RETIREMENT CENTER LIQUOR LICENSE H.B. 6007: COMMITTEE SUMMARY
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House Bill 6007 (as passed by the House)
Sponsor: Representative Hugh Crawford
House Committee: Regulatory Reform
Senate Committee: Economic Development and Regulatory Reform


Date Completed: 9-15-10

CONTENT The bill would amend the Michigan Liquor Control Code to do all of the following:

-- Include a "nonpublic continuing care retirement center" in the classes of vendors that may sell alcoholic liquor at retail.
-- Allow a licensed retirement center to sell and serve beer, wine, and spirits to residents and their guests for on-premises consumption.
-- Establish a $600 license fee for a nonpublic continuing care retirement center license.
-- Require the Liquor Control Commission (LCC) to grant not more than 20 retirement center licenses to applicants that complied with the bill's requirements.

The Code lists the classes of vendors that may sell alcoholic liquor at retail in Michigan. The bill would include in that list a nonpublic continuing care retirement center, where beer, wine, mixed spirit drink, mixed wine drink, and spirits could be sold at retail and served on the licensed premises to residents and their guests for consumption on the licensed premises.


The Code also specifies license fees for the various licenses issued under it. The fees must be paid at the time applications are filed or as otherwise provided. The bill would establish a $600 fee for a nonpublic continuing care retirement center license.


Upon submission of completed applications, the LCC would have to grant up to 20 nonpublic continuing care retirement center licenses to applicants.

"Nonpublic continuing care retirement center" would mean a residential community that, as determined by the LCC, meets both of the following:

-- Provides full-time residential housing predominantly for individuals over 62 years of age.
-- Is registered as a "facility" under the Living Care Disclosure Act (i.e., an adult foster care facility, nursing home, retirement home, home for the aged, or a place that undertakes to provide care to an individual for more than one year).


MCL 436.1525 et al. Legislative Analyst: Patrick Affholter




FISCAL IMPACT

The bill would increase the revenue to the Liquor Control Commission within the Department of Energy, Labor, and Economic Growth by an unknown amount due to the issuance of a new type of retail liquor license for nonpublic continuing care retirement centers. Retail liquor license revenue is distributed as follows: 41.5% is retained by the LCC for the costs of administration, 55.0% is distributed to local units of government as liquor law enforcement grants, and 3.5% is used for State programs for alcoholism prevention and treatment.


Assuming that 20 new licenses authorized by the bill were issued, revenue of approximately $12,000 annually would be available for distribution, increasing revenue to the LCC by an estimated $5,000, increasing liquor law enforcement grants by $6,600, and increasing State revenue to the Department of Community Health for alcoholism treatment by $400.

Fiscal Analyst: Josh Sefton

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. hb6007/0910