Bill Text: MI SB0849 | 2009-2010 | 95th Legislature | Introduced

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Bill Title: Liquor; licenses; fee to expedite the processing of applications; establish. Amends secs. 525 of 1998 PA 58 (MCL 436.1525) & adds sec. 528.

Spectrum: Slight Partisan Bill (Republican 3-1)

Status: (Introduced - Dead) 2009-09-21 - Referred To Committee On Economic Development And Regulatory Reform [SB0849 Detail]

Download: Michigan-2009-SB0849-Introduced.html

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SENATE BILL No. 849

 

 

September 21, 2009, Introduced by Senators KAHN, GILBERT, ALLEN and BARCIA and referred to the Committee on Economic Development and Regulatory Reform.

 

 

 

     A bill to amend 1998 PA 58, entitled

 

"Michigan liquor control code of 1998,"

 

by amending section 525 (MCL 436.1525), as amended by 2008 PA 218,

 

and by adding section 528.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

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

 

and section 528, the following license fees shall be paid at the

 

time of filing applications or as otherwise provided in this act:

 

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

 

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

 

volume, $1,000.00.

 

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

 

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

 

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

 

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

 

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

 

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

 

this state, $1,000.00.

 

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

 

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

 

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

 

$25.00.

 

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

 

this state, $300.00.

 

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

 

selling mixed spirit drink in this state, $300.00.

 

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

 

alcoholic liquor, $100.00 per train.

 

     (h) Wholesale vendors other than manufacturers of beer,

 

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

 

licensees and $50.00 for each additional motor vehicle used in

 

delivery to retail licensees.

 

     (i) Watercraft, licensed to carry passengers, selling

 

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

 

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

 

passenger capacity.

 

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

 

for consumption off the premises only but not at wholesale, $100.00

 

for each location regardless of the fact that the location may be a

 

part of a system or chain of merchandising.

 

     (k) Specially designated distributors licensed by the

 

commission to distribute spirits and mixed spirit drink in the

 

original package for the commission for consumption off the

 

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

 

$1,000.00 or major fraction of that amount in excess of $25,000.00

 

of the total retail value of merchandise purchased under each

 

license from the commission during the previous calendar year.

 

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

 

$250.00 and, for all bedrooms in excess of 20, $1.00 for each

 

additional bedroom, but not more than $500.00.

 

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

 

and spirits, a minimum fee of $600.00 and, for all bedrooms in

 

excess of 20, $3.00 for each additional bedroom. If a hotel of

 

class B sells beer, wine, mixed spirit drink, and spirits in more

 

than 1 public bar, the fee entitles the hotel to sell in only 1

 

public bar, other than a bedroom, and a license shall be secured

 

for each additional public bar, other than a bedroom, the fee for

 

which is $350.00.

 

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

 

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

 

and spirits, $600.00. If a class C licensee sells beer, wine, mixed

 

spirit drink, and spirits in more than 1 bar, a fee of $350.00

 

shall be paid for each additional bar. In municipally owned or

 

supported facilities in which nonprofit organizations operate

 

concession stands, a fee of $100.00 shall be paid for each

 

additional bar.

 

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

 

$300.00 for clubs having 150 or fewer duly accredited members and

 

$1.00 for each additional member. The membership list for the

 

purpose only of determining the license fees to be paid under this

 

subdivision shall be the accredited list of members as determined

 

by a sworn affidavit 30 days before the closing of the license

 

year. This subdivision does not prevent the commission from

 

checking a membership list and making its own determination from

 

the list or otherwise. The list of members and additional members

 

is not required of a club paying the maximum fee. The maximum fee

 

shall not exceed $750.00 for any 1 club.

 

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

 

fee for each warehouse of $50.00.

 

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

 

fee for that license or permit issued to any bona fide nonprofit

 

association, duly organized and in continuous existence for 1 year

 

before the filing of its application, is $25.00. Not more than 12

 

special licenses may be granted to any organization, including an

 

auxiliary of the organization, in a calendar year.

 

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

 

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

 

$600.00.

 

     (t) Brandy manufacturer, $100.00.

 

     (u) Mixed spirit drink manufacturer, $100.00.

 

     (v) Brewpub, $100.00.

 

     (w) Class G-1, $1,000.00.

 

     (x) Class G-2, $500.00.

 

     (y) Motorsports event license, $250.00.

 

     (z) Small distiller, $100.00.

 

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

 

licenses shall not be prorated for a portion of the effective

 

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

 

license fee for any licenses issued under section 531(3) and (4) is

 

$20,000.00. The renewal license fee shall be the amount described

 

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

 

$20,000.00 initial license fee for applicants whose license

 

eligibility was already approved on July 20, 2005.

 

     (3) Beginning July 23, 2004, and except Except in the case of

 

any resort or resort economic development license issued under

 

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

 

section 521, and subject to the requirements of an expedited filing

 

under section 528, the commission shall issue an initial or renewal

 

license not later than 90 days after the applicant files a

 

completed application. Receipt of the application is considered the

 

date the application is received by any agency or department of the

 

state of Michigan. If the application is considered incomplete by

 

the commission, the commission shall notify the applicant in

 

writing, or make the information electronically available, within

 

30 days after receipt of the incomplete application, describing the

 

deficiency and requesting the additional information. The

 

determination of the completeness of an application does not

 

operate as an approval of the application for the license and does

 

not confer eligibility upon an applicant determined otherwise

 

ineligible for issuance of a license. The 90-day period is tolled

 

under any of the following circumstances:

 

     (a) Notice sent by the commission of a deficiency in the

 

application until the date all of the requested information is

 

received by the commission.

 

     (b) The time period during which actions required by a party

 

other than the applicant or the commission are completed that

 

include, but are not limited to, completion of construction or

 

renovation of the licensed premises; mandated inspections by the

 

commission or by any state, local, or federal agency; approval by

 

the legislative body of a local unit of government; criminal

 

history or criminal record checks; financial or court record

 

checks; or other actions mandated by this act or rule or as

 

otherwise mandated by law or local ordinance.

 

     (4) If the commission fails to issue or deny a license within

 

the time required by this section, the commission shall return the

 

license fee and shall reduce the license fee for the applicant's

 

next renewal application, if any, by 15%. The failure to issue a

 

license within the time required under this section does not allow

 

the commission to otherwise delay the processing of the

 

application, and that application, upon completion, shall be placed

 

in sequence with other completed applications received at that same

 

time. The commission shall not discriminate against an applicant in

 

the processing of the application based upon the fact that the

 

license fee was refunded or discounted under this subsection.

 

     (5) Beginning October 1, 2005, the chair of the commission

 

shall submit a report by December 1 of each year to the standing

 

committees and appropriations subcommittees of the senate and house

 

of representatives concerned with liquor license issues. The chair

 

of the commission shall include all of the following information in

 

the report concerning the preceding fiscal year:

 

     (a) The number of initial and renewal applications the

 

commission received and completed within the 90-day time period

 

described in subsection (3).

 

     (b) The number of applications denied.

 

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

 

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

 

under subsection (4).

 

     (6) As used in this section, "completed application" means an

 

application complete on its face and submitted with any applicable

 

licensing fees as well as any other information, records, approval,

 

security, or similar item required by law or rule from a local unit

 

of government, a federal agency, or a private entity but not from

 

another department or agency of the state of Michigan.

 

     Sec. 528. (1) Subject to the exceptions and limitations

 

imposed in section 525(3), the commission may expedite the filing

 

of a document and the issuance of a license or permit. The

 

commission shall retain the revenue collected under this subsection

 

to carry out its duties required by law except that the commission

 

shall reimburse the department of state police and local law

 

enforcement agencies for the reasonable cost of processing

 

fingerprints. The commission shall charge 1 of the following

 

nonrefundable fees if expedited filing of a document and issuance

 

of a license or permit is requested:

 

     (a) For any filing that a person requests the commission to

 

complete within 10 business days after the day of the request,

 

$1,200.00. The commission may establish a deadline by which a

 

person must submit a request for filing under this subdivision.

 

     (b) For any filing that a person requests the commission to

 

complete within 20 business days after the day of the request,

 

$600.00. The commission may establish a deadline by which a person

 

must submit a request for filing under this subdivision.

 

     (2) The commission may deny a request for an expedited filing

 

and issuance if the applicant submits an application that is not

 

considered a completed application as that term is defined in

 

section 525. The responsibility of the commission to expedite the

 

filing of a document and the issuing of a license or permit extends

 

only to those duties directly under the control of the commission

 

and not the actions or inactions of any other state agency or local

 

unit of government.