The bill amends the Michigan liquor control code of 1998 by updating section 903b to clarify the conditions under which a retailer is considered to be in violation of the act. Specifically, it states that a retailer, or their employees, violates the act if they make a payment to a wholesaler that is subsequently dishonored by a financial institution for any reason. The previous language that specified dishonored payments due to "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 increase with 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 tiered fee structure aims to incentivize timely and valid payments from retailers to wholesalers.

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