Code of the District of Columbia

§ 25–736. Gifts and loans from wholesaler prohibited.

(a) A licensed wholesaler of alcoholic beverages, whether or not licensed under this title, shall not engage in the following transactions with a retail licensee:

(1) Lend or give any money;

(2) Sell equipment, furniture, fixtures, or property, except merchandise sold at the fair market value ;

(3) Rent, loan, or give any equipment, furniture, fixtures, or property; or

(4) Give or sell any service.

(a-1)(1) Notwithstanding subsection (a)(3) of this section, with the Board's prior approval, a licensed wholesaler may rent a retailer's licensed premises to host a one-day or a one-time event.

(2) The Board shall not grant a wholesaler's request pursuant to paragraph (1) of this subsection more than one time in a calendar year.

(b) A retail licensee shall not engage in the following transactions with a wholesaler:

(1) Receive or accept any loan or gift of money;

(2) Purchase equipment, furniture, fixtures, or property, except merchandise purchased at the fair market value for resale;

(3) Rent from, borrow, or receive by gift equipment, furniture, fixtures, or property; or

(4) Receive any service.

(c) Notwithstanding subsections (a) and (b) of this section, with the prior approval of the Board, a wholesaler may sell, give, rent, or loan to a retail licensee any service or article of property costing the wholesaler not more than $500 and a retail licensee may purchase from, rent from, borrow, or receive by gift from a wholesaler any service or article of property costing the wholesaler not more than $500.

(d) Notwithstanding subsections (a), (b), and (c) of this section, with the prior approval of the Board, a wholesaler may sell, rent, give, loan to a retail licensee computer equipment for the purpose of tracking the sale or delivery of alcoholic beverages.

(e) Notwithstanding subsections (a), (b), and (c) of this section, employees or agents of a wholesaler, whether licensed by this title or not, may work or serve alcoholic beverages at a licensed establishment during an event promoting alcoholic beverages sold by the wholesaler without Board approval.

(f) Notwithstanding subsections (a), (b), and (c) of this section, a wholesaler, whether licensed by this title or not, may donate alcoholic beverages to the holder of a temporary license or a festival license or a nonprofit organization that does not hold a retailers license without Board approval.


(Jan. 24, 1934, 48 Stat. 331, ch. 4, § 19; Aug. 27, 1935, 49 Stat. 903, ch. 756, § 16; Sept. 29, 1982, D.C. Law 4-157, §§ 11, 15, 29 DCR 3617; Mar. 8, 1984, D.C. Law 5-51, § 2(b)(7), 30 DCR 5927; May 3, 2001, D.C. Law 13-298, § 101, 48 DCR 2959; Sept. 30, 2004, D.C. Law 15-187, § 101(bb), 51 DCR 6525; Mar. 9, 2016, D.C. Law 21-84, § 2(e)(3), 63 DCR 781; Apr. 7, 2017, D.C. Law 21-260, § 2(f)(4), 64 DCR 2079; Feb. 21, 2020, D.C. Law 23-51, § 2(d)(2), 67 DCR 13.)

Prior Codifications

1981 Ed., § 25-736.

1973 Ed., § 25-120.

Effect of Amendments

D.C. Law 15-187 added subsec. (d).

The 2016 amendment by D.C. Law 21-84 added (e) and (f).