Brewer License

The MLCC Commissioners are appointed by the Governor, with the advice and consent of the Michigan Senate. Of the five members, no more than three can be of the same political party. The Commissioners' terms of office are for four years with rotating expiration dates. Two of the Commissioners (one Democrat and one Republican) serve as Hearing Commissioners and conduct hearings on violations of the Michigan Liquor Control Code of 1998 (Code) and Administrative Rules of the MLCC (Rules). The remaining three Commissioners are designated as the Administrative Commissioners and are responsible for administering the provisions of the Code and Rules in the areas of licensing, enforcement, purchasing, merchandising, and distribution.

A. NAME OF LICENSE OR APPROVAL: 

Brewer License

B. STATUTORY AUTHORITY: 

Constitution of Michigan of 1963 (Excerpt)

Michigan Liquor Control Code of 1998, Public Act 58 of 1998, as amended 

C. APPLICABLE REGULATION: 

Michigan Administrative Code Implemented by the Michigan Liquor Control Commission 

General Rules (R 436.1001 - 436.1063)

Licensing Qualifications, (R 436.1101 - 436.1151)

Beer (R 436.1601 - R 436.1659)

Hearings and Appeals Practice Rules (R 436.1901 - 436.1935)

D. SUMMARY OF LICENSE/APPROVAL PROCESS: 

 1.  Applicability (activities that require the license)

A Brewer is a person located in Michigan that is licensed to manufacture and sell beer produced by it to licensed Michigan wholesalers who may resell it to licensed Michigan retailers.

A Brewer License is required for an establishment located in Michigan to manufacture an unlimited quantity of beer and sell the beer producted by it to licensed Michigan wholesalers who may resell it to licensed Michigan retailers. The holder of a Brewer License may not sell beer directly to licensed Michigan retailers.

The holder of a Brewer License that does not hold a Microbrewer License and produces under 200,000 barrels of beer in a calendar year, may sell its beer to consumers for on-premises consumption at one and only one brewing facility in Michigan.

 2.  Pre-Application Requirements

An applicant for a Michigan Brewer License must obtain a Brewer's Notice issued by the Alcohol and Tobacco Tax and Trade Bureau (TTB). Although the Brewer's Notice does not have to be submitted with the initial application, verification of the issuance of the Brewer's Notice must be provided to the MLCC prior to the issuance of a Michigan Brewer License. The applicaiton forms for the Brewer's Notice may be obtained from the TTB web site.

3.  Application Submission Requirements

Completed and executed Application for New Licenses or Application of Buyers for Transfer of Ownership or Interest in License (LC-687) in the name of the applicant individual, applicant corporation, applicant limited liability company, applicant general partner, and/or applicant general partner of a limited partnership.

Completed and executed Individual Stockholder, Limited Liability Member or Corporate Stockholder Questionnaire (LC-621) for each individual, corporation, and/or limited liability company that is a stockholder of the applicant corporation or member of the applicant limited liability company holding 10% or more interest in the applicant corporation or applicant limited liability company.

Completed and executed Limited Partners, Stockholders, or Members Statement (LC-38) form for any individual, corporation, limited liabilitiy company, general partner, or limited partner holding less than 10% interest in an applicant corporation, applicant limited liability company or applicant limited partnership.

Copy of filed Articles of Incorporation for an applicant corporation and filed Articles of Organization and Operating Agreement for an applicant limited liability company and any amendments. If the corporation or limited liability is incorporated or organized outside the state of Michigan, a Certificate of Good Standing from the state of incorporation and a copy of the filed Application for Certificate of Authority to Transact Business or Conduct Affairs in Michigan (form BCS/CD-560) must be submitted.

Copy of filed Certificate of Limited Partnership and copy of Limited Partnership agreement for an applicant limited partnership. If the limited partnership is formed outside the state of Michigan, a copy of the filed Application for Certificate of Authority to Transact Business in Michigan (form BCS/CD-4110 must be submitted.

Copy of Lease, Option to Lease, Purchase Agreement, or Warranty Deed for the establishment to be licensed.

Inspection fees of $70.00 for each new license type requested and/or each new license type being transferred must be submitted. Please make your check or money order payable to the STATE OF MICHIGAN.

4.  Procedures and Time-Frame for Obtaining Permit or Approval

The application is submitted to the Michigan Liquor Control Commission, 7150 Harris Drive, PO Box 30005, Lansing, Michigan 48909. Upon receipt of the application, the MLCC Licensing Division reviews the forms, filings, and agreements for the applicant's specific type of business ownership, real estate documents (copy of lease, option to lease, purchase agreement, land contract, or warranty deed), and a non-refundable inspection fees of $70 for each license requested. The application is generally reviewed within 5 business days from when it was received. Based upon the review, the MLCC Licensing Divsion forwards a Notice of Deficiency to the applicant indicating additional forms, documents, and/or fees, if any, required to proceed with the application. No further action is taken on the application until all the required forms, documents, and fees are received in the MLCC Lansing office.

Upon receipt of all required forms, documents, and fees the MLCC Licensing Division authorizes the application for investigation. The application file is generally authorized for investigation within 5 to 7 business days after all the required forms, documents, and fees are received. The application file is then forwarded to the MLCC Enforcement Division District Office where it is assigned to an Enforcement investigator. Upon receipt of the application file, the investigator contacts the applicant and advises them of the documentation necessary to be provided for review. The Enforcement investigator generally contacts the applicant within 3 to 5 business days from the receipt of the assigned application file. When the applicant has gathered the requested documentation, the Enforcement investigator is contacted to schedule an appointment to conduct the investigation. The Enforcement investigator also releases forms and fingerprint cards to the local law enforcement agency and a resolution form to the local governing body. The local law enforcement agency's investigation is independent of the MLCC investigation. It is the responsibility of the applicant to follow-up with the local law enforcement agency and the local governing body to ensure compliance with all local requirements. The recommendations of the local law enforcement agency and the local legislative body are forwarded to the Lansing office of the MLCC by the respective agencies.

The investigation conducted by the MLCC Enforcement investigator covers a variety of areas including but not limited to business ownership structure; background of individuals; projected cost of the project/transaction; source of finances, including source of any money lender's finances; present ownership verification; and physical inspection of the establishment, if the physical premises is built and available for inspection. The MLCC Enforcement investigator also determines if the proposed licensed establishment is located within a church or school building.

If the MLCC Enforcement investigator determines that the proposed licensed location of an applicant is within 500 feet of a church or school building, a memorandum is prepared by the investigator and forwarded to the MLCC Licensing Division. The MLCC Enforcement investigator continues with the investigation.

Upon receipt of the memorandum from the MLCC Enforcement investigator, the MLCC Licensing Division notifies the clergyman of the church or the superintendent of the school, via certified mail, of the pending application of the new license to sell (which includes furnishing or giving away)alcoholic liquor for consumption on the premises or the transfer of location of an existing license to sell alcoholic liquor for consumption on the premises to the new proposed location. If the church or school objects to the issuance or transfer of location of the license, then the governing body of the church or school , by resolution, shall file the specific written objections with the Lansing office of the MLCC withih 15 days of receipt of notification, unless additional time is granted by the MLCC.

Upon completion of the investigation, the MLCC Enforcement investigator will prepare and submit a preliminary investigation report to the MLCC Enforcement supervisor for review. Upon review and determination by the Enforcement supervisor that the investigation report is complete, the application file is returned to the MLCC Licensing Division in Lansing for further processing.

Upon receipt of the investigation report from the MLCC Enforcement Division, the Police Investigation Report and fingerprint cards, if required, from the local law enforcement agency, and the Resolution from the local legislative body, the completed application file is prepared for review and consideration by the MLCC Administrative Commissioners at a regularly scheduled Licensing Meeting. The MLCC Administrative Commissioners review the information provided in the application files to determine whether the application should be approved, denied, or held for further information. If the local legislative body did not recommend approval of the application or an objection to the application is received from a church or school located within 500 feet of the proposed licensed location, the application must be denied by the MLCC Administrative Commissioners. The MLCC Administrative Commissioners advise the Licensing Division of their decision at the regularly scheduled Licensing Meeting.

The MLCC Licensing Division then prepares an Order based upon the decision of the MLCC Administrative Commissioners. The applicant is advised of the decisions of the MLCC Administrative Commissioners as follows:

• If approved a Fee Statement letter or Checklist is prepared requesting the forms, documents and fees required to complete the application.

• If denied a Notice of Denial together with the MLCC Order advising of the basis of the denial and the right to an appeal hearing is sent to the applicant.

The applicant, if approved, then completes and returns all requested forms, documents and fees to the MLCC Lansing office. This includes proceeding with plans to purchase or lease property, complete the purchase of the existing Class C licensed business, and/or complete any required inspections of the proposed licensed establishment by the MLCC Enforcement Division, the local law enforcement agency, and/or the local governmental body.

The applicant, if denied, determines whether to request an appeal of the denial of the licensing application. The request for a hearing must be received in the MLCC Lansing office within 20 days from the date of the mailing of the decision of the denial. Appeal hearings of licensing decisions are generally held in the MLCC Lansing office on Tuesdays and in the MLCC Farmington office on Thursdays.

 5.  Operational Requirements

The license must be renewed each year by May 1. The license is effective May 1 through April 30. The license is generally renewed upon application and payment of the renewal fee, unless there is a hold on the renewal of the license for violations, objection to renewal by the Michigan Department of Treasury, dissolution of the licensed corporation, and other such things which would prevent the timely renewal of the license. If the reason for the hold on the renewal of the license is not resolved by May 1, the sale (which includes furnishing and giving away) and manufacutre of alcoholic beverages must cease until the reason for the hold is resolved and the license is renewed. The license renewal fee is the same as the license fee. License or renewal fees are not prorated.

A Michigan licensed Brewer must pay Michigan beer excise tax of $6.30 per barrel for all beer sold in this state. Taxes are collected on a monthly basis or on a biweekly basis if your monthly tax liability averages $50,000 or more.

A Michigan licensed Brewer must provide and maintain a bond executed by an surety company authorized to do business in Michigan in the amount of $1,000 for the first year of licensure for the faithful performance of the conditions of the license issued and compliance with the Liquor Control Code of 1998 on the Surety Bond form (LC-MW-816) provided by the MLCC. In subsequent years the Brewer must maintain a bond executed by a surety company authorized to do business in Michigan in an amount equal to 1/12th of the total excise taxes paid to the State in the last calendar year or $1,000, whichever is greater.

A licensee must maintain proof of financial responsiblity on file with the MLCC in the amount of at least $50,000 for security for liability (Dram Shop liability) for an individual who suffers damage or who is personally injured by a person under the age of 21 or a visibly intoxicated person by reason of the unlawful selling, giving or furnishing of alcoholic liquor to the person under 21 years of age or the visisbly intoxicated person by filing the Proof of Financial Responsibility form (LC-95)provided by the MLCC. The method most often used by licensees to meet this requirement is the purchase of a liquor liability insurance policy worth at least $50,000. Other acceptable means of complying with this requirement include depositing $50,000 in cash with the MLCC or obtaining an irrevocable letter of credit which is pledged to the State of Michigan as first claimant.

The beer manufactured by the Michigan licensed Brewer must be marked, branded, and labeled in accordance with the Code of Federal Regulations (C.F.R.) in 27 C.F.R., part 7, subpart C. The beer manufacturered by the Brewer must receive a Michigan registration number from the MLCC before the beer is sold in Michigan. The MLCC may disapprove any label submitted for registration that is deemed to promote violence, racism, sexism, intemperance, or intoxication or determined to be detrimental to the health, welfare, and safety of the general public. A licensee may register beer products online through the Beer/Mixed Spirit Drinks/Wine Product Registrationon the MLCC web site through password access provided at the time of issuance of the license. There is no fee for Michigan label registration.

Beer sold in containers of 1 gallon or less must comply with Beverage Containers Initiated Law of 1976by requiring a deposit of not less than 10 cents per container. Containers must be clearly labeled with the name of this state (MI or MICH) and the deposit amount.

A Brewer shall collect a barrel deposit of $30.00 for a barrel, 1/2 barrel, and 1/4 barrel of beer sold to wholesalers. A cash refund of $30.00 for a barrel, 1/2 barrel, and 1/4 barrel of beer shall be made to a licensee who has made the deposit and returned the barrels for refund.

A Brewer must grant an exclusive sales territory to each of its licensed Michigan wholesalers for the brand or brands to be distributed and shall not fail to provide each wholesaler with a written agreement which contains, in total, the agreement with each wholesaler and s specific sales territory.

A Brewer is prohibited from selling beer produced by it direclty to licensed Michigan retail licensees. All sales to Michigan retail licensees must be made through Michigan licensed wholesalers. All sales to Michigan licensed wholesalers must be for cash only.

A licensee is prohibited from selling alcoholic beverages between the hours of 2:00 a.m. and 7:00 a.m. of any day, except January 1, and 2:00 a.m. and 12 noon on Sundays. The sale of spirits or mixed spirit drinks is allowed between noon and midnight on Sundays only with a Sunday Sales Permit. Pursuant to the Michigan Liquor Control Code of 1998, 12 Noon on Sunday is considered 12 Noon on Sunday, EST, for any licensee located in the central time zone. A separate Sunday Sales Permit must be obtained by the licensee from the MLCC to allow the sale of spirits and mixed spirit drinks between noon and midnight on Sundays. The MLCC will not issue the Sunday Sales Permit if the county government has not approved Sunday sales or if the local government has prohibited the sale of spirits or mixed spirit drinks on Sunday. Beer and wine may be sold after noon on Sundays without a Sunday Sales Permit unless prohibited by the county or local government.

A licensee must obtain approval from the MLCC to transfer the license or an interest in the license from one person to another. This includes the transfer or issuance of stock in a corporation; the transfer or assignment of a membership interest in limited libility company; and/or the transfer or assignment of a partnership interest, including the adding or dropping of partners.

A privately held licensed corporation must immediately notify the MLCC, in writing, of changes made in its officers or directors or of amendments made to the articles of incorporation.

A limited liability company shall immediately notify the MLCC, in writing, of changes made in its managers or assigneees or of amendments made to the articles of organiztion, operating agreement, or by-laws.

A licensee shall comply with all state and local building, plumbing, zoning, sanitation, and health laws, rules, and ordinances.

A licensee shall maintain accurate records of purchases and sales of alcoholic beverages for a 4-year period of time. A licensee shall maintain records sufficient to determine ownership of the licensed business and to whom the profits or losses of the business accrue for a 4-year period of time. A Brewer shall maintain complete records of expenses of salesmen and representatives for a 4-year period of time.

A Brewer shall furnish a wholesaler with two (2) copies of each invoice at the time of the sale or delivery of the beer

A licensee shall make the licensed premises available for inspection and search by an MLCC investigator or law enforcement officer during regular business hours or when the licensed premises are occupied by the license or a clerk, servant, agent, or employee of the licensee.

A licensee shall sign and frame under transparent material the license(s) and permit document issued by the MLCC. A licensee shall prominently display the license(s) and permit document in the licensed premises.

A licensee shall not directly, individually, or by a clerk, agent, or servant sell, furnish, or give alcoholic beverages to a person under the age of 21.

A licensee shall not directly or indirectly, individually, or by a clerk, agent, or servant sell, furnish, or give alcoholic beverages or to a person who is visibly intoxicated.

A licensee shall not obtain the license for the use and benefit of a person whose name does not apear on the license.

A licensee shall not lease, sell, or tranfer possession of the licensed premises without the prior written approval of the MLCC.

A licensee shall not contract for the services of another person to operate the food portion of the licensed business without the prior written approval of the MLCC.

A license shall not add or drop any space from the physical structure of the licensed premises without prior approval of the MLCC.

A licensee shall not close the licensed business for more than 30 days without returning the license to the Lansing office of the MLCC to be placed into escrow.

A licensee shall not participate in or sponsor any contest that requires the use or consumption of alcoholic beverages or features alcoholic beverages as a prize in connection with a contest.

A licensee shall not allow contests in which the licensee or any person gives away anthing of value over $250 per day, except upon written order of the MLCC.

A licensee or the clerk, servant, agent, or employee of the licensee shall not make payment to the MLCC or the State of Michigan by any means that will be dishonored by a financial institution for lack of sufficient funds or for any other reason.

6.  Fees

$70 Inspection fee for each license requested.

$50 initial license fee.

$50 renewal fee each year by May 1 for manufacturers of less than 15,000 barrels of beer during the preceding calendar year.

$50 per 1,000 barrels or fraction of barrel renewal fee each year by May 1 for manufacturers of 15,000 barrels or more of beer during the preceding calendar year, with a maximum fee of $1,000.

7.  Appeal Process

If a license application is denied, the aggreived license applicant may request an appeal hearing. This request must be made in writing to the Lansing office of the MLCC at 7150 Harris Drive, PO Box 30005, Lansing, MI 48909 within 20 days from the date of the mailing of the decision of denial.

The Hearings and Appeals Section of the Executive Services Division will notify the applicant of the day, date, and time of the scheduled appeal hearing. Appeal hearings of licensing decisions are generally held in the MLCC Lansing office on Tuesdays and in the MLCC Farmington office on Thursdays.

 8.  Public Input Opportunities

The public has an opportunity for input at the local level when the application is considered by the city, village or township board.

The MLCC also considers the opinions of the local residents at the time of review and consideration of the completed application.

E. Contact Information: 

Contact Us 

• Creation/Revision Date: August 27, 2010