|BILL AS INTRODUCED||2007-2008|
Introduced by Senator Campbell of Windsor District
Subject: Alcoholic beverages; wholesale dealers; extension of credit; first and second class licensees
Statement of purpose: This bill proposes to permit wholesale dealers to extend credit to first and second class licensees for up to 15 days.
AN ACT RELATING TO EXTENSION OF CREDIT BY WHOLESALERS OF ALCOHOLIC BEVERAGES
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. 7 V.S.A. § 230(a) is amended to read:
(a) Except as provided in subdivision 2(15) of this title, a manufacturer or rectifier, bottler or wholesale dealer shall not have any financial interest in the business of 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. A wholesale dealer may extend credit to first or second class licensees for no more than 15 days. An extension of credit under this section shall not be construed to be a direct or indirect financial interest in the retail business. 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. All licenses or permits granted under this title shall be conspicuously displayed on the premises 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.
The Vermont General Assembly
115 State Street