HOUSE BILL No. 4116


     January 28, 1997, Introduced by Rep. Voorhees and referred to the Committee on Regulatory Affairs.


        A bill to amend 1933 (Ex Sess) PA 8, entitled

   "The Michigan liquor control act,"

   by amending the title and sections 1, 1a, 2i, 3, 5, 5b, 7a, 11,

   and 17 (MCL 436.1, 436.1a, 436.2i, 436.3, 436.5, 436.5b, 436.7a,

   436.11, and 436.17), section 1 as amended by 1983 PA 11,

   section 3 as amended by 1981 PA 153, and section 17 as amended by

   1996 PA 71, and by adding sections 2ee, 59, 60, 61, 62, and 63;

   and to repeal acts and parts of acts.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1                                  TITLE

 2         An act to create a liquor AND TOBACCO control commission for

 3    the control of the alcoholic beverage AND TOBACCO PRODUCTS traf-

 4    fic within the state of Michigan, and to prescribe its powers,

 5    duties, and limitations; to provide for the control of the

 6    alcoholic liquor AND TOBACCO PRODUCTS traffic within the state of


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 1    Michigan and the establishment of state liquor stores; to provide

 2    for the care and treatment of alcoholics; to provide for the

 3    incorporation of farmer cooperative wineries and the granting of

 4    certain rights and privileges thereto; TO PROVIDE FOR THE LICEN-

 5    SURE OF CERTAIN PERSONS INVOLVED IN THE SALE AND DISTRIBUTION OF

 6    ALCOHOLIC LIQUOR AND TOBACCO PRODUCTS; to provide for the licens-

 7    ing and taxation thereof  ,  and the disposition of the  moneys 

 8    MONEY received under this act; to prescribe liability for retail

 9    licensees under certain circumstances; to require security for

10    that liability; to provide procedures, defenses, PENALTIES, and

11    remedies regarding violations of this act; to provide for the

12    enforcement and to prescribe penalties for violations of this

13    act; to provide for the confiscation and disposition of property

14    seized under the provisions of this act; to provide a referendum

15    in certain cases; to repeal certain acts and parts of acts; and

16    to repeal certain parts of this act on a specific date.

17         Sec. 1.  (1)  On and after December 15, 1933, it shall be

18     lawful to  A PERSON SHALL NOT manufacture for sale, sell, offer

19    for sale, keep for sale, possess, or transport  any  AN alcoholic

20    liquor,  as defined in this act,  A TOBACCO PRODUCT, OR BOTH,

21    including alcoholic liquor used for medicinal, mechanical, chemi-

22    cal, or scientific purposes and wine used for sacramental pur-

23    poses,  subject to the terms, conditions, limitations, and

24     restrictions contained in this act, and only  EXCEPT as provided

25     for  in this act.

26         (2) Except as otherwise provided in this act, the commission

27    shall have the sole right, power, and duty to control the TOBACCO



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 1    TRAFFIC, alcoholic beverage traffic, and traffic in other

 2    alcoholic liquor within this state, including the manufacture,

 3    importation, possession, transportation and sale thereof.

 4         (3) A rule, regulation, or order made by the commission

 5    shall not unreasonably discriminate against Michigan manufactur-

 6    ers of alcoholic liquor OR TOBACCO PRODUCTS.

 7         (4) County sheriffs and their deputies; village or township

 8    marshals; constables, officers, or members of the village, city,

 9    or township police; members of the department of state police;

10    and inspectors of the commission  are empowered, and it is their

11     duty, to see  SHALL ENSURE that the provisions of this act and

12    the rules and regulations made or authorized by the commission

13    are enforced within their respective jurisdictions.  It is their

14    special duty to use their utmost efforts to repress and prevent

15    crime and the violation of  any of the provisions of  this act.

16    An officer enumerated in this section who  wilfully  WILLFULLY

17    neglects or refuses to perform the duties imposed upon him or her

18    by this section is guilty of a misdemeanor and upon conviction

19    shall be fined not more than $500.00 or imprisoned  in the county

20     jail  not more than 90 days, or both.

21         Sec. 1a.  This act shall be known and may be cited as "the

22    Michigan liquor AND TOBACCO control act".  ." 

23         Sec. 2i.  "License"  shall mean  MEANS a contract between

24    the commission and the licensee granting authority to  said  THE

25    licensee to  manufacture  DO 1 OR BOTH OF THE FOLLOWING:

26         (A) MANUFACTURE and sell,  or  sell, or warehouse  any  AN

27    alcoholic liquor in the manner provided by this act.



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 1         (B) SELL A TOBACCO PRODUCT IN THE MANNER PROVIDED BY THIS

 2    ACT.

 3         SEC. 2EE.  AS USED IN THIS ACT:

 4         (A) "COMPOUND LICENSE" MEANS A LICENSE FOR THE RETAIL SALE

 5    OF BOTH ALCOHOLIC LIQUOR AND TOBACCO PRODUCTS.

 6         (B) "TEMPORARY LICENSE" MEANS A LICENSE ISSUED BY THE COM-

 7    MISSION UNDER SECTION 60.

 8         (C) "TOBACCO PRODUCT" MEANS A PRODUCT THAT CONTAINS TOBACCO

 9    AND IS INTENDED FOR HUMAN CONSUMPTION, INCLUDING BUT NOT LIMITED

10    TO CIGARETTES, NONCIGARETTE SMOKING TOBACCO, OR SMOKELESS TOBAC-

11    CO, AS THOSE TERMS ARE DEFINED IN SECTION 2 OF THE TOBACCO PRO-

12    DUCTS TAX ACT, 1993 PA 327, MCL 205.422, AND CIGARS.

13         Sec. 3.  (1) Except as provided in this section and section

14    16a, a sale, delivery, or importation of TOBACCO PRODUCTS AND OF

15    alcoholic liquor, including alcoholic liquor for personal use,

16    shall not be made in this state unless the sale, delivery, or

17    importation is made by the commission, the commission's autho-

18    rized agent or distributor, a person licensed by the commission,

19    or by prior written order of the commission.  All spirits for

20    sale, use, storage, or distribution in this state, shall origi-

21    nally be purchased by and imported into the state by the commis-

22    sion, or by prior written authority of the commission.  This sec-

23    tion shall not apply in the case of an alcoholic liquor brought

24    into this state personally by a person of legal age to purchase

25    alcoholic liquor at the time of reentry into this state from

26    without the territorial limits of the United States for personal

27    or household use in an amount permitted by federal law if the



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 1    person has been outside the territorial limits of the United

 2    States for more than 48 hours and has not brought alcoholic

 3    liquor into the United States during the preceding 30 days.

 4         (2) Notwithstanding the provision of subsection (1), a

 5    person who is of legal age to purchase alcoholic liquor may

 6    import from another state for that person's personal use not more

 7    than 288 ounces of alcoholic liquor  which  THAT contains less

 8    than 21% alcohol by volume.

 9         Sec. 5.  (1) A commission to be known as the MICHIGAN liquor

10    AND TOBACCO control commission is created.  The commission shall

11    consist of 5 members, not more than 3 of whom shall be members of

12    the same political party, to be appointed by the governor with

13    the advice and consent of the senate.  Two of these members, 1

14    from each political party, shall be designated by the  chairman 

15    CHAIRPERSON as hearing commissioners to hear violation cases and

16    to perform  such  other functions and duties  as  THAT ARE

17    assigned to them by the  chairman  CHAIRPERSON.  The remaining 3

18    commissioners shall be designated as administrative commissioners

19    and shall have the responsibility for administering the provi-

20    sions of this act relating to licensing, purchasing, enforcement,

21    merchandising, and distribution.  The administrative commission-

22    ers shall also act as an appeal board to the decisions rendered

23    by the hearing commissioners.  The responsibilities of the

24    5-member commission  shall be  ARE the administration of the pro-

25    visions of this act  which  THAT have not been specifically dele-

26    gated to either the hearing commissioners or the administrative

27    commissioners in this section.  Each member of the commission



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 1    shall devote that member's entire time to the performance of the

 2    duties of the office.  The  terms of the  commissioners shall

 3     be  SERVE FOR TERMS OF 4 years.  each.  Each member of the com-

 4    mission shall qualify by taking and filing the constitutional

 5    oath of office and shall hold office until the appointment and

 6    qualification of a successor.  The members of the commission

 7    shall not be removed from office by the governor except for mal-

 8    feasance, misfeasance, or neglect in office.

 9         (2) In the event of a vacancy or vacancies in the membership

10    of the commission, the governor shall appoint in like manner a

11    successor or successors to fill the unexpired term.

12         (3) A quorum for the transaction of business of the adminis-

13    trative commissioners shall consist of 2 administrative

14    commissioners.  A quorum for the transaction of business of the

15    5-member commission shall be 3 members.

16         (4) Each member of the commission shall receive an annual

17    salary as appropriated by the legislature,  shall  be entitled to

18    actual and necessary expenses while on the business of the com-

19    mission, and  shall  have a work station designated by the

20     chairman  CHAIRPERSON.

21         (5) The commission shall annually designate 1 of its members

22    to act as  chairman  CHAIRPERSON of the commission.

23         Sec. 5b.  (1) The powers of the commission  , enumerated in 

24    UNDER this act  , which  THAT are not specifically and exclu-

25    sively reserved to the commission by the act  ,  shall be vested

26    in, and exercised and administered by a liquor AND TOBACCO

27    control business manager, who shall be selected by and



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 1    responsible to the commission  ,  and whose position  shall  MAY

 2    be in the state classified civil service.  The powers of the com-

 3    mission enumerated  in, and provided for by  UNDER this act  , 

 4    shall be exercised in conformity with the provisions of the act

 5    pertaining to the duties of the liquor AND TOBACCO control

 6    BUSINESS manager,  :  Provided, however, That  EXCEPT THAT the

 7    commission shall exclusively exercise the power to make rules and

 8    regulations under the act to regulate the control of the TOBACCO

 9    PRODUCTS AND alcoholic  beverage  LIQUOR traffic within the

10    state; to hear and decide all cases of violation of the

11     provisions of the  act and OF regulations  thereunder  ADOPTED

12    UNDER THE ACT; to employ a liquor AND TOBACCO control business

13    manager as provided for by the act; and to hear and decide all

14    public appeals from the administrative decisions of the liquor

15    AND TOBACCO control business manager.

16         (2) The liquor AND TOBACCO control business manager shall be

17    and shall serve as the business manager of the  liquor control 

18    commission, and as such it shall be his OR HER duty and responsi-

19    bility to manage the business affairs of the commission relative

20    to purchasing, merchandising, warehousing, rationing, distribut-

21    ing, inspecting, investigating, licensing and accounting, in

22    accordance with policies established by the  liquor control  com-

23    mission and in compliance with  the provisions of  this act and

24    with the rules and regulations adopted  thereunder.  In addition

25     to the foregoing, said  UNDER THE ACT.  THE LIQUOR AND TOBACCO

26    CONTROL business manager  shall be  IS exclusively responsible





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 1    for the assigning, training, and supervision of all commission

 2    classified employees.

 3         Sec. 7a.  (1) The commission may make investigations  which 

 4    THAT it considers proper in the administration of this act and

 5    the rules promulgated  pursuant to  UNDER this act concerning

 6    TOBACCO PRODUCTS, alcoholic liquor, or the manufacture, distribu-

 7    tion, or sale of TOBACCO PRODUCTS AND alcoholic liquor, or the

 8    collection of taxes on TOBACCO PRODUCTS AND alcoholic liquor.

 9         (2) A licensee shall make the licensed premises available

10    for inspection and search by a commission investigator or law

11    enforcement officer empowered to enforce the commission's rules

12     and Act No.  8 of the Public Acts of the Extra Session of 1933,

13     as amended, being sections 436.1 to 436.58 of the Michigan

14     Compiled Laws  during regular business hours or when the licensed

15    premises are occupied by the licensee or a clerk, servant, agent,

16    or employee of the licensee.  Evidence of a violation discovered

17     pursuant to  UNDER this subsection may be seized and used in an

18    administrative or court proceeding.

19         (3) The commission  ,  or a duly authorized agent of the

20    commission  ,  may examine or copy the books, records, and papers

21    of any person relative to a requirement pertaining to this act

22    THE access to which has been obtained  pursuant to  UNDER this

23    section.

24         (4) A member of the commission  ,  or a duly authorized

25    agent of the commission  ,  may issue a subpoena requiring a

26    person to appear before the commission  ,  or its duly authorized

27    agent  ,  at  any  A reasonable time and place  , and  TO be



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 1    examined with reference to  any  A matter within the scope of the

 2    inquiry or investigation being conducted by the commission, and

 3    to produce  any  ALL books, records, or papers pertaining to the

 4    question involved.

 5         (5) A member of the commission  ,  or a duly authorized

 6    agent of the commission  ,  may administer an oath or affirmation

 7    to a witness in  any matter  ALL MATTERS before the commission,

 8    certify to official acts, and take depositions.

 9         (6) In case of disobedience of a subpoena, the commission or

10    its duly authorized agents may invoke the aid of  any  THE cir-

11    cuit court of the state in requiring the attendance and testimony

12    of witnesses and the production of books, records, and papers

13    pertaining to the question involved.  Any of the  A circuit

14     courts  COURT of the state within  the  WHOSE jurisdiction  of

15     which  the inquiry is carried on may, in case of contumacy or

16    refusal to obey a subpoena, issue an order requiring the person

17    to appear before the commission or its duly authorized agents and

18    to produce books, records, and papers,  if so ordered, and  to

19    give evidence touching the matter in question,  ; and a  OR

20    BOTH.  THE failure to obey the order of the court may be punished

21    by the court as a contempt of court.

22         (7) The fees of witnesses required to appear before the com-

23    mission shall be the same as those allowed to witnesses in the

24    circuit courts  ,  and shall be paid by the commission.

25         (8) A sheriff's department or police department shall, upon

26    request of the commission, cause to be served a subpoena  which 

27    THAT may be directed to  any  A person located within the



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 1    jurisdiction of the sheriff's department or police department.  A

 2    fee shall not be charged for this service by the sheriff's

 3    department or police department.  Subpoenas may also be served by

 4    an investigator of the commission.

 5         Sec. 11.  Same; interest of members.  No  A member of the

 6    commission or  employe thereof  EMPLOYEE OF THE COMMISSION shall

 7    NOT be pecuniarily, directly or indirectly, interested in the

 8    manufacture, warehousing, sale, distribution, or transportation,

 9    or selling or furnishing of  any  equipment, furnishings, or

10    refrigeration used in the manufacture or sale of  any  AN alco-

11    holic liquor OR TOBACCO PRODUCT within  the  THIS state.  of

12     Michigan. 

13         Sec. 17.  (1) The commission may issue licenses, as provided

14    in this act, upon the payment of the fees provided in section 19

15    and the filing of the bonds required in section 22 or liability

16    insurance as provided in section 22a.

17         (2) The commission shall issue licenses to manufacturers

18    only when 25% or more of the capital stock is owned by residents

19    of this state, except that this limitation shall not apply to

20    manufacturers of wine, mixed spirit drink, beer, or malt bever-

21    ages or to distillers or rectifiers.

22         (3)  A  EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, A

23    full-year license issued by the commission shall expire on

24    April 30 following the date of issuance or the date fixed by the

25    commission.  A license issued under this act shall be construed

26    as a contract between the commission and the licensee and shall

27    be signed by both parties.  If a licensee dies, the commission



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 1    may approve the operation of the establishment by a personal

 2    representative or independent personal representative duly

 3    appointed by a court of competent jurisdiction, pending the set-

 4    tlement of the estate of the deceased licensee.  The commission

 5    may approve a receiver or trustee appointed by a court of compe-

 6    tent jurisdiction to operate the licensed establishment of a

 7    licensee.  The commission may grant a part-year OR A MULTI-YEAR

 8    license for a proportionate part of the license fee specified in

 9     section 19  THIS ACT.  In a resort area the commission shall

10    grant a license for a period of time as short as 3 months.  A

11    license may be transferred with the consent of the commission.  A

12    class C or specially designated distributor license obtained in a

13    manner other than by transfer shall not be transferred within

14    3 years after its issuance except under circumstances where the

15    licensee clearly and convincingly demonstrates that unusual hard-

16    ship will result if the transfer does not receive the consent of

17    the commission.  Except as provided in section 17b, an applica-

18    tion for a license to sell alcoholic liquor for consumption on

19    the premises, except in a city having a population of 1,000,000

20    or more, shall be approved by the local legislative body in which

21    the applicant's place of business is located before the license

22    is granted by the commission, except that in the case of an

23    application for renewal of an existing license, if an objection

24    to a renewal has not been filed with the commission by the local

25    legislative body not less than 30 days before the date of expira-

26    tion of the license, the approval of the local legislative body

27    shall not be required.  The commission shall provide the local



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 1    legislative body and the local chief of police with the name,

 2    home and business addresses, and home and business phone numbers

 3    to accomplish the local legislative reviews of new and trans-

 4    ferred license applications required by this subsection.  Upon

 5    request of the local legislative body after due notice and proper

 6    hearing by the local legislative body and the commission, the

 7    commission shall revoke the license of a licensee granted a

 8    license to sell alcoholic liquor for consumption on the premises

 9    or  any permit  ALL PERMITS held in conjunction with that

10    license.

11         (4) A local legislative body, by resolution, may request

12    that the commission revoke the license of a licensee granted a

13    license to sell alcoholic liquor for consumption off the premises

14    whose place of business is located within the local legislative

15    body's jurisdiction and who has been determined pursuant to com-

16    mission violation hearings to have sold or furnished alcoholic

17    liquor, on at least 3 separate occasions in a single calendar

18    year, to a person who is less than 21 years of age if those vio-

19    lations did not involve the use of falsified or fraudulent iden-

20    tification by the person who is less than 21 years of age.  If

21    the commission verifies that the licensee who is the subject of

22    the resolution has been found to have committed the violations as

23    prescribed in this subsection, the commission may suspend or

24    revoke the licensee's license and  any permit  ALL PERMITS held

25    in conjunction with that license.

26         (5) Except as otherwise provided in this act, a license

27    other than a special license  which  THAT has been approved by



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 1    the governing authority of  such  state owned land shall not be

 2    issued by the commission to sell alcoholic liquor, either on or

 3    off the premises, if the property or establishment to be covered

 4    by the license is situated in or on state owned land.  However,

 5    this prohibition  shall  DOES not apply to the following land:

 6         (a) The Michigan state fairgrounds.

 7         (b) The Upper Peninsula state fairgrounds.

 8         (c) Armories, air bases, and naval installations owned or

 9    leased by the state or provided by the federal government by

10    either lease, license, or use permit and used by outside parties

11    of a nonmilitary or nonstate governmental nature.

12         (d) Land which was under lease to a person licensed in the

13    calendar year 1954 and on which a licensed establishment is pres-

14    ently located.

15         (e) Land located in the Upper Peninsula which was owned or

16    leased by the federal government, used as a military installa-

17    tion, and transferred to this state before December 31, 2000

18     pursuant to Act No. 151 of the Public Acts of 1978, being

19     sections 3.551 to 3.561 of the Michigan Compiled Laws, or Act

20     No. 159 of the Public Acts of 1993, being sections 3.571 to 3.580

21     of the Michigan Compiled Laws  UNDER 1978 PA 151, MCL 3.551 TO

22    3.561, OR 1993 PA 159, MCL 3.571 TO 3.580.  The commission may

23    issue 2 additional licenses  pursuant to  UNDER this subdivision

24    for establishments located on this state land without regard to

25    or without the effect upon the quota provisions of section 19c in

26    the local governmental unit in which the license will be issued

27    subject to the recommendation of the authority established



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 1     pursuant to Act No. 151 of the Public Acts of 1978 or Act

 2     No. 159 of the Public Acts of 1993  UNDER 1978 PA 151, MCL 3.551

 3    TO 3.561, OR 1993 PA 159, MCL 3.571 TO 3.580.  A person issued a

 4    license  pursuant to  UNDER this subdivision may renew the

 5    license and transfer ownership of the license, without regard to

 6    or without the effect upon the quota provisions of section 19c,

 7    if title to the property covered by the license is transferred

 8    from the state to another person or to another governmental

 9    unit.  The commission shall not transfer a license issued under

10    this subdivision to another location.  Before the issuance of a

11    license, and THEN annually  thereafter  before the issuance of a

12    license for a new licensing period, the applicant for a license

13    shall submit to the commission a certificate from the department

14    or agency charged with control of the land setting forth that the

15    issuance of a license is not incompatible with the objects and

16    purposes entrusted to that department or agency under the law

17    establishing control of the land in the department or agency.

18    This subsection does not prohibit the issuance of a license

19     pursuant to  UNDER section 17h.

20         (f) Property owned by the Michigan state waterways commis-

21    sion and leased to persons under part 791 (harbor development) of

22    the natural resources and environmental protection act,  Act

23     No. 451 of the Public Acts of 1994, being sections 324.79101 to

24     324.79118 of the Michigan Compiled Laws  1994 PA 451,

25    MCL 324.79101 TO 324.79118.  A license may be issued under this

26    subdivision to a lessee without regard to the quota provisions of

27    section 19c, but the license shall not be issued without the



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 1    written approval of the Michigan state waterways commission or

 2    its designee.  A license issued under this subdivision shall not

 3    be transferable as to ownership or location, and, if the licensee

 4    goes out of business, the license shall be surrendered to the

 5    commission.

 6         (g) Property owned by the state treasurer of this state when

 7    acting in the capacity of custodian of the assets of the state

 8    retirement systems created by the public school employees retire-

 9    ment act of 1979,  Act No. 300 of the Public Acts of 1980, being

10     sections 38.1301 to 38.1408 of the Michigan Compiled Laws  1980

11    PA 300, MCL 38.1301 TO 38.1408; the state employees' retirement

12    act,  Act No. 240 of the Public Acts of 1943, being sections 38.1

13     to 38.48 of the Michigan Compiled Laws  1943 PA 240, MCL 38.1 TO

14    38.48; the state police retirement act of 1986,  Act No. 182 of

15     the Public Acts of 1986, being sections 38.1601 to 38.1648 of the

16     Michigan Compiled Laws  1986 PA 182, MCL 38.1601 TO 38.1648; and

17    the judges retirement act of 1992,  Act No. 234 of the Public

18     Acts of 1992, being sections 38.2101 to 38.2608 of the Michigan

19     Compiled Laws  1992 PA 234, MCL 38.2101 TO 38.2608.

20         (6) This act does not prohibit a hotel which is or was the

21    holder of a license authorizing the retail sale of alcoholic

22    liquor for consumption on the premises from applying for and

23    receiving under this act  any other  ANOTHER and different type

24    of license authorizing the retail sale of alcoholic liquor for

25    consumption on the premises, and the application for the license

26    shall not be considered a new application for a license so long

27    as the total number of public licenses for consumption on the



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 1    premises does not exceed the authorized total established in this

 2    act and the sale of alcoholic liquor is approved by the

 3    electors.  The commission may divide the state into 3 zones and

 4    establish for each zone an anniversary date for renewal of

 5    full-year retail licenses in the licensing year.  The commission

 6    shall promulgate rules  pursuant to  UNDER the administrative

 7    procedures act of 1969,  Act No. 306 of the Public Acts of 1969,

 8     being sections 24.201 to 24.328 of the Michigan Compiled Laws 

 9    1969 PA 306, MCL 24.201 TO 24.328, for the effective administra-

10    tion of the renewal of licenses.

11         (7) The commission, with the written approval of the depart-

12    ment of commerce in the case of the Michigan state fairgrounds

13    and the department of agriculture in the case of the Upper

14    Peninsula state fairgrounds may issue without regard to the quota

15    provision of section 19c a tavern license to a person as conces-

16    sionaire leasing or renting a portion of either the Upper

17    Peninsula state fairgrounds or the state fairgrounds, or both, to

18    service the licensed area in use for recreational or exhibition

19    purposes other than at the time of the annual Upper Peninsula

20    state fair under section 2 of  Act No. 89 of the Public Acts of

21     1927, being section 285.142 of the Michigan Compiled Laws  1927

22    PA 89, MCL 285.142.  A license issued under this subsection is

23    not transferable.

24         (8) Notwithstanding section 3, a collector, who is 21 years

25    of age or older, of ceramic commemorative bottles containing

26    alcoholic liquor and  which  THAT bear an unbroken federal tax

27    stamp or seal may sell or trade the bottles to other such



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 1    collectors of the bottles without obtaining a license  pursuant

 2     to  UNDER this act.  All sales conducted  pursuant to  UNDER this

 3    subsection shall be for the purpose of exchanging ceramic commem-

 4    orative bottles between private collectors of the bottles and

 5    shall not be for the purpose of selling alcoholic liquor for per-

 6    sonal consumption.  A sale or exchange conducted  pursuant to 

 7    UNDER this subsection shall not occur in  any  1 OR MORE of the

 8    following ways:

 9         (a) In connection with the business of a holder of an alco-

10    holic liquor license.

11         (b) In connection with  any other  ANOTHER business.

12         (9) THE COMMISSION MAY PROVIDE A DISCOUNT OF THE ANNUAL

13    LICENSE FEE FOR A LICENSE ISSUED TO COVER A PERIOD OF MORE THAN 1

14    YEAR.  THAT DISCOUNT SHALL NOT EXCEED 15% OF THE ANNUAL LICENSE

15    FEE.

16         SEC. 59.  (1) A PERSON SHALL NOT SELL A TOBACCO PRODUCT AT

17    RETAIL UNLESS THE PERSON IS LICENSED UNDER THIS ACT.

18         (2) A PERSON WHO SELLS A TOBACCO PRODUCT AT RETAIL SHALL BE

19    NOT LESS THAN 18 YEARS OF AGE.

20         (3) A PERSON SHALL NOT SELL OR DISTRIBUTE A TOBACCO PRODUCT

21    THROUGH THE USE OF A VENDING MACHINE OR INSTALL OR MAINTAIN A

22    VENDING MACHINE WITH THE INTENT OF SELLING OR DISTRIBUTING A

23    TOBACCO PRODUCT IN A PLACE OF PUBLIC ACCOMMODATION TO WHICH

24    ACCESS BY PERSONS UNDER THE AGE OF 18 IS NOT PROHIBITED BY LAW.

25    FOR PURPOSES OF THIS SECTION, "PLACE OF PUBLIC ACCOMMODATION"

26    MEANS THAT TERM AS DEFINED IN SECTION 301 OF THE MICHIGAN

27    HANDICAPPERS' CIVIL RIGHTS ACT, 1976 PA 220, MCL 37.1301.  A



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 1    PERSON WHO VIOLATES THIS SUBSECTION IS GUILTY OF A MISDEMEANOR,

 2    PUNISHABLE BY IMPRISONMENT FOR NOT MORE THAN 6 MONTHS, SERVICE TO

 3    THE COMMUNITY FOR A PERIOD OF NOT MORE THAN 45 DAYS, OR A FINE OF

 4    NOT MORE THAN $1,000.00, OR ANY COMBINATION OF IMPRISONMENT, COM-

 5    MUNITY SERVICE, OR FINE.  EACH DAY THAT A PERSON HAS A VENDING

 6    MACHINE THAT DISPENSES A TOBACCO PRODUCT CONSTITUTES A SEPARATE

 7    OFFENSE.

 8         (4) A LICENSE ISSUED TO A PERSON UNDER THIS ACT SHALL BE FOR

 9    THE RETAIL SALE OF A TOBACCO PRODUCT ONLY ON THE LICENSED

10    PREMISES.

11         SEC. 60.  (1) AN APPLICANT FOR LICENSURE SHALL SUBMIT TO THE

12    COMMISSION ALL OF THE FOLLOWING INFORMATION ON A FORM PROVIDED BY

13    THE COMMISSION:

14         (A) THE NAME AND ADDRESS OF THE PERSON BEING LICENSED.  IN

15    THE CASE OF A CORPORATION, THE NAME AND ADDRESS OF THE OFFICERS

16    AND DIRECTORS OF THE CORPORATION.  IN THE CASE OF ANOTHER PERSON

17    NOT AN INDIVIDUAL OR A CORPORATION, THE NAME AND ADDRESS OF EACH

18    INDIVIDUAL HAVING AN OWNERSHIP INTEREST OF MORE THAN 10% AND EACH

19    INDIVIDUAL ACTING IN A SUPERVISORY CAPACITY.

20         (B) THE NAME AND ADDRESS OF AN INDIVIDUAL DESCRIBED IN

21    SUBDIVISION (A) WHO HAS BEEN CONVICTED OF AN OFFENSE DESCRIBED IN

22    THE YOUTH TOBACCO PREVENTION ACT.

23         (C) A DIAGRAM OF THE LICENSED PREMISES.

24         (D) ALL OTHER RELEVANT INFORMATION REQUIRED BY THE COMMIS-

25    SION CONTAINED IN RULES PROMULGATED UNDER THIS ACT.

26         (E) THE FEE DESCRIBED IN SUBSECTION (2).





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 1         (2) AN APPLICANT FOR LICENSURE SHALL PAY TO THE COMMISSION A

 2    NONREFUNDABLE APPLICATION FEE OF $100.00 UPON THE FILING OF AN

 3    APPLICATION UNDER THIS SECTION.

 4         (3) UPON THE APPLICANT'S COMPLIANCE WITH SUBSECTIONS (1) AND

 5    (2) AND AFTER THE COMMISSION'S APPROVAL OF THE APPLICANT, THE

 6    COMMISSION SHALL ISSUE A LICENSE TO A PERSON THAT SHALL EXPIRE

 7    NOT LESS THAN 1 YEAR AFTER THE DATE OF ISSUANCE.

 8         (4) A LICENSE MAY BE RENEWED UPON THE FILING OF A RENEWAL

 9    APPLICATION WITH THE COMMISSION ON A FORM PROVIDED BY THE COMMIS-

10    SION AND THE PAYMENT OF A LICENSE RENEWAL FEE OF $50.00.  A

11    LICENSEE THAT DOES NOT RENEW ITS LICENSE WITHIN 30 DAYS AFTER THE

12    EXPIRATION DATE MAY RENEW ITS LICENSE BY FILING THE RENEWAL

13    APPLICATION, PAYING THE RENEWAL FEE, AND PAYING A LATE RENEWAL

14    FEE OF $25.00.

15         (5) A LICENSEE MAY APPLY FOR A TRANSFER OF A LICENSE TO

16    ANOTHER PERSON OR TO ANOTHER LOCATION UPON COMMISSION APPROVAL BY

17    SUBMITTING A FORM PROVIDED BY THE COMMISSION AND PAYING A FEE OF

18    $25.00.  A TRANSFER OF OWNERSHIP OR LOCATION OF A LICENSEE SHALL

19    OPERATE AS AN AUTOMATIC REVOCATION OF A LICENSE 90 DAYS AFTER THE

20    TRANSFER.  DURING THIS PERIOD, THE TRANSFEREE OWNER OR LOCATION

21    SHALL BE CONSIDERED TO HOLD A TEMPORARY LICENSE.  IF A REVOCATION

22    OF LICENSURE OCCURS UNDER THIS SUBSECTION, THE COMMISSION SHALL

23    ISSUE AN ORIGINAL LICENSE IF THE PERSON DESIRING LICENSURE FILES

24    A TIMELY ORIGINAL APPLICATION ACCOMPANIED BY THE ORIGINAL APPLI-

25    CATION FEE AND OTHERWISE MEETS THE REQUIREMENTS OF THIS ACT AND

26    THE RULES PROMULGATED UNDER THIS ACT.  THE COMMISSION MAY





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 1    PROMULGATE RULES SETTING STANDARDS APPLICABLE TO A LICENSE

 2    TRANSFER TO ANOTHER PERSON OR TO ANOTHER LOCATION.

 3         (6) A LICENSEE SHALL NOTIFY THE COMMISSION WITHIN 30 DAYS

 4    AFTER A CHANGE IN THE INFORMATION REQUIRED TO BE FURNISHED UNDER

 5    SUBSECTION (1).

 6         (7) THE COMMISSION SHALL NOT ACCEPT AN APPLICATION FOR

 7    LICENSURE FROM A PERSON LOCATED IN ANOTHER STATE OR COUNTRY

 8    UNLESS THE APPLICATION DESIGNATES A RESIDENT AGENT IN THIS STATE

 9    FOR ACCEPTANCE OF PROCESS.

10         SEC. 61.  THE COMMISSION SHALL NOT ISSUE A NEW LICENSE OR

11    TRANSFER THE LOCATION OF AN EXISTING LICENSE FOR THE RETAIL SALE

12    OF A TOBACCO PRODUCT IF THE LOCATION OR CONTEMPLATED LOCATION IS

13    WITHIN 500 FEET OF A K-12 PUBLIC OR PRIVATE SCHOOL.

14         SEC. 62.  (1) THE COMMISSION MAY PROMULGATE RULES UNDER THE

15    ADMINISTRATIVE PROCEDURES ACT OF 1969, 1969 PA 306, MCL 24.201 TO

16    24.328, FOR THE IMPLEMENTATION AND ADMINISTRATION OF THE LICEN-

17    SURE PROVISIONS OF SECTIONS 59 THROUGH 61.

18         (2) A PROCEEDING AGAINST A LICENSEE FOR VIOLATION OF SECTION

19    59 OR FOR VIOLATION OF A RULE PROMULGATED UNDER THIS ACT SHALL BE

20    PURSUANT TO THE CONTESTED CASE PROVISIONS OF THE ADMINISTRATIVE

21    PROCEDURES ACT OF 1969, 1969 PA 306, MCL 24.201 TO 24.328, AND

22    MAY RESULT IN THE REVOCATION OR SUSPENSION OF THE LICENSE FOR

23    SALE OF TOBACCO PRODUCTS AT RETAIL.

24         SEC. 63.  A PERSON MAY APPLY FOR A LICENSE THAT AUTHORIZES

25    THE HOLDER TO SELL ALCOHOLIC LIQUOR OR A TOBACCO PRODUCT, OR A

26    COMPOUND LICENSE, UNDER THIS ACT.  THE COMMISSION MAY DESIGN A





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 1    SYSTEM FOR THE ISSUANCE OF A COMPOUND LICENSE, WHICH MAY BE

 2    ISSUED FOR UP TO 3 YEARS.

 3         Enacting section 1.  Section 470 of the Michigan penal code,

 4    1931 PA 328, MCL 750.470, is repealed.
















































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