Liquor: authorized distribution agents; authorized distribution agent fees; increase. Amends sec. 205 of 1998 PA 58 (MCL 436.1205).

The effective date for the $12.50 per-case payment was delayed from March 1, 2025 to July 1, 2026, and the annual CPI adjustment start date moved from October 1, 2025 to October 1, 2026.

Section 12 now requires state administrative board approval before the commission can make additional payments to authorized distribution agents, a condition not present in the Senate version.

The methodology for additional payments must now be designed to reflect reasonable and necessary costs of warehousing, distribution, and related logistics services, and must be applied uniformly to similarly situated authorized distribution agents.

Added detailed procedures for delivering spirits to retailers in locations inaccessible by motor vehicle, including specific steps for ferry transport and payment handling.

Introduced a new provision allowing retailers to place up to 12 special emergency orders per year, with strict time limits for fulfillment and a capped delivery fee of $20.

Added a requirement for specially designated distributors to limit sales to on-premises retailers to 120 liters per calendar year.

Mandated that authorized distribution agents maintain and provide contracts with suppliers to the commission upon request.

Established a new payment offset of $8.25 to $12.50 per case from the commission to vendors to cover warehousing costs, with an automatic annual adjustment mechanism tied to the Consumer Price Index.

Created a separate $1.75 per case payment from vendors to authorized distribution agents, which can be increased by agreement between the parties.

Added formal definitions for 'case' (12 bottles) and 'Consumer Price Index' to standardize financial calculations.

Modified the eligibility criteria for authorized distribution agents to explicitly require a written agreement with a spirits supplier and an adequate warehousing facility within the state.

New detailed procedures were added for delivering spirits to retailers in locations inaccessible by motor vehicle, involving coordination with ferry and drayage companies for payment and transport.

Authorized distribution agents are now explicitly responsible for all transportation costs, breakage, and shortages until the order reaches the retailer, though they can seek reimbursement from carriers.

New limits were established allowing specially designated distributors to sell up to 120 liters of spirits annually to on-premises retailers, with specific reporting requirements.

The per-case payment offset for vendors was adjusted to start at $12.50 beginning July 1, 2026, with annual adjustments based on the Consumer Price Index or 5%, whichever is lower.

A new provision allows the commission to make additional payments to distribution agents based on a methodology reflecting reasonable warehousing and logistics costs.

New definitions were added clarifying that a 'case' consists of twelve 750 ml bottles and defining the 'Consumer Price Index' for calculation purposes.

A new right to appeal was granted to authorized distribution agents aggrieved by penalties, allowing them to invoke hearing and appeal procedures.

Removed large blocks of blank lines and adjusted indentation to standardize the document layout.

Replaced internal tracking identifiers (e.g., 'euaozr') with new ones (e.g., 'hkud48') to reflect the document's revision history.

Updated the title header to indicate the bill has passed the House and changed the effective date to July 3, 2026.

Replaced the original page footer tracking codes with new internal document identifiers (e.g., changing 'hkud48' to 'euaozr').

Added a new provision requiring the commission to prescribe uniform business operating procedures and rules for authorized distribution agents.

Introduced a minimum order requirement of up to 2 cases for spirits delivery, allowing retailers to pick up products at the warehouse.

Created a new subsection (5)(d) detailing specific steps for ferry transport companies to move orders to island docks for immediate retailer delivery.

Expanded the penalties for violations to explicitly list suspension, revocation, and forfeiture alongside existing penalty provisions.

Updated delivery rules to include specific procedures for inaccessible locations, such as coordinating ferry transport and drayage services, and clarified that agents are responsible for costs and breakage until delivery is complete.

Introduced a new provision allowing specially designated distributors to sell up to 120 liters of spirits annually to on-premises retailers, with mandatory monthly reporting requirements for these purchases.

Established a new payment system where the commission pays vendors an offset of $8.25 to $12.50 per case (starting at $12.50 in 2025) to cover warehousing costs, plus a separate $1.75 fee paid by vendors to agents.

Added formal definitions for 'case' (12 x 750ml bottles) and 'Consumer Price Index' to ensure consistent application of future fee adjustments.

Refined eligibility criteria for authorized distribution agents to ensure they have adequate warehousing facilities and written agreements with suppliers before appointment.

Set specific effective dates for new compensation rates (March 1, 2025) and established a deadline (July 1, 2020) for the commission to create electronic reporting forms.