State Codes and Statutes

Statutes > Utah > Title-32a > Chapter-12 > 32a-12-603-repealed-07-01-11

32A-12-603 (Repealed 07/01/11). Tied house -- Prohibitions.
(1) (a) It is unlawful for an industry member, directly or indirectly or through an affiliate,to induce any retailer to purchase any alcoholic beverages from the industry member or from thedepartment to the exclusion in whole or in part of any of those products sold or offered for saleby other persons by acquiring or holding any interest in any license with respect to the premisesof a retailer, except where the license is held by a retailer that is completely owned by theindustry member.
(b) Interest in any retail license includes any interest acquired by a corporate official,partner, employee, or other representative of the industry member.
(c) Any interest in a retail license acquired by a separate corporation in which theindustry member or the industry member's officials hold ownership or are otherwise affiliated isan interest in a retail license.
(d) Less than complete ownership of a retail business by an industry member constitutesan interest in a retail license within the meaning of Subsection (1)(a).
(2) (a) It is unlawful for any industry member, directly or indirectly or through anaffiliate, to induce any retailer to purchase any alcoholic beverages from the industry member orfrom the department to the exclusion in whole or in part of any of those products sold or offeredfor sale by other persons by acquiring any interest in real or personal property owned, occupied,or used by the retailer in the conduct of the retailer's business.
(b) For purposes of Subsection (2)(a):
(i) "interest" does not include complete ownership of a retail business by an industrymember;
(ii) interest in retail property includes any interest acquired by a corporate official,partner, employee, or other representative of the industry member;
(iii) any interest in a retail license acquired by a separate corporation in which theindustry member or its officials hold ownership or are otherwise affiliated is an interest in theretailer's property;
(iv) less than complete ownership of a retail business by an industry member constitutesan interest in retail property;
(v) the acquisition of a mortgage on a retailer's real or personal property by an industrymember constitutes an interest in the retailer's property; and
(vi) the renting of display space by an industry member at a retail establishmentconstitutes an interest in the retailer's property.
(3) (a) It is unlawful for any industry member, directly or indirectly or through anaffiliate, to induce any retailer to purchase any alcoholic beverages from the industry member orfrom the department to the exclusion in whole or in part of any of those products sold or offeredfor sale by other persons by furnishing, giving, renting, lending, or selling to the retailer anyequipment, fixtures, signs, supplies, money, services, or other thing of value, subject to theexceptions enumerated in Subsection (4).
(b) (i) For purposes of this Subsection (3), indirect inducement includes:
(A) furnishing things of value to a third party where the benefits resulting from the thingsof value flow to individual retailers; and
(B) making payments for advertising to a retailer association or a display company wherethe resulting benefits flow to individual retailers.
(ii) Notwithstanding Subsection (3)(b)(i), an indirect inducement does not arise if:

(A) the thing of value was furnished to a retailer by the third party without the knowledgeor intent of the industry member; or
(B) the industry member did not reasonably foresee that the thing of value would havebeen furnished to a retailer.
(iii) Anything that may lawfully be furnished, given, rented, lent, or sold by industrymembers to retailers under Subsection (4) may be furnished directly by a third party to a retailer.
(c) (i) A transaction in which equipment is sold to a retailer by an industry member,except as provided in Subsection (4), is the selling of equipment within the meaning ofSubsection (3)(a) regardless of how the equipment is sold.
(ii) The negotiation by an industry member of a special price to a retailer for equipmentfrom an equipment company is the furnishing of a thing of value within the meaning ofSubsection (3)(a).
(d) The furnishing of free warehousing by delaying delivery of alcoholic beveragesbeyond the time that payment for the product is received, or if a retailer is purchasing on credit,delaying final delivery of products beyond the close of the period of time for which credit islawfully extended, is the furnishing of a service or thing of value within the meaning ofSubsection (3)(a).
(e) Any financial, legal, administrative, or influential assistance given a retailer by anindustry member in the retailer's acquisition of the retailer's license is the furnishing of a serviceor thing of value within the meaning of Subsection (3)(a).
(4) (a) Notwithstanding Subsection (3), things of value may be furnished by industrymembers to retailers under the conditions and within the limitations prescribed in:
(i) this Subsection (4); and
(ii) the applicable federal laws cited in this Subsection (4).
(b) (i) The following may be furnished by an industry member:
(A) a product display as provided in 27 C.F.R. Sec. 6.83;
(B) point of sale advertising materials and consumer advertising specialties as providedin 27 C.F.R. Sec. 6.84;
(C) things of value to a temporary retailer to the extent allowed in 27 C.F.R. Sec. 6.85;
(D) equipment and supplies as provided in 27 C.F.R. Sec. 6.88;
(E) combination packaging as provided in 27 C.F.R. Sec. 6.93;
(F) educational seminars as provided in 27 C.F.R. Sec. 6.94;
(G) consumer promotions as provided in 27 C.F.R. Sec. 6.96;
(H) advertising service as provided in 27 C.F.R. Sec. 6.98;
(I) stocking, rotation, and pricing service as provided in 27 C.F.R. Sec. 6.99;
(J) merchandise as provided in 27 C.F.R. Sec. 6.101; and
(K) outside signs as provided in 27 C.F.R. Sec. 6.102.
(ii) The following exceptions provided in federal law are not adopted:
(A) the exception for samples provided in 27 C.F.R. Sec. 6.91;
(B) the exception for consumer tasting or sampling at retail establishments provided in27 C.F.R. Sec. 6.95; and
(C) the exception for participation in retailer association activities provided in 27 C.F.R.Sec. 6.100.
(iii) To the extent required by 27 C.F.R. Sec. 6.81(b) an industry member shall keep andmaintain a record:

(A) of all items furnished to a retailer;
(B) on premises of the industry member; and
(C) for a three-year period.
(c) A sample of liquor may be provided to the department under the following conditions:
(i) This Subsection (4)(c) includes a sample of:
(A) wine;
(B) heavy beer; or
(C) on or after October 1, 2008, a flavored malt beverage.
(ii) With the department's permission, an industry member may submit departmentsamples to the department for product testing, analysis, and sampling.
(iii) No more than two department samples of a particular type, vintage, and productionlot of a particular branded product may be submitted to the department for department testing,analysis, and sampling within a consecutive 120-day period.
(iv) (A) A sample of liquor may not exceed 1 liter.
(B) Notwithstanding Subsection (4)(c)(iv)(A), a sample of the following may not exceed1.5 liters unless that exact product is only commercially packaged in a larger size, not to exceed 5liters:
(I) wine;
(II) heavy beer; or
(III) on or after October 1, 2008, a flavored malt beverage.
(v) (A) A department sample submitted to the department:
(I) shall be shipped prepaid by the industry member by common carrier; and
(II) may not be shipped by United States mail directly to the department's centraladministrative warehouse office.
(B) A department sample may not be shipped to any other location within the state.
(vi) A department sample submitted to the department shall be accompanied by a letterfrom the industry member:
(A) clearly identifying the product as a "department sample"; and
(B) clearly stating the FOB case price of the product.
(vii) (A) The department may transfer listed items from current stock for use ascomparison control samples or to verify product spoilage as considered appropriate.
(B) Each sample transferred under Subsection (4)(c)(vi)(A) shall be charged back to therespective industry member.
(viii) The department shall:
(A) account for, label, and record all department samples received or transferred;
(B) account for the department sample's disposition; and
(C) maintain a record:
(I) of the samples and their disposition; and
(II) for a two-year period.
(ix) The department shall affix to each bottle or container a label clearly identifying theproduct as a "department sample".
(x) A department sample delivered to the department or transferred from thedepartment's current stock shall be disposed of at the discretion of the department in one of thefollowing ways:
(A) tested and analyzed with the remaining contents destroyed under controlled and

audited conditions established by the department;
(B) entire contents destroyed under controlled and audited conditions established by thedepartment; or
(C) added to the inventory of the department for sale to the public.
(xi) Persons other than authorized department officials may not be in possession ofdepartment samples except as otherwise provided.
(d) Samples of beer may be provided by a beer industry member to a retailer under theconditions listed in this Subsection (4)(d).
(i) Samples of beer may be provided by an industry member only to a retailer who hasnot purchased the brand of beer from that industry member within the last 12 months.
(ii) For each retailer, the industry member may give not more than three gallons of anybrand of beer, except that if a particular product is not available in a size within the quantitylimitation an industry member may furnish the next largest size.
(e) Educational seminars may involve an industry member under the conditions listed inthis Subsection (4)(e).
(i) An industry member may provide or participate in educational seminars:
(A) involving:
(I) the department;
(II) retailers;
(III) holders of educational or scientific special use permits;
(IV) other industry members; or
(V) employees of the persons listed in Subsections (4)(e)(i)(A)(I) through (IV); and
(B) regarding such topics as:
(I) merchandising and product knowledge;
(II) use of equipment; and
(III) tours of alcoholic beverage manufacturing facilities.
(ii) An industry member may not pay a department employee's, retailer's, or permittee'sexpenses or compensate them for attending a seminar or tour described in Subsection (4)(e)(i).
(iii) (A) A liquor industry member for purposes of this Subsection (4)(e)(iii) includes anindustry member for:
(I) wine;
(II) heavy beer; and
(III) on or after October 1, 2008, a flavored malt beverage.
(B) A liquor industry member may conduct a tasting of the industry member's liquorproducts:
(I) for the department, at the department's request; and
(II) for licensed industry representatives, but only at the department's centraladministrative warehouse office.
(C) The industry member may only use department or industry representative sampleswhen conducting any tasting of the industry member's products.
(iv) A beer industry member may conduct tastings of beer products for a licensed beerretailer either at:
(A) the industry member's premises; or
(B) a retail establishment.
(v) Except to the extent authorized by commission rule, an alcoholic beverage industry

member may not conduct tasting or sampling activities with:
(A) a retailer; or
(B) a member of the general public.
(f) A beer industry member may participate in beer retailer association activities to theextent authorized by 27 C.F.R. Sec. 6.100.
(g) (i) An industry member may contribute to charitable, civic, religious, fraternal,educational, or community activities.
(ii) A contribution described in Subsection (4)(g)(i) may not be given to influence aretailer in the selection of the alcoholic beverage products that may be sold at these activities andevents.
(iii) An industry member or retailer violates this section if:
(A) the industry member's contribution described in Subsection (4)(g)(i) influences,directly or indirectly, the retailer in the selection of alcoholic beverage products; and
(B) a competitor's alcoholic beverage products are excluded in whole or in part from saleat the activity or event.
(h) (i) An industry member may lease or furnish equipment listed in Subsection (4)(h)(ii)to a retailer if:
(A) the equipment is leased or furnished for a special event;
(B) a reasonable rental or service fee is charged for the equipment; and
(C) the period for which the equipment is leased or furnished does not exceed 30 days.
(ii) This Subsection (4)(h) applies to the following equipment:
(A) a picnic pump;
(B) a cold plate;
(C) a tub;
(D) a keg box;
(E) a refrigerated trailer;
(F) a refrigerated van; or
(G) a refrigerated draft system.
(i) (i) A liquor industry member for purposes of this Subsection (4)(i) includes anindustry member for:
(A) wine;
(B) heavy beer; or
(C) on or after October 1, 2008, a flavored malt beverage.
(ii) A liquor industry member may assist the department in:
(A) ordering, shipping, and delivering merchandise;
(B) new product notification;
(C) listing and delisting information;
(D) price quotations;
(E) product sales analysis;
(F) shelf management; and
(G) educational seminars.
(iii) (A) Subject to Subsection (4)(i)(iii)(B), a liquor industry member may, for thepurpose of acquiring new listings:
(I) solicit orders from the department; and
(II) submit to the department samples of their products under Subsection (4)(c) and price

lists.
(B) An industry member may not solicit either in person, by mail, or otherwise, any statestore personnel for the purpose or with the intent of furthering the sale of a particular brand orbrands of alcoholic beverage product as against another brand or brands.
(iv) (A) Any visitations to a state store or package agency by an industry member shall beconfined to the customer areas of the store unless otherwise approved.
(B) Calls on the state warehouse by industry members are to be confined to the officearea only unless otherwise approved.
(v) A beer industry member may assist licensed retailers in:
(A) ordering, shipping, and delivering beer merchandise;
(B) new product notification;
(C) listing and delisting information;
(D) price quotations;
(E) product sales analysis;
(F) shelf management; and
(G) educational seminars.
(vi) A beer industry member may, for the purpose of acquiring new listings:
(A) solicit orders from licensed retailers; and
(B) submit to licensed retailers samples of their beer products under Subsection (4)(c)and price lists.
(5) It is unlawful for any industry member, directly or indirectly or through an affiliate, toinduce any retailer to purchase any alcoholic beverages from the industry member or from thedepartment to the exclusion in whole or in part of any of those products sold or offered for saleby other persons by paying or crediting the retailer for any advertising, display, or distributionservice:
(a) as defined in and to the extent restricted by 27 C.F.R. Sections 6.51 through 6.56; and
(b) subject to the exceptions:
(i) for newspaper cuts listed in 27 C.F.R. Sec. 6.92; and
(ii) for advertising services listed in 27 C.F.R. Sec. 6.98.
(6) It is unlawful for any industry member, directly or indirectly or through an affiliate, to induce any retailer to purchase any alcoholic beverages from the industry member or from thedepartment to the exclusion in whole or in part of any of those products sold or offered for saleby other persons by guaranteeing any loan or the repayment of any financial obligation of theretailer.
(7) (a) It is unlawful for any industry member, directly or indirectly or through anaffiliate, to induce any retailer to purchase any beer from the industry member to the exclusion inwhole or in part of any beer products sold or offered for sale by other persons by extending to anyretailer credit for a period in excess of 15 days from the date of delivery to the date of full legaldischarge of the retailer through the payment of cash or its equivalent, from all indebtednessarising from the transaction, so long as that beer purchased or delivered during the first 15 daysof any month is paid for in cash or its equivalent on or before the 25th day of the same month,and beer purchased or delivered after the 15th day of any month is paid for in cash or itsequivalent on or before the 10th day of the next succeeding month.
(b) First party in-state checks are considered cash payment if the checks:
(i) are honored on presentment; and

(ii) received under the terms prescribed in Subsection (7)(a).
(c) An extension of credit for product purchased by an industry member to a retailerwhose account is in arrears does not constitute a violation of Subsection (7)(a) if the retailer paysin advance or on delivery an amount equal to or greater than the value of each order, regardlessof the manner in which the industry member applies the payment in its records.
(8) (a) It is unlawful for any industry member, directly or indirectly or through anaffiliate, to induce any retailer to purchase any alcoholic beverages from the industry member orfrom the department to the exclusion in whole or in part of any of those products sold or offeredfor sale by other persons by requiring:
(i) the department to take and dispose of a certain quota of any alcoholic products; or
(ii) a beer retailer to take and dispose of a certain quota of any beer products.
(b) (i) It is an unlawful means to induce to require:
(A) the department to purchase one product in order to purchase another; or
(B) a beer retailer to purchase one beer product in order to purchase another.
(ii) This Subsection (8)(b) includes:
(A) the requirement to take a minimum quantity of a product in standard packaging inorder to obtain the same product in some type of premium package such as:
(I) a distinctive decanter; or
(II) a wooden or tin box; or
(B) combination sales if one or more products may be purchased only in combinationwith other products and not individually.
(c) This Subsection (8) does not preclude the selling, at a special combination price, twoor more kinds or brands of products so long as the department or beer retailer:
(i) has the option of purchasing either product at the usual price; and
(ii) is not required to purchase any product the department or beer retailer does not want.
(d) An industry member may package and distribute alcoholic beverages in combinationwith other nonalcoholic items or products.
(e) The combination package shall be designed to be delivered intact to the consumer andthe additional cost incurred by the industry member shall be included in the cost to thedepartment or beer retailer.

Repealed by Chapter 276, 2010 General Session
Amended by Chapter 391, 2008 General Session

State Codes and Statutes

Statutes > Utah > Title-32a > Chapter-12 > 32a-12-603-repealed-07-01-11

32A-12-603 (Repealed 07/01/11). Tied house -- Prohibitions.
(1) (a) It is unlawful for an industry member, directly or indirectly or through an affiliate,to induce any retailer to purchase any alcoholic beverages from the industry member or from thedepartment to the exclusion in whole or in part of any of those products sold or offered for saleby other persons by acquiring or holding any interest in any license with respect to the premisesof a retailer, except where the license is held by a retailer that is completely owned by theindustry member.
(b) Interest in any retail license includes any interest acquired by a corporate official,partner, employee, or other representative of the industry member.
(c) Any interest in a retail license acquired by a separate corporation in which theindustry member or the industry member's officials hold ownership or are otherwise affiliated isan interest in a retail license.
(d) Less than complete ownership of a retail business by an industry member constitutesan interest in a retail license within the meaning of Subsection (1)(a).
(2) (a) It is unlawful for any industry member, directly or indirectly or through anaffiliate, to induce any retailer to purchase any alcoholic beverages from the industry member orfrom the department to the exclusion in whole or in part of any of those products sold or offeredfor sale by other persons by acquiring any interest in real or personal property owned, occupied,or used by the retailer in the conduct of the retailer's business.
(b) For purposes of Subsection (2)(a):
(i) "interest" does not include complete ownership of a retail business by an industrymember;
(ii) interest in retail property includes any interest acquired by a corporate official,partner, employee, or other representative of the industry member;
(iii) any interest in a retail license acquired by a separate corporation in which theindustry member or its officials hold ownership or are otherwise affiliated is an interest in theretailer's property;
(iv) less than complete ownership of a retail business by an industry member constitutesan interest in retail property;
(v) the acquisition of a mortgage on a retailer's real or personal property by an industrymember constitutes an interest in the retailer's property; and
(vi) the renting of display space by an industry member at a retail establishmentconstitutes an interest in the retailer's property.
(3) (a) It is unlawful for any industry member, directly or indirectly or through anaffiliate, to induce any retailer to purchase any alcoholic beverages from the industry member orfrom the department to the exclusion in whole or in part of any of those products sold or offeredfor sale by other persons by furnishing, giving, renting, lending, or selling to the retailer anyequipment, fixtures, signs, supplies, money, services, or other thing of value, subject to theexceptions enumerated in Subsection (4).
(b) (i) For purposes of this Subsection (3), indirect inducement includes:
(A) furnishing things of value to a third party where the benefits resulting from the thingsof value flow to individual retailers; and
(B) making payments for advertising to a retailer association or a display company wherethe resulting benefits flow to individual retailers.
(ii) Notwithstanding Subsection (3)(b)(i), an indirect inducement does not arise if:

(A) the thing of value was furnished to a retailer by the third party without the knowledgeor intent of the industry member; or
(B) the industry member did not reasonably foresee that the thing of value would havebeen furnished to a retailer.
(iii) Anything that may lawfully be furnished, given, rented, lent, or sold by industrymembers to retailers under Subsection (4) may be furnished directly by a third party to a retailer.
(c) (i) A transaction in which equipment is sold to a retailer by an industry member,except as provided in Subsection (4), is the selling of equipment within the meaning ofSubsection (3)(a) regardless of how the equipment is sold.
(ii) The negotiation by an industry member of a special price to a retailer for equipmentfrom an equipment company is the furnishing of a thing of value within the meaning ofSubsection (3)(a).
(d) The furnishing of free warehousing by delaying delivery of alcoholic beveragesbeyond the time that payment for the product is received, or if a retailer is purchasing on credit,delaying final delivery of products beyond the close of the period of time for which credit islawfully extended, is the furnishing of a service or thing of value within the meaning ofSubsection (3)(a).
(e) Any financial, legal, administrative, or influential assistance given a retailer by anindustry member in the retailer's acquisition of the retailer's license is the furnishing of a serviceor thing of value within the meaning of Subsection (3)(a).
(4) (a) Notwithstanding Subsection (3), things of value may be furnished by industrymembers to retailers under the conditions and within the limitations prescribed in:
(i) this Subsection (4); and
(ii) the applicable federal laws cited in this Subsection (4).
(b) (i) The following may be furnished by an industry member:
(A) a product display as provided in 27 C.F.R. Sec. 6.83;
(B) point of sale advertising materials and consumer advertising specialties as providedin 27 C.F.R. Sec. 6.84;
(C) things of value to a temporary retailer to the extent allowed in 27 C.F.R. Sec. 6.85;
(D) equipment and supplies as provided in 27 C.F.R. Sec. 6.88;
(E) combination packaging as provided in 27 C.F.R. Sec. 6.93;
(F) educational seminars as provided in 27 C.F.R. Sec. 6.94;
(G) consumer promotions as provided in 27 C.F.R. Sec. 6.96;
(H) advertising service as provided in 27 C.F.R. Sec. 6.98;
(I) stocking, rotation, and pricing service as provided in 27 C.F.R. Sec. 6.99;
(J) merchandise as provided in 27 C.F.R. Sec. 6.101; and
(K) outside signs as provided in 27 C.F.R. Sec. 6.102.
(ii) The following exceptions provided in federal law are not adopted:
(A) the exception for samples provided in 27 C.F.R. Sec. 6.91;
(B) the exception for consumer tasting or sampling at retail establishments provided in27 C.F.R. Sec. 6.95; and
(C) the exception for participation in retailer association activities provided in 27 C.F.R.Sec. 6.100.
(iii) To the extent required by 27 C.F.R. Sec. 6.81(b) an industry member shall keep andmaintain a record:

(A) of all items furnished to a retailer;
(B) on premises of the industry member; and
(C) for a three-year period.
(c) A sample of liquor may be provided to the department under the following conditions:
(i) This Subsection (4)(c) includes a sample of:
(A) wine;
(B) heavy beer; or
(C) on or after October 1, 2008, a flavored malt beverage.
(ii) With the department's permission, an industry member may submit departmentsamples to the department for product testing, analysis, and sampling.
(iii) No more than two department samples of a particular type, vintage, and productionlot of a particular branded product may be submitted to the department for department testing,analysis, and sampling within a consecutive 120-day period.
(iv) (A) A sample of liquor may not exceed 1 liter.
(B) Notwithstanding Subsection (4)(c)(iv)(A), a sample of the following may not exceed1.5 liters unless that exact product is only commercially packaged in a larger size, not to exceed 5liters:
(I) wine;
(II) heavy beer; or
(III) on or after October 1, 2008, a flavored malt beverage.
(v) (A) A department sample submitted to the department:
(I) shall be shipped prepaid by the industry member by common carrier; and
(II) may not be shipped by United States mail directly to the department's centraladministrative warehouse office.
(B) A department sample may not be shipped to any other location within the state.
(vi) A department sample submitted to the department shall be accompanied by a letterfrom the industry member:
(A) clearly identifying the product as a "department sample"; and
(B) clearly stating the FOB case price of the product.
(vii) (A) The department may transfer listed items from current stock for use ascomparison control samples or to verify product spoilage as considered appropriate.
(B) Each sample transferred under Subsection (4)(c)(vi)(A) shall be charged back to therespective industry member.
(viii) The department shall:
(A) account for, label, and record all department samples received or transferred;
(B) account for the department sample's disposition; and
(C) maintain a record:
(I) of the samples and their disposition; and
(II) for a two-year period.
(ix) The department shall affix to each bottle or container a label clearly identifying theproduct as a "department sample".
(x) A department sample delivered to the department or transferred from thedepartment's current stock shall be disposed of at the discretion of the department in one of thefollowing ways:
(A) tested and analyzed with the remaining contents destroyed under controlled and

audited conditions established by the department;
(B) entire contents destroyed under controlled and audited conditions established by thedepartment; or
(C) added to the inventory of the department for sale to the public.
(xi) Persons other than authorized department officials may not be in possession ofdepartment samples except as otherwise provided.
(d) Samples of beer may be provided by a beer industry member to a retailer under theconditions listed in this Subsection (4)(d).
(i) Samples of beer may be provided by an industry member only to a retailer who hasnot purchased the brand of beer from that industry member within the last 12 months.
(ii) For each retailer, the industry member may give not more than three gallons of anybrand of beer, except that if a particular product is not available in a size within the quantitylimitation an industry member may furnish the next largest size.
(e) Educational seminars may involve an industry member under the conditions listed inthis Subsection (4)(e).
(i) An industry member may provide or participate in educational seminars:
(A) involving:
(I) the department;
(II) retailers;
(III) holders of educational or scientific special use permits;
(IV) other industry members; or
(V) employees of the persons listed in Subsections (4)(e)(i)(A)(I) through (IV); and
(B) regarding such topics as:
(I) merchandising and product knowledge;
(II) use of equipment; and
(III) tours of alcoholic beverage manufacturing facilities.
(ii) An industry member may not pay a department employee's, retailer's, or permittee'sexpenses or compensate them for attending a seminar or tour described in Subsection (4)(e)(i).
(iii) (A) A liquor industry member for purposes of this Subsection (4)(e)(iii) includes anindustry member for:
(I) wine;
(II) heavy beer; and
(III) on or after October 1, 2008, a flavored malt beverage.
(B) A liquor industry member may conduct a tasting of the industry member's liquorproducts:
(I) for the department, at the department's request; and
(II) for licensed industry representatives, but only at the department's centraladministrative warehouse office.
(C) The industry member may only use department or industry representative sampleswhen conducting any tasting of the industry member's products.
(iv) A beer industry member may conduct tastings of beer products for a licensed beerretailer either at:
(A) the industry member's premises; or
(B) a retail establishment.
(v) Except to the extent authorized by commission rule, an alcoholic beverage industry

member may not conduct tasting or sampling activities with:
(A) a retailer; or
(B) a member of the general public.
(f) A beer industry member may participate in beer retailer association activities to theextent authorized by 27 C.F.R. Sec. 6.100.
(g) (i) An industry member may contribute to charitable, civic, religious, fraternal,educational, or community activities.
(ii) A contribution described in Subsection (4)(g)(i) may not be given to influence aretailer in the selection of the alcoholic beverage products that may be sold at these activities andevents.
(iii) An industry member or retailer violates this section if:
(A) the industry member's contribution described in Subsection (4)(g)(i) influences,directly or indirectly, the retailer in the selection of alcoholic beverage products; and
(B) a competitor's alcoholic beverage products are excluded in whole or in part from saleat the activity or event.
(h) (i) An industry member may lease or furnish equipment listed in Subsection (4)(h)(ii)to a retailer if:
(A) the equipment is leased or furnished for a special event;
(B) a reasonable rental or service fee is charged for the equipment; and
(C) the period for which the equipment is leased or furnished does not exceed 30 days.
(ii) This Subsection (4)(h) applies to the following equipment:
(A) a picnic pump;
(B) a cold plate;
(C) a tub;
(D) a keg box;
(E) a refrigerated trailer;
(F) a refrigerated van; or
(G) a refrigerated draft system.
(i) (i) A liquor industry member for purposes of this Subsection (4)(i) includes anindustry member for:
(A) wine;
(B) heavy beer; or
(C) on or after October 1, 2008, a flavored malt beverage.
(ii) A liquor industry member may assist the department in:
(A) ordering, shipping, and delivering merchandise;
(B) new product notification;
(C) listing and delisting information;
(D) price quotations;
(E) product sales analysis;
(F) shelf management; and
(G) educational seminars.
(iii) (A) Subject to Subsection (4)(i)(iii)(B), a liquor industry member may, for thepurpose of acquiring new listings:
(I) solicit orders from the department; and
(II) submit to the department samples of their products under Subsection (4)(c) and price

lists.
(B) An industry member may not solicit either in person, by mail, or otherwise, any statestore personnel for the purpose or with the intent of furthering the sale of a particular brand orbrands of alcoholic beverage product as against another brand or brands.
(iv) (A) Any visitations to a state store or package agency by an industry member shall beconfined to the customer areas of the store unless otherwise approved.
(B) Calls on the state warehouse by industry members are to be confined to the officearea only unless otherwise approved.
(v) A beer industry member may assist licensed retailers in:
(A) ordering, shipping, and delivering beer merchandise;
(B) new product notification;
(C) listing and delisting information;
(D) price quotations;
(E) product sales analysis;
(F) shelf management; and
(G) educational seminars.
(vi) A beer industry member may, for the purpose of acquiring new listings:
(A) solicit orders from licensed retailers; and
(B) submit to licensed retailers samples of their beer products under Subsection (4)(c)and price lists.
(5) It is unlawful for any industry member, directly or indirectly or through an affiliate, toinduce any retailer to purchase any alcoholic beverages from the industry member or from thedepartment to the exclusion in whole or in part of any of those products sold or offered for saleby other persons by paying or crediting the retailer for any advertising, display, or distributionservice:
(a) as defined in and to the extent restricted by 27 C.F.R. Sections 6.51 through 6.56; and
(b) subject to the exceptions:
(i) for newspaper cuts listed in 27 C.F.R. Sec. 6.92; and
(ii) for advertising services listed in 27 C.F.R. Sec. 6.98.
(6) It is unlawful for any industry member, directly or indirectly or through an affiliate, to induce any retailer to purchase any alcoholic beverages from the industry member or from thedepartment to the exclusion in whole or in part of any of those products sold or offered for saleby other persons by guaranteeing any loan or the repayment of any financial obligation of theretailer.
(7) (a) It is unlawful for any industry member, directly or indirectly or through anaffiliate, to induce any retailer to purchase any beer from the industry member to the exclusion inwhole or in part of any beer products sold or offered for sale by other persons by extending to anyretailer credit for a period in excess of 15 days from the date of delivery to the date of full legaldischarge of the retailer through the payment of cash or its equivalent, from all indebtednessarising from the transaction, so long as that beer purchased or delivered during the first 15 daysof any month is paid for in cash or its equivalent on or before the 25th day of the same month,and beer purchased or delivered after the 15th day of any month is paid for in cash or itsequivalent on or before the 10th day of the next succeeding month.
(b) First party in-state checks are considered cash payment if the checks:
(i) are honored on presentment; and

(ii) received under the terms prescribed in Subsection (7)(a).
(c) An extension of credit for product purchased by an industry member to a retailerwhose account is in arrears does not constitute a violation of Subsection (7)(a) if the retailer paysin advance or on delivery an amount equal to or greater than the value of each order, regardlessof the manner in which the industry member applies the payment in its records.
(8) (a) It is unlawful for any industry member, directly or indirectly or through anaffiliate, to induce any retailer to purchase any alcoholic beverages from the industry member orfrom the department to the exclusion in whole or in part of any of those products sold or offeredfor sale by other persons by requiring:
(i) the department to take and dispose of a certain quota of any alcoholic products; or
(ii) a beer retailer to take and dispose of a certain quota of any beer products.
(b) (i) It is an unlawful means to induce to require:
(A) the department to purchase one product in order to purchase another; or
(B) a beer retailer to purchase one beer product in order to purchase another.
(ii) This Subsection (8)(b) includes:
(A) the requirement to take a minimum quantity of a product in standard packaging inorder to obtain the same product in some type of premium package such as:
(I) a distinctive decanter; or
(II) a wooden or tin box; or
(B) combination sales if one or more products may be purchased only in combinationwith other products and not individually.
(c) This Subsection (8) does not preclude the selling, at a special combination price, twoor more kinds or brands of products so long as the department or beer retailer:
(i) has the option of purchasing either product at the usual price; and
(ii) is not required to purchase any product the department or beer retailer does not want.
(d) An industry member may package and distribute alcoholic beverages in combinationwith other nonalcoholic items or products.
(e) The combination package shall be designed to be delivered intact to the consumer andthe additional cost incurred by the industry member shall be included in the cost to thedepartment or beer retailer.

Repealed by Chapter 276, 2010 General Session
Amended by Chapter 391, 2008 General Session


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State Codes and Statutes

Statutes > Utah > Title-32a > Chapter-12 > 32a-12-603-repealed-07-01-11

32A-12-603 (Repealed 07/01/11). Tied house -- Prohibitions.
(1) (a) It is unlawful for an industry member, directly or indirectly or through an affiliate,to induce any retailer to purchase any alcoholic beverages from the industry member or from thedepartment to the exclusion in whole or in part of any of those products sold or offered for saleby other persons by acquiring or holding any interest in any license with respect to the premisesof a retailer, except where the license is held by a retailer that is completely owned by theindustry member.
(b) Interest in any retail license includes any interest acquired by a corporate official,partner, employee, or other representative of the industry member.
(c) Any interest in a retail license acquired by a separate corporation in which theindustry member or the industry member's officials hold ownership or are otherwise affiliated isan interest in a retail license.
(d) Less than complete ownership of a retail business by an industry member constitutesan interest in a retail license within the meaning of Subsection (1)(a).
(2) (a) It is unlawful for any industry member, directly or indirectly or through anaffiliate, to induce any retailer to purchase any alcoholic beverages from the industry member orfrom the department to the exclusion in whole or in part of any of those products sold or offeredfor sale by other persons by acquiring any interest in real or personal property owned, occupied,or used by the retailer in the conduct of the retailer's business.
(b) For purposes of Subsection (2)(a):
(i) "interest" does not include complete ownership of a retail business by an industrymember;
(ii) interest in retail property includes any interest acquired by a corporate official,partner, employee, or other representative of the industry member;
(iii) any interest in a retail license acquired by a separate corporation in which theindustry member or its officials hold ownership or are otherwise affiliated is an interest in theretailer's property;
(iv) less than complete ownership of a retail business by an industry member constitutesan interest in retail property;
(v) the acquisition of a mortgage on a retailer's real or personal property by an industrymember constitutes an interest in the retailer's property; and
(vi) the renting of display space by an industry member at a retail establishmentconstitutes an interest in the retailer's property.
(3) (a) It is unlawful for any industry member, directly or indirectly or through anaffiliate, to induce any retailer to purchase any alcoholic beverages from the industry member orfrom the department to the exclusion in whole or in part of any of those products sold or offeredfor sale by other persons by furnishing, giving, renting, lending, or selling to the retailer anyequipment, fixtures, signs, supplies, money, services, or other thing of value, subject to theexceptions enumerated in Subsection (4).
(b) (i) For purposes of this Subsection (3), indirect inducement includes:
(A) furnishing things of value to a third party where the benefits resulting from the thingsof value flow to individual retailers; and
(B) making payments for advertising to a retailer association or a display company wherethe resulting benefits flow to individual retailers.
(ii) Notwithstanding Subsection (3)(b)(i), an indirect inducement does not arise if:

(A) the thing of value was furnished to a retailer by the third party without the knowledgeor intent of the industry member; or
(B) the industry member did not reasonably foresee that the thing of value would havebeen furnished to a retailer.
(iii) Anything that may lawfully be furnished, given, rented, lent, or sold by industrymembers to retailers under Subsection (4) may be furnished directly by a third party to a retailer.
(c) (i) A transaction in which equipment is sold to a retailer by an industry member,except as provided in Subsection (4), is the selling of equipment within the meaning ofSubsection (3)(a) regardless of how the equipment is sold.
(ii) The negotiation by an industry member of a special price to a retailer for equipmentfrom an equipment company is the furnishing of a thing of value within the meaning ofSubsection (3)(a).
(d) The furnishing of free warehousing by delaying delivery of alcoholic beveragesbeyond the time that payment for the product is received, or if a retailer is purchasing on credit,delaying final delivery of products beyond the close of the period of time for which credit islawfully extended, is the furnishing of a service or thing of value within the meaning ofSubsection (3)(a).
(e) Any financial, legal, administrative, or influential assistance given a retailer by anindustry member in the retailer's acquisition of the retailer's license is the furnishing of a serviceor thing of value within the meaning of Subsection (3)(a).
(4) (a) Notwithstanding Subsection (3), things of value may be furnished by industrymembers to retailers under the conditions and within the limitations prescribed in:
(i) this Subsection (4); and
(ii) the applicable federal laws cited in this Subsection (4).
(b) (i) The following may be furnished by an industry member:
(A) a product display as provided in 27 C.F.R. Sec. 6.83;
(B) point of sale advertising materials and consumer advertising specialties as providedin 27 C.F.R. Sec. 6.84;
(C) things of value to a temporary retailer to the extent allowed in 27 C.F.R. Sec. 6.85;
(D) equipment and supplies as provided in 27 C.F.R. Sec. 6.88;
(E) combination packaging as provided in 27 C.F.R. Sec. 6.93;
(F) educational seminars as provided in 27 C.F.R. Sec. 6.94;
(G) consumer promotions as provided in 27 C.F.R. Sec. 6.96;
(H) advertising service as provided in 27 C.F.R. Sec. 6.98;
(I) stocking, rotation, and pricing service as provided in 27 C.F.R. Sec. 6.99;
(J) merchandise as provided in 27 C.F.R. Sec. 6.101; and
(K) outside signs as provided in 27 C.F.R. Sec. 6.102.
(ii) The following exceptions provided in federal law are not adopted:
(A) the exception for samples provided in 27 C.F.R. Sec. 6.91;
(B) the exception for consumer tasting or sampling at retail establishments provided in27 C.F.R. Sec. 6.95; and
(C) the exception for participation in retailer association activities provided in 27 C.F.R.Sec. 6.100.
(iii) To the extent required by 27 C.F.R. Sec. 6.81(b) an industry member shall keep andmaintain a record:

(A) of all items furnished to a retailer;
(B) on premises of the industry member; and
(C) for a three-year period.
(c) A sample of liquor may be provided to the department under the following conditions:
(i) This Subsection (4)(c) includes a sample of:
(A) wine;
(B) heavy beer; or
(C) on or after October 1, 2008, a flavored malt beverage.
(ii) With the department's permission, an industry member may submit departmentsamples to the department for product testing, analysis, and sampling.
(iii) No more than two department samples of a particular type, vintage, and productionlot of a particular branded product may be submitted to the department for department testing,analysis, and sampling within a consecutive 120-day period.
(iv) (A) A sample of liquor may not exceed 1 liter.
(B) Notwithstanding Subsection (4)(c)(iv)(A), a sample of the following may not exceed1.5 liters unless that exact product is only commercially packaged in a larger size, not to exceed 5liters:
(I) wine;
(II) heavy beer; or
(III) on or after October 1, 2008, a flavored malt beverage.
(v) (A) A department sample submitted to the department:
(I) shall be shipped prepaid by the industry member by common carrier; and
(II) may not be shipped by United States mail directly to the department's centraladministrative warehouse office.
(B) A department sample may not be shipped to any other location within the state.
(vi) A department sample submitted to the department shall be accompanied by a letterfrom the industry member:
(A) clearly identifying the product as a "department sample"; and
(B) clearly stating the FOB case price of the product.
(vii) (A) The department may transfer listed items from current stock for use ascomparison control samples or to verify product spoilage as considered appropriate.
(B) Each sample transferred under Subsection (4)(c)(vi)(A) shall be charged back to therespective industry member.
(viii) The department shall:
(A) account for, label, and record all department samples received or transferred;
(B) account for the department sample's disposition; and
(C) maintain a record:
(I) of the samples and their disposition; and
(II) for a two-year period.
(ix) The department shall affix to each bottle or container a label clearly identifying theproduct as a "department sample".
(x) A department sample delivered to the department or transferred from thedepartment's current stock shall be disposed of at the discretion of the department in one of thefollowing ways:
(A) tested and analyzed with the remaining contents destroyed under controlled and

audited conditions established by the department;
(B) entire contents destroyed under controlled and audited conditions established by thedepartment; or
(C) added to the inventory of the department for sale to the public.
(xi) Persons other than authorized department officials may not be in possession ofdepartment samples except as otherwise provided.
(d) Samples of beer may be provided by a beer industry member to a retailer under theconditions listed in this Subsection (4)(d).
(i) Samples of beer may be provided by an industry member only to a retailer who hasnot purchased the brand of beer from that industry member within the last 12 months.
(ii) For each retailer, the industry member may give not more than three gallons of anybrand of beer, except that if a particular product is not available in a size within the quantitylimitation an industry member may furnish the next largest size.
(e) Educational seminars may involve an industry member under the conditions listed inthis Subsection (4)(e).
(i) An industry member may provide or participate in educational seminars:
(A) involving:
(I) the department;
(II) retailers;
(III) holders of educational or scientific special use permits;
(IV) other industry members; or
(V) employees of the persons listed in Subsections (4)(e)(i)(A)(I) through (IV); and
(B) regarding such topics as:
(I) merchandising and product knowledge;
(II) use of equipment; and
(III) tours of alcoholic beverage manufacturing facilities.
(ii) An industry member may not pay a department employee's, retailer's, or permittee'sexpenses or compensate them for attending a seminar or tour described in Subsection (4)(e)(i).
(iii) (A) A liquor industry member for purposes of this Subsection (4)(e)(iii) includes anindustry member for:
(I) wine;
(II) heavy beer; and
(III) on or after October 1, 2008, a flavored malt beverage.
(B) A liquor industry member may conduct a tasting of the industry member's liquorproducts:
(I) for the department, at the department's request; and
(II) for licensed industry representatives, but only at the department's centraladministrative warehouse office.
(C) The industry member may only use department or industry representative sampleswhen conducting any tasting of the industry member's products.
(iv) A beer industry member may conduct tastings of beer products for a licensed beerretailer either at:
(A) the industry member's premises; or
(B) a retail establishment.
(v) Except to the extent authorized by commission rule, an alcoholic beverage industry

member may not conduct tasting or sampling activities with:
(A) a retailer; or
(B) a member of the general public.
(f) A beer industry member may participate in beer retailer association activities to theextent authorized by 27 C.F.R. Sec. 6.100.
(g) (i) An industry member may contribute to charitable, civic, religious, fraternal,educational, or community activities.
(ii) A contribution described in Subsection (4)(g)(i) may not be given to influence aretailer in the selection of the alcoholic beverage products that may be sold at these activities andevents.
(iii) An industry member or retailer violates this section if:
(A) the industry member's contribution described in Subsection (4)(g)(i) influences,directly or indirectly, the retailer in the selection of alcoholic beverage products; and
(B) a competitor's alcoholic beverage products are excluded in whole or in part from saleat the activity or event.
(h) (i) An industry member may lease or furnish equipment listed in Subsection (4)(h)(ii)to a retailer if:
(A) the equipment is leased or furnished for a special event;
(B) a reasonable rental or service fee is charged for the equipment; and
(C) the period for which the equipment is leased or furnished does not exceed 30 days.
(ii) This Subsection (4)(h) applies to the following equipment:
(A) a picnic pump;
(B) a cold plate;
(C) a tub;
(D) a keg box;
(E) a refrigerated trailer;
(F) a refrigerated van; or
(G) a refrigerated draft system.
(i) (i) A liquor industry member for purposes of this Subsection (4)(i) includes anindustry member for:
(A) wine;
(B) heavy beer; or
(C) on or after October 1, 2008, a flavored malt beverage.
(ii) A liquor industry member may assist the department in:
(A) ordering, shipping, and delivering merchandise;
(B) new product notification;
(C) listing and delisting information;
(D) price quotations;
(E) product sales analysis;
(F) shelf management; and
(G) educational seminars.
(iii) (A) Subject to Subsection (4)(i)(iii)(B), a liquor industry member may, for thepurpose of acquiring new listings:
(I) solicit orders from the department; and
(II) submit to the department samples of their products under Subsection (4)(c) and price

lists.
(B) An industry member may not solicit either in person, by mail, or otherwise, any statestore personnel for the purpose or with the intent of furthering the sale of a particular brand orbrands of alcoholic beverage product as against another brand or brands.
(iv) (A) Any visitations to a state store or package agency by an industry member shall beconfined to the customer areas of the store unless otherwise approved.
(B) Calls on the state warehouse by industry members are to be confined to the officearea only unless otherwise approved.
(v) A beer industry member may assist licensed retailers in:
(A) ordering, shipping, and delivering beer merchandise;
(B) new product notification;
(C) listing and delisting information;
(D) price quotations;
(E) product sales analysis;
(F) shelf management; and
(G) educational seminars.
(vi) A beer industry member may, for the purpose of acquiring new listings:
(A) solicit orders from licensed retailers; and
(B) submit to licensed retailers samples of their beer products under Subsection (4)(c)and price lists.
(5) It is unlawful for any industry member, directly or indirectly or through an affiliate, toinduce any retailer to purchase any alcoholic beverages from the industry member or from thedepartment to the exclusion in whole or in part of any of those products sold or offered for saleby other persons by paying or crediting the retailer for any advertising, display, or distributionservice:
(a) as defined in and to the extent restricted by 27 C.F.R. Sections 6.51 through 6.56; and
(b) subject to the exceptions:
(i) for newspaper cuts listed in 27 C.F.R. Sec. 6.92; and
(ii) for advertising services listed in 27 C.F.R. Sec. 6.98.
(6) It is unlawful for any industry member, directly or indirectly or through an affiliate, to induce any retailer to purchase any alcoholic beverages from the industry member or from thedepartment to the exclusion in whole or in part of any of those products sold or offered for saleby other persons by guaranteeing any loan or the repayment of any financial obligation of theretailer.
(7) (a) It is unlawful for any industry member, directly or indirectly or through anaffiliate, to induce any retailer to purchase any beer from the industry member to the exclusion inwhole or in part of any beer products sold or offered for sale by other persons by extending to anyretailer credit for a period in excess of 15 days from the date of delivery to the date of full legaldischarge of the retailer through the payment of cash or its equivalent, from all indebtednessarising from the transaction, so long as that beer purchased or delivered during the first 15 daysof any month is paid for in cash or its equivalent on or before the 25th day of the same month,and beer purchased or delivered after the 15th day of any month is paid for in cash or itsequivalent on or before the 10th day of the next succeeding month.
(b) First party in-state checks are considered cash payment if the checks:
(i) are honored on presentment; and

(ii) received under the terms prescribed in Subsection (7)(a).
(c) An extension of credit for product purchased by an industry member to a retailerwhose account is in arrears does not constitute a violation of Subsection (7)(a) if the retailer paysin advance or on delivery an amount equal to or greater than the value of each order, regardlessof the manner in which the industry member applies the payment in its records.
(8) (a) It is unlawful for any industry member, directly or indirectly or through anaffiliate, to induce any retailer to purchase any alcoholic beverages from the industry member orfrom the department to the exclusion in whole or in part of any of those products sold or offeredfor sale by other persons by requiring:
(i) the department to take and dispose of a certain quota of any alcoholic products; or
(ii) a beer retailer to take and dispose of a certain quota of any beer products.
(b) (i) It is an unlawful means to induce to require:
(A) the department to purchase one product in order to purchase another; or
(B) a beer retailer to purchase one beer product in order to purchase another.
(ii) This Subsection (8)(b) includes:
(A) the requirement to take a minimum quantity of a product in standard packaging inorder to obtain the same product in some type of premium package such as:
(I) a distinctive decanter; or
(II) a wooden or tin box; or
(B) combination sales if one or more products may be purchased only in combinationwith other products and not individually.
(c) This Subsection (8) does not preclude the selling, at a special combination price, twoor more kinds or brands of products so long as the department or beer retailer:
(i) has the option of purchasing either product at the usual price; and
(ii) is not required to purchase any product the department or beer retailer does not want.
(d) An industry member may package and distribute alcoholic beverages in combinationwith other nonalcoholic items or products.
(e) The combination package shall be designed to be delivered intact to the consumer andthe additional cost incurred by the industry member shall be included in the cost to thedepartment or beer retailer.

Repealed by Chapter 276, 2010 General Session
Amended by Chapter 391, 2008 General Session


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