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MLCC Proposes Off-Premise Server Training Program
You should be aware that the MLCC is in the process of developing regulations for server training for off-premise licensees similar to the on-premise licensee requirements. The proposed rules provide that training programs must be approved by the Commission, and require all off-premise licensees to have a certified manager or employee on the premises during all hours in which alcoholic beverages are sold. Server training for a manager or employee will be valid for a period of three (3) years under the proposed rules. The rules also provide that an off-premise licensee may have an approved trainer on staff to train and certify its managers and employees. The Commission will be scheduling this proposed rule for a Public Hearing in October. Stay tuned to future newsletters for an exact time and place of the hearing. |
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MLCC Fees May Substantially Increase Next Year
House Bill 5056, which is now in committee review, calls for a substantial increase in the annual fees of practically all licenses and permits issued by the MLCC. Here is a sampling of the proposed increases:
Class C License:
$600.00 to $1,200.00
B-Hotel License:
$600.00/ $2.00 per room
to
$1,200.00/$6.00 per room
Add Bar Permit:
$350.00 to $700.00
SDM License:
$100.00 to $200.00
SDD License:
$150.00 to $300.00
Although the annual license fees have not been increased for over forty years, the battle is on over this Amendment. The Michigan Restaurant Association and the Michigan Licensed Beverage Association oppose these increases. Given the economic climate in our state, we encourage you to contact your state representatives to voice your opposition. |
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Congratulations to our Clients on Their Recent
Openings
May - August 2009
Rosie O' Grady's
(Ferndale)
Woodhaven Cinemas
(Woodhaven)
Springhill Suites
by Marriott
(Romulus)
Off Center at 8
(Douglas)
Twin Birch Golf Course
(Kalkaska Twp.)
Brentwood Golf Club
(White Lake Twp.)
Plum Market
(West Bloomfield)
Hiller's Market
(Union Lake)
No. VI Chop House
(Novi)
Caf� Via
(Birmingham)
Prestwick Village Golf Club
(Highland Twp.)
Delaware North Companies
(DTW North Terminal)
CAVA
(Petoskey)
The Bar
(Milford)
Rivertown Party Store
(Grayling)
Pat & Buds Grocery
(Elmira)
Rite Aid Pharmacy
(Washington Twp.)
(Macomb Twp.)
Shepherd IGA
(Shepherd)
Cambria Suites Hotel
(Traverse City)
Harvey's Bar and Grill
(Saginaw Twp.)
Los Tres Amigos
(Mason) | |
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Cheers to our Clients as CEBH Celebrates
Its 3rd Anniversary  The 3rd anniversary of the formation of Carlin, Edwards, Brown & Howe, PLLC passed on August 1, 2009, and we would like to take a moment to thank our Clients for all that you do for us. Whether it be helping you open your first restaurant, assisting you with an ugly liquor violation, or resolving a business dispute; you make our jobs exciting on a daily basis, and we thank you for that. We are very fortunate to have such successful and loyal clients - especially in today's economic climate. We are committed to serving you, and will strive to be the preeminent hospitality law firm in the State of Michigan. To the past three years and many more to come - cheers! John B. Carlin, Jr. ( [email protected]) (248) 816-3210 Scott D. Edwards ( [email protected]) (248) 816-3205 Michael J. Brown ( [email protected]) (517) 321-4616 J. Patrick Howe ( [email protected]) (248) 816-3175 |
Don't be Fooled by New MLCC Sting Operation
It has come to our attention that the Michigan Liquor Control Commission has instituted a new type of "sting operation." The trap is as follows: Undercover MLCC investigators come into the on-premise licensed establishment, sit down at a table, and advise the server that they would like to order a glass of wine, but are unsure which wine to order. The server offers to bring them a taste of a wine that appeals to them in an attempt to help them choose which wine to order. The server th en provides a half-ounce or so of wine to the investigators, who then decide that they don't want to order any wine at all. The investigators then order non-alcoholic beverages and when the bill comes without a charge for the half-ounce of wine, they issue a violation for giving away alcoholic beverages for free.
As you well know, it is a violation of the rules and regulations of the Michigan Liquor Control Commission to provide any alcoholic beverages to a customer without charging at least the cost paid by the licensee for the alcohol served. To avoid being caught by this sting operation, and to avoid future liquor violations, it is our recommendation that all on-premise licensees establish a policy, and advise their servers that when they offer to provide a guest a taste of wine (or any alcoholic beverage for that matter) that they also advise the guest that there will be a small charge for the wine (to cover the licensee's cost) if they decide not to order any. |
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Legislative Update: On-Premise License Catering Permit 
SB 0186 which was passed by the Senate on May 20, 2009, and is currently being reviewed by the House Committee on Regulatory Reform, would create a Catering Permit to be held by On-Premise Licensees. The Permit would allow an On-Premise Licensee to sell spirits from their existing spirit inventory for off-premise consumption at catered events. Under the current rules and regulations of the Michigan Liquor Control Commission, there is no mechanism for an On-Premise Licensee to sell spirits from their inventory for off-premise consumption. An On-Premise Licensee that also holds an SDM license can however sell beer and wine for off premise consumption at private catered events. However, the sale of beer and wine must be directly to the host of the private event, who then in turn provides the beer and wine to the guests of the event for no consideration. This procedure would have to be followed under the proposed Catering Permit rules. The On-Premises Licensee cannot sell alcoholic beverages directly to the guests of the event, as such sales would be conducted off the licensed premises in violation of the MLCC rules and regulations. The proposed rules also require the Licensee to actually serve (not just sell) the spirits, and the Licensee must also serve food at the event.
Because the catering permit only allows an On-Premise Licensee to sell spirits from its existing beverage inventory, we highly recommend that all On-Premise Licensees that provide off-premise catering services immediately apply for an SDM liquor license to allow the sale of beer and wine for off-premise consumption at a private catered event held off the licensed premises. Only a licensee with an SDM liquor license, an On-Premise liquor license and a Catering Permit will be able to provide full service catering operations.
With the exception of a Development District Liquor License authorized under MCL 436.1521, all On-Premise Licensees are eligible to obtain an SDM liquor license so long as they meet the MLCC requirements pertaining to SDM liquor licenses (which includes obtaining the approval of the Police Department with jurisdiction over their establishment). As far as we know, the only community that prohibits an On-Premise Licensee from holding an SDM liquor license is the City of Livonia. We are in discussion with Livonia officials to see if they are willing to revise their Ordinance so that On-Premise Licensees in Livonia are not at a disadvantage in providing catering services. Stay tuned to future editions of the Michigan Hospitality Law Newsletter for updates regarding this Bill.
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"Good Cause" Standard for Expired Escrow Licenses Approved by SOAHR;
Public Hearing Set for October
On July 17, 2009, the Michigan State Office of Administrative Hearings and Rules (SOAHR) approved an amendment to Rule R436.1107(2) of the Michigan Liquor Control Commission Administrative Rules, which allows a licensee to renew an escrowed license beyond the five year limitation upon a showing of "good cause" to the Commission. The amendment states: "The commission may extend the length of time for which a licensee may renew the license upon written order of the commission after a showing of good cause." This amendment will be discussed at a Public Hearing which will likely take place in October. Stay tuned to future newsletters for an exact time and place of the hearing. If your escrowed license expired on April 30, 2009, or is set to expire next April, there are certain steps that you must take to preserve your rights under the proposed "good cause" standard. We encourage you to call us to discuss your scenario, as the "good cause" standard is certainly not a bright line test - the individual facts of your situation will truly determine whether you will be able to preserve the rights to your escrowed license. |
Do You Have a Certified Manager on Staff?
On June 30, 2009 an amendment to the Michigan Food Act of 2000 became effective which calls for the following food establishments to employ a minimum of one (1) managerial employee who is certified under a "personal certification program accredited by the American national standards institute, utilizing the conference for food protection standards":
(a) A food service establishment that is not any of the following:
(i) A mobile food establishment.
(ii) Operating under a temporary food service establishment license.
(iii) A special transitory food unit.
(iv) A vending machine location.
(b) An extended retail food establishment.
(c) The operation of a food service establishment within a retail grocery.
A "Food service establishment" means a fixed or mobile restaurant, coffee shop, cafeteria, short order cafe, luncheonette, grill, tearoom, sandwich shop, soda fountain, tavern, bar, cocktail lounge, nightclub, drive-in, industrial feeding establishment, private organization serving the public, rental hall, catering kitchen, delicatessen, theater, commissary, food concession, or similar place in which food or drink is prepared for direct consumption through service on the premises or elsewhere, and any other eating or drinking establishment or operation where food is served or provided for the public.
A Food service establishment does not include any of the following:
(i) A motel that serves continental breakfasts only.
(ii) A bed and breakfast that has 10 or fewer sleeping rooms, including sleeping rooms occupied by the innkeeper, 1 or more of which are available for rent to transient tenants.
(iii) A bed and breakfast that has at least 11 but fewer than 15 rooms for rent, if the bed and breakfast serves continental breakfasts only.
(iv) A child care organization regulated under 1973 PA 116, MCL 722.111 to 722.128, unless the establishment is
carrying out an operation considered by the director to be a food service establishment.
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Urban Land Institute/University of Michigan Real Estate Forum
University of Michigan League
November 11-12, 2009
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