HOUSE BILL NO. 5781

May 19, 2020, Introduced by Reps. Webber, Sabo, Steven Johnson, Bollin, Slagh, Rendon, Paquette, Crawford, Hall, Huizenga, Kahle, Lightner, Meerman, Hood, Elder, Leutheuser and Reilly and referred to the Committee on Regulatory Reform.

"Michigan liquor control code of 1998,"

(MCL 436.1101 to 436.2303) by adding section 551.

the people of the state of michigan enact:

Sec. 551. (1) The governing body of a local unit of government may designate a social district that contains a commons area that may be used by on-premises licensees that obtain a social district permit. If the governing body of a local unit of government designates a social district that contains a commons area under this section, the governing body must define and clearly mark the commons area in a manner prescribed by the commission. The governing body may, at any time, revoke the designation if it determines that the commons area threatens the health, safety, or welfare of the public or has become a public nuisance. The governing body shall file the designation or the revocation of the designation with the commission.

(2) The holder of a social district permit may sell alcoholic liquor for consumption on the premises within the confines of a commons area. The consumption of alcoholic liquor in the commons area may only occur during the legal hours for the sale of alcoholic liquor by the permittee. Only the holder of a social district permit or employees of that permittee may sell or dispense alcoholic liquor in the commons area.

(3) The holder of a social district permit may only serve alcoholic liquor to be consumed in the commons area in containers that prominently display the permittee's trade name or logo or some other mark that is unique to the permittee under the permittee's on-premises license. The holder of a social district permit shall not allow alcoholic liquor to leave the commons area or its premises.

(4) An on-premises licensee that is adjacent to a commons area in a social district designated by the governing body of a local unit of government under this section may obtain from the commission an annual social district permit as provided in this section. The social district permit must be issued for the same period and may be renewed in the same manner as the on-premises license held by the applicant. The commission shall develop an application for a social district permit and shall charge a fee of $250.00 for a social district permit. On receipt of a completed application and the fee, the commission shall notify the governing body of the local unit of government and verify the designation of a social district and that the location listed on the application is adjacent to and qualifies for a social district permit under this section. An application for a social district permit must be approved by the governing body of the local unit of government in which the applicant's place of business is located before the permit is granted by the commission. The commission shall provide the governing body of the local unit of government and the local chief of police with the applicant's name, business address, and business telephone number to accomplish the review as required by this subsection.

(5) As used in this section, "commons area" means an area within a social district designated by the governing body of the local unit of government that is shared by and abuts the premises of at least 2 other on-premises licensees.