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Qualifications & Requirements
Social District Commons Area
The term commons area is defined by MCL 436.1551(8)(a) as "...an area within a Social District clearly designated and clearly marked by the governing body the local governmental unit that is shared by and contiguous to the premises of at least 2 other qualified licensees. Commons area does not include the licensed premises of any qualified licensee." This means the commons area must have at least two qualified licensees whose licensed premises are contiguous to the commons area to qualify to be established as a commons area. The actual physical licensed premises of the licensees, including any approved outdoor service areas, are not considered part of the commons area.
Qualified Licensee
The term qualified licensee is defined by MCL 436.1551(8)(c):
- A retailer that holds a license, other than a special license, to sell alcoholic liquor for consumption on the licensed premises. (This includes the following license types: Class C, Tavern, A-Hotel, B-Hotel, Club, G-1, G-2, Brewpub.)
- A manufacturer with an on-premises tasting room permit issued under section 536.
- A manufacturer that holds an off-premises tasting room license issued under section 536.
- A manufacturer that holds a joint off-premises tasting room license issued under section 536.
The licensee must first obtain approval from the governing body of the local governmental unit before applying for the permit.
Alcoholic Liquor Sales Only On Licensed Premises
A licensee that has been issued a Social District Permit may sell alcoholic liquor for on-premises consumption on its licensed premises only, including an approved outdoor service area, and then customers may remove the alcoholic liquor from the premises to be consumed in the commons area. A licensee must not sell alcoholic liquor in the commons area or from the licensed premises or outdoor service area directly to someone in the commons area.
Related link: Sample diagrams that illustrate the types of sales are allowed and not allowed for licensees in Social Districts
The commons area is not considered part of any licensee's licensed premises. Nevertheless, a licensee that has been issued a Social District Permit must make every effort to ensure that it does not sell alcoholic liquor to a minor or intoxicated person.
Serving Container Requirements
Any alcoholic liquor sold to customers for consumption in the commons area by a licensee with a Social District Permit must comply with all of the following:
- The serving container must prominently display the licensee's trade name or logo or some other mark that is unique to the licensee that sold the alcohol.
- The serving container must prominently display a logo or some other mark that is unique to the commons area.
- The serving container is not made of glass.
- The serving container does not have a liquid capacity over 16 ounces.
Transportation of Alcoholic Liquor Onto Other Licensee's Premises Prohibited
A customer that purchases alcoholic liquor to be consumed in a commons area must not transport that alcoholic liquor onto the licensed premises of another licensee contiguous to the commons area from which the customer did not purchase the alcoholic liquor, unless the other licensee is a B-Hotel licensee and also holds a Social District Permit. A licensee, other than a B-Hotel licensee with a Social District Permit, shall not allow alcoholic liquor to be brought onto its licensed premises that was purchased from another licensee with a Social District Permit. A customer that purchases alcoholic liquor to be consumed in a commons area must not transport that alcoholic liquor outside of the commons area.
Special Licensee In Social District Commons Area
If a nonprofit organization requests a Special License for a location within a Social District commons area, the governing body of the local unit of government shall delineate the portion of the commons area to be utilized exclusively by the Special Licensee and the portion of the commons area to be used exclusively by Social District permittees. The Special License applicant must submit documentation from the local governmental unit, including a clear diagram, with its application.
