Idaho Code 23-1032 – Financial Interest in Dealer or Wholesaler Prohibited
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(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.
Terms Used In Idaho Code 23-1032
- Beer: means any beverage obtained by the alcoholic fermentation of an infusion or decoction of barley, malt and/or other ingredients in drinkable water. See Idaho Code 23-1001
- Brewer: means a person licensed to manufacture beer. See Idaho Code 23-1001
- Dealer: means a person licensed to import beer into this state for sale to a wholesaler. See Idaho Code 23-1001
- Director: means the director of the Idaho state police. See Idaho Code 23-1001
- Fraud: Intentional deception resulting in injury to another.
- Property: includes both real and personal property. See Idaho Code 73-114
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories; and the words "United States" may include the District of Columbia and territories. See Idaho Code 73-114
- Wholesaler: means any person licensed to sell beer to retailers, wholesalers, permittees or consumers and to distribute beer from warehouse premises described in the license. See Idaho Code 23-1001