Substitute House Bill No. 5306
          Substitute House Bill No. 5306

               PUBLIC ACT NO. 98-4


AN  ACT  CONCERNING  LIQUOR WHOLESALER FLOOR STOCK
ALLOWANCES AND DEPLETION ALLOWANCES.


    Be  it  enacted  by  the  Senate  and House of
Representatives in General Assembly convened:
    Section  30-94  of  the  general  statutes  is
repealed and the following is substituted in  lieu
thereof:
    (a)   No  permittee  or  group  of  permittees
licensed under the provisions of this chapter,  in
ANY transaction with another permittee or group of
permittees, shall directly  or  indirectly  offer,
furnish  or  receive  any  free goods, gratuities,
gifts,  prizes,  coupons,  premiums,   combination
items,   quantity  prices,  cash  returns,  loans,
discounts, guarantees,  [inducements  or]  special
prices [,] or other inducements IN CONNECTION with
the sale of alcoholic  beverages  or  liquors.  No
SUCH  permittee  shall  require  any  purchaser to
accept additional alcoholic liquors  in  order  to
make a purchase of any other alcoholic liquor.
    (b)    NOTWITHSTANDING   THE   PROVISIONS   OF
SUBSECTION (a) OF THIS SECTION AND SUBSECTION  (b)
OF  SECTION  30-63,  A  HOLDER  OF  A MANUFACTURER
PERMIT ISSUED  UNDER  SUBSECTION  (a)  OF  SECTION
30-16  OR  AN  OUT-OF-STATE  SHIPPER'S  PERMIT FOR
ALCOHOLIC LIQUOR  OTHER  THAN  BEER  ISSUED  UNDER
SECTION 30-18 MAY OFFER AND PROVIDE TO A HOLDER OF
A WHOLESALER PERMIT ISSUED UNDER SUBSECTION (a) OF
SECTION   30-17  A  FLOOR  STOCK  ALLOWANCE  OR  A
DEPLETION  ALLOWANCE,  OR  BOTH,  WITH  THE  PRIOR
APPROVAL  OF THE DEPARTMENT. SUCH ALLOWANCES SHALL
BE OFFERED AND  PROVIDED  ON  A  NONDISCRIMINATORY
BASIS TO ALL SUCH WHOLESALER PERMITTEES AUTHORIZED
TO   DISTRIBUTE   THE   PRODUCTS   OF   ANY   SUCH
MANUFACTURER  OR OUT-OF-STATE SHIPPER PERMITTEE IN
ACCORDANCE   WITH   SUCH   REQUIREMENTS   AS   THE
DEPARTMENT  MAY  PRESCRIBE  BY  REGULATION ADOPTED
UNDER   CHAPTER   54,   PROVIDED   (1)   NO   SUCH
MANUFACTURER OR OUT-OF-STATE SHIPPER PERMITTEE MAY
REQUIRE   ANY   SUCH   WHOLESALER   PERMITTEE   TO
PARTICIPATE   IN   ANY   PROGRAM   PROVIDING  SUCH
ALLOWANCES, AND (2) THE RATE OR PERCENTAGE USED TO
CALCULATE ANY SUCH ALLOWANCE MAY NOT VARY BASED ON
THE QUANTITY OF ALCOHOLIC LIQUOR OTHER  THAN  BEER
THAT  IS  SOLD. AS USED IN THIS SUBSECTION, "FLOOR
STOCK ALLOWANCE" MEANS  ANY  REBATE,  DISCOUNT  OR
OTHER  INDUCEMENT  THAT  IS  GIVEN TO A WHOLESALER
PERMITTEE TO BE USED FOR THE  SALES  PROMOTION  OR
THE DESTRUCTION OF ANY ALCOHOLIC LIQUOR OTHER THAN
BEER THAT IS STORED IN THE WHOLESALER  PERMITTEE'S
WAREHOUSE  OR OTHER STORAGE FACILITIES AT THE TIME
SUCH  REBATE,  DISCOUNT  OR  OTHER  INDUCEMENT  IS
GIVEN, AND "DEPLETION ALLOWANCE" MEANS ANY REBATE,
DISCOUNT OR OTHER INDUCEMENT USED  FOR  THE  SALES
PROMOTION  OF ANY ALCOHOLIC LIQUOR OTHER THAN BEER
THAT IS GIVEN TO A WHOLESALER PERMITTEE  BASED  ON
THE  AMOUNT  OF  SUCH  ALCOHOLIC LIQUOR SUBJECT TO
SUCH PROMOTION THAT IS SOLD AT  WHOLESALE  BY  THE
WHOLESALER PERMITTEE.

Approved April 24, 1998