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