September 11, 2012, Introduced by Rep. Denby 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 amended by 2010 PA
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
521a. (1) In order to allow
cities municipalities to
enhance the quality of life for their residents and visitors to
their communities, the commission may issue public on-premises
in addition to those quota licenses allowed in
municipalities under section 531(1). The licenses under this
shall be issued to businesses that meet
1 either of the
Are located in a
city 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 125.2899.
(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
the commission that
shall include includes the following:
(i) A resolution of the governing body of the
establishing its status as a redevelopment project area.
(ii) An affidavit from the assessor, as certified by
clerk of the municipality, stating the total amount of investment
in real and personal property within the redevelopment project area
the city during the preceding 3
years. In the case of an applicant
seeking a license under this section within the first license
cycle after December 29, 2006, 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 December 29, 2006.
(iii) An affidavit from the assessor, as certified by
clerk of the municipality, separately stating the amount of
investment money expended for manufacturing, industrial,
residential, and commercial development within the redevelopment
area of the
during the preceding 3 years. In
the case of an applicant seeking a license under this section within
the first license cycle after December 29, 2006, 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 December 29, 2006.
(3) Relative to the licenses issued under subsection (1)(a),
the amount of commercial investment in the redevelopment project
shall constitute not less than
25% of the total investment in real and personal property in that
project area as evidenced by an affidavit of the
assessor of the municipality. This subsection does not prevent the
municipality from realigning the redevelopment project area in
the presentment of verification provided for under subsection
(4) In relation to a license issued under subsection (1)(a),
applicant shall be located in a
city municipality that meets at
least 1 of the investment requirements of subsection (1)(a) during
3 years preceding the submission of its application.
the preceding 5 years in the case of an applicant applying during
the first license cycle after December 29, 2006. The total
investment in real and personal property in the redevelopment
area within the
over the appropriate time
period described in this subsection shall be at least 1 of the
Not less than $50,000,000.00 in
having a population of 50,000 or more.
(b) Not less than an amount reflecting $1,000,000.00 per 1,000
cities municipalities having a population of less than
(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
(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
from the assessor, as certified by the clerk of the
(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 25 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
The governing body of the
local governmental unit
may approve another applicant within a
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
(9) The individual signing the application for the license
shall state and demonstrate that the applicant attempted to secure
escrowed license or quota
license issued under section 531 and that, to the best of his or
license or quota license
under section 531 is not readily available within the
of government municipality in which the applicant proposes to
(10) As used in this section:
"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
"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
(b) "Municipality" means a county, city, village, or township.
(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.