RELATES TO:
KRS
243.0307,
243.036,
243.260,
244.240,
244.590
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
241.060(1) authorizes the
board to promulgate administrative regulations regarding matters over which the
board has jurisdiction.
KRS
244.240 and
244.590
prohibit manufacturers, distributors, and wholesalers from making any gift or
rendering any kind of service to any retail licensee that may tend to influence
the retailer to purchase the manufacturers', distributors', or wholesalers'
product to the exclusion of a competitor's product. This administrative
regulation permits manufacturers, distributors, and wholesalers to participate
in certain events where samples are provided to consumers without violating
KRS
244.240 and
KRS
244.590.
Section
1. Charity and Non-Profit Events.
(1) Manufacturers, distributors, and
wholesalers may participate in charity or non-profit events at which alcoholic
beverages are served, under the following conditions:
(a) The event is held on licensed
premises;
(b) The charity or
non-profit organization obtains the alcoholic beverages to be served at the
event by:
1. Purchase under a special
temporary drink license or special temporary alcoholic beverage auction
license;
2. Purchase from a retail
licensee where the event is held; or
3. Donations under a special temporary
alcoholic beverage auction license; and
(c) The participation of manufacturers,
distributors, and wholesalers is limited to addressing the attendees,
distributing literature, and pouring and serving alcoholic beverage products of
the manufacturer, distributor, and wholesaler.
(2) Manufacturers, distributors, and
wholesalers participating in charity and non-profit events shall be jointly and
severally liable with licensed charities, non-profits, or retailers for
violations of the alcoholic beverage control laws occurring during the
event.
Section 2.
Sampling License Events.
(1) Manufacturers or
wholesalers of distilled spirits or wine may participate in retailer sampling
licensed events under the following conditions:
(a) The events occur at retail licensed
premises where sampling licenses authorized by
KRS
243.0307 are held;
(b) Manufacturers and wholesalers may provide
their distilled spirits or wine products for sampling license events without
cost to retailers holding sampling licenses in an amount not to exceed the
wholesale cost of $500 per retail licensee per annum;
(c) Retail licensees holding sampling
licenses shall purchase all distilled spirits or wine for events from licensed
wholesalers if not provided under the conditions established in subsection
(1)(b) of this section; and
(d) The
participation of manufacturers and wholesalers in sampling license events is
limited to addressing the customers, distributing literature, and pouring and
serving samples of their distilled spirits or wine products.
(2) Participating manufacturers or
wholesalers and retail licensees holding sampling licenses shall be jointly and
severally liable for violations of alcoholic beverage control law occurring
during sampling license events.
