HOUSE BILL No. 5488

 

March 15, 2012, Introduced by Reps. Franz, Bumstead, Nesbitt, Rendon, Opsommer, Yonker, Shirkey, Pettalia, Jacobsen, Kowall and Wayne Schmidt 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 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.

 

     (c) Outstate seller of beer, delivering or selling beer in

 

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 which 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 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, 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

 

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) The commission shall, within 14 days after an applicant

 

files an application under subsection (3), issue a temporary

 

license to an applicant seeking an initial license for selling

 

alcoholic liquor for consumption on or off the premises if the

 

applicant does all of the following:

 

     (a) Submits a completed temporary license application to the

 

commission.

 

     (b) Provides proof to the commission that the applicant is not

 

disqualified from holding a license under this act.

 

     (6) The commission may, at any time during the temporary

 

license period under subsection (5), deny an application for

 

licensure if it determines the applicant is not qualified or if the

 

commission denies the applicant's initial license under this

 

section.

 

     (7) (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.


 

     (c) The number of applicants not issued a license within the

 

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

 

under subsection (4).

 

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

 

an application complete on its face and submitted with any

 

applicable licensing fees as well as any other information,

 

records, approval, security, or similar item required by law or

 

rule from a local unit of government, a federal agency, or a

 

private entity but not from another department or agency of the

 

state of Michigan.