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CSSB 87(FIN): "An Act relating to the membership of the Alcoholic Beverage Control Board; relating to community local options for control of alcoholic beverages; relating to the control of alcoholic beverages; prohibiting persons from being on premises involving alcoholic beverages under certain circumstances; 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."

00 CS FOR SENATE BILL NO. 87(FIN)                                                                                          
01 "An Act relating to the membership of the Alcoholic Beverage Control Board;                                             
02 relating to community local options for control of alcoholic beverages; relating to                                     
03 the control of alcoholic beverages; prohibiting persons from being on premises                                          
04 involving alcoholic beverages under certain circumstances; relating to the definition                                   
05 of 'alcoholic beverage'; relating to purchase and sale of alcoholic beverages;                                          
06 relating to alcohol server education courses; and providing for an effective date."                                     
07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
08    * Section 1.  AS 04.06.020 is amended to read:                                                                       
09  Sec. 04.06.020.  APPOINTMENT AND QUALIFICATIONS.  The board                                                           
10 consists of five members appointed by the governor and confirmed by a majority of                                       
11 the members of the legislature in joint session.  A member of the board may not hold                                    
12 any other state or federal office, either elective or appointive.  Two members of the                                   
13 board shall be persons actively engaged in the alcoholic beverage industry, except that                                 
14 no member may hold a wholesale license or be an officer, agent, or employee of a                                        
01 wholesale alcoholic beverage enterprise.  No three members of the board may be                                          
02 engaged in the same business, occupation, or profession.  At least three members of                                    
03 the board shall represent the general public.  A board member representing the                                          
04 general public or an immediate family member of a board member representing                                             
05 the general public may not have any financial interest in the alcoholic beverage                                        
06 industry.  A person who is employed in a program providing alcohol or substance                                         
07 abuse counseling or related services is not considered to have a financial interest                                     
08 in the alcoholic beverage industry.  Not more than two members of the board may                                         
09 be employed in alcohol or substance abuse counseling or related services.  In this                                      
10 section, "immediate family member" means a spouse, child, or parent.                                                   
11    * Sec. 2.  AS 04.06.060 is amended to read:                                                                          
12  Sec. 04.06.060.  QUORUM AND MAJORITY.  Three members of the board                                                     
13 constitute a quorum for the conduct of business, except that at least two members of                                   
14 a quorum must be members who represent the general public and a majority of                                            
15 the whole membership of the board must approve all applications for new licenses, and                                   
16 all renewals, transfers, suspensions, and revocations of existing licenses.  If a majority                              
17 of the board is present and voting, the director, with the consent of the members                                       
18 present, may cast a tie-breaking vote.                                                                                  
19    * Sec. 3.  AS 04.11.010(b) is amended to read:                                                                       
20  (b)  Except as provided in this subsection, a [A] person may not solicit or                                         
21 receive orders for the delivery of an alcoholic beverage in an area that has adopted                                   
22 a local option under AS 04.11.491.  If the area has adopted a local option under                                        
23 AS 04.11.491(a)(1), (2), or (3), or (b)(1) or (2), a package store licensee outside of                                  
24 that local option area may receive orders as provided under AS 04.11.150 but may                                        
25 not solicit in that area or receive orders through an agent or employee in that                                         
26 area.  This subsection does not apply to a package store licensee who operates a                                        
27 package store in an area that has adopted a local option under                                                          
28 AS 04.11.491(a)(2)(C) or (3)(C) or (b)(2)(C) [WHERE THE RESULTS OF A                                                   
29 LOCAL OPTION ELECTION HAVE, UNDER AS 04.11.490 - 04.11.500,                                                             
30 PROHIBITED THE BOARD FROM ISSUING, RENEWING, OR TRANSFERRING                                                            
31 ONE OR MORE TYPES OF LICENSES OR PERMITS UNDER THIS TITLE,                                                              
01 UNLESS THE PERSON IS LICENSED UNDER THIS TITLE AND THE ORDER                                                            
02 IS ACTUALLY RECEIVED BY THAT PERSON FROM THE PURCHASER OF                                                               
03 THE ALCOHOLIC BEVERAGE].  A person who violates this subsection is                                                      
04 punishable upon conviction as provided under AS 04.16.200(a) or (b).                                                  
05    * Sec. 4.  AS 04.11.010(c) is amended to read:                                                                       
06  (c)  In a criminal prosecution for possession of alcoholic beverages for sale in                                      
07 violation of (a) of this section, the fact that a person possessed more than 12 liters of                               
08 distilled spirits, 24 liters or more of wine, or 12 gallons [45 LITERS] or more of malt                               
09 beverages in an area where the sale of alcoholic beverages is restricted or prohibited                                
10 under AS 04.11.491 [AS 04.11.490, 04.11.492, 04.11.496, OR 04.11.500] creates a                                       
11 presumption that the person possessed the alcoholic beverages for sale.                                                 
12    * Sec. 5.  AS 04.11.080 is amended to read:                                                                          
13  Sec. 04.11.080.  TYPES OF LICENSES AND PERMITS.  Licenses and                                                         
14 permits issued under this title are as follows:                                                                         
15   (1)  beverage dispensary license;                                                                                    
16   (2)  duplicate beverage dispensary license for additional rooms;                                                     
17   (3)  restaurant or eating place license;                                                                             
18   (4)  club license;                                                                                                   
19   (5)  bottling works license;                                                                                         
20   (6)  brewery license;                                                                                                
21   (7)  package store license;                                                                                          
22   (8)  general wholesale license;                                                                                      
23   (9)  wholesale malt beverage and wine license;                                                                       
24   (10)  distillery license;                                                                                            
25   (11)  common carrier dispensary license;                                                                             
26   (12)  retail stock sale license;                                                                                     
27   (13)  recreational site license;                                                                                     
28   (14)  [COMMUNITY LIQUOR LICENSE;                                                                                     
29   (15)]  pub license;                                                                                                  
30   (15) [(16)]  winery license;                                                                                       
31   (16) [(17)]  caterer's permit;                                                                                     
01   (17) [(18)]  special events permit;                                                                                
02   (18) [(19)]  conditional contractor's permit;                                                                      
03   (19) [(20)]  brewpub license.                                                                                      
04    * Sec. 6.  AS 04.11.100 is amended by adding a new subsection to read:                                               
05  (f)  Notwithstanding the provisions of (b) and (e) of this section, upon written                                      
06 application and approval of the local governing body, the board may issue or reissue                                    
07 a restaurant or eating place license and exempt the licensee from the requirements of                                   
08 (b) and (e) of this section.  A licensee exempt as provided in this subsection shall                                    
09 provide food items for sale on the premises as shown on a menu approved by the                                          
10 board and available to patrons.  The board may not                                                                      
11   (1)  issue or reissue a license as provided under this subsection if                                                 
12   (A)  the issuance or reissuance would result in more than one                                                       
13 exempt restaurant or eating place license for every 10 restaurant or eating place                                       
14 licenses allowed under the provisions of AS 04.11.400(a)(2) or (3);                                                     
15   (B)  the premises would be located in a building having a public                                                    
16 entrance within 200 feet of  the boundary line of  a school  or a church                                                
17 building in which religious services are being regularly conducted; for purposes                                        
18 of this subparagraph, the 200-foot prohibition is measured from the outer                                               
19 boundary line of the school or the public entrance of the church building by the                                        
20 shortest pedestrian route to the nearest public entrance of the restaurant or                                           
21 eating place;                                                                                                           
22     (2)  reissue a restaurant or eating place license as exempt as provided                                            
23 under the provisions of this subsection if the license was issued under the provisions                                  
24 of AS 04.11.400(g); or                                                                                                  
25   (3)  transfer an exempt license issued under this subsection to another                                              
26 person.                                                                                                                 
27    * Sec. 7.  AS 04.11.135(a) is amended to read:                                                                       
28  (a)  A brewpub license authorizes the holder of a beverage dispensary license                                         
29 to                                                                                                                      
30   (1)  manufacture on premises licensed under the beverage dispensary                                                  
31 license not more than 75,000 [16,000] gallons of beer in a calendar year; and                                         
01   (2)  sell beer manufactured on premises licensed under the beverage                                                  
02 dispensary license for consumption only on the licensed premises.                                                       
03    * Sec. 8.  AS 04.11.135(b) is amended to read:                                                                       
04  (b)  Except as provided under AS 04.11.360(10) [AS 04.11.360(12)], the                                              
05 brewpub license is not transferable, shall remain the property of the state, and is not                                 
06 subject to any form of alienation.                                                                                      
07    * Sec. 9.  AS 04.11.150(a) is repealed and reenacted to read:                                                        
08  (a)  Except as provided under (g) of this section, a package store license                                            
09 authorizes the licensee to sell alcoholic beverages to a person present on the licensed                                 
10 premises or to a person known to the licensee who makes a written solicitation to that                                  
11 licensee for shipment.  A licensee, agent, or employee may only ship alcoholic                                          
12 beverages to the purchaser.  Before commencing the practice of shipping alcoholic                                       
13 beverages, and with each subsequent application to renew the license, a licensee shall                                  
14 notify the board in writing of the licensee's intention to ship alcoholic beverages in                                  
15 response to a written solicitation.  The package store licensee, agent, or employee shall                               
16 include written information on fetal alcohol syndrome and fetal alcohol effects                                         
17 resulting from a woman consuming alcohol during pregnancy in a shipment of                                              
18 alcoholic beverages sold in response to a written solicitation.                                                         
19    * Sec. 10.  AS 04.11.150(g) is repealed and reenacted to read:                                                       
20  (g)  If a shipment is to an area that has restricted the sale of alcoholic                                            
21 beverages under AS 04.11.491(a)(1), (2), or (3) or (b)(1) or (2), a package store                                       
22 licensee, agent, or employee may not ship to a purchaser more than 12 liters of                                         
23 distilled spirits, 24 liters or more of wine, or 12 gallons or more of malt beverages in                                
24 a calendar month.                                                                                                       
25    * Sec. 11.  AS 04.11.160 is amended by adding new subsections to read:                                               
26  (f)  A person who applies for issuance or renewal of a license under this                                             
27 section shall file, on forms provided by the board, the following information regarding                                 
28 each product line of alcoholic beverages that the person intends to purchase, offer for                                 
29 sale, or sell:  (1) the supplier of the product line; (2) the full and correct brand names                              
30 in the product line; (3) the name of the distiller, brewer, vintner, or importer of the                                 
31 product line; and (4) a certification by the distiller, brewer, vintner, or importer of the                             
01 product line that the person is the primary source of supply for the product line.  In                                  
02 addition to the fees imposed under (a) and (b) of this section, a person filing under this                              
03 subsection shall pay a biennial filing fee as follows:                                                                  
04   1 to 25 suppliers    $  500                                                                                           
05   26 to 50 suppliers    $1,000                                                                                          
06   51 to 75 suppliers    $1,500                                                                                          
07   over 75 suppliers    $2,000                                                                                           
08 In this subsection, "distiller, brewer, vintner, or importer" includes an exclusive agent                              
09 of the distiller, brewer, vintner, or importer if the agent's name appears on the label of                              
10 the brand approved by the Federal Bureau of Alcohol, Tobacco, and Firearms.                                             
11  (g)  A person licensed under this section shall notify the board within 10 days                                       
12 of a change in a primary source of supply designation required under (f) of this                                        
13 section.                                                                                                                
14    * Sec. 12.  AS 04.16 is amended by adding a new section to read:                                                     
15  Sec. 04.16.172.  RESTRICTIONS ON PURCHASE AND SALE OF                                                                 
16 ALCOHOLIC BEVERAGES.  A person licensed under AS 04.11.090, 04.11.100,                                                  
17 04.11.110, or 04.11.150 may not purchase, sell, or offer for sale an alcoholic beverage                                 
18 unless the alcoholic beverage being purchased, sold, or offered for sale was obtained                                   
19 from a person licensed under                                                                                            
20   (1)  AS 04.11.160 as a primary source of supply for the alcoholic                                                    
21 beverage being purchased, sold, or offered for sale; or                                                                 
22   (2)  AS 04.11.130, 04.11.140, or 04.11.170.                                                                          
23    * Sec. 13.  AS 04.11.270(b) is amended to read:                                                                      
24  (b)  A license shall be renewed as follows:                                                                           
25   (1)  on or before November 1 [OF EACH YEAR], the director shall                                                      
26 mail a renewal application to each licensee whose license, unless renewed, will expire                                  
27 on December 31 of that year; the application shall be mailed to the licensee at the                                     
28 licensed premises or at a mailing address furnished by the licensee;                                                    
29   (2)  the licensee shall submit the completed renewal application and the                                             
30 biennial license fee to the director before January 1 [ON OR BEFORE                                                   
31 DECEMBER 31];                                                                                                           
01   (3)  a renewal application filed after December 31 is delinquent and                                                 
02 must be accompanied by a $500 [$200] penalty fee;                                                                     
03   (4)  if December 31 falls on a weekend or a state holiday, the deadline                                              
04 is extended to the first business day following December 31.                                                            
05    * Sec. 14.  AS 04.11.320 is amended to read:                                                                         
06  Sec. 04.11.320.  DENIAL OF NEW LICENSES AND PERMITS.  (a)  An                                                         
07 application requesting issuance of a new license shall be denied if                                                     
08   (1)  the board finds, after review of all relevant information, that                                                 
09 issuance of the license would not be in the best interests of the public;                                               
10   (2)  issuance of the license is prohibited by AS 04.11.390, relating to                                              
11 residency, or AS 04.11.410, relating to location of premises near churches and schools;                                 
12   (3)  the application has not been completed in accordance with                                                       
13 AS 04.11.260;                                                                                                           
14   (4)  issuance of the license would violate the restrictions pertaining to                                            
15 the particular license imposed under this title;                                                                        
16   (5)  issuance of the license is prohibited under this title as a result of                                           
17 an election conducted under AS 04.11.507 [IN ACCORDANCE WITH                                                          
18 AS 04.11.502];                                                                                                          
19   (6)  the requirements of AS 04.11.420 - 04.11.450 relating to zoning,                                                
20 ownership and location of the license, and the identity and financing of a licensee have                                
21 not been met;                                                                                                           
22   (7)  [THE LICENSED PREMISES ARE TO BE LOCATED IN A                                                                   
23 MUNICIPALITY, THE TYPE OF LICENSE SOUGHT IS A BEVERAGE                                                                  
24 DISPENSARY OR PACKAGE STORE LICENSE, AND THAT TYPE OF LICENSE                                                           
25 IS ALREADY IN EFFECT IN THE MUNICIPALITY UNDER A COMMUNITY                                                              
26 LIQUOR LICENSE, UNLESS THE NEW LICENSE IS TO BECOME EFFECTIVE                                                           
27 AFTER THE COMMUNITY LIQUOR LICENSE IS NO LONGER EFFECTIVE,                                                              
28 WHETHER AS THE RESULT OF A LOCAL OPTION ELECTION OR                                                                     
29 OTHERWISE;                                                                                                              
30   (8)  THE AUTHORITY SOUGHT IS AUTHORITY TO OPERATE A                                                                  
31 BEVERAGE DISPENSARY OR PACKAGE STORE UNDER A COMMUNITY                                                                  
01 LIQUOR LICENSE FOR PREMISES TO BE LOCATED IN A MUNICIPALITY                                                             
02 WHERE THE AUTHORITY SOUGHT IS ALREADY HELD BY A PRIVATE                                                                 
03 LICENSEE UNDER A BEVERAGE DISPENSARY OR PACKAGE STORE                                                                   
04 LICENSE, UNLESS THE COMMUNITY LIQUOR LICENSE IS TO BECOME                                                               
05 EFFECTIVE AFTER THE PRIVATELY HELD LICENSE IS NO LONGER                                                                 
06 EFFECTIVE, WHETHER AS THE RESULT OF A LOCAL OPTION ELECTION OR                                                          
07 OTHERWISE;                                                                                                              
08   (9)]  issuance of the license is prohibited under AS 04.11.400(a) or                                                 
09 prohibition of issuance of the license is found necessary under AS 04.11.400(b);                                        
10   (8) [(10)]  the application contains false statements of material fact;                                            
11   (9) [(11)]  the license is sought for the sale of alcoholic beverages in a                                         
12 first or second class city where [IN WHICH] there are no licensed premises at the                                     
13 time of application unless a majority of the voters have voted not to approve [IN] a                                  
14 local option to restrict or prohibit the sale of alcoholic beverages under                                             
15 AS 04.11.491, have voted to approve a local option to allow the type of premises                                        
16 under AS 04.11.491(a)(2) or (3), or have voted to remove a restriction or                                               
17 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, OR HAVE VOTED "YES" ON A                                                          
20 QUESTION SET OUT IN AS 04.11.492 OR 04.11.500]; or                                                                    
21   (10) [(12)]  the license is sought for the sale of alcoholic beverages in                                          
22 an established village where [IN WHICH] there are no licensed premises at the time                                    
23 of application unless a majority of the voters have voted not to approve [IN] a local                                 
24 option to restrict or prohibit the sale of alcoholic beverages under AS 04.11.491,                                     
25 have voted to approve a local option to allow the type of premises under                                                
26 AS 04.11.491(b)(2), or have voted to remove a restriction or prohibition on the                                         
27 sale of alcoholic beverages under AS 04.11.495 [ELECTION CONDUCTED IN                                                  
28 ACCORDANCE WITH AS 04.11.502 HAVE VOTED "NO" ON THE QUESTION                                                            
29 SET OUT IN AS 04.11.490 OR HAVE VOTED "YES" ON THE QUESTION SET                                                         
30 OUT IN AS 04.11.500].                                                                                                   
31  (b)  An application requesting issuance of a new permit shall be denied if                                            
01   (1)  the board finds, after review of all relevant information, that                                                 
02 issuance of the permit would not be in the best interests of the public;                                                
03   (2)  the board finds that any of the statements made in the application                                              
04 are untrue;                                                                                                             
05   (3)  the application has not been completed in accordance with                                                       
06 AS 04.11.260; or                                                                                                      
07   (4)  the permit is sought for the sale of alcoholic beverages in a first or                                          
08 second class city or established village where [IN WHICH] there are no licensed                                       
09 premises at the time of application unless a majority of the voters have voted not to                                  
10 approve [IN] a local option to restrict or prohibit the sale of alcoholic beverages                                   
11 under AS 04.11.491, have voted to approve a local option to allow the type of                                           
12 permit under AS 04.11.491(a)(2) or (b)(2), or have voted to remove a restriction                                        
13 or prohibition on the sale of alcoholic beverages under AS 04.11.495 [ELECTION                                         
14 CONDUCTED IN ACCORDANCE WITH AS 04.11.502 HAVE VOTED "NO" ON                                                            
15 THE QUESTION SET OUT IN AS 04.11.490].                                                                                  
16    * Sec. 15.  AS 04.11.330(a) is amended to read:                                                                      
17  (a)  An application requesting renewal of a license shall be denied if                                                
18   (1)  the board finds, after review of all relevant information, that                                                 
19 renewal of the license would not be in the best interests of the public;                                                
20   (2)  the license has been revoked for any cause;                                                                     
21   (3)  the applicant has not operated the licensed premises for at least 30                                            
22 eight-hour days during each of the two preceding calendar years, unless the board                                       
23 determines that the licensed premises are under construction or cannot be operated                                      
24 through no fault of the applicant;                                                                                      
25   (4)  the board finds that issuance of an existing license under                                                      
26 AS 04.11.400(d) has not encouraged tourist trade;                                                                       
27   (5)  the requirements of AS 04.11.420 - 04.11.450 relating to zoning,                                                
28 ownership of the license, and financing of the licensee have not been met;                                              
29   (6)  renewal of the license would violate the restrictions pertaining to                                             
30 the particular license under this title or the license has been operated in violation of                               
31 a condition or restriction imposed by the board;                                                                       
01   (7)  renewal of the license is prohibited under this title as a result of an                                         
02 election conducted under AS 04.11.507 [IN ACCORDANCE WITH AS 04.11.502];                                              
03   (8)  the application has not been completed in accordance with                                                       
04 AS 04.11.270; or                                                                                                      
05   (9)  the license was issued under AS 04.11.400(g), and the board finds                                               
06 that the public convenience does not require renewal.                                                                   
07    * Sec. 16.  AS 04.11.340 is amended to read:                                                                         
08  Sec. 04.11.340.  DENIAL OF REQUEST FOR RELOCATION.  An application                                                    
09 requesting approval for the relocation of licensed premises shall be denied if                                          
10   (1)  the board finds, after review of all relevant information, that                                                 
11 relocation of the license would not be in the best interests of the public;                                             
12   (2)  the relocation is prohibited under AS 04.11.400(a) or (b);                                                      
13   (3)  the license would be relocated out of the established village,                                                  
14 incorporated city, unified municipality, or population area established under                                           
15 AS 04.11.400(a) within which it is located;                                                                             
16   (4)  transfer of ownership is to be made concurrently with the relocation                                            
17 of the licensed premises and a ground for denial of the transfer of ownership under                                     
18 AS 04.11.360 is presented;                                                                                              
19   (5)  the application has not been completed in accordance with                                                       
20 AS 04.11.290;                                                                                                           
21   (6)  relocation of the license would result in violation of a local zoning                                           
22 law;                                                                                                                    
23   (7)  relocation of the license would violate the restrictions pertaining to                                          
24 the particular license imposed by this title;                                                                           
25   (8)  relocation 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]; or                                                                                                     
28   (9)  [THE LICENSED PREMISES ARE TO BE LOCATED IN A                                                                   
29 MUNICIPALITY, THE TYPE OF LICENSE SOUGHT TO BE RELOCATED IS A                                                           
30 BEVERAGE DISPENSARY OR PACKAGE STORE LICENSE, AND THAT TYPE                                                             
31 OF LICENSE IS ALREADY IN EFFECT IN THE MUNICIPALITY UNDER A                                                             
01 COMMUNITY LIQUOR LICENSE, UNLESS THE RELOCATION IS TO BECOME                                                            
02 EFFECTIVE AFTER THE COMMUNITY LIQUOR LICENSE IS NO LONGER                                                               
03 EFFECTIVE, WHETHER AS THE RESULT OF A LOCAL OPTION ELECTION OR                                                          
04 OTHERWISE;                                                                                                              
05   (10)]  the license was issued under AS 04.11.400(d), (e), or (g).                                                    
06    * Sec. 17.  AS 04.11.360 is amended to read:                                                                         
07  Sec. 04.11.360.  DENIAL OF TRANSFER OF A LICENSE TO ANOTHER                                                           
08 PERSON.  An application requesting approval of a transfer of a license to another                                       
09 person under this title shall be denied if                                                                              
10   (1)  the board finds, after review of all relevant information, that transfer                                        
11 of a license to another person would not be in the best interests of the public;                                        
12   (2)  the application has not been completed in accordance with                                                       
13 AS 04.11.280;                                                                                                           
14   (3)  the application contains false statements of material fact;                                                     
15   (4)  the transferor has not paid all debts or taxes arising from the                                                 
16 conduct of the business licensed under this title unless                                                                
17   (A)  the transferor gives security for the payment of the debts                                                     
18 or taxes satisfactory to the creditor or taxing authority; or                                                           
19   (B)  the transfer is pursuant to a promise given as collateral by                                                   
20 the transferor to the transferee in the course of an earlier transfer of the license                                    
21 under which promise the transferor is obliged to transfer the license back to the                                       
22 transferee in the event of default in payment for property conveyed as part of                                          
23 the earlier transfer of the license;                                                                                    
24   (5)  transfer of the license to another person would result in violation                                             
25 of the provisions of this title relating to identity of licensees and financing of licensees;                           
26   (6)  transfer of the license to another person would violate the                                                     
27 restrictions pertaining to the particular license under this title;                                                     
28   (7)  transfer of the license to another person is prohibited under the                                               
29 provisions of this title as a result of an election conducted under AS 04.11.507 [IN                                  
30 ACCORDANCE WITH AS 04.11.502];                                                                                          
31   (8)  the prospective transferee does not have the qualifications required                                            
01 under this title of an original applicant;                                                                              
02   (9)  [THE LICENSED PREMISES ARE LOCATED IN A                                                                         
03 MUNICIPALITY, THE TYPE OF LICENSE SOUGHT TO BE TRANSFERRED IS                                                           
04 A BEVERAGE DISPENSARY OR PACKAGE STORE LICENSE, AND THAT TYPE                                                           
05 OF LICENSE IS ALREADY IN EFFECT IN THE MUNICIPALITY UNDER A                                                             
06 COMMUNITY LIQUOR LICENSE, UNLESS THE TRANSFER IS TO BECOME                                                              
07 EFFECTIVE AFTER THE COMMUNITY LIQUOR LICENSE IS NO LONGER                                                               
08 EFFECTIVE, WHETHER AS THE RESULT OF A LOCAL OPTION ELECTION OR                                                          
09 OTHERWISE;                                                                                                              
10   (10)  THE AUTHORITY SOUGHT IS AUTHORITY TO OPERATE                                                                   
11 A BEVERAGE DISPENSARY OR PACKAGE STORE UNDER A COMMUNITY                                                                
12 LIQUOR LICENSE FOR PREMISES TO BE LOCATED IN A MUNICIPALITY                                                             
13 WHERE THE AUTHORITY SOUGHT IS ALREADY HELD BY A PRIVATE                                                                 
14 LICENSEE UNDER A BEVERAGE DISPENSARY OR PACKAGE STORE                                                                   
15 LICENSE, UNLESS THE TRANSFER IS TO BECOME EFFECTIVE AFTER THE                                                           
16 PRIVATELY HELD LICENSE IS NO LONGER EFFECTIVE, WHETHER AS THE                                                           
17 RESULT OF A LOCAL OPTION ELECTION OR OTHERWISE;                                                                         
18   (11)]  the license was issued under AS 04.11.100(f) or 04.11.400(g); or                                            
19   (10) [AS 04.11.400(g);                                                                                             
20   (12)]  the license was issued under AS 04.11.135, unless the transferor                                              
21 is also applying to transfer the beverage dispensary license required under                                             
22 AS 04.11.135 to the same transferee.                                                                                    
23    * Sec. 18.  AS 04.11.370 is amended to read:                                                                         
24  Sec. 04.11.370.  SUSPENSION AND REVOCATION OF LICENSES AND                                                            
25 PERMITS.  A license or permit shall be suspended or revoked if the board finds                                          
26 [THAT ONE OR MORE OF THE FOLLOWING GROUNDS EXISTS:]                                                                     
27   (1)  misrepresentation of a material fact on an application made under                                              
28 this title or a regulation adopted under this title [FOR A LICENSE OR PERMIT];                                         
29   (2)  continuation of the manufacture, sale, or service of alcoholic                                                 
30 beverages by the licensee or permittee [ACTIVITIES AUTHORIZED UNDER A                                                  
31 LICENSE OR PERMIT] would be contrary to the best interests of the public;                                               
01   (3)  failure on the part of the licensee to correct a defect [DEFECTS]                                             
02 that constitutes a violation [CONSTITUTE VIOLATIONS] of this title, a condition                                      
03 or restriction imposed by the board, a regulation [REGULATIONS] adopted under                                          
04 this title, or other laws [WITHIN A PRESCRIBED TIME] after receipt of notice                                            
05 issued by the board or its agent;                                                                                       
06   (4)  conviction of a licensee of a violation of [A PROVISION OF] this                                                
07 title, a regulation adopted under this title, or an ordinance adopted under AS 04.21.010;                               
08   (5)  conviction of an [THE] agent or employee of a licensee of a                                                   
09 violation of this title, a regulation adopted under this title, or an ordinance adopted                                 
10 under AS 04.21.010, if the licensee is found by the board to have either knowingly                                      
11 allowed the violation or to have recklessly or with criminal negligence failed to act in                                
12 accordance with the duty prescribed under AS 04.21.030 with the result that the [AN]                                  
13 agent or employee violates a law, regulation, or ordinance;                                                             
14   (6)  failure of the licensee to comply with the public health, fire, or                                             
15 safety laws and regulations [PERTAINING TO PUBLIC HEALTH] in the state;                                                
16   (7)  use of the licensed premises as a resort for illegal possessors or                                              
17 users of narcotics, prostitutes, or promoters of prostitution; in addition to any other                                 
18 legally competent evidence, the character of the premises may be proved by the                                          
19 general reputation of the premises in the community as a resort for illegal possessors                                  
20 or users of narcotics, prostitutes, or promoters of prostitution;                                                       
21   (8)  occurrence of illegal gambling within the limits of the licensed                                                
22 premises;                                                                                                               
23   (9)  the licensee permitted a [PERMITTING ANY] public offense                                                      
24 involving moral turpitude to occur on the licensed premises;                                                            
25   (10)  violation by a licensee of this title, a condition or restriction                                             
26 imposed by the board, a regulation adopted under this title, or an ordinance adopted                                   
27 under AS 04.21.010; or                                                                                                
28   (11)  violation by an agent or employee of a licensee of a provision of                                              
29 this title, a condition or restriction imposed by the board, a regulation adopted                                     
30 under this title, or an ordinance adopted under AS 04.21.010, if the licensee is found                                  
31 by the board to have either knowingly allowed the violation or to have recklessly or                                    
01 with criminal negligence failed to act in accordance with the duty prescribed under                                     
02 AS 04.21.030 with the result that the agent or employee violates the law, condition                                    
03 or restriction, regulation, or ordinance.                                                                              
04    * Sec. 19.  AS 04.11.370 is amended by adding new subsections to read:                                               
05  (b)  If the board finds that a licensee or permittee has been convicted of a                                          
06 violation of a criminal law related to gambling under AS 11.66.200 - 11.66.280, the                                     
07 board shall suspend the license or permit for a period of at least six months if the                                    
08 offense is the person's first conviction or violation and shall revoke the license or                                   
09 permit if the offense is the person's second or subsequent conviction or violation.                                     
10  (c)  If the board receives notice from the Department of Revenue that a licensee                                      
11 or permittee has violated a provision of AS 05.15 related to gambling, the board                                        
12   (1)  may suspend the license or permit; and                                                                          
13   (2)  shall suspend the license or permit for a period of at least 30 days                                            
14 if the offense is the person's second or subsequent violation of AS 05.15 related to                                    
15 gambling.                                                                                                               
16    * Sec. 20.  AS 04.11 is amended by adding a new section to read:                                                     
17  Sec. 04.11.395.  BOARD IMPOSED CONDITIONS OR RESTRICTIONS.                                                            
18 The board may, in the best interests of the public, impose conditions or restrictions on                                
19 a license or permit issued under this chapter.                                                                          
20    * Sec. 21.  AS 04.11.400(a) is amended to read:                                                                      
21  (a)  Except as provided in (d) -  (h) of this section, a new license may not be                                       
22 issued and the board may prohibit relocation of an existing license                                                     
23   (1)  outside an established village, incorporated city, unified                                                      
24 municipality, or organized borough if after the issuance or relocation there would be                                  
25 (A)  more than one restaurant or eating place license for each 1,500 population or                                     
26 fraction of that [1,500] population, or (B)  more than one license of each other type,                            
27 including licenses that have been issued under (d) or (e) of this section, for each 3,000                               
28 population or fraction of that [3,000] population, in a radius of five miles of the                                 
29 licensed premises [OR LOCATION OF PREMISES SOUGHT TO BE LICENSED],                                                      
30 excluding the populations of established villages, incorporated cities, unified                                         
31 municipalities, and organized boroughs that are wholly or partly included within the                                    
01 radius;                                                                                                                 
02   (2)  inside an established village, incorporated city, or unified                                                    
03 municipality if after the issuance or relocation there would be inside the established                                  
04 village, incorporated city, or unified municipality                                                                     
05   (A)  more than one restaurant or eating place license for each                                                    
06 1,500 population or fraction of that [1,500] population; or                                                         
07   (B)  more than one license of each other type, including licenses                                                 
08 that have been issued under (d) or (e) of this section, for each 3,000 population                                       
09 or fraction of that [3,000] population [INSIDE THE ESTABLISHED                                                        
10 VILLAGE, INCORPORATED CITY, OR UNIFIED MUNICIPALITY];                                                                   
11   (3)  inside an organized borough but outside an established village or                                               
12 incorporated city located within the borough, if after the issuance or relocation there                                 
13 would be inside the borough, but outside the established villages and incorporated                                      
14 cities located within the borough,                                                                                      
15   (A)  more than one restaurant or eating place license for each                                                    
16 1,500 population or fraction of that [1,500] population; or                                                         
17   (B)  more than one license of each other type, including licenses                                                 
18 that have been issued under (d) or (e) of this section, for each 3,000 population                                       
19 or fraction of that [3,000] population [INSIDE THE BOROUGH,] excluding                                                
20 the population of those established villages that have adopted a local option                                          
21 under AS 04.11.491(b)(1), (3), or (4) [CONDUCTED AN ELECTION ON A                                                      
22 QUESTION SET OUT IN AS 04.11.490, 04.11.496, OR 04.11.500], and                                                         
23 excluding the population of incorporated cities located within the organized                                            
24 borough.                                                                                                                
25    * Sec. 22.  AS 04.11.480(a) is amended to read:                                                                      
26  (a)  A [IF A] local governing body may [WISHES TO] protest the issuance,                                          
27 renewal, relocation, [TRANSFER OF LOCATION,] or transfer to another person of                                         
28 a license by sending [, IT SHALL FURNISH] the board and the applicant [WITH] a                                        
29 protest and the reasons for the protest within 60 [30] days of receipt from the board                                 
30 of notice of filing of the application.  A protest received after the 60-day period                                    
31 may not be accepted by the board, and in no event may a protest cause the board                                         
01 to reconsider an approved renewal, relocation, or transfer.  The local governing                                        
02 body may protest the continued operation of a license during the second year of                                         
03 the biennial license period by sending the board and the licensee a protest and the                                     
04 reasons for the protest by January 31 of the second year of the license.  The                                           
05 procedures for action on a protest of continued operation of a license are the                                          
06 same as the procedures for action on a protest of a renewal application.  The                                          
07 board shall consider a protest and testimony received at a hearing conducted under                                      
08 AS 04.11.510(b)(2) or (4) when it considers the application or continued operation,                                   
09 and the protest and the record of the hearing conducted under AS 04.11.510(b)(2) or                                     
10 (4) shall be kept [RETAINED] as part of the board's permanent record of its review                                    
11 [OF THE APPLICATION].  If an application or continued operation is protested, the                                     
12 board shall deny [MAY NOT APPROVE] the application or continued operation                                           
13 unless the board finds that the protest is arbitrary, capricious, and unreasonable.                                     
14    * Sec. 23.  AS 04.11 is amended by adding a new section to read:                                                     
15  Sec. 04.11.491.  LOCAL OPTIONS.  (a)  If a majority of the persons voting                                             
16 on the question vote to approve the option, a municipality shall adopt a local option                                   
17 to prohibit                                                                                                             
18   (1)  the sale of alcoholic beverages;                                                                                
19   (2)  the sale of alcoholic beverages except by one or more of the                                                    
20 following listed on the ballot:                                                                                         
21   (A)  a restaurant or eating place licensee;                                                                         
22   (B)  a beverage dispensary licensee;                                                                                
23   (C)  a package store licensee; or                                                                                   
24   (D)  a caterer holding a permit under AS 04.11.230 to sell                                                          
25 alcoholic beverages at a site within the municipality who is also licensed under                                        
26 a beverage dispensary license for premises outside of the municipality;                                                 
27   (3)  the sale of alcoholic beverages except on premises operated by the                                              
28 municipality and under a type of licensed premises listed on the ballot, that may                                       
29 include one or more of the following:                                                                                   
30   (A)  a restaurant or eating place license;                                                                          
31   (B)  a beverage dispensary license; or                                                                              
01   (C)  a package store license;                                                                                       
02   (4)  the sale and importation of alcoholic beverages; or                                                             
03   (5)  the sale, importation, and possession of alcoholic beverages.                                                   
04  (b)  If a majority of the persons voting on the question vote to approve the                                          
05 option, an established village shall exercise a local option to prohibit                                                
06   (1)  the sale of alcoholic beverages;                                                                                
07   (2)  the sale of alcoholic beverages except by one or more of the                                                    
08 following listed on the ballot:                                                                                         
09   (A)  a restaurant or eating place licensee;                                                                         
10   (B)  a beverage dispensary licensee;                                                                                
11   (C)  a package store licensee; or                                                                                   
12   (D)  a caterer holding a permit under AS 04.11.230 to sell                                                          
13 alcoholic beverages at a site within the established village who is also licensed                                       
14 under a beverage dispensary license for premises outside of the established                                             
15 village;                                                                                                                
16   (3)  the sale and importation of alcoholic beverages; or                                                             
17   (4)  the sale, importation, and possession of alcoholic beverages.                                                   
18  (c)  A ballot question to adopt a local option under this section must at least                                       
19 contain language substantially similar to: "Shall (name of municipality or village)                                     
20 adopt a local option to prohibit (local option under (a) or (b) of this section)? (yes or                               
21 no)."                                                                                                                   
22  (d)  The ballot for an election on the option set out in (a)(2)(A), (a)(3)(A), or                                     
23 (b)(2)(A) of this section must include a summary explanation of the authority to sell                                   
24 alcoholic beverages given to a restaurant or eating place under AS 04.11.100(a).  The                                   
25 ballot for an election on the option set out in (a)(2)(B) or (D), (a)(3)(B), or (b)(2)(B)                               
26 or (D) of this section must include a statement that a beverage dispensary license is                                   
27 commonly known as a "bar" and a summary explanation of the authority to sell                                            
28 alcoholic beverages given to a beverage dispensary licensee under AS 04.11.090(a).                                      
29 The ballot for an election on the option set out in (a)(2)(C), (a)(3)(C), or (b)(2)(C) of                               
30 this section must include a statement that a package store license is commonly known                                    
31 as a "liquor store" and a summary explanation of the authority to sell alcoholic                                        
01 beverages given to a package store licensee under AS 04.11.150(a).                                                      
02  (e)  If a municipality dissolves under AS 29.06.450(a) or (b), a local option                                         
03 adopted by the municipality under (a) of this section shall continue in effect as the                                   
04 corresponding local option under (b) of this section for an established village having                                  
05 the same perimeter as the previous boundaries of the municipality.  A license for                                       
06 premises operated by the municipality under AS 04.11.505 expires when the                                               
07 municipality dissolves.                                                                                                 
08  (f)  A municipality or established village that has adopted a local option under                                      
09 (a)(1), (2), or (3) or (b)(1) or (2) of this section may designate a site for the delivery                              
10 of alcoholic beverages to individuals in the area or a site for a person to bring                                       
11 alcoholic beverages if the alcoholic beverages are imported into the area.  This                                        
12 subsection does not apply to the delivery or importation of                                                             
13   (1)  one liter or less of distilled spirits, two liters or less of wine, or one                                      
14 gallon or less of malt beverages; or                                                                                    
15   (2)  alcoholic beverages to a premises licensed under (a)(2) - (3) or                                                
16 (b)(2) of this section.                                                                                                 
17    * Sec. 24.  AS 04.11 is amended by adding new sections to read:                                                      
18  Sec. 04.11.493.  CHANGE OF LOCAL OPTION.  (a)  If a majority of persons                                               
19 voting on the question vote to approve a different local option, a municipality or                                      
20 established village shall change a local option previously adopted under AS 04.11.491                                   
21 to the different approved option.                                                                                       
22  (b)  A ballot question to change a local option under this section must at least                                      
23 contain language substantially similar to: "Shall (name of municipality or village)                                     
24 change the local option currently in effect, that prohibits (current local option under                                 
25 AS 04.11.491), and adopt in its place a local option to prohibit (proposed local option                                 
26 under AS 04.11.491)? (yes or no)."                                                                                      
27  Sec. 04.11.495.  REMOVAL OF LOCAL OPTION.  (a)  If a majority of the                                                  
28 persons voting on the question vote to remove the option, a municipality or established                                 
29 village shall remove a local option previously adopted under AS 04.11.491.  The                                         
30 option is repealed effective the first day of the month following certification of the                                  
31 results of the election.                                                                                                
01  (b)  A ballot question to remove a local option under this section must at least                                      
02 contain language substantially similar to: "Shall (name of municipality or village)                                     
03 remove the local option currently in effect, that prohibits (current local option under                                 
04 AS 04.11.491), so that there is no longer any local option in effect? (yes or no)."                                     
05  (c)  When issuing a license in the area that has removed a local option, the                                          
06 board shall give priority to an applicant who was formerly licensed and whose license                                   
07 was not renewed because of the results of the previous local option election.  However,                                 
08 an applicant described in this subsection does not have a legal right to a license and                                  
09 the board is not required to approve the application.                                                                   
10    * Sec. 25.  AS 04.11 is amended by adding a new section to read:                                                     
11  Sec. 04.11.497.  EFFECT ON LICENSES OF PROHIBITION OF SALE.  If                                                       
12 a majority of voters vote to prohibit the sale of alcoholic beverages under                                             
13 AS 04.11.491(a)(1), (a)(4) or (5), (b)(1), or (b)(3) or (4), the board may not issue,                                   
14 renew, or transfer, between persons or locations, a license for premises located within                                 
15 the boundaries of the municipality and in unincorporated areas within five miles of the                                 
16 boundaries of the municipality or within the perimeter of the established village.  A                                   
17 license that may not be renewed because of a local option election held under this                                      
18 section is void 90 days after the results of the election are certified.  A license that                                
19 expires during the 90 days after the results of a local option election are certified may                               
20 be extended, until it is void under this section, by payment of a prorated portion of the                               
21 biennial license fee.                                                                                                   
22    * Sec. 26.  AS 04.11 is amended by adding a new section to read:                                                     
23  Sec. 04.11.499.  PROHIBITION OF IMPORTATION AFTER ELECTION.  If                                                       
24 a majority of the voters vote to prohibit the importation of alcoholic beverages under                                  
25 AS 04.11.491(a)(4) or (5) or (b)(3) or (4), a person, beginning on the first day of the                                 
26 month following certification of the results of the election, may not knowingly send,                                   
27 transport, or bring an alcoholic beverage into the municipality or established village,                                 
28 unless the alcoholic beverage is sacramental wine to be used for bona fide religious                                    
29 purposes based on tenets or teachings of a church or religious body, is limited in                                      
30 quantity to the amount necessary for religious purposes, and is dispensed only for                                      
31 religious purposes by a person authorized by the church or religious body to dispense                                   
01 the sacramental wine.                                                                                                   
02    * Sec. 27.  AS 04.11 is amended by adding a new section to read:                                                     
03  Sec. 04.11.501.  PROHIBITION OF POSSESSION AFTER ELECTION.  (a)                                                       
04 If a majority of the voters vote to prohibit the possession of alcoholic beverages under                                
05 AS 04.11.491(a)(5) or (b)(4), a person may not knowingly possess an alcoholic                                           
06 beverage in the municipality or established village, unless the alcoholic beverage is                                   
07 sacramental wine to be used for bona fide religious purposes based on tenets or                                         
08 teachings of a church or religious body, is limited in quantity to the amount necessary                                 
09 for religious purposes, and is dispensed only for religious purposes, by a person                                       
10 recognized by the church or religious body as authorized to dispense the wine.                                          
11  (b)  If there are licensed premises within the municipality or established village,                                   
12 the prohibition on possession is effective beginning 90 days after the results of the                                   
13 election are certified.  If there are no licensed premises within the municipality or                                   
14 established village, the prohibition on possession is effective beginning 60 days after                                 
15 the results of the election are certified.                                                                              
16  (c)  Upon the adoption by a municipality of a local option under                                                      
17 AS 04.11.491(a)(5), an ordinance is adopted containing the provisions of this section.                                  
18  (d)  In this section, "possession" means having physical possession of or                                             
19 exercising dominion or control over an alcoholic beverage, but does not include having                                  
20 an alcoholic beverage within the digestive system of a person.                                                          
21    * Sec. 28.  AS 04.11 is amended by adding a new section to read:                                                     
22  Sec. 04.11.503.  EFFECT ON LICENSES OF RESTRICTION ON SALE.  If                                                       
23 a majority of the voters vote under AS 04.11.491(a)(2) or (b)(2) to prohibit sale of                                    
24 alcoholic beverages except by the type or types of licensees or permit holders listed                                   
25 on the ballot, the board may not issue, renew, or transfer between persons or locations                                 
26 a license for premises located within the boundaries of the municipality and in                                         
27 unincorporated areas within five miles of the boundaries of the municipality or within                                  
28 the perimeter of the established village, except the type or types of licenses listed on                                
29 the ballot.  A license in effect within the boundaries of the municipality or perimeter                                 
30 of the established village, and in unincorporated areas within five miles of the                                        
31 boundaries of the municipality, except the type of license listed on the ballot, is void                                
01 90 days after the results of the election are certified.  A license that expires during the                             
02 90 days after the results of a local option election are certified may be extended, until                               
03 it is void under this section, by payment of a prorated portion of the biennial license                                 
04 fee.                                                                                                                    
05    * Sec. 29.  AS 04.11 is amended by adding a new section to read:                                                     
06  Sec. 04.11.505.  LICENSING AFTER PROHIBITION ON SALE EXCEPT IN                                                        
07 PREMISES OPERATED BY MUNICIPALITY.  (a)  If a majority of the voters vote                                               
08 under AS 04.11.491(a)(3) to prohibit the sale of alcoholic beverages except on                                          
09 premises operated by the municipality, the board may not issue, renew, or transfer                                      
10 between persons or locations a license for premises located within the boundaries of                                    
11 a municipality and in unincorporated areas within five miles of the boundaries of the                                   
12 municipality, with the exception of the type of license listed on the ballot and operated                               
13 under a license held by the municipality.  A license in effect is void 90 days after the                                
14 results of the election are certified.  A license that expires during the 90 days after the                             
15 results of a local option election are certified may be extended, until it is void under                                
16 this subsection, by payment of a prorated portion of the biennial license fee.                                          
17  (b)  The local governing body of a municipality shall apply for a license to                                          
18 operate the type of licensed premises listed on the ballot under AS 04.11.491(a)(3) and                                 
19 approved by a majority of the voters.  The municipality shall operate the premises                                      
20 subject to the conditions and fees applicable to the type of license.  Nothing in this                                  
21 section precludes a municipality from applying to be a licensee under other provisions                                  
22 of this title.                                                                                                          
23    * Sec. 30.  AS 04.11 is amended by adding new sections to read:                                                      
24  Sec. 04.11.507.  PROCEDURE FOR LOCAL OPTION ELECTIONS.  (a)                                                           
25 Elections to adopt a local option under AS 04.11.491, change a local option under                                       
26 AS 04.11.493, or remove a local option under AS 04.11.495, shall be conducted as                                        
27 required in this section.                                                                                               
28  (b)  Upon receipt of a petition of a number of registered voters equal to 35                                          
29 percent or more of the number of votes cast at the last regular municipal election, the                                 
30 local governing body of a municipality shall place upon a separate ballot at the next                                   
31 regular election, or at a special election, whichever local option, change in local option,                             
01 or removal of local option constitutes the subject of the petition.  The local governing                                
02 body shall conduct the election under the election ordinance of the municipality.                                       
03  (c)  Upon receipt of a petition of 35 percent or more of the registered voters                                        
04 residing within an established village, the lieutenant governor shall place upon a                                      
05 separate ballot at a special election the local option, change in local option, or removal                              
06 of local option that constitutes the subject of the petition.  The lieutenant governor                                  
07 shall conduct the election under AS 15.                                                                                 
08  (d)  A petition filed with the local governing body of a municipality under (b)                                       
09 of this section, that places on the ballot the option set out in AS 04.11.491(a)(5),                                    
10 constitutes a proposed ordinance of the municipality.                                                                   
11  (e)  AS 29.26.110 - 29.26.160 apply to a petition under (b) of this section in                                        
12 a general law municipality except the                                                                                   
13   (1)  number of required signatures is determined under (b) of this                                                   
14 section rather than under AS 29.26.130;                                                                                 
15   (2)  application filed under AS 29.26.110 must at least contain language                                             
16 substantially similar to the questions set out under AS 04.11.491 - 04.11.495 rather                                    
17 than containing an ordinance or resolution;                                                                             
18   (3)  petition must at least contain language substantially similar to the                                            
19 questions set out under AS 04.11.491 - 04.11.495 rather than material required under                                    
20 AS 29.26.120(a)(1) and (2).                                                                                             
21  (f)  Notwithstanding any other provisions of law, an election under (b) or (c)                                        
22 of this section to remove a local option or to change to a less restrictive option than                                 
23 the local option previously adopted under AS 04.11.491 may not be conducted during                                      
24 the first 12 months after the local option was adopted or more than once in an                                          
25 18-month period.                                                                                                        
26  (g)   Notwithstanding AS 29.26.140(a), after a petition has been certified as                                         
27 sufficient to meet the requirements of (b) or (c) of this section, another petition may                                 
28 not be filed or certified until after the question presented in the first petition has been                             
29 voted on.  Only one local option question may be presented in an election.                                              
30  Sec. 04.11.509.  NOTICE OF THE RESULTS OF A LOCAL OPTION                                                              
31 ELECTION.  (a)  If a majority of the voters vote to prohibit, change, or remove a                                       
01 local option under AS 04.11.491 - 04.11.495, the clerk of the municipality, or, if the                                  
02 election is in an established village, the lieutenant governor shall notify the board of                                
03 the results of the election immediately after the results are certified.  The board shall                               
04 immediately notify the Department of Law and the Department of Public Safety of the                                     
05 results of the election.                                                                                                
06  (b)  If a majority of the voters vote to prohibit the importation or possession                                       
07 of alcoholic beverages under AS 04.11.491(a)(4) or (5) or (b)(3) or (4), the following                                  
08 actions in addition to those prescribed in (a) of this section shall be taken before the                                
09 date the prohibition becomes effective:                                                                                 
10   (1)  the board shall notify, by certified mail, all package store licensees                                          
11 who sell alcoholic beverages in response to a written solicitation of the local option;                                 
12 and                                                                                                                     
13   (2)  the municipality or established village shall post public notice of                                             
14 the prohibition in a central location in the municipality or village.                                                   
15    * Sec. 31.  AS 04.11.540 is amended to read:                                                                         
16  Sec. 04.11.540.  LICENSE RENEWAL AND EXPIRATION.  Notwithstanding                                                     
17 AS 04.11.680, an application for renewal of a license issued for the two calendar years                             
18 [YEAR] ending December 31 or of a seasonal license issued for parts of those                                         
19 calendar years [A SIX-MONTH PERIOD ENDING IN THE PREVIOUS YEAR] may                                                    
20 be submitted up until the next February 28 [, BUT THE AUTHORITY GRANTED                                                 
21 UNDER THE LICENSE MAY NOT BE EXERCISED UNTIL THE LICENSE IS                                                             
22 RENEWED].  If a complete [THE] application for renewal has [AND APPLICABLE                                          
23 AFFIDAVITS HAVE] not been filed by February 28 or the required fees and the                                             
24 penalty fees have not been paid by that date, the license expires at 12:00 midnight                                     
25 February 28.  A new license may not be issued to the holder of an expired license for                                   
26 the same premises except on proof satisfactory to the board of good cause for the                                       
27 failure to file and pay.                                                                                                
28    * Sec. 32.  AS 04.11.680(a) is amended to read:                                                                      
29  (a)  Upon application and payment of one-half [ONE-QUARTER] of the                                                  
30 biennial fee, the board may issue a seasonal license under this title that is [WILL BE]                             
31 effective for the intervals stated on the license.  A seasonal license may not be                                      
01 effective for more than 12 months in a two-year period [A CONTINUOUS SIX-MONTH PERIOD].  Otherwise,                    
02 all licenses issued under this title other than a retail                                                                
03 stock sale license are effective for the two calendar years ending December 31, unless                                  
04 a shorter period is prescribed by the board or by law.                                                                  
05    * Sec. 33.  AS 04.16 is amended by adding a new section to read:                                                     
06  Sec. 04.16.025.  ILLEGAL PRESENCE ON PREMISES INVOLVING                                                               
07 ALCOHOLIC BEVERAGES.  (a)  A person may not knowingly enter or remain on                                                
08 premises                                                                                                                
09                 (1)  in which alcoholic beverages are manufactured, sold, offered for                                  
10 sale, possessed for sale or barter, trafficked in, or bartered in violation of                                          
11                (A)  AS 04.11.010; or                                                                                  
12                (B)  a municipal ordinance adopted under AS 04.21.010(a) or                                            
13 (b); or                                                                                                                 
14   (2)  licensed under this title during hours in which the person's presence                                           
15 on the premises is a violation of a municipal ordinance adopted under authority of                                      
16 AS 04.16.010(d) providing for hours of closure that are outside the hours of closure                                    
17 prescribed by AS 04.16.010(c).                                                                                          
18  (b)  A person who violates this section is guilty of a violation.                                                     
19    * Sec. 34.  AS 04.16.110 is repealed and reenacted to read:                                                          
20  Sec. 04.16.110.  SALE OF CERTAIN ALCOHOLIC BEVERAGES                                                                  
21 PROHIBITED.  A person may not sell an alcoholic beverage if it                                                          
22   (1)  is intended for human consumption and is in powdered form; or                                                   
23   (2)  contains more than 76 percent alcohol by volume.                                                                
24    * Sec. 35.  AS 04.16.125(a) is amended to read:                                                                      
25  (a)  A person may not use a common carrier to transport alcoholic beverages                                           
26 into an area that has restricted the sale of alcoholic beverages under                                                 
27 AS 04.11.491(a)(1), (2), or (3) or (b)(1) or (2) [AS 04.11.490, 04.11.492, OR                                          
28 04.11.500] unless                                                                                                       
29   (1)  the shipping container holding the alcoholic beverages is clearly                                               
30 labeled as containing alcoholic beverages with letters that contrast in color to the                                    
31 shipping container and that are at least two inches in height; and                                                      
01   (2)  an itemized invoice showing the quantity and purchase value of                                               
02 distilled spirits, of wine, and of malt [THE ALCOHOLIC] beverages is attached to                                       
03 the outside of the shipping container.                                                                                  
04    * Sec. 36.  AS 04.16.125(b) is amended to read:                                                                      
05  (b)  This section does not apply to                                                                                   
06   (1)  a person transporting not more than                                                                           
07   (A)  two liters of wine;                                                                                        
08   (B)  one gallon of [OR] malt beverages; [,] or                                                                  
09   (C)  [NOT MORE THAN] one liter of distilled spirits; or                                                          
10   (2)  the transportation of alcoholic beverages for use on premises                                                   
11 allowed under AS 04.11.491(a)(2) - (3) or (b)(2) or for use under a permit allowed                                      
12 under AS 04.11.491(a)(2).                                                                                              
13    * Sec. 37.  AS 04.16.180(a) is amended to read:                                                                      
14   (a)  Except as provided in AS 04.11.015, AS 04.16.025, 04.16.051                                                   
15 [AS 04.16.051], 04.16.200 - 04.16.210, and AS 04.21.065, a person who violates a                                        
16 provision of this title or a regulation adopted by the board is guilty, upon conviction,                                
17 of a class A misdemeanor.  Each violation is a separate offense.                                                        
18    * Sec. 38.  AS 04.16.200(b) is amended to read:                                                                      
19  (b)  A person who violates AS 04.11.010 in an area that has adopted                                                 
20 [WHERE THE RESULTS OF] a local option under AS 04.11.491 [ELECTION                                                    
21 HAVE, UNDER AS 04.11.490 -  04.11.500, PROHIBITED THE BOARD FROM                                                        
22 ISSUING, RENEWING, OR TRANSFERRING ONE OR MORE TYPES OF                                                                 
23 LICENSES OR PERMITS UNDER THIS TITLE IN THE AREA] is, upon conviction,                                                  
24 guilty of a class C felony.                                                                                             
25    * Sec. 39.  AS 04.16.200(e) is amended to read:                                                                      
26  (e)  A person who sends, transports, or brings alcoholic beverages into a                                             
27 municipality or established village in violation of AS 04.11.499 [AS 04.11.496] is,                                   
28 upon conviction,                                                                                                        
29   (1)  guilty of a class A misdemeanor if the quantity imported is less                                                
30 than 12 liters of distilled spirits, 24 liters of wine, or 12 gallons [45 LITERS] of malt                             
31 beverages; or                                                                                                           
01   (2)  guilty of a class C felony if the quantity imported is 12 liters or                                             
02 more of distilled spirits, 24 liters or more of wine, or 12 gallons [45 LITERS] or more                               
03 of malt beverages.                                                                                                      
04    * Sec. 40.  AS 04.16.205(a) is amended to read:                                                                      
05  (a)  A person who possesses alcoholic beverages in a municipality or                                                  
06 established village in violation of AS 04.11.501 [AS 04.11.498] or an ordinance                                       
07 adopted under AS 04.11.501 [AS 04.11.498] may, upon conviction, be punished by a                                      
08 fine not to exceed $1,000 and shall forfeit the seized alcoholic beverages.  When a                                   
09 peace officer stops or contacts a person concerning a violation of AS 04.11.501                                       
10 [AS 04.11.498] or an ordinance adopted [ENACTED] under AS 04.11.501                                                 
11 [AS 04.11.498], the peace officer shall seize the alcoholic beverages and may [, IN                                   
12 THE OFFICER'S DISCRETION,] issue a citation to the person as provided in                                                
13 AS 12.25.180.                                                                                                           
14    * Sec. 41.  AS 04.16.205(b) is amended to read:                                                                      
15  (b)  A person cited for a violation of AS 04.11.501 [AS 04.11.498] or an                                            
16 ordinance adopted under AS 04.11.501 [AS 04.11.498] for which a bail amount has                                       
17 been established under (c) of this section may, within 30 days after the date the                                       
18 citation is issued,                                                                                                     
19   (1)  mail or personally deliver to the clerk of the court in which the                                               
20 citation is filed by the peace officer the amount of bail indicated on the citation and                                 
21 a copy of the citation indicating that the right to an appearance is waived, a plea of no                               
22 contest is entered, and the bail and all alcoholic beverages seized are forfeited; or                                   
23   (2)  perform community work in lieu of payment of the fine or a portion                                              
24 of the fine as provided in (d) of this section.                                                                         
25    * Sec. 42.  AS 04.16.205(c) is amended to read:                                                                      
26  (c)  The supreme court shall establish by rule or order a schedule of bail                                            
27 amounts that may be forfeited without a court appearance for a violation of                                            
28 AS 04.11.501 [AS 04.11.498] or an ordinance adopted under AS 04.11.501                                               
29 [AS 04.11.498].  In establishing the bail schedule the supreme court may consider the                                   
30 quantity of alcoholic beverages possessed and the number of prior violations of the                                     
31 person cited. Before establishing or amending the schedule of bail amounts required                                     
01 by this subsection, the supreme court shall appoint and consult with an advisory                                        
02 committee consisting of the following seven persons:  one superior court judge, one                                     
03 magistrate from each judicial district in the state, a representative of the Department                                 
04 of Law, and a representative of the Public Defender Agency.  The maximum bail                                           
05 amount may not exceed $1,000, and the issuing officer shall write on the citation the                                   
06 amount of bail applicable to the violation.                                                                             
07    * Sec. 43.  AS 04.16.205(d) is amended to read:                                                                      
08  (d)  Community work shall be performed at the direction of the local governing                                      
09 body of the municipality or the local governing body of the established village.  In the                             
10 absence of a local governing body for an established village, community work                                            
11 shall be performed at the direction of the body that has traditionally performed                                        
12 public functions on behalf of the entire community.  The value of community work                                       
13 in lieu of a fine is $5.00 per hour.  When the community work is completed, the                                         
14 person cited for the violation shall mail or personally deliver to the clerk of the court                               
15 in which the citation is filed by the peace officer                                                                     
16   (1)  a form, prescribed by the administrative director of the Alaska                                                 
17 Court System, indicating completion of the community work; and                                                          
18   (2)  a copy of the citation, indicating that the right to an appearance is                                           
19 waived, a plea of no contest is entered, and that the bail is forfeited or community                                    
20 work has been performed and that all alcoholic beverages seized are forfeited.                                          
21    * Sec. 44.  AS 04.16.205(g) is amended to read:                                                                      
22  (g)  Notwithstanding other provisions of law, if a person cited for a violation                                       
23 of AS 04.11.501 [AS 04.11.498] or an ordinance adopted under AS 04.11.501                                           
24 [AS 04.11.498] for which a bail amount has been established under (c) of this section                                   
25 appears in court and is found guilty, the penalty that is imposed for the offense may                                   
26 not exceed the bail amount for that offense established under (c) of this section.                                      
27    * Sec. 45.  AS 04.16.205(h) is amended to read:                                                                      
28  (h)  A violation of AS 04.11.501 [AS 04.11.498] or an ordinance adopted under                                      
29 AS 04.11.501 [AS 04.11.498] may not be considered a criminal offense and may not                                       
30 result in imprisonment, nor is a fine imposed for a violation considered criminal                                       
31 punishment.  A person cited for a violation does not have a right to a jury trial or                                    
01 court appointed counsel.                                                                                                
02    * Sec. 46.  AS 04.16.220(a) is amended to read:                                                                      
03  (a)  The following are subject to forfeiture:                                                                         
04   (1)  alcoholic beverages manufactured, sold, offered for sale or                                                     
05 possessed for sale, bartered or exchanged for goods and services in this state in                                       
06 violation of AS 04.11.010; alcoholic beverages possessed, stocked, warehoused, or                                       
07 otherwise stored in violation of AS 04.21.060; alcoholic beverages sold, or offered for                                 
08 sale in violation [IN AN AREA WHERE THE RESULTS] of a local option adopted                                           
09 under AS 04.11.491 [ELECTION HAVE, UNDER AS 04.11.490 - 04.11.500,                                                     
10 PROHIBITED THE POSSESSION OF ALCOHOLIC BEVERAGES OR                                                                     
11 PROHIBITED THE BOARD FROM ISSUING, RENEWING, OR TRANSFERRING                                                            
12 ONE OR MORE LICENSES OR PERMITS UNDER THIS TITLE IN THE AREA];                                                          
13 alcoholic beverages transported into the state and sold to persons not licensed under                                   
14 this chapter in violation of AS 04.16.170(b);                                                                           
15   (2)  materials and equipment used in the manufacture, sale, offering for                                             
16 sale, possession for sale, barter or exchange of alcoholic beverages for goods and                                      
17 services in this state in violation of AS 04.11.010; materials and equipment used in the                                
18 stocking, warehousing, or storage of alcoholic beverages in violation of AS 04.21.060;                                  
19 materials and equipment used in the sale or offering for sale of an alcoholic beverage                                  
20 in an area in violation [WHERE THE RESULTS] of a local option adopted under                                          
21 AS 04.11.491 [ELECTION HAVE, UNDER AS 04.11.490 - 04.11.500, PROHIBITED                                                
22 THE BOARD FROM ISSUING, RENEWING, OR TRANSFERRING ONE OR                                                                
23 MORE LICENSES OR PERMITS UNDER THIS TITLE IN THE AREA];                                                                 
24   (3)  aircraft, vehicles, or vessels used to transport, or facilitate the                                             
25 transportation of                                                                                                       
26   (A)  alcoholic beverages manufactured, sold, offered for sale or                                                    
27 possessed for sale, bartered or exchanged for goods and services in this state                                          
28 in violation of AS 04.11.010;                                                                                           
29   (B)  property stocked, warehoused, or otherwise stored in                                                           
30 violation of AS 04.21.060;                                                                                              
31   (C)  alcoholic beverages imported into a municipality or                                                            
01 established village in violation of AS 04.11.499 [AS 04.11.496];                                                      
02   (4)  alcoholic beverages found on licensed premises that do not bear                                                 
03 federal excise stamps if excise stamps are required under federal law;                                                  
04   (5)  alcoholic beverages, materials or equipment used in violation of                                                
05 AS 04.16.175.                                                                                                           
06    * Sec. 47.  AS 04.16.220(b) is amended to read:                                                                      
07  (b)  Property subject to forfeiture under this section may be actually or                                             
08 constructively seized under an order issued by the superior court upon a showing of                                     
09 probable cause that the property is subject to forfeiture under this section. Constructive                              
10 seizure is effected upon posting a signed notice of seizure on the item to be forfeited,                                
11 stating the violation and the date and place of seizure. Seizure without a court order                                  
12 may be made if                                                                                                          
13   (1)  the seizure is incident to a valid arrest or search;                                                            
14   (2)  the property subject to seizure is the subject of a prior judgment in                                           
15 favor of the state; or                                                                                                  
16   (3)  there is probable cause to believe that the property is subject to                                              
17 forfeiture under (a) of this section; except for alcoholic beverages possessed on                                       
18 violation of AS 04.11.501 [AS 04.11.498] or an ordinance adopted under AS 04.11.501                                 
19 [AS 04.11.498], property seized under this paragraph may not be held over 48 hours                                      
20 or until an order of forfeiture is issued by the court, whichever is earlier.                                           
21    * Sec. 48.  AS 04.16.220(d) is amended to read:                                                                      
22  (d)  Property subject to forfeiture under (a) of this section may be forfeited                                        
23   (1)  upon conviction of a person for a violation of [UNDER]                                                        
24 AS 04.11.010, 04.11.499, [04.11.496(b), OR] AS 04.21.060, or AS 04.11.501 [UPON                                   
25 ENTRY OF JUDGMENT UNDER AS 04.11.498] or an ordinance adopted under                                                    
26 AS 04.11.501 [AS 04.11.498]; or                                                                                      
27   (2)  upon judgment by the superior court in a proceeding in rem that the                                             
28 property was used in a manner subjecting it to forfeiture under (a) of this section.                                    
29    * Sec. 49.  AS 04.16.220(g) is amended to read:                                                                      
30  (g)  It is no defense in an in rem forfeiture proceeding brought under (d)(2) of                                      
31 this section that a criminal proceeding is pending or has resulted in conviction or                                     
01 acquittal of a person charged with violating AS 04.11.010, 04.11.499 [04.11.496(b)],                                  
02 or AS 04.21.060.                                                                                                        
03    * Sec. 50.  AS 04.16.220(h) is amended to read:                                                                      
04  (h)  Alcoholic beverages forfeited under (d) of this section shall be placed in                                       
05 the custody of a peace officer of the state and destroyed no later than 30 days after                                   
06 forfeiture.  All other property forfeited under this section shall be placed in the custody                             
07 of the commissioner of public safety for disposition according to an order entered by                                   
08 the court.  The court shall order destroyed any property forfeited under this section that                              
09 is harmful to the public and shall order any property forfeited under this section                                     
10 that was seized in a municipality to be transferred to the municipality in which                                        
11 the property was seized.  Other property shall be ordered sold and the proceeds used                                   
12 for payment of expenses of the proceedings for forfeiture and sale, including expenses                                  
13 of seizure, custody, and court costs.  The remainder of the proceeds shall be deposited                                 
14 in the general fund.                                                                                                    
15    * Sec. 51.  AS 04.21.010(a) is amended to read:                                                                      
16  (a)  A municipality may adopt ordinances governing the importation, barter,                                           
17 sale, and consumption of alcoholic beverages within the municipality and may ban                                        
18 possession of alcoholic beverages under AS 04.11.491(a)(5) [AS 04.11.498(d) OR (e)].                                  
19 An ordinance adopted under this section may not be inconsistent with this title or                                      
20 regulations adopted under this title.  In a municipality that has adopted a local                                      
21 option under AS 04.11.491(a)(1), (2), or (3), an ordinance is not inconsistent with                                     
22 this title if it limits                                                                                                 
23   (1)  the monthly amounts of alcoholic beverages a person may                                                         
24 import into the municipality;                                                                                           
25   (2)  the percent of alcohol by volume that an alcoholic beverage may                                                 
26 contain; a limit imposed under this paragraph may not be less than 40 nor more                                          
27 than 76 percent alcohol by volume; or                                                                                   
28   (3)  the type of alcoholic beverage container that may be possessed                                                  
29 in the municipality.                                                                                                   
30    * Sec. 52.  AS 04.21.010(b) is amended to read:                                                                      
31  (b)  After the adoption of a local option under AS 04.11.491(a), a [IF, AS A                                        
01 RESULT OF AN ELECTION HELD IN ACCORDANCE WITH AS 04.11.502 IN A                                                         
02 MUNICIPALITY, THE BOARD IS PROHIBITED FROM ISSUING, RENEWING,                                                           
03 OR TRANSFERRING A LICENSE BETWEEN HOLDERS OR LOCATIONS OR IF                                                            
04 THE IMPORTATION OF ALCOHOLIC BEVERAGES IS PROHIBITED IN THE                                                             
05 MUNICIPALITY, THE] municipality may adopt an ordinance making the sale, [OR]                                          
06 importation, or possession of alcoholic beverages a misdemeanor to the extent                                        
07 prohibited under the local option.  The ordinance may not be inconsistent with this                                    
08 title or the regulations adopted under this title.                                                                      
09    * Sec. 53.  AS 04.21.010(c) is amended to read:                                                                      
10  (c)  A municipality may not impose taxes on alcoholic beverages except a                                              
11   (1)  property tax on alcoholic beverage inventories;                                                                 
12   (2)  sales tax on alcoholic beverage sales if sales taxes are imposed on                                             
13 other sales within the municipality;                                                                                    
14   (3)  sales tax on alcoholic beverage sales that was in effect before                                                 
15 July 1, 1985; and                                                                                                       
16   (4)  sales and use tax on alcoholic beverages if the sale of alcoholic                                               
17 beverages within the municipality has been prohibited under AS 04.11.491(a)(1), (4),                                   
18 or (5) [AS 04.11.490].                                                                                                 
19    * Sec. 54.  AS 04.21.015(b) is amended to read:                                                                      
20  (b)  This section does not apply to AS 04.16.050, 04.16.051, 04.16.080;                                               
21 AS 04.21.010, 04.21.020; alcoholic beverages manufactured in a quantity that exceeds                                    
22 the limit imposed on private manufacture under federal law; or an area that has                                         
23 adopted a local option law under AS 04.11.491 [AS 04.11.490 - 04.11.500].                                             
24    * Sec. 55.  AS 04.21.025(a) is amended to read:                                                                      
25  (a)  As a condition of issuance or renewal of a license and selling alcoholic                                         
26 beverages under a license, the board shall require a licensee who sells or serves                                       
27 alcoholic beverages and a licensee's agents and employees who sell or serve alcoholic                                   
28 beverages or check the identification of a patron to complete an alcohol server                                       
29 education course approved by the board, if the license is for a                                                         
30   (1)  beverage dispensary;                                                                                            
31   (2)  restaurant or eating place;                                                                                     
01   (3)  club;                                                                                                           
02   (4)  package store;                                                                                                  
03   (5)  [COMMON CARRIER DISPENSARY;                                                                                     
04   (6)]  recreational site;                                                                                             
05   (6) [(7)  COMMUNITY;                                                                                               
06   (8)]  pub;                                                                                                           
07   (7) [(9)]  conditional contractor.                                                                                 
08    * Sec. 56.  AS 04.21.025 is amended by adding a new subsection to read:                                              
09  (e)  A person licensed as a common carrier dispensary shall train agents and                                          
10 employees who sell or serve alcoholic beverages or who check the identification of a                                    
11 patron on provisions of state law regarding sale of alcoholic beverages, including                                      
12 AS 04.16.015, 04.16.020, 04.16.030, 04.16.051, 04.16.052, 04.16.120, 04.16.125,                                         
13 AS 04.21.030, and 04.21.050.  The training must include the subjects of the effects of                                  
14 alcohol consumption, identifying a drunken person, determining valid identification,                                    
15 intervention to prevent unlawful alcohol consumption, and penalties for unlawful acts                                   
16 by agents and employees of licensees.  A common carrier licensee shall, once every                                      
17 three years, provide the board with a description of its training program including the                                 
18 subjects taught, teaching method, and testing required.                                                                 
19    * Sec. 57.  AS 04.21.065(a) is amended to read:                                                                      
20  (a)  A holder of one of the following types of licenses or permits shall post on                                      
21 the licensed or designated premises two separate warning signs as described in (b) of                                   
22 this section:                                                                                                           
23   (1)  beverage dispensary license;                                                                                    
24   (2)  restaurant or eating place license;                                                                             
25   (3)  club license;                                                                                                   
26   (4)  brewery license; this paragraph applies only to a brewery that                                                  
27 permits a person to sample portions of the brewery's product;                                                           
28   (5)  package store license;                                                                                          
29   (6)  common carrier dispensary license;                                                                              
30   (7)  recreational site license;                                                                                      
31   (8)  [COMMUNITY LIQUOR LICENSE;                                                                                      
01    (9)]  pub license;                                                                                                  
02   (9) [(10)]  winery license; this paragraph applies only to a winery that                                           
03 permits a person to sample portions of the winery's product;                                                            
04   (10) [(11)]  caterer's permit;                                                                                     
05   (11) [(12)]  special events permit;                                                                                
06   (12) [(13)]  conditional contractor's permit;                                                                      
07   (13) [(14)]  another license or permit issued by the board authorizing                                             
08 consumption of alcoholic beverages.                                                                                     
09    * Sec. 58.  AS 04.21.080(b)(1) is amended to read:                                                                   
10   (1)  "alcoholic beverage" means a spirituous, vinous, malt, or other                                                 
11 fermented or distilled liquid, whatever the origin, that is intended for human                                          
12 consumption as a beverage and that contains one-half of one percent or more of                                          
13 alcohol by volume, whether produced commercially or privately; however, in an area                                      
14 that has adopted a local option under AS 04.11.491 [LOCAL-OPTION                                                      
15 PROHIBITION UNDER AS 04.11.490 - 04.11.500], "alcoholic beverage" means a                                               
16 spirituous, vinous, malt, or other fermented or distilled liquid, whatever the origin, that                             
17 is intended for human consumption as a beverage by the person who possesses or                                         
18 attempts to possess it and that contains alcohol in any amount if the liquid is                                        
19 produced privately, or that contains one-half of one percent or more of alcohol by                                      
20 volume, if the liquid is produced commercially;                                                                         
21    * Sec. 59.  AS 04.21.080(b)(9) is amended to read:                                                                   
22   (9)  "established village" means an area that does not contain any                                                  
23 part of an incorporated city or another established village and that is                                                
24   (A)  an unincorporated community that is in the unorganized                                                         
25 borough and that has 25 or more permanent residents; or                                                                 
26   (B)  an unincorporated community that is in an organized                                                            
27 borough, has 25 or more permanent residents, and                                                                        
28   (i)  is on a road system and is located more than 50                                                               
29 miles outside the boundary limits of a unified municipality, or                                                         
30   (ii)  is not on a road system and is located more than 15                                                          
31 miles outside the boundary limits of a unified municipality;                                                            
01    * Sec. 60.  AS 05.15 is amended by adding a new section to article 1 to read:                                        
02  Sec. 05.15.097.   NOTICE TO THE ALCOHOLIC BEVERAGE CONTROL                                                            
03 BOARD.  If, after notice and hearing, the department determines that a person has                                       
04 violated a provision of this chapter related to gambling and the person is a licensee or                                
05 permittee under AS 04, the department shall provide notice of the violation to the                                      
06 Alcoholic Beverage Control Board.                                                                                       
07    * Sec. 61.  AS 15.07.064(g) is amended to read:                                                                      
08  (g)  In this section, "established village"  means an unincorporated                                                 
09 community that is in                                                                                                   
10   (A)  the unorganized borough and that has 25 or more                                                               
11 permanent residents; or                                                                                                 
12   (B)  an organized borough, has 25 or more permanent                                                                 
13 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                                                             
17 15 miles outside the boundary limits of a unified municipality                                                         
18 [HAS THE MEANING GIVEN IN AS 04.21.080].                                                                                
19    * Sec. 62.  AS 18.65.085(a) is amended to read:                                                                      
20  (a)  There is established in the Department of Public Safety, division of state                                       
21 troopers, a narcotic drugs and alcohol enforcement unit for the purpose of investigating                                
22 and combating the illicit sale and distribution of narcotic drugs and alcoholic beverages                               
23 in the state. Enforcement of the alcoholic beverage control laws shall focus primarily                                  
24 on the investigation, apprehension,  and conviction of persons who violate                                              
25 AS 04.11.010 by selling, importing, or possessing alcoholic beverages in violation of                                  
26 a local option [AN ORDINANCE] adopted by a municipality or established village                                         
27 under AS 04.11.491 [AS 04.11.490 - 04.11.500].                                                                        
28    * Sec. 63.  AS 18.65.085(c) is amended to read:                                                                      
29  (c)  The Department of Public Safety may establish and administer a reward                                            
30 program, and provide grants to municipalities, established villages, and, at the request                                
31 of a municipality or established village, to a nonprofit association that administers a                                 
01 village public safety officer program, for reward programs  leading to the apprehension                                 
02 and conviction of persons who violate AS 04.11.010 by selling, importing, or                                            
03 possessing alcoholic beverages in violation of a local option [AN ORDINANCE]                                          
04 adopted by a municipality or established village under AS 04.11.491 [AS 04.11.490                                     
05 - 04.11.500].                                                                                                           
06    * Sec. 64.  AS 29.20.270(e) is amended to read:                                                                      
07  (e)  The veto does not extend to an ordinance adopted under AS 04.11.501                                            
08 [AS 04.11.498].  This subsection applies to home rule and general law municipalities.                                   
09    * Sec. 65.  AS 29.25.020(d) is amended to read:                                                                      
10  (d)  This section does not apply to an ordinance proposed under                                                      
11 AS 04.11.507(d) [AS 04.11.502(c)].                                                                                     
12    * Sec. 66.  AS 29.25.070(d) is amended to read:                                                                      
13  (d)  This section does not apply to an ordinance adopted under AS 04.11.501(c)                                      
14 [AS 04.11.498(d) OR (e)].                                                                                               
15    * Sec. 67.  AS 29.35.080(a) is amended to read:                                                                      
16  (a)  A municipality may regulate the possession, barter, sale, importation, and                                       
17 consumption of alcoholic beverages under AS 04.11.480 - 04.11.509 [IN                                                 
18 ACCORDANCE WITH AS 04.11.480  - 04.11.506] and AS 04.21.010.                                                            
19    * Sec. 68.  AS 34.03.360(6) is amended to read:                                                                      
20   (6)  "illegal activity involving alcoholic beverages" means a person's                                               
21 delivery of an alcoholic beverage in violation of AS 04.11.010(b) in an area where the                                  
22 results of a local option election have, under AS 04.11.491 [AS 04.11.490 -                                           
23 04.11.500], prohibited the Alcoholic Beverage Control Board from issuing, renewing,                                     
24 or transferring a liquor license or permit under AS 04;                                                                 
25     * Sec. 69.  AS 47.37.045(e) is amended to read:                                                                     
26  (e)  In this section,                                                                                                 
27   (1)  "established village" means an unincorporated community that                                                   
28 is in                                                                                                                   
29   (A)  the unorganized borough and that has 25 or more                                                                
30 permanent residents; or                                                                                                 
31   (B)  an organized borough, has 25 or more permanent                                                                 
01 residents, and                                                                                                          
02   (i)  is on a road system and is located more than 50                                                               
03 miles outside the boundary limits of a unified municipality, or                                                         
04   (ii)  is not on a road system and is located more than                                                             
05 15 miles outside the boundary limits of a unified municipality                                                         
06 [HAS THE MEANING GIVEN IN AS 04.21.080(b)];                                                                             
07   (2)  "local governing body" has the meaning given in AS 04.21.080(b);                                                
08   (3)  "nonprofit organization" means an organization that qualifies for                                               
09 exemption from taxation under 26 U.S.C. 501(c)(3) or (4) (Internal Revenue Code).                                       
10    * Sec. 70.  AS 04.11.090(c), 04.11.190, 04.11.490, 04.11.492, 04.11.496, 04.11.498,                                  
11 04.11.500, 04.11.502, 04.11.504, 04.11.506, and 04.11.510(d) are repealed.                                              
12    * Sec. 71.  TRANSITION:  LOCAL OPTIONS EARLIER ADOPTED.  Notwithstanding                                             
13 the provisions of this Act, local options adopted by an area under AS 04.11.490, 04.11.492,                             
14 04.11.496, 04.11.498, or 04.11.500 or previous local option laws before the effective date of                           
15 this Act shall continue in effect until changed under AS 04.11.493 or removed under                                     
16 AS 04.11.495.  References in this Act to local option elections conducted under AS 04.11.491,                           
17 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                              
18 are to be interpreted to include local option elections conducted under AS 04.11.490,                                   
19 04.11.492, 04.11.496, 04.11.498, 04.11.500, or 04.11.502 or previous local option laws in                               
20 effect before the effective date of this section.                                                                       
21    * Sec. 72.  TRANSITION:  EXISTING LOCAL OPTION PETITIONS.  A petition to adopt                                       
22 or remove a local option on file with a municipality or the lieutenant governor on the effective                        
23 date of this section that has not been voted on is void and may not be placed on an election                            
24 ballot.                                                                                                                 
25    * Sec. 73.  TRANSITION:  COMMUNITY LIQUOR LICENSES.  A community liquor                                              
26 license issued under AS 04.11.190 before the effective date of this section to operate a                                
27 beverage dispensary shall continue as a beverage dispensary license under AS 04.11.090.  A                              
28 community liquor license issued under AS 04.11.190 before the effective date of this section                            
29 to operate a package store shall continue as a package store license under AS 04.11.150.                                
30    * Sec. 74.  TRANSITION. A person licensed under AS 04.11.160 on the effective date of                                
31 this section shall submit the information required under AS 04.11.160(f), added by sec. 11 of                           
01 this Act, by September 30, 1995.                                                                                        
02    * Sec. 75.  TRANSITION:  IMPLEMENTATION OF BIENNIAL SEASONAL LICENSES.                                               
03 (a)  Approximately one-half of the applicants for 1996 renewal of a seasonal license issued                             
04 by the Alcoholic Beverage Control Board, as determined by the director of the Alcoholic                                 
05 Beverage  Control Board, shall be eligible for a one-year seasonal license.  These licenses                             
06 expire, unless renewed, on December 31, 1996, and may be renewed biennially in even-numbered years after that.          
07 The 1996 renewal fee for these licenses is one-half of the seasonal                                                     
08 biennial license fee.                                                                                                   
09  (b)  Applicants whose licenses are not renewed under (a) of this section shall be                                      
10 eligible for a two-year seasonal license.  These licenses expire, unless renewed, on                                    
11 December 31, 1997, and may be renewed biennially in odd-numbered years.                                                 
12  (c)  The director shall notify each licensee in writing as to whether the licensee shall                               
13 apply for renewal under (a) or (b) of this section, and of the actual amount of the renewal fee.                        
14 The notice must be given not later than December 1, 1995.  However, the failure of the                                  
15 director to provide the notice required in this subsection does not prevent a license from                              
16 expiring on February 28, 1996, under AS 04.11.540, if the renewal application is not filed on                           
17 or before that date.                                                                                                    
18    * Sec. 76.  TRANSITION:  REGULATIONS.  Notwithstanding sec. 81 of this Act, the                                      
19 Alcoholic Beverage Control Board may proceed to adopt regulations necessary to implement                                
20 this Act.  The regulations take effect under AS 44.62 (Administrative Procedure Act), but not                           
21 before July 1, 1995.                                                                                                    
22    * Sec. 77.  PROHIBITION ON PURCHASE OR CERTAIN ALCOHOLIC BEVERAGES.                                                  
23 Beginning July 1, 1995, and ending June 30, 1996, a person licensed as a wholesaler under                               
24 AS 04.11.160 may not purchase an alcoholic beverage that contains more than 76 percent                                  
25 alcohol by volume.                                                                                                      
26    * Sec. 78.  TRANSITION:  BOARD MEMBERS.  The provisions of secs. 1 and 2 of this                                     
27 Act do not apply to a person who is serving as a member of the Alcoholic Beverage Control                               
28 Board on the effective date of this Act.                                                                                
29    * Sec. 79.  Section 76 of this Act takes effect immediately under AS 01.10.070(c).                                   
30    * Sec. 80.  AS 04.16.110(2), enacted by sec. 34 of this Act, takes effect July 1, 1996.                              
31    * Sec. 81.  Except as provided in secs. 76 and 80 of this Act, this Act takes effect July 1,                         
01 1995.