Michigan, Liquor, and the Law
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     Michigan issues licenses within cities, townships, and villages, i.e. local governmental units ("LGUs").  On-premise licenses, with some exceptions, can be transferred anywhere within the county in which their LGU is located.  SDD licenses can only be transferred within the LGU in which they were issued.
     Under Michigan's quota system, the availability of specific licenses in an LGU is limited by the population of that unit.  The population is generally determined by the last federal decennial census.  In rare situations, a licensee may be able to demonstrate that additional licenses should be available under the quota.


On-Premise License Quota
For on-premise licenses, the quota is established by MCL 436.1531(1), which provides that "A public license shall not be granted for the sale of alcoholic liquor for consumption on the premises in excess of 1 license for each 1,500 of population or major fraction thereof."  This means that one license is available for every LGU and an additional license is available for every "major fraction of 1,500 people" after the first 1,500.
Example of On-Premise Quota
Population
0 - 2,250
2,251 - 3,750
3,751 - 5,250
5,251 - 6,750
35,251 - 36,750
36,751 - 38,250
38,251 - 39,750
Quota Licenses
1
2
3
4
24
25
26

Off-Premise (SDD) Quota
For SDD licenses, the quota is established by Rule 436.1141(1).  This Rule limits the availability of SDD licenses to one license for every 3,000 persons in an LGU.  Furthermore, it does not provide for an additional license when a "major fraction" of 3,000 persons is reached. 
Example of SDD Quota
Population
1 - 3,000
3,001 - 6,000
6,001 - 9000
SDD Quota
1
2
3
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Licenses subject to the Quota
Class C, Tavern, B-Hotel, A-Hotel
Class G-1, Class G-2, SDD
 
Obtaining a License when the Quota is Full
- Buy a license
- SDD Resort Licenses
- On-Premise Resort Licenses
- Demonstrate increased population
or a 2-mile "exception"
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    FAQs - About Michigan's Liquor Control System - Retail Liquor Licenses - Obtaining a Liquor License - The Application/Transfer Process - MLCC Violations 
    The Michigan Liquor Law Blog - The 1/2 Mile Rule - Churches & Schools - Fuel Pumps & Liquor - Smoking Ban -  Proposed Statutory Changes - MLCC Forms

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The materials on this site are provided purely for informational purposes and are not legal advice. These materials are intended, but not promised or guaranteed, to be correct, complete, and current. This site is not intended to be a source of legal advice. Therefore, the reader should not consider this information an invitation for an attorney-client relationship. Readers should always seek the advice of competent counsel.
(c) 2012, Stariha & Brower, PLC
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Michigan Liquor Law dot com, a site devoted to understanding Michigan Liquor Laws.  We answer questions about  Michigan liquor licenses, the Michigan Liquor Control COmmission, liquor license applications, and more.