Senate Bill 2837

AN ACT TO REQUIRE TRANSPARENCY IN ALE, BEER AND MALT BEVERAGE AND MALT COOLER PRICING THROUGHOUT THE STATE IN ORDER TO PROTECT MISSISSIPPI CONSUMERS; TO PROHIBIT DISCRIMINATION AGAINST DISTRIBUTORS AND WHOLESALERS REGARDING FAVORABLE PRICING, ALLOWANCES, REBATES, REFUNDS, COMMISSIONS OR DISCOUNTS; TO REQUIRE THAT BEFORE ALES, BEERS AND MALT BEVERAGES AND MALT COOLERS CAN BE SOLD TO A DISTRIBUTOR OR WHOLESALER, THE BREWERY OR DOCK PRICE OF THE ALE, BEER OR OTHER MALT BEVERAGE AND MALT COOLER BY BRAND AND CONTAINER SIZE MUST BE FILED WITH THE ALCOHOLIC BEVERAGE CONTROL DIVISION OF THE DEPARTMENT OF REVENUE; TO PROVIDE PENALTIES FOR VIOLATIONS OF THIS SECTION; TO PROVIDE THAT THE ALCOHOLIC BEVERAGE CONTROL DIVISION OF THE DEPARTMENT OF REVENUE HAS THE AUTHORITY TO OVERSEE AND PROMULGATE RULES AND REGULATIONS TO IMPLEMENT THE PROVISIONS OF THIS SECTION; TO AMEND SECTION 67-1-37, MISSISSIPPI CODE OF 1972, TO CONFORM; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) As used in this section, "discriminate" means the granting of a more favorable price, allowance, rebate, refund, commission or discount to one (1) or a few Mississippi distributors or wholesalers and not offering the same favorable price, allowance, rebate, refund, commission or discount to other Mississippi distributors or wholesalers within a same or similar situation and timeframe.

(2) It is unlawful for:

(a) A brewer, manufacturer or other person, firm or corporation engaging in the business of selling ales, beer or other malt beverages or malt coolers to a distributor or wholesaler, to discriminate in price, allowance, price, rebate, refund, commission or discount between distributors or wholesalers licensed in Mississippi; or

(b) A brewer, manufacturer or other person, firm or corporation engaging in the business of selling ales, beer or other malt beverages or malt coolers to a distributor or wholesaler, to sell or deliver ales, beers or other malt beverages and malt coolers to a licensed distributor or wholesaler, unless the brewer, manufacturer, person, firm or corporation files the brewery or dock price of the ale, beer or other malt beverage and malt cooler by brand and container size with the Alcoholic Beverage Control Division of the Department of Revenue.

(i) A brewery or dock price schedule increase shall not take effect until fourteen (14) days after receipt of the brewery or dock price schedule by the Alcoholic and Beverage Control Division.

(ii) A brewery or dock price schedule decrease shall not take effect until two (2) days after receipt of the brewery or dock price schedule by the Alcoholic and Beverage Control Division.

(3) A violation of this section by a brewer, manufacturer or other person, firm or corporation engaging in the business of selling ale, beer or other malt beverages or malt coolers to a distributor or wholesaler, is grounds for denial or suspension of the license of the brewer, manufacturer or other person, firm or corporation engaging in the business of selling ale, beer or other malt beverage or malt cooler to a distributor or wholesaler.

(4) The Alcoholic Beverage Control Division of the Department of Revenue shall have the authority to oversee and promulgate rules and regulations to implement the requirements of this section.

SECTION 2. Section 67-1-37, Mississippi Code of 1972, is amended as follows:

67-1-37. The Department of Revenue, under its duties and powers with respect to the Alcoholic Beverage Control Division therein, shall have the following powers, functions and duties:

(a) To issue or refuse to issue any permit provided for by this article, or to extend the permit or remit in whole or any part of the permit monies when the permit cannot be used due to a natural disaster or act of God.

(b) To revoke, suspend or cancel, for violation of or noncompliance with the provisions of this article, or the law governing the production and sale of native wines or native spirits, or any lawful rules and regulations of the department issued hereunder, or for other sufficient cause, any permit issued by it under the provisions of this article. The department shall also be authorized to suspend the permit of any permit holder for being out of compliance with an order for support, as defined in Section 93-11-153. The procedure for suspension of a permit for being out of compliance with an order for support, and the procedure for the reissuance or reinstatement of a permit suspended for that purpose, and the payment of any fees for the reissuance or reinstatement of a permit suspended for that purpose, shall be governed by Section 93-11-157 or Section 93-11-163, as the case may be. If there is any conflict between any provision of Section 93-11-157 or Section 93-11-163 and any provision of this article, the provisions of Section 93-11-157 or Section 93-11-163, as the case may be, shall control.

(c) To prescribe forms of permits and applications for permits and of all reports which it deems necessary in administering this article.

(d) To fix standards, not in conflict with those prescribed by any law of this state or of the United States, to secure the use of proper ingredients and methods of manufacture of alcoholic beverages.

(e) To issue rules regulating the advertising of alcoholic beverages in the state in any class of media and permitting advertising of the retail price of alcoholic beverages.

(f) To issue reasonable rules and regulations, not inconsistent with the federal laws or regulations, requiring informative labeling of all alcoholic beverages offered for sale within this state and providing for the standards of fill and shapes of retail containers of alcoholic beverages; however, such containers shall not contain less than fifty (50) milliliters by liquid measure.

(g) Subject to the provisions of subsection (3) of Section 67-1-51, to issue rules and regulations governing the issuance of retail permits for premises located near or around schools, colleges, universities, churches and other public institutions, and specifying the distances therefrom within which no such permit shall be issued. The Alcoholic Beverage Control Division shall not issue a package retailer's or on-premises retailer's permit for the sale or consumption of alcoholic beverages in or on the campus of any public school. The Alcoholic Beverage Control Division shall not issue a package retailer's permit for the sale of alcoholic beverages in or on the campus of any community or junior college, college or university.

(h) To adopt and promulgate, repeal and amend, such rules, regulations, standards, requirements and orders, not inconsistent with this article or any law of this state or of the United States, as it deems necessary to control the manufacture, importation, transportation, distribution, delivery and sale of alcoholic liquor, whether intended for beverage or nonbeverage use in a manner not inconsistent with the provisions of this article or any other statute, including the native wine and native spirit laws.

(i) To call upon other administrative departments of the state, county and municipal governments, county and city police departments and upon prosecuting officers for such information and assistance as it may deem necessary in the performance of its duties.

(j) To prepare and submit to the Governor during the month of January of each year a detailed report of its official acts during the preceding fiscal year ending June 30, including such recommendations as it may see fit to make, and to transmit a like report to each member of the Legislature of this state upon the convening thereof at its next regular session.

(k) To inspect, or cause to be inspected, any premises where alcoholic liquors intended for sale are manufactured, stored, distributed or sold, and to examine or cause to be examined all books and records pertaining to the business conducted therein.

(l) To investigate the administration of laws in relation to alcoholic liquors in this and other states and any foreign countries, and to recommend from time-to-time to the Governor and through him to the Legislature of this state such amendments to this article, if any, as it may think desirable.

(m) To designate hours and days when alcoholic beverages may be sold in different localities in the state which permit such sale.

(n) To assign employees to posts of duty at locations where they will be most beneficial for the control of alcoholic beverages and to take any other action concerning persons employed under this article as authorized by law and taken in accordance with the rules, regulations and procedures of the State Personnel Board.

(o) To enforce the provisions made unlawful by Chapter 3, Title 67 and Section 97-5-49.

(p) To delegate its authority under this article to the Alcoholic Beverage Control Division, its director or any other officer or employee of the department that it deems appropriate.

(q) To prescribe and charge a fee to defray the costs of shipping alcoholic beverages, provided that such fee is determined in a manner provided by the department by rules and/or regulations adopted in accordance with the Mississippi Administrative Procedures Law.

(r) The Alcoholic Beverage Control Division shall have the authority to oversee and promulgate rules and regulations to implement the requirements of Section 1 of this act.

The Alcoholic Beverage Control Division shall not issue any permit which would conflict with any zoning ordinance legally adopted by the governing authorities of any municipality or rule or regulation of any board of supervisors of any county as set forth in Section 67-1-7(1).

SECTION 3. This act shall take effect and be in force from and after July 1, 2025.