April 28, 2016, Introduced by Senators MEEKHOF, KOWALL, HORN, HANSEN, PROOS and SHIRKEY and referred to the Committee on Michigan Competitiveness.
A bill to amend 1998 PA 58, entitled
"Michigan liquor control code of 1998,"
by amending sections 533, 541, and 543 (MCL 436.1533, 436.1541, and
436.1543), section 533 as amended by 1998 PA 416, 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.
533. (1) A retail vendor licensed under this act to sell
for
consumption on the premises may apply for a license as a
specially
designated merchant. 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 section 4125 of the food law,
2000 PA 92, MCL 289.4125.
(b) The applicant holds and maintains an extended retail food
establishment license issued under section 4125 of the food law,
2000 PA 92, MCL 289.4125.
(c) The applicant holds or the commission approves the
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) A specially designated distributor may apply for a license
as a specially designated merchant.
(3) 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 of
population. The commission
may waive the quota requirement may
be
waived
at the discretion of the commission under this subsection if
there
is no existing specially designated distributor licensee
within 2 miles of the applicant, measured along the nearest traffic
route.
(4) 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's gross receipts derived from
the sale of prescription drugs as that term is defined in section
17708 of the public health code, 1978 PA 368, MCL 333.17708, are at
least 20% of the total gross receipts.
(c) A secondary location permit issued to a specially
designated merchant under section 541.
(5) The commission may waive the quota under subsection (4) if
there is no existing specially designated merchant within 2 miles
of the applicant, measured along the nearest traffic route.
(6) The commission shall waive the quota under subsection (4)
if all of the following apply:
(a) The proposed licensed establishment is located in a city,
incorporated village, or township in which the quota under
subsection (4) is exhausted as of the effective date of the
amendatory act that added subsection (4).
(b) The applicant applies for the specially designated
merchant license within 60 days after the effective date of the
amendatory act that added subsection (4).
(c) 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.
(7) 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.
(8) Except as otherwise provided in subsection (9), the quota
under subsection (4) 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 (4).
(9) A specially designated merchant license issued after the
effective date of the amendatory act that added subsection (4) to a
person described in subsection (4)(a) or (b) is not transferable as
to location.
(10) For purposes of this section, population is determined by
the last 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.
541. (1) Except as provided in 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 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.
(c) The applicant has the approval of the township, as
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 is not less than 5 feet from that
point where motor vehicle fuel is dispensed.
(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 and selection of alcoholic liquor is
not less than 5 feet from that point where motor vehicle fuel is
dispensed.
(c) "Secondary location" means a business operation of the
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 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 on license investigations.
(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 or a retailer's clerk, servant, agent,
or employee that 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 is subject to enforcement
action by the commission for issuing a dishonored payment
instrument.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.