Michigan liquor licenses What reporters need to know

Legal authority Licenses are issued by the Michigan Liquor Control Commission Local units of government are required to make a recommendation to the LCC on each license application.

Quotas Licenses are issued based on a quota of one license per 1,500 population. Some licenses, however, are not subject to the quota. Licenses can be transferred from one gov’t unit to another.

Major types of licenses Class C, Hotel On-premise license Authorized to sell beer, wine and liquor Subject to quota

Major types of licenses Club On-premise Beer, wine and liquor Can sell to club members only Not subject to quota

Major types of licenses Hotel A, Tavern On-premise Beer, wine only Subject to quota

Major types of license Resort Economic development motive Not subject to quota Limited number granted each year Costs about $20,000 to obtain

Major types of licenses Special 24-hour license For non-profit events Off-premise licenses (Package stores)

Other things to know Unused licenses are put into escrow and can be sold on the market There are criminal and other background checks Transfers are usually handled quietly, but there are good stories there.

Liquor license stories Continued illegal behavior (underage sales, fights etc.) can result in license suspension or revocation. Competition for scarce licenses can affect business development.

Questions? Today’s PowerPoint design is -- ahem -- “Bar Code”