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MI HB4403

MI HB4403
Liquor: other; leasing, selling, and transferring portions of certain alternating proprietors under approval of commission; allow. Amends secs. 105 & 603 of 1998 PA 58 (MCL 436.1105 & 436.1603).


summary

Introduced
04/29/2025
In Committee
08/13/2025
Crossed Over
06/26/2025
Passed
08/19/2025
Dead
Signed/Enacted/Adopted
08/19/2025

Introduced Session

103rd Legislature

Bill Summary

AN ACT to amend 1998 PA 58, entitled ?An act to create a commission for the control of the alcoholic beverage traffic within this state, and to prescribe its powers, duties, and limitations; to provide for powers and duties for certain state departments and agencies; to impose certain taxes for certain purposes; to provide for the control of the alcoholic liquor traffic within this state and to provide for the power to establish state liquor stores; to prohibit the use of certain devices for the dispensing of alcoholic vapor; to provide for the care and treatment of alcoholics; to provide for the incorporation of farmer cooperative wineries and the granting of certain rights and privileges to those cooperatives; to provide for the licensing and taxation of activities regulated under this act and the disposition of the money received under this act; to prescribe liability for retail licensees under certain circumstances and to require security for that liability; to provide procedures, defenses, and remedies regarding violations of this act; to provide for the enforcement and to prescribe penalties for violations of this act; to provide for allocation of certain funds for certain purposes; to provide for the confiscation and disposition of property seized under this act; to provide referenda under certain circumstances; and to repeal acts and parts of acts,? by amending sections 105 and 603 (MCL 436.1105 and 436.1603), as amended by 2022 PA 226.

AI Summary

This bill modifies Michigan's alcoholic beverage laws to provide more flexibility for businesses in the alcohol production industry, specifically focusing on alternating proprietorship arrangements. Under these arrangements, multiple wine makers, brewers, distillers, or mixed spirit manufacturers can take turns using the same physical space and equipment to manufacture their respective alcoholic products, in compliance with federal regulations. The bill allows the Michigan Liquor Control Commission to approve such arrangements for wine makers, brewers, distillers, and mixed spirit manufacturers, provided they receive written approval from the U.S. Department of Treasury's Alcohol and Tobacco Tax and Trade Bureau. This change enables smaller alcohol producers to share production facilities, potentially reducing overhead costs and barriers to entry in the industry. The bill also clarifies definitions related to alternating proprietorship and reinforces existing regulations about maintaining separation between different tiers of the alcohol industry (suppliers, wholesalers, and retailers), while providing some specific exceptions that allow for more operational flexibility for certain types of licensees like brewpubs and small producers.

Committee Categories

Government Affairs

Sponsors (5)

Last Action

Assigned Pa 9'25 (on 08/19/2025)

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