SENATE BILL No. 563

 

 

June 10, 2003, Introduced by Senator BARCIA and referred to the Committee on Gaming and Casino Oversight.

 

 

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1998 PA 58, entitled                                              

                                                                                

    "Michigan liquor control code of 1998,"                                     

                                                                                

    by amending sections 217, 903, and 1023 (MCL 436.1217, 436.1903,            

                                                                                

    and 436.2023), section 903 as amended by 2000 PA 431.                       

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 217.  (1) The commission may make investigations that                  

                                                                                

2   it considers proper in the administration of this act and the               

                                                                                

3   rules promulgated under this act concerning alcoholic liquor,               

                                                                                

4   or  the manufacture, distribution, or sale of alcoholic liquor,            

                                                                                

5   or  the collection of taxes on alcoholic liquor, or video                  

                                                                                

6   lottery violations under article 2 of the                                   

                                                                                

7   McCauley-Traxler-Law-Bowman-McNeely lottery act, 1972 PA 239, or            

                                                                                

8   rules promulgated under that article.                                       

                                                                                

9       (2) A licensee shall make the licensed premises available for               

                                                                                

10  inspection and search by a commission investigator or law                   

                                                                                


                                                                                

1   enforcement officer empowered to enforce the commission's rules             

                                                                                

2   and this act or article 2 of the                                            

                                                                                

3   McCauley-Traxler-Law-Bowman-McNeely lottery act, 1972 PA 239, and           

                                                                                

4   rules under that article during regular business hours or when              

                                                                                

5   the licensed premises are occupied by the licensee or a clerk,              

                                                                                

6   servant, agent, or employee of the licensee.  Evidence of a                 

                                                                                

7   violation  of this act or rules promulgated under this act                  

                                                                                

8   discovered under this subsection may be seized and used in an               

                                                                                

9   administrative or court proceeding.                                         

                                                                                

10      (3) The commission or  a duly  an authorized agent of the                   

                                                                                

11  commission may examine or copy the books, records, or papers of a           

                                                                                

12  person relative to a requirement pertaining to this act, access             

                                                                                

13  to which has been obtained pursuant to this section.                        

                                                                                

14      (4) A member of the commission or  a duly  an authorized                    

                                                                                

15  agent of the commission may issue a subpoena requiring a person             

                                                                                

16  to appear before the commission or its  duly  authorized agent at           

                                                                                

17  any reasonable time and place, to be examined with reference to             

                                                                                

18  any matter within the scope of the inquiry or investigation being           

                                                                                

19  conducted by the commission, and to produce any books, records,             

                                                                                

20  or papers pertaining to the question involved.                              

                                                                                

21      (5) A member of the commission or  a duly  an authorized                    

                                                                                

22  agent of the commission may administer an oath or affirmation to            

                                                                                

23  a witness in  any  a matter before the commission, certify to               

                                                                                

24  official acts, and take depositions.                                        

                                                                                

25      (6) In case of disobedience of a subpoena, the commission or                

                                                                                

26  its  duly  authorized agent may invoke the aid of  any  a circuit           

                                                                                

27  court of the state to compel the attendance and testimony of                


                                                                                

1   witnesses and the production of books, records, and papers                  

                                                                                

2   pertaining to the question involved.  A circuit court of this               

                                                                                

3   state within the jurisdiction of which the inquiry is conducted             

                                                                                

4   may, in case of contumacy or refusal to obey a subpoena, issue an           

                                                                                

5   order requiring the person to appear before the commission or               

                                                                                

6   its duly  an authorized agent of the commission, to produce                

                                                                                

7   books, records, and papers if so ordered, and to give evidence              

                                                                                

8   regarding the matter in question.  Failure to obey the order of             

                                                                                

9   the court may be punished by the court as a contempt of court.              

                                                                                

10      (7) The fees of witnesses required to appear before the                     

                                                                                

11  commission shall be the same as  those  fees allowed to witnesses           

                                                                                

12  in the circuit courts and shall be paid by the commission.                  

                                                                                

13      (8) A sheriff's department or police department,  shall,                    

                                                                                

14  upon request of the commission,  cause to be  shall serve or have           

                                                                                

15  served a subpoena that is directed to a person located within the           

                                                                                

16  jurisdiction of the sheriff's department or police department.  A           

                                                                                

17  fee shall not be charged for this service by the sheriff's                  

                                                                                

18  department or police department.  Subpoenas may also be served by           

                                                                                

19  an investigator of the commission.                                          

                                                                                

20      (9) The commission shall adopt a suitable seal, of which all                

                                                                                

21  courts of the state shall take judicial notice, and all                     

                                                                                

22  proceedings, orders, licenses, and official acts of the                     

                                                                                

23  commission shall be authenticated by that seal.  Certified copies           

                                                                                

24  of the orders and records of the commission  shall be  are prima            

                                                                                

25  facie evidence of the acts of the commission in  any  a court of            

                                                                                

26  this state.                                                                 

                                                                                

27      Sec. 903.  (1) The commission or  any  a commissioner or                    


                                                                                

1   duly  authorized agent of the commission designated by the                 

                                                                                

2   chairperson of the commission, upon due notice and proper                   

                                                                                

3   hearing, may suspend or revoke  any  a license  upon  for a                 

                                                                                

4   violation of this act or  any of the rules  a rule promulgated by           

                                                                                

5   the commission under this act.  The commission may suspend or               

                                                                                

6   revoke the license of a licensee that has a video lottery agent             

                                                                                

7   license under article 2 of the                                              

                                                                                

8   McCauley-Traxler-Law-Bowman-McNeely lottery act, 1972 PA 239, for           

                                                                                

9   a violation of article 2 of the                                             

                                                                                

10  McCauley-Traxler-Law-Bowman-McNeely lottery act, 1972 PA 239, or            

                                                                                

11  a rule promulgated under that article. The commission or  any  a            

                                                                                

12  commissioner or  duly  authorized agent of the commission                   

                                                                                

13  designated by the chairperson of the commission  ,  may assess a            

                                                                                

14  penalty of not more than $300.00 for each violation,  of this act           

                                                                                

15  or rules promulgated under this act,  or not more than $1,000.00            

                                                                                

16  for each violation of section 801(2), in addition to or  in lieu            

                                                                                

17  instead of revocation or suspension of the license, which penalty           

                                                                                

18  shall be paid to the commission,  and  deposited with the state             

                                                                                

19  treasurer, and  shall be  credited to the general fund of the               

                                                                                

20  state.  The commission shall hold a hearing and order the                   

                                                                                

21  suspension or revocation of a license if the licensee has been              

                                                                                

22  found liable for 3 or more separate violations of section 801(2)            

                                                                                

23  which violations  that occurred on different occasions within a            

                                                                                

24  24-month period unless  such  the violations for the sale,                  

                                                                                

25  furnishing, or giving of alcoholic liquor to a minor were                   

                                                                                

26  discovered by the licensee and disclosed to an appropriate law              

                                                                                

27  enforcement agency immediately upon discovery.                              


                                                                                

1       (2) The commission shall provide a procedure by which a                     

                                                                                

2   licensee who is aggrieved by  any  a penalty imposed under                  

                                                                                

3   subsection (1)  and any  or a suspension or revocation of a                 

                                                                                

4   license ordered by the commission, a commissioner, or  a duly  an           

                                                                                

5   authorized agent of the commission may request a hearing  for the           

                                                                                

6   purpose of presenting any  to present facts or reasons to the               

                                                                                

7   commission as to why the penalty, suspension, or revocation                 

                                                                                

8   should be modified or rescinded.   Any such  A request for a                

                                                                                

9   hearing under this subsection shall be in writing and accompanied           

                                                                                

10  by a fee of $25.00.  The commission, after reviewing the record             

                                                                                

11  made before a commissioner or  a duly  an authorized agent of the           

                                                                                

12  commission, may allow or refuse to allow the hearing in                     

                                                                                

13  accordance with the commission's rules.  The right to a hearing             

                                                                                

14  provided in this subsection, however, shall not be interpreted by           

                                                                                

15  any  a court as curtailing, removing, or annulling the right of            

                                                                                

16  the commission to suspend or revoke licenses as provided  for  in           

                                                                                

17  this act.  A licensee does not have a right of appeal from the              

                                                                                

18  final determination of the commission, except by leave of the               

                                                                                

19  circuit court.  Notice of the order of suspension or revocation             

                                                                                

20  of a license or of the assessment of a penalty, or both, shall be           

                                                                                

21  given in the manner prescribed by the commission.  The suspension           

                                                                                

22  or revocation of a license or the assessment of a penalty, or               

                                                                                

23  both, by the commission or  a duly  an authorized agent of the              

                                                                                

24  commission does not prohibit the institution of a criminal                  

                                                                                

25  prosecution for a violation of this act.  The institution of a              

                                                                                

26  criminal prosecution for a violation of this act or the acquittal           

                                                                                

27  or conviction of a person for a violation of this act does not              


                                                                                

1   prevent the suspension or revocation of a license or the                    

                                                                                

2   assessment of a penalty, or both, by the commission.  In a                  

                                                                                

3   hearing for the suspension or revocation of a license issued                

                                                                                

4   under this act, proof that the defendant licensee or an agent or            

                                                                                

5   employee of the licensee demanded and was shown, before                     

                                                                                

6   furnishing any alcoholic liquor to a minor, a motor vehicle                 

                                                                                

7   operator or chauffeur license or a registration certificate                 

                                                                                

8   issued by the federal selective service, or other bona fide                 

                                                                                

9   documentary evidence of majority and identity of the person, may            

                                                                                

10  be offered as evidence in a defense to a proceeding for the                 

                                                                                

11  suspension or revocation of a license issued under this act.  A             

                                                                                

12  licensee who has reason to believe that a minor has used                    

                                                                                

13  fraudulent identification to purchase alcoholic liquor in                   

                                                                                

14  violation of section 703 shall file a police report concerning              

                                                                                

15  the violation with a local law enforcement agency and shall also            

                                                                                

16  present the alleged fraudulent identification to the local law              

                                                                                

17  enforcement agency at the time of filing the report if the                  

                                                                                

18  identification is in the possession of the licensee.  The                   

                                                                                

19  commission may promulgate rules pursuant to the administrative              

                                                                                

20  procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328,                  

                                                                                

21  regarding  the utilization  use by licensees of equipment                   

                                                                                

22  designed to detect altered or forged driver licenses, state                 

                                                                                

23  identification cards, and other forms of identification.                    

                                                                                

24      (3) In addition to the hearing commissioners provided for in                

                                                                                

25  section 209, the chairperson of the commission may designate not            

                                                                                

26  more than 2  duly  authorized agents to hear violation cases.  A            

                                                                                

27  person appointed under this subsection shall be a member in good            


                                                                                

1   standing of the state bar of Michigan.                                      

                                                                                

2       (4)  A duly  An authorized agent who has been designated by                 

                                                                                

3   the chairperson  pursuant to  under subsection (3)  shall have              

                                                                                

4   has, in  the  hearing  of  violation cases, the same authority              

                                                                                

5   and responsibility as  does  a hearing commissioner under this              

                                                                                

6   act and the rules promulgated under this act.                               

                                                                                

7       (5)  A duly  An authorized agent who has been designated by                 

                                                                                

8   the chairperson  pursuant to  under subsection (3) shall be                 

                                                                                

9   ineligible for appointment to the commission for a period of                

                                                                                

10  1 year after the person ceases to serve as  a duly  an authorized           

                                                                                

11  agent.                                                                      

                                                                                

12      Sec. 1023.  (1) The commission shall not prohibit licensees                 

                                                                                

13  from allowing pinball machines on the premises for the purpose of           

                                                                                

14  amusement.                                                                  

                                                                                

15      (2) The commission shall not prohibit a licensee from                       

                                                                                

16  obtaining a video lottery agent license under article 2 of the              

                                                                                

17  McCauley-Traxler-Law-Bowman-McNeely lottery act, 1972 PA 239.               

                                                                                

18  The money generated by a licensee from conducting a video lottery           

                                                                                

19  game is subject to the regulation and allocation formula                    

                                                                                

20  contained in article 2 of the McCauley-Traxler-Law-Bowman-McNeely           

                                                                                

21  lottery act, 1972 PA 239.                                                   

                                                                                

22      Enacting section 1.  This amendatory act does not take                      

                                                                                

23  effect unless Senate Bill No. 562                                           

                                                                                

24                            of the 92nd Legislature is enacted into           

                                                                                

25  law.