February 8, 2005, Introduced by Reps. Vagnozzi, Plakas, Gonzales and Condino 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 521 (MCL 436.1521), as amended by 1998 PA 282.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
521. (1) In addition to any licenses for the sale of
alcoholic
liquor for consumption on the premises that may be
available
in the local governmental unit under section 531(1), and
the
resort and resort economic development licenses authorized in
section
531(2), (3), and (4) Beginning the effective date of the
amendatory
act that added section 521a, the
commission may shall
not issue not more than 50 any
tavern or class C licenses to
under this section. However, those licenses issued under this
section on or before the effective date of section 521a shall
remain valid and may be renewed if in compliance with this section.
The commission shall renew licenses issued under this section
before the effective date of the amendatory act that added section
521a for persons who operate businesses that meet all of the
following conditions:
(a) The business is a full service restaurant, is open to the
public, and prepares food on the premises.
(b) The business is open for food service not less than 10
hours per day, 5 days a week.
(c) At least 50% of the gross receipts of the business are
derived from the sale of food for consumption on the premises. For
purposes of this subdivision, food does not include beer and wine.
(d) The business has dining facilities to seat not less than
25 persons.
(e) The business is located in a development district with a
population
of not more than 50,000, in which the
authority
development district, after a public hearing, has found that the
issuance of the license would prevent further deterioration within
the development district and promote economic growth within the
development
district. The commission shall not issue the license
unless
the local unit of government within which the authority is
located,
after holding a public hearing, passes a resolution
concurring
in the findings of the authority.
(2)
The individual signing the application for the license
shall
state and demonstrate that the applicant attempted to secure
an
appropriate on-premise escrowed license or quota license issued
under
section 531 and that, to the best of his or her knowledge, an
on-premise
license or quota license issued under section 531 is not
readily
available within the local unit of government in which the
applicant
proposes to operate.
(2) (3)
If in any licensing year the sale
of food for
consumption on the premises of the business represents less than
50% of the gross receipts for the business, the commission, after
due notice and proper hearing, shall revoke the license issued
under subsection (1).
(4)
Not more than 1 license shall be issued under subsection
(1)
to any individual, partnership, limited partnership, limited
liability
company, corporation, or any combination of any of the
above,
including stockholders, general partners, or limited
partners.
(3) A license issued under this section is transferable as to
ownership or location only within the development district.
(4) (5)
The commission shall not issue a
specially
designated merchant license, specially designated distributor
license, or any other license that allows the sale of alcoholic
liquor for consumption off the premises in conjunction with a
license
issued under subsection (1) this
section or at the
premises
for which a license has been issued under subsection (1)
this section.
(6)
The commission shall not issue a license under this
section
if the local governmental unit within which the development
district
is located has not issued all appropriate on-premise
licenses
available under section 531(1) or if an appropriate on-
premise
escrowed license is readily available in any local unit of
government
in which the development district is located. The
commission
shall not issue more than 2 licenses authorized under
this
section in any city or municipality with a population greater
than
50,000. If an applicant's proposed location is within more
than
1 development district, the applicant shall obtain the
approval
of both or all of the applicable local units of government
or
development districts.
(7)
The commission may issue the licenses under this section
without
regard to the order in which the applications for the
licenses
are received.
(8)
The commission shall annually report to the legislature
the
names of the businesses issued licenses under this section and
their
locations.
(5) (9)
As used in this section, :
(a) "Development
"development district" means any of the following:
(a) (i) An
authority district established under the tax
increment finance authority act, 1980 PA 450, MCL 125.1801 to
125.1830.
(b) (ii) An
authority district established under the local
development financing act, 1986 PA 281, MCL 125.2151 to 125.2174.
(c) (iii) A
downtown district established under 1975 PA 197,
MCL 125.1651 to 125.1681.
(d) (iv) A
principal shopping district established under
1961
PA 120, MCL 125.981 to 125.987 125.990m, before January 1,
1996.
(b)
"Escrowed license" means a license in which the rights of
the
licensee in the license or to the renewal of the license are
still
in existence and are subject to renewal and activation in the
manner
provided for in R 436.1107 of the Michigan administrative
code.
(c)
"Readily available" means available under a standard of
economic
feasibility, as applied to the specific circumstances of
the
applicant, that includes but is not limited to the following:
(i) The fair market value of the license, if
determinable.
(ii) The size and scope of the proposed operation.
(iii) The existence of mandatory contractual
restrictions or
inclusions
attached to the sale of the license.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 4220(request no.
01436'05) of the 93rd Legislature is enacted into law.