HB-4895, As Passed Senate, March 24, 2016

SUBSTITUTE FOR

HOUSE BILL NO. 4895

A bill to amend 1998 PA 58, entitled

"Michigan liquor control code of 1998,"

by amending section 541 (MCL 436.1541), as amended by 2008 PA 489.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 541. (1) ~~The~~ Except as provided in subsections (2) to

(6), the commission shall not ~~prohibit~~ allow an applicant for or

the holder of a specially designated distributor license or

specially designated merchant license from owning or operating

motor vehicle fuel pumps on or adjacent to the licensed premises,

if unless both of the following conditions are met:

(a) One or both of the following conditions exist:

(i) The applicant or licensee is located in a neighborhood

shopping center. ~~composed of 1 or more commercial establishments~~

~~organized or operated as a unit which is related in location, size,~~

~~and type of shop to the trade area that the unit serves, which~~

~~provides not less than 50,000 square feet of gross leasable retail~~

~~space, and which provides 5 private off-street parking spaces for~~

~~each 1,000 square feet of gross leasable retail space.~~

(ii) ~~The~~ Subject to subsection (9), the applicant or licensee

maintains a minimum inventory on the premises, excluding alcoholic

liquor and motor vehicle fuel, of not less than $250,000.00, at

cost, of those goods and services customarily marketed by approved

types of businesses.

(b) The site of payment and selection of alcoholic liquor is

not less than 50 5 feet from that point where motor vehicle fuel is

dispensed.

(2) The commission shall not prohibit an applicant for or the

holder of a specially designated distributor license or specially

designated merchant license from owning or operating motor vehicle

fuel pumps on or adjacent to the licensed premises, if all of the

following conditions are met:

(a) The applicant is located in a township with a population

of 7,000 or less ~~, which township~~ that is not contiguous with any

other township. For purposes of this subdivision, a township is not

considered contiguous by water.

(b) The applicant or licensee maintains a minimum inventory on

the premises, excluding alcoholic liquor and motor vehicle fuel, of

not less than $12,500.00 at cost, of those goods and services

customarily marketed by approved types of businesses.

evidenced by a resolution duly adopted by the township and

submitted with the application to the commission.

(3) The commission shall not prohibit an applicant for or the

holder of a specially designated merchant license from owning or

operating motor vehicle fuel pumps on or adjacent to the licensed

premises if both of the following conditions are met:

(a) The applicant or licensee is located in ~~either~~ any of the

following:

(i) A city, incorporated village, or township with a

population of 3,500 or less and a county with a population of

31,000 or more.

(ii) A city, incorporated village, or township with a

population of 4,000 or less and a county with a population of less

than 31,000.

(iii) A township in which the applicant or licensee is the

only person that owns or operates motor fuel pumps within the

township on the date of application. The commission shall not

revoke a license that was granted under this subparagraph if a

second person that owns or operates motor fuel pumps opens within

the township after the original application was filed.

(b) The applicant or licensee maintains a minimum inventory on

the premises, excluding alcoholic liquor and motor vehicle fuel, of

not less than $10,000.00, at cost, of those goods and services

customarily marketed by approved types of businesses.

(4) The commission shall not prohibit an applicant for or the

holder of a specially designated distributor license from owning or

operating motor vehicle fuel pumps on or adjacent to the licensed

premises if both of the following conditions are met:

(a) The applicant or licensee is located in either of the

following:

(i) A city, incorporated village, or township with a

population of 3,500 or less and a county with a population of

31,000 or more.

(ii) A city, incorporated village, or township with a

population of 4,000 or less and a county with a population of less

than 31,000.

(b) The applicant or licensee maintains a minimum inventory on

the premises, excluding alcoholic liquor and motor vehicle fuel, of

not less than $12,500.00, at cost, of those goods and services

customarily marketed by approved types of businesses.

(5) A person ~~who~~ that was issued a specially designated

merchant license or specially designated distributor license at a

location at which another person owned, operated or maintained

motor vehicle fuel pumps at the same location may have or acquire

an interest in the ownership, operation or maintenance of those

motor vehicle fuel pumps.

(6) The commission may transfer ownership of a specially

designated merchant license or specially designated distributor

license to a person ~~who~~ that owns or is acquiring an interest in

motor vehicle fuel pumps already in operation at the same location

at which the license is issued.

(7) If a specially designated merchant's licensed premises are

a primary location, the commission may issue a secondary location

permit to the specially designated merchant, as an extension of the

specially designated merchant's license, for the sale of beer,

wine, or both, at the secondary location. The commission shall

issue a secondary location permit only to a specially designated

merchant to which both of the following apply:

(a) The holder of the specially designated merchant license

for the primary location premises or a subsidiary or affiliate of

the license holder owns or leases the secondary location.

(b) The holder of the specially designated merchant license

for the primary location or a subsidiary or affiliate of the

license holder owns or operates motor vehicle fuel pumps at the

secondary location under subsection (1).

(8) An applicant for a secondary location permit shall submit

an application to the commission in a format provided by the

commission and accompanied by an application and initial permit fee

of $100.00. The application must include a diagram of the secondary

location with building dimensions and a depiction of the distance

measurement described in subsection (1)(b). The secondary location

permit expires on the same date as the specially designated

merchant license and may be renewed in conjunction with the

specially designated merchant license. The secondary location

permit holder may renew the secondary location permit by submitting

a permit renewal fee of $100.00 and a completed renewal

application.

(9) After a specially designated merchant is issued a

secondary location permit under subsection (7) and if the specially

designated merchant's licensed premises are a primary location that

is not a neighborhood shopping center, for purposes of determining

the minimum inventory condition described in subsection (1)(a)(ii),

the primary location and the secondary location are considered 1

premises.

(10) After a specially designated merchant is issued a

secondary location permit under subsection (7), if a subsidiary or

affiliate of the specially designated merchant owns or operates the

secondary location and the subsidiary or affiliate shares the same

ultimate controlling party of the specially designated merchant,

the secondary location may receive and sell beer, wine, or both

under the specially designated merchant's license.

(11) The holder of a secondary location permit shall

prominently display the secondary location permit at the secondary

location in the point-of-sale area.

(12) As used in this section:

(a) "Neighborhood shopping center" means 1 commercial

establishment, or a group of commercial establishments organized or

operated as a unit, that is related in location, size, and type of

shop to the trade area that the unit serves, and consists of not

less than 50,000 square feet of leasable retail space, and has

access to off-street parking spaces.

(b) "Primary location" means licensed premises that meet the

conditions under subsection (1).

holder of a specially designated merchant license for a primary

location, or a subsidiary or affiliate of that license holder, that

takes place on real property, that includes at least 1 building and

1 or more motor vehicle fuel pumps, and that is located on or

adjacent to the primary location. Upon commission approval of the

secondary location permit, the secondary location is considered