Legislative Analysis
Phone: (517) 373-8080
ALLOW LIQUOR LICENSES FOR PUBLIC UNIVERSITIES
http://www.house.mi.gov/hfa
Senate Bill 247 (H-1) as adopted Analysis available at
Sponsor: Sen. Sean McCann http://www.legislature.mi.gov
House Committee: Regulatory Reform
Senate Committee: Regulatory Affairs
Complete to 6-26-23
(Enacted as Public Act 96 of 2023)
SUMMARY:
Senate Bill 247 would amend the Liquor Control Code to allow the Liquor Control
Commission (MLCC) to grant licenses to sell alcohol for on-premises consumption to the
governing board of a public university if certain conditions are met.
With the approval of the university’s governing board, MLCC could issue to a public university
up to five on-premises liquor licenses (tavern licenses or class C licenses or a combination of
both). The licenses would not be subject to the code’s limit of one license for on-premises
consumption per 1,500 population. The licenses would be nontransferrable and could be used
only for scheduled events in the public area of a facility on university property that is
customarily used for intercollegiate athletic events if all of the following conditions are met:
• The MLCC issues a separate license for each facility on university property that is
customarily used for intercollegiate athletic events.
• The sales and service of alcoholic liquor are conducted only at fixed locations within
the licensed premises.
• The licensee provides a list in writing to the MLCC containing the dates and times of
events for which each license will be used at least two weeks before the start of the
events, subject to the following:
o The licenses must not be used for more than 100 days per calendar year in
aggregate for all licenses combined for intercollegiate athletic scheduled
events.
o The licenses must not be used for more than five days per calendar year in
aggregate for all other scheduled events.
• Subject to other provisions of the code governing hours when alcohol can be sold, the
sales and service of alcoholic liquor are limited to one hour before the event and while
the event is occurring. Consumption of alcoholic liquor would be limited to one hour
before the event, during the event, and 30 minutes after the event has ended.
• The sales and service of alcoholic liquor conducted under the licenses are conducted
by individuals who have successfully completed a server training program as provided
under the code and who are not volunteers for an organization working during an event
as part of a fundraising activity for the organization.
• Dispensing machines are prohibited on the premises.
The holder of a special license issued by the MLCC could sell and serve alcoholic liquor on
the premises of a license under the bill on dates and times other than those provided to the
House Fiscal Agency Page 1 of 4
 MLCC as described above. 1 In addition, a licensee that has been issued a catering permit under
section 547 of the code could deliver and serve alcoholic liquor at a private event on the
premises a university holding a license under the bill on dates and times other than those
provided to the MLCC as described above. 2 [Note: As written, it appears that the dates on
which alcohol is sold, delivered, or served as described in this paragraph would not count
against the 100-day/five-day limits described above.]
For a class C license issued under the bill, the MLCC would be allowed to approve additional
bars as allowed by section 525(1)(o) of the code. 3
The MLCC also could issue only the following permits, permissions, or approvals to be held
in conjunction with either a tavern or class C license issued under the bill:
• Dance permit.
• Direct connection.
• Entertainment permit.
• Extended hours permit.
• Off-premises storage.
• Participation permit.
• Specific purpose permit.
• Sunday sales permit.
Finally, the MLCC could not approve an outdoor service area under R 436.1419 the Michigan
Administrative Code 4 for a license issued under the bill. The outdoor portion of an outdoor
facility on university property that is customarily used for intercollegiate athletic events would
not be considered an outdoor service area.
MCL 436.1531
BACKGROUND:
A tavern license allows the licensee to sell and serve beer, wine, and mixed spirit drink to
customers for consumption on the licensed premises. A class C license allows the licensee to
sell and serve beer, wine, mixed spirit drink, and spirits for on-premises consumption. 5 A
mixed spirit drink is a drink that contains up to 10% alcohol by volume consisting of spirits
mixed with nonalcoholic beverages or flavoring or coloring materials and that also may contain
water, fruit juices or adjuncts, sugar, carbon dioxide, or preservatives. A mixed spirit drink can
contain up to 13.5% alcohol by volume if it is packaged in a metal can meeting certain
conditions. 6 Spirits are alcohol created by distillation (whiskey, rum, vodka, tequila, gin, etc.)
1
A special license is a contract between the MLCC and a nonprofit organization that allows the sale of beer, wine,
mixed spirit drink, or spirits for consumption on the premises, with profits going to the organization. A special license
is good for one day. An approved organization can obtain up to 12 licenses per year.
2
http://legislature.mi.gov/doc.aspx?mcl-436-1547 (Private event means an event where no consideration is paid by
the guests.)
3
http://legislature.mi.gov/doc.aspx?mcl-436-1525
4
https://ars.apps.lara.state.mi.us/AdminCode/DownloadAdminCodeFile?FileName=999_2012-
006LR_AdminCode.pdf&ReturnHTML=True
5
https://www.michigan.gov/-/media/Project/Websites/lara/lcc/Folder18/licensetypes.pdf
6
http://legislature.mi.gov/doc.aspx?mcl-436-1109
House Fiscal Agency SB 247 (H-1) as adopted by the House Page 2 of 4
BRIEF DISCUSSION:
According to committee testimony, the bill would bring Michigan in line with many other
states after the National Collegiate Athletics Association (NCAA) began allowing alcohol sales
at college athletic events in 2019. Supporters of the bill testified that Michigan State University
and the University of Michigan are two of only three Big Ten schools that do not sell alcohol
inside of athletic stadiums (the third is Nebraska).
Supporters of the bill also argued that it could lead to a reduction in binge drinking before
games, since attendees would be able to count on getting a drink at the event, and said that
other states that have enacted similar legislation have seen a decrease in alcohol-related
incidents at college sporting events.
FISCAL IMPACT:
Senate Bill 247 would have a potentially significant fiscal impact on the state, specifically on
the Michigan Liquor Control Commission and the various state funds that receive revenues
associated with alcoholic beverage sales.
The bill would allow the MLCC to issue up to five class C licenses, five tavern licenses, or a
combination of class C and tavern licenses, for a total of up to five liquor licenses to the
governing board of a public university, for use at scheduled events within facilities customarily
used for intercollegiate athletic events. There are 15 public universities in the state, so the total
number of licenses that would be issued under this bill would depend on demand from
university governing boards and the number of athletic facilities that are located on the
campuses. While revenue from these licenses would be minimal in proportion to the total
population of licenses, the initial and annual renewal fee for a tavern license is $250 and the
initial and renewal fee for a class C licensee is $600. Revenue from these fees is distributed in
accordance with state statute, with 55% dedicated to local (and in some instances county) law
enforcement for enforcing the Liquor Control Code and associated rules, 41.5% dedicated to
the MLCC for licensing and enforcement under the Liquor Control Code, and 3.5% credited
for alcoholism treatment and prevention programming.
The impact of the bill on tax revenue and liquor sales is indeterminate, and would largely
depend on whether on-site liquor sales at athletic events increases total liquor sales (both before
and during events) or whether consumers shift their behavior to consume during events rather
than before or after events. Generally, it is anticipated that any impact on alcohol and sales tax
revenue would be relatively small when compared to the magnitude of overall alcohol sales in
the state.
The bill may also increase revenue for public universities that obtain liquor licenses under this
bill, as the universities would retain profits generated from liquor sales. The magnitude of this
impact would be indeterminate and would largely depend on the volume of sales at the licensed
locations.
POSITIONS:
A representative of the Michigan State University Department of Public Safety testified in
support of the bill. (6-20-23)
House Fiscal Agency SB 247 (H-1) as adopted by the House Page 3 of 4
 The following entities indicated support for the bill (6-20-23):
• Michigan Liquor Control Commission
• Western Michigan University
• Eastern Michigan University
• Oakland University
• Michigan Licensed Beverage Association
• Michigan Restaurant & Lodging Association
Michigan Alcohol Policy Promoting Health & Safety indicated opposition to the bill.
(6-20-23)
Legislative Analyst: Alex Stegbauer
Fiscal Analyst: Marcus Coffin
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
House Fiscal Agency SB 247 (H-1) as adopted by the House Page 4 of 4


Statutes affected:
Substitute (S-2): 436.1531
Substitute (H-1): 436.1531
Senate Introduced Bill: 436.1531
As Passed by the Senate: 436.1531
As Passed by the House: 436.1531
Senate Concurred Bill: 436.1531
Public Act: 436.1531
Senate Enrolled Bill: 436.1531