There has been a major breakthrough in legislation involving the long standing debate over the use of brand logoed items by retailers. On March 4, 2014 the House Regulatory Reform Committee passed Substitute H-4 of SB 505 that expands the allowable use of alcoholic beverage brand logoed merchandise by Michigan retail licensees.   While there is still work to be done by the legislature before final passage and the legislation would still need Gov. Snyder's sign-off, since all of the primary parties involved in this seemingly never ending debate over secondary use items have signed off on the Substitute H-4 version of SB 505, final passage and implementation appears likely. Passage of SB 505 would clear a logjam of numerous other liquor bills that are tie-barred to it.

Here's a summary of the impacted legislation:

Secondary Use Items - SB 505

Status: Passed Senate 11/7/13; Substitute H-4 passed House Regulatory Reform Committee 3/4/14.

• Expands the use of brand logoed merchandise by retail licensees. The Substitute H-4 version of SB 505 is a compromise that all pertinent parties appear to have signed off on, including Sen. Hune, the original sponsor of the Bill, which bodes well for likely passage and sign-off by Gov. Snyder. The compromise bill allows for point of sale material advertising price and brand to be provided by suppliers and wholesalers; allows for certain material previously approved by Rule or Commission Order to be provided by suppliers and wholesalers such as calendars, matchbooks, tap markers, mirrors, napkin holders, etc.; and allows for "barware" such as trays, coasters, napkins, shirts, hats, pitchers, drinkware, bar mats, buckets, bottle openers, patio umbrellas, etc. to be sold to retailers. Expansion of secondary use advertising items was one of the many recommendations made by the Liquor Control Advisory Rules Committee established by Gov. Snyder shortly after he took office, of which Mike Brown of Carlin Edwards Brown PLLC was a member.

Construction of Act - SB 504

Status: Passed Senate 11/7/13; passed House Regulatory Reform Committee 3/4/14.

• Formally construe the Liquor Control Act to protect the public health, safety, and welfare of citizens; limits MLCC to administering Act and in adopting Rules, Orders, Bulletins, and Declaratory Rulings consistent with and not in conflict with the Act.

Beer Excise Tax Collection - SB 506

Status: Passed Senate 11/7/13; passed House Regulatory Reform Committee 3/4/14.

• Allows brewer or beer supplier to designate Michigan Wholesaler to pay Michigan Beer Excise Tax on their behalf.

Wine Excise Tax Collection - SB 507

Status: Passed Senate 11/7/13; passed House Regulatory Reform Committee 3/4/14.

• Allows winery or wine supplier to designate Michigan Wholesaler to pay Michigan Wine Excise Tax on their behalf.

Micro Brewer Self Distribution - SB 650

Status: Passed Senate 11/7/13; passed House Regulatory Reform Committee 3/4/14.

• Allows qualifying in-state or out-of-state Micro Brewer to sell and deliver beer to a retailer in Michigan.

Real Estate Development - SB 329

Status: Passed Senate 11/13/13; passed House Regulatory Reform Committee 3/4/14.

• Expands real estate development opportunities for wineries and distilleries involving retail vendors similar to what is currently allowed for breweries.

Micro Brewer Annual Production - HB 4709

Status: Passed House 11/14/13; referred to Senate Regulatory Reform Committee 12/3/13.

• Increases annual production for a Micro Brewer to 60,000 barrels per year (increase from current 30,000 barrel limit).

Brewpub Ownership and Production - HB 4710

Status: Passed House 11/14/13; referred to Senate Regulatory Reform Committee 12/3/13.

• Increases allowable Brewpub ownership to 6 locations (increase from current 3 locations) and increases total annual production to 18,000 barrels (increase from current 5,000 barrel limit).

Brewer On-Premises Sales - HB 4711

Status: Passed House 11/14/13; referred to Senate Regulatory Reform Committee 12/3/13.

• Increases allowable on-premises sales locations for a Brewer to two locations (increase from current one location limit).

Other Legislative Updates:

Conditional License - HB 5488 

Final passage 12/12/13 - Signed by Gov. Snyder - Tie barred to several Senate Bills which passed the Senate in 2013 and on 3/4/14 passed out of House Regulatory Reform Committee. The tie-barred bills now go to the full House of Representatives where passage is expected and then return to the Senate for approval of substitute/amended versions of the bills, approval of which is also anticipated. If the tie-barred bills subsequently pass and are signed into law, the Conditional License legislation will be effective May 22, 2014.

SDD Intracounty Transfer - HB 5140

Status: Final passage 12/12/13 - Signed by Gov. Snyder - Effective 12/26/13

• Allows for escrowed SDD licenses to transfer within the county where the SDD license was originally issued.

BYO Wine - HB 5046

Status: Final passage 12/12/13 - Signed by Gov. Snyder - Effective 3/14/14

• This law allows customers of an on-premises licensee to bring a sealed bottle of wine into the establishment for consumption on the premises. The allowance by the licensee is completely optional and the licensee may charge a corkage fee if so desired.