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Committee hears testimony on HB 4403 to allow alternating proprietorships for Michigan distillers
Summary
Rep. Wenzel and industry witnesses told the House Regulatory Reform Committee HB 4403 would clarify Michigan law to allow distillers and mixed spirit manufacturers to enter alternating proprietorships, a practice already permitted federally and for breweries and wineries in Michigan.
Representative Wenzel introduced House Bill 4403 on Oct. 26, telling the House Regulatory Reform Committee the measure would amend the Michigan Liquor Control Code to expressly permit distillers and mixed spirit manufacturers to enter into alternating proprietorships, an arrangement that allows two or more producers to share space and equipment.
“An alternating proprietorship is when 2 or more alcohol producers share space and equipment to manufacture their products,” Representative Wenzel said. She described the bill as a “simple, yet significant” fix to a technical gap in state law that has created confusion for small distillers even though there is no explicit statutory prohibition.
John O’Connor, president of the Michigan Craft Distillers…
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