Alternating Proprietorship Application {LCC-155}

ALTERNATING PROPRIETORSHIP APPLICATION. Pursuant to MCL 436.1603(9)(a), the Commission may approve an alternating proprietorship under which one Wine Maker or Small Wine Maker licensee (referred to as the “tenant licensee”) may contract with another Wine Maker or Small Wine Maker licensee (referred to as the “host licensee”) to manufacture wine on the host licensee's premises using its equipment. Pursuant to MCL 436.1603(9)(b), the Commission may approve an alternating proprietorship under which one Brewer or Micro Brewer licensee (referred to as the “tenant licensee”) may contract with another Brewer or Micro Brewer licensee (referred to as the “host licensee”) to manufacture beer on the host licensee's premises using its equipment. Both licensees in an alternating proprietorship must be licensed under the appropriate license type and must comply with all federal Alcohol and Tobacco Tax and Trade Bureau (TTB) requirements for manufacturing. Both licensees must have their own separate licensed premises as defined in administrative rule R 436.1001(1)(i). The equipment of the host licensee will be used by the tenant licensee, but all the ingredients, the bottles, the labels, and any other items necessary for the manufacturing of the beer or wine will need to be owned by the tenant licensee for use at the host licensee's premises. Federal law allows the tenant licensee to hire the services of the host licensee's production and office employees to facilitate the making of the beer or wine as part of the alternating proprietorship agreement. During the time that the tenant licensee is employing the services of the host licensee's employees, the tenant licensee must be the one directing their work and is responsible for all the steps of the production of the beer or wine, pursuant to the terms of the alternating proprietorship agreement. At the end of the process, the finished beer or wine will be wholly owned by the tenant licensee and will not be purchased from the host licensee. www.FormsWorkflow.com