August 28, 2013, Introduced by Rep. Heise 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 903 (MCL 436.1903), as amended by 2010 PA 175.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 903. (1) The commission or any commissioner or duly
authorized agent of the commission designated by the chairperson of
the commission, upon due notice and proper hearing, may suspend or
revoke any license upon a violation of this act or any of the rules
promulgated
by the commission under this act. The Except as
otherwise provided in subsection (3), the commission or any
commissioner or duly authorized agent of the commission designated
by the chairperson of the commission, may assess a penalty of not
less
than $100.00 but not more than $300.00
$750.00 for each
violation
of this act or rules promulgated under this act, or not
more
than $1,000.00 for each violation of section 801(2), in
addition to or in lieu of revocation or suspension of the license,
which penalty shall be paid to the commission and deposited with
the state treasurer and shall be credited to the general fund of
the
state. The commission shall hold a hearing and order the
suspension
or revocation of a license if the licensee has been
found
liable for 3 or more separate violations of section 801(2)
which
violations occurred on different occasions within a 24-month
period
unless such violations for the sale, furnishing, or giving
alcoholic
liquor to a minor were discovered by the licensee and
disclosed
to an appropriate law enforcement agency immediately upon
discovery.
A retail licensee who sells, offers
to sell, accepts,
furnishes, possesses, or allows the consumption of spirits in
violation of section 901(6) is subject to an administrative fine of
not more than $2,500.00 per occurrence and the following license
sanctions after notice and opportunity for an administrative
hearing under the administrative procedures act of 1969, 1969 PA
306, MCL 24.201 to 24.328:
(a) For a first violation, a license revocation or suspension
for between 1 and 30 days.
(b) For a second violation, a license revocation or suspension
for between 31 and 90 days.
(c) For a third or subsequent violation, revocation of the
license.
(2) The commission shall provide a procedure by which a
licensee who is aggrieved by any penalty imposed under subsection
(1), (3), or (4) and any suspension or revocation of a license
ordered by the commission, a commissioner, or a duly authorized
agent of the commission may request a hearing for the purpose of
presenting any facts or reasons to the commission as to why the
penalty, suspension, or revocation should be modified or rescinded.
Any such request shall be in writing and accompanied by a fee of
$25.00. The commission, after reviewing the record made before a
commissioner or a duly authorized agent of the commission, may
allow or refuse to allow the hearing in accordance with the
commission's rules. The right to a hearing provided in this
subsection, however, shall not be interpreted by any court as
curtailing, removing, or annulling the right of the commission to
suspend or revoke licenses as provided for in this act. A licensee
does not have a right of appeal from the final determination of the
commission, except by leave of the circuit court. Notice of the
order of suspension or revocation of a license or of the assessment
of a penalty, or both, shall be given in the manner prescribed by
the commission. The suspension or revocation of a license or the
assessment of a penalty, or both, by the commission or a duly
authorized agent of the commission does not prohibit the
institution of a criminal prosecution for a violation of this act.
The institution of a criminal prosecution for a violation of this
act or the acquittal or conviction of a person for a violation of
this act does not prevent the suspension or revocation of a license
or the assessment of a penalty, or both, by the commission. In a
hearing for the suspension or revocation of a license issued under
this act, proof that the defendant licensee or an agent or employee
of the licensee demanded and was shown, before furnishing any
alcoholic liquor to a minor, a motor vehicle operator or chauffeur
license or a registration certificate issued by the federal
selective service, or other bona fide documentary evidence of
majority and identity of the person, may be offered as evidence in
a defense to a proceeding for the suspension or revocation of a
license issued under this act. A licensee who has reason to believe
that a minor has used fraudulent identification to purchase
alcoholic liquor in violation of section 703 shall file a police
report concerning the violation with a local law enforcement agency
and shall also present the alleged fraudulent identification to the
local law enforcement agency at the time of filing the report if
the identification is in the possession of the licensee. The
commission may promulgate rules pursuant to the administrative
procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328,
regarding the utilization by licensees of equipment designed to
detect altered or forged driver licenses, state identification
cards, and other forms of identification.
(3) The commission or any commissioner or duly authorized
agent of the commission designated by the chairperson of the
commission may assess a penalty and license sanctions for each
critical violation, upon due notice and proper hearing, as follows:
(a) For a first violation, a fine of not less than $1,000.00
but not more than $2,000.00 or a license revocation or suspension
for between 1 and 10 days, or both.
(b) For a second violation within a 24-month period, a fine of
not less than $2,000.00 but not more than $3,000.00 or a license
revocation or suspension for between 11 and 20 days, or both.
(c) For a third violation within a 24-month period, a fine of
not less than $3,000.00 but not more than $4,000.00 or a license
revocation or suspension for between 21 days and 30 days, or both.
(d) For a fourth or subsequent violation within a 24-month
period, a license revocation or suspension for 60 days.
(4) The commission shall hold a hearing and order the
suspension or revocation of a license if the licensee has been
found liable for 3 or more separate violations of section 801(2),
which violations occurred on different occasions within a 24-month
period, unless such violations for the sale, furnishing, or giving
of alcoholic liquor to a minor were discovered by the licensee and
disclosed to an appropriate law enforcement agency immediately upon
discovery. A retail licensee who sells, furnishes, or gives
alcoholic liquor to a minor who is less than 17 years of age in
violation of section 801(2) is subject to the following penalties
and license sanctions, upon due notice and proper hearing:
(a) For a first violation, a fine of not less than $2,000.00
but not more than $3,000.00 or a license revocation or suspension
for between 1 and 10 days, or both.
(b) For a second violation within a 24-month period, a fine of
not less than $3,000.00 but not more than $4,000.00 or a license
revocation or suspension for between 11 and 20 days, or both.
(c) For a third violation within a 24-month period, a fine of
not less than $4,000.00 but not more than $5,000.00 or a license
revocation or suspension for between 21 days and 30 days, or both.
(d) For a fourth or subsequent violation within a 24-month
period, a license revocation or suspension for 60 days.
(5) (3)
In addition to the hearing
commissioners provided for
in section 209, the chairperson of the commission may designate not
more than 2 duly authorized agents to hear violation cases. A
person appointed under this subsection shall be a member in good
standing of the state bar of Michigan.
(6) (4)
A duly authorized agent who has
been designated by the
chairperson
pursuant to subsection (3) (5)
shall have, in the
hearing of violation cases, the same authority and responsibility
as does a hearing commissioner under this act and the rules
promulgated under this act.
(7) (5)
A duly authorized agent who has
been designated by the
chairperson
pursuant to subsection (3) (5)
shall be ineligible for
appointment to the commission for a period of 1 year after the
person ceases to serve as a duly authorized agent.
(8) In addition to the penalty and licensing sanctions
provided in subsections (1), (3), and (4), for any violation of
this act or rules promulgated under this act the commission may
order the licensee to reimburse a local unit of government for any
expenses or costs that are attributable to that violation. The
amount ordered to be paid under this subsection shall be paid to
the commission, who shall transmit the appropriate amount to the
appropriate local unit of government.
(9) As used in this section, "critical violation" means a
violation of section 203, 217(1), (2), or (3), 801(2), 901(1),
916(1), (2), or (3), 1114(2), or 1115(1) or a violation of R
436.1011(1), (2), or (4), R 436.1031(1), or R 436.1527 of the
Michigan administrative code.