[{"_1":2,"_112":-5,"_113":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88,100],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6476703,"mediaKeyId","5717615-0e1b012ecd3f49147231a8b584f833f9","parentId",5717615,"title","Bill would tie liquor distribution fee increases to CPI, industry and distributors tell committee","audioSeconds",399,"startMs",3513000,"endMs",3912000,"viewUrl","/Search/View?dp=1&key=5717615-0e1b012ecd3f49147231a8b584f833f9&start=3513&end=3912","thumbnailUrl","https://assets.pipeline.soar.com/5717615-0e1b012ecd3f49147231a8b584f833f9/thumbnail_3513000.jpg","articleUrl","/articles/6476703/Michigan/Bill-would-tie-liquor-distribution-fee-increases-to-CPI-industry-and-distributors-tell-committee","mediaUrl","https://secure.pipeline.soar.com/6476703-c28d0184993813849fa2348f0b83b59f/orig.mp4?Expires=1773563195&Signature=XQk9kZ~lKZ1aKnG7vsuBIRQcVHL1YCnIcaKkDePtGbQelWf8MCXC-2gokgJEXkQ1GOebGQqnDuzdn1766yq4oYefyHs9U1cp-od5liv30Q5V59E7QrBxCqzkA3IVBF1CU8IT-Cn~vFZxcH8i5zCZXui4R4sqsiSu0TXCyQk6mmZRqDaziAL24k7by7Yegr-GRcTIN79RQ9oVz5ncuBOEDx9rT~PFJQEwyUPKiZJo2N8Hhadq4lLsQp2Hi8T-0b4H580HDpLFHB6EGelUXz7mVIcRcz0U2AQVGFZfMOH7WXvQalsQvt-UAITn3sWs6s84W7U6pjvhN7MbI4UcbDS80g__&Key-Pair-Id=KUT5TJCACFTXG","author","Michigan Legislature","date","2025-09-02T16:34:06Z","article","Lansing — Representative Wenzel and industry representatives told the House Regulatory Reform Committee on Wednesday that a bill to update Michigan’s distribution-agent structure would create predictability for the state and for the distributors who deliver distilled spirits across Michigan.

\"This legislation creates stability for the state, for the distributors who move every bottle of spirits across Michigan, and for the distillers who depend on a dependable supply chain and budget certainty to reach their customers,\" Representative Wenzel said in opening remarks to the committee. The bill would tie future increases in distributor fees to the consumer price index or 5 percent, whichever is less; allow the Liquor Control Commission to authorize one-time emergency funding if necessary; and clarify that those costs are to be paid from the statutory markup the state applies to spirit sales.

Industry witnesses described rising operational costs and delivery burdens and urged passage. Tony Mitchell of the Michigan Spirits Association said the state-run wholesale system is unusual and that the legal structure requires the state and its authorized distributor agents (ADAs) to maintain a reliable supply chain for retailers. Steve Rascho of RNDC described day-to-day operational costs, workforce and delivery demands — \"we run approximately 170 trucks a day\" — and said the business needs modest, predictable fee adjustments to keep the distribution system functioning. He told the committee the company picks roughly 125,000 bottles per night for Michigan deliveries and highlighted return handling and breakage as drivers of cost.

Why it matters: Michigan’s system for distilled spirits is structured so the state applies a statutory markup and uses authorized distributor agents to pick, deliver and collect product for retailers; the state receives large annual revenue from spirits sales. Witnesses said unpredictable fee adjustments and rising operating costs threaten the reliability of deliveries to stores and restaurants across the state.

Budget impact and timeline: Witnesses provided a short analysis showing a funding shortfall versus a CPI-linked benchmark over time and estimated an $11 million shortfall that a CPI adjustment would have reduced. The CRA testimony earlier in the meeting is unrelated to this bill.

Supporters included RNDC and trade associations; a number of suppliers and beverage distributors filed written support or registered in favor of the bill. Representative Wenzel urged the committee to consider the bill as a way to preserve the distribution network that supports retailers, distillers and state revenue.","mediaType","Video","parentTitle","Regulatory Reform - 9/4/2025","oneSentenceSummary","Rep. Wenzel and spirits-industry witnesses supported House Bill 4422 to stabilize the state-warehouse distribution system by tying ADA fee adjustments to CPI (or 5 percent cap), authorizing one-time emergency funding and clarifying that costs come from existing statutory markups.","taxTitle","2025-2026 House Legislature MI, Michigan","taxId",77683,"location","Michigan","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6476707,"Bill would let Michigan bars and breweries donate a share of sales to charities and advertise fundraisers, sponsor says",460,2986000,3446000,"/Search/View?dp=1&key=5717615-0e1b012ecd3f49147231a8b584f833f9&start=2986&end=3446","https://assets.pipeline.soar.com/5717615-0e1b012ecd3f49147231a8b584f833f9/thumbnail_2986000.jpg","/articles/6476707/Michigan/Bill-would-let-Michigan-bars-and-breweries-donate-a-share-of-sales-to-charities-and-advertise-fundraisers-sponsor-says","https://secure.pipeline.soar.com/6476707-d9836e6a1310cc477c35609dc39c02c0/orig.mp4?Expires=1773563195&Signature=O9ud2d0GclGzI9RX3RmqL2GFsyeMODsBNziIVEJ7sFmW1qjBwQhwSnwCwlBntzv-jjc1WKpWwkkqWh6U0JvMiDZupgSlNR4IAGV~ibkJsSYiPbukJjfXmUWJu0QDm4IYI4blIB9dRvJqsGMTWCcrjlxOyfEJ0ffCZLIZhTNY1eOIofjMJY-7gE~kLmihxoKWcGJ494gFrUqY3KOqdvJO84eC-PWUmN9o0QSYxPgQiT3XlHaJ5wfjIN2D6i0Rj587xwI-RviwFdprTy7g9B6xCX9eRVTlGnNwHqXLH40Ur8hQvUK-FblUKGHm6K84sHSlsTrALRWteP1L8Wbed2Uzjg__&Key-Pair-Id=KUT5TJCACFTXG","Lansing — Representative VanderWaal told the House Regulatory Reform Committee on Wednesday that House Bill 4663 would change Michigan liquor law to permit bars, breweries and other license holders to donate a percentage of beverage sales to nonprofit charities and to advertise such fundraisers without risking a Liquor Control Commission (MLCC) violation.

\"They are allowed to donate profits on alcohol provided they do it in a lump sum amount after it was been recorded in their books. But they now they are not allowed to donate, for example, a dollar per pint that is sold,\" VanderWaal said, explaining that current rules can deter charitable fundraisers. The legislation would permit donations tied to sales — for example, a dollar per pint or 10 percent of beer sales — and remove uncertainty that currently discourages some licensees from hosting charitable promotions.

Why it matters: Bars, breweries and other licensees that routinely organize community fundraisers told lawmakers they avoid some events because of uncertainty about what advertising or donation mechanisms could trigger violations. Sponsor advocates said clarifying the law will help small businesses support local nonprofits.

MLCC feedback: Dave Martin of the Michigan Liquor Control Commission told the committee the commission issued guidance in 2021–22 to clarify allowable conduct but recommended one change to the bill: rather than limiting donations to organizations described as \"tax-exempt under section 501(c)(3) of the Internal Revenue Code,\" Martin suggested the statute use the broader term \"nonprofit organization\" so that fraternal, veterans and other community groups (which may not be 501(c)(3)s) could receive donations.

Support and stakeholders: The Michigan Licensed Beverage Association and Michigan Brewers Guild filed written or supporting testimony in favor of the bill; Mason Doerr and Scott Ellis of the Michigan Licensed Beverage Association registered support but did not speak. Representative VanderWaal urged the committee to clarify the rules so licensees can advertise charitable sales events without fear of MLCC enforcement.

No vote was taken on the bill at the committee meeting; VanderWaal and MLCC staff said they would continue discussions about statutory language.

The committee recorded brief remarks from members who said the change would help local nonprofits and community events.","Rep. VanderWaal told the House Regulatory Reform Committee House Bill 4663 would let liquor-license holders donate a percentage of beverage sales to nonprofit groups and advertise those fundraisers; the Liquor Control Commission recommended broader nonprofit language in the bill.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6476712,"House Regulatory Reform Committee adopts three substitute bills in unanimous roll calls",35,2717000,2752000,"/Search/View?dp=1&key=5717615-0e1b012ecd3f49147231a8b584f833f9&start=2717&end=2752","https://assets.pipeline.soar.com/5717615-0e1b012ecd3f49147231a8b584f833f9/thumbnail_2717000.jpg","/articles/6476712/Michigan/House-Regulatory-Reform-Committee-adopts-three-substitute-bills-in-unanimous-roll-calls","https://secure.pipeline.soar.com/6476712-b4c291978056c4ac6f3134e02b68c3bc/orig.mp4?Expires=1773563195&Signature=dFyyK4R8ljOUYlisouJwEJ~xVpONG-zha0sJdu6CQhH~ObS2NE11jp8LHIi0QpkG4uTNmc~L~Fp4K5GnxTcBEKf7hKTysUyqhH9qvJqB7K-jy89P3FRJAXZl2Pg1DPMEtHo3BPLLoGHmKwsby1oT8OsdsfrFAIgAxUqAfOY-eYXLQiALuX0v9MaaYP~cXBRKNdHVzCM7BU7Co7saH4wg-H4MXmIABzphVgejnlPbDQ9IDfWGD3gT9973psWm2ylGC~gCCfipiyeu0R~lqBi4BvW-9-CQVBhWWXUOzytIDaPxbblx7-EpqD8oo0Thgb1NMFg-wngsqH8ZzuZSuqPa2Q__&Key-Pair-Id=KUT5TJCACFTXG","Lansing — The Michigan House Regulatory Reform Committee took three roll-call votes and adopted substitute motions for bills on Wednesday, then reported each bill to the next stage with recommendations from the committee.

The committee approved substitute language and reported the following measures with unanimous recorded votes during the session:

- House Bill 4282 (substitute H-2): Substitute adopted on a 15-0 roll call; bill was reported with recommendation as substituted H-2.
- House Bill 4595 (substitute H-1): Substitute adopted on a 15-0 roll call; bill was reported with recommendation as substituted H-1.
- House Bill 4700 (substitute H-1): Substitute adopted on a 15-0 roll call; bill was reported with recommendation as substituted H-1.

Why it matters: The committee’s votes advance the measures to the full House with the committee’s recommended substitute language. The transcript records the roll calls and the clerk’s announcement of the tallies for each vote.

Details and formal actions: Each substitute was moved by committee members (Representative Hoadley moved the H-2 substitute for HB 4282; Representative Liberati moved the H-1 substitute for HB 4595; Representative Tyrone Carter moved the H-1 substitute for HB 4700). The clerk recorded the roll call for each motion and announced the counts and that the substitutes were adopted.

No amendments were recorded on the floor during the votes. Committee leadership declared a quorum present for the roll calls. The clerk’s roll-call entries recorded the individual member responses during each vote.","The committee approved substitutes and reported three bills (HB 4282, HB 4595, HB 4700) with roll-call votes recorded as 15-0 in favor; the substitutes were adopted and the bills were reported with recommendations.",{"_33":101,"_35":36,"_37":38,"_39":102,"_41":103,"_43":104,"_45":105,"_47":106,"_49":107,"_51":108,"_53":109,"_55":56,"_57":58,"_59":110,"_61":62,"_63":64,"_65":111,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6476717,"Michigan regulators warn of illicit grows, unreliable testing and hemp-product risks as cannabis market expands",1205,315000,1520000,"/Search/View?dp=1&key=5717615-0e1b012ecd3f49147231a8b584f833f9&start=315&end=1520","https://assets.pipeline.soar.com/5717615-0e1b012ecd3f49147231a8b584f833f9/thumbnail_315000.jpg","/articles/6476717/Michigan/Michigan-regulators-warn-of-illicit-grows-unreliable-testing-and-hemp-product-risks-as-cannabis-market-expands","https://secure.pipeline.soar.com/6476717-0db79c9ab28fff607381f2cd5edfa943/orig.mp4?Expires=1773563195&Signature=WDwum0DsxdDGwQ9uaDSt1gk-5qgV6~1xmra23INHJkR-NyEkU4m1cc255L8tz0zu22xmOmm2J0sBwlPty6H~z1RsRIPq-H7YulxLeUpCoU-CRMKIFAaLiGyRJWFqSXwnS0KHpIXhmqKxLKMDU2aR8BiQm2VPE7y~s1dMx6myCHamlROl1ctJvvp-QMivE-9Evj1SnG2UF6XQghF5xFfVVO4olrb-Y0l4IrfVXf2TG0o4inByIGGKga78254lfgQmneba55L0sUtYaUf6d4N6q27UgsL4BRkusUtHK8V6LBIHGV44MkrJAG-T6ylCkI~q8at-whP00EkNrqlBi3ESyw__&Key-Pair-Id=KUT5TJCACFTXG","Lansing — The Cannabis Regulatory Agency (CRA) told the Michigan House Regulatory Reform Committee on Wednesday that the state’s adult-use marijuana market has grown far larger than the medical market, driving license growth, oversupply and a collapse in retail flower prices that is helping sustain unlicensed growing operations and fraudulent testing practices.

Director Brian Hanna and CRA staff member Derek Sova said the adult-use market now accounts for nearly all state marijuana sales and that current laws limit the agency’s tools to cap licenses and quickly discipline bad actors. \"Now, today, it is $62,\" Hanna said of the average retail price per ounce of marijuana, down from previously much higher levels. \"We had $2,800,000 was included in that budget to to build and equip the lab,\" he said, describing state funding appropriated to create a CRA reference laboratory.

The CRA framed the risks as three related problems: large-scale unlicensed cultivation operations, unreliable or fraudulent laboratory testing, and a proliferation of intoxicating hemp-derived products sold outside the regulated marijuana supply chain.

Why it matters: The agency said those three issues together threaten public safety and the regulated industry’s economic viability. Large illicit grows can be operated by transnational criminal organizations, Sova said, and enforcement is hampered when penalties are low or when administrative tools to suspend licenses are weak.

Most important facts: The CRA described the regulatory landscape and data: nearly 300,000 medical patients at the program’s peak, about 50,000 caregivers at that time; current registrations of about 62,000 medical patients and 4,000 caregivers. The agency said adult-use sales represent roughly 99.8 percent of marijuana retail sales in Michigan. CRA officials showed that grow licenses have increased significantly since 2022 even as retail outlets and processors remained comparatively flat, creating an oversupply that has driven prices down.

Unlicensed illicit activity and penalties: Sova warned of the difficulty prosecuting large illicit operations because Michigan’s ballot-law provision that capped penalties leaves maximum possession penalties low in some cases. \"The problem of unlicensed illicit activity,\" he said, \"poses not only a public health and safety risk, but also a challenge to the licensed industry.\" The agency cited a 2023 court decision that limited the effective penalties for possession in large-scale operations and said that weak criminal penalties and modest administrative remedies reduce local law enforcement incentives to pursue such cases.

Testing and summary suspension: Hanna and Sova described unreliable or doctored laboratory results as a national and state problem. The CRA said it lost a 2024 court decision tied to its summary-suspension language and that weak suspension authority has allowed some licensees accused of egregious violations to continue operating while cases proceed. The agency said it hopes to add stronger summary-suspension language through new rules and possible statutory changes.

CRA reference lab and HB4501: The CRA said it has built a reference lab with state funds intended to speed investigations and to audit commercial laboratories. The goal is to shorten evidence turnaround from about 45 days with third-party labs to roughly 7–14 days with a state lab and to provide a basis for auditing lab SOPs. Derek Sova described House Bill 4501 (sponsored previously by Representatives Mueller and Carter) as legislation that would allow the agency to possess marijuana for use in the state lab; staff said the bill was reported unanimously out of committee last year but did not pass lame duck and that CRA would welcome the committee’s support when it is reintroduced.

Intoxicating hemp products: The CRA also told lawmakers that the federal 2018 farm bill’s hemp carve-out and Michigan’s Industrial Hemp Research and Development Act were not designed for the current market in which hemp-derived consumables can contain high levels of THC and are sold with little of the testing, labeling or distribution controls applied to licensed marijuana. Sova said such products can be marketed and shipped online and sometimes resemble regulated marijuana products, creating both public-health hazards and competition for licensed retailers.

Enforcement priorities and next steps: The agency described ongoing rulemaking to strengthen summary-suspension authority, plans to use the state reference lab for faster testing and audits, and a request for legislative support on penalties and tools to prevent licensees from closing to avoid discipline. The CRA said it expects to have the lab validated and staffed by June and asked lawmakers to consider statutory fixes to give regulators and prosecutors stronger, faster tools.

The committee followed the presentation with questions on licensing timeframes (Hanna said the adult-use licensing decision deadline in the MRTMA is 90 days and that CRA averages 30–40 days), medical program differences, banking and tax burdens for licensed businesses, and the interactions between hemp and marijuana markets. The CRA said it is listening to industry feedback on disciplinary guidelines and has lowered fines and adjusted enforcement practices in response to stakeholder concerns.

The CRA presentation and committee questions underscored gaps between state law, federal classification of cannabis, and the practical tools regulators and prosecutors use to police large illicit operations and protect licensed businesses.","Cannabis Regulatory Agency director Brian Hanna and staff told the House Regulatory Reform Committee the adult-use market now accounts for nearly all sales, license growth has driven oversupply and low prices, and the agency is building a state reference lab to speed enforcement and audit test results.","actionData","errors"]

Article not found

Bill would tie liquor distribution fee increases to CPI, industry and distributors tell committee

Bill would let Michigan bars and breweries donate a share of sales to charities and advertise fundraisers, sponsor says

House Regulatory Reform Committee adopts three substitute bills in unanimous roll calls

Michigan regulators warn of illicit grows, unreliable testing and hemp-product risks as cannabis market expands