New Hampshire Revised Statutes 179:11 – Holders of Beverage Manufacturer, Wholesale Distributor, Beverage Vendor, and Other Licenses; Prohibited Interests
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I. No holder of a beverage manufacturer license, brew pub license, wholesale distributor license, or beverage vendor license shall sell, cause to be sold, rent, lend or cause to be loaned, or give to any on-premises or off-premises licensee or to the owner of the premises on which the business of any on-premises or off-premises licensee is to be conducted any money, equipment, furniture, fixtures, or property with which the business of any on-premises or off-premises licensee is to be conducted, nor shall any on-premises or off-premises licensee purchase, cause to be purchased, rent, borrow, solicit, or accept from any holder of a beverage manufacturer license, brew pub license, wholesale distributor license, or beverage vendor license any money, equipment, furniture, fixtures, or property with which the business of the on-premises or off-premises licensee is to be conducted, nor shall any holder of a beverage manufacturer license, brew pub license, wholesale distributor license, or beverage vendor license install or service equipment, furniture, fixtures, or property of any on-premises or off-premises licensee, except as may be designated by the commission.
II. There shall be no restriction on the number of off-premises licenses held by any person. No holder of a beverage manufacturer license, brew pub license, wholesale distributor license, or beverage vendor license shall in any way contribute or pay any money or anything in lieu thereof to any on-premises or off-premises licensee, or the licensee’s agent or employees, or to any group, association, or organization thereof, including, but not limited to, payment for the placement, display, or sale of any beverage. Nothing in this section shall prohibit any licensee from being a member of a club holding a permit or license under this title, nor prohibit the sale or purchase, for resale, of merchandise or beverages for the conduct of the business of any on-premises or off-premises licensee. Nothing in this section shall prohibit a holder of a beverage manufacturer license, brew pub license, wholesale distributor license, or beverage vendor license from bringing such holder’s own product from the storeroom of an on-premises or off-premises licensee to a warm shelf, display, refrigerated retail space, or refrigerated storage. Nothing in this section shall prohibit the holder of a beverage manufacturers license, wholesale distributors license, brew pub license, or beverage vendors license from rotating, reorganizing, cleaning, and resetting such holder’s own product once the product is on an on-premises or off-premises licensee’s warm shelf, or in an on-premises or off-premises licensee’s refrigerated retail space, or refrigerated storage.
III. No holder of an on-premises or off-premises license shall knowingly employ in any capacity any person who is the holder of any license provided under this title, except that the holder of an on-premises license may employ the holder of an off-premises license in an entertainment capacity.
IV. Except as provided in paragraphs IV-a and IV-b, no holder of a beverage manufacturer license, brew pub license, or beverage vendor license and no member of a limited liability company, officer, director, employee, or agent of a beverage manufacturer licensee, brew pub licensee, or beverage vendor licensee shall have an interest, either direct or indirect, in the business of the holder of a wholesale distributor on-premises or off-premises license.
IV-a. Notwithstanding N.H. Rev. Stat. § 179:11, IV or any other provision of this chapter, a beverage manufacturer or beverage vendor may participate in a limited partnership as defined in N.H. Rev. Stat. Chapter 304-B with a wholesale distributor in which the beverage manufacturer or beverage vendor is a limited partner and the wholesale distributor is a general partner. The duration of any such limited partnership arrangement shall not exceed 10 years.
IV-b. This section shall not prohibit a beverage manufacturer or beverage vendor from extending financing to a wholesale distributor. In the event of a default by the wholesale distributor, the beverage manufacturer or beverage vendor shall not control or operate the wholesale distributor for more than 180 days.
IV-c. Any financial agreement allowed under paragraph IV-a or IV-b shall be submitted to the commission for approval and shall comply with all applicable statutes and administrative rules of the commission.
IV-d. No holder of a beverage manufacturer license or beverage vendor license, who enters into a limited partnership or lender/debtor relationship with a wholesale distributor shall have any managerial control over the day-to-day operations of such wholesale distributorship.
V. Except as provided under N.H. Rev. Stat. § 178:12, II or N.H. Rev. Stat. § 178:16, III, no holder of a wholesale distributor license and no officer, director, stockholder, member of a limited liability company, employee, or agent of the holder of a wholesale distributor license shall through interlocking stock ownership, interlocking directors, or otherwise, have an interest, either direct or indirect, in the business of the holder of an on-premises license. Nothing in this paragraph shall be construed to apply to normal credit relations between licensees.
VI. The provisions of paragraphs IV through V shall also apply to liquor and wine manufacturers, liquor and wine vendors, and liquor and wine representatives.
II. There shall be no restriction on the number of off-premises licenses held by any person. No holder of a beverage manufacturer license, brew pub license, wholesale distributor license, or beverage vendor license shall in any way contribute or pay any money or anything in lieu thereof to any on-premises or off-premises licensee, or the licensee’s agent or employees, or to any group, association, or organization thereof, including, but not limited to, payment for the placement, display, or sale of any beverage. Nothing in this section shall prohibit any licensee from being a member of a club holding a permit or license under this title, nor prohibit the sale or purchase, for resale, of merchandise or beverages for the conduct of the business of any on-premises or off-premises licensee. Nothing in this section shall prohibit a holder of a beverage manufacturer license, brew pub license, wholesale distributor license, or beverage vendor license from bringing such holder’s own product from the storeroom of an on-premises or off-premises licensee to a warm shelf, display, refrigerated retail space, or refrigerated storage. Nothing in this section shall prohibit the holder of a beverage manufacturers license, wholesale distributors license, brew pub license, or beverage vendors license from rotating, reorganizing, cleaning, and resetting such holder’s own product once the product is on an on-premises or off-premises licensee’s warm shelf, or in an on-premises or off-premises licensee’s refrigerated retail space, or refrigerated storage.
Terms Used In New Hampshire Revised Statutes 179:11
- Beverage vendor: means an individual, partnership, limited liability company, or corporation, including any subsidiaries thereof, which sells beverages or specialty beverages to wholesale distributors. See New Hampshire Revised Statutes 175:1
- Brew pub: means a manufacturer of beer, specialty beer, or cider not exceeding 2,500 barrels annually, which as a functional part of its business, maintains a full service restaurant serving the beer it manufactures as well as other beverage and liquor as allowed by N. See New Hampshire Revised Statutes 175:1
- Commission: means the state liquor commission. See New Hampshire Revised Statutes 175:1
- License: means the authority granted by the commission to engage in the sale of liquor, wine, beverages, tobacco products, or e-cigarettes otherwise unlawful unless evidenced by such document. See New Hampshire Revised Statutes 175:1
- Licensee: means the person to whom a license of any kind is issued by the commission. See New Hampshire Revised Statutes 175:1
- Limited liability company: means a limited liability company organized under the laws of this state or authorized to transact business within the state. See New Hampshire Revised Statutes 175:1
- Liquor: means all distilled and rectified spirits, alcohol, wines, fermented and malt liquors and cider, of over 6 percent alcoholic content by volume at 60 degrees Fahrenheit. See New Hampshire Revised Statutes 175:1
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Person: means an individual, partnership, limited liability company or corporation. See New Hampshire Revised Statutes 175:1
- Premises: means and includes all parts of the contiguous real estate occupied by a licensee over which the licensee has direct or indirect control or interest and which the licensee uses in the operation of the licensed business, and which have been approved by the commission as proper places in which to exercise the licensee's privilege. See New Hampshire Revised Statutes 175:1
- Wholesale distributor: means a person licensed by the commission to engage in the purchase of beverages only from the holders of wholesale distributor licenses, beverage manufacturer licenses, beverage vendor licenses, brew pub licenses, or nano brewery licenses. See New Hampshire Revised Statutes 175:1
III. No holder of an on-premises or off-premises license shall knowingly employ in any capacity any person who is the holder of any license provided under this title, except that the holder of an on-premises license may employ the holder of an off-premises license in an entertainment capacity.
IV. Except as provided in paragraphs IV-a and IV-b, no holder of a beverage manufacturer license, brew pub license, or beverage vendor license and no member of a limited liability company, officer, director, employee, or agent of a beverage manufacturer licensee, brew pub licensee, or beverage vendor licensee shall have an interest, either direct or indirect, in the business of the holder of a wholesale distributor on-premises or off-premises license.
IV-a. Notwithstanding N.H. Rev. Stat. § 179:11, IV or any other provision of this chapter, a beverage manufacturer or beverage vendor may participate in a limited partnership as defined in N.H. Rev. Stat. Chapter 304-B with a wholesale distributor in which the beverage manufacturer or beverage vendor is a limited partner and the wholesale distributor is a general partner. The duration of any such limited partnership arrangement shall not exceed 10 years.
IV-b. This section shall not prohibit a beverage manufacturer or beverage vendor from extending financing to a wholesale distributor. In the event of a default by the wholesale distributor, the beverage manufacturer or beverage vendor shall not control or operate the wholesale distributor for more than 180 days.
IV-c. Any financial agreement allowed under paragraph IV-a or IV-b shall be submitted to the commission for approval and shall comply with all applicable statutes and administrative rules of the commission.
IV-d. No holder of a beverage manufacturer license or beverage vendor license, who enters into a limited partnership or lender/debtor relationship with a wholesale distributor shall have any managerial control over the day-to-day operations of such wholesale distributorship.
V. Except as provided under N.H. Rev. Stat. § 178:12, II or N.H. Rev. Stat. § 178:16, III, no holder of a wholesale distributor license and no officer, director, stockholder, member of a limited liability company, employee, or agent of the holder of a wholesale distributor license shall through interlocking stock ownership, interlocking directors, or otherwise, have an interest, either direct or indirect, in the business of the holder of an on-premises license. Nothing in this paragraph shall be construed to apply to normal credit relations between licensees.
VI. The provisions of paragraphs IV through V shall also apply to liquor and wine manufacturers, liquor and wine vendors, and liquor and wine representatives.