By: Kelly Allen
Q: In preparation for reopening, what are the updates in liquor licensing tools?
A: The Michigan Liquor Control Commission (MLCC ) and many municipalities have established new rules and procedures to provide bars, restaurants, and hotels with tools to assist in reopening establishments.
First, I sincerely hope that you and your loved ones are well and staying safe out there.
Obviously, the bar and restaurant industry has been severely impacted by the COVID-19 crisis. As the governor begins to allow on-premises licensees to open, there are many issues you should consider. The requirements can be overwhelming. We urge everyone to take a really deep breath and chip away at the requirements, with the focus on public safety.
This week the MLCC released a reopening resource page providing licensees with guides, license and permit applications, and other helpful content. This resource emanates from the MLCC’s Task Force, which was formed to come up with ideas to assist bars and restaurants. The resource guide, together with the governor’s latest executive orders allowing Region 6 (Traverse City area) and Region 8 (Upper Peninsula) to open, will guide the rest of the state when opening.
It is likely that on-premises licensees will be able to open at 50 percent of their capacity. Therefore, the use of outdoor service areas, and the continued ability to maximize carryout and curbside service, should be considered. Approval from the MLCC, and in some cases, the municipality, must be obtained before you can implement these tools to assist with your reopening. A few options are summarized below.
The message to you is to file any applications you deem necessary for your business as soon as possible. The MLCC and the municipalities may be overwhelmed with applications, and if the forms and other requirements are not met, you may not get your permits in time to position your business to competitively reopen.
“R 436.1419. Outdoor service without approval prohibited; requirements for outdoor service if approval is granted. Rule 19. (1) An on-premises licensee shall not have outdoor service without the prior written approval of the commission. (2) If approval for outdoor services is granted, then the on-premises licensee shall ensure that the outdoor service area is well-defined and clearly marked, and the on-premises licensee shall not sell, or allow the consumption of alcoholic liquor outdoors, except in the defined area.”
It should also be noted that the MLCC application for outdoor service contemplates the idea that an outdoor service area need not necessarily be adjacent to the licensed premises.
The procedure is as follows:
Q: In preparation for reopening, what are the updates in liquor licensing tools?
A: The Michigan Liquor Control Commission (MLCC ) and many municipalities have established new rules and procedures to provide bars, restaurants, and hotels with tools to assist in reopening establishments.
First, I sincerely hope that you and your loved ones are well and staying safe out there.
Obviously, the bar and restaurant industry has been severely impacted by the COVID-19 crisis. As the governor begins to allow on-premises licensees to open, there are many issues you should consider. The requirements can be overwhelming. We urge everyone to take a really deep breath and chip away at the requirements, with the focus on public safety.
This week the MLCC released a reopening resource page providing licensees with guides, license and permit applications, and other helpful content. This resource emanates from the MLCC’s Task Force, which was formed to come up with ideas to assist bars and restaurants. The resource guide, together with the governor’s latest executive orders allowing Region 6 (Traverse City area) and Region 8 (Upper Peninsula) to open, will guide the rest of the state when opening.
It is likely that on-premises licensees will be able to open at 50 percent of their capacity. Therefore, the use of outdoor service areas, and the continued ability to maximize carryout and curbside service, should be considered. Approval from the MLCC, and in some cases, the municipality, must be obtained before you can implement these tools to assist with your reopening. A few options are summarized below.
The message to you is to file any applications you deem necessary for your business as soon as possible. The MLCC and the municipalities may be overwhelmed with applications, and if the forms and other requirements are not met, you may not get your permits in time to position your business to competitively reopen.
- OUTDOOR SERVICE AREAS: There are two “sets” of rules to consider for outdoor service area permits.
- New outdoor service areas. For those of you who do not have an approved outdoor service area, the rules and procedures for obtaining approval have not changed.
“R 436.1419. Outdoor service without approval prohibited; requirements for outdoor service if approval is granted. Rule 19. (1) An on-premises licensee shall not have outdoor service without the prior written approval of the commission. (2) If approval for outdoor services is granted, then the on-premises licensee shall ensure that the outdoor service area is well-defined and clearly marked, and the on-premises licensee shall not sell, or allow the consumption of alcoholic liquor outdoors, except in the defined area.”
It should also be noted that the MLCC application for outdoor service contemplates the idea that an outdoor service area need not necessarily be adjacent to the licensed premises.
The procedure is as follows:
- You must complete the LCC-204 form.
- The application must include a diagram of the outdoor service area showing what type of barrier will be used, so that the area is enclosed and clearly marked. Although the type or height of the barrier is not specified in the MLCC code, the barrier should be sufficient to indicate to the customer that they are in the specific licensee’s area and cannot leave the area with open alcohol.
- If the outdoor service area is on city, village, or township property, the MLCC requirement is as follows: “Outdoor service areas located on municipal property must be accompanied with a document from the municipality providing permission to utilize the municipally owned property. “ (See Part 5(2) of the application.) Therefore, you must contact your municipality to obtain this permission. Many municipalities are relaxing their requirements in this regard because of the COVID crisis.
Expansion of existing outdoor service areas now designated as limited permanent outdoor service area. If you have an approved outdoor service area and want to expand the area, the MLCC’s new application form, LCC-204a, must be filed. This expanded area is for a limited term and will be expedited by the MLCC. There are a number of limits on what can be applied for under this new procedure, including:
For an outdoor service area that does not meet the criteria set forth above for a Limited permanent outdoor service area, you may wish to request approval to enlarge an existing outdoor service area. In this case, the procedure outlined in Number 1 (above) would need to be followed for a regular permanent outdoor service area.
2. ADDITIONAL BAR PERMITS: Each on-premises license includes one bar permit. f you want to have an additional bar, in an outdoor service area, for example, you will need to apply for an additional bar permit. These permits cost $350 per year.
3. SPECIALLY DESIGNATED MERCHANT APPLICATIONS: (Beer and wine to-go for consumption off-premises.) Many on premises licensees already have SDM licenses. An SDM license allows the bar or restaurant to sell beer and wine to go. This means that if you are doing carryout, curbside pickup, or delivery, you must have an SDM license to sell beer and wine to go. (Note: sales of spirits to go are prohibited). The procedure for obtaining an SDM license has not changed and unfortunately cannot be streamlined, due to the fact that a church/school measurement is required. This means that the application will be assigned to an MLCC investigator who will check to see if there is a church or school within five hundred feet of your establishment. Despite this investigation, the MLCC is moving these applications as quickly as possible during the pandemic recovery period.
In addition to this summary, you should review the MLCC resource page found at MLCC Reopening Resources (Coronavirus/Covid-19).
Also, when licensees are allowed to reopen to the public, all licensees must comply with executive orders, local health department orders, and local ordinances regarding reduced occupancy rates and social distancing protocols related to the Coronavirus (COVID-19) pandemic.
Finally, make sure to renew your liquor license by May 31, which is the extended deadline to do so. It is best at this point to renew your license online. See the MLCC website: www.michigan.gov/lcc
It is our sincere hope that your reopening will go as smoothly as possible and that you will once again succeed in our great industry.
- The outdoor service area must comply with reduced occupancy and social distancing requirements under any current executive order, local county health department orders, and any local ordinances related to the coronavirus (COVID-19) pandemic.
- If the outdoor area will be located on municipal property, such as a city sidewalk, the licensee must submit written approval from the local governmental unit authorizing the use of the municipal property.
- The limited permanent outdoor service permission will be valid only from June 1, 2020 to no later than October 31, 2020.
- The outdoor service area must be in the same local governmental unit as the licensed premises.
- The outdoor service area must be no more than 25 feet from the licensed premises.
- The outdoor service area must not be separated from the licensed premises by a public street or road.
- The outdoor service area must not exceed 20,000 square feet in total space.
- The outdoor service area may not be located on a balcony or rooftop.
For an outdoor service area that does not meet the criteria set forth above for a Limited permanent outdoor service area, you may wish to request approval to enlarge an existing outdoor service area. In this case, the procedure outlined in Number 1 (above) would need to be followed for a regular permanent outdoor service area.
2. ADDITIONAL BAR PERMITS: Each on-premises license includes one bar permit. f you want to have an additional bar, in an outdoor service area, for example, you will need to apply for an additional bar permit. These permits cost $350 per year.
3. SPECIALLY DESIGNATED MERCHANT APPLICATIONS: (Beer and wine to-go for consumption off-premises.) Many on premises licensees already have SDM licenses. An SDM license allows the bar or restaurant to sell beer and wine to go. This means that if you are doing carryout, curbside pickup, or delivery, you must have an SDM license to sell beer and wine to go. (Note: sales of spirits to go are prohibited). The procedure for obtaining an SDM license has not changed and unfortunately cannot be streamlined, due to the fact that a church/school measurement is required. This means that the application will be assigned to an MLCC investigator who will check to see if there is a church or school within five hundred feet of your establishment. Despite this investigation, the MLCC is moving these applications as quickly as possible during the pandemic recovery period.
In addition to this summary, you should review the MLCC resource page found at MLCC Reopening Resources (Coronavirus/Covid-19).
Also, when licensees are allowed to reopen to the public, all licensees must comply with executive orders, local health department orders, and local ordinances regarding reduced occupancy rates and social distancing protocols related to the Coronavirus (COVID-19) pandemic.
Finally, make sure to renew your liquor license by May 31, which is the extended deadline to do so. It is best at this point to renew your license online. See the MLCC website: www.michigan.gov/lcc
It is our sincere hope that your reopening will go as smoothly as possible and that you will once again succeed in our great industry.
