Nov-4th-Party-Store-Presentation1

Report
Copyright © 2013
WORKING WITH THE MLCC AND
LICENSED BEVERAGE LICENSEES IN FLINT
is the trademark and/or registered trademark of
Michigan Licensed Beverage Association®
WORKING WITH THE MLCC AND
LICENSED BEVERAGE LICENSEES IN FLINT
Materials, 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 AND
LICENSED 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

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

Resort SDD license



Non-transferable as to location, can transfer
owner
10 may be issued per year
MLCC no longer requiring police
approval

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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
On-premises
Population
# of licenses
1- 2,250
2,251- 3,750
3,751- 5,250
5,251-6,750
Off-premises
Population
# of licenses
1
1-3,000 1
2 3,001- 6,000 2
3 6,001- 9,000 3
4 9,001-12,000 4
etc.
etc.
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



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 onpremises license
Local governments may also request
revocation of off-premises SDD and SDM
licenses in their jurisdiction based on
violations



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.


The local governmental unit must establish
standards or guidelines stating what conditions
will constitute a basis for requesting nonrenewal or revocation of a license
The local governmental unit must notify
licensees of the guidelines and any subsequent
changes
Loss 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




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



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


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


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 436.1503
This section is not a reason for a
governmental unit or police department to
deny a license.
Bar Street
A’
B’
A’ + B’ ≥ 500’
Church Street
Bar Street
A’
A’ + B’ ≥ 500’
B’
Church Street


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.


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

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


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

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
 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


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.


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:
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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



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


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 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.

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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.
 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
 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
 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




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



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



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.



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

History
“Us vs. them” mentality

Communication gap

Licensees worried neighborhood groups want
them “shut down”

Get to know your establishments




Stop in



Owners
Managers
Staff
Let owners know who you are
Get them to join your association
Find out what problems establishment has &
let them know what concerns you

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


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

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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

Click
Here
Click
Here
Fill out the form
and submit



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



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




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

You can click on the Business ID number to get
details about the licensee


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
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
LICENSEE
INFORMATION
CLICK FOR
VIOLATION
HISTORY
Doing Business As
LOCATION &
ADDRESS
INFORMATION
NAME OF LICENSEE
STOCKHOLDERS OR
MEMBERS OF LLC
LICENSE
INFORMATION





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.




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.
ACTIVE LIST BY
COUNTY
AND
ESCROW LIST FOR
STATE
LIST FOR LABELS




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.”

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



Click on “Licensing Lists” on the left side of the
page
Choose the SDD Availability Report or the OnPremises Quota Availability Report.
The reports are by county and the first page
has the date the report was prepared.





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

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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 Names
ID Number
Resident Agent
Office and Mailing addresses
Date of
incorporation/Organization
Status – active/inactive
Link to images of filings
Michigan Licensed
Beverage Association
920 N. Fairview
Lansing, MI 48912
 800-292-2896



David Puck ext. 108
Ronalee Polad ext. 105
Scott Ellis ext. 101
AFPD – Auday Arabo
800-666-6233
MLCC – Barb Susbatian
517-322-1370

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