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SB 87: "An Act relating to community local options for control of alcoholic beverages; relating to the control of alcoholic beverages; relating to the definition of 'alcoholic beverage'; relating to purchase and sale of alcoholic beverages; relating to alcohol server education courses; and providing for an effective date."

00SENATE BILL NO. 87 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 and sale of alcoholic beverages; relating 04 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 if the person is in an area that has adopted a local option under 09 AS 04.11.491. If the area has adopted a local option under AS 04.11.491(a)(1), (2), 10 or (3), or (b)(1) or (2), a package store licensee outside of that local option area 11 may receive orders as provided under AS 04.11.150 but may not solicit in that 12 area or receive orders through an agent or employee in that area. This subsection 13 does not apply to a package store licensee who operates a package store in an 14 area that has adopted a local option under AS 04.11.491(a)(2)(C) or (3)(C) or

01 (b)(2)(C) [WHERE THE RESULTS OF A LOCAL OPTION ELECTION HAVE, 02 UNDER AS 04.11.490 - 04.11.500, PROHIBITED THE BOARD FROM ISSUING, 03 RENEWING, OR TRANSFERRING ONE OR MORE TYPES OF LICENSES OR 04 PERMITS UNDER THIS TITLE, UNLESS THE PERSON IS LICENSED UNDER 05 THIS TITLE AND THE ORDER IS ACTUALLY RECEIVED BY THAT PERSON 06 FROM THE PURCHASER OF THE ALCOHOLIC BEVERAGE]. A person who 07 violates this subsection is punishable upon conviction as provided under 08 AS 04.16.200(a) or (b). 09 * Sec. 2. AS 04.11.010(c) is amended to read: 10 (c) In a criminal prosecution for possession of alcoholic beverages for sale in 11 violation of (a) of this section, the fact that a person possessed more than 12 liters of 12 distilled spirits, 24 liters or more of wine, or 12 gallons [45 LITERS] or more of malt 13 beverages in an area where the sale of alcoholic beverages is restricted or prohibited 14 under AS 04.11.491 [AS 04.11.490, 04.11.492, 04.11.496, OR 04.11.500] creates a 15 presumption that the person possessed the alcoholic beverages for sale. 16 * Sec. 3. AS 04.11.100 is amended by adding a new subsection to read: 17 (f) Notwithstanding the provisions of (b) and (e) of this section, upon written 18 application and approval of the local governing body, the board may issue or reissue 19 a restaurant or eating place license and exempt the licensee from the requirements of 20 (b) and (e) of this section. A licensee exempt as provided in this subsection shall 21 provide food items for sale on the premises as shown on a menu approved by the 22 board and available to patrons. The board may not 23 (1) issue or reissue a license as provided under this subsection if 24 (A) the issuance or reissuance would result in more than one 25 exempt restaurant or eating place license for every 10 restaurant or eating place 26 licenses allowed under the provisions of AS 04.11.400(a)(2) or (3); 27 (B) the premises would be located in a building having a public 28 entrance within 200 feet of the boundary line of a school or a church 29 building in which religious services are being regularly conducted; for purposes 30 of this subparagraph, the 200-foot prohibition is measured from the outer 31 boundary line of the school or the public entrance of the church building by the

01 shortest pedestrian route to the nearest public entrance of the restaurant or 02 eating place; 03 (2) reissue a restaurant or eating place license as exempt as provided 04 under the provisions of this subsection if the license is being transferred under the 05 provisions of AS 04.11.400(f); or 06 (3) transfer an exempt license issued under this subsection to another 07 person. 08 * Sec. 4. AS 04.11.135(a) is amended to read: 09 (a) A brewpub license authorizes the holder of a beverage dispensary license 10 to 11 (1) manufacture on premises licensed under the beverage dispensary 12 license not more than 75,000 [16,000] gallons of beer in a calendar year; and 13 (2) sell beer manufactured on premises licensed under the beverage 14 dispensary license for consumption only on the licensed premises. 15 * Sec. 5. AS 04.11.135(b) is amended to read: 16 (b) Except as provided under AS 04.11.360(10) [AS 04.11.360(12)], the 17 brewpub license is not transferable, shall remain the property of the state, and is not 18 subject to any form of alienation. 19 * Sec. 6. AS 04.11.150(a) is repealed and reenacted to read: 20 (a) Except as provided under (g) of this section, a package store license 21 authorizes the licensee to sell alcoholic beverages to a person present on the licensed 22 premises or to a person known to the licensee who makes a written solicitation to that 23 licensee for shipment. A licensee, agent, or employee may only ship alcoholic 24 beverages to the purchaser. Before commencing the practice of shipping alcoholic 25 beverages, and with a subsequent application to renew the license, a licensee shall 26 notify the board in writing of the licensee's intention to ship alcoholic beverages in 27 response to a written solicitation. The package store licensee, agent, or employee shall 28 include written information on fetal alcohol syndrome and fetal alcohol effects 29 resulting from a woman consuming alcohol during pregnancy in a shipment of 30 alcoholic beverages sold in response to a written solicitation. 31 * Sec. 7. AS 04.11.150(g) is repealed and reenacted to read:

01 (g) If a shipment is to an area that has restricted the sale of alcoholic 02 beverages under AS 04.11.491(a)(1), (2), or (3) or (b)(1) or (2), a package store 03 licensee, agent, or employee may not ship to a purchaser more than 12 liters of 04 distilled spirits, 24 liters or more of wine, or 12 gallons or more of malt beverages in 05 a calendar month. 06 * Sec. 8. AS 04.11.160 is amended by adding new subsections to read: 07 (f) A person who applies for issuance or renewal of a license under this 08 section shall file, on forms provided by the board, the following information regarding 09 each brand of alcoholic beverage that the person intends to purchase, offer for sale, or 10 sell: (1) the full and correct brand or trade name; (2) the nature and type of the brand; 11 (3) the name of the distiller, brewer, vintner, or importer of the brand; and (4) a 12 certification by the distiller, brewer, vintner, or importer of the brand that the person 13 is a primary source of supply for the brand. In addition to the fees imposed under (a) 14 and (b) of this section, a person filing under this subsection shall pay a biennial filing 15 fee of $50 for each brand of alcoholic beverage the person intends to purchase, offer 16 for sale, or sell. In this subsection, "distiller, brewer, vintner, or importer" includes 17 an exclusive agent of the distiller, brewer, vintner, or importer if the agent's name 18 appears on the label of the brand approved by the Federal Bureau of Alcohol, Tobacco 19 and Firearms. 20 (g) A person licensed under this section shall notify the board within 10 days 21 of a change in a primary source of supply designation required under (f) of this 22 section. 23 * Sec. 9. AS 04.16 is amended by adding a new section to read: 24 Sec. 04.16.172. RESTRICTIONS ON PURCHASE AND SALE OF 25 ALCOHOLIC BEVERAGES. A person licensed under AS 04.11.090, 04.11.100, 26 04.11.110, or 04.11.150 may not purchase, sell, or offer for sale an alcoholic beverage 27 unless the alcoholic beverage being purchased, sold, or offered for sale was obtained 28 from a person licensed under 29 (1) AS 04.11.160 as a primary source of supply for the alcoholic 30 beverage being purchased, sold, or offered for sale; or 31 (2) AS 04.11.130, 04.11.140, or 04.11.170.

01 * Sec. 10. AS 04.11.270(b) is amended to read: 02 (b) A license shall be renewed as follows: 03 (1) on or before November 1 [OF EACH YEAR], the director shall 04 mail a renewal application to each licensee whose license, unless renewed, will expire 05 on December 31 of that year; the application shall be mailed to the licensee at the 06 licensed premises or at a mailing address furnished by the licensee; 07 (2) the licensee shall submit the completed renewal application and the 08 biennial license fee to the director before January 1 [ON OR BEFORE 09 DECEMBER 31]; 10 (3) a renewal application filed after December 31 is delinquent and 11 must be accompanied by a $500 [$200] penalty fee; 12 (4) if December 31 falls on a weekend or a state holiday, the deadline 13 is extended to the first business day following December 31. 14 * Sec. 11. AS 04.11.320 is amended to read: 15 Sec. 04.11.320. DENIAL OF NEW LICENSES AND PERMITS. (a) An 16 application requesting issuance of a new license shall be denied if 17 (1) the board finds, after review of all relevant information, that 18 issuance of the license would not be in the best interests of the public; 19 (2) issuance of the license is prohibited by AS 04.11.390, relating to 20 residency, or AS 04.11.410, relating to location of premises near churches and schools; 21 (3) the application has not been completed in accordance with 22 AS 04.11.260; 23 (4) issuance of the license would violate the restrictions pertaining to 24 the particular license imposed under this title; 25 (5) issuance of the license is prohibited under this title as a result of 26 an election conducted under AS 04.11.507 [IN ACCORDANCE WITH 27 AS 04.11.502]; 28 (6) the requirements of AS 04.11.420 - 04.11.450 relating to zoning, 29 ownership and location of the license, and the identity and financing of a licensee have 30 not been met; 31 (7) [THE LICENSED PREMISES ARE TO BE LOCATED IN A

01 MUNICIPALITY, THE TYPE OF LICENSE SOUGHT IS A BEVERAGE 02 DISPENSARY OR PACKAGE STORE LICENSE, AND THAT TYPE OF LICENSE 03 IS ALREADY IN EFFECT IN THE MUNICIPALITY UNDER A COMMUNITY 04 LIQUOR LICENSE, UNLESS THE NEW LICENSE IS TO BECOME EFFECTIVE 05 AFTER THE COMMUNITY LIQUOR LICENSE IS NO LONGER EFFECTIVE, 06 WHETHER AS THE RESULT OF A LOCAL OPTION ELECTION OR 07 OTHERWISE; 08 (8) THE AUTHORITY SOUGHT IS AUTHORITY TO OPERATE A 09 BEVERAGE DISPENSARY OR PACKAGE STORE UNDER A COMMUNITY 10 LIQUOR LICENSE FOR PREMISES TO BE LOCATED IN A MUNICIPALITY 11 WHERE THE AUTHORITY SOUGHT IS ALREADY HELD BY A PRIVATE 12 LICENSEE UNDER A BEVERAGE DISPENSARY OR PACKAGE STORE 13 LICENSE, UNLESS THE COMMUNITY LIQUOR LICENSE IS TO BECOME 14 EFFECTIVE AFTER THE PRIVATELY HELD LICENSE IS NO LONGER 15 EFFECTIVE, WHETHER AS THE RESULT OF A LOCAL OPTION ELECTION OR 16 OTHERWISE; 17 (9)] issuance of the license is prohibited under AS 04.11.400(a) or 18 prohibition of issuance of the license is found necessary under AS 04.11.400(b); 19 (8) [(10)] the application contains false statements of material fact; 20 (9) [(11)] the license is sought for the sale of alcoholic beverages in a 21 first or second class city where [IN WHICH] there are no licensed premises at the 22 time of application unless a majority of the voters have voted not to approve [IN] a 23 local option to restrict or prohibit the sale of alcoholic beverages under 24 AS 04.11.491, have voted to approve a local option to allow the type of premises 25 under AS 04.11.491(a)(2) or (3), or have voted to remove a restriction or 26 prohibition on the sale of alcoholic beverages under AS 04.11.495 [ELECTION 27 CONDUCTED IN ACCORDANCE WITH AS 04.11.502 HAVE VOTED "NO" ON 28 THE QUESTION SET OUT IN AS 04.11.490, OR HAVE VOTED "YES" ON A 29 QUESTION SET OUT IN AS 04.11.492 OR 04.11.500]; or 30 (10) [(12)] the license is sought for the sale of alcoholic beverages in 31 an established village where [IN WHICH] there are no licensed premises at the time

01 of application unless a majority of the voters have voted not to approve [IN] a local 02 option to restrict or prohibit the sale of alcoholic beverages under AS 04.11.491, 03 have voted to approve a local option to allow the type of premises under 04 AS 04.11.491(b)(2), or have voted to remove a restriction or prohibition on the 05 sale of alcoholic beverages under AS 04.11.495 [ELECTION CONDUCTED IN 06 ACCORDANCE WITH AS 04.11.502 HAVE VOTED "NO" ON THE QUESTION 07 SET OUT IN AS 04.11.490 OR HAVE VOTED "YES" ON THE QUESTION SET 08 OUT IN AS 04.11.500]. 09 (b) An application requesting issuance of a new permit shall be denied if 10 (1) the board finds, after review of all relevant information, that 11 issuance of the permit would not be in the best interests of the public; 12 (2) the board finds that any of the statements made in the application 13 are untrue; 14 (3) the application has not been completed in accordance with 15 AS 04.11.260; or 16 (4) the permit is sought for the sale of alcoholic beverages in a first or 17 second class city or established village where [IN WHICH] there are no licensed 18 premises at the time of application unless a majority of the voters have voted not to 19 approve [IN] a local option to restrict or prohibit the sale of alcoholic beverages 20 under AS 04.11.491, have voted to approve a local option to allow the type of 21 permit under AS 04.11.491(a)(2) or (b)(2), or have voted to remove a restriction 22 or prohibition on the sale of alcoholic beverages under AS 04.11.495 [ELECTION 23 CONDUCTED IN ACCORDANCE WITH AS 04.11.502 HAVE VOTED "NO" ON 24 THE QUESTION SET OUT IN AS 04.11.490]. 25 * Sec. 12. AS 04.11.330(a) is amended to read: 26 (a) An application requesting renewal of a license shall be denied if 27 (1) the board finds, after review of all relevant information, that 28 renewal of the license would not be in the best interests of the public; 29 (2) the license has been revoked for any cause; 30 (3) the applicant has not operated the licensed premises for at least 30 31 eight-hour days during each of the two preceding calendar years, unless the board

01 determines that the licensed premises are under construction or cannot be operated 02 through no fault of the applicant; 03 (4) the board finds that issuance of an existing license under 04 AS 04.11.400(d) has not encouraged tourist trade; 05 (5) the requirements of AS 04.11.420 - 04.11.450 relating to zoning, 06 ownership of the license, and financing of the licensee have not been met; 07 (6) renewal of the license would violate the restrictions pertaining to 08 the particular license under this title or the license has been operated in violation of 09 a condition or restriction imposed by the board; 10 (7) renewal of the license is prohibited under this title as a result of an 11 election conducted under AS 04.11.507 [IN ACCORDANCE WITH AS 04.11.502]; 12 (8) the application has not been completed in accordance with 13 AS 04.11.270; or 14 (9) the license was issued under AS 04.11.400(g), and the board finds 15 that the public convenience does not require renewal. 16 * Sec. 13. AS 04.11.340 is amended to read: 17 Sec. 04.11.340. DENIAL OF REQUEST FOR RELOCATION. An application 18 requesting approval for the relocation of licensed premises shall be denied if 19 (1) the board finds, after review of all relevant information, that 20 relocation of the license would not be in the best interests of the public; 21 (2) the relocation is prohibited under AS 04.11.400(a) or (b); 22 (3) the license would be relocated out of the established village, 23 incorporated city, unified municipality, or population area established under 24 AS 04.11.400(a) within which it is located; 25 (4) transfer of ownership is to be made concurrently with the relocation 26 of the licensed premises and a ground for denial of the transfer of ownership under 27 AS 04.11.360 is presented; 28 (5) the application has not been completed in accordance with 29 AS 04.11.290; 30 (6) relocation of the license would result in violation of a local zoning 31 law;

01 (7) relocation of the license would violate the restrictions pertaining to 02 the particular license imposed by this title; 03 (8) relocation of the license is prohibited under this title as a result of 04 an election conducted under AS 04.11.507 [IN ACCORDANCE WITH 05 AS 04.11.502]; or 06 (9) [THE LICENSED PREMISES ARE TO BE LOCATED IN A 07 MUNICIPALITY, THE TYPE OF LICENSE SOUGHT TO BE RELOCATED IS A 08 BEVERAGE DISPENSARY OR PACKAGE STORE LICENSE, AND THAT TYPE 09 OF LICENSE IS ALREADY IN EFFECT IN THE MUNICIPALITY UNDER A 10 COMMUNITY LIQUOR LICENSE, UNLESS THE RELOCATION IS TO BECOME 11 EFFECTIVE AFTER THE COMMUNITY LIQUOR LICENSE IS NO LONGER 12 EFFECTIVE, WHETHER AS THE RESULT OF A LOCAL OPTION ELECTION OR 13 OTHERWISE; 14 (10)] the license was issued under AS 04.11.400(d), (e), or (g). 15 * Sec. 14. AS 04.11.360 is amended to read: 16 Sec. 04.11.360. DENIAL OF TRANSFER OF A LICENSE TO ANOTHER 17 PERSON. An application requesting approval of a transfer of a license to another 18 person under this title shall be denied if 19 (1) the board finds, after review of all relevant information, that transfer 20 of a license to another person would not be in the best interests of the public; 21 (2) the application has not been completed in accordance with 22 AS 04.11.280; 23 (3) the application contains false statements of material fact; 24 (4) the transferor has not paid all debts or taxes arising from the 25 conduct of the business licensed under this title unless 26 (A) the transferor gives security for the payment of the debts 27 or taxes satisfactory to the creditor or taxing authority; or 28 (B) the transfer is pursuant to a promise given as collateral by 29 the transferor to the transferee in the course of an earlier transfer of the license 30 under which promise the transferor is obliged to transfer the license back to the 31 transferee in the event of default in payment for property conveyed as part of

01 the earlier transfer of the license; 02 (5) transfer of the license to another person would result in violation 03 of the provisions of this title relating to identity of licensees and financing of licensees; 04 (6) transfer of the license to another person would violate the 05 restrictions pertaining to the particular license under this title; 06 (7) transfer of the license to another person is prohibited under the 07 provisions of this title as a result of an election conducted under AS 04.11.507 [IN 08 ACCORDANCE WITH AS 04.11.502]; 09 (8) the prospective transferee does not have the qualifications required 10 under this title of an original applicant; 11 (9) [THE LICENSED PREMISES ARE LOCATED IN A 12 MUNICIPALITY, THE TYPE OF LICENSE SOUGHT TO BE TRANSFERRED IS 13 A BEVERAGE DISPENSARY OR PACKAGE STORE LICENSE, AND THAT TYPE 14 OF LICENSE IS ALREADY IN EFFECT IN THE MUNICIPALITY UNDER A 15 COMMUNITY LIQUOR LICENSE, UNLESS THE TRANSFER IS TO BECOME 16 EFFECTIVE AFTER THE COMMUNITY LIQUOR LICENSE IS NO LONGER 17 EFFECTIVE, WHETHER AS THE RESULT OF A LOCAL OPTION ELECTION OR 18 OTHERWISE; 19 (10) THE AUTHORITY SOUGHT IS AUTHORITY TO OPERATE 20 A BEVERAGE DISPENSARY OR PACKAGE STORE UNDER A COMMUNITY 21 LIQUOR LICENSE FOR PREMISES TO BE LOCATED IN A MUNICIPALITY 22 WHERE THE AUTHORITY SOUGHT IS ALREADY HELD BY A PRIVATE 23 LICENSEE UNDER A BEVERAGE DISPENSARY OR PACKAGE STORE 24 LICENSE, UNLESS THE TRANSFER IS TO BECOME EFFECTIVE AFTER THE 25 PRIVATELY HELD LICENSE IS NO LONGER EFFECTIVE, WHETHER AS THE 26 RESULT OF A LOCAL OPTION ELECTION OR OTHERWISE; 27 (11)] the license was issued under AS 04.11.100(f) or 04.11.400(g); or 28 (10) [AS 04.11.400(g); (12)] the license was issued under 29 AS 04.11.135, unless the transferor is also applying to transfer the beverage dispensary 30 license required under AS 04.11.135 to the same transferee. 31 * Sec. 15. AS 04.11.370 is amended to read:

01 Sec. 04.11.370. SUSPENSION AND REVOCATION OF LICENSES AND 02 PERMITS. A license or permit shall be suspended or revoked if the board finds 03 [THAT ONE OR MORE OF THE FOLLOWING GROUNDS EXISTS:] 04 (1) misrepresentation of a material fact on an application made under 05 this title or a regulation adopted under this title [FOR A LICENSE OR PERMIT]; 06 (2) continuation of the manufacture, sale, or service of alcoholic 07 beverages by the licensee or permittee [ACTIVITIES AUTHORIZED UNDER A 08 LICENSE OR PERMIT] would be contrary to the best interests of the public; 09 (3) failure on the part of the licensee to correct a defect [DEFECTS] 10 that constitutes a violation [CONSTITUTE VIOLATIONS] of this title, a condition 11 or restriction imposed under AS 04.11.395, a regulation [REGULATIONS] adopted 12 under this title, or other laws [WITHIN A PRESCRIBED TIME] after receipt of notice 13 issued by the board or its agent; 14 (4) conviction of a licensee of a violation of [A PROVISION OF] this 15 title, a regulation adopted under this title, or an ordinance adopted under AS 04.21.010; 16 (5) conviction of an [THE] agent or employee of a licensee of a 17 violation of this title, a regulation adopted under this title, or an ordinance adopted 18 under AS 04.21.010, if the licensee is found by the board to have either knowingly 19 allowed the violation or to have recklessly or with criminal negligence failed to act in 20 accordance with the duty prescribed under AS 04.21.030 with the result that the [AN] 21 agent or employee violates a law, regulation, or ordinance; 22 (6) failure of the licensee to comply with the public health, fire, or 23 safety laws and regulations [PERTAINING TO PUBLIC HEALTH] in the state; 24 (7) use of the licensed premises as a resort for illegal possessors or 25 users of narcotics, prostitutes, or promoters of prostitution; in addition to any other 26 legally competent evidence, the character of the premises may be proved by the 27 general reputation of the premises in the community as a resort for illegal possessors 28 or users of narcotics, prostitutes, or promoters of prostitution; 29 (8) occurrence of illegal gambling within the limits of the licensed 30 premises; 31 (9) the licensee permitted a [PERMITTING ANY] public offense

01 involving moral turpitude to occur on the licensed premises; 02 (10) violation by a licensee of this title, a condition or restriction 03 imposed under AS 04.11.395, a regulation adopted under this title, or an ordinance 04 adopted under AS 04.21.010; or 05 (11) violation by an agent or employee of a licensee of a provision of 06 this title, a condition or restriction imposed under AS 04.11.395, a regulation 07 adopted under this title, or an ordinance adopted under AS 04.21.010, if the licensee 08 is found by the board to have either knowingly allowed the violation or to have 09 recklessly or with criminal negligence failed to act in accordance with the duty 10 prescribed under AS 04.21.030 with the result that the agent or employee violates the 11 law, condition or restriction, regulation, or ordinance. 12 * Sec. 16. AS 04.11 is amended by adding a new section to read: 13 Sec. 04.11.395. BOARD IMPOSED CONDITIONS OR RESTRICTIONS. 14 The board may, in the best interests of the public, impose conditions or restrictions on 15 a license or permit issued under this chapter. 16 * Sec. 17. AS 04.11.400(a) is amended to read: 17 (a) Except as provided in (d) - (h) of this section, a new license may not be 18 issued and the board may prohibit relocation of an existing license 19 (1) outside an established village, incorporated city, unified 20 municipality, or organized borough if after the issuance or relocation there would be 21 (A) more than one restaurant or eating place license for each 1,500 population or 22 fraction of that [1,500] population, or (B) more than one license of each other type, 23 including licenses that have been issued under (d) or (e) of this section, for each 3,000 24 population or fraction of that [3,000] population, in a radius of five miles of the 25 licensed premises [OR LOCATION OF PREMISES SOUGHT TO BE LICENSED], 26 excluding the populations of established villages, incorporated cities, unified 27 municipalities, and organized boroughs that are wholly or partly included within the 28 radius; 29 (2) inside an established village, incorporated city, or unified 30 municipality if after the issuance or relocation there would be inside the established 31 village, incorporated city, or unified municipality

01 (A) more than one restaurant or eating place license for each 02 1,500 population or fraction of that [1,500] population; or 03 (B) more than one license of each other type, including licenses 04 that have been issued under (d) or (e) of this section, for each 3,000 population 05 or fraction of that [3,000] population [INSIDE THE ESTABLISHED 06 VILLAGE, INCORPORATED CITY, OR UNIFIED MUNICIPALITY]; 07 (3) inside an organized borough but outside an established village or 08 incorporated city located within the borough, if after the issuance or relocation there 09 would be inside the borough, but outside the established villages and incorporated 10 cities located within the borough, 11 (A) more than one restaurant or eating place license for each 12 1,500 population or fraction of that [1,500] population; or 13 (B) more than one license of each other type, including licenses 14 that have been issued under (d) or (e) of this section, for each 3,000 population 15 or fraction of that [3,000] population [INSIDE THE BOROUGH,] excluding 16 the population of those established villages that have adopted a local option 17 under AS 04.11.491(b)(1), (3), or (4) [CONDUCTED AN ELECTION ON A 18 QUESTION SET OUT IN AS 04.11.490, 04.11.496, OR 04.11.500], and 19 excluding the population of incorporated cities located within the organized 20 borough. 21 * Sec. 18. AS 04.11.480(a) is amended to read: 22 (a) A [IF A] local governing body may [WISHES TO] protest the issuance, 23 renewal, relocation, [TRANSFER OF LOCATION,] or transfer to another person of 24 a license by sending [, IT SHALL FURNISH] the board and the applicant [WITH] a 25 protest and the reasons for the protest within 30 days of receipt from the board of 26 notice of filing of the application. The local governing body may protest the 27 continued operation of a license during the second year of the biennial license 28 period by sending the board and the licensee a protest and the reasons for the 29 protest by January 31 of the second year of the license. The procedures for 30 action on a protest of continued operation of a license are the same as the 31 procedures for action on a protest of a renewal application. The board shall

01 consider a protest and testimony received at a hearing conducted under 02 AS 04.11.510(b)(2) or (4) when it considers the application or continued operation, 03 and the protest and the record of the hearing conducted under AS 04.11.510(b)(2) or 04 (4) shall be kept [RETAINED] as part of the board's permanent record of its review 05 [OF THE APPLICATION]. If an application or continued operation is protested, the 06 board shall deny [MAY NOT APPROVE] the application or continued operation 07 unless the board finds that the protest is arbitrary, capricious, and unreasonable. 08 * Sec. 19. AS 04.11 is amended by adding a new section to read: 09 Sec. 04.11.491. LOCAL OPTIONS. (a) If a majority of the persons voting 10 on the question vote to approve the option, a municipality shall adopt a local option 11 to prohibit 12 (1) the sale of alcoholic beverages; 13 (2) the sale of alcoholic beverages except by one or more of the 14 following listed on the ballot: 15 (A) a restaurant or eating place licensee; 16 (B) a beverage dispensary licensee; 17 (C) a package store licensee; or 18 (D) a caterer holding a permit under AS 04.11.230 to sell 19 alcoholic beverages at a site within the municipality who is also licensed under 20 a beverage dispensary license for premises outside of the municipality; 21 (3) the sale of alcoholic beverages except on premises operated by the 22 municipality and under a type of licensed premises listed on the ballot, that may 23 include one or more of the following: 24 (A) a restaurant or eating place license; 25 (B) a beverage dispensary license; or 26 (C) a package store license; 27 (4) the sale and importation of alcoholic beverages; or 28 (5) the sale, importation, and possession of alcoholic beverages. 29 (b) If a majority of the persons voting on the question vote to approve the 30 option, an established village shall exercise a local option to prohibit 31 (1) the sale of alcoholic beverages;

01 (2) the sale of alcoholic beverages except by one or more of the 02 following listed on the ballot: 03 (A) a restaurant or eating place licensee; 04 (B) a beverage dispensary licensee; 05 (C) a package store licensee; or 06 (D) a caterer holding a permit under AS 04.11.230 to sell 07 alcoholic beverages at a site within the established village who is also licensed 08 under a beverage dispensary license for premises outside of the established 09 village; 10 (3) the sale and importation of alcoholic beverages; or 11 (4) the sale, importation, and possession of alcoholic beverages. 12 (c) A ballot question to adopt a local option under this section must at least 13 contain language substantially similar to: "Shall (name of municipality or village) 14 adopt a local option to prohibit (local option under (a) or (b) of this section)? (yes or 15 no)." 16 (d) The ballot for an election on the option set out in (a)(2)(A), (a)(3)(A), or 17 (b)(2)(A) of this section must include an explanation of the authority to sell alcoholic 18 beverages given to a restaurant or eating place. The ballot for an election on the 19 option set out in (a)(2)(B) or (D), (a)(3)(B), or (b)(2)(B) or (D) of this section must 20 include a statement that a beverage dispensary license is commonly known as a "bar" 21 and an explanation of the authority to sell alcoholic beverages given to a beverage 22 dispensary licensee. The ballot for an election on the option set out in (a)(2)(C), 23 (a)(3)(C), or (b)(2)(C) of this section must include a statement that a package store 24 license is commonly known as a "liquor store" and an explanation of the authority to 25 sell alcoholic beverages given to a package store licensee. 26 (e) If a municipality dissolves under AS 29.06.450(a) or (b), a local option 27 adopted by the municipality under (a) of this section shall continue in effect as the 28 corresponding local option under (b) of this section for an established village having 29 the same perimeter as the previous boundaries of the municipality. A license for 30 premises operated by the municipality under AS 04.11.505 expires when the 31 municipality dissolves.

01 (f) A municipality or established village that has adopted a local option under 02 (a)(1), (2), or (3) or (b)(1) or (2) of this section may designate a site for the delivery 03 of alcoholic beverages to individuals in the area or a site for a person to bring 04 alcoholic beverages if the alcoholic beverages are imported into the area. This 05 subsection does not apply to the delivery or importation of 06 (1) one liter or less of distilled spirits, two liters or less of wine, or one 07 gallon or less of malt beverages; or 08 (2) alcoholic beverages to a premises licensed under (a)(2) - (3) or 09 (b)(2) of this section. 10 * Sec. 20. AS 04.11 is amended by adding new sections to read: 11 Sec. 04.11.493. CHANGE OF LOCAL OPTION. (a) If a majority of persons 12 voting on the question vote to approve a different local option, a municipality or 13 established village shall change a local option previously adopted under AS 04.11.491 14 to the different approved option. 15 (b) A ballot question to change a local option under this section must at least 16 contain language substantially similar to: "Shall (name of municipality or village) 17 change the local option currently in effect, that prohibits (current local option under 18 AS 04.11.491), and adopt in its place a local option to prohibit (proposed local option 19 under AS 04.11.491)? (yes or no)." 20 Sec. 04.11.495. REMOVAL OF LOCAL OPTION. (a) If a majority of the 21 persons voting on the question vote to remove the option, a municipality or established 22 village shall remove a local option previously adopted under AS 04.11.491. The 23 option is repealed effective the first day of the month following certification of the 24 results of the election. 25 (b) A ballot question to remove a local option under this section must at least 26 contain language substantially similar to: "Shall (name of municipality or village) 27 remove the local option currently in effect, that prohibits (current local option under 28 AS 04.11.491), so that there is no longer any local option in effect? (yes or no)." 29 (c) When issuing a license in the area that has removed a local option, the 30 board shall give priority to an applicant who was formerly licensed and whose license 31 was not renewed because of the results of the previous local option election. However,

01 an applicant described in this subsection does not have a legal right to a license and 02 the board is not required to approve the application. 03 * Sec. 21. AS 04.11 is amended by adding a new section to read: 04 Sec. 04.11.497. EFFECT ON LICENSES OF PROHIBITION OF SALE. If 05 a majority of voters vote to prohibit the sale of alcoholic beverages under 06 AS 04.11.491(a)(1), (a)(4) or (5), (b)(1), or (b)(3) or (4), the board may not issue, 07 renew, or transfer, between persons or locations, a license for premises located within 08 the boundaries of the municipality and in unincorporated areas within five miles of the 09 boundaries of the municipality or within the perimeter of the established village. A 10 license that may not be renewed because of a local option election held under this 11 section is void 90 days after the results of the election are certified. A license that 12 expires during the 90 days after the results of a local option election are certified may 13 be extended, until it is void under this section, by payment of a prorated portion of the 14 biennial license fee. 15 * Sec. 22. AS 04.11 is amended by adding a new section to read: 16 Sec. 04.11.499. PROHIBITION OF IMPORTATION AFTER ELECTION. If 17 a majority of the voters vote to prohibit the importation of alcoholic beverages under 18 AS 04.11.491(a)(4) or (5) or (b)(3) or (4), a person, beginning on the first day of the 19 month following certification of the results of the election, may not knowingly send, 20 transport, or bring an alcoholic beverage into the municipality or established village, 21 unless the alcoholic beverage is sacramental wine to be used for bona fide religious 22 purposes based on tenets or teachings of a church or religious body, is limited in 23 quantity to the amount necessary for religious purposes, and is dispensed only for 24 religious purposes by a person authorized by the church or religious body to dispense 25 the sacramental wine. 26 * Sec. 23. AS 04.11 is amended by adding a new section to read: 27 Sec. 04.11.501. PROHIBITION OF POSSESSION AFTER ELECTION. (a) 28 If a majority of the voters vote to prohibit the possession of alcoholic beverages under 29 AS 04.11.491(a)(5) or (b)(4), a person may not knowingly possess an alcoholic 30 beverage in the municipality or established village, unless the alcoholic beverage is 31 sacramental wine to be used for bona fide religious purposes based on tenets or

01 teachings of a church or religious body, is limited in quantity to the amount necessary 02 for religious purposes, and is dispensed only for religious purposes, by a person 03 recognized by the church or religious body as authorized to dispense the wine. 04 (b) If there are licensed premises within the municipality or established village, 05 the prohibition on possession is effective beginning 90 days after the results of the 06 election are certified. If there are no licensed premises within the municipality or 07 established village, the prohibition on possession is effective beginning 60 days after 08 the results of the election are certified. 09 (c) Upon the adoption by a municipality of a local option under 10 AS 04.11.491(a)(5), an ordinance is adopted containing the provisions of this section. 11 (d) In this section, "possession" means having physical possession of or 12 exercising dominion or control over an alcoholic beverage, but does not include having 13 an alcoholic beverage within the digestive system of a person. 14 * Sec. 24. AS 04.11 is amended by adding a new section to read: 15 Sec. 04.11.503. EFFECT ON LICENSES OF RESTRICTION ON SALE. If 16 a majority of the voters vote under AS 04.11.491(a)(2) or (b)(2) to prohibit sale of 17 alcoholic beverages except by the type or types of licensees or permit holders listed 18 on the ballot, the board may not issue, renew, or transfer between persons or locations 19 a license for premises located within the boundaries of the municipality and in 20 unincorporated areas within five miles of the boundaries of the municipality or within 21 the perimeter of the established village, except the type or types of licenses listed on 22 the ballot. A license in effect within the boundaries of the municipality or perimeter 23 of the established village, and in unincorporated areas within five miles of the 24 boundaries of the municipality, except the type of license listed on the ballot, is void 25 90 days after the results of the election are certified. A license that expires during the 26 90 days after the results of a local option election are certified may be extended, until 27 it is void under this section, by payment of a prorated portion of the biennial license 28 fee. 29 * Sec. 25. AS 04.11 is amended by adding a new section to read: 30 Sec. 04.11.505. LICENSING AFTER PROHIBITION ON SALE EXCEPT IN 31 PREMISES OPERATED BY MUNICIPALITY. (a) If a majority of the voters vote

01 under AS 04.11.491(a)(3) to prohibit the sale of alcoholic beverages except on 02 premises operated by the municipality, the board may not issue, renew, or transfer 03 between persons or locations a license for premises located within the boundaries of 04 a municipality and in unincorporated areas within five miles of the boundaries of the 05 municipality, with the exception of the type of license listed on the ballot and operated 06 under a license held by the municipality. A license in effect is void 90 days after the 07 results of the election are certified. A license that expires during the 90 days after the 08 results of a local option election are certified may be extended, until it is void under 09 this subsection, by payment of a prorated portion of the biennial license fee. 10 (b) The local governing body of a municipality shall apply for a license to 11 operate the type of licensed premises listed on the ballot under AS 04.11.491(a)(3) and 12 approved by a majority of the voters. The municipality shall operate the premises 13 subject to the conditions and fees applicable to the type of license. Nothing in this 14 section precludes a municipality from applying to be a licensee under other provisions 15 of this title. 16 * Sec. 26. AS 04.11 is amended by adding new sections to read: 17 Sec. 04.11.507. PROCEDURE FOR LOCAL OPTION ELECTIONS. (a) 18 Elections to adopt a local option under AS 04.11.491, change a local option under 19 AS 04.11.493, or remove a local option under AS 04.11.495, shall be conducted as 20 required in this section. 21 (b) Upon receipt of a petition of a number of registered voters equal to 35 22 percent or more of the number of votes cast at the last regular municipal election, the 23 local governing body of a municipality shall place upon a separate ballot at the next 24 regular election, or at a special election, whichever local option, change in local option, 25 or removal of local option constitutes the subject of the petition. The local governing 26 body shall conduct the election under the election ordinance of the municipality. 27 (c) Upon receipt of a petition of 35 percent or more of the registered voters 28 residing within an established village, the lieutenant governor shall place upon a 29 separate ballot at a special election the local option, change in local option, or removal 30 of local option that constitutes the subject of the petition. The lieutenant governor 31 shall conduct the election under AS 15.

01 (d) A petition filed with the local governing body of a municipality under (b) 02 of this section, that places on the ballot the option set out in AS 04.11.491(a)(5), 03 constitutes a proposed ordinance of the municipality. 04 (e) AS 29.26.110 - 29.26.160 apply to a petition under (b) of this section in 05 a general law municipality except the 06 (1) number of required signatures is determined under (b) of this 07 section rather than under AS 29.26.130; 08 (2) application filed under AS 29.26.110 must at least contain language 09 substantially similar to the questions set out under AS 04.11.491 - 04.11.495 rather 10 than containing an ordinance or resolution; 11 (3) petition must at least contain language substantially similar to the 12 questions set out under AS 04.11.491 - 04.11.495 rather than material required under 13 AS 29.26.120(a)(1) and (2). 14 (f) Notwithstanding any other provisions of law, an election under (b) or (c) 15 of this section to remove a local option or to change to a less restrictive option than 16 the local option previously adopted under AS 04.11.491 may not be conducted during 17 the first 12 months after the local option was adopted or more than once in a 12-month 18 period. 19 Sec. 04.11.509. NOTICE OF THE RESULTS OF A LOCAL OPTION 20 ELECTION. (a) If a majority of the voters vote to prohibit, change, or remove a 21 local option under AS 04.11.491 - 04.11.495, the clerk of the municipality, or, if the 22 election is in an established village, the lieutenant governor shall notify the board of 23 the results of the election immediately after the results are certified. The board shall 24 immediately notify the Department of Law and the Department of Public Safety of the 25 results of the election. 26 (b) If a majority of the voters vote to prohibit the importation or possession 27 of alcoholic beverages under AS 04.11.491(a)(4) or (5) or (b)(3) or (4), the following 28 actions in addition to those prescribed in (a) of this section shall be taken before the 29 date the prohibition becomes effective: 30 (1) the board shall notify, by certified mail, all package store licensees 31 who sell alcoholic beverages in response to a written solicitation of the local option;

01 and 02 (2) the municipality or established village shall post public notice of 03 the prohibition in a central location in the municipality or village. 04 * Sec. 27. AS 04.11.540 is amended to read: 05 Sec. 04.11.540. LICENSE RENEWAL AND EXPIRATION. Notwithstanding 06 AS 04.11.680, an application for renewal of a license issued for the two calendar years 07 [YEAR] ending December 31 or of a seasonal license issued for parts of those 08 calendar years [A SIX-MONTH PERIOD ENDING IN THE PREVIOUS YEAR] may 09 be submitted up until the next February 28 [, BUT THE AUTHORITY GRANTED 10 UNDER THE LICENSE MAY NOT BE EXERCISED UNTIL THE LICENSE IS 11 RENEWED]. If a complete [THE] application for renewal has [AND APPLICABLE 12 AFFIDAVITS HAVE] not been filed by February 28 or the required fees and the 13 penalty fees have not been paid by that date, the license expires at 12:00 midnight 14 February 28. A new license may not be issued to the holder of an expired license for 15 the same premises except on proof satisfactory to the board of good cause for the 16 failure to file and pay. 17 * Sec. 28. AS 04.11.680(a) is amended to read: 18 (a) Upon application and payment of one-half [ONE-QUARTER] of the 19 biennial fee, the board may issue a seasonal license under this title that is [WILL BE] 20 effective for the intervals stated on the license. A seasonal license may not be 21 effective for more than 12 months in a two-year period [A CONTINUOUS SIX- 22 MONTH PERIOD]. Otherwise, all licenses issued under this title other than a retail stock sale 23 license are effective for the two calendar years ending December 31, unless a shorter period 24 is prescribed by the board or by law. 25 * Sec. 29. AS 04.16.110 is repealed and reenacted to read: 26 Sec. 04.16.110. SALE OF CERTAIN ALCOHOLIC BEVERAGES 27 PROHIBITED. A person may not sell an alcoholic beverage if it 28 (1) is intended for human consumption and is in powdered form; or 29 (2) contains more than 76 percent alcohol by volume. 30 * Sec. 30. AS 04.16.125(a) is amended to read: 31 (a) A person may not use a common carrier to transport alcoholic beverages

01 into an area that has restricted the sale of alcoholic beverages under 02 AS 04.11.491(a)(1), (2), or (3) or (b)(1) or (2) [AS 04.11.490, 04.11.492, OR 03 04.11.500] unless 04 (1) the shipping container holding the alcoholic beverages is clearly 05 labeled as containing alcoholic beverages with letters that contrast in color to the 06 shipping container and that are at least two inches in height; and 07 (2) an itemized invoice showing the quantity and purchase value of 08 distilled spirits, of wine, and of malt [THE ALCOHOLIC] beverages is attached to 09 the outside of the shipping container. 10 * Sec. 31. AS 04.16.125(b) is amended to read: 11 (b) This section does not apply to 12 (1) a person transporting not more than 13 (A) two liters of wine; 14 (B) one gallon of [OR] malt beverages; [,] or 15 (C) [NOT MORE THAN] one liter of distilled spirits; or 16 (2) the transportation of alcoholic beverages for use on premises 17 allowed under AS 04.11.491(a)(2) - (3) or (b)(2) or for use under a permit allowed 18 under AS 04.11.491(a)(2). 19 * Sec. 32. AS 04.16.200(b) is amended to read: 20 (b) A person who violates AS 04.11.010 in an area that has adopted 21 [WHERE THE RESULTS OF] a local option under AS 04.11.491 [ELECTION 22 HAVE, UNDER AS 04.11.490 - 04.11.500, PROHIBITED THE BOARD FROM 23 ISSUING, RENEWING, OR TRANSFERRING ONE OR MORE TYPES OF 24 LICENSES OR PERMITS UNDER THIS TITLE IN THE AREA] is, upon conviction, 25 guilty of a class C felony. 26 * Sec. 33. AS 04.16.200(e) is amended to read: 27 (e) A person who sends, transports, or brings alcoholic beverages into a 28 municipality or established village in violation of AS 04.11.499 [AS 04.11.496] is, 29 upon conviction, 30 (1) guilty of a class A misdemeanor if the quantity imported is less 31 than 12 liters of distilled spirits, 24 liters of wine, or 12 gallons [45 LITERS] of malt

01 beverages; or 02 (2) guilty of a class C felony if the quantity imported is 12 liters or 03 more of distilled spirits, 24 liters or more of wine, or 12 gallons [45 LITERS] or more 04 of malt beverages. 05 * Sec. 34. AS 04.16.205(a) is amended to read: 06 (a) A person who possesses alcoholic beverages in a municipality or 07 established village in violation of AS 04.11.501 [AS 04.11.498] or an ordinance 08 adopted under AS 04.11.501 [AS 04.11.498] may, upon conviction, be punished by a 09 fine not to exceed $1,000 and shall forfeit the seized alcoholic beverages. When a 10 peace officer stops or contacts a person concerning a violation of AS 04.11.501 11 [AS 04.11.498] or an ordinance adopted [ENACTED] under AS 04.11.501 12 [AS 04.11.498], the peace officer shall seize the alcoholic beverages and may [, IN 13 THE OFFICER'S DISCRETION,] issue a citation to the person as provided in 14 AS 12.25.180. 15 * Sec. 35. AS 04.16.205(b) is amended to read: 16 (b) A person cited for a violation of AS 04.11.501 [AS 04.11.498] or an 17 ordinance adopted under AS 04.11.501 [AS 04.11.498] for which a bail amount has 18 been established under (c) of this section may, within 30 days after the date the 19 citation is issued, 20 (1) mail or personally deliver to the clerk of the court in which the 21 citation is filed by the peace officer the amount of bail indicated on the citation and 22 a copy of the citation indicating that the right to an appearance is waived, a plea of no 23 contest is entered, and the bail and all alcoholic beverages seized are forfeited; or 24 (2) perform community work in lieu of payment of the fine or a portion 25 of the fine as provided in (d) of this section. 26 * Sec. 36. AS 04.16.205(c) is amended to read: 27 (c) The supreme court shall establish by rule or order a schedule of bail 28 amounts that may be forfeited without a court appearance for a violation of 29 AS 04.11.501 [AS 04.11.498] or an ordinance adopted under AS 04.11.501 30 [AS 04.11.498]. In establishing the bail schedule the supreme court may consider the 31 quantity of alcoholic beverages possessed and the number of prior violations of the

01 person cited. Before establishing or amending the schedule of bail amounts required 02 by this subsection, the supreme court shall appoint and consult with an advisory 03 committee consisting of the following seven persons: one superior court judge, one 04 magistrate from each judicial district in the state, a representative of the Department 05 of Law, and a representative of the Public Defender Agency. The maximum bail 06 amount may not exceed $1,000, and the issuing officer shall write on the citation the 07 amount of bail applicable to the violation. 08 * Sec. 37. AS 04.16.205(d) is amended to read: 09 (d) Community work shall be performed at the direction of the local governing 10 body of the municipality or the local governing body of the established village. In the 11 absence of a local governing body for an established village, community work 12 shall be performed at the direction of the body that has traditionally performed 13 public functions on behalf of the entire community. The value of community work 14 in lieu of a fine is $5.00 per hour. When the community work is completed, the 15 person cited for the violation shall mail or personally deliver to the clerk of the court 16 in which the citation is filed by the peace officer 17 (1) a form, prescribed by the administrative director of the Alaska 18 Court System, indicating completion of the community work; and 19 (2) a copy of the citation, indicating that the right to an appearance is 20 waived, a plea of no contest is entered, and that the bail is forfeited or community 21 work has been performed and that all alcoholic beverages seized are forfeited. 22 * Sec. 38. AS 04.16.205(g) is amended to read: 23 (g) Notwithstanding other provisions of law, if a person cited for a violation 24 of AS 04.11.501 [AS 04.11.498] or an ordinance adopted under AS 04.11.501 25 [AS 04.11.498] for which a bail amount has been established under (c) of this section 26 appears in court and is found guilty, the penalty that is imposed for the offense may 27 not exceed the bail amount for that offense established under (c) of this section. 28 * Sec. 39. AS 04.16.205(h) is amended to read: 29 (h) A violation of AS 04.11.501 [AS 04.11.498] or an ordinance adopted under 30 AS 04.11.501 [AS 04.11.498] may not be considered a criminal offense and may not 31 result in imprisonment, nor is a fine imposed for a violation considered criminal

01 punishment. A person cited for a violation does not have a right to a jury trial or 02 court appointed counsel. 03 * Sec. 40. AS 04.16.220(a) is amended to read: 04 (a) The following are subject to forfeiture: 05 (1) alcoholic beverages manufactured, sold, offered for sale or 06 possessed for sale, bartered or exchanged for goods and services in this state in 07 violation of AS 04.11.010; alcoholic beverages possessed, stocked, warehoused, or 08 otherwise stored in violation of AS 04.21.060; alcoholic beverages sold, or offered for 09 sale in violation [IN AN AREA WHERE THE RESULTS] of a local option adopted 10 under AS 04.11.491 [ELECTION HAVE, UNDER AS 04.11.490 - 04.11.500, 11 PROHIBITED THE POSSESSION OF ALCOHOLIC BEVERAGES OR 12 PROHIBITED THE BOARD FROM ISSUING, RENEWING, OR TRANSFERRING 13 ONE OR MORE LICENSES OR PERMITS UNDER THIS TITLE IN THE AREA]; 14 alcoholic beverages transported into the state and sold to persons not licensed under 15 this chapter in violation of AS 04.16.170(b); 16 (2) materials and equipment used in the manufacture, sale, offering for 17 sale, possession for sale, barter or exchange of alcoholic beverages for goods and 18 services in this state in violation of AS 04.11.010; materials and equipment used in the 19 stocking, warehousing, or storage of alcoholic beverages in violation of AS 04.21.060; 20 materials and equipment used in the sale or offering for sale of an alcoholic beverage 21 in an area in violation [WHERE THE RESULTS] of a local option adopted under 22 AS 04.11.491 [ELECTION HAVE, UNDER AS 04.11.490 - 04.11.500, PROHIBITED 23 THE BOARD FROM ISSUING, RENEWING, OR TRANSFERRING ONE OR 24 MORE LICENSES OR PERMITS UNDER THIS TITLE IN THE AREA]; 25 (3) aircraft, vehicles, or vessels used to transport, or facilitate the 26 transportation of 27 (A) alcoholic beverages manufactured, sold, offered for sale or 28 possessed for sale, bartered or exchanged for goods and services in this state 29 in violation of AS 04.11.010; 30 (B) property stocked, warehoused, or otherwise stored in 31 violation of AS 04.21.060;

01 (C) alcoholic beverages imported into a municipality or 02 established village in violation of AS 04.11.499 [AS 04.11.496]; 03 (4) alcoholic beverages found on licensed premises that do not bear 04 federal excise stamps if excise stamps are required under federal law; 05 (5) alcoholic beverages, materials or equipment used in violation of 06 AS 04.16.175. 07 * Sec. 41. AS 04.16.220(b) is amended to read: 08 (b) Property subject to forfeiture under this section may be actually or 09 constructively seized under an order issued by the superior court upon a showing of 10 probable cause that the property is subject to forfeiture under this section. Constructive 11 seizure is effected upon posting a signed notice of seizure on the item to be forfeited, 12 stating the violation and the date and place of seizure. Seizure without a court order 13 may be made if 14 (1) the seizure is incident to a valid arrest or search; 15 (2) the property subject to seizure is the subject of a prior judgment in 16 favor of the state; or 17 (3) there is probable cause to believe that the property is subject to 18 forfeiture under (a) of this section; except for alcoholic beverages possessed on 19 violation of AS 04.11.501 [AS 04.11.498] or an ordinance adopted under AS 04.11.501 20 [AS 04.11.498], property seized under this paragraph may not be held over 48 hours 21 or until an order of forfeiture is issued by the court, whichever is earlier. 22 * Sec. 42. AS 04.16.220(d) is amended to read: 23 (d) Property subject to forfeiture under (a) of this section may be forfeited 24 (1) upon conviction of a person for a violation of [UNDER] 25 AS 04.11.010, 04.11.499, [04.11.496(b), OR] AS 04.21.060, or AS 04.11.501 [UPON 26 ENTRY OF JUDGMENT UNDER AS 04.11.498] or an ordinance adopted under 27 AS 04.11.501 [AS 04.11.498]; or 28 (2) upon judgment by the superior court in a proceeding in rem that the 29 property was used in a manner subjecting it to forfeiture under (a) of this section. 30 * Sec. 43. AS 04.16.220(g) is amended to read: 31 (g) It is no defense in an in rem forfeiture proceeding brought under (d)(2) of

01 this section that a criminal proceeding is pending or has resulted in conviction or 02 acquittal of a person charged with violating AS 04.11.010, 04.11.499 [04.11.496(b)], 03 or AS 04.21.060. 04 * Sec. 44. AS 04.21.010(a) is amended to read: 05 (a) A municipality may adopt ordinances governing the importation, barter, 06 sale, and consumption of alcoholic beverages within the municipality and may ban 07 possession of alcoholic beverages under AS 04.11.491(a)(5) [AS 04.11.498(d) OR (e)]. 08 An ordinance adopted under this section may not be inconsistent with this title or 09 regulations adopted under this title. In a municipality that has adopted a local 10 option under AS 04.11.491(a)(1), (2), or (3), an ordinance is not inconsistent with 11 this title if it limits 12 (1) the monthly amounts of alcoholic beverages a person may 13 import into the municipality; 14 (2) the percent of alcohol by volume that an alcoholic beverage may 15 contain; a limit imposed under this paragraph may not be less than 40 nor more 16 than 76 percent alcohol by volume; or 17 (3) the type of alcoholic beverage container that may be possessed 18 in the municipality. 19 * Sec. 45. AS 04.21.010(b) is amended to read: 20 (b) After the adoption of a local option under AS 04.11.491(a), a [IF, AS A 21 RESULT OF AN ELECTION HELD IN ACCORDANCE WITH AS 04.11.502 IN A 22 MUNICIPALITY, THE BOARD IS PROHIBITED FROM ISSUING, RENEWING, 23 OR TRANSFERRING A LICENSE BETWEEN HOLDERS OR LOCATIONS OR IF 24 THE IMPORTATION OF ALCOHOLIC BEVERAGES IS PROHIBITED IN THE 25 MUNICIPALITY, THE] municipality may adopt an ordinance making the sale, [OR] 26 importation, or possession of alcoholic beverages a misdemeanor to the extent 27 prohibited under the local option. The ordinance may not be inconsistent with this 28 title or the regulations adopted under this title. 29 * Sec. 46. AS 04.21.010(c) is amended to read: 30 (c) A municipality may not impose taxes on alcoholic beverages except a 31 (1) property tax on alcoholic beverage inventories;

01 (2) sales tax on alcoholic beverage sales if sales taxes are imposed on 02 other sales within the municipality; 03 (3) sales tax on alcoholic beverage sales that was in effect before 04 July 1, 1985; and 05 (4) sales and use tax on alcoholic beverages if the sale of alcoholic 06 beverages within the municipality has been prohibited under AS 04.11.491(a)(1), (4), 07 or (5) [AS 04.11.490]. 08 * Sec. 47. AS 04.21.015(b) is amended to read: 09 (b) This section does not apply to AS 04.16.050, 04.16.051, 04.16.080; 10 AS 04.21.010, 04.21.020; alcoholic beverages manufactured in a quantity that exceeds 11 the limit imposed on private manufacture under federal law; or an area that has 12 adopted a local option law under AS 04.11.491 [AS 04.11.490 - 04.11.500]. 13 * Sec. 48. AS 04.21.025(a) is amended to read: 14 (a) As a condition of issuance or renewal of a license and selling alcoholic 15 beverages under a license, the board shall require a licensee who sells or serves 16 alcoholic beverages and a licensee's agents and employees who sell or serve alcoholic 17 beverages or check the identification of a patron to complete an alcohol server 18 education course approved by the board, if the license is for a 19 (1) beverage dispensary; 20 (2) restaurant or eating place; 21 (3) club; 22 (4) package store; 23 (5) [COMMON CARRIER DISPENSARY; 24 (6)] recreational site; 25 (6) [(7)] community; 26 (7) [(8)] pub; 27 (8) [(9)] conditional contractor. 28 * Sec. 49. AS 04.21.025 is amended by adding a new subsection to read: 29 (e) A person licensed as a common carrier dispensary shall train agents and 30 employees who sell or serve alcoholic beverages or who check the identification of a 31 patron on provisions of state law regarding sale of alcoholic beverages, including

01 AS 04.16.015, 04.16.020, 04.16.030, 04.16.051, 04.16.052, 04.16.120, 04.16.125, 02 AS 04.21.030, and 04.21.050. The training must include the subjects of the effects of 03 alcohol consumption, identifying a drunken person, determining valid identification, 04 intervention to prevent unlawful alcohol consumption, and penalties for unlawful acts 05 by agents and employees of licensees. A common carrier licensee shall, once every 06 three years, provide the board with a description of its training program including the 07 subjects taught, teaching method, and testing required. 08 * Sec. 50. AS 04.21.080(b)(1) is amended to read: 09 (1) "alcoholic beverage" means a spirituous, vinous, malt, or other 10 fermented or distilled liquid, whatever the origin, that is intended for human 11 consumption as a beverage and that contains one-half of one percent or more of 12 alcohol by volume, whether produced commercially or privately; however, in an area 13 that has adopted a local option under AS 04.11.491 [LOCAL-OPTION 14 PROHIBITION UNDER AS 04.11.490 - 04.11.500], "alcoholic beverage" means a 15 spirituous, vinous, malt, or other fermented or distilled liquid, whatever the origin, that 16 is intended for human consumption as a beverage by the person who possesses or 17 attempts to possess it and that contains alcohol in any amount if the liquid is 18 produced privately, or that contains one-half of one percent or more of alcohol by 19 volume, if the liquid is produced commercially; 20 * Sec. 51. AS 04.21.080(b)(9) is amended to read: 21 (9) "established village" means an area not containing any part of 22 an incorporated city or another established village, that has a perimeter no more 23 than 10 miles in diameter clearly designated on a map by the local governing 24 body or the board in the absence of a local governing body, and that is 25 (A) an unincorporated community that is in the unorganized 26 borough and that has 25 or more permanent residents; or 27 (B) an unincorporated community that is in an organized 28 borough, has 25 or more permanent residents, and 29 (i) is on a road system and is located more than 50 30 miles outside the boundary limits of a unified municipality, or 31 (ii) is not on a road system and is located more than 15

01 miles outside the boundary limits of a unified municipality; 02 * Sec. 52. AS 15.07.064(g) is amended to read: 03 (g) In this section, "established village" means an unincorporated 04 community that is in 05 (A) the unorganized borough and that has 25 or more 06 permanent residents; or 07 (B) an organized borough, has 25 or more permanent 08 residents, and 09 (i) is on a road system and is located more than 50 10 miles outside the boundary limits of a unified municipality, or 11 (ii) is not on a road system and is located more than 12 15 miles outside the boundary limits of a unified municipality 13 [HAS THE MEANING GIVEN IN AS 04.21.080]. 14 * Sec. 53. AS 18.65.085(a) is amended to read: 15 (a) There is established in the Department of Public Safety, division of state 16 troopers, a narcotic drugs and alcohol enforcement unit for the purpose of investigating 17 and combating the illicit sale and distribution of narcotic drugs and alcoholic beverages 18 in the state. Enforcement of the alcoholic beverage control laws shall focus primarily 19 on the investigation, apprehension, and conviction of persons who violate 20 AS 04.11.010 by selling, importing, or possessing alcoholic beverages in violation of 21 a local option [AN ORDINANCE] adopted by a municipality or established village 22 under AS 04.11.491 [AS 04.11.490 - 04.11.500]. 23 * Sec. 54. AS 18.65.085(c) is amended to read: 24 (c) The Department of Public Safety may establish and administer a reward 25 program, and provide grants to municipalities, established villages, and, at the request 26 of a municipality or established village, to a nonprofit association that administers a 27 village public safety officer program, for reward programs leading to the apprehension 28 and conviction of persons who violate AS 04.11.010 by selling, importing, or 29 possessing alcoholic beverages in violation of a local option [AN ORDINANCE] 30 adopted by a municipality or established village under AS 04.11.491 [AS 04.11.490 31 - 04.11.500].

01 * Sec. 55. AS 29.20.270(e) is amended to read: 02 (e) The veto does not extend to an ordinance adopted under AS 04.11.501 03 [AS 04.11.498]. This subsection applies to home rule and general law municipalities. 04 * Sec. 56. AS 29.25.020(d) is amended to read: 05 (d) This section does not apply to an ordinance proposed under 06 AS 04.11.507(d) [AS 04.11.502(c)]. 07 * Sec. 57. AS 29.25.070(d) is amended to read: 08 (d) This section does not apply to an ordinance adopted under AS 04.11.501(c) 09 [AS 04.11.498(d) OR (e)]. 10 * Sec. 58. AS 29.35.080(a) is amended to read: 11 (a) A municipality may regulate the possession, barter, sale, importation, and 12 consumption of alcoholic beverages under AS 04.11.480 - 04.11.509 [IN 13 ACCORDANCE WITH AS 04.11.480 - 04.11.506] and AS 04.21.010. 14 * Sec. 59. AS 34.03.360(6) is amended to read: 15 (6) "illegal activity involving alcoholic beverages" means a person's 16 delivery of an alcoholic beverage in violation of AS 04.11.010(b) in an area where the 17 results of a local option election have, under AS 04.11.491 [AS 04.11.490 - 18 04.11.500], prohibited the Alcoholic Beverage Control Board from issuing, renewing, 19 or transferring a liquor license or permit under AS 04; 20 * Sec. 60. AS 47.37.045(e) is amended to read: 21 (e) In this section, 22 (1) "established village" means an unincorporated community that 23 is in 24 (A) the unorganized borough and that has 25 or more 25 permanent residents; or 26 (B) an organized borough, has 25 or more permanent 27 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 31 15 miles outside the boundary limits of a unified municipality

01 [HAS THE MEANING GIVEN IN AS 04.21.080(b)]; 02 (2) "local governing body" has the meaning given in AS 04.21.080(b); 03 (3) "nonprofit organization" means an organization that qualifies for 04 exemption from taxation under 26 U.S.C. 501(c)(3) or (4) (Internal Revenue Code). 05 * Sec. 61. AS 04.11.090(c), 04.11.190, 04.11.490, 04.11.492, 04.11.496, 04.11.498, 06 04.11.500, 04.11.502, 04.11.504, 04.11.506, and 04.11.510(d) are repealed. 07 * Sec. 62. TRANSITION: LOCAL OPTIONS EARLIER ADOPTED. Notwithstanding 08 the provisions of this Act, local options adopted by an area under AS 04.11.490, 04.11.492, 09 04.11.496, 04.11.498, or 04.11.500 or previous local option laws before the effective date of 10 this Act shall continue in effect until changed under AS 04.11.493 or removed under 11 AS 04.11.495. References in this Act to local option elections conducted under AS 04.11.491, 12 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 13 are to be interpreted to include local option elections conducted under AS 04.11.490, 14 04.11.492, 04.11.496, 04.11.498, 04.11.500, or 04.11.502 or previous local option laws in 15 effect before the effective date of this Act. 16 * Sec. 63. TRANSITION: COMMUNITY LIQUOR LICENSES. A community liquor 17 license issued under AS 04.11.190 before the effective date of this Act to operate a beverage 18 dispensary shall continue as a beverage dispensary license under AS 04.11.090. A community 19 liquor license issued under AS 04.11.190 before the effective date of this Act to operate a 20 package store shall continue as a package store license under AS 04.11.150. 21 * Sec. 64. TRANSITION. A person licensed under AS 04.11.160 on the effective date of 22 this section shall submit the information required under AS 04.11.160(f), added by sec. 8 of 23 this Act, by September 30, 1995. 24 * Sec. 65. TRANSITION: IMPLEMENTATION OF BIENNIAL SEASONAL LICENSES. 25 (a) Approximately one-half of the applicants for 1996 renewal of a seasonal license issued 26 by the Alcoholic Beverage Control Board, as determined by the director of the Alcoholic 27 Beverage Control Board, shall be eligible for a one-year seasonal license. These licenses 28 expire, unless renewed, on December 31, 1996, and may be renewed biennially in even- 29 numbered years after that. The 1996 renewal fee for these licenses is one-half of the seasonal 30 biennial license fee. 31 (b) Applicants whose licenses are not renewed under (a) of this section shall be

01 eligible for a two-year seasonal license. These licenses expire, unless renewed, on 02 December 31, 1997, and may be renewed biennially in odd-numbered years. 03 (c) The director shall notify each licensee in writing as to whether the licensee shall 04 apply for renewal under (a) or (b) of this section, and of the actual amount of the renewal fee. 05 The notice must be given not later than December 1, 1995. However, the failure of the 06 director to provide the notice required in this subsection does not prevent a license from 07 expiring on February 28, 1996, under AS 04.11.540, if the renewal application is not filed on 08 or before that date. 09 * Sec. 66. TRANSITION: REGULATIONS. Notwithstanding sec. 69 of this Act, the 10 Alcoholic Beverage Control Board may proceed to adopt regulations necessary to implement 11 this Act. The regulations take effect under AS 44.62 (Administrative Procedure Act), but not 12 before July 1, 1995. 13 * Sec. 67. PROHIBITION ON PURCHASE OR CERTAIN ALCOHOLIC BEVERAGES. 14 Beginning July 1, 1995, and ending June 30, 1996, a person licensed as a wholesaler under 15 AS 04.11.160 may not purchase an alcoholic beverage that contains more than 76 percent 16 alcohol by volume. 17 * Sec. 68. AS 04.16.110(2), enacted in sec. 29 of this Act, takes effect July 1, 1996. 18 * Sec. 69. Except as provided in secs. 66 and 68 of this Act, this Act takes effect July 1, 19 1995.