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.