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NOTE: Effective November 21, 2019, special licenses and beer festival special licenses are no longer required to have a surety bond associated with them pursuant to Public Act 131 of 2019. Please see our Michigan page for more information regarding surety bonds that are currently required in the state.
How much does a special event alcohol bond cost in Michigan?
The technical title of this bond is the Michigan special license for beer, wine and spirits for consumption on the premises surety bond. You can purchase this $1,000 bond for just $100 when working with SuretyBonds.com.
Why do I need a bond?
Michigan special license for beer, wine and spirits for consumption on the premises surety bonds and licenses are one-day agreements between the Michigan Liquor Control Commission and a nonprofit organization. The license allows the applicant to sell alcohol at an event, and the bond ensures that the applicant does so responsibly and in accordance with the laws of the state of Michigan.
Specifically, the surety bond guarantees that the nonprofit organization will not sell alcohol to any minors or visibly intoxicated adults and otherwise complies with any and all provisions of the Michigan Liquor Control Code.
What’s the fine print?
Michigan special license for beer, wine and spirits for consumption on the premises surety bonds are required by the Michigan Department of Licensing and Regulatory Affairs Liquor Control Commission. If the bond is to be canceled or terminated, 60 days prior notice must be given to the department by the surety. These bonds are valid for one year from the effective date.
This particular surety bond must be filed and received by the Department at least 10 days prior to the specified event. The president or secretary of the nonprofit must sign the bond. No bond is required for church or school entities, and the bond prevents the advertisement or sale of unlimited quantities of alcohol for a set price and “BYOB” (Bring-Your-Own-Bottles) events.
These bonds are also referred to as one-day liquor on premises surety bonds.
How to become a special event alcohol provider in Michigan
Although the same application and surety bond can be used for consecutive days of an event at the same location, a separate license fee is required for each day of the event. An organization may obtain up to twelve special licenses per year. Without a license, it is illegal for a nonprofit organization to sell any kind of liquor or spirits at an event. Even with a license, all profits must benefit the nonprofit organization as a whole and should not be for the benefit of a sole recipient.
The special license is issued at a cost of $50 for organizations established for less than a year. For all other organizations, the licensing cost is $25. If the event is held on a Sunday, an additional charge will be in the amount of $3.75 or $7.50 respectively.
If the event is being held within 500 meters of a church or school, a representative of the church/school must submit a signed statement of approval of the event.
Be sure that your nonprofit organization is registered as a nonprofit prior to submitting a special license application. If it is not previously registered, submit applicable papers to the department with the application.