HOUSE BILL No. 4732

May 9, 2007, Introduced by Rep. Virgil Smith 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 523 (MCL 436.1523).

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 523. (1) A person who holds or whose spouse holds, either

 

by appointment or election, a public office which involves the duty

 

to enforce any of the penal laws of the United States, or the penal

 

laws of this state, or a penal ordinance or resolution of any

 

municipal subdivision of the state , except civil shall not be

 

issued a license, or have an interest, directly or indirectly, in a

 

license if the activity regulated by the license occurs in the same

 

local unit of government within which the person enforces those

 

state or local penal laws, unless the official is contractually


 

prohibited from enforcing this act. This subsection does not apply

 

to the following:

 

     (a) Civil defense volunteer police, mayors or council members

 

of cities, or village presidents, or mayors of home rule cities

 

whose law enforcement authority under the city charter is

 

restricted to emergency situations. , or the

 

     (b) The state treasurer of this state when acting in the

 

capacity of custodian of the assets of the state retirement systems

 

created by the public school employees retirement act of 1979, 1980

 

PA 300, MCL 38.1301 to 38.1408; the state employees' retirement

 

act, 1943 PA 240, MCL 38.1 to 38.69; the state police retirement

 

act of 1986, 1986 PA 182, MCL 38.1601 to 38.1648; and the judges

 

retirement act of 1992, 1992 PA 234, MCL 38.2101 to 38.2670, and

 

members of these state retirement systems only if the state

 

treasurer makes an investment in the name of the respective

 

retirement system to which such members belong. , shall not be

 

issued a license, or have an interest, directly or indirectly, in a

 

license if the activity regulated by the license occurs in the same

 

local unit of government within which the person enforces those

 

state or local penal laws unless the official is contractually

 

prohibited from enforcing this act. This subsection does not apply

 

to a

 

     (c) A spouse of an appointed or elected official holding an

 

office which involves the duty to enforce a penal law described in

 

this subsection if the spouse held a license or an interest in a

 

license for not less than 3 years before marrying the appointed or

 

elected official or if the spouse has voting rights in a public or


 

private club holding the license, which voting rights are derived

 

from ownership of shares to the club, and the spouse participates

 

as a member in good standing of the public or private club or of an

 

advisory board but does not participate in the day-to-day operation

 

of the club.

 

     (d) A spouse of a nonpatrol law enforcement officer working in

 

the jurisdiction within which the licensed premises is located,

 

that jurisdiction having an area of at least 10 square miles and a

 

population of 500,000 or more, and who has held the license for at

 

least 1 year without any violations of this act.

 

     (2) In the case of any licensee excepted from the general

 

prohibition contained in this section, the commission may

 

periodically review all circumstances of the licensee and his or

 

her spouse regarding the exception. The commission has the

 

authority to review and monitor any complaints it receives

 

regarding inappropriate enforcement of this act by or against a

 

person excepted from this section. However, a nonprofit fraternal

 

organization incorporated under the laws of this state, whose

 

membership is not totally composed of law enforcement personnel or

 

public officeholders charged with the duty of enforcing any penal

 

laws or ordinances of a governmental body, may be issued a club

 

liquor license if the organization is otherwise qualified.

 

     (3) (2) As used in this section, "law enforcement personnel"

 

does not include the mayor of a city or the state treasurer of this

 

state when acting in the capacity of custodian of the assets of the

 

state retirement systems created by the public school employees

 

retirement act of 1979, 1980 PA 300, MCL 38.1301 to 38.1408, the


 

state employees' retirement act, 1943 PA 240, MCL 38.1 to 38.69,

 

the state police retirement act of 1986, 1986 PA 182, MCL 38.1601

 

to 38.1648, and the judges retirement act of 1992, 1992 PA 234, MCL

 

38.2101 to 38.2670, and members of these state retirement systems

 

only if the state treasurer makes an investment in the name of the

 

respective retirement system to which such members belong.