Third Party Facilitator Service (TPFS) License

Third Party Facilitator Service (TPFS) License Requirements & General Information

    A Third Party Facilitator Service license, as described in MCL 436.1203, may facilitate the sale and delivery of beer and wine from a Specially Designated Merchant (SDM) licensee or spirits from a Specially Designated Distributor (SDD) licensee or may deliver the beer, wine, or spirits on behalf of a SDM or SDD licensee.

    Specially Designated Merchant (SDM) or Specially Designated Distributor (SDD) licensee may use a Third Party Facilitator Service (TPFS) license to facilitate the sale and delivery of beer, wine, and spirits by means of the internet or a mobile application operated by the TPFS licensee.  Sales of beer, wine, or spirits by a SDM or SDD licensee facilitated through a TPFS licensee’s internet-based or mobile application service may be delivered under the following conditions:

• The SDM or SDD licensee or its employee may deliver the beer, wine, or spirits to the home or designated location of a consumer.

• The licensee or its employee making the delivery must verify that the person receiving the delivery is at least 21 years of age.
• If the licensee or its employee intends to provide service to consumers, the licensee or its employee must have received alcohol server training through a server training program approved by the Commission.

• The TPFS licensee may deliver beer, wine, or spirits on behalf of SDM or SDD licensees to the home or designated location of a consumer.

• The licensee must verify that the person receiving the delivery is at least 21 years of age.
• The SDM or SDD licensee or the consumer pays the fees associated with the delivery of the beer, wine, or spirits.

    A manufacturer, an outstate seller of beer, wine, or mixed spirit drinks, a wholesaler, or warehouse cannot have direct or indirect interest in a Third Party Facilitator Service license and cannot aid or assist a Third Party Facilitator Service licensee by gift, loan of money or property, or other valuable thing as defined in MCL 436.1609.

Required Forms, Fees, and Documents

    An applicant requesting a new Third Party Facilitator Service license must submit the following:

Required Forms

• For a new Third Party Facilitator Service license - Third Party Facilitator License Application (LCC-112).
• To transfer interest in a Third Party Facilitator Service license – License Interest Transfer Application (LCC-101).
• To transfer ownership of a Third Party Facilitator Service license, please contact the MLCC Licensing Division, toll-free, at 866-813-0011.
  

Inspection Fee

A $70.00 nonrefundable inspection fee is required.

Application Fee

A $100 application fee is required.

License & Permit Fees

The initial and annual renewal fee for a Third Party Facilitator Service license is $1,000.00.

Livescan Fingerprints

Applicants that are not currently licensed through the Michigan Liquor Control Commission and will hold 10% or more interest in a liquor license must be fingerprinted.  After reviewing your application, the MLCC will provide you with a copy of the Livescan Fingerprint Background Request (LCC-105) form that you will need when you are fingerprinted by a Livescan Agency.

In addition to the documents required by all applicants:

Corporations must submit the following information per Administrative Rule R 436.1109:

• Report of Stockholders/Members/Partners (LCC-301)
• Copy of current, filed Articles of Incorporation.
• Current Certificate of Good Standing from the state where incorporated and Certificate of Authority to Do Business in Michigan, if incorporated outside of this state.
• Certified copy of the minutes of a meeting of its board of directors or a statement signed by an officer of the corporation naming the persons authorized by corporate resolution to sign the application and other documents required by the Commission (or Part 3 of Form LCC-301).

Limited Liability Companies (LLC) must submit the following information pursuant to Administrative Rule R 436.1110:

• Report of Stockholders/Members/Partners (LCC-301)
• Copy of Articles of Organization and copies of any amendments to the Articles of Organization.
• Current Certificate of Authority to Do Business in Michigan, if the LLC is a non-Michigan LLC.
• Copy of Operating Agreement entered into by members.
• Copy of most recent annual statement filed with the Corporations Division, if an existing LLC.
• Statement signed by a manager of the limited liability company or by at least 1 member if management is reserved to the members naming the person authorized to sign the application and other documents required by the Commission (or Part 3 of Form LCC-301).

Partnerships must submit the following information per Administrative Rule R 436.1111:

• Report of Stockholders/Members/Partners (LCC-301)
• Partnership Agreement, if a Limited Partnership.

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.

Recordkeeping Requirements & Quarterly Reports

    A Third Party Facilitator Service licensee that delivers beer, wine, or spirits for SDM and SDD licensees must maintain records those deliveries and submit a quarterly report of those deliveries pursuant to MCL 436.1203(22) and (23). A licensee may use the Third Party Facilitator Service License Quarterly Report (LCC-304) to report its quarterly deliveries or may create its own quarterly report.

    The report must include the name and contact information for the Third Party Facilitator Service licensee and also all of the following about each delivery to a consumer in this state during the preceding calendar quarter:

• The name and business address of the person that ships beer, wine, or spirits.
• The name and address of the recipient of beer, wine, or spirits.
• The weight of beer, wine, or spirits delivered to a consignee.
• The date of the delivery.

    The licensee shall maintain the books, records, and documents supporting a report submitted for three (3) years unless the Commission notifies the licensee in writing that the books, records, and supporting documents may be destroyed. Within 30 days after the Commission's request, the licensee shall make the books, records, and documents available for inspection during normal business hours. Within 30 days after a local law enforcement agency's or local governmental unit's request, the Third Party Facilitator Service licensee shall also make the books, records, and documents available for inspection to a local law enforcement agency or local governmental unit where the Third Party Facilitator Service licensee resides or does business.