March 4, 2014, Introduced by Senator HILDENBRAND 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 521a (MCL 436.1521a), as amended by 2010 PA
369.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 521a. (1) In order to allow cities, villages, and
townships to enhance the quality of life for their residents and
visitors to their communities, the commission may issue public on-
premises licenses in addition to those quota licenses allowed in
cities, villages, and townships under section 531(1). The licenses
under
this section shall be issued to businesses that meet 1 either
of the following conditions:
(a)
Are located in a city redevelopment project area meeting
the criteria described in subsections (3) and (4) and are engaged
in activities determined by the commission to be related to dining,
entertainment, or recreation.
(b) Are located in a development district or area that is any
of the following:
(i) An authority district established under the tax increment
finance authority act, 1980 PA 450, MCL 125.1801 to 125.1830.
(ii) A development area established under the corridor
improvement authority act, 2005 PA 280, MCL 125.2871 to 125.2899.
(iii) A downtown district established under 1975 PA 197, MCL
125.1651 to 125.1681.
(iv) A principal shopping district established under 1961 PA
120,
MCL 125.981 to 125.990m.125.990n.
(2) The commission shall not issue a license under subsection
(1)(a) unless the applicant fulfills the following in relation to
the licensed premises:
(a) Provides the activity described in subsection (1)(a) not
less than 5 days per week.
(b) Is open to the public not less than 10 hours per day, 5
days per week.
(c) Presents verification of redevelopment project area status
to
the commission that shall include includes the following:
(i) A resolution of the governing body of the city, village, or
township establishing its status as a redevelopment project area.
(ii) An affidavit from the assessor, as certified by
the city
clerk of the city, village, or township, stating the total amount
of investment in real and personal property within the
redevelopment project area of the city during the preceding 3
years.
In the case of an applicant seeking a license under this
section
within the first license cycle after December 29, 2006, the
time
period described in this subdivision may be up to 5 years, or
7
years for a city having a population between 80,000 and 85,000
according
to the 2000 federal decennial census and the application
is
submitted within the first 6 months after December 29, 2006.
(iii) An affidavit from the assessor, as certified by
the city
clerk of the city, village, or township, separately stating the
amount of investment money expended for manufacturing, industrial,
residential, and commercial development within the redevelopment
project area of the city, village, or township during the preceding
3
years. In the case of an applicant seeking a license under this
section
within the first license cycle after December 29, 2006, the
time
period described in this subdivision may be up to 5 years, or
7
years for a city having a population between 80,000 and 85,000
according
to the 2000 federal decennial census and the application
is
submitted within the first 6 months after December 29, 2006.
(3) Relative to the licenses issued under subsection (1)(a),
the amount of commercial investment in the redevelopment project
area within the city, village, or township shall constitute not
less than 25% of the total investment in real and personal property
in that redevelopment project area as evidenced by an affidavit of
the
city assessor of the city,
village, or township. This
subsection does not prevent the city, village, or township from
realigning the redevelopment project area in the presentment of
verification provided for under subsection (2)(c).
(4) In relation to a license issued under subsection (1)(a),
an applicant shall be located in a city, village, or township that
meets at least 1 of the investment requirements of subsection
(1)(a) during the 3 years preceding the submission of its
application. ,
or within the preceding 5 years in the case of an
applicant
applying during the first license cycle after December
29,
2006. The total investment in real
and personal property in the
redevelopment project area within the city, village, or township
over the appropriate time period described in this subsection shall
be at least 1 of the following:
(a) Not less than $50,000,000.00 in cities, villages, or
townships having a population of 50,000 or more.
(b) Not less than an amount reflecting $1,000,000.00 per 1,000
people in cities, villages, or townships having a population of
less than 50,000.
(5) The commission may issue a license under subsection (1)(a)
for each monetary threshold described in subsection (4)(a) and (b),
and, after reaching the initial threshold, 1 additional license for
each major fraction thereof above that original threshold.
(6) The following apply to a license issued under subsection
(1)(b):
(a) The amount expended for the rehabilitation or restoration
of the building that housed the licensed premises shall be not less
than $75,000.00 over a period of the preceding 5 years or a
commitment for a capital investment of at least that amount in the
building
that houses the licensed premises, which that must be
expended before the issuance of the license.
(b) The total amount of public and private investment in real
and
personal property within the qualified redevelopment project
development district or area shall not be less than $200,000.00
over a period of the preceding 5 years as verified to the
commission by means of an affidavit from the assessor, as certified
by
the clerk of the local governmental unit.city, village, or
township.
(c) The licensed business is engaged in dining, entertainment,
or recreation, is open to the general public, and has a seating
capacity of not less than 25 persons.
(7) The commission may issue 1 license for each monetary
threshold described in subsection (6)(b), or for each major
fraction thereof. The initial enhanced license fee for a license
issued under this section is $20,000.00.
(8) The commission shall not transfer a license issued under
this section to another location. If the licensee goes out of
business, the licensee shall surrender the license to the
commission.
The governing body of the local governmental unit city,
village,
or township may approve another
applicant within a city
redevelopment project area or development district or area to
replace a licensee who has surrendered the license issued under
this section provided the new applicant's business meets the
requirements of this section but without regard to subsections
(2)(c), (3), and (4) or subsection (6)(b).
(9) The individual signing the application for the license
shall state and demonstrate that the applicant attempted to secure
an
appropriate on-premise on-premises
escrowed license or quota
license issued under section 531 and that, to the best of his or
her
knowledge, an on-premise on-premises
escrowed license or quota
license issued under section 531 is not readily available within
the
local unit of government county
in which the applicant proposes
to operate.
(10) As used in this section:
(a)
"City" means a city established under either of the
following:
(i) The home rule city act, 1909 PA 279, MCL 117.1 to
117.38.
(ii) The fourth class city act, 1895 PA 215, MCL 81.1
to
113.20.
(a) (b)
"Escrowed license" means
a license in which the rights
of the licensee in the license or to the renewal of the license are
still in existence and are subject to renewal and activation in the
manner provided for in R 436.1107 of the Michigan administrative
code.
(b) (c)
"Readily available" means
available under a standard
of economic feasibility, as applied to the specific circumstances
of the applicant, that includes, but is not limited to, the
following:
(i) The fair market value of the license based on where the
applicant will be located, if determinable.
(ii) The size and scope of the proposed operation.
(iii) The existence of mandatory contractual restrictions or
inclusions attached to the sale of the license.