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 purchases of alcoholic liquor. Additionally, it introduces a certification process for small distillers, allowing them to apply for recognition as qualified small distillers if at least 40% of their base distillate is derived from qualified grain grown in Michigan.

Furthermore, the bill stipulates that starting January 1, 2023, the price for each bottle of distilled spirits produced by a qualified small distiller must yield a gross profit of 32.5% to the commission. It also outlines the responsibilities of qualified small distillers, including maintaining accurate records of their operations and the consequences for providing false information during the certification process. The bill aims to support local agriculture by promoting the use of Michigan-grown grains in the production of distilled spirits while ensuring compliance with state regulations.

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