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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."

00CS 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.