| Councilmember Sharon Ambrose A BILL IN THE
COUNCIL OF THE DISTRICT OF COLUMBIA
Councilmember Sharon Ambrose introduced the following bill, which was referred to the
Committee on Consumer and Regulatory Affairs
To amend the District of Columbia's Alcoholic Beverage Control Act and Municipal
Regulations to authorize a new licensing category for a non-resident supplier's license;
to increase the fee charged by the Alcoholic Beverage Control Board for the issuance of
import permits; to provide that the license and permit fees generated by the new license
category and import permit fees are appropriated entirely to the Alcoholic Beverage
Control Board for the creation and maintenance of additional investigator positions,
personal computers, and software to aid in the enforcement of the Alcoholic Beverage
Control laws and regulations; to require the completion of responsible sales and server
training courses for all employees of a retail licensee responsible for the sale or
service of alcoholic beverages to consumers; and to provide that the certification and
license fees generated by the alcohol training and education program be appropriated
entirely to the Alcoholic Beverage Control Board for the creation and maintenance of
additional investigator positions, personal computers and software to aid in the
enforcement of the Alcoholic Beverage Control laws and regulations.
BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this act may be cited as
the "Alcoholic Beverage Control Enforcement Funding Amendment Act of 1999".
Sec. 2. The District of Columbia Alcoholic Beverage Control Act, approved January 24,
1934 (48 Stat. 319; D.C. Code §25-101 et seq.), is amended as follows:
(a) Section 9 (D.C. Code §25-109) is amended as follows:
(1) The section heading is amended by striking the word "Manufacture" and
inserting the phrase "Manufacture, importation," in its place.
(2) Subsection (a)( l ) is amended by designating the existing text as subparagraph (i)
and adding a new subparagraph (ii) to read as follows:
"(ii). No individual, partnership, association, or corporation, located outside
the District of Columbia shall ship, import, or cause to be shipped or imported into the
District of Columbia any alcoholic beverage without having first obtained a license under
this act for such shipment or importation.".
(b) Section 10(a) (D.C. Code §25-l 10(a)) is amended by striking the phrase
"offer for sale, consumption" and inserting the phrase "offer for sale,
importation, consumption" in its place.
(c) Section l l(a) (D.C. Code §25-l l l(a)) is amended by adding a new paragraph (2A)
to read as follows:
"(2A) Non-resident supplier's license. -- Such a license shall authorize
the holder thereof, located outside the District of Columbia, to sell and deliver or ship
alcoholic beverages into the District of Columbia to a licensed wholesaler or to a
retailer authorized to import alcoholic beverages pursuant to section 18 of "An Act
to amend the District of Columbia Alcoholic Beverage Control Act", approved August
27, 1935 [49 Stat. 897, 903]. The annual fee for such license shall be $250. An applicant
for a non-resident supplier's license shall be exempt from the provisions and requirements
of section 14 and shall submit an application in accordance with the provisions of section
49.".
(d) A new section 1 la is added to read as follows:
"Sec. 1 la. Primary American source of supply requirement.
"(a) It shall be unlawful for any holder of a non-resident supplier's license to
ship, solicit, accept, or fill any order for any alcoholic beverage from any licensee in
the District of Columbia unless the non-resident supplier is the primary American source
of supply for the brand of alcoholic beverage sought to be shipped or sold.
"(b) It shall be unlawful for any wholesaler to order, purchase, or receive any
alcoholic beverages for resale in the District of Columbia unless such wholesaler is the
primary American source of supply for the brand of alcoholic beverage sought to be
ordered, purchased or received; or such wholesaler is ordering, purchasing, or receiving
the brand of alcoholic beverages from a non-resident supplier, provided the non-resident
supplier is the primary American source of supply for the brand of alcoholic beverages
sought to be ordered, purchased or received. Nothing contained herein shall prevent a
wholesaler from ordering, purchasing or receiving alcoholic beverages from a dealer
licensed under the laws of any state or territory of the
United States with the consent of the primary American source of supply.
"(c) It shall be unlawful for any retailer authorized by section 18 of "An
Act to amend the District of Columbia Alcoholic Beverage Control Act", approved
August 27, 1935 [49 Stat. 897, 903] pursuant to an importation permit to order, purchase,
or receive any alcoholic beverages for resale in the District of Columbia unless such
retailer is ordering, purchasing, or receiving the brand of alcoholic beverage from a
non-resident supplier, and provided the non-resident supplier is the primary American
source of supply for the brand of alcoholic beverage sought to be ordered, purchased, or
received.
"(d) For the purposes of this section, the term "primary American source of
supply" means the producer or bottler or the exclusive agent of any such producer or
bottler. In the case of imported products, the term "primary American source of
supply" means either the foreign producer, bottler, or agent or the exclusive agent
in the United States of the foreign producer, bottler, or agent."
(e) Section 12 (D.C. Code §25-113) is amended as follows:
(1) Subsection (a) is amended by striking the phrase "A person not licensed
hereunder, owning an establishment for the manufacture of beverages located outside the
District of Columbia" and inserting the phrase "The holder of a non-resident
supplier's license issued hereunder "in its place.
(2) Subsection (b) is amended as follows:
(A) By adding the following first sentence: "The holder of a retailer's license
may hold or have an interest, direct or indirect, in the business of one nonresident
supplier licensee; provided, that the non-resident supplier's license shall authorize the
sale or shipment of alcoholic beverages only to the retail licensee that is interested in
or is the holder of its license and to no other licensee.";
(B) By inserting the phrase "non-resident supplier's license." after the
phrase "in any license other than a" in the existing second sentence;
(C) By inserting the phrase "non-resident supplier's license or" after the
phrase "any direct or indirect interest in any license other than a"; and
(D) By striking the phrase "shall include, but not be limited to, any pecuniary
interest in the operation, management, or profits of a licensed establishment" and
inserting the phrase "shall mean any interest, direct or indirect, and includes, but
is not limited to, any participation as a director or officer of a corporation or as a
partner in a partnership, or any pecuniary interest in the operation, management, or
profits of a licensed establishment, including the holding of stock" in its place.
(f) Section 13(e) (D.C. Code §25-114(e)) is amended by striking the word
"Each" and inserting the phrase "Except as to a non-resident supplier's
license, each" in its place.
(g) Section 14 (D.C. Code §25-115) is amended as follows:
(1) Subsection (a)( l ) is amended by adding a sentence at the end to read as follows:
"An applicant for a non-resident supplier's license shall be exempt from the
provisions of this section and shall submit an application in conformity with the
requirements of section 49".
(2) Subsection (g)(2) is amended by adding a new subparagraph (C) to read as follows:
"(C) A retail licensee has fully disclosed any interest, whether direct or
indirect, in a non-resident supplier's license held by the retail licensee, its officers,
directors, or stockholders."
(h) Section 16 (D.C. Code §25-117), is amended by adding a sentence to the end to read
as follows:
"Notwithstanding this provision, a non-resident supplier's license shall not be
transferable to another person or entity".
(i) Section 19 (D.C. Code §25-120) is amended as follows:
(1) The existing text is designated as subsection (a) and is amended by striking the
phrase "If any wholesaler of beverages," and inserting the phrase "Except
as provided in subsection (b) of this section, if any wholesaler or any non-resident
supplier of beverages," in its place and by adding "or non-resident
supplier" after the word "wholesaler" in the first paragraph; and
(2) A subsection (b) is added to read as follows:
"(b) Nothing in this section shall prevent a retail licensee from holding one
non-resident supplier's license, or having an interest in such subject to the provisions
and restrictions set forth in section 12(a) and (b) and as fully disclosed under section
14(g)(2)(C).".
(j) Section 23 (D.C. Code §25-124) is amended as follows:
(1) Subsection (a) is amended by striking the phrase "by a holder of a retailer's
license," and inserting the phrase "by a holder of a non-resident supplier's
license for resale to the holder of a retailer's license, "in its place.
(2) Subsection (c)(2) is amended as follows:
(A) By striking the phrase "No licensee holding a retailer's license shall
transport or cause to be transported" and inserting the phrase "No licensee
holding a retailer's license shall purchase any alcoholic beverages from the holder of a
non-resident supplier's license to import or transport or cause to be imported or
transported" in its place;
(B) By striking the phrase "unless such licensee has first obtained a permit"
and inserting the phrase "unless such retail licensee has first obtained a
permit" in its place;
(C) By striking the phrase "and brand or trade name of the beverage to be
transported and the names and addresses of the seller and of the purchaser" in the
third sentence and inserting the phrase "the brand or trade name of the beverages to
be transported, the names and addresses of the non-resident supplier and of the
retailer" in its place; and
(D) By adding a sentence to follow the language inserted in subparagraph (C) above to
read as follows: "A copy of the invoice evidencing the transaction shall be submitted
to the Board and appended to the permit for retention by the Board.".
(k) Section 39(a) (D.C. Code §25-137(a)) is amended by striking the phrase "the
holder of a manufacturer's, wholesaler's, or a retailer's license issued under this
act," and inserting the phrase "the holder of a non-resident supplier's,
manufacturer's, or wholesaler's license, or a retailer's license pursuant to a validly
issued import permit, issued under this act," in its place.
(l) Section 40(a-1)(2) (D.C. Code §25-138 (a-1)(2)) is amended as follows:
(1) By striking in the first sentence the phrase "No licensee holding a retailer's
license shall transport or cause to be transported" and inserting the phrase "No
licensee holding a retailer's license shall purchase any alcoholic beverages from the
holder of a nonresident supplier's license to import or transport or cause to be imported
or transported" in its place;
(2) By striking the phrase "unless such licensee has first obtained a permit"
and inserting the phrase "unless such retail licensee has first obtained a
permit" in its place;
(3) By striking in the third sentence the phrase "and brand or trade name of the
beverage to be transported and -the names and addresses of the seller and of the
purchaser" and inserting the phrase "the brand or trade name of the beverages to
be transported, the names and addresses of the non-resident supplier and of the
retailer" in its place; and
(4) By adding a sentence to follow the inserted language in paragraph (3) above to read
as follows: "A copy of the invoice evidencing the transaction shall be submitted to
the Board and appended to the permit for retention by the Board.".
(m) A new section 49 is added to read as follows:
"Sec. 49. Non-resident supplier's license; application; consent to jurisdiction.
"(a) Any individual, partnership, or corporation applying for issuance or renewal
of a non- resident supplier's license shall file with the Board an application in the form
prescribed by the Mayor. The application shall contain the following information and any
additional information the Board may require:
"(1) In the case of an individual applicant, the trade name of the business if
applicable and the name and address of the individual; in the case of a partnership
applicant, the trade name of the business if applicable and the name and address of each
partner of the partnership; and in the case of a corporate applicant, the legal name,
trade name, situs of incorporation and the principal place of business, and the officers
and directors of the corporation;
"(2) A list of the brands or trademarks of the alcoholic beverage products to be
imported and distributed in the District of Columbia so as to fulfill the brand
registration requirements established by regulation;
"(3) The name and address of the authorized resident agent for the applicant. The
authorized resident agent shall reside or have an office within the District of Columbia
and shall submit evidence of its authorization to act as agent on behalf of the applicant
on a form prescribed by the Mayor and containing information set forth by regulation. Any
notice of a hearing before the Alcoholic Beverage Control Board, including, but not
limited to, hearings for the refusal, termination or suspension of a non- resident
supplier's license, may be served on the applicant by certified mail in the following
manner:
"(A) To the resident agent designated in the application or any amendment on file
with the Board, or
"(B) To any person licensed as a solicitor in the District of Columbia as agent
for the non-resident supplier; or
"(C) To the non-resident supplier; if the non-resident supplier is a corporation,
then to the principal place of business listed in the application; and
"(4) Any interest, whether direct or indirect, held by the holder of a retailer's
license, its officers, directors, or stockholders, in the applicant for the non-resident
supplier's license, including its officers, directors, or stockholders.
"(b) As a condition to importing, transporting, or selling alcoholic beverage
products into and within the District of Columbia, the applicant shall represent and
warrant to the Board, as follows:
"(1) That the applicant will comply with all federal and District of Columbia
statutes and regulations relating to packaging, branding, marking, labeling, bottling,
container sizes and fill, taxation, advertising, records and reports, and commercial use;
and
"(2) That the applicant consents to the jurisdiction and continuous authority of
the Board and that its activities within the District of Columbia will be subject to the
rules, regulations, and supervision of the Board".
(n) A new section 50 is added to read as follows: "Sec. 50. Alcoholic Beverage
Control Board Enforcement Enterprise Fund. "(a) For the purposes of this section, the
term:
"(1) "Alcoholic Beverage Control Board Enforcement Enterprise Fund"
means the enterprise fund established pursuant to this section.
"(2) "Automation improvement" means the conversion of any apparatus,
function process, or system that currently is performed by hand at the Alcoholic Beverage
Control Board into an apparatus, function, process, or system that is performed by
computer or other electronic or mechanical device-that operates automatically. This term
also means the linkage of any apparatus, function, process, or system of the Alcoholic
Beverage Control Board to any other District government operation.
"(3) "Enforcement enhancement" means the hiring and staffing of
Alcoholic Beverage Control Board inspectors and support staff to adequately investigate
and police establishments selling, serving, or providing alcoholic beverages within the
District of Columbia.
"(b)(l) There is hereby established the Alcoholic Beverage Enforcement Enterprise
Fund ("Fund"), which shall be classified as a proprietary fund and a type of
enterprise fund for purposes of section 4(a) of the District of Columbia Fund Accounting
Act of 1980, effective June 14, 1980 (D.C. Law 3-70; D.C. Code §47-373).
"(2) Revenue credited to the Alcoholic Beverage Control Board Enforcement
Enterprise Fund is specifically designated to be expended by the Alcoholic Beverage
Control Board for the purpose of enforcement enhancement and automation improvement The
Fund shall not be used by any other District government agency.
"(3) The Alcoholic Beverage Control Enforcement Enterprise Fund shall be credited
all funds obtained pursuant to this act without regard to fiscal year limitation. Revenue
credited to the Fund shall not revert to the District's General Fund at the end of any
fiscal year or at any other time, but shall be continually available to the Alcoholic
Beverage Control Board for the purposes set forth in this Act.
"(4) All interest earned on monies deposited in the Fund shall be credited to the
Fund and used solely for the purposes designated in this section.
"(5) Nothing in this section shall be construed to prohibit or limit the
appropriation of additional funds from the revenues of the District for the operations of
the Alcoholic Beverage Control Board, including appropriations to support the purposes
specified in subsection (b)(2) of this section. The revenues accruing to the Fund shall be
considered as supplementing and enhancing the operations of the Alcoholic Beverage Control
Board, and are not intended to be used to supplant support for the Alcoholic Beverage
Control Board provided through the General Fund of the District or any other Enterprise
Funds that may assist the Board.
"(c) The Fund shall consist of all revenues received from the following fees
charged by the Alcoholic Beverage Control Board:
"(1) The annual license fee imposed by section l l(a)(2A) upon a non-resident
supplier;
"(2) The fee imposed by 23 DCMR §202.1 for each import permit issued by the
Board.
Sec. 3. Section 18 of "An Act to amend the District of Columbia Alcoholic Beverage
Control Act", approved August 27, 1935 (49 Stat. 897, 903, D.C. Code _ 25-112) is
amended by changing the title of the section by striking the word
"transportation" and inserting the phrase "importation or
transportation" in its place and in the text of the section striking the words
"transport" and "transported" and inserting the phrases "import
or transport" and "imported or transported" respectively, in their place.
Sec. 4. The Alcoholic Beverage Control Regulations, issued June 24, 1988, are amended
as follows:
(a) Section 200 (23 DCMR 200) is amended by adding a new subsection to read as follows:
"200.14 A non-resident supplier's license, issued under authority of D.C. Code
§25-111 (a)(2A), shall authorize the holder, located outside the District of Columbia, to
sell and deliver or ship alcoholic beverages into the District of Columbia to a licensed
wholesaler or to a retailer authorized to import alcoholic beverages pursuant to D.C. Code
§25-112.".
(b) Section 202 (23 DCMR 202) is amended by adding new lines in subsection 202.2 to
read as follows:
| "License Class |
Licensure Period |
Initial Two-Year Period |
| "Non-Resident Supplier |
Apr. 1 to Mar. 31 |
1999-200.". |
(c) Section 203 (23 DCMR 203) is amended by adding a new subsection to read as follows:
"203.19 The annual fee for a non-resident supplier's license shall be $250.
(d) Section 204 (23 DCMR 204) is amended as follows:
(1) Subsection 204.2 is amended to read as follows:
"204.2 The fee for each Importation Permit shall be $25 and shall entitle the
retail licensee to import from a non-resident supplier distilled spirits, wines, and beer
not to exceed 35.7 gallons per permit.".
(e) Two new subsections are added to read as follows:
"204.5 The fee for each application for certification as an approved provider,
whether new or a renewal, under §700.7 shall be $100.
"204.6 The fee for filing the certification of completion of the alcohol training
and education program with the Board under §700.4 shall be $20.00.".
(f) Section 302 (23 DCMR 302) is amended by adding a new paragraph (e) to Subsection
302.1 to read as follows:
"(e) A non-resident supplier's license.".
(g) Subsection 400.1 of Section 400 (23 DCMR 400) is amended by striking the phrase
"except for a Retailer's License" and inserting the phrase "except for a
non-resident supplier's license, Retailer's License" in its place.
(h) Section 402 (23 DCMR 402) is amended as follows:
(1) Subsection 402.1 is amended by striking the phrase "subtitle, including the
requirements" and inserting the phrase "subtitle. Except as to a non-resident
supplier's license, the Board shall further determine that each applicant has met the
requirements" in its place.
(2) Subsection 402.2 is amended by striking the word "and" at the end of
paragraph (a), the period at the end of paragraph (b), inserting a semi-colon and the word
"and" at the end of paragraph (b), and adding a paragraph (c) to read as
follows:
"(c) A retail licensee has fully disclosed any interest, whether direct or
indirect, in a nonresident supplier's license held by the retail licensee, its officers,
directors, or stockholders.".
(i) Section 403 (23 DCMR 403) is amended as follows:
(1) Subsection 403.2 is amended by striking the phrase "No person owning a
manufacturing establishment located outside of the District of Columbia shall hold any
license issued by the Board other than one (1) Wholesaler's License" and inserting
the phrase "The holder of a non- resident supplier's license issued hereunder may
hold one (1) Wholesaler's License" in its place.
(2) Subsection 403.3 is amended by striking the phrase "except a Class C, D, or
E" and inserting the phrase "except a non-resident supplier's license or
Retailer's Class C, D, or E" in its place.
(3) Subsection 403.4 is amended by striking the phrase "except a Retailer's
License Class E" and inserting the phrase "except a non-resident supplier's
license or Retailer's License Class E" in its place.
(j) Section 403 (23 DCMR 403) is amended by adding a new subsection to
read as follows:
"403.8 The holder of a retailer's license may hold or have an interest, direct or
indirect, in 1 non-resident supplier's license provided that the non-resident supplier's
license shall authorize the sale or shipment of alcoholic beverages only to the retail
licensee that is interested in or is the holder of its license and to no other
licensee.".
(k) Subsection 404.1 of Section 404 (23 DCMR 404) is amended by
striking the phrase "except a Solicitor's License" and inserting the phrase
"except a non-resident supplier's license or a Solicitor's License" in its
place.
(l) Subsection 500.1 of Section 500 (23 DCMR 500) is amended by adding
a sentence after the first sentence to read as follows:
"Unless otherwise provided, a non-resident supplier's license shall be exempt from
the provisions of subsections 501 through 507 of this Chapter and shall submit an
application containing the information and certifications prescribed by subsection 508 of
this Chapter.".
(m) A new section 508 is added to read as follows:
"508 APPLICATION FOR NON-RESIDENT SUPPLIER'S LICENSE
"508.1 Each application for a license shall be made by and in the name of the true
and actual owner of the business for which a license is sought and shall be verified by
the affidavit of the following:
"(a) An individual applicant;
"(b) Each general partner of an applicant partnership; or
"(c) The president or vice president of an applicant corporation.
"508.2 Each application for a new non-resident supplier's license or a renewal
shall contain the following information and certifications:
"(a) In the case of an individual applicant, the trade name of the business if
applicable and the name and address of the individual; in the case of a partnership
applicant, the trade name of the business if applicable and the name and address of each
partner of the partnership; and in the case of a corporate applicant, the legal name,
trade name, situs of incorporation and the principal place of business, and the names of
the officers and directors of the corporation.
"(b) A list of the brands or trademarks of the alcoholic beverage products to be
imported and distributed in the District of Columbia pursuant to the license authority.
"(c) Designation of the authorized resident agent for the applicant. The
authorized resident agent shall reside or have an office within the District of Columbia
and shall submit evidence of its authorization to act as agent on behalf of the applicant
on a form prescribed by the Mayor and containing the following information:
"(i) Name and address of the applicant;
"(ii) Name and address of the applicant's resident agent; and
"(iii) Certification signed by both the applicant and the agent that the agent is
authorized to accept service of process or notices from the Board, including notice of
license refusal, termination or suspension, on behalf of the applicant.
"(d) The non-resident supplier shall immediately notify the Board of any change in
the designation of the non-resident supplier's resident agent or the resident agent's
address.
"(e) Any interest, whether direct or indirect, held by a Retail Licensee, its
officers, directors, or stockholders, in the applicant for the non-resident supplier's
license, including its officers, directors, or stockholders.
"508.3 As a condition to doing business in the District of Columbia, the applicant
shall represent and warrant to the Board, as follows:
"(a) That it will comply with all federal and District of Columbia statutes and
regulations related to packaging, branding, marking, labeling, bottling, container sizes
and fill, taxation, advertising, records and reports, and commercial use.
"(b) That the applicant consents to the jurisdiction and continuous authority of
the Board and that its activities within the District of Columbia will be subject to the
rules, regulations and supervision of the Board.
"508.4 A non-resident supplier's license shall not be transferable to any other
person or entity. For the purposes of this section, the phrase "transfer" means
any transfer to an individual or change in stock ownership or partnership interest of
fifty percent (50%) or more, which occurs in any one (1) calendar year, as measured from
the date of the first transfer or change in ownership or interest.".
(n) A new section 605 is added to read as follows:
"605 NON-RESIDENT SUPPLIER EXEMPTIONS
"605.1 Unless otherwise provided, the holder of a non-resident supplier's license
shall be exempt from the provisions of subchapter 604 of this Title.".
(o) Section 700 (23 DCMR 700) is amended by adding nine new subsections to read as
follows:
"700.2 Every person employed by a retail licensee who sells or serves alcoholic
beverages to the public either for consumption on or off-premise in the scope of their
employment shall complete an alcohol training and education program conducted by an
approved provider.
"700.3 Every employee who was employed on June 1, 1997 and who is required to
complete this program shall complete the program before December 1, 1997. Every employee
hired after June 1, 1997, who is required to complete this program shall complete the
program within sixty (60) days of commencing employment.
"700.4 Every employee required to complete an alcohol training and education
program shall submit proof of such completion to the Board in the form of a certification
by the approved provider. The employee shall be required to obtain a recertification of
the completion of an alcohol training and education program every two years from the date
of their initial certification.
"700.5 For purposes of this section, an "approved provider" shall mean
any person or entity permitted by the Board under §700.7 to establish and conduct an
alcohol training and education program as set forth in §700.6.
"700.6 The approved provider shall include the following subjects in the
curriculum and instruction:
"(a) Alcohol's effect on the body and behavior, especially as to driving ability;
"(b) Recognizing the problem drinker;
"(c) Intervention techniques, involving methods of dealing with the problem
customer who has had or is approaching the point of having had, too much to drink;
"(d) Methods of recognizing and dealing with underage customers;
"(e) Prevention techniques involving effective identification and carding
Regulations; and procedures, and methods to reasonably regulate the service of alcoholic
beverages to patrons.
"(f) Explanation of the District of Columbia Alcoholic Beverage Control Act and
"(g) Advertising, promotion, and marketing of alcoholic beverages for safe and
responsible drinking patterns and standard operating procedures for dealing with
customers.
"700.7 Independent contractors, private individuals, or educational institutions
which seek recognition and approval to provide alcoholic beverage server training shall
proceed as follows:
"(a) Submit a letter of intent to the Board's Program Manager which must include a
copy of all training materials, curricula, and examinations, along with the fee as set
forth in §204.5.
"(b) The Program Manager will schedule a presentation of the applicant's program
for evaluation by the Enforcement Section of the Board who will prepare a written
evaluation report to cover compliance with training standards, quality, and effectiveness
of training.
"(c) Should the Program Manager find that the applicant meets the requirements of
this Section, the application will then be placed before the Board for consideration at
its next regularly scheduled hearing.
"(d) The Board shall be the final judge of the applicant as to qualifications and
satisfaction the Board's training standards.
"(e) Approval of an alcohol training and education program shall expire two (2)
years from the date of the course obtaining approval. The Board may approve a program for
successive two (2) year periods provided the course meets the criteria applicable at the
time of renewal and the provider pays the renewal fee set forth in §204.5.
"700.8 In order for any program to be recognized and-approved by the Board, its
training instructors must meet the requirements as follows:
"(a) Be certified by an accredited college or university as an alcoholic beverage
sales and server trainer; or
"(b) Be trained by someone who is certified by an accredited college or university
to train alcoholic beverage sales and server trainers; or
"(c) Be certified as an instructor by a nationally known and recognized beverage
sales and server program and continue to maintain re-certification as required; and
"(d) Demonstrate an understanding and knowledge of the District of Columbia
Alcoholic Beverage Control Act and Regulations; and
"(e) Be a high school graduate or successfully complete a state recognized high
school equivalency program.
"700.9 An approved provider shall provide to each employee enrolled in the program
who attended the full program and successfully completed any test required by the program
provider, according to the standards of the program provider for passing, a certification
of completion on a form prescribed by the Mayor. The approved program provider shall
deliver the certification of completion to the employee within ten (10) days of the
employee successfully completing the program.
"700.10 An approved provider may charge each employee enrolling for their program
a fee not to exceed $50.".
(p) Section 709 (23 DCMR 709) is amended to read as follows:
(1) Subsection 709.1 is amended by striking the phrase "Manufacturer's License
Class A or B." and inserting the phrase "non-resident supplier's license, the
holder of a Manufacturer's License Class A or Class B." in its place.
(2) Subsection 709.2 is amended by striking the phrase "The holder of a
Manufacturer's License or the holder of a Wholesaler's License" and inserting the
phrase "The holder of a non-resident supplier's license, the holder of a
Manufacturer's License, or the holder of a Wholesaler's License" in its place.
(q) Subsection 716.1 of Section 716 (23 DCMR 716) is amended by striking the phrase
"Each licensee" and inserting the phrase "Each licensee, except the holder
of a non-resident supplier's license," in its place.
(r) Section 900 (23 DCMR 900) is amended as follows:
(1) Subsection 900.1 is amended by striking the phrase "manufacturer or wholesaler
to any retailer" and inserting the phrase "non-resident supplier, manufacturer,
or wholesaler to any retailer" in its place.
(2) Subsection 900.2 is amended by striking the phrase "manufacturer or wholesaler
who has knowledge" and inserting the phrase "non-resident supplier,
manufacturer, or wholesaler who has knowledge" in its place.
(3) Subsection 900.3 is amended by striking the phrase "manufacturer or wholesaler
or accepted by the retailer" and inserting the phrase "non-resident supplier,
manufacturer, or wholesaler or accepted by the retailer" in its place.
(4) Subsection 900.5 is amended by striking the phrase "manufacturer or wholesaler
of cash or a check, draft, or other order for payment" and inserting the phrase
"nonresident supplier, manufacturer, or wholesaler of cash or a check, draft, or
other order for payment" in its place.
(5) Subsection 900.7 is amended as follows:
(a) By striking the phrase "manufacturer or wholesaler to do either" and
inserting the phrase "non-resident supplier, manufacturer, or wholesaler to do
either" in its place; and
(b) By striking the phrase "in payment for alcoholic beverages shall
constitute" and inserting the phrase "from a retailer in payment for alcoholic
beverages shall constitute" in its place.
(s) Section 902 (23 DCMR 902) is amended as follows:
(1) Subsection 902.2 is amended by striking the phrase "each manufacturer and
wholesaler shall file with each other manufacturer and wholesaler" and inserting the
phrase "nonresident supplier, manufacturer, and wholesaler shall file with the Board
and shall deliver to each manufacturer and wholesaler" in its place;
(2) Subsection 902.3 is amended by adding a sentence after the first sentence to read
as follows: "The Board shall refuse to issue any import permit to any Retailer listed
under §902.2 where the invoice submitted with the import permit allows the sale of
product on terms other than for cash on delivery.".
(3) Subsection 902.4 is deleted.
(4) Subsection 902.5 is amended as follows:
(a) By striking the phrase "Each manufacturer and wholesaler shall" and
inserting the phrase "Each non-resident supplier, manufacturer, and wholesaler
shall" in its place; and
(b) By striking the phrase "which the manufacturer or wholesaler received"
and inserting the phrase "which the non-resident supplier, manufacturer, or
wholesaler received" in its place.
(t) Subsection 906.1 of Section 906 (23 DCMR 906) is amended by striking the phrase
"A wholesaler shall not require" and inserting the phrase "A non-resident
supplier, manufacturer, or wholesaler shall not require" in its place.
(u) Subsection 908.1 of Section (23 DCMR 908) is amended by striking the phrase
"The holder of a Retailer's License Class A or Class B" and inserting the phrase
"The holder of a nonresident supplier's license, Manufacturer's License, Wholesaler's
License, or a Retailer's License Class A or Class B" in its place.
(t)[sic] The existing text in Section 909 (23 DCMR 909) is deleted and a new Section
909 is added to read as follows:
"909.1. It shall be unlawful for any holder of a non-resident supplier's license
to ship, solicit, accept or fill any order for any alcoholic beverage from any licensee in
the District of Columbia unless the non-resident supplier is the primary American source
of supply for the brand of alcoholic beverage sought to be shipped or sold.
"909.2. It shall be unlawful for any wholesaler to order, purchase or receive any
alcoholic beverages for resale in the District of Columbia unless such wholesaler is the
primary American source of supply for the brand of alcoholic beverage sought to be
ordered, purchased or received; or such wholesaler is ordering, purchasing or receiving
the brand of alcoholic beverages from a non-resident supplier, provided the non-resident
supplier is the primary American source of supply for the brand of alcoholic beverages
sought to be ordered, purchased or received. Nothing contained herein shall prevent a
wholesaler from ordering, purchasing or receiving alcoholic beverages from a dealer
licensed under the laws of any state or territory of the United States with the consent of
the primary American source of supply.
"909.3. It shall be unlawful for any retailer authorized by section 18 of "An
Act to amend the District of Columbia Alcoholic Beverage Control Act", approved
August 27, 1935 (49 Stat. 897, 903, D.C. Code §25-112) pursuant to a permit to order,
purchase, or receive any alcoholic beverages for resale in the District of Columbia unless
such retailer is ordering, purchasing, or receiving the brand of alcoholic beverages from
a non-resident supplier, and provided the nonresident supplier is the primary American
source of supply for the brand of alcoholic beverages sought to be ordered, purchased, or
received.
"909.4. The term "primary American source of supply" as used herein
shall mean the producer, bottler or the exclusive agent of any such producer or bottler.
In the case of imported products the "primary American source of supply" shall
mean either the foreign producer, bottler or foreign agent or the exclusive agent in the
United States of the foreign producer or bottler.".
(u)[sic] Subsection 1000.1 of Section 1000 (23 DCMR 1000) is amended by adding a
sentence at the end to read as follows:
"Unless otherwise provided, the holder of a non-resident supplier's license shall
be exempt from the provisions of this Chapter.".
(v) Section 1205 (23 DCMR 1205) is amended as follows:
(1) Subsection 1205.1 is amended by striking the phrase "Each holder of a
Manufacturer's or Wholesaler's License" and inserting the phrase "Each holder of
a non-resident supplier's, Manufacturer's, or Wholesaler's License" in its place.
(2) Subsection 1205.2 is amended by striking the phrase "within three (3)
days" and inserting the phrase "within thirty (30) days" in its place.
(w) Section 1207 (23 DCMR 1207) is deleted in its entirety and a new section is added
to read as follows:
"1207 REPORTS BY NON-RESIDENT SUPPLIERS AND INVOICES
"1207.1 Each holder of non-resident supplier's license shall keep and maintain
adequate books and records for each sale of alcoholic beverages to the holder of a
Wholesaler's or Retailer's license, including the following:
"(a) The date of each sale;
"(b) The name, address, and license number of the purchaser; and
"(c) The quantity in gallons of each brand of beverage in each sale.
"1207.2 With each sale of an alcoholic beverage, the holder of a non-resident
supplier's license shall cause to be made an invoice of each sale showing the following
information:
"(a) The date of each sale;
"(b) The names, addresses, and license numbers of both the vendor and the vendee;
"(c) The quantity in gallons of each character and brand of beverage in each sale;
"(d) The price of each character and brand of beverage with total price; and
"(e) A true, accurate, and complete statement of the terms and conditions on which
the sale is made.
"1207.3 With each sale to the holder of a Wholesaler's license, the invoice shall
be prepared in duplicate, and shall be consecutively numbered. The original of the invoice
shall be delivered to the vendee and the duplicate invoice shall be retained by the
vendor.
"1207.4 With each sale to the holder of a Retailer's license and subject to a
validly issued import permit, the invoice shall be prepared in triplicate, and shall be
consecutively numbered. The original of the invoice shall be delivered to the vendee, the
second copy shall be retained by the Retail licensee and the third copy shall be provided
to the Board as required by §1300.4.".
(x) Section 1209 (23 DCMR 1209) is amended by adding a new subsection to read as
follows:
"1209.4 The holder of a non-resident supplier's license shall keep and maintain
all books, records and invoices referred to in this chapter for a period of four (4)
years, said four (4) years to run from the latest transaction recorded in the books and
records, and shall furnish the books, records and invoices within seventy-two (72) hours
of demand by the Board, its designated agent, and the Finance Officer or a designated
agent.".
(y) Section 1300 (23 DCMR 1300) is amended as follows:
(1) The subtitle to section 1300 is amended by striking the phrase "TRANSPORT
PERMITS" and inserting the phrase "IMPORTATION PERMITS" in its place.
(2) Subsection 1300.1 is amended by striking the phrase "shall transport, or cause
to be transported" and inserting the phrase "shall import or transport, or cause
to be imported or transported" in its place.
(3) Subsection 1300.2 is amended by striking the phrase "a transport permit to the
holder of a Retailer's License to transport, or cause to be transported into the District
of Columbia, alcoholic beverages" and inserting the phrase "a import permit to
the holder of a Retailer's License to import or transport, or cause to be imported or
transported into the District of Columbia from the holder of a non-resident supplier's
license, alcoholic beverages" in its place.
(4) Subsection 1300.3 is amended to read as follows:
"An import permit issued under §1300.2 shall specifically set forth the following
information:
"(a) The name, address and license number of the Retailer purchasing the beverages
to be imported;
"(b) The character and brand or trade name of the beverages to be imported;
"(c) The quantity, in cases and gallons, of each character and brand of beverage
to be imported;
"(d) The size of the containers of the alcoholic beverages to be imported; and
"(e) The name, address and license number of the non-resident supplier selling the
product to be imported.".
(5) Subsection 1300.4 is amended by striking the phrase "A transport permit"
and inserting the phrase "The import permit" in its place and by adding two
sentences at the beginning of the subsection to read as follows:
"When applying for an import permit, the retailer shall provide a copy of the
invoice for the beverages to be transported and this copy shall be retained by the Board
and shall be attached to the import permit and made a part thereof for all products to be
imported pursuant to the permit. Said invoices shall in all respects comply with the
requirements set forth in subsection 1207.2.".
(6) Subsection 1300.5 is amended by striking the phrase "Immediately upon delivery
of the beverages imported under §1300.2 to the retail licensee, the transport
permit" and inserting the phrase "The import permit shall be valid for a period
of ten (10) days and immediately upon delivery of the beverages imported under §1300.2 to
the retail licensee, the import permit" in its place.
(7) A new subsection 1300.7 is added to read as follows:
"1300.7. An import permit shall be issued by the Board for each delivery of
alcoholic beverages imported at the fee set forth in §204.2 of this subtitle.".
(z) Section 1301 (23 DCMR 1301) is deleted in its entirety.
(aa) Subsection 1503.1 of Section 1503 (23 DCMR 1503) is amended by striking the phrase
"but shall not apply to Retailer Licenses Class F or G or to Solicitor's
Licenses" and inserting the phrase "but shall not apply to non-resident
supplier's licenses, Retailer Licenses Class F or G. or to Solicitor's Licenses" in
its place.
(bb) Subsection 1509.1 of Section 1509 (23 DCMR 1509) is amended by striking the phrase
"Any person may file a protest" and inserting the phrase "Except as to a
non-resident supplier's license, any person may file a protest" in its place.
Sec. 5. The Council adopts the fiscal impact statement in the committee report as the
fiscal- impact statement required by section 602(c)(3) of the District of Columbia Home
Rule Act, approved December 24, 1973 (87 Stat. 813; D.C. Code §1-233(c)(3)).
Sec. 6. This act shall take effect following approval by the Mayor (or in the event of
veto by the mayor, action by the Council to override the veto), approval by the Financial
Responsibility and Management Assistance Authority as provided in section 203(a) of the
District of Columbia Financial Responsibility and Management Assistance Act of 1995,
approved April 17, 1995 (109 Stat. 116; D.C. Code §47-3392.3(a)), a 30-day period of
Congressional review as provided in section 602(c)(1) of the District of Columbia Self
Government and Governmental Reorganization Act, approved December 24, 1973 (87 Stat. 813;
D.C. Code §1-233(c)(1)), and publication in the District of Columbia Register. |
