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Michigan Liquor Law Blog

Up-to-date information on liquor and the law in Michigan

Renewal of Active & Escrowed Licenses

With last week’s big news, we did not have the time to fully address several other important announcements from MLCC.

With Regard to Active Licenses

As always, MLCC has reminded licensees to renew their license(s) prior to May 1st.  Furthermore, MLCC recommends mailing your renewal by March 15th to ensure that it is processed by March 30th.

The MLBA has noted that licensees should no longer expect the “unofficial and unspoken ‘grace period'” that has been seen in the past.  Given MLCC’s current approach to dealing with the law “as written,” it would be prudent to renew your license(s) as soon as possible.  As a reminder, the potential consequences of a failure to renew on time include cancellation of the license, the inability to purchase spirits, and/or the inability to serve or sell alcohol.

With Regard to Escrowed Licenses

In the past, escrowed licenses have also been the subject of lenient unspoken policies on the part of MLCC.  This year, MLCC has announced that it will be sticking to the letter of the law with regard to these licenses, and that failure to comply with the relevant portions of Rule 436.1107 will result in immediate cancellation of all rights in an escrowed license.  Per Rule 436.1107, MLCC must receive renewal information and license fees for an escrowed license in the same manner as an active license.*  Furthermore, it is worth noting that MLCC appears poised to strictly limit escrow periods to five years, barring a showing of “good cause.”*  At this time, it is not known what the current Commission will deem sufficient to satisfy the “good cause” requirement.

*Note that a different rule applies to an escrowed license that is the subject of litigation/bankruptcy proceedings or a license that was placed in escrow after damage to the licensed premises rendered the premises unsuitable for operation of the business and unsafe for occupation

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5 Comments

  1. Further Clarification Regarding Escrowed Licenses « Michigan Liquor Law
    March 15, 2012

    […] thanks to Ronalee Polad for passing it on).  Some of this information was detailed in our earlier post on escrowed licenses; however, this post (especially the early portion) offers good insight and […]

  2. Michigan Liquor Law in your Inbox (And Other Updates) « Michigan Liquor Law
    May 2, 2012

    […] time for license renewals has come and passed.  If you did not renew your license, do not expect MLCC to be lenient.  We have already noted that several licensees who failed to renew on time have been removed from […]

  3. Avoiding MLCC Violations « Michigan Liquor Law
    May 31, 2012

    […] you are well overdue.  Contact MLCC immediately to try and remedy the situation (as noted before, MLCC may not renew the license now).  Investigators are currently canvassing the state, looking for locations that failed to renew […]

  4. “Poof” Go the Licenses « Michigan Liquor Law
    September 21, 2012

    […] many late-renewing licensees were lucky insofar as it took longer than we expected (and longer than MLCC led us to believe).  Per a conversation with MLCC staff, Licensing staff is no longer permitted to accept renewals […]

  5. Liquor License Terminations -Stariha & Brower
    June 8, 2014

    […] many late-renewing licensees were lucky insofar as it took longer than we expected (and longer than MLCC led us to believe).  Per a conversation with MLCC staff, Licensing staff is no longer permitted to accept renewals […]

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