Brang Inc v. Liquor Control Commission

910 N.W.2d 309, 320 Mich. App. 652
CourtMichigan Court of Appeals
DecidedAugust 10, 2017
Docket333007
StatusPublished
Cited by8 cases

This text of 910 N.W.2d 309 (Brang Inc v. Liquor Control Commission) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brang Inc v. Liquor Control Commission, 910 N.W.2d 309, 320 Mich. App. 652 (Mich. Ct. App. 2017).

Opinion

Murphy, J.

*654 This appeal concerns the enforcement of Mich. Admin. Code, R. 436.1011(6)(e), which precludes an establishment licensed by defendant, the Liquor Control Commission (LCC), from "[a]llow[ing] narcotics paraphernalia to be used, stored, exchanged, or sold on the licensed premises." The question posed to us involves the proper identification of products or merchandise that fall under the umbrella of "narcotics paraphernalia" as that term is employed in Rule 436.1011(6)(e). Plaintiff, Brang, Inc. (the store) appeals by leave granted 1 the circuit court's order affirming the LCC's affirmation of a determination by an LCC hearing commissioner that recovered items that had been displayed and on sale in the store constituted narcotics paraphernalia in violation of Rule 436.1011(6)(e). We *655 hold that Rule 436.1011(6)(e) is unconstitutionally vague with respect to the meaning of "narcotics paraphernalia." Accordingly, we reverse and remand for further proceedings.

I. BACKGROUND

On September 16, 2013, the LCC issued a complaint against the store alleging that on August 8, 2013, LCC investigators had discovered numerous items in the store, available for purchase by customers, that the LCC characterized as narcotics paraphernalia under and in violation of *311 Rule 436.1011(6)(e). 2 A violation hearing before an LCC hearing commissioner was held on December 11, 2013, and the two LCC investigators who conducted the inspection of the store on August 8, 2013, testified on behalf of the LCC. On the basis of *656 their experience and under the totality of the circumstances-including product placement in glass cases, price, function, design, size, and location in conjunction with other items-the investigators opined that the merchandise at issue constituted narcotics paraphernalia. According to the investigators, stickers indicating that the items were for tobacco use only did not mean that the merchandise was not narcotics paraphernalia. The investigators seized the products, packaged them up, and transported them back to an LCC district office.

One of the store's owners testified that the items were merely tobacco accessories and that they were kept in glass cases because they were expensive and because some of the products were very small and susceptible to easy shoplifting if not protected by encasement. He further indicated that more than 100 pounds of loose tobacco was on sale in the store, including some in the glass cases. The owner also testified that the township liquor inspector, who was unaffiliated with the LCC, along with local law enforcement, had often been in the store and voiced no concerns about the merchandise now being described as narcotics paraphernalia. The owner claimed that the items were not for use in association with narcotics. A document, described as an LCC interpretive statement, which was accessible on the LCC's website, was admitted into evidence at the hearing. The interpretive statement, before setting forth a nonexhaustive list of items that could be characterized as narcotics paraphernalia, provided that "[n]arcotics paraphernalia can best be described as any equipment, product, or materials used in concealing, producing, processing, preparing, injecting, ingesting, inhaling or otherwise introducing into the human body controlled substances, which are unlawful under state, federal or *657 local law." The interpretive statement's references to some of the listed items, e.g., water pipes and pipe screens, contain exceptions when the items are sold in conjunction with loose tobacco or tobacco products.

On January 10, 2014, the LCC commissioner issued an order finding that the evidence substantiated all 27 paragraphs of allegations, or charges, contained in the *312 LCC complaint against the store. The commissioner imposed a fine of $50 for each of the 27 charges ($1,350 total), ordered a one-day suspension (Saturday/weekday) of the store's liquor license, and directed that the seized items be disposed of in accordance with the law. The store then requested a violation appeal hearing, and a three-member LCC Appeal Board (the Board) granted the request. A violation appeal hearing was conducted over two days on September 9 and December 9, 2014. The Board remanded the case back to the hearing commissioner, indicating that it had concerns about whether the merchandise constituted narcotics paraphernalia in light of the evidence, the developments in the law regarding medical marijuana under the Michigan Medical Marihuana Act (MMMA), MCL 333.26421 et seq ., and the definition of "drug paraphernalia" under the Public Health Code (PHC), MCL 333.1101 et seq. 3 *658 On remand on March 25, 2015, another hearing was conducted by the hearing commissioner, and the parties agreed to incorporate the record from the prior evidentiary hearing. In addition, the LCC presented the testimony of one of its investigators who had not previously testified and who, having worked as a police officer, had gained extensive knowledge and experience regarding narcotics and narcotics paraphernalia. He indicated that he had never smoked tobacco and had no specialized training with respect to tobacco use. However, the investigator opined on the basis of his background, training, and experience and under a totality of the circumstances, that all the seized merchandise, except for the rolling papers, was primarily, if not exclusively, used in association with narcotics, not tobacco, and constituted narcotics paraphernalia. The hearing commissioner concluded that the evidence substantiated 25 of the 27 charges in the complaint, dismissing the two charges pertaining to rolling papers. He again imposed a $50 fine for each violation and a one-day license suspension, and he directed the disposal of the seized items.

Once again, an appeal to the Board ensued, and this time the Board, in a 2-1 ruling, affirmed the hearing commissioner's decision following a hearing on October 6, 2015, concluding that he did not err with respect to his findings of fact and conclusions of law. The store appealed in the circuit court, and the court affirmed the Board's ruling, stating that the seized merchandise met "the plain language definition of drug paraphernalia....." The store now appeals by leave granted.

*659 II. THE CREATION AND AUTHORITY OF THE LCC

The Legislature "may by law establish a liquor control commission which, subject to *313 statutory limitations, shall exercise complete control of the alcoholic beverage traffic within this state, including the retail sales thereof." Const. 1963, art. 4, § 40.

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Bluebook (online)
910 N.W.2d 309, 320 Mich. App. 652, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brang-inc-v-liquor-control-commission-michctapp-2017.