By: Mark Burzych
Q: I want to start selling alcohol “to go.” Given COVID-19, does my Class C license allow that?
A: Beer and wine sales “to go” may only be sold by a licensee with a Specially Designated Merchant (SDM) license. While many Class C licensees also obtained an SDM license, if you did not you cannot sell beer and wine “to go.” There is no indication from the Michigan Liquor Control Commission or the Governor that any emergency action will allow Class C licensees to sell beer and wine “to go.”
Other states have addressed this issue in response to COVID-19. In twenty-nine states and the District of Columbia, the liquor commissions have amended their license requirements to allow for restaurants and/or bars to provide carryout or takeout alcohol sales, but not Michigan. In Michigan, a Class C licensee must file an application for an SDM license, pay the $170 license and inspection fee, and wait for the Commission to investigate and allow the license application process to work. This process will take several weeks at a minimum. But be careful. Although the Commission may issue the SDM to you, your local unit of government may have additional license processes (and fees) to complete before a Class C licensee can use the SDM. Some of these local processes will take an additional several weeks, unless the local unit of government uses its emergency authority to expedite the process.
Q: I want to start selling alcohol “to go.” Given COVID-19, does my Class C license allow that?
A: Beer and wine sales “to go” may only be sold by a licensee with a Specially Designated Merchant (SDM) license. While many Class C licensees also obtained an SDM license, if you did not you cannot sell beer and wine “to go.” There is no indication from the Michigan Liquor Control Commission or the Governor that any emergency action will allow Class C licensees to sell beer and wine “to go.”
Other states have addressed this issue in response to COVID-19. In twenty-nine states and the District of Columbia, the liquor commissions have amended their license requirements to allow for restaurants and/or bars to provide carryout or takeout alcohol sales, but not Michigan. In Michigan, a Class C licensee must file an application for an SDM license, pay the $170 license and inspection fee, and wait for the Commission to investigate and allow the license application process to work. This process will take several weeks at a minimum. But be careful. Although the Commission may issue the SDM to you, your local unit of government may have additional license processes (and fees) to complete before a Class C licensee can use the SDM. Some of these local processes will take an additional several weeks, unless the local unit of government uses its emergency authority to expedite the process.
Although Michigan has implemented a “liquor buy back” providing some liquidity to licensees in the form of a loan of money equal to the amount of spirits purchased from the state for a period prior to COVID-19, other states have taken many more actions in an effort to help the hard-hit restaurant industry. For example, Arizona, California, Connecticut, District of Columbia, Delaware, Florida, Idaho, Iowa, Kentucky, Nebraska, Nevada (Reno, Sparks, Washoe Counties), Oklahoma, and Tennessee have used emergency powers to authorize restaurants and bars to sell mixed drinks for carryout and delivery.
Once you obtain your SDM, you will have the right to sell beer and wine for carry out and delivery. Beer can also include growlers, as long as you comply with the growler regulations, which include: not filling the growler in advance of the sale, filling the growler from another container of at least five gallons, the beer contained in the growler must have a registration number with the Commission, and labeling the container with the brand name of the beer, the class of beer, net contents of the container, and the name of the retailer. The growler must also be sealed. If you deliver, you must ensure that your delivery provider is either your employee who checks the ID of the recipient at the delivery premises, or a licensed third party facilitator who will perform all age verification on your behalf.
Once you obtain your SDM, you will have the right to sell beer and wine for carry out and delivery. Beer can also include growlers, as long as you comply with the growler regulations, which include: not filling the growler in advance of the sale, filling the growler from another container of at least five gallons, the beer contained in the growler must have a registration number with the Commission, and labeling the container with the brand name of the beer, the class of beer, net contents of the container, and the name of the retailer. The growler must also be sealed. If you deliver, you must ensure that your delivery provider is either your employee who checks the ID of the recipient at the delivery premises, or a licensed third party facilitator who will perform all age verification on your behalf.
