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The following opinion is presented on-line for informational use only and does not replace the official version. (Mich Dept of Attorney General Web Site - www.ag.state.mi.us) STATE OF MICHIGAN FRANK J. KELLEY, ATTORNEY GENERAL Opinion No. 6367 June 4, 1986 INTOXICATING LIOUORS: Consumption of alcoholic liquor by attendees in rental halls Liquor Control Commission--special license to consume alcoholic beverages on rental hall premise in cities Attendees of private parties held in unlicensed, commercial halls or facilities are not prohibited by state law from providing and consuming alcoholic liquor on the premises, provided that the commercial hall or facility does not require any additional consideration for that privilege and provided that the commercial hall or facility does not sell food. Unlicensed, nonprofit halls or facilities may permit attendees at private parties to furnish and consume their own alcoholic liquor on the premises, regardless of whether such hall or facility sells food, provided that no additional consideration is charged for the privilege. Attendees of private parties held in unlicensed rental halls located within the City of Detroit may not provide and consume alcoholic liquor at such rental halls unless a special license is first obtained from the Liquor Control Commission. Honorable Jackie Vaughn III State Senator State Capitol Lansing, MI 48909 You have requested my opinion on whether it is legal for attendees at private parties, such as family reunions, wedding receptions and dances held in rental halls, to provide and consume their own alcoholic liquor on the premises. Your question relates to a custom and practice, which has arisen in the Metropolitan Detroit area, where such parties are held. You state alcoholic liquor is not sold in any way at such parties. Your concern over the legality of such parties arises from the Liquor Control Act, MCL 436.26c; MSA 18.997(3), and certain City of Detroit ordinances. The Liquor Control Act, MCL 436.26c; MSA 18.997(3), provides: '(1) A person shall not maintain, operate, lease, or otherwise furnish to any person, any premises or place which is not licensed under this act, where the other person may engage in the drinking of alcoholic liquor for any consideration. '(2) A person shall not consume alcoholic liquor in a commercial establishment selling food if the commercial establishment is not licensed under this act. A person owning, operating, or leasing a commercial establishment selling food which is not licensed under this act shall not allow the consumption of alcoholic liquor on its premises. '(3) This section shall not apply to any hotel or any licensee under this act. '(4) This section shall not be construed to repeal or amend section 26b. '(5) As used in this section, 'consideration' includes any fee, cover charge, the storage of alcoholic liquor, the sale of food, ice, mixers, or other liquids used with alcoholic liquor drinks or the furnishing of glassware or other containers for use in the consumption of alcoholic liquor in conjunction with the sale of food.' The effect of this statute on rental halls was exhaustively considered in OAG, 1981-1982, No 5963, p 331 (August 20, 1981), which concluded: (1) Consumption of alcoholic beverages in every commercial establishment selling food that is not licensed by the Michigan Liquor Control Commission, including catering halls which sell and serve food for profit, is prohibited; (2) Consumption of alcoholic beverages in rented halls of nonprofit organizations where food is served and no additional payment is exacted for the food because the patron brings his/her own alcoholic beverage to be consumed with the meal, is not prohibited. MCL 436.26c; MSA 18.997(3), makes it clear that regardless of whether the organization is for profit or nonprofit, it may not lease, rent, or otherwise furnish a hall where the lessee or tenant may engage in drinking alcoholic liquor for any consideration. Thus, pursuant to this statute, the lessor may not charge an increased fee or cover charge simply because the lessee or tenant intends to engage in the drinking of alcoholic liquor during his tenancy. Neither may either party to the rental contract require the other to store alcoholic liquor as partial consideration for the contract. The lessor may not charge an increased fee for the sale of food, provide ice, mixers, or other liquids used with alcoholic liquor drinks, or furnish glassware or other containers for use in the consumption of alcoholic liquor in conjunction with the sale of food, as consideration or partial consideration for the rental fee or lease payments received. It should be noted that MCL 436.26c(3); MSA 18.997(3)(3), specifically exempts hotels and licensees from that section's provisions. It is my opinion, therefore, that attendees of private parties held in unlicensed, commercial halls or facilities are not prohibited by state law from providing and consuming their own alcoholic liquor on the rental hall premises, provided that the commercial facility does not require any additional consideration for that privilege and provided that the commercial facility does not sell food. It is my further opinion that unlicensed, nonprofit halls or facilities may permit attendees at private parties to furnish and consume their own alcoholic liquor on the premises, regardless of whether such hall or facility sells food, provided that no additional consideration is charged for the privilege. It is noted that the ordinances of the political subdivision having jurisdiction should be reviewed to determine whether restrictions on the consumption of alcoholic liquor in rented halls have been imposed, which are not in conflict with state law. The court, in Bundo v City of Walled Lake, 395 Mich 679, 699-700; 238 NW2d 154 (1976), quoting from Johnson v Liquor Control Commission, 266 Mich 682, 685; 254 NW 557 (1934), stated: "The very nature of the liquor business is such that local communities, as a matter of policy, should be permitted to regulate the traffic within their own bounds in the proper exercise of their police powers, subject to the larger control of the liquor commission as to those matters wherein the commission is given exclusive powers by the legislature. While the legislature, as a general rule, cannot delegate its legislative powers, it may confer upon municipal corporations the powers of local government, particularly in regard to local taxation and police regulations. 1 Cooley's Constitutional Limitations (8th ed), p 389." The Bundo court further stated: '[W]e reaffirm a principle recognized early in this Court's history but subsequently lost in later opinions, that principle being that the power of the local communities to control alcoholic beverage traffic is extremely broad. . . .' 395 Mich, 700. Further, home rule cities, such as the City of Detroit, have broad police powers by authority of the home rule cities act, MCL 117.1 et seq; MSA 5.2071 et seq, to regulate the manner and circumstances under which alcoholic beverages are dispensed subject to the authority of the Liquor Control Commission only when a conflict exists. Tally v Detroit, 54 Mich App 328, 334; 220 NW2d 778 (1974), on reh aff'd in part, rev'd in part, 58 Mich App 261; 227 NW2d 214 (1975). Thus, it is necessary to review Detroit City Code, Chapter 46, which regulates rental halls, to answer your question completely. Detroit City Code, Ch 46, art 1, Sec. 46-1-1 defines rental halls as follows: 'Rental hall shall mean any enclosed hall, building or portion of any building regularly available for rental, lease or loan for the purpose of public assembly, banquets, luncheons, entertainments or sports events, whether or not such public assemblies are public or private or an admission fee is charged.' (Emphasis in original.) Detroit City Code, Ch 46, art 2, Sec. 46-2-1, requires licensure of rental halls. Detroit City Code, Ch 46, art 1, Sec. 46-1-6, provides in pertinent part: 'No licensee under this chapter, by himself, directly or indirectly, or by any servant, agent or employee, shall: (10) Permit the possession or use of any alcoholic liquor on the licensed premises, nor shall the licensed premises be accessible in any way with any place where alcoholic liquor is kept, sold, distributed or given away. This prohibition shall not apply while a state liquor control commission special beer and wine license is in effect at the licensed premises.' Detroit City Code, Ch 46, art 1, Sec. 46-1-6(10), expressly prohibits the possession or use of alcoholic liquor in rental halls unless a Liquor Control Commission special license (1) is in effect. It is my opinion, therefore, that attendees of private parties held in unlicensed rental halls within the City of Detroit may not provide and consume their own alcoholic liquor at such rental halls, unless a special license is first obtained from the Liquor Control Commission. Frank J. Kelley Attorney General (1)
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