Information on New Third Party Facilitator Service License and Direct Shipping of Wine by Specially Designated Merchant Licensees

Public Act 520 of 2016 amended MCL 436.1203 to create a new Third Party Facilitator Service license and to allow Specially Designated Merchant (SDM) licensees to ship wine directly to consumers.

These changes become effective March 29, 2017


Third Party Facilitator Service License
Specially Designated Merchant (SDM) or Specially Designated Distributor (SDD) licensees may use a third party facilitator service that holds a Third Party Facilitator Service (TPFS) license to facilitate the sale and delivery of beer, wine, and spirits by means of the internet or a mobile application operated by the TPFS licensee.  Sales of beer, wine, or spirits by a SDM or SDD licensee facilitated through a TPFS licensee’s internet-based or mobile application service may be delivered under the following conditions:

  1. The SDM or SDD licensee or its employee may deliver the beer, wine, or spirits to the home or designated location of a consumer.  The licensee or its employee making the delivery must verify that the person receiving the delivery is at least 21 years of age.  If the licensee or its employee intends to provide service to consumers, the licensee or its employee must have received alcohol server training through a server training program approved by the Commission.
  2. The TPFS licensee may deliver beer, wine, or spirits on behalf of a SDM or SDD licensee to the home or designated location of a consumer.  The licensee must verify that the person receiving the delivery is at least 21 years of age.  The SDM or SDD licensee or the consumer pays the fees associated with the delivery of the beer, wine, or spirits.

A manufacturer, an outstate seller of beer, wine, or mixed spirit drinks, a wholesaler, or warehouse cannot have direct or indirect interest in a Third Party Facilitator Service license and cannot aid or assist a Third Party Facilitator Service licensee by gift, loan of money or property, or other valuable thing as defined in MCL 436.1609.

An SDM or SDD licensee that establishes its own internet page or mobile application may sell and deliver beer, wine, or spirits to the home or designated location of a consumer via an employee without an additional license, or without using a third party delivery service, if the SDM or SDD delivers the alcohol as set forth under MCL 436.1203(12) and (14).

You may read more information on applying for a Third Party Facilitator Service license on the Commission’s Retail Licensing frequently asked questions webpage or by clicking this linkYou may also download the Third Party Facilitator Service License Application (LCC-112) on the Commission’s Retail Licensing forms webpage or by clicking this link.

 

Direct Shipping of Wine by Specially Designated Merchant Licensees
A Specially Designated Merchant (SDM) licensee located in Michigan may use a common carrier to ship wine directly to a consumer in Michigan.  A SDM licensee must comply with all of the following requirements if it chooses to ship wine through a common carrier:

  1. Pay any applicable taxes to the Commission and to the Michigan Department of Treasury, as directed by the Department of Treasury.  The licensee shall furnish an affidavit to the Department of Treasury to verify payment, if requested.
  1. Comply with all Michigan laws, including, but not limited, the prohibition on sales to minors.
  1. Verify the age of the individual placing the order by obtaining from him or her a copy of a photo identification issued by Michigan, another state, or the federal government or by using an identification verification service.  The person receiving and accepting the order on behalf of the SDM licensee shall record the name, address, date of birth, and telephone number of the individual placing the order on the order form or other verifiable record of a type and generated in a manner approved by the Commission and provide a duplicate to the Commission.
  1. On request of the Commission, make available to the Commission any document used to verify the age of the individual ordering or receiving the wine from the retailer.
  1. Stamp, print, or label on the outside of the shipping container that the package "Contains Alcohol. Must be delivered to a person 21 years of age or older". The recipient at the time of the delivery shall provide identification verifying his or her age and sign for the delivery.
  1. Place a label on the top panel of the shipping container containing the name and address of the individual placing the order and the name of the designated recipient if different from the name of the individual placing the order.

A Specially Designated Merchant licensee that complies with the provisions listed above may ship wine directly to a consumer through a common carrier without obtaining any additional approval from the Commission.

 

Reporting Requirements
Third Party Facilitator Service licensees that deliver beer, wine, or spirits and common carriers that deliver wine for Specially Designated Merchant licensees must submit a quarterly report to the Commission that includes the following information about each deliver made in the preceding calendar quarter:

  1. The name and business address of the person that ships the alcohol product.
  1. The name and address of the recipient of the alcohol product.
  1. The weight of alcohol product delivered to a consignee.
  1. The date of the delivery.

A TPFS licensee or common carrier may submit its own quarterly report that contains the information required above or use the following quarterly reporting forms approved by the Commission: