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<section article="gab" article_name="Alcoholic Beverages and Cannabis" number="2-216" title_number="2" title_name="State-Issued Permits and Licenses" subtitle_number="2" subtitle_name="Manufacturer's Licenses">
  <level label="a">
    <level label="1">
      <text>In this section the following words have the meanings indicated.</text>
    </level>
    <level label="2">
      <text>“Advertisement” includes a graphic or nongraphic sign, display, poster, and placard.</text>
    </level>
    <level label="3">
      <text>“Manufacturing entity” means:</text>
      <level label="i">
        <text>a holder of a manufacturer’s license or a person connected with the business of the holder; or</text>
      </level>
      <level label="ii">
        <text>a distiller, nonresident dealer, resident dealer, brewer, rectifier, blender, or bottler of alcoholic beverages.</text>
      </level>
    </level>
  </level>
  <level label="b">
    <text>Except as otherwise provided in this section:</text>
    <level label="1">
      <text>a manufacturing entity may not have a financial interest in:</text>
      <level label="i">
        <text>the premises on or in which a license holder sells alcoholic beverages at retail; or</text>
      </level>
      <level label="ii">
        <text>a business that a license holder conducts;</text>
      </level>
    </level>
    <level label="2">
      <text>a manufacturing entity may not lend money or any other thing of value, make a gift, or offer a gratuity to a retail dealer;</text>
    </level>
    <level label="3">
      <text>a retail dealer may not accept, receive, or make use of money, a gift, or an advertisement provided by a manufacturing entity or become indebted to a manufacturing entity except for the purchase of alcoholic beverages and allied products purchased for resale; and</text>
    </level>
    <level label="4">
      <text>a manufacturing entity may not provide an advertisement to a retail dealer.</text>
    </level>
  </level>
  <level label="c">
    <level label="1">
      <text>This subsection applies only to brewed products.</text>
    </level>
    <level label="2">
      <level label="i">
        <text>Except as provided in subsection (e) of this section, a brewer, nonresident dealer, or resident dealer may not provide to a retail license holder an advertisement that:</text>
        <level label="1">
          <text>is worth more than $150; and</text>
        </level>
        <level label="2">
          <text>advertises the beer or malt products of a particular brewer, nonresident dealer, resident dealer, or beer wholesaler.</text>
        </level>
      </level>
      <level label="ii">
        <text>An advertisement provided in accordance with this subsection shall contain brand information that is prominent, permanent, and equal to the life and value of the utilitarian character of the advertising item.</text>
      </level>
    </level>
  </level>
  <level label="d">
    <level label="1">
      <text>This subsection applies only to wine and liquor.</text>
    </level>
    <level label="2">
      <text>An advertisement for use in windows or elsewhere on a retail liquor establishment may be given to a retailer by a brand owner who is engaged in the business of a manufacturing entity, if:</text>
      <level label="i">
        <text>the utilitarian value is secondary and only incidental to the value as an advertisement;</text>
      </level>
      <level label="ii">
        <text>the total value of an item provided by a brand owner for each of its individual brands for use in any one retail establishment at any one time is not more than $150 for each individual brand; and</text>
      </level>
      <level label="iii">
        <text>the cost of installing these materials does not exceed the usual cost in the locality.</text>
      </level>
    </level>
    <level label="3">
      <level label="i">
        <text>In lieu of premanufactured advertising material, materials and labor may be provided by a brand owner for the custom manufacture of an advertising display that:</text>
        <level label="1">
          <text>is worth not more than $150;</text>
        </level>
        <level label="2">
          <text>is temporary; and</text>
        </level>
        <level label="3">
          <text>has no other utilitarian value.</text>
        </level>
      </level>
      <level label="ii">
        <text>A manufacturer, nonresident dealer, resident dealer, or brand owner may not undertake a plan that directly or indirectly results in the purchase of advertising materials, supplies, or services by a wholesaler’s license holder or retail license holder.</text>
      </level>
      <level label="iii">
        <text>A retail license holder may not participate directly or indirectly in a transaction in which the license holder pays for or shares the cost for any of the advertising materials, supplies, services, or mailing expenses used to promote a brand owner’s products.</text>
      </level>
    </level>
  </level>
  <level label="e">
    <level label="1">
      <text>Subsections (b) and (c) of this section do not apply to:</text>
      <level label="i">
        <text>a holder of a Class 6 pub–brewery license with respect to the malt beverages brewed on the premises; or</text>
      </level>
      <level label="ii">
        <text>a holder of a Class 7 micro–brewery license with respect to the malt beverages brewed on the premises that are sold:</text>
        <level label="1">
          <text>on the licensed premises of the brewery; or</text>
        </level>
        <level label="2">
          <text>in a restaurant or brewery pub owned, conducted, and operated by the holder in or adjacent to the brewery for which it is licensed.</text>
        </level>
      </level>
    </level>
    <level label="2">
      <text>A holder of a Class 6 pub–brewery license or a Class 7 micro–brewery license may hold or have a financial interest in one retail license that does not apply to premises to which a Class 6 pub–brewery license or Class 7 micro–brewery license applies.</text>
    </level>
  </level>
</section>
