ALLOW LIQUOR PROMOTION SIGNS

Senate Bill 358 as passed by the Senate

Sponsor:  Sen. Rick Jones

House Committee:  Regulatory Reform

Senate Committee:  Regulatory Reform

Complete to 9-5-17

SUMMARY:

Senate Bill 358 would add a new section to the Michigan Liquor Control Code to allow (with some restrictions) a manufacturer, mixed spirit drink manufacturer, warehouser, wholesaler, outstate seller of beer, outstate seller of mixed spirit drink, or vendor of spirits (hereinafter "listed entities") to provide a licensed retailer with signs that promote the brands and prices of alcoholic products, including special event pricing. 

Under the bill, a sign:

·         Must not be illuminated.

·         Must not have any use beyond the actual advertising of brands, prices, and events related to the product.

·         Must not include the name of the retailer.

·         Must not be more than 3,500 square inches in dimension if located inside the retailer’s licensed premises.

An illuminated sign could be used by a retailer to promote the brand, but not the price of an alcoholic product. The listed entities would be prohibited from providing such a sign to a retailer.  Further, the signs allowed under the bill would be in addition to the advertising items that the listed entities are allowed to provide another licensee under Section 609(2) of the code.  [Section 609(2) allows the listed entities—in a manner consistent with rules, regulations, and orders of the Michigan Liquor Control Commission—to 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, wine, or mixed spirit drink, or distributed by the wholesaler.  Except otherwise as provided, the advertising item cannot have any other use or value beyond the actual advertising of brands and prices of the alcoholic liquor.]

The bill would take effect 90 days after enactment.

FISCAL IMPACT:

The bill would not have fiscal implications for state or local units of government.

                                                                                         Legislative Analyst:   Susan Stutzky

                                                                                                 Fiscal Analyst:   Marcus Coffin

■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.