·         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