[nFBMI-Talk] House Fiscal Agency Analysis of Senate Bill 803 and 804

[Mark Eagle]

CONCESSIONS AT STATE-OWNEDBUILDING: CREATE EXCEPTIONSSenate Bills 803 and 804 as passed by the SenateSponsor:  Sen. David HildenbrandHouse Committee:  Regulatory ReformSenate Committee:  Regulatory ReformComplete to 4-24-18SUMMARY:Senate Bill 803 would allow alcohol to be sold for on- or off-premises consumption in a state-owned building under certain conditions.Senate Bill 804 would exempt a state-owned or leased building meeting certain criteria from the requirement that concessions be operated by a blind person.As written, the bills would pertain only to Cadillac Place, a state-owned building in Detroit which houses several state offices. Specifically, the bills would do the following:Senate Bill 803 would amend the Michigan Liquor Control Code. With a few exceptions, the Liquor Control Commission is prohibited under the Code’s provisions from issuing a liquor license to an establishment situated in or on state-owned land. The bill would create an additional exception for a building that meets all of the following conditions:·       The building and the land on which the building is located are owned by the state.·       The building is more than 1 million square feet.·       Space within the building is leased to a private entity that provides services to the general public in the building and that holds a liquor license.MCL 436.1519Senate Bill 804 would add a new section to Public Act 260 of 1978, the enabling act for the Commission for the Blind. With a few exceptions, the act requires a concession in a building or on property owned or occupied by the state to be operated by a blind person. The bill would add an additional exception for a building or part of a building owned or occupied by the state if the building is larger than 1 million square feet. Further, the Commission would have to exercise its authority under the act to provide for automated vending machine concessions in such a building, and the Department of Technology, Management, and Budget would have to provide 1,700 square feet of space to the Commission at the same annual rate that is provided to state agency tenants.The bill would take effect 90 days after being enacted.MCL 393.359 and 339.360aFISCAL IMPACT:Senate Bill 803 would not have a significant fiscal impact on any unit of state or local government. The bill would allow for the issuance of a retail liquor license to establishments that are located on state-owned land and that meet the criteria established by the bill (namely, the bill would allow for issuance of licenses at the Cadillac Place office complex in Detroit). Since such a small population of entities would be affected by the bill, it would have a negligible fiscal impact.  Senate Bill 804 would have no fiscal impact to the state or local units of government.                                                                                        Legislative Analyst:   Susan Stutzky                                                                                                Fiscal Analyst:   Marcus Coffin