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CSSB 87(JUD): "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."

00CS FOR SENATE BILL NO. 87(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 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) Except as provided in this subsection, a [A] person may not solicit or 08 receive orders for the delivery of an alcoholic beverage in an area that has adopted 09 a local option under AS 04.11.491. If the area has adopted a local option under 10 AS 04.11.491(a)(1), (2), or (3), or (b)(1) or (2), a package store licensee outside of 11 that local option area may receive orders as provided under AS 04.11.150 but may 12 not solicit in that area or receive orders through an agent or employee in that 13 area. This subsection does not apply to a package store licensee who operates a 14 package store in an area that has adopted a local option under

01 AS 04.11.491(a)(2)(C) or (3)(C) or (b)(2)(C) [WHERE THE RESULTS OF A 02 LOCAL OPTION ELECTION HAVE, UNDER AS 04.11.490 - 04.11.500, 03 PROHIBITED THE BOARD FROM ISSUING, RENEWING, OR TRANSFERRING 04 ONE OR MORE TYPES OF LICENSES OR PERMITS UNDER THIS TITLE, 05 UNLESS THE PERSON IS LICENSED UNDER THIS TITLE AND THE ORDER 06 IS ACTUALLY RECEIVED BY THAT PERSON FROM THE PURCHASER OF 07 THE ALCOHOLIC BEVERAGE]. A person who violates this subsection is 08 punishable upon conviction as provided under 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 04.11.080 is amended to read: 17  Sec. 04.11.080. TYPES OF LICENSES AND PERMITS. Licenses and 18 permits issued under this title are as follows: 19  (1) beverage dispensary license; 20  (2) duplicate beverage dispensary license for additional rooms; 21  (3) restaurant or eating place license; 22  (4) club license; 23  (5) bottling works license; 24  (6) brewery license; 25  (7) package store license; 26  (8) general wholesale license; 27  (9) wholesale malt beverage and wine license; 28  (10) distillery license; 29  (11) common carrier dispensary license; 30  (12) retail stock sale license; 31  (13) recreational site license;

01  (14) [COMMUNITY LIQUOR LICENSE; 02  (15)] pub license; 03  (15) [(16)] winery license; 04  (16) [(17)] caterer's permit; 05  (17) [(18)] special events permit; 06  (18) [(19)] conditional contractor's permit; 07  (19) [(20)] brewpub license. 08 * Sec. 4. AS 04.11.100 is amended by adding a new subsection to read: 09  (f) Notwithstanding the provisions of (b) and (e) of this section, upon written 10 application and approval of the local governing body, the board may issue or reissue 11 a restaurant or eating place license and exempt the licensee from the requirements of 12 (b) and (e) of this section. A licensee exempt as provided in this subsection shall 13 provide food items for sale on the premises as shown on a menu approved by the 14 board and available to patrons. The board may not 15  (1) issue or reissue a license as provided under this subsection if 16  (A) the issuance or reissuance would result in more than one 17 exempt restaurant or eating place license for every 10 restaurant or eating place 18 licenses allowed under the provisions of AS 04.11.400(a)(2) or (3); 19  (B) the premises would be located in a building having a public 20 entrance within 200 feet of the boundary line of a school or a church 21 building in which religious services are being regularly conducted; for purposes 22 of this subparagraph, the 200-foot prohibition is measured from the outer 23 boundary line of the school or the public entrance of the church building by the 24 shortest pedestrian route to the nearest public entrance of the restaurant or 25 eating place; 26  (2) reissue a restaurant or eating place license as exempt as provided 27 under the provisions of this subsection if the license was issued under the provisions 28 of AS 04.11.400(g); or 29  (3) transfer an exempt license issued under this subsection to another 30 person. 31 * Sec. 5. AS 04.11.135(a) is amended to read:

01  (a) A brewpub license authorizes the holder of a beverage dispensary license 02 to 03  (1) manufacture on premises licensed under the beverage dispensary 04 license not more than 75,000 [16,000] gallons of beer in a calendar year; and 05  (2) sell beer manufactured on premises licensed under the beverage 06 dispensary license for consumption only on the licensed premises. 07 * Sec. 6. AS 04.11.135(b) is amended to read: 08  (b) Except as provided under AS 04.11.360(10) [AS 04.11.360(12)], the 09 brewpub license is not transferable, shall remain the property of the state, and is not 10 subject to any form of alienation. 11 * Sec. 7. AS 04.11.150(a) is repealed and reenacted to read: 12  (a) Except as provided under (g) of this section, a package store license 13 authorizes the licensee to sell alcoholic beverages to a person present on the licensed 14 premises or to a person known to the licensee who makes a written solicitation to that 15 licensee for shipment. A licensee, agent, or employee may only ship alcoholic 16 beverages to the purchaser. Before commencing the practice of shipping alcoholic 17 beverages, and with each subsequent application to renew the license, a licensee shall 18 notify the board in writing of the licensee's intention to ship alcoholic beverages in 19 response to a written solicitation. The package store licensee, agent, or employee shall 20 include written information on fetal alcohol syndrome and fetal alcohol effects 21 resulting from a woman consuming alcohol during pregnancy in a shipment of 22 alcoholic beverages sold in response to a written solicitation. 23 * Sec. 8. AS 04.11.150(g) is repealed and reenacted to read: 24  (g) If a shipment is to an area that has restricted the sale of alcoholic 25 beverages under AS 04.11.491(a)(1), (2), or (3) or (b)(1) or (2), a package store 26 licensee, agent, or employee may not ship to a purchaser more than 12 liters of 27 distilled spirits, 24 liters or more of wine, or 12 gallons or more of malt beverages in 28 a calendar month. 29 * Sec. 9. AS 04.11.160 is amended by adding new subsections to read: 30  (f) A person who applies for issuance or renewal of a license under this 31 section shall file, on forms provided by the board, the following information regarding

01 each product line of alcoholic beverages that the person intends to purchase, offer for 02 sale, or sell: (1) the supplier of the product line; (2) the full and correct brand names 03 in the product line; (3) the name of the distiller, brewer, vintner, or importer of the 04 product line; and (4) a certification by the distiller, brewer, vintner, or importer of the 05 product line that the person is the primary source of supply for the product line. In 06 addition to the fees imposed under (a) and (b) of this section, a person filing under this 07 subsection shall pay a biennial filing fee as follows: 08 1 to 25 suppliers $ 500 09 26 to 50 suppliers $1,000 10 51 to 75 suppliers $1,500 11 over 75 suppliers $2,000 12 In this subsection, "distiller, brewer, vintner, or importer" includes an exclusive agent 13 of the distiller, brewer, vintner, or importer if the agent's name appears on the label of 14 the brand approved by the Federal Bureau of Alcohol, Tobacco, and Firearms. 15  (g) A person licensed under this section shall notify the board within 10 days 16 of a change in a primary source of supply designation required under (f) of this 17 section. 18 * Sec. 10. AS 04.16 is amended by adding a new section to read: 19  Sec. 04.16.172. RESTRICTIONS ON PURCHASE AND SALE OF 20 ALCOHOLIC BEVERAGES. A person licensed under AS 04.11.090, 04.11.100, 21 04.11.110, or 04.11.150 may not purchase, sell, or offer for sale an alcoholic beverage 22 unless the alcoholic beverage being purchased, sold, or offered for sale was obtained 23 from a person licensed under 24  (1) AS 04.11.160 as a primary source of supply for the alcoholic 25 beverage being purchased, sold, or offered for sale; or 26  (2) AS 04.11.130, 04.11.140, or 04.11.170. 27 * Sec. 11. AS 04.11.270(b) is amended to read: 28  (b) A license shall be renewed as follows: 29  (1) on or before November 1 [OF EACH YEAR], the director shall 30 mail a renewal application to each licensee whose license, unless renewed, will expire 31 on December 31 of that year; the application shall be mailed to the licensee at the

01 licensed premises or at a mailing address furnished by the licensee; 02  (2) the licensee shall submit the completed renewal application and the 03 biennial license fee to the director before January 1 [ON OR BEFORE 04 DECEMBER 31]; 05  (3) a renewal application filed after December 31 is delinquent and 06 must be accompanied by a $500 [$200] penalty fee; 07  (4) if December 31 falls on a weekend or a state holiday, the deadline 08 is extended to the first business day following December 31. 09 * Sec. 12. AS 04.11.320 is amended to read: 10  Sec. 04.11.320. DENIAL OF NEW LICENSES AND PERMITS. (a) An 11 application requesting issuance of a new license shall be denied if 12  (1) the board finds, after review of all relevant information, that 13 issuance of the license would not be in the best interests of the public; 14  (2) issuance of the license is prohibited by AS 04.11.390, relating to 15 residency, or AS 04.11.410, relating to location of premises near churches and schools; 16  (3) the application has not been completed in accordance with 17 AS 04.11.260; 18  (4) issuance of the license would violate the restrictions pertaining to 19 the particular license imposed under this title; 20  (5) issuance of the license is prohibited under this title as a result of 21 an election conducted under AS 04.11.507 [IN ACCORDANCE WITH 22 AS 04.11.502]; 23  (6) the requirements of AS 04.11.420 - 04.11.450 relating to zoning, 24 ownership and location of the license, and the identity and financing of a licensee have 25 not been met; 26  (7) [THE LICENSED PREMISES ARE TO BE LOCATED IN A 27 MUNICIPALITY, THE TYPE OF LICENSE SOUGHT IS A BEVERAGE 28 DISPENSARY OR PACKAGE STORE LICENSE, AND THAT TYPE OF LICENSE 29 IS ALREADY IN EFFECT IN THE MUNICIPALITY UNDER A COMMUNITY 30 LIQUOR LICENSE, UNLESS THE NEW LICENSE IS TO BECOME EFFECTIVE 31 AFTER THE COMMUNITY LIQUOR LICENSE IS NO LONGER EFFECTIVE,

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

01 ACCORDANCE WITH AS 04.11.502 HAVE VOTED "NO" ON THE QUESTION 02 SET OUT IN AS 04.11.490 OR HAVE VOTED "YES" ON THE QUESTION SET 03 OUT IN AS 04.11.500]. 04  (b) An application requesting issuance of a new permit shall be denied if 05  (1) the board finds, after review of all relevant information, that 06 issuance of the permit would not be in the best interests of the public; 07  (2) the board finds that any of the statements made in the application 08 are untrue; 09  (3) the application has not been completed in accordance with 10 AS 04.11.260; or 11  (4) the permit is sought for the sale of alcoholic beverages in a first or 12 second class city or established village where [IN WHICH] there are no licensed 13 premises at the time of application unless a majority of the voters have voted not to 14 approve [IN] a local option to restrict or prohibit the sale of alcoholic beverages 15 under AS 04.11.491, have voted to approve a local option to allow the type of 16 permit under AS 04.11.491(a)(2) or (b)(2), or have voted to remove a restriction 17 or prohibition on the sale of alcoholic beverages under AS 04.11.495 [ELECTION 18 CONDUCTED IN ACCORDANCE WITH AS 04.11.502 HAVE VOTED "NO" ON 19 THE QUESTION SET OUT IN AS 04.11.490]. 20 * Sec. 13. AS 04.11.330(a) is amended to read: 21  (a) An application requesting renewal of a license shall be denied if 22  (1) the board finds, after review of all relevant information, that 23 renewal of the license would not be in the best interests of the public; 24  (2) the license has been revoked for any cause; 25  (3) the applicant has not operated the licensed premises for at least 30 26 eight-hour days during each of the two preceding calendar years, unless the board 27 determines that the licensed premises are under construction or cannot be operated 28 through no fault of the applicant; 29  (4) the board finds that issuance of an existing license under 30 AS 04.11.400(d) has not encouraged tourist trade; 31  (5) the requirements of AS 04.11.420 - 04.11.450 relating to zoning,

01 ownership of the license, and financing of the licensee have not been met; 02  (6) renewal of the license would violate the restrictions pertaining to 03 the particular license under this title or the license has been operated in violation of 04 a condition or restriction imposed by the board; 05  (7) renewal of the license is prohibited under this title as a result of an 06 election conducted under AS 04.11.507 [IN ACCORDANCE WITH AS 04.11.502]; 07  (8) the application has not been completed in accordance with 08 AS 04.11.270; or 09  (9) the license was issued under AS 04.11.400(g), and the board finds 10 that the public convenience does not require renewal. 11 * Sec. 14. AS 04.11.340 is amended to read: 12  Sec. 04.11.340. DENIAL OF REQUEST FOR RELOCATION. An application 13 requesting approval for the relocation of licensed premises shall be denied if 14  (1) the board finds, after review of all relevant information, that 15 relocation of the license would not be in the best interests of the public; 16  (2) the relocation is prohibited under AS 04.11.400(a) or (b); 17  (3) the license would be relocated out of the established village, 18 incorporated city, unified municipality, or population area established under 19 AS 04.11.400(a) within which it is located; 20  (4) transfer of ownership is to be made concurrently with the relocation 21 of the licensed premises and a ground for denial of the transfer of ownership under 22 AS 04.11.360 is presented; 23  (5) the application has not been completed in accordance with 24 AS 04.11.290; 25  (6) relocation of the license would result in violation of a local zoning 26 law; 27  (7) relocation of the license would violate the restrictions pertaining to 28 the particular license imposed by this title; 29  (8) relocation of the license is prohibited under this title as a result of 30 an election conducted under AS 04.11.507 [IN ACCORDANCE WITH 31 AS 04.11.502]; or

01  (9) [THE LICENSED PREMISES ARE TO BE LOCATED IN A 02 MUNICIPALITY, THE TYPE OF LICENSE SOUGHT TO BE RELOCATED IS A 03 BEVERAGE DISPENSARY OR PACKAGE STORE LICENSE, AND THAT TYPE 04 OF LICENSE IS ALREADY IN EFFECT IN THE MUNICIPALITY UNDER A 05 COMMUNITY LIQUOR LICENSE, UNLESS THE RELOCATION IS TO BECOME 06 EFFECTIVE AFTER THE COMMUNITY LIQUOR LICENSE IS NO LONGER 07 EFFECTIVE, WHETHER AS THE RESULT OF A LOCAL OPTION ELECTION OR 08 OTHERWISE; 09  (10)] the license was issued under AS 04.11.400(d), (e), or (g). 10 * Sec. 15. AS 04.11.360 is amended to read: 11  Sec. 04.11.360. DENIAL OF TRANSFER OF A LICENSE TO ANOTHER 12 PERSON. An application requesting approval of a transfer of a license to another 13 person under this title shall be denied if 14  (1) the board finds, after review of all relevant information, that transfer 15 of a license to another person would not be in the best interests of the public; 16  (2) the application has not been completed in accordance with 17 AS 04.11.280; 18  (3) the application contains false statements of material fact; 19  (4) the transferor has not paid all debts or taxes arising from the 20 conduct of the business licensed under this title unless 21  (A) the transferor gives security for the payment of the debts 22 or taxes satisfactory to the creditor or taxing authority; or 23  (B) the transfer is pursuant to a promise given as collateral by 24 the transferor to the transferee in the course of an earlier transfer of the license 25 under which promise the transferor is obliged to transfer the license back to the 26 transferee in the event of default in payment for property conveyed as part of 27 the earlier transfer of the license; 28  (5) transfer of the license to another person would result in violation 29 of the provisions of this title relating to identity of licensees and financing of licensees; 30  (6) transfer of the license to another person would violate the 31 restrictions pertaining to the particular license under this title;

01  (7) transfer of the license to another person is prohibited under the 02 provisions of this title as a result of an election conducted under AS 04.11.507 [IN 03 ACCORDANCE WITH AS 04.11.502]; 04  (8) the prospective transferee does not have the qualifications required 05 under this title of an original applicant; 06  (9) [THE LICENSED PREMISES ARE LOCATED IN A 07 MUNICIPALITY, THE TYPE OF LICENSE SOUGHT TO BE TRANSFERRED IS 08 A 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 TRANSFER 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 AUTHORITY SOUGHT IS AUTHORITY TO OPERATE 15 A BEVERAGE DISPENSARY OR PACKAGE STORE UNDER A COMMUNITY 16 LIQUOR LICENSE FOR PREMISES TO BE LOCATED IN A MUNICIPALITY 17 WHERE THE AUTHORITY SOUGHT IS ALREADY HELD BY A PRIVATE 18 LICENSEE UNDER A BEVERAGE DISPENSARY OR PACKAGE STORE 19 LICENSE, UNLESS THE TRANSFER IS TO BECOME EFFECTIVE AFTER THE 20 PRIVATELY HELD LICENSE IS NO LONGER EFFECTIVE, WHETHER AS THE 21 RESULT OF A LOCAL OPTION ELECTION OR OTHERWISE; 22  (11)] the license was issued under AS 04.11.100(f) or 04.11.400(g); or 23  (10) [AS 04.11.400(g); 24  (12)] the license was issued under AS 04.11.135, unless the transferor 25 is also applying to transfer the beverage dispensary license required under 26 AS 04.11.135 to the same transferee. 27 * Sec. 16. AS 04.11.370 is amended to read: 28  Sec. 04.11.370. SUSPENSION AND REVOCATION OF LICENSES AND 29 PERMITS. A license or permit shall be suspended or revoked if the board finds 30 [THAT ONE OR MORE OF THE FOLLOWING GROUNDS EXISTS:] 31  (1) misrepresentation of a material fact on an application made under

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

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

01 or fraction of that [3,000] population [INSIDE THE ESTABLISHED 02 VILLAGE, INCORPORATED CITY, OR UNIFIED MUNICIPALITY]; 03  (3) inside an organized borough but outside an established village or 04 incorporated city located within the borough, if after the issuance or relocation there 05 would be inside the borough, but outside the established villages and incorporated 06 cities located within the borough, 07  (A) more than one restaurant or eating place license for each 08 1,500 population or fraction of that [1,500] population; or 09  (B) more than one license of each other type, including licenses 10 that have been issued under (d) or (e) of this section, for each 3,000 population 11 or fraction of that [3,000] population [INSIDE THE BOROUGH,] excluding 12 the population of those established villages that have adopted a local option 13 under AS 04.11.491(b)(1), (3), or (4) [CONDUCTED AN ELECTION ON A 14 QUESTION SET OUT IN AS 04.11.490, 04.11.496, OR 04.11.500], and 15 excluding the population of incorporated cities located within the organized 16 borough. 17 * Sec. 19. AS 04.11.480(a) is amended to read: 18  (a) A [IF A] local governing body may [WISHES TO] protest the issuance, 19 renewal, relocation, [TRANSFER OF LOCATION,] or transfer to another person of 20 a license by sending [, IT SHALL FURNISH] the board and the applicant [WITH] a 21 protest and the reasons for the protest within 30 days of receipt from the board of 22 notice of filing of the application. The local governing body may protest the 23 continued operation of a license during the second year of the biennial license 24 period by sending the board and the licensee a protest and the reasons for the 25 protest by January 31 of the second year of the license. The procedures for 26 action on a protest of continued operation of a license are the same as the 27 procedures for action on a protest of a renewal application. The board shall 28 consider a protest and testimony received at a hearing conducted under 29 AS 04.11.510(b)(2) or (4) when it considers the application or continued operation, 30 and the protest and the record of the hearing conducted under AS 04.11.510(b)(2) or 31 (4) shall be kept [RETAINED] as part of the board's permanent record of its review

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

01  (C) a package store licensee; or 02  (D) a caterer holding a permit under AS 04.11.230 to sell 03 alcoholic beverages at a site within the established village who is also licensed 04 under a beverage dispensary license for premises outside of the established 05 village; 06  (3) the sale and importation of alcoholic beverages; or 07  (4) the sale, importation, and possession of alcoholic beverages. 08  (c) A ballot question to adopt a local option under this section must at least 09 contain language substantially similar to: "Shall (name of municipality or village) 10 adopt a local option to prohibit (local option under (a) or (b) of this section)? (yes or 11 no)." 12  (d) The ballot for an election on the option set out in (a)(2)(A), (a)(3)(A), or 13 (b)(2)(A) of this section must include a summary explanation of the authority to sell 14 alcoholic beverages given to a restaurant or eating place under AS 04.11.100(a). The 15 ballot for an election on the option set out in (a)(2)(B) or (D), (a)(3)(B), or (b)(2)(B) 16 or (D) of this section must include a statement that a beverage dispensary license is 17 commonly known as a "bar" and a summary explanation of the authority to sell 18 alcoholic beverages given to a beverage dispensary licensee under AS 04.11.090(a). 19 The ballot for an election on the option set out in (a)(2)(C), (a)(3)(C), or (b)(2)(C) of 20 this section must include a statement that a package store license is commonly known 21 as a "liquor store" and a summary explanation of the authority to sell alcoholic 22 beverages given to a package store licensee under AS 04.11.150(a). 23  (e) If a municipality dissolves under AS 29.06.450(a) or (b), a local option 24 adopted by the municipality under (a) of this section shall continue in effect as the 25 corresponding local option under (b) of this section for an established village having 26 the same perimeter as the previous boundaries of the municipality. A license for 27 premises operated by the municipality under AS 04.11.505 expires when the 28 municipality dissolves. 29  (f) A municipality or established village that has adopted a local option under 30 (a)(1), (2), or (3) or (b)(1) or (2) of this section may designate a site for the delivery 31 of alcoholic beverages to individuals in the area or a site for a person to bring

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

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

01  (b) If there are licensed premises within the municipality or established village, 02 the prohibition on possession is effective beginning 90 days after the results of the 03 election are certified. If there are no licensed premises within the municipality or 04 established village, the prohibition on possession is effective beginning 60 days after 05 the results of the election are certified. 06  (c) Upon the adoption by a municipality of a local option under 07 AS 04.11.491(a)(5), an ordinance is adopted containing the provisions of this section. 08  (d) In this section, "possession" means having physical possession of or 09 exercising dominion or control over an alcoholic beverage, but does not include having 10 an alcoholic beverage within the digestive system of a person. 11 * Sec. 25. AS 04.11 is amended by adding a new section to read: 12  Sec. 04.11.503. EFFECT ON LICENSES OF RESTRICTION ON SALE. If 13 a majority of the voters vote under AS 04.11.491(a)(2) or (b)(2) to prohibit sale of 14 alcoholic beverages except by the type or types of licensees or permit holders listed 15 on the ballot, the board may not issue, renew, or transfer between persons or locations 16 a license for premises located within the boundaries of the municipality and in 17 unincorporated areas within five miles of the boundaries of the municipality or within 18 the perimeter of the established village, except the type or types of licenses listed on 19 the ballot. A license in effect within the boundaries of the municipality or perimeter 20 of the established village, and in unincorporated areas within five miles of the 21 boundaries of the municipality, except the type of license listed on the ballot, is void 22 90 days after the results of the election are certified. A license that expires during the 23 90 days after the results of a local option election are certified may be extended, until 24 it is void under this section, by payment of a prorated portion of the biennial license 25 fee. 26 * Sec. 26. AS 04.11 is amended by adding a new section to read: 27  Sec. 04.11.505. LICENSING AFTER PROHIBITION ON SALE EXCEPT IN 28 PREMISES OPERATED BY MUNICIPALITY. (a) If a majority of the voters vote 29 under AS 04.11.491(a)(3) to prohibit the sale of alcoholic beverages except on 30 premises operated by the municipality, the board may not issue, renew, or transfer 31 between persons or locations a license for premises located within the boundaries of

01 a municipality and in unincorporated areas within five miles of the boundaries of the 02 municipality, with the exception of the type of license listed on the ballot and operated 03 under a license held by the municipality. A license in effect is void 90 days after the 04 results of the election are certified. A license that expires during the 90 days after the 05 results of a local option election are certified may be extended, until it is void under 06 this subsection, by payment of a prorated portion of the biennial license fee. 07  (b) The local governing body of a municipality shall apply for a license to 08 operate the type of licensed premises listed on the ballot under AS 04.11.491(a)(3) and 09 approved by a majority of the voters. The municipality shall operate the premises 10 subject to the conditions and fees applicable to the type of license. Nothing in this 11 section precludes a municipality from applying to be a licensee under other provisions 12 of this title. 13 * Sec. 27. AS 04.11 is amended by adding new sections to read: 14  Sec. 04.11.507. PROCEDURE FOR LOCAL OPTION ELECTIONS. (a) 15 Elections to adopt a local option under AS 04.11.491, change a local option under 16 AS 04.11.493, or remove a local option under AS 04.11.495, shall be conducted as 17 required in this section. 18  (b) Upon receipt of a petition of a number of registered voters equal to 35 19 percent or more of the number of votes cast at the last regular municipal election, the 20 local governing body of a municipality shall place upon a separate ballot at the next 21 regular election, or at a special election, whichever local option, change in local option, 22 or removal of local option constitutes the subject of the petition. The local governing 23 body shall conduct the election under the election ordinance of the municipality. 24  (c) Upon receipt of a petition of 35 percent or more of the registered voters 25 residing within an established village, the lieutenant governor shall place upon a 26 separate ballot at a special election the local option, change in local option, or removal 27 of local option that constitutes the subject of the petition. The lieutenant governor 28 shall conduct the election under AS 15. 29  (d) A petition filed with the local governing body of a municipality under (b) 30 of this section, that places on the ballot the option set out in AS 04.11.491(a)(5), 31 constitutes a proposed ordinance of the municipality.

01  (e) AS 29.26.110 - 29.26.160 apply to a petition under (b) of this section in 02 a general law municipality except the 03  (1) number of required signatures is determined under (b) of this 04 section rather than under AS 29.26.130; 05  (2) application filed under AS 29.26.110 must at least contain language 06 substantially similar to the questions set out under AS 04.11.491 - 04.11.495 rather 07 than containing an ordinance or resolution; 08  (3) petition must at least contain language substantially similar to the 09 questions set out under AS 04.11.491 - 04.11.495 rather than material required under 10 AS 29.26.120(a)(1) and (2). 11  (f) Notwithstanding any other provisions of law, an election under (b) or (c) 12 of this section to remove a local option or to change to a less restrictive option than 13 the local option previously adopted under AS 04.11.491 may not be conducted during 14 the first 12 months after the local option was adopted or more than once in an 15 18-month period. 16  (g) Notwithstanding AS 29.26.140(a), after a petition has been certified as 17 sufficient to meet the requirements of (b) or (c) of this section, another petition may 18 not be filed or certified until after the question presented in the first petition has been 19 voted on. Only one local option question may be presented in an election. 20  Sec. 04.11.509. NOTICE OF THE RESULTS OF A LOCAL OPTION 21 ELECTION. (a) If a majority of the voters vote to prohibit, change, or remove a 22 local option under AS 04.11.491 - 04.11.495, the clerk of the municipality, or, if the 23 election is in an established village, the lieutenant governor shall notify the board of 24 the results of the election immediately after the results are certified. The board shall 25 immediately notify the Department of Law and the Department of Public Safety of the 26 results of the election. 27  (b) If a majority of the voters vote to prohibit the importation or possession 28 of alcoholic beverages under AS 04.11.491(a)(4) or (5) or (b)(3) or (4), the following 29 actions in addition to those prescribed in (a) of this section shall be taken before the 30 date the prohibition becomes effective: 31  (1) the board shall notify, by certified mail, all package store licensees

01 who sell alcoholic beverages in response to a written solicitation of the local option; 02 and 03  (2) the municipality or established village shall post public notice of 04 the prohibition in a central location in the municipality or village. 05 * Sec. 28. AS 04.11.540 is amended to read: 06  Sec. 04.11.540. LICENSE RENEWAL AND EXPIRATION. Notwithstanding 07 AS 04.11.680, an application for renewal of a license issued for the two calendar years 08 [YEAR] ending December 31 or of a seasonal license issued for parts of those 09 calendar years [A SIX-MONTH PERIOD ENDING IN THE PREVIOUS YEAR] may 10 be submitted up until the next February 28 [, BUT THE AUTHORITY GRANTED 11 UNDER THE LICENSE MAY NOT BE EXERCISED UNTIL THE LICENSE IS 12 RENEWED]. If a complete [THE] application for renewal has [AND APPLICABLE 13 AFFIDAVITS HAVE] not been filed by February 28 or the required fees and the 14 penalty fees have not been paid by that date, the license expires at 12:00 midnight 15 February 28. A new license may not be issued to the holder of an expired license for 16 the same premises except on proof satisfactory to the board of good cause for the 17 failure to file and pay. 18 * Sec. 29. AS 04.11.680(a) is amended to read: 19  (a) Upon application and payment of one-half [ONE-QUARTER] of the 20 biennial fee, the board may issue a seasonal license under this title that is [WILL BE] 21 effective for the intervals stated on the license. A seasonal license may not be 22 effective for more than 12 months in a two-year period [A CONTINUOUS SIX-MONTH PERIOD]. Otherwise, 23 all licenses issued under this title other than a retail 24 stock sale license are effective for the two calendar years ending December 31, unless 25 a shorter period is prescribed by the board or by law. 26 * Sec. 30. AS 04.16.090(a) is amended to read: 27  (a) A person may not maintain a place in which alcohol beverages are received 28 or kept, or to which alcoholic beverages are brought, for consumption by members of 29 the public or by members of a club, corporation, or association [,] unless 30  (1) the 31  (A) person is in an area that has prohibited the sale of an

01 alcoholic beverage under AS 04.11.491(a); 02  (B) club, corporation, or association is a nonprofit 03 organization incorporated under AS 10.20; 04  (C) consumption by members of the club, corporation, or 05 association is approved by the local governing body under AS 04.21.010; 06 and 07  (D) person complies with the applicable provisions of this 08 title or regulations adopted under this title; or 09  (2) authorized to do so under this title. 10 * Sec. 31. AS 04.16.110 is repealed and reenacted to read: 11  Sec. 04.16.110. SALE OF CERTAIN ALCOHOLIC BEVERAGES 12 PROHIBITED. A person may not sell an alcoholic beverage if it 13  (1) is intended for human consumption and is in powdered form; or 14  (2) contains more than 76 percent alcohol by volume. 15 * Sec. 32. AS 04.16.125(a) is amended to read: 16  (a) A person may not use a common carrier to transport alcoholic beverages 17 into an area that has restricted the sale of alcoholic beverages under 18 AS 04.11.491(a)(1), (2), or (3) or (b)(1) or (2) [AS 04.11.490, 04.11.492, OR 19 04.11.500] unless 20  (1) the shipping container holding the alcoholic beverages is clearly 21 labeled as containing alcoholic beverages with letters that contrast in color to the 22 shipping container and that are at least two inches in height; and 23  (2) an itemized invoice showing the quantity and purchase value of 24 distilled spirits, of wine, and of malt [THE ALCOHOLIC] beverages is attached to 25 the outside of the shipping container. 26 * Sec. 33. AS 04.16.125(b) is amended to read: 27  (b) This section does not apply to 28  (1) a person transporting not more than 29  (A) two liters of wine; 30  (B) one gallon of [OR] malt beverages; [,] or 31  (C) [NOT MORE THAN] one liter of distilled spirits; or

01  (2) the transportation of alcoholic beverages for use on premises 02 allowed under AS 04.11.491(a)(2) - (3) or (b)(2) or for use under a permit allowed 03 under AS 04.11.491(a)(2). 04 * Sec. 34. AS 04.16.200(b) is amended to read: 05  (b) A person who violates AS 04.11.010 in an area that has adopted 06 [WHERE THE RESULTS OF] a local option under AS 04.11.491 [ELECTION 07 HAVE, UNDER AS 04.11.490 - 04.11.500, PROHIBITED THE BOARD FROM 08 ISSUING, RENEWING, OR TRANSFERRING ONE OR MORE TYPES OF 09 LICENSES OR PERMITS UNDER THIS TITLE IN THE AREA] is, upon conviction, 10 guilty of a class C felony. 11 * Sec. 35. AS 04.16.200(e) is amended to read: 12  (e) A person who sends, transports, or brings alcoholic beverages into a 13 municipality or established village in violation of AS 04.11.499 [AS 04.11.496] is, 14 upon conviction, 15  (1) guilty of a class A misdemeanor if the quantity imported is less 16 than 12 liters of distilled spirits, 24 liters of wine, or 12 gallons [45 LITERS] of malt 17 beverages; or 18  (2) guilty of a class C felony if the quantity imported is 12 liters or 19 more of distilled spirits, 24 liters or more of wine, or 12 gallons [45 LITERS] or more 20 of malt beverages. 21 * Sec. 36. AS 04.16.205(a) is amended to read: 22  (a) A person who possesses alcoholic beverages in a municipality or 23 established village in violation of AS 04.11.501 [AS 04.11.498] or an ordinance 24 adopted under AS 04.11.501 [AS 04.11.498] may, upon conviction, be punished by a 25 fine not to exceed $1,000 and shall forfeit the seized alcoholic beverages. When a 26 peace officer stops or contacts a person concerning a violation of AS 04.11.501 27 [AS 04.11.498] or an ordinance adopted [ENACTED] under AS 04.11.501 28 [AS 04.11.498], the peace officer shall seize the alcoholic beverages and may [, IN 29 THE OFFICER'S DISCRETION,] issue a citation to the person as provided in 30 AS 12.25.180. 31 * Sec. 37. AS 04.16.205(b) is amended to read:

01  (b) A person cited for a violation of AS 04.11.501 [AS 04.11.498] or an 02 ordinance adopted under AS 04.11.501 [AS 04.11.498] for which a bail amount has 03 been established under (c) of this section may, within 30 days after the date the 04 citation is issued, 05  (1) mail or personally deliver to the clerk of the court in which the 06 citation is filed by the peace officer the amount of bail indicated on the citation and 07 a copy of the citation indicating that the right to an appearance is waived, a plea of no 08 contest is entered, and the bail and all alcoholic beverages seized are forfeited; or 09  (2) perform community work in lieu of payment of the fine or a portion 10 of the fine as provided in (d) of this section. 11 * Sec. 38. AS 04.16.205(c) is amended to read: 12  (c) The supreme court shall establish by rule or order a schedule of bail 13 amounts that may be forfeited without a court appearance for a violation of 14 AS 04.11.501 [AS 04.11.498] or an ordinance adopted under AS 04.11.501 15 [AS 04.11.498]. In establishing the bail schedule the supreme court may consider the 16 quantity of alcoholic beverages possessed and the number of prior violations of the 17 person cited. Before establishing or amending the schedule of bail amounts required 18 by this subsection, the supreme court shall appoint and consult with an advisory 19 committee consisting of the following seven persons: one superior court judge, one 20 magistrate from each judicial district in the state, a representative of the Department 21 of Law, and a representative of the Public Defender Agency. The maximum bail 22 amount may not exceed $1,000, and the issuing officer shall write on the citation the 23 amount of bail applicable to the violation. 24 * Sec. 39. AS 04.16.205(d) is amended to read: 25  (d) Community work shall be performed at the direction of the local governing 26 body of the municipality or the local governing body of the established village. In the 27 absence of a local governing body for an established village, community work 28 shall be performed at the direction of the body that has traditionally performed 29 public functions on behalf of the entire community. The value of community work 30 in lieu of a fine is $5.00 per hour. When the community work is completed, the 31 person cited for the violation shall mail or personally deliver to the clerk of the court

01 in which the citation is filed by the peace officer 02  (1) a form, prescribed by the administrative director of the Alaska 03 Court System, indicating completion of the community work; and 04  (2) a copy of the citation, indicating that the right to an appearance is 05 waived, a plea of no contest is entered, and that the bail is forfeited or community 06 work has been performed and that all alcoholic beverages seized are forfeited. 07 * Sec. 40. AS 04.16.205(g) is amended to read: 08  (g) Notwithstanding other provisions of law, if a person cited for a violation 09 of AS 04.11.501 [AS 04.11.498] or an ordinance adopted under AS 04.11.501 10 [AS 04.11.498] for which a bail amount has been established under (c) of this section 11 appears in court and is found guilty, the penalty that is imposed for the offense may 12 not exceed the bail amount for that offense established under (c) of this section. 13 * Sec. 41. AS 04.16.205(h) is amended to read: 14  (h) A violation of AS 04.11.501 [AS 04.11.498] or an ordinance adopted under 15 AS 04.11.501 [AS 04.11.498] may not be considered a criminal offense and may not 16 result in imprisonment, nor is a fine imposed for a violation considered criminal 17 punishment. A person cited for a violation does not have a right to a jury trial or 18 court appointed counsel. 19 * Sec. 42. AS 04.16.220(a) is amended to read: 20  (a) The following are subject to forfeiture: 21  (1) alcoholic beverages manufactured, sold, offered for sale or 22 possessed for sale, bartered or exchanged for goods and services in this state in 23 violation of AS 04.11.010; alcoholic beverages possessed, stocked, warehoused, or 24 otherwise stored in violation of AS 04.21.060; alcoholic beverages sold, or offered for 25 sale in violation [IN AN AREA WHERE THE RESULTS] of a local option adopted 26 under AS 04.11.491 [ELECTION HAVE, UNDER AS 04.11.490 - 04.11.500, 27 PROHIBITED THE POSSESSION OF ALCOHOLIC BEVERAGES OR 28 PROHIBITED THE BOARD FROM ISSUING, RENEWING, OR TRANSFERRING 29 ONE OR MORE LICENSES OR PERMITS UNDER THIS TITLE IN THE AREA]; 30 alcoholic beverages transported into the state and sold to persons not licensed under 31 this chapter in violation of AS 04.16.170(b);

01  (2) materials and equipment used in the manufacture, sale, offering for 02 sale, possession for sale, barter or exchange of alcoholic beverages for goods and 03 services in this state in violation of AS 04.11.010; materials and equipment used in the 04 stocking, warehousing, or storage of alcoholic beverages in violation of AS 04.21.060; 05 materials and equipment used in the sale or offering for sale of an alcoholic beverage 06 in an area in violation [WHERE THE RESULTS] of a local option adopted under 07 AS 04.11.491 [ELECTION HAVE, UNDER AS 04.11.490 - 04.11.500, PROHIBITED 08 THE BOARD FROM ISSUING, RENEWING, OR TRANSFERRING ONE OR 09 MORE LICENSES OR PERMITS UNDER THIS TITLE IN THE AREA]; 10  (3) aircraft, vehicles, or vessels used to transport, or facilitate the 11 transportation of 12  (A) alcoholic beverages manufactured, sold, offered for sale or 13 possessed for sale, bartered or exchanged for goods and services in this state 14 in violation of AS 04.11.010; 15  (B) property stocked, warehoused, or otherwise stored in 16 violation of AS 04.21.060; 17  (C) alcoholic beverages imported into a municipality or 18 established village in violation of AS 04.11.499 [AS 04.11.496]; 19  (4) alcoholic beverages found on licensed premises that do not bear 20 federal excise stamps if excise stamps are required under federal law; 21  (5) alcoholic beverages, materials or equipment used in violation of 22 AS 04.16.175. 23 * Sec. 43. AS 04.16.220(b) is amended to read: 24  (b) Property subject to forfeiture under this section may be actually or 25 constructively seized under an order issued by the superior court upon a showing of 26 probable cause that the property is subject to forfeiture under this section. Constructive 27 seizure is effected upon posting a signed notice of seizure on the item to be forfeited, 28 stating the violation and the date and place of seizure. Seizure without a court order 29 may be made if 30  (1) the seizure is incident to a valid arrest or search; 31  (2) the property subject to seizure is the subject of a prior judgment in

01 favor of the state; or 02  (3) there is probable cause to believe that the property is subject to 03 forfeiture under (a) of this section; except for alcoholic beverages possessed on 04 violation of AS 04.11.501 [AS 04.11.498] or an ordinance adopted under AS 04.11.501 05 [AS 04.11.498], property seized under this paragraph may not be held over 48 hours 06 or until an order of forfeiture is issued by the court, whichever is earlier. 07 * Sec. 44. AS 04.16.220(d) is amended to read: 08  (d) Property subject to forfeiture under (a) of this section may be forfeited 09  (1) upon conviction of a person for a violation of [UNDER] 10 AS 04.11.010, 04.11.499, [04.11.496(b), OR] AS 04.21.060, or AS 04.11.501 [UPON 11 ENTRY OF JUDGMENT UNDER AS 04.11.498] or an ordinance adopted under 12 AS 04.11.501 [AS 04.11.498]; or 13  (2) upon judgment by the superior court in a proceeding in rem that the 14 property was used in a manner subjecting it to forfeiture under (a) of this section. 15 * Sec. 45. AS 04.16.220(g) is amended to read: 16  (g) It is no defense in an in rem forfeiture proceeding brought under (d)(2) of 17 this section that a criminal proceeding is pending or has resulted in conviction or 18 acquittal of a person charged with violating AS 04.11.010, 04.11.499 [04.11.496(b)], 19 or AS 04.21.060. 20 * Sec. 46. AS 04.16.220(h) is amended to read: 21  (h) Alcoholic beverages forfeited under (d) of this section shall be placed in 22 the custody of a peace officer of the state and destroyed no later than 30 days after 23 forfeiture. All other property forfeited under this section shall be placed in the custody 24 of the commissioner of public safety for disposition according to an order entered by 25 the court. The court shall order destroyed any property forfeited under this section that 26 is harmful to the public and shall order any property forfeited under this section 27 that was seized in a municipality to be transferred to the municipality in which 28 the property was seized. Other property shall be ordered sold and the proceeds used 29 for payment of expenses of the proceedings for forfeiture and sale, including expenses 30 of seizure, custody, and court costs. The remainder of the proceeds shall be deposited 31 in the general fund.

01 * Sec. 47. AS 04.21.010(a) is amended to read: 02  (a) A municipality may adopt ordinances governing the importation, barter, 03 sale, and consumption of alcoholic beverages within the municipality and may ban 04 possession of alcoholic beverages under AS 04.11.491(a)(5) [AS 04.11.498(d) OR (e)]. 05 An ordinance adopted under this section may not be inconsistent with this title or 06 regulations adopted under this title. In a municipality that has adopted a local 07 option under AS 04.11.491(a)(1), (2), or (3), an ordinance is not inconsistent with 08 this title if it limits 09  (1) the monthly amounts of alcoholic beverages a person may 10 import into the municipality; 11  (2) the percent of alcohol by volume that an alcoholic beverage may 12 contain; a limit imposed under this paragraph may not be less than 40 nor more 13 than 76 percent alcohol by volume; or 14  (3) the type of alcoholic beverage container that may be possessed 15 in the municipality. 16 * Sec. 48. AS 04.21.010(b) is amended to read: 17  (b) After the adoption of a local option under AS 04.11.491(a), a [IF, AS A 18 RESULT OF AN ELECTION HELD IN ACCORDANCE WITH AS 04.11.502 IN A 19 MUNICIPALITY, THE BOARD IS PROHIBITED FROM ISSUING, RENEWING, 20 OR TRANSFERRING A LICENSE BETWEEN HOLDERS OR LOCATIONS OR IF 21 THE IMPORTATION OF ALCOHOLIC BEVERAGES IS PROHIBITED IN THE 22 MUNICIPALITY, THE] municipality may adopt an ordinance making the sale, [OR] 23 importation, or possession of alcoholic beverages a misdemeanor to the extent 24 prohibited under the local option. The ordinance may not be inconsistent with this 25 title or the regulations adopted under this title. 26 * Sec. 49. AS 04.21.010(c) is amended to read: 27  (c) A municipality may not impose taxes on alcoholic beverages except a 28  (1) property tax on alcoholic beverage inventories; 29  (2) sales tax on alcoholic beverage sales if sales taxes are imposed on 30 other sales within the municipality; 31  (3) sales tax on alcoholic beverage sales that was in effect before

01 July 1, 1985; and 02  (4) sales and use tax on alcoholic beverages if the sale of alcoholic 03 beverages within the municipality has been prohibited under AS 04.11.491(a)(1), (4), 04 or (5) [AS 04.11.490]. 05 * Sec. 50. AS 04.21.015(b) is amended to read: 06  (b) This section does not apply to AS 04.16.050, 04.16.051, 04.16.080; 07 AS 04.21.010, 04.21.020; alcoholic beverages manufactured in a quantity that exceeds 08 the limit imposed on private manufacture under federal law; or an area that has 09 adopted a local option law under AS 04.11.491 [AS 04.11.490 - 04.11.500]. 10 * Sec. 51. AS 04.21.025(a) is amended to read: 11  (a) As a condition of issuance or renewal of a license and selling alcoholic 12 beverages under a license, the board shall require a licensee who sells or serves 13 alcoholic beverages and a licensee's agents and employees who sell or serve alcoholic 14 beverages or check the identification of a patron to complete an alcohol server 15 education course approved by the board, if the license is for a 16  (1) beverage dispensary; 17  (2) restaurant or eating place; 18  (3) club; 19  (4) package store; 20  (5) [COMMON CARRIER DISPENSARY; 21  (6)] recreational site; 22  (6) [(7) COMMUNITY; 23  (8)] pub; 24  (7) [(9)] conditional contractor. 25 * Sec. 52. AS 04.21.025 is amended by adding a new subsection to read: 26  (e) A person licensed as a common carrier dispensary shall train agents and 27 employees who sell or serve alcoholic beverages or who check the identification of a 28 patron on provisions of state law regarding sale of alcoholic beverages, including 29 AS 04.16.015, 04.16.020, 04.16.030, 04.16.051, 04.16.052, 04.16.120, 04.16.125, 30 AS 04.21.030, and 04.21.050. The training must include the subjects of the effects of 31 alcohol consumption, identifying a drunken person, determining valid identification,

01 intervention to prevent unlawful alcohol consumption, and penalties for unlawful acts 02 by agents and employees of licensees. A common carrier licensee shall, once every 03 three years, provide the board with a description of its training program including the 04 subjects taught, teaching method, and testing required. 05 * Sec. 53. AS 04.21.065(a) is amended to read: 06  (a) A holder of one of the following types of licenses or permits shall post on 07 the licensed or designated premises two separate warning signs as described in (b) of 08 this section: 09  (1) beverage dispensary license; 10  (2) restaurant or eating place license; 11  (3) club license; 12  (4) brewery license; this paragraph applies only to a brewery that 13 permits a person to sample portions of the brewery's product; 14  (5) package store license; 15  (6) common carrier dispensary license; 16  (7) recreational site license; 17  (8) [COMMUNITY LIQUOR LICENSE; 18  (9)] pub license; 19  (9) [(10)] winery license; this paragraph applies only to a winery that 20 permits a person to sample portions of the winery's product; 21  (10) [(11)] caterer's permit; 22  (11) [(12)] special events permit; 23  (12) [(13)] conditional contractor's permit; 24  (13) [(14)] another license or permit issued by the board authorizing 25 consumption of alcoholic beverages. 26 * Sec. 54. AS 04.21.080(b)(1) is amended to read: 27  (1) "alcoholic beverage" means a spirituous, vinous, malt, or other 28 fermented or distilled liquid, whatever the origin, that is intended for human 29 consumption as a beverage and that contains one-half of one percent or more of 30 alcohol by volume, whether produced commercially or privately; however, in an area 31 that has adopted a local option under AS 04.11.491 [LOCAL-OPTION

01 PROHIBITION UNDER AS 04.11.490 - 04.11.500], "alcoholic beverage" means a 02 spirituous, vinous, malt, or other fermented or distilled liquid, whatever the origin, that 03 is intended for human consumption as a beverage by the person who possesses or 04 attempts to possess it and that contains alcohol in any amount if the liquid is 05 produced privately, or that contains one-half of one percent or more of alcohol by 06 volume, if the liquid is produced commercially; 07 * Sec. 55. AS 04.21.080(b)(9) is amended to read: 08  (9) "established village" means an area that does not contain any 09 part of an incorporated city or another established village and that is 10  (A) an unincorporated community that is in the unorganized 11 borough and that has 25 or more permanent residents; or 12  (B) an unincorporated community that is in an organized 13 borough, has 25 or more permanent residents, and 14  (i) is on a road system and is located more than 50 15 miles outside the boundary limits of a unified municipality, or 16  (ii) is not on a road system and is located more than 15 17 miles outside the boundary limits of a unified municipality; 18 * Sec. 56. AS 15.07.064(g) is amended to read: 19  (g) In this section, "established village" means an unincorporated 20 community that is in 21  (A) the unorganized borough and that has 25 or more 22 permanent residents; or 23  (B) an organized borough, has 25 or more permanent 24 residents, and 25  (i) is on a road system and is located more than 50 26 miles outside the boundary limits of a unified municipality, or 27  (ii) is not on a road system and is located more than 28 15 miles outside the boundary limits of a unified municipality 29 [HAS THE MEANING GIVEN IN AS 04.21.080]. 30 * Sec. 57. AS 18.65.085(a) is amended to read: 31  (a) There is established in the Department of Public Safety, division of state

01 troopers, a narcotic drugs and alcohol enforcement unit for the purpose of investigating 02 and combating the illicit sale and distribution of narcotic drugs and alcoholic beverages 03 in the state. Enforcement of the alcoholic beverage control laws shall focus primarily 04 on the investigation, apprehension, and conviction of persons who violate 05 AS 04.11.010 by selling, importing, or possessing alcoholic beverages in violation of 06 a local option [AN ORDINANCE] adopted by a municipality or established village 07 under AS 04.11.491 [AS 04.11.490 - 04.11.500]. 08 * Sec. 58. AS 18.65.085(c) is amended to read: 09  (c) The Department of Public Safety may establish and administer a reward 10 program, and provide grants to municipalities, established villages, and, at the request 11 of a municipality or established village, to a nonprofit association that administers a 12 village public safety officer program, for reward programs leading to the apprehension 13 and conviction of persons who violate AS 04.11.010 by selling, importing, or 14 possessing alcoholic beverages in violation of a local option [AN ORDINANCE] 15 adopted by a municipality or established village under AS 04.11.491 [AS 04.11.490 16 - 04.11.500]. 17 * Sec. 59. AS 29.20.270(e) is amended to read: 18  (e) The veto does not extend to an ordinance adopted under AS 04.11.501 19 [AS 04.11.498]. This subsection applies to home rule and general law municipalities. 20 * Sec. 60. AS 29.25.020(d) is amended to read: 21  (d) This section does not apply to an ordinance proposed under 22 AS 04.11.507(d) [AS 04.11.502(c)]. 23 * Sec. 61. AS 29.25.070(d) is amended to read: 24  (d) This section does not apply to an ordinance adopted under AS 04.11.501(c) 25 [AS 04.11.498(d) OR (e)]. 26 * Sec. 62. AS 29.35.080(a) is amended to read: 27  (a) A municipality may regulate the possession, barter, sale, importation, and 28 consumption of alcoholic beverages under AS 04.11.480 - 04.11.509 [IN 29 ACCORDANCE WITH AS 04.11.480 - 04.11.506] and AS 04.21.010. 30 * Sec. 63. AS 34.03.360(6) is amended to read: 31  (6) "illegal activity involving alcoholic beverages" means a person's

01 delivery of an alcoholic beverage in violation of AS 04.11.010(b) in an area where the 02 results of a local option election have, under AS 04.11.491 [AS 04.11.490 - 03 04.11.500], prohibited the Alcoholic Beverage Control Board from issuing, renewing, 04 or transferring a liquor license or permit under AS 04; 05 * Sec. 64. AS 47.37.045(e) is amended to read: 06  (e) In this section, 07  (1) "established village" means an unincorporated community that 08 is in 09  (A) the unorganized borough and that has 25 or more 10 permanent residents; or 11  (B) an organized borough, has 25 or more permanent 12 residents, and 13  (i) is on a road system and is located more than 50 14 miles outside the boundary limits of a unified municipality, or 15  (ii) is not on a road system and is located more than 16 15 miles outside the boundary limits of a unified municipality 17 [HAS THE MEANING GIVEN IN AS 04.21.080(b)]; 18  (2) "local governing body" has the meaning given in AS 04.21.080(b); 19  (3) "nonprofit organization" means an organization that qualifies for 20 exemption from taxation under 26 U.S.C. 501(c)(3) or (4) (Internal Revenue Code). 21 * Sec. 65. AS 04.11.090(c), 04.11.190, 04.11.490, 04.11.492, 04.11.496, 04.11.498, 22 04.11.500, 04.11.502, 04.11.504, 04.11.506, and 04.11.510(d) are repealed. 23 * Sec. 66. TRANSITION: LOCAL OPTIONS EARLIER ADOPTED. Notwithstanding 24 the provisions of this Act, local options adopted by an area under AS 04.11.490, 04.11.492, 25 04.11.496, 04.11.498, or 04.11.500 or previous local option laws before the effective date of 26 this Act shall continue in effect until changed under AS 04.11.493 or removed under 27 AS 04.11.495. References in this Act to local option elections conducted under AS 04.11.491, 28 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 29 are to be interpreted to include local option elections conducted under AS 04.11.490, 30 04.11.492, 04.11.496, 04.11.498, 04.11.500, or 04.11.502 or previous local option laws in 31 effect before the effective date of this Act.

01 * Sec. 67. TRANSITION: EXISTING LOCAL OPTION PETITIONS. A petition to adopt 02 or remove a local option on file with a municipality or the lieutenant governor on the effective 03 date of this section that has not been voted on is void and may not be placed on an election 04 ballot. 05 * Sec. 68. TRANSITION: COMMUNITY LIQUOR LICENSES. A community liquor 06 license issued under AS 04.11.190 before the effective date of this Act to operate a beverage 07 dispensary shall continue as a beverage dispensary license under AS 04.11.090. A community 08 liquor license issued under AS 04.11.190 before the effective date of this Act to operate a 09 package store shall continue as a package store license under AS 04.11.150. 10 * Sec. 69. TRANSITION. A person licensed under AS 04.11.160 on the effective date of 11 this section shall submit the information required under AS 04.11.160(f), added by sec. 9 of 12 this Act, by September 30, 1995. 13 * Sec. 70. TRANSITION: IMPLEMENTATION OF BIENNIAL SEASONAL LICENSES. 14 (a) Approximately one-half of the applicants for 1996 renewal of a seasonal license issued 15 by the Alcoholic Beverage Control Board, as determined by the director of the Alcoholic 16 Beverage Control Board, shall be eligible for a one-year seasonal license. These licenses 17 expire, unless renewed, on December 31, 1996, and may be renewed biennially in even-numbered years after that. 18 The 1996 renewal fee for these licenses is one-half of the seasonal 19 biennial license fee. 20 (b) Applicants whose licenses are not renewed under (a) of this section shall be 21 eligible for a two-year seasonal license. These licenses expire, unless renewed, on 22 December 31, 1997, and may be renewed biennially in odd-numbered years. 23 (c) The director shall notify each licensee in writing as to whether the licensee shall 24 apply for renewal under (a) or (b) of this section, and of the actual amount of the renewal fee. 25 The notice must be given not later than December 1, 1995. However, the failure of the 26 director to provide the notice required in this subsection does not prevent a license from 27 expiring on February 28, 1996, under AS 04.11.540, if the renewal application is not filed on 28 or before that date. 29 * Sec. 71. TRANSITION: REGULATIONS. Notwithstanding sec. 75 of this Act, the 30 Alcoholic Beverage Control Board may proceed to adopt regulations necessary to implement 31 this Act. The regulations take effect under AS 44.62 (Administrative Procedure Act), but not

01 before July 1, 1995. 02 * Sec. 72. PROHIBITION ON PURCHASE OR CERTAIN ALCOHOLIC BEVERAGES. 03 Beginning July 1, 1995, and ending June 30, 1996, a person licensed as a wholesaler under 04 AS 04.11.160 may not purchase an alcoholic beverage that contains more than 76 percent 05 alcohol by volume. 06 * Sec. 73. Section 71 of this Act takes effect immediately under AS 01.10.070(c). 07 * Sec. 74. AS 04.16.110(2), enacted in sec. 31 of this Act, takes effect July 1, 1996. 08 * Sec. 75. Except as provided in secs. 71 and 74 of this Act, this Act takes effect July 1, 09 1995.