<html> <head> <title>Rule 64:75:04:02 Wholesale payment terms -- malt beverage exception.</title> <META NAME="Keywords" Content="Administrative Rules 64:75:04:02"> <META NAME="Description" Content="Administrative Rules 64:75:04:02 Wholesale payment terms -- malt beverage exception."> <meta http-equiv=Content-Type content="text/html; charset=windows-1252"> <meta name=Generator content="Microsoft Word 15 (filtered)"> <style> <!-- /* Font Definitions */ @font-face {font-family:"Cambria Math"; panose-1:2 4 5 3 5 4 6 3 2 4;} @font-face {font-family:Times; panose-1:2 2 6 3 5 4 5 2 3 4;} @font-face {font-family:Tahoma; panose-1:2 11 6 4 3 5 4 4 2 4;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {margin:0in; margin-bottom:.0001pt; font-size:10.0pt; font-family:"Times",serif;} a:link, span.MsoHyperlink {color:blue; text-decoration:underline;} a:visited, span.MsoHyperlinkFollowed {color:purple; text-decoration:underline;} p.MsoAcetate, li.MsoAcetate, div.MsoAcetate {mso-style-link:"Balloon Text Char"; margin:0in; margin-bottom:.0001pt; font-size:8.0pt; font-family:"Tahoma",serif;} span.BalloonTextChar {mso-style-name:"Balloon Text Char"; mso-style-link:"Balloon Text"; font-family:"Tahoma",serif;} .MsoChpDefault {font-size:10.0pt;} @page WordSection1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in;} div.WordSection1 {page:WordSection1;} --> </style> </head> <body lang=EN-US link=blue vlink=purple> <div class=WordSection1> <p class=MsoNormal style='text-align:justify'><span style='font-size:12.0pt; font-family:"Times New Roman",serif'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>64:75:04:02.&nbsp;&nbsp;Wholesale payment terms -- malt beverage exception.</b> No wholesaler may offer a retailer payment terms that provide a payment period in excess of</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'> </span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>30 days from delivery of the alcoholic beverages. The delivery date of the alcoholic beverages is the</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'> </span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>first day of the 30-day payment period.</span></p> <p class=MsoNormal style='text-align:justify'><span style='font-size:12.0pt; font-family:"Times New Roman",serif'>&nbsp;</span></p> <p class=MsoNormal style='text-align:justify'><span style='font-size:12.0pt; font-family:"Times New Roman",serif'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span><span style='font-size: 12.0pt;font-family:"Times New Roman",serif'>Notwithstanding other provisions in this section</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>,</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'> malt beverages must be paid for upon sale</span><span style='font-size:12.0pt;font-family: "Times New Roman",serif'> </span><span style='font-size:12.0pt;font-family: "Times New Roman",serif'>and delivery. Acceptable payment methods are United States currency, a correctly dated check</span><span style='font-size:12.0pt; font-family:"Times New Roman",serif'> </span><span style='font-size:12.0pt; font-family:"Times New Roman",serif'>payable at the bank upon presentation on the next banking day</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>,</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'> or an electronic funds transfer. In</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'> </span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>addition to the purchase price of the malt beverages</span><span style='font-size:12.0pt; font-family:"Times New Roman",serif'>, </span><span style='font-size:12.0pt; font-family:"Times New Roman",serif'>retailers shall pay to the wholesaler not less</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'> </span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>than the brewery cost of any redeemable containers used. The requirement for payment upon sale</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'> </span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>and delivery does not apply to municipally operated establishments or establishments operating</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'> </span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>pursuant to SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=35-4-19">35-4-19</A> and SDCL 35-4-2l to 35-4-23</span><span style='font-size:12.0pt; font-family:"Times New Roman",serif'>,</span><span style='font-size:12.0pt; font-family:"Times New Roman",serif'> inclusive</span><span style='font-size: 12.0pt;font-family:"Times New Roman",serif'>,</span><span style='font-size: 12.0pt;font-family:"Times New Roman",serif'> if the municipality retains the</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'> </span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>obligation to make payment for the malt beverages directly to a wholesaler</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>.</span></p> <p class=MsoNormal style='text-align:justify'><span style='font-size:12.0pt; font-family:"Times New Roman",serif'>&nbsp;</span></p> <p class=MsoNormal style='text-align:justify'><span style='font-size:12.0pt; font-family:"Times New Roman",serif'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Source:</b> SL 1975, ch 16, &#167;&nbsp;1; 4 SDR 35, effective December 22, 1977; 13 SDR 129, 13 SDR 134, effective July 1, 1987; 21 SDR 219, effective July 1, 1995; 31 SDR 214, effective July 6, 2005; 45 SDR 83, effective December 18, 2018; 46 SDR 11, effective July 30, 2019.</span></p> <p class=MsoNormal style='text-align:justify'><span style='font-size:12.0pt; font-family:"Times New Roman",serif'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>General Authority:</b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=35-10-1">35-10-1(6)</A></span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>(11)</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>.</span></p> <p class=MsoNormal style='text-align:justify'><span style='font-size:12.0pt; font-family:"Times New Roman",serif'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Law Implemented:</b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=35-4-52">35-4-52</A>, <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=35-10-1">35-10-1(6)</A></span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>(11)</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>.</span></p> <p class=MsoNormal style='text-align:justify'><span style='font-size:12.0pt; font-family:"Times New Roman",serif'>&nbsp;</span></p> </div> </body> </html>