00 CS FOR SENATE BILL NO. 372(JUD) 01 "An Act relating to community local options for control of alcoholic beverages; 02 relating to the control of alcoholic beverages; relating to the definition of 03 `alcoholic beverage'; relating to purchase, sale, and taxation of alcoholic beverages; 04 relating to alcohol server education courses; and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 04.11.010(b) is amended to read: 07  (b) A person may not solicit or receive orders for the delivery of an alcoholic 08 beverage in an area that has adopted a local option under AS 04.11.491. If the 09 area has adopted a local option under AS 04.11.491(a)(1), (2), or (3), or (b)(1) or 10 (2), a package store licensee outside of that local option area may receive orders 11 as provided under AS 04.11.150 but may not solicit in that area or receive orders 12 through an agent or employee in that area. This subsection does not apply to a 13 package store licensee who operates a package store in an area that has adopted 14 a local option under AS 04.11.491(a)(2)(C) or (3)(C) or (b)(2)(C) [WHERE THE 01 RESULTS OF A LOCAL OPTION ELECTION HAVE, UNDER AS 04.11.490 - 02 04.11.500, PROHIBITED THE BOARD FROM ISSUING, RENEWING OR 03 TRANSFERRING ONE OR MORE TYPES OF LICENSES OR PERMITS UNDER 04 THIS TITLE, UNLESS THE PERSON IS LICENSED UNDER THIS TITLE AND 05 THE ORDER IS ACTUALLY RECEIVED BY THAT PERSON FROM THE 06 PURCHASER OF THE ALCOHOLIC BEVERAGE]. A person who violates this 07 subsection is punishable upon conviction as provided under AS 04.16.200(a) or (b). 08 * Sec. 2. AS 04.11.010(c) is amended to read: 09  (c) In a criminal prosecution for possession of alcoholic beverages for sale in 10 violation of (a) of this section, the fact that a person possessed more than 12 liters of 11 distilled spirits, 24 liters or more of wine, or 12 gallons [45 LITERS] or more of malt 12 beverages in an area where the sale of alcoholic beverages is restricted or prohibited 13 under AS 04.11.491 [AS 04.11.490, 04.11.492, 04.11.496, OR 04.11.500] creates a 14 presumption that the person possessed the alcoholic beverages for sale. 15 * Sec. 3. AS 04.11.110(d) is amended to read: 16  (d) Alcoholic beverages sold under a club license may be purchased only by 17 (1) members of the club and their families, (2) widows or widowers of deceased 18 members who have been given [ACCORDED] club privileges, and (3) military 19 personnel [IN UNIFORM] on active duty who are extended the privilege by patriotic 20 organizations upon special occasions. Alcoholic beverages may be purchased only in 21 the portion of the club rooms that are [PART OF THE] licensed premises. 22 * Sec. 4. AS 04.11.135(b) is amended to read: 23  (b) Except as provided under AS 04.11.360(10) [AS 04.11.360(12)], the 24 brewpub license is not transferable, shall remain the property of the state, and is not 25 subject to any form of alienation. 26 * Sec. 5. AS 04.11.150(a) is repealed and reenacted to read: 27  (a) Except as provided under (h) of this section, a package store license 28 authorizes the licensee to sell alcoholic beverages to a person present on the licensed 29 premises or to a person known to the licensee who makes a written solicitation to that 30 licensee for shipment. A licensee, agent, or employee may only ship alcoholic 31 beverages to the person who is purchasing the alcoholic beverages being shipped. 01 Before commencing the practice of shipping alcoholic beverages, and with a 02 subsequent application to renew the license, a licensee shall notify the board in writing 03 of the licensee's intention to ship alcoholic beverages in response to a written 04 solicitation. The package store licensee, agent, or employee shall include written 05 information on fetal alcohol syndrome and fetal alcohol effects resulting from a woman 06 consuming alcohol during pregnancy in a shipment of alcoholic beverages sold in 07 response to a written solicitation. 08 * Sec. 6. AS 04.11.150(h) is repealed and reenacted to read: 09  (h) If a shipment is to an area that has restricted the sale of alcoholic 10 beverages under AS 04.11.491(a)(1), (2), or (3) or (b)(1) or (2), a package store 11 licensee, agent, or employee may not ship to a purchaser 12  (1) more than 12 liters of distilled spirits, 24 liters or more of wine, or 13 12 gallons or more of malt beverages in a calendar month; or 14  (2) an alcoholic beverage that contains more than 75 percent alcohol 15 by volume. 16 * Sec. 7. AS 04.11.160 is amended by adding new subsections to read: 17  (f) A person who applies for issuance or renewal of a license under this 18 section shall file, on forms provided by the board, the following information regarding 19 each brand of alcoholic beverage that the person intends to purchase, offer for sale, or 20 sell: (1) the full and correct brand or trade name; (2) the nature and type of the brand; 21 (3) the name of the distiller, brewer, vintner, or importer of the brand; and (4) a 22 certification by the distiller, brewer, vintner, or importer of the brand that the person 23 is a primary source of supply for the brand. In addition to the fees imposed under (a) 24 and (b) of this section, a person filing under this subsection shall pay a biennial filing 25 fee of $50 for each brand of alcoholic beverage the person intends to purchase, offer 26 for sale, or sell. In this subsection, "distiller, brewer, vintner, or importer" includes 27 an exclusive agent of the distiller, brewer, vintner, or importer if the agent's name 28 appears on the label of the brand approved by the Federal Bureau of Alcohol, Tobacco 29 and Firearms. 30  (g) A person licensed under this section shall notify the board within 10 days 31 of a change in a primary source of supply designation required under (f) of this 01 section. 02 * Sec. 8. AS 04.16 is amended by adding a new section to read: 03  Sec. 04.16.172. RESTRICTIONS ON PURCHASE AND SALE OF 04 ALCOHOLIC BEVERAGES. A person licensed under AS 04.11.090, 04.11.100, 05 04.11.110, or 04.11.150 may not purchase, sell, or offer for sale an alcoholic beverage 06 unless the alcoholic beverage being purchased, sold, or offered for sale was obtained 07 from a person licensed under 08  (1) AS 04.11.160 as a primary source of supply for the alcoholic 09 beverage being purchased, sold, or offered for sale; or 10  (2) AS 04.11.130, 04.11.140, or 04.11.170. 11 * Sec. 9. AS 04.11.270(b) is amended to read: 12  (b) A license shall be renewed as follows: 13  (1) on or before November 1 [OF EACH YEAR], the director shall 14 mail a renewal application to each licensee whose license, unless renewed, will expire 15 on December 31 of that year; the application shall be mailed to the licensee at the 16 licensed premises or at a mailing address furnished by the licensee; 17  (2) the licensee shall submit the completed renewal application and the 18 biennial license fee to the director before January 1 [ON OR BEFORE 19 DECEMBER 31]; 20  (3) a renewal application filed after December 31 is delinquent and 21 must be accompanied by a $500 [$200] penalty fee; 22  (4) if December 31 falls on a weekend or a state holiday, the deadline 23 is extended to the first business day following December 31. 24 * Sec. 10. AS 04.11.320 is amended to read: 25  Sec. 04.11.320. DENIAL OF NEW LICENSES AND PERMITS. (a) An 26 application requesting issuance of a new license shall be denied if 27  (1) the board finds, after review of all relevant information, that 28 issuance of the license would not be in the best interests of the public; 29  (2) issuance of the license is prohibited by AS 04.11.390, relating to 30 residency, or AS 04.11.410, relating to location of premises near churches and schools; 31  (3) the application has not been completed in accordance with 01 AS 04.11.260; 02  (4) issuance of the license would violate the restrictions pertaining to 03 the particular license imposed under this title; 04  (5) issuance of the license is prohibited under this title as a result of 05 an election conducted under AS 04.11.507 [IN ACCORDANCE WITH 06 AS 04.11.502]; 07  (6) the requirements of AS 04.11.420 - 04.11.450 relating to zoning, 08 ownership and location of the license, and the identity and financing of a licensee have 09 not been met; 10  (7) [THE LICENSED PREMISES ARE TO BE LOCATED IN A 11 MUNICIPALITY, THE TYPE OF LICENSE SOUGHT IS A BEVERAGE 12 DISPENSARY OR PACKAGE STORE LICENSE, AND THAT TYPE OF LICENSE 13 IS ALREADY IN EFFECT IN THE MUNICIPALITY UNDER A COMMUNITY 14 LIQUOR LICENSE, UNLESS THE NEW LICENSE IS TO BECOME EFFECTIVE 15 AFTER THE COMMUNITY LIQUOR LICENSE IS NO LONGER EFFECTIVE, 16 WHETHER AS THE RESULT OF A LOCAL OPTION ELECTION OR 17 OTHERWISE; 18  (8) THE AUTHORITY SOUGHT IS AUTHORITY TO OPERATE A 19 BEVERAGE DISPENSARY OR PACKAGE STORE UNDER A COMMUNITY 20 LIQUOR LICENSE FOR PREMISES TO BE LOCATED IN A MUNICIPALITY 21 WHERE THE AUTHORITY SOUGHT IS ALREADY HELD BY A PRIVATE 22 LICENSEE UNDER A BEVERAGE DISPENSARY OR PACKAGE STORE 23 LICENSE, UNLESS THE COMMUNITY LIQUOR LICENSE IS TO BECOME 24 EFFECTIVE AFTER THE PRIVATELY HELD LICENSE IS NO LONGER 25 EFFECTIVE, WHETHER AS THE RESULT OF A LOCAL OPTION ELECTION OR 26 OTHERWISE; 27  (9)] issuance of the license is prohibited under AS 04.11.400(a) or 28 prohibition of issuance of the license is found necessary under AS 04.11.400(b); 29  (8) [(10)] the application contains false statements of material fact; 30  (9) [(11)] the license is sought for the sale of alcoholic beverages in a 31 first or second class city where [IN WHICH] there are no licensed premises at the 01 time of application unless a majority of the voters have voted not to approve [IN] a 02 local option to restrict or prohibit the sale of alcoholic beverages under 03 AS 04.11.491, have voted to approve a local option to allow the type of premises 04 under AS 04.11.491(a)(2) or (3), or have voted to remove a restriction or 05 prohibition on the sale of alcoholic beverages under AS 04.11.495 [ELECTION 06 CONDUCTED IN ACCORDANCE WITH AS 04.11.502 HAVE VOTED "NO" ON 07 THE QUESTION SET OUT IN AS 04.11.490, OR HAVE VOTED "YES" ON A 08 QUESTION SET OUT IN AS 04.11.492 OR 04.11.500]; or 09  (10) [(12)] the license is sought for the sale of alcoholic beverages in 10 an established village where [IN WHICH] there are no licensed premises at the time 11 of application unless a majority of the voters have voted not to approve [IN] a local 12 option to restrict or prohibit the sale of alcoholic beverages under AS 04.11.491, 13 have voted to approve a local option to allow the type of premises under 14 AS 04.11.491(b)(2), or have voted to remove a restriction or prohibition on the 15 sale of alcoholic beverages under AS 04.11.495 [ELECTION CONDUCTED IN 16 ACCORDANCE WITH AS 04.11.502 HAVE VOTED "NO" ON THE QUESTION 17 SET OUT IN AS 04.11.490 OR HAVE VOTED "YES" ON THE QUESTION SET 18 OUT IN AS 04.11.500]. 19  (b) An application requesting issuance of a new permit shall be denied if 20  (1) the board finds, after review of all relevant information, that 21 issuance of the permit would not be in the best interests of the public; 22  (2) the board finds that any of the statements made in the application 23 are untrue; 24  (3) the application has not been completed in accordance with 25 AS 04.11.260; or 26  (4) the permit is sought for the sale of alcoholic beverages in a first or 27 second class city or established village where [IN WHICH] there are no licensed 28 premises at the time of application unless a majority of the voters have voted not to 29 approve [IN] a local option to restrict or prohibit the sale of alcoholic beverages 30 under AS 04.11.491, have voted to approve a local option to allow the type of 31 permit under AS 04.11.491(a)(2) or (b)(2), or have voted to remove a restriction 01 or prohibition on the sale of alcoholic beverages under AS 04.11.495 [ELECTION 02 CONDUCTED IN ACCORDANCE WITH AS 04.11.502 HAVE VOTED "NO" ON 03 THE QUESTION SET OUT IN AS 04.11.490]. 04 * Sec. 11. AS 04.11.330(a) is amended to read: 05  (a) An application requesting renewal of a license shall be denied if 06  (1) the board finds, after review of all relevant information, that 07 renewal of the license would not be in the best interests of the public; 08  (2) the license has been revoked for any cause; 09  (3) the applicant has not operated the licensed premises for at least 30 10 eight-hour days during each of the two preceding calendar years, unless the board 11 determines that the licensed premises are under construction or cannot be operated 12 through no fault of the applicant; 13  (4) the board finds that issuance of an existing license under 14 AS 04.11.400(g) has not encouraged tourist trade; 15  (5) the requirements of AS 04.11.420 - 04.11.450 relating to zoning, 16 ownership of the license, and financing of the licensee have not been met; 17  (6) renewal of the license would violate the conditions or restrictions 18 pertaining to the particular license under this title; 19  (7) renewal of the license is prohibited under this title as a result of an 20 election conducted under AS 04.11.507 [IN ACCORDANCE WITH AS 04.11.502]; 21  (8) the application has not been completed in accordance with 22 AS 04.11.270; or 23  (9) the license was issued under AS 04.11.400(j), and the board finds 24 that the public convenience does not require renewal. 25 * Sec. 12. AS 04.11.340 is amended to read: 26  Sec. 04.11.340. DENIAL OF REQUEST FOR RELOCATION. An application 27 requesting approval for the relocation of licensed premises shall be denied if 28  (1) the board finds, after review of all relevant information, that 29 relocation of the license would not be in the best interests of the public; 30  (2) the relocation is prohibited under AS 04.11.400(a) or (b); 31  (3) the license would be relocated out of the established village, 01 incorporated city, unified municipality, or population area established under 02 AS 04.11.400(a) within which it is located; 03  (4) transfer of ownership is to be made concurrently with the relocation 04 of the licensed premises and a ground for denial of the transfer of ownership under 05 AS 04.11.360 is presented; 06  (5) the application has not been completed in accordance with 07 AS 04.11.290; 08  (6) relocation of the license would result in violation of a local zoning 09 law; 10  (7) relocation of the license would violate the restrictions pertaining to 11 the particular license imposed by this title; 12  (8) relocation of the license is prohibited under this title as a result of 13 an election conducted under AS 04.11.507 [IN ACCORDANCE WITH 14 AS 04.11.502]; or 15  (9) [THE LICENSED PREMISES ARE TO BE LOCATED IN A 16 MUNICIPALITY, THE TYPE OF LICENSE SOUGHT TO BE RELOCATED IS A 17 BEVERAGE DISPENSARY OR PACKAGE STORE LICENSE, AND THAT TYPE 18 OF LICENSE IS ALREADY IN EFFECT IN THE MUNICIPALITY UNDER A 19 COMMUNITY LIQUOR LICENSE, UNLESS THE RELOCATION IS TO BECOME 20 EFFECTIVE AFTER THE COMMUNITY LIQUOR LICENSE IS NO LONGER 21 EFFECTIVE, WHETHER AS THE RESULT OF A LOCAL OPTION ELECTION OR 22 OTHERWISE; 23  (10)] the license was issued under AS 04.11.400(g), (h), or (j). 24 * Sec. 13. AS 04.11.360 is amended to read: 25  Sec. 04.11.360. DENIAL OF TRANSFER OF A LICENSE TO ANOTHER 26 PERSON. An application requesting approval of a transfer of a license to another 27 person under this title shall be denied if 28  (1) the board finds, after review of all relevant information, that transfer 29 of a license to another person would not be in the best interests of the public; 30  (2) the application has not been completed in accordance with 31 AS 04.11.280; 01  (3) the application contains false statements of material fact; 02  (4) the transferor has not paid all debts or taxes arising from the 03 conduct of the business licensed under this title unless 04  (A) the transferor gives security for the payment of the debts 05 or taxes satisfactory to the creditor or taxing authority; or 06  (B) the transfer is pursuant to a promise given as collateral by 07 the transferor to the transferee in the course of an earlier transfer of the license 08 under which promise the transferor is obliged to transfer the license back to the 09 transferee in the event of default in payment for property conveyed as part of 10 the earlier transfer of the license; 11  (5) transfer of the license to another person would result in violation 12 of the provisions of this title relating to identity of licensees and financing of licensees; 13  (6) transfer of the license to another person would violate the 14 restrictions pertaining to the particular license under this title; 15  (7) transfer of the license to another person is prohibited under the 16 provisions of this title as a result of an election conducted under AS 04.11.507 [IN 17 ACCORDANCE WITH AS 04.11.502]; 18  (8) the prospective transferee does not have the qualifications required 19 under this title of an original applicant; 20  (9) [THE LICENSED PREMISES ARE LOCATED IN A 21 MUNICIPALITY, THE TYPE OF LICENSE SOUGHT TO BE TRANSFERRED IS 22 A BEVERAGE DISPENSARY OR PACKAGE STORE LICENSE, AND THAT TYPE 23 OF LICENSE IS ALREADY IN EFFECT IN THE MUNICIPALITY UNDER A 24 COMMUNITY LIQUOR LICENSE, UNLESS THE TRANSFER IS TO BECOME 25 EFFECTIVE AFTER THE COMMUNITY LIQUOR LICENSE IS NO LONGER 26 EFFECTIVE, WHETHER AS THE RESULT OF A LOCAL OPTION ELECTION OR 27 OTHERWISE; 28  (10) THE AUTHORITY SOUGHT IS AUTHORITY TO OPERATE 29 A BEVERAGE DISPENSARY OR PACKAGE STORE UNDER A COMMUNITY 30 LIQUOR LICENSE FOR PREMISES TO BE LOCATED IN A MUNICIPALITY 31 WHERE THE AUTHORITY SOUGHT IS ALREADY HELD BY A PRIVATE 01 LICENSEE UNDER A BEVERAGE DISPENSARY OR PACKAGE STORE 02 LICENSE, UNLESS THE TRANSFER IS TO BECOME EFFECTIVE AFTER THE 03 PRIVATELY HELD LICENSE IS NO LONGER EFFECTIVE, WHETHER AS THE 04 RESULT OF A LOCAL OPTION ELECTION OR OTHERWISE; 05  (11)] the license was issued under AS 04.11.400(j); or 06  (10) [(12)] the license was issued under AS 04.11.135, unless the 07 transferor is also applying to transfer the beverage dispensary license required under 08 AS 04.11.135 to the same transferee. 09 * Sec. 14. AS 04.11.370 is amended to read: 10  Sec. 04.11.370. SUSPENSION AND REVOCATION OF LICENSES AND 11 PERMITS. A license or permit shall be suspended or revoked if the board finds 12 [THAT ONE OR MORE OF THE FOLLOWING GROUNDS EXISTS:] 13  (1) misrepresentation of a material fact on an application made under 14 this title or a regulation adopted under this title [FOR A LICENSE OR PERMIT]; 15  (2) continuation of the manufacture, sale, or service of alcoholic 16 beverages by the licensee [ACTIVITIES AUTHORIZED UNDER A LICENSE OR 17 PERMIT] would be contrary to the best interests of the public; 18  (3) failure on the part of the licensee to correct a defect [DEFECTS] 19 that constitutes a violation [CONSTITUTE VIOLATIONS] of this title, a condition 20 or restriction imposed under AS 04.11.395, a regulation [REGULATIONS] adopted 21 under this title, or other laws [WITHIN A PRESCRIBED TIME] after receipt of notice 22 issued by the board or its agent; 23  (4) conviction of a licensee of a violation of [A PROVISION OF] this 24 title, a regulation adopted under this title, or an ordinance adopted under AS 04.21.010; 25  (5) conviction of an [THE] agent or employee of a licensee of a 26 violation of this title, a regulation adopted under this title, or an ordinance adopted 27 under AS 04.21.010, if the licensee is found by the board to have either knowingly 28 allowed the violation or to have recklessly or with criminal negligence failed to act in 29 accordance with the duty prescribed under AS 04.21.030 with the result that the [AN] 30 agent or employee violates a law, regulation, or ordinance; 31  (6) failure of the licensee to comply with the public health, fire, or 01 safety laws and regulations [PERTAINING TO PUBLIC HEALTH] in the state; 02  (7) use of the licensed premises as a resort for illegal possessors or 03 users of narcotics, prostitutes, or promoters of prostitution; in addition to any other 04 legally competent evidence, the character of the premises may be proved by the 05 general reputation of the premises in the community as a resort for illegal possessors 06 or users of narcotics, prostitutes, or promoters of prostitution; 07  (8) occurrence of illegal gambling within the limits of the licensed 08 premises; 09  (9) the licensee permitted a [PERMITTING ANY] public offense 10 involving moral turpitude to occur on the licensed premises; 11  (10) violation by a licensee of this title, a condition or restriction 12 imposed under AS 04.11.395, a regulation adopted under this title, or an ordinance 13 adopted under AS 04.21.010; or 14  (11) violation by an agent or employee of a licensee of a provision of 15 this title, a condition or restriction imposed under AS 04.11.395, a regulation 16 adopted under this title, or an ordinance adopted under AS 04.21.010, if the licensee 17 is found by the board to have either knowingly allowed the violation or to have 18 recklessly or with criminal negligence failed to act in accordance with the duty 19 prescribed under AS 04.21.030 with the result that the agent or employee violates the 20 law, condition or restriction, regulation, or ordinance. 21 * Sec. 15. AS 04.11 is amended by adding a new section to read: 22  Sec. 04.11.395. BOARD IMPOSED CONDITIONS OR RESTRICTIONS. 23 The board may, in the best interests of the public, impose conditions or restrictions on 24 a license or permit issued under this chapter. 25 * Sec. 16. AS 04.11.400(a) is amended to read: 26  (a) Except as provided in (g), (h), (i), (j), and (k) of this section, a new license 27 may not be issued and the board may prohibit relocation of an existing license 28  (1) outside an established village, incorporated city, unified 29 municipality, or organized borough if after the issuance or relocation there would be 30 more than one restaurant or eating place license for each 1,500 population or fraction 31 of that [1,500] population; or more than one license of each other type, including 01 licenses that have been issued under (g) or (h) of this section, for each 3,000 02 population or fraction of that [3,000] population; in a radius of five miles of the 03 licensed premises [OR LOCATION OF PREMISES SOUGHT TO BE LICENSED], 04 excluding the populations of established villages, incorporated cities, unified 05 municipalities, and organized boroughs that are wholly or partly included within the 06 radius; 07  (2) inside an established village, incorporated city, or unified 08 municipality if after the issuance or relocation there would be inside the established 09 village, incorporated city, or unified municipality 10  (A) more than one restaurant or eating place license for each 11 1,500 population or fraction of that [1,500] population; or 12  (B) more than one license of each other type, including licenses 13 that have been issued under (g) or (h) of this section, for each 3,000 population 14 or fraction of that [3,000] population [INSIDE THE ESTABLISHED 15 VILLAGE, INCORPORATED CITY, OR UNIFIED MUNICIPALITY]; 16  (3) inside an organized borough but outside an established village or 17 incorporated city located within the borough, if after the issuance or relocation there 18 would be inside the borough, but outside the established villages and incorporated 19 cities located within the borough, more than one restaurant or eating place license for 20 each 1,500 population or fraction of that [1,500] population; or more than one license 21 of each other type, including licenses that have been issued under (g) or (h) of this 22 section, for each 3,000 population or fraction of that [3,000] population [INSIDE THE 23 BOROUGH,] excluding the population of those established villages that have adopted 24 a local option under AS 04.11.491(b)(1), (3), or (4) [CONDUCTED AN ELECTION 25 ON A QUESTION SET OUT IN AS 04.11.490, 04.11.496, OR 04.11.500], and 26 excluding the population of incorporated cities located within the organized borough. 27 * Sec. 17. AS 04.11.480(a) is amended to read: 28  (a) A [IF A] local governing body may [WISHES TO] protest the issuance, 29 renewal, relocation, [TRANSFER OF LOCATION] or transfer to another person of 30 a license by sending [, IT SHALL FURNISH] the board and the applicant [WITH] a 31 protest and the reasons for the protest within 30 days of receipt from the board of 01 notice of filing of the application. The local governing body may protest the 02 continued operation of a license during the second year of the biennial license 03 period by sending the board and the licensee a protest and the reasons for the 04 protest by January 31 of the second year of the license. The procedures for 05 action on a protest of continued operation of a license are the same as the 06 procedures for action on a protest of a renewal application. The board shall 07 consider a protest and testimony received at a hearing conducted under 08 AS 04.11.510(b)(2) or (b)(4) when it considers the application or continued 09 operation, and the protest and the record of the hearing conducted under 10 AS 04.11.510(b)(2) or (b)(4) shall be kept [RETAINED] as part of the board's 11 permanent record of its review [OF THE APPLICATION]. If an application or 12 continued operation is protested, the board shall deny [MAY NOT APPROVE] the 13 application or continued operation unless the board finds that the protest is arbitrary, 14 capricious, and unreasonable. 15 * Sec. 18. AS 04.11 is amended by adding a new section to read: 16  Sec. 04.11.491. LOCAL OPTIONS. (a) If a majority of the persons voting 17 on the question vote to approve the option, a municipality shall adopt a local option 18 to prohibit 19  (1) the sale of alcoholic beverages; 20  (2) the sale of alcoholic beverages except by one or more of the 21 following listed on the ballot: 22  (A) a restaurant or eating place licensee; 23  (B) a beverage dispensary licensee; 24  (C) a package store licensee; or 25  (D) a caterer holding a permit under AS 04.11.230 to sell 26 alcoholic beverages at a site within the municipality who is also licensed under 27 a beverage dispensary license for premises outside of the municipality; 28  (3) the sale of alcoholic beverages except on premises operated by the 29 municipality and under a type of licensed premises listed on the ballot, that may 30 include one or more of the following: 31  (A) a restaurant or eating place license; 01  (B) a beverage dispensary license; or 02  (C) a package store license; 03  (4) the sale and importation of alcoholic beverages; or 04  (5) the sale, importation, and possession of alcoholic beverages. 05  (b) If a majority of the persons voting on the question vote to approve the 06 option, an established village shall exercise a local option to prohibit 07  (1) the sale of alcoholic beverages; 08  (2) the sale of alcoholic beverages except by one or more of the 09 following listed on the ballot: 10  (A) a restaurant or eating place licensee; 11  (B) a beverage dispensary licensee; 12  (C) a package store licensee; or 13  (D) a caterer holding a permit under AS 04.11.230 to sell 14 alcoholic beverages at a site within the established village who is also licensed 15 under a beverage dispensary license for premises outside of the established 16 village; 17  (3) the sale and importation of alcoholic beverages; or 18  (4) the sale, importation, and possession of alcoholic beverages. 19  (c) A ballot question to adopt a local option under this section must at least 20 contain language substantially similar to: "Shall (name of municipality or village) 21 adopt a local option to prohibit (local option under (a) or (b) of this section)? (yes or 22 no)." 23  (d) The ballot for an election on the option set out in (a)(2)(A), (a)(3)(A), or 24 (b)(2)(A) of this section must include an explanation of the authority to sell alcoholic 25 beverages given to a restaurant or eating place. The ballot for an election on the 26 option set out in (a)(2)(B) or (D), (a)(3)(B), or (b)(2)(B) or (D) of this section must 27 include a statement that a beverage dispensary license is commonly known as a "bar" 28 and an explanation of the authority to sell alcoholic beverages given to a beverage 29 dispensary licensee. The ballot for an election on the option set out in (a)(2)(C), 30 (a)(3)(C), or (b)(2)(C) of this section must include a statement that a package store 31 license is commonly known as a "liquor store" and an explanation of the authority to 01 sell alcoholic beverages given to a package store licensee. 02  (e) If a municipality dissolves under AS 29.06.450(a) or (b), a local option 03 adopted by the municipality under (a) of this section shall continue in effect as the 04 corresponding local option under (b) of this section for an established village having 05 the same perimeter as the previous boundaries of the municipality. A license for 06 premises operated by the municipality under AS 04.11.505 expires when the 07 municipality dissolves. 08  (f) A municipality or established village that has adopted a local option under 09 (a)(1), (2), or (3) or (b)(1) or (2) of this section may designate a site for the delivery 10 of alcoholic beverages to individuals in the area or a site for a person to bring 11 alcoholic beverages if the alcoholic beverages are imported into the area. This 12 subsection does not apply to the delivery or importation of 13  (1) one liter or less of distilled spirits, two liters or less of wine, or one 14 gallon or less of malt beverages; or 15  (2) alcoholic beverages to a premises licensed under (a)(2) - (3) or 16 (b)(2) of this section. 17 * Sec. 19. AS 04.11 is amended by adding new sections to read: 18  Sec. 04.11.493. CHANGE OF LOCAL OPTION. (a) If a majority of persons 19 voting on the question vote to approve a different local option, a municipality or 20 established village shall change a local option previously adopted under AS 04.11.491 21 to the different approved option. 22  (b) A ballot question to change a local option under this section must at least 23 contain language substantially similar to: "Shall (name of municipality or village) 24 change the local option currently in effect, that prohibits (current local option under 25 AS 04.11.491), and adopt in its place a local option to prohibit (proposed local option 26 under AS 04.11.491)? (yes or no)." 27  Sec. 04.11.495. REMOVAL OF LOCAL OPTION. (a) If a majority of the 28 persons voting on the question vote to remove the option, a municipality or established 29 village shall remove a local option previously adopted under AS 04.11.491. The 30 option is repealed effective the first day of the month following certification of the 31 results of the election. 01  (b) A ballot question to remove a local option under this section must at least 02 contain language substantially similar to: "Shall (name of municipality or village) 03 remove the local option currently in effect, that prohibits (current local option under 04 AS 04.11.491), so that there is no longer any local option in effect? (yes or no)." 05  (c) When issuing a license in the area that has removed a local option, the 06 board shall give priority to an applicant who was formerly licensed and whose license 07 was not renewed because of the results of the previous local option election. However, 08 an applicant described in this subsection does not have a legal right to a license and 09 the board is not required to approve the application. 10 * Sec. 20. AS 04.11 is amended by adding a new section to read: 11  Sec. 04.11.497. EFFECT ON LICENSES OF PROHIBITION OF SALE. If 12 a majority of voters vote to prohibit the sale of alcoholic beverages under 13 AS 04.11.491(a)(1), (a)(4) or (5), (b)(1), or (b)(3) or (4), the board may not issue, 14 renew, or transfer, between persons or locations, a license for premises located within 15 the boundaries of the municipality and in unincorporated areas within five miles of the 16 boundaries of the municipality or within the perimeter of the established village. A 17 license that may not be renewed because of a local option election held under this 18 section is void 90 days after the results of the election are certified. A license that 19 expires during the 90 days after the results of a local option election are certified may 20 be extended, until it is void under this section, by payment of a prorated portion of the 21 biennial license fee. 22 * Sec. 21. AS 04.11 is amended by adding a new section to read: 23  Sec. 04.11.499. PROHIBITION OF IMPORTATION AFTER ELECTION. If 24 a majority of the voters vote to prohibit the importation of alcoholic beverages under 25 AS 04.11.491(a)(4) or (5) or (b)(3) or (4), a person, beginning on the first day of the 26 month following certification of the results of the election, may not knowingly send, 27 transport, or bring an alcoholic beverage into the municipality or established village, 28 unless the alcoholic beverage is sacramental wine to be used for bona fide religious 29 purposes based on tenets or teachings of a church or religious body, is limited in 30 quantity to the amount necessary for religious purposes, and is dispensed only for 31 religious purposes by a person authorized by the church or religious body to dispense 01 the sacramental wine. 02 * Sec. 22. AS 04.11 is amended by adding a new section to read: 03  Sec. 04.11.501. PROHIBITION OF POSSESSION AFTER ELECTION. (a) 04 If a majority of the voters vote to prohibit the possession of alcoholic beverages under 05 AS 04.11.491(a)(5) or (b)(4), a person may not knowingly possess an alcoholic 06 beverage in the municipality or established village, unless the alcoholic beverage is 07 sacramental wine to be used for bona fide religious purposes based on tenets or 08 teachings of a church or religious body, is limited in quantity to the amount necessary 09 for religious purposes, and is dispensed only for religious purposes, by a person 10 recognized by the church or religious body as authorized to dispense the wine. 11  (b) If there are licensed premises within the municipality or established village, 12 the prohibition on possession is effective beginning 90 days after the results of the 13 election are certified. If there are no licensed premises within the municipality or 14 established village, the prohibition on possession is effective beginning 60 days after 15 the results of the election are certified. 16  (c) Upon the adoption by a municipality of a local option under 17 AS 04.11.491(a)(5), an ordinance is adopted containing the provisions of this section. 18  (d) In this section, "possession" means having physical possession of or 19 exercising dominion or control over an alcoholic beverage, but does not include having 20 an alcoholic beverage within the digestive system of a person. 21 * Sec. 23. AS 04.11 is amended by adding a new section to read: 22  Sec. 04.11.503. EFFECT ON LICENSES OF RESTRICTION ON SALE. If 23 a majority of the voters vote under AS 04.11.491(a)(2) or (b)(2) to prohibit sale of 24 alcoholic beverages except by the type or types of licensees or permit holders listed 25 on the ballot, the board may not issue, renew, or transfer between persons or locations 26 a license for premises located within the boundaries of the municipality and in 27 unincorporated areas within five miles of the boundaries of the municipality or within 28 the perimeter of the established village, except the type or types of licenses listed on 29 the ballot. A license in effect within the boundaries of the municipality or perimeter 30 of the established village, and in unincorporated areas within five miles of the 31 boundaries of the municipality, except the type of license listed on the ballot, are void 01 90 days after the results of the election are certified. A license that expires during the 02 90 days after the results of a local option election are certified may be extended, until 03 it is void under this section, by payment of a prorated portion of the biennial license 04 fee. 05 * Sec. 24. AS 04.11 is amended by adding a new section to read: 06  Sec. 04.11.505. LICENSING AFTER PROHIBITION ON SALE EXCEPT IN 07 PREMISES OPERATED BY MUNICIPALITY. (a) If a majority of the voters vote 08 under AS 04.11.491(a)(3) to prohibit the sale of alcoholic beverages except on 09 premises operated by the municipality, the board may not issue, renew, or transfer 10 between persons or locations a license for premises located within the boundaries of 11 a municipality and in unincorporated areas within five miles of the boundaries of the 12 municipality, with the exception of the type of license listed on the ballot and operated 13 under a license held by the municipality. A license in effect is void 90 days after the 14 results of the election are certified. A license that expires during the 90 days after the 15 results of a local option election are certified may be extended, until it is void under 16 this subsection, by payment of a prorated portion of the biennial license fee. 17  (b) The local governing body of a municipality shall apply for a license to 18 operate the type of licensed premises listed on the ballot under AS 04.11.491(a)(3) and 19 approved by a majority of the voters. The municipality shall operate the premises 20 subject to the conditions and fees applicable to the type of license. Nothing in this 21 section precludes a municipality from applying to be a licensee under other provisions 22 of this title. 23 * Sec. 25. AS 04.11 is amended by adding new sections to read: 24  Sec. 04.11.507. PROCEDURE FOR LOCAL OPTION ELECTIONS. (a) 25 Elections to adopt a local option under AS 04.11.491, change a local option under 26 AS 04.11.493, or remove a local option under AS 04.11.495, shall be conducted as 27 required in this section. 28  (b) Upon receipt of a petition of a number of registered voters equal to 35 29 percent or more of the number of votes cast at the last regular municipal election, the 30 local governing body of a municipality shall place upon a separate ballot at the next 31 regular election, or at a special election, whichever local option, change in local option, 01 or removal of local option constitutes the subject of the petition. The local governing 02 body shall conduct the election under the election ordinance of the municipality. 03  (c) Upon receipt of a petition of 35 percent or more of the registered voters 04 residing within an established village, the lieutenant governor shall place upon a 05 separate ballot at a special election the local option, change in local option, or removal 06 of local option that constitutes the subject of the petition. The lieutenant governor 07 shall conduct the election under AS 15. 08  (d) A petition filed with the local governing body of a municipality under (b) 09 of this section, that places on the ballot the option set out in AS 04.11.491(a)(5), 10 constitutes a proposed ordinance of the municipality. 11  (e) AS 29.26.110 - 29.26.160 apply to a petition under (b) of this section in 12 a general law municipality except the 13  (1) number of required signatures is determined under (b) of this 14 section rather than under AS 29.26.130; 15  (2) application filed under AS 29.26.110 must at least contain language 16 substantially similar to the questions set out under AS 04.11.491 - 04.11.495 rather 17 than containing an ordinance or resolution; 18  (3) petition must at least contain language substantially similar to the 19 questions set out under AS 04.11.491 - 04.11.495 rather than material required under 20 AS 29.26.120(a)(1) and (2). 21  (f) Notwithstanding any other provisions of law, an election under (b) or (c) 22 of this section to remove a local option or to change to a less restrictive option than 23 the local option previously adopted under AS 04.11.491 may not be conducted during 24 the first 12 months after the local option was adopted or more than once in a 12-month 25 period. 26  Sec. 04.11.509. NOTICE OF THE RESULTS OF A LOCAL OPTION 27 ELECTION. (a) If a majority of the voters vote to prohibit, change, or remove a 28 local option under AS 04.11.491 - 04.11.495, the clerk of the municipality, or, if the 29 election is in an established village, the lieutenant governor shall notify the board of 30 the results of the election immediately after the results are certified. The board shall 31 immediately notify the Department of Law and the Department of Public Safety of the 01 results of the election. 02  (b) If a majority of the voters vote to prohibit the importation or possession 03 of alcoholic beverages under AS 04.11.491(a)(4) or (5) or (b)(3) or (4), the following 04 actions in addition to those prescribed in (a) of this section shall be taken before the 05 date the prohibition becomes effective: 06  (1) the board shall notify, by certified mail, all package store licensees 07 who sell alcoholic beverages in response to a written solicitation of the local option; 08 and 09  (2) the municipality or established village shall post public notice of 10 the prohibition in a central location in the municipality or village. 11 * Sec. 26. AS 04.11.540 is amended to read: 12  Sec. 04.11.540. LICENSE RENEWAL AND EXPIRATION. Notwithstanding 13 AS 04.11.680, an application for renewal of a license issued for the two calendar years 14 [YEAR] ending December 31 or of a seasonal license issued for parts of those 15 calendar years [A SIX-MONTH PERIOD ENDING IN THE PREVIOUS YEAR] may 16 be submitted up until the next February 28 [, BUT THE AUTHORITY GRANTED 17 UNDER THE LICENSE MAY NOT BE EXERCISED UNTIL THE LICENSE IS 18 RENEWED]. If a complete [THE] application for renewal has [AND APPLICABLE 19 AFFIDAVITS HAVE] not been filed by February 28 or the required fees and the 20 penalty fees have not been paid by that date, the license expires at 12:00 midnight 21 February 28. A new license may not be issued to the holder of an expired license for 22 the same premises except on proof satisfactory to the board of good cause for the 23 failure to file and pay. 24 * Sec. 27. AS 04.11.680(a) is amended to read: 25  (a) Upon application and payment of one-half [ONE-QUARTER] of the 26 biennial fee, the board may issue a seasonal license under this title that will be 27 effective for a continuous six-month period in each of the biennial calendar years. 28 Otherwise, all licenses issued under this title other than a retail stock sale license are 29 effective for the two calendar years ending December 31, unless a shorter period is 30 prescribed by the board or by law. 31 * Sec. 28. AS 04.16.110 is repealed and reenacted to read: 01  Sec. 04.16.110. SALE OF CERTAIN ALCOHOLIC BEVERAGES 02 PROHIBITED. A person may not sell an alcoholic beverage if it 03  (1) is not in liquid form; or 04  (2) contains more than 75 percent alcohol by volume. 05 * Sec. 29. AS 04.16.125(a) is amended to read: 06  (a) A person may not use a common carrier to transport alcoholic beverages 07 into an area that has restricted the sale of alcoholic beverages under 08 AS 04.11.491(a)(1), (2), or (3) or (b)(1) or (2) [AS 04.11.490, 04.11.492, OR 09 04.11.500] unless 10  (1) the shipping container holding the alcoholic beverages is clearly 11 labeled as containing alcoholic beverages with letters that contrast in color to the 12 shipping container and that are at least two inches in height; and 13  (2) an itemized invoice showing the quantity and purchase value of 14 distilled spirits, of wine, and of malt [THE ALCOHOLIC] beverages is attached to 15 the outside of the shipping container. 16 * Sec. 30. AS 04.16.125(b) is amended to read: 17  (b) This section does not apply to 18  (1) a person transporting not more than 19  (A) two liters of wine; 20  (B) one gallon of [OR] malt beverages; [,] or 21  (C) [NOT MORE THAN] one liter of distilled spirits; or 22  (2) the transportation of alcoholic beverages for use on premises 23 allowed under AS 04.11.491(a)(2) - (3) or (b)(2) or for use under a permit allowed 24 under AS 04.11.491(a)(2). 25 * Sec. 31. AS 04.16.200(b) is amended to read: 26  (b) A person who violates AS 04.11.010 in an area that has adopted 27 [WHERE THE RESULTS OF] a local option under AS 04.11.491 [ELECTION 28 HAVE, UNDER AS 04.11.490 - 04.11.500, PROHIBITED THE BOARD FROM 29 ISSUING, RENEWING, OR TRANSFERRING ONE OR MORE TYPES OF 30 LICENSES OR PERMITS UNDER THIS TITLE IN THE AREA] is, upon conviction, 31 guilty of a class C felony. 01 * Sec. 32. AS 04.16.200(e) is amended to read: 02  (e) A person who sends, transports, or brings alcoholic beverages into a 03 municipality or established village in violation of AS 04.11.499 [AS 04.11.496] is, 04 upon conviction, 05  (1) guilty of a class A misdemeanor if the quantity imported is less 06 than 12 liters of distilled spirits, 24 liters of wine, or 12 gallons [45 LITERS] of malt 07 beverages; or 08  (2) guilty of a class C felony if the quantity imported is 12 liters or 09 more of distilled spirits, 24 liters or more of wine, or 12 gallons [45 LITERS] or more 10 of malt beverages. 11 * Sec. 33. AS 04.16.205(a) is amended to read: 12  (a) A person who possesses alcoholic beverages in a municipality or 13 established village in violation of AS 04.11.501 [AS 04.11.498] or an ordinance 14 adopted under AS 04.11.501 [AS 04.11.498] may, upon conviction, be punished by a 15 fine not to exceed $1,000. When a peace officer stops or contacts a person concerning 16 a violation of AS 04.11.501 [AS 04.11.498] or an ordinance adopted [ENACTED] 17 under AS 04.11.501 [AS 04.11.498], the peace officer may [, IN THE OFFICER'S 18 DISCRETION,] issue a citation to the person as provided in AS 12.25.180. 19 * Sec. 34. AS 04.16.205(b) is amended to read: 20  (b) A person cited for a violation of AS 04.11.501 [AS 04.11.498] or an 21 ordinance adopted under AS 04.11.501 [AS 04.11.498] for which a bail amount has 22 been established under (c) of this section may, within 30 days after the date the 23 citation is issued. 24  (1) mail or personally deliver to the clerk of the court in which the 25 citation is filed by the peace officer the amount of bail indicated on the citation and 26 a copy of the citation indicating that the right to an appearance is waived, a plea of no 27 contest is entered and the bail and all alcoholic beverages seized are forfeited; or 28  (2) perform community work in lieu of payment of the fine or a portion 29 of the fine as provided in (d) of this section. 30 * Sec. 35. AS 04.16.205(c) is amended to read: 31  (c) The supreme court shall establish by rule or order a schedule of bail 01 amounts that may be forfeited without a court appearance for a violation of 02 AS 04.11.501 [AS 04.11.498] or an ordinance adopted under AS 04.11.501 03 [AS 04.11.498]. In establishing the bail schedule the supreme court may consider the 04 quantity of alcoholic beverages possessed and the number of prior violations of the 05 person cited. Before establishing or amending the schedule of bail amounts required 06 by this subsection, the supreme court shall appoint and consult with an advisory 07 committee consisting of the following seven persons: one superior court judge, one 08 magistrate from each judicial district in the state, a representative of the Department 09 of Law, and a representative of the Public Defender Agency. The maximum bail 10 amount may not exceed $1,000, and the issuing officer shall write on the citation the 11 amount of bail applicable to the violation. 12 * Sec. 36. AS 04.16.205(d) is amended to read: 13  (d) Community work shall be performed at the direction of the local governing 14 body of the municipality or the local governing body of the established village. In the 15 absence of a local governing body for an established village, community work 16 shall be performed at the direction of the body that has traditionally performed 17 public functions on behalf of the entire community. The value of community work 18 in lieu of a fine is $5.00 per hour. When the community work is completed, the 19 person cited for the violation shall mail or personally deliver to the clerk of the court 20 in which the citation is filed by the peace officer 21  (1) a form, prescribed by the administrative director of the Alaska 22 Court System, indicating completion of the community work; and 23  (2) a copy of the citation, indicating that the right to an appearance is 24 waived, a plea of no contest is entered, and that the bail is forfeited or community 25 work has been performed and that all alcoholic beverages seized are forfeited. 26 * Sec. 37. AS 04.16.205(g) is amended to read: 27  (g) Notwithstanding other provisions of law, if a person cited for a violation 28 of AS 04.11.501 [AS 04.11.498] or an ordinance adopted under AS 04.11.501 29 [AS 04.11.498] for which a bail amount has been established under (c) of this section 30 appears in court and is found guilty, the penalty that is imposed for the offense may 31 not exceed the bail amount for that offense established under (c) of this section. 01 * Sec. 38. AS 04.16.205(h) is amended to read: 02  (h) A violation of AS 04.11.501 [AS 04.11.498] or an ordinance adopted under 03 AS 04.11.501 [AS 04.11.498] may not be considered a criminal offense and may not 04 result in imprisonment, nor is a fine imposed for a violation considered criminal 05 punishment. A person cited for a violation does not have a right to a jury trial or 06 court appointed counsel. 07 * Sec. 39. AS 04.16.220(a) is amended to read: 08  (a) The following are subject to forfeiture: 09  (1) alcoholic beverages manufactured, sold, offered for sale or 10 possessed for sale, bartered or exchanged for goods and services in this state in 11 violation of AS 04.11.010; alcoholic beverages possessed, stocked, warehoused, or 12 otherwise stored in violation of AS 04.21.060; alcoholic beverages sold or offered for 13 sale in violation [IN AN AREA WHERE THE RESULTS] of a local option adopted 14 under AS 04.11.491 [ELECTION HAVE, UNDER AS 04.11.490 - 04.11.500, 15 PROHIBITED THE POSSESSION OF ALCOHOLIC BEVERAGES OR 16 PROHIBITED THE BOARD FROM ISSUING, RENEWING, OR TRANSFERRING 17 ONE OR MORE LICENSES OR PERMITS UNDER THIS TITLE IN THE AREA]; 18 alcoholic beverages transported into the state and sold to persons not licensed under 19 this chapter in violation of AS 04.16.170(b); 20  (2) materials and equipment used in the manufacture, sale, offering for 21 sale, possession for sale, barter or exchange of alcoholic beverages for goods and 22 services in this state in violation of AS 04.11.010; materials and equipment used in the 23 stocking, warehousing, or storage of alcoholic beverages in violation of AS 04.21.060; 24 materials and equipment used in the sale or offering for sale of an alcoholic beverage 25 in an area in violation [WHERE THE RESULTS] of a local option under 26 AS 04.11.491 [ELECTION HAVE, UNDER AS 04.11.490 - 04.11.500, PROHIBITED 27 THE BOARD FROM ISSUING, RENEWING, OR TRANSFERRING ONE OR 28 MORE LICENSES OR PERMITS UNDER THIS TITLE IN THE AREA]; 29  (3) aircraft, vehicles, or vessels used to transport, or facilitate the 30 transportation of 31  (A) alcoholic beverages manufactured, sold, offered for sale or 01 possessed for sale, bartered or exchanged for goods and services in this state 02 in violation of AS 04.11.010; 03  (B) property stocked, warehoused, or otherwise stored in 04 violation of AS 04.21.060; 05  (C) alcoholic beverages imported into a municipality or 06 established village in violation of AS 04.11.499 [AS 04.11.496]; 07  (4) alcoholic beverages found on licensed premises that do not bear 08 federal excise stamps if excise stamps are required under federal law; 09  (5) alcoholic beverages, materials or equipment used in violation of 10 AS 04.16.175. 11 * Sec. 40. AS 04.16.220(b) is amended to read: 12  (b) Property subject to forfeiture under this section may be actually or 13 constructively seized under an order issued by the superior court upon a showing of 14 probable cause that the property is subject to forfeiture under this section. Constructive 15 seizure is effected upon posting a signed notice of seizure on the item to be forfeited, 16 stating the violation and the date and place of seizure. Seizure without a court order 17 may be made if 18  (1) the seizure is incident to a valid arrest or search; 19  (2) the property subject to seizure is the subject of a prior judgment in 20 favor of the state; or 21  (3) there is probable cause to believe that the property is subject to 22 forfeiture under (a) of this section; except for alcoholic beverages possessed on 23 violation of AS 04.11.501 [AS 04.11.498] or an ordinance adopted under AS 04.11.501 24 [AS 04.11.498], property seized under this paragraph may not be held over 48 hours 25 or until an order of forfeiture is issued by the court, whichever is earlier. 26 * Sec. 41. AS 04.16.220(d) is amended to read: 27  (d) Property subject to forfeiture under (a) of this section may be forfeited 28  (1) upon conviction of a person for a violation of [UNDER] 29 AS 04.11.010, 04.11.499, [04.11.496(b), OR] AS 04.21.060, or AS 04.11.501 [UPON 30 ENTRY OF JUDGMENT UNDER AS 04.11.498] or an ordinance adopted under 31 AS 04.11.501 [AS 04.11.498]; or 01  (2) upon judgment by the superior court in a proceeding in rem that the 02 property was used in a manner subjecting it to forfeiture under (a) of this section. 03 * Sec. 42. AS 04.16.220(g) is amended to read: 04  (g) It is no defense in an in rem forfeiture proceeding brought under (d)(2) of 05 this section that a criminal proceeding is pending or has resulted in conviction or 06 acquittal of a person charged with violating AS 04.11.010, 04.11.499 [04.11.496(b)], 07 or AS 04.21.060. 08 * Sec. 43. AS 04.21.010(a) is amended to read: 09  (a) A municipality may adopt ordinances governing the importation, barter, 10 sale, and consumption of alcoholic beverages within the municipality and may ban 11 possession of alcoholic beverages under AS 04.11.491(a)(5) [AS 04.11.498(d) OR (e)]. 12 An ordinance adopted under this section may not be inconsistent with this title or 13 regulations adopted under this title. An ordinance that limits the monthly amounts 14 of alcoholic beverages a person may import into a municipality that has adopted 15 a local option under AS 04.11.491(a)(1), (2), or (3) is not inconsistent with this 16 title. 17 * Sec. 44. AS 04.21.010(b) is amended to read: 18  (b) After the adoption of a local option under AS 04.11.491(a), a [IF, AS A 19 RESULT OF AN ELECTION HELD IN ACCORDANCE WITH AS 04.11.502 IN A 20 MUNICIPALITY, THE BOARD IS PROHIBITED FROM ISSUING, RENEWING, 21 OR TRANSFERRING A LICENSE BETWEEN HOLDERS OR LOCATIONS OR IF 22 THE IMPORTATION OF ALCOHOLIC BEVERAGES IS PROHIBITED IN THE 23 MUNICIPALITY, THE] municipality may adopt an ordinance making the sale, [OR] 24 importation, or possession of alcoholic beverages a misdemeanor to the extent 25 prohibited under the local option. The ordinance may not be inconsistent with this 26 title or the regulations adopted under this title. 27 * Sec. 45. AS 04.21.010(c) is amended to read: 28  (c) A municipality may not impose taxes on alcoholic beverages except a 29  (1) [PROPERTY TAX ON ALCOHOLIC BEVERAGE 30 INVENTORIES; 31  (2)] sales tax on alcoholic beverage sales if a general sales tax is 01 [TAXES ARE] imposed on other sales within the municipality; 02  (2) [(3)] sales tax on alcoholic beverage sales that was in effect before 03 July 1, 1985; and 04  (3) [(4)] sales and use tax on alcoholic beverages if the sale of 05 alcoholic beverages within the municipality has been prohibited under 06 AS 04.11.491(a)(1), (4), or (5) [AS 04.11.490]. 07 * Sec. 46. AS 04.21.015(b) is amended to read: 08  (b) This section does not apply to AS 04.16.050, 04.16.051, 04.16.080; 09 AS 04.21.010, 04.21.020; alcoholic beverages manufactured in a quantity that exceeds 10 the limit imposed on private manufacture under federal law; or an area that has 11 adopted a local option law under AS 04.11.491 [AS 04.11.490 - 04.11.500]. 12 * Sec. 47. AS 04.21.025(a) is amended to read: 13  (a) As a condition of issuance or renewal of a license and selling alcoholic 14 beverages under a license, the board shall require a licensee who sells or serves 15 alcoholic beverages and a licensee's agents and employees who sell or serve alcoholic 16 beverages to complete an alcohol server education course approved by the board, if the 17 license is for a 18  (1) beverage dispensary; 19  (2) restaurant or eating place; 20  (3) club; 21  (4) package store; 22  (5) [COMMON CARRIER DISPENSARY; 23  (6)] recreational site; 24  (6) [(7)] community; 25  (7) [(8)] pub; 26  (8) [(9)] conditional contractor. 27 * Sec. 48. AS 04.21.025 is amended by adding a new subsection to read: 28  (e) A person licensed as a common carrier dispensary shall train agents and 29 employees who sell or serve alcoholic beverages on provisions of state law regarding 30 sale of alcoholic beverages, including AS 04.16.015, 04.16.020, 04.16.030, 04.16.051, 31 04.16.052, 04.16.120, 04.16.125, AS 04.21.030, and 04.21.050. The training must 01 include the subjects of the effects of alcohol consumption, identifying a drunken 02 person, determining valid identification, intervention to prevent unlawful alcohol 03 consumption, and penalties for unlawful acts by agents and employees of licensees. 04 A common carrier licensee shall, once every three years, provide the board with a 05 description of its training program including the subjects taught, teaching method, and 06 testing required. 07 * Sec. 49. AS 04.21.080(b)(1) is amended to read: 08  (1) "alcoholic beverage" means a spirituous, vinous, malt or other 09 fermented or distilled liquid, whatever the origin, that is intended for human 10 consumption as a beverage and that contains one-half of one percent or more of 11 alcohol by volume, whether produced commercially or privately; however, in an area 12 that has adopted a local option under AS 04.11.491 [LOCAL-OPTION 13 PROHIBITION UNDER AS 04.11.490 - 04.11.500], "alcoholic beverage" means a 14 spirituous, vinous, malt, or other fermented or distilled liquid, whatever the origin, that 15 is intended for human consumption as a beverage by the person who possesses or 16 attempts to possess it and that contains alcohol in any amount if the liquid is 17 produced privately, or that contains one-half of one percent or more of alcohol by 18 volume, if the liquid is produced commercially; 19 * Sec. 50. AS 04.21.080(b)(9) is amended to read: 20  (9) "established village" means an area not containing any part of 21 an incorporated city or another established village, that has a perimeter no more 22 than 10 miles in diameter clearly designated on a map by the local governing 23 body or the board in the absence of a local governing body, and that is 24  (A) an unincorporated community that is in the unorganized 25 borough and that has 25 or more permanent residents; or 26  (B) an unincorporated community that is in an organized 27 borough, has 25 or more permanent residents, and 28  (i) is on a road system and is located more than 50 29 miles outside the boundary limits of a unified municipality, or 30  (ii) is not on a road system and is located more than 15 31 miles outside the boundary limits of a unified municipality; 01 * Sec. 51. AS 15.07.064(g) is amended to read: 02  (g) In this section, "established village" means an unincorporated 03 community that is in 04  (A) the unorganized borough and that has 25 or more 05 permanent residents; or 06  (B) an organized borough, has 25 or more permanent 07 residents, and 08  (i) is on a road system and is located more than 50 09 miles outside the boundary limits of a unified municipality, or 10  (ii) is not on a road system and is located more than 11 15 miles outside the boundary limits of a unified municipality 12 [HAS THE MEANING GIVEN IN AS 04.21.080]. 13 * Sec. 52. AS 18.65.085(a) is amended to read: 14  (a) There is established in the Department of Public Safety, division of state 15 troopers, a narcotic drugs and alcohol enforcement unit for the purpose of investigating 16 and combating the illicit sale and distribution of narcotic drugs and alcoholic beverages 17 in the state. Enforcement of the alcoholic beverage control laws shall focus primarily 18 on the investigation, apprehension, and conviction of persons who violate 19 AS 04.11.010 by selling, importing, or possessing alcoholic beverages in violation of 20 a local option [AN ORDINANCE] adopted by a municipality or established village 21 under AS 04.11.491 [AS 04.11.490 - 04.11.500]. 22 * Sec. 53. AS 18.65.085(c) is amended to read: 23  (c) The Department of Public Safety may establish and administer a reward 24 program, and provide grants to municipalities, established villages, and, at the request 25 of a municipality or established village, to a nonprofit association that administers a 26 village public safety officer program, for reward programs leading to the apprehension 27 and conviction of persons who violate AS 04.11.010 by selling, importing, or 28 possessing alcoholic beverages in violation of a local option [AN ORDINANCE] 29 adopted by a municipality or established village under AS 04.11.491 [AS 04.11.490 30 - 04.11.500]. 31 * Sec. 54. AS 29.20.270(e) is amended to read: 01  (e) The veto does not extend to an ordinance adopted under AS 04.11.501 02 [AS 04.11.498]. This subsection applies to home rule and general law municipalities. 03 * Sec. 55. AS 29.25.020(d) is amended to read: 04  (d) This section does not apply to an ordinance proposed under 05 AS 04.11.507(d) [AS 04.11.502(c)]. 06 * Sec. 56. AS 29.25.070(d) is amended to read: 07  (d) This section does not apply to an ordinance adopted under AS 04.11.501(c) 08 [AS 04.11.498(d) OR (e)]. 09 * Sec. 57. AS 29.35.080(a) is amended to read: 10  (a) A municipality may regulate the possession, barter, sale, importation, and 11 consumption of alcoholic beverages under AS 04.11.480 - 04.11.509 [IN 12 ACCORDANCE WITH AS 04.11.480 - 04.11.506] and AS 04.21.010. 13 * Sec. 58. AS 29.45.010 is amended by adding a new subsection to read: 14  (d) A municipality may not levy a property tax on alcoholic beverages. 15 * Sec. 59. AS 43.60.010(a) is amended to read: 16  (a) Every brewer, distiller, bottler, jobber, retailer, wholesaler, or manufacturer 17 who sells alcoholic beverages in the state or who consigns shipments of alcoholic 18 beverages into the state, whether or not the alcoholic beverages are brewed, distilled, 19 bottled, or manufactured in the state, shall pay on all malt beverages with an [(] 20 alcoholic content of one percent or more by volume [)], wines, and hard or distilled 21 alcoholic beverages, the following taxes: 22  (1) malt beverages at the rate of 42 [35] cents a gallon or fraction of 23 a gallon; 24  (2) wine or other beverages of 21 percent alcohol by volume or less, 25 at the rate of $1.02 [85 CENTS] a gallon or fraction of a gallon; and 26  (3) other beverages having a content of more than 21 percent alcohol 27 by volume at the rate of $6.72 [$5.60] a gallon. 28 * Sec. 60. AS 47.37.045(e) is amended to read: 29  (e) In this section, 30  (1) "established village" means an unincorporated community that 31 is in 01  (A) the unorganized borough and that has 25 or more 02 permanent residents; or 03  (B) an organized borough, has 25 or more permanent 04 residents, and 05  (i) is on a road system and is located more than 50 06 miles outside the boundary limits of a unified municipality, or 07  (ii) is not on a road system and is located more than 08 15 miles outside the boundary limits of a unified municipality 09 [HAS THE MEANING GIVEN IN AS 04.21.080(b)]; 10  (2) "local governing body" has the meaning given in AS 04.21.080(b); 11  (3) "nonprofit organization" means an organization that qualifies for 12 exemption from taxation under 26 U.S.C. 501(c)(3) or (4) (Internal Revenue Code). 13 * Sec. 61. AS 04.11.190, 04.11.490, 04.11.492, 04.11.496, 04.11.498, 04.11.500, 04.11.502, 14 04.11.504, 04.11.506, and 04.11.510(d) are repealed. 15 * Sec. 62. TRANSITION: LOCAL OPTIONS EARLIER ADOPTED. Notwithstanding 16 the provisions of this Act, local options adopted by an area under AS 04.11.490, 04.11.492, 17 04.11.496, 04.11.498, or 04.11.500 or previous local option laws before the effective date of 18 this Act shall continue in effect until changed under AS 04.11.493 or removed under 19 AS 04.11.495. References in this Act to local option elections conducted under AS 04.11.491, 20 04.11.493, 04.11.495, 04.11.497, 04.11.499, 04.11.501, 04.11.503, 04.11.505, and 04.11.507 21 are to be interpreted to include local option elections conducted under AS 04.11.490, 22 04.11.492, 04.11.496, 04.11.498, 04.11.500, or 04.11.502 or previous local option laws in 23 effect before the effective date of this Act. 24 * Sec. 63. TRANSITION: COMMUNITY LIQUOR LICENSES. A community liquor 25 license issued under AS 04.11.190 before the effective date of this Act to operate a beverage 26 dispensary shall continue as a beverage dispensary license under AS 04.11.090. A community 27 liquor license issued under AS 04.11.190 before the effective date of this Act to operate a 28 package store shall continue as a package store license under AS 04.11.150. 29 * Sec. 64. TRANSITION. A person licensed under AS 04.11.160 on the effective date of 30 this section shall submit the information required under AS 04.11.160(f), added by sec. 7 of 31 this Act, by September 30, 1994. 01 * Sec. 65. This Act takes effect July 1, 1994.