WORKING WITH THE

MLCC AND

LICENSED BEVERAGE LICENSEES

INFLINT

Copyright © 2013

WORKING WITH THE MLCC ANDLICENSED BEVERAGE LICENSEES IN FLINT

is the trademark and/or registered trademark ofMichigan Licensed Beverage Association®

WORKING WITH THE MLCC ANDLICENSED BEVERAGE LICENSEES IN FLINTMaterials, whether written or videotaped,

may not be reproduced or altered in any form without prior written permission from Michigan Licensed Beverage

Association® Copyright ©2013

All rights reserved.

WORKING WITH THE MLCC ANDLICENSED BEVERAGE LICENSEES IN FLINT

is an educational and instructional program taught by independent contractors under a license agreement with National Hospitality Institute®. The independent contractor instructors are

responsible for the content and method of instruction for the class. The class is a means of sharing information and making suggestions about various subjects of interest to liquor license

holders, and is not intended to be legal advice. Class participants are encouraged to direct all legal questions to their own legal advisor, and they should not rely upon any statements made,

orally or in writing, during a class as a statement of the law. Any liability associated or attributed to any topic covered at a class is

expressly disclaimed by National Hospitality Institute® and Michigan Licensed Beverage Association®.

Types of Licenses

&

The Licensing Process

OFF-PREMISES RETAIL LICENSES

SDD Specially Designated Distributor License to sell packaged liquor (distilled spirits and mixed

spirit drink only) for consumption off the premises. A quota license.

SDM Specially Designated Merchant License to sell only beer and wine for consumption off the

premises and is not subject to quota restrictions.

Only issued to approved type businesses.

MLCC no longer requiring police approval

SPECIAL ACT LICENSES

Resort SDD license Non-transferable as to location, can

transfer owner 10 may be issued per year

MLCC no longer requiring police approval

MICHIGAN’S QUOTA SYSTEM Established by the Legislature to control

the growth of businesses selling alcohol

Based on a simple ratio of licenses to population

A change in the demographics of a municipality can change the number of licenses available.

No quota restrictions for Specially Designated Merchants or Clubs

MICHIGAN’S QUOTA SYSTEM

On-premises Off-premises

Population # of licenses Population # of licenses

1- 2,250 1 1-3,000 12,251- 3,750 2 3,001- 6,000 23,751- 5,250 3 6,001- 9,000 35,251-6,750 4 9,001-

12,000 4 etc. etc.

LEGISLATIVE BODY APPROVAL

OFF-PREMISES LICENSES - Ordinance and Zoning Compliance

Off-premises licenses (SDM and SDD) do not require approval of the local governing body

The governmental unit can object if the business is not in compliance with codes and ordinances MAC R 436.1105

MLCC MAILS NOTIFICATION LETTERS FOR ALL APPLICATIONS

Objections to Renewal

&

Revocations

Objection To Renewal & Revocation of License

Local units of government may object to renewal or request revocation of on-premises licenses, only

Local governments may request revocation of any permit held in conjunction with an on-premises license

Local governments may also request revocation of off-premises SDD and SDM licenses in their jurisdiction based on violations

Due Process The Michigan Supreme Court says

that a licensee has a property interest in the license and is entitled to due process protection when there is an objection to a renewal or a request for revocation of a license or permit;

The decision by the local body to object to renewal of a license must afford “rudimentary due process.”

The Court of Appeals held that a lack of standards and fair notification of the standards violates a licensee’s right to due process.

Guidelines and Standards

The local governmental unit must establish standards or guidelines stating what conditions will constitute a basis for requesting non-renewal or revocation of a license

The local governmental unit must notify licensees of the guidelines and any subsequent changes

Revoking Off-Premiese LicensesLoss of license: The local unit of government can request that the MLCC revoke the license of an off-premises licensee who has been found guilty of selling alcoholic beverages to a minor on three separate occasions in a consecutive 12 month period. MCL 436.1501(3)

Michigan Liquor Control Code

&

Administrative Rules

MICHIGAN LIQUOR LAWS

Anything with MCL in front of it is a statute and approved by the Legislature and signed by the governor. The Michigan Liquor Control Code of 1998 is a statute

Anything with MAC in front of it is an administrative rule which are promulgated by the state agency to set up procedures for that agency and go through an approval process with the Joint Committee on Administrative Rules

Rules can be suggested by the public, the agency staff and lobby groups

Rules do not go before the full legislature or the governor for approval

ALCOHOL IN MICHIGAN

You cannot make, sell or transport alcohol in Michigan without being licensed through the MLCC. MCL 436.1201

A person can bring 312 ounces of beer or wine into the state for their own use. There are regulations on alcohol being shipped in. MCL 436.1203

Licensees have to purchase spirits from the state through ADAs. MCL 436.1205

SERVER TRAINING

Every on-premises license issued after July 1, 2002 must have a supervisory person at the establishment at all times that successfully completed a server training program. Public Act 431, 2000.

The Commission can order off-premises licensees to complete server training because they have violations

CHURCH & SCHOOL

A new on-premises or SDD license or a transfer of location of either cannot be within 500 feet of a church or school.

The Commission may waive this section if no objection is received from the church or school or after a hearing. MCL 436.1503This section is not a reason for a governmental unit or police department to deny a license.

Church Street

Bar Street A’

B’

A’ + B’ ≥ 500’

Church Street

Bar StreetA’

B’

A’ + B’ ≥ 500’

MINORS

A Licensee shall not allow a person who is less than 18 years of age to sell or serve alcoholic beverages. MCL 436.1707(6)

This includes family members. Youth Employment Act excludes family members but they still must be 18 to sell and serve alcohol.

PENALTIES FOR SALES TO MINORS

Misdemeanor: A liquor licensee or an employee of the licensee who sells or furnishes alcoholic beverages to a minor may be found guilty of a misdemeanor.

IF THE VIOLATION IS DUE TO AN UNDERCOVER OPERATION THE CLERK OR EMPLOYEE MAY ONLY BE CHARGED WITH A CIVIL INFRACTION AND BE FINED A MAXIMUM OF $100.00. MCL 436.1701

PENALTIES FOR SALES TO MINORS & INTOXICATED PATRONS

Dram Shop Liability The licensee may be held liable in civil suits when the sale or furnishing of alcoholic liquor to a minor or visibly intoxicated person is the proximate cause of damage, injury or death of an innocent party. MCL 436.1801

An automatic penalty hearing is set when any licensee has three violations for a direct sale to a minor or intoxicated person within a 24 month period. MCL 436.1903

LIABILITY

Anyone who sells alcoholic liquor in violation of this act whether the owner or an employee is equally liable both criminally and civilly.

The owner of the business is liable both criminally and civilly for the actions of the employees. MCL 436.1917

HOURS OF OPERATION

All Licensees A Licensee shall only sell alcoholic beverages (beer,

wine, or spirits) between the hours of 7 a.m. and 2 a.m. Monday through Saturday. MAC R 436.1403 and R 436.1503

A Licensee shall not sell beer, wine or spirits on Sunday between 2 a.m. and 12 noon in the City of Flint MCL 436.2113 and MAC R 436.1403 and R 436.1503

A Licensee shall not sell spirits between noon and midnight on Sunday unless they are issued a Sunday Sales permit by the Liquor Control Commission. MCL 436.2115

HOURS OF OPERATION

A Licensee shall not sell any alcoholic beverages between 11:59 p.m. on December 24 (Christmas Eve) and Noon on December 25. *The establishment may be open for the sale of other goods and services. MCL 436.2113(5) and MAC R 436.1403

Local governing bodies (city council, township board, etc.) may prohibit sales of alcoholic beverages on election days, Sundays & Christmas. MCL 436.2113

PROHIBITED CONDUCT A licensee shall not allow the

licensed premises to be used for solicitation for prostitution by either customers or employees. MAC R 436.1011

A licensee shall not allow fighting, brawling, or the improper use of any weapons on the licensed premises. MAC R 436.1011

Licensed premises do not include the parking lot.

PROHIBITED CONDUCT A licensee shall not allow narcotics paraphernalia to be sold, exchanged, used or

stored on the licensed premises. MAC R 436.1011

The following is a partial list of items that could be construed as narcotics paraphernalia:

Metal, wooden, acrylic, glass, stone, plastic, ceramic pipes, or other pipes not sold in conjunction with loose tobacco products or not customarily used to smoke loose tobacco;

Small pipe screens, not sold in conjunction with loose tobacco and tobacco pipes; Water pipes, when no loose tobacco products are available for sale; Roach clips; Miniature spoons, not sold with gift sets; Bongs; "Love Roses" or "rose pipes"; Glass pens; Chore Boys and other copper or steel wool pads sold individually or sold in cut up form; Small baggies, not sold in conjunction with jewelry; Individual razor blades; Blunts, when no tobacco products are also available for sale; Rolling papers, when no loose tobacco products are available for sale; Scales and balances; Small mirrors, not sold with other health & beauty aid products; Hypodermic syringes, not sold in conjunction with medical supplies; Lolli-pipe, edible smoking pipes;

A licensee shall not allow the sale, possession, or consumption of any controlled substances on the licensed premises. MAC R 436.1011

PROHIBITED CONDUCT

A licensee shall not allow illegal gambling or gaming devices on the licensed premises. MCL 436.1901 (2)

A licensee shall not allow the annoying or molesting of customers or employees by other customers or employees. MAC R 436.1011

The sale of single cigarettes or “loosies” is prohibited

PURCHASE AND SALE OF ALCOHOL

A licensee shall not sell alcoholic beverages below cost. MAC R 436.1055

All alcoholic liquor purchases and sales must be for cash only. MCL 436.2013

NON-ALCOHOLIC BEVERAGES

Non-alcoholic beverages such as Sharps, Texas Light, Molson NA, etc. do not meet the definition of alcoholic liquor. Can be sold on Sunday Can be sold at any time of the day Can be sold to persons 18 and older. MCL

436.1105 (2) & 750.28 They DO meet the Michigan Vehicle

Code definition of alcoholic liquor.

PENALTIES FOR FOOD STAMP VIOLATIONS

If a licensee is convicted or administratively disqualified as the result of an electronic transaction for trafficking to which all of the following apply:

(a) The transaction is a transaction for food assistance program benefits.

(b) The transaction involves an item other than eligible food.

(c) The transaction is related to the sale of alcoholic liquor under that licensee's liquor license.

The licensee can receive the following penalties: (a) For a first violation, a license suspension for

between 30 and 60 days. (b) For a second violation, a license suspension for

between 61 and 120 days. (c) For a third or subsequent violation, revocation of

the license.

MISCELLANEOUS RULES

A licensee shall not sell or transfer an interest in a licensed business without written approval of the Commission. MCL 436.1529 and MAC R 436.1023

A licensee shall not obtain a license for the use or benefit of a person whose name does not appear on the license. MCL 436.1529 and MAC R 436.1041

MISCELLANEOUS RULES

A licensee shall not alter the size or lease a portion of the licensed premises without Commission approval. MAC R 436.1023

A licensee shall not close the business for more than one month without returning the license for escrow. MAC R 436.1047

MISCELLANEOUS RULES

A licensee shall display the liquor license and Permit Document in a prominent place in a frame and under a transparent material. MAC R 436.1015

A licensee shall not fail to obey a written order of the Commission. MAC R 436.1029

A licensee shall not store alcoholic beverages off the licensed premises without prior Commission approval. MAC R 436.1025

MISCELLANEOUS RULES

A licensee shall not submit an NSF Check or EFT to the State of Michigan for payment of alcohol or fees. MAC R 436.1059

A licensee shall renew the retail liquor license by May 1 of each year. MCL 436.1501

All licensees must comply with all state and local building, zoning, health, etc. codes. MAC R 436.1003

All licensees must maintain accurate records of alcohol sales and purchases and sufficient records to determine ownership for 4 years. MAC R 436.1007

Violations

&

Hearings

Violations of Liquor Laws and Regulations

Anyone with the authority to enforce Michigan’s liquor law and rules may submit violation reports to the MLCC.

Violation reports submitted by law enforcement agencies are reviewed by the Assistant Attorney General (AAG) staff assigned to the Commission.

If the AAG determines there is reason to believe a violation took place, a formal Violation Complaint will be filed against the licensee.

Serious violations include: selling or furnishing alcoholic beverages

to a minor consumption of alcohol by a minor; sale to or consumption of alcoholic liquor

by an intoxicated person sale of alcoholic beverages before or

after legal hours prohibited conduct

allowing fights gambling use or possession of narcotics

failure to cooperate with investigators or police

Violations of Liquor Laws and Regulations

APPEALS

The licensee has the right to appeal any decision by a Commissioner or Administrative Law Judge unless there was a negotiated settlement at the hearing that they agreed to accept.

The Administrative Commissioners will hear the Appeal and are limited to the original evidence presented at the violation hearing.

The decision of the Appeal board may be appealed to Circuit Court.

SUSPENSIONS

A neon orange sign is posted on the door stating that the license is suspended

The business does not have to be closed. The licensee may not sell, serve or allow

the consumption of any alcohol product for the period of the suspension.

Working with Licensed Establishments

Working with MLCC

Working with Licensed Establishments

History “Us vs. them” mentality

Communication gap

Licensees worried neighborhood groups want them “shut down”

Create a relationship

Get to know your establishments Owners Managers Staff

Stop in Let owners know who you are Get them to join your association

Find out what problems establishment has & let them know what concerns you

Educate The Establishment

Explain what is expected by the neighborhood association

Be a resource

Assist in how to handle disturbances

Recommend sever training (TAM®)

Tell them to create a daily log book

Working with MLCC

Request help with decoy operations, problem licensees, licensing questions

Know your local investigator – they are each assigned to a District Office Lansing 517-322-1370

Barb Subastian, Regional Supervisor            Susan Edel-Newell, District Supervisor    Shannon Bush, District Supervisor  Tina Jointer, Desk Supervisor  

Southfield Grand Rapids Escanaba

Report violations Check on the progress of an application Get lists of licensees in your area Make labels for licensees in your county Obtain information on a specific licensee

Licensee Name Address Type of Licenses & permits Violation History

Using the MLCC Website

WWW.MICHIGAN.GOV/LCC

Report Violations

Click Here

Report Violations

Click Here

Report Violations

Fill out the form and submit

Check Application Progress

Click on “Michigan Liquor Control Commission Application Status Check” on MLCC Licensing Lists Page

Enter your Request ID number and Submit

Click on Request ID link to see progress

Licensing Lists

Michigan Liquor Control

Commission Application Status

Enter your Request ID number &

Submit

Click on link

Check for applications in your Area

Select your governmental unit in the drop down

Scroll to the bottom of the list – that is where new applications are

Click on application to determine what it is & who is involved

Highest Business ID Numbers

are newest applications

INFORMATION ON A SPECIFIC LICENSEE

At MLCC home page click on “Active or Escrowed License Query” scrolling boxes at the bottom of the page

Use the drop down to choose your county

You can refine your search if you know the type of license by choosing it

The list is by governmental unit and the licensees are alphabetical.

CLICK HERE

CHOOSE LICENSE TYPE

INFORMATION ON A SPECIFIC LICENSEE

You can click on the Business ID number to get details about the licensee Individuals, stockholders & members Number of bars, types of permits Types of licenses Phone number on file

To the right of the Business ID is a Y or N. If there is a Y, there is a violation history on the licensee. Click on the Y to see the violation history.

CLICK FOR VIOLATION HISTORY

CLICK FOR LICENSEE

INFORMATION

Doing Business As

LOCATION & ADDRESS

INFORMATION NAME OF LICENSEE

STOCKHOLDERS OR MEMBERS OF LLC

LICENSE INFORMATIO

N

PDF LICENSEE LIST

Click on “Licensing Lists” on the left side of the page

Click on “Active and Escrowed Lists by County”

Choose your county, either Active or Escrowed.

This will bring up a list with all licensees in the county separated by governmental unit.

There will be a date at the top of the page which states when the list was made.

DOWNLOAD COUNTY LIST

Click on “Licensing Lists” on the left side of the page

Click on “Active Lists by County” in the middle of the page

Scroll to the middle of the next page to “Active Licensee Lists” and choose your county

A page FULL of info comes up. Do a “Save as” from File and save the file to somewhere you can find it, like the desktop. Change the name to one you will recognize.

LIST FOR LABELS

ACTIVE LIST BY COUNTY

AND

ESCROW LIST FOR STATE

MANAGE THE DATA Open Excel and open the file Once you get to the Desktop list of files

change “Files of type” at the bottom of the box to “All Files” so your saved file shows up. Double click on it.

Step 1 of The Text Import Wizard box will appear. Click “Next” at the bottom

At Step 2 it should default to tab. Also click on Comma and then “Next.”

MANAGE THE DATA At Step 3 Scroll to the end and highlight

each of the last four columns and change them to Text format

Click on “Finish” at the bottom

You can download the “Field Definitions” list

You can manipulate the data that you have downloaded by sorting

Save your file as an Excel Workbook

QUOTA INFORMATION

Click on “Licensing Lists” on the left side of the page

Choose the SDD Availability Report or the On-Premises Quota Availability Report.

The reports are by county and the first page has the date the report was prepared.

Check Corporation Information

From MLCC Homepage click on “Commercial Services” from list on the left side of the page

Click on “Online Services” in the green box on the left side of the page

Click on “Business Entity Search” in the middle of the page

Enter the name of the corporation Click on the link to the corporation

From MLCC Homepage click on “Commercial Services” from list on the left side of

the page

Click on “Online Services” on the left side of the page

Click on “Business Entity Search”

Enter the name of the corporation or LLC

Click on Link

Information Available

ID Number Resident Agent Office and Mailing addresses Date of incorporation/Organization Status – active/inactive Date of corporation’s last annual report of

officers Link to images of filings

Link to Assumed NamesID NumberResident AgentOffice and Mailing addressesDate of incorporation/OrganizationStatus – active/inactiveLink to images of filings

Reference Page

Michigan Licensed Beverage Association920 N. FairviewLansing, MI 48912 800-292-2896

David Puck ext. 108 Ronalee Polad ext.

105 Scott Ellis ext. 101

AFPD – Auday Arabo800-666-6233

MLCC – Barb Susbatian

517-322-1370