Legislative Updates: Michigan Considers ‘Social Districts’ for Public Consumption

Michigan Lawmakers Consider ‘Social Districts’ for Public Consumption

Michigan legislators are considering a bill that would extend indefinitely delivery sales of alcoholic beverages for bars and restaurants and create “social districts” in which consumers would be able to drink beer, wine or spirits in a common area outside the walls or designated patio spaces of licensed establishments, according to MLive.com.

Local governments would designate the social districts and the state Liquor Control Commission (LCC) would grant permits to licensees. Within social districts, retailers would have to serve beverages “in containers that prominently display the permittee’s trade name or logo,” according to the bill.

Additionally, bars or restaurants with patio seating would be able to expand seating or add outdoor bars without permission of the LCC or other local governing bodies. The bill would also allow on-premise retailers to purchase alcohol from off-premise retailers, rather than restricting them to purchase from wholesalers. Both exceptions would expire December 31, 2021.

Other Cities Allow Open Containers

Changes to open container laws are popping up across the country. The governing body of Needham, Massachusetts set out picnic tables in the city’s downtown district to allow people to eat meals and drink beverages, including alcohol, from neighboring restaurants.

On Monday, Atlantic City, New Jersey Mayor Marty Small Sr. announced an executive order that would permit consumption of alcoholic beverages on parts of the city’s boardwalk.

“We want to help out the people that are in business,” Small told a group of reporters gathered on the boardwalk. “We want to use our judgement and issue this executive order to help out our bars and restaurants.”

States Expand To-Go Sales

Lawmakers have extended to-go sales of alcoholic beverages from restaurants and bars in several states to give those businesses, many shut down for on-premise service for months due to the COVID-19 pandemic, an extra revenue source.

Oklahoma Gov. Kevin Stitt signed a law permitting delivery and curbside pickup of beer, wine and spirits in original containers, according to the Tulsa World. The law went into effect upon Stitt’s signing on May 21, and is permanent. Licensees are prohibited from using third-party delivery services, such as UberEats and DoorDash, from making deliveries that include alcohol.

In Tennessee, Gov. Bill Lee signed an executive order allowing bars and restaurants to continue to-go sales of alcoholic beverages, according to Fox 17 Nashville. Beverages would be required to be sold in sealed containers and must accompany the purchase of a meal.

A bill to extend to-go sales from bars and restaurants has also been proposed in the New York Senate.

Massachusetts and Parts of New York Enter Reopening Plan Phase Two

Massachusetts Gov. Charlie Baker announced the commonwealth has begun Phase Two of its reopening plan.

In the first step of Phase Two, which went into effect on Monday, June 8, restaurants, breweries, beer gardens, wineries and distilleries may resume on-premise operations if they provide food service and have outdoor seating. Those without outdoor seating can only offer takeout or delivery until the second step of Phase Two, which will begin when key public health indicators are met.

Once indoor dining resumes, customers must be seated at tables of no more than six and spaced six feet apart. Menus must be single-use, displayed or able to be opened on guests’ phones. Tables cannot be set until guests are seated; condiments will be available upon request in single-serve portions.

Breweries and beer gardens without food service must wait until Phase Four to reopen.

New York Gov. Andrew Cuomo divided the state into regions, seven of which have entered Phase Two, meaning bars and restaurants can reopen for outdoor on-premise service. Regions in Phase Two include the Capital Region, Central New York, the Finger Lakes, the Mohawk Valley, North Country, Southern Tier and Western New York. New York City, Long Island and the Mid-Hudson Region remain in Phase One.

In an email to members on Monday, New York State Brewers Association executive director Paul Leone cautioned that State Liquor Authority inspectors are visiting licensees.

“Please know they are watching and make sure you don’t risk being fined, or worse, have your license suspended,” Leone wrote.

Louisiana Lawmakers Look to Tweak Alcohol Delivery Law to Ease Restrictions

Louisiana legislators passed a bill late last month that would make it easier for third-party delivery platforms to deliver beer and wine, according to The Advocate.

Under current law, only employees of restaurants, grocery and liquor stores could deliver alcohol to consumers, which cut out third-party platforms such as Drizly, UberEats and Instacart from performing the service. These companies’ drivers are often contract workers.

Drivers would be subject to the same regulations as bartenders and servers when verifying customers’ ages, according to BossierNow.

Massachusetts Voters to Decide on Limits for Off-Premise Retail Alcohol Sales Licenses

Voters will decide the fate of an initiative put forth by gas and convenience chain Cumberland Farms that would remove the cap limiting how many beer and wine licenses off-premise retail chains can hold, according to Universal Hub.

Under current state law, chains such as Cumberland Farms, Trader Joe’s and other grocery and convenience stores can have up to nine licenses to sell beer and wine. This cap was set by an agreement between the Massachusetts Package Stores Association (MSPA), the Massachusetts Food Association, the Beer Distributors of Massachusetts and Wine and Spirits Wholesalers of Massachusetts in 2011, the MSPA’s attorney Robery Melion told Brewbound in January.

The Supreme Judicial Court rejected a lawsuit filed against the ballot initiative by the MSPA, clearing the initiative to appear on ballots in November. In the lawsuit, the MPSA challenged the constitutionality of the ballot question, claiming Cumberland Farms had included too many unrelated questions.

When they head to the polls, Bay State voters will face a multipart initiative that would:

  • Create a new class of license for food stores to sell wine and malt beverages;
  • Change number of licenses one chain can have from nine in 2020, to 12 in 2021, 15 in 2022, 18 in 2023, and remove the limit entirely in 2024;
  • Require all retailers to use barcode scanners to check IDs;
  • Hire one investigator for every 250 licenses.