SB 138: "An Act relating to regulation of alcoholic beverages; relating to alcoholic beverage licenses and to regulation of alcoholic beverage licensees; relating to liability of a person who provides alcoholic beverages; and providing for an effective date."
00SENATE BILL NO. 138 01 "An Act relating to regulation of alcoholic beverages; relating to alcoholic 02 beverage licenses and to regulation of alcoholic beverage licensees; relating to 03 liability of a person who provides alcoholic beverages; and providing for an 04 effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 04.06.100(b) is amended to read: 07 (b) The subjects covered by regulations adopted under (a) of this section may 08 include [, BUT ARE NOT LIMITED TO,] the following matters: 09 (1) employment, conduct, and duties of the director and of regular and 10 contractual employees of the board; 11 (2) procedures for the issuance, denial, renewal, transfer, revocation, 12 and suspension of licenses and permits; 13 (3) terms and conditions of licenses and permits issued; 14 (4) fees for licenses and permits issued for which [NO] fees are not
01 prescribed by statute; 02 (5) conduct of regular and special meetings of the board; 03 (6) delegation to the director of routine administrative functions and 04 powers; 05 (7) the temporary granting or denial of issuance, transfer, and renewal 06 of licenses; 07 (8) manner of giving any notice required by law or regulation when not 08 provided for by statute; 09 (9) requirements relating to the qualifications of licensees, the 10 conditions upon which a license may be issued, the accommodations of licensed 11 premises, and board inspection of those premises; 12 (10) making of reports by wholesalers; 13 (11) purchase of fidelity bonds by the state for the director and the 14 employees of the board; 15 (12) prohibition of possession of alcoholic beverages by drunken 16 persons and by minors; 17 (13) required reports from corporations licensed under this title, 18 including reports of stock ownership and transfers and changes of officers and 19 directors; 20 (14) creation of classifications of licenses or permits not provided for 21 in this title; 22 (15) establishment and collection of fees to be paid on application for 23 a license or permit; 24 (16) required reports from partnerships and limited partnerships licensed 25 under this title, including reports of transferred interests of 10 percent or more; 26 (17) required reports from limited liability companies licensed 27 under this title, including reports of the transfer of a member's interest if the 28 transfer equals 10 percent or more of the ownership of the limited liability 29 company and any change of managers. 30 * Sec. 2. AS 04.11.040(c) is amended to read: 31 (c) A person may not receive or transfer controlling interest in a liquor license
01 issued to a partnership, including a limited partnership, a limited liability company, 02 or a corporation under this title, except with the written consent of the board. 03 * Sec. 3. AS 04.11 is amended by adding a new section to read: 04 Sec. 04.11.045. Reports required of limited liability companies. (a) A 05 limited liability company licensed under this title shall report to the board when a 06 member of the limited liability company transfers 10 percent or more of the ownership 07 of the company and shall report a change of managers. 08 (b) The report to the board shall be made in writing in duplicate and shall be 09 sent within 10 days after the change in member interest or managers. 10 * Sec. 4. AS 04.11.135(a) is amended to read: 11 (a) A brewpub license authorizes the holder of a beverage dispensary license 12 or a restaurant or eating place license to 13 (1) manufacture on premises licensed under the beverage dispensary 14 license or the restaurant or eating place license not more than 75,000 gallons of beer 15 in a calendar year; 16 (2) sell beer manufactured on premises licensed under the beverage 17 dispensary license or the restaurant or eating place license for consumption only on 18 the licensed premises where the beer is manufactured or at another beverage 19 dispensary or restaurant or eating place licensed premises if the brewpub licensee 20 also holds the license for the other premises; 21 (3) [SELL BEER MANUFACTURED ON THE PREMISES 22 LICENSED UNDER THE BEVERAGE DISPENSARY LICENSE IN QUANTITIES 23 OF NOT MORE THAN FIVE GALLONS PER DAY TO AN INDIVIDUAL WHO 24 IS PRESENT ON THE LICENSED PREMISES; AND 25 (4)] provide a small sample of the brewpub's beer manufactured on the 26 premises free of charge unless prohibited by AS 04.16.030. 27 * Sec. 5. AS 04.11.135 is amended by adding new subsections to read: 28 (d) A brewpub licensee may petition the board for a waiver of the 75,000 29 gallon yearly limit of beer to be manufactured on the brewpub's premises imposed 30 under (a) of this section. The board shall adopt regulations to implement this 31 subsection.
01 (e) A brewpub licensee may sell beer manufactured on its licensed premises 02 to a holder of a general wholesale license under AS 04.11.160. 03 * Sec. 6. AS 04.11.150(a) is amended to read: 04 (a) Except as provided under (g), (j), and (k) of this section, a package store 05 license authorizes the licensee to sell alcoholic beverages to a person present on the 06 licensed premises or to a person known to the licensee who makes a written 07 solicitation to that licensee for shipment. A licensee, agent, or employee may only 08 ship alcoholic beverages to the purchaser. Before commencing the practice of shipping 09 alcoholic beverages, and with each subsequent application to renew the license, a 10 licensee shall notify the board in writing of the licensee's intention to ship alcoholic 11 beverages in response to a written solicitation. The package store licensee, agent, or 12 employee shall include written information on fetal alcohol syndrome and fetal alcohol 13 effects resulting from a woman consuming alcohol during pregnancy in a shipment of 14 alcoholic beverages sold in response to a written solicitation. 15 * Sec. 7. AS 04.11.150 is amended by adding new subsections to read: 16 (j) A package store license authorizes the licensee to deliver not more than two 17 bottles of wine or champagne in a gift basket with a floral arrangement to a cruise ship 18 passenger or a hotel guest. The wine or champagne for delivery may be purchased 19 from a package store licensee by a florist or gift basket establishment with a state 20 business license that designates the business as a florist or gift basket establishment. 21 The package store licensee shall keep on file a copy of the Alaska business license of 22 a florist or gift basket establishment to which the licensee sells wine or champagne for 23 delivery to third persons by the package store. The package store must keep a written 24 record of each delivery made under this subsection for a period of at least one year, 25 including the name of the business purchasing the wine or champagne and the name 26 of the person to whom the delivery is made. A delivery under this subsection must 27 be made by the licensee or an employee or agent of the licensee who has completed 28 alcohol server training as required under AS 04.21.025. The board shall issue a permit 29 to each licensee authorized to deliver wine or champagne under this subsection and 30 may by regulation impose an administrative fee for the cost of issuing the permit. 31 (k) A package store license authorizes the licensee to deliver alcoholic
01 beverages between the hours of 8:00 a.m. and 5:00 p.m. to a responsible adult at the 02 location of a wedding or wedding reception or other social event as defined by 03 regulation of the board. A delivery under this subsection may be made only after a 04 sale by written order to a person present on the licensed premises who makes payment 05 in full at least 48 hours before the delivery. The written order must include the name 06 and address of the purchaser and the date, time, and address of the delivery, as well 07 as the name and address of the responsible adult who will receive the delivery of 08 alcoholic beverages. A delivery authorized under this subsection must be made by the 09 licensee or an employee or agent of the licensee who has completed alcohol server 10 training as required under AS 04.21.025. Delivery may only be made to a responsible 11 adult at the delivery address on the written order. The responsible adult must provide 12 identification and proof of age as defined in AS 04.21.050, and must acknowledge 13 receipt of the alcoholic beverages in writing. The package store licensee shall retain 14 the written order and the responsible adult's written acknowledgment for at least one 15 year after delivery. The board shall issue a permit to each licensee authorized to 16 deliver alcoholic beverages under this subsection and may by regulation impose an 17 administrative fee for the cost of issuing the permit. 18 * Sec. 8. AS 04.11.260 is amended by adding a new subsection to read: 19 (e) A limited liability company that applies for a license or permit shall 20 provide information required by the board, including the names and addresses of all 21 members with an ownership interest of 10 percent or more and the names and 22 addresses of all managers. 23 * Sec. 9. AS 04.11.360(10) is amended to read: 24 (10) the license was issued under AS 04.11.135, unless the transferor 25 is also applying to transfer the beverage dispensary license or the restaurant or 26 eating place license required under AS 04.11.135 to the same transferee. 27 * Sec. 10. AS 04.11.390 is amended by adding a new subsection to read: 28 (c) A beverage dispensary license or package store license may not be issued 29 to a domestic limited liability company or a foreign limited liability company formed 30 under AS 10.50 unless the domestic limited liability company or foreign limited 31 liability company has been registered to conduct business in this state for at least one
01 year before the date of the application. However, a beverage dispensary or package 02 store license may be issued to a domestic limited liability company if each of the 03 members of the limited liability company has resided in the state for at least one year 04 immediately preceding the filing of the application. 05 * Sec. 11. AS 04.11.430(a) is amended to read: 06 (a) Each license shall be issued to a specific individual or individuals, to a 07 partnership, including a limited partnership, to a limited liability company, or to a 08 corporation. If the license is issued to a corporation or a limited liability company, 09 the registered agent of the corporation or limited liability company must be an 10 individual resident of the state. 11 * Sec. 12. AS 04.11.450(b) is amended to read: 12 (b) A person who is a representative or owner of a wholesale business, 13 brewery, winery, bottling works, or distillery may not be issued, solely or together with 14 others, a beverage dispensary license, a restaurant or eating place license, or package 15 store license. A holder of a beverage dispensary license or a restaurant or eating 16 place license may be issued a brewpub license, subject to the provisions of 17 AS 04.11.135. [THE PROHIBITION AGAINST ISSUANCE OF A RESTAURANT 18 OR EATING PLACE LICENSE IMPOSED UNDER THIS SUBSECTION DOES 19 NOT APPLY TO A RESTAURANT OR EATING PLACE LICENSE ISSUED ON 20 OR BEFORE OCTOBER 1, 1996 OR A RESTAURANT OR EATING PLACE 21 LICENSE ISSUED UNDER AN APPLICATION FOR A RESTAURANT OR 22 EATING PLACE LICENSE APPROVED ON OR BEFORE OCTOBER 1, 1996.] 23 * Sec. 13. AS 04.11.450(c) is amended to read: 24 (c) A license may not be leased by a licensee to another person, partnership, 25 limited liability company, or corporation. 26 * Sec. 14. AS 04.11.450(e) is amended to read: 27 (e) A holder of either a general wholesale license or a wholesale malt beverage 28 and wine license may not be employed by or act as the agent or employee of the 29 holder of a beverage dispensary license, a restaurant or eating place license, or a 30 package store license. 31 * Sec. 15. AS 04.21.020 is amended by adding a new subsection to read:
01 (b) Notwithstanding (a) of this section, a person who provides alcoholic 02 beverages to another person in violation of AS 04.11.010 may be held civilly liable for 03 injuries resulting from the intoxication of the person who receives the alcoholic 04 beverages. 05 * Sec. 16. AS 04.21 is amended by adding a new section to read: 06 Sec. 04.21.035. Responsibility of limited liability company members. 07 Notwithstanding any other provision of AS 10.50, a member of a limited liability 08 company holding a license under this title is not relieved of the obligation or the 09 liability otherwise imposed upon a holder of a liquor license under this title solely 10 because the license is held by a limited liability company. 11 * Sec. 17. Section 12 of this Act takes effect September 15, 1997. 12 * Sec. 18. Except as provided in sec. 17 of this Act, this Act takes effect July 1, 1997.