Carlin Edwards Brown PLLC
Attorneys & Counselors at Law
 

MICHIGAN HOSPITALITY LAW NEWSLETTER

Holiday Edition 

December 2013

In This Issue
Legislative Update
Declaratory Ruling
Holiday Alcohol Sales Hours
ADA Holiday Delivery Schedule

MLCC Holiday Hours

All MLCC offices (and all other State of Michigan offices) will be closed December 24 - 25 and December 31 - January 1.


  Congratulations to

our Clients

 on their

License Transfers

&

Recent Openings


 

 Smoke Street Barbecue

(Milford)

 

Dave & Buster's

(Livonia) 

 

NJ Ecorse Mart

(Taylor)

 

Carrabba's Italian Grill

(Troy)

 

Bonefish Grill

(Troy)

 

Dollar General

(Multiple Locations)

 

Marriott Residence Inn

(Kentwood)

 

Luzerne Hotel

(Luzerne)

 

Los Tres Amigos

(Farmington)

 

Kalamazoo Wine

(Kalamazoo)

 

Baker College

(Port Huron)

 

Stray Cat Lounge

(Clinton Township) 

 


 Upcoming Industry Events  


MLBA Legislative Retreat

February 3, 2014

Mt. Pleasant, MI

www.mlba.org 

 

 MLBA Board Meeting

February 4, 2014

Mt. Pleasant, MI

www.mlba.org 

  

2013 Michigan Grape & Wine Conference

February 26-28, 2014

Grand Traverse Resort

Acme, MI

  


 

  

Join Our Mailing List

 


 

 


  Carlin Edwards Brown PLLC 2013.

  All rights reserved. 

 

This newsletter provides general information and does not constitute legal advice in any way. 


 


 Find industry updates on our website and blog

www.cebhlaw.com


   


Carlin Edwards Brown PLLC


 

John B. Carlin, Jr.

 (248) 816-3210

jcarlin@cebhlaw.com

 

Scott D. Edwards

 (248) 816-3205

sedwards@cebhlaw.com

 

Michael J. Brown

 (517) 321-4616

mbrown@cebhlaw.com

 

Rick Perkins

(517) 321-4623

rperkins@cebhlaw.com

 


 

 

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We want to take this opportunity to thank all of our clients and the staff of the Michigan Liquor Control Commission for a wonderful year. We look forward to serving our clients for many years to come and we will continue to provide the resources needed for Michigan liquor license holders to achieve success in this highly-regulated industry.

Legislative Update

  

SDD Intracounty Transfer - On December 12, 2013,  HB 5140 cleared both chambers of the legislature and is awaiting Gov. Snyder's signature. (If signed into law,  as expected shortly, SDD licenses could transfer location anywhere within the county where the SDD license was originally issued.) No local approval is required but the '1/2 mile Rule' under R 436.1133 would be applicable to the new location. Also, the number of SDD Resort licenses available for the MLCC to issue annually would increase from 10 to 15 beginning in 2014. This law, if signed, would be effective 90 days after filing with the Secretary of State. This law could have a major impact on SDM licensees looking to expand their business with SDD licenses in areas that are at or over their quota as it greatly expands the pool of available SDD licenses in many cities and townships. Don't hesitate to contact Carlin Edwards Brown to research SDD license availability for your location and assist you in securing an SDD license.

 

BYO Wine - HB 5046 also successfully passed through the legislative process on December 12, 2013 and is awaiting Gov. Snyder's signature. This law allows customers of an on-premises licensee to bring a sealed bottle of wine into the establishment for consumption on the premises. The allowance by the licensee is completely optional and the licensee may charge a corkage fee if so desired.

 

Conditional License - HB 5488 received final passage from the legislature on December 12, 2013 and is on its way to Gov. Snyder for his signature, hopefully. This bill creates a temporary "conditional license" allowing the applicant to operate the business while the MLCC investigation is ongoing. However, this important piece of legislation is tie-barred to numerous other bills, including a hotly disputed bill involving "secondary use" advertising, so a final outcome will not be resolved until 2014, if at all.

 

In addition to the three bills noted above, our 2013 Fall Newsletter summarized several other bills involving the alcoholic beverage industry. Many of these bills also saw additional action in the last month but, like the Conditional License bill mentioned above, many of them are tie-barred. Unfortunately, the tie-bar status may hinder further movement on many of the other liquor bills due to the contentious nature of SB 505 which proposes to prohibit any expansion of Michigan's already extremely restricted use of secondary value advertising items. The Senate's insistence of tie-barring numerous bills, including SB 505, makes final passage of the entire package of bills uncertain at this point in time. Below is a brief description of other recent legislative activity. 

  • Brewers/Micro Brewers/Brewpubs Expansion (HB 4709, HB 4710, HB 4711) - Provides for the expansion of production limits and/or location outlets for Brewpubs, Micro Brewers & Brewers.   This series of bills all easily passed the House and are awaiting action in the Senate. While currently stand alone bills, based on recent legislative manipulation of other liquor bills, these may also end up tie-barred to other outstanding liquor bills.

  • Micro Brewer Self Distribution (SB 650) - Allows Micro Brewers limited self-distribution to retail licensees. Passed Senate and now awaiting action in the House. This bill is already tie-barred to other liquor bills.

  • Secondary Use Items (SB 505) - Prohibits expanding the use of brand logoed merchandise by retail licensees. However, the use of brand logoed glassware by on-premises licensees would be allowed if purchased from a third party. Tie-barred to numerous other pending liquor bills and is by far the most contentious of the tie-barred bills. Passed Senate and awaiting action in the House. 

  • Secondary Use Items (SB 462) - Prohibits the MLCC from restricting the use of brand-logoed merchandise in on-premises establishments (the anti-SB 505). Introduced 8/27/13 and referred to Senate Committee on Regulatory Reform with no further action taken to date.

 

 MLCC Declaratory Ruling - Rule 436.1133 

        (1/2 Mile Rule) Holly Foods, Inc.

 

Declaratory Ruling Request

Holly Foods, Inc. ("Holly Foods") requested a Declaratory Ruling from the MLCC under the provisions of MCL 24.263 and Administrative Rule 436.1971. Holly Foods operates a grocery store with an SDM license allowing the sale of beer & wine for off-premises consumption and had applied for an SDD license to expand their business to include packaged liquor. The SDD application was denied by the MLCC due to the fact that Holly Foods was located within 2,640 feet (1/2 mile) from an existing SDD, contrary to MLCC Administrative Rule 436.1133. Holly Foods requested a Declaratory Ruling asking MLCC to declare that Rule 436.1133 is not valid because it discriminates against Holly Foods in favor of other licensees, that the rule exceeds the MLCC's rule-making authority, and that the rule was rescinded by operation of law when the code was adopted.

 

Ruling

On December 17, 2013, the MLCC concluded that "Administrative Rule 436.1133 was properly promulgated, is a licensing qualification that applies uniformly to all applicants for new SDD licenses, and was not rescinded by operation of law when the Code was adopted by the Legislature."

 

Therefore, Rule 436.1133 ( mile rule) remains in effect. Although Holly Foods is not our client, and we are not actively engaged in this matter, we will continue to monitor this case because of the important issue raised by Holly Foods. We anticipate a court challenge to the Commission's ruling and will keep you posted on any future developments.

Holiday Alcohol Sales Hours
Christmas: 
  • On-Premises Licensees - Christmas Day sales of alcoholic beverages are now legal after 12:00 Noon on Christmas Day until 2:00 AM.  Christmas Eve sales/consumption must cease at 11:59 PM.  On-premises establishments can legally remain open until 2:00 AM; however, no sale or consumption of alcoholic beverages may occur after 11:59 PM on December 24 until 12:00 Noon on December 25. 
  • Off-Premises Licensees - Establishments can remain open all hours for business; however, no sales of alcoholic beverages are allowed between 11:59 PM and 12:00 Noon on Christmas Day.  

*Local governmental units may by ordinance prohibit the sale of alcoholic beverages on Christmas or any other legal holiday. Please check with us to see if your local jurisdiction has enacted such an ordinance.

 
New Year's Eve/Day:
  • On-Premises Licensees - Sales hours extended until 4:00 AM.  Do not sell alcohol beverages between 4:00 AM and 7:00 AM on New Year's Day. Consumption must cease by 4:30 AM and premises must be cleared by 4:30 AM of all non-employees unless the on-premises licensee has been granted a Specific Permit authorizing the premises to be occupied beyond the legal business hours.
  • Off-Premises Licensees - Normal sales hours apply.  Do not sell alcoholic beverages between 2:00 AM and 7:00 AM on New Year's Day.  Premises may be open during these hours; however, no alcoholic beverages may be sold.  
ADA Holiday Delivery Schedule

General Wine & Liquor Co. (Great Lakes Wine & Spirits)

  Christmas:

  • No deliveries made Wednesday 12/25/13.
  • Regular Monday deliveries will be made the prior Saturday 12/21/13.
  • Regular Tuesday deliveries will be made Monday 12/23/13.
  • Regular Wednesday deliveries will be made on Tuesday 12/24/13.
  • Thursday-Friday deliveries will be made as normal.

New Year's Day:

  • No deliveries made Wednesday 1/1/14.
  • Regular Monday deliveries will be made the prior Saturday 12/28/13.
  • Regular Tuesday deliveries will be made Monday 12/30/13.
  • Regular Wednesday deliveries will be made on Tuesday 12/31/13.
  • Thursday-Friday deliveries will be made as normal. 

NWS Michigan, Inc.

Christmas:

  • No deliveries made Wednesday 12/25/13.
  • Regular Monday and Tuesday deliveries will be made on normal scheduled days, 12/23 and 12/24/13.
  • Regular Wednesday deliveries will be made on Thursday 12/26/13.
  • Regular Thursday deliveries will be made on Friday 12/27/13.
  • Regular Friday deliveries will be made on Saturday 12/28/13.

New Year's Day:

  • No deliveries made Wednesday 1/1/14.
  • Regular Monday and Tuesday deliveries will be made on normal scheduled days, 12/30 and 12/31/13.
  • Regular Wednesday deliveries will be made on Thursday 1/2/14.
  • Regular Thursday deliveries will be made on Friday 1/3/14.
  • Regular Friday deliveries will be made on Saturday 1/4/14.