3SECTION ONETypes of Licenses&The Licensing Process
4OFF-PREMISES RETAIL LICENSES SDD Specially Designated DistributorLicense to sell packaged liquor (distilled spirits and mixed spirit drink only) for consumption off the premises. A quota license.SDM Specially Designated MerchantLicense 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
5SPECIAL ACT LICENSES Resort SDD license Non-transferable as to location, can transfer owner10 may be issued per yearMLCC no longer requiring police approval
6MICHIGAN’S QUOTA SYSTEM Established by the Legislature to control the growth of businesses selling alcoholBased on a simple ratio of licenses to populationA change in the demographics of a municipality can change the number of licenses available.No quota restrictions for Specially Designated Merchants or Clubs
7MICHIGAN’S QUOTA SYSTEM On-premises Off-premisesPopulation # of licenses Population # of licenses1- 2, ,2,251- 3, ,001- 6,3,751- 5, ,001- 9,5,251-6, ,001-12, etc. etc.
8LEGISLATIVE BODY APPROVAL OFF-PREMISES LICENSES - Ordinance and Zoning ComplianceOff-premises licenses (SDM and SDD) do not require approval of the local governing bodyThe governmental unit can object if the business is not in compliance with codes and ordinances MAC RMLCC MAILS NOTIFICATION LETTERS FOR ALL APPLICATIONS
10Objection To Renewal & Revocation of License Local units of government may object to renewal or request revocation of on-premises licenses, onlyLocal governments may request revocation of any permit held in conjunction with an on- premises licenseLocal governments may also request revocation of off-premises SDD and SDM licenses in their jurisdiction based on violations
11Due ProcessThe 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.
12Guidelines 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 licenseThe local governmental unit must notify licensees of the guidelines and any subsequent changes
13Revoking Off-Premiese Licenses 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 (3)
14Michigan Liquor Control Code SECTION THREEMichigan Liquor Control Code&Administrative Rules
15MICHIGAN LIQUOR LAWSAnything 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 statuteAnything 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 RulesRules can be suggested by the public, the agency staff and lobby groupsRules do not go before the full legislature or the governor for approval
16ALCOHOL IN MICHIGANYou cannot make, sell or transport alcohol in Michigan without being licensed through the MLCC. MCLA person can bring 312 ounces of beer or wine into the state for their own use. There are regulations on alcohol being shipped in. MCLLicensees have to purchase spirits from the state through ADAs. MCL
17SERVER TRAININGEvery 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
18CHURCH & SCHOOLA 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. MCLThis section is not a reason for a governmental unit or police department to deny a license.
21MINORSA Licensee shall not allow a person who is less than 18 years of age to sell or serve alcoholic beverages. MCL (6)This includes family members. Youth Employment Act excludes family members but they still must be 18 to sell and serve alcohol.
22PENALTIES 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 $ MCL
23PENALTIES 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. MCLAn 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
24LIABILITYAnyone 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
25HOURS 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 and RA Licensee shall not sell beer, wine or spirits on Sunday between 2 a.m. and 12 noon in the City of Flint MCL and MAC R and RA 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
26HOURS OF OPERATIONA Licensee shall not sell any alcoholic beverages between 11:59 p.m. on December 24 (Christmas Eve) and Noon on December *The establishment may be open for the sale of other goods and services. MCL (5) and MAC RLocal governing bodies (city council, township board, etc.) may prohibit sales of alcoholic beverages on election days, Sundays & Christmas. MCL
27PROHIBITED CONDUCTA licensee shall not allow the licensed premises to be used for solicitation for prostitution by either customers or employees. MAC RA licensee shall not allow fighting, brawling, or the improper use of any weapons on the licensed premises. MAC RLicensed premises do not include the parking lot.
28PROHIBITED CONDUCTA licensee shall not allow narcotics paraphernalia to be sold, exchanged, used or stored on the licensed premises. MAC RThe 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
29PROHIBITED CONDUCTA licensee shall not allow illegal gambling or gaming devices on the licensed premises. MCL (2)A licensee shall not allow the annoying or molesting of customers or employees by other customers or employees. MAC RThe sale of single cigarettes or “loosies” is prohibited
30PURCHASE AND SALE OF ALCOHOL A licensee shall not sell alcoholic beverages below cost. MAC RAll alcoholic liquor purchases and sales must be for cash only. MCL
31NON-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 SundayCan be sold at any time of the dayCan be sold to persons 18 and older. MCL (2) &They DO meet the Michigan Vehicle Code definition of alcoholic liquor.
32PENALTIES 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.
33MISCELLANEOUS RULESA licensee shall not sell or transfer an interest in a licensed business without written approval of the Commission. MCL and MAC RA licensee shall not obtain a license for the use or benefit of a person whose name does not appear on the license. MCL and MAC R
34MISCELLANEOUS RULESA licensee shall not alter the size or lease a portion of the licensed premises without Commission approval. MAC RA licensee shall not close the business for more than one month without returning the license for escrow. MAC R
35MISCELLANEOUS RULESA licensee shall display the liquor license and Permit Document in a prominent place in a frame and under a transparent material. MAC RA licensee shall not fail to obey a written order of the Commission. MAC RA licensee shall not store alcoholic beverages off the licensed premises without prior Commission approval. MAC R
36MISCELLANEOUS RULESA licensee shall not submit an NSF Check or EFT to the State of Michigan for payment of alcohol or fees. MAC RA licensee shall renew the retail liquor license by May 1 of each year. MCLAll licensees must comply with all state and local building, zoning, health, etc. codes. MAC RAll licensees must maintain accurate records of alcohol sales and purchases and sufficient records to determine ownership for 4 years. MAC R
38Violations 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.
39Violations of Liquor Laws and Regulations Serious violations include:selling or furnishing alcoholic beverages to a minorconsumption of alcohol by a minor;sale to or consumption of alcoholic liquor by an intoxicated personsale of alcoholic beverages before or after legal hoursprohibited conductallowing fightsgamblinguse or possession of narcoticsfailure to cooperate with investigators or police
40APPEALSThe 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.
41SUSPENSIONSA neon orange sign is posted on the door stating that the license is suspendedThe 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.
42SECTION FIVEWorking with LicensedEstablishmentsWorking with MLCC
43Working with Licensed Establishments History“Us vs. them” mentalityCommunication gapLicensees worried neighborhood groups want them “shut down”
44Create a relationship Get to know your establishments Stop in OwnersManagersStaffStop inLet owners know who you areGet them to join your associationFind out what problems establishment has & let them know what concerns you
45Educate The Establishment Explain what is expected by the neighborhood associationBe a resourceAssist in how to handle disturbancesRecommend sever training (TAM®)Tell them to create a daily log book
46Working with MLCCRequest help with decoy operations, problem licensees, licensing questionsKnow your local investigator – they are each assigned to a District OfficeLansingBarb Subastian, Regional Supervisor Susan Edel-Newell, District Supervisor Shannon Bush, District Supervisor Tina Jointer, Desk Supervisor SouthfieldGrand RapidsEscanaba
47Using the MLCC Website Report violations Check on the progress of an applicationGet lists of licensees in your areaMake labels for licensees in your countyObtain information on a specific licenseeLicensee NameAddressType of Licenses & permitsViolation History
51Fill out the form and submit Report ViolationsFill out the form and submit
52Check Application Progress Click on “Michigan Liquor Control Commission Application Status Check” on MLCC Licensing Lists PageEnter your Request ID number and SubmitClick on Request ID link to see progress
58Check for applications in your Area Select your governmental unit in the drop downScroll to the bottom of the list – that is where new applications areClick on application to determine what it is & who is involved
60Highest Business ID Numbers are newest applications
61INFORMATION ON A SPECIFIC LICENSEE At MLCC home page click on “Active or Escrowed License Query” scrolling boxes at the bottom of the pageUse the drop down to choose your countyYou can refine your search if you know the type of license by choosing itThe list is by governmental unit and the licensees are alphabetical.
65INFORMATION ON A SPECIFIC LICENSEE You can click on the Business ID number to get details about the licenseeIndividuals, stockholders & membersNumber of bars, types of permitsTypes of licensesPhone number on fileTo 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.
66CLICK FOR LICENSEE INFORMATION CLICK FOR VIOLATION HISTORY
67LOCATION & ADDRESS INFORMATION Doing Business AsLOCATION & ADDRESS INFORMATIONNAME OF LICENSEESTOCKHOLDERS OR MEMBERS OF LLCLICENSE INFORMATION
69PDF LICENSEE LISTClick on “Licensing Lists” on the left side of the pageClick 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.
72DOWNLOAD COUNTY LISTClick on “Licensing Lists” on the left side of the pageClick on “Active Lists by County” in the middle of the pageScroll to the middle of the next page to “Active Licensee Lists” and choose your countyA 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.
73ACTIVE LIST BY COUNTYANDESCROW LIST FOR STATELIST FOR LABELS
74MANAGE 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 bottomAt Step 2 it should default to tab. Also click on Comma and then “Next.”
75MANAGE THE DATAAt Step 3 Scroll to the end and highlight each of the last four columns and change them to Text formatClick on “Finish” at the bottomYou can download the “Field Definitions” listYou can manipulate the data that you have downloaded by sortingSave your file as an Excel Workbook
76QUOTA INFORMATIONClick on “Licensing Lists” on the left side of the pageChoose 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.
78Check Corporation Information From MLCC Homepage click on “Commercial Services” from list on the left side of the pageClick on “Online Services” in the green box on the left side of the pageClick on “Business Entity Search” in the middle of the pageEnter the name of the corporationClick on the link to the corporation
79From MLCC Homepage click on “Commercial Services” from list on the left side of the page
80Click on “Online Services” on the left side of the page
84Information Available ID NumberResident AgentOffice and Mailing addressesDate of incorporation/OrganizationStatus – active/inactiveDate of corporation’s last annual report of officersLink to images of filings
85Link to Assumed NamesID NumberResident AgentOffice and Mailing addressesDate of incorporation/OrganizationStatus – active/inactiveLink to images of filings