House Bill 5873 Summary

• Increases Michigan's beer tax from $6.30 per barrel to $21.70 per barrel effective January 1, 2017, with subsequent adjustments based on inflation in even-numbered years starting in 2018.

• Allocates revenue from the tax increase above $6.30 per barrel to multiple state agencies and programs: 60% to substance use disorder treatment and rehabilitation services, 4% each to liquor commission enforcement and drug treatment courts, 3% each to state police enforcement of underage drinking and education department services, and smaller percentages to corrections, veterans affairs, natural resources, and other programs.

• Establishes a $2.00 per barrel tax credit for eligible brewers (producing 50,000 barrels or fewer annually) on the first 30,000 barrels produced.

• Creates an oversight committee chaired by the director of the Office of Recovery Oriented Systems of Care to review distribution of appropriated funds and make recommendations to the legislature.

• Authorizes the liquor commission to designate states with discriminatory beer taxes or licensing practices where Michigan brewers' products cannot be purchased or sold by in-state licensees.