RECODIFY LIQUOR CONTROL ACT - H.B. 4454 (S-2): FLOOR ANALYSIS

House Bill 4454 (Substitute S-2 as reported by the Committee of the Whole)

Sponsor: Representative Ilona Varga

House Committee: Regulatory Affairs

Senate Committee: Economic Development, International Trade and Regulatory Affairs

CONTENT

The bill would create the "Michigan Liquor Control Code of 1998" to repeal and recodify the Michigan Liquor Control Act (MCL 436.1-436.58). The proposed Code would, among other things, do the following:

-- Require authorized distribution agents (ADAs) to give retailers access to a computer program concerning the availability of spirits.

-- Prescribe responsibilities of ADAs concerning the delivery of spirits to a retailer in a location inaccessible to a motor vehicle.

-- Limit the number of specially designated distributor (SDD) licenses, and delete a residency requirement for SDDs.

-- Specify that when the Liquor Control Commission chairperson's permanent or temporary residence was within 100 miles of the Commission's office, then the chairperson would have to designate an office as a work station.

-- Provide that all money in the revolving fund maintained by the Liquor Control Commission would have to be available to the Commission for administration of the Code.

-- Increase from 20,000 to 30,000 the number of barrels of beer that a brewer may produce per year and remain eligible to claim the $2 per barrel tax credit allowed under the Code.

-- Permit the Commission to issue in calendar year 1998 any of the 25 additional resort liquor licenses that were available in calendar year 1997.

-- Specify penalties for revoked or transferred liquor licenses.

-- Delete a provision that allows wines manufactured in Michigan to be taxed at a lower rate than other wines.

-- Specify procedures for votes on the question of the sale and manufacture of alcoholic liquor in a county, city, village, or township.

- Legislative Analyst: N. Nagata

FISCAL IMPACT

This recodification includes one change that is noteworthy in a fiscal analysis but would not have any fiscal implications for the State or local governments. The bill would change the accounting of Commission deposits and interest earnings on the common cash fund by crediting them to the Liquor Revolving Fund. These funds would be used for administration of the Commission and would have no fiscal impact on the State as the balance in the Fund still would be credited to the General Fund at year end, as is now the case.

Date Completed: 1-28-98 - Fiscal Analyst: M. Tyszkiewicz

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This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.