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 at $12.50 per case from March 1, 2025. It also establishes that vendors must pay a fixed fee of $1.75 per case to the authorized distribution agent, which will not be subject to the commission's markup or taxes. The bill further clarifies definitions related to the industry, such as what constitutes a "case" and the meaning of the "Consumer Price Index." Overall, these amendments aim to enhance the efficiency and accountability of the liquor distribution process in Michigan.

Statutes affected:
House Introduced Bill: 436.1205