Liquor: other; discount for specially designated distributors and on-premises licensees; increase. Amends sec. 233 of 1998 PA 58 (MCL 436.1233).

Created a new certification program for small distillers and out-of-state equivalents that use at least 40% Michigan-grown grain, with certification managed by the Department of Agriculture and Rural Development.

Changed the gross profit requirement for qualified distilled spirits from 51-65% to a fixed 32.5% starting January 1, 2023.

Requires qualified small distillers to maintain complete records of grain transactions and allows department and commission audits.

Added comprehensive definitions for 'qualified grain' including dry barley, malted barley, oats, small grains, cereal grains, potato, corn, fruit, sugar beets, and honey.

Establishes misdemeanor penalties for providing false information to the department or commission, including potential fines up to $3,000 and imprisonment up to 1 year.

Sets November 1, 2022 as the initial deadline for the department to submit reports of certified distillers, with annual reporting thereafter.

Requires certification fees collected from distillers to be deposited into the Michigan Craft Beverage Council Fund.

Added provisions allowing specially designated distributors and on-premises licensees to receive discounts on uniform prices, with a temporary 23% discount for on-premises licensees during 2020-2021.