NO. 24.  AN ACT RELATING TO SMALL MANUFACTURERS OF MALT BEVERAGES.

(S.131)

It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1.  7 V.S.A. § 230 is amended to read:

§ 230.  RESTRICTIONS; FINANCIAL INTERESTS; DISPLAY OF

            LICENSE

A Except as provided in subdivision 2(15) of this title, a manufacturer or rectifier, bottler or wholesale dealer shall not have any direct or indirect financial interest in the business of any person holding a first, second, or third class license, and a first, second, or third class licensee may not have any financial interest in the business of a manufacturer or rectifier, bottler or wholesale dealer.   However a manufacturer of malt beverages may have a financial interest in the business of a first or second class license, and a first or second class licensee may have a financial interest in the business of a manufacturer of malt beverages, provided a first or second class licensee does not purchase, possess, or sell the malt beverages produced by a manufacturer with which there is any financial interest.  However, a certificate of approval holder for malt beverages or a certificate of approval holder for vinous beverages who is a manufacturer or rectifier may own a licensed retail business so long as the ownership is total and unconditional.  A person holding a first, second or third class license shall not have any direct or indirect financial interest in the business of a manufacturer or rectifier, bottler or wholesale dealer.   All licenses or permits granted hereunder under this title shall be conspicuously displayed on the premises wherein such persons shall conduct the business in respect to for which the license or permit is granted.  Any manufacturer of malt beverages that has a financial interest in a first or second class licensee and any first or second class licensee that has a financial interest in a manufacturer of malt beverages, as permitted under this section, shall provide to the department of liquor control and the applicable wholesale dealer written notification of that financial interest and the licensees involved.  A wholesale dealer shall not be in violation of this section for delivering malt beverages to a first or second class licensee that is prohibited from purchasing, possessing, or selling those malt beverages under this section.

Sec. 2.  EFFECTIVE DATE

This act shall take effect on passage.

Approved:  May 14, 2003