SENATE BILL No. 914

 

 

January 14, 2004, Introduced by Senators CROPSEY, BRATER, GEORGE, HARDIMAN, VAN WOERKOM, McMANUS, ALLEN, BERNERO, SCHAUER, PRUSI, EMERSON, SCOTT, LELAND, CLARKE, THOMAS, BIRKHOLZ and GARCIA and referred to the Committee on Economic Development, Small Business and Regulatory Reform.

 

 

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1998 PA 58, entitled                                              

                                                                                

    "Michigan liquor control code of 1998,"                                     

                                                                                

    by amending sections 221 and 233 (MCL 436.1221 and 436.1233).               

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 221.  (1) The commission is authorized to maintain a                   

                                                                                

2   revolving fund that is to be derived from the money deposited to            

                                                                                

3   the credit of the commission with the state treasurer.  From time           

                                                                                

4   to time, amounts shall be transferred from the revolving fund to            

                                                                                

5   the general fund in accordance with the management and budget               

                                                                                

6   act, 1984 PA 431, MCL 18.1101 to 18.1594.  The fund provided for            

                                                                                

7   in this section shall be used for replenishing, maintaining,                

                                                                                

8   warehousing, and distributing liquor stock throughout the state             

                                                                                

9   and for administration of this act.  The additional money                   

                                                                                

10  generated by the raising of the gross profit amount in section              

                                                                                

11  233 as a result of the 2003 amendatory act that added this                  

                                                                                


                                                                                

1   sentence shall be deposited into the revolving fund and shall be            

                                                                                

2   appropriated to local units of government for the purpose of fire           

                                                                                

3   protection grants. The commission shall make a monthly report of            

                                                                                

4   the fund to the state treasurer and to the budget director.  The            

                                                                                

5   report shall contain an itemized account of all money received              

                                                                                

6   and all expenditures made by the commission during the month                

                                                                                

7   covered in the report.                                                      

                                                                                

8       (2) Interest earnings on common cash attributable to the                    

                                                                                

9   revolving fund shall be credited to the revolving fund and shall            

                                                                                

10  be available to the commission for administration of this act.              

                                                                                

11      (3) All money received by the commission under this act shall               

                                                                                

12  be turned over to the state treasurer according to department of            

                                                                                

13  treasury procedures.                                                        

                                                                                

14      (4) All money deposited by the commission with the state                    

                                                                                

15  treasurer shall be either credited to the revolving fund for                

                                                                                

16  expenditures authorized under subsection (1) or credited to the             

                                                                                

17  general fund to be available for the purposes for which the                 

                                                                                

18  general fund is available.                                                  

                                                                                

19      Sec. 233.  (1) The commission shall establish uniform prices                

                                                                                

20  for the sale of alcoholic liquor in state liquor stores and by              

                                                                                

21  specially designated distributors.  The prices shall return a               

                                                                                

22  gross profit to the commission of not less than 51% and not                 

                                                                                

23  greater than  65%  74%.  If alcoholic liquor purchased by the               

                                                                                

24  commission has not met sales standards established by the                   

                                                                                

25  commission for a period of 6 months, the commission may sell the            

                                                                                

26  alcoholic liquor at a price to be approved by the state                     

                                                                                

27  administrative board.                                                       


                                                                                

1       (2) Notwithstanding subsection (1), the commission may                      

                                                                                

2   establish by rule prices for the sale of alcoholic liquor to                

                                                                                

3   hospitals, charitable institutions, and military establishments             

                                                                                

4   located in this state.                                                      

                                                                                

5       (3) There shall be allowed a discount of  17%  19.25%                       

                                                                                

6   deducted from the sale price established by the commission on the           

                                                                                

7   sale of alcoholic liquor made by the state liquor stores to                 

                                                                                

8   specially designated distributors and establishments licensed to            

                                                                                

9   sell for consumption on the premises.