MI LARA Announcement

Liquor Licensees Not Required to Place License in Escrow During State Of Emergency
March 31, 2020 – Liquor licensees whose businesses are closed for more than 30 days due to Executive Orders related to the Coronavirus COVID-19 state of emergency are not required to place their license in escrow, but must maintain proof of liquor liability insurance.The Michigan Liquor Control Commission today approved Administrative Order 2020-11 to allow for this exception to administrative rule R 436.1047 for the duration of the executive orders and for 30 days after the executive orders expire. Licensees who do not want to maintain liquor liability insurance must place their license in escrow.Due to the ongoing emergency, which has closed places of public accommodation to the public and directed residents to stay home as much as feasible, the MLCC finds that many licensees may not be able to continue active operation of their licensed businesses for extended periods during the state of emergency.Under Michigan Administrative Code R 436.1047, a licensee that ceases active operation for more than 30 days must place its license into escrow with the MLCC. The MLCC determined that “ceases active operation” doesn’t apply to licensees who have closed their businesses due to the current executive orders.For more information on the coronavirus/COVID-19 state of emergency, please visit the State of Michigan’s coronavirus website at www.michigan.gov/coronavirusFor further information, please monitor the MLCC website for updated information at www.michigan.gov/lccIt is the mission of the MLCC to make alcoholic beverages available for consumption while protecting the consumer and the general public through the regulation of those involved in the importation, sale, consumption, distribution, and delivery of these alcohol products.