Bill Text: MI SB1140 | 2019-2020 | 100th Legislature | Enrolled
Bill Title: Liquor: spirits; definition of mixed spirit drink; modify. Amends sec. 609 of 1998 PA 58 (MCL 436.1609). TIE BAR WITH: SB 1138'20, SB 1139'20
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Enrolled - Dead) 2020-12-30 - Pocket Veto 01/05/2021 [SB1140 Detail]
Download: Michigan-2019-SB1140-Enrolled.html
state of michigan
100th Legislature
Regular session of 2020
Introduced by Senators
Moss, VanderWall and Schmidt
ENROLLED SENATE BILL No. 1140
AN ACT to amend 1998 PA 58, entitled “An act to create a commission for the control of the alcoholic beverage traffic within this state, and to prescribe its powers, duties, and limitations; to provide for powers and duties for certain state departments and agencies; to impose certain taxes for certain purposes; to provide for the control of the alcoholic liquor traffic within this state and to provide for the power to establish state liquor stores; to prohibit the use of certain devices for the dispensing of alcoholic vapor; to provide for the care and treatment of alcoholics; to provide for the incorporation of farmer cooperative wineries and the granting of certain rights and privileges to those cooperatives; to provide for the licensing and taxation of activities regulated under this act and the disposition of the money received under this act; to prescribe liability for retail licensees under certain circumstances and to require security for that liability; to provide procedures, defenses, and remedies regarding violations of this act; to provide for the enforcement and to prescribe penalties for violations of this act; to provide for allocation of certain funds for certain purposes; to provide for the confiscation and disposition of property seized under this act; to provide referenda under certain circumstances; and to repeal acts and parts of acts,” by amending section 609 (MCL 436.1609), as amended by 2016 PA 81.
The People of the State of Michigan enact:
Sec. 609. (1) Except as
provided in this section and sections 605 and 1029, a manufacturer, warehouser,
wholesaler, outstate seller of beer, outstate seller of wine, 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, warehouser,
wholesaler, outstate seller of beer, outstate seller of wine, or vendor of
spirits may, in a manner consistent with rules, regulations, and orders made by
the commission, provide another licensee with an advertising item that promotes
the brands and prices of alcoholic liquor produced by the manufacturer; sold by
the outstate seller of beer or the outstate seller of
wine; or distributed by the wholesaler.
Except as otherwise allowed under subsection (3), (4), (5), or (6), the
advertising item 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, warehouser, wholesaler, outstate seller of beer, outstate seller
of wine, or vendor of spirits may provide goods and services to another
licensee that were approved by the commission under rules or orders adopted
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.
(p) Suction cups.
(q) Cooler door
attachments.
(r) Tear pad holders.
(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 subsection (3), (4), or (6), or as otherwise
allowed under this subsection. A retailer may possess and use brand logoed
barware that advertises spirits 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
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) A manufacturer, outstate seller, or vendor of spirits may provide brand logoed merchandise to an on-premises retailer and off-premises retailer to promote the brand and price of its products under R 436.1321(1) to (3) of the Michigan Administrative Code. All of the following apply to brand logoed merchandise under this subsection:
(a) Brand logoed
merchandise must be used for display purposes only.
(b) Brand logoed
merchandise may only provide brand advertising when used in a display.
(c) Brand logoed
merchandise must be returned to the alcoholic beverage supplier or wholesaler
on completion of the display.
(d) Brand logoed
merchandise must not be given to the retailer
or the retailer’s employee or any
other person for their personal use.
(e) The value of the
brand logoed merchandise on display must not exceed
$200.00 per item.
(f) Brand logoed
merchandise that a retailer could use in the daily
operation of the retailer’s business is prohibited.
(g) Brand logoed
merchandise must be unilluminated.
(h) Brand logoed
merchandise must not be more than 3,500
square inches in dimension.
(i) Brand logoed
merchandise must be owned by the manufacturer or supplier. The ownership of
brand logoed merchandise may not be transferred to the retailer, the retailer’s employee, or any other
person.
(j) A wholesaler may deliver and install a display using
brand logoed merchandise provided without charge by a manufacturer, outstate
seller of beer, outstate seller of wine, or outstate seller of mixed drink.
(7) In addition to the penalties provided under section 903,
a manufacturer of beer or wine, warehouser, wholesaler, outstate seller of
beer, or outstate seller of wine 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.
(8) 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.
(9) 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.
(10) 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.
(11) As used in this section:
(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 under subsection (10).
(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, warehouser, wholesaler,
outstate seller of beer, or outstate seller of wine.
For purposes of this subdivision, a licensing agreement that
authorizes use of a brand logo is not a direct or indirect affiliation.
(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.
(d) “Indirectly affiliated” means, for purposes of this
section only, that a person owns 5% or more of the voting interest of another
person.
(e) “Other valuable thing” means a good, service, or
intangible good that is given, loaned, leased, or sold to another licensee that
has value regardless of whether the value is nominal. Other valuable thing includes,
but is not limited to, a good, service, or intangible good that provided a benefit, regardless of
how nominal, to the licensee other than advertising the brands and prices of
alcoholic liquor produced by the manufacturer; sold by the outstate seller of
beer or the outstate seller of wine; or distributed by the wholesaler, except for consumable goods and those goods, services, or intangible goods approved by rule or order of the commission before January 1,
2014.
(f) “Salesperson”
means, for purposes of this subsection only, 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.
Enacting section 1. This amendatory act does not take effect unless all of the following bills of the 100th Legislature are enacted into law:
(a) Senate Bill No. 1138.
(b) Senate Bill No. 1139.
Secretary of the Senate
Clerk of the House of Representatives
Approved___________________________________________
____________________________________________________
Governor