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Liquor License Update: Liquor Commission Adopts New Rule to Allow Licenses to be Kept in Escrow Beyond 5 Years

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Ronald D. Richards Jr.
Foster Swift Municipal Law News
October 2009

As we reported in our June 2009 newsletter, the Michigan Liquor Control Commission was considering amending its rules to allow a licensee to keep a liquor license in escrow for longer than the 5 years currently allowed by rule. The Commission has now adopted that rule change.

Under the new rule, R 436.1107, a licensee who wishes to keep a liquor license in escrow for longer than 5 years may now ask the Liquor Control Commission for an extension. And the Commission is now authorized to extend the time for which a licensee may keep the license in escrow upon a showing of good cause. The new rule does not address how many extension requests a licensee may make, nor does it specify how long of an extension the Commission may grant.

If you have any questions on the new rule, liquor license escrow issues, or other liquor license matters, feel free to contact Ron Richards (517-371-8154) of the Foster Swift’s Municipal Department and its Food, Hospitality, and Alcohol Industry Services Department.