September 20, 2005, Introduced by Reps. McConico, Lemmons, III, Cushingberry, Farrah, Tobocman, Leland and Lemmons, Jr. and referred to the Committee on Regulatory Reform.
A bill to amend 1998 PA 58, entitled
"Michigan liquor control code of 1998,"
by amending sections 525, 543, and 1114 (MCL 436.1525, 436.1543,
and 436.2114), section 525 as amended by 2004 PA 266 and section
1114 as added by 2004 PA 134, and by adding sections 1116 and 1117.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 525. (1) Except as otherwise provided for in this
section, the following license and permit fees shall be paid at the
time of filing license, permit, or renewal 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
section
subdivision shall be the
accredited list of members as
determined by a sworn affidavit 30 days before the closing of the
license
year. This section 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) Late night permit, $1,000.00.
(z) Sunday morning permit, $500.00.
(2) The fees provided in this act for the various types of
licenses and permits shall not be prorated for a portion of the
effective period of the license or permit.
(3)
Beginning the effective date of the amendatory act that
added
this subsection 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 or permit
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 or permit. 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 or
permit within the time required by this section, the commission
shall
return the license or permit fee and shall reduce the
license
fee for the applicant's next
renewal application, if any,
by 15%. The failure to issue a license or permit within the time
required
under this section does not allow the
department
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 or permit
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 or permit 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. 543. (1) Quarterly, upon recommendation of the
commission, the state shall pay pursuant to appropriation in the
manner prescribed by law to the city, village, or township in which
a full-time police department or full-time ordinance enforcement
department is maintained or, if a police department or full-time
ordinance enforcement department is not maintained, to the county,
to be credited to the sheriff's department of the county in which
the licensed premises are located, 55% of the amount of the
proceeds of the retailers' license fees and license renewal fees
collected in that jurisdiction, for the specific purpose of
enforcing this act and the rules promulgated under this act. Forty-
one and one-half percent of the amount of the proceeds of
retailers' license and license renewal fees collected shall be
deposited in a special fund to be annually appropriated to the
commission for carrying out the licensing and enforcement
provisions of this act. Any unencumbered or uncommitted money in
the special fund shall revert to the general fund of the state 12
months after the end of each fiscal year in which the funds were
collected. The legislature shall appropriate 3-1/2% of the amount
of the proceeds of retailers' license and license renewal fees
collected to be credited to a special fund in the state treasury
for the purposes of promoting and sustaining programs for the
prevention, rehabilitation, care, and treatment of alcoholics. This
subsection does not apply to retail license fees collected for
railroad or Pullman cars, watercraft, or aircraft, or to the
transfer fees provided in section 529.
(2) All license and license renewal fees, other than retail
license, and
license renewal fees, and permit fees under section
525(1)(y) and (z), shall be credited to the grape and wine industry
council created in section 303, to be used as provided in section
303. Money credited to the grape and wine industry council shall
not revert to the state general fund at the close of the fiscal
year, but shall remain in the account to which it was credited to
be used as provided in section 303.
(3) All retail license fees collected for railroad or Pullman
cars, watercraft, or aircraft, and the transfer fees provided in
section 529 shall be deposited in the special fund created in
subsection (1) for carrying out the licensing and enforcement
provisions of this act.
(4) Permit fees for the late night permits and Sunday morning
permits imposed in section 525(1)(y) and (z) shall be deposited
into the revolving fund created in section 221 for reallocation and
appropriation as fire protection grants.
Sec. 1114. (1) Notwithstanding R 436.1403 and R 436.1503 of
the Michigan administrative code and except as otherwise provided
under this act or 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
and shall not sell, give away, or furnish alcoholic liquor between
the
hours of 2 a.m. and 12 noon, EST, on Sunday. An
(2) Notwithstanding R 436.1403 and R 436.1503 of the Michigan
administrative code and except as otherwise provided under this act
or rule of the commission, an on-premises and an off-premises
licensee shall not sell, give away, or furnish spirits between the
hours of 2 a.m. and 12 midnight on Sunday, unless issued a Sunday
sales permit by the commission that allows the licensee to sell
spirits on Sunday between the hours of 12 noon, EST, and 12
midnight.
(3) (2)
For purposes of R 436.1403 and R 436.1503 of the
Michigan administrative code, 12 noon on Sunday is considered 12
noon on Sunday, EST, for any licensee located in the central time
zone.
(4) (3)
A reference to the time of day under this act or a
rule of the commission includes daylight savings time, when
observed.
(5) This section is subject to any late night and Sunday
morning permits issued under sections 1116 and 1117.
Sec. 1116. (1) Notwithstanding R 436.1403 and R 436.1503 of
the Michigan administrative code and except as otherwise provided
in subsection (3) and this chapter, a class C licensee may sell or
furnish alcoholic liquor from 2 a.m. until 4 a.m., EST, on Tuesday
morning through Sunday morning if that licensee holds a late night
permit issued under this section by the commission.
(2) A class C licensee wishing to sell alcoholic liquor from 2
a.m. until 4 a.m., EST, on Tuesday morning through Sunday morning
shall apply to the commission for a late night permit and pay the
additional fee described in section 525. The commission shall issue
a late night permit to an applicant not prohibited under the
circumstances described in subsection (3).
(3) The commission shall not issue a late night permit to a
retailer located within any of the following:
(a) A county, city, village, or township that prohibits the
sale of beer and wine for consumption on and off the licensed
premises between the hours of 2 a.m. and 12 midnight, EST, on
Sunday pursuant to section 1111.
(b) A county that has not authorized the sale of spirits and
mixed spirit drink for consumption on or off the licensed premises,
or both, after 12 noon, EST, on Sundays pursuant to section 1113.
(c) A county, city, village, or township that has passed a
resolution prohibiting the issuance of late night permits.
(4) A county, city, village, or township may, by resolution
duly passed, prohibit the issuance of late night permits.
(5) The issuance of a late night permit under this section
only allows the permit holder to sell or furnish the type of
alcoholic liquor authorized by its license.
Sec. 1117. (1) Notwithstanding R 436.1403 and R 436.1503 of
the Michigan administrative code and except as otherwise provided
in subsection (3) and this chapter, a class C licensee may sell or
furnish alcoholic liquor between the hours of 9 a.m. and 12 noon,
EST, on Sunday if that licensee holds a Sunday morning permit
issued under this section by the commission.
(2) A class C licensee wishing to sell alcoholic liquor
between the hours of 9 a.m. and 12 noon, EST, on Sunday shall apply
to the commission for a Sunday morning permit and pay the
additional fee described in section 525. The commission shall issue
a Sunday morning permit to an applicant not prohibited under the
circumstances described in subsection (3).
(3) The commission shall not issue a Sunday morning permit to
a retailer located within any of the following:
(a) A county, city, village, or township that prohibits the
sale of beer and wine for consumption on and off the licensed
premises between the hours of 2 a.m. and 12 midnight, EST, on
Sunday pursuant to section 1111.
(b) A county that has not authorized the sale of spirits and
mixed spirit drink for consumption on or off the licensed premises,
or both, after 12 noon, EST, on Sundays pursuant to section 1113.
(c) A county, city, village, or township that has passed a
resolution prohibiting the issuance of Sunday morning permits.
(4) A county, city, village, or township may, by resolution
duly passed, prohibit the issuance of Sunday morning permits.
(5) The issuance of a Sunday morning permit under this section
only allows the permit holder to sell or furnish the type of
alcoholic liquor authorized by its license.