The bill amends the Michigan liquor control code of 1998, specifically 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. This replaces the previous language that included "lack of sufficient funds" as a condition for violation.

Additionally, the bill introduces a structured administrative fee system for wholesalers to impose on retailers who make dishonored payments. The fees escalate with each subsequent dishonored payment within a 12-month period, starting at $50 for the first offense and increasing to $250 for the fifth or any subsequent offense. This aims to create a financial deterrent for retailers to ensure timely and valid payments to wholesalers.

Statutes affected:
Senate Introduced Bill: 436.1903