HB 433 Modifies provisions relating to intoxicating liquor

     Handler: Schatz

Current Bill Summary

- Prepared by Senate Research -


HCS/HB 433 - This act modifies provisions relating to intoxicating liquor.

POWDERED ALCOHOL - Sec. 311.020

The act adds powdered alcohol to the definition of intoxicating liquor, and adds powdered alcohol to the varieties of alcohol which are subject to certain shipping and delivery restrictions.

LIQUOR-RELATED EQUIPMENT AND MERCHANDISE - Sec. 311.070

This act allows certain additional goods related to the sale and use of alcohol, including ice buckets, napkin holders, and similar goods, to be distributed to retailers for use in promotion of sales.

The dollar limit to the total value of product displays given or sold to alcohol retailers at any one time by distillers, wholesalers, winemakers, and brewers is raised from $300 dollars per brand, per retail outlet, to $500 dollars under this act. The dollar limit to the total value of all permanent point-of-sale advertising materials is also raised from $500 dollars to $800 dollars per year, per brand, per retail outlet. The replacement of similar permanent point-of-sale advertising materials does not apply towards the maximum of $800 dollars.

Certain restrictions and requirements are implemented under this act relating to the giving or lending of alcohol vending equipment to retailers by solicitors, wholesalers, and brewers. These include removing distillers and winemakers from the categories of alcohol producers allowed to give or lend alcohol vending equipment to retailers, specifying that only nonrefrigeration beer may be dispensed, and altering the list of specific tools which may be used to dispense that beer. Under current law, a broader list of such tools is permitted than is permitted under this act. A deposit payment for such equipment is required if an equipment item is loaned for more than ten days within a thirty-day period. A complete record of equipment given, rented, sold, installed, and loaned, and repairs and services made to a retailer, is required for a period of not less than two years.

Distillers, brewers, and winemakers are permitted to directly sell certain merchandise, as long as that merchandise meets criteria set forth in the act.

These provisions are similar to SB 359 (2017) and HCS/HB 679 (2017).

RETAIL SALES BY THE DRINK - Sec. 311.201

This act extends certain provisions relating to alcohol sales in the original package to also encompass alcohol sales by the drink at retail.

CONSUMER CASH REBATE COUPONS - Sec. 311.355

Currently, manufacturers of intoxicating liquor, other than beer or wine, are authorized to offer consumer cash rebate coupons. This act repeals the exception for beer or wine.

Wholesalers are prohibited from funding the cost of any cash rebate coupon program allowed by these provisions.

Subject to state and federal laws to the contrary, retailers of intoxicating liquor may offer coupons, discount, loyalty programs, and other varieties of sales inducements to purchase products. Retailers may also advertise intoxicating liquor by advertising the discount offered and the final price after the discount is applied.

These provisions are similar to provisions of HCS/HB 29 (2017), HCS/HB 433 (2017), HB 494 (2017), SB 224 (2017), and SS/SCS/HCS/HB 115 (2017).

DIRECT ALCOHOL DELIVERY - Sec. 311.185, 311.186, 311.187, 311.188 & 311.420

The act modifies provisions relating to wine direct shipper licenses. The act requires a $100 per year licensing fee, and requires wineries located out of state to make monthly rather than yearly reports to the supervisor of Alcohol and Tobacco Control listing the total amount of wine shipped into the state.

An alcohol carrier license is required in order to transport and deliver shipments of intoxicating liquor directly to a resident of this state. The act sets out certain requirements for alcohol carrier licensees, including obtaining the signature of a person at least 21 years of age as a condition of delivery.

The act specifies that intoxicating liquor may only be shipped from a wine direct shipper or licensed retailer. However, a retailer without an alcohol carrier license may deliver intoxicating liquor, except powdered alcohol, directly to a resident under certain circumstances. The act requires anyone shipping or delivering powered alcohol to a resident of this state for personal use to have an alcohol carrier license.

These provisions are similar to SCS/SB 404 (2017) and HB 783 (2017).

SUPERVISOR OF LIQUOR CONTROL - Sec. 311.275 & 311.510

The act requires the supervisor of Alcohol and Tobacco Control, within the Department of Public Safety, to approve or deny any application for primary American source of supply for any intoxicating liquor product within five working days following the receipt of the properly completed application. Any application that is not approved or denied within five working days shall be considered conditionally approved and the product may be solicited, sold, shipped, ordered, purchased, and received.

The Supervisor of Liquor Control shall not require product samples prior to approving certain beverages for sale if provided with a certain label, and that the Supervisor shall have sole authority to approve all labels for keg collars, bottles, and cans of such beer or other intoxicating malt liquor and any inspections to determine labeling compliance for such products shall not require approval or inspection by federal authorities.

A designee of the Supervisor of Liquor Control may perform certain functions relating to the duties of that office.

These provisions are similar to provisions of SCS/SB 239 (2017), HCS/HB 29 (2017), HCS/HB 895 (2017), and HB 963 (2017).

JOHN GRANA


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