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The Michigan
Liquor Control Commission (MLCC) exercises complete control of the
alcoholic beverage traffic in Michigan.
The MLCC Licensing Division is responsible for processing retail, wholesale and
manufacturing license applications and issuing those licenses approved by the
MLCC Commissioners. The MLCC Licensing Division is also responsible for
processing the subsequent renewals of the retail, wholesale, and manufacturing
licenses.
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.
New! Renewals
for these tasks are accessible through the Michigan Business One Stop portal.
A. NAME OF LICENSE OR APPROVAL:
Industrial Manufacturer 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)
Spirits (R 436.1801 - R 436.1829)
Hearings and Appeals Practice Rules (R 436.1901 -
436.1935)
D. SUMMARY OF LICENSE/APPROVAL PROCESS:
1.
Applicability (activities that require the license)
An Industrial Manufacturer License is required to
purchase alcohol (grain alcohol) and bulk alcoholic liquor (beer, wine, or
spirits) for exclusive use in manufacturing products for non-beverage purposes
in Michigan.
The Industrial Manufacturer License is issued to companies that manufacture
items such as flavoring extracts, vinegar, perfumes, herbal products, and other
non-beverage products that require alcohol or alcoholic liquor in the
production process.
All alcohol and bulk alcoholic liquor must be purchased
from a Seller of Alcohol licensed in Michigan
and must be purchased tax paid.
2.
Pre-Application Requirements
None
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 liability 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.
An inspection fee of $70.00 for each new license type
requested is required prior to authorization of the field investigation. 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 Division 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. 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 to ensure compliance with all local requirements. The local law
enforcement agency forwards its recommendations directly to the Lansing office of the
MLCC.
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.
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, and the Police Investigation Report and fingerprint
cards, if required, from the local law enforcement agency, 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. 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:
o
If approved a Fee Statement
letter or Checklist is prepared requesting the forms, documents and fees
required to complete the application.
o
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 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 purchase
of alcohol and/or bulk alcoholic liquor 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.
All alcohol and bulk alcoholic liquor must be purchased
from a Seller of Alcohol licensed in Michigan
and must be purchased tax paid. All shipments of alcohol and bulk alcoholic
liquor must have obtained a release from the MLCC on the Release of Alcoholic
Beverages for Commercial Use (LC-MW-836).
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 liability 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 assignees or of amendments
made to the articles of organization, 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 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.
6. Fees
$70 Inspection Fee
$10 License Fee
7.
Appeal Process
If a license application is denied, the aggrieved 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 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:
October 12, 2010
