Rule 42.12.150 - ALCOHOLIC BEVERAGE INDUSTRY TRADE SHOWS(1) For the purpose of this rule, an alcoholic beverage industry trade show means an event sponsored by the department, another state agency of Montana, or a nonprofit association representing an alcoholic beverage group where alcoholic beverage manufacturers showcase their products to industry trade show attendees.(2) Alcoholic beverage industry trade shows may only be held if prior approval is obtained from the department. A trade show sponsor must electronically submit an industry trade show application to the department at least 30 days prior to the alcoholic beverage industry trade show.(3) Attendees of an alcoholic beverage industry trade show are limited to the following persons invited by the event sponsor: licensees, persons employed in the alcoholic beverage industry or a related industry, or family members of such persons, and include public officers, candidates for public office, and public employees involved in the alcoholic beverage industry, or related industry. A related industry includes but is not limited to gambling, food preparation, and other professional services provided to alcoholic beverages licensees.(4) The department, a state agency of Montana, or a nonprofit association representing an alcoholic beverage industry may not sponsor more than two alcoholic beverage industry trade shows per year.(5) An alcoholic beverage industry trade show may be held at: (a) the licensed premises of an all-beverages licensee or on-premises consumption beer and wine licensee;(b) a location catered by an all-beverages licensee or on-premises consumption beer and wine licensee; or(c) a location not otherwise licensed if the trade show sponsor has commercial general liability policy (CGL) with liquor liability coverage or has obtained an event liability insurance policy (with liquor liability coverage) for the trade show with coverage limits no less than $1 million per occurrence / $2 million aggregate.(6) Except as provided in (8), a beer manufacturer or a beer manufacturer's employees or agents who intend to provide beer at an industry trade show or a table wine manufacturer or the table wine manufacturer's employees or agents who intend to provide table wine at an industry trade show must purchase the beer or table wine, for no more than the ordinary retail price, from: (a) the all-beverage licensee or on-premises consumption beer and wine licensee hosting the industry trade show if the trade show is held at a location allowed for in (5)(a) or (5)(b); or(b) any all-beverage licensee or on-premises consumption beer and wine licensee if the industry trade show is held at a location allowed for in (5)(c).(7) Except as provided in (8), a vendor, as defined in ARM 42.11.105, with a current vendor permit, as provided in ARM 42.11.213, may request a trade show case from the department for use at an industry trade show. A trade show case means a case of product used by a registered vendor representative for promoting a vendor's products to attendees of an industry trade show. For the purposes of this rule, product means a liquor item identified by a unique identification number or stock-keeping unit. (a) Except as provided in 16-4-311, MCA, the vendor must ship the trade show case to the state liquor warehouse at no charge to the department.(b) In order for an industry trade show case to be removed from bailment at the state liquor warehouse, a vendor must submit a request electronically on a form provided by the department at least seven days prior to the requested ship date to the agency liquor store.(c) A trade show case must be purchased by a registered vendor representative, as defined in ARM 42.11.211, from an agency liquor store at a cost of $12.00 per case.(8) An alcoholic beverage manufacturer may use its own equipment, trucks, and employees or use a common carrier to deliver alcoholic beverages it produces from its premises to the alcoholic beverage industry trade show location.(9) An alcoholic beverage trade show held at a licensed premises or at a location described in (5)(b) must serve only the types of alcoholic beverages authorized under the retail license and catering endorsement, where applicable.(a) The alcoholic beverage manufacturer or its employees may serve samples with the permission of the licensee.(b) All persons serving samples at an alcoholic beverage industry trade show shall be compliant with the Responsible Alcohol Sales and Service Act prior to the alcoholic beverage industry trade show.(c) Only department-approved product samples may be served at the alcoholic beverage industry trade show.(d) The service of samples must be conducted so as to prevent the consumption or possession of alcoholic beverages on the premises by persons who are under 21 years of age or actually, apparently, or obviously intoxicated.(10) For an alcoholic beverage industry trade show not held at a licensed premises or at a location described in (5)(b), the allowable sample serving size per product, per person shall not exceed two ounces for liquor products, 12 ounces for beer products, and five ounces for wine products.(11) At the conclusion of an alcoholic beverage industry trade show, any remaining alcoholic beverages may not be given away to attendees and must be retained by the alcoholic beverage manufacturer or vendor, the alcoholic beverage manufacturer or vendor's employees, or registered vendor representatives.(12) An alcoholic beverage manufacturer is responsible for the payment of all applicable alcoholic beverage taxes on alcoholic beverage samples provided at an alcoholic beverage industry trade show which are not purchased from a licensed retailer or agency liquor store.(13) A licensee who hosts or caters an industry trade show is ultimately responsible for ensuring compliance with all alcoholic beverage laws and regulations, violations of which may subject the licensee to administrative action.Mont. Admin. r. 42.12.150
NEW, 2019 MAR p. 1173, Eff.8/10/2019; AMD, 2024 MAR p. 2303, Eff. 9/21/2024AUTH: 16-1-303, 16-1-307, MCA; IMP: 16-1-307, 16-3-107, 16-4-201, 16-4-204, 16-4-311, MCA