  In this paper I give an explicit conformal field theory description of
(2+1)-dimensional BTZ black hole entropy. In the boundary Liouville field
theory I investigate the reducible Verma modules in the elliptic sector, which
correspond to certain irreducible representations of the quantum algebra
U_q(sl_2) \odot U_{\hat{q}}(sl_2). I show that there are states that decouple
from these reducible Verma modules in a similar fashion to the decoupling of
null states in minimal models. Because ofthe nonstandard form of the Ward
identity for the two-point correlation functions in quantum Liouville field
theory, these decoupling states have positive-definite norms. The explicit
counting from these states gives the desired Bekenstein-Hawking entropy in the
semi-classical limit when q is a root of unity of odd order.
