Bill Text: MI HB4573 | 2013-2014 | 97th Legislature | Introduced
Bill Title: Liquor; licenses; licensing and transfer fees; allow to prorate quarterly. Amends secs. 525 & 529 of 1998 PA 58 (MCL 436.1525 & 436.1529).
Spectrum: Bipartisan Bill
Status: (Vetoed) 2014-12-30 - Vetoed By The Governor 12/29/2014 [HB4573 Detail]
Download: Michigan-2013-HB4573-Introduced.html
HOUSE BILL No. 4573
April 17, 2013, Introduced by Reps. Dianda, Haugh, Kelly, McBroom, Yonker, Stanley, Driskell, Cochran, Kivela, Dillon, Howrylak, Rendon, Lauwers, LaVoy, Franz, Irwin and Oakes and referred to the Committee on Regulatory Reform.
A bill to amend 1998 PA 58, entitled
"Michigan liquor control code of 1998,"
by amending sections 525 and 529 (MCL 436.1525 and 436.1529),
section 525 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. The sworn affidavit 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).
(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 on a
quarterly basis 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 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,
521a, 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)
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).
(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.
Sec. 529. (1) A license or an interest in a license shall not
be transferred from 1 person to another without the prior approval
of the commission. For purposes of this section, the transfer in
the aggregate to another person during any single licensing year of
more than 10% of the outstanding stock of a licensed corporation or
more than 10% of the total interest in a licensed limited
partnership
shall be is considered to be a transfer requiring the
prior approval of the commission.
(2) Not later than July 1 of each year, each privately held
licensed corporation and each licensed limited partnership shall
notify the commission as to whether any of the shares of stock in
the corporation, or interest in the limited partnership, have been
transferred during the preceding licensing year. The commission may
investigate the transfer of any number of shares of stock in a
licensed corporation, or any amount of interest in a licensed
limited partnership, for the purpose of ensuring compliance with
this act and the rules promulgated under this act.
(3) Except as otherwise provided in subdivisions (a) through
(f), upon approval by the commission of a transfer subject to
subsection
(1), there shall be paid to the
applicant or licensee
shall pay the commission a transfer fee equal to the fee provided
in this act for the class of license being transferred. A transfer
fee
shall not be prorated on a
quarterly basis for a portion of the
effective period of the license. If a person holding more than 1
license or more than 1 interest in a license at more than 1
location, but in the name of a single legal entity, transfers all
of the licenses or interests in licenses simultaneously to another
single legal entity, the transfers shall be considered 1 transfer
for purposes of determining a transfer fee, payable in an amount
equal to the highest license fee provided in this act for any of
the licenses, or interests in licenses, being transferred. A
transfer fee shall not be required in regard to any of the
following:
(a) The transfer, in the aggregate, of less than 50% of the
outstanding shares of stock in a licensed corporation or less than
50% of the total interest in a licensed limited partnership during
any licensing year.
(b) The exchange of the assets of a licensed sole
proprietorship, licensed general partnership, or licensed limited
partnership for all outstanding shares of stock in a corporation in
which either the sole proprietor, all members of the general
partnership, or all members of the limited partnership are the only
stockholders of that corporation. An exchange under this
subdivision shall not be considered an application for a license
for the purposes of section 501.
(c) The transfer of the interest in a licensed business of a
deceased licensee, a deceased stockholder, or a deceased member of
a general or limited partnership to the deceased person's spouse or
children.
(d) The removal of a member of a firm, a stockholder, a member
of a general partnership or limited partnership, or association of
licensees from a license.
(e) The addition to a license of the spouse, son, daughter, or
parent of any of the following:
(i) A licensed sole proprietor.
(ii) A stockholder in a licensed corporation.
(iii) A member of a licensed general partnership, licensed
limited partnership, or other licensed association.
(f) The occurrence of any of the following events:
(i) A corporate stock split of a licensed corporation.
(ii) The issuance to a stockholder of a licensed corporation of
previously unissued stock as compensation for services performed.
(iii) The redemption by a licensed corporation of its own stock.
(4) A nonrefundable inspection fee of $70.00 shall be paid to
the commission by an applicant or licensee at the time of filing
any of the following:
(a) An application for a new license or permit.
(b) A request for approval of a transfer of ownership or
location of a license.
(c) A request for approval to increase or decrease the size of
the licensed premises, or to add a bar.
(d) A request for approval of the transfer in any licensing
year of any of the shares of stock in a licensed corporation from 1
person to another, or any part of the total interest in a licensed
limited partnership from 1 person to another.
(5)
An inspection fee shall be returned to the person by whom
it
was paid who paid the fee if the purpose of the inspection was
to inspect the physical premises of the licensee, and the
inspection
was not actually conducted. An inspection fee shall not
be
is not required for any of the following:
(a) The issuance or transfer of a special license, salesperson
license, limited alcohol buyer license, corporate salesperson
license, hospital permit, military permit, or Sunday sale of
spirits permit.
(b) The issuance of a new permit, or the transfer of an
existing permit, if the permit is issued or transferred
simultaneously with the issuance or transfer of a license or an
interest in a license.
(c) The issuance of authorized but previously unissued
corporate stock to an existing stockholder of a licensed
corporation.
(d) The transfer from a corporation to an existing stockholder
of any of the corporation's stock that is owned by the corporation
itself.
(6) All inspection fees collected under this section shall be
deposited in the special fund in section 543 for carrying out of
the licensing and enforcement provisions of this act.
