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Michigan Liquor Law Blog

Up-to-date information on liquor and the law in Michigan

Good News for the Fuel Pumps!

Stariha & Brower, PLC are pleased to announce a recent Circuit Court decision in favor of our client.

Licensees (or hopeful licensees) with fuel pumps at their location know how difficult it can be to meet the requirements of the so-called “Meijer Bill” (MCL 436.1541).  For a location to meet the requirement of 436.1541(1)(a)(ii), it is necessary to maintain $250,000 in inventory – and that inventory must be “those goods and services customarily marketed by approved types of businesses.”

In the past, we found that tobacco products (rolling papers) worked well for locations with limited space for inventory.  Recently, however, we tried something new – Postage Stamps.  Unlike tobacco products, Forever Postage Stamps will increase in value as postage prices increase.

Initially, MLCC denied the request, finding that postage stamps were not qualifying inventory.  On appeal to the Circuit Court, we successfully demonstrated that such postage stamps are, in fact, qualifying inventory.  As the Court determined, “postage stamps do constitute goods customarily marketed by an approved type business . . .”

While this decision does not eliminate the problems caused by the Meijer Bill, it does provide a new avenue for hopeful licensees seeking to obtain an SDD or SDM without building an addition in which to store their $250,000 of inventory.

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5 Comments

  1. Change is in the air at MLCC « Michigan Liquor Law
    January 20, 2012

    […] reasonable to expect changes to some of the more frequently maligned rules (the half mile rule, the gas pump rule, […]

  2. We Are All in This Together: Working with MLCC « Michigan Liquor Law
    January 27, 2012

    […] keep a “we are all in this together” mindset in all of your interactions with MLCC.  Suing MLCC is always an option of last resort, only to be considered when a mutual effort to resolve the […]

  3. Clarification on Possible Changes to the Michigan Liquor Control Code « Michigan Liquor Law
    February 22, 2012

    […] talk of eradicating the SDD quota. 2.) The potential for reducing the inventory requirement of MCL 436.1541(1) (Meijer Bill/Fuel Pumps) has been discussed.  No clarification was made as to whether or not the discussions led to […]

  4. The ORR Recommendations – (Finally) Bringing Michigan Liquor Law into the 21st Century « Michigan Liquor Law
    July 9, 2012

    […] Reduce the fuel pump inventory threshold to $50,000. —  We believe that the current law is arbitrary and, frankly, absurd.  While we feel that the $50,000 is still an arbitrarily high number, it is sufficiently low to eliminate the bar that currently prohibits many gas station owners from obtaining licensure.  Our only concern is what to do with all of the postage stamps? […]

  5. Brief updates on Licensing, Permits, the ORR, and the MLBA « Michigan Liquor Law
    September 6, 2012

    […] point was recently hit home for us in a situation involving gas station inventory (something we like to believe we are well versed in).  A form of inventory that has historically been used to satisfy the inventory requirement […]

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