US Laws, Codes, Statutes & Cases

     32A-8-505.   Operational restrictions.
     (1) (a) A local industry representative licensee, employee or agent of the licensee, or employee or agent of a manufacturer, supplier, or importer who is conducting business in the state, shall abide by the conditions and requirements set forth in this section.
     (b) If any person listed in Subsection (1)(a) knowingly violates or fails to comply with the conditions and requirements set forth in this section:
     (i) such 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's products from the department's sales list and a suspension of the department's purchase of those products 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 to engage in the violation.
     (2) A local industry representative licensee, employee or agent of the licensee, or employee or agent of a manufacturer, supplier, or importer who is conducting business in the state:
     (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, wine, or heavy beer within the state except to the department and military installations;
     (c) may not ship or transport, or cause to be shipped or transported, into this state or from one place to another within this state any liquor, wine, or heavy beer;
     (d) may not sell or furnish any liquor, wine, or heavy beer to any person within this state other than to the department and military installations;
     (e) except as otherwise provided, may not advertise products it represents in violation of this 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 for tasting 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 department a current accounts list of the names and addresses of all manufacturers, suppliers, and importers

the licensee represents.
     (b) The licensee shall notify the department in writing of any changes to the accounts listed within 14 days from the date the licensee either acquired or lost the account of a particular manufacturer, supplier, or importer.
     (4) A local industry representative licensee shall maintain accounting and other records and documents as the department may require for at least three years.
     (5) Any local industry representative licensee or person acting for the licensee, who knowingly forges, falsifies, alters, cancels, destroys, conceals, or removes the entries in any of the books of account or other documents of the licensee required to be made, maintained, or preserved by this title or the rules of the commission for the purpose of deceiving the commission 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 as to the quality and characteristics of a liquor, wine, or heavy beer product which the licensee represents, taste and analyze industry representative samples under the conditions listed in this Subsection (6).
     (a) The licensee may not receive more than two industry representative samples of a particular type, vintage, and production lot of a particular branded product within a consecutive 120-day period.
     (b) (i) Each sample of liquor may not exceed 1 liter.
     (ii) Each sample of wine or heavy beer may not exceed 1.5 liters unless that exact product is only commercially packaged in a larger size, not to exceed 5 liters.
     (c) Each industry representative sample may only be of a product not presently listed on the department's sales list.
     (d) (i) Industry representative samples 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) These samples may not be shipped to any other location within the state.
     (e) Industry representative samples 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 each industry representative sample received.
     (g) The department shall affix to each bottle or container a label clearly identifying the product 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) Industry representative samples may not leave the premises of the department's central

administrative warehouse office.
     (j) Licensed industry representatives and their employees and agents may, at regularly scheduled days and times established by the department, taste and analyze industry representative samples on the premises of the department's central administrative warehouse office.
     (k) Any unused contents of an opened product remaining after the product has been sampled shall be destroyed by the department under controlled and audited conditions established by the department.
     (l) Industry representative samples that are not tasted within 30 days of receipt by the department 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 the department; 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 spirituous liquor, wine, or heavy beer; or
     (b) an employee or agent of any retail licensee issued under this title that sells spirituous liquor, wine, or heavy beer.
     (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 monetary gain or not.
     (b) A local industry representative license has no monetary value for the purpose of any type of disposition.

Amended by Chapter 268, 2004 General Session