Senate Bill 2812

AN ACT TO IMPOSE A HANDLING FEE ON EACH MANUFACTURER OR WHOLESALER OF ALCOHOLIC BEVERAGES WHOSE PRODUCT IS PLACED IN THE DEPARTMENT OF REVENUE'S LIQUOR DISTRIBUTION CENTER; TO CREATE A SPECIAL FUND IN THE STATE TREASURY DESIGNATED AS THE ABC CAPITAL EXPENDITURE FUND AND TO PROVIDE THAT REVENUE DERIVED FROM THE HANDLING FEE SHALL BE PLACED IN SUCH FUND; TO PROVIDE THAT MONEY IN THE FUND MAY BE UTILIZED BY THE DEPARTMENT OF REVENUE FOR ANY EXPENDITURE NECESSARY FOR THE OPERATIONS OF THE DEPARTMENT'S LIQUOR DISTRIBUTION CENTER AND GROUNDS; TO PROVIDE THAT WHEN MONEY IN THE ABC CAPITAL EXPENDITURE FUND IS INSUFFICIENT TO COVER THE EXPENDITURES NECESSARY FOR THE OPERATIONS OF THE LIQUOR DISTRIBUTION CENTER, THE DEPARTMENT OF REVENUE MAY BORROW ADDITIONAL FUNDS AND REPAYMENT OF THE LOANS SHALL BE MADE FROM THE FUND; TO AMEND SECTION 27-71-29, MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) There is imposed and shall be collected from each manufacturer or wholesaler whose product is placed in the department's liquor distribution center, by bailment or otherwise, a handling fee of Twenty-five Cents (25¢) per case. This fee shall be collected by the department by any means available, including, but not limited to, the deduction of the fee from any monies due to the manufacturer or wholesaler. In addition to any other remedies available, the department may stop handling the product of any manufacturer or wholesaler who, after a demand for payment, fails to pay any handling fees. The revenue derived from the handling fee imposed by this subsection shall be deposited into the special fund created in subsection (2) of this section.

(2) A special fund, to be designated as the "ABC Capital Expenditure Fund is created within the State Treasury." The fund shall consist of money deposited into the fund pursuant to subsection (1) of this section and any other money designated for deposit into the fund. The fund shall be maintained by the State Treasurer as a separate and special fund, separate and apart from the General Fund of the state. Unexpended amounts remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest earned or investment earnings on amounts in the fund shall be deposited into the fund.

(3) The money in the special fund is earmarked for use by the department for any expenditure necessary for the operations of the department's liquor distribution center and grounds, including, but not limited to, the cost of any construction, expansion, maintenance, repair or upgrade of any structure, equipment, computer hardware and software or personal property used in the operation of the liquor distribution center, and the repayment of any loan incurred by the department for the construction, expansion, maintenance, repair and/or upgrade of any structure, equipment, computer hardware and software and personal property used in the operation of the liquor distribution center.

(4) The department may escalate its budget and expend money in the ABC Capital Expenditure Fund in accordance with rules and regulations of the Department of Finance and Administration in a manner consistent with the escalation of federal funds.

(5) When the money in the ABC Capital Expenditure Fund is insufficient to cover the expenditures necessary for the operations of the department's liquor distribution center and grounds, the department is authorized and empowered to borrow additional funds from banks located in the State of Mississippi at a rate of interest not to exceed eight percent (8%) per annum. The proceeds of the loans shall be deposited into the ABC Capital Expenditure Fund and disbursed from the fund according to law. Repayment of loans authorized by this subsection shall be made from the handling fee imposed in subsection (1) of this section, and shall be secured additionally by the full faith and credit of the State of Mississippi.

(6) The Commissioner of Revenue may from time to time make such rules and regulations, not inconsistent with this section, as he may deem necessary to enforce its provisions.

SECTION 2. Section 27-71-29, Mississippi Code of 1972, is amended as follows:

27-71-29. All taxes levied by this article shall be paid to the * * *~~State Tax Commission~~ Department of Revenue in cash or by personal check, cashier's check, bank exchange, post office money order or express money order and shall be deposited by the * * *~~commission~~ department in the State Treasury on the same day collected, but no remittances other than cash shall be a final discharge of liability for the tax herein imposed and levied unless and until it has been paid in cash to the * * *~~State Tax Commission~~ Department of Revenue.

All taxes levied under Section 27-71-7(1) and received by the * * *~~commission~~ department under this article shall be paid into the General Fund, and the three percent (3%) levied under Section 27-71-7(2) and received by the * * *~~commission~~ department under this article shall be paid into the appropriate special fund in the State Treasury * * *~~designated~~ as the "Alcoholism Treatment and Rehabilitation Fund" as required by law. Any funds derived from the sale of alcoholic beverages in excess of inventory requirements shall be paid not less often than annually into the General Fund.

The revenue derived from the fee imposed under Section 1 of this act shall be deposited into the ABC Capital Expenditure Fund created in Section 1(2) of this act.

SECTION 3. The handling fee imposed in Section 1 of this act shall apply only to that product sold by the Department of Revenue on or after July 1, 2014.

SECTION 4. Section 1 of this act shall be codified as a new section in Chapter 71, Title 27, Mississippi Code of 1972.

SECTION 5. This act shall take effect and be in force from and after July 1, 2014.