HOUSE BILL No. 5878

 

May 12, 2004, Introduced by Reps. Gaffney, Richardville, Shackleton, Stahl, Voorhees, Amos, Palsrok, Taub, Meyer, LaJoy, Garfield, Nitz, DeRoche, Milosch, Pumford, Hummel, Steil, Koetje, Bisbee, Hune, Tabor, Shaffer, DeRossett, Ehardt, Newell, Caswell, Walker, Moolenaar, Acciavatti, Huizenga, Kooiman, Caul, Hoogendyk, Nofs and Sheen and referred to the Committee on Commerce.

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1998 PA 58, entitled                                              

                                                                                

    "Michigan liquor control code of 1998,"                                     

                                                                                

    by amending section 525 (MCL 436.1525), as amended by 2002 PA               

                                                                                

    76.                                                                         

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

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

                                                                                

2   this section, the following license fees shall be paid at the               

                                                                                

3   time of filing applications or as otherwise provided in this                

                                                                                

4   act:                                                                        

                                                                                

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

                                                                                

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

                                                                                

7   by volume, $1,000.00.                                                       

                                                                                

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

                                                                                

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

                                                                                

10  $1,000.00, and in addition $50.00 for each motor vehicle used in            

                                                                                


                                                                                

1   delivery to retail licensees.  A fee increase  shall  does not              

                                                                                

2   apply to a manufacturer of less than 15,000 barrels production              

                                                                                

3   per year.                                                                   

                                                                                

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

                                                                                

5   this state, $1,000.00.                                                      

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

9   shall be  is $25.00.                                                       

                                                                                

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

                                                                                

11  this state, $300.00.                                                        

                                                                                

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

                                                                                

13  selling mixed spirit drink in this state, $300.00.                          

                                                                                

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

                                                                                

15  alcoholic liquor, $100.00 per train.                                        

                                                                                

16      (h) Wholesale vendors other than manufacturers of beer,                     

                                                                                

17  $300.00 for the first motor vehicle used in delivery to retail              

                                                                                

18  licensees and $50.00 for each additional motor vehicle used in              

                                                                                

19  delivery to retail licensees.                                               

                                                                                

20      (i) Watercraft, licensed to carry passengers, selling                       

                                                                                

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

                                                                                

22  $500.00 per year computed on the basis of $1.00 per person per              

                                                                                

23  passenger capacity.                                                         

                                                                                

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

                                                                                

25  for consumption off the premises only but not at wholesale,                 

                                                                                

26  $100.00 for each location regardless of the fact that the                   

                                                                                

27  location may be a part of a system or chain of merchandising.               


                                                                                

1       (k) Specially designated distributors licensed by the                       

                                                                                

2   commission to distribute spirits and mixed spirit drink in the              

                                                                                

3   original package for the commission for consumption off the                 

                                                                                

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

                                                                                

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

                                                                                

6   $25,000.00 of the total retail value of merchandise purchased               

                                                                                

7   under each license from the commission during the previous                  

                                                                                

8   calendar year.                                                              

                                                                                

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

                                                                                

10  $250.00 and, for all bedrooms in excess of 20, $1.00 for each               

                                                                                

11  additional bedroom, but not more than $500.00.                              

                                                                                

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

                                                                                

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

                                                                                

14  excess of 20, $3.00 for each additional bedroom.  If a hotel of             

                                                                                

15  class B sells beer, wine, mixed spirit drink, and spirits in more           

                                                                                

16  than 1 public bar, the fee  shall entitle  entitles the hotel to            

                                                                                

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

                                                                                

18  shall be secured for each additional public bar, other than a               

                                                                                

19  bedroom, the fee for which  shall be  is $350.00.                           

                                                                                

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

                                                                                

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

                                                                                

22  and spirits, $600.00.  If a class C licensee sells beer, wine,              

                                                                                

23  mixed spirit drink, and spirits in more than 1 bar, a fee of                

                                                                                

24  $350.00 shall be paid for each additional bar.  In municipally              

                                                                                

25  owned or supported facilities in which nonprofit organizations              

                                                                                

26  operate concession stands, a fee of $100.00 shall be paid for               

                                                                                

27  each additional bar.                                                        


                                                                                

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

                                                                                

2   spirits, $300.00 for clubs having 150 or fewer duly accredited              

                                                                                

3   members and $1.00 for each additional member.  The membership               

                                                                                

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

                                                                                

5   paid under this section shall be the accredited list of members             

                                                                                

6   as determined by a sworn affidavit 30 days before the closing of            

                                                                                

7   the license year.  This section  shall  does not prevent the                

                                                                                

8   commission from checking a membership list and making its own               

                                                                                

9   determination from the list or otherwise.  The list of members              

                                                                                

10  and additional members  shall  is not  be  required of a club               

                                                                                

11  paying the maximum fee.  The maximum fee shall not exceed $750.00           

                                                                                

12  for any 1 club.                                                             

                                                                                

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

                                                                                

14  fee for each warehouse of $50.00.                                           

                                                                                

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

                                                                                

16  the fee for that license or permit issued to any bona fide                  

                                                                                

17  nonprofit association, duly organized and in continuous existence           

                                                                                

18  for 1 year before the filing of its application,  shall be  is              

                                                                                

19  $25.00.  Not more than 5 special licenses may be granted to any             

                                                                                

20  organization, including an auxiliary of the organization, in a              

                                                                                

21  calendar year.                                                              

                                                                                

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

                                                                                

23  which  that sell, offer for sale, provide, or transport                    

                                                                                

24  alcoholic liquor, $600.00.                                                  

                                                                                

25      (t) Brandy manufacturer, $100.00.                                           

                                                                                

26      (u) Mixed spirit drink manufacturer, $100.00.                               

                                                                                

27      (v) Brewpub, $100.00.                                                       


                                                                                

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

                                                                                

2       (x) Class G-2, $500.00.                                                     

                                                                                

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

                                                                                

4   licenses shall not be prorated for a portion of the effective               

                                                                                

5   period of the license.                                                      

                                                                                

6       (3) Beginning the effective date of the amendatory act that                 

                                                                                

7   added this subsection, the commission shall issue an initial or             

                                                                                

8   renewal license not later than 6 months after the applicant files           

                                                                                

9   a completed application.  If the application is considered                  

                                                                                

10  incomplete by the commission, the commission shall notify the               

                                                                                

11  applicant in writing within 10 days after receipt of the                    

                                                                                

12  incomplete application, describing the deficiency and requesting            

                                                                                

13  the additional information.  The 6-month period is tolled upon              

                                                                                

14  notification by the commission of a deficiency until the date the           

                                                                                

15  requested information is received by the commission.                        

                                                                                

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

                                                                                

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

                                                                                

18  the license fee and shall reduce the license fee for the                    

                                                                                

19  applicant's next renewal application, if any, by 15%.  The                  

                                                                                

20  commission shall not discriminate against an applicant in the               

                                                                                

21  processing of the application based upon the fact that the                  

                                                                                

22  application fee was refunded or discounted under this                       

                                                                                

23  subsection.                                                                 

                                                                                

24      (5) Beginning January 31, 2005, the chair of the commission                 

                                                                                

25  shall submit a report by January 31 of each year to the standing            

                                                                                

26  committees and appropriations subcommittees of the senate and               

                                                                                

27  house of representatives concerned with liquor license issues.              


                                                                                

1   The chair of the commission shall include all of the following              

                                                                                

2   information in the report concerning the preceding calendar                 

                                                                                

3   year:                                                                       

                                                                                

4       (a) The number of initial and renewal applications the                      

                                                                                

5   commission received and completed within the 6-month time period            

                                                                                

6   described in subsection (3).                                                

                                                                                

7       (b) The number of applications requiring a request for                      

                                                                                

8   additional information.                                                     

                                                                                

9       (c) The average time for an applicant to respond to a request               

                                                                                

10  for additional information.                                                 

                                                                                

11      (d) The number of applications rejected, categorized by                     

                                                                                

12  reason for rejection.                                                       

                                                                                

13      (e) The amount of money returned to licensees under                         

                                                                                

14  subsection (4).                                                             

                                                                                

15      (f) The number of applications not issued within the 6-month                

                                                                                

16  period.                                                                     

                                                                                

17      (g) The average processing time for initial and renewal                     

                                                                                

18  applications granted after the 6-month period.