SPIRITS; SPECIAL LICENSEE                                                     H.B. 4620 (H-2) & 4621:

                                                                                                    SUMMARY OF BILL

                                                                                     REPORTED FROM COMMITTEE

House Bill 4620 (Substitute H-2 as reported without amendment)

House Bill 4621 (as reported without amendment)

Sponsor:  Representative Brandt Iden (H.B. 4620)

               Representative Jack O'Malley (H.B. 4621)

House Committee:  Regulatory Reform

                             Ways and Means

Senate Committee:  Regulatory Reform

CONTENT

House Bill 4620 (H-2) would amend the Michigan Liquor Control Code to do the following:

-- Allow the Michigan Liquor Control Commission (MLCC) to issue a special license to a qualified organization conducting a spirits tasting.

-- Prohibit a holder of a special license from allowing more than six events per calendar year conforming to the requirements listed under the bill.

-- Allow a holder of a special license to purchase the spirits for an event, and receive a rebate on the purchase of spirits subject to certain provisions.

-- Require the special licensee to submit its request for a rebate on a form prescribed by the MLCC.

House Bill 4621 would amend the Michigan Liquor Control Code to allow a vendor of spirits to provide a special licensee with certain brand logoed material and equipment.

House Bill 4620 (H-2) is tie-barred to Senate Bill 588. (Senate Bill 588 would amend the Michigan Liquor Control Code to specify that a specially designated distributor that sold spirits to a special licensee that was authorized by the MLCC to sell spirits could refund the special licensee for the return of an unopened bottle.)

Proposed MCL 436.2028 (H.B. 4620)                          Legislative Analyst:  Drew Krogulecki

Proposed MCL 436.1609e (H.B. 4621)

FISCAL IMPACT

House Bill 4620 (H-2) likely would have a minor negative fiscal impact on State government and no fiscal impact on local units of government. The new special license fees would generate revenue at a rate of $25 per day for each special event. However, it is likely that rebates to special licensees would be greater in magnitude than the revenue generated from license fees. Rebates issued by the Michigan Liquor Control Commission to special licensees would decrease revenue to the Liquor Purchase Revolving Fund. As the Liquor Purchase Revolving Fund lapsed into the General Fund at the close of each fiscal year, the rebates could reduce revenue accruing to the General Fund.

House Bill 4621 would have no fiscal impact on State or local government.

Date Completed:  1-15-20                                        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.