LIQUOR ADVERTISING; BEER PRICING                                                      S.B. 667 (S-2):

                                                                                                    SUMMARY OF BILL

                                                                                      REPORTED FROM COMMITTEE

Senate Bill 667 (Substitute S-2 as reported)

Sponsor:  Senator Jim Stamas

Committee:  Regulatory Reform

CONTENT

The bill would amend the Michigan Liquor Control Code to do the following:

-- Allow a licensee to provide suction cups, cooler door attachments, and tear pad holders to another licensee.

-- Codify regulations allowing a manufacturer, outstate seller, or vendor of spirits to provide brand logoed merchandise to a retailer to promote its products, if the merchandise were used for display purposes only and other conditions were met.

-- Codify requirements for a manufacturer or wholesaler to file with the Liquor Control Commission a schedule of net cash prices to the retail licensee for all brands of case and keg beer for its market area, and to file a beer package price reduction for its market area.

-- Require a filed beer package price reduction to remain in effect for 90 days (rather than 180 days as required by administrative rules), but allow a manufacturer or wholesaler to increase or reduce the price under certain circumstances.

-- Require a vendor representative and salesperson of a vendor of spirits, manufacturer of beer or wine, outstate seller of beer or wine, or wholesaler to keep records of expenditures for calls on retail licensees.

The bill also would codify rules allowing a vendor representative or salesperson of spirits or wine, a wholesaler of beer, a beer manufacturer's vendor representative or salesperson, or an outstate seller of beer to purchase drinks for on-premises retail customers for promotional purposes, subject to certain limitations. The maximum amount a retail licensee could spend per day would be $100 (rather than $50 as provided under the administrative rules).

MCL 436.1609 et al.                                                 Legislative Analyst:  Drew Krogulecki

FISCAL IMPACT

The bill would have no fiscal impact on State or local government.

Date Completed:  2-8-16                                                       Fiscal Analyst:  Josh Sefton

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.