HB-5260, As Passed House, March 7, 2018
SUBSTITUTE FOR
HOUSE BILL NO. 5260
A bill to amend 1998 PA 58, entitled
"Michigan liquor control code of 1998,"
by amending section 532 (MCL 436.1532), as added by 2001 PA 223.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 532. (1) A club license allows the licensee to sell, for
consumption on the licensed premises, beer, wine, mixed spirit
drink, and spirits only to bona fide members of the club who have
attained the age of 21 years. As used in this subsection, "bona
fide member" means an individual admitted as a charter member or
admitted in accordance with the bylaws of the club, who maintains
current membership by the payment of annual dues, whose name and
address is entered on the list of members, and who has voting
rights to regularly elect the board of directors, officers,
executive committee, or similar body that conducts the affairs and
management of the club. For an incorporated or unincorporated
nonprofit veterans' organization that is a branch or chapter of a
national organization or an organization chartered by the United
States Congress, a bona fide member includes a member of another
branch or chapter who possesses an identification card indicating
current membership in the same national or congressionally
chartered veterans' organization. For a branch, chapter, lodge,
aerie, or other local unit of a national fraternal nonprofit
association that is exempt from federal income taxes under section
501(c)(8) or 501(c)(10) of the internal revenue code, 26 USC 501, a
bona fide member includes a member of another branch, chapter,
lodge, aerie, or local unit who possesses an identification card
indicating current membership in the same national fraternal
nonprofit association.
(2)
Except as otherwise provided in
subsection (2), (3), the
commission shall not issue a license to a club unless the club has
been in existence for a period of not less than 2 years before the
application for the license.
(3) (2)
Public A club shall give
public notice of the intent
of
the commission to issue the club a
club license shall be given
by
publication in some a newspaper published or in general
circulation within the local governmental unit at least 10 days
before
the issuance of commission
issues the license. A club that
is a chapter of a national organization that has had a license for
10 or more years may apply for a license without a waiting period.
Public notice of the commission's intent to renew the club license
is not required.
(4) (3)
Except in the case of for a
club paying a maximum fee,
within 10 days after February 1 of each year the club shall file
with the commission a list of names and residences of its members
and make a similar filing of the name and residence with the
commission within 10 days after the election of an additional
member.
The annual filing shall must
also include a statement that
the club's annual aggregate membership fees or dues and other
income, exclusive of the proceeds from the sale of alcoholic
liquor, are sufficient to defray the annual rental of its leased or
rented premises or, if the premises are owned by the club, are
sufficient to meet the taxes, insurance, repairs, and interest on a
mortgage on the premises.
(5) (4)
The affairs and management of the
club shall must be
conducted by a board of directors, executive committee, or similar
body chosen by the members. A member, officer, agent, or employee
of
the club shall must not be paid, or directly or indirectly
receive in the form of salary or other compensation, profits from
the disposition of alcoholic liquor to the club or to the members
of the club, beyond the amount of salary fixed and voted at
meetings by the members or by its directors or other governing body
and as reported by the club to the commission, within 3 months
after the meeting.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.