Vermont Statutes Title 7 Sec. 203
Terms Used In Vermont Statutes Title 7 Sec. 203
- Alcoholic beverages: means malt beverages, vinous beverages, spirits, ready-to-drink spirits beverages, and fortified wines. See
- Certificate of approval: means a license granted by the Board of Liquor and Lottery to a manufacturer or distributor of malt beverages, vinous beverages, or ready-to-drink spirits beverages that is not licensed under the provisions of this title that permits the licensee to sell those beverages to holders of a packager's or wholesale dealer's license. See
- Division: means the Division of Liquor Control in the Department of Liquor and Lottery. See
- Malt beverages: means all fermented beverages of any name or description manufactured for sale from malt, wholly or in part, or from any malt substitute, known as, among other things, beer, ale, or lager, containing not less than one percent nor more than 16 percent alcohol by volume at 60 degrees Fahrenheit. See
- Second-class license: means a license permitting the licensee to export and to sell malt beverages, vinous beverages, or ready-to-drink spirits beverages to the public for consumption off the premises for which the license is granted. See
- State: when applied to the different parts of the United States may apply to the District of Columbia and any territory and the Commonwealth of Puerto Rico. See
§ 203. Restrictions; financial interests; employees
(a)(1) Except as provided in section 271 of this title, a packager, manufacturer, or rectifier licensed in Vermont or in another state; a certificate of approval holder; or a wholesale dealer shall not have any financial interest in the business of a first-, second-, or third-class licensee, and a first-, second-, or third-class licensee shall not have any financial interest in the business of a packager, manufacturer, or rectifier licensed in Vermont or in another state; a certificate of approval holder; or a wholesale dealer.
(2) Notwithstanding subdivision (1) of this subsection and except as otherwise provided in section 271 of this title, a manufacturer of malt beverages may have a financial interest in the business of a first- or second-class license, and a first- or second-class licensee may have a financial interest in the business of a manufacturer of malt beverages, provided the first- or second-class licensee does not purchase, possess, or sell the malt beverages produced by a manufacturer with which there is any financial interest. Any manufacturer of malt beverages that has a financial interest in a first- or second-class licensee and any first- or second-class licensee that has a financial interest in a manufacturer of malt beverages, as permitted under this subdivision, shall provide to the Division of Liquor Control and the applicable wholesale dealer written notification of that financial interest and the licensees involved. A wholesale dealer shall not be in violation of this section for delivering malt beverages to a first- or second-class licensee that is prohibited from purchasing, possessing, or selling those malt beverages under this section.
(b) An individual who is an employee of a wholesale dealer that does not hold a solicitor’s license may also be employed by a first- or second-class licensee on a paid or voluntary basis, provided that the employee does not exercise any control over, or participate in, the management of the first- or second-class licensee’s business or business decisions and that neither employment relationship results in the exclusion of any competitor wholesale dealer or any brand of alcoholic beverages of a competitor wholesale dealer. (Amended 1979, No. 103 (Adj. Sess.), § 2, eff. April 2, 1980; 2001, No. 143 (Adj. Sess.), § 10, eff. June 21, 2002; 2003, No. 24, § 1, eff. May 14, 2003; 2003, No. 27, § 1, eff. May 17, 2003; 2007, No. 94 (Adj. Sess.), § 1; 2013, No. 64, § 4; 2013, No. 72, § 25; 2017, No. 83, § 22; 2018, No. 1 (Sp. Sess.), § 26.)