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Specially Designated Distributor 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.
Specially Designated
Distributor 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) Michigan
Administrative Code Implemented by the Michigan Liquor Control Commission General Rules (R
436.1001 - 436.1063) Licensing
Qualifications, (R 436.1101 - 436.1151) On-Premises Licenses
(R 436.1401 - 436.1438) Hearings and Appeals
Practice Rules (R 436.1901 - 436.1935) Church or School
Hearings (R 436.1951 - 436.1953 Financial
Responsibility (R 436.2001 - 436.2021)
D. SUMMARY OF LICENSE/APPROVAL PROCESS: 1.
Applicability (activities that require the license)
The definition of a
Specially Designated Distributor (SDD) license is a place licensed in 2.
Pre-Application Requirements
Specially Designated Distributor (SDD)
licenses are established under a quota of 1 SDD license for each 3,000 of
population or fraction of 3,000 in each city, village, and township (local
governmental unit) in If the SDD License
Availability Report indicates that an SDD quota license is available in the
city, village, or township where the premises to be licensed is located and
their are no applications under consideration by the MLCC for the available SDD
license, a new SDD quota license may be applied for in that, village, or
township where the premises to be licensed is located. If an SDD license is
obtained under the quota, it may not be transferred for three years after
issuance unless the licensee clearly and convincingly shows the MLCC that
unusual hardship will result if the transfer is not approved. In the event there
are no licenses available under the quota in the city, village, or township
where the premises to be licensed is located, you may still want to make
application for a new SDD license in the event new quota licenses become
available due to an increase in the population in the city, village, or
township or a Specially Designated Distributor license is cancelled and goes
back into the quota. This is due to the fact that the order in which the
initial competing applications are filed for an SDD quota license is one of the
considerations used by the MLCC to determine the qualifications for approval of
an application. An SDD license may
also be obtained through a transfer of ownership of an existing license
(at the same location) or a transfer of ownership and location of an
existing license. To determine if a Specially Designated Distributor is in
escrow with no pending transfers, in the city, village, or township where the
premises to be licensed is located check the Active and
Escrowed License Lists by County or check the Active or Escrow License Query.
In order to obtain an
SDD license, an approved type of business must be operating or propose to be
operating at the establishment to be licensed. The following are approved types
of businesses: o
A grocery store. o
A convenience food store. o
A food specialty store. o
A meat market. o
A delicatessen. o
A drugstore. o
A patent medicine store. o
A tobacconist that does not have motor vehicle fuel
pumps. o
A department store that includes 1 or more of the stores
listed above. o
A hotel. 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
are required prior to authorization of the field investigation. If you are
applying for a Class B-Hotel license and a Specially Designated Merchant
license the inspection fees would be $140.00. If you are applying for a
Specially Designated Merchant license only the inspection fees would be $70.00. Please make your check or money order
payable to the STATE OF 4. Procedures and Time-Frame for
Obtaining Permit or Approval
5. Operational Requirements
6. Fees
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
E. Contact
Information: Creation/Revision Date: October 12, 2010 | |||||
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