SENATE BILL No. 902

 

 

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.