HOUSE BILL No. 4035 January 25, 2001, Introduced by Rep. Faunce 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 701 (MCL 436.1701). THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 701. (1) Alcoholic liquor shall not be sold or fur- 2 nished to a minor. Except as otherwise provided in 3 subsection (2) and subject to subsection (4), a person who know- 4 ingly sells or furnishes alcoholic liquor to a minor, or who 5 fails to make diligent inquiry as to whether the person is a 6 minor, is guilty of a misdemeanor. A retail licensee or a retail 7 licensee's clerk, agent, or employee who violates this subsection 8 shall be punished in the manner provided for licensees in 9 section 909. Notwithstanding section 909 and except as otherwise 10 provided in subsection (2), a person who is not a retail licensee 11 or a retail licensee's clerk, agent, or employee and who violates 00291'01 LBO 2 1 this subsection shall be fined $1,000.00 and may be sentenced to 2 imprisonment for up to 60 days for a first offense, shall be 3 fined $2,500.00 and shall be sentenced to imprisonment for up to 4 90 days for a second or subsequent offense, and may be ordered to 5 perform community service. A suitable sign describing the con- 6 tent of this section and the penalties for its violation shall be 7 posted in a conspicuous place in each room where alcoholic liquor 8 is sold. The signs shall be approved and furnished by the 9 commission. 10 (2) A person who is not a retail licensee or the retail 11 licensee's clerk, agent, or employee and who violates 12 subsection (1) is guilty of a felony, punishable by imprisonment 13 for not more than 10 years, or a fine of not more than $5,000.00, 14 or both, if the subsequent consumption of the alcoholic liquor by 15 the minor is a direct and substantial cause of that person's 16 death or an accidental injury that causes that person's death. 17 (3) If a violation occurs in an establishment that is 18 licensed by the commission for consumption of alcoholic liquor on 19 the licensed premises, a person who is a licensee or the clerk, 20 agent, or employee of a licensee shall not be charged with a vio- 21 lation of subsection (1) or section 801(2) unless the licensee or 22 the clerk, agent, or employee of the licensee knew or should have 23 reasonably known with the exercise of due diligence that a person 24 less than 21 years of age possessed or consumed alcoholic liquor 25 on the licensed premises and the licensee or clerk, agent, or 26 employee of the licensee failed to take immediate corrective 27 action. 00291'01 3 1 (4) If the enforcing agency involved in the violation is the 2 state police or a local police agency, a licensee shall not be 3 charged with a violation of subsection (1) or section 801(2) 4 unless enforcement action under section 703 is taken against the 5 minor who purchased or attempted to purchase, consumed or 6 attempted to consume, or possessed or attempted to possess alco- 7 holic liquor and, if applicable, enforcement action is taken 8 under this section against the person 21 years of age or older 9 who sold or furnished the alcoholic liquor to the minor, INCLUD- 10 ING THE LICENSEE'S CLERK, AGENT, OR EMPLOYEE. If the enforcing 11 agency is the commission, then the commission shall recommend to 12 a local law enforcement agency that enforcement action be taken 13 against a violator of this section or section 703 who is not a 14 licensee. However, this subsection does not apply under any of 15 the following circumstances: 16 (a) The person against whom enforcement action is taken 17 under section 703 or the person 21 years of age or older who sold 18 or furnished alcoholic liquor to the minor is not alive or is not 19 present in this state at the time the licensee is charged. 20 (b) The violation of subsection (1) is the result of an 21 undercover operation in which the minor purchased or received 22 alcoholic liquor under the direction of the person's employer and 23 with the prior approval of the local prosecutor's office as part 24 of an employer-sponsored internal enforcement action. 25 (c) The violation of subsection (1) is the result of an 26 undercover operation in which the minor purchased or received 27 alcoholic liquor under the direction of the state police, the 00291'01 4 1 commission, or a local police agency as part of an enforcement 2 action. However, any initial or contemporaneous purchase or 3 receipt of alcoholic liquor by the minor shall have been under 4 the direction of the state police, the commission, or the local 5 police agency and shall have been part of the undercover 6 operation. 7 (5) If a minor participates in an undercover operation in 8 which the minor is to purchase or receive alcoholic liquor under 9 the supervision of a law enforcement agency, his or her parents 10 or legal guardian shall consent to the participation if that 11 person is less than 18 years of age. 12 (6) In an action for the violation of this section, proof 13 that the defendant or the defendant's agent or employee demanded 14 and was shown, before furnishing alcoholic liquor to a minor, a 15 motor vehicle operator's or chauffeur's license or a registration 16 certificate issued by the federal selective service, or other 17 bona fide documentary evidence of the age and identity of that 18 person, shall be a defense to an action brought under this 19 section. 20 (7) The commission shall provide, on an annual basis, a 21 written report to the department of state police as to the number 22 of actions heard by the commission involving violations of this 23 section and section 801(2). The report shall include the dispo- 24 sition of each action and contain figures representing the fol- 25 lowing categories: 26 (a) Decoy operations. 00291'01 5 1 (b) Off-premises violations. 2 (c) On-premises violations. 3 (d) Repeat offenses within the 3 years preceding the date of 4 that report. 5 (8) As used in this section: 6 (a) "Corrective action" means action taken by a licensee or 7 a clerk, agent, or employee of a licensee designed to prevent a 8 minor from further possessing or consuming alcoholic liquor on 9 the licensed premises. Corrective action includes, but is not 10 limited to, contacting a law enforcement agency and ejecting the 11 minor and any other person suspected of aiding and abetting the 12 minor. 13 (b) "Diligent inquiry" means a diligent good faith effort to 14 determine the age of a person, which includes at least an exami- 15 nation of an official Michigan operator's or chauffeur's license, 16 an official Michigan personal identification card, or any other 17 bona fide picture identification which establishes the identity 18 and age of the person. 00291'01 Final page. LBO