By KEVIN WALKER

Michigan Correspondent

LANSING, Mich. — Michigan Gov. Rick Snyder has signed into law two bills creating the Michigan Craft Beverage Council.

This new body replaces the Michigan Grape and Wine Industry Council, which is responsible for promoting and providing assistance to Michigan’s wine and wine grape-growing industries. The legislation is geared toward broadening the council’s scope to include craft beer and other alcoholic beverages.

Michigan Department of Agriculture and Rural Development (MDARD) Director Gordon Wenk described the action as a “smart move” for the state. The Grape and Wine Industry Council was created 30 years ago, he explained. At that time Michigan had 14 wineries; today it has 145.

According to Wenk, this industry contributes $5.4 billion to Michigan’s economy, including $253 million in tourism spending. Michigan is becoming one of the nation’s “most prolific and innovative producers of craft beers, hard ciders and spirits,” he said.

“As a state, we must evolve with the industry.”

Snyder signed the bills, House Bill 4667 and Senate Bill 440, on May 23. The bills are now Michigan public acts 154 and 155 of 2018. Primary sponsors of the legislation were state Rep. Brandt Iden (R-Oshtemo) and Sen. Geoff Hansen (R-Hart).

The Craft Beverage Council will award grants for research into winemaking, hops, barley, beer and spirits, and conduct market surveys and analysis. The new council will offer financial assistance programs to grow varieties of fruit, barley or hops and establish educational partnerships to benefit these industries.

The Council’s activities are funded exclusively by non-retail, non-wholesale liquor license fees.

“The (Grape and Wine Industry) council has done an adequate job representing Michigan’s wineries since its inception, but it receives some of its funding from license fees paid by brewers, small distilleries and brewpubs, which currently do not benefit from the council’s support,” Hansen said May 10.

“These bills give those businesses a seat at the table. By expanding the council’s membership and increasing funding opportunities, it is better equipped to help support these promising sectors going forward.”

The director of MDARD will serve as chair of the 10-member council and is its only non-voting member. Other members to be appointed by the governor include two winemakers, a winemaker who primarily makes cider, one restaurant and one retail representative, a small distiller, a distiller who makes more than 60,000 gallons of spirits a year, a large brewer and either a microbrewer or a brewpub license holder.

The council will be required to approve an annual budget, and apply for grants and monetary contributions.

According to information from the Senate Fiscal Agency, appropriations to the Wine and Grape Industry Council total $927,000 for fiscal year 2017-18. This consists of $877,900 from non-retail liquor fees, $45,000 from private industry and $3,700 from the general fund.

The additional activities given to the newly named and configured council will be funded from current resources if additional funding is not acquired, the analysis said. The fiscal impact of the new council on MDARD is expected to be minimal. The new body, to be housed at MDARD’s offices, will take effect Oct. 1.