HB-4541, As Passed Senate, September 6, 2005

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 4541

(As amended, September 6, 2005)

<<A bill to amend 1998 PA 58, entitled

"Michigan liquor control code of 1998,"

by amending sections 518, 525, and 537 (MCL 436.1518, 436.1525, and

436.1537), section 518 as added by 2002 PA 725, section 525 as

amended by 2005 PA 97, and section 537 as amended by 2001 PA 223.>>

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 518. (1) As used in this section:

     (a) "Motorsports entertainment complex" means a closed-course

motorsports facility and its ancillary grounds that comply with all

of the following:

     (i) Has at least  70,000  1,500 fixed seats for race patrons.

     (ii) Has at least 7 scheduled days of motorsports events each

calendar year.

     (iii) Has at least 4 motorsports events each calendar year.

(iii)  (iv) Serves food and beverages at the facility during

sanctioned motorsports events each calendar year through concession

outlets,  a majority of which  are  may be staffed by individuals

who represent or are members of 1 or more nonprofit civic or

charitable organizations that directly financially benefit from the

concession outlets' sales.

(iv)  (v) Engages in tourism promotion.

     (vi) Has located on the property exhibitions of motorsports

history, events, or vehicles.

     (b) "Motorsports event" means a motorsports race and its

ancillary activities that have been sanctioned by a sanctioning

body.

     (c) "Owner" means a person who owns and operates a motorsports

entertainment complex.

     (d) "Sanctioning body" means the American motorcycle

association (AMA); auto racing club of America (ARCA); championship

auto racing teams (CART); grand American road racing association

(GRAND AM); Indy racing league (IRL); national association for

stock car auto racing (NASCAR); nation hot rod association (NHRA);

professional sportscar racing (PSR); sports car club of  america

America (SCCA); United States auto club (USAC); Michigan state

promoters association; or any successor organization or any other

nationally or internationally recognized governing body of

motorsports that establishes an annual schedule of motorsports

events and grants rights to conduct the events, that has

established and administers rules and regulations governing all

participants involved in the events and all persons conducting the

events, and that requires certain liability assurances, including

insurance.

     (2) Notwithstanding the quota provisions of section 531, the

commission may issue motorsports event licenses for the sale of

beer and wine for consumption on the premises to the owner of a

motorsports entertainment complex for use during sanctioned 

motorsports events only.

(3)  (2) For a period of time not to exceed 7 consecutive

days during which public access is permitted to a motorsports

entertainment complex in connection with a motorsports event,

members of the general public at least 21 years or older may bring

alcoholic liquor  beer and wine not purchased at the licensed

motorsports entertainment complex into the motorsports

entertainment complex and possess and consume that  alcoholic

liquor  beer and wine. Possession and consumption of  alcoholic

liquor  beer and wine under this section are allowed only in

portions of the motorsports entertainment complex open to the

general public that are also part of the licensed premises of a

retail licensee  only under both of the following circumstances:

     (a) The licensed premises are located within the motorsports

entertainment complex.

     (b) The retail licensee holds a license for consumption on the

licensed premises of the motorsports entertainment complex.

(4)  (3) A person holding a license for the sale of alcoholic

liquor for consumption on the premises at a motorsports

entertainment complex is subject to the civil liability provisions

of section 801 if the civil action is brought by or on behalf of an

individual who suffers damage or is personally injured by a minor

or visibly intoxicated person by reason of the unlawful consumption

of alcoholic liquor on the licensed premises by that minor or

visibly intoxicated person if the unlawful consumption is proven to

be a proximate cause of the damage, injury, or death of the

individual, whether the alcoholic liquor was sold or furnished by

the licensee or was brought onto the licensed premises under

subsection  (2)  (3).

     Sec. 525. (1) Except as otherwise provided for in this

section, the following license fees shall be paid at the time of

filing applications or as otherwise provided in this act:

     (a) Manufacturers of spirits, but not including makers,

blenders, and rectifiers of wines containing 21% or less alcohol by

volume, $1,000.00.

     (b) Manufacturers of beer, $50.00 per 1,000 barrels, or

fraction of a barrel, production annually with a maximum fee of

$1,000.00, and in addition $50.00 for each motor vehicle used in

delivery to retail licensees. A fee increase does not apply to a

manufacturer of less than 15,000 barrels production per year.

     (c) Outstate seller of beer, delivering or selling beer in

this state, $1,000.00.

     (d) Wine makers, blenders, and rectifiers of wine, including

makers, blenders, and rectifiers of wines containing 21% or less

alcohol by volume, $100.00. The small wine maker license fee is

$25.00.

     (e) Outstate seller of wine, delivering or selling wine in

this state, $300.00.

     (f) Outstate seller of mixed spirit drink, delivering or

selling mixed spirit drink in this state, $300.00.

     (g) Dining cars or other railroad or Pullman cars selling

alcoholic liquor, $100.00 per train.

     (h) Wholesale vendors other than manufacturers of beer,

$300.00 for the first motor vehicle used in delivery to retail

licensees and $50.00 for each additional motor vehicle used in

delivery to retail licensees.

     (i) Watercraft, licensed to carry passengers, selling

alcoholic liquor, a minimum fee of $100.00 and a maximum fee of

$500.00 per year computed on the basis of $1.00 per person per

passenger capacity.

     (j) Specially designated merchants, for selling beer or wine

for consumption off the premises only but not at wholesale, $100.00

for each location regardless of the fact that the location may be a

part of a system or chain of merchandising.

     (k) Specially designated distributors licensed by the

commission to distribute spirits and mixed spirit drink in the

original package for the commission for consumption off the

premises, $150.00 per year, and an additional fee of $3.00 for each

$1,000.00 or major fraction of that amount in excess of $25,000.00

of the total retail value of merchandise purchased under each

license from the commission during the previous calendar year.

     (l) Hotels of class A selling beer and wine, a minimum fee of

$250.00 and, for all bedrooms in excess of 20, $1.00 for each

additional bedroom, but not more than $500.00.

     (m) Hotels of class B selling beer, wine, mixed spirit drink,

and spirits, a minimum fee of $600.00 and, for all bedrooms in

excess of 20, $3.00 for each additional bedroom. If a hotel of

class B sells beer, wine, mixed spirit drink, and spirits in more

than 1 public bar, the fee entitles the hotel to sell in only 1

public bar, other than a bedroom, and a license shall be secured

for each additional public bar, other than a bedroom, the fee for

which is $350.00.

     (n) Taverns, selling beer and wine, $250.00.

     (o) Class C license selling beer, wine, mixed spirit drink,

and spirits, $600.00. If a class C licensee sells beer, wine, mixed

spirit drink, and spirits in more than 1 bar, a fee of $350.00

shall be paid for each additional bar. In municipally owned or

supported facilities in which nonprofit organizations operate

concession stands, a fee of $100.00 shall be paid for each

additional bar.

     (p) Clubs selling beer, wine, mixed spirit drink, and spirits,

$300.00 for clubs having 150 or fewer duly accredited members and

$1.00 for each additional member. The membership list for the

purpose only of determining the license fees to be paid under this

subdivision shall be the accredited list of members as determined

by a sworn affidavit 30 days before the closing of the license

year. This subdivision does not prevent the commission from

checking a membership list and making its own determination from

the list or otherwise. The list of members and additional members

is not required of a club paying the maximum fee. The maximum fee

shall not exceed $750.00 for any 1 club.

     (q) Warehousers, to be fixed by the commission with a minimum

fee for each warehouse of $50.00.

     (r) Special licenses, a fee of $50.00 per day, except that the

fee for that license or permit issued to any bona fide nonprofit

association, duly organized and in continuous existence for 1 year

before the filing of its application, is $25.00. Not more than 5

special licenses may be granted to any organization, including an

auxiliary of the organization, in a calendar year.

     (s) Airlines licensed to carry passengers in this state that

sell, offer for sale, provide, or transport alcoholic liquor,

$600.00.

     (t) Brandy manufacturer, $100.00.

     (u) Mixed spirit drink manufacturer, $100.00.

     (v) Brewpub, $100.00.

     (w) Class G-1, $1,000.00.

     (x) Class G-2, $500.00.

     (y) Motorsports event license, $250.00.

     (2) The fees provided in this act for the various types of

licenses shall not be prorated for a portion of the effective

period of the license. Notwithstanding subsection (1), the initial

license fee for any licenses issued under section 531(3) and (4) is

$20,000.00. The renewal license fee shall be the amount described

in subsection (1). However, the commission shall not impose the

$20,000.00 initial license fee for applicants whose license

eligibility was already approved on  the effective date of the

amendatory act that added this sentence  July 20, 2005.

     (3) Beginning July 23, 2004, and except in the case of any

resort or resort economic development license issued under section

531(2), (3), (4), and (5) and a license issued under section 521,

the commission shall issue an initial or renewal license not later

than 90 days after the applicant files a completed application.

Receipt of the application is considered the date the application

is received by any agency or department of the state of Michigan.

If the application is considered incomplete by the commission, the

commission shall notify the applicant in writing, or make the

information electronically available, within 30 days after receipt

of the incomplete application, describing the deficiency and

requesting the additional information. The determination of the

completeness of an application does not operate as an approval of

the application for the license and does not confer eligibility

upon an applicant determined otherwise ineligible for issuance of a

license. The 90-day period is tolled under any of the following

circumstances:

     (a) Notice sent by the commission of a deficiency in the

application until the date all of the requested information is

received by the commission.

     (b) The time period during which actions required by a party

other than the applicant or the commission are completed that

include, but are not limited to, completion of construction or

renovation of the licensed premises; mandated inspections by the

commission or by any state, local, or federal agency; approval by

the legislative body of a local unit of government; criminal

history or criminal record checks; financial or court record

checks; or other actions mandated by this act or rule or as

otherwise mandated by law or local ordinance.

     (4) If the commission fails to issue or deny a license within

the time required by this section, the commission shall return the

license fee and shall reduce the license fee for the applicant's

next renewal application, if any, by 15%. The failure to issue a

license within the time required under this section does not allow

the commission to otherwise delay the processing of the

application, and that application, upon completion, shall be placed

in sequence with other completed applications received at that same

time. The commission shall not discriminate against an applicant in

the processing of the application based upon the fact that the

license fee was refunded or discounted under this subsection.

     (5) Beginning October 1, 2005, the chair of the commission

shall submit a report by December 1 of each year to the standing

committees and appropriations subcommittees of the senate and house

of representatives concerned with liquor license issues. The chair

of the commission shall include all of the following information in

the report concerning the preceding fiscal year:

     (a) The number of initial and renewal applications the

commission received and completed within the 90-day time period

described in subsection (3).

     (b) The number of applications denied.

     (c) The number of applicants not issued a license within the

90-day time period and the amount of money returned to licensees

under subsection (4).

     (6) As used in this section, "completed application" means an

application complete on its face and submitted with any applicable

licensing fees as well as any other information, records, approval,

security, or similar item required by law or rule from a local unit

of government, a federal agency, or a private entity but not from

another department or agency of the state of Michigan.

     Sec. 537. (1) The following classes of vendors may sell

alcoholic liquors at retail as provided in this section:

     (a) Taverns where beer and wine may be sold for consumption on

the premises only.

     (b) Class C license where beer, wine, mixed spirit drink, and

spirits may be sold for consumption on the premises.

     (c) Clubs where beer, wine, mixed spirit drink, and spirits

may be sold for consumption on the premises only to bona fide

members where consumption is limited to these members and their

bona fide guests, who have attained the age of 21 years.

     (d) Hotels of class A where beer and wine may be sold for

consumption on the premises and in the rooms of bona fide

registered guests. Hotels of class B where beer, wine, mixed spirit

drink, and spirits may be sold for consumption on the premises and

in the rooms of bona fide registered guests.

     (e) Specially designated merchants, where beer and wine may be

sold for consumption off the premises only.

     (f) Specially designated distributors where spirits and mixed

spirit drink may be sold for consumption off the premises only.

     (g) Special licenses where beer and wine or beer, wine, mixed

spirit drink, and spirits may be sold for consumption on the

premises only.

     (h) Dining cars or other railroad or Pullman cars, watercraft,

or aircraft, where alcoholic liquor may be sold for consumption on

the premises only, subject to rules promulgated by the commission.

     (i) Brewpubs where beer manufactured on the premises by the

licensee may be sold for consumption on or off the premises by any

of the following licensees:

     (i) Class C.

     (ii) Tavern.

     (iii) Class A hotel.

     (iv) Class B hotel.

     (j) Micro brewers where beer produced by the micro brewer may

be sold to a consumer for consumption on or off the brewery

premises.

     (k) Class G-1 license where beer, wine, mixed spirit drink,

and spirits may be sold for consumption on the premises only to

members required to pay an annual membership fee and consumption is

limited to these members and their bona fide guests.

     (l) Class G-2 license where beer and wine may be sold for

consumption on the premises only to members required to pay an

annual membership fee and consumption is limited to these members

and their bona fide guests.

     (m) Motorsports event license where beer and wine may be sold

for consumption on the premises during sanctioned motorsports

events only.

     (2) A wine maker may sell wine made by that wine maker in a

restaurant for consumption on or off the premises if the restaurant

is owned by the wine maker or operated by another person under an

agreement approved by the commission and located on the premises

where the wine maker is licensed.

     (3) A wine maker, with the prior written approval of the

commission, may conduct wine tastings of wines made by that wine

maker and may sell the wine made by that wine maker for consumption

off the premises at a location other than the premises where the

wine maker is licensed to manufacture wine, under the following

conditions:

     (a) The premises upon which the wine tasting occurs conforms

to local and state sanitation requirements.

     (b) Payment of a $100.00 fee per location is made to the

commission.

     (c) The wine tasting locations shall be considered licensed

premises.

     (d) Wine tasting does not take place between the hours of 2

a.m. and 7 a.m. Monday through Saturday, or between 2 a.m. and 12

noon on Sunday.

     (e) The premises and the licensee comply with and are subject

to all applicable rules promulgated by the commission.