| (a) This section applies to the use of alcoholic beverages
at fundraising events held by or benefitting charitable, religious,
political, and civic organizations.
(b) An organization may provide free alcoholic beverages
at an event under this section without first obtaining a temporary
authorization only if the alcoholic beverages are offered free of
charge upon the request of any non-intoxicated person at least 21
years of age, regardless of whether the person has paid a membership
fee, entrance fee, door charge, meal charge, ticket price, or any
other fee for the event. The organization shall not request donations
or tips or otherwise receive money in exchange for alcoholic beverages
served.
(c) An organization providing free alcoholic beverages
under subsection (b) of this section may:
(1) serve donated alcoholic beverages;
(2) receive donations in cash or of alcoholic beverage
products;
(3) enter into sponsorship or underwriting agreements
with members of the alcoholic beverage industry, including agreements
for advertising, signage, and product exclusivity; and
(4) offer free alcoholic beverages to the general public
outside of the event, but condition entry into the event on payment
of a donation or fee.
(d) An organization that obtains a temporary authorization
for an event may sell alcoholic beverages at the event subject to
the following conditions:
(1) the organization must sell only alcoholic beverages
purchased from a licensed distributor, wholesaler, winery, brewery,
or brewpub, or a holder of a local distributor's permit;
(2) the organization may not sell any donated alcoholic
beverages; and
(3) the organization may not accept a cash donation
from a member of the alcoholic beverage industry that is conditioned
upon a written or unwritten agreement between the organization and
alcoholic beverage industry member with respect to how the organization
will spend the cash donation, any benefit that the industry member
will receive as a result of the cash donation, which products the
organization will sell at the event, or sponsorship rights, including
signage and advertising.
(e) An organization selling alcoholic beverages pursuant
to a temporary authorization obtained by the organization may accept
cash donations from alcoholic beverage industry members and use the
cash for any purpose, including purchasing alcoholic beverages for
use at the event, subject to subsection (d)(3) of this section.
(f) An organization may partner with an independent
third-party retail permit holder to sell alcoholic beverages at an
event under this section, subject to the following conditions:
(1) the permit to sell alcoholic beverages at the event
must be held by a retailer that is independent of the sponsors of
the event;
(2) the retail permit holder may not receive any direct
benefit or service due to sponsorship by a wholesaler or manufacturer
of alcoholic beverages;
(3) the organization may not exchange gifts or donations
for exclusive rights to sell a certain product or brand; and
(4) the retail permit holder must retain the right
to control the quantity and selection of brands of alcoholic beverages
purchased or sold for the event and at the event.
(g) An organization partnering with an independent
third-party retail permit holder under subsection (f) of this section
may:
(1) receive cash or in-kind donations from manufacturers,
wholesalers, and retailers; and
(2) enter into an agreement with the retail permit
holder whereby the retail permit holder donates a portion of the proceeds
from the event to the organization; and
(3) enter into sponsorship agreements with manufacturers,
wholesalers, and retailers.
(h) Signs or other advertising materials placed by
members of the alcoholic beverage industry indicating their participation
in, or sponsorship of an event under this section must comply with
§45.1111 of this title, relating to Advertising Signs at Charitable
or Civic Events.
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