Dear Senator Hassan and Honorable Members of the Committee,

As Policy Director of New Futures, a non partisan, nonprofit advocacy organization working to reduce underage alcohol problems and increase access to substance use disorder treatment and recovery services, I write to express our strong opposition to SB 475 which repeals all restrictions on “happy hour” and alcohol price advertising.  SB 475 also repeals all restrictions on signage related to the sale of alcohol.  New Futures opposes SB 475 because:

• SB 475 presents risks to underage youth by increasing their exposure to alcohol advertising.
• SB 475 presents risks to young adult legal drinkers by increasing the promotion of reduced price beverages and liquor.
• SB 475 presents risks to business from alcohol – related productivity losses. 

We are joined in our opposition to SB 475 by the Department of Health and Human Services, the New Hampshire Public Health Association, Dover Youth to Youth, University officials, local law enforcement officials, and numerous community coalitions.

We note that in the last two years, the Senate has twice considered and twice rejected legislation to repeal restrictions on “happy hour” advertising:

• In 2008, the Senate Commerce, Labor and Consumer Protection Committee unanimously recommended HB 1197(relative to liquor advertising for “happy hour”) Inexpedient to Legislate.  The full Senate adopted the Committee recommendation by a voice vote.
• In 2009 the Senate Ways & Means Committee considered SB 181 (relative to the liquor commission and alcohol beverages), which included the repeal of “happy hour” advertising restrictions.  The “happy hour” repeal provision was removed in committee and the bill went to the floor without this provision.  Although the bill was laid on the table and was eventually used as a vehicle for other legislative purposes, the action in committee reflected its opposition to unrestricted “happy hour” advertising.   

Current Law and Practice

Our analysis of SB 475 begins with a review of the current law and practice relative to “happy hours.”

• RSA 175: 1, XXXVI – a defines “happy hour” as “any specific or special time period, advertised or not, which is promoted by a licensee and during which beverages are, or liquor is, sold at discounted or reduced prices to individuals or groups … and shall include, but not be limited to, so – called ‘ladies’ or men’s nights.’”  
• It should be noted that New Hampshire, unlike many jurisdictions including Massachusetts and Maine, does not prohibit licensees from selling discounted drinks at “happy hours”.  Instead, New Hampshire strictly limits the advertising of “happy hours” to advertising that can only be viewed from within the licensed establishment. RSA 179: 31, XI. 
• It is also worth noting that the “happy hour” advertising restrictions do not limit a licensee’s ability to advertise either the licensee’s regular beverage and liquor prices or combination packages that offer food and alcohol together at a reduced price. 

SB 475 repeals all  restrictions on “happy hour” advertising; expressly permits licensees to advertise beverage and liquor prices (including reduced/discounted prices) “separately from any other advertisement or promotion;” and repeals all restrictions on signage in RSA 179: 25 (including the requirement that “all exterior signs shall be in conformance with city or town requirements”).   Were SB 475 to become law, all forms of advertising for discounted and reduced price beverages and liquor would be permitted including:

• Large signs (including illuminated signs with brand names/logos) in the windows of or outside establishments;
• Advertisements in newspapers, magazines, and other print media; and
• Radio and television advertising; 

Impact of SB 475

Our analysis of SB 475 continues with a discussion of the negative impact of SB 475 on a number of distinct populations and entities.  Current data and research related to alcohol use by both underage youth and young adult legal drinkers and current research on the impact of alcohol use and abuse on business clearly identifies the significant risks presented by SB 475. 

SB 475 presents risks to underage youth by increasing their exposure to alcohol advertising.

• The 2009 Youth Risk Behavior Survey found that among New Hampshire public high school students:
  • Two out of five (39.3%) had a drink in the last 30 days; and
  • High school students who drink, tend to drink a lot – one in four (24%) reported having five or more drinks within several hours in the past month.
• By eliminating restrictions on “happy hour” advertising and expressly authorizing price advertising, SB 475 will increase the amount of alcohol advertising to which underage youth are exposed.

• Current research clearly establishes that:
  • Exposure to alcohol advertising affects the age at which underage youth begin to drink; and
  • Youth who see, hear, and read more alcohol ads are more likely to drink and drink more heavily than their peers. 

SB 475 presents risks to young adult legal drinkers by increasing the promotion of reduced price beverages and liquor. 

• The National Survey on Drug Use and Health from 2006/2007 found that New Hampshire residents aged 18 and above drank more than the national average:
  • Three of four (73.6%) of 18 – 25 year olds reported drinking in the past month and more than half (53.7%) reported binge drinking (5 or more drinks in several hours for men and 4 or more for women).
  • Among New Hampshire adults aged 26 and above, 65.7% drank and 23.1% binged.  

• Numerous studies have identified a strong correlation between the price of alcohol and the level of consumption, particularly among young adults – the lower the price, the more they drink. Most recently:
  • A 2006 study found that youth living in markets with more alcohol advertising drank more, increased their drinking levels over time, and continued to increase drinking levels into their late 20s.
  • A 2009 study that examined the relationship between alcohol cost and intoxication concluded that drink specials encourage high levels of consumption rather than just attracting customers to licensed establishments. 

SB 475 presents risks to business from alcohol – related productivity losses.

• Even if SB 475 were to increase employment/profitability in the hospitality industry through expanded promotion and sale of discount/reduced price beverages, the risk to the wider business community from alcohol use and abuse is well documented. 
• Research has shown that:
  • More than 80% of binge and heavy alcohol users are employed full or part – time;
  • The annual cost of Alcohol – related productivity losses nationally is estimated to be $134 Billion; and
  • Workforces with large numbers of young adults have much greater rates of problem drinking than workforces that are older.  Problem drinking among younger workers is associated with increased injury, absenteeism and productivity losses.

Conclusion 

Unrestricted “happy hour” and alcohol price advertising encourages and promotes over consumption and communicates the social norm the excess consumption is acceptable, necessary to have fun, and without risk.  In New Hampshire, where numerous community coalitions and other groups work every day to prevent and reduce both underage drinking and excess consumption by legal drinkers, why would the General Court want to pass legislation that conveys a message so clearly contrary to the goal of legal, responsible alcohol use? 

The work of policymakers is to weigh the benefits of proposed legislation against the risks associated with the proposed change.  Because current research and data clearly demonstrate the risk to underage youth, young adult legal drinkers, and business created by removing restrictions on “happy hour” and price advertising, we believe the demonstrated risks outweigh any possible benefits and respectfully request that the Committee recommend SB 475 Inexpedient to Legislate.  Thank you for your attention to this important issue.  Please do not hesitate to contact me if you have questions or need additional information.