LANSING- Clubs that rent their facilities for wedding receptions and bar mitzvahs must stop selling alcohol to non-members or risk losing their alcohol license, state officials say.
But some lawmakers say that enforcing a little-known rule barring the sale of alcohol to non-club members threatens the very existence of the clubs.
"These clubs have been renting to the public, literally for decades, and nothing has ever been enforced," said Rep. Rick Jones, R-Grand Ledge.
Jones, with Rep. Richard Ball, R-Laingsburg, has introduced legislation that would allow clubs to sell alcohol to non-members who rent their halls.
Jones said the issue was brought to his attention by clubs in Charlotte that received a letter from the state Liquor Control Commission (LCC) telling them to stop selling alcohol to non-members that rent their facilities.
LCC officials said the law has been "on the books forever," and they've issued citations before.
LCC records show only one citation for selling alcohol to a non-member at an event in Eaton County since 2000. The American Legion in Charlotte was cited for selling alcohol to a non-member at the Wild Turkey Federation's banquet in 2003.
There were no such citations in Ingham or Clinton counties since 2000.
Ken Wozniak, director of executive services at the LCC, said frequent leadership changes at clubs may mean that an organization's current officers don't know the law.
"If you have a club that's basically been doing it for a while," Wozniak said of those with frequent changeovers, "over the years, they probably don't realize they're breaking the law."
Because of the potential turnover, the LCC decided to warn rather than cite the Charlotte clubs, Wozniak said.
Wozniak said that if clubs want to sell to non-members, "then they need to get a Class C license, just like everyone else has to." Class C licenses are the retail licenses that most bars and restaurants have.
But Jones said that forcing clubs to get Class C licenses, a long process that can cost thousands of dollars, is not a viable option and would lead to the closing of several clubs.
"In many communities in Michigan, the American Legion and VFW halls are the only facilities available," Jones said.
Calling it an issue of safety, Jones said the measure would require alcohol be sold by licensed bartenders who would be responsible for checking that patrons aren't underage or drunk.
"Whenever alcohol is used in this type of situation, it is always preferable to have a licensed bartender whose license hangs on the line," Jones said.
But the bill is currently stalled over concerns expressed by the Michigan Licensed Beverage Association that it would allow unfair competition between clubs and Class C licensees.
"The legislation would allow clubs to operate and run their banquet facilities as a private entity," said Lance Binoniemi, government affairs director at the association, which represents liquor licensees. His group doesn't officially oppose or support the legislation, but is trying to "work out" its concerns with Jones, Binoniemi said.
Jones said that although he is working with the association on a compromise, the bill addresses current alcohol safety issues and "needs to be passed so a tradition in Michigan can continue."