HCS HB 310 -- LIQUOR CONTROL

SPONSOR:  Jones (89)

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
General Laws by a vote of 10 to 0.

This substitute changes the laws regarding liquor control.  In
its main provisions, the substitute:

(1)  Repeals the provisions allowing certain licensed liquor and
wine wholesalers to offer limited price discounts for certain
quantities of any brand and type of liquor and wine and for
close-out merchandise;

(2)  Repeals the requirement that wholesalers follow a monthly
price schedule filed with the Supervisor of the Division of
Alcohol and Tobacco Control within the Department of Public
Safety;

(3)  Requires wholesalers to make available to retailers certain
product information, including price, no later than five days
prior to the first day of the month in which the pricing will be
effective.  Supplemental pricing information can be provided for
new or unintentionally omitted items, which can then be sold
immediately;

(4)  Authorizes wholesalers to offer merchandise below their cost
only if it is designated as close-out merchandise in the monthly
pricing information for at least six months and prohibits them
from purchasing new liquor and wine while it is designated as
close-out merchandise; and

(5)  Requires delivery orders to be invoiced at the price in
effect when the delivery is made, except for delayed shipments
which can be invoiced at the price in effect when the order is
placed.  Currently, delayed shipment orders are those received
during the last three business days of a month and delivered
during the first three business days of the following month.  The
substitute changes those time periods from three to five days.

FISCAL NOTE:  No impact on state funds in FY 2010, FY 2011, and
FY 2012.

PROPONENTS:  Supporters say that the bill will help conform
Missouri statutes to actual practices mandated by antitrust
legislation and will prevent legal challenges to price-posting
statutes.  Elimination of a discount cap requirement will be
beneficial to small businesses.  The bill retains bans on price
discrimination based on the volume of liquor sold.

Testifying for the bill were Representative Jones (89); and Karen
Moore, Wine and Spirit Wholesalers of America.

OPPONENTS:  There was no opposition voiced to the committee.

OTHERS:  Others testifying on the bill say that the ban on price
discrimination based on the volume of liquor sold should remain
in place.  The legislation appears to leave this ban intact.
Price-posting requirements might be more efficiently accomplished
using an Internet system.

Testifying on the bill was Missouri Petroleum Marketers and
Convenience Store Association.

Missouri House of Representatives
95th General Assembly, 1st Regular Session
Last Updated November 17, 2009 at 9:24 am