The bill amends the Michigan liquor control code of 1998 by revising section 903b to establish new regulations regarding dishonored payments made by retailers to wholesalers. It specifies that a retailer, or their employees, violates the act if they make a payment to a wholesaler that is dishonored by a financial institution for any reason. The previous language that included "the commission, or this state" and "lack of sufficient funds" has been removed.

Additionally, the bill introduces a structured administrative fee system for wholesalers when a retailer's payment is dishonored. The fees are tiered based on the number of dishonored payments within a 12-month period, starting at $50 for the first instance and escalating to $250 for the fifth or any subsequent dishonored payment. This amendment aims to provide clearer consequences for retailers who fail to make valid payments, thereby enhancing the financial accountability within the liquor distribution system.

Statutes affected:
Senate Introduced Bill: 436.1903
As Passed by the Senate: 436.1903