txt

CSHB 69(L&C): "An Act requiring certain reports or information from alcoholic beverage licensees that are also limited liability organizations; relating to regulation of alcoholic beverage licenses issued to limited liability organizations; relating to brewpub licenses; relating to package store licenses; relating to consumption of alcoholic beverages on licensed premises; relating to the liability of a member of a limited liability organization who also holds an alcoholic beverage license; extending the termination date of the Alcoholic Beverage Control Board to June 30, 2003; and providing for an effective date."

00CS FOR HOUSE BILL NO. 69(L&C) 01 "An Act requiring certain reports or information from alcoholic beverage licensees 02 that are also limited liability organizations; relating to regulation of alcoholic 03 beverage licenses issued to limited liability organizations; relating to brewpub 04 licenses; relating to package store licenses; relating to consumption of alcoholic 05 beverages on licensed premises; relating to the liability of a member of a limited 06 liability organization who also holds an alcoholic beverage license; extending the 07 termination date of the Alcoholic Beverage Control Board to June 30, 2003; and 08 providing for an effective date." 09 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 10 * Section 1. AS 04.06.100(b) is amended to read: 11  (b) The subjects covered by regulations adopted under (a) of this section may 12 include [, BUT ARE NOT LIMITED TO,] the following matters: 13  (1) employment, conduct, and duties of the director and of regular and 14 contractual employees of the board;

01  (2) procedures for the issuance, denial, renewal, transfer, revocation, 02 and suspension of licenses and permits; 03  (3) terms and conditions of licenses and permits issued; 04  (4) fees for licenses and permits issued for which [NO] fees are not 05 prescribed by statute; 06  (5) conduct of regular and special meetings of the board; 07  (6) delegation to the director of routine administrative functions and 08 powers; 09  (7) the temporary granting or denial of issuance, transfer, and renewal 10 of licenses; 11  (8) manner of giving any notice required by law or regulation when not 12 provided for by statute; 13  (9) requirements relating to the qualifications of licensees, the 14 conditions upon which a license may be issued, the accommodations of licensed 15 premises, and board inspection of those premises; 16  (10) making of reports by wholesalers; 17  (11) purchase of fidelity bonds by the state for the director and the 18 employees of the board; 19  (12) prohibition of possession of alcoholic beverages by drunken 20 persons and by minors; 21  (13) required reports from corporations licensed under this title, 22 including reports of stock ownership and transfers and changes of officers and 23 directors; 24  (14) creation of classifications of licenses or permits not provided for 25 in this title; 26  (15) establishment and collection of fees to be paid on application for 27 a license or permit; 28  (16) required reports from partnerships and limited partnerships licensed 29 under this title, including reports of transferred interests of 10 percent or more ; 30  (17) required reports from limited liability organizations licensed 31 under this title, including reports of the transfer of a member's interest if the

01 transfer equals 10 percent or more of the ownership of the limited liability 02 organization and any change of managers . 03 * Sec. 2. AS 04.11.040(c) is amended to read: 04  (c) A person may not receive or transfer controlling interest in a liquor license 05 issued to a partnership, including a limited partnership, a limited liability 06 organization, or a corporation under this title , except with the written consent of the 07 board. 08 * Sec. 3. AS 04.11 is amended by adding a new section to read: 09  Sec. 04.11.045. Reports required of limited liability organizations. (a) A 10 limited liability organization licensed under this title shall report to the board when a 11 member of the limited liability organization transfers 10 percent or more of the 12 ownership of the organization and shall report a change of managers. 13  (b) The report to the board shall be made in writing in duplicate and shall be 14 sent within 10 days after the change in member interest or manager. 15 * Sec. 4. AS 04.11.135(a) is amended to read: 16  (a) A brewpub license authorizes the holder of a beverage dispensary license 17 to 18  (1) manufacture on premises licensed under the beverage dispensary 19 license not more than 75,000 gallons of beer in a calendar year; 20  (2) sell beer manufactured on premises licensed under the beverage 21 dispensary license for consumption [ONLY] on the licensed premises or other 22 licensed premises of the beverage dispensary licensee ; 23  (3) sell beer manufactured on the premises licensed under the beverage 24 dispensary license in quantities of not more than five gallons per day to an individual 25 who is present on the licensed premises; [AND] 26  (4) provide a small sample of the brewpub's beer manufactured on the 27 premises free of charge unless prohibited by AS 04.16.030 ; and 28  (5) sell beer manufactured on the premises licensed under the 29 beverage dispensary license to a person licensed as a wholesaler under 30 AS 04.11.160 . 31 * Sec. 5. AS 04.11.135 is amended by adding a new subsection to read:

01  (d) Notwithstanding (a) of this section, the holder of a brewpub license who 02 under the provisions of AS 04.11.450(b) formerly held a brewery license and a 03 restaurant or eating place license and who, under the former brewery license, 04 manufactured beer at a location other than the premises licensed under the former 05 restaurant or eating place license may 06  (1) manufacture not more than 75,000 gallons of beer in a calendar year 07 on premises other than the premises licensed under the beverage dispensary license; 08  (2) provide a small sample of the manufactured beer free of charge at 09 the location the beer is manufactured unless prohibited by AS 04.16.030; and 10  (3) sell the beer authorized to be manufactured under this subsection 11  (A) on the premises licensed under the beverage dispensary 12 license or other licensed premises of the beverage dispensary licensee; 13  (B) to a wholesaler licensed under AS 04.11.160; or 14  (C) to an individual who is present on the premises where the 15 beer is manufactured in quantities of not more than five gallons per day. 16 * Sec. 6. AS 04.11.150(a) is amended to read: 17  (a) Except as provided under (g) , (j), and (k) of this section, a package store 18 license authorizes the licensee to sell alcoholic beverages to a person present on the 19 licensed premises or to a person known to the licensee who makes a written 20 solicitation to that licensee for shipment. A licensee, agent, or employee may only 21 ship alcoholic beverages to the purchaser. Before commencing the practice of shipping 22 alcoholic beverages, and with each subsequent application to renew the license, a 23 licensee shall notify the board in writing of the licensee's intention to ship alcoholic 24 beverages in response to a written solicitation. The package store licensee, agent, or 25 employee shall include written information on fetal alcohol syndrome and fetal alcohol 26 effects resulting from a woman consuming alcohol during pregnancy in a shipment of 27 alcoholic beverages sold in response to a written solicitation. 28 * Sec. 7. AS 04.11.150 is amended by adding new subsections to read: 29  (j) A package store license authorizes the licensee to deliver not more than two 30 bottles of wine or champagne in a gift basket with a floral arrangement to a cruise ship 31 passenger or a hotel guest. The wine or champagne for delivery may be purchased

01 from a package store licensee by a florist or gift basket establishment with a state 02 business license that designates the business as a florist or gift basket establishment. 03 The package store licensee shall keep on file a copy of the Alaska business license of 04 a florist or gift basket establishment to which the licensee sells wine or champagne for 05 delivery to third persons by the package store. The package store must keep a written 06 record of each delivery made under this subsection for a period of at least one year, 07 including the name of the business purchasing the wine or champagne and the name 08 of the person to whom the delivery is made. A delivery under this subsection must 09 be made by the licensee or an employee or agent of the licensee who has completed 10 alcohol server training as required under AS 04.21.025. The board shall issue a permit 11 to each licensee authorized to deliver wine or champagne under this subsection and 12 may by regulation impose an administrative fee for the cost of issuing the permit. 13  (k) A package store license authorizes the licensee to deliver alcoholic 14 beverages between the hours of 8:00 a.m. and 5:00 p.m. to a responsible adult at the 15 location of a wedding or wedding reception or other social event as defined by 16 regulation of the board. A delivery under this subsection may be made only after a 17 sale by written order received from a person present on the licensed premises who 18 makes payment in full at least 48 hours before the delivery. The written order must 19 include the name and address of the purchaser and the date, time, and address of the 20 delivery, as well as the name and address of the responsible adult who will receive the 21 delivery of alcoholic beverages. A delivery authorized under this subsection must be 22 made by the licensee or an employee or agent of the licensee who has completed 23 alcohol server training as required under AS 04.21.025. Delivery may only be made 24 to a responsible adult at the delivery address on the written order. The responsible 25 adult must provide identification and proof of age as defined in AS 04.21.050, and 26 must acknowledge receipt of the alcoholic beverages in writing. The package store 27 licensee shall retain the written order and the responsible adult's written 28 acknowledgment for at least one year after delivery. The board shall issue a permit 29 to each licensee authorized to deliver alcoholic beverages under this subsection and 30 may by regulation impose an administrative fee for the cost of issuing the permit. 31 * Sec. 8. AS 04.11.260 is amended by adding a new subsection to read:

01  (e) A limited liability organization that applies for a license or permit shall 02 provide information required by the board, including the names and addresses of all 03 members with an ownership interest of 10 percent or more and the names and 04 addresses of all managers. 05 * Sec. 9. AS 04.11.390 is amended by adding a new subsection to read: 06  (c) A beverage dispensary license or package store license may not be issued 07 to a limited liability organization unless the limited liability organization has been 08 registered to conduct business in this state for at least one year before the date of the 09 application. However, a beverage dispensary or package store license may be issued 10 to a domestic limited liability company or a domestic limited liability partnership if 11 each of the members of the limited liability company or limited liability partnership 12 has resided in the state for at least one year immediately preceding the filing of the 13 application. 14 * Sec. 10. AS 04.11.430(a) is amended to read: 15  (a) Each license shall be issued to a specific individual or individuals, to a 16 partnership, including a limited partnership, to a limited liability organization, or to 17 a corporation. If the license is issued to a corporation or a limited liability 18 organization , the registered agent of the corporation or limited liability organization 19 must be an individual resident of the state. 20 * Sec. 11. AS 04.11.450(c) is amended to read: 21  (c) A license may not be leased by a licensee to another person , partnership, 22 limited liability organization, or corporation. 23 * Sec. 12. AS 04.16.120(b) is amended to read: 24  (b) Except as provided in this subsection, a [A] person may not bring an 25 alcoholic beverage into licensed premises for use or consumption by oneself or another 26 person on the premises unless that person is a licensee, an agent, employee, or 27 common carrier in the regular course of employment. With the permission of the 28 licensee, a person may bring wine into premises licensed as a beverage dispensary 29 or a restaurant or eating place for consumption by the person while eating food 30 served at a table on the licensed premises. The beverage dispensary or restaurant 31 or eating place may charge a corkage fee for serving wine supplied by a customer.

01 * Sec. 13. AS 04.21 is amended by adding a new section to read: 02  Sec. 04.21.035. Responsibility of limited liability organization members. 03 Notwithstanding any other provision of AS 10.50 or AS 32.05, a member of a limited 04 liability organization holding a license under this title is not relieved of the obligation 05 or the liability otherwise imposed upon a holder of a liquor license under this title 06 solely because the license is held by a limited liability organization. 07 * Sec. 14. AS 04.21.080(b) is amended by adding new paragraphs to read: 08  (12) "foreign limited liability company" has the meaning given in 09 AS 10.50.990; 10  (13) "foreign limited liability partnership" has the meaning given in 11 AS 32.05.990; 12  (14) "limited liability company" means an organization under AS 10.50; 13  (15) "limited liability organization" means a limited liability company, 14 a foreign limited liability company, a limited liability partnership, or a foreign limited 15 liability partnership; 16  (16) "limited liability partnership" means an organization that is 17 registered under AS 32.05.415. 18 * Sec. 15. AS 44.66.010(a)(1) is amended to read: 19  (1) Alcoholic Beverage Control Board (AS 04.06.010) -- June 30, 2003 20 [1999]; 21 * Sec. 16. Section 15 of this Act takes effect immediately under AS 01.10.070(c). 22 * Sec. 17. Except as provided in sec. 16 of this Act, this Act takes effect July 1, 1999.