Bill Text: MI HB4917 | 2015-2016 | 98th Legislature | Introduced


Bill Title: Liquor; advertising; social media promotions; define and allow. Amends sec. 609 of 1998 PA 58 (MCL 436.1609).

Spectrum: Partisan Bill (Republican 4-0)

Status: (Introduced - Dead) 2015-09-30 - Printed Bill Filed 09/30/2015 [HB4917 Detail]

Download: Michigan-2015-HB4917-Introduced.html

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 4917

September 29, 2015, Introduced by Reps. Kesto, Heise, Iden and Vaupel and referred to the Committee on Regulatory Reform.

 

     A bill to amend 1998 PA 58, entitled

 

"Michigan liquor control code of 1998,"

 

by amending section 609 (MCL 436.1609), as amended by 2014 PA 353.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 609. (1) Except as provided in this section and sections

 

605 and 1029, a manufacturer, mixed spirit drink manufacturer,

 

warehouser, wholesaler, outstate seller of beer, outstate seller of

 

wine, outstate seller of mixed spirit drink, or vendor of spirits

 

shall not aid or assist any other vendor by gift, loan of money or

 

property of any description, or other valuable thing, or by the

 

giving of premiums or rebates, and a vendor shall not accept the

 

same. However, if manufacturers of spirits reduce the price of

 

their products, the manufacturer of spirits may refund the amount

 

of the price reductions to specially designated distributor

 

licensees in a manner prescribed by the commission.


 

     (2) A manufacturer, mixed spirit drink manufacturer,

 

warehouser, wholesaler, outstate seller of beer, outstate seller of

 

wine, outstate seller of mixed spirit drink, or vendor of spirits

 

may, in a manner consistent with rules, regulations, and orders

 

made by the commission, provide another licensee with advertising

 

items that promote the brands and prices of alcoholic liquor

 

produced by the manufacturer; sold by the outstate seller of beer,

 

the outstate seller of wine, or the outstate seller of mixed spirit

 

drink; or distributed by the wholesaler. Except as otherwise

 

provided under subsection (3), (4), or (5), the advertising items

 

shall must not have any use or value beyond the actual advertising

 

of brands and prices of the alcoholic liquor.

 

     (3) Except for those orders that were approved for specific

 

sponsorships or festivals, a manufacturer, mixed spirit drink

 

manufacturer, warehouser, wholesaler, outstate seller of beer,

 

outstate seller of wine, outstate seller of mixed spirit drink, or

 

vendor of spirits may provide goods and services to another

 

licensee that were approved by the commission pursuant to under

 

rules or orders adopted prior to before January 1, 2014 and the

 

following items:

 

     (a) Alcoholic liquor recipes literature.

 

     (b) Calendars and matchbooks.

 

     (c) Removable tap markers or signs.

 

     (d) Table tents.

 

     (e) Shelf talkers.

 

     (f) Bottle neckers.

 

     (g) Cooler stickers.


 

     (h) Buttons, blinking and nonblinking.

 

     (i) Menu clip-ons.

 

     (j) Mirrors.

 

     (k) Napkin holders.

 

     (l) Spirits cold shot tap machines.

 

     (m) Alcoholic liquor drink menus.

 

     (n) Keg couplers that are lent to an on-premises retailer.

 

     (o) Sporting event or entertainment tickets.

 

     (4) A wholesaler may sell brand logoed items to an off-

 

premises licensee if those brand logoed items are contained within

 

the packaging of an alcoholic liquor product that is to be sold to

 

a consumer.

 

     (5) A retailer shall not use or possess, at its licensed

 

premises, advertising items that have a use or value beyond the

 

actual advertising of brands and prices of alcoholic liquor except

 

for those items allowed in under subsections (3) and (4) or as

 

otherwise provided in allowed under this subsection. A retailer may

 

possess and use brand logoed barware that advertises spirits as

 

long as those if the items are purchased from a manufacturer of

 

spirits, vendor of spirits, salesperson, broker, or barware

 

retailer. A retailer may possess and use brand logoed barware that

 

advertises beer or wine as long as those if the items are purchased

 

from a barware retailer. A retailer shall maintain the receipts of

 

all purchased brand logoed barware for at least 3 years and shall

 

make those receipts available for inspection by the commission as

 

provided in section 217. Beginning in the 2015 licensing year, a

 

retailer shall disclose, in a manner as prescribed by the


 

commission on the application for renewal of an existing license,

 

if any barware was purchased by the retailer during the immediately

 

preceding license year.

 

     (6) In addition to the penalties provided under section 903, a

 

manufacturer of beer or wine, mixed spirit drink manufacturer,

 

warehouser, wholesaler, outstate seller of beer, outstate seller of

 

wine, or outstate seller of mixed spirit drink that provides or

 

sells barware and is not authorized to provide or sell barware is

 

subject to a fine in an amount of up to $2,500.00 as determined by

 

the commission. Multiple violations resulting from the same

 

incident may be treated as a single violation for purposes of

 

issuance of any penalty imposed under this act.

 

     (7) An on-premises retailer that hosts an on-premises brand

 

promotional event conducted by a wholesaler or supplier has 14 days

 

after the event to remove from the premises any brand logoed

 

merchandise from the event to maintain compliance with this

 

section.

 

     (8) This act and rules promulgated under this act do not

 

prevent a retailer that holds an off-premises license only from

 

purchasing brand logoed inventory and selling that inventory to its

 

customers.

 

     (9) Beginning after September 25, 2015, the commission may, by

 

rule, add an item to or remove an item from the definition of

 

barware. The commission shall not add or remove more than 1 item

 

per rule and shall not promulgate more than 1 rule at a time on the

 

definition of barware. The commission shall not issue a rule that

 

adds refrigerator systems, draft systems, or furniture to the


 

definition of barware. A rule, regulation, or order adopted after

 

January 1, 2014 that is not adopted in accordance with this

 

subsection and that is not consistent with this section or is in

 

conflict with this section is void and unenforceable.

 

     (10) As used in this section:

 

     (a) "Advertising" does not include a social media promotion.

 

     (b) (a) "Barware" means the following brand logoed items:

 

     (i) Trays.

 

     (ii) Coasters.

 

     (iii) Napkins.

 

     (iv) Shirts.

 

     (v) Hats.

 

     (vi) Pitchers.

 

     (vii) Drinkware that is intended to be reused.

 

     (viii) Bar mats.

 

     (ix) Buckets.

 

     (x) Bottle openers.

 

     (xi) Stir rods.

 

     (xii) Patio umbrellas.

 

     (xiii) Any packaging used to hold and deliver the alcoholic

 

liquor purchased by the retailer.

 

     (xiv) Any other items that have been added by the commission

 

pursuant to under subsection (9).

 

     (c) (b) "Barware retailer" means a person that offers brand

 

logoed barware for sale to retailers, whether or not it is in their

 

ordinary course of business, and that is not licensed as, or

 

directly or indirectly affiliated with, a manufacturer of beer or


 

wine, mixed spirit drink manufacturer, warehouser, wholesaler,

 

outstate seller of beer, outstate seller of wine, or outstate

 

seller of mixed spirit drink. For purposes of this subdivision, a

 

licensing agreement that authorizes use of a brand logo does is not

 

constitute a direct or indirect affiliation.

 

     (d) (c) "Broker" means a person, other than an individual,

 

that is licensed by the commission and that is employed or

 

otherwise retained by a manufacturer of spirits or a vendor of

 

spirits to sell, promote, or otherwise assist in the sale or

 

promotion of spirits.

 

     (e) (d) "Indirectly affiliated" means, for purposes of this

 

section only, that a person owns 5% or more of the voting interest

 

of another person.

 

     (f) (e) "Other valuable thing" means any goods, services, a

 

good, service, or intangible goods good that are is given, loaned,

 

leased, or sold to another licensee that have has value regardless

 

of whether the value is nominal and includes, but is not limited

 

to, goods, services, a good, service, or intangible goods good that

 

provided any provides a benefit, regardless of how nominal, to the

 

licensee. other than advertising Other valuable thing does not

 

include any of the following:

 

     (i) Advertising the brands and prices of alcoholic liquor

 

produced by the manufacturer; , sold by the outstate seller of

 

beer, the outstate seller of wine, or the outstate seller of mixed

 

spirit drink; , or distributed by the wholesaler. , except for

 

     (ii) A consumable goods good. and those goods, services,

 

     (iii) A good, service, or intangible goods good approved by rule


 

or order of the commission prior to before January 1, 2014.

 

     (iv) A social media promotion.

 

     (g) (f) "Salesperson" means a person who is employed by a

 

vendor of spirits or a broker and who is licensed by the commission

 

to sell, deliver, or promote, or otherwise assist in the sale of,

 

spirits in this state.

 

     (h) "Social media promotion" means a promotion by a vendor on

 

a website, social media, or any other electronic media.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.

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