13 AAC 104.325. License issued to encourage tourism

(a) The board will, in its discretion, approve the issuance or transfer of location of a beverage dispensary or restaurant or eating place license under AS 04.11.400 (d) only upon a showing that

(1) the approval will encourage the construction or improvement of a tourist facility which would not be financially feasible without a liquor license; and

(2) construction or improvement of the tourist facility will encourage tourism, and tourist business will constitute a substantial portion of the business of the tourist facility.

(b) Repealed 10/24/87.

(c) The licensee must show, upon application for renewal, that issuance of the license encouraged tourism, that the facility was constructed or improved in accordance with the application, and that the facility continues to be operated by the licensee. If the licensee does not make the showings required by this subsection, renewal will be denied.

(d) A license issued or transferred under AS 04.11.400 (d) may be transferred only to a person to whom the tourist facility is also being transferred. The license will not be renewed and will, in the board's discretion, be revoked if the tourist facility is transferred to a new owner without transfer of the license to the new owner.

(e) A license issued under AS 04.11.400 (d) may not be transferred to a new location.

(f) In this section, "improvement" means expenditure of labor and capital which increases the value of the premises, and which can be depreciated for federal income tax purposes.

(g) If two or more persons are named on a beverage dispensary license issued or transferred to encourage tourism and are also named on a related duplicate license for that tourist facility, those licensees may be separately licensed if

(1) the licensees have previously been identified as licensees in the tourism facility in applications that were filed and approved by the board before 11/29/81;

(2) one or more licensees do not have a financial interest in the tourist facility as required under (d) of this section, but operate a restaurant in the tourist facility and dispense alcoholic beverages in that restaurant under the duplicate license;

(3) in order to remove one or more licensees without a financial interest in the tourist facility from the primary license, the licensees file an application for transfer under the procedures set out in AS 04.11.280 and the transfer meets the requirements of AS 04.11.360 ; and

(4) in order to remove the licensees with the financial interest in the tourist facility from the separate duplicate license, the licensees concurrently file an application for transfer under the procedures set out in AS 04.11.280 and the transfer meets the requirements of AS 04.11.360 .

(h) A separate duplicate license issued under (g) of this section

(1) does not create a new license for the purpose of population limitations set out in AS 04.11.400 ;

(2) may not be transferred to a new location;

(3) may be transferred under the procedures and requirements set out in AS 04.11.280 and 04.11.360, to another person who operates a restaurant in the tourist facility on the same licensed premises, but the license has no value and may not be transferred in exchange for anything of value;

(4) terminates if the tourist facility, for which the primary beverage dispensary license was issued, ceases to exist;

(5) will not be renewed if the board finds that the separate duplicate license has not encouraged tourism at the tourist facility; and

(6) is not subject to suspension, revocation or other action by the board due to the conduct of the primary beverage dispensary licensee.

History: Eff. 11/29/81, Register 80; am 5/19/85, Register 94; am 10/24/87, Register 104; am 5/22/92, Register 122

Authority: AS 04.06.090

Editor's note: Effective in Register 133 (April, 1995), the regulations attorney made technical corrections in former 15 AAC 104.325, now 13 AAC 104.325, to reflect the new subsection designations in AS 04.11.400 after it was reorganized by the revisor of statutes.

As of Register 166 (July 2003), and acting under AS 44.62.125 (b)(6), the regulations attorney relocated former 15 AAC 104.325 to 13 AAC 104.325, to reflect Executive Order 110 (2003). Executive Order 110 relocated the Alcoholic Beverage Control Board from the Department of Revenue to the Department of Public Safety. The history note for 13 AAC 104.325 carries forward the history from former 15 AAC 104.325.

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