ON-PREMISES LICENSEES: ALLOW ENTERTAINMENT AFTER CESSATION OF LIQUOR SALES

House Bill 4706

Sponsor:  Rep. Jerry O. Kooiman

Committee:  Regulatory Reform

Complete to 6-27-06

A SUMMARY OF HOUSE BILL 4706 AS INTRODUCED 5-3-05

Under provisions of the Michigan Liquor Control Code, on-premises licensees (bars, taverns, and restaurants) must hold permits to allow entertainment (movies, closed circuit television, monologues, contests, etc.), dancing by customers, or topless activity.  Activities allowed by the permits can only be conducted during the hours that the alcoholic beverages can be sold and consumed on the licensed premises.  Generally, speaking, alcohol cannot be sold or furnished between 2 a.m. and 7 a.m. and cannot be consumed on the premises between 2:30 a.m. and 7 a.m.  On Sunday, alcohol cannot be sold or furnished between 2 a.m. and 7 a.m. unless the licensee obtains a Sunday sales permit to allow the sale or furnishing of alcohol between noon and midnight.

House Bill 4706 would amend the code (MCL 436.1916) to allow the permitted activities during times that alcohol is not allowed to be sold or consumed on the premises if a special purpose permit for entertainment only is issued to the licensee under R 436.1403 of the Michigan Administrative Code. 

The rule prohibits anyone other than the licensee, his or her employees who are working, or licensed contractors and their employees from being on the premises between 2:30 a.m. and 12 noon on Sunday or from 2:30 a.m. to 7 a.m. on other days unless the licensee first obtained a permit approved by the Liquor Control Commission and the chief of police, sheriff, or other chief law enforcing officer in the community authorizing the on-premises licensee to remain open for a stated purpose for such other hours and during such periods of time as the commission determined.

FISCAL IMPACT:

A preliminary analysis suggests there is no fiscal impact on the State of Michigan or its local units of government. The change to the Michigan Liquor Control Code of 1998 should not result in any additional administrative cost to the Michigan Liquor Control Commission or local liquor law enforcement efforts.

                                                                                           Legislative Analyst:   Susan Stutzky

                                                                                                  Fiscal Analyst:   Richard Child

■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.