The Michigan Legislature recently passed Senate Bill No. 344 (now amended MCL 436.1533) which made some significant changes to MCL 436.1533 pertaining to liquor licenses. The changes affect who may apply for a license as a specially-designated merchant (SDM), which is a license allowing for the sale of beer and wine for off-premises consumption. The change to the statute will now allow a retail store with no other type of liquor license to apply for an SDM license to sell beer and wine for off-premises consumption.
The prior version of the statute stated that only a retailer licensed for the sale of alcohol for on-premises consumption or a licensed special-designation distributor (SDD) could apply for a license to sell beer and wine for off-premises consumption. With the new changes, a person may apply for an SDM license without holding or applying for any other type of license (which codifies the long-standing practice of the Liquor Control Commission).
Significantly, the amended statute now allows for applicants for many other specified licenses to apply for an SDM license as well. Newly eligible applicants for SDM licenses include Class C, Class A hotel, Class B hotel, Class G-1, Class G-2, and Tavern.
The amended statute also allows for those either holding or applying for an SDM license only, or a Class B hotel, to apply for an SDD license which allows for the sale of spirits or liquor to be consumed off-premises.
This new legislation greatly loosens the restrictions on who may apply for carry-away liquor licenses. For clarification on what license is necessary for specific business needs and what is required for an application, contact an attorney with expertise in business and licensing matters.
This blog article was written by Tyler Kemper, law clerk.
