PRICE OF ALCHOLIC LIQUOR AT

PUBLIC VERSUS PRIVATE FUNCTIONS

House Bill 4432

Sponsor:  Rep. Lee Chatfield

Committee:  Regulatory Reform

Complete to 4-21-15

SUMMARY:

House Bill 4432 would amend the Michigan Liquor Control Code by adding a new section, Section 1014, which would prohibit an on-premises licensee from advertising, selling, or offering to sell, an unlimited quantity of alcoholic liquor at a specific price unless in connection with a private function.  (The term "alcoholic liquor" applies to beer, wine, and spirits.)

The bill also would prohibit an on-premises licensee from advertising, selling, or offering to sell, two or more identical drinks containing alcoholic liquor to an individual for the individual's consumption for one price. If two or more identical drinks containing alcoholic liquor are served to an individual at one time, the price charged for the second and each additional drink must be the same as the price charged for the first drink.

A "private function" would be defined as an event that meets all of the following:

o   It is a prearranged private party, function, or event for a specific social or business occasion.

o   It is only by invitation or reservation.

o   It is not open to the general public.

o   The guests are served in an outdoor service area or room that is designated and used exclusively for the event.

The bill would go into effect 90 days after the date it is enacted into law.

FISCAL IMPACT:

A fiscal analysis is in process.

                                                                                        Legislative Analyst:   Josh Roesner

                                                                                                Fiscal Analyst:   Paul Holland

■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.