HOUSE BILL No. 4437

 

March 15, 2011, Introduced by Reps. Pscholka, Cotter, Haveman, Nesbitt, MacGregor, Ananich, Dillon, Wayne Schmidt, Johnson, Shirkey, Jenkins, Hughes, Stapleton, Daley, Santana, O'Brien, Bumstead, Farrington, Lyons, Pettalia, Horn, LaFontaine, Ouimet, MacMaster, Huuki, Damrow, Rendon, Shaughnessy, Hooker, Scott, Potvin, Yonker, Price and Hovey-Wright and referred to the Committee on Regulatory Reform.

 

     A bill to amend 1998 PA 58, entitled

 

"Michigan liquor control code of 1998,"

 

by amending section 525 (MCL 436.1525), as amended by 2010 PA 279.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     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.

 

     (c) Outstate seller of beer, delivering or selling beer in

 

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 whether the location

 

may be a is 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 in excess of 20, but not more than $500.00

 

total.

 

     (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 in excess of 20. 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 a fee of $350.00 shall be paid 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. 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 in excess of 150. The membership

 

list for the purpose only of determining the license fees to be

 

paid under this subdivision shall be the accredited Clubs shall

 

submit a list of accredited members as determined by a sworn

 

affidavit 30 days before the closing of the license year which

 

shall be used only for determining the license fees to be paid

 

under this subdivision. 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, 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) 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), or (5) or a license issued under section 521, the

 

The commission shall issue an initial or renewal license not later

 

than 90 60 days after the applicant files a completed application.

 

Receipt of the The application is considered to be received the

 

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

 

state of Michigan this state. If the commission determines that an

 

application is considered incomplete, by the commission, the

 

commission shall notify the applicant in writing, or make the

 

information electronically available, within 30 7 days after

 


receipt of the incomplete application, describing the deficiency

 

and requesting the additional information. If the commission does

 

not notify an applicant whether an application is complete within 7

 

days after receipt of the application, the commission shall

 

consider that application complete. The determination of the

 

completeness of an application does not operate as is not 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 60-day period is tolled for the

 

following periods under any of the following circumstances:

 

     (a) Notice If notice is 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 For the time period during which required to complete

 

actions required by a party person, other than the applicant or the

 

commission, are completed that include including, 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 60-day time period 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% grant a

 


60-day probationary license to the applicant. If the commission

 

does not make a decision regarding the denial or issuance of the

 

license after the expiration of both the 60-day period and 60-day

 

probationary license period described in this subsection, the

 

commission shall issue the requested license. 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. At any time during the 60-day probationary license period,

 

the commission may deny an application for licensure if it

 

determines that the applicant is not qualified. 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 a probationary license was issued under this

 

subsection.

 

     (5) Beginning October 1, 2005, the 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 60-day time

 

period described in subsection (3).

 

     (b) The number of applications denied.

 

     (c) The number of applicants not issued a license within the

 


90-day 60-day time period. and the amount of money returned to

 

licensees under subsection (4).

 

     (6) As used in this section: , "completed

 

     (a) "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 this state.

 

     (b) "Probationary license" means a license of the type

 

requested by an applicant that is issued as a result of a delay in

 

the commission's decision to grant or deny a license application in

 

a timely manner.