3 Alaska Admin. Code § 305.515

Current through September 25, 2024

Section 3 AAC 305.515 - Exceptions to tied house prohibitions

(a) The practices set out in this section are exceptions to the practices listed under AS 04.16.017(a)(1) or 3 AAC 305.510.

(b) The practices prohibited under AS 04.16.017(a)(1) or 3 AAC 305.510 do not apply to

(1) an entity that holds both a brewery manufacturer license under AS 04.09.020 and a brewery retail license under AS 04.09.320;

(2) an entity that holds both a winery manufacturer license under AS 04.09.030 and a winery retail license under AS 04.09.330; or

(3) an entity that holds both a distillery manufacturer license under AS 04.09.040 and a distillery retail license under AS 04.09.340.

(c) Under this section, an entity may

(1) furnish equipment, inside signage, supplies, services, or other things of value to a person holding a retail license under AS 04.09.200 - 04.09.370 if the entity furnishing those items maintains records, including commercial records or invoices, of all items furnished to the person holding the retail license, for a three-year period; the entity's records must show

(A) the retailer's name and address;

(B) the date the item was furnished to the retailer;

(C) a description of the item furnished to the retailer;

(D) the entity's cost of the furnished item, calculated at the invoice price and landed price to the entity's licensed premises in the state; and

(E) charges to the retailer for the furnished item;

(2) give a product display to the person holding a retail license under AS 04.09.200 - 04.09.370, if

(A) the total value of the product display given by the entity to the retailer does not exceed $800 per brand at any one time in any single licensed premises or $4,800 per brand if the retailer has six or more licensed premises, excluding installation costs; under this subparagraph, entities may not pool or combine dollar limitations to provide a retailer a product display valued at more than $800 per brand;

(B) the product display identifies the featured product or information about the product's manufacturer in a manner that is conspicuous, identifiable, and securely affixed; the name and address of the retailer may also appear on the product display; and

(C) a conditioned purchase of the alcoholic beverage on the product display does not exceed the quantity necessary for the initial completion of that display; under this subparagraph, the entity may not impose any other condition on the retailer for the retailer to receive or get the product display;

(3) give, sell, or loan indoor signage, indoor posters, table tents, place mats, menus, pamphlets, writing utensils, product description sheets, light fixtures, and other non-consumable similar items to a person holding a retail license under AS 04.09.200 - 04.09.370 if

(A) the item identities the featured product or information about the product's manufacturer in a manner that is conspicuous, identifiable, and securely affixed; the name and address of the retailer may also appear on the item; and

(B) the entity does not directly or indirectly pay or credit the retailer for using or distributing the item or for an expense incidental to the item's use;

(4) give or sell outside signage to a person holding a retail license under AS 04.09.200 - 04.09.370 if

(A) the sign bears information about a featured product or the product's manufacturer in a manner that is conspicuous, identifiable, and securely affixed;

(B) the retailer is not compensated, directly or indirectly, for displaying the sign; and

(C) the cost of a single exterior sign does not exceed $400 per location;

(5) furnish things of value to a temporary retailer;

(6) except as provided in (7) of this subsection, provide equipment, consumable supplies, or service ware to a person holding a retail license under AS 04.09.200 - 04.09.370 if

(A) the equipment, supplies, or service ware are sold at a price not less than the cost to the entity who initially purchased them and the landed price to the entity's registered address in the state; and

(B) the purchase cost is collected from the retailer not later than 30 days after the date of delivery or installation of the equipment, supplies, or service ware;

(7) provide or install an alcoholic beverage dispensing system, including alcoholic beverage taps or drafting equipment, to a person holding a retail license under AS 04.09.200 -04.09.370, if

(A) the cost of the original purchase or installation is billed to the retailer at a price not less than the cost to the entity who initially purchased them and the landed price to the entity's registered address in the state;

(B) the purchase or installation cost is collected from the retailer not later than 30 days after the date of the purchase or installation; and

(C) the purchase or installation is not conditioned on the exclusion, in part or whole, of other entities' products;

(8) provide for the maintenance or cleaning of an alcoholic beverage dispensing system, including alcoholic beverage taps or drafting equipment, to a person holding a retail license under AS 04.09.200 - 04.09.370; maintenance costs exceeding $50 shall be billed to the retailer and collected not later than 30 days after the date of performance of the service; cleaning may be provided free of cost to the retailer;

(9) provide traditional or digital artwork to a person holding a retail license under AS 04.09.200 - 04.09.370 for use in advertising that features the entity's products;

(10) package and distribute alcoholic beverages in combination with other nonalcoholic items for sale to consumers at a retailer's premises;

(11) give or sponsor educational seminars for employees of a person holding a retail license holder under AS 04.09.200 - 04.09.370; seminars may be held at the entity's facility, a third-party location, or the retailer's facility; the entity may not pay the retailer's expenses for attendance, including travel and lodging costs; an entity may provide nominal hospitality during the event, including non-alcoholic beverages or hors d'oeuvres;

(12) provide a presentation to the general public on the licensed premises of a person holding a retail license under AS 04.09.200 - 04.09.370, including describing featured products during consumer-sampling activities;

(13) furnish coupons at the licensed premises of a person holding a retail license under AS 04.09.200 - 04.09.370 to consumers to redeem for alcoholic beverages or related accessories, if

(A) all licensed retailers within the market where the coupon offer is made may redeem those coupons;

(B) the entity does not reimburse a retailer for more than the face value of all coupons redeemed;

(C) the coupons are only created and provided by a manufacturer of an alcoholic beverage; and

(D) the coupons are only offered for products sold for off-premises consumption;

(14) list the names and addresses of two or more unaffiliated retailers licensed under AS 04.09.200 - 04.09.370 that are selling the products of an entity in an advertisement of the entity if

(A) the advertisement does not also contain the retail price of the product;

(B) the listing is the only reference to the retailers in the advertisement and is relatively inconspicuous in relation to the advertisement as a whole; and

(C) the advertisement does not refer only to one retailer or only to retail establishments controlled directly or indirectly by the same retailer;

(15) manage display space at the licensed premises of a person holding a retail license under AS 04.09.200 - 04.09.370 on a nondiscriminatory basis; that display-space management may include

(A) product rotation of alcoholic beverages, either on retail shelves or in displays or from storage areas to retail shelves and display;

(B) storage area, retail shelf, and display stocking;

(C) construction of freestanding, special, and nonpermanent floor displays; and

(D) delivery and placement of products to the retailer-designated storage areas;

(16) recommend a shelf plan or shelf schematic for alcoholic beverages to a person holding a retail license under AS 04.09.200 - 04.09.370, if the final decision of the placement of product is made by the retailer;

(17) reset the licensed premises of a person holding retail license under AS 04.09.200 - 04.09.370 if

(A) the retailer sends notice by mail or electronic mail to all entities from which the retailer received alcoholic beverages within the past 12 months or distributors of those entities; notice under this subparagraph must

(i) include the date and time of the contemplated movement or reset; and

(ii) be sent not less than two weeks before the contemplated reset date;

(B) employees of an entity are not used as employees of, or required to provide services to, the retailer on any basis;

(C) the resultant movement of products or reset does not exclude a competing entity from the premises; and

(D) all entities are allowed to participate in the reset;

(18) extend credit to a person holding a retail license under AS 04.09.200-04.09.370 for the purchase of alcoholic beverages at standard market price on credit with a line of credit provided by a third-party financial institution, including finance charges and processing fees; and

(19) sell other merchandise, including groceries or pharmaceuticals, to a person holding a retail license under AS 04.09.200 - 04.09.370, if the entity is also in business as a bona fide producer or vendor of that merchandise and

(A) the merchandise is sold at the manufacturer's invoice price and if applicable, landed price to the entity in the state;

(B) the merchandise is not sold in combination with alcoholic beverages, except for packaging and distributing alcoholic beverages in combination with other nonalcoholic items for sale to consumers;

(C) the normal manufacturer's invoice price of the merchandise appears on the retailer's purchase invoices or other records; and

(D) the individual selling prices of merchandise and alcoholic beverages sold in a single transaction can be determined from commercial documents covering the sales transaction.

(d) For the purposes of this section,

(1) "product display" means custom fixtures or special presentations that are used to attract and entice the buying public;

(2) "temporary retailer" means a person who does not hold a retail license under AS 04.09.200 - 04.09.370, but who is supplied with an alcoholic beverage permit not more than five times in a calendar year and where each event does not exceed four days.

3 AAC 305.515

Eff. 8/9/2024, Register 251, October 2024

Authority:AS 04.06.090

AS 04.06.100

AS 04.16.017