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 a fixed payment of $1.75 per case to be paid by vendors to authorized distribution agents, which is not subject to state sales tax or commission markup. The bill further defines terms such as "case" and "Consumer Price Index" to ensure clarity in its implementation. Overall, the amendments aim to enhance the operational framework for liquor distribution in Michigan while ensuring compliance and accountability among authorized agents.

Statutes affected:
Senate Introduced Bill: 436.1205
As Passed by the Senate: 436.1205