§ 203. Restrictions; financial interests; employees
(a)(1) Except as provided in section 271 of this title, a packager, manufacturer, or rectifier licensed in Vermont or in another state;
a certificate of approval holder; or a wholesale dealer shall not have any financial
interest in the business of a first-, second-, or third-class licensee, and a first-,
second-, or third-class licensee shall not have any financial interest in the business
of a packager, manufacturer, or rectifier licensed in Vermont or in another state;
a certificate of approval holder; or a wholesale dealer.
(2) Notwithstanding subdivision (1) of this subsection and except as otherwise provided
in section 271 of this title, 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 the
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. 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 subdivision, shall provide to the Division
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.
(b) An individual who is an employee of a wholesale dealer that does not hold a solicitor’s
license may also be employed by a first- or second-class licensee on a paid or voluntary
basis, provided that the employee does not exercise any control over, or participate
in, the management of the first- or second-class licensee’s business or business decisions
and that neither employment relationship results in the exclusion of any competitor
wholesale dealer or any brand of alcoholic beverages of a competitor wholesale dealer. (Amended 1979, No. 103 (Adj. Sess.), § 2, eff. April 2, 1980; 2001, No. 143 (Adj. Sess.), § 10, eff. June 21, 2002; 2003, No. 24, § 1, eff. May 14, 2003; 2003, No. 27, § 1, eff. May 17, 2003; 2007, No. 94 (Adj. Sess.), § 1; 2013, No. 64, § 4; 2013, No. 72, § 25; 2017, No. 83, § 22; 2018, No. 1 (Sp. Sess.), § 26.)