STATE TAX COMMISSION

Alcoholic Beverage Control

Local Option Regulations



Regulation

Number Regulation Name Date

1 Violations 7/01/92

2 Bonds 8/26/92

3 Permit Limit 6/12/79

4 Filing Fee

5 Permittee Must Maintain Qualifications and Pay Taxes 1/01/71

6 Advertising 7/06/88

7 Permitted Premises Where Alcoholic Beverages Are Sold 5/01/96

8 Permit Transfer 6/07/93

9 Death or Disability Of A Permittee 2/27/91

10 Disposition of Inventory When Permit Is Revoked

or Not Reissued Or When Counties Vote to Go

Back Under Prohibition Laws 7/01/96

11 Publication of Notice to Renew Permit RESCINDED

12 Hours and Days During Which Alcoholic Beverages

Maybe Sold by Hotels, Restaurants, Clubs and

Package Stores 8/07/89

13 Purchase and Sale of Distilled Alcoholic Beverages

By On-Premises Permittees 8/25/95

14 Retailer's Records 11/07/72

15 Record of Sales Made by Package Retailers

(Quantity Sales Report) RESCINDED

16 Prohibited Conduct and Activities 7/22/87

17 Employment of Persons Under 21 Prohibited 7/01/92

18 Resort Area 11/28/90

19 Administrative Procedure Before the State Tax

Commission on the Alcoholic Beverage Control

Statutes 8/27/79

20 Appeal From Administrative Denial of Permit, Resort

Area Application, Manager Application, or Employee

Identification Card 7/01/92

21 Postponements, Cancellations, and Continuances of

Hearings

22 Uniform Prices 12/08/82

23 Cooking Wines

24 Cash Payments 8/27/79

25 Sales to Military Post Exchanges, Etc. RESCINDED

26 Common Carriers Reporting 8/09/93

27 Ship Chandlers REPEALED

28 Split Cases

29 Special Order Procedures 10/05/94

30 Restriction on Interest of Permittees And

Division Employees

31 Manufacturer's Representative 8/13/92

32 Gifts, Gratuities, and Inducements 8/16/96

33 Samples 7/01/92

34 Distribution 8/27/79

35 Importers', Vintners' and Distillers' Warehouses 1/02/94

36 Procedure for Listing Alcoholic Beverage Items 4/17/96

37 Procedure for Delisting/Deleting Alcoholic Beverages 6/01/92

38 Manufacturer (Rectifier)

39 Indentification of Employees 9/07/94

40 Qualifications For Agents 8/27/79

41 Mutilation of Shipping Labels

42 Regulation Setting Forth The Requirements Of

Automatic and Electronic Liquor and Wine

Dispensing Systems 9/18/73

43 Permittees, Employees and/or Agents Shall Not Consume

Nor Be Under the Influence of Any Alcoholic Beverage,

Beer or Light Wine on Permitted Premises 7/01/92

44 Management Agreement

45 Application Requirements 11/01/93

46 Definition of Hotel 6/03/87

47 Temporary Alcoholic Beverage Permits 7/01/92

48 Sales of Limited Amounts of Alcoholic Beverages By

Package Retailers to Other Retailers 7/06/88

49 Governmental Affairs Representative As Promulgated 8/07/89

50 Caterers' Permits as Promulgated 8/07/89

51 Dual Packaging 3/14/90

52 Exchanges, Credits and Refunds 9/27/90

53 Bailment Procedures As Promulgated 4/10/91

54 Sale of Soft Drinks and Ice by Package Retailers

As Promulgated 7/01/92

55 Alcohol Processing Permit 7/04/96



REGULATION NO. 1

(As Amended 7/1/92)

VIOLATIONS

Any person, firm, association, corporation, hotel, restaurant, or club as defined in the Local Option Alcoholic Beverage Control Law that shall violate any of the provisions of the said law, or knowingly permit the violation of the said law upon its premises shall not be eligible to obtain any permit provided for in Section 67-1-51, Mississippi Code of 1972, Recompiled, for a period of twelve (12) months after the date of violation.

Unless otherwise provided by law, the Commission may revoke or suspend permits and/or ABC identification cards upon conviction before the Commission of the permittee or one (1) or more clerks, agents or employees of a permittee, of the laws, rules or regulations governing the sale of alcoholic beverages. In taking such action, the Commission shall consider prior offences committed by the permittee and/or its employees within a period of two (2) years from the date of the most recent offense.

In addition to suspension or revocation of permits and/or identification cards, the Commission may impose fines not to exceed one thousand dollars ($1,000.00) upon conviction of any person by the Commission for the violation of any ABC rule or regulation. The Commission shall not impose said fines until the person is given an opportunity for a hearing. Failure of a permittee to pay fines within a time designated by the Commission will result in revocation of permits. Failure of an employee to pay a fine within the time designated by the Commission will result in revocation of his/her ABC Identification Card. Failure of a manufacturer representative to pay fines will result in the suspension of the representative's products from sale in the State. Any person who fails to pay a fine imposed by the Commission shall be prohibited from working a permitted establishment.

The Director of the Alcoholic Beverage Control Division is hereby empowered, authorized, and directed to carry out the fully the provisions of this Regulation and Section 67-1-17, Mississippi Code of 1972, Recompiled.



REGULATION NO. 2

(As Amended 8/26/92)

BONDS

The amount of bond required of the holder of any retailer's permit under Section 27-71-21, Mississippi Code of 1972, Recompiled, shall be Five Thousand Dollars ($5,000.00). This bond shall be in such form as required by the Alcoholic Beverage Control Division.

New, revised, or different bonds may be required by the Alcoholic Beverage Control Division at any time for any carrier, manufacturer and/or distributor, and any holder of a retailer's permit.

If a retailer receives notice that his bond is to be canceled during the permit year, the permittee must immediately notify the ABC in writing that the bond is being canceled and must provide copies of any documentation received by the permittee from the bonding company. Furthermore, the permittee shall obtain another bond or deposit the equivalent amount of the bond required in cash or securities with the State Treasurer pursuant to Miss. Code Ann. 27-71-21 (1972), prior to the cancellation date of the original bond.

Failure to submit a valid bond by said cancellation date will result in an automatic suspension of sales until a valid bond is received by the ABC. In addition, the Commission may take punitive action against the permittee for failure to timely submit a bond.



REGULATION NO. 3

(As Amended 6/12/79)

PERMIT LIMIT

No person, either individually or as a member of a firm, partnership or association, or as a stockholder, officer or director in a corporation, shall own or control any interest whatsoever in more than one package retailer's permit, nor shall he act as a guarantor for or loan money to or receive any remuneration from more than one package retailer's permit, and further, neither the spouse, any relative, nor any other person living in the same household, as any person owning any interest in a package retailer's permit as set forth herein shall own any interest whatsoever in any other package retailer's permit.

No person, either individually or as a member of a firm, partnership or association, or as a stockholder, officer or director in a corporation, shall be permitted to own an interest in more than one package store while owning any interest whatsoever in an on-premises retailer's permit. This prohibition shall also apply to the spouse, relatives, or other persons living in the same household as the person who owns interest in an on-premises retailer's permit. This regulation is promulgated to specifically allow multiple ownership of an on-premises retailer's permits and to provide that persons' holding on-premises retailer's permits may simultaneously own an interest in a package retailer's permit.

However, this regulation does not authorize a person to purchase or otherwise transfer alcoholic beverages from one permitted place of business to another. Any violation of the provisions of Section 67-1-41, 671-1-43 and 27-75-5, Mississippi Code of 1972, will be grounds for revocation of the permit or permits issued to the violator.

This Regulation shall not be construed to deny renewal of any permit which may have been issued prior to the effective date of this regulation, nor shall this regulation be construed to prohibit rendering professional services for more than one package retailer.



REGULATION NO. 4

FILING FEE

The $25 filing fee is to recompense the Alcoholic Beverage Control Division for investigating the qualifications of an applicant for a permit, and is forfeited whether the Commission grants the permit applied for or not.



REGULATION NO. 5

(As Amended 1/1/71)

PERMITTEE MUST MAINTAIN QUALIFICATIONS AND PAY TAXES

The failure of a permittee to maintain the qualifications necessary for the issuance of a permit under Section 67-1-57, Mississippi Code of 1972, Recompiled, including the failure to pay any taxes due the State, may result in the revocation or suspension of a retailer's alcoholic beverage permit.





REGULATION NO. 6

(As Amended 7/6/88)

ADVERTISING

1. No person, firm or corporation shall originate advertisements in "dry" counties of this State, pursuant to Miss. Code Ann. 67-1-1, 67-1-13, 67-1-15 and 67-5-5, when such advertisement deals with an alcoholic beverage, including but not limited to advertisements by newspapers, radio, television, circular, dodger, word-of-mouth, signs, billboards, displays or any other advertising media.

2. In any alcoholic beverage advertisements capable of being seen or heard beyond any licensed premises, ANY reference to the price of such alcoholic beverages is prohibited. Furthermore, such advertisement making ANY reference to a discount or special inducement on the sale of alcoholic beverages is prohibited, including but not limited to "Happy Hour," Ladies Night," "Specials," "All Drinks Half Price," "Cocktail Hour," Attitude Adjustment," "Two-For-One," "Special Prices for Ladies," "Complimentary," "Freebies," "Best Buy," "Best Prices," "Features," etc.

Part "2" hereof is automatically rescinded effective January 1, 1989.

3. All alcoholic beverage advertising about which a person is in doubt should be submitted to the Alcoholic Beverage Control Division of the Mississippi State Tax Commission for PRIOR approval.



REGULATION NO. 7

(As Amended 5/1/96)

PERMITTED PREMISES WHERE ALCOHOLIC BEVERAGES ARE SOLD

The minimum distances provided in Section 67-1-51(3), Mississippi Code of 1972, Recompiled, shall be measured from the nearest point of the building housing the church, school, kindergarten or funeral home to the nearest point of the premises which consist of the floor planned area to be licensed by the Commission. This distance shall be measured in a straight line, such as air line distance, rather than the usual route of pedestrian travel.

No person shall sell or offer for sale any alcoholic beverages within four hundred (400) fee of any church, school, kindergarten, or funeral home, provided, however, within an area in which both the premises and the church, school, kindergarten, or funeral home are zoned commercial or industrial such minimum distance shall not be less than one hundred (100) feet.

In instances in which a church, school, kindergarten or funeral home is located in a residential district and the place of sale of any alcoholic beverages shall be located in an adjacent commercial or industrial district, such minimum distance between the place of sale of the aforesaid alcoholic beverages and the church, school, kindergarten or funeral home shall be four hundred (400) feet.

Effective June 1, 1996, any location at which any alcoholic beverages are lawfully being presently offered for sale which does not conform to the above-mentioned provisions shall be permitted to continue such sales, until such time as the business is abandoned for a six-month period.

A door must be located at or near the front of every place of business selling packaged alcoholic beverages. The back door to such place of business or storage area must be kept locked at all times except when merchandise is being received. In cases of orders or ordinances of a governing authority forbidding the locking of a back door because of a fire hazard, the Commission will make exceptions to this rule.

All surplus stock must be stored in the same building where the retail business is being conducted, but nothing shall prohibit the owner or manager of such a place of business from erecting a partition between the retail and the storage area thereof. In the event that a permittee has multiple permits for a business establishment and there is controlled access to all areas of the establishment, the permittee may use a common storage facility for a business establishment with multiple permits must submit a floor plan of the common storage facility that designates where alcoholic beverages purchased under each permit will be stored. Co-mingling of the permitted inventories by the multiple permittee shall result in the suspension or revocation of the permits.

All sales of alcoholic beverages shall be made inside the permitted premises.





REGULATION NO. 8

(As Amended 6/7/93)

PERMIT TRANSFER

No permit or any beneficial interest in same shall be transferred by any permittee to any other person or any other place except with the written consent of the Commission, upon application forms furnished by the Commission for such purposes.

Notice of the intended transfer of such location or beneficial interest must be published for two consecutive issues in a newspaper having general circulation in the area where the present permittee resides, and proof of such plication must be filed with the application to transfer such interest.

However, this Regulation shall not be construed to require publication of a mere change in trade name or the officers of a corporation where there is no change in the ownership. Any such contemplated changes must be submitted to the Commission for approval prior to making the same.

An applicant for transfer of ownership of a permit for which there exists an exemption from distance requirements as provided for in Miss. Code Ann 67-1-51(3)(1972) must submit an updated waiver from any funeral home or church.

All original applicants for permits and/or proposed recipients of beneficial interest in such permits must be not less than 21 years of age, have not been convicted of a felony in any state or federal court.

That the applicant for a package retailer's permit, if an individual, is a resident of the State of Mississippi. If the applicant is a partnership, each member of the partnership must be a resident of the state. If the applicant is a corporation, the designated manager of the corporation must have a resident of the state.







REGULATION NO. 9

(As Amended 2/27/91)

DEATH OR DISABILITY OF A PERMITTEE

In case of death or physical or mental disability of any permittee, the estate or guardianship of the permittee shall be allowed to operate the permitted business for a period not to exceed sixty (60) days after such disability. During the aforesaid 60-day period, any member of the permittee's immediate family may make application to the Commission in the usual manner that the unexpired portion of the permit of the decedent be assigned to him, but he payment of any additional permit fee shall not be required.

If such application is approved by the Commission, the applicant shall be granted the right, without the payment of an additional permit fee, to operate the permitted place of business for the unexpired portion of the time of the original permit.

It shall also be permissible for the Executor of the Estate or guardian of the disabled permittee, to sell the permittee's alcoholic beverage inventory to another permitted place of business, with the written approval of the Director of the Alcoholic Beverage Control Division, following the procedure outlined in Regulation No. 10 of Mississippi's Alcoholic Beverage Control Laws, Rules and Regulations.

If the application is denied, the Alcoholic Beverage Control Division of the State Tax Commission shall pick up and refund to the estate of the heirs at law of the decedent or the disabled person the value of all unopened alcoholic beverages in the place of business at such time, at the then current wholesale price, less a charge of Five Dollars ($5.00) per case for handling and transportation back to the warehouse in Gluckstadt, Mississippi, where the items returned will be placed in ABC inventory.

However, no credit will be given for special orders, novelty items contained in dual packaged products, ceramic decanters, holiday packages or delisted items. Such merchandise shall not be redeemed by the State of Mississippi under any circumstances.



REGULATION NO. 10

(As Amended 7/1/96)

DISPOSITION OF INVENTORY WHEN PERMIT IS REVOKED OR NOT REISSUED OR WHEN COUNTIES VOTE TO GO BACK UNDER PROHIBITION LAWS

When the alcoholic beverage license of any permittee is revoked by the State Tax Commission, the Alcoholic Beverage Control Division of the State Tax Commission shall have the right to immediately take possession of any and all alcoholic beverages remaining in stock of the aforesaid permittee and refund shall be made to the permittee at the then current wholesale price thereof, less a charge of Five Dollars ($5.00) per case for handling and transporting same back to the warehouse in Gluckstadt, Mississippi, but all license fees paid by such permittee shall be forfeited. Such confiscated alcoholic beverages shall be placed in the Alcoholic Beverage Control Division inventory and sold in the regular course of business.

If a permit expires and the permittee has made no application for renewal, or the Commission decides not to reissue the permit, the permittee shall be given a period of ten (10) days after the expiration of the permit within which to make a sale of the alcoholic beverages then on hand to another permittee, and if a purchaser is found therefor, the permittee, before making sale of his stock of goods, shall comply strictly with the following procedures:

(1) A Written application on forms to be furnished by the Alcoholic Beverage Control Division shall be submitted for consideration by the Director, along with a complete and detailed inventory of all merchandise on hand.

(2) The application shall be signed by the holder of the license who desires to sell the merchandise and by the permit holder who desires to purchase said merchandise. No sale shall be made except to a retail establishment which has been duly licensed by the Alcoholic Beverage Control Division of the State Tax Commission.

(3) Sales or commitments to sell or purchase alcoholic beverages under the provisions of this regulation shall be made subject to the written approval of the Alcoholic Beverage Control Division.

(4) If the prospective purchaser is an on-premises retail permittee and the Director approves the purchase, for purposes of Section 27-71-5, Mississippi Code of 1972, the current wholesale value of the alcoholic beverages thus purchased shall be recorded just as any regular purchase of alcoholic beverages from the warehouse on the permittee's purchase records maintained in the Accounting Department of the Alcoholic Beverage Control Division.

In the event such permittee is not available to make a sale of the alcoholic beverages on hand, the same shall be picked up by the Alcoholic Beverage Control Division and the permittee given refund therefor at the then current wholesale price, unless the merchandise is damaged by excessive price markings, shop wear, or has old, faded and dirty labels, then the Director of the Alcoholic Beverage Control Division may determine the effect such damage will have on the stability of the returned alcoholic beverages and may adjust the refund to the permittee accordingly. The Division shall have the right to deduct Five Dollars ($5.00) per case for handling and transportation back to the warehouse in Gluckstadt, Mississippi.

License holders desiring to discontinue business prior to expiration of their alcoholic beverage permits shall surrender their permits for cancellation and may dispose of their stock under the conditions outlined in paragraphs numbered 1, 2, 3 and 4 above.

License holders who desire to return their stock to the ABC Division Warehouse in Gluckstadt, Mississippi, may return same at the discretion of the Commission, by a method prescribed by the Alcoholic Beverage Control Division at the then current wholesale prices as reflected in the Alcoholic Beverage Control Division Price List, but no refund will be made for special orders, novelty items contained in dual packaged products, ceramic decanters, holiday packages or delisted items or, the Permittee may dispose of his alcoholic beverage stock as outlined in paragraphs numbered 1, 2, 3 and 4 above. The Alcoholic Beverage Control Division will charge the permittee Five dollars ($5.00) per case, which charge will cover all handling, packaging, and return freight charges required in connection with the return of such alcoholic beverage stock to the A.B. C. inventory at the ABC Division Warehouse in Gluckstadt, Mississippi.

Applications to return alcoholic beverage stock to the ABC Division Warehouse or to sell the stock to another permittee must be filed with the Permit Section and approved by the Director of the Alcoholic Beverage Control Division.

If any county or judicial district which has heretofore voted to come out from under the prohibition laws of this state as provided in Section 67-1-11, Mississippi Code of 1972, Recompiled, shall vote to go back under the aforesaid prohibition laws of this state, the Alcoholic Beverage Control Division of the State Tax Commission shall have the right to take possession of all alcoholic beverages held in stock by all permittees within the aforesaid county or judicial district before the effective date of the order of the board of supervisors putting into effect the result of said election, and shall make refund at the then current wholesale price thereof to the aforesaid permittees, less a Five Dollar ($5.00) per case charge for handling and transportation back to the warehouse in Gluckstadt, Mississippi, but all license fees theretofore paid by such permittee shall be forfeited.

However, the provisions of this regulation which provide for a credit for merchandise returned to the warehouse shall not apply to those permittees making purchases of delisted items, novelty items contained in dual packaged products, ceramic decanters, holiday packages or special orders. Such special merchandise shall not be redeemed by the State of Mississippi under any circumstances. All redeemed inventory will be placed in the ABC inventory.







REGULATION NO. 11

(Rescinded)







REGULATION NO. 12

(As Amended 8/7/89)

HOURS AND DAYS DURING WHICH ALCOHOLIC BEVERAGES MAY BE SOLD BY HOTELS, RESTAURANTS, CLUBS, PACKAGE STORES AND CATERERS



On-premises permittees or clubs or caterers may make sales of alcoholic beverages at the permitted location between the hours of 10:00 a.m. and midnight, except that no sales or deliveries of alcoholic beverages shall be made to any person on Sundays. It is further provided that on New Year's Eve, on-premises permittees and clubs may be allowed to remain open until 1:00 a.m., January 1st. In the event that New Year's Eve falls on Sunday, on-premises permittees and clubs may make sales of alcoholic beverages at the permitted location between the hours of 1:00 p.m. and 1:00 a.m.. Provided, however, the governing body of any municipality may petition the State Tax Commission to permit sales by on-premises permittees or clubs located within the municipality at other times, and also the hours of sale may, with the approval of the State Tax Commission, be either shortened or extended. In the event that a municipality or county would prefer not to recognize the extension of hours on New Year's Eve when the holiday falls on Sunday, the municipality or county shall notify the Alcoholic Beverage Control Division Enforcement Section, in writing, no later than September 1 of that year. The Board of Supervisors of any county may file such a petition with the State Tax Commission for on-premises permittees or clubs located outside a municipality. All such petitions must be accompanied by a certified copy of the order of the municipal governing authority or the Board of Supervisors requesting such permission.

Resort areas are exempt from the above provisions requiring the sale of alcoholic beverages to be between the hours of 10:00 a.m. and midnight. However, the governing body of any municipality may petition the State Tax Commission to designate the hours of sale of alcoholic beverages for resort area on-premises permittees or clubs located within the municipality. The Board of Supervisors of any county may also file such a petition with the State Tax Commission for resort area on-premises permittees or clubs located outside a municipality. Upon receipt of the above-mentioned petitions, or upon its own motion, the Commission shall consider the same and set whatever hours of sale it deems appropriate for any particular resort area. All such petitions must be accompanied by a certified copy of the resolution of the municipal governing authority or the Board of Supervisors requesting such permission.

It shall be unlawful for any holder of a package retailer's permit (or any employee or agent thereof) to sell, give away, deliver or barter any alcoholic beverages before 10:00 a.m. and after 10:00 p.m., or on any Sunday, or on Christmas Day.







REGULATION NO. 13

(As Amended 8/25/95)

PURCHASE AND SALE OF DISTILLED ALCOHOLIC BEVERAGES BY ON-PREMISES PERMITTEES

All sales of alcoholic beverages by on-premise permitted places of business shall be made by the drink, EXCEPT bottles of distilled alcoholic beverages which may be sold as follows:

(1) At such businesses being operated in connection with hotels and motels, which may sell such beverages in bottles for delivery to and consumption in rooms of registered guests.

(2) On-premises retailer clubs may sell exclusively to its members such beverages in bottles for delivery and consumption only upon the club's permitted premises. Each bottle must clearly reflect thereon the club member's name who purchases the bottle.

(3) Wine and champagne which may be sold by any on-premises permittee by the bottle for consumption exclusively in the permitted place of business.

All sales of alcoholic beverages by on-premises permittees shall be consumption in the licensed premises only. The licensed premises shall consist of the area designated in the floor plan. In the event that a permittee has multiple permits for a business establishment and there is controlled access to all areas of the establishment, the permittee may submit an all-inclusive floor plan of the entire enclosed area. The Commission shall have the discretion to allow the consumption of alcoholic beverages throughout the permitted area regardless of where on the premises the beverages are purchased as long as the Commission is satisfied that the permittee is the actual owner of the entire premises and that there is sufficient controlled access to the premises.

No on-premises permittee shall sell or allow consumption of alcoholic beverages inside the premises where the business is conducted, such as the lounge, bar or restaurant, except during hours when alcoholic beverages may be legally sold, as set forth in Regulation No. 12. However, alcoholic beverages may, with prior written approval from the Commission, be consumed during other hours as a permittee-sponsored Christmas party for his employees; or on Sunday after 1:00 p.m., in a privately leased banquet room of a permittee. An application, in writing, stating the date, beginning and ending time of the event, the number of employees (or persons, when applicable) anticipated to attend, and a copy of the lease agreement (when applicable) must be submitted to the Commission by the permittee at least ten (10) days prior to said Christmas party or lease agreement. Christmas parties are restricted to permittee, employees and their companions.

No on-premises permittee shall allow alcoholic beverages to be brown-bagged by a consumer/customer on the premises where the business is conducted. However, this restriction does not apply to privately-leased banquet rooms. If a private banquet room is leased to an individual and said individual desires to bring his own alcoholic beverages (brown-bagging), the permittee is strictly prohibited from furnishing, selling and/or storing alcoholic beverages on the leased area. On Sundays, when the Commission specifically authorizes consumption as herein above set out, a consumer may ONLY brown-bag alcoholic beverages previously obtained from a package retailer in this State. All alcoholic beverages remaining in a leased banquet room after the expiration of the lease shall be destroyed by the permittee.

No on-premises permittee shall be allowed to purchase distilled alcoholic beverages in any containers small than seven hundred fifty (750) milliliters. However, an on-premises permittee may purchase, in one serving container, pre-mixed alcoholic beverages; on-premises hotel permittees may purchase 50 ML bottles for deliver to and consumption in rooms of registered guests; and common carrier permittees and club permittees may purchase 50 ML bottles for deliver to and consumption within the area designated in their floor plan.

On-premises permittees operating a hotel or motel that elects to place mini bars in the rooms of registered guests are held responsible for keeping the mini bars locked with the issuance of keys restricted to guests who present a valid identification card verifying that he or she is over 21 years of age. Only the following alcoholic beverages may be used to stock the mini bars, and the permittees may purchase for purposes of stocking the mini bars: 50 ML bottles of distilled alcoholic beverages, 187 ML bottles of wine and champagne and/or single serving containers of pre-mixed alcoholic beverages. Additionally, beer and light wine products may be stored in the min-bars if the permittee holds a valid license for the sale of beer and light wine products.

No permittee may refill any alcoholic beverage container with an alcoholic beverage.

When a patron requests a specific brand of alcoholic beverage, no permittee may dispense an alternate brand of alcoholic beverage without first notifying the customer that the requested brand is not available.



REGULATION NO. 14

(As Amended 11/7/72)

RETAILER'S RECORDS

Retailer's must keep records. It will be the duty of every retailer of alcoholic beverages to keep and preserve for a period of three (3) years adequate records of the gross income, gross receipts, or gross proceeds of sales of business, including itemized invoices for all merchandise purchased (and whether procured from local or other retail or wholesale outlets, all itemized purchase invoices and tickets shall bear the date of purchase, name of the seller and purchaser), all bank statements and canceled checks, and all other books or accounts as may be necessary to determine the financial position of the business. Cash register tapes may not be used in lieu of itemized invoices for record purposes. In addition to the above records, restaurants shall keep gross sales in three (3) separate accounts; food, beer and alcoholic beverages. Said records shall be adequate in substance to conform with generally accepted accounting practices and all of such records shall be written in the English language. All records shall be open for examination at any time by the Director, any member of the State Tax Commission, or their duly authorized agent.

The records provided for in this regulation and applicable Federal regulations shall be kept at the retailer's place of business or at the office of his attorney or accountant within this state. Failure to keep and allow examination of such records shall subject the permittee to immediate forfeiture of license.







REGULATION NO. 15

(Rescinded)







REGULATION NO. 16

(As Amended 7/22/87)

PROHIBITED CONDUCT AND ACTIVITIES

No person holding an alcoholic beverage retailer's permit, and no agent, associate, employee, representative, entertainer or servant of any such permittee shall do, or permit, any of the following activities or events on or about the licensed premises:

(1) Fraternize by sitting at tables with customers while on duty; or to employ persons to solicit patrons for drinks AND to accept drinks from patrons AND receive therefore a commission or any other renumeration in any other way.

(2) Permit any prostitution to frequent the licensed premises, or to solicit patrons in for prostitution.

(3) Permit any person to remain on the premises while such person is unclothed or in such attire, costume or clothing to expose to view any portion of the female breast below the top of the areola or any portion of the public hair, the public hair area, anus, cleft of the buttocks, vulva or genitals. Furthermore, no female permittee or any female agent, associate, employee, representative, servant, or entertainer of said permittee shall wear such attire, costume or clothing on the licensed premises which reveals any part of the female breast AND such attire, costume, clothing or attachment thereto is extraordinarily designed or displayed to specifically accentuate the breasts.

(4) Encourage or permit any person, for entertainment purposes, to touch, caress or fondle the breast, buttocks, anus or genitals of their own, or those of any person, animal or inanimate object.

(5) Permit any person to wear or use any device or covering, exposed to view, wich simulates the breast, buttocks, anus or genitals of their own, or those of any person, animal or inanimate object.

(6) Permit live entertainment or conduct which is lewd, immoral or offensive to public decency, including:

(A) Any live act or performance of, or which simulates:

(I) Sexual intercourse, masturbation, sodomy, bestiality, or oral copulation, flagellation or any sexual act prohibited by law.

(ii) The touching, caressing or fondling of the breast, buttocks, anus or genitals.

(iii) The displaying of the public hair, the pubic hair area, anus, vulva, genitals or any portion of the female breast below the top of the areola.

(iv) The use of any artificial devise or object to depict any of the prohibited activities described above.

(B) Any live act or performance which appeals primarily to sexually oriented, lustful, prurient or erotic interest including, but not limited to, the following: erotic dancers; male or female strippers; topless dancers (male or female); dancers where clothes are removed to reveal portions of the body AND constituting a strip act or simulation thereof; contests or exhibitions such as wet t-shirt, biggest breast, biggest bulge, body beautiful, best leg, hairiest chest, best tan, best hiney, mud wrestling, tight jeans, and contests or exhibitions involving the use of swim wear, lingerie or similar attire.

(7) The showing of films, still pictures, electronic reproduction, or other visual reproductions depicting:

(A) Acts, or simulated acts, of sexual intercourse, masturbation, sodomy, bestiality, oral copulation, flagellation, or any other sexual acts which are prohibited by law.

(B) Any person being touched, caressed or fondled on the breast, buttocks, anus or genitals.

© Scenes wherein a person displays the vulva, anus or genitals.

(D) Scenes wherein artificial devices or inanimate objects are employed to depict, or drawings are employed to portray, any of the prohibited activities described above.

(8) Allow disorderly or boisterous conduct or the use of profane or vulgar language; provided this regulation shall not apply to remarks made by entertainers/entertainment groups in the course of their performance unless otherwise prohibited by the laws of the State of Mississippi, and as long as:

(A) The performance takes place in a portion of the licensed premises which has a sign conspicuously posted at each entrance, advising the public choosing to enter the portion of the premises of the nature of the performance and that certain words or phrases used maybe considered offensive or insulting by some persons, and

(B) That any use of profane language, addressed in paragraph (8) above, is not so amplified as to be clearly and distinctly audible in other areas of the licensed premises or beyond the premises.

(9) On-premises permitted places of business may charge an admission fee, a cover or minimum charge, or an entertainment fee but shall not require the purchase of alcoholic beverages in order for a customer to enter or remain in such permitted place.

The permittee shall be responsible at all times for any and all of the aforesaid actions which may take place in any permitted establishment whether he or his manager is present at such times or not. The Commission may revoke or suspend the license of any permittee for the violation of any of the provisions of this regulation. Any questions regarding the permissibility of activities or conduct governed by this regulation should be submitted, in writing, to the Director of the Alcoholic Beverage Control Division.

It is the intent of the Commission that each and every part of this regulation is independent from the other; that each could stand alone; and to this end the provisions of this regulation, and parts thereof, is severable.







REGULATION NO. 17

(As Amended July 1, 1992)

EMPLOYMENT OF PERSONS UNDER 21 PROHIBITED

No holder of a package retailer's permit shall have in his employ in the sale of alcoholic beverages or in the handling thereof (except to unload in sealed cartons, boxes, or similar shipping packages, which packages shall remain sealed at all times they are being handled) any person under the age of twenty-one(21) years old.

Notwithstanding the foregoing, a person who is at least eighteen (18) years of age but under the age of twenty-one (21) years who waits on tables by taking orders for or delivering orders of alcoholic beverages shall not be deemed to unlawfully possess or furnish alcoholic beverages if in the scope of his employment by the holder of an on-premises retailer's permit. This exception shall not authorize a person under the age of twenty-one (21) to tend bar or act in the capacity as a bartender. This regulation is not intended to prohibit a person under twenty-one (21) from working as an entertainer.







REGULATION NO. 18

(As Amended 11/28/90)

TEMPORARY AND QUALIFIED RESORT AREAS

1. Temporary Resort Area:

A. The Commission is authorized to approve a certain area or locality outside the limits of an incorporated municipality as a temporary resort area if the particular location is in the process of being developed as a qualified resort area. Approval of this type of resort designation is contingent upon the applicant's submitting the following:

(1) A resolution from the Board of Supervisors of the county where such proposed area is located. The resolution must specifically state that the Board is of the opinion that the area in question is in the process of being developed as a resort area. In addition, the resolution must set forth the basis for the Board's conclusion.

(2) A map clearly marked to indicate the specific area under consideration.

(3) A list of steps taken or to be taken in developing the area as a qualified resort area.

(4) Endorsements by civic clubs in the area under consideration.

(5) Assurance from the Sheriff of the area that he will enforce the Local Option Alcoholic Beverage Control Laws of the State of Mississippi, and the rules and regulations of the Alcoholic Beverage Control Division in such area.

(6) Proof of publication of legal notice and all public opinion responses. Legal notice must be printed once each week for two consecutive weeks in a newspaper having general circulation in the area. The notice must state that an application for classification as a temporary resort area is being filed, the contents of the application, and a request for public opinion from residents in the area under consideration, and that approval will permit the operation of open bars in the area.

B. The temporary resort area designation is for a term of one year. Prior to the expiration of the year period, the applicant must establish and prove that the proposed area meets all of the statutory qualifications for a qualified resort area.

2. Qualified Resort Area:

A. A qualified resort area must be clearly established, understood and agreed upon by the resort area community. A community may be considered for a qualified resort area classification by the State Tax Commission by submitting a proper application.

B. The application may be submitted by the President of the Board of Supervisors or the Mayor or Mayors of the municipality or municipalities affected. In the event the President of the Board of Supervisors or the Mayor refuses to submit such application, the same may be submitted by not less than 100 adult citizens of the community to be affected, and shall in each instance include the following items:

(1) A map clearly marked to indicate the specific area under consideration.

(2) Reasons why the particular area should be classified as a qualified resort area.

(3) Endorsements by civic clubs in the area under consideration.

(4) Assurance from the Sheriff or Sheriffs of the area that he will enforce the Local Option Alcoholic Beverage Control Laws of the State of Mississippi, and the rules and regulations of the Alcoholic Beverage Control Division in such area. If the area is located within a municipality, such assurance shall also be given by the Chief of Police of such municipality or municipalities.

(5) A certified copy of the order or orders as entered on the minute books of the governing body.

(6) Proof of publication of legal notices and all public opinion responses. Legal notice must be printed once each week for two consecutive weeks in a newspaper having general circulation in the area. The notice must state that an application for classification as a qualified resort area is being filed, the contents of the application, and a request for public opinion from residents in the area under consideration, and that approval will permit the operation of open bars in the area.

C. Adjacent or affected areas may either join in or file objections to the application with the Commission.







REGULATION NO. 19

(As Amended 8/27/79)

ADMINISTRATIVE PROCEDURE BEFORE THE STATE TAX COMMISSION ON THE ALCOHOLIC BEVERAGE CONTROL STATUTES

All applications for permits shall be investigated under the direction of the Director of the Alcoholic Beverage Control Division of the State Tax Commission. If such investigation fails to reveal any reason why the permit should not be issued to the applicant, the aforesaid permit shall be issued by the Commission without further administrative procedure.

If the investigation of the application reveals sufficient grounds, which, in the opinion of the Director of the Alcoholic Beverage Control Division of the State Tax Commission or the said Commission, would justify the refusal to issue the permit, the applicant should be so notified.

If objection is filed to any applicant being issued a permit, investigation shall be conducted concerning the validity of such objection. If any person objects to any applicant being issued a permit and requests in writing that a hearing be granted thereon, the Commission, may in its discretion, grant a hearing before such applicant is awarded a permit. All of such hearings may be held either in the City of Jackson or at some other place in the State of Mississippi designated by order of the State Tax Commission.

All hearings conducted by the State Tax Commission in regard to any phase of the administration of the statutes dealing with the control of alcoholic beverages under its statutory control shall only be held after minimum notice of at least ten (10) days has been given to all interested parties of the time and place of such hearing. Such notice shall be given by registered or certified mail.

All hearings shall be taken down either in shorthand or by tape recorder, or both, and any party aggrieved by the decision of the State Tax Commission shall have a period of thirty (30) days after the decision of the State Tax Commission within which to appeal therefrom. A copy of the decision of the State Tax Commission shall be sent by registered mail, return receipt requested, to each party applying for a permit or whose permit is sought to be canceled and by regular mail to each party asking for a hearing thereon in writing, but the running of the time for appeal shall commence with the date of the aforesaid order and not from the date of its receipt by such interested parties.

Notice of appeal from any hearing shall be directed to the Chairman of the State Tax Commission.

All persons testifying before the Commission shall be first sworn to tell the truth by a person qualified to administer oaths under the Laws of this State.

The rules of evidence shall apply in all hearings before the Commission but may be relaxed by the Commission in unusual circumstances in order for the Commission to ascertain all facts in issue. Examination of witnesses shall be conducted for and on behalf of the State Tax Commission by an assistant attorney general or some person in the Legal Section of the Alcoholic Beverage Control Division of the State Tax Commission. When neither party to the hearing is represented by counsel, the aforesaid assistant attorney general or person in the Legal Section of the Alcoholic Beverage Control Division of the State Tax Commission shall examine all parties and witnesses for the purpose of fully developing the facts in the particular proceeding, but if any party is represented by counsel, the aforesaid attorneys for the State Tax Commission shall take the position opposed to such attorneys in said hearing for the purpose of bringing all matters connected therewith to the attention of the Commission.







REGULATION NO. 20

(As Amended 7/1/92)

APPEAL FROM ADMINISTRATIVE DENIAL OF PERMIT, RESORT AREA APPLICATION, MANAGER APPLICATION, OR EMPLOYEE IDENTIFICATION CARD

Whenever the Commission, administratively, and without a hearing, denies a permit for sale of alcoholic beverages, or denies an application to designate a certain area as a qualified resort area, or denies a manager application or denies or revokes an employee identification card, the denial of such application shall not become effective for a period of 15 days thereafter, during which time any interested person may request a full evidentiary hearing before the Commission. In the absence of such request, the initial administrative determination shall stand and the right of appeal shall be denied.

Hearings by the State Tax Commission, and any appeal therefrom, shall be conducted pursuant to Regulation No. 19. Another application from an applicant who is aggrieved at any decision of the Commission shall not be reconsidered within a 12-month period.







REGULATION NO. 21

POSTPONEMENTS, CANCELLATIONS, AND CONTINUANCES OF HEARINGS

Hearings may be postponed or canceled by the Chairman of the State Tax Commission.

Persons requesting such postponement or cancellation are under a duty to contract the Chairman at the earliest possible time prior to the scheduled hearing.





REGULATION NO. 22

(As Amended 12/8/82)

UNIFORM PRICES

Alcoholic Beverages will be sold by the Alcoholic Beverage Control Division at uniform prices throughout the state. Prices of alcoholic beverages as published by the Alcoholic Beverage Control Division are f.o.b. retailer and contain all taxes with the exception of the Mississippi sales tax and the warehouse surcharge.







REGULATION NO. 23

COOKING WINES

All wines containing more than four percent (4%) alcohol by weight are considered an alcoholic beverage and shall be possessed, transported, sold, purchased, etc., in accordance with and under the provisions of the Local Option Alcoholic Beverage Control Law, except salted wines which contain not in excess of twenty-one percent (21%) alcohol by volume and not less than 1.5 grams of salt per 100 cubic centimeters. Such wines are not considered capable of being consumed as a beverage by a human being and, therefore, are except from the provisions of the Local Option Alcoholic Beverage Control Law.





REGULATION NO. 24

(As Amended 8/27/79)

CASH PAYMENTS

Alcoholic beverages shall be sold by the Alcoholic Beverage Control Division to retailers for cash or by bank check, cashier's check, bank exchange, post office money order, or express money order. Retailer's must send payment with their written purchase orders on forms to be supplied by the Alcoholic Beverage Control Division.

If the permittee has more than one check returned for nonpayment because of insufficient funds, the permittee will be required to pay for his orders of alcoholic beverages with certified funds for a period of at least one year. At the end of said one year period, the permittee must then make application to the Director to be allowed to return to the use of regular bank checks.

In addition, the Division will draft upon the permittee's bank account for the amount of each invoice if proper authorization is received by the Division from the permittee and his bank.







REGULATION NO. 25

(Rescinded)







REGULATION NO. 26

(As Amended 8/1 /93)

COMMON CARRIERS REPORTING

Common carriers, in lieu of purchasing alcoholic beverages for resale from the Alcoholic Beverage Control Division, must file a Common Carrier Reporting Form (ABCD-4001). These common carrier reporting forms and the total amount due must be filed by the 20th of the month for the preceding month. The report will be audited as required by the Alcoholic Beverage Control Division.

A common carrier must maintain detailed records that reflect where alcoholic beverages were purchased, the purchase price, the date of the purchase and the taxes paid or to be paid if the alcoholic beverages were purchased from a source (i.e. wholesaler or ship chandler) other than the Commission. The records and inventory of alcoholic beverages shall be open to inspection by the Director of the A.B.C. or any duly authorized agent at any time.

If common carriers purchase the alcoholic beverages they sell while traveling through the State of Mississippi from the Alcoholic Beverage Control Division, Common Carrier Reporting Form ABCD-4001 does not have to be filed.

Alcoholic beverages can only be served and/or consumed while inside the permitted common carrier. While stopped in a dry county, common carriers are prohibited from serving alcoholic beverages or allowing the consumption of alcoholic beverages.

In the event that a common carrier has multiple permits for a business establishment, the common carrier may store alcoholic beverages in a common storage facility as described and regulated in Regulation 7, if and only if the alcoholic beverages were purchased directly from the Commission.





REGULATION NO. 27

(Repealed)







REGULATION NO. 28

SPLIT CASES

A number of sizes of selected items will be subject to split case sales. These items will be noted on the price lists published by the Alcoholic Beverage Control Division. Less than full cases of alcoholic beverages can be sold by the Alcoholic Beverage Control Division to retailers. The current price list will contain instructions for ordering split cases.





REGULATION NO. 29

(As Amended 10/5/94)

SPECIAL ORDER PROCEDURES

Special orders for any and all types of alcoholic beverages not currently listed on ABC price list and not prohibited by Regulation No. 13 may be placed by package or on-premises permittees in case lots only, excluding ceramic decanters which may be ordered only by package retailers. A Mississippi Native Wine Tax Stamp must be placed on all bottles or contains or native wine. See Native Wine Regulation No. 3.

Special orders will be received by the Alcoholic Beverage Control Division Purchasing Department and processed as promptly as feasible.

The Purchasing Agent of the Alcoholic Beverage Control Division will obtain the prices from the supplier and use the regular pricing formula in arriving at wholesale prices to be submitted to the permit holder. Upon receipt of the quotation, the permit holder may place a firm order with the Purchasing Agent attaching his remittance to cover the entire cost.

In addition, the provisions of Regulation No. 10 dealing with the return of merchandise by permittees to the Alcoholic Beverage Control Division Warehouse shall not apply to special order merchandise. Such special order merchandise shall be redeemed by the State of Mississippi ONLY as dry concealed damage as set forth in the Alcoholic Beverage Control Price List Book.

The Purchasing Agent is authorized to promulgate procedure details to effectuate the purpose of this regulation.







REGULATION NO. 30

RESTRICTION OF INTEREST OF PERMITTEES AND DIVISION EMPLOYEES

No officer, agent, or employee of the Alcoholic Beverage Control Division of the State Tax Commission, nor any permittee shall at any time hold stock in any business engaged in the manufacture, distillation, importation or rectifying of alcoholic beverages, nor shall such person, other than the holder of a permit, own any interest in any place of business licensed to sell alcoholic beverages.







REGULATION NO. 31

(As Amended 8/13/92)

MANUFACTURER'S REPRESENTATIVE

A manufacturer's representative, who shall be the manufacturer's control state manager or an executive officer of the company, shall be recognized by the Alcoholic Beverage Control Division of the State Tax Commission only after proper application for registration has been made by the manufacturer and approved. In either case, the individual designated as a manufacturer's representative and approved to do business with the Alcoholic Beverage Control Division must be a full-time employee of the manufacturer.

The manufacturer's registered representative may authorize persons to work for the manufacturer within this state each of whom must be registered with the alcoholic beverage Control Division. Before the Commission shall permit the registration of any such employee, the manufacturer shall submit a copy of the employment contract of such person to the Commission for its approval. No person, firm, or corporation, other than a manufacturer's registered representative shall represent any manufacturer within this state in any capacity until his contract of employment has been approved by the State Tax Commission at least 10 days prior to his employment. As employees are added or replaced it will be the responsibility of the manufacturer to register or have deleted the names of such employees with the Alcoholic Beverage Control Division of the State Tax Commission. Such employees may represent more than one manufacturer.

The manufacturer's registered representative shall be held responsible for all activities, including the personal conduct, of all employees of the manufacturer in connection with the representation of their business in this state. Every employee or representative of a manufacturer shall observe state laws and the rules and regulations of the Alcoholic Beverage Control Division of the State Tax Commission.

The registration of a manufacturer's representative and his employees, or any number thereof, may be suspended and the manufacturer's products may be delisted by the Director of the Alcoholic Beverage Control Division and/or a civil penalty not to exceed $1,000.00 may be imposed at the direction of the Commission if it shall appear to be satisfaction of the Commission that the law or the policies and/or regulations of the Alcoholic Beverage Control Division of the State Tax Commission have been violated by the manufacturer, the manufacturer's registered representative, or any employee of the manufacturer working in this state.

This regulation shall not prohibit such manufacturer employing counsel regularly engaged in the practice of law in matters that rightly deal with the legal interpretation of the law.

A distiller's, distributor's, rectifier's, or importer's representative or employee shall be recognized under the same conditions established in this regulation for a manufacturer's representative.

This regulation shall be in force and take effect on and after the 1st day of December, 1968.





REGULATION NO. 32

(As Amended 8/16/96)

GIFTS, GRATUITIES, AND INDUCEMENTS

(1) pursuant to Miss. Code Ann. Section 67-1-77(2) no holder of a manufacturer's or wholesaler's permit, or anyone connection with the business of such holder, or for any other distiller, wine manufacturer, brewer, rectifier, blender, or bottler shall make an offer of gifts, gratuities, or inducements of any kind whatsoever to any retailer in Mississippi when such gifts or gratuities are in any way connected with or associated with any phase of the purchase, sale, marketing, distribution or control of alcoholic beverages within the State of Mississippi, except as authorized herein.

(2) The holder of a manufacturer's or wholesaler's permit, or any distiller, wine manufacturer, brewer, rectifier, blender, bottler, or anyone connected with such businesses, may however furnish, subject to the same requirements and limitations of the Federal Tied House Regulations and Interpretations thereof and not otherwise contrary to state law, the following: wine list; glassware; retailer equipment; inside signs; supplies; services; educational seminars; product displays; and advertising specialities to Mississippi alcoholic beverage retailers, not to exceed nominal value, as provided hereafter:

Educational seminars, trade shows or tasting events for licensed retailers sponsored by any employee or registered agent of any alcoholic beverage manufacturer, distiller or wholesaler, are permissible at licensed on-premise establishments, establishments holding one day temporary permits, or at conventions sponsored by and on behalf of alcoholic beverage retail associations. All alcoholic beverages consumed at such seminars, trade shows or tastings, other than approved conventions, MUST be furnished exclusively by the on-premises permittee on his licensed premises. Consumption of alcoholic beverages at ALL seminars, trade shows and tasting events is limited to the hours of consumption set forth in ABC Regulation No. 12.

Any educational seminar, trade show or tasting event given the general public (where alcoholic beverages are sampled), regardless of who sponsors the program, is limited to the licensed on-premise establishments, or an establishment holding a one-day temporary permit, with the permittee exclusively furnishing the alcoholic beverages.

Any person sponsoring an alcoholic beverage seminar or trade show occurring at a location in a "wet" county NOT possession anyone premise alcoholic beverage license or a one-day temporary permit shall not distribute samples for tasting purposes or any other purpose.

(3) Alcoholic beverage samples, coupons, rebates or other inducements, which require proof of purchase, to anyone are strictly prohibited. Nothing in this regulation is intended to prohibit the type of activity permitted by ABC Regulation No. 33 and Regulation No. 51.

(4) Nominal value, as used in this section, shall be based on a per brand basis and shall mean the industry's purchase price or a reasonable wholesale value not to exceed the dollar limitations placed on said or like items pursuant to the Federal Tied House Regulations and adjustments made by the Director of the Bureau of Alcohol, Tobacco and Firearms.

(5) Deleted

All records shall be open for examination at any time by the State Tax Commission or its duly authorized agents.







REGULATION NO. 33

(As Amended 10/4/95)

SAMPLES OF ALCOHOLIC BEVERAGES

1. A manufacturer's representative and his employees, as described in Regulation No. 31, may furnish one sample of a new product to any ABC licensed retailer. This sample may be given to the permittee to a manager on behalf of the permittee. Distribution of samples may occur only at the permitted business. Samples are to be used for the promotion of that specific product and may not be used as a gift or an inducement to purchase other products.

2. A sample of an alcoholic beverage is defined as an alcoholic beverage not previously purchased by that permittee and may not exceed the following size limit per item:

--- One (1) 500ml bottle or less of distilled spirits

--- One (1) 3 liter bottle or less of wines

3. Each bottle of product distributed as a sample must have clearly stamped or printed upon the label the word "SAMPLE."

4. Products used for samples must be delivered to the Liquor Distribution Center for distribution to the manufacturer's representative. The cases containing sample alcoholic beverages must be marked or stamped on at least two (2) sides of the case in bold letters with the word "SAMPLE" by the manufacturer prior to shipment. A separate Bill of Lading must accompany each case of sample alcoholic beverages and the word "SAMPLE" must be clearly marked on said Bill of Lading. Samples must be removed from the LDC within 10 working days of receipt thereof. Failure of the manufacturer's representative to remove samples from the LDC upon the expiration of ten (10) days will result in destruction of said products. The ABC will not be responsible for any damages occurring while said products are stored in the warehouse.

The manufacturer's representative is responsible for paying all freight costs, excise taxes, and any other costs assessed on sample products upon receipt of that product from the ABC Distribution of any product on which taxes are due is strictly prohibited.

5. The manufacturer's representative and his employees shall, on or before the fifteenth day of each month, file form ABCD2BR (6/92), with the ABC Enforcement Division detailing the distribution of sample products for the preceding month. This report must also include the storage location and amount, by brand, of all sample alcoholic beverages held by the manufacturer's representative or his employees pending distribution.

6. The willful failure to file such reports, the falsification of such reports, or the distribution of product samples inconsistent with the law or with this regulation may result in the suspension of the registration of a manufacturer's representative and his employees. In addition, the Commission may delist the manufacturer's products.

7. A manufacturer's representative, or his employee, may transport sample alcoholic beverages provided that such person has obtained authorization for transport from the Alcoholic Beverage Control Division. Such products must be stored outside the passenger compartment of a motor vehicle or in an enclosed container.

8. (a) Package retailers may not consume samples of alcoholic beverages on their licensed premises.

(b) On premises retailers, their managers, and their employees, may consume sample alcoholic beverages only during legal hours of sale and in an area removed from the general public. The manufacturer's representative must be present during sampling.

© An on-premises permittee may assemble other permittees, along with their licensed managers employees, for purposes of sampling alcoholic beverages. Consumption of sample alcoholic beverages must take place during legal hours of sale and in an area removed from the general public. The manufacturer's representative must be present during sampling.

9. No alcoholic beverage products distributed as samples may be sold, offered for sale, or distributed to any person by any permittee, manager, or employee of the permittee.







REGULATION NO. 34

(As Amended 8/27/79)

DISTRIBUTION

No one except the holder of a permit or his authorized agent shall be allowed to purchase or request the shipment of alcoholic beverages by the Alcoholic Beverage Control Division of the State Tax Commission.







REGULATION NO. 35

(As Amended 1/2/94)

IMPORTERS', VINTNERS', AND DISTILLERS' WAREHOUSES

Importers, vintners and distillers may warehouse and store special purchase item alcoholic beverages which are not listed on the current alcoholic Beverage Control Price List, in private bonded warehouses in Mississippi, for the ultimate use and benefit of the State Tax Commission, by obtaining prior approval from the State Tax Commission. Bonded warehouses may be owned or operated by any entity which posts the required bond hereinafter set out.

Before any entity shall engage in warehousing and storage, a Ten Thousand Dollar ($10,000) Bond must be tendered to and approved by the Alcoholic Beverage Control Division of the State Tax Commission, thereby insuring that the entity will strictly comply with all laws, rules and regulations of the State, and shall pay all taxes due the State of Mississippi.

No alcoholic beverages shall be shipped into the State of Mississippi for storage in a private bonded warehouse without the prior written authority of the Alcoholic Beverage Control Division of the State Tax Commission. An itemized list of all shipments to such warehouse shall be furnished to the A.B.C. by the importer, vintner or distiller. The importer, Vintner or distiller must affix the proper Mississippi A.B.C. item code label to each case shipped for storage. Within 24 hours of the receipt of the shipment, the private bonded warehouse, shall provide A.B.C. with an itemized list of the alcoholic beverages received and the condition of the inventory. All such shipments must be for sale only to the Alcoholic Beverage Control Division of the State Tax Commission.

No withdrawal from inventory shall be permitted from bonded warehouses for shipment outside the State of Mississippi, unless special permission is obtained from the Director of the Alcoholic Beverage Control Division of the State Tax Commission.

Shipments from a private bonded warehouse to the Liquor Distribution Center must be by common carrier unless prior written approval of an alternate shipper is obtained in writing from the Director of the Alcoholic Beverage Control Division of the State Tax Commission. All shipments to the Liquor Distribution Center must be accompanied by a standard bill of lading with the following additional information: the number of cases shipped, a description of the product(s) shipped, and the Mississippi ABC item code for the product(s) shipped, and the Mississippi ABC item code for the product(s) shipped. Cases shipped from a private bonded warehouse to the Liquor Distribution Center will be inspected by the ABC staff and refused if the shipment contains unlabeled/uncoded cases, damaged cases, or misshipped cases.

Shipments from a private bonded warehouse to the Liquor Distribution Center will be limited to one day per week, said day to be designated by the Director of the Alcoholic Beverage Control Division of the State Tax Commission.

No alcoholic beverage samples shall be shipped into, stored, or shipped out of a private bonded warehouse.

Each private bonded warehouse shall store its inventory of alcoholic beverages in an area so designated by the warehouse for alcoholic beverages, and shall maintain the inventory in a salable condition at all times. The alcoholic beverages shall not be interspersed with other goods stored in the private bonded warehouse.

The private bonded warehouse's alcoholic beverage records and alcoholic beverage inventory shall be open for examination at any time by the Director or staff of the Alcoholic Beverage Control Division of the State Tax Commission. Failure to keep up to date, accurate inventory and shipment records or to allow examination of the records or the inventory shall subject the warehouse to the immediate suspension of its rights to ship to the Liquor Distribution Center.

All theft of alcoholic beverages must be immediately reported to the local authorities and to the ABC.

An inventory, certified by the bonded warehouseman with whom such alcoholic beverages are stored, shall be furnished the Alcoholic Beverage Control Division of the State Tax Commission within five (5) days after the close of business at the end of each calendar month.

The Director of the Alcoholic Beverage Control Division of the State Tax Commission is authorized to promulgate procedural details to effectuate the purpose of this regulation.

Importers, vintners and distillers are required to comply with all Federal guidelines and/or regulations.







REGULATION NO. 36

(As Amended 4/17/96)

PROCEDURE FOR LISTING ALCOHOLIC BEVERAGE ITEMS

New listing will be considered on May 1 of each year and at such other times as the Commission deems appropriate. All requests for listings must be submitted to the Director, in writing, at least three (3) months prior to the date chosen for the listing.

Each company, or agent thereof, shall submit to the Alcoholic Beverage Control Division the new items it wishes to list. All requests must be submitted, in writing, to the Director, and substantiated by facts and figures regarding prices, specifications, alcohol content and other relevant information requested.

The maximum number of items the Commission will authorize for anyone company shall be predetermined, based on a formula utilizing the number of codes presently listed by each company on the state's existing price list. The formula is as follows:



Codes Presently Listed New Items Allowed

0-10 2

11-15 3

16-20 4

21 OR MORE 5

NINE MONTH CASE SALES FORMULA



750 ML 500ML 100ML

1.75L IL 375ML 200ML 50MI

Bottled-in-bond and

Straight Bourbon

$0.00 to $12.00 90 45

$12.01 up 45

$0.00 to $5.00 180

$5.01 to $7.00 135

$7.01 to $9.99 90

$10.00 up 45

$0.00 to $4.00 180

$4.01 to $6.00 90

$6.01 up 45

$0.00 to $2.00 180

$2.01 to $4.99 90

$5.00 up 45

Whiskeys 180 180 180 180 45

Blended Whiskeys 90 180 180 180 45

Tennessee Whiskey 45 180 180 180 45

Irish Whiskey

$0.00 to $13.99 90 90 90 45

$14.00 up 45 45 45 45

Rye Whiskey 60 60 60 45

Canadian Whiskey

$0.00 to $15.99 90 45

$16.00 up 45 45

$0.00 to $7.99 180

$8.00 to $15.99 90

$0.00 to $4.00 180

$4.01 up 90

$0.00 to $2.50 180

$2.51 up 90

Scotch

$0.00 to $15.00 90 45

$15.01 up 45 45

$0.00 to $7.00 135

$7.01 to $15.00 90

$0.00 to $5.00 135 135

$5.01 up 90 90

Gin

$0.00 to $10.99 90 135

$11.00 to $14.49 45 90

$14.50 up 45 45

$0.00 to $2.99 135

$3.00 to $4.99 90

$5.00 up 45

$0.00 to $2.49 135 45

$2.50 up 90

Vodka

$0.00 to $10.99 90 135

$11.00 to $14.49 45 90

$14.50 up 45 45

$0.00 to $2.99 135

$3.00 to $4.99 90

$5.00 up 45

$0.00 to $2.49 135 45

$2.50 up 90

Flavored Vodka

$0.00 to $7.99 135 45

$8.00 to $11.99 90

$12.00 up 45

$0.00 to $4.99 90

$5.00 up 45

Flavored Gin 90 135 180 180 45

Rum

$0.00 to $7.99 90 135 45

$8.00 to $11.99 45 90

$12.00 up 45

$0.00 to $2.49 135 135

$2.50 up 90 90

Tequila

$0.00 to $10.99 90 135 135 45

$11.00 to $13.99 45 90 90

$14.00 up 45

$0.00 to $2.49 135

$2.50 up 90

Cocktails 90 135 135 135 45

Alcohol 90 90 90 45

Brandy 45 90 45 45 45

Cognac-Brandy

Imported

$0.00 to $12.00 45 90 45 45 45

$12.01 up 45

Brandy (Flavored) 45 90 90 45 45

Liqueur & Cordial

Domestic 45 45 45 45 45

Liqueur & Cordial

Imported 45 45 45 45

Specialty 45 45

Vermouth 45 45

10L 3L 355ML

12L 4L 1.5L 750ML 375ML

18L 5L 2L 1L 500ML 187ML

Still Wines and Sparkling Wines (Imported and Domestic)

$0.00 up 45 45

$0.00 to $0.99 90 90 90 90

$1.00 to $1.99 90 90 90 90

$2.00 to $2.99 90 90 45 45

$3.00 to $3.99 90 90 35 25

$4.00 to $5.99 90 45 25 25

$6.00 to $8.99 45 35 25 25

$9.00 up 45 25 25 25

The foregoing formula is based on cases actually sold to permittees and not based on cases ordered. Cases which are ordered by permittees, but not sold due to the fact that the product ordered is out of stock or for any other reason will not be considered in the application of this formula.

Furthermore, any special order item which meets or exceeds the nine (9) month case sales formula may at the Commission's discretion, be placed in the ABC Division's price list.

"One-of-a-Kind" and "Christmas" items are exempt from the quota requirements. No "Christmas" item shall contain cash, coupons, rebates, or any items subject to spoilage.

Price Changes will be considered four (4) times each year, and will become effective on the following dates: February 1, May 1, August 1, and November 1. Such changes to be considered for February 1, must be filed with the Alcoholic Beverage Control Division by December 1; for May 1, by March 1; for August 1 by June 1; and for November 1, by September 1.

A Mississippi Alcoholic Beverage Control Stamp must be placed on each bottle or container or native wine produced. See Native Wine Regulation No. 3.

The Director of the Alcoholic Beverage Control Division is authorized to promulgate procedural details, including a pricing formula, to effectuate the purpose of this regulation and to defray additional cost.







REGULATION NO. 37

(As Amended 6/1/92)

PROCEDURE FOR DELISTING/DELETING ALCOHOLIC BEVERAGES

Any items on the Alcoholic Beverage Control Division's price list will be delisted for failure to meet the nine (9) month case sales standard set out in Regulation No. 36; however, the Commission may, in its discretion continue to maintain an item in its price list provided the number of sales for the particular product constitutes ninety percent (90%) of the standard for that item, as stated in the nine (9) month case sales formula. Furthermore, the Commission reserves the right to delist any item as punishment for violation of any law or regulation or when, in its opinion, the best interest of the Alcoholic Beverage Control Division may be served.

The storage of items at the Liquor Distribution Center is strictly a voluntary act by its owner(s). The Commission retains the right, however, to regulate the location of all items placed in bailment. Failure of a company to either stock a bailment item within thirty (30) days after the effective date of the price list or failure of a commission may result in the delisting of the item.

Any bailment item voluntarily removed by the company, or delisted by the Commission, shall be removed from the State at the direction and under the control of the Commission. Delisted items must be removed from bailment within thirty (3) days from the date of delisting. Any item delisted will not be eligible for relisting for a minimum of one (1) listing period. Delisted items may, subject to Commission approval, be offered as a special order item, pursuant to Regulation No. 29.







REGULATION NO. 38

MANUFACTURER (RECTIFIER)

No manufacturer's (rectifier's) permit shall be issued, until satisfactory evidence is furnished the Commission that the applicant holds all permits or authorization required by the Federal government.

Duplicate copies of monthly returns, transcripts, notices or other data, as required by the Federal government, must be furnished the Alcoholic Beverage Control Division of the State Tax Commission not later than the 10th of each month. In addition thereto, such manufacturers (rectifiers) shall furnish the Alcoholic Beverage Control Division of the State Tax Commission duplicate copies of the bills of lading covering all shipments of the products of the permittee.

All laws and rules and regulations of the Federal government or any subsequent modification thereof, applicable to the manufacture (rectification) of distilled spirits, wines, cordials, liquors, etc.; are by reference hereby adopted and promulgated as the rules and regulations of the Alcoholic Beverage Control Division of the State Tax Commission.







REGULATION NO. 39

(As Amended 9/7/94)

IDENTIFICATION OF EMPLOYEES/QUALIFICATIONS OF MANAGERS

The permittee shall be responsible, at all times, for acts of his manager(s) and/or employee(s) which are in violation of the Alcoholic Beverage Control Laws, Rules and Regulations, and which take place in the permitted establishment, whether the permittee is present at such times or not.

Within five days of employment, all permittees must file with the Alcoholic Beverage Control Division, a personal history form, identified as ABCD-1001 I.D., social security number or other suitable identification number, and fingerprints of each prospective employee engaged in selling, mixing, restocking, serving, dispensing or handling of alcoholic beverages in any manner. Upon receipt of this information, along with a non refundable five dollar ($5.00) processing fee, the Alcoholic Beverage Control Division shall furnish a personal identification card for each. The employee identification card shall expire four (4) years from the date the card is issued. The replacement applications and renewal applications shall consist of the personal history form, ABCD-1001 I.D., and must be submitted within five (5) days of loss of card or within five (5) days of expiration of card. No original card application, replacement card application or renewal card application shall be processed prior to payment by certified funds, of the five dollar ($5.00) processing fee.

It is further provided that no individual shall receive or maintain an employee identification card when a past criminal conviction indicates a present unfitness to receive or maintain an employee identification card, the Commission may consider the following:

(a) The relationship between the nature and/or circumstances of the crime(s) for which the person was convicted and the nature of the particular position of employment involved, and

(b) The seriousness, number, or recent occurrence of the crime(s) for which the person wax convicted, and

© If the person has been sufficiently rehabilitated to perform the duties of the particular position of employment involved.

It is further presumed absent persuasive reasons to the contrary, the following:

(a) That any person who has neither been convicted of any felony within the period of three years immediately preceding an employment decision, nor has been incarcerated for any crime within the period of one year immediately preceding an employment decision has been sufficiently rehabilitated to perform that duties of any position of employment, and

(b) That it cannot appropriately be concluded that any person who has been convicted only of misdemeanor(s) is unsuited to perform the duties of any position of employment unless said misdemeanor conviction(s) involved illegal sale or abuse of alcoholic beverages.

It shall be the responsibility of every permittee to correctly maintain his employee records with the Alcoholic Beverage Control Division and to insure that each employee has in his/her possession the above-described employee identification card and to keep the same on their person while engaging in the selling, mixing, restocking, serving, dispensing or handling of alcoholic beverages in any manner.

Identification cards may only be used by the employee for whom it is issued. Identification cards may be suspended or revoked as a result of unauthorized use or other valid cause.

Prior to a proposed manager assuming managerial responsibility, the permittee must obtain approval of the manager from the Alcoholic Beverage Control Division. To obtain approval of the proposed manager the permittee must file the following forms:

(1) Application for change in manager's or assistant manager's name on alcoholic beverage license;

(2) Personal Record Form, ABCD-1001;

(3) Two (2) fingerprint cards;

(4) The applicable processing fee, in certified funds, for submission of fingerprints to the FBI.

In addition, each manager applicant must possess all the qualifications required of a permittee.







REGULATION NO. 40

(As Amended 8/27/79)

QUALIFICATION FOR AGENTS

(a) Agents of the Alcoholic Beverage Control Division hereafter appointed shall be required to successfully pass an examination prescribed by the Commission as to physical and mental fitness, knowledge of the Alcoholic Beverage Control Laws, Rules, and Regulations of this State, and the laws pertaining to arrest.

(b) No person shall hereafter be employed as an agent of the Alcoholic Beverage Control Division unless he has good moral character and has reached the age of 23 years and meets the qualifications as set forth by the Mississippi Classification Commission, or has graduated from an accredited college or university with a major in Police Science or a related criminal investigative science and has reached the age of 21 years.

© Any agent of the Alcoholic Beverage Control Division is subject to assignment in the discretion of the Director to any location within the State of Mississippi. The Commission is empowered to remove or suspend, without pay, any agent of the Alcoholic Beverage Control Division to act as a trial board in hearings upon charges made against said agent; provided however that no agent employed by the Alcoholic Beverage Control Division for more than twelve (12) months shall be removed or suspended unless given a hearing in his own defense.

(d) All new agents employed by the Division must go through a period of training in the proper use and handling of firearms.







REGULATION NO. 41

MUTILATION OF SHIPPING LABELS

No permittee or employee thereof shall mutilate, destroy or remove shipping labels or other information stamped or otherwise affixed to any case of alcoholic beverages delivered to said permittee from the Alcoholic Beverage Control Division warehouse, nor shall any permittee or employee thereof permit the purchaser of alcoholic beverages to remove such labels or information while on the permittee's premises.







REGULATION NO. 42

(As Amended 6/29/94)

REGULATIONS SETTING FORTH THE REQUIREMENTS OF AUTOMATIC AND ELECTRONIC LIQUOR AND WINE DISPENSING SYSTEMS

The installation of automatic and electronic dispensing systems by on-premises permittees is authorized, provided that the following requirements are complied with:

(a) Such equipment must avoid an in-series hook up which would permit the contents to flow from bottle to bottle before reaching the dispensing spigot or nozzle. Multiple bottles of alcoholic beverages utilized to supply a single line or tube in an in-series hook up must be of identical brand and content.

(b) Such equipment must dispense from the original containers as received from the Mississippi Alcoholic Beverage Control Division. Once the contents flow from the original containers, as received from the Mississippi Alcoholic Beverage Control Division, into any such equipment, said contents shall not flow from such equipment into any other containers other than those used by said establishment for sale by the drink.

© The permittee shall maintain records that reflect the brands and quantities of alcoholic beverages used in such systems.

(d) The premises, including any places of storage, where the alcoholic beverages are dispensed, shall be subject to inspection by the Mississippi Alcoholic Beverage Control Division, or peace officers during all business hours for the purpose of inspection or for examination of any books and records required to be kept by on premises permittees. Where any part of such installation is in a locked room or locked cabinet, permittees shall have a keep to said room or cabinet available on the premises; and upon request by any authorized representative of the Mississippi Alcoholic Beverage Control Division, or peace officers, such permittees or any employee thereof shall open said storage rooms, cabinets, or other places for such inspection during regular business hours.

(e) The filing of an application for the use or alteration of such systems is required. No system shall be placed in service until approval is received from the Alcoholic Beverage Control Division.

(f) The use or alteration of such equipment without prior approval from the Alcoholic Beverage Control Division shall constitute good and sufficient cause for the suspension or revocation of the permit.





REGULATION NO. 43

(As Amended 7/1/92)

PERMITTEES, EMPLOYEES AND/OR AGENTS SHALL NOT CONSUME NOR BE UNDER THE INFLUENCE OF ANY ALCOHOLIC BEVERAGE, BEER OR LIGHT WINE ON PERMITTED PREMISES

Except as authorized under Regulation Number 33, no package or on premise retailer permittee, nor employee or agent thereof, will be permitted on the premises of the permitted place of business, as set forth in Section 67-1-51 of the Mississippi Code of 1972, while consuming or while under the influence of alcoholic beverage, beer, or light wine. The Commission may revoke, or suspend, the license of any package or on premise retailer permittee for the violation of the provisions of this Regulation. The failure of any permittee, or employee or agent thereof, to submit to an intoximeter test, after being charged with being intoxicated, and having been requested to do so by agents of the Alcoholic Beverage Control Division, or any other duly authorized law enforcement official of the State of Mississippi, will be deemed prima facie proof that the permittee, or his agent or employee, was intoxicated.







REGULATION NO. 44

MANAGEMENT AGREEMENT

The permittee in all cases must carry on the business for himself and have direct control over its entire operation.

No management agreement for a permitted place of business shall be effective until the Commission has approved the same.

The management agreement must provide that the permittee will be absolutely responsible for any and all violations of the Mississippi Alcoholic Beverage Control Laws, Rules and Regulations, occurring on or about the licensed premises.

Where the law authorizes that an on-premises retailer's permit be issued to a restaurant or hotel, the operation of the lounge located on their premises shall be in conjunction with the operation of the restaurant. Therefore, the operation of the restaurant and lounge shall be considered one and the same and must be under the direction of one manager.







REGULATION NO. 45

(As Amended 11/1/93)

APPLICATION REQUIREMENTS:

THE FOLLOWING INFORMATION WILL BE REQUIRED BY THE ALCOHOLIC BEVERAGE CONTROL DIVISION OF THE MISSISSIPPI STATE TAX COMMISSION PRIOR TO, AND AT ANYTIME AFTER, ISSUANCE OF A RETAILER PERMIT:

(a) A properly completed application for Retailer's Permit (Form 1000, or 1010, or 1008).

(b) Proof of Publication Affidavit on Legal Notice as set forth by Section 67-1-53(2) to include two (2) tear sheets from the newspaper in which said Legal Notice was published.

© Proof of compliance with all Federal statutes and regulations applicable to the permit being applied for which will include a copy of the receipt for purchase of a Federal Use Stamp or a copy of the check in payment thereof together with a copy of completed Federal Form 11 (Application for Federal Use Stamp).

(d) A copy of Applicant's deed or executed lease agreement on the premises where the business is to operate. If the permittee receives notice that the lease is to be canceled, or if the permittee transfers the deed, during the permit year, the permittee must immediately notify the Alcoholic Beverage Control Division in writing. The permittee shall obtain an executed renewal lease prior to the expiration date of the existing lease if the lease is expire during the permit year. If the permittee previously submitted a deed or multi-year lease on the permitted premises, prior to renewal the permittee must submit an affidavit attesting that there are no changes in said deed or lease. Failure to submit a valid renewal lease, deed or affidavit will result in the automatic suspension of sales until a valid lease is received by the Alcoholic Beverage Control Division. Further, the Commission may revoke the permit for failure to timely submit an executed renewal lease, deed or affidavit. A valid copy of any deed or lease may be required at any time after issuance of the original permit.

(e) A copy of the floor plan of the building where the prospective permittee proposes to operate the business under the permit being applied for.

(f) The original of the surety bond (Refer to Section 27-71-21 and/or Regulation No. 2).

(g) A complete, current and accurate summary financial statement(s) on Form 2007 as follows:

(1) Sole ownership - on the owner.

(2) Partnership - on the partnership and each partner thereof.

(3) Corporations for profit - (Non Profit excepted)

(a) On-Premises Retailer - each officer who owns five percent (5%) or more of the stock of such corporation and all major stockholders.

(b) All other permit classes - financial statements are required for each officer and/or major stockholder.

(4) In addition to the foregoing, if any applicant for a permit is doing business with out-of-state bank(s), letter(s) from said bank(s) verifying the current status of any and all loans, checking and savings accounts, certificates of deposit and a general recommendation from said bank(s) must be included therein.

(h) A statement of ownership (Form 1011).

(I) Personnel records and fingerprint forms (Form 1001).

(j) Sales tax registration.

(k) Food Service Permit, Form No. 307 (Form 1000).

(l) A copy of a waiver of the distance requirement from a church or funeral home in applicable. Where the transfer of a permit results in a change in use (i.e) from an On-Premises Retailers Permit to a Package Retailer's Permit or vice versa, a new waiver will be required.

NOTE: Bed and breakfast inns listed on the National Register of Historic Places are exempt from all distance requirements.

The Alcoholic Beverage Control Division of the Mississippi State Tax Commission may, in its discretion, require any applicant for a retailer permit to submit any and all other information and/or reports which it may deem necessary and expedient in the consideration of an existing permit or in the processing of any original permit.

NOTE: The forms required to be completed in the processing of application for any retailer permit or for renewal of any retailer permit can be obtained from the Alcoholic Beverage Control Division of the Mississippi State Tax Commission.





REGULATION NO. 46

(As Promulgated 6/3/87)

A hotel, as that term is defined by Miss. Code Ann. 67-1-5(L) (Amended May 1, 1987), possessing fifty (50) or more sleeping rooms and lying within a municipality having a population exceeding twenty-five thousand (25,000) shall not be required to have a dining room, or otherwise serve food, as a requirement to qualify for an on-premise alcoholic beverage permit.







REGULATION NO. 47

(As Amended 7/1/92)

TEMPORARY ALCOHOLIC BEVERAGE PERMITS

A Class I one-day Temporary Alcoholic Beverage Permit, authorizing the sale of alcoholic beverages by the drink, may be issued by the Commission to a bona fide nonprofit civic or charitable organization. Class I one-day Temporary Alcoholic Beverage Permits shall permit the sale and consumption only at the authorized location during the times permitted for other on premises retailer locations in the city of county where the permit is issued pursuant to ABC Regulation No. 12.

Application forms provided by the ABC for Class I Temporary Alcoholic Beverage Permits shall be completed by the applicant, under oath, and furnished to the Commission, setting forth that the applicant complies with the requirements of Miss. Code Ann. 67-1-11, 67-1-37, 67-1-51 (2) and (3), 67-1-55, 67-1-57, excluding paragraph (e), and 67-1-59. The Commission may deny an application for failure to timely complete the application or, upon review of said application, may deny said application based on a reasonable belief that the applicant does not meet the required qualifications. Any denial of a Temporary Alcoholic Beverage Permit, or an appeal from such denial, shall be conducted in accordance with ABC Regulation No. 19 and Miss. Code Ann. 67-1-39.

All alcoholic beverages purchased for resale by a temporary permittee shall be purchased from a package retailer in the county in which the permit is located The applicant shall set forth on his application the package retailer(s) from which said purchase(s) will be made, including the quantity to be purchased. All applicable sales and use taxes must be paid by the Class I Temporary Alcoholic Beverage Permit holder. Any bottled alcoholic beverages remaining in the possession of the Class I Temporary Alcoholic Beverage Permit holder may, with approval of the package retailer, be returned to said package retailer from which they were purchased. In no event may damaged alcoholic beverages, or partials, be returned to a package retailer.

Any package retailer or Class I Temporary Alcoholic Beverage Permit holder violating the terms of this regulation may, at the discretion of the Commission, have his permit suspended or revoked, or may be denied a future permit by the Commission.

All permit fees and filing fees are to be paid by the temporary permittee, in advance, with certified funds.

A Class II Temporary Alcoholic Beverage Permit may be issued only in conjunction with a transfer application submitted by a prospective permittee seeking an on premises retailer or package retailer permit currently in effect at the particular location for which the transfer is sought. No Class II Temporary Alcoholic Beverage Permit may be issued or transferred while there is pending in the Courts, or before the Commission, any charge of keeping a disorderly house, or of violating the Alcoholic Beverage Control Laws, Rules and Regulations, or the laws against gambling in this State, pursuant to Miss. Code 67-1-67.

Application forms for Class II Temporary Alcoholic Beverage Permits provided by the ABC shall be completed by the applicant, under oath, and furnished to the Commission, setting forth that the applicant complies with Miss. Code Ann. 67-1-11, 67-1-37, 67-1-51(2) and (3), 67-1-57, and 67-1-59. The applicant shall have fourteen (14) days from the issuance of the temporary permit to submit all documents and other materials required by Regulation 45 of these rules. Upon the failure of the applicant to submit these matters within said time, the temporary permit will lapse and liquor sales will be prohibited. The Commission may deny an application for failure to timely complete said application, or upon review of said application, may deny said application based on a reasonable belief that the applicant does not meet the required qualifications. Any denial of a permit, or an appeal of such denial, shall be conducted in accordance with ABC Regulation No. 19, and Miss. Code Ann. 67-1-39.

Upon approval of a Class II Temporary Alcoholic Beverage Permit, the temporary permittee must purchase his alcoholic beverages directly from the Commission and/or, with the Commission's prior approval, purchase the remaining inventory of the previous permittee. Class II temporary permittees shall pay additional privilege fees as set forth in Miss. Code Ann. 27-71-5(m). Any accumulated balances of purchases and additional privilege fees of the original on premises retailer permittee shall be transferred to the new permanent transferee.

A Class II Temporary Alcoholic Beverage Permit issued to temporary permittee shall run for a period of seventy (70) days unless applicant fails to meet the fourteen (14) day requirement for complying with Regulation 45. An application for a Class II Temporary Alcoholic Beverage Permit shall be filed at least seventy (70) days prior to the expiration of the original permit sought to be transferred. In the event less than seventy (70) days remains on the original permit, then a renewal application, signed by the original owner, must accompany the Class II Temporary Alcoholic Beverage Permit application.

Upon issuance of a Class II Temporary Alcoholic Beverage Permit, an "Administrative Hold" shall be placed on the original permit. The time remaining on the original permit shall continue to run, but no alcoholic beverages may be purchased from the ABC on the original permit. Furthermore, alcoholic beverages can only be sold and consumed pursuant to the Class II Temporary Alcoholic Beverage Permit and not by authority of the original permit as long as the "Administrative Hold" is in force. An "Administrative Hold" may be removed by the Director of the ABC Division following the Commission's approval of a transfer or following proof that the original owner has retained the particular location and the Class II temporary permittee no longer desires the permit.

The hours for sale and consumption of alcoholic beverages for Class II Temporary Alcoholic Beverage permittees shall be the hours authorized for similar permittees located in the city or county where the permit to be transferred is located pursuant to ABC Regulation No. 12, or as set by state law.

All Permit fees, filing fees, additional privilege fees and alcoholic beverage purchases from the ABC are to be paid by the temporary permittee, in advance, with certified funds.



REGULATION NO. 48

(As Amended 7/6/88)

SALES OF LIMITED AMOUNTS OF ALCOHOLIC BEVERAGES BY PACKAGE RETAILERS TO OTHER RETAILERS

****







REGULATION NO. 49

(As Amended 8/7/89)

GOVERNMENTAL AFFAIRS REPRESENTATIVES

A holder of a manufacturer's or wholesaler's permit may contract for the service of a representative in the area of governmental affairs on a part-time basis with a holder of an on-premises retailer's permit.

Notice must be provided to the Alcoholic Beverage Control Division by providing the ABC with a copy of the employment contract entered into by the manufacturer or wholesaler and the representative. The contract shall include a description of services to be rendered by the governmental affairs representative, and shall include the salary to be paid as well as the duration of the employment.

The representative shall register with the Office of the Secretary of State, and shall provide the ABC with proof of such registration by providing certified copies of all information submitted to the Secretary of State.

One (1) year from the date of entry into the contract for employment as a governmental affairs representative, the representative shall submit an annual report to the ABC Division, on forms provided by the ABC.







REGULATION NO. 50

(As Promulgated 8/7/89)

CATERERS' PERMITS

A caterer's permit authorizing the purchase and resale of alcoholic beverages by caterers of food may be issued by the Commission upon application, if the applicant meets the qualifications as provided for by Miss. Code Ann. 67-1-53, 67-1-55 and 67-1-57.

Caterers are subject to all rules and regulations which apply to on-premises retailers.

Caterers shall provide the ABC with notice of the location of the catered event 10 days prior to the event, on forms supplied by the ABC. A copy of the license shall be prominently displayed on the premises of the catered event.

The agents of the ABC Division of the State Tax Commission shall be permitted to enter the catered premises for the purpose of inspecting the premises and carrying out any enforcement responsibilities necessary. Should the permittee, it agents, servants or employees interfere, impede or hinder in any manner the ABC agents from carrying out their duties under the provisions of the law and regulations pertaining to the sale of alcoholic beverages, it shall be the duty of the Commission to impose a penalty amounting to either suspension or revocation of the caterer's permit.

Records are to be maintained by the caterer which clearly reflect the receipt of alcoholic beverages from the Commission, as well as the sale of alcoholic beverages and all food sales. All records shall be kept and maintained separately from the records pertaining to any on-premise permitted place of business operated by the caterer. The ABC shall be permitted to examine any books, papers, records or other data which pertain to purchases, costs and expenditures incurred by the permittee incident to the operation of the catering business. Caterers must comply with ABC Regulation No. 14.

The Commission may revoke or suspend the caterer's permit issued by it for violation of the rules, regulations and statutes, as they pertain to alcoholic beverages by the permittee or any agent, employee, associate, representative thereof, or for violations committed by any guests or individuals present at the catered event.







REGULATION NO. 51

(As Amended 3/14/90)

DUAL PACKAGING

The holder of a manufacturer's or wholesaler's permit may submit to the Alcoholic Beverage Control Division certain unit packages consisting of a specialty or novelty item and an alcoholic beverage previously listed with the ABC for sale in retail package stores. Novelty items include, but are not limited to: T-shirts, sportswear, glassware, stoneware, flags and banners. However, goods subject to spoilage will not be permitted. All products containing dual packaged items must have prior approval of the Alcoholic Beverage Control Division.

The unit packages shall be assembled prior to shipment to the Alcoholic Beverage Control Division Warehouse located in Gluckstadt, Mississippi, and shall be contained in sealed packages. Novelties may not be sold separately but must be sold as a unit in one original, unopened package. Dual package items will not be sold in split cases. The Alcoholic Beverage Control Division will not be responsible for damaged or defective dual packaged products other than alcoholic beverages.







REGULATION NO. 52

(As Amended 9/27/90)

EXCHANGES, CREDITS AND REFUNDS

Permittees holding package retailer's permits may allow a customer to return no more than five (5) bottles of package liquor for exchange, credit or refund as long as the liquor was, in fact, purchased from the permittee's business, and as long as a receipt reflecting that the liquor was sold to the patron by the permittee is presented by the patron.

In the event that a patron should desire to return in excess of five (5) bottles of liquor for refund, credit or exchange, the permittee shall notify the Enforcement Section of the Alcoholic Beverage Control Division for its approval of said transaction.

Any refunds, credits or exchanges made by a permittee for liquor not purchased from him will result in a charge being filed against the permittee for violation of Miss. Code Ann. 67-1-41 (1972).







REGULATION NO. 53

BAILMENT PROCEDURES

(As Promulgated April 10, 1991)

POLICIES AND PROCEDURES OF MISSISSIPPI ALCOHOLIC BEVERAGE CONTROL BAILMENT WAREHOUSE SYSTEM

Beginning April 29, 1991, the Tax Commission's Alcoholic Beverage Control Division (ABC) will begin bailment warehouse operations. A bailment warehouse is a warehousing method whereby alcoholic beverages owned by the vendor are stored in the Liquor Distribution Center (LDC) for subsequent shipment to retail permittees.

When conversion to this system begins, and at all times subsequent thereto, ABC inventory will be used first; when the ABC inventory is insufficient, the vendor's inventory will be used.

1. Warehouse Location

All bailment alcoholic beverages received by the ABC will be stored at the Liquor Distribution Center located at 1286 Gluckstadt Road, Madison, Madison County, Mississippi. The mailing address is P. O. Box 540, Madison, Mississippi 39130-0540.

2. Designation of Product Location

The ABC will determine the location of all alcoholic beverages stored in its distribution center. The existing product locations will be maintained whenever possible, however, the ABC reserves the right to manage warehouse space allocation.

3. Stock Ownership and Bailment Replenishment

a. Vendors will own and control the stock which enters the ABC Distribution Center (See APPENDIX E).

1. ABC will provide each vendor's representative or broker with a monthly sales history report. This report will list each of the vendor's products that has been sold by ABC.

2. Each vendor will be supplied a minimum and maximum level of inventory of each item in storage. These inventory levels will be based upon forecasted sales. The maximum inventory level for each code will be used by ABC to approve or deny subsequent vendor shipments.

b. The ABC will routinely authorize product movement into the distribution center for restocking purposes. Vendors should be aware that shipments in excess of maximum inventory levels may incur surcharges for storage and/or handling of this excess stock.

c. The ABC will require that vendors designate an agent who will be responsible for approving stock withdrawal, APPENDIX A: MISSISSIPPI BAILMENT WAREHOUSE VENDOR'S AUTHORIZED REPRESENTATIVE. Vendors must update this document as needed.

d. The ABC will notify the vendor's agent during the last week of each month of their intention to purchase specified inventory belonging to the vendor based on anticipated needs for the following month. If the vendor does not respond within two hours after receipt of notification, the vendor will be deemed to have authorized the anticipated purchase. This report shows the maximum anticipated purchases; actual purchases may differ due to:

1. Availability of the vendor's product on the date the inventory was picked;

2. Availability of new receipts into the distribution center;

3. And, the availability of any ABC owned inventory, which will be removed first.

At the end of the daily activity at mid-month and month-end, the computer will generate for the time period covered payment vouchers and invoices. These reports are a compilation of the items received and shipped during the time period. It also will contain a recap of all credit memos and other charge backs that have been processed during this time.

e. The receipt of bailment merchandise is according to the terms and conditions listed in APPENDIX C: "RECEIVING DOCKS, OVERAGE, STORAGE AND BREAKAGE."

f. Vendor's agents may obtain a weekly computerized report showing the activity of their products from the Purchasing Agent.

4. ABC Purchases

a. To provide for product availability for privately owned permittees, the ABC will advise vendors of the codes and quantities that will be needed during a particular time period as described in 3b and 3d.

b. ABC often receives requests for an item that is not listed in its Price Book. ABC will attempt to satisfy these requests through the special order procedure established in Regulation No. 29 (as amended 7/6/88).

C. A number of alcoholic beverages will be subject to split-case sales. Items available in split-case will be determined by ABC through established procedures. These items will be purchased from vendor's bailment stock by ABC prior to placement into the split-case sales area. Vendors will be notified as detailed in 3d.

5. Withdrawal of Bailment Inventory by Vendor

a. The vendor may withdraw alcoholic beverages from bailment for the following reasons:

1. Redistribution to other areas. The vendor cannot distribute the product to permittees in Mississippi.

2. If the maximum inventory level stored at the ABC Distribution Center has been exceeded.

3. If the product is unsalable (APPENDIX D, 4).

4. If the product has been delisted (10 a, b).

b. The ABC must approve the removal of any product before it can be removed from the distribution center. Such approval must be provided 24 hours in advance of the removal and may occur only during distribution center delivery hours (APPENDIX C, 1 f).

c. The vendor must provide a motor carrier to be used when removing product from the distribution center.

d. ABC will load the product onto the truck. The carrier's driver will observe the loading. Both the ABC representative and the driver must sign the Bill of Lading and a copy of the document will be provided to the vendor. ABC will adjust the computer bailment inventory records.

e. ABC will charge the vendor a handling fee to cover the costs of requested withdrawal.

6. ABC Charges

The ABC has historically charged for certain services. These charges will continue on the following items.

a. Labeling

b. Re-packing

c. Damage Re-packing

d. Reloading for shipping

7. Federal and Other Requirements

a. Vendors must comply with all Federal guidelines and/or regulations.

B. Prior to using ABC's distribution center, each vendor will be required to execute the bailment agreement and have designated an agent (3c).

8. Computer Reports and Forms

During the start-up and transition period to bailment, ABC anticipates altering existing computer reports and developing new programs and forms. ABC will provide to each vendor a listing of available reports and forms (APPENDIX B).

9. Insuring the Inventory

a. The ABC will not carry insurance on the vendor's inventory held in bailment nor be responsible for any loss except as provided for in APPENDIX D: "INVENTORY OVERAGE, SHORTAGE OR DAMAGE OCCURRING WHILE VENDOR'S INVENTORY IS HELD IN BAILMENT."

b. Vendor's agents will be provided inventory reports to assist vendors in determining the value of their inventory. This report may be obtained from the Purchasing Agent.

10. Listing/Delisting Products

a. The ABC will continue listing/delisting procedures as detailed in Regulations Nos. 36 and 37.

11. Claims by Vendor

Claims by vendor must be presented in writing to the ABC within 30 days after vendor's claim arises.

12. Additional Documents

The ABC may submit to vendor and/or the vendor's agent, or may require the vendor or vendor's agent to submit to ABC, other documents necessary to conduct its operations.

BAILMENT AGREEMENT BETWEEN ALCOHOLIC

BEVERAGE CONTROL

AND



The Alcoholic Beverage Control Division, hereinafter referred to as the ABC, headquartered at 1286 Gluckstadt Road, Madison, Mississippi 39110, and , hereinafter referred to as the Vendor, headquartered at , enter into this agreement for the purpose of operating a bailment warehouse program. This agreement will be effective April 1, 1991, and will remain in effect until canceled in writing by the ABC or vendor with 30 days notice.

A bailment warehouse program is defined as meaning the Vendor will own the stock in the ABC Liquor Distribution Center until it is withdrawn from bailment for shipment to the ABC permittees.

The ABC and the Vendor agree to the following:

1. The vendor agrees to place, without charge, approved items of alcoholic beverages into the ABC's distribution center at 1286 Gluckstadt Road, Madison, Mississippi 39110. The items are to be shipped in accordance with the ABC's shipping instructions and, when shipped, are to be consigned to the vendor, or his representative or agent, in care of the ABC's distribution center.

2. The ABC agrees to handle and store approved items furnished by the vendor for sale in Mississippi.

3. The vendor agrees that all price quotations for bailment stock will be delivered prices to the ABC's distribution center, including tax and duty on imported items.

4. The ABC agrees to provide the vendor recommended replenishment quantities.

5. THE ABC SHALL NOT BE LIABLE FOR ANY LOSS OR INJURY TO ALCOHOLIC BEVERAGES STORED HOWEVER CAUSED UNLESS SUCH LOSS OR INJURY RESULTED FROM FAILURE OF THE ABC TO EXERCISE SUCH CARE IN REGARD TO THE STORED ALCOHOLIC BEVERAGES AS A REASONABLY CAREFUL PERSON WOULD EXERCISE UNDER LIKE CIRCUMSTANCES AND THE ABC IS NOT LIABLE FOR DAMAGES WHICH COULD NOT HAVE BEEN AVOIDED BY SUCH CARE.

6. The ABC agrees it will purchase any bailment stock which disappears or is broken by ABC employees while stored in the ABC's distribution center.

7. The ABC agrees to maintain a record of all bailment transactions, including a perpetual inventory in the distribution center for its own purposes, and to make selected reports available to the vendor for accounting reconciliation purposes.

8. The ABC agrees to allow the vendor to conduct physical counts of its bailment stock in the distribution center.

9. The ABC agrees to request from the vendor authorization to purchase and withdraw from bailment stock, in advance, before the stock is pulled for shipment to its permittees. No response will be required unless permission to withdraw is denied.

10. The ABC agrees to issue payment vouchers and invoices at mid-month and month-end for withdrawals of the previous half month. The ABC will pay for the products withdrawn directly from these documents; hence, no vendor invoices will be required.

11. The vendor agrees to secure any applicable state and/or federal basic permits and federal special occupational tax stamps that may be needed before any alcoholic beverages are shipped into the distribution center under the bailment program.

12. The vendor agrees that any bailment items delisted or unapproved items misshipped will be the responsibility of the vendor to remove from the ABC's distribution center.

13. The vendor agrees to abide by the bailment policies and procedures established by the ABC, which are specifically incorporated into this agreement.

Vendor ABC

Date Date

Vendor FAX Number

FAX LOCATION











APPENDIX A

ALCOHOLIC BEVERAGE CONTROL DIVISION

STATE TAX COMMISSION

P. O. Box 540, Madison, MS 39130-0540

(601) 856-1301, FAX (601) 856-1390

MISSISSIPPI BAILMENT WAREHOUSE

VENDOR'S AUTHORIZED REPRESENTATIVE

1. Vendor's company name:

Street:

City, State, Zip:

Telephone: FAX Number:



The vendor designates the following representative(s) to authorize the ABC to purchase products from those maintained in the bailment distribution center. Products shipped to the bailment distribution center by the vendor are consigned to the vendor's representative(s) for the purpose of making sales at the bailment distribution center to the ABC. The vendor agrees that its designated representative will indicate its acceptance or rejection, in whole or in part, of an ABC Division order for products maintained in the bailment distribution center within two hours of receipt of the order, or the ABC's order will be deemed to have been accepted. The vendor is responsible for updating this document as needed.

2. Representative's Name:

Street:

City, State, Zip:

Telephone: FAX Number:



3. Alternate Representative's Name:

Street:

City, State, Zip:

Telephone: FAX Number:





Signature of person authorized by vendor to Printed Name

sign and execute documents

Date Title









APPENDIX B

COMPUTER REPORTS AND FORMS

1. The following reports and forms will be generated by ABC.

a. Invoice and Payment Voucher

b. NABCA Sales-Monthly

c. Inventory Withdrawal Projections-Monthly

d. Inventory Statistics by Vendor-Weekly

e. ABC Inventory Restocking Worksheet-Weekly

f. Inventory Value Report by Vendor-Monthly









APPENDIX C:

RECEIVING DOCKS - OVERAGE, SHORTAGE AND BREAKAGE

1. Scheduling

a. Receiving into the bailment warehousing system will take place at the distribution center located at 1286 Gluckstadt Road, Madison, Mississippi.

b. ABC requires that supplier deliver product in multiples of pallet quantities. Exceptions may be authorized by the Purchasing Agent. Effective April 1, 1991, product will not be unloaded if it is not shipped on pallets or slip sheets.

c. Vendors are required to supply ABC Distribution Center personnel with a Shippers Load Manifest at least forty-eight (48) hours in advance of shipment of quantities, by code, of product being delivered to the ABC Distribution Center.

d. The vendor will be responsible for obtaining the freight carrier.

e. The carrier is required to call the ABC Distribution Center to obtain an unloading appointment time. The carrier must indicate the vendor when scheduling the appointment. Carriers should at least one (1) working day in advance to arrange the unloading time.

f. In general, deliveries will not be unloaded from 4:00 p.m. to 8:00 a.m. Monday through Friday, nor at all on Saturdays, Sundays, or legal State holidays.

g. The ABC will consider claims for demurrage or detention charges which are incurred as a result of untimely unloading as long as the carrier adheres to the delivery schedule mutually established by the ABC Receiving Office and the carrier.

2. Receiving

a. The ABC staff will complete a Receiving Report form for each load delivered. The case quantity shown on the form will reflect any overage or shortage compared to the manifest supplied by the carrier.

b. ABC Distribution Center personnel will unload all products. Carrier drivers are required to witness the unloading. The driver ABC representative will sign the unloading report form and the Bill of Lading or Delivery Report.

c. Copies of the Receiving Report are available on request. Copies of Receiving Reports and Bills of Lading which show damage will be supplied.

d. The received product and quantity information will be included in a detailed computer report.

e. If the ABC staff discovers an error in the receiving process, they will complete an Inventory Correction form which will be indicated on an original receiving report.

3. Receiving Damaged Merchandise

a. Because the ABC may purchase damaged goods and subsequently establish a receivable with the vendor, the ABC Distribution Center Superintendent will be responsible for determining whether damaged goods are to be received into the bailment inventory. The ABC staff will always attempt to resolve any problems in this area to the mutual satisfaction of the vendor and the ABC.

b. The ABC believes that it is advantageous to the vendor and the ABC to accept merchandise with small amounts of damage which has occurred during the shipping process. At the discretion of the ABC Distribution Center Superintendent, goods with slight damage will be received into the ABC inventory and placed in repack area. The ABC will purchase the damaged case and file a claim against the vendor for recovery of the (damaged) bottle purchase price.

c. When the ABC discovers substantial damage, the rail car or truck will be sealed and the vendor notified. The vendor or designated agent will be responsible for determining how the damaged goods are to be handled. The ABC staff will assist the vendor in substantiating the degree of damage, but the vendor is responsible for filing a claim against the carrier. No goods from the damaged shipment will be received into the distribution center until the ABC Distribution Center Superintendent is satisfied with the vendor's determination.

d. All products are owned by the vendor, it will be the responsibility of the vendor to file claims with the carrier to recover the cost of damages which occurred during the transportation of the alcoholic beverages.









APPENDIX D:

INVENTORY OVERAGE, SHORTAGE OR DAMAGE OCCURRING

WHILE VENDOR'S INVENTORY IS HELD IN BAILMENT

The ABC is responsible for the accuracy of documentation and the receiving and shipping process while the vendor's goods are in bailment.

1. Shortage

a. Shortage is defined as a physical quantity of a product which is less than the inventory records indicate.

b. The ABC will pay vendors for most types of shortages occurring while the inventory is held in bailment.

c. If the shortage is a result of a misshipment to a retail permittee, the ABC will retrieve the cases in error and adjust the vendor's inventory accordingly.

d. If the shortage is the result of undetected shrinkage of inventory, then the ABC accepts responsibility for the loss and will make the appropriate payment to the vendor.

2. Overage

a. Overage is defined as a physical quantity of a product which is greater than the inventory records indicate.

b. The ABC will place the overage in its owns inventory.

3. Damages

a. In this context, "damages" refers to improper or careless handling by distribution center personnel only. The ABC will not insure nor be responsible for the vendor's product against fire, theft, water damage or any other cause or condition.

b. The ABC accepts responsibility for holding the vendor's goods in a safe and salable condition. The ABC Distribution Center Superintendent will notify vendors of improperly palettized, slip-sheeted or packaged product and, failing resolution, the merchandise may be placed in unsalable status.

c. The ABC will purchase damaged cases as defined in the first sentence of 3a (above).

4. Unsalable Products

Unsalable alcoholic beverage is defined as product that is not fit for human consumption. Unsalable alcoholic beverages located in the ABC Distribution Center will be disposed of in accordance with instructions provided by the vendor. Such disposition instructions must be provided by the vendor within 30 days after the vendor is notified of the unsalable alcoholic beverages. ABC may destroy the unsalable alcoholic beverages and invoice the vendor for handling charges if the vendor fails to provide disposition instructions.

Because retail permittees will be credited by the ABC for unsalable alcoholic beverages which are returned, vendors are required to grant a credit to the ABC for that product. Under no circumstances will the ABC be deemed to purchase any unsalable alcoholic beverages provided out of bailment stock.







APPENDIX E:

INVENTORY STATUS REPORTS AND TAKING INVENTORY

1. Physical Inventories

a. The ABC will take a physical inventory once a month unless circumstances prohibit.

b. Each vendor will be notified of the ABC counts and of any irreconcilable discrepancies.

c. Irreconcilable discrepancies will be resolved as follows:

1. Physical shortage of the vendor's product: the ABC will pay the vendor for the missing product.

2. Physical overage of the vendor's product: the ABC will place the surplus into its own inventory.

D. Vendors may conduct their own physical inventories of their stock held in bailment by arrangement with the Purchasing Agent at least 48 hours in advance.

2. Inventory Status Reports

a. An inventory status report is produced weekly and available for pick-up from the Purchasing Agent by the vendor or their agent.

b. Vendors, or their agents, should bring discrepancies to the attention of the Purchasing Agent at (601) 856-1340.















REGULATION NO. 54

(EFFECTIVE 12/6/95)

SALE OF SOFT DRINKS AND ICE BY PACKAGE RETAILERS

Package retailers may sell soft drinks and ice for consumption off the premises. Sales of ice must be limited to commercially bagged ice in original sealed and unopened bags containing five (5) or more pounds.

Soft drinks for purposes of this regulation are defined by Miss. Code Ann. 27-65-3-(1). Soft drinks do not include fruit juices, dairy products, syrup or fountain drinks or products commonly referred to as cocktail mixers.

Sale of soft drinks and ice shall in no way be used to promote, persuade or influence the sale of alcoholic beverages. Therefore, the permittee cannot give as a gift or reduce the price of these items when the same is conditioned on the purchase of an alcoholic beverage.







REGULATION NO. 55

(As Amended 7/1/96)

ALCOHOL PROCESSING PERMIT

An alcohol processing permit may be issued with the approval of the Commission to any person, firm, or corporation upon written application with applicable filing fees to the alcoholic beverage Control Division of the State Tax Commission. If said applicant is a corporation, an officer of such must affix their signature upon the application. If said applicant is a partnership, each partner must affix their signature upon the application. The processing permit is a non-retail permit and shall be issued and maintained only upon a showing that the use of alcoholic beverages is for legitimate cooking, processing, or manufacturing purposes and that the applicant meets the qualifications as provided for by Miss. Code Ann. 67-1-53, 67-1-55 and 67-1-57.

The permittee must indicate the estimated annual amounts of usage of alcoholic beverages. These amounts may be increased upon sworn affidavit of the permittee with the Alcoholic Beverage Control Division. It shall be a violation of these regulations for the permittee to use or possess more alcoholic beverages than set forth in the permit.

There shall be no minimum purchase amount required when acquiring alcoholic beverages; however, if the permittee wishes to purchase product from the Alcoholic Beverage Control Division the minimum purchasing limits set forth by that agency must be followed. All products used by the permittee must be purchased within the State of Mississippi and the permittee will be required to maintain on site storage of al alcoholic beverages. In addition, it shall be mandatory that inventory records be kept and preserved by the permittee for a period of three (3) years which include the itemized purchase invoices and tickets bearing the date of purchase and name of the seller of all alcoholic beverages. The Alcoholic Beverage Control Division reserves the right at any time to inspect all such inventory records as well as the permitted premises.

The Commission may revoke or suspend the processors permit for violation of any of the Alcoholic Beverage Control Local Option rules, regulations, or statutes by the permittee or any agent, employee, associate, or representative thereof.