September 14, 2016, Introduced by Rep. Hooker and referred to the Committee on Regulatory Reform.
A bill to amend 1998 PA 58, entitled
"Michigan liquor control code of 1998,"
by amending section 409 (MCL 436.1409), as amended by 2014 PA 48.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 409. (1) Except as provided in this section, the
commission shall levy and collect a tax on all beer manufactured or
in this state at the
rate of $6.30 following rates per barrel
the beer is sold in bulk or in different quantities:
(a) Through December 31, 2016, $6.30 per barrel.
(b) Beginning January 1, 2017, $21.70 per barrel.
(c) Beginning with the rate effective January 1, 2018 and
January 1 of each even year thereafter, the commission shall
determine the per barrel rate by multiplying the rate in effect
during the immediately preceding calendar year by the inflation
rate and rounding the product to the nearest 1/10 of a cent.
Before February 1, 2015, the tax
must be paid by the
brewer or brewpub if manufactured in this state or by the
wholesaler or the person from whom purchased if manufactured
outside this state, whichever is designated by the commission.
Beginning on and after February 1,
2015, the tax shall
must be paid by the brewer or brewpub if the beer is manufactured
in this state or if the beer is manufactured outside this state the
shall must be paid by the wholesaler assigned to distribute
the beer and the tax shall must be
levied and collected on the
number of barrels the wholesaler actually sold to licensed
retailers in this state. A brewer may designate a wholesaler to pay
the tax on behalf of the brewer. If a brewer designates a
wholesaler to pay the tax on its behalf, the brewer shall notify
the commission of the designation and provide the commission with a
copy of its brewer's report of operations that it filed with the
and tobacco tax Alcohol and Tobacco
Tax and trade bureau
Bureau of the United States
of treasury Department
of Treasury for each calendar year.
The commission shall establish by
rule a method for
the collection of the tax levied under subsection (1) and reporting
requirements for wholesalers, brewers, brewpubs, and outstate
sellers of beer to verify the remission of taxes to this state. The
commission shall not require that the tax be paid in less than
intervals. The rules
be promulgated pursuant to
under the administrative procedures act of 1969, 1969 PA 306, MCL
24.201 to 24.328.
The tax levied in subsection (1) shall
must not be
collected on beer that is consumed on the premises of the
manufacturer or is damaged in the process of brewing, packaging,
and distribution and is not offered for sale.
However, beer sold by a brewpub for consumption on the
premises or beer produced and consumed on the premises of a micro
brewer is subject to the tax levied under subsection (1).
The tax levied under subsection (1)
shall must be
to the person that paid the tax if
that the person provides
satisfactory proof to the commission that the beer was shipped
outside of this state for sale and consumption outside this state.
For the purposes of the tax levied
(1), a barrel of beer contains 31 gallons.
The commission may promulgate a
rule that designates
states or the laws or the rules of other states that require a
prohibits all licensees from
possessing, or selling any beer manufactured in the follow states:
(a) Any state that requires a wholesaler of beer to pay an
additional fee for the right to purchase, import, or sell beer
in this state.
(b) Any state that denies the issuance of a license
the importation of beer to
wholesaler of beer in
who that applies for the license. ;
(c) Any state that prohibits wholesalers of beer in that state
from possessing or selling beer purchased in this state, unless the
person from whom the beer was purchased has secured a license and
paid a fee in that state, if the seller does not transport the beer
the state and does not sell the beer in the state.
(d) Any state that imposes any higher taxes or inspection fees
upon beer manufactured in this state when transporting the beer
into or selling the beer in that state than taxes or fees imposed
beer manufactured and sold within that state.
under this subsection shall prohibit all licensees from
receiving, possessing, or selling any beer manufactured
any state designated in the rule.
A rule promulgated under
effective as provided in section 47 of the administrative
act of 1969, 1969 PA 306, MCL 24.247.
Any A licensee or
adversely affected by a rule promulgated under
(8) is entitled to review by leave
to by a
regarding the question as to of whether the
commission acted illegally or in excess of its authority in making
this subsection (8)
with respect to any state.
Regardless of whether the tax was
remitted to this
state by the eligible brewer or a designated wholesaler, an
eligible brewer may claim a credit or request a refund, in a manner
as determined by the commission, against the tax levied under
subsection (1) in the amount of $2.00 per barrel for the first
30,000 barrels. As used in this subsection, "eligible brewer" means
a brewer, whether or not located in this state, or brewpub that
manufactures not more than 50,000 barrels of beer during the tax
year for which the credit is claimed. In determining the number of
barrels for purposes of the credit, all brands and labels of a
shall must be combined and all facilities for the production
beer that are owned or controlled by the same person
be treated as a single facility.
(11) Beginning January 1, 2017, the legislature shall
appropriate revenue generated from the tax under subsection (1)
from an increase in the per barrel rate above $6.30 in the
(a) To the office of recovery oriented systems of care in the
department of health and human services for substance use disorder
treatment and rehabilitation services, 60%.
(b) To the department of state police for enforcement of
underage drinking laws, drunk driving, and smuggling of alcoholic
(c) To the office of highway safety planning in the department
of state police for grants to local law enforcement agencies
providing prevention and enforcement of underage drinking laws, 3%.
(d) To the commission for the enforcement of this act, 4%.
(e) To the state court administrative office to support drug
treatment courts and DWI/sobriety courts under chapter 10A of the
revised judicature act of 1961, 1961 PA 236, MCL 600.1060 to
600.1084, and veterans treatment courts under chapter 12 of the
revised judicature act, 1961 PA 236, MCL 600.1200 to 600.1212, 4%.
(f) To the department of corrections for treatment of
prisoners under its jurisdiction, 3%.
(g) To the children's trust fund created in 1982 PA 249, MCL
21.171 to 21.172, for early childhood and prevention and education,
(h) To the department of military and veterans affairs for
prevention, treatment, and recovery support services for veterans
and their families, 4%.
(i) To the department of natural resources for alcohol and
drug enforcement, 0.5%.
(j) To the department of state for prevention, enforcement,
and oversight of ignition interlock, 1%.
(k) To the department of education for fund infrastructure
for model curriculum for and counseling services to support
intervention, treatment, and recovery support, 3%.
(l) To the behavioral health and developmental disabilities
administration within the department of health and human services
to prevent fetal alcohol spectrum disorder, 4%.
(m) To the department of health and human services to contract
with governmental or private organizations that provide substance
use disorder prevention services or substance use disorder
treatment and rehabilitation services, or both, 7%.
(12) The money appropriated under subsection (11) may not be
used to supplant previously appropriated money.
(13) The director of the office of recovery oriented systems
of care within the department of health and human services shall
establish an oversight committee to review the distribution of
money appropriated under subsection (1). The oversight committee
shall make recommendations to the legislature regarding the funding
under subsection (2). The oversight committee consists of the
(a) One member appointed by the speaker of the house of
(b) One member appointed by the senate majority leader.
(c) One member appointed by the chairperson of the commission.
(d) The director of the office of recovery oriented systems of
care or his or her designee.
(e) The following members appointed by the governor:
(i) One member representing the Michigan Prevention
(ii) One member representing the treatment provider community,
nominated by the office of recovery oriented systems of care.
(iii) One member representing the recovery community nominated
by Michigan Recovery Voices.
(iv) One member representing the Michigan Association of
Chiefs of Police.
(v) One member of the impaired driving action team of the
office of highway safety within the department of state police.
(14) As used in this section:
(a) "Consumer price index" means the United States consumer
price index for all urban consumers as defined and reported by the
United States Department of Labor, Bureau of Labor Statistics.
(b) "Inflation rate" means the annual percentage change in the
consumer price index, as determined by the commission, comparing
the 2 most recent October 1 through September 30 periods that are
immediately preceding the effective date of the rate prescribed
under subsection (1)(c), converted to decimals. If the annual
percentage change is negative, the inflation rate is zero.
(c) "Substance use disorder prevention services" means that
term as defined in section 100d of the mental health code, 1974 PA
258, MCL 330.1100d.
(d) "Substance use disorder treatment and rehabilitation
services" means that term as defined in section 100d of the mental
health code, 1974 PA 258, MCL 330.1100d.