TENANT IN STATE-OWNED BUILDING                                                      S.B. 803 & 804:

                                                                                                    SUMMARY OF BILL

                                                                                      REPORTED FROM COMMITTEE

Senate Bills 803 and 804 (as reported without amendment)

Sponsor:  Senator Dave Hildenbrand

Committee:  Regulatory Reform

CONTENT

Senate Bill 803 would amend the Michigan Liquor Control Code and Senate Bill 804 would amend Public Act 260 of 1978 (which relates to blind and visually impaired individuals) to do the following, respectively, regarding a State-owned building larger than 1.0 million square feet:

-- Allow the Liquor Control Commission to issue a license to sell alcoholic liquor in the building if space in it were leased to a private entity that held a liquor license.

-- Make an exception to a requirement that a concession in a State-owned building be operated by a blind person.

Senate Bill 804 also would require the Department of Technology, Management, and Budget to provide 1,700 square feet of space to the Commission for the Blind at the same rate provided to State agency tenants in the building larger than 1.0 million square feet.

MCL 436.1519 (S.B. 803)                                          Legislative Analyst:  Stephen Jackson

       393.359 et al. (S.B. 804)

FISCAL IMPACT

Senate Bill 803 would not have a significant fiscal impact on the State or local units of government.  The bill would effectively allow for private tenants in the State-owned Cadillac Place office complex in Detroit to obtain a liquor license provided they already have a liquor license, presumably for another location. The Michigan Liquor Control Commission uses 41.5% of liquor license fee revenue to cover the costs associated with license issuance; 55.0% is given back to county sheriffs to enforce the State's liquor laws; and the remaining 3.5% is used to support alcoholism treatment programs.  Because the bill would affect only a single facility, it is expected that additional revenue from the new license or licenses that could result would not be significant.

Senate Bill 804 would have no fiscal impact as the Department of Technology, Management, and Budget has stated that current policy is to charge the same rate as charged to the State agency that occupies the building.

Date Completed:  4-12-18                                                    Fiscal Analyst:  Joe Carrasco

                                                                                                       Michael Siracuse

This 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.