Request By:
Richard H. Lewis, Commissioner
Department of Alcoholic Beverage Control
123 Walnut Street
Frankfort, Kentucky 40601
Opinion
Opinion By: Steven L. Beshear, Attorney General; Reid C. James, Assistant Attorney General
This is in response to your request for an opinion of this office regarding the offering of premiums, gifts, or prizes in connection with the sale of malt beverages pursuant to KRS 244.500(1). This statutory subsection provides,
(1) No person holding a license to sell malt beverages shall offer or give anything tangible of value as a premium for the return of caps, stoppers, corks, stamps, wrappers, coupons or labels taken from any bottle, case, barrel or package containing malt beverages or to offer or give anything of value as a premium, gift or prize for any purpose in connection with the sale of malt beverages.
Subsection (2) of this statute simply exempts from subsection (1) the refund of deposit money for return of the original malt beverage containers.
You have noted in your request that the Department of Alcoholic Beverage Control has always treated breweries, distributors, and retail license holders the same in the enforcement of this law. You state, however, that a question has arisen as to whether KRS 244.500 should be a bar to driver/ salesmen incentive programs. You note that those favoring such incentives argue this statute is directed more to the giving of prizes and premiums at the consumer level than at the brewery or wholesale level of distribution. You therefore ask, "Are incentives provided to driver/ salesmen by breweries or distributors within the meaning of KRS 244.500?
We are of the opinion that they are. The statute specifically provides that "no person holding a license to sell malt beverages shall offer or give anything of value as a premium. . . ." The types of malt beverage licenses which can be issued are set out in KRS 243.040, and are more than ten in number. KRS 244.500 makes no distinction between retailers, brewers, or distributors, but uses the all inclusive of "no person holding a license. " Based thereon it is our belief that driver/ salesmen incentives provided by breweries or distributors are within the meaning of KRS 244.500 , and are prohibited.