Mich. Admin. Code R. 436.1135 - Specially designated distributor license; limitations upon issuance or transfer; waiver; applicability
Rule 35.
(1) For the
issuance of a new, or the transfer of location of an existing, specially
designated distributor license, all of the following are approved types of
businesses:
(a) A grocery store.
(b) A convenience food store.
(c) A food specialty store.
(d) A meat market.
(e) A delicatessen.
(f) A drugstore.
(g) A patent medicine store.
(h) A tobacconist that is in compliance with
subrule (3)(e) of this rule.
(i) A
department store that includes 1 or more of the stores listed in subdivisions
(a) to (h) of this subrule.
(j) A
hotel.
(2) The
commission shall not issue a new, or transfer location of an existing,
specially designated distributor license to an applicant operating an approved
type of business who also holds, or a partner or stockholder of the applicant
who holds, an interest, directly or indirectly, in a nonapproved type of
business on, or contiguous to, the proposed licensed premises, unless 60% or
more of the combined monthly gross sales of the approved and nonapproved
businesses are of goods and services customarily marketed by the approved type
of business. For the purposes of this subrule, combined monthly gross sales are
exclusive of all taxes collected by a retailer on sales and are computed for an
accounting period of not less than 180 consecutive days. The commission may
approve an application under this rule subject to the condition that the
applicant shall demonstrate compliance with this subrule at the end of the
180-day accounting period. The commission shall cancel the license if the
licensee has failed to comply with the provisions of this subrule at the end of
the 180-day accounting period.
(3)
The commission shall not issue a specially designated distributor license to
any of the following entities and shall not allow any of the following entities
to change the nature of an existing business that has a specially designated
distributor license:
(a) An applicant who
owns motor vehicle fuel pumps which are at the same location as, which are
operated in conjunction with, or which are a part of, the proposed licensed
business.
(b) An applicant who
holds any financial interest, directly or indirectly, in the establishment,
maintenance, operation, or promotion of the sale of motor vehicle fuel at the
proposed location of, in conjunction with, or as a part of, the proposed
licensed business.
(c) An applicant
who holds any interest, directly or indirectly, by ownership in fee, leasehold,
mortgage, or otherwise, in the establishment, maintenance, operation, or
promotion of the sale of motor vehicle fuel at the proposed location of, or in
conjunction with, or as a part of, the proposed licensed business.
(d) An applicant who holds any interest,
directly or indirectly, through interlocking stock ownership in a corporation
or through interlocking directors in a corporation engaged in the
establishment, maintenance, operation, or promotion of the sale of motor
vehicle fuel at the proposed location of, in conjunction with, or as a part of,
the proposed licensed business.
(e)
An applicant at any location at which motor vehicle fuel is sold or offered for
sale by any person, whether or not the applicant has any interest or derives
any profit from the sale.
(4) In determining the qualifications of an
applicant for or the holder of a specially designated distributor license to
own or operate motor vehicle fuel pumps on or adjacent to the licensed premises
under the provisions of section 541(1) of 1998 PA 58, MCL 436.1541(1), the
following shall apply:
(a) The minimum
inventory required shall exclude alcoholic liquor, motor vehicle fuel, and any
merchandise acquired on a consignment basis and not less than 60% of this
inventory shall consist of goods and services which, in themselves, would
qualify the applicant or licensee for licensure under subrule (1) of this
rule.
(b) In the case of a
department store, as defined in
R
436.1001(e), the inventory
attributable to that department which qualifies the business for licensure
shall consist of not less than 60% of goods and services which, in themselves,
would qualify the business for licensure under subrule (1) of this
rule.
(c) The distance between the
motor vehicle fuel pumps and the site of payment and selection of alcoholic
liquor shall be determined by measuring from the motor vehicle fuel pump
nearest the licensed premises to that part of the licensed premises nearest the
motor vehicle fuel pumps.
(5) In a city, incorporated village, or
township that has a population of 3,000 or fewer people, the commission may, in
its discretion, waive the provisions of subrules (1), (2) and (3) of this rule
if the applicant for a license has and maintains a minimum inventory on the
premises, excluding alcoholic liquor, of not less than $12,500.00, at cost, of
the goods and services customarily marketed by approved types of businesses.
The commission shall accept the means prescribed in
R
436.1141(1) as a method for
determining the population of a city, incorporated village, or
township.
(6) In a township which
is comprised of 72 square miles or more and which has a population of 7,500 or
fewer people, the commission may waive the provisions of subrule (3) of this
rule if the applicant for a license has and maintains a minimum inventory on
the premises, excluding alcoholic liquor, of not less than $12,500.00, at cost,
of the goods and services customarily marketed by approved types of businesses.
The commission shall accept the means prescribed in
R
436.1141(1) as the method for
determining the population of a township.
(7) Subrules (1), (2), (3), (4), (5), and
(10) of this rule do not apply to the renewal of an existing specially
designated distributor license in operation before the effective date of this
rule and do not apply to a new specially designated distributor license or the
transfer of location of a specially designated distributor license
conditionally approved by the commission before the effective date of this
rule.
(8) The commission shall not
approve the transfer of location of a specially designated distributor license
outside the governmental unit for which it was issued, except upon a showing of
good cause by the applicant.
(9)
Upon a showing of good cause by the applicant, the commission may waive the
quota restrictions of
R
436.1141 if all of the following conditions are met:
(a) The applicant is in a city, incorporated
village, or township that has a population of 3,000 or fewer people. The
commission shall accept the means prescribed in
R
436.1141(1) as a method for
determining the population of a city, incorporated village, or
township.
(b) The only existing
specially designated distributor license is held in conjunction with a class A
or class B hotel license.
(c) The
commission may grant only 1 waiver of quota restrictions in a city,
incorporated village, or township.
(10) The commission shall not issue a
specially designated distributor license to an applicant who operates a
drive-in or drive-through establishment and shall not allow the applicant to
change the nature of an existing business that has a specially designated
distributor license.
(11) The
commission shall not issue a specially designated distributor license to an
applicant who operates a drive-up or walk-up window for the sale of alcoholic
liquor at the proposed location and shall not allow a person who holds a
specially designated distributor license to change the nature of the existing
licensed business to include a drive-up or walk-up window which permits the
sale of alcoholic liquor through the drive-up or walk-up window.
Notes
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