LIQUOR CONTROL CODE; ADD. COST PER CASE                        H.B. 6087 (H-1):

                                                                     SUMMARY OF DISCHARGED BILL

House Bill 6087 (Substitute H-1 as discharged)

Sponsor:  Representative Roger Hauck

House Committee:  Regulatory Reform

Senate Committee:  Regulatory Reform (discharged)

CONTENT

The bill would amend the Michigan Liquor Control Code to increase the amount the Michigan Liquor Control Commission (MLCC) may pay a vendor of spirits for each case of spirits purchased as an offset to the costs of being incurred by that vendor of spirits in contracting with an authorized distribution agent for warehousing and delivering spirits to retailers.

Under the Code, in addition to paying a vendor of spirits the acquisition price for purchasing spirits the Commission may pay an additional amount of at least $4.50 and no more than $8.25 for each case of spirits. The bill would increase these amounts to $8.25 and $12.50 per case, respectively.

MCL 436.1205                                                 Legislative Analyst:  Eleni Lionas

FISCAL IMPACT

The bill would have no direct fiscal impact on the Department of Licensing and Regulatory Affairs, as the MLCC charges vendors the currently allowed maximum of $8.25 per case. The bill would increase the minimum price that may be charged to $8.25 and would set the maximum price at $12.50 per case. The bill would not require the MLCC to increase the price it currently pays vendors, so any cost increases would not occur until the MLCC decided to increase the price it charged vendors.

Date Completed:  6-23-22                                  Fiscal Analyst: Joe Carrasco, Jr. 

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.