DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS

LIQUOR CONTROL COMMISSION

BEER

(By authority conferred on the liquor control commission by section 215(1) of 1998

PA 58, MCL 436.1215(1), and Executive Reorganization Order No. 2011-4, MCL

445.2030)

R 436.1601 Definitions.

Rule 1. The terms defined in R 436.1001 and the act have the same meanings

when used in these rules.

History: 1979 AC; 1989 AACS; 2017 AACS.

R 436.1603 Rescinded.

History: 1979 AC; 1989 AACS.

R 436.1605 Rescinded.

History: 1979 AC; 1989 AACS; 2017 AACS.

R 436.1607 Rescinded.

History: 1979 AC; 1989 AACS; 2017 AACS.

R 436.1609 Outstate sellers of beer.

Rule 9. (1) A person shall be the holder of the required basic permit or brewer’s

notice, or both, and be a brewer or outstate seller of beer doing business under an

approved basic permit, brewer's notice, or both, issued under the federal alcohol

administration act of 1935, 27 U.S.C. §201 et seq. and the regulations under this act,

being 27 C.F.R., part 1, subpart C, §§1.20 to 1.59 and part 25, subpart G, §§ 25.61 to

25.85 (2014) before being issued an outstate seller of beer license, brewer license,

micro brewer license, or brewpub license. The provisions of 27 C . F . R ., part 1,

subpart C, §§1.20 to 1.59 and part 25, subpart G, §§ 25.61 to 25.85 (2014) are adopted

by reference in these rules. Copies of the adopted provisions may be obtained from

the Superintendent of Documents, United States Government Printing Office (GPO),

Washington, D.C. 20402 or from the gpo website at https://bookstore.gpo.gov/ at a cost

of $37.00 each as of the time of adoption of these rules, of free of charge from the gpo

website at https://www.gpo.gov/. Copies of these provisions may also be obtained

Page 1

Courtesy of Michigan Administrative Rules

from the Liquor Control Commission, Department of Licensing and Regulatory Affairs,

525 W. Allegan, P.O. Box 30005, Lansing, Michigan 48909, a cost of $43.00 each as of

the time of adoption of these rules.

(2) The commission may issue an outstate seller of beer license to the following

entities pursuant to these rules and the act:

(a) A person located in the United States who imports and sells in this state beer

made in a foreign country.

(b) A manufacturer located outside this state, but in the United States, that

manufactures and packages its own beer.

(c) A person located in the United States who purchases beer from a

manufacturer of beer located outside of this state, but in the United States, if the

amount of beer imported into this state by that person is 5,000 barrels or less per

calendar year. In addition, a person who is issued an outstate seller of beer license

under the provisions of this subdivision shall be designated by the manufacturer of

beer as its sole and exclusive sales agent in this state for a brand or brands of beer

produced by that manufacturer and shall be responsible for the quality of beer shipped

into and sold in this state.

History: 1979 AC; 1989 AACS; 2017 AACS.

R 436.1611 Labels and advertising.

Rule 11. (1) The sale of beer is prohibited in this state unless all of the

following provisions are complied with:

(a) The beer is packaged, marked, branded, and labeled pursuant to these rules.

(b) The beer label truthfully describes the contents of the container in accordance

with these rules and the federal alcohol administration act of 1935, 27 U.S.C., §201 et

seq., and the regulations under this act, being 27 C.F.R. part 7, subpart C §§ 7.20 to

7.29, subpart H §7.60 and subpart I §7.81 (2014). The provisions of 27 C.F.R. part 7,

subpart C §§ 7.20 to 7.29, subpart H §7.60 and subpart I §7.81(2014), are adopted by

reference in these rules. Copies of the adopted provisions may be obtained either from

the Superintendent of Documents, United States Government Printing Office (GPO),

Washington, DC 20402, or from the gpo website at https://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 https://www.gpo.gov/. Copies of these provisions may also be

obtained from the Liquor Control Commission, Department of Licensing and

Regulatory Affairs, 525 W. Allegan, P.O. Box 30005, Lansing, Michigan 48909, at a

cost of $43.00 each as of the time of adoption of these rules.

(c) A brewer, outstate seller of beer, or wholesaler that is responsible for labeling

shall furnish proof, upon request, that valid certificates of approval for the label have

been obtained from the United States alcohol and tobacco tax and trade bureau and are

unrevoked under the provisions of the federal labeling requirements. If a certificate of

label approval is not required by the United States alcohol and tobacco tax and trade

bureau, the brewer, outstate seller of beer, or wholesaler must submit an electronic copy

of the label.

(d) The beer has received a registration number from the commission and has been

approved for sale by the commission.

Page 2

Courtesy of Michigan Administrative Rules

(2) A retail licensee shall place a removable tap marker or sign on a draft

beer dispenser.

History: 1979 AC; 1989 AACS; 1998-2000 AACS; 2011 AACS; 2017 AACS.

R 436.1613 Gifts of beer and consumption on licensed premises.

Rule 13. A wholesaler shall not give away beer or allow consumption of beer on

the licensed premises.

History: 1979 AC; 1989 AACS; 1998-2000 AACS; 2017 AACS.

R 436.1615 Rescinded.

History: 1979 AC; 1989 AACS; 2017 AACS.

R 436.1617 Sales and shipments by outstate sellers of beer.

Rule 17. A person shall not sell, ship, import, or deliver beer into this state unless

the beer is sold, shipped, imported, or delivered in any of the following ways:

(a) An outstate seller of beer sells, ships, imports, or delivers to its licensed

premises, to the licensed premises of a licensed wholesaler of beer, or to the licensed

premises of a licensed warehouser.

(b) A licensed wholesaler of beer buys, imports, or accepts delivery of beer from

an outstate seller of beer at the licensed premises of an outstate seller of beer or at the

licensed premises of the licensed wholesaler of beer.

(c) A brewer imports or delivers beer produced at a manufacturing plant which is

located outside this state and which is owned by the brewer or the parent or

subsidiary corporation of the brewer.

History: 1979 AC; 1989 AACS; 2017 AACS.

R 436.1621 Excise tax on beer; reports.

Rule 21. (1) Each Michigan licensed wholesaler and each Michigan

licensed brewer and Michigan licensed micro brewer who does not designate a

wholesaler to pay the beer tax shall submit to the commission, on forms acceptable to

the commission and postmarked not later than the fifteenth day of each month, a beer

tax report of all beer sold in this state during the previous calendar month and shall

also submit, with the beer tax report, the payment of the required beer excise tax due

pursuant to section 409 of the act, MCL 436.1409.

(2)The beer excise tax reports submitted pursuant to subrule (1) of this rule by a

Michigan licensed wholesaler, or a Michigan licensed brewer, or Michigan licensed

micro brewer, shall include all of the following information:

(a) The total sales of beer made in this state during the period covered by the

report.

Page 3

Courtesy of Michigan Administrative Rules

(b) The total amount of the beer excise tax due.

(c) The date upon which each sale of beer was made.

(d) The name and address of the Michigan licensed retailer that received each

shipment of beer.

(e) The invoice number for each sale of beer.

(f) The brand name, quantity, and container size for each item of beer sold.

(3) Each Michigan licensed brewer or Michigan licensed micro brewer that chooses

to designate a wholesaler to report and pay its beer taxes shall notify the commission of

its selection through electronic mail. Each Michigan licensed brewer or Michigan

licensed micro brewer that chooses to designate a wholesaler shall select a wholesaler or

wholesalers sufficient to cover all areas of this state where the Michigan licensed

brewer’s or Michigan licensed micro brewer’s products are distributed. The commission

and the wholesaler shall receive notification of the designation of a wholesaler to report

and pay the beer taxes before April 1. The selection of a wholesaler to report and pay the

beer taxes may be changed only by the Michigan licensed brewer or Michigan licensed

micro brewer by notification to the commission before April 1. The change of designated

wholesalers shall be effective on May 1. A Michigan licensed brewer or Michigan

licensed micro brewer that does not properly designate a wholesaler and notify the

commission of its selection shall be responsible for the submission of the beer tax reports

and payment of the beer tax required under subrules (1) and (2) of this rule.

(4) Each Michigan licensed brewer and Michigan licensed micro brewer shall

submit to the commission, on forms acceptable to the commission and postmarked no

later than the fifteenth day of each month, a beer tax report of all beer sold or consumed

on the licensed premises of its manufacturing facility and tasting rooms. Payment of the

required beer excise tax due pursuant to the provisions of section 409 of the act, MCL

436.1409, shall accompany the beer tax report.

History: 1979 AC; 1989 AACS; 2017 AACS.

R 436.1623 Rescinded.

History: 1979 AC; 1985 AACS.

R 436.1625 Rescinded.

History: 1979 AC; rescinded 2022 MR 19, Repeal Eff. October 14, 2022.

R 436.1627 Rescinded.

History: 1979 AC.

R 436.1629 Container deposit and refund.

Page 4

Courtesy of Michigan Administrative Rules

Rule 29. (1) A manufacturer, an outstate seller of beer, or a wholesaler of beer

shall collect a container deposit of a minimum of $30.00 for all refillable containers of

beer with a capacity of over 5 gallons. The deposit collected by a wholesaler from a

retail licensee for a refillable container of over 5 gallons shall be equal to the deposit

collected by the manufacturer or outstate seller of beer from the wholesaler of beer.

(2) A cash refund which equals the container deposit collected pursuant to subrule

(1) of this rule for all refillable containers of beer with a capacity of over 5 gallons

shall be made to a licensee who has made the deposit and returned the containers for

refund.

History: 1979 AC; 2007 AACS; 2010 AACS.

R 436.1631 Reports of Michigan licensed brewers, Michigan licensed outstate

sellers of beer, and Michigan licensed wholesalers.

Rule 31. (1) Each sale or delivery of beer made by a Michigan licensed brewer

or Michigan licensed outstate seller of beer to a Michigan licensed wholesaler of beer

shall be accurately recorded on a sales invoice, a debit memo, or a credit memo. A

Michigan licensed brewer or a Michigan licensed outstate seller of beer shall furnish

each Michigan licensed wholesaler of beer with 2 copies of each invoice at the time of

each sale or delivery of beer.

(2) When a billing error is discovered, a Michigan licensed brewer or a

Michigan licensed outstate seller of beer shall immediately furnish the Michigan

licensed wholesaler of beer who was incorrectly billed with 2 copies of either a

debit memo or a credit memo to correct the billing error.

(3) Each sales invoice shall have printed on it the name, address, and location of

the Michigan licensed brewer or Michigan licensed outstate seller of beer issuing the

invoice and shall also contain all of the following information:

(a) The name and address of the Michigan licensed wholesaler of beer to whom the

sale was made.

(b) The date of sale and an identifying invoice number.

(c) The quantity, brand name or brand code, container type, container size, unit

price, and total cost of the beer sold.

(d) The address to which the beer was delivered, if different than the address of

the Michigan licensed wholesaler to whom the beer was sold.

(4) Each debit memo and each credit memo shall have printed on it the name and

address of the Michigan licensed brewer or Michigan licensed outstate seller of beer

issuing the debit memo or credit memo and shall also contain all of the following

information:

(a) The name and address of the Michigan licensed wholesaler of beer.

(b) The date on which the original sale occurred and the identifying number of the

invoice being corrected.

(c) The corrected quantity, brand, container type, container size, unit price, the net

amount debited or credited, and the number of the invoice to which the debit or credit

will be applied, if known.

(d) The reason for the debit or credit.

Page 5

Courtesy of Michigan Administrative Rules

(5) Each Michigan licensed wholesaler of beer shall retain, on the licensed

premises, 1 copy of each invoice, debit memo, and credit memo received from a

Michigan licensed brewer or a Michigan licensed outstate seller of beer and shall

forward to the Lansing office of the commission, postmarked not later than the

fifteenth day of each month, 1 copy of each invoice, debit memo, or credit memo

received during the previous calendar month. As an alternative, the Michigan licensed

wholesaler may submit to the Lansing office of the commission a computer generated

report that contains all of the same information as the sales invoices, debit memos, and

credit memos.

(6) Each Michigan licensed brewer or Michigan licensed outstate seller of beer shall

forward to the Lansing office of the commission, postmarked not later than the fifteenth

day of each month, 1 copy of each invoice, debit memo, or credit memo for all sales,

deliveries, and importations of beer in Michigan during the previous calendar month. As

an alternative, the Michigan licensed brewer or Michigan licensed outstate seller may

submit to the Lansing office of the commission a computer generated report that contains

all of the same information as the sales invoices, debit memos, and credit memos.

History: 1979 AC; 1989 AACS; 2017 AACS.

R 436.1632 Invoices and bills of lading.

Rule 32. When transporting beer, a vehicle operator for a brewer, an outstate

seller of beer, a licensed wholesaler of beer, or a common carrier shall have invoices or

bills of lading in his or her possession for inspection by commission inspectors or

auditors and law enforcement officers. This rule shall not apply to a vehicle operator

for a licensed wholesaler of beer while he or she is delivering to retail licensees.

History: 1989 AACS.

R 436.1633 Damage refunds.

Rule 33. A refund or other adjustment on beer containers shall not be made to a

retail licensee by a manufacturer or wholesaler unless:

(a) A keg of beer shows evidence of leakage.

(b) A keg of beer is flat or not salable at the time of tapping.

(c) Other reasonable grounds approved by a written order of the commission.

History: 1979 AC.

R 436.1635 Sale or delivery; restrictions; exception.

Rule 35. A brewer or wholesaler shall not offer for sale or deliver beer to a retail

licensee between 12 midnight on Saturday and 12 midnight on Sunday, except to a

holder of a special license issued by the commission.

History: 1979 AC; 1989 AACS.

Page 6

Courtesy of Michigan Administrative Rules

R 436.1641 Michigan licensed brewers’ and Michigan licensed wholesalers'

reports and records.

Rule 41. (1) Each Michigan licensed brewer, Michigan licensed micro

brewer, and Michigan licensed brewpub shall maintain records of its

transactions, including the distribution of beer. The records shall be maintained in

order for 4 years, after which deletions may be made, but a 4-year record shall always

be maintained.

(2) Each Michigan licensed wholesaler shall maintain records of its transactions,

including the distribution of beer. The records shall be maintained for 4 years, after

which deletions may be made, but a 4-year record shall always be maintained.

(3) Each Michigan licensed brewer, Michigan licensed micro brewer, Michigan

licensed brewpub, or Michigan licensed wholesaler shall maintain complete records of

expenses and compensation of salespersons and representatives for 4 years.

History: 1979 AC; 1989 AACS; 2017 AACS.

R 436.1643 Rescinded.

History: 1979 AC; 1989 AACS.

R 436.1645 Inspection and enforcement.

Rule 45. (1) Upon order of the commission a commission representative or

employee of the Michigan department of agriculture may inspect premises of an out-of-

state manufacturer of beer which is sold or to be sold in this state.

(2) The books, records and premises of all licensees shall be available to the

commission representative at all reasonable times. The licensee shall give any

assistance and provide the facilities required for the inspection and analysis.

(3) The commission may demand a sample of any beer, shipped into this state

and offered for sale or sold, for analytical and inspection purposes.

(4) The commission reserves the right to confiscate beer or other alcoholic

beverages unless the beverage complies with these rules and the act. The beer

confiscated shall be subject to disposition by order of the commission.

History: 1979 AC.

R 436.1651 Prohibited acts.

Rule 51. (1) A licensee shall not fail, neglect, or refuse to make a report required by

these rules. A licensee shall not refuse to permit commission representatives to

examine any of the following:

(a) The licensee's books.

(b) Federal tax stamps.

(c) Records.

(d) Invoices.

Page 7

Courtesy of Michigan Administrative Rules

(e) Other papers pertaining to the licensee's books, federal tax stamps, records, or

invoices.

(f) Any stock of beer in the licensee's possession or custody. A licensee shall not

make an incomplete, false, or fraudulent report or do anything to avoid a full disclosure

of the amount of beer subject to tax.

(2) A licensee shall not falsely label a container in which beer is placed for sale, use

or give a false or fictitious name, 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.

(3) A licensee shall not engage in tied-in sales of beer, wine, beer and wine, or any

alcoholic liquor with any non-alcoholic product sold by the licensee.

History: 1979 AC; 1998-2000 AACS.

R 436.1659 Rescissions.

Rule 59. (1) Rules entitled "Rules and Regulations

Applying

to

the

Manufacture and Sale of Beer and/or Malt Beverages as Applied to

Licensed

Manufacturers and Distributors," being R 436.150 to R 436.250 of the Michigan

Administrative Code, and appearing on pages 5320 to 5333 of the 1954 volume of the

Code, page 129 of the 1955 Annual Supplement to the Code, and page 1525 of the

1960 Annual Supplement to the Code, are rescinded.

(2) Rules 36, 37, and 39 of the rules entitled "Rules and Regulations Governing

the Relationship between Licensed Manufacturers, Wholesalers of Alcoholic Liquor,

Their Sales Representatives and Retail Licensees," being R 436.556, R 436.557, and R

436.559 of the Michigan Administrative Code, and appearing on pages 5387 and 5388

of the 1954 volume of the Code, are rescinded.

(3) R 436.1627 of the Michigan Administrative Code, appearing on page 95 of

Quarterly Supplement No. 91 to the Code, is rescinded.

History: 1979 AC.

Page 8

Courtesy of Michigan Administrative Rules