HB-5488, As Passed House, September 27, 2012

SUBSTITUTE FOR

HOUSE BILL NO. 5488

A bill to amend 1998 PA 58, entitled

"Michigan liquor control code of 1998,"

by amending section 525 (MCL 436.1525), as amended by 2010 PA 279.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 525. (1) Except as otherwise provided ~~for~~ in this

section, the following license fees shall be paid at the time of

filing applications or as otherwise provided in this act and are

subject to allocation under section 543:

(a) Manufacturers of spirits, ~~but~~ not including makers,

blenders, and rectifiers of wines containing 21% or less alcohol by

volume, $1,000.00.

(b) Manufacturers of beer, $50.00 per 1,000 barrels, or

fraction of a barrel, production annually with a maximum fee of

$1,000.00, and in addition $50.00 for each motor vehicle used in

delivery to retail licensees. A fee increase does not apply to a

manufacturer of less than 15,000 barrels production per year.

this state, $1,000.00.

(d) Wine makers, blenders, and rectifiers of wine, including

makers, blenders, and rectifiers of wines containing 21% or less

alcohol by volume, $100.00. The small wine maker license fee is

$25.00.

(e) Outstate seller of wine, delivering or selling wine in

this state, $300.00.

(f) Outstate seller of mixed spirit drink, delivering or

selling mixed spirit drink in this state, $300.00.

(g) Dining cars or other railroad or Pullman cars selling

alcoholic liquor, $100.00 per train.

(h) Wholesale vendors other than manufacturers of beer,

$300.00 for the first motor vehicle used in delivery to retail

licensees and $50.00 for each additional motor vehicle used in

delivery to retail licensees.

(i) Watercraft, licensed to carry passengers, selling

alcoholic liquor, a minimum fee of $100.00 and a maximum fee of

$500.00 per year computed on the basis of $1.00 per person per

passenger capacity.

(j) Specially designated merchants, for selling beer or wine

for consumption off the premises only but not at wholesale, $100.00

for each location regardless of ~~the fact that~~ whether the location

~~may be a~~ is part of a system or chain of merchandising.

(k) Specially designated distributors licensed by the

commission to distribute spirits and mixed spirit drink in the

original package for the commission for consumption off the

premises, $150.00 per year, and an additional fee of $3.00 for each

$1,000.00 or major fraction of that amount in excess of $25,000.00

of the total retail value of merchandise purchased under each

license from the commission during the previous calendar year.

(l) Hotels of class A selling beer and wine, a minimum fee of

$250.00 and ~~, for all bedrooms in excess of 20,~~ $1.00 for each

~~additional~~ bedroom in excess of 20, but not more than $500.00

total.

(m) Hotels of class B selling beer, wine, mixed spirit drink,

and spirits, a minimum fee of $600.00 and ~~, for all bedrooms in~~

~~excess of 20,~~ $3.00 for each ~~additional~~ bedroom in excess of 20. If

a hotel of class B sells beer, wine, mixed spirit drink, and

spirits in more than 1 public bar, ~~the fee entitles the hotel to~~

~~sell in only 1 public bar, other than a bedroom, and a license~~

~~shall be secured~~ a fee of $350.00 shall be paid for each additional

public bar, other than a bedroom. ~~, the fee for which is $350.00.~~

(n) Taverns, selling beer and wine, $250.00.

(o) Class C license selling beer, wine, mixed spirit drink,

and spirits, $600.00. Subject to section 518(2), if a class C

licensee sells beer, wine, mixed spirit drink, and spirits in more

than 1 bar, a fee of $350.00 shall be paid for each additional bar.

In municipally owned or supported facilities in which nonprofit

organizations operate concession stands, a fee of $100.00 shall be

paid for each additional bar.

(p) Clubs selling beer, wine, mixed spirit drink, and spirits,

$300.00 for clubs having 150 or fewer ~~duly~~ accredited members and

$1.00 for each ~~additional~~ member in excess of 150. ~~The membership~~

~~list for the purpose only of determining the license fees to be~~

~~paid under this subdivision shall be the accredited~~ Clubs shall

submit a list of members ~~as determined~~ by a sworn affidavit 30 days

before the closing of the license year. The sworn affidavit shall

be used only for determining the license fees to be paid under this

subdivision. This subdivision does not prevent the commission from

checking a membership list and making its own determination from

the list or otherwise. The list of members and additional members

is not required of a club paying the maximum fee. The maximum fee

shall not exceed $750.00 for any 1 club.

(q) Warehousers, to be fixed by the commission with a minimum

fee for each warehouse of $50.00.

(r) Special licenses, a fee of $50.00 per day, except that the

fee for that license or permit issued to any bona fide nonprofit

association, duly organized and in continuous existence for 1 year

before the filing of its application, is $25.00. Not more than 12

special licenses may be granted to any organization, including an

auxiliary of the organization, in a calendar year.

(s) Airlines licensed to carry passengers in this state that

sell, offer for sale, provide, or transport alcoholic liquor,

$600.00.

(t) Brandy manufacturer, $100.00.

(u) Mixed spirit drink manufacturer, $100.00.

(v) Brewpub, $100.00.

(w) Class G-1, $1,000.00.

(x) Class G-2, $500.00.

(y) Motorsports event license, the amount as described and

determined under section ~~518 (2).~~518(2).

(z) Small distiller, $100.00.

(aa) Wine auction license, $50,000.00.

(bb) Nonpublic continuing care retirement center license,

$600.00.

(2) The fees provided in this act for the various types of

licenses shall not be prorated for a portion of the effective

period of the license. Notwithstanding subsection (1), the initial

license fee for any licenses issued under section 531(3) or (4) is

$20,000.00. The renewal license fee shall be the amount described

in subsection (1). However, the commission shall not impose the

$20,000.00 initial license fee for applicants whose license

eligibility was already approved on July 20, 2005.

(3) ~~Beginning July 23, 2004, and except~~ Except in the case of

any resort or resort economic development license issued under

section 531(2), (3), (4), or (5) or a license issued under section

~~521,~~ 521a, the commission shall issue an initial or renewal license

not later than 90 days after the applicant files a completed

application. ~~Receipt of the~~ The application is considered to be

received the date the application is received by any agency or

department of ~~the state of Michigan.~~ this state. If the commission

determines that an application is ~~considered~~ incomplete, ~~by the~~

~~commission,~~ the commission shall notify the applicant in writing,

or make the information electronically available, within 30 days

after receipt of the incomplete application, describing the

deficiency and requesting the additional information. The

determination of the completeness of an application ~~does not~~

~~operate as~~ is not an approval of the application for the license

and does not confer eligibility upon an applicant determined

otherwise ineligible for issuance of a license. The 90-day period

is tolled for the following periods under any of the following

circumstances:

(a) ~~Notice~~ If notice is sent by the commission of a deficiency

in the application, until the date all of the requested information

is received by the commission.

(b) ~~The~~ For the time ~~period during which~~ required to complete

actions required by a ~~party~~ person, other than the applicant or the

commission, ~~are completed that include,~~ including, but ~~are~~ not

limited to, completion of construction or renovation of the

licensed premises; mandated inspections by the commission or by any

state, local, or federal agency; approval by the legislative body

of a local unit of government; criminal history or criminal record

checks; financial or court record checks; or other actions mandated

by this act or rule or as otherwise mandated by law or local

ordinance.

(4) If the commission fails to issue or deny a license within

the time required by this section, the commission shall return the

license fee and shall reduce the license fee for the applicant's

next renewal application, if any, by 15%. The failure to issue a

license within the time required under this section does not allow

the commission to otherwise delay the processing of the

application, and that application, upon completion, shall be placed

House Bill No. 5488 (H-2) as amended September 27, 2012

in sequence with other completed applications received at that same

time. The commission shall not discriminate against an applicant in

the processing of the application based upon the fact that the

license fee was refunded or discounted under this subsection.

(5) If an applicant submits a completed application under this

section and files an acceptable proof of financial responsibility

form under section 803 and an executed property document, the

commission shall, within 14 business days of a request, issue a

conditional license to any of the following:

(a) An applicant seeking to transfer an existing license under

subsection (3) to sell alcoholic liquor for consumption on or off

the premises at the same location.

(b) An applicant seeking an initial license under subsection

(3), except for a specially designated distributor license or a

license for the sale of alcoholic liquor for consumption on the

premises.

(6) A conditional license issued under subsection (5) expires

when the commission issues a final order denying or approving the

license application that serves as the basis for the conditional

license or 1 year after the date the conditional license was

issued, whichever occurs first. If a conditionally approved

licensee fails to maintain acceptable proof of its financial

responsibility, the commission shall, after due notice and proper

hearing, suspend the conditional license until the licensee files

an acceptable proof of financial responsibility form under section

803. [IF A CONDITIONAL LICENSE IS REVOKED, THE CONDITIONAL LICENSEE

SHALL NOT RECOVER FROM A UNIT OF LOCAL GOVERNMENT ANY COMPENSATION FOR PROPERTY, FUTURE INCOME, OR FUTURE ECONOMIC LOSS DUE TO THE REVOCATION.]

(7) Upon issuing a conditional license under subsection (5),

the commission shall, until the conditional license expires under

subsection (6), place an existing license under subsection (3) in

escrow in compliance with R 436.1107 of the Michigan administrative

code. If the conditional license expires because a transfer of an

existing license was denied or because the license was not

transferred within the 1-year period, an existing licensee may do 1

of the following:

(a) Request that the commission release the license from

escrow.

(b) Keep the license in escrow. The escrow date for compliance

with R 436.1107 of the Michigan administrative code shall be the

date the conditional license expires.

(8) ~~(5) Beginning October 1, 2005, the~~ The chair of the

commission shall submit a report by December 1 of each year to the

standing committees and appropriations subcommittees of the senate

and house of representatives concerned with liquor license issues.

The chair of the commission shall include all of the following

information in the report concerning the preceding fiscal year:

(a) The number of initial and renewal applications the

commission received and completed within the 90-day time period

described in subsection (3).

(b) The number of applications denied.

90-day time period and the amount of money returned to licensees

under subsection (4).

(9) ~~(6)~~ As used in this section, "completed application" means

an application complete on its face and submitted with any