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Specially Designated Merchant Quota and Fuel Pumps

Specially Designated Merchant Quota and Fuel Pumps

Specially Designated Merchant Quota Requirements

Specially Designated Merchant (SDM) licenses are quota licenses based on one (1) SDM license for every 1,000 of population in a local governmental unit.  The Michigan Liquor Control Code several exemptions or waivers from the quota for qualified applicants.

Details of these exemptions and waivers may be found in the Specially Designated Merchant information sheet on the Retailer Licensing frequently asked questions webpage.  A chart of the types of Specially Designated Merchant license exemptions and waivers may be viewed below.

Specially Designated Merchant License Motor Vehicle Fuel Pump Requirements

Pursuant to MCL 436.1541(6), a Specially Designated Merchant (SDM) licensed business with motor vehicle fuels pumps must ensure that the site of payment of alcoholic liquor and selection of alcoholic liquor is not less than 5 feet from the motor vehicle fuel pumps.  There are no minimum inventory requirements for a SDM license with motor vehicle fuel pumps; minimum inventory requirements for SDM fuel pumps were eliminated in 2017.

However, if the SDM license held is in conjunction with a Specially Designated Distributor (SDD) license at the same location and motor vehicle fuel pumps were approved with a $12,500.00 or $250,000.00 inventory requirement for the SDD, then the inventory requirement for the SDD must be met.  Also, the $250,000.00 inventory requirement for a SDM licensee with a Secondary Location Permit is required.

 

Statute Section Quota License Location Transferable

MCL 436.1533(5)

One (1) Specially Designated Merchant license may be issued for every 1,000 in population in a local governmental unit. The applicant must hold a retail food establishment license or extended retail food establishment license as required under MCL 436.1533(1)(a) or (b). A Specially Designated Distributor licensee may also be issued a SDM license under the quota pursuant to MCL 436.1533(1)(c), as long as the SDM licensee is an also approved type business under MCL 436.1533(1)(a) or (b).

 Yes Yes

MCL 436.1533(5)

The Commission may waive the quota requirement if the applicant is not located within 2 miles of another SDM licensee and the applicant is an approved type business under MCL 436.1533(1)(a) or (b) pursuant to MCL 436.1533(6).

 Yes No

MCL 436.1533(5)(a)

Applicant holds or is approved for Class C, A Hotel, B Hotel, Club, Tavern, G-1, or G-2 license as described in MCL 436.1533(1)(d) to (j).

 Exempt from Quota No

MCL 436.1533(5)(b)(i)

Applicant's licensed establishment is at least 20,000 square feet and at least 20% of gross receipts are derived from the sale of food and the applicant is an approved type business under MCL 436.1533(1)(a) or (b).

 Exempt from Quota No

MCL 436.1533(5)(b)(ii)

Applicant's licensed establishment is a pharmacy and the applicant is an approved type business under MCL 436.1533(1)(a) or (b).

 Exempt from Quota No

MCL 436.1533(5)(e)

Applicant is a marina under MCL 436.1539 and the applicant is an approved type business under MCL 436.1533(1)(a) or (b).

 Exempt from Quota Yes, if applicant at new location qualifies under MCL 436.1539

MCL 436.1533(7)

Applicant applies within 60 days of the enactment of the law (January 5, 2017 to March 5, 2017) and holds a retail dealer license under the Motor Fuels Quality Act and the applicant is an approved type business under MCL 436.1533(1)(a) or (b).

 Commission Shall Waive Quota Yes, if applicant at new location qualifies as a retail dealer under Motor Fuels Quality Act