Club License

Club Licensing Requirements & General Information

    A Club license, as defined by MCL 436.1107(5), is a nonprofit association, whether incorporated or unincorporated, organized for the promotion of some common purpose, the object of which is owning, hiring, or leasing a building, or space in a building, of an extent and character as in the judgment of the Commission may be suitable and adequate for the reasonable and comfortable use and accommodation of its members and their guests, but does not include an association organized for a commercial or business purpose.

    Club licenses are commonly issued to nonprofit fraternal, social, and veteran organizations, but may be issued to any nonprofit organization that qualifies and has been in continuous existence for two (2) years.  A Club licensee must be self-supporting without the sale of alcoholic liquor.  The affairs and management of the organization must be conducted by a board of directors, executive committee, or similar body chosen by the members.

Required Forms, Fees, and Documents

    An applicant requesting a new Club license must submit the following:

Application Form

• Club License & Permit Application (LCC-102)

Inspection Fee

A $70.00 nonrefundable inspection fee is required for each license requested in an application.  For example, if an applicant has requested a new Club license and a new Specially Designated Merchant (SDM) license in conjunction, the inspection fee would be $140.00.

License & Permit Fees

The initial and annual renewal fee for a Club license is $300.00, plus an additional $1.00 per member over the first 150 members.  The maximum fee is $750.00 for organizations that have 600 or more members.  Additional fees will vary based upon whether additional licenses and permits are requested in conjunction with a Club license.

Copy of current, filed Articles of Incorporation

Club Resolution & Affidavit Relative to Racial Discrimination

A fillable copy of the resolution and affidavit is included on page 2 of the Club License Application (LCC-102) form.  Administrative rule R 436.1127 provides that an applicant for a Club license must submit a certified copy of a resolution requesting a license, which was adopted at a bona-fide club meeting and approved by a majority of the members.  An organization must also certify that its charter, constitution, by-laws, franchise, membership application, or related documents under which the organization currently operates do not contain any racial disqualifications for membership or guest privileges.

Copy of Public Notice Published By Club License Applicant

MCL 436.1532(3) requires that a Club license applicant must give public notice of the intent of the Commission to issue the applicant a Club license by publication in a newspaper published or in general circulation within the local governmental unit at least ten (10) days before the Commission issues the license.

Property Document

• Applicants must provide documentation that demonstrates they will have control over the property that comprises the proposed licensed premises.  Property documents include deeds, land contracts, and lease agreements.
• A provision to reassign the license in the event of a default on a land contract or termination of a lease agreement may be included, but may only provide for the reassignment subject to Commission approval.
• If the applicant is a company and its members or stockholders own the real estate as individuals or under another company, a lease agreement is needed.
• If the applicant is an individual and he or she owns the real estate with a spouse or someone else who will not be named on the license, a lease between the applicant and the owners of the real estate is needed.

List of Authorized Signers

Certified copy of the minutes of a meeting of its board of directors or a resolution approved by the organization naming the persons authorized the application and other documents required by the Commission.

Licensing Process

• The Licensing Division reviews the application and corresponding documents for completeness and verifies the appropriate fees have been received. If additional documents, fees, or corrections to documents are needed, Licensing will notify the applicant.

• Once all the necessary documents have been received Licensing will submit the request to the Enforcement Division for its investigation. If an applicant has applied for and meets the requirements for a conditional license, the request will be considered by the Commission

• The Enforcement Division will contact the applicant to schedule an interview with the applicant (and current licensee for license transfers). At this meeting an investigator will review with the applicant documents, including:

• purchase agreement
• financial documents
• property documents
• other items pertaining to the application

• After the interview, the investigator will prepare a report for the Commission regarding the investigation and submit the request back to Licensing for further processing.

• Licensing reviews the report from Enforcement and any additional documents received during the interview process. The request is prepared for the Commission to consider and placed on a docket for an upcoming licensing meeting.

• The Commission considers the request, including:

• the liquor license operating history of the applicant (if a current or prior licensee)
• the arrest and conviction record of the applicant
• whether the applicant meets the requirements for a license
• the applicant's financial information
• opinions of the local legislative body or police department, if received.

• The Commission will approve or deny the request based on these factors. Occasionally, the Commission will request more information from the applicant before making a final decision.

• After the Commission makes a decision on the request, the file is returned to Licensing for final processing.

• Approval orders are sent to the applicant requesting any final items before the issuance of the license.

• Denial orders are sent to the applicant and the applicant may appeal the decision.

• When all the final items are received by Licensing, the completed request is forwarded to the Renewal Unit for the issuance of the physical license documents. Any changes in financial provisions at the time of closing which do not conform to the terms previously indicated and investigated may require submission of new forms and possible additional investigation.

Other Licenses That May Be Held in Conjunction With a Club License

Specially Designated Merchant (SDM) License

Allows the sale of beer, wine, and mixed spirit drink products in their original, unopened containers for consumption off the licensed premises (take-out).

Permits, Permissions, and Authorizations

Sunday Sales Permit (A.M.)

A permit that allows the sale of spirits, mixed spirit drink, beer, and wine on Sunday mornings between 7:00am and 12:00 noon, if allowed by the local unit of government.

Sunday Sales Permit (P.M.)

Allows the sale of mixed spirit drink and spirits on Sunday afternoons and evenings between 12:00 noon and 2:00am (Monday morning), if allowed by the local unit of government.

Dance Permit

Allows dancing by patrons of a business with an on-premises license. Often combined with an Entertainment Permit.

Entertainment Permit

Allows certain types of live entertainment at a business with an on-premises license. An Entertainment Permit does not allow topless activity. Often combined with a Dance Permit.

Extended Hours Permit

A permit held in conjunction with a Dance or Entertainment Permit (or both) that allows dancing or entertainment on the licensed premises outside the legal hours for the sale of alcohol. An Extended Hours Permit does not allow the sale of alcohol outside of the legal hours of sale.

Living Quarters Permit

Allows living quarters to be directly connected to the licensed premises.

Social District Permit

Allows a licensee to sell and serve an alcoholic beverage to a customer who may drink it in a social district created by the local governmental unit.

Specific Purpose Permit

Allows specific types of activities (such as the service of food, sporting activities, meetings, etc.) to occur on the licensed premises outside the legal hours for the sale of alcohol. A specific purpose permit does not allow the sale of alcohol outside of the legal hours of sale.

Direct Connection Permission

Allows connections from the licensed premises to unlicensed premises.

Off-Premises Storage Permission

Allows a licensee to store alcoholic inventory off the licensed premises in a secure storage area.

Outdoor Service Authorization

Authorization granted by the Commission for a licensee to sell alcohol outdoors in an area controlled by the licensee. This can be a patio area next to the licensed premises or a space as large as a golf course.

Local Government Unit Approval for New Club Licenses

• The applicant must obtain a recommendation from the legislative body of the local governmental unit (city council, village council, or township board).

• The legislative body may pass a resolution to recommend the applicant’s application for a new Club license. It may also record its approval on the Local Government Approval Form (LCC-106).

• The resolution must be submitted to the Commission with the initial application and documents.

Churches & Schools

    An application for a new license to sell alcoholic beverages at retail, or a request to transfer location of an existing license, may be denied if the proposed location is within 500 feet of a church or school. The Commission may waive the church/school provision if the church or school does not file an objection to the proposed license. If the church or school does file an objection, the Commission shall hold a hearing before making a decision on the issuance of the license.

Proof of Financial Responsibility

Liquor liability coverage of at least $50,000.00 is required by Michigan law for active operation of a licensed business.  Types of acceptable coverage are:

• liquor liability insurance
• cash
• unencumbered securities
• constant value bond
• membership in an authorized group self-insurance pool

For more information, please read the instructions in the Proof of Financial Responsibility (LC-95) form.