The bill amends the Michigan Liquor Control Code of 1998, specifically section 233, to establish new pricing structures and certification processes for small distillers. It mandates that the Michigan Liquor Control Commission set uniform prices for alcoholic liquor sold by specially designated distributors, ensuring a gross profit margin of 51% to 65%. The bill increases the discount for specially designated distributors and on-premises licensees from 17% to 23% on alcoholic liquor purchases. Additionally, it introduces a certification process for small distillers, allowing them to apply for qualified status if at least 40% of their base distillate is derived from qualified grains grown in Michigan.

Furthermore, the bill stipulates that starting January 1, 2023, the gross profit margin for each bottle of distilled spirits produced by a qualified small distiller must be set at 32.5%. It outlines the responsibilities of qualified small distillers, including maintaining accurate records of their operations and transactions. The bill also establishes penalties for those who provide false information during the certification process, which may result in misdemeanor charges and financial restitution to the commission. Overall, the amendments aim to support local distillers while ensuring compliance with state regulations.

Statutes affected:
House Introduced Bill: 436.1233
As Passed by the House: 436.1233