MI SB0444

Establishes a certification program allowing small distillers and equivalent out-of-state entities to apply annually (by February 1st) with the Department of Agriculture and Rural Development to become "qualified small distillers."

Reduces the gross profit markup on spirits bottles from the standard 51-65% down to 32.5% for qualified small distillers whose products contain at least 40% base distillate from grain grown and harvested in Michigan, effective January 1, 2023.

Requires qualified small distillers to maintain detailed records of all distilled grain transactions and allows the Department of Agriculture and Rural Development and liquor commission to inspect these records during normal business hours.

Imposes penalties of up to one year imprisonment and/or $3,000 fine for distillers who provide false information, plus requirement to repay the commission the difference between the reduced and standard markup rates.

Defines "distilled grain" to include barley, oats, corn, potatoes, fruit, sugar beets, honey, and other cereal grains grown in Michigan.