Bill Text: MI SB0501 | 2017-2018 | 99th Legislature | Engrossed
Bill Title: Liquor; licenses; issuance of specially designated distributor license within 1/2 mile of an existing specially designated distributor; prohibit. Amends sec. 533 of 1998 PA 58 (MCL 436.1533).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2017-12-06 - Referred To Committee On Regulatory Reform [SB0501 Detail]
Download: Michigan-2017-SB0501-Engrossed.html
SB-0501, As Passed Senate, December 6, 2017
SUBSTITUTE FOR
SENATE BILL NO. 501
A bill to amend 1998 PA 58, entitled
"Michigan liquor control code of 1998,"
by amending section 533 (MCL 436.1533), as amended by 2016 PA 434.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 533. (1) Subject to subsection (12), the commission shall
not issue a new specially designated merchant license or transfer
an existing specially designated merchant license unless the
applicant is an approved type of business. An applicant is not an
approved type of business unless the applicant meets 1 or more of
the following conditions:
(a) The applicant holds and maintains a retail food
establishment license issued under the food law, 2000 PA 92, MCL
289.1101 to 289.8111. As used in this subdivision, "retail food
establishment" means that term as defined in section 1111 of the
food law, 2000 PA 92, MCL 289.1111.
(b) The applicant holds and maintains an extended retail food
establishment license issued under the food law, 2000 PA 92, MCL
289.1101 to 289.8111. As used in this subdivision, "extended retail
food establishment" means that term as defined in section 1107 of
the food law, 2000 PA 92, MCL 289.1107.
(c) The applicant holds or the commission approves the
issuance of a specially designated distributor license to the
applicant.
(d) The applicant holds or the commission approves the
issuance of a class C license to the applicant.
(e) The applicant holds or the commission approves the
issuance of a class A hotel license to the applicant.
(f) The applicant holds or the commission approves the
issuance of a class B hotel license to the applicant.
(g) The applicant holds or the commission approves the
issuance of a club license to the applicant.
(h) The applicant holds or the commission approves the
issuance of a tavern license to the applicant.
(i) The applicant holds or the commission approves the
issuance of a class G-1 license to the applicant.
(j) The applicant holds or the commission approves the
issuance of a class G-2 license to the applicant.
(2) A specially designated distributor may apply for a license
as a specially designated merchant.
(3) An applicant for a specially designated merchant license
not in conjunction with an on-premises license, except as provided
in section 229(1), or a person licensed under this act as a
specially designated merchant only or a class B hotel may apply for
a license as a specially designated distributor.
(4)
In Except as otherwise
provided in section 531(5), in
cities, incorporated villages, or townships, the commission shall
issue only 1 specially designated distributor license for each
3,000 of population, or fraction of 3,000. The commission may waive
the quota requirement under this subsection if there is no existing
specially designated distributor licensee within 2 miles of the
applicant, measured along the nearest traffic route. Except as
otherwise provided in section 531(5), the commission shall not
approve the application of a new specially designated distributor
license or approve the application of a holder of a specially
designated distributor license requesting a transfer of location of
that specially designated distributor license if there is an
existing specially designated distributor licensed establishment
within 2,640 feet of the proposed location, measured along the
nearest traffic route. The commission shall use a digital global
positioning system to measure the distances described in this
subsection. The commission shall waive the distance restriction
under this subsection if any of the following apply:
(a) The existing specially designated distributor purchased
less than $100,000.00 in spirits from the commission during the
last full calendar year. Beginning January 1, 2018, the commission
shall adjust the dollar amount in this subdivision by an amount
determined by the commission at the end of the immediately
preceding calendar year to reflect the cumulative annual percentage
change in the Consumer Price Index. As used in this subdivision,
"Consumer Price Index" means the most comprehensive index of
consumer prices available for this state from the Bureau of Labor
Statistics of the United States Department of Labor.
(b) The existing specially designated distributor holds a
class A hotel license or a class B hotel license.
(c) The applicant's proposed location and the existing
specially designated distributor's licensed establishment are
separated by a major thoroughfare of not fewer than 4 lanes of
traffic.
(d) The applicant's proposed location is at least 20,000
square feet and either is located in a neighborhood shopping center
or derives at least 20% of its gross receipts from the sale of
food. As used in this subdivision, "neighborhood shopping center"
means 1 commercial establishment, or a group of commercial
establishments organized or operated as a unit, that is related in
location, size, and type of shop to the trade area that the unit
serves, and consists of not less than 150,000 square feet of
leasable retail space, and has access to off-street parking spaces.
(e) For an applicant that holds a specially designated
distributor license, on a showing of good cause by the applicant,
the applicant's licensed establishment is located within 2,640 feet
of 1 or more existing specially designated distributor licensed
establishments and the applicant requests a transfer of location,
which location is within 2,640 feet of the same existing specially
designated distributor licensed establishment or establishments.
(5) Except as otherwise provided in this section, in cities,
incorporated villages, or townships, the commission shall issue
only 1 specially designated merchant license for each 1,000 of
population. The quota under this subsection does not apply to any
of the following:
(a) An applicant for a specially designated merchant license
that is an applicant for or the holder of a license listed in
subsection (1)(d) to (j).
(b) An applicant for or the holder of a specially designated
merchant license whose licensed establishment meets 1 or more of
the following conditions:
(i) Meets both of the following conditions:
(A) The licensed establishment is at least 20,000 square feet.
(B) The licensed establishment's gross receipts derived from
the sale of food are at least 20% of the total gross receipts.
(ii) The licensed establishment is also a pharmacy as that
term is defined in section 17707 of the public health code, 1978 PA
368, MCL 333.17707.
(c) A secondary location permit issued to a specially
designated merchant under section 541.
(d) A specially designated merchant license issued under
subsection (7).
(e) A specially designated merchant license issued to a marina
under section 539.
(6) The commission may waive the quota under subsection (5) if
there is no existing specially designated merchant within 2 miles
of the applicant, measured along the nearest traffic route.
(7) The commission shall waive the quota under subsection (5)
if both of the following apply:
(a) The applicant applies for the specially designated
merchant
license within 60 days after the effective date of the
amendatory
act that added subsection (5).January
4, 2017.
(b) The applicant is a retail dealer that holds a license
issued under section 6(1) of the motor fuels quality act, 1984 PA
44, MCL 290.646. The applicant shall include a copy of the license
described in this subdivision with the applicant's application
under this subsection. As used in this subdivision, "retail dealer"
means that term as defined in section 2 of the motor fuels quality
act, 1984 PA 44, MCL 290.642.
(8) A specially designated merchant license issued under this
section may be transferred to an applicant whose proposed operation
is located within any local governmental unit in a county in which
the specially designated merchant license was located. If the local
governmental unit within which the former licensee's premises were
located spans more than 1 county, a specially designated merchant
license may be transferred to an applicant whose proposed operation
is located within any local governmental unit in either county. If
a specially designated merchant license is transferred to a local
governmental unit other than that local governmental unit within
which the specially designated merchant license was originally
issued, the commission shall count that transferred specially
designated merchant license against the local governmental unit
originally issuing the specially designated merchant license.
(9) Except as otherwise provided in subsection (10), the quota
under subsection (5) does not bar the right of an existing
specially designated merchant to renew the specially designated
merchant license or transfer the specially designated merchant
license. This subsection applies to a specially designated merchant
license
issued or renewed before, on, or after the effective date
of
the amendatory act that added subsection (5).January 4, 2017.
(10)
A specially designated merchant license issued after the
effective
date of the amendatory act that added subsection (5)
January 4, 2017 to a person described in subsection (5)(a) or (b)
or to a specially designated merchant license issued under
subsection (6) may not be transferred to another location.
(11) An applicant for or the holder of a specially designated
merchant license that owns or operates a motor vehicle fuel pump on
or adjacent to the licensed premises is not required to meet the
conditions
under section 541 as that section existed before the
effective
date of the amendatory act that added subsection
(5).January 4, 2017.
(12) For a marina that maintains motor vehicle fuel pumps on
or adjacent to the licensed premises, or maintains a financial
interest in any motor vehicle fuel pumps, the commission may only
issue a special designated merchant license to the marina under
section 539.
(13) For purposes of this section, population is determined by
the latest federal decennial census, by a special census under
section 6 of the home rule city act, 1909 PA 279, MCL 117.6, or
section 7 of the Glenn Steil state revenue sharing act of 1971,
1971 PA 140, MCL 141.907, or by the latest census and corrections
published by the United States Department of Commerce, Bureau of
the Census, whichever is later.
