§ 37A-3-110 — Licensed beer distributor - Sales and distribution

restrictions. A. A licensed distributor designated as the licensed distributor for a beer brand within a designated sales territory shall present that beer brand for sale to all on-premise licensees on the same price basis and without discrimination and to all off- premise licensees on the same price basis within a particular county and without discrimination. A licensed distributor shall not sell, supply or deliver, either directly or indirectly through a third party, a beer brand to a licensed retailer outside of the designated sales territory of the designated distributor nor to any person the licensed distributor has reason to believe will sell or supply any quantity of the beer brand to any retail location outside of the designated sales territory of the designated distributor. B. All beer shall only be transported by a marked conveyance owned or leased by the licensed distributor and operated by the licensed distributor or an employee of the distributor for the products of a licensed brewer or cider manufacturer within the designated sales territory to the address and location of a licensed retailer within that designated sales territory. C. Any beer sold by the licensed distributor shall not be delivered to, received by or stored at any place other than the address and location of the licensed retailer for which state and local retailer licenses or permits have been issued, except as otherwise provided by law. D. With the approval of the licensed brewer or cider manufacturer, a licensed distributor may sell the designated brands to a licensed retailer located in a designated sales territory of another licensed distributor if that licensed distributor is temporarily unable for any reason to provide the designated brands of the licensed brewer or cider manufacturer within its designated sales territory. E. All beer purchased by a licensed distributor for resale in this state shall physically come into the possession of the licensed distributor and be unloaded in and distributed from the licensed warehouses of the licensed distributor located in this state prior to being resold in this state. F. For temporary events, beer distributors shall be permitted to park full trailers and Waymatics in the supplier area of the events for the purposes of pulling and selling product to special event, public event, caterer, on-premises beer and wine and mixed beverage licensees. A temporary event shall not exceed fourteen (14) consecutive calendar days in duration. The trailer/Waymatic shall be deemed an extension of the licensed premises of the beer distributor and no separate storage license shall be necessary. The following shall apply to beer and cider transactions during temporary events: 1. Beer distributors shall be permitted to deliver the beer or cider from the trailer to the selling locations of the licensee(s) within the event; 2. Beer distributors may not sell directly to consumers; 3. Each delivery of beer or cider shall be accompanied by an invoice giving the date of purchase and the quantities delivered; 4. At least every fourth day of the event, the distributor shall generate and deliver a summary invoice. Within three days after the end of the event, the beer distributor shall reconcile the invoices with the deliveries made during the event and generate and deliver a final invoice to be paid immediately upon delivery; 5. For temporary events lasting less than five (5) days and for university game days, the beer distributor's invoice shall be generated and submitted to the purchasing licensee the first business day following the event. The licensee shall pay the invoice upon receipt; and 6. For all temporary events, the beer distributor has the option of requiring the purchasing licensee to deliver a check for the full amount of the product contained within the trailer(s) at the beginning of the event to be held by the beer distributor pending completion of the event and reconciliation and payment. Such a requirement shall not be deemed a consignment sale, a credit transaction, or a violation of any rules or law. The provisions of this subsection shall apply to small brewer self-distributors and brewpub self-distributors.

Legislative History

Added by Laws 2016, c. 366, § 80, eff. Oct. 1, 2018. Amended by Laws 2017, c. 364, § 15, eff. Oct. 1, 2018; Laws 2019, c. 322, § 15, emerg. eff. May 7, 2019. NOTE: Laws 2016, c. 366, was conditionally effective upon passage of State Question No. 792, Legislative Referendum No. 370, which was adopted at election held on Nov. 8, 2016.