Missouri Code of State Regulations › Title 11 - DEPARTMENT OF PUBLIC SAFETY › Division 70 - Division of Alcohol and Tobacco Control › Chapter 2 - Rules and Regulations › Section 11 CSR 70-2.010 - Definitions

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This amendment clarifies the Division's long
				  standing practice of treating legal entities the same way corporations are
				  treated in evaluating their qualifications for licensure.
EMERGENCY STATEMENT: This emergency amendment informs
				  applicants for a liquor license that all business entity types can be "persons"
				  capable of obtaining a liquor license under sections
				  311.030 and
				  311.050, RSMo. This emergency
				  amendment is necessary to protect a compelling governmental interest in that a
				  recent Administrative Hearing Commission decision (Case Numbers 23-0288 and
				  23-0439) determined "a single member LLC, does not come within the definition
				  of a 'person'" to be licensed. This holding, if adopted by a court of
				  precedent, would mean fifty-four percent (54.3%) nine thousand two hundred
				  eighty-eight of the seventeen thousand ninety-five (9,288 of the 17,095)
				  primary licenses issued by the division would be unlawful and cannot be renewed
				  next year. As a result, the division finds a compelling governmental interest,
				  which requires this emergency action. The scope of this emergency rule is
				  limited to the circumstances creating the emergency and complies with the
				  protections extended in the Missouri and United States Constitutions. The
				  division believes this emergency amendment is fair to all interested persons
				  and parties under the circumstances. This emergency amendment was filed March
				  22, 2024, becomes effective April 5, 2024, and expires January 15,
				  2025.
(1) Close proximity
				refers to two (2) or more areas that are located on one (1) continuous tract of
				land owned or leased by the same person, or within line of sight of one
				another, or located on an adjoining property owned or leased by the same
				person.
(2) Delivery occurs when a
				licensee transports or uses an employee or agent to transport intoxicating
				liquor to a consumer at a location other than the licensed premises.
(3) Direct financial interest means
				personally having, owning, or otherwise holding a financial interest.
(4) Domestic wine is defined in accordance
				with section
				311.190,
				RSMo.
(5) Good moral character
				refers to honesty, fairness, and respect for the rights of others and for the
				laws of the state and nation.
(6)
				Indirect financial interest means enjoying the benefits of a direct financial
				interest of another person, as that term is defined in section
				311.030,
				RSMo, or having any control over another person with a direct financial
				interest, including but not limited to: a spouse, minor child, or other
				relative living in the same home holding a direct financial interest; sharing
				monetary assets or liabilities with another person with a direct financial
				interest; having more than a ten percent (10%) ownership interest in another
				person with a direct financial interest; directly managing or serving as the
				managing officer of another person with a direct financial interest; or sharing
				common ownership where the common owner has more than a ten percent (10%)
				interest in each person.
(7)
				Intoxicating liquor is defined in accordance with 311.020, RSMo.
(8) Malt liquor or beer is defined in
				accordance with section
				311.490(1)
				and (2), RSMo.
(9) Managing officer means an individual in
				an applicant or licensee's employ or agent thereof who shall be responsible for
				any licenses issued by the state supervisor and serves as the division's
				primary point of contact with the applicant or licensee.
(10) The words manufacturer and
				manufacturer-solicitor, whenever used as nouns in Chapter 311, RSMo, and in
				these regulations, are synonymous.
(11) Ordinary Commercial Credit.
(A) Malt Beverages. Ordinary commercial
				credit for malt beverages is credit that requires payment to be made by the
				retail licensee by the last day of the month for malt beverages delivered on or
				after the first day of the month and up to and including the fifteenth day of
				the month and by the fifteenth day of the following month for malt beverages
				delivered to the retail licensee on or after the sixteenth day of the month and
				up to and including the last day of the month. No brewer or wholesaler may sell
				or deliver malt beverages while the retail licensee owes the brewer or
				wholesaler for malt beverages beyond the period of time as indicated in this
				subsection.
(B) Spirituous Liquor
				and Wine. Ordinary commercial credit for spirituous liquor and/or wine is
				credit that requires payment to be made by the retail licensee within thirty
				(30) days after the delivery of spirituous liquor and/or wine to the retail
				licensee. No distiller, wholesaler, or wine maker may sell or deliver
				spirituous liquor and/or wine while the licensee owes the distiller,
				wholesaler, or wine maker for spirituous liquor and/or wine beyond the period
				of time as indicated in this subsection.