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Michigan Licensed Beverage Association


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TIME-SENSITIVE: MLCC UPDATES BUY-BACK ORDER THROUGH NEW ADMINISTRATIVE ORDER

Mason Doerr  | Published on 4/16/2020

At its 10:30 a.m. meeting this morning, MLCC rescinded LCC Administrative Order 2020-16 and approved LCC Administrative Order 2020-17, to provide an updated implementation of the spirits buy-back program.

The new order creates an exclusion for expired or delisted (OLO) products from being eligible for the buy-back program. The order also clarifies that all spirits sold back to the state as part of the buy-back program must be kept safe and remain on the licensee’s premises.

Previously, the buy-back program was interpreted as an “all or nothing” scenario, where licensees were either required to buy back all of the spirits sold back to the state, or relinquish all of the spirits to MLCC after a 90-day period following the end of the shutdown.

Today, Don McGehee, from the Department of Attorney General, clarified that licensees will be allowed to sell spirits sold back to the state upon re-opening. Once the 90-day window to pay the state back ends, any unsold spirits that were sold by licensees back to the state as part of the buy-back program, will be picked up by MLCC and any revenue generated from selling the spirits that were sold as part of the buy-back program can be used to pay back that portion of the buy-back amount owed.

However, it should also be noted that participants will not be able to place a spirits order through the state until all unsold spirits are picked up by MLCC. Until that 90-day window ends, licensees will be able to place orders per usual. The AG’s Office did say that MLCC will be required to pick spirits up within a timely matter.

According to MLCC Business Manager Kerry Krone, 22 licensees have submitted the initial opt-in form and 11 have submitted a full inventory list.

The full Administrative Order 2020-17 is not yet available online, however, it will be shortly. If you’re interested in reading the full order, keep checking here: https://www.michigan.gov/lara/0,4601,7-154-89334_10570—,00.html

MLCC also released a FAQ sheet specifically for the spirits buy-back program.

CLICK HERE FOR THE FAQ SHEET!

 

Thank you.

– MLBA Staff –