May 5, 2010, Introduced by Reps. Johnson and Meekhof 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 521a (MCL 436.1521a), as added by 2006 PA 501.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 521a. (1) In order to allow cities to enhance the quality
of life for their residents and visitors to their communities, the
commission may issue public on-premises licenses in addition to
those quota licenses allowed in cities under section 531(1). The
licenses under this section shall be issued to businesses that meet
1 of the following conditions:
(a) Are located in a city redevelopment project area meeting
the criteria described in subsections (3) and (4) and are engaged
in activities determined by the commission to be related to dining,
entertainment, or recreation.
(b) Are located in a development district or area that is any
of the following:
(i) An authority district established under the tax increment
finance authority act, 1980 PA 450, MCL 125.1801 to 125.1830.
(ii) A development area established under the corridor
improvement
authority act, 2005 PA 280, MCL 125.2871 to 125.2898
125.2899.
(iii) A downtown district established under 1975 PA 197, MCL
125.1651 to 125.1681.
(iv) A principal shopping district established under 1961 PA
120, MCL 125.981 to 125.990m.
(2) The commission shall not issue a license under subsection
(1)(a) unless the applicant fulfills the following in relation to
the licensed premises:
(a) Provides the activity described in subsection (1)(a) not
less than 5 days per week.
(b) Is open to the public not less than 10 hours per day, 5
days per week.
(c) Presents verification of redevelopment project area status
to the commission that shall include the following:
(i) A resolution of the governing body of the city establishing
its status as a redevelopment project area.
(ii) An affidavit from the assessor, as certified by the city
clerk, stating the total amount of investment in real and personal
property within the redevelopment project area of the city during
the
preceding 3 years. In the case of an applicant seeking a
license
under this section within the first license cycle after the
effective
date of this section, the time period described in this
subdivision
may be up to 5 years, or 7 years for a city having a
population
between 80,000 and 85,000 according to the 2000 federal
decennial
census and the application is submitted within the first
6
months after the effective date of this section.
(iii) An affidavit from the assessor, as certified by the city
clerk, separately stating the amount of investment money expended
for manufacturing, industrial, residential, and commercial
development within the redevelopment project area of the city
during
the preceding 3 years. In the case of an applicant seeking a
license
under this section within the first license cycle after the
effective
date of this section, the time period described in this
subdivision
may be up to 5 years, or 7 years for a city having a
population
between 80,000 and 85,000 according to the 2000 federal
decennial
census and the application is submitted within the first
6
months after the effective date of this section.
(3) Relative to the licenses issued under subsection (1)(a),
the amount of commercial investment in the redevelopment project
area within the city shall constitute not less than 25% of the
total investment in real and personal property in that
redevelopment project area as evidenced by an affidavit of the city
assessor. This subsection does not prevent the city from realigning
the redevelopment project area in the presentment of verification
provided for under subsection (2)(c).
(4) In relation to a license issued under subsection (1)(a),
an applicant shall be located in a city that meets at least 1 of
the investment requirements of subsection (1)(a) during the 3 years
preceding
the submission of its application.
, or within the
preceding
5 years in the case of an applicant applying during the
first
license cycle after the effective date of this section. The
total investment in real and personal property in the redevelopment
project area within the city over the appropriate time period
described in this subsection shall be at least 1 of the following,
as applicable:
(a) Not less than $50,000,000.00 in cities having a population
of 50,000 or more.
(b) Not less than an amount reflecting $1,000,000.00 per 1,000
people in cities having a population of less than 50,000.
(5) The commission may issue a license under subsection (1)(a)
for each monetary threshold described in subsection (4)(a) and (b),
and, after reaching the initial threshold, 1 additional license for
each major fraction thereof above that original threshold.
(6) The following apply to a license issued under subsection
(1)(b):
(a) The amount expended for the rehabilitation or restoration
of the building that housed the licensed premises shall be not less
than
$75,000.00 over a period of the preceding 5 years before
submission of the application or a commitment for a capital
investment of at least that amount in the building that houses the
licensed premises, which must be expended before the issuance of
the license.
(b) The total amount of public and private investment in real
and personal property within the qualified redevelopment project
area
shall not be less than $200,000.00 over a period of the
preceding
5 years before submission of the application as verified
to the commission by means of an affidavit from the assessor, as
certified by the clerk of the local governmental unit.
(c) The licensed business is engaged in dining, entertainment,
or recreation, is open to the general public, and has a seating
capacity
of not less than 50 25 persons.
(7) The commission may issue 1 license for each monetary
threshold described in subsection (6)(b), or for each major
fraction thereof. The initial enhanced license fee for a license
issued under this section is $20,000.00.
(8) The commission shall not transfer a license issued under
this section to another location. If the licensee goes out of
business, the licensee shall surrender the license to the
commission. The governing body of the local governmental unit may
approve another applicant within a city redevelopment project area
to replace a licensee who has surrendered the license issued under
this section provided the new applicant's business meets the
requirements of this section but without regard to subsections
(2)(c), (3), and (4) or subsection (6)(b).
(9) 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.
(10) As used in this section:
(a) "City" means a city established under either of the
following:
(i) The home rule city act, 1909 PA 279, MCL 117.1 to 117.38.
(ii) The fourth class city act, 1895 PA 215, MCL 81.1 to
113.20.
(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.