March 14, 2018, Introduced by Senators HERTEL, CONYERS, KNEZEK, YOUNG, WARREN and GREGORY and referred to the Committee on Government Operations.
A bill to amend 1998 PA 58, entitled
"Michigan liquor control code of 1998,"
by amending section 1114 (MCL 436.2114), as amended by 2011 PA 27,
and by adding section 1116.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1114. (1) Notwithstanding R 436.1403 and R 436.1503 of
the
Michigan administrative code Administrative
Code and except as
otherwise provided in section 1116, under this act, or by rule of
the commission, an on-premises and an off-premises licensee shall
not sell, give away, or furnish alcoholic liquor between the hours
of 2 a.m. and 7 a.m. on any day.
(2)
Subsection (1) does not prevent any a local governmental
unit from prohibiting the sale of beer and wine between the hours
of 7 a.m. and 12 noon on Sunday or between the hours of 7 a.m. on
Sunday and 2 a.m. on Monday under section 1111 and does not prevent
any local governmental unit from prohibiting the sale of spirits
and mixed spirit drink between the hours of 7 a.m. and 12 noon on
Sunday or between the hours of 7 a.m. on Sunday and 2 a.m. on
Monday under section 1113. A licensee selling alcoholic liquor
between 7 a.m. and 12 noon on Sunday shall obtain a permit and pay
to the commission an annual fee of $160.00.
(3) A reference to the time of day under this act or a rule of
the commission includes daylight savings time, when observed.
Sec. 1116. (1) If a city, village, or township with a
population of 600,000 or more approves, by a majority of the city,
village, or township's legislative body voting, a resolution to
allow on-premises licensees to sell or furnish alcoholic liquor
between the hours of 2 a.m. and 4 a.m. on Saturday and Sunday, or
between the hours of 2 a.m. and 4 a.m. on a national or state
holiday, an on-premises licensee located within a central business
district in the city, village, or township may apply for an
extended hours permit from the commission to sell or furnish
alcoholic liquor between the hours of 2 a.m. and 4 a.m. on Saturday
and Sunday, or between the hours of 2 a.m. and 4 a.m. on a national
or state holiday. The commission shall not issue an extended hours
permit under this section unless the applicant has already been
approved by the local legislative body in which the applicant's
place of business is located.
(2) To obtain an extended hours permit, an on-premises
licensee shall do all of the following:
(a) Submit a completed application and a yearly permit fee of
$10,000.00 to the commission.
(b) Obtain local legislative approval for the extended hours
permit from the local legislative body in which the licensee's
place of business is located and include documentation of the
approval.
(c) Demonstrate to the commission all of the following:
(i) Unless the licensee holds a casino license, the licensee
will have 1 security person for every 50 customers on the licensed
premises.
(ii) That the licensee will have at least 1 security person at
the licensed premises from the hours of 11 p.m. on Friday to 4 a.m.
on Saturday and 11 p.m. on Saturday to 4 a.m. on Sunday, or from
the hours of 11 p.m. on the day before a national or state holiday
to 4 a.m. on a national or state holiday.
(iii) That the licensee will have 360-degree video
surveillance on the inside and outside of the licensed premises.
(d) Maintain compliance with this act and the rules
promulgated under this act.
(3) On receipt of an application that has not yet been
reviewed and approved by the local legislative body in which the
applicant's place of business is located, the commission shall
immediately notify the local legislative body and provide the local
legislative body with a copy of the application. The local
legislative body shall approve or deny the application within 90
days after receipt of the application. On denial of an application,
the local legislative body shall notify the applicant, in writing,
of the reasons for the denial. If the local legislative body does
not approve or deny an application within that 90-day period, the
commission may issue the extended hours permit if the commission
determines that the licensee meets the conditions described in
subsections (1) and (2)(a), (c), and (d). The commission shall
approve or deny an application submitted under this section within
90 days after the applicant files a completed application or 90
days after the commission has notified and provided a copy of the
application to the local legislative body, whichever is later.
(4) The commission shall deposit all permit fees collected
under this section in the extended hours permit fund created in
subsection (5).
(5) The extended hours permit fund is created within the state
treasury. The state treasurer may receive money or other assets
from any source for deposit into the fund. The state treasurer
shall direct the investment of the fund. The state treasurer shall
credit to the fund interest and earnings from fund investments.
Money in the fund at the close of the fiscal year shall remain in
the fund and shall not lapse to the general fund. The department of
licensing and regulatory affairs is the administrator of the fund
for auditing purposes. The department of treasury shall expend
money from the fund, upon appropriation, only as provided in
subsection (6).
(6) All money collected and deposited in the extended hours
permit fund must be distributed as follows:
(a) Five percent must be respectively disbursed based on the
number of permits issued within each city, village, or township to
those respective cities, villages, and townships where the extended
hours permits are located for administration costs related to this
section.
(b) Eighty-five percent must be respectively disbursed based
on the number of permits issued within each city, village, or
township to the police departments of those cities, villages, and
townships where the extended hours permits are located for the
purpose of enforcing this section and the rules promulgated under
this section.
(c) Ten percent must be disbursed to the commission for
carrying out the administration and enforcement provisions of this
section.
(7) As used in this section:
(a) "Casino license" means a license issued under section 6 of
the Michigan gaming control and revenue act, 1996 IL 1, MCL
432.206.
(b) "Central business district" means a downtown district
established under 1975 PA 197, MCL 125.1651 to 125.1681.