The bill amends the Michigan Liquor Control Code of 1998, specifically section 205, to update the regulations surrounding authorized distribution agents for spirits. It establishes criteria for eligibility, including the requirement for agents to have a written agreement with a supplier, adequate warehousing facilities, and prohibits any direct or indirect interests between agents, suppliers, and retailers. The bill mandates that authorized distribution agents deliver spirits to retailers at least weekly, with provisions for special emergency orders to be fulfilled within 18 hours. Additionally, it outlines procedures for deliveries to locations inaccessible by motor vehicle and specifies the responsibilities of agents regarding transportation and delivery charges.

Significant changes include the introduction of a structured payment system for vendors of spirits, which will start at $12.50 per case beginning March 1, 2025, and will be adjusted annually based on the Consumer Price Index. The bill also clarifies that these payments must not be included in the cost of purchasing spirits and are exempt from the commission's markup and taxes. Furthermore, it defines key terms such as "case" and "Consumer Price Index" to ensure clarity in the application of the law. Overall, the bill aims to enhance the efficiency and accountability of the distribution process for spirits in Michigan.

Statutes affected:
House Introduced Bill: 436.1205