The bill amends the Michigan liquor control code of 1998 by adding a new section, 1016, which allows licensees to donate a portion of their profits to tax-exempt organizations under section 501(c)(3) of the Internal Revenue Code. This provision overrides existing regulations in section 609(1) and R 436.1041 of the Michigan Administrative Code, provided that the licensee properly records their profits before making the donation.
Additionally, the bill stipulates that if the receiving organization has a special license, the donation cannot be used to cover any costs associated with the event for which that special license was issued. This aims to ensure that donations are used for charitable purposes rather than to subsidize licensed events.
Statutes affected: House Introduced Bill: 436.1101, 436.2303