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Micro Brewer LicenseThe Michigan
Liquor Control Commission (MLCC) exercises complete control of the
alcoholic beverage traffic in 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.
Micro 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 A Micro Brewer
license is required for an establishment located in 2.
Pre-Application Requirements
An applicant for a
Michigan Micro 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 Micro Brewer License. The application 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 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 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 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 4.
Procedures and Time-Frame for Obtaining Permit or Approval
The application is
submitted to the Michigan Liquor Control Commission, 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 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 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 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: 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, 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 manufacture 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 A Michigan licensed
Micro 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 Micro Brewer must maintain a bond
executed by a surety company authorized to do business in A licensee must
maintain proof of financial responsibility 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 visibly 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 The beer manufactured
by the 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 A Micro 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 A Brewer is
prohibited from selling beer produced by it directly to licensed 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 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 Micro Brewer shall
maintain complete records of expenses of salesmen and representatives for a
4-year period of time. A Micro 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
appear on the license. A licensee shall not
lease, sell, or transfer 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 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 anything 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 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 aggrieved license applicant may request an appeal
hearing. This request must be made in writing to the 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.
Creation/Revision Date: October 12, 2010 | |||||
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