September 5, 2007, Introduced by Rep. Hune 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 and villages 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 or village 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 or village
establishing its status as a redevelopment project area.
(ii) An affidavit from the assessor, as certified by the city
or village clerk, stating the total amount of investment in real
and personal property within the redevelopment project area of the
city or village 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
or village clerk, separately stating the amount of investment money
expended for manufacturing, industrial, residential, and commercial
development within the redevelopment project area of the city or
village 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 or village 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
or village assessor. This subsection does not prevent the city or
village 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 or village 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 or village over the
appropriate time period described in this subsection shall be at
least 1 of the following:
(a) Not less than $50,000,000.00 in cities or villages 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 or villages 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 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 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 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 or village 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.
(d) "Village" means a village established under either of the
following:
(i) The general law village act, 1895 PA 3, MCL 61.1 to 74.25.
(ii) The home rule village act, 1909 PA 278, MCL 78.1 to 78.28.