Bill
HB 5926
The bill tightens direct wine shipping rules by imposing a 1,500 nine-liter case annual cap, strict licensing, age/tax compliance, labeling, and quarterly reporting.
HB 5926 (Michigan) – Liquor: wine; volume cap on direct shipping; increase
Session: 2025-2026 | Jurisdiction: Michigan
Introduced: 2026-04-30 | Sponsor: Rep. Pauline Wendzel (with several co-sponsors)
Purpose
- The bill amends section 203 of the Michigan Liquor Control Code (1998 PA 58), as amended. It modifies rules governing the shipment and delivery of wine by direct shippers and the delivery of beer, wine, and spirits by retailers and related third-party facilitators. The aim is to adjust how wine is shipped directly to consumers and to clarify/expand regulatory controls over delivery and taxation within Michigan’s 3-tier system.
Key Provisions and Changes
1) General framework (Section 1 and subsections)
- Maintains that most alcoholic liquor transactions (sale, delivery, import) must occur through the Michigan Liquor Control Commission (MLCC), the commission’s authorized agents, distributors, licensees, or upon written order by the MLCC.
- Retains the 3-tier intent: manufacturer/wholesaler to retailer to consumer, with direct shipment governed separately for wine.
2) Direct shipping of wine (Section 4)
- Establishes or updates direct shipper requirements for wine:
- Direct shipper license required.
- Golden rules on taxation: direct shippers must pay applicable Michigan taxes to the MLCC and applicable taxes to the Department of Treasury; provide affidavits on request.
- Age verification: must verify buyer’s age via photo ID or age verification service; records must be kept and available to the MLCC on request.
- Age and delivery compliance: delivery personnel must check recipient’s age at delivery and confirm the recipient is the purchaser or designated recipient; if not 21+, delivery must be refused.
- Shipping container labeling: outside container must state “Contains Alcohol. Must be delivered to a person 21 years of age or older.”
- Top-panel labeling: must include the order’s sender and recipient names/addresses (if different).
- Registration and location rules: wine imported into Michigan must have MLCC approval/registration; such approval numbers need not appear on the wine’s invoice or label.
- Annual volume cap: direct ship of wine is subject to a cap of 1,500 9-liter cases, or 13,500 liters total per calendar year to Michigan consumers. If the licensee owns multiple direct shippers, the combined cap across all operations is 13,500 81,000 liters per year.
- Reporting: quarterly wine tax payments and quarterly reporting by type, brand, and price, including order numbers.
- Audits: MLCC and Department of Treasury may audit direct shippers.
- Jurisdiction: direct shippers consent to enforcement by MLCC, Treasury, and courts.
3) Other delivery mechanisms and third-party facilitators (Sections 3, 12-18)
- Retailer deliveries (subsection 3): Direct-to-consumer deliveries by qualified retailers using common carriers must meet age verification, tax compliance, and delivery labeling requirements.
- Third-party facilitator services (subsections 15-16, 17-18): Allows qualified retailers with special licenses to employ third-party facilitator services for delivery or sale, including internet/mobile app facilitation. Conditions include age verification, independence from alcohol manufacturers/distributors, costs borne by retailer/consumer, and service coverage for all brands at the retailer.
- Licenses and fees: Third-party facilitator licenses may be required, with potential application/initial/renewal fees established by the MLCC.
4) Records, annual reporting, and compliance (Sections 19-24)
- Common carriers and third-party facilitators must submit quarterly reports detailing deliveries, shipper/recipient information, weight, and dates.
- Records retention: 3-year record-keeping for reports, with inspection rights for MLCC and local law enforcement on request.
- Freedom of Information Act (FOIA) applicability: reports may be disclosed under FOIA.
5) Definitions and terminology (Section 25)
- Defines key terms: common carrier, consumer, direct shipper, qualified retailer, qualified small distiller, third-party facilitator service, and related terms used throughout the act.
Who Is Affected
- Wine manufacturers/sellers that operate as direct shippers to Michigan consumers.
- Retailers licensed to sell alcohol for off-premises consumption (qualified retailers) and their employees.
- Third-party facilitator services that arrange or deliver alcohol to consumers.
- Consumers in Michigan who receive direct wine shipments or retailer-delivered products.
- MLCC and Michigan Department of Treasury for tax collection, auditing, and compliance oversight.
- Out-of-state wine producers that qualify as direct shippers or small distillers under the act.
Procedural and Timeline Aspects
- Status: Introduced and referred to the Committee on Regulatory Reform (as of 2026-04-30).
- Effective date: The bill text does not specify an immediate effective date; typical enactments include a future effective date upon passage and signing. Implementation would require MLCC rulemaking to align with new caps, licensing, reporting, and third-party facilitator licenses.
Notes
- The bill places tighter caps on direct wine shipments to Michigan and adds extensive compliance, labeling, and reporting requirements to ensure oversight within the state’s regulatory framework.
- It also adds or clarifies allowances for common carriers and third-party facilitator services under stricter regulatory controls.
Compiled from official sources — confirm details with the bill’s official record.
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