Alcoholic Beverage Consumption and Sampling in Unlicensed Premises
The Michigan Liquor Control Code prohibits alcoholic beverage consumption in non-licensed establishments pursuant to MCL 436.1913 and MCL 436.2027. However, since the participating establishments do not hold liquor licenses, the Commission does not have jurisdiction over them and cannot take enforcement action against these unlicensed businesses. Therefore, the ultimate determination of whether a violation has occurred rests with the local law enforcement agency and the local prosecutor. Any suspected violations of persons allowing the consumption of alcoholic beverages for consideration or conducting alcoholic beverages samplings and tastings for monetary gain should be referred to the local law enforcement agency for enforcement action.
Consumption for Consideration
MCL 436.1913 of the Liquor Control Code prohibits the consumption of alcoholic liquor (beer, wine, mixed spirit drink, or spirits) on any premises or place for “consideration” unless the premises are licensed by the Michigan Liquor Control Commission to allow consumption on the premises. Alcoholic beverage consumption for consideration is limited to licensed bars, taverns, restaurants, clubs, hotels, or places holding a Special License issued to a non-profit organization by the Michigan Liquor Control Commission. The term “consideration” is defined to include, “any fee, cover charge, ticket purchase, the storage of alcoholic liquor, the sale of food, ice, mixers, or other liquids used with alcoholic liquor drinks, or the purchasing of any service or item, or combination of service and item; or includes the furnishing of glassware or other containers for use in the consumption of alcoholic liquor in conjunction with the sale of food.”
MCL 436.1913(1) prohibits “blind pigs” or other commercial establishments that charge an entry fee or sell food, ice, mixer, or other liquids to consumers and allowing consumers to bring in their own alcoholic beverages. The statute also prohibits any other non-licensed business from serving or allowing the consumption of alcoholic beverages as part of their business when the consumer has paid for some other service, such as barbershop, hair salon, tanning salon, or limousine service, to name a few. If consumers are paying any cover charge, entry fee, donation, or any other fee for any goods or services, or are purchasing food, ice, mixers, or other liquids, the law prohibits allowing the consumption of alcoholic beverages unless the establishment is properly licensed through the Michigan Liquor Control Commission. Furthermore, Michigan courts have held that consideration is present where there is any amount of significant economic activity, regardless if someone purchases a good or service.
MCL 436.1913(2) prohibits a restaurant or other commercial establishment that sells food from allowing the consumption of alcoholic beverages unless the business holds a liquor license. This section law prohibits an unlicensed restaurant from allowing customer to "bring your own beverage" (BYOB) of alcoholic beverages to be consumed at the unlicensed restaurant.
This law does not prohibit a wedding reception, retirement party, open house, or other similar private event that is not open to the public in a non-licensed facility whereby the attendees are guests and are not charged a fee.
Samplings & Tastings
MCL 436.2027 of the Liquor Control Code prohibits samplings or tastings of alcoholic liquor for “commercial purposes” unless the sampling or tasting is done at premises that are licensed by the Michigan Liquor Control Commission for the sale of alcoholic liquor for consumption on the premises. The term “commercial purposes” is further defined as, “means a purpose for which monetary gain or other remuneration could reasonably be expected.” The “monetary gain” could be direct such as receiving orders for wine purchases as a result of a sample or tasting, or a more indirect monetary gain such as increased business as a result of advertising free alcoholic beverage samples.
As with the consumption for consideration prohibition, as previously described, alcoholic beverage sampling and tasting is limited to licensed bars, taverns, restaurants, clubs, hotels, or places holding a Special License issued to a non-profit organization by the Michigan Liquor Control Commission. There are also allowances under MCL 436.1537(5) of the Liquor Control Code for certain types of liquor licensees to conduct beer and wine sampling at licensed take-out locations with a sampling permit under certain restrictions. Also, under MCL 436.2027(4) and (5) of the Liquor Control Code, licensed suppliers can conduct spirit sampling with a sampling permit under certain restrictions at licensed take-out spirit locations. Lastly, licensed alcohol manufacturers can offer samples of the products they manufacture at their approved tasting room locations.
MCL 436.2027 prohibits in-home wine tasting parties conducted by alcoholic beverage suppliers, wholesalers, and retailers, or any person directly or indirectly associated with them, who take orders for wine from attendees, but would also prohibit any tasting or sampling in unlicensed premises that results in a monetary gain as a result of an alcoholic beverage sampling or tasting. If alcoholic beverage samplings or tastings are occurring on non-licensed premises for monetary gain, the person conducting the tasting may be guilty of a misdemeanor or a felony, depending on the circumstances, pursuant to MCL 436.1909.
