SPECIALLY DESIGNATED DIST. LICENSES                                                 S.B. 501 (S-1):

                                                                                                    SUMMARY OF BILL

                                                                                      REPORTED FROM COMMITTEE










Senate Bill 501 (Substitute S-1 as reported)

Sponsor:  Senator Rick Jones

Committee:  Regulatory Reform




The bill would amend the Michigan Liquor Control Code to prohibit the Michigan Liquor Control Commission from approving the application of a new, or the transfer of the location of an existing, specially designated distributor (SDD) license if there were an existing SDD licensed establishment within 2,640 feet of the proposed location. 


The Commission would have to waive the distance restriction if the existing SDD purchased less than $100,000 in spirits from the Commission during the last full calendar year. Beginning January 1, 2018, the Commission would have to adjust the dollar amount by an amount to reflect the cumulative annual percentage change in the consumer price index in the previous year.


The Commission also would have to waive the distance restriction if any of the following applied:


--    The existing SDD held a Class A or Class B hotel license.

--    The applicant's proposed location and the existing SDD's licensed establishment were separated by a major thoroughfare of at least four lanes of traffic.

--    The applicant's proposed location was located in a neighborhood shopping center that did not have an existing SDD licensed establishment, and the proposed location was at least 1,000 feet from an existing SDD's licensed establishment.

--    The applicant's proposed location and the existing SDD's licensed establishment were each at least 100,000 square feet.

--    For an applicant that held an SDD license, on a showing of good cause by the applicant, the applicant's licensed established was located within 2,640 feet of one or more existing SDD licensed establishments and the applicant requested a transfer of location, which was within 2,640 of the same existing SDD licensed establishment or establishments.


("Specially designated distributor" means a person engaged in an established business licensed by the Commission to distribute spirits and mixed spirit drink in the original package for the Commission for consumption off the premises.) 


MCL 436.1533                                                         Legislative Analyst:  Stephen Jackson




The bill would have no fiscal impact on State or local government.


Date Completed:  10-9-17                                                     Fiscal Analyst:  Josh Sefton

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.