A group of bills were signed into law that include important changes to the laws regulating the brewing industry in Michigan. The Michigan Brewers Guild was actively involved throughout the process for more than a year, which ultimately lead to these changes. The package of bills all relate to the Liquor Control Code and several amend regulations for breweries.
A summary of all of the bills included in the package follows with additional detail provided for key bills relating to breweries.
SB 504 – This bill revises some language in the liquor code to not say "liberally construed" but "construed to the effect and intent"
SB 505 - This bill allows licensed retailers (bars, restaurants, etc.) to use certain items referred to as “barware” with brewery/brand logos given certain conditions and restrictions. This has been referred to as a bill dealing with “Secondary Use” items. Logo glassware and other items must be purchased by a retailer from an independent third party and cannot be supplied by the brewery or wholesaler.
SB 506 – This bill allows beer producers in Michigan to designate their wholesalers to pay the per barrel tax if they chose.
SB 507 – This bill allows wine makers to designate their wholesalers to pay the tax on the sale of their wine.
SB 650 – This bill allows limited self-distribution for Microbrewers given certain restrictions and conditions:
- Must produce less than 1,000 barrels of beer per year (including tap room sales)
- Cannot deliver to retailers located within a sales territory where sales rights have already been assigned to a wholesaler
- Beer must be delivered by the Microbrewer in a vehicle owned by the Microbrewer Must comply with MLCC provisions relating to employees and vehicles used to deliver beer, price schedules, etc. This means you have to follow any regulations that a wholesaler would.
HB 4709 – This bill changes the definition of Microbrewer by increasing the amount of beer that can be produced under that license from 30,000 barrels to 60,000 barrels annually.
HB 4710 – This bill increases the number of Brewpubs that an individual can own from 3 to 6 and increases the quantity of beer that can be produced by these brewpubs (combined) from 5,000 barrels to 18,000 barrels annually.
HB 4711 – This bill increases the number of locations where a licensed Brewer (produces more than 60,000 barrels) can sell its beer for on-premise consumption from 1 to 2 locations. This bill also limits a Microbrewer that produces between 30,000 - 60,000 barrels to selling beer for consumption on-premise at no more than 3 locations. The number of locations for Microbrewers under 30,000 barrels remains unchanged (not limited).
HB 4277 – This bill allows the MLCC to issue conditional liquor licenses in certain situations.