The Michigan Liquor Control Commission (MLCC) was created by the Legislature in Act No. 8, P.A. of 1933 (Ex. Sess.) following the repeal of Prohibition. The introduction to the current Michigan Liquor Control Code of 1998 states that the Liquor Control Commission was created "for the control of the alcoholic beverage traffic within the state of Michigan." Under the Executive Organization Act of 1965, the Commission was designated as a Type I transfer (agency continues to perform its functions as described by statute) into the Department of Commerce. Effective May 15, 1996, through Executive Order 1996-2, the departments of Commerce and Labor along with several regulatory and licensing bureaus from the former departments of Public Health, Social Services and Mental Health merged to form the Department of Consumer & Industry Services, the department that housed the MLCC until December 2003. As of December 8th, 2003 the newly formed Department of Labor & Economic Growth took over with former Lansing Mayor, David Hollister at the helm.

When Prohibition ended in 1933, each state was able to choose whether to become a "control" state or a "license" state in terms of the sale and distribution of alcoholic beverages. Both control and license states are responsible for the licensing of businesses which sell alcoholic beverages and the enforcement of liquor laws. The control states differ in that they are all involved in some facet of the merchandising cycle of one or more types of alcohol. Unlike some other control states, however, the Michigan Liquor Control Commission does not operate "retail liquor stores" where the consumer must go to buy alcoholic beverages. In Michigan's blend of public interest and private enterprise, the Commission is responsible for ordering and buying spirits from the suppliers and selling these products to its retail licensees while private wholesalers supply these retailers with beer and wine.

Under a privatization plan implemented in January of 1997 and pursuant to the provisions of Public Act 440 of 1996, the Commission ceased its warehousing and distribution functions, which had been state operated since 1933. These functions are now carried out by authorized distribution agents (ADAs) who are certified and regulated by the Commission and who are responsible under a contractual arrangement with the suppliers of spirits to warehouse and deliver spirit products to retail licensees of the Commission.

Throughout the more than 60 years of its existence, the Commission's guiding philosophy has been to make alcoholic beverages available while regulating their sale and distribution in order to protect the rights and interests of Michigan citizens. The Commission believes this can be accomplished most effectively through selective licensing and strict enforcement. The Commission believes that the observance of Michigan's liquor laws and the rules of the MLCC is in the best interest of everyone - the public, the licensees, and the alcohol beverage industry.

The Commission is responsible for:

Being the sole wholesaler for all spirit products in the state. The MLCC's gross dollar sales were $712.7 million for the fiscal year ending September 30, 2001. Case sales were up by 27,785 cases (a .5% increase over the previous year) and the average price each case sold at was $132.52 (up 3.8% over the prior year).

The licensing of the manufacture and sale of all beer, wine, distilled spirits, and mixed spirit drinks in Michigan. The Commission annually processes more than 40,000 applications for various licenses and renewals of existing licenses. The retail license fees are distributed according to state statute with 55% of fees being earmarked for local governments. The MLCC collected over $11.8 million in retail license and transfer fees in fiscal year 2000-2001.

The enforcement of the state's liquor laws and the rules of the Commission. This is a joint effort with local and state law enforcement officers. A 55% share of the retail licensing fees collected by the MLCC is sent to the local units of government primarily for enforcement of the state's liquor laws. In FY 00-01 a total of $9,811,470 was returned to local governmental jurisdictions in Michigan.

The goal of strict enforcement is further carried out through the adjudication of all administrative liquor law violations by the Commission, whether these violations are reported by state and local police agencies or by the Commission's own enforcement agents. In FY 00-01, local law enforcement agencies submitted 1,156 violation reports and MLCC enforcement investigators submitted 2,020 reports. Selling alcohol to minors remains the most commonly written violation with NSF checks and sales to intoxicated persons distant second and third most common violations.