ALLOW LIQUOR LICENSES FOR

USGA AMATEUR GOLF CHAMPIONSHIP

House Bill 5568 as introduced

Sponsor:  Rep. Michael D. McCready

Committee:  Regulatory Reform

Complete to 4-19-16

SUMMARY:

House Bill 5568 would include the 2016 United States Golf Association (USGA) Amateur Championship as a "national sporting event" for purposes of determining eligibility for issuance of national sporting event licenses by the Michigan Liquor Control Commission.   The bill would amend Section 517a of the Michigan Liquor Control Code.

The 2016 USGA Amateur Championship will take place at the Oakland Hills Country Club in Bloomfield Hills from August 15-21.  The 2005 Major League Baseball all-star game, 2006 NFL Super Bowl, 2008 PGA Golf Championship, and 2009 NCAA Final Four basketball games were each previously defined as a "national sporting event."

A national sporting event license may be issued if the commission finds all of the following circumstances to exist:

o   The local governmental unit in which the national sporting event is to be conducted is the host governmental unit for that event.

o   The premises to be licensed are located in a theme area or theme areas designated by the governing body of the host governmental unit in connection with the national sporting event or are operated in conjunction with that event.

o   The Liquor Control Commission determines that the national sporting event will attract a substantial number of tourists from outside this state.

o   The national sporting event is conducted under the auspices of a national sanctioning body.

o   The applicant is any of the following:

§  A Michigan licensee for the sale of alcoholic liquor for consumption on the premises.

§  The promoter of the national sporting event or an affiliate of the promoter.

§  A person who has entered into a written concession or catering agreement with the promoter of the national sporting event or its affiliate, which agreement has been approved by the commission.

§  An organization qualified for licensure as a special licensee and the rules of the commission. A special license is defined under the code as "a contract between the commission and the special licensee granting authority to that licensee to sell beer, wine, mixed spirit drink, or spirits. The license shall be granted only to such persons and such organization and for such period of time as the commission shall determine so long as the person or organization is able to demonstrate an existence separate from an affiliated umbrella organization. If such an existence is demonstrated, the commission shall not deny a special license solely by the applicant's affiliation with an organization that is also eligible for a special license."

FISCAL IMPACT:

House Bill 5568, as introduced, would have a nominal fiscal impact on the state’s General Fund to the extent that permitting the sale of beer, wine, and liquor at the United States Golf Association Amateur Championship would facilitate the collection of revenue generated by the state’s wholesaling of liquor and levying of excise taxes which are primarily deposited or lapsed into the General Fund.

                                                                                        Legislative Analyst:   Josh Roesner

                                                                                                Fiscal Analyst:   Paul B.A. Holland

■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.