Sec. 04.11.450. Prohibited financial interest.

407 words·~2 min read·/ak/title-4/chapter-11/04-11-450·

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)A person other than a licensee may not have a direct or indirect financial interest in the business for which a license is issued.

(b)A person who is a representative or owner of a wholesale business licensed under AS 04.09.100 or 04.09.110 may not be issued, solely or together with others, a manufacturer license issued under AS 04.09.020 — 04.09.040, or a retail license issued under AS 04.09.200 — 04.09.370.

(c)A license may not be leased by a licensee to another person, partnership, limited liability organization, or corporation.

(d)For the purposes of this section, a lessor under a graduated or percentage lease-rent agreement involving premises licensed under this title does not hold a financial interest in the business.

(e)A holder of either a general wholesale license or a limited wholesale brewed beverage and wine license may not be employed by or act as the agent or employee of the holder of a manufacturer license under AS 04.09.020 — 04.09.040 or a retail license under AS 04.09.200 — 04.09.370.

(f)The holder of a manufacturer license that annually produces in total 300,000 barrels or more of brewed beverages or mead or cider containing less than 8.5 percent alcohol by volume, 50,000 nine-liter-equivalent cases or more of wine, sake, or mead or cider containing 8.5 percent or more alcohol by volume, or 50,000 nine- liter-equivalent cases or more of distilled spirits may not be issued, solely or together with others, a license under AS 04.09.100 — 04.09.370.

(g)For purposes of calculating the volume that the holder of a manufacturer license produces under this section, the volume of production must include all production by

(1)the holder of the manufacturer's license; and

(2)an officer, director, agent, employee, or affiliate of the holder; in this paragraph, “affiliate” means a person that directly or indirectly, through one or more intermediaries, controls, or is controlled by, or is under common control with, a corporation.

(h)In this section, “direct or indirect financial interest” means holding a legal or equitable interest in the operation of a business licensed under this title. However, credit extended by a distiller, a brewery, or a winery to a wholesaler, or credit extended by a wholesaler to persons licensed under this title, or a consulting fee received from a person licensed under this title, is not considered a financial interest in a business licensed under this title.