The bill amends the Michigan Liquor Control Code of 1998, specifically section 205, to establish clearer guidelines and requirements for authorized distribution agents responsible for warehousing and delivering spirits to retail licensees. It outlines the eligibility criteria for these agents, including the necessity of a written agreement with a supplier, adequate warehousing facilities, and the prohibition of any direct or indirect interests in suppliers or retailers. The bill mandates that authorized distribution agents deliver spirits to retailers at least weekly, with provisions for special emergency orders, and specifies the responsibilities of agents regarding transportation and delivery charges.

Additionally, the bill introduces new payment structures for vendors of spirits, including a per-case offset that will be adjusted annually based on the Consumer Price Index. Starting March 1, 2025, the offset will be set at $12.50 per case, with further adjustments each October. The bill also clarifies definitions related to the industry, such as "case" and "Consumer Price Index," and allows the commission to make additional payments to authorized distribution agents based on established methodologies. Overall, the amendments aim to enhance the operational framework for the distribution of spirits in Michigan while ensuring compliance and accountability among distribution agents.

Statutes affected:
Substitute (H-1): 436.1205
House Introduced Bill: 436.1205
As Passed by the House: 436.1205