SENATE BILL No. 501

 

 

June 28, 2017, Introduced by Senator JONES 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 533 (MCL 436.1533), as amended by 2016 PA 434.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 533. (1) 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.

 

     (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) 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 Except as otherwise provided in section 531(5), 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. Except as

 

otherwise provided in section 531(5), the commission shall not

 

approve the application of a new specially designated distributor

 

license or approve the application of a holder of a specially

 

designated distributor license requesting a transfer of location of

 

that specially designated distributor license if there is an

 

existing specially designated distributor licensed establishment

 

within 2,640 feet of the proposed location. The commission shall

 

use a digital global positioning system to measure the distances

 

described in this subsection.

 

     (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.

 

     (c) A secondary location permit issued to a specially

 

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).January 4, 2017.

 

     (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).January 4, 2017.

 

     (10) A specially designated merchant license issued after the

 

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

 

January 4, 2017 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).January 4, 2017.

 

     (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.