Analysis
Sponsor:Emerson
Topic:Liquor Control Act
Background
The Liquor Control Act permits the Liquor Control Commission to issue the governing body of a
college or university a license to sell alcoholic liquor for consumption on the premises. These
licenses are not subject to the regular quota restrictions in the act. It seems that every legislative
session a bill is introduced to clarify that certain specific college buildings and facilities are
conference centers within the meaning of the Liquor Control Act. As a result, the list of
buildings and facilities specifically mentioned in the act has grown.
Description of the Bill
The bill amends Section 17h of the Liquor Control Act to add three college facilities to the list of
conference centers in the act. These are the Superior Dome at Northern Michigan University, the
Marie Prahl College Center at Mott Community College and the Walker Cisler Center at Lake
Superior State University. The original bill would have added the Marie Prahl College Center.
The Senate added the Superior Dome. When the bill went back to the House the Walker Cisler
Center was added.
Arguments
Pro: Licenses to sell liquor for consumption on the premises are essential if these college and
university conference centers are to compete effectively for conference business. Unfortunately,
many of these college and university facilities do not qualify as conference centers under the
Liquor Control Act because they do not include overnight accomodations. The legislation is
good for these communities, because, in many instances, the college facilities are the only large
meeting and convention facilities available. The availability of these facilities has allowed these
communities to compete successfully for a share of the convention business which formerly went
to larger cities.
Con: Because the Legislature is adding new facilities to the list of conference centers so
frequently, it may be preferable to amend the definition of conference center to reflect the
changing economics of university meetings and conferences.
Issuing more liquor licenses to college and university convention facilities is unfair to hotels and
conference facilities in the private sector. Colleges and university facilities are tax-exempt,
which gives them a significant advantage when competing for convention business.