23-1032. FINANCIAL INTEREST IN DEALER OR WHOLESALER PROHIBITED. (1) It shall be unlawful for any brewer, directly or indirectly, or through an affiliate, subsidiary, officer, director, agent or employee to have any financial interest in any licensed wholesaler’s or dealer’s business, or to own or control any real property upon which a licensed dealer or wholesaler conducts business, except:
(a) For a brewer licensed within the state of Idaho who produces fewer than thirty thousand (30,000) barrels of beer annually and is duly licensed as a wholesaler as provided in section 23-1003(f), Idaho Code;
(b) If a licensed dealer or wholesaler has been granted distribution rights by a brewer for a brand in a designated territory and is unable to service the designated sales territory for reasons that are not the result of an action by the brewer, or in the event of a termination, cancellation, discontinuance or failure to renew a distribution agreement between a brewer and a licensed dealer or wholesaler for reasons set forth in section 23-1105, Idaho Code, such as insolvency, loss of licensure or fraud and in accordance with the provisions of chapter 11, title 23, Idaho Code, a brewer shall be allowed to appoint a temporary licensed dealer or wholesaler to service the brewer’s brands in the designated sales territory and, for a period not to exceed five (5) years, to have any financial interest in the temporary licensed dealer or wholesaler; or
(c) If a licensed dealer or wholesaler is voluntarily selling its distribution rights, a brewer whose brand distribution rights are being transferred may have any financial interest in the purchasing distributor for a period not to exceed five (5) years to assist in financing the purchase.
(2) It shall be unlawful for any licensed wholesaler or dealer, directly or indirectly, or through an affiliate, subsidiary, officer, director, agent or employee to have any financial interest in a licensed brewer’s business, or to own or control any real property upon which a licensed brewer conducts business. This section shall not apply to a noncontrolling de minimis interest in stock held in a publicly traded company including mutual funds.
History:
[23-1032, added 2014, ch. 244, sec. 1, p. 613.]
Structure Idaho Code
Title 23 - ALCOHOLIC BEVERAGES
Section 23-1001 - DEFINITIONS.
Section 23-1002 - ALCOHOLIC CONTENT.
Section 23-1003 - BREWERS’, DEALERS’ AND WHOLESALERS’ LICENSES.
Section 23-1004 - DEALERS’ LICENSE FEE.
Section 23-1005 - QUALIFICATIONS OF LICENSEES.
Section 23-1005A - TRANSFER OF LICENSE — FEE — APPLICATION FOR APPROVAL.
Section 23-1006 - RECORDS AND RETURNS OF LICENSEES — INVESTIGATIONS AND EXAMINATIONS.
Section 23-1008 - TAX — DISTRIBUTION — RULES — REPORTS.
Section 23-1009 - RETAILERS’ LOCAL LICENSES.
Section 23-1011 - ISSUANCE OF LICENSES.
Section 23-1011A - OFFICERS MAY EXAMINE PREMISES.
Section 23-1011B - BARS OR TAVERNS NOT ALLOWED NEAR CHURCHES OR SCHOOLS — EXCEPTIONS.
Section 23-1012 - HOURS OF SALE.
Section 23-1013 - RESTRICTIONS CONCERNING AGE.
Section 23-1014 - LICENSE FEES.
Section 23-1015 - COUNTY RETAILERS’ LICENSE, WHEN REQUIRED, PROCEDURE.
Section 23-1016 - MUNICIPAL LICENSE ALSO REQUIRED — PROCEDURE.
Section 23-1017 - INTENTION OF PRECEDING SECTION.
Section 23-1018 - SALE OF KEG BEER — PENALTIES.
Section 23-1022 - SEPARABILITY.
Section 23-1023 - BEER — AUTHORIZATION TO DELIVER.
Section 23-1024 - FALSE REPRESENTATION AS BEING TWENTY-ONE OR MORE YEARS OF AGE A MISDEMEANOR.
Section 23-1025 - LICENSE AND TRANSFER FEES — ALCOHOL BEVERAGE CONTROL FUND.
Section 23-1027 - CERTIFICATE OF APPROVAL REQUIRED OF MANUFACTURER.
Section 23-1028 - WAREHOUSE AND RECORDS OF WHOLESALERS AND DEALERS.
Section 23-1029 - POSTING OF PRICES.
Section 23-1030 - SIZE OF CONTAINERS.
Section 23-1031 - EXTENSION OF CREDIT.
Section 23-1032 - FINANCIAL INTEREST IN DEALER OR WHOLESALER PROHIBITED.
Section 23-1033 - FINANCIAL INTEREST IN OR AID TO RETAILERS PROHIBITED — CERTAIN AID PERMITTED.
Section 23-1034 - SANITATION RULES FOR RETAILERS.
Section 23-1035 - RETAILER’S SIGNS.
Section 23-1036 - TAP MARKERS.
Section 23-1037A - LICENSES — SUSPENSION OR REVOCATION FOR VIOLATION OF OBSCENITY LAWS.
Section 23-1038 - SUSPENSION, REVOCATION, AND REFUSAL TO RENEW LICENSES.
Section 23-1042 - PROCEDURE FOR OTHER LICENSING AUTHORITIES.
Section 23-1043 - NOTICE OF REVOCATION OR SUSPENSION TO OTHER LICENSING AUTHORITIES.
Section 23-1044 - PROCEDURE ON REFUSAL TO GRANT LICENSE.
Section 23-1046 - SEPARABILITY.
Section 23-1047 - PAYMENT OF TAXES ON BEER.
Section 23-1048 - LIABILITY FOR PAYMENT OF TAXES ON BEER.
Section 23-1049 - SECURITY FOR TAX.
Section 23-1050A - COLLECTION AND ENFORCEMENT.
Section 23-1051 - REGULATIONS.
Section 23-1052 - LICENSE REVOCATION OR SUSPENSION FOR FAILURE TO PAY OR REPORT TAX.
Section 23-1053 - AUDITS OF RECORDS OF LICENSEE.
Section 23-1054 - REFUND OF TAXES.
Section 23-1055 - UNLAWFUL SALE, PURCHASES AND ACTS.
Section 23-1056 - USE OF ALTERNATIVE METHOD — TIME WHEN AUTHORIZED.