32A-8-505 (Repealed 07/01/11) - Operational restrictions.
32A-8-505 (Repealed 07/01/11). Operational restrictions.
(1) (a) A local industry representative licensee, employee or agent of the licensee, oremployee or agent of a manufacturer, supplier, or importer who is conducting business in thestate, shall abide by the conditions and requirements set forth in this section.
(b) If a person listed in Subsection (1)(a) knowingly violates or fails to comply with theconditions and requirements set forth in this section:
(i) the violation or failure to comply may result in:
(A) a suspension or revocation of the license; or
(B) other disciplinary action taken against individual employees or agents of the licensee;and
(ii) the commission may order the removal of the manufacturer's, supplier's, or importer'sproducts from the department's sales list and a suspension of the department's purchase of thoseproducts for a period determined by the commission if the manufacturer, supplier, or importer:
(A) directly committed the violation; or
(B) solicited, requested, commanded, encouraged, or intentionally aided another toengage in the violation.
(2) A local industry representative licensee, employee or agent of the licensee, oremployee or agent of a manufacturer, supplier, or importer who is conducting business in thestate:
(a) only to the extent authorized by Chapter 12, Criminal Offenses, may:
(i) assist the department in:
(A) ordering, shipping, and delivering merchandise;
(B) providing new product notification;
(C) obtaining listing and delisting information;
(D) receiving price quotations;
(E) providing product sales analysis;
(F) conducting shelf management; and
(G) conducting educational seminars; and
(ii) for the purpose of acquiring new listings:
(A) solicit orders from the department; and
(B) submit to the department price lists and samples of the products of the manufacturer,supplier, or importer;
(b) may not sell any liquor within the state except to the department and militaryinstallations including:
(i) wine;
(ii) heavy beer; or
(iii) on or after October 1, 2008, a flavored malt beverage;
(c) may not ship or transport, or cause to be shipped or transported, into this state or fromone place to another within this state any liquor including:
(i) wine;
(ii) heavy beer; or
(iii) on or after October 1, 2008, a flavored malt beverage;
(d) may not sell or furnish any liquor to any person within this state other than to thedepartment and military installations including:
(i) wine;
(ii) heavy beer; or
(iii) on or after October 1, 2008, a flavored malt beverage;
(e) except as otherwise provided, may not advertise products it represents in violation ofthis title or any other federal or state law;
(f) shall comply with all trade practices provided in Chapter 12, Criminal Offenses; and
(g) may only provide samples of products of the manufacturer, supplier, or importer fortasting and sampling purposes as provided in Section 32A-12-603 by the department.
(3) (a) A local industry representative licensee shall maintain on file with the departmenta current accounts list of the names and addresses of all manufacturers, suppliers, and importersthe licensee represents.
(b) The licensee shall notify the department in writing of any changes to the accountslisted within 14 days from the date the licensee either acquired or lost the account of a particularmanufacturer, supplier, or importer.
(4) A local industry representative licensee shall maintain accounting and other recordsand documents as the department may require for at least three years.
(5) A local industry representative licensee or person acting for the licensee, whoknowingly forges, falsifies, alters, cancels, destroys, conceals, or removes the entries in any ofthe books of account or other documents of the licensee required to be made, maintained, orpreserved by this title or the rules of the commission for the purpose of deceiving thecommission or the department, or any of their officials or employees, is subject to:
(a) the immediate suspension or revocation of the industry representative's license; and
(b) possible criminal prosecution under Chapter 12, Criminal Offenses.
(6) A local industry representative licensee may, for the purpose of becoming educated asto the quality and characteristics of a liquor, wine, or heavy beer product which the licenseerepresents, taste and analyze industry representative samples under the conditions listed in thisSubsection (6).
(a) The licensee may not receive more than two industry representative samples of aparticular type, vintage, and production lot of a particular branded product within a consecutive120-day period.
(b) (i) A sample of liquor may not exceed 1 liter.
(ii) Notwithstanding Subsection (6)(b)(i), a sample of the following may not exceed 1.5liters unless that exact product is only commercially packaged in a larger size, not to exceed 5liters:
(A) wine;
(B) heavy beer; or
(C) on or after October 1, 2008, a flavored malt beverage.
(c) An industry representative sample may only be of a product not presently listed on thedepartment's sales list.
(d) (i) An industry representative sample shall be shipped:
(A) prepaid by the manufacturer, supplier, or importer;
(B) by common carrier and not via United States mail; and
(C) directly to the department's central administrative warehouse office.
(ii) An industry representative sample may not be shipped to any other location within thestate.
(e) An industry representative sample shall be accompanied by a letter from the
manufacturer, supplier, or importer:
(i) clearly identifying the product as an "industry representative sample"; and
(ii) clearly stating:
(A) the FOB case price of the product; and
(B) the name of the local industry representative for who it is intended.
(f) The department shall assess a reasonable handling, labeling, and storage fee for eachindustry representative sample received.
(g) The department shall affix to a bottle or container a label clearly identifying theproduct as an "industry representative sample."
(h) The department shall:
(i) account for and record each industry representative sample received;
(ii) account for the sample's disposition; and
(iii) maintain a record of the sample and its disposition for a two-year period.
(i) An industry representative sample may not leave the premises of the department'scentral administrative warehouse office.
(j) A licensed industry representative and the industry representative's employees andagents may, at regularly scheduled days and times established by the department, taste andanalyze one or more industry representative samples on the premises of the department's centraladministrative warehouse office.
(k) Any unused contents of an opened product remaining after the product is sampledshall be destroyed by the department under controlled and audited conditions established by thedepartment.
(l) An industry representative sample that is not tasted within 30 days of receipt by thedepartment shall be disposed of at the discretion of the department in one of the following ways:
(i) contents destroyed under controlled and audited conditions established by thedepartment; or
(ii) added to the inventory of the department for sale to the public.
(7) An employee or agent of a local industry representative licensee may not be:
(a) the holder of any retail license issued under this title that sells:
(i) spirituous liquor;
(ii) wine;
(iii) heavy beer; or
(iv) on or after October 1, 2008, a flavored malt beverage;
(b) an employee or agent of any retail licensee issued under this title that sells:
(i) spirituous liquor;
(ii) wine;
(iii) heavy beer; or
(iv) on or after October 1, 2008, a flavored malt beverage; or
(c) a minor.
(8) (a) A local representative licensee may not sell, transfer, assign, exchange, barter,give, or attempt in any way to dispose of the license to any other person, whether for monetarygain or not.
(b) A local industry representative license has no monetary value for the purpose of anytype of disposition.
Repealed by Chapter 276, 2010 General Session
Amended by Chapter 391, 2008 General Session