Carlin, Edwards, Brown &Howe, PLLC
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MICHIGAN HOSPITALITY LAW NEWSLETTER
Fall 2010
In This Issue
MLCC Moves to Southfield
Online Spirit Ordering Update
Governor Vetos Early Sunday Sales & Catering Permit Legislation
New Rules for Gas Sations Proposed
Visit The CEBH Blog

MLCC Farmington District Office Moves to Southfield

 

On October 18, 2010, the Michigan Liquor Control Commission officially moved its southeast Michigan operations from Farmington to Southfield.  The new address for the Southfield District Office is 25680 W. 8 Mile Road, Southfield, MI 48033 (northeast corner of 8 Mile and Beech Daly).  The general number for this office is (313) 456-1170.

The MLCC will have the same operations at this district office as it had in Farmington.  Commission staff, assistant attorney generals, and the enforcement division assigned to the southeast Michigan region will work out of this office.  The MLCC has other district offices in Grand Rapids and Escanaba in addition its main office in Lansing.  All the best to the Southfield District Office staff during this transition.

Congratulations to our Clients on

Their

 License Transfers  & 
 Recent Openings

 

August - October 2010

 

@Burger

(Ann Arbor)

 

Lockhart's BBQ

(Royal Oak)

 

The Bearded Dogg Lounge

(Gaylord)

 

REO Town Pub

(Lansing)

 

Peppino's

(Grand Rapids)

 

Logan's Roadhouse

(Auburn Hills)

 

Fortessa

(Rochester Hills)

 

Tomukun Noodle Bar

(Ann Arbor)

 

Joshua James Grill N' Chill

(Newberry)

 

 
� Carlin, Edwards, Brown & Howe, PLLC 2010. 
 All rights reserved.
 This Newsletter provides general information and does not constitute legal advice in any way. 

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We  Keep You Informed in Times of Change

Welcome to the Michigan Restaurant Show Edition of the Michigan Hospitality Law Newsletter.   We invite you to join us at the 2010 Michigan Restaurant Show, which will be held at The Rock Financial Showplace in Novi, Michigan on October 19 & 20, 2010.  Our firm will be presenting The CEBH Michigan Hospitality Law Update Presentation at the Show.  We will update the industry on the latest rules, regulations, policies and procedures of the Michigan Liquor Control Commission, provide an update on pending legislation that will affect your business, and also provide insight as to what changes the new Governor and Attorney General may bring to the regulation of the hospitality industry in 2011.

 

As we enter the final stretch to close out 2010, we look forward to many new beginnings in 2011.  There will be significant turnover in the Michigan Legislature, and both gubernatorial candidates have promised regulatory reform to the alcoholic beverage industry.  Be assured that Carlin, Edwards, Brown & Howe, PLLC will be on top of the industry news that affects your business.  Stay tuned to our newsletter, periodic email updates, website and blog, to stay current on all of the changes that will be headed your way in 2011.


John B. Carlin, Jr.
Scott D. Edwards
Michael J. Brown
J. Patrick Howe

MLCC Extends Implementation Date for Mandatory Online Spirit Ordering System

 

At the MLCC Business Meeting held on October 5, 2010, Chairperson Nida Samona indicated the MLCC has reconsidered its proposed January 1, 2011 implementation date for mandatory on-line ordering.  Chairperson Samona stated that several licensees attending the MLCC's Town Hall meeting in Escanaba on September 27th expressed concerns with the original date.  One problem is that suppliers and technicians needed to install the necessary equipment may be difficult to schedule during the holiday season as January 1 approaches.  The second problem associated with the January 1 start date is that time of year is generally very busy for licensees.

 

Chairperson Samona also noted that many licensees, particularly in rural areas or the Upper Peninsula, may not have internet access readily available to them.  As a result of those discussions, the MLCC has decided to move the required implementation back to March 1, 2011.  The MLCC may also consider granting additional time beyond March 1 for licensees who have not ordered more than $10,000 worth of spirits in the last year, if the licensee can also demonstrate that on-line ordering will cause hardship to the business.

 

We have heard from many of our clients on the problems this mandatory on-line ordering may cause them.  We applaud the MLCC for listening to licensees at the Town Hall meeting and throughout this process.  As the internet becomes more reliable and widely available, mandatory on-line ordering is clearly the proper direction to take, but the MLCC should be congratulated for recognizing that January 1, 2011 is simply too soon to implement such a widespread change.

Governor Vetoes House Bill 6007:  Expresses Support for Early Sunday Sales, but Rejects Catering Permit and Other Legislation in Bill

 

On October 12, 2010, Governor Granholm vetoed House Bill 6007, which would have allowed licensees to obtain an Early Sunday Sales Permit to sell alcoholic beverages before noon on Sundays.  In her veto letter to the Michigan House of Representatives, Granholm stated: "I wholeheartedly support provisions of the bill that would expand options for consumers to purchase alcoholic beverages, including on Sundays and holidays."  However, she found the Bill to be problematic in three specific areas. 

 

 First, she feels that the creation of a catering permit to allow on-premise licensees to sell and deliver spirits to the host of a private off-site event, may expose the state to costly litigation.  She believes that allowing in-state licensees to deliver spirits without providing a means for similarly situated out of state licensees to deliver spirits to these same customers, may be a violation of the Commerce Clause of the US Constitution.  Second, she does not like the limited scope of the section that creates a new type of liquor license for certain community colleges.  Third, she feels that the proposed sample size for wine tastings of 9 oz. is simply too high, but she would support a lower sample size currently allowed in other states.  It is now up to the Governor to work with the Michigan Legislature during the lame duck session to redraft the Bill so that all parties are satisfied.  The other option is to wait to allow the new Governor and Legislature to revisit the Bill in 2011.  No matter which direction this legislation heads, we will be sure to track it, and will keep you informed every step of the way. 

House Bill Seeks to Ease Requirements for Gas Stations to Hold SDM or SDD Liquor Licenses
 
If you own a gas station and are considering adding an SDM (beer/wine take out) or SDD (packaged spirits takeout) license, but are concerned about the current restrictions on the mandatory inventory requirements, then you need to voice your support for Michigan House Bill 5851.  This Bill, introduced by Representative Steven Lindberg, a Marquette Democrat, seeks to significantly reduce the inventory requirements for gas stations holding SDM or SDD licenses.  

 

The Michigan Liquor Control Code currently provides that a gas station must own an inventory valued at $250,000 or more, not including motor vehicle fuel and other motor vehicle inventory items, in order to qualify for an SDM or SDD license.  Under the proposed Bill, the fuel and motor vehicle inventory can be included in the store's total inventory, and the qualification threshold would be reduced from a value of $250,000 to $50,000.  The Bill also seeks to eliminate the requirement that the gas pumps be located at least 50 ft. from the point of sale, which is either the place where alcoholic beverages are chosen by the customer or where they are paid for.  We will continue to track this legislation, and will keep you posted as to any new developments regarding the ability of gas stations to hold SDM or SDD licenses.   

CEBH Blog Provides Legal Updates, News & Events

 

CEBH Background 

Don't forget to check out the Carlin, Edwards, Brown & Howe, PLLC Blog to stay up to date on the latest changes in the law, changes in the MLCC processing and practice, and to get informed about industry news and events that will affect your business.  You can visit our blog at http://www.cebhlawblog.com/

Upcoming Industry Events

 

MRA PAC Event

October 21, 2010

Mission Table, Traverse City, Michigan

http://www.michiganrestaurant.org/cde.cfm?event=322905

 

24th Annual ULI-UM

UM/ULI Real Estate Forum

November 10-11, 2010

The Riverfront Center, Flint

http://detroit.uli.org/Events.aspx

   

MLCC Quarterly Meeting

December 1, 2010

Lansing Office

http://www.michigan.gov/dleg/0,1607,7-154-10570---,00.html

 

MRA Holiday Dinner

December 8, 2010

Meadow Brook Hall, Rochester, Michigan

http://www.michiganrestaurant.org/cde.cfm?event=309087