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SB 604

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

2025-2026 Regular Session Introduced by Dayna Polehanki and 1 co-sponsor

SB 604 increases fees for Michigan's authorized alcohol distribution agents, potentially raising costs throughout the state's beverage supply and distribution system.

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Bill Summary · SB 604

Legislative bill overview

SB 604 amends Michigan's liquor control law to modify provisions regarding authorized distribution agents and their associated fees. The bill specifically revises Section 205 of the 1998 Public Act 58, which governs the licensing and operations of entities permitted to distribute alcoholic beverages in Michigan.

Why is this important

Changes to distributor fees and licensing requirements directly affect the cost structure of Michigan's alcohol supply chain, which can influence retail prices, business profitability, and market competition. These modifications may impact both large distributors and smaller craft beverage producers seeking distribution access.

Potential points of contention

  • Fee burden clarity: Without seeing the specific fee increases, stakeholders disagree on whether higher fees reasonably fund regulatory oversight or create barriers to market entry for smaller distributors
  • Market competition effects: Large established distributors may welcome fee increases that discourage new competitors, while craft beverage producers may view them as anti-competitive
  • Regulatory purpose: Uncertainty about whether fee revenue funds expanded oversight or simply increases state revenue, affecting perceived fairness of the increases

Compiled from official sources — confirm details with the bill’s official record.

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