SB-0216, As Passed House, December 1, 2010

SUBSTITUTE FOR

SENATE BILL NO. 216

(As amended, November 10, 2010)

<<A bill to amend 1998 PA 58, entitled

"Michigan liquor control code of 1998,"

by amending sections 518 and 525 (MCL 436.1518 and 436.1525),

section 518 as amended by 2005 PA 166 and section 525 as amended by

2010 PA 175.>>

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 518. (1) As used in this section:

(a) "Motorsports entertainment complex" means a closed-course

motorsports facility and its ancillary grounds that comply with all

of the following:

(i) Has at least 1,500 fixed seats for race patrons.

(ii) Has at least 7 scheduled days of motorsports events each

calendar year.

(iii) Serves food and beverages at the facility during

sanctioned motorsports events each calendar year through concession

outlets, which may be staffed by individuals who represent or are

members of 1 or more nonprofit civic or charitable organizations

that directly financially benefit from the concession outlets'

sales.

(iv) Engages in tourism promotion.

(b) "Motorsports event" means a motorsports race and its

ancillary activities that have been sanctioned by a sanctioning

body.

entertainment complex.

(d) "Sanctioning body" means the American motorcycle

association (AMA); auto racing club of America (ARCA); championship

auto racing teams (CART); grand American road racing association

(GRAND AM); Indy racing league (IRL); national association for

stock car auto racing (NASCAR); nation hot rod association (NHRA);

professional sportscar racing (PSR); sports car club of America

(SCCA); United States auto club (USAC); Michigan state promoters

association; or any successor organization or any other nationally

or internationally recognized governing body of motorsports that

establishes an annual schedule of motorsports events and grants

rights to conduct the events, that has established and administers

rules and regulations governing all participants involved in the

events and all persons conducting the events, and that requires

certain liability assurances, including insurance.

~~(2) Notwithstanding the quota provisions of section 531, the~~

~~commission may issue motorsports event licenses for the sale of~~

~~beer and wine for consumption on the premises to the owner of a~~

~~motorsports entertainment complex for use during sanctioned~~

~~motorsports events only.~~

(2) Notwithstanding the quota provisions of section 531, the

commission may issue motorsports event licenses for the sale of

beer and wine or beer, wine, mixed spirit drink, and spirits for

consumption on the premises to the owner of a motorsports

entertainment complex for use during sanctioned motorsports events

only. The sale of beer, wine, mixed spirit drink, and spirits at

concession outlets or additional locations within the motorsports

entertainment complex during motorsports sanctioned events shall

not be considered additional bars for the purpose of determining a

license fee pursuant to section 525(1)(o). An applicant for a

license under this section that elects to sell beer and wine only

shall pay to the commission a license fee of $250.00. An applicant

for a license under this section that elects to sell beer, wine,

mixed spirit drink, and spirits shall pay to the commission a

license fee of $600.00.

(3) For a period of time not to exceed 7 consecutive days

during which public access is permitted to a motorsports

entertainment complex in connection with a motorsports event,

members of the general public at least 21 years or older may bring

beer and wine not purchased at the licensed motorsports

entertainment complex into the motorsports entertainment complex

and possess and consume that beer and wine. Possession and

consumption of beer and wine under this section are allowed only in

portions of the motorsports entertainment complex open to the

general public that are also part of the licensed premises of a

retail licensee under both of the following circumstances:

(a) The licensed premises are located within the motorsports

entertainment complex.

(b) The retail licensee holds a license for consumption on the

licensed premises of the motorsports entertainment complex.

(4) A person holding a license for the sale of alcoholic

liquor for consumption on the premises at a motorsports

entertainment complex is subject to the civil liability provisions

of section 801 if the civil action is brought by or on behalf of an

individual who suffers damage or is personally injured by a minor

or visibly intoxicated person by reason of the unlawful consumption

of alcoholic liquor on the licensed premises by that minor or

visibly intoxicated person if the unlawful consumption is proven to

be a proximate cause of the damage, injury, or death of the

individual, whether the alcoholic liquor was sold or furnished by

the licensee or was brought onto the licensed premises under

subsection (3).

Sec. 525. (1) Except as otherwise provided for in this

section, the following license fees shall be paid at the time of

filing applications or as otherwise provided in this act and are

subject to allocation under section 543:

(a) Manufacturers of spirits, but not including makers,

blenders, and rectifiers of wines containing 21% or less alcohol by

volume, $1,000.00.

(b) Manufacturers of beer, $50.00 per 1,000 barrels, or

fraction of a barrel, production annually with a maximum fee of

$1,000.00, and in addition $50.00 for each motor vehicle used in

delivery to retail licensees. A fee increase does not apply to a

manufacturer of less than 15,000 barrels production per year.

this state, $1,000.00.

(d) Wine makers, blenders, and rectifiers of wine, including

makers, blenders, and rectifiers of wines containing 21% or less

alcohol by volume, $100.00. The small wine maker license fee is

$25.00.

(e) Outstate seller of wine, delivering or selling wine in

this state, $300.00.

(f) Outstate seller of mixed spirit drink, delivering or

selling mixed spirit drink in this state, $300.00.

(g) Dining cars or other railroad or Pullman cars selling

alcoholic liquor, $100.00 per train.

(h) Wholesale vendors other than manufacturers of beer,

$300.00 for the first motor vehicle used in delivery to retail

licensees and $50.00 for each additional motor vehicle used in

delivery to retail licensees.

(i) Watercraft, licensed to carry passengers, selling

alcoholic liquor, a minimum fee of $100.00 and a maximum fee of

$500.00 per year computed on the basis of $1.00 per person per

passenger capacity.

(j) Specially designated merchants, for selling beer or wine

for consumption off the premises only but not at wholesale, $100.00

for each location regardless of the fact that the location may be a

part of a system or chain of merchandising.

(k) Specially designated distributors licensed by the

commission to distribute spirits and mixed spirit drink in the

original package for the commission for consumption off the

premises, $150.00 per year, and an additional fee of $3.00 for each

$1,000.00 or major fraction of that amount in excess of $25,000.00

of the total retail value of merchandise purchased under each

license from the commission during the previous calendar year.

(l) Hotels of class A selling beer and wine, a minimum fee of

$250.00 and, for all bedrooms in excess of 20, $1.00 for each

additional bedroom, but not more than $500.00.

(m) Hotels of class B selling beer, wine, mixed spirit drink,

and spirits, a minimum fee of $600.00 and, for all bedrooms in

excess of 20, $3.00 for each additional bedroom. If a hotel of

class B sells beer, wine, mixed spirit drink, and spirits in more

than 1 public bar, the fee entitles the hotel to sell in only 1

public bar, other than a bedroom, and a license shall be secured

for each additional public bar, other than a bedroom, the fee for

which is $350.00.

(n) Taverns, selling beer and wine, $250.00.

(o) Class C license selling beer, wine, mixed spirit drink,

and spirits, $600.00. If Subject to section 518(2), if a class C

licensee sells beer, wine, mixed spirit drink, and spirits in more

than 1 bar, a fee of $350.00 shall be paid for each additional bar.

In municipally owned or supported facilities in which nonprofit

organizations operate concession stands, a fee of $100.00 shall be

paid for each additional bar.

(p) Clubs selling beer, wine, mixed spirit drink, and spirits,

$300.00 for clubs having 150 or fewer duly accredited members and

$1.00 for each additional member. The membership list for the

purpose only of determining the license fees to be paid under this

subdivision shall be the accredited list of members as determined

by a sworn affidavit 30 days before the closing of the license

year. This subdivision does not prevent the commission from

checking a membership list and making its own determination from

the list or otherwise. The list of members and additional members

is not required of a club paying the maximum fee. The maximum fee

shall not exceed $750.00 for any 1 club.

(q) Warehousers, to be fixed by the commission with a minimum

fee for each warehouse of $50.00.

(r) Special licenses, a fee of $50.00 per day, except that the

fee for that license or permit issued to any bona fide nonprofit

association, duly organized and in continuous existence for 1 year

before the filing of its application, is $25.00. Not more than 12

special licenses may be granted to any organization, including an

auxiliary of the organization, in a calendar year.

(s) Airlines licensed to carry passengers in this state that

sell, offer for sale, provide, or transport alcoholic liquor,

$600.00.

(t) Brandy manufacturer, $100.00.

(u) Mixed spirit drink manufacturer, $100.00.

(v) Brewpub, $100.00.

(w) Class G-1, $1,000.00.

(x) Class G-2, $500.00.

(y) Motorsports event license, ~~$250.00~~ the amount as described

and determined under section 518(2).

(z) Small distiller, $100.00.

(aa) Wine auction license, $50,000.00.

(bb) Nonpublic continuing care retirement center license,

$600.00.

(2) The fees provided in this act for the various types of

licenses shall not be prorated for a portion of the effective

period of the license. Notwithstanding subsection (1), the initial

license fee for any licenses issued under section 531(3) ~~and~~ or (4)

is $20,000.00. The renewal license fee shall be the amount

described in subsection (1). However, the commission shall not

impose the $20,000.00 initial license fee for applicants whose

license eligibility was already approved on July 20, 2005.

(3) Beginning July 23, 2004, and except in the case of any

resort or resort economic development license issued under section

531(2), (3), (4), ~~and~~ or (5) ~~and~~ or a license issued under section

521, the commission shall issue an initial or renewal license not

later than 90 days after the applicant files a completed

application. Receipt of the application is considered the date the

application is received by any agency or department of the state of

Michigan. If the application is considered incomplete by the

commission, the commission shall notify the applicant in writing,

or make the information electronically available, within 30 days

after receipt of the incomplete application, describing the

deficiency and requesting the additional information. The

determination of the completeness of an application does not

operate as an approval of the application for the license and does

not confer eligibility upon an applicant determined otherwise

ineligible for issuance of a license. The 90-day period is tolled

under any of the following circumstances:

(a) Notice sent by the commission of a deficiency in the

application until the date all of the requested information is

received by the commission.

(b) The time period during which actions required by a party

other than the applicant or the commission are completed that

include, but are not limited to, completion of construction or

renovation of the licensed premises; mandated inspections by the

commission or by any state, local, or federal agency; approval by

the legislative body of a local unit of government; criminal

history or criminal record checks; financial or court record

checks; or other actions mandated by this act or rule or as

otherwise mandated by law or local ordinance.

(4) If the commission fails to issue or deny a license within

the time required by this section, the commission shall return the

license fee and shall reduce the license fee for the applicant's

next renewal application, if any, by 15%. The failure to issue a

license within the time required under this section does not allow

the commission to otherwise delay the processing of the

application, and that application, upon completion, shall be placed

in sequence with other completed applications received at that same

time. The commission shall not discriminate against an applicant in

the processing of the application based upon the fact that the

license fee was refunded or discounted under this subsection.

(5) Beginning October 1, 2005, the chair of the commission

shall submit a report by December 1 of each year to the standing

committees and appropriations subcommittees of the senate and house

of representatives concerned with liquor license issues. The chair

of the commission shall include all of the following information in

the report concerning the preceding fiscal year:

(a) The number of initial and renewal applications the

commission received and completed within the 90-day time period

described in subsection (3).

(b) The number of applications denied.

90-day time period and the amount of money returned to licensees

under subsection (4).

(6) As used in this section, "completed application" means an

application complete on its face and submitted with any applicable

licensing fees as well as any other information, records, approval,

security, or similar item required by law or rule from a local unit

of government, a federal agency, or a private entity but not from

another department or agency of the state of Michigan.