May 10, 2005, Introduced by Senators OLSHOVE, CHERRY, BASHAM, JACOBS and SCHAUER and referred to the Committee on Economic Development, Small Business and Regulatory Reform.
A bill to amend 1998 PA 58, entitled
"Michigan liquor control code of 1998,"
by amending section 501 (MCL 436.1501), as amended by 2000 PA 431.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 501. (1) The commission may issue licenses as provided in
this act upon the payment of the fees provided in section 525 and
the filing of the bonds required in section 801 or liability
insurance as provided in section 803. Beginning not later than July
1, 2002 and subject to section 906(2) and (3), the commission shall
not issue a new on premises license or transfer more than 50%
interest in an existing on premises license unless the applicant or
transferee offers proof acceptable to the commission that he or she
has employed or has present on the licensed premises, at a minimum,
supervisory personnel on each shift and during all hours in which
alcoholic liquor is served who have successfully completed a server
training program as further described in section 906. The
commission may consider an individual enrolled and actively
participating in a server training program as having successfully
completed the program for such time as the individual is
participating. The commission may allow an applicant or a
conditionally approved licensee at least 180 days, or more upon a
showing of good cause, to meet the minimum personnel training
requirements of this subsection. The commission may suspend the
license of a conditionally approved licensee for failure to comply
with this subsection. The commission may waive the server training
requirements of this subsection on the basis of either of the
following circumstances:
(a) The licensee's responsible operating experience or
training.
(b) The person's demonstration of an acceptable level of
responsible operation either as a licensee during the preceding 3
years or as a manager with substantial experience in serving
alcoholic liquor.
(2) A full-year license issued by the commission shall expire
on April 30 following the date of issuance or the date fixed by the
commission. A license issued under this act shall be construed as a
contract between the commission and the licensee and shall be
signed by both parties. If a licensee dies, the commission may
approve the operation of the establishment by a personal
representative or independent personal representative duly
appointed by a court of competent jurisdiction, pending the
settlement of the estate of the deceased licensee. The commission
may approve a receiver or trustee appointed by a court of competent
jurisdiction to operate the licensed establishment of a licensee.
The commission may grant a part-year license for a proportionate
part of the license fee specified in section 525. In a resort area
the commission shall grant a license for a period of time as short
as 3 months. A license may be transferred with the consent of the
commission. A class C or specially designated distributor license
obtained in a manner other than by transfer shall not be
transferred within 3 years after its issuance except under
circumstances where the licensee clearly and convincingly
demonstrates that unusual hardship will result if the transfer does
not receive the consent of the commission. An application for a
license to sell alcoholic liquor for consumption on the premises,
except in a city having a population of 750,000 or more, shall be
approved by the local legislative body in which the applicant's
place of business is located before the license is granted by the
commission, except that in the case of an application for renewal
of an existing license, if an objection to a renewal has not been
filed with the commission by the local legislative body not less
than 30 days before the date of expiration of the license, the
approval of the local legislative body shall not be required. The
commission shall provide the local legislative body and the local
chief of police with the name, home and business addresses, and
home and business phone numbers to accomplish the local legislative
reviews of new and transferred license applications required by
this subsection. Upon request of the local legislative body after
due notice and proper hearing by the local legislative body and the
commission, the commission shall revoke the license of a licensee
granted a license to sell alcoholic liquor for consumption on the
premises or any permit held in conjunction with that license.
(3) A local legislative body, by resolution, may request that
the commission revoke the license of a licensee granted a license
to sell alcoholic liquor for consumption off the premises whose
place of business is located within the local legislative body's
jurisdiction and who has been determined pursuant to commission
violation hearings to have sold or furnished alcoholic liquor, on
at least 3 separate occasions in a single calendar year, to a
person who is less than 21 years of age if those violations did not
involve the use of falsified or fraudulent identification by the
person
who is less than 21 years of age minor. If the commission
verifies that the licensee who is the subject of the resolution has
been found to have committed the violations as prescribed in this
subsection, the commission may suspend or revoke the licensee's
license and any permit held in conjunction with that license.
(4) A local legislative body, by resolution, may request that
the commission revoke the license of a licensee granted a license
to sell alcoholic liquor for consumption on the premises whose
place of business is located within the local legislative body's
jurisdiction and who has been determined pursuant to commission
violation hearings to have had violent incidents occur on the
licensed premises or in areas adjacent to the licensed premises
owned or controlled by the licensee. If the commission verifies
that the licensee who is subject to the resolution has been found,
on at least 3 separate occasions in a single calendar year, to have
had violent incidents occur on the licensed premises or in areas
adjacent to the licensed premises owned or controlled by the
licensee, the commission shall suspend or revoke the licensee's
license and any permit held in conjunction with that license. The
commission may make a determination that a violent incident has
occurred even if the incident has not resulted in a conviction of a
crime described in subsection (7).
(5) (4)
This act does not prohibit a hotel which is or was
the holder of a license authorizing the retail sale of alcoholic
liquor for consumption on the premises from applying for and
receiving under this act any other and different type of license
authorizing the retail sale of alcoholic liquor for consumption on
the premises, and the application for the license shall not be
considered a new application for a license so long as the total
number of public licenses for consumption on the premises does not
exceed the authorized total established in this act and the sale of
alcoholic liquor is approved by the electors. The commission may
divide the state into 3 zones and establish for each zone an
anniversary date for renewal of full-year retail licenses in the
licensing year. The commission shall promulgate rules pursuant to
the administrative procedures act of 1969, 1969 PA 306, MCL 24.201
to 24.328, for the effective administration of the renewal of
licenses.
(6) (5)
The commission, with the written approval of the
department of agriculture in the case of the Michigan state
fairgrounds and the Upper Peninsula state fairgrounds, may issue
without regard to the quota provision of section 531 a tavern
license to a person as concessionaire leasing or renting a portion
of either the Upper Peninsula state fairgrounds or the state
fairgrounds, or both, to service the licensed area in use for
recreational or exhibition purposes other than at the time of the
annual Upper Peninsula state fair under section 2 of 1927 PA 89,
MCL 285.142. A license issued under this subsection is not
transferable.
(7) As used in this section, "violent incident" means the
committing of any act by any individual occurring on the licensed
premises or in areas adjacent to the licensed premises owned or
controlled by the licensee that could reasonably be considered by
the commission as a violation of any of the following:
(a) Chapter XI of the Michigan penal code, 1931 PA 328, MCL
750.81 to 750.90g.
(b) Chapter XLV of the Michigan penal code, 1931 PA 328, MCL
750.316 to 750.329a.
(c) Chapter L of the Michigan penal code, 1931 PA 328, MCL
750.349 to 750.350a.
(d) Chapter LVIII of the Michigan penal code, 1931 PA 328, MCL
750.397 to 750.397a.
(e) Chapter LXXVI of the Michigan penal code, 1931 PA 328, MCL
750.520a to 750.520g.
(f) Chapter LXXVIII of the Michigan penal code, 1931 PA 328,
MCL 750.529 to 750.531.