SENATE BILL NO. 477 March 24, 1999, Introduced by Senator KOIVISTO and referred to the Committee on Gaming and Casino Oversight. A bill to amend 1998 PA 58, entitled "Michigan liquor control code of 1998," by amending sections 217, 903, and 1023 (MCL 436.1217, 436.1903, and 436.2023), section 903 as amended by 1998 PA 416. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 217. (1) The commission may make investigations that 2 it considers proper in the administration of this act and the 3 rules promulgated under this act concerning alcoholic liquor, 4orthe manufacture, distribution, or sale of alcoholic liquor, 5orthe collection of taxes on alcoholic liquor, OR VIDEO LOT- 6 TERY VIOLATIONS UNDER THE MICHIGAN VIDEO GAMING ACT OR RULES 7 PROMULGATED UNDER THAT ACT. 8 (2) A licensee shall make the licensed premises available 9 for inspection and search by a commission investigator or law 10 enforcement officer empowered to enforce the commission's rules 02455'99 a TLG 2 1 and this act OR THE MICHIGAN VIDEO GAMING ACT AND RULES UNDER 2 THAT ACT during regular business hours or when the licensed 3 premises are occupied by the licensee or a clerk, servant, agent, 4 or employee of the licensee. Evidence of a violationof this5act or rules promulgated under this actdiscovered under this 6 subsection may be seized and used in an administrative or court 7 proceeding. 8 (3) The commission ora dulyAN authorized agent of the 9 commission may examine or copy the books, records, or papers of a 10 person relative to a requirement pertaining to this act, access 11 to which has been obtained pursuant to this section. 12 (4) A member of the commission ora dulyAN authorized 13 agent of the commission may issue a subpoena requiring a person 14 to appear before the commission or itsdulyauthorized agent at 15 any reasonable time and place, to be examined with reference to 16 any matter within the scope of the inquiry or investigation being 17 conducted by the commission, and to produce any books, records, 18 or papers pertaining to the question involved. 19 (5) A member of the commission ora dulyAN authorized 20 agent of the commission may administer an oath or affirmation to 21 a witness in any matter before the commission, certify to offi- 22 cial acts, and take depositions. 23 (6) In case of disobedience of a subpoena, the commission or 24 itsdulyauthorized agent may invoke the aid of any circuit 25 court of the state to compel the attendance and testimony of wit- 26 nesses and the production of books, records, and papers 27 pertaining to the question involved. A circuit court of this 02455'99 a 3 1 state within the jurisdiction of which the inquiry is conducted 2 may, in case of contumacy or refusal to obey a subpoena, issue an 3 order requiring the person to appear before the commission or 4its dulyAN authorized agent OF THE COMMISSION, to produce 5 books, records, and papers if so ordered, and to give evidence 6 regarding the matter in question. Failure to obey the order of 7 the court may be punished by the court as a contempt of court. 8 (7) The fees of witnesses required to appear before the com- 9 mission shall be the same as those allowed to witnesses in the 10 circuit courts and shall be paid by the commission. 11 (8) A sheriff's department or police department,shall,12 upon request of the commission, SHALL cause to be served a sub- 13 poena that is directed to a person located within the jurisdic- 14 tion of the sheriff's department or police department. A fee 15 shall not be charged for this service by the sheriff's department 16 or police department. Subpoenas may also be served by an inves- 17 tigator of the commission. 18 (9) The commission shall adopt a suitable seal, of which all 19 courts of the state shall take judicial notice, and all proceed- 20 ings, orders, licenses, and official acts of the commission shall 21 be authenticated by that seal. Certified copies of the orders 22 and records of the commission shall be prima facie evidence of 23 the acts of the commission in any court of this state. 24 Sec. 903. (1) The commission or any commissioner orduly25 authorized agent of the commission designated by the chairperson 26 of the commission, upon due notice and proper hearing, may 27 suspend or revoke any license upon a violation of this act or any 02455'99 a 4 1 of the rules promulgated by the commission under this act. IN 2 THE CASE OF A LICENSEE HOLDING A VIDEO LOTTERY ESTABLISHMENT 3 LICENSE UNDER THE MICHIGAN VIDEO GAMING ACT, THE COMMISSION MAY 4 SUSPEND OR REVOKE A LICENSEE'S LICENSE FOR A VIOLATION OF THE 5 MICHIGAN VIDEO GAMING ACT OR ANY RULES PROMULGATED UNDER THAT 6 ACT. The commission or any commissioner ordulyauthorized 7 agent of the commission designated by the chairperson of the com- 8 mission,may assess a penalty of not more than $300.00 for 9 each violation,of this act or rules promulgated under this10act,or not more than $1,000.00 for each violation of 11 section 801(2), in addition to orin lieuINSTEAD of revocation 12 or suspension of the license, which penalty shall be paid to the 13 commission and deposited with the state treasurer and shall be 14 credited to the general fund of the state. The commission shall 15 hold a hearing and order the suspension or revocation of a 16 license if the licensee has been found liable for 3 or more sepa- 17 rate violations of section 801(2), which violations occurred on 18 different occasions within a 24-month period. 19 (2) The commission shall provide a procedure by which a 20 licensee who is aggrieved by any penalty imposed under subsection 21 (1)andOR any suspension or revocation of a license ordered by 22 the commission, a commissioner, ora dulyAN authorized agent 23 of the commission may request a hearing for the purpose of 24 presenting any facts or reasons to the commission as to why the 25 penalty, suspension, or revocation should be modified or 26 rescinded. Any such request shall be in writing and accompanied 27 by a fee of $25.00. The commission, after reviewing the record 02455'99 a 5 1 made before a commissioner ora dulyAN authorized agent of the 2 commission, may allow or refuse to allow the hearing in accord- 3 ance with the commission's rules. The right to a hearing pro- 4 vided in this subsection, however, shall not be interpreted by 5 any court as curtailing, removing, or annulling the right of the 6 commission to suspend or revoke licenses as provided for in this 7 act. A licensee does not have a right of appeal from the final 8 determination of the commission, except by leave of the circuit 9 court. Notice of the order of suspension or revocation of a 10 license or of the assessment of a penalty, or both, shall be 11 given in the manner prescribed by the commission. The suspension 12 or revocation of a license or the assessment of a penalty, or 13 both, by the commission ora dulyAN authorized agent of the 14 commission does not prohibit the institution of a criminal prose- 15 cution for a violation of this act. The institution of a crimi- 16 nal prosecution for a violation of this act or the acquittal or 17 conviction of a person for a violation of this act does not pre- 18 vent the suspension or revocation of a license or the assessment 19 of a penalty, or both, by the commission. In a hearing for the 20 suspension or revocation of a license issued under this act, 21 proof that the defendant licensee or an agent or employee of the 22 licensee demanded and was shown, before furnishing any alcoholic 23 liquor to a minor, a motor vehicle operator or chauffeur license 24 or a registration certificate issued by the federal selective 25 service, or other bona fide documentary evidence of majority and 26 identity of the person, may be offered as evidence in a defense 27 to a proceeding for the suspension or revocation of a license 02455'99 a 6 1 issued under this act. A licensee who has reason to believe that 2 a minor has used fraudulent identification to purchase alcoholic 3 liquor in violation of section 703 shall file a police report 4 concerning the violation with a local law enforcement agency and 5 shall also present the alleged fraudulent identification to the 6 local law enforcement agency at the time of filing the report if 7 the identification is in the possession of the licensee. The 8 commission may promulgate rules pursuant to the administrative 9 procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, 10 regarding the utilization by licensees of equipment designed to 11 detect altered or forged driver licenses, state identification 12 cards, and other forms of identification. 13 (3) In addition to the hearing commissioners provided for in 14 section 209, the chairperson of the commission may designate not 15 more than 2dulyauthorized agents to hear violation cases. A 16 person appointed under this subsection shall be a member in good 17 standing of the state bar of Michigan. 18 (4)A dulyAN authorized agent who has been designated by 19 the chairpersonpursuant toUNDER subsection (3) shall have, in 20 the hearing of violation cases, the same authority and responsi- 21 bility as does a hearing commissioner under this act and the 22 rules promulgated under this act. 23 (5)A dulyAN authorized agent who has been designated by 24 the chairperson pursuant to subsection (3) shall be ineligible 25 for appointment to the commission for a period of 1 year after 26 the person ceases to serve asa dulyAN authorized agent. 02455'99 a 7 1 Sec. 1023. The commission shall not prohibit licensees from 2 allowing pinball machines on the premises for the purpose of 3 amusement. 4 (2) THE COMMISSION SHALL NOT PROHIBIT A LICENSEE FROM 5 OBTAINING A VIDEO LOTTERY ESTABLISHMENT LICENSE UNDER THE 6 MICHIGAN VIDEO GAMING ACT. THE REVENUE GENERATED BY A LICENSEE 7 THROUGH THE CONDUCT OF A VIDEO LOTTERY IS SUBJECT TO THE REGULA- 8 TION AND ALLOCATION FORMULA PROVIDED FOR IN THE MICHIGAN VIDEO 9 GAMING ACT. 10 Enacting section 1. This amendatory act does not take 11 effect unless all of the following bills of the 90th Legislature 12 are enacted into law: 13 (a) Senate Bill No. 480. 14 15 (b) Senate Bill No. 478. 16 02455'99 a Final page. TLG