Posted by: Mike Brown
March 07, 2013

There appears to be strong support in the Legislature and among industry groups for this “conditional” or “temporary” license concept as a means of keeping businesses open while a license transfer is pending before the MLCC. Bill sponsor Representative Ray Franz (R-Onekema) testified before the committee that a similar bill passed the House at the end of last year’s session 105-2, but failed to have enough time to seek Senate approval before year end. Other industry leaders from the Michigan Restaurant Association and Michigan Licensed Beverage Association testified in favor of the bill this week. The MLCC has also signaled to the House Regulatory Reform Committee that it supports the “conditional” license concept. To date, no opposition to the bill has been announced.

If adopted, House Bill 4277 would require the MLCC to issue a “conditional” license to an applicant who has completed an application form and paid the $300 conditional license fee, provided the applicant can also show proof of financial responsibility (insurance) for the licensed premises and a property document (deed or lease) evidencing a right to occupy the licensed premises. If the bill becomes law, and the applicant meets the requirements for a conditional license, the MLCC will be required to issue conditional licenses within 20 business days of the request. The current license at that location would then be put in escrow while the conditional license is active. The proposed bill would not allow for a “conditional” license for a new on-premises license or a new SDD license. A somewhat similar bill, Senate Bill 109, was recently introduced in the Senate that would also allow for a “conditional” license for new on-premises licenses but would still not allow a “conditional” license for new SDD licenses.

We will continue to monitor the progress of these important liquor bills.