Bill Text: MI SB1136 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Liquor: licenses; eligibility for issuing public on-premises license in a development district; modify. Amends sec. 521a of 1998 PA 58 (MCL 436.1521a).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2020-09-22 - Referred To Committee On Regulatory Reform [SB1136 Detail]
Download: Michigan-2019-SB1136-Introduced.html
SENATE BILL NO. 1136
September 22, 2020, Introduced by Senator
STAMAS and referred to the Committee on Regulatory Reform.
A bill to amend 1998 PA 58, entitled
"Michigan liquor control code of 1998,"
by amending section 521a (MCL 436.1521a), as amended by 2014 PA 270.
the people of the state of michigan enact:
Sec. 521a. (1) In
order to allow cities, villages, and townships to enhance the quality of life
for their residents and visitors to their communities, the commission may issue
public on-premises licenses in addition to those quota licenses allowed in
cities, villages, and townships under section 531(1). The licenses commission
shall issue a license under this section shall be issued to businesses to a business that meet
meets either of the following
conditions:
(a) Are Is located in a redevelopment project area meeting
the criteria described in subsections (3) and (4) and are
is engaged in activities
determined by the commission to be related to dining, entertainment, or
recreation.
(b) Are Is located in a development district or area that is
any of the following:
(i) An authority district
established under the tax increment finance authority
act, 1980 PA 450, MCL 125.1801 to 125.1830.part 3
of the recodified tax increment financing act, 2018 PA 57, MCL 125.4301 to 125.4329.
(ii) A development area established under the corridor improvement authority act, 2005 PA 280, MCL
125.2871 to 125.2899.part 6 of the recodified tax
increment financing act, 2018 PA 57, MCL 125.4602 to 125.4629.
(iii) A downtown district established under 1975 PA 197, MCL 125.1651 to 125.1681.part 2 of the recodified tax increment financing act, 2018 PA
57, MCL 125.4201 to 125.4230.
(iv) A principal shopping district established under 1961 PA
120, MCL 125.981 to 125.990n.
(2) The commission shall
not issue a license under subsection (1)(a) unless the applicant fulfills the
following in relation to the licensed premises:
(a) Provides the
activity described in subsection (1)(a) not less than 5 days per week.
(b) Is open to the
public not less than 10 hours per day, 5 days per week.
(c) Presents
verification of redevelopment project area status to the commission that
includes the following:
(i) A resolution of the governing body of the city, village, or
township establishing its status as a redevelopment project area.
(ii) An affidavit from the assessor, as certified by the clerk
of the city, village, or township, stating the total amount of investment in
real and personal property within the redevelopment project area of the city,
village, or township during the preceding 3 years.
(iii) An affidavit from the assessor, as certified by the clerk
of the city, village, or township, separately stating the amount of investment
money expended for manufacturing, industrial, residential, and commercial
development within the redevelopment project area of the city, village, or
township during the preceding 3 years.
(3) Relative to the
licenses issued under subsection (1)(a), the amount of commercial investment in
the redevelopment project area within the city, village, or township shall must constitute
not less than 25% of the total investment in real and personal property in that
redevelopment project area as evidenced by an affidavit of the assessor of the
city, village, or township. This subsection does not prevent the city, village,
or township from realigning the redevelopment project area in the presentment
of verification provided for under subsection (2)(c).
(4) In relation to a
license issued under subsection (1)(a), an applicant shall
must be located in a city, village, or
township that meets at least 1 of the investment requirements of subsection
(1)(a) during the 3 years preceding the submission of its application. The
total investment in real and personal property in the redevelopment project
area within the city, village, or township over the appropriate time period
described in this subsection shall must be at least 1 of the following:
(a) Not less than
$50,000,000.00 in cities, villages, or townships having a population of 50,000
or more.
(b) Not less than an
amount reflecting $1,000,000.00 per 1,000 people in cities, villages, or
townships having a population of less than 50,000.
(5) The commission may
issue a license under subsection (1)(a) for each monetary threshold described
in subsection (4)(a) and (b), and, after reaching the initial threshold, 1
additional license for each major fraction thereof of the monetary threshold above that original threshold.
(6) The following apply
to a license issued under subsection (1)(b):
(a) The amount expended for the rehabilitation or restoration of to rehabilitate or restore the building that housed the licensed premises shall or property must be not less than $75,000.00 $200,000.00 over
a period of the preceding 5 years or a commitment for a capital investment of
at least that amount in the building that houses the
licensed premises, or property that must be
expended before the issuance of the license.
(b) The total amount of
public and private investment in real and personal property within the development
district or area shall must
not be less than $200,000.00 over a period of the preceding 5 years as
verified to the commission by means of an affidavit from the assessor, as
certified by the clerk of the city, village, or township.
(c) The licensed
business is engaged in dining, entertainment, or recreation, is open to the
general public, and has a seating capacity of not less than 25 persons.
(7) The commission may
issue 1 license for each monetary threshold described in subsection (6)(b), or
for each major fraction thereof. of the monetary threshold. The initial enhanced license
fee for a license issued under this section is $20,000.00.
(8) The commission shall
not transfer a license issued under this section to another location. If the licensee
goes out of business, the licensee shall surrender the license to the
commission. The governing body of the city, village, or township may approve
another applicant within a redevelopment project area or development district
or area to replace a licensee who has surrendered the license issued under this
section provided the new applicant's business meets the requirements of this
section but without regard to subsections (2)(c), (3), and (4) or subsection
(6)(b).
(9) The individual
signing the application for the license shall state and demonstrate that the
applicant attempted to secure an appropriate on-premises escrowed license or
quota license issued under section 531 and that, to the best of his or her
knowledge, an on-premises escrowed license or quota license issued under
section 531 is not readily available within the county in which the applicant
proposes to operate.
(10) As used in this
section:
(a) "Escrowed
license" means a license in which the rights of the licensee in the
license or to the renewal of the license are still in existence and are subject
to renewal and activation in the manner provided for in R 436.1107 of the
Michigan administrative code.Administrative Code.
(b) "Readily
available" means available under a standard of economic feasibility, as
applied to the specific circumstances of the applicant, that includes, but is
not limited to, the following:
(i) The fair market value of the license based on where the
applicant will be located, if determinable.
(ii) The size and scope of the proposed operation.
(iii) The existence of mandatory contractual restrictions or
inclusions attached to the sale of the license.
