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Temporary liquor license bill reviewed

March 13, 2013

A faster option might be available for business owners in Michigan trying to gain a liquor license.

The House Regulatory Reform Committee recently passed House Bill 4277, which would allow new businesses to acquire a temporary liquor license while the Michigan Liquor Control Commission, or MLCC, conducts its review.

The temporary license would cost $300 and requires applicants to file a separate form from the full license application. It would expire after one year, or when the applicant is denied or accepted for a full license.

In addition, the MLCC would be required to issue the conditional license within 20 business days of receiving a completed receipt and the applicant must show proof of financial responsibility, such as a liquor liability insurance policy and an executed property document.

East Lansing councilmember Kevin Beard said a number of legislators will point out problems with this, similar issues found with giving temporary taxi permits.

“You may give a temporary permit (and) get them up and running, but if something turns up, you’re going to have to jerk it and then you’ve got bigger problems,” Beard said.

The bill first was introduced last session and passed almost unanimously out of the House of Representatives on a 105-2 vote in September 2012. The bill was introduced again this year with slight changes. The legislation’s sponsor, state Rep. Ray Franz, R-Onekama, expects the bill to pass comfortably in the Republican-controlled House.

“This is a government-working issue because invariably what we’ve had for years for small businesses that transfer a liquor license, they’ve had to go to their state representatives or their senator, get some help and all of that,” Franz said. “This will get their business into business as quickly as possible without all that extra involvement of government.”

Seth Tompkins, owner of What Up Dawg?, 317 M.A.C Ave., said this legislation is a great idea, especially for those trying to sell a business. The liability would be taken off the seller and put on the buyer.

If someone purchases a business that already has a liquor license, it can take a few months to transfer the license to the new owner. During that time, the former owner is liable for anything that happens under the new management.

“People get denied (a liquor license) because they have too many liquor violations, or most commonly have a felony,” Tompkins said. “It might cause more risk for the people that don’t do their jobs right. If someone is denied less than one out of a hundred times, I’m not concerned about those people. I’m concerned about the other 99 people that are waiting six to eight months.”

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