SB 0216 of 2013: A Bill to Implement the Recommendations of the Advisory Rules Committee

Posted on February 22, 2013

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**This post has been superceded by a more recent post containing all of the same information, as well as further analysis.

If you have been following this blog, you know that we were fairly excited with many of the recommendations made by the Advisory Rules Committee.  Now, many months later, the Michigan Senate has proposed a bill that would implement many of those recommendations.  You can find Senate Bill 0216 of 2013 here.  Remember, this is simply a proposed bill.  While it may never become law, we are excited to see that the state legislature is taking the ARC recommendations seriously.

We hope to provide a more thorough analysis of this bill within the next few days; until then, here are a few of the important points that we caught:

  • Modifications to the Gas Pump Rule
    • The bill reduces the inventory requirement from $250,000 to $50,000, where applicable.  The bill would also eliminate the requirement that the point of selection & sale be at least 50ft from the nearest gas pump. (Sec 541).
  • Creation of a conditional liquor license
    • The conditional liquor license would be available in situations involving a transfer of an existing license for use at the same location, or the issuance of a new license (other than an SDD or on-premise license).  If such a license was requested, the Commission would have twenty days to decide whether or not to issue the conditional license. (Sec. 525(5))
  • Cross-County Transfer of On-Premise Licenses
    • The bill would permit the transfer of an escrowed Class C license from one county to a contiguous county.  The transfer fee would be $10,000 for a cross-county transfer.  (531(1))
  • Creation of a Farmer’s Market Permit
    • This permit would allow a small winemaker to conduct tastings and sales of their wine at a farmer’s market (Sec. 415)
  • Issuance of Redevelopment Class C licenses to all municipalities
    • This expands the existing language of Sec. 521a, which restricts redevelopment licenses to cities, to include both villages and townships
  • Limitation on Local Government application fees
    • The bill would limit local government license application fees to a sum that was no greater than MLCC’s fee for the same license (Sec. 525(10))
  • Creation of a New Resort License
    • The bill creates a new class of Resort License.  Forty of these licenses would be available each year.  The applicant would be required to make a $500,000 capital investment in the real estate, buildings, fixtures, and inventory.  (Sec. 531(4))
  • Creation of the “Small Brewer” License
    • The bill eliminates the microbrewer’s license and the brewpub license and replaces them with a single “Small Brewer” license.  This license would permit the manufacturing of less than 30,000 barrels of beer per year.  The license could also be held in conjunction with an on-premise license.  (Sec. 603(11))
  • Permitting Retail Charge Accounts
    • The bill would permit sales of alcohol on credit, through a “customer’s charge account with a retail licensee.”

This is just a small number of the changes proposed.  Stay tuned for a more thorough analysis in the near future.

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*This information and thoughts herein are provided by the Liquor Lawyers at Stariha & Brower, PLC.  As always, we remind readers that the materials on this site are provided purely for informational purposes and are not legal advice. These materials are intended, but not promised or guaranteed, to be correct, complete, and current. This blog is not intended to be a source of legal advice. Therefore, the reader should not consider this information an invitation for an attorney-client relationship. Readers should always seek the advice of competent counsel.

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