CSSB 138(JUD): "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."
00CS FOR SENATE BILL NO. 138(JUD) 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 licensed under the beverage 22 dispensary license in quantities of not more than five gallons per day to an individual 23 who is present on the licensed premises; and 24 (4) provide a small sample of the brewpub's beer manufactured on the 25 premises free of charge unless prohibited by AS 04.16.030. 26 * Sec. 5. AS 04.11.135 is amended by adding new subsections to read: 27 (d) A brewpub licensee may petition the board for a waiver of the 75,000 28 gallon yearly limit of beer to be manufactured on the brewpub's premises imposed 29 under (a) of this section. The board shall adopt regulations to implement this 30 subsection. 31 (e) A brewpub licensee may sell beer manufactured on its licensed premises
01 to a holder of a general wholesale license under AS 04.11.160. 02 * Sec. 6. AS 04.11.150(a) is amended to read: 03 (a) Except as provided under (g) , (j), and (k) of this section, a package store 04 license authorizes the licensee to sell alcoholic beverages to a person present on the 05 licensed premises or to a person known to the licensee who makes a written 06 solicitation to that licensee for shipment. A licensee, agent, or employee may only 07 ship alcoholic beverages to the purchaser. Before commencing the practice of shipping 08 alcoholic beverages, and with each subsequent application to renew the license, a 09 licensee shall notify the board in writing of the licensee's intention to ship alcoholic 10 beverages in response to a written solicitation. The package store licensee, agent, or 11 employee shall include written information on fetal alcohol syndrome and fetal alcohol 12 effects resulting from a woman consuming alcohol during pregnancy in a shipment of 13 alcoholic beverages sold in response to a written solicitation. 14 * Sec. 7. AS 04.11.150 is amended by adding new subsections to read: 15 (j) A package store license authorizes the licensee to deliver not more than two 16 bottles of wine or champagne in a gift basket with a floral arrangement to a cruise ship 17 passenger or a hotel guest. The wine or champagne for delivery may be purchased 18 from a package store licensee by a florist or gift basket establishment with a state 19 business license that designates the business as a florist or gift basket establishment. 20 The package store licensee shall keep on file a copy of the Alaska business license of 21 a florist or gift basket establishment to which the licensee sells wine or champagne for 22 delivery to third persons by the package store. The package store must keep a written 23 record of each delivery made under this subsection for a period of at least one year, 24 including the name of the business purchasing the wine or champagne and the name 25 of the person to whom the delivery is made. A delivery under this subsection must 26 be made by the licensee or an employee or agent of the licensee who has completed 27 alcohol server training as required under AS 04.21.025. The board shall issue a permit 28 to each licensee authorized to deliver wine or champagne under this subsection and 29 may by regulation impose an administrative fee for the cost of issuing the permit. 30 (k) A package store license authorizes the licensee to deliver alcoholic 31 beverages between the hours of 8:00 a.m. and 5:00 p.m. to a responsible adult at the
01 location of a wedding or wedding reception or other social event as defined by 02 regulation of the board. A delivery under this subsection may be made only after a 03 sale by written order to a person present on the licensed premises who makes payment 04 in full at least 48 hours before the delivery. The written order must include the name 05 and address of the purchaser and the date, time, and address of the delivery, as well 06 as the name and address of the responsible adult who will receive the delivery of 07 alcoholic beverages. A delivery authorized under this subsection must be made by the 08 licensee or an employee or agent of the licensee who has completed alcohol server 09 training as required under AS 04.21.025. Delivery may only be made to a responsible 10 adult at the delivery address on the written order. The responsible adult must provide 11 identification and proof of age as defined in AS 04.21.050, and must acknowledge 12 receipt of the alcoholic beverages in writing. The package store licensee shall retain 13 the written order and the responsible adult's written acknowledgment for at least one 14 year after delivery. The board shall issue a permit to each licensee authorized to 15 deliver alcoholic beverages under this subsection and may by regulation impose an 16 administrative fee for the cost of issuing the permit. 17 * Sec. 8. AS 04.11.260 is amended by adding a new subsection to read: 18 (e) A limited liability company that applies for a license or permit shall 19 provide information required by the board, including the names and addresses of all 20 members with an ownership interest of 10 percent or more and the names and 21 addresses of all managers. 22 * Sec. 9. AS 04.11.360(10) is amended to read: 23 (10) the license was issued under AS 04.11.135, unless the transferor 24 is also applying to transfer the beverage dispensary license or the restaurant or 25 eating place license required under AS 04.11.135 to the same transferee. 26 * Sec. 10. AS 04.11.390 is amended by adding a new subsection to read: 27 (c) A beverage dispensary license or package store license may not be issued 28 to a domestic limited liability company or a foreign limited liability company formed 29 under AS 10.50 unless the domestic limited liability company or foreign limited 30 liability company has been registered to conduct business in this state for at least one 31 year before the date of the application. However, a beverage dispensary or package
01 store license may be issued to a domestic limited liability company if each of the 02 members of the limited liability company has resided in the state for at least one year 03 immediately preceding the filing of the application. 04 * Sec. 11. AS 04.11.400(d) is amended to read: 05 (d) The board may approve the issuance or transfer of ownership of a beverage 06 dispensary or restaurant or eating place license without regard to (a) of this section if 07 it appears that the issuance or transfer will encourage the tourist trade by encouraging 08 the construction or improvement of 09 (1) a hotel, motel, resort, or similar business relating to the tourist trade 10 with a dining facility or having kitchen facilities in a majority of its rental rooms and 11 at least a minimum number of rental rooms required according to the population of or 12 number of existing beverage dispensary or club licenses in the established village, 13 incorporated city, unified municipality, or population area established under (a) of this 14 section in which the facility will be located, as follows: 15 (A) 10 rental rooms if the population is less than 1,501; 16 (B) 20 rental rooms if the population is 1,501 - 2,500; 17 (C) 25 rental rooms if the population is 2,501 - 5,000; 18 (D) 30 rental rooms if the population is 5,001 - 15,000; 19 (E) 35 rental rooms if the population is 15,001 - 25,000; 20 (F) 40 rental rooms if the population is 25,001 - 50,000; and 21 (G) 50 rental rooms if the population is greater than 50,000; 22 and 23 (H) 35 rental rooms if the total number of existing beverage 24 dispensary or club licenses in the established village, incorporated city, 25 unified municipality, or population area is greater than four times the 26 number of beverage dispensary licenses that is allowed under (a) of this 27 section; or 28 (2) an airport terminal. 29 * Sec. 12. AS 04.11.430(a) is amended to read: 30 (a) Each license shall be issued to a specific individual or individuals, to a 31 partnership, including a limited partnership, to a limited liability company, or to a
01 corporation. If the license is issued to a corporation or a limited liability company , 02 the registered agent of the corporation or limited liability company must be an 03 individual resident of the state. 04 * Sec. 13. AS 04.11.450(b) is amended to read: 05 (b) A person who is a representative or owner of a wholesale business, 06 brewery, winery, bottling works, or distillery may not be issued, solely or together with 07 others, a beverage dispensary license, a restaurant or eating place license, or package 08 store license. A holder of a beverage dispensary license or a restaurant or eating 09 place license may be issued a brewpub license, subject to the provisions of 10 AS 04.11.135. The prohibition against issuance of a restaurant or eating place license 11 imposed under this subsection does not apply to a restaurant or eating place license 12 issued on or before October 1, 1996 or a restaurant or eating place license issued under 13 an application for a restaurant or eating place license approved on or before October 14 1, 1996. 15 * Sec. 14. AS 04.11.450(c) is amended to read: 16 (c) A license may not be leased by a licensee to another person , partnership, 17 limited liability company, or corporation. 18 * Sec. 15. AS 04.11.450(e) is amended to read: 19 (e) A holder of either a general wholesale license or a wholesale malt beverage 20 and wine license may not be employed by or act as the agent or employee of the 21 holder of a beverage dispensary license, a restaurant or eating place license, or a 22 package store license. 23 * Sec. 16. AS 04.16.170(b) is amended to read: 24 (b) A person transporting alcoholic beverages into the state may not sell those 25 alcoholic beverages [TO A PERSON NOT LICENSED UNDER THIS TITLE,] unless 26 the alcoholic beverages are sold to a person licensed under AS 04.11.160 or are 27 used for religious, industrial, pharmaceutical, or medical purposes. 28 * Sec. 17. AS 04.16.170 is amended by adding new subsections to read: 29 (c) If the director determines that a person has violated (b) of this section, the 30 director shall by certified mail order the person to cease and desist further violations. 31 If a person receiving the notice to cease and desist does not, within 30 days after
01 receiving the notice, produce evidence that the applicable alcoholic beverage tax 02 imposed under AS 43.60 has been paid, it shall be presumed that the person has 03 violated (b) of this section. This subsection does not apply to a person who holds a 04 permit issued by the Federal Bureau of Alcohol, Tobacco and Firearms authorizing 05 interstate shipment of alcoholic beverages. 06 (d) If the director determines that a person holding a permit issued by the 07 Federal Bureau of Alcohol, Tobacco and Firearms authorizing interstate shipment of 08 alcoholic beverages has violated (b) of this section, the director shall notify the Federal 09 Bureau of Alcohol, Tobacco and Firearms of the violation by certified mail and request 10 the bureau to take appropriate action. 11 * Sec. 18. AS 04.21 is amended by adding a new section to read: 12 Sec. 04.21.035. Responsibility of limited liability company members. 13 Notwithstanding any other provision of AS 10.50, a member of a limited liability 14 company holding a license under this title is not relieved of the obligation or the 15 liability otherwise imposed upon a holder of a liquor license under this title solely 16 because the license is held by a limited liability company. 17 * Sec. 19. Section 13 of this Act takes effect September 15, 1998. 18 * Sec. 20. Except as provided in sec. 19 of this Act, this Act takes effect July 1, 1998.