804 KAR 11:010. Equipment and supplies.
RELATES TO: KRS 244.500, 244.590
STATUTORY AUTHORITY: KRS 241.060(1), 244.590(1)(c), (2)
NECESSITY, FUNCTION, AND CONFORMITY: KRS 241.060(1) authorizes the Alcoholic Beverage Control Board to promulgate administrative regulations governing procedures relative to the supervision and control of the use, manufacture, sale, advertising, and trafficking of alcoholic beverages. KRS 244.590(1)(c) authorizes the administrator of the malt beverage unit to prescribe by administrative regulation the types of equipment or other things of value a brewer or distributor may furnish to a malt beverage retailer. This administrative regulation establishes the items that a brewer or distributor may furnish to a retail licensee and other licensees.
Section 1. (1) A brewer or distributor may furnish the following equipment to retail licensees that sell draft malt beverages:
(a) Tapping accessories;
(h) Vent tongues;
(i) Check valves; and
(j) Tap knobs.
(2) If tap knobs, or similar devices, bearing brand names are furnished they shall not be used to dispense malt beverages of a different brand from that designated on the knob. Other equipment shall not be furnished to retail malt beverage licensees.
Section 2. A brewer or distributor may furnish vats, tubs, tanks, or portable dispensing units to special temporary licensees, picnics, bazaars and carnivals. The equipment may bear advertising associated with a particular brand that is visible to the consumer.
Section 3. (1) A brewer or distributor may provide refrigerated coolers to retailers by gift, lease, loan, or sale under the conditions established in this subsection.
(a) A brewer or distributor shall not provide more than one (1) refrigerated cooler to any one (1) retail licensed premises, except that this provision shall not apply to NQ-1 retail licensed premises.
(b) A brewer or distributor shall not provide the refrigerated cooler to the retailer under terms or conditions intended or designed to encourage or induce the retailer to sell or use the products of the providing brewer or distributor to the exclusion of other brewers’ or distributors’ products.
(c) A brewer or distributor shall not provide the refrigerated cooler to the retailer under terms or conditions intended or designed to:
1. Restrict the retailer’s use of the refrigerated cooler to only the products of the providing brewer or distributor to the exclusion of other brewers’ or distributors’ products; or
2. Require the retailer to place the brewer’s or distributor’s products in certain locations in the cooler, or prohibit or direct the placement of other brewers’ or distributors’ products.
(d) A brewer shall not expressly or implicitly require any distributor of its products to provide, deliver, service, or maintain refrigerated coolers provided by the brewer or the distributor, or retaliate against a distributor who refuses to do so. This provision shall not prohibit a distributor’s voluntary agreement to do so.
(e) A retailer shall not require or request a brewer or distributor to provide a refrigerated cooler to it as an express or implied condition for the retailer’s sale, use, or placement of the brewer’s or distributor’s products at the retail licensed premises, or retaliate against a brewer or distributor who refuses to do so.
(f) Any refrigerated cooler provided by a brewer or distributor to a retailer shall not:
1. Exceed fifteen (15) cubic feet of interior storage space;
2. Have tapping or dispensing capabilities or otherwise be capable of use by the retailer in selling draft malt beverages;
3. Be constructed in any manner that limits the type of product that may be displayed in the cooler; and
4. Leave the retailer’s licensed premises.
(g) Any refrigerated cooler provided by a brewer or distributor to a retailer shall have:
1. Adjustable temperature controls;
2. Adjustable shelving inside the cooler; and
3. Capability of storing differing product types and brands without the need to physically modify the unit.
(h) A substantial change shall not be made to a refrigerated cooler that obscures or removes the advertising associated with a particular brand of the providing brewer or distributor such that a reasonable customer cannot readily ascertain the identity of the provider.
(2) Subsection (1) of this section shall only apply to coolers provided on or after January 6, 2017. (ABC 12:10; 1 Ky.R. 847; eff. 5-14-1975; Am. 9 Ky.R. 381; eff. 10-6-1982; 31 Ky.R. 628; 940; eff. 11-26-2004; 43 Ky.R. 338, 752; eff. 1-6-2017.)