DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS  
LIQUOR CONTROL COMMISSION  
SPIRITS  
(By authority conferred on the liquor control commission by sections 215(1) and  
301 of 1998 PA 58, MCL 436.1215(1) and MCL 436.1301, and Executive  
Reorganization Order No. 2011-4, MCL 445.2030)  
R 436.1801 Definitions.  
Rule 1. The terms defined in the Michigan liquor control  
commission rules have the same meaning when used in these rules.  
act  
and  
the  
History: 1979 AC.  
R 436.1802 Authorized distribution agents generally.  
Rule 2. (1) As used in this rule, "authorized distribution agent" means a person who  
has entered into a contractual relationship with 1 or more manufacturers or suppliers  
of spirits or with another authorized distribution agent for warehousing or distribution, or  
both, of spirits and who has been certified, in writing, by the commission, to act as the  
commission's agent for the warehousing and distribution of spirits to retail licensees of  
the commission.  
(2) A person shall apply for certification as an authorized distribution agent to the  
commission in Lansing on forms, and in the manner, approved by the commission.  
(3) An applicant for certification as an authorized distribution agent shall provide  
both of the following to the commission:  
(a) A technical plan for the importation, transportation, warehousing, and delivery  
of spirits in this state.  
(b) Any information or documentation required by the commission relating to the  
honesty and integrity of any applicant or any principal in the corporation, company,  
association, limited liability company, or partnership applying for certification as an  
authorized distribution agent.  
(4) An authorized distribution agent or prospective authorized distribution agent  
shall maintain, and make available to the commission or its representative upon  
being given notice, any contract or written agreement or proposed contract or written  
agreement that the authorized distribution agent or prospective authorized distribution  
agent may have with a manufacturer, supplier of spirits, or other authorized  
distribution agent for the importation, warehousing, delivery, or sale of spirits in this  
state.  
(5) An authorized distribution agent shall maintain an adequate physical plant and  
proper equipment to perform the functions for which the authorized distribution agent is  
certified.  
(6) The commission may inspect, during normal business hours, any facility or  
equipment used in conjunction with the business of an authorized distribution agent  
or applicant for certification as an authorized distribution agent.  
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(7) An authorized distribution agent or prospective authorized distribution  
agent shall make available, for inspection by the commission and its representatives, all  
financial and accounting records pertinent to the operation of the authorized  
distribution agent or prospective authorized distribution agent.  
(8) An authorized distribution agent shall maintain, at its expense, insurance  
approved by the commission to protect against claims resulting from business operations  
or activities, including insurance on alcoholic beverages in storage or transit.  
(9) An authorized distribution agent shall obtain and maintain a blanket bond  
payable to the state of Michigan in an amount equal to the risk of loss to the state as  
determined by the commission.  
(10) An authorized distribution agent shall not have a direct or indirect interest in a  
retail alcoholic beverage license issued by the state of Michigan as enumerated in  
section 537 of Act No. 8 58 of the Public Acts of 1998, as amended, being §436.1537 of  
the Michigan Compiled Laws.  
(11) An authorized distribution agent may not subcontract any of the business  
functions or activities specified in the agent's contract or agreement with the  
manufacturer or supplier of spirits without the prior written consent of the commission  
and certification of the subcontractor as an authorized distribution agent of the  
commission.  
(12) The commission may rescind the certification of an authorized  
distribution agent who fails to comply with any and all federal, state, or local codes,  
laws, ordinances, rules, or regulations applicable to the agent's operations or fails to  
comply with Act No. 8 58 of the Public Acts of 1998, as amended, being §436.1101 et  
seq. of the Michigan Compiled Laws, commission rules, certification requirements, or  
commission order, including an order that establishes further business operating  
procedures for  
authorized distribution agents.  
(13) Certification of an authorized distribution agent shall terminate  
automatically and without any act of the commission if the contract or agreement  
between the authorized distribution agent and the manufacturer or supplier of spirits or  
another authorized distribution agent expires or is terminated. Certification shall also  
terminate automatically upon modification of the system of warehousing and  
distribution of spirits by the legislature or the commission that eliminates the need for  
the authorized distribution agent certification.  
(14) The commission may, by order, establish further business operating  
procedures for authorized distribution agents relative to the wholesaling and distribution  
of spirits.  
History: 1996 AACS; 1998-2000 AACS.  
R 436.1803 Building and health laws and ordinances.  
Rule 3. A manufacturer of spirits shall comply with all state and local building  
and health laws and ordinances.  
History: 1979 AC.  
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R 436.1805 Equipment.  
Rule 5. A manufacturer of spirits shall possess the necessary equipment for a  
satisfactory operation which shall be maintained in good working order and in a  
sanitary condition. The commission may establish specific equipment requirements by  
written order.  
History: 1979 AC.  
R 436.1807 Agricultural product compliance with law.  
Rule 7. Agricultural products processed by a manufacturer of spirits shall  
comply with state laws and rules of the department of agriculture.  
History: 1979 AC.  
R 436.1809 Sellers of alcohol.  
Rule 9. (1) A seller of alcohol license is required for the sale of alcohol in this  
state.  
(2) A seller of alcohol license shall be issued, pursuant to the act and commission  
rules, to the following:  
(a) A person who is the holder of the required basic permit issued under the federal  
alcohol administration act.  
(b) A person who has paid the annual license fee and furnished the surety bond  
set by written order of the commission.  
(3) A seller of alcohol licensee may sell an unlimited quantity of alcohol to the  
following:  
(a) A licensed distiller, rectifier or manufacturer of wine, for fortifying and  
blending purposes.  
(b) A licensed industrial manufacturer for use in manufacturing products for  
nonbeverage purposes.  
(4) A seller of alcohol licensee may sell a limited quantity of alcohol to persons  
holding a federal tax free alcohol permit, such quantity to be set by written order of the  
commission.  
(5) A shipment into this state from a seller of alcohol licensee shall have a release  
from the commission.  
History: 1979 AC.  
R 436.1811 Industrial manufacturers.  
Rule 11. (1) An industrial manufacturer license is required to secure alcohol and  
bulk alcoholic liquors for exclusive use in manufacturing products for nonbeverage  
purposes.  
(2) An industrial manufacturer license shall be issued, pursuant to the act and  
commission rules, to the following:  
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(a) A person who is the holder of the required basic permit issued under the federal  
alcohol administration act.  
(b) A person who has paid the annual license fee and furnished the surety bond  
set by written order of the commission.  
(3) An industrial manufacturer licensee shall buy alcohol only from  
commission or from a licensee of the commission.  
the  
History: 1979 AC.  
R 436.1813 Limited alcohol buyers.  
Rule 13. (1) A limited alcohol buyer license is required to secure alcohol for  
medicinal, mechanical, chemical or scientific purposes.  
(2) A limited alcohol buyer license shall be issued, pursuant to the act and  
commission rules, to a person who has paid the annual fee set by written order of  
the commission.  
(3) A limited alcohol buyer licensee shall buy alcohol  
commission or from a licensee of the commission.  
only  
from  
the  
History: 1979 AC.  
R 436.1815 Transportation.  
Rule 15. Railroads, steamship lines, express companies, and common carriers  
of other transporting companies are prohibited from accepting or delivering spirits to  
any person in this state except in accordance with the following:  
(a) A copy of a release approved by a representative of the commission shall  
accompany the bill of lading for shipments of spirits made to a person or licensee in  
this state.  
(b) A release is not required when bottled spirits are shipped with a bill of lading  
addressed to or in care of the commission.  
History: 1979 AC.  
R 436.1817 Warehouse receipts.  
Rule 17. A person shall not sell, offer for sale or in any manner assign or transfer in  
this state warehouse receipts for spirits, wherever the spirits are located, except as  
follows:  
(a) An isolated transaction in which a warehouse receipt for spirits is sold, offered  
for sale or delivered by a bona fide owner or pledgee thereof, such sale or offer for  
sale or delivery not being made in the course of repeated or successive transactions  
of a like character by the owner or pledgee, and the owner or pledgee not being a  
dealer or issuer or salesman of such warehouse receipts.  
(b) A sale of warehouse receipts for spirits by a manufacturer.  
(c) A sale made to a bank, trust company, insurance company, or broker or dealer  
in warehouse receipts for spirits.  
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History: 1979 AC.  
R 436.1819 Prohibited acts by licensees.  
Rule 19. (1) A licensee shall not fail, neglect or refuse to make a report  
required by these rules or refuse to permit commission representatives to  
examine his books, federal tax stamps, records, invoices or other papers pertaining  
thereto, or any stock of spirits in his possession or custody, or make an incomplete,  
false or fraudulent report or do anything to avoid a full disclosure of the amount of  
spirits subject to tax.  
(2) A licensee shall not falsely label a container in which spirits are placed for  
sale, or use or give a false or fictitious name, or use or give a false or fictitious address in  
an application or form required by these rules, or otherwise commit a fraud in an  
application, record or report.  
History: 1979 AC.  
R 436.1821 Damaged goods.  
Rule 21. No rebates, refunds or adjustments on broken containers, damaged  
goods, or for other reasons, shall be made by a licensee to any other licensee except  
by written order of the commission.  
History: 1979 AC.  
R 436.1823 Rescissions.  
Rule 23. The following rules are rescinded:  
(a) The rules entitled "Rules and Regulations Governing Vendors and Agents  
Engaged in the Promotion of the Sale of Distilled Spirits in the State of Michigan,"  
being R 436.131 to R 436.141 of the Michigan Administrative Code, and appearing  
on page 5319 of the 1954 volume of the Code.  
(b) Rules entitled "Regulations for the Sale and Control of Alcohol, Spirits,  
Cologne Spirits, Whiskies, Brandies, High Wines,  
Nonbeverage, Industrial, Medicinal, Mechanical,  
Free Purposes," being R 436.431 to R 436.439 and R  
Low  
Wines  
for Beverage,  
Chemical, Scientific and Tax  
436.450 of the Michigan Administrative Code, and appearing on pages 5371 to 5375  
of the 1954 volume of the Code.  
(c) Rule 6 of the rules entitled "Wines," being R 436.1706 of the Michigan  
Administrative Code and appearing on page 5788  
Supplements to the Code.  
of  
the  
1970-71 Annual  
History: 1979 AC.  
R 436.1825 Adoption by reference of federal standards of identity for spirits.  
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Rule 25. The federal standards of identity, published at 27 C.F.R. part 5, subpart  
C,§§5.21 to 5.23, of 1935, as amended, are adopted by reference in these rules  
as the standards of identity for the classes and types of bottled spirits. Copies of  
the adopted standards may be obtained either from the Superintendent of  
Documents, United States Government Printing Office (gpo), Washington, DC 20402 or  
from the gpo website at http://bookstore.gpo.gov at a cost of $37.00 each as of the time of  
adoption of these  
rules,  
or  
free  
of charge from the gpo website at  
http://www.gpoaccess.gov/cfr. Copies of these provisions may also be obtained from  
the Liquor Control Commission, Department of Licensing and Regulatory Affairs,  
Secondary Complex, 7150 Harris Drive, P.O. Box 3005, Lansing, Michigan 48909, at a  
cost of $43.00 each as of the time of adoption of these rules. The commission may  
establish other standards by written order.  
History: 1998-2000 AACS; 2011 AACS.  
R 436.1827 Adoption by reference of federal distilled spirit regulations.  
Rule 27. A manufacturer of spirits shall manufacture spirits under the federal  
distilled spirit regulations published at 27 C.F.R. part 19, §§19.1 to 19.792, of 1935, as  
amended, which are adopted in these rules by reference. Copies of the adopted provisions  
may be obtained from the Superintendent of Documents, United States Government  
Printing Office, Washington, DC 20402, at a cost as of the time of adoption of these rules  
of $49.00. Copies of these provisions may also be obtained from the Liquor  
Control  
Commission, Department of Consumer and Industry Services, Secondary  
Complex, 7150 Harris Drive, P.O. Box 30005, Lansing, Michigan 48909, at a cost as of  
the time of adoption of these rules of $55.00 each.  
History: 1998-2000 AACS.  
R 436.1829 Labels and advertising.  
Rule 29. The sale of spirits is prohibited in this state unless all of the following  
provisions are complied with:  
(a) The spirit is packaged, marked, branded, and labeled in accordance with these  
rules.  
(b) The spirit label truthfully describes the contents of the container in accordance  
with these rules and the federal distilled spirit regulations published at 27 C.F.R. part  
5, subpart C, of 1935, as amended, which are adopted by reference in R 436.1825.  
(c) A vendor of spirits shall furnish proof upon request that a valid certificate of  
approval for the label has been obtained and is unrevoked under the federal labeling  
requirements at 27 C.F.R. part 5, subpart C, of 1935, as amended, which are adopted by  
reference in R 436.1825.  
(d) The commission has issued a registration number of approval for the spirits.  
History: 1998-2000 AACS; 2011 AACS.  
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