1. (1) A brewer, beer importer, beer wholesaler, winery, or table wine distributor is subject to a penalty under 16-4-406, MCA, if credible evidence demonstrates that they extended credit to a retail licensee for more than seven days or sold and delivered beer to a retailer who has unpaid deliveries that exceed seven days.
2. (2) A retail licensee is subject to a penalty under 16-4-406, MCA, if credible evidence demonstrates that the retail licensee accepted credit extended by a brewer, beer importer, beer wholesaler, winery, or table wine distributor for more than seven days for the purchase of beer or table wine or failed to pay a brewer, beer importer, beer wholesaler, winery, or table wine distributor within seven days from the date the beer or table wine was delivered.
3. (3) The first day of the seven-day credit period begins at 8:00 a.m. on the day after the delivery.

4. (4) Criteria which demonstrates credit has been extended are:

   1. (a) wholesaler delivered product to retailer;
   2. (b) retailer or wholesaler does not have documentation of payment;
   3. (c) wholesaler has been without payment for more than seven days; and
   4. (d) wholesaler does not have documentation of efforts to collect payment; or
   5. (e)
   6. (a) , (b), (c), and the wholesaler has no documentation to show further product delivery was terminated.

5. (5) Criteria which demonstrates credit has been accepted are:

   1. (a) wholesaler delivered product to retailer;
   2. (b) retailer or wholesaler does not have documentation of payment;
   3. (c) wholesaler has been without payment for more than seven days; and
   4. (d) product has not been returned by retailer.
6. (6) When a license is sold and a debt to a beer and wine wholesaler remains unpaid, the debt becomes the obligation of the new owner of the license. Based on the seven-day credit limitation, the wholesaler may not sell to the new licensee until the previous debt is paid in full.

Authorizing statute(s): 16-1-303, MCA

Implementing statute(s): 16-3-243, 16-3-406, 16-4-404, MCA

History: NEW, 1993 MAR p. 158, Eff. 1/29/93; AMD, 2001 MAR p. 449, Eff. 3/23/01; AMD, 2002 MAR p. 2337, Eff. 8/30/02; AMD, 2008 MAR p. 2183, Eff. 10/10/08; AMD, 2024 MAR p. 2303, Eff. 9/21/24.