Auction Alcohol In Sealed Container Special Events

Alcohol beverage regulation - special events - authority to auction alcohol beverages in sealed containers for fundraising purposes. The act allows certain organizations to bring onto and remove from a licensed or unlicensed premises where a special event will be held alcohol beverages in sealed containers that were donated to or otherwise lawfully obtained by the organization and will be used for an auction for fundraising purposes as long as the alcohol beverages remain in sealed containers at all times and the licensee does not realize any financial gain related to the alcohol beverage auction.

The act applies to the following types of organizations that are eligible to apply for a special event permit, are exempted from special event permit requirements, or are holding a special event at a retail premises licensed to sell alcohol beverages for on-premises consumption:

• An organization formed for a social, fraternal, patriotic, political, or athletic purpose and not for pecuniary gain;
• An organization that is a regularly chartered branch, lodge, or chapter of a national organization or society organized for social, fraternal, patriotic, political, or athletic purposes and is nonprofit in nature;
• An organization that is a regularly established religious or philanthropic institution;
• An organization that is a state institution of higher education; or
• A political candidate.

The retail value of alcohol beverages donated by a retail liquor store, liquor-licensed drugstore, or fermented malt beverage retailer is not included in the calculation of the $2,000 limit on the purchase of alcohol beverages from those retailers by persons licensed to sell alcohol beverages for on-premises consumption. Additionally, a retailer that donates alcohol beverages is not liable for unlawful acts committed by the organization or other person involving the donated alcohol beverages or on the licensed premises where the event is held. If an unlawful act is committed on a licensed premises where a special event is held, the licensing authorities are required to consider mitigating factors, including the licensee's lack of knowledge of the violation, in determining whether to hold the licensee responsible.

(Note: This summary applies to this bill as enacted.)