DRAFT CSC, Title 15.  Alcoholic Beverage Control
 
CHAPTER 1
Alcoholic Beverage Control

Subchapters:
A     General Provisions ( 1001)
            B     Alcoholic Beverage Control Board ( 1011-1022)
            C     Licensing ( 1031-1051)
D     Restrictions and Prohibitions ( 1061-1078)
E     Enforcement and Penalties ( 1081-1088)


SUBCHAPTER A
General Provisions

1001.  Definitions.

      1001.  Definitions.
     As used in this Chapter, unless otherwise specifically provided:

     (1)  "Alcoholic beverage" means beer, distilled spirits and wine, and every liquid which contains one-half of one percent or more of alcohol by volume and which is fit for beverage purposes, either alone or when combined with other substances;

     (2)  "Beer and malt beverages" means beverages containing not more than 15 fifteen percent alcohol by volume obtained by a process of fermentation of grain, hops, and malt in water.

     (3)  "Club" means an organization which operates an establishment for social purposes and not for pecuniary gain, having a bona fide membership list, with elected officers and by-laws.

     (4)  "Minor" means any person under twenty-one years 18 of age.

Source:  3 TDC 1, as superseded in part by TSL 6-66, as amended by CSL 2-94-08, modified.
 
 

SUBCHAPTER B
Alcoholic Beverage Control Board

1011.  Alcoholic Beverage Control Board; Composition.
1012.  Alcoholic Beverage Control Board; Ineligibility.
1013.  Alcoholic Beverage Control Board; Disqualification and removal.
1014.  Alcoholic Beverage Control Board; Compensation.
1015.  Alcoholic Beverage Control Board; Powers.
1016.  Alcoholic Beverage Control Board; Regulations.
1017.  Alcoholic Beverage Control Board; Power to require records and reports.
1018.  Alcoholic Beverage Control Board; Power to prescribe forms.
1019.  Alcoholic Beverage Control Board; Fees.
1020.  Alcoholic Beverage Control Board; Records.
1021.  Alcoholic Beverage Control Board; Meetings.
1022.  Alcoholic Beverage Control Board; Procedure for application approval.

      1011.  Alcoholic Beverage Control Board; Composition.
     There shall be an Alcoholic Beverage Control Board which shall consist of five members appointed by the District Administrator Governor for terms of two years each.  The Truk District Chuuk State Chief of Police and Truk District Chuuk State Director of Health Services shall serve as ex-officio members of the board. The District Administrator Governor shall designate one of the members as Chairman of the Board.

Source:  3 TDC 2, modified.

      1012.  Alcoholic Beverage Control Board; Ineligibility.
     A person is not eligible for membership on the Board who:

     (1)  is or becomes interested, directly or indirectly, in any business involving the importation, manufacture, or sale of alcoholic beverages, provided, that ownership of stock alone shall not constitute an "interest" under this Section;

     (2)  has not reached the age of 30 thirty years; and

     (3)  has been convicted of a felony for which he has not been pardoned.

Source:  3 TDC 3.

      1013.  Alcoholic Beverage Control Board; Disqualification and removal.
     The District Administrator Governor shall remove any member of the Board whenever grounds for disqualification appear.

Source:  3 TDC 4, modified.

      1014.  Alcoholic Beverage Control Board; Compensation.
     Every member of the board who is not in the service of the government for which he receives compensation shall be paid an amount to be determined by the District Administrator Governor.

Source:  3 TDC 5, modified.

      1015.  Alcoholic Beverage Control Board; Powers.
     The Board shall have the power to license the importation, manufacture, and sale of alcoholic beverages, and to suspend, revoke, and reinstate such licenses.

Source:  3 TDC 6.

      1016.  Alcoholic Beverage Control Board; Regulations.
     The Board shall make regulations consistent with the provisions of this Chapter and amend or repeal such regulations as it deems necessary to carry out the intention of this Chapter and to exercise the powers and perform the duties conferred upon it.

Source:  3 TDC 7.

      1017.  Alcoholic Beverage Control Board; Power to require records and reports.
     The Board shall have the power to prescribe the character and manner of keeping books and records by licensees, common and private carriers, and other persons as are necessary to enable the Board to exercise its powers and duties.

Source:  3 TDC 8.

      1018.  Alcoholic Beverage Control Board; Power to prescribe forms.
     The Board shall prescribe the form for all applications for licenses or renewal of licenses and other papers it shall require including verification, and the information to be contained in such application and other papers.  It shall prescribe the place for posting licenses by licensees.

Source:  3 TDC 9.

      1019.  Alcoholic Beverage Control Board; Fees.
     The Board shall cause all fees received by it to be paid to the District Treasurer State Treasury.

Source:  3 TDC 10, modified.

      1020.  Alcoholic Beverage Control Board; Records.

     (1)  The Board shall cause special records to be prepared of all its meetings, proceedings, and business including the number, class, and kinds of licenses issued, denied, suspended, and revoked, and monies received and disbursed, which records shall be open to public examination.

     (2)  The Board shall render a report to the District Administrator Governor 30 thirty days prior to the close of each fiscal year, setting forth the details of all its activities for the preceding year, based upon such records.

Source:  3 TDC 11, modified.

      1021.  Alcoholic Beverage Control Board; Meetings.
     Meetings shall be held periodically, as conditions require, and shall be called by the Chairman.

Source:  3 TDC 12.

      1022.  Alcoholic Beverage Control Board; Procedure for application approval.
     All members of the Board shall have the opportunity to consider each license application and shall either approve or disapprove the same.  The Chairman shall review the application first, sending it then to each of the members in turn. A simple majority of the membership shall constitute a quorum and a decision by the majority present shall prevail.

Source:  3 TDC 13.
 
 

SUBCHAPTER C
Licensing

1031.  Licenses required.
1032.  Licenses; Lack of; Disposal of stock.
1033.  Exception; Sacramental wines.
1034.  Exception; New arrivals.
1035.  Licenses; Type and amount.
1036.  Licenses; Fees; Reductions.
1037.  Licenses; Expiration date.
1038.  Licenses; Privileges; Limitations.
1039.  Licenses; Limitations.
1040.  Licenses; Wholesaler.
1041.  Licenses; Retail on-sale.
1042.  Licenses; Retail off-sale.
1043.  Licenses; Club.
1044.  Real party in interest.
1045.  License; Minor.
1046.  License; Prior revocation.
1047.  License; Unfit person.
1048.  License; Near church, hospital, school.
1049.  License; On-sale; Number.
1050.  Board; Disapproval of applications.
1051.  License denial; Review.

      1031.  Licenses required.
     Except as otherwise provided in this Chapter, a person shall not manufacture or sell alcoholic beverages without a license.

Source:  3 TDC 14, as amended by 26-1-11, 1 (14).

      1032.  Licenses; Lack of; Disposal of stock.
     A person in possession of a stock of lawfully acquired alcoholic beverages following the revocation or voluntary relinquishment of such a license to sell the same, may sell such stock under the supervision of the Board and in such manner as the Board shall by regulation prescribe, to a licensee authorized to sell such alcoholic beverages.

Source:  3 TDC 15.

      1033.  Exception; Sacramental wines.
     A religious organization may import wine for use in its rites without the necessity of a license under this Chapter.

Source:  3 TDC 16.

      1034.  Exception; New arrivals.
     A person entering Truk District Chuuk State for the first time or returning to it after an absence of 15 fifteen or more days may bring with him for private use, and not for resale, alcoholic beverages not exceeding one gallon in quantity without a license.

Source:  3 TDC 17, modified.

      1035.  Licenses; Type and amount.
     The type and amount of liquor license hereunder are hereby established as follows:

     (1)  Class 1.  Wholesale License

     (a)  General                                $300.00

     (2)  Class 2.  Retail License (served in establishment)

     (a)  Restaurant (General)             $500.00

     (b)  Club & Bar (General)             $500.00

     (3)  Class 3.  Retail License (without establishment)

     (a)  General                                $500.00

Source:  3 TDC 18, as amended by CSL 191-03, 1(18).

Editor's note:  CSL 191-03 that amended this section was signed into law by the Governor on March 8, 1991.

      1036.  Licenses; Fees; Reductions.
     If an applicant applies for a license after the beginning of a fiscal year but during the first quarter of the year, he shall pay the full fee therefore.  If he applies after the end of the first quarter and during the second quarter, he shall pay three-fourths of the fee.  If he applies after the end of the second quarter, he shall pay one-half of the fee regardless of when he applies.

Source:  3 TDC 19.

      1037.  Licenses; Expiration date.
     The licenses specified in Section 1035 18 of this Chapter shall be issued for an indefinite period; provided however, that each licensee shall pay an annual fee as specified in Section 1035 18 of this Chapter for the issuance of licenses, payable on and before the thirtieth day of June of each year, beginning with the thirtieth day of June following the issuance of the license.  If the license fee is not paid on or before the thirtieth day of June of each year, the license is automatically suspended, but may be reinstated by the Board within three days of the thirtieth day of June upon payment of the license fee.  Unless the license is so reinstated, it is automatically revoked 31 thirty-one days after the thirtieth day of June, and the Board shall not issue a license except upon a new, original application.

Source:  3 TDC 20.

      1038.  Licenses; Privileges; Limitations.
     A licensee is limited to the privileges conferred by the license, and is not authorized to exercise any other privileges.

Source:  3 TDC 21.

      1039.  Licenses; Limitations.
     A licensee is limited to the premises for which the license is issued and is not authorized to exercise the privileges conferred by the license at any additional or other premises.

Source:  3 TDC 22.

      1040.  Licenses; Wholesaler.
     A person holding a wholesale dealer's license is authorized to sell alcoholic beverages to licensed retail establishments or to religious organizations.

Source:  3 TDC 23, as amended by 26-1-11, 1(23).

      1041.  Licenses; Retail on-sale.
     A person holding a retail dealer's on-sale license is authorized to sell alcoholic beverages, as specified in the license, to consumers for consumption on the premises.

Source:  3 TDC 24.

      1042.  Licenses; Retail off-sale.
     A person holding a retail dealer's off-sale license is authorized to sell alcoholic beverages, as specified in the license, to consumers for consumption off the premises.

Source:  3 TDC 25.

      1043.  Licenses; Club.
     A club license shall be a combined general retail on-sale and retail off-sale license and shall authorize the licensee to sell liquors to members of the club and guests thereof enjoying the privilege of membership.

Source:  3 TDC 26.

      1044.  Real party in interest.
     The Board shall not issue a license of any class to any applicant who is not the real party in interest.

Source:  3 TDC 27.

      1045.  License; Minor.
     The Board shall not issue any license to any person who is under twenty-one 18 years of age.

Source:  3 TDC 28, as superseded in part by TSL 6-66, as amended by CSL 2-94-08.

      1046.  License; Prior revocation.
     Except in the case of a license revoked for non-payment of renewal fee, the Board shall not issue a license of any class which was revoked within a one year period prior to the date of the application.

Source:  3 TDC 29.

      1047.  License; Unfit person.
     The Board shall not issue a license of any class to any person the Board deems unfit to hold a license.

Source:  3 TDC 30.

      1048.  License; Near church, hospital, school.
     The Board shall not issue an on-sale license for premises located within a distance of one hundred feet from the premises of any church, hospital, or public or private school.

Source:  3 TDC 31.

      1049.  License; On-sale; Number.
     The Board shall not issue a greater number of on-sale premises licenses within a municipality than it deems consistent with the public interest.

Source:  3 TDC 32.

      1050.  Board; Disapproval of applications.
     The Board may disapprove an application for a license, upon finding, through adequate investigation, that such refusal is in the public interest.

Source:  3 TDC 33.

      1051.  License denial; Review.
     Where an application for license has been denied in accordance with Section 83 1033 of this Chapter, the applicant may appeal the decision of the Board to the District Administrator Governor, who shall have the authority to direct the Board to issue the license.

Source:  3 TDC 34, modified.
 
 

SUBCHAPTER D
Restrictions and Prohibitions

1061.  Conduct of business.
1062.  Condition of premises.
1063.  Unauthorized alcoholic beverages; Possession forbidden.
1064.  Hours of sale; On-sale premises.
1065.  Hours of sale; Off-sale.
1066.  Holidays.
1067.  Election day; Sale forbidden.
1068.  Sale to intoxicated persons forbidden.
1069.   [SUPERSEDED]
1070.  Consumption forbidden in certain places.
1071.  Container refill prohibited.
1072.  Restrictions on transactions between licensees.
1073.  Consumption while on duty prohibited.
1074.  Stacking drinks prohibited.
1075.  [SUPERSEDED]
1076.  Prohibition; Petition; Election.
1077.  Prohibition; Election.
1078.  Prohibition; Voter approval.

      1061.  Conduct of business.
     A licensee, whether wholesaler or retailer, shall not encourage the consumption of alcoholic beverages, but shall confine his business to the supply of the demand for alcoholic beverages in a dignified manner in accordance with the intent of the provisions of this Chapter.

Source:  3 TDC 35.

      1062.  Condition of premises.
     The Board shall have the power to prescribe by regulation the arrangement, construction, equipping, lighting and sanitary facilities of any premises as will provide a safe and sanitary premise with sufficient lighting and orderly atmosphere.

Source:  3 TDC 36.

      1063.  Unauthorized alcoholic beverages; Possession forbidden.
     A licensee shall not keep upon the premises any alcoholic beverages other than those he is authorized to deal in by virtue of his license.

Source:  3 TDC 37.

      1064.  Hours of sale; On-sale premises.
     An on-sale licensee shall not sell or serve any alcoholic beverages after ten p.m. Sundays through Thursdays, nor after twelve midnight on Fridays and Saturdays.  A licensee may begin selling and serving alcoholic beverages at twelve noon on Sundays through Thursdays and at nine a.m. Fridays and Saturdays.

Source:  3 TDC 38.

      1065.  Hours of sale; Off-sale.
     An off-sale licensee shall not sell alcoholic beverages prior to seven-thirty a.m. and after ten-thirty p.m.

Source:  3 TDC 39, as amended by TDL 26-11, 2.

      1066.  Holidays. [REPEALED]

Source:  3 TDC 40, as repealed by TDL 26-11, 1.

      1067.  Election day; Sale forbidden.
     An on or off-sale licensee shall not sell or serve alcoholic beverages in any municipality where an election is in progress during the hours when the polls are required by law to be open for voting.

Source:  3 TDC 41.

      1068.  Sale to intoxicated persons forbidden.
     A licensee and his employees shall not sell or give permission to be sold or give any alcoholic beverages to any habitual or common drunkard or obviously intoxicated person.

Source:  3 TDC 42.

      1069. [SUPERSEDED]

Source:  3 TDC 43, as superseded by TSL 6-66, as amended by CSL 2-94-08, 1.

      1070.  Consumption forbidden in certain places.
     Persons shall not consume alcoholic beverages on a public highway or road, within the premises of any public building, or any boat transporting passengers or freight (except those under contract to the Trust Territory Federated States of Micronesia government).

Source:  3 TDC 44, modified.

      1071.  Container refill prohibited.
     A licensee shall not refill any distilled spirit container with distilled spirits, nor offer for sale or sell distilled spirits from a container that has been refilled.

Source:  3 TDC 45.

      1072.  Restrictions on transactions between licensees.
     A manufacturer, agent, or wholesaler of alcoholic beverages shall not:

     (1)  Knowingly discriminate, directly or indirectly, in the same trading area in the price of any brand of alcoholic beverage sold to different retail licensees provided under like terms and conditions; or

     (2)  Sell any alcoholic beverage to any off or on-sale licensee without invoicing the vendee's license number.

Source:  3 TDC 46.

      1073.  Consumption while on duty prohibited.
     No employee, owner, manager or agent thereof of any licensed premises shall consume or be permitted to consume any alcoholic beverage while on duty on such premises.

Source:  3 TDC 47.

      1074.  Stacking drinks prohibited.
     No on-sale licensee, agent, or employee thereof shall serve more than one drink at any time to any individual.

Source:  3 TDC 48.

      1075. [SUPERSEDED]

Source:  3 TDC 49, as superseded by TSL 6-66, as amended by CSL 2-94-08, 1.

      1076.  Prohibition; Petition; Election.
     Upon petition submitted to the Municipal Clerk, by two-thirds of the voters of any municipality in the Truk District Chuuk State requesting that an election be held on the question of prohibiting the sale or consumption of intoxicating beverages in such municipality, the magistrate thereof shall call an election within 90 ninety days of such filing.

Source:  3 TDC 58, modified.

      1077.  Prohibition; Election.
     An election held under Section 1076 58 of this Chapter shall be held in accordance with general election laws.

Source:  3 TDC 59.

Cross-reference:  The election laws of the State of Chuuk are codified in Title 13 of this Code.

      1078.  Prohibition; Voter approval.
     If the majority of the voters at an election held pursuant to Sections 1076-1077 58-59 of this Chapter approve the proposition prohibiting the sale or consumption of intoxicating liquors, the Municipal Council shall prepare and adopt an ordinance in accordance with such election mandate.

Source:  3 TDC 60.
 
 

SUBCHAPTER E
Enforcement and Penalties

1081.  Enforcement powers.
1082.  Inspection.
1083.  Revocation and suspension of license.
1084.  Criminal process.
1085.  Penalty.
1086.  [SUPERSEDED]
1087.  [SUPERSEDED]
1088.  [SUPERSEDED]

      1081.  Enforcement powers.
     Each of the members of the Board shall have all of the powers of peace officers in the enforcement of the provisions of this Chapter and regulations adopted pursuant thereto.

Source:  3 TDC 50.

      1082.  Inspection.
     Each member of the Board shall have the right at all times without notice and without legal process to visit and have immediate access to every part of the premises of every licensee for the purpose of making an examination and inspection of alcoholic beverage books and records and the manner in which the business is conducted.

Source:  3 TDC 51.

      1083.  Revocation and suspension of license.
     A license of any class may be revoked on any of the following grounds:

     (1)  if the continuation of a license would be contrary to the public interest; or

     (2)  the violation of, causing or permitting violation of, or failure or refusal by a licensee, to comply with any provisions of this Chapter or any regulation of the Board adopted pursuant to this Chapter; or

     (3)  the misrepresentation of a material fact by any applicant in obtaining or renewing a license; or

     (4)  the plea, verdict, or judgment of guilty to any public offense involving moral turpitude.

Source:  3 TDC 52.

      1084.  Criminal process.
     The criminal prosecution of any person under the provisions of this Chapter shall be in addition to and independent of the power of the Board to suspend or revoke any license.

Source:  3TDC 53.

      1085.  Penalty.
     Any person who violates, causes or permits a violation, or who fails or refuses to comply with any provisions of this Chapter or any order or regulation of the board not inconsistent with the provisions of this Chapter for which a specific penalty is not provided, shall be fined not more than five hundred dollars or imprisoned for not more than one year, or both such fine or imprisonment.

Source:  3 TDC 54, modified.

      1086. [SUPERSEDED]

Source:  3 TDC 55, as superseded by TSL 6-66, as amended by CSL 2-94-08, 1.

      1087. [SUPERSEDED]

Source:  3 TDC 56, as superseded by TSL 6-66, as amended by CSL 2-94-08, 1.

      1088. [SUPERSEDED]

Source:  3 TDC 57, as superseded by TSL 6-66, as amended by CSL 2-94-08, 1.