MICHIGAN CRAFT BEVERAGE COUNCIL                                                    H.B. 4667 (S-1):

                                                                                                    SUMMARY OF BILL

                                                                                      REPORTED FROM COMMITTEE

House Bill 4667 (Substitute S-1 as reported)

Sponsor:  Representative Brandt Iden

House Committee:  Regulatory Reform

Senate Committee:  Regulatory Reform

CONTENT

The bill would amend Section 303 of the Michigan Liquor Control Code to codify and expand provisions of Executive Reorganization Order 2014-2 regarding the Grape and Wine Industry Council. Specifically, the bill would do the following:

-- Rename the Grape and Wine Industry Council as the Michigan Craft Beverage Council.

-- Decrease the membership of the Council and revise the term limits of its members.

-- Require the Council to direct the Department of Agriculture and Rural Development (MDARD) to award grants for research into fruits used in winemaking and wines, hops, barley, beer, and spirits.

-- Require the Council to direct MDARD to award grants for certain projects. 

-- Require the Council to apply for and accept grants and contributions from public and private entities.

-- Allow the Council to accept money from any source for the purpose of carrying out its responsibilities, and require the money to be forwarded to the State Treasurer for deposit.

-- Prohibit the Council from engaging in lobbying.

The bill states that Section 303 would not prevent the Council from establishing a commodity committee under the Agriculture Commodities Marketing Act.

The bill would take effect on October 1, 2018.

MCL 436.1303                                                         Legislative Analyst:  Stephen Jackson

FISCAL IMPACT

The bill would have minimal fiscal impact on the Michigan Department of Agriculture and Rural Development. The Michigan Craft Beverage Council would be tasked with undertaking additional activities and responsibilities. The bill also would require that the Council approve an annual budget, and apply for grants and monetary contributions.

Current funding for the Council consists of restricted revenue from liquor license fees, excluding retail, renewal and wholesale vendor license fees. Appropriations to the Council total $927,000 for FY 2017-18. This funding consists of $877,900 from nonretail liquor fees, $45,400 from private industry funding, and $3,700 from the General Fund. The additional activities assigned to the Council would be funded from current resources if additional funding were not acquired.

Date Completed:  4-26-18                                         Fiscal Analyst:  Elizabeth Raczkowski

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.