HB 5117

HOUSE BILL NO. 5117
A bill to amend 1998 PA 58, entitled
"Michigan liquor control code of 1998,"
by amending section 533 (MCL 436.1533), as amended by
2020 PA 308.
the people of the state of michigan enact:
Sec. 533. (1) Subject to subsection (12),
the commission shall not issue a new specially designated merchant license or
transfer an existing specially designated merchant license unless the applicant
is an approved type of business. An applicant is not an approved type of
business unless the applicant meets 1 or more of the following conditions:
(a) The applicant
holds and maintains a retail food establishment license issued under the food
law, 2000 PA 92, MCL 289.1101 to 289.8111. As used in this subdivision,
"retail food establishment" means that term as defined in section
1111 of the food law, 2000 PA 92, MCL 289.1111.
(b) The applicant
holds and maintains an extended retail food establishment license issued under
the food law, 2000 PA 92, MCL 289.1101 to 289.8111. As used in this
subdivision, "extended retail food establishment" means that term as
defined in section 1107 of the food law, 2000 PA 92, MCL 289.1107.
(c) The applicant
holds or the commission approves the issuance of a specially designated
distributor license to the applicant.
(d) The applicant
holds or the commission approves the issuance of a class C license to the
applicant.
(e) The applicant
holds or the commission approves the issuance of a class A hotel license to the
applicant.
(f) The applicant
holds or the commission approves the issuance of a class B hotel license to the
applicant.
(g) The applicant
holds or the commission approves the issuance of a club license to the
applicant.
(h) The applicant
holds or the commission approves the issuance of a tavern license to the
applicant.
(i) The applicant
holds or the commission approves the issuance of a class G-1 license to the
applicant.
(j) The applicant
holds or the commission approves the issuance of a class G-2 license to the
applicant.
(2) A specially
designated distributor may apply for a license as a specially designated
merchant.
(3) A specially
designated distributor license issued under subsection (4) or section 531(5)
may be held in conjunction with any of the following licenses:
(a) A specially
designated merchant license.
(b) Subject to
subsection (13), a class B hotel license.
(c) Subject to
subsection (13), a class C license.
(d) Subject to
subsection (13), a combination of licenses in subdivisions (a) and (b) or (a)
and (c).
(4) In Except as otherwise
provided in this section, in cities, incorporated villages, or
townships, the commission shall issue only 1 specially designated distributor
license for each 3,000 of population, or fraction of 3,000. The commission may
waive the quota requirement under this subsection if there is no existing
specially designated distributor licensee within 2 miles of the applicant,
measured along the nearest traffic route. The quota
under this subsection does not apply to an applicant for or the holder of a
specially designated distributor license that meets all of the following
conditions:
(a) The licensed establishment has at least 25,000 square feet of sales
floor area.
(b) The licensed establishment offers for sale to the public all of the
following products:
(i) Unprocessed
meat and poultry products inspected by the United States Department of
Agriculture or that carry the United States Department of Agriculture organic
seal.
(ii) Fresh fruit.
(iii) Fresh
vegetables.
(iv) Dairy products.
(c) At least 25% of the retail sales floor area of the licensed
establishment is allocated to the sale of the products in subdivision (b).
(5) Except as
otherwise provided in this section, in cities, incorporated villages, or
townships, the commission shall issue only 1 specially designated merchant
license for each 1,000 of population, or fraction of 1,000. The quota under
this subsection does not apply to any of the following:
(a) An applicant
for a specially designated merchant license that is an applicant for or the
holder of a license listed in subsection (1)(d) to (j).
(b) An applicant
for or the holder of a specially designated merchant license whose licensed
establishment meets 1 or more of the following conditions:
(i) Meets both of the following conditions:
(A) The licensed
establishment is at least 20,000 square feet.
(B) The licensed
establishment's gross receipts derived from the sale of food are at least 20%
of the total gross receipts.
(ii) The licensed establishment is also a
pharmacy as that term is defined in section 17707 of the public health code,
1978 PA 368, MCL 333.17707.
(c) A secondary
location permit issued to a specially designated merchant under section 541.
(d) A specially
designated merchant license issued under subsection (7).
(e) A specially
designated merchant license issued to a marina under section 539.
(6) The commission
may waive the quota under subsection (5) if there is no existing specially
designated merchant within 2 miles of the applicant, measured along the nearest
traffic route.
(7) The commission
shall waive the quota under subsection (5) if both of the following apply:
(a) The applicant
applies for the specially designated merchant license within 60 days after
January 4, 2017.
(b) The applicant
is a retail dealer that holds a license issued under section 6(1) of the motor
fuels quality act, 1984 PA 44, MCL 290.646. The applicant shall include a copy
of the license described in this subdivision with the applicant's application under
this subsection. As used in this subdivision, "retail dealer" means
that term as defined in section 2 of the motor fuels quality act, 1984 PA 44,
MCL 290.642.
(8) A specially
designated merchant license issued under this section may be transferred to an
applicant whose proposed operation is located within any local governmental
unit in a county in which the specially designated merchant license was
located. If the local governmental unit within which the former licensee's
premises were located spans more than 1 county, a specially designated merchant
license may be transferred to an applicant whose proposed operation is located
within any local governmental unit in either county. If a specially designated
merchant license is transferred to a local governmental unit other than that
local governmental unit within which the specially designated merchant license
was originally issued, the commission shall count that transferred specially
designated merchant license against the local governmental unit originally
issuing the specially designated merchant license.
(9) Except as
otherwise provided in subsection (10), the quota under subsection (5) does not
bar the right of an existing specially designated merchant to renew the
specially designated merchant license or transfer the specially designated
merchant license. This subsection applies to a specially designated merchant
license issued or renewed before, on, or after January 4, 2017.
(10) A specially
designated merchant license issued after January 4, 2017 to a person described
in subsection (5)(a) or (b) or to a specially designated merchant license
issued under subsection (6) may not be transferred to another location.
(11) An applicant
for or the holder of a specially designated merchant license that owns or
operates a motor vehicle fuel pump on or adjacent to the licensed premises is
not required to meet the conditions under section 541 as that section existed
before January 4, 2017.
(12) For a marina
that maintains motor vehicle fuel pumps on or adjacent to the licensed
premises, or maintains a financial interest in any motor vehicle fuel pumps,
the commission may only issue a special designated merchant license to the
marina under section 539.
(13) License fees
for a specially designated distributor license held in conjunction with a class
B hotel license or a class C license as described in subsection (3) must be
calculated under section 525(1)(k) based on the total retail value of
merchandise purchased from the commission under the specially designated
distributor license during the previous calendar year plus the total retail
value of the merchandise purchased from the commission under either the class B
hotel license or the class C license.
(14) A specially designated distributor license issued to a person
described in subsection (4)(a) to (c) must not be transferred to another
location.
(15) (14) For
purposes of this section, population is determined by the latest federal
decennial census, by a special census under section 6 of the home rule city
act, 1909 PA 279, MCL 117.6, or section 7 of the Glenn Steil state revenue
sharing act of 1971, 1971 PA 140, MCL 141.907, or by the latest census and
corrections published by the United States Department of Commerce, Bureau of
the Census, whichever is later.