§ 3-5-11 - Licensing of chain stores.
SECTION 3-5-11
§ 3-5-11 Licensing of chain stores. –(a) Licenses, except retailer's Class E, Class B, Class B-H, Class B-L, ClassB-M, and Class B-V licenses, authorized by this title shall not be granted,issued, or transferred to or for the use of any "chain store organization,"which term shall consist of any chain of retail or wholesale business orbusiness organizations, and more specifically defined herein, including,without limitation, grocery stores, markets, department stores, and conveniencestores, as well as retailers of alcoholic beverages, and which include chainsin which one or more stores are located outside of the state.
(b) The term "chain store organization" is defined toinclude, but not limited to:
(1) Any group of one or more holders of Class A liquorlicenses who engage in one or more of the following practices with respect tothe business conducted under such licenses, either directly or indirectly, orhave any direct or indirect beneficial interest in the following practices:
(i) Common, group, centralized or coordinated purchases ofwholesale merchandise.
(ii) Common billing or utilization of the services of thesame person or the same entity in the management or operation of more than oneliquor licensed business.
(iii) Participation in a coordinated or common advertisementwith one or more liquor licensed business in any advertising media.
(iv) Coordinated or common planning or implementation ofmarketing strategies.
(v) Participation in agreed upon or common pricing ofproducts.
(vi) Any term or name identified as a chain or common entity.
(2) Any group of one or more liquor license holders who shareany of the following common features, either directly or indirectly or acquireany direct or indirect beneficial interest in the following practices:
(i) The same director of a corporation, member of a LLC, LLP,partner in a general or limited partnership, trustee or beneficiary of a trust.
(ii) The same individual or corporate owners.
(3) Any group of one or more license holders that is found tobe a "chain store organization" as a factual matter by the department, as aresult of an evidentiary hearing in connection with any application for theissuance, grant or transfer of a license, or upon the filing of a complaint byany member of the public.
(4) Upon a finding of violation of this section, thedepartment shall be empowered to set a fine up to the amount of ten thousanddollars ($10,000) per violating licensee, revoke the license of the violator,or suspend the license of the violator for a period of time to be determined bythe department. Additionally, the department shall issue a cease and desistorder against the violating chain store entity(s) and may further order thedissolution of the violating chain store entity(s).