February 2, 2005, Introduced by Senator CLARKE and referred to the Committee on Economic Development, Small Business and Regulatory Reform.
A bill to amend 1998 PA 58, entitled
"Michigan liquor control code of 1998,"
by amending sections 113 and 525 (MCL 436.1113 and 436.1525),
section 525 as amended by 2004 PA 266, and by adding sections 309
and 311.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 113. (1) "Tavern" means any place licensed to sell at
retail beer and wine for consumption on the premises only.
(2) "Vehicle" means any means of transportation by land, by
water, or by air.
(3) "Vendor" means a person licensed by the commission to sell
alcoholic liquor.
(4) "Vendor of spirits" means a person selling spirits to the
commission.
(5) "Warehouse" means a premises or place primarily
constructed, used, or provided with facilities for the storage in
transit or other temporary storage of perishable goods or for the
conduct of a warehousing business, or for both.
(6) "Warehouser" means a licensee authorized by the commission
to
store alcoholic beverages
liquor, but prohibited from making
sales or deliveries to retailers unless the licensee is also the
holder of a wholesaler or manufacturer license issued by the
commission.
(7) "Wholesaler" means a person who sells beer, wine, or mixed
spirit drink only to retailers or other licensees, and who sells
sacramental wine as provided in section 301.
(8) "Wine" means the product made by the normal alcoholic
fermentation of the juice of sound, ripe grapes, or any other fruit
with the usual cellar treatment, and containing not more than 21%
of alcohol by volume, including fermented fruit juices other than
grapes and mixed wine drinks.
(9) "Wine maker" means any person licensed by the commission
to manufacture wine and sell, at wholesale or retail, wine
manufactured by that person.
(10) "Wine pub" means a license issued in conjunction with a
class C, tavern, class A hotel, or class B hotel license that
authorizes the person licensed with the class C, tavern, class A
hotel, or class B hotel to manufacture wine and sell at those
licensed premises the wine produced for consumption on or off the
licensed premises in the manner provided for in sections 309 and
311.
Sec. 309. (1) Subject to section 311, the commission shall
issue a wine pub license to a person who is licensed as a food
service establishment under the food law of 2000, 2000 PA 92, MCL
289.1101 to 289.8111, and who at the time of application for the
wine pub license is licensed and continues to be licensed as 1 or
more of the following:
(a) Class C.
(b) Tavern.
(c) Class A hotel.
(d) Class B hotel.
(2) A wine pub shall possess the necessary equipment for a
satisfactory operation and maintain it in good working order and in
a sanitary condition.
(3) A manufacturer shall comply with state law and with rules
promulgated by the department of agriculture in processing
agricultural products.
(4) A wine pub shall not sell wine in this state unless it
provides for each brand or type of wine sold a label that
truthfully describes the content of each container.
(5) A wine pub shall apply for and obtain a license for each
location of that wine pub.
(6) Each wine pub shall submit to the commission, on forms
acceptable to the commission and postmarked not later than January
15, April 15, July 15, and October 15 of each year, a wine tax
report of all wine sold under their wine pub license during the
preceding quarter.
Sec. 311. (1) The commission shall grant a wine pub license to
a person who, in addition to complying with section 309, does all
of the following:
(a) Pays the fee as prescribed in section 525.
(b) Provides evidence to the commission that not less than 25%
of the gross sales of the restaurant during the 1-year licensure
period are derived from the sale of food and nonalcoholic beverages
prepared for consumption on the premises.
(c) Complies with section 309(3) through (6).
(2) The commission shall renew a wine pub license of a person
who does all of the following:
(a) Pays the fee as prescribed in section 525.
(b) Provides evidence to the commission that not less than 25%
of the gross sales of the restaurant during the 1-year licensure
period are derived from the sale of food and nonalcoholic beverages
prepared for consumption on the premises.
(c) Complies with section 309(3) through (6).
(3) The commission shall revoke a wine pub license if, during
the 1-year licensure period, less than 25% of the gross sales of
the restaurant are derived from the sale of food and nonalcoholic
beverages prepared for consumption on the premises.
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
section shall be the accredited list of members as determined by a
sworn affidavit 30 days before the closing of the license year.
This section 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) Wine pub, $100.00.
(x)
(w) Class G-1, $1,000.00.
(y) (x)
Class G-2, $500.00.
(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.
(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 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
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 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.