MLCC CLARIFICATIONS: LIQUOR LIABILITY INS. & GOLF COURSES

Members,
We have received an update from MLCC regarding your liquor liability insurance, as well as some golf course clarifications. We will continue to keep everyone up to date with new news and changes, so please keep an eye out for our emails — we are hoping to have more good news today.
Thank you.


FROM MLCC CORONAVIRUS FAQ:
Does the Executive Order apply to golf courses? 

• Pursuant to the updated guidance on the Governor’s website regarding Executive Order 2020-9, a golf course may remain open to allow for play.  Patrons at golf courses may consume food and beverages on the golf courses, but not in any buildings like clubhouses, if the food and beverages are offered as a take-out and in compliance with other Executive Order provisions.  Golf courses cannot utilize a roving golf cart bar to sell food and beverages directly to patrons on the golf course.

Do I still have to maintain my liquor liability insurance if my business is closed? 

• No. If you let your liability insurance lapse though, you should also submit your license to be placed in escrow with the Commission, so your license status will correctly reflect it is not active. Once you are ready to reopen, you will need to notify the Commission and request that your license be released from escrow. You may be asked to provide a new proof of liquor liability
insurance or other documentation before your license can be activated and released to you for use.

If I am only open for takeout and/or delivery, do I need to maintain liquor liability insurance?

• Yes. If your business is still open for takeout and/or delivery, you must continue to maintain liquor liability insurance, pursuant to MCL 436.1803.

If my business is closed, what do I need to do with my liquor license? 

• If you intend to be closed for a period of less than 30 days, you do not need to take any action with the Commission as long as you maintain liquor liability insurance and your business entity is in good standing.

• If you intend to be closed for more than 30 days, you will need to submit your license for escrow with the Commission. During that time, you may allow your liquor liability insurance to lapse.

• You may place your license in escrow by visiting our website at www.michigan.gov/lcc and downloading the Request to Place License In Escrow form (LCC-108).  Follow the instructions on this form and provide the completed application to our office by fax or email.  You will then receive notification when the license is placed in escrow with our office.  Escrow rules and additional FAQs are attached to the LCC-108 form for additional information on your responsibilities.

I have an On-Premises license with a takeout (Specially Designated Merchant – SDM) license.  Can I place my on-premises license in escrow and just maintain the takeout SDM license?

• No. The takeout (SDM) license has been issued in conjunction with your on-premises license and cannot be used or licensed independently from your on-premises license. Therefore, you must maintain both licenses to continue to qualify for licensure.