HOUSE BILL No. 4410 March 4, 1997, Introduced by Reps. Hammerstrom, Dobb, Mathieu, Schauer, Law, Prusi, Vaughn, Owen, McManus, Wetters, Kelly, DeHart, Bodem, Crissman, Tesanovich, Galloway and McBryde and referred to the Committee on House Oversight and Ethics. A bill to amend 1933 (Ex Sess) PA 8, entitled "The Michigan liquor control act," by amending sections 7a, 20, and 28a (MCL 436.7a, 436.20, and 436.28a), section 20 as amended by 1986 PA 176. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 7a. (1) The commission may make investigationswhich2 THAT it considers proper in the administration of this act and 3 the rules promulgated pursuant to this act concerning alcoholic 4 liquor,orthe manufacture, distribution, or sale of alcoholic 5 liquor,orthe collection of taxes on alcoholic liquor, OR VIO- 6 LATIONS CONCERNING THE VIDEO LOTTERY PURSUANT TO THE MICHIGAN 7 VIDEO GAMING ACT AND RULES PROMULGATED UNDER THAT ACT. 8 (2) A licensee shall make the licensed premises available 9 for inspection and search by a commission investigator or law 10 enforcement officer empowered to enforce the commission's rules 00613'97 a ** VPW 2 1 andAct No. 8 of the Public Acts of the Extra Session of 1933,2as amended, being sections 436.1 to 436.58 of the Michigan3Compiled LawsTHIS ACT during regular business hours or when the 4 licensed premises are occupied by the licensee or a clerk, ser- 5 vant, agent, or employee of the licensee. Evidence of a viola- 6 tion discovered pursuant to this subsection may be seized and 7 used in an administrative or court proceeding. 8 (3) The commission,ora dulyAN authorized agent of 9 the commission,may examine or copy the books, records, and 10 papers of any person relative to a requirement pertaining to this 11 act access to which has been obtained pursuant to this section. 12 (4) A member of the commission,ora dulyAN authorized 13 agent of the commission,may issue a subpoena requiring a 14 person to appear before the commission,or itsdulyautho- 15 rized agent,at any reasonable time and place,and be 16 examined with reference to any matter within the scope of the 17 inquiry or investigation being conducted by the commission, and 18 to produce any books, records, or papers pertaining to the ques- 19 tion involved. 20 (5) A member of the commission,ora dulyAN authorized 21 agent of the commission,may administer an oath or affirmation 22 to a witness in any matter before the commission, certify to 23 official acts, and take depositions. 24 (6) In case of disobedience of a subpoena, the commission or 25its dulyAN authorizedagentsAGENT OF THE COMMISSION may 26 invoke the aid of any circuit court of the state in requiring the 27 attendance and testimony of witnesses and the production of 00613'97 a ** 3 1 books, records, and papers pertaining to the question involved. 2 Any of the circuit courts of the state within the jurisdiction of 3 which the inquiry is carried on may, in case of contumacy or 4 refusal to obey a subpoena, issue an order requiring the person 5 to appear before the commission orits dulyAN authorized 6agentsAGENT OF THE COMMISSION and to produce books, records, 7 and papers if so ordered, and to give evidence touching the 8 matter in question.; and aA failure to obey the order of the 9 court may be punished by the court as a contempt of court. 10 (7) The fees of witnesses required to appear before the com- 11 mission shall be the same as those allowed to witnesses in the 12 circuit courts,and shall be paid by the commission. 13 (8) A sheriff's department or police department,shall,14 upon request of the commission, SHALL cause to be served a sub- 15 poena which may be directed to any person located within the 16 jurisdiction of the sheriff's department or police department. A 17 fee shall not be charged for this service by the sheriff's 18 department or police department. Subpoenas may also be served by 19 an investigator of the commission. 20 Sec. 20. (1) The commission,and any commissioner or 21dulyauthorized agent of the commission designated by the 22 chairperson of the commission, upon due notice and proper hear- 23 ing, may suspend or revoke any license upon a violation of this 24 act or any of the rules promulgated by the commission under this 25 act. IN THE CASE OF A LICENSEE HOLDING A VIDEO LOTTERY ESTAB- 26 LISHMENT LICENSE, THE COMMISSION MAY SUSPEND OR REVOKE A 27 LICENSEE'S LICENSE FOR A VIOLATION OF THE MICHIGAN VIDEO GAMING 00613'97 a ** 4 1 ACT AND ANY RULES PROMULGATED UNDER THAT ACT. The commission,2 and any commissioner ordulyauthorized agent of the commission 3 designated by the chairperson of the commission,may assess a 4 penalty of not more than $300.00 for each violationof this act5or rules promulgated under this act,or not more than $1,000.00 6 for each violation of section 22(3), in addition to orin lieu7 INSTEAD of revocation or suspension of the license, which penalty 8 shall be paid to the commission and deposited with the state 9 treasurer and shall be credited to the general fund of the 10 state. The commission shall hold a hearing and order the suspen- 11 sion or revocation of a license if the licensee has been found 12 liable, within a 24-month period,forOF 3 or more separate 13 violations of section 22(3), which violations occurred on differ- 14 ent occasions. 15 (2) The commission shall provide the procedure by which any 16 licensee feeling aggrieved by any penalty imposed under subsec- 17 tion (1)andOR any suspension or revocation of a license 18 ordered by the commission, a commissioner, ora dulyAN autho- 19 rized agent of the commission,may request a hearing for the 20 purpose of presenting any facts or reasons to the commission why 21 the penalty,or thesuspension, or revocation should be modi- 22 fied or rescinded. Any such request shall be in writing and 23 accompanied by a fee of $25.00. The commission after reviewing 24 the record made before a commissioner ora dulyAN authorized 25 agent of the commission may allow or refuse to allow the hearing 26 in accordance with the commission's rules.SuchTHIS right, 27 however, shall not be interpreted by any court as curtailing, 00613'97 a ** 5 1 removing, or annulling the right of the commission to suspend or 2 revoke licenses as provided for in this act. A licenseeshall3 DOES not have a right of appeal from the final determination of 4 the commission,except bywritLEAVE ofcertiorari to the5 circuit court. Notice of the order of suspension or revocation 6 of a license or assessment of a penalty, or both, shall be given 7 in the manner prescribed by the commission. The suspension or 8 revocation of a license or assessment of a penalty, or both, by 9 the commission ora dulyAN authorized agent of the commission 10shallDOES not prohibit the institution of a criminal prosecu- 11 tion for a violation of this act. The institution of a criminal 12 prosecution for a violation of this act, or the acquittal or con- 13 viction of any person for a violation of this act,shallDOES 14 not prevent the suspension or revocation of a license or assess- 15 ment of a penalty, or both, by the commission. In a hearing for 16 the suspension or revocation of a license issued pursuant to this 17 act, proof that the defendant licensee or an agent or employee of 18 the licensee demanded and was shown, before furnishing any alco- 19 holic liquor to a person less than 21 years of age, a motor vehi- 20 cle operator or chauffeur license, a registration certificate 21 issued by the federal selective service, or other bona fide docu- 22 mentary evidence of majority and identity of the person,may 23 be offered as evidence in a defense to a proceeding for the sus- 24 pension or revocation of a license issued under this act. A 25 licensee who has reason to believe that a person less than 21 26 years of age has used fraudulent identification to purchase 27 alcoholic liquor in violation of section 33b shall file a police 00613'97 a ** 6 1 report concerning the violation with a local law enforcement 2 agency and shall also present the alleged fraudulent identifica- 3 tion to the local law enforcement agency at the time of filing 4 the report if the identification is in the possession of the 5 licensee. The commission may promulgate rules pursuant to the 6 administrative procedures act of 1969,Act No. 306 of the Public7Acts of 1969, being sections 24.201 to 24.328 of the Michigan8Compiled Laws1969 PA 306, MCL 24.201 to 24.328, regarding the 9 utilization by licensees of equipment designed to detect altered 10 or forged driver licenses, state identification cards, and other 11 forms of identification. 12 (3) In addition to the hearing commissioners provided for in 13 section 5, the chairperson of the commission may designate not 14 more than 2dulyauthorized agents to hear violation cases. A 15 person appointed under this subsection shall be a member in good 16 standing of the state bar of Michigan. 17 (4)A dulyAN authorized agent who has been designated by 18 the chairperson pursuant to subsection (3)shall haveHAS the 19 same authority and responsibility as does a hearing commissioner 20 under this act and the rules promulgatedpursuant toUNDER this 21 act,in the hearing of violation cases. 22 (5)A dulyAN authorized agent who has been designated by 23 the chairperson pursuant to subsection (3)shall beIS ineligi- 24 ble for appointment to the commission for a period of 1 year 25 after the person ceases to serve asa dulyAN authorized 26 agent. 00613'97 a ** 7 1 Sec. 28a. (1) The commission shall not prohibit licensees 2 from allowing pinball machines on the premises for the purpose of 3 amusement. 4 (2) THE COMMISSION SHALL NOT PROHIBIT LICENSEES FROM OBTAIN- 5 ING A VIDEO LOTTERY ESTABLISHMENT LICENSE UNDER THE MICHIGAN 6 VIDEO GAMING ACT. THE MONEY GENERATED BY A LICENSEE THROUGH THE 7 CONDUCT OF A VIDEO LOTTERY IS SUBJECT TO THE REGULATION AND ALLO- 8 CATION FORMULA PROVIDED FOR IN THE MICHIGAN VIDEO GAMING ACT. 9 Enacting section 1. This amendatory act does not take 10 effect unless all of the following bills of the 89th Legislature 11 are enacted into law: 12 (a) Senate Bill No. ____ or House Bill No. ____ (request 13 no. 00613'97 **). 14 (b) Senate Bill No. ____ or House Bill No. ____ (request 15 no. 00613'97 b **). 00613'97 a ** Final page. VPW