SB-0929, As Passed House, December 8, 2016

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 929

A bill to amend 1998 PA 58, entitled

"Michigan liquor control code of 1998,"

by amending sections 525, 533, 539, 541, and 543 (MCL 436.1525,

436.1533, 436.1539, 436.1541, and 436.1543), section 525 as amended

by 2016 PA 315, section 533 as amended by 2016 PA 137, section 541

as amended by 2016 PA 84, and section 543 as amended by 2010 PA

213, and by adding section 903b.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 525. (1) Except as otherwise provided in this section,

the following license fees must be paid at the time of filing

applications or as otherwise provided in this act and are subject

to allocation under section 543:

(a) Manufacturers of spirits, 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.

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 whether the location is 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 $1.00 for each bedroom in excess of 20, but not more

than $500.00 total.

(m) Hotels of class B selling beer, wine, mixed spirit drink,

and spirits, a minimum fee of $600.00 and $3.00 for each bedroom in

excess of 20. If a hotel of class B sells beer, wine, mixed spirit

drink, and spirits in more than 1 public bar, a fee of $350.00 must

be paid for each additional public bar, other than a bedroom.

(n) Taverns, selling beer and wine, $250.00.

(o) Class C license selling beer, wine, mixed spirit drink,

and spirits, $600.00. Subject to section 518(2), if a class C

licensee sells beer, wine, mixed spirit drink, and spirits in more

than 1 bar, a fee of $350.00 must be paid for each additional bar.

In municipally owned or supported facilities in which nonprofit

organizations operate concession stands, a fee of $100.00 must be

paid for each additional bar.

(p) Clubs selling beer, wine, mixed spirit drink, and spirits,

$300.00 for clubs having 150 or fewer accredited members and $1.00

for each member in excess of 150. Clubs shall submit a list of

members by an affidavit 30 days before the closing of the license

year. The affidavit must be used only for determining the license

fees to be paid under this subdivision. This subdivision 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 must 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 the license or permit issued to a bona fide nonprofit

association, organized and in continuous existence for 1 year

before the filing of its application, is $25.00. The commission

shall not grant more than 12 special licenses 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) Class G-1, $1,000.00.

(x) Class G-2, $500.00.

(y) Motorsports event license, the amount as described and

determined under section 518(2).

(z) Small distiller, $100.00.

(aa) Wine auction license, $50,000.00.

(bb) Nonpublic continuing care retirement center license,

$600.00.

(cc) Conditional license approved under subsection (6) and

issued under subsection (7), $300.00.

(2) The fees provided in this act for the various types of

licenses must not be prorated for a portion of the effective period

of the license. Notwithstanding subsection (1), the initial license

fee for a license issued under section 531(3) or (4) is $20,000.00.

The renewal license fee is the amount described in subsection (1).

However, the commission shall not impose the $20,000.00 initial

license fee for applicants whose license eligibility was already

approved on July 20, 2005.

(3) If the commission requires an applicant to submit

fingerprints, the applicant shall have the fingerprints taken by a

local law enforcement agency, the department of state police, or

any other person qualified to take fingerprints as determined by

the department of state police. The applicant shall submit the

fingerprints and the appropriate state and federal fees, which

shall be borne by the applicant, to the department of state police

and the Federal Bureau of Investigation for a criminal history

check. After conducting the criminal history check, the department

of state police shall provide the commission with a report of the

criminal history check. The report must include criminal history

record information concerning the person who is the subject of the

criminal history check that is maintained by the department of

state police. If a criminal arrest fingerprint card is subsequently

submitted to the department of state police and matches against a

fingerprint that was submitted under this act and stored in its

automated fingerprint identification system (AFIS) database, the

department of state police shall notify the commission.

(4) Except for a resort or resort economic development license

issued under section 531(2), (3), (4), or (5) or a license issued

under section 521a, the commission shall issue an initial or

renewal license not later than 90 days after the applicant files a

completed application. The application is considered to be received

the date the application is received by an agency or department of

this state. If the commission determines that an application is

incomplete, 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 is not an

approval of the application for the license and does not confer

eligibility on an applicant determined otherwise ineligible for

issuance of a license. The 90-day period is tolled for the

following periods under any of the following circumstances:

(a) If notice is sent by the commission of a deficiency in the

application, until the date all of the requested information is

received by the commission.

(b) For the time required to complete actions required by a

person, other than the applicant or the commission, including, but

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.

(5) 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 commission to otherwise delay the processing of the

application, and the application, on completion, must 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 because the license fee was

refunded or discounted under this subsection.

(6) If, in addition to a completed application under this

section, an applicant submits a separate form requesting a

conditional license with an acceptable proof of financial

responsibility form under section 803, an executed property

document, and, for an application to transfer the location of an

existing retailer license other than specially designated

distributor license, a church or school proximity affidavit on a

form prescribed by the commission attesting that the proposed

location is not within 500 feet of a church or school building

using the method of measurement required under section 503, the

commission shall, after considering the arrest and conviction

records or previous violation history in the management, operation,

or ownership of a licensed business, approve or deny a conditional

license. A conditional license issued under subsection (7) must

only include any existing permits and approvals held in connection

with the license, other than permits or approvals for which the

conditional applicant does not meet the requirements in this act or

rules promulgated under this act, or permits or approvals that the

conditional applicant has requested to cancel as part of the

application that serves as the basis for the conditional license.

The commission shall not issue a new permit with a conditional

license issued under subsection (7). The following applicants may

request a conditional license:

(a) An applicant seeking to transfer ownership of an existing

retailer license at the same location to sell alcoholic liquor for

consumption on or off the premises.

(b) An applicant seeking to transfer the ownership and

location of an existing retailer license, other than a specially

designated distributor license, to sell alcoholic liquor for

consumption on or off the premises.

license, other than a specially designated merchant license issued

under section 533(6), not to be held in conjunction with a license

for the sale of alcoholic liquor for consumption on the premises.

(7) The commission shall issue a conditional license to

applicants approved under subsection (6) within 20 business days

after receipt of a completed application and a completed

conditional license request form and documentation for a

conditional license at a single location. The commission may take

up to 30 business days to issue conditional licenses to approved

applicants seeking conditional licenses at multiple locations.

However, for an applicant described under this subsection that is

seeking a specially designated merchant license under section

533(7), the commission may take up to 45 business days to issue a

conditional license. Notwithstanding the applicant's submission of

a church or school proximity affidavit under subsection (6), if the

commission determines that a conditional license in conjunction

with an application to transfer the location of an existing

retailer license has been issued under this subsection at a

proposed location that is within 500 feet of a church or school

building, the commission shall suspend the conditional license and

notify the church or school of the proposed location under the

rules promulgated under this act. If the commission issues a

conditional license under this subsection based on a church or

school proximity affidavit under subsection (6) without knowledge

that the representations included in the affidavit are incorrect,

this state is not liable to any person for the commission's

issuance of the conditional license. The commission may assume

without inquiry the existence of the facts contained in the

affidavit.

(8) A conditional license approved under subsection (6) and

issued under subsection (7) is nontransferable and nonrenewable. A

conditional licensee is required to comply with the server training

requirements in section 501(1) beginning on the date a conditional

license is issued under subsection (7) regardless of whether the

conditional licensee is actively operating under the conditional

license.

(9) A conditional license approved under subsection (6) and

issued under subsection (7) expires when the first of the following

occurs:

(a) The commission issues an order of denial of the license

application that serves as the basis for the conditional license

and all administrative remedies before the commission have been

exhausted.

(b) The commission issues the license under subsection (4) for

which the applicant submitted the license application that serves

as the basis for the conditional license.

commission in writing that the initial or conditional application

should be canceled.

(d) One year passes after the date the conditional license was

issued, notwithstanding any suspension of the conditional license

by the commission.

(10) If a conditional licensee fails to maintain acceptable

proof of its financial responsibility as required under section

803, the commission shall summarily suspend the conditional license

under section 92(2) of the administrative procedures act of 1969,

1969 PA 306, MCL 24.292, until the conditional licensee files an

acceptable proof of financial responsibility form under section

803. If a conditional license is revoked, the conditional licensee

shall not recover from this state or a unit of local government any

compensation for property, future income, or future economic loss

because of the revocation.

(11) On issuing a conditional license under subsection (7),

the commission shall, until the conditional license expires under

subsection (9), place the existing license under subsection (4) for

which the applicant submitted the application that serves as the

basis for the conditional license in escrow in compliance with R

436.1107 of the Michigan Administrative Code. If the conditional

license expires under subsection (9), an existing licensee may do 1

of the following:

(a) Request that the commission release the license from

escrow.

(b) Keep the license in escrow. The escrow date for compliance

with R 436.1107 of the Michigan Administrative Code is the date the

conditional license expires.

(12) 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 (4).

(b) The number of applications denied.

90-day time period and the amount of money returned to licensees

under subsection (5).

(13) 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 this state.

Sec. 533. (1) ~~A person may apply for a specially designated~~

~~merchant license without holding or applying for any other license~~

~~under this act.~~Subject to subsection (12), the commission shall not

issue a new specially designated merchant license or transfer an

existing specially designated merchant license unless the applicant

is an approved type of business. An applicant is not an approved

type of business unless the applicant meets 1 or more of the

following conditions:

(a) The applicant holds and maintains a retail food

establishment license issued under the food law, 2000 PA 92, MCL

289.1101 to 289.8111. As used in this subdivision, "retail food

establishment" means that term as defined in section 1111 of the

food law, 2000 PA 92, MCL 289.1111.

(b) The applicant holds and maintains an extended retail food

establishment license issued under the food law, 2000 PA 92, MCL

289.1101 to 289.8111. As used in this subdivision, "extended retail

food establishment" means that term as defined in section 1107 of

the food law, 2000 PA 92, MCL 289.1107.

issuance of a specially designated distributor license to the

applicant.

(d) The applicant holds or the commission approves the

issuance of a class C license to the applicant.

(e) The applicant holds or the commission approves the

issuance of a class A hotel license to the applicant.

(f) The applicant holds or the commission approves the

issuance of a class B hotel license to the applicant.

(g) The applicant holds or the commission approves the

issuance of a club license to the applicant.

(h) The applicant holds or the commission approves the

issuance of a tavern license to the applicant.

(i) The applicant holds or the commission approves the

issuance of a class G-1 license to the applicant.

(j) The applicant holds or the commission approves the

issuance of a class G-2 license to the applicant.

(2) ~~An applicant for a class C, class A hotel, class B hotel,~~

~~class G-1, class G-2, tavern, or~~ A specially designated distributor

~~license or a retailer licensed under this act to sell alcoholic~~

~~liquor~~ may apply for a license as a specially designated merchant.

(3) An applicant for a specially designated merchant license

not in conjunction with an on-premises license, except as provided

in section 229(1), or a person licensed under this act as a

specially designated merchant only or a class B hotel may apply for

a license as a specially designated distributor.

(4) In cities, incorporated villages, or townships, the

commission shall issue only 1 specially designated distributor

license for each 3,000 of population, or fraction of 3,000. The

commission may waive the quota requirement under this subsection if

there is no existing specially designated distributor licensee

within 2 miles of the applicant, measured along the nearest traffic

route.

(5) Except as otherwise provided in this section, in cities,

incorporated villages, or townships, the commission shall issue

only 1 specially designated merchant license for each 1,000 of

population. The quota under this subsection does not apply to any

of the following:

(a) An applicant for a specially designated merchant license

that is an applicant for or the holder of a license listed in

subsection (1)(d) to (j).

(b) An applicant for or the holder of a specially designated

merchant license whose licensed establishment meets 1 or more of

the following conditions:

(i) Meets both of the following conditions:

(A) The licensed establishment is at least 20,000 square feet.

(B) The licensed establishment's gross receipts derived from

the sale of food are at least 20% of the total gross receipts.

(ii) The licensed establishment is also a pharmacy as that

term is defined in section 17707 of the public health code, 1978 PA

368, MCL 333.17707.

designated merchant under section 541.

(d) A specially designated merchant license issued under

subsection (7).

(e) A specially designated merchant license issued to a marina

under section 539.

(6) The commission may waive the quota under subsection (5) if

there is no existing specially designated merchant within 2 miles

of the applicant, measured along the nearest traffic route.

(7) The commission shall waive the quota under subsection (5)

if both of the following apply:

(a) The applicant applies for the specially designated

merchant license within 60 days after the effective date of the

amendatory act that added subsection (5).

(b) The applicant is a retail dealer that holds a license

issued under section 6(1) of the motor fuels quality act, 1984 PA

44, MCL 290.646. The applicant shall include a copy of the license

described in this subdivision with the applicant's application

under this subsection. As used in this subdivision, "retail dealer"

means that term as defined in section 2 of the motor fuels quality

act, 1984 PA 44, MCL 290.642.

(8) A specially designated merchant license issued under this

section may be transferred to an applicant whose proposed operation

is located within any local governmental unit in a county in which

the specially designated merchant license was located. If the local

governmental unit within which the former licensee's premises were

located spans more than 1 county, a specially designated merchant

license may be transferred to an applicant whose proposed operation

is located within any local governmental unit in either county. If

a specially designated merchant license is transferred to a local

governmental unit other than that local governmental unit within

which the specially designated merchant license was originally

issued, the commission shall count that transferred specially

designated merchant license against the local governmental unit

originally issuing the specially designated merchant license.

(9) Except as otherwise provided in subsection (10), the quota

under subsection (5) does not bar the right of an existing

specially designated merchant to renew the specially designated

merchant license or transfer the specially designated merchant

license. This subsection applies to a specially designated merchant

license issued or renewed before, on, or after the effective date

of the amendatory act that added subsection (5).

(10) A specially designated merchant license issued after the

effective date of the amendatory act that added subsection (5) to a

person described in subsection (5)(a) or (b) or to a specially

designated merchant license issued under subsection (6) may not be

transferred to another location.

(11) An applicant for or the holder of a specially designated

merchant license that owns or operates a motor vehicle fuel pump on

or adjacent to the licensed premises is not required to meet the

conditions under section 541 as that section existed before the

effective date of the amendatory act that added subsection (5).

(12) For a marina that maintains motor vehicle fuel pumps on

or adjacent to the licensed premises, or maintains a financial

interest in any motor vehicle fuel pumps, the commission may only

issue a special designated merchant license to the marina under

section 539.

(13) For purposes of this section, population is determined by

the latest federal decennial census, by a special census under

section 6 of the home rule city act, 1909 PA 279, MCL 117.6, or

section 7 of the Glenn Steil state revenue sharing act of 1971,

1971 PA 140, MCL 141.907, or by the latest census and corrections

published by the United States Department of Commerce, Bureau of

the Census, whichever is later.

Sec. 539. A marina that is situated on 1 of the Great Lakes,

on that part of an inland waterway or tributary connected to and

navigable to 1 of the Great Lakes, or on a Great Lakes connecting

waterway may be issued a license as a specially designated merchant

or specially designated distributor, notwithstanding the fact that

the marina maintains motor vehicle fuel pumps on or adjacent to the

licensed premises, or maintains a financial interest in any motor

vehicle fuel pumps, if ~~both~~ all of the following conditions are

met:

(a) The marina's primary business is the sale of boats or the

provision of services and supplies to recreational power cruisers

and sailboats of the type that typically travel on the Great Lakes.

(b) The fuel pumps are used for dispensing fuel only to boats

described in subdivision (a).

section 533(1).

Sec. 541. (1) Except as provided in section 539 or subsections

(2) to ~~(6),~~ (5), the commission shall not allow an applicant for or

the holder of a specially designated distributor license or

~~specially designated merchant license from owning or operating~~ to

own or operate motor vehicle fuel pumps on or adjacent to the

licensed premises, unless both of the following conditions are met:

(a) One or both of the following conditions exist:

(i) The applicant or licensee is located in a neighborhood

shopping center.

(ii) ~~Subject to subsection (9), the~~ The applicant or licensee

maintains a minimum inventory on the premises, excluding alcoholic

liquor and motor vehicle fuel, of not less than $250,000.00, at

cost, of those goods and services customarily marketed by approved

types of businesses.

(b) The site of payment of alcoholic liquor and selection of

alcoholic liquor is not less than 5 feet from that point where

motor vehicle fuel is dispensed.

(2) The commission shall not prohibit an applicant for or the

holder of a specially designated distributor license ~~or specially~~

~~designated merchant license~~ from owning or operating motor vehicle

fuel pumps on or adjacent to the licensed premises, if all of the

following conditions are met:

(a) The applicant is located in a township with a population

of 7,000 or less that is not contiguous with any other township.

For purposes of this subdivision, a township is not considered

contiguous by water.

(b) The applicant or licensee maintains a minimum inventory on

the premises, excluding alcoholic liquor and motor vehicle fuel, of

not less than $12,500.00, at cost, of those goods and services

customarily marketed by approved types of businesses.

evidenced by a resolution ~~duly~~ adopted by the township and

submitted with the application to the commission.

~~(3) The commission shall not prohibit an applicant for or the~~

~~holder of a specially designated merchant license from owning or~~

~~operating motor vehicle fuel pumps on or adjacent to the licensed~~

~~premises if both of the following conditions are met:~~

~~(a) The applicant or licensee is located in any of the~~

~~following:~~

(i~~) A city, incorporated village, or township with a~~

~~population of 3,500 or less and a county with a population of~~

~~31,000 or more.~~

(ii~~) A city, incorporated village, or township with a~~

~~population of 4,000 or less and a county with a population of less~~

~~than 31,000.~~

(~~iii~~~~) A township in which the applicant or licensee is the~~

~~only person that owns or operates motor fuel pumps within the~~

~~township on the date of application. The commission shall not~~

~~revoke a license that was granted under this subparagraph if a~~

~~second person that owns or operates motor fuel pumps opens within~~

~~the township after the original application was filed.~~

~~(b) The applicant or licensee maintains a minimum inventory on~~

~~the premises, excluding alcoholic liquor and motor vehicle fuel, of~~

~~not less than $10,000.00, at cost, of those goods and services~~

~~customarily marketed by approved types of businesses.~~

(3) ~~(4)~~ The commission shall not prohibit an applicant for or

the holder of a specially designated distributor license from

owning or operating motor vehicle fuel pumps on or adjacent to the

licensed premises if both of the following conditions are met:

(a) The applicant or licensee is located in either of the

following:

(i) A city, incorporated village, or township with a

population of 3,500 or less and a county with a population of

31,000 or more.

(ii) A city, incorporated village, or township with a

population of 4,000 or less and a county with a population of less

than 31,000.

(b) The applicant or licensee maintains a minimum inventory on

the premises, excluding alcoholic liquor and motor vehicle fuel, of

not less than $12,500.00, at cost, of those goods and services

customarily marketed by approved types of businesses.

(4) ~~(5)~~ A person that was issued a specially designated

merchant license or specially designated distributor license at a

location at which another person owned, operated or maintained

motor vehicle fuel pumps at the same location may have or acquire

an interest in the ownership, operation or maintenance of those

motor vehicle fuel pumps.

(5) ~~(6)~~ The commission may transfer ownership of a specially

designated merchant license or specially designated distributor

license to a person that owns or is acquiring an interest in motor

vehicle fuel pumps already in operation at the same location at

which the license is issued.

(6) The commission shall not prohibit an applicant for or the

holder of a specially designated merchant license from owning or

operating motor vehicle fuel pumps on or adjacent to the licensed

premises if the site of payment of alcoholic liquor and selection

of alcoholic liquor is not less than 5 feet from that point where

motor vehicle fuel is dispensed. This subsection does not apply to

a specially designated merchant license issued to a marina under

section 539.

(7) If a specially designated merchant's licensed premises are

a primary location, the commission may issue a secondary location

permit to the specially designated merchant, as an extension of the

specially designated merchant's license, for the sale of beer,

wine, or both, at the secondary location. The commission shall

issue a secondary location permit only to a specially designated

merchant to which both of the following apply:

(a) The holder of the specially designated merchant license

for the primary location premises or a subsidiary or affiliate of

the license holder owns or leases the secondary location.

(b) The holder of the specially designated merchant license

for the primary location or a subsidiary or affiliate of the

license holder owns or operates motor vehicle fuel pumps at the

secondary location. ~~under subsection (1).~~

(8) An applicant for a secondary location permit shall submit

an application to the commission in a format provided by the

commission and accompanied by an application and initial permit fee

of $100.00. The application must include a diagram of the secondary

location with building dimensions and a depiction of the distance

measurement described in subsection ~~(1)(b).~~ (6). The secondary

location permit expires on the same date as the specially

designated merchant license and may be renewed in conjunction with

the specially designated merchant license. The secondary location

permit holder may renew the secondary location permit by submitting

a permit renewal fee of $100.00 and a completed renewal

application.

~~(9) After a specially designated merchant is issued a~~

~~secondary location permit under subsection (7) and if the specially~~

~~designated merchant's licensed premises are a primary location that~~

~~is not a neighborhood shopping center, for purposes of determining~~

~~the minimum inventory condition described in subsection (1)(a)(~~ii),

~~the primary location and the secondary location are considered 1~~

~~premises.~~

(9) ~~(10)~~ After a specially designated merchant is issued a

secondary location permit under subsection (7), if a subsidiary or

affiliate of the specially designated merchant owns or operates the

secondary location and the subsidiary or affiliate shares the same

ultimate controlling party of the specially designated merchant,

the secondary location may receive and sell beer, wine, or both

under the specially designated merchant's license.

(10) ~~(11)~~ The holder of a secondary location permit shall

prominently display the secondary location permit at the secondary

location in the point-of-sale area.

(11) ~~(12)~~ As used in this section:

(a) "Neighborhood shopping center" means 1 commercial

establishment, or a group of commercial establishments organized or

operated as a unit, that is related in location, size, and type of

shop to the trade area that the unit serves, and consists of not

less than 50,000 square feet of leasable retail space, and has

access to off-street parking spaces.

(b) "Primary location" means licensed premises that ~~meet~~ meets

both of the following conditions: ~~under subsection (1).~~

(i) One or both of the following conditions exist:

(A) The applicant or licensee is located in a neighborhood

shopping center.

(B) The applicant or licensee maintains a minimum inventory on

the premises, excluding alcoholic liquor and motor vehicle fuel, of

not less than $250,000.00, at cost, of those goods and services

customarily marketed by approved types of businesses.

(ii) The site of payment of alcoholic liquor and selection of

alcoholic liquor is not less than 5 feet from that point where

motor vehicle fuel is dispensed.

holder of a specially designated merchant license for a primary

location, or a subsidiary or affiliate of that license holder, that

takes place on real property, that includes at least 1 building and

1 or more motor vehicle fuel pumps, and that is located on or

adjacent to the primary location. ~~Upon~~ On commission approval of

the secondary location permit, the secondary location is considered

licensed premises and an extension of the licensed primary

location.

Sec. 543. (1) Quarterly, ~~upon~~ on the commission's

recommendation, ~~of the commission,~~ the state shall pay pursuant to

appropriation in the manner prescribed by law to the city, village,

or township in which a full-time police department or full-time

ordinance enforcement department is maintained or, if a police

department or full-time ordinance enforcement department is not

maintained, to the county, to be credited to the sheriff's

department of the county in which the licensed premises are

located, 55% of the amount of the proceeds of the retailers'

license fees and license renewal fees collected in that

jurisdiction, for the specific purpose of enforcing this act and

the rules promulgated under this act. Forty-one and one-half

percent of the amount of the proceeds of retailers' license and

license renewal fees collected ~~shall~~ must be deposited in a special

fund to be annually appropriated to the commission for carrying out

the licensing and enforcement provisions of this act. Any

unencumbered or uncommitted money in the special fund ~~shall~~ must

revert to the general fund of ~~the~~ this state 12 months after the

end of each fiscal year in which the ~~funds were~~ money was

collected. The legislature shall appropriate 3-1/2% of the amount

of the proceeds of retailers' license and license renewal fees

collected to be credited to a special fund in the state treasury

for the purposes of promoting and sustaining programs for the

prevention, rehabilitation, care, and treatment of alcoholics. This

subsection does not apply to retail license fees collected for

railroad or Pullman cars, watercraft, aircraft, or wine auctions or

to the transfer fees provided in section 529.

(2) All license and license renewal fees, other than retail

license and license renewal fees and wholesale vendor license and

license renewal fees, ~~shall~~ must be credited to the grape and wine

industry council created in section 303, to be used as provided in

section 303. Money credited to the grape and wine industry council

~~shall~~ must not revert to the ~~state~~ general fund at the close of the

fiscal year, but ~~shall~~ must remain in the account to which it was

credited to be used as provided in section 303.

(3) All retail license fees collected for railroad or Pullman

cars, watercraft, or aircraft and the transfer fees provided in

section 529 ~~shall~~ must be deposited in the special fund created in

subsection (1) for carrying out the licensing and enforcement

provisions of this act.

(4) The license fee enhancement imposed for licenses issued

under section 531(3) and (4) ~~shall~~ must be deposited into a special

fund to be annually appropriated to the commission for enforcement

and other related projects determined appropriate by the

commission. The money representing that amount of the license fees

for identical licenses not issued under section 531(3) and (4)

~~shall~~ must be allocated and appropriated under subsection (1).

(5) The license fee imposed on direct shipper licenses and any

violation fines imposed by the commission ~~shall~~ must be deposited

into the direct shipper enforcement revolving fund. The direct

shipper enforcement revolving fund is created within the state

treasury. The state treasurer shall direct the investment of the

fund. The state treasurer shall credit to the fund interest and

earnings from fund investments. Money in the fund at the close of

the fiscal year ~~shall~~ must remain in the fund and ~~shall~~ must not

lapse to the general fund. The commission shall expend money from

the fund, ~~upon~~ on appropriation, only for enforcement of the

provisions of section 203 and related projects.

(6) One hundred percent of the wine auction license fee

imposed in section 525(1)(aa) ~~shall~~ must be deposited into the

general fund.

~~(7) As used in this section, "license fee enhancement" means~~

~~the money representing the difference between the license fee~~

~~imposed for a license under section 525(1) and the additional~~

~~amount imposed for resort and resort economic development licenses~~

~~under section 525(2).~~

(7) ~~(8)~~ Notwithstanding any other provision of this section,

the additional $160.00 license fee imposed ~~upon any~~ on a licensee

selling alcoholic liquor between the hours of 7 a.m. on Sunday and

12 noon on Sunday is allocated to the general fund.

(8) Wholesale vendor license fees and license renewal fees

must be deposited into the liquor control enforcement and license

investigation revolving fund created under subsection (9).

(9) The liquor control enforcement and license investigation

revolving fund is created within the state treasury. The state

treasurer shall direct the investment of the fund. The state

treasurer shall credit to the fund interest and earnings from fund

investments. Money in the fund at the close of the fiscal year must

remain in the fund and must not lapse to the general fund. The

commission shall expend money from the fund, on appropriation, only

for enforcement of this act and the rules promulgated under this

act and for license investigations. The commission shall not use

more than 35% of the money appropriated to the fund under this

subsection to carry out the licensing provisions of this act.

(10) As used in this section, "license fee enhancement" means

the money representing the difference between the license fee

imposed for a license under section 525(1) and the additional

amount imposed for resort and resort economic development licenses

under section 525(2).

Sec. 903b. A retailer violates this act if the retailer or the

retailer's clerk, servant, agent, or employee makes a payment to a

wholesaler, the commission, or this state by any means that has

been dishonored by a financial institution for lack of sufficient

funds.

Enacting section 1. This amendatory act takes effect January

1, 2017.