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House Bill 4520

Contact:  Office of Policy and Legislative Affairs
Agency: Energy, Labor & Economic Growth


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.

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