 

 9  or township establishing its status as a redevelopment project

 

10  area.

 

11        (ii) An affidavit from the assessor, as certified by the

 

12  clerk of the city, village, or township, stating the total amount

 

13  of investment in real and personal property within the

 

14  redevelopment project area of the city, village, or township

 

15  during the preceding 3 years.

 

16        (iii) An affidavit from the assessor, as certified by the

 

17  clerk of the city, village, or township, separately stating the

 

18  amount of investment money expended for manufacturing,

 

19  industrial, residential, and commercial development within the

 

20  redevelopment project area of the city, village, or township

 

21  during the preceding 3 years.

 

22        (3) Relative to the licenses issued under subsection (1)(a),

 

23  the amount of commercial investment in the redevelopment project

 

24  area within the city, village, or township shall constitute not

 

25  less than 25% of the total investment in real and personal

 

26  property in that redevelopment project area as evidenced by an

 

27  affidavit of the assessor of the city, village, or township. This

 

 1  subsection does not prevent the city, village, or township from

 

 2  realigning the redevelopment project area in the presentment of

 

 3  verification provided for under subsection (2)(c).

 

 4        (4) In relation to a license issued under subsection (1)(a),

 

 5  an applicant shall must be located in a city, village, or

 

 6  township that meets at least 1 of the investment requirements of

 

 7  subsection (1)(a) during the 3 years preceding the submission of

 

 8  its application. The total investment in real and personal

 

 9  property in the redevelopment project area within the city,

 

10  village, or township over the appropriate time period described

 

11  in this subsection shall must be at least 1 of the following:

 

12        (a) Not less than $50,000,000.00 in cities, villages, or

 

13  townships having a population of 50,000 or more.

 

14        (b) Not less than an amount reflecting $1,000,000.00 per

 

15  1,000 people in cities, villages, or townships having a

 

16  population of less than 50,000.

 

17        (5) The commission may issue a license under subsection

 

18  (1)(a) for each monetary threshold described in subsection (4)(a)

 

19  and (b), and, after reaching the initial threshold, 1 additional

 

20  license for each major fraction thereof of that monetary

 

21  threshold above that original threshold.

 

22        (6) The following apply to a license issued under subsection

 

23  (1)(b):

 

24        (a) The amount expended for the rehabilitation or

 

25  restoration of the building that housed the licensed premises

 

26  shall must be not less than $75,000.00 over a period of the

 

27  preceding 5 years or a commitment for a capital investment of at

 

 1  least that amount in the building that houses the licensed

 

 2  premises, that must be expended before the issuance of the

 

 3  license.

 

 4        (b) The total amount of public and private investment in

 

 5  real and personal property within the development district or

 

 6  area shall must not be less than $200,000.00 over a period of the

 

 7  preceding 5 years as verified to the commission by means of an

 

 8  affidavit from the assessor, as certified by the clerk of the

 

 9  city, village, or township.

 

10        (c) The licensed business is engaged in dining,

 

11  entertainment, or recreation, is open to the general public, and

 

12  has a seating capacity of not less than 25 persons.

 

13        (7) The commission may issue 1 license for each monetary

 

14  threshold described in subsection (6)(b), or for each major

 

15  fraction thereof. of that monetary threshold. The initial

 

16  enhanced license fee for a license issued under this section is

 

17  $20,000.00.

 

18        (8) The commission shall not transfer a license issued under

 

19  this section to another location. If the licensee goes out of

 

20  business, the licensee shall surrender the license to the

 

21  commission. The governing body of the city, village, or township

 

22  may approve another applicant within a redevelopment project area

 

23  or development district or area to replace a licensee who has

 

24  surrendered the license issued under this section provided the

 

25  new applicant's business meets the requirements of this section

 

26  but without regard to subsections (2)(c), (3), and (4) or

 

27  subsection (6)(b).

 

 1        (9) The individual signing the application for the license

 

 2  shall state and demonstrate that the applicant attempted to

 

 3  secure an appropriate on-premises escrowed license or quota

 

 4  license issued under section 531 and that, to the best of his or

 

 5  her knowledge, an on-premises escrowed license or quota license

 

 6  issued under section 531 is not readily available within the

 

 7  county in which the applicant proposes to operate.

 

 8        (10) As used in this section:

 

 9        (a) "Escrowed license" means a license in which the rights

 

10  of the licensee in the license or to the renewal of the license

 

11  are still in existence and are subject to renewal and activation

 

12  in the manner provided for in R 436.1107 of the Michigan

 

13  administrative code.Administrative Code.

 

14        (b) "Readily available" means available under a standard of

 

15  economic feasibility, as applied to the specific circumstances of

 

16  the applicant, that includes, but is not limited to, the

 

17  following:

 

18        (i) The fair market value of the license based on where the

 

19  applicant will be located, if determinable.

 

20        (ii) The size and scope of the proposed operation.

 

21        (iii) The existence of mandatory contractual restrictions or

 

22  inclusions attached to the sale of the license.

 

23        Sec. 525. (1) Except as otherwise provided in this section,

 

24  the following license fees must be paid at the time of filing

 

25  applications or as otherwise provided in this act and are subject

 

26  to allocation under section 543:

 

27        (a) Manufacturers of spirits, not including makers,

 

 1  blenders, and rectifiers of wines containing 21% or less alcohol

 

 2  by volume, $1,000.00.

 

 3        (b) Manufacturers of beer, $50.00 per 1,000 barrels, or

 

 4  fraction of a barrel, production annually with a maximum fee of

 

 5  $1,000.00, and in addition $50.00 for each motor vehicle used in

 

 6  delivery to retail licensees. A fee increase does not apply to a

 

 7  manufacturer of less than 15,000 barrels production per year.

 

 8        (c) Outstate seller of beer, delivering or selling beer in

 

 9  this state, $1,000.00.

 

10        (d) Wine makers, blenders, and rectifiers of wine, including

 

11  makers, blenders, and rectifiers of wines containing 21% or less

 

12  alcohol by volume, $100.00. The small wine maker license fee is

 

13  $25.00.

 

14        (e) Outstate seller of wine, delivering or selling wine in

 

15  this state, $300.00.

 

16        (f) Outstate seller of mixed spirit drink, delivering or

 

17  selling mixed spirit drink in this state, $300.00.

 

18        (g) Dining cars or other railroad or Pullman cars selling

 

19  alcoholic liquor, $100.00 per train.

 

20        (h) Wholesale vendors other than manufacturers of beer,

 

21  $300.00 for the first motor vehicle used in delivery to retail

 

22  licensees and $50.00 for each additional motor vehicle used in

 

23  delivery to retail licensees.

 

24        (i) Watercraft, licensed to carry passengers, selling

 

25  alcoholic liquor, a minimum fee of $100.00 and a maximum fee of

 

26  $500.00 per year computed on the basis of $1.00 per person per

 

27  passenger capacity.

 

 1        (j) Specially designated merchants, for selling beer or wine

 

 2  for consumption off the premises only but not at wholesale,

 

 3  $100.00 for each location regardless of whether the location is

 

 4  part of a system or chain of merchandising.

 

 5        (k) Specially designated distributors licensed by the

 

 6  commission to distribute spirits and mixed spirit drink in the

 

 7  original package for the commission for consumption off the

 

 8  premises, $150.00 per year, and an additional fee of $3.00 for

 

 9  each $1,000.00 or major fraction of that amount in excess of

 

10  $25,000.00 of the total retail value of merchandise purchased

 

11  under each license from the commission during the previous

 

12  calendar year.

 

13        (l) Hotels of class A selling beer and wine, a minimum fee of

 

14  $250.00 and $1.00 for each bedroom in excess of 20, but not more

 

15  than $500.00 total.

 

16        (m) Hotels of class B selling beer, wine, mixed spirit

 

17  drink, and spirits, a minimum fee of $600.00 and $3.00 for each

 

18  bedroom in excess of 20. If a hotel of class B sells beer, wine,

 

19  mixed spirit drink, and spirits in more than 1 public bar, a fee

 

20  of $350.00 must be paid for each additional public bar, other

 

21  than a bedroom.

 

22        (n) Taverns, selling beer and wine, $250.00.

 

23        (o) Class C license selling beer, wine, mixed spirit drink,

 

24  and spirits, $600.00. Subject to section 518(2), if a class C

 

25  licensee sells beer, wine, mixed spirit drink, and spirits in

 

26  more than 1 bar, a fee of $350.00 must be paid for each

 

27  additional bar. In municipally owned or supported facilities in

 

 1  which nonprofit organizations operate concession stands, a fee of

 

 2  $100.00 must be paid for each additional bar.

 

 3        (p) Clubs selling beer, wine, mixed spirit drink, and

 

 4  spirits, $300.00 for clubs having 150 or fewer accredited members

 

 5  and $1.00 for each member in excess of 150. Clubs shall submit a

 

 6  list of members by an affidavit 30 days before the closing of the

 

 7  license year. The affidavit must be used only for determining the

 

 8  license fees to be paid under this subdivision. This subdivision

 

 9  does not prevent the commission from checking a membership list

 

10  and making its own determination from the list or otherwise. The

 

11  list of members and additional members is not required of a club

 

12  paying the maximum fee. The maximum fee must not exceed $750.00

 

13  for any 1 club.

 

14        (q) Warehousers, to be fixed by the commission with a

 

15  minimum fee for each warehouse of $50.00.

 

16        (r) Special licenses, a fee of $50.00 per day, except that

 

17  the fee for the license or permit issued to a bona fide nonprofit

 

18  association, organized and in continuous existence for 1 year

 

19  before the filing of its application, is $25.00. The commission

 

20  shall not grant more than 12 special licenses to any

 

21  organization, including an auxiliary of the organization, in a

 

22  calendar year.

 

23        (s) Airlines licensed to carry passengers in this state that

 

24  sell, offer for sale, provide, or transport alcoholic liquor,

 

25  $600.00.

 

26        (t) Brandy manufacturer, $100.00.

 

27        (u) Mixed spirit drink manufacturer, $100.00.

 

 1        (v) Brewpub, $100.00.

 

 2        (w) Class G-1, $1,000.00.

 

 3        (x) Class G-2, $500.00.

 

 4        (y) Motorsports event license, the amount as described and

 

 5  determined under section 518(2).

 

 6        (z) Small distiller, $100.00.

 

 7        (aa) Wine auction license, $50,000.00.

 

 8        (bb) Nonpublic continuing care retirement center license,

 

 9  $600.00.

 

10        (cc) Conditional license approved under subsection (6) and

 

11  issued under subsection (7), $300.00.

 

12        (2) The fees provided in this act for the various types of

 

13  licenses must not be prorated for a portion of the effective

 

14  period of the license. Notwithstanding subsection (1), the

 

15  initial license fee for a license issued under section 531(3) or

 

16  (4) is $20,000.00. The renewal license fee is the amount

 

17  described in subsection (1). However, the commission shall not

 

18  impose the $20,000.00 initial license fee for applicants whose

 

19  license eligibility was already approved on July 20, 2005.

 

20        (3) If the commission requires an applicant to submit

 

21  fingerprints, the applicant shall have the fingerprints taken by

 

22  a local law enforcement agency, the department of state police,

 

23  or any other person qualified to take fingerprints as determined

 

24  by the department of state police. The applicant shall submit the

 

25  fingerprints and the appropriate state and federal fees, which

 

26  shall must be borne by the applicant, to the department of state

 

27  police and the Federal Bureau of Investigation for a criminal

 

 1  history check. After conducting the criminal history check, the

 

 2  department of state police shall provide the commission with a

 

 3  report of the criminal history check. The report must include

 

 4  criminal history record information concerning the person who is

 

 5  the subject of the criminal history check that is maintained by

 

 6  the department of state police. If a criminal arrest fingerprint

 

 7  card is subsequently submitted to the department of state police

 

 8  and matches against a fingerprint that was submitted under this

 

 9  act and stored in its automated fingerprint identification system

 

10  (AFIS) database, the department of state police shall notify the

 

11  commission.

 

12        (4) Except for a resort or resort economic development

 

13  license issued under section 531(2), (3), (4), or (5) or a

 

14  license issued under section 521a, the commission shall issue an

 

15  initial or renewal license not later than 90 days after the

 

16  applicant files a completed application. The application is

 

17  considered to be received the date the application is received by

 

18  an agency or department of this state. If the commission

 

19  determines that an application is incomplete, the commission

 

20  shall notify the applicant in writing, or make the information

 

21  electronically available, within 30 days after receipt of the

 

22  incomplete application, describing the deficiency and requesting

 

23  the additional information. The determination of the completeness

 

24  of an application is not an approval of the application for the

 

25  license and does not confer eligibility on an applicant

 

26  determined otherwise ineligible for issuance of a license. The

 

27  90-day period is tolled for the following periods under any of

 

 1  the following circumstances:

 

 2        (a) If notice is sent by the commission of a deficiency in

 

 3  the application, until the date all of the requested information

 

 4  is received by the commission.

 

 5        (b) For the time required to complete actions required by a

 

 6  person, other than the applicant or the commission, including,

 

 7  but not limited to, completion of construction or renovation of

 

 8  the licensed premises; mandated inspections by the commission or

 

 9  by any state, local, or federal agency; approval by the

 

10  legislative body of a local unit of government; criminal history

 

11  or criminal record checks; financial or court record checks; or

 

12  other actions mandated by this act or rule or as otherwise

 

13  mandated by law or local ordinance.

 

14        (5) If the commission fails to issue or deny a license

 

15  within the time required by this section, the commission shall

 

16  return the license fee and shall reduce the license fee for the

 

17  applicant's next renewal application, if any, by 15%. The failure

 

18  to issue a license within the time required under this section

 

19  does not allow the commission to otherwise delay the processing

 

20  of the application, and the application, on completion, must be

 

21  placed in sequence with other completed applications received at

 

22  that same time. The commission shall not discriminate against an

 

23  applicant in the processing of the application because the

 

24  license fee was refunded or discounted under this subsection.

 

25        (6) If, in addition to a completed application under this

 

26  section, an applicant submits a separate form requesting a

 

27  conditional license with an acceptable proof of financial

 

 1  responsibility form under section 803, an executed property

 

 2  document, and, for an application to transfer the location of an

 

 3  existing retailer license other than specially designated

 

 4  distributor license, a church or school proximity affidavit on a

 

 5  form prescribed by the commission attesting that the proposed

 

 6  location is not within 500 feet of a church or school building

 

 7  using the method of measurement required under section 503, the

 

 8  commission shall, after considering the arrest and conviction

 

 9  records or previous violation history in the management,

 

10  operation, or ownership of a licensed business, approve or deny a

 

11  conditional license. A conditional license issued under

 

12  subsection (7) must only include any existing permits and

 

13  approvals held in connection with the license, other than permits

 

14  or approvals for which the conditional applicant does not meet

 

15  the requirements in this act or rules promulgated under this act,

 

16  or permits or approvals that the conditional applicant has

 

17  requested to cancel as part of the application that serves as the

 

18  basis for the conditional license. The commission shall not issue

 

19  a new permit with a conditional license issued under subsection

 

20  (7). The following applicants may request a conditional license:

 

21        (a) An applicant seeking to transfer ownership of an

 

22  existing retailer license at the same location to sell alcoholic

 

23  liquor for consumption on or off the premises.

 

24        (b) An applicant seeking to transfer the ownership and

 

25  location of an existing retailer license, other than a specially

 

26  designated distributor license, to sell alcoholic liquor for

 

27  consumption on or off the premises.

 

 1        (c) An applicant seeking a new specially designated merchant

 

 2  license , other than a specially designated merchant license

 

 3  issued under section 533(6), not to be held in conjunction with a

 

 4  license for the sale of alcoholic liquor for consumption on the

 

 5  premises.

 

 6        (7) The commission shall issue a conditional license to

 

 7  applicants approved under subsection (6) within 20 business days

 

 8  after receipt of a completed application and a completed

 

 9  conditional license request form and documentation for a

 

10  conditional license at a single location. The commission may take

 

11  up to 30 business days to issue conditional licenses to approved

 

12  applicants seeking conditional licenses at multiple locations.

 

13  However, for an applicant described under this subsection that is

 

14  seeking a specially designated merchant license under section

 

15  533(7), the commission may take up to 45 business days to issue a

 

16  conditional license. Notwithstanding the applicant's submission

 

17  of a church or school proximity affidavit under subsection (6),

 

18  if the commission determines that a conditional license in

 

19  conjunction with an application to transfer the location of an

 

20  existing retailer license has been issued under this subsection

 

21  at a proposed location that is within 500 feet of a church or

 

22  school building, the commission shall suspend the conditional

 

23  license and notify the church or school of the proposed location

 

24  under the rules promulgated under this act. If the commission

 

25  issues a conditional license under this subsection based on a

 

26  church or school proximity affidavit under subsection (6) without

 

27  knowledge that the representations included in the affidavit are

 

 1  incorrect, this state is not liable to any person for the

 

 2  commission's issuance of the conditional license. The commission

 

 3  may assume without inquiry the existence of the facts contained

 

 4  in the affidavit.

 

 5        (8) A conditional license approved under subsection (6) and

 

 6  issued under subsection (7) is nontransferable and nonrenewable.

 

 7  A conditional licensee is required to comply with the server

 

 8  training requirements in section 501(1) beginning on the date a

 

 9  conditional license is issued under subsection (7) regardless of

 

10  whether the conditional licensee is actively operating under the

 

11  conditional license.

 

12        (9) A conditional license approved under subsection (6) and

 

13  issued under subsection (7) expires when the first of the

 

14  following occurs:

 

15        (a) The commission issues an order of denial of the license

 

16  application that serves as the basis for the conditional license

 

17  and all administrative remedies before the commission have been

 

18  exhausted.

 

19        (b) The commission issues the license under subsection (4)

 

20  for which the applicant submitted the license application that

 

21  serves as the basis for the conditional license.

 

22        (c) The licensee or conditional licensee notifies the

 

23  commission in writing that the initial or conditional application

 

24  should be canceled.

 

25        (d) One year passes after the date the conditional license

 

26  was issued, notwithstanding any suspension of the conditional

 

27  license by the commission.

 

 1        (10) If a conditional licensee fails to maintain acceptable

 

 2  proof of its financial responsibility as required under section

 

 3  803, the commission shall summarily suspend the conditional

 

 4  license under section 92(2) of the administrative procedures act

 

 5  of 1969, 1969 PA 306, MCL 24.292, until the conditional licensee

 

 6  files an acceptable proof of financial responsibility form under

 

 7  section 803. If a conditional license is revoked, the conditional

 

 8  licensee shall not recover from this state or a unit of local

 

 9  government any compensation for property, future income, or

 

10  future economic loss because of the revocation.

 

11        (11) On issuing a conditional license under subsection (7),

 

12  the commission shall, until the conditional license expires under

 

13  subsection (9), place the existing license under subsection (4)

 

14  for which the applicant submitted the application that serves as

 

15  the basis for the conditional license in escrow in compliance

 

16  with R 436.1107 of the Michigan Administrative Code. If the

 

17  conditional license expires under subsection (9), an existing

 

18  licensee may do 1 of the following:

 

19        (a) Request that the commission release the license from

 

20  escrow.

 

21        (b) Keep the license in escrow. The escrow date for

 

22  compliance with R 436.1107 of the Michigan Administrative Code is

 

23  the date the conditional license expires.

 

24        (12) The chair of the commission shall submit a report by

 

25  December 1 of each year to the standing committees and

 

26  appropriations subcommittees of the senate and house of

 

27  representatives concerned with liquor license issues. The chair

 

 1  of the commission shall include all of the following information

 

 2  in the report concerning the preceding fiscal year:

 

 3        (a) The number of initial and renewal applications the

 

 4  commission received and completed within the 90-day time period

 

 5  described in subsection (4).

 

 6        (b) The number of applications denied.

 

 7        (c) The number of applicants not issued a license within the

 

 8  90-day time period and the amount of money returned to licensees

 

 9  under subsection (5).

 

10        (13) As used in this section, "completed application" means

 

11  an application complete on its face and submitted with any

 

12  applicable licensing fees as well as any other information,

 

13  records, approval, security, or similar item required by law or

 

14  rule from a local unit of government, a federal agency, or a

 

15  private entity but not from another department or agency of this

 

16  state.

 

17        Sec. 531. (1) A public license shall not be granted for the

 

18  sale of alcoholic liquor for consumption on the premises in

 

19  excess of 1 license for each 1,500 of population or major

 

20  fraction thereof. An on-premises escrowed license issued under

 

21  this subsection may be transferred, subject to local legislative

 

22  approval under section 501(2), to an applicant whose proposed

 

23  operation is located within any local governmental unit in a

 

24  county in which the escrowed license was located. If the local

 

25  governmental unit within which the former licensee's premises

 

26  were located spans more than 1 county, an escrowed license may be

 

27  transferred, subject to local legislative approval under section

 

 1  501(2), to an applicant whose proposed operation is located

 

 2  within any local governmental unit in either county. If an

 

 3  escrowed license is activated within a local governmental unit

 

 4  other than that local governmental unit within which the escrowed

 

 5  license was originally issued, the commission shall count that

 

 6  activated license against the local governmental unit originally

 

 7  issuing the license. This quota does not bar the right of an

 

 8  existing licensee to renew a license or transfer the license and

 

 9  does not bar the right of an on-premises licensee of any class to

 

10  reclassify to another class of on-premises license in a manner

 

11  not in violation of law or this act, subject to the consent of

 

12  the commission. The upgrading of a license resulting from a

 

13  request under this subsection is subject to approval by the local

 

14  governmental unit having jurisdiction.

 

15        (2) In a resort area, the commission may issue no more than

 

16  550 licenses for a period not to exceed 12 months without regard

 

17  to a limitation because of population and with respect to the

 

18  resort license the commission, by rule, shall define and classify

 

19  resort seasons by months and may issue 1 or more licenses for

 

20  resort seasons without regard to the calendar year or licensing

 

21  year.

 

22        (3) In addition to the resort licenses authorized in

 

23  subsection (2), the commission may issue not more than 5

 

24  additional licenses per year to establishments whose business and

 

25  operation, as determined by the commission, is designed to

 

26  attract and accommodate tourists and visitors to the resort area,

 

27  whose primary purpose is not for the sale of alcoholic liquor,

 

 1  and whose capital investment in real property, leasehold

 

 2  improvement, and fixtures for the premises to be licensed is

 

 3  $75,000.00 or more. Further, the commission shall issue 1 license

 

 4  under this subsection per year to an applicant located in a rural

 

 5  area that has a poverty rate, as defined by the latest decennial

 

 6  census, greater than the statewide average, or that is located in

 

 7  a rural area that has an unemployment rate higher than the

 

 8  statewide average for 3 of the 5 preceding years. In counties

 

 9  having a population of less than 50,000, as determined by the

 

10  last federal decennial census or as determined under subsection

 

11  (11) and subject to subsection (16) in the case of a class A

 

12  hotel or a class B hotel, the commission shall not require the

 

13  establishments to have dining facilities to seat more than 50

 

14  persons. The commission may cancel the license if the resort is

 

15  no longer active or no longer qualifies for the license. Before

 

16  January 16 of each year the commission shall transmit to the

 

17  legislature a report giving details as to all of the following:

 

18        (a) The number of applications received under this

 

19  subsection.

 

20        (b) The number of licenses granted and to whom.

 

21        (c) The number of applications rejected and the reasons they

 

22  were rejected.

 

23        (d) The number of the licenses revoked, suspended, or other

 

24  disciplinary action taken and against whom and the grounds for

 

25  revocation, suspension, or disciplinary action.

 

26        (4) In addition to any licenses for the sale of alcoholic

 

27  liquor for consumption on the premises that may be available in

 

 1  the local governmental unit under subsection (1) and the resort

 

 2  licenses authorized in subsections (2) and (3), the commission

 

 3  may issue not more than 15 resort economic development licenses

 

 4  per year. A person is eligible to apply for a resort economic

 

 5  development license under this subsection upon on submitting an

 

 6  application to the commission and demonstrating all of the

 

 7  following:

 

 8        (a) The establishment's business and operation, as

 

 9  determined by the commission, is designed to attract and

 

10  accommodate tourists and visitors to the resort area.

 

11        (b) The establishment's primary business is not the sale of

 

12  alcoholic liquor.

 

13        (c) The capital investment in real property, leasehold

 

14  improvement, fixtures, and inventory for the premises to be

 

15  licensed is in excess of $1,500,000.00.

 

16        (d) The establishment does not allow or permit casino

 

17  gambling on the premises.

 

18        (5) In governmental units having a population of 50,000 or

 

19  less, as determined by the last federal decennial census or as

 

20  determined under subsection (11) , in which the quota of

 

21  specially designated distributor licenses, as provided by section

 

22  533, has been exhausted, the commission may issue not more than a

 

23  total of 15 additional specially designated distributor licenses

 

24  per year to established merchants whose business and operation,

 

25  as determined by the commission, is designed to attract and

 

26  accommodate tourists and visitors to the resort area. A specially

 

27  designated distributor license issued under this subsection may

 

 1  be issued at a location within 2,640 feet of existing specially

 

 2  designated distributor license locations. A specially designated

 

 3  distributor license issued under this subsection shall does not

 

 4  bar another specially designated distributor licensee from

 

 5  transferring location to within 2,640 feet of that licensed

 

 6  location. A specially designated distributor license issued under

 

 7  section 533 may be located within 2,640 feet of a specially

 

 8  designated distributor license issued under this subsection. The

 

 9  person signing the application for a specially designated

 

10  distributor license under this subsection shall state that he or

 

11  she attempted to secure an escrowed specially designated

 

12  distributor license or quota license and that, to the best of his

 

13  or her knowledge, an escrowed specially designated distributor

 

14  license or quota license is not readily available within the

 

15  county in which the applicant for the specially designated

 

16  distributor license under this subsection proposes to operate.

 

17        (6) In addition to any licenses for the sale of alcoholic

 

18  liquor for consumption on the premises that may be available in

 

19  the local governmental unit under subsection (1), and the resort

 

20  or resort economic development licenses authorized in subsections

 

21  (2), (3), and (4), and notwithstanding section 519, the

 

22  commission may issue not more than 5 additional special purpose

 

23  licenses in any calendar year for the sale of beer and wine for

 

24  consumption on the premises. A The commission may issue a special

 

25  purpose license issued under this subsection shall be issued only

 

26  for events that are to be held from May 1 to September 30, are

 

27  artistic in nature, and that are to be held on the campus of a

 

 1  public university with an enrollment of 30,000 or more students.

 

 2  A special purpose license is valid for 30 days or for the

 

 3  duration of the event for which it is issued, whichever is less.

 

 4  The fee for a special purpose license is $50.00. A special

 

 5  purpose license may be issued only to a corporation that meets

 

 6  all of the following requirements:

 

 7        (a) Is The corporation is a nonprofit corporation organized

 

 8  under the nonprofit corporation act, 1982 PA 162, MCL 450.2101 to

 

 9  450.3192.

 

10        (b) Has The corporation has a board of directors constituted

 

11  of members of whom half are elected by the public university at

 

12  which the event is scheduled and half are elected by the local

 

13  governmental unit.

 

14        (c) Has The corporation has been in continuous existence for

 

15  not less than 6 years.

 

16        (7) Notwithstanding the local legislative body approval

 

17  provision of section 501(2) and notwithstanding the provisions of

 

18  section 519, the commission may issue , without regard to the

 

19  quota provisions of subsection (1) and with the approval of the

 

20  governing board of the university, either a tavern or class C

 

21  license which may be used only for regularly scheduled events at

 

22  a public university's established outdoor program or festival at

 

23  a facility on the campus of a public university having a head

 

24  count enrollment of 10,000 students or more. A The commission may

 

25  issue a license issued under this subsection may only be issued

 

26  to the governing board of a public university, a person that is

 

27  the lessee or concessionaire of the governing board of the

 

 1  university, or both. A license issued under this subsection is

 

 2  not transferable as to ownership or location. Except as otherwise

 

 3  provided in this subsection, a license issued under this

 

 4  subsection may not be issued at an outdoor stadium customarily

 

 5  used for intercollegiate athletic events. A license may be issued

 

 6  at an outdoor stadium customarily used for intercollegiate

 

 7  athletic events for not more than 30 consecutive days to a

 

 8  concessionaire of an entity granted exclusive use of a public

 

 9  university's property in conjunction with a hockey game

 

10  sanctioned by an unincorporated not-for-profit association that

 

11  operates a major professional ice hockey league consisting of

 

12  teams located in Canada and in the United States or in

 

13  conjunction with a professional international soccer match

 

14  between 2 international soccer clubs as part of a tournament

 

15  sanctioned by a not-for-profit association that is the governing

 

16  body for soccer in the United States and organized and promoted

 

17  by a match agent that is licensed by the international governing

 

18  body for soccer if the concessionaire has entered into an

 

19  agreement granting it control of the licensed premises for the

 

20  purposes of complying with this act and rules promulgated under

 

21  this act regarding the sale of alcoholic liquor. A nationally

 

22  televised game between 2 professional hockey teams or 2

 

23  professional international soccer clubs played outdoors is

 

24  considered an established outdoor program for the purposes of

 

25  this subsection. Notwithstanding any provision of this act or any

 

26  rule promulgated under this act, a concessionaire obtaining a

 

27  license under this subsection may share the profits generated

 

 1  from that license with an unincorporated not-for-profit

 

 2  association that operates a major professional ice hockey league

 

 3  consisting of teams located in Canada and in the United States or

 

 4  an affiliated entity under a written contract reviewed by the

 

 5  commission or with a licensed match agent and a promoter that

 

 6  organizes and promotes international soccer matches under a

 

 7  written contract reviewed by the commission. If the established

 

 8  outdoor program is a nationally televised game between 2

 

 9  professional hockey teams or 2 professional international soccer

 

10  clubs, the commission may allow the promotion and advertising of

 

11  alcoholic liquor brands on the campus of a public university

 

12  where a concessionaire has been issued a license under this

 

13  subsection for the duration of the license.

 

14        (8) In issuing a resort or resort economic development

 

15  license under subsection (3), (4), or (5), the commission shall

 

16  consider economic development factors of the area in issuing

 

17  licenses to establishments designed to stimulate and promote the

 

18  resort and tourist industry. The commission shall not transfer a

 

19  resort or resort economic development license issued under

 

20  subsection (3), (4), or (5) to another location. If the licensee

 

21  goes out of business the license shall must be surrendered to the

 

22  commission.

 

23        (9) The limitations and quotas of this section are not

 

24  applicable to issuing a new license to a veteran of the armed

 

25  forces Armed Forces of the United States who was honorably

 

26  discharged or released under honorable conditions from the armed

 

27  forces Armed Forces of the United States and who had by forced

 

 1  sale disposed of a similar license within 90 days before or after

 

 2  entering or while serving in the armed forces Armed Forces of the

 

 3  United States, as a part of the person's preparation for that

 

 4  service if the application for a new license is submitted for the

 

 5  same governmental unit in which the previous license was issued

 

 6  and within 60 days after the discharge of the applicant from the

 

 7  armed forces Armed Forces of the United States.

 

 8        (10) The limitations and quotas of this section are not

 

 9  applicable to issuing a new license or renewing an existing

 

10  license where the property or establishment to be licensed is

 

11  situated in or on land on which an airport owned by a county or

 

12  in which a county has an interest is situated.

 

13        (11) For purposes of implementing this section a special

 

14  state census of a local governmental unit may be taken at the

 

15  expense of the local governmental unit by the federal bureau

 

16  Federal Bureau of census Census or the secretary of state under

 

17  section 6 of the home rule city act, 1909 PA 279, MCL 117.6. The

 

18  special census shall must be initiated by resolution of the

 

19  governing body of the local governmental unit involved. The

 

20  secretary of state may promulgate additional rules necessary for

 

21  implementing this section pursuant to under the administrative

 

22  procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.

 

23        (12) Before granting an approval as required in section

 

24  501(2) for a license to be issued under subsection (2), (3), or

 

25  (4), a local legislative body shall disclose the availability of

 

26  transferable licenses held in escrow for more than 1 licensing

 

27  year within that respective local governmental unit. The local

 

 1  governmental unit shall provide public notice of the meeting to

 

 2  consider the granting of the license by the local governmental

 

 3  unit 2 weeks before the meeting.

 

 4        (13) The person signing the application for an on-premises

 

 5  resort or resort economic development license shall state and

 

 6  verify that he or she attempted to secure an on-premises escrowed

 

 7  license or quota license and that, to the best of his or her

 

 8  knowledge, an on-premises escrowed license or quota license is

 

 9  not readily available within the county in which the applicant

 

10  for the on-premises resort or resort economic development license

 

11  proposes to operate.

 

12        (14) The commission shall not issue an on-premises resort or

 

13  resort economic development license if the county within which

 

14  the resort or resort economic development license applicant

 

15  proposes to operate has not issued all on-premises licenses

 

16  available under subsection (1) or if an on-premises escrowed

 

17  license exists and is readily available within the local

 

18  governmental unit in which the applicant for the on-premises

 

19  resort or resort economic development license proposes to

 

20  operate. The commission may waive the provisions of this

 

21  subsection upon on a showing of good cause.

 

22        (15) The commission shall annually report to the legislature

 

23  the names of the businesses issued licenses under this section

 

24  and their locations.

 

25        (16) The commission shall not require a class A hotel or a

 

26  class B hotel licensed under subsection (2), (3), or (4) to

 

27  provide food service to registered guests or to the public.

 

 1        (17) Subject to the limitation and quotas of in subsection

 

 2  (1) and to local legislative approval under section 501(2), the

 

 3  commission may approve the transfer of ownership and location of

 

 4  an on-premises escrowed license within the same county to a class

 

 5  G-1 or class G-2 license or may approve the reclassification of

 

 6  an existing on-premises license at the location to be licensed to

 

 7  a class G-1 license or to a class G-2 license. , subject to

 

 8  subsection (1). Resort or economic development on-premises

 

 9  licenses created under subsection (3) or (4) may not be issued

 

10  as, or reclassified to, a class G-1 or class G-2 license.

 

11        (18) An escrowed specially designated distributor license

 

12  may be transferred, with the consent of the commission, to an

 

13  applicant whose proposed operation is located within any local

 

14  governmental unit in a county in which the specially designated

 

15  distributor license is located. If the local governmental unit

 

16  within which the escrowed specially designated distributor

 

17  license is located spans more than 1 county, the license may be

 

18  transferred to an applicant whose proposed operation is located

 

19  within any local governmental unit in either county. If the

 

20  specially designated distributor license is activated within a

 

21  local governmental unit other than that local governmental unit

 

22  within which the specially designated distributor license was

 

23  originally issued, the commission shall count that activated

 

24  license against the local governmental unit originally issuing

 

25  the specially designated distributor license.

 

26        (19) Subsection (8) of R 436.1135 of the Michigan

 

27  administrative code Administrative Code does not apply to a

 

 1  transfer under subsection (18).

 

 2        (20) As used in this section:

 

 3        (a) "Escrowed license" means a license in which the rights

 

 4  of the licensee in the license or to the renewal of the license

 

 5  are still in existence and are subject to renewal and activation

 

 6  in the manner provided for in R 436.1107 of the Michigan

 

 7  administrative code.Administrative Code.

 

 8        (b) "Readily available" means available under a standard of

 

 9  economic feasibility, as applied to the specific circumstances of

 

10  the applicant, that includes, but is not limited to, the

 

11  following:

 

12        (i) The fair market value of the license, if determinable.

 

13        (ii) The size and scope of the proposed operation.

 

14        (iii) The existence of mandatory contractual restrictions or

 

15  inclusions attached to the sale of the license.

 

16        Sec. 533. (1) Subject to subsection (12), (6), the

 

17  commission shall not issue a new specially designated merchant

 

18  license or transfer an existing specially designated merchant

 

19  license unless the applicant is an approved type of business. An

 

20  applicant is not an approved type of business unless the

 

21  applicant meets 1 or more of the following conditions:

 

22        (a) The applicant holds and maintains a retail food

 

23  establishment license issued under the food law, 2000 PA 92, MCL

 

24  289.1101 to 289.8111. As used in this subdivision, "retail food

 

25  establishment" means that term as defined in section 1111 of the

 

26  food law, 2000 PA 92, MCL 289.1111.

 

27        (b) The applicant holds and maintains an extended retail

 

 1  food establishment license issued under the food law, 2000 PA 92,

 

 2  MCL 289.1101 to 289.8111. As used in this subdivision, "extended

 

 3  retail food establishment" means that term as defined in section

 

 4  1107 of the food law, 2000 PA 92, MCL 289.1107.

 

 5        (c) The applicant holds or the commission approves the

 

 6  issuance of a specially designated distributor license to the

 

 7  applicant.

 

 8        (d) The applicant holds or the commission approves the

 

 9  issuance of a class C license to the applicant.

 

10        (e) The applicant holds or the commission approves the

 

11  issuance of a class A hotel license to the applicant.

 

12        (f) The applicant holds or the commission approves the

 

13  issuance of a class B hotel license to the applicant.

 

14        (g) The applicant holds or the commission approves the

 

15  issuance of a club license to the applicant.

 

16        (h) The applicant holds or the commission approves the

 

17  issuance of a tavern license to the applicant.

 

18        (i) The applicant holds or the commission approves the

 

19  issuance of a class G-1 license to the applicant.

 

20        (j) The applicant holds or the commission approves the

 

21  issuance of a class G-2 license to the applicant.

 

22        (2) A specially designated distributor may apply for a

 

23  license as a specially designated merchant.

 

24        (3) An applicant for a specially designated merchant license

 

25  not in conjunction with an on-premises license, except as

 

26  provided in section 229(1), or a person licensed under this act

 

27  as a specially designated merchant only or a class B hotel may

 

 1  apply for a license as a specially designated distributor.

 

 2        (4) In cities, incorporated villages, or townships, the

 

 3  commission shall issue only 1 specially designated distributor

 

 4  license for each 3,000 of population, or fraction of 3,000. The

 

 5  commission may waive the quota requirement under this subsection

 

 6  if there is no existing specially designated distributor licensee

 

 7  within 2 miles of the applicant, measured along the nearest

 

 8  traffic route.

 

 9        (5) Except as otherwise provided in this section, in cities,

 

10  incorporated villages, or townships, the commission shall issue

 

11  only 1 specially designated merchant license for each 1,000 of

 

12  population, or fraction of 1,000. The quota under this subsection

 

13  does not apply to any of the following:

 

14        (a) An applicant for a specially designated merchant license

 

15  that is an applicant for or the holder of a license listed in

 

16  subsection (1)(d) to (j).

 

17        (b) An applicant for or the holder of a specially designated

 

18  merchant license whose licensed establishment meets 1 or more of

 

19  the following conditions:

 

20        (i) Meets both of the following conditions:

 

21        (A) The licensed establishment is at least 20,000 square

 

22  feet.

 

23        (B) The licensed establishment's gross receipts derived from

 

24  the sale of food are at least 20% of the total gross receipts.

 

25        (ii) The licensed establishment is also a pharmacy as that

 

26  term is defined in section 17707 of the public health code, 1978

 

27  PA 368, MCL 333.17707.

 

 1        (c) A secondary location permit issued to a specially

 

 2  designated merchant under section 541.

 

 3        (d) A specially designated merchant license issued under

 

 4  subsection (7).

 

 5        (e) A specially designated merchant license issued to a

 

 6  marina under section 539.

 

 7        (6) The commission may waive the quota under subsection (5)

 

 8  if there is no existing specially designated merchant within 2

 

 9  miles of the applicant, measured along the nearest traffic route.

 

10        (7) The commission shall waive the quota under subsection

 

11  (5) if both of the following apply:

 

12        (a) The applicant applies for the specially designated

 

13  merchant license within 60 days after January 4, 2017.

 

14        (b) The applicant is a retail dealer that holds a license

 

15  issued under section 6(1) of the motor fuels quality act, 1984 PA

 

16  44, MCL 290.646. The applicant shall include a copy of the

 

17  license described in this subdivision with the applicant's

 

18  application under this subsection. As used in this subdivision,

 

19  "retail dealer" means that term as defined in section 2 of the

 

20  motor fuels quality act, 1984 PA 44, MCL 290.642.

 

21        (4) (8) A specially designated merchant license issued under

 

22  this section may be transferred to an applicant whose proposed

 

23  operation is located within any local governmental unit in a

 

24  county in which the specially designated merchant license was

 

25  located. If the local governmental unit within which the former

 

26  licensee's premises were located spans more than 1 county, a

 

27  specially designated merchant license may be transferred to an

 

 1  applicant whose proposed operation is located within any local

 

 2  governmental unit in either county. If a specially designated

 

 3  merchant license is transferred to a local governmental unit

 

 4  other than that local governmental unit within which the

 

 5  specially designated merchant license was originally issued, the

 

 6  commission shall count that transferred specially designated

 

 7  merchant license against the local governmental unit originally

 

 8  issuing the specially designated merchant license.

 

 9        (9) Except as otherwise provided in subsection (10), the

 

10  quota under subsection (5) does not bar the right of an existing

 

11  specially designated merchant to renew the specially designated

 

12  merchant license or transfer the specially designated merchant

 

13  license. This subsection applies to a specially designated

 

14  merchant license issued or renewed before, on, or after January

 

15  4, 2017.

 

16        (10) A specially designated merchant license issued after

 

17  January 4, 2017 to a person described in subsection (5)(a) or (b)

 

18  or to a specially designated merchant license issued under

 

19  subsection (6) may not be transferred to another location.

 

20        (5) (11) An applicant for or the holder of a specially

 

21  designated merchant license that owns or operates a motor vehicle

 

22  fuel pump on or adjacent to the licensed premises is not required

 

23  to meet the conditions under section 541 as that section existed

 

24  before January 4, 2017.

 

25        (6) (12) For a marina that maintains motor vehicle fuel

 

26  pumps on or adjacent to the licensed premises, or maintains a

 

27  financial interest in any motor vehicle fuel pumps, the

 

 1  commission may only issue a special designated merchant license

 

 2  to the marina under section 539.

 

 3        (7) (13) For purposes of this section, population is

 

 4  determined by the latest federal decennial census, by a special

 

 5  census under section 6 of the home rule city act, 1909 PA 279,

 

 6  MCL 117.6, or section 7 of the Glenn Steil state revenue sharing

 

 7  act of 1971, 1971 PA 140, MCL 141.907, or by the latest census

 

 8  and corrections published by the United States Department of

 

 9  Commerce, Bureau of the Census, whichever is later.