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    Specially Designated Distributor License

    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:

    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 Michigan to sell spirits and mixed spirit drink in the original package for consumption off the licensed premises. The types of businesses that generally have SDD licenses are grocery stores, drug stores, or convenience food stores. An SDD license may also be held in conjunction with a Specially Designated Merchant (SDM) license and a Class B-Hotel license.

     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 Michigan. The first step is to determine if an SDD license is available under the quota in the city, village, or township where the premise to be licensed is located. Check the SDD License Availability Report from this link to the MLCC web site.

    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 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 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 MICHIGAN.

     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 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

     

    E. Contact Information:

    Contact Us

     

    Creation/Revision Date:

    October 12, 2010

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