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CSHB 232(JUD): "An Act relating to the sale, offer for sale, distribution, manufacture, possession, and purchase of, or barter or traffic in, alcoholic beverages; relating to a state database for records of certain purchases of alcoholic beverages; relating to procedures for local option elections for control of alcoholic beverages; and providing for an effective date."

00 CS FOR HOUSE BILL NO. 232(JUD) 01 "An Act relating to the sale, offer for sale, distribution, manufacture, possession, and 02 purchase of, or barter or traffic in, alcoholic beverages; relating to a state database for 03 records of certain purchases of alcoholic beverages; relating to procedures for local 04 option elections for control of alcoholic beverages; and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 04.06 is amended by adding a new section to read: 07 Sec. 04.06.095. Statewide database. The board, after consulting with package 08 store licensees, shall create and maintain a statewide database that contains a monthly 09 record of the alcohol purchases by, and shipments made to, a person who resides in a 10 municipality or established village that has restricted the sale of alcoholic beverages 11 under AS 04.11.491(a)(1), (2), or (3) or (b)(1) or (2). Except as otherwise specifically 12 provided in this section, the information contained in the database is confidential and 13 is not subject to inspection or copying under AS 40.25.110 - 40.25.220. Information in 14 the database is available only to

01 (1) a package store licensee, agent, or employee to consult before 02 shipping alcohol to a purchaser in a restricted area as provided in AS 04.11.150(g); 03 (2) a law enforcement officer; 04 (3) a probation or parole officer; and 05 (4) the board. 06 * Sec. 2. AS 04.11.010(a) is amended to read: 07 (a) Except as provided in AS 04.11.020, a person may not knowingly 08 manufacture, sell, offer for sale, possess for sale or barter, traffic in, or barter an 09 alcoholic beverage unless under license or permit issued under this title. 10 * Sec. 3. AS 04.11.150(g) is amended to read: 11 (g) If a shipment is to an area that has restricted the sale of alcoholic 12 beverages under AS 04.11.491(a)(1), (2), or (3) or (b)(1) or (2), a package store 13 licensee, agent, or employee may not ship to a purchaser more than 10 and one-half 14 liters of distilled spirits, 24 liters or more of wine, or 12 gallons or more of malt 15 beverages in a calendar month, or a lower amount of distilled spirits, wine, or malt 16 beverages if the municipality or established village has adopted the lower amount by 17 local option under AS 04.11.491(g). Before shipping alcohol to a purchaser in a 18 restricted area, a package store licensee, agent, or employee shall consult the 19 database maintained by the board under AS 04.06.095 for any alcoholic beverage 20 shipments made to the purchaser during that calendar month by a package store 21 licensee, agent, or employee. A package store licensee, agent, or employee may 22 not ship an amount of alcoholic beverages to a purchaser in a restricted area 23 that, when added to the amount already shipped, exceeds the amount authorized 24 by this subsection. A package store licensee, agent, or employee shall immediately 25 enter into the database the date and the amount of alcoholic beverages shipped to 26 the purchaser. 27 * Sec. 4. AS 04.11.150(h) is amended to read: 28 (h) A package store licensee, agent, or employee may not 29 (1) divide or combine shipments of alcoholic beverages so as to 30 circumvent the limitation imposed under (g) of this section; or 31 (2) in response to a written order, ship alcohol to a purchaser at an

01 address other than the address where the purchaser resides or, if the purchaser 02 resides in a municipality or established village that has adopted a local option 03 under AS 04.11.491(a)(1), (2), or (3) or (b)(1) or (2) for which a community 04 delivery site has been designated under AS 04.11.491(f), to an address other than 05 that community delivery site except as provided by AS 04.11.491(f)(1) and (2). 06 * Sec. 5. AS 04.11.499 is amended to read: 07 Sec. 04.11.499. Prohibition of importation after election. If a majority of the 08 voters vote to prohibit the importation of alcoholic beverages under 09 AS 04.11.491(a)(4) or (5) or (b)(3) or (4), a person, beginning on the first day of the 10 month following certification of the results of the election, may not knowingly send, 11 transport, or bring an alcoholic beverage into the municipality or established village, 12 unless the alcoholic beverage is sacramental wine to be used for bona fide religious 13 purposes based on tenets or teachings of a church or religious body, is limited in 14 quantity to the amount necessary for religious purposes, and is dispensed only for 15 religious purposes by a person authorized by the church or religious body to dispense 16 the sacramental wine. [IN THIS SECTION, 17 (1) "BRING" MEANS TO CARRY OR CONVEY OR TO ATTEMPT 18 OR SOLICIT TO CARRY OR CONVEY; 19 (2) "SEND" MEANS TO CAUSE TO BE TAKEN OR 20 DISTRIBUTED OR TO ATTEMPT OR SOLICIT TO CAUSE TO BE TAKEN OR 21 DISTRIBUTED, AND INCLUDES USE OF THE UNITED STATES POSTAL 22 SERVICE; 23 (3) "TRANSPORT" MEANS TO SHIP BY ANY METHOD, AND 24 INCLUDES DELIVERING OR TRANSFERRING OR ATTEMPTING OR 25 SOLICITING TO DELIVER OR TRANSFER AN ALCOHOLIC BEVERAGE TO 26 BE SHIPPED TO, DELIVERED TO, OR LEFT OR HELD FOR PICK UP BY ANY 27 PERSON.] 28 * Sec. 6. AS 04.11.499 is amended by adding new subsections to read: 29 (b) A person who resides in a municipality or established village that has 30 adopted a local option under AS 04.11.491(a) or (b) may not purchase alcohol from 31 another person who has sent, transported, or brought an alcoholic beverage into the

01 municipality or established village in violation of the local option. 02 (c) In this section, 03 (1) "bring" means to carry or convey or to attempt or solicit to carry or 04 convey; 05 (2) "send" means to cause to be taken or distributed or to attempt or 06 solicit to cause to be taken or distributed, and includes use of the United States Postal 07 Service; 08 (3) "transport" means to ship by any method, and includes delivering 09 or transferring or attempting or soliciting to deliver or transfer an alcoholic beverage 10 to be shipped to, delivered to, or left or held for pickup by any person. 11 * Sec. 7. AS 04.11.507(f) is amended to read: 12 (f) Notwithstanding any other provisions of law, an election under (b) or (c) of 13 this section to remove a local option or to change to a less restrictive option than the 14 local option previously adopted under AS 04.11.491 may not be conducted during the 15 first 24 [12] months after the local option was adopted or more than once in a 36- 16 month [AN 18-MONTH] period. 17 * Sec. 8. AS 04.16.020 is amended by adding a new subsection to read: 18 (c) A person may not purchase alcohol by written order on behalf of another 19 person who resides in a municipality or established village that has adopted a local 20 option under AS 04.11.491(a)(5) or (b)(4). 21 * Sec. 9. AS 04.16 is amended by adding a new section to read: 22 Sec. 04.16.035. Possession of ingredients for homebrew in certain areas. A 23 person residing in an area that has adopted a local option to prohibit the sale, 24 importation, and possession of alcoholic beverages under AS 04.11.491(a)(5) or (b)(4) 25 may not possess sugar, artificial sugar, malt, yeast, or any other material or equipment 26 with the intent to use the material or equipment to create an alcoholic beverage. 27 * Sec. 10. AS 04.16.200(e) is amended to read: 28 (e) A person who sends, transports, or brings alcoholic beverages into a 29 municipality or established village in violation of AS 04.11.499(a) [AS 04.11.499] is, 30 upon conviction, 31 (1) guilty of a class A misdemeanor if the quantity of alcoholic

01 beverages is less than 10 and one-half liters of distilled spirits, 24 liters of wine, or 12 02 gallons of malt beverages; or 03 (2) guilty of a class C felony if the quantity of alcoholic beverages is 04 10 and one-half liters or more of distilled spirits, 24 liters or more of wine, or 12 05 gallons or more of malt beverages. 06 * Sec. 11. AS 04.16.200 is amended by adding a new subsection to read: 07 (f) A person who purchases alcohol in violation of AS 04.11.499(b) is guilty 08 of a class A misdemeanor. 09 * Sec. 12. AS 04.16.220(a) is amended to read: 10 (a) The following are subject to forfeiture: 11 (1) alcoholic beverages manufactured, sold, offered for sale, possessed 12 for sale, or bartered or exchanged for goods and services in this state in violation of 13 AS 04.11.010; alcoholic beverages possessed, stocked, warehoused, or otherwise 14 stored in violation of AS 04.21.060; alcoholic beverages sold or offered for sale in 15 violation of a local option adopted under AS 04.11.491; alcoholic beverages 16 transported into the state and sold to persons not licensed under this chapter in 17 violation of AS 04.16.170(b); alcoholic beverages transported in violation of 18 AS 04.16.125; 19 (2) materials and equipment used in the manufacture, sale, offering for 20 sale, possession for sale, or barter or exchange of alcoholic beverages for goods and 21 services in this state in violation of AS 04.11.010; materials and equipment used in the 22 stocking, warehousing, or storage of alcoholic beverages in violation of AS 04.21.060; 23 materials and equipment used in the sale or offering for sale of an alcoholic beverage 24 in an area in violation of a local option adopted under AS 04.11.491; 25 (3) aircraft, vehicles, or vessels used to transport or facilitate the 26 transportation of 27 (A) alcoholic beverages manufactured, sold, offered for sale, 28 possessed for sale, or bartered or exchanged for goods and services in this state 29 in violation of AS 04.11.010; 30 (B) property stocked, warehoused, or otherwise stored in 31 violation of AS 04.21.060;

01 (C) alcoholic beverages imported into a municipality or 02 established village in violation of AS 04.11.499(a) [AS 04.11.499]; 03 (4) alcoholic beverages found on licensed premises that do not bear 04 federal excise stamps if excise stamps are required under federal law; 05 (5) alcoholic beverages, materials, or equipment used in violation of 06 AS 04.16.175; 07 (6) money, securities, negotiable instruments, or other things of value 08 used in financial transactions or items of value purchased from the proceeds derived 09 from activity prohibited under AS 04.11.010 or in violation of a local option adopted 10 under AS 04.11.491; 11 (7) a firearm used in furtherance of a violation of this title. 12 * Sec. 13. AS 04.16.220(i) is amended to read: 13 (i) Upon conviction for a violation of AS 04.11.010 or 04.11.499(a) 14 [04.11.499], if an aircraft, vehicle, or watercraft is subject to forfeiture under (a) of 15 this section, the court shall, subject to remission to innocent parties under this section, 16 (1) order the forfeiture of an aircraft to the state; 17 (2) order the forfeiture of a vehicle or watercraft if 18 (A) the defendant has a prior felony conviction for a violation 19 of AS 11.41 or a similar law in another jurisdiction; 20 (B) the defendant is on felony probation or parole; 21 (C) the defendant has a prior conviction for violating 22 AS 04.11.010 or 04.11.499(a) [04.11.499]; or 23 (D) the quantity of alcohol transported in violation of this title 24 was twice the presumptive amounts in AS 04.11.010(c). 25 * Sec. 14. The uncodified law of the State of Alaska is amended by adding a new section to 26 read: 27 ALCOHOLIC BEVERAGE DELIVERY SITE PILOT PROJECT. (a) The Alcoholic 28 Beverage Control Board established by AS 04.06.010 shall, if requested by the local 29 governing body of Bethel, establish a site in Bethel and, if requested by the local governing 30 body of Kotzebue, establish a site in Kotzebue for delivery of alcoholic beverages. The 31 delivery sites shall be operated as sites designated under AS 04.11.491(f) are operated. Each

01 site shall, if established, begin operation on July 1, 2008, and shall continue in operation as 02 long as a local option under AS 04.11.491(a)(1), (2), or (3) or (b)(1) or (2) is in effect in each 03 community. However, each site shall stop operation on June 30, 2011, regardless of whether a 04 local option is in effect in each community on that date. 05 (b) The delivery site established in Bethel under (a) of this section shall serve as the 06 delivery site under AS 04.11.494 for Bethel and shall be established after consultation with 07 public, private, and nonprofit agencies in Bethel. 08 (c) The delivery site established in Kotzebue under (a) of this section shall serve as 09 the delivery site under AS 04.11.494 for Kotzebue and shall be established after consultation 10 with public, private, and nonprofit agencies in Kotzebue. 11 * Sec. 15. The uncodified law of the State of Alaska is amended by adding a new section to 12 read: 13 REVISOR'S INSTRUCTIONS. The revisor of statutes is instructed to change the 14 heading of AS 04.11.499 from "Prohibition of importation after election" to "Prohibition of 15 importation or purchase after election." 16 * Sec. 16. Section 14 of this Act is repealed. 17 * Sec. 17. Section 3 of this Act takes effect July 1, 2008. 18 * Sec. 18. Section 16 of this Act takes effect June 30, 2011. 19 * Sec. 19. Except as provided in secs. 17 and 18 of this Act, this Act takes effect 20 immediately under AS 01.10.070(c).