SB-0247, As Passed Senate, December 4, 2014

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE BILL NO. 247

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1998 PA 58, entitled

 

"Michigan liquor control code of 1998,"

 

by amending section 1114 (MCL 436.2114), as amended by 2011 PA 27,

 

and by adding section 1116.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1114. (1) Notwithstanding R 436.1403 and R 436.1503 of

 

the Michigan administrative code and except as otherwise provided

 

in section 1116, under this act, or by rule of the commission, an

 

on-premises and an off-premises licensee shall not sell, give away,

 

or furnish alcoholic liquor between the hours of 2 a.m. and 7 a.m.

 

on any day.

 

     (2) Subsection (1) does not prevent any local governmental

 

unit from prohibiting the sale of beer and wine between the hours

 

of 7 a.m. and 12 noon on Sunday or between the hours of 7 a.m. on


 

Sunday and 2 a.m. on Monday under section 1111 and does not prevent

 

any local governmental unit from prohibiting the sale of spirits

 

and mixed spirit drink between the hours of 7 a.m. and 12 noon on

 

Sunday or between the hours of 7 a.m. on Sunday and 2 a.m. on

 

Monday under section 1113. A licensee selling alcoholic liquor

 

between 7 a.m. and 12 noon on Sunday shall obtain a permit and pay

 

to the commission an annual fee of $160.00.

 

     (3) A reference to the time of day under this act or a rule of

 

the commission includes daylight savings time, when observed.

 

     Sec. 1116. (1) If a city, village, or township approves by a

 

majority of the legislative body voting on a resolution to allow

 

on-premises licensees to sell or furnish alcoholic liquor between

 

the hours of 2 a.m. and 4 a.m. on Saturday and Sunday, an on-

 

premises licensee located within a central business district in

 

that city, village, or township may apply for an extended hours

 

permit from the commission to sell or furnish alcoholic liquor

 

between the hours of 2 a.m. and 4 a.m. on Saturday and Sunday. The

 

commission shall not issue an extended hours permit under this

 

section unless the applicant has already been approved by the local

 

legislative body in which the applicant's place of business is

 

located.

 

     (2) To obtain an extended hours permit, an on-premises

 

licensee shall do all of the following:

 

     (a) Submit a completed application and a yearly permit fee of

 

$10,000.00 to the commission.

 

     (b) Obtain local legislative approval for the extended hours

 

permit from the local legislative body in which the licensee's


 

place of business is located and include documentation of the

 

approval.

 

     (c) Demonstrate to the commission all of the following:

 

     (i) Unless the licensee holds a casino license, the licensee

 

will have 1 security person for every 50 customers on the licensed

 

premises as required under subparagraph (ii).

 

     (ii) That the licensee will have at least 1 security person at

 

the licensed premises from the hours of 11 p.m. on Friday to 4 a.m.

 

on Saturday and 11 p.m. on Saturday to 4 a.m. on Sunday.

 

     (iii) That the licensee will have 360-degree video surveillance

 

on the inside and outside of the licensed premises.

 

     (d) Maintain compliance with this act and the rules

 

promulgated under this act.

 

     (3) Upon receipt of an application that has not yet been

 

reviewed and approved by the local legislative body in which the

 

applicant's place of business is located, the commission shall

 

immediately notify the local legislative body and provide the local

 

legislative body with a copy of the application to accomplish the

 

local legislative review as required by this section. The local

 

legislative body shall approve or deny the application within 90

 

days after receipt of the application from the applicant or the

 

commission. Upon denial of an application, the local legislative

 

body shall notify the applicant, in writing, of the reasons for the

 

denial. If the local legislative body does not approve or deny an

 

application within that 90-day period, the commission may issue the

 

extended hours permit if the commission determines that the

 

licensee meets the conditions described in subsections (1) and


 

(2)(a), (c), and (d). The commission shall approve or deny an

 

application submitted pursuant to this section within 90 days after

 

the applicant files a completed application or 90 days after the

 

commission has notified and provided a copy of the application to

 

the local legislative body, whichever is later.

 

     (4) The commission shall deposit all permit fees collected

 

under this section in the extended hours permit fund created in

 

subsection (5).

 

     (5) The extended hours permit fund is created within the state

 

treasury. The state treasurer may receive money or other assets

 

from any source for deposit into the fund. The state treasurer

 

shall direct the investment of the fund. The state treasurer shall

 

credit to the fund interest and earnings from fund investments.

 

Money in the fund at the close of the fiscal year shall remain in

 

the fund and shall not lapse to the general fund. The department of

 

licensing and regulatory affairs shall be the administrator of the

 

fund for auditing purposes. The department of treasury shall expend

 

money from the fund, upon appropriation, only as provided in

 

subsection (6).

 

     (6) All money collected and deposited in the extended hours

 

permit fund shall be distributed as follows:

 

     (a) 5% shall be respectively disbursed based on the number of

 

permits issued within each city, village, or township to those

 

respective cities, villages, and townships where the extended hours

 

permits are located for administration costs related to this

 

section.

 

     (b) 85% shall be respectively disbursed based on the number of


 

permits issued within each city, village, or township to the police

 

departments of those cities, villages, and townships where the

 

extended hours permits are located for the specific purpose of

 

enforcing this section and the rules promulgated under this

 

section.

 

     (c) 10% shall be disbursed to the commission for carrying out

 

the administration and enforcement provisions of this section.

 

     (7) As used in this section:

 

     (a) "Casino" means that term as defined in section 2 of the

 

Michigan gaming control and revenue act, 1996 IL 1, MCL 432.202.

 

Casino does not include a casino operated under the Indian gaming

 

regulatory act, 25 USC 2701 to 2721.

 

     (b) "Central business district" means a downtown district

 

established under 1975 PA 197, MCL 125.1651 to 125.1681.