The bill amends the Michigan Liquor Control Code of 1998, specifically section 233, to establish new regulations regarding the pricing and sale of alcoholic liquor by specially designated distributors. It mandates that the commission set uniform prices that yield a gross profit of no less than 51% and no more than 65%. Additionally, if alcoholic liquor has not met sales standards for six months, the commission can sell it at a price approved by the state administrative board. The bill also allows the commission to set prices for sales to hospitals, charitable institutions, and military establishments. Notably, the discount for specially designated distributors and on-premises licensees is increased from 17% to 23%.

Furthermore, the bill introduces provisions for small distillers, allowing them to apply for certification as qualified small distillers if at least 40% of their base distillate is derived from qualified grain grown in Michigan. The certification process includes a reasonable fee and mandates that the department of agriculture and rural development submit annual reports on certified distillers. The bill establishes a gross profit requirement of 32.5% for each bottle of distilled spirits manufactured by qualified small distillers starting January 1, 2023. It also outlines penalties for those who provide false information during the certification process and requires qualified small distillers to maintain accurate records of their operations.

Statutes affected:
House Introduced Bill: 436.1233