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HCS CSSB 128(FIN) am H: "An Act relating to the sale, distribution, and purchase of alcoholic beverages; relating to a state database for records of certain purchases of alcoholic beverages; relating to the relocation of a license to sell alcoholic beverages; relating to procedures for local option elections for control of alcoholic beverages; and providing for an effective date."

00 HOUSE CS FOR CS FOR SENATE BILL NO. 128(FIN) am H 01 "An Act relating to the sale, distribution, and purchase of alcoholic beverages; relating 02 to a state database for records of certain purchases of alcoholic beverages; relating to 03 the relocation of a license to sell 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 purchased by, and shipped 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 shall be purged one year after entry unless it is needed for criminal

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

01 (1) divide or combine shipments of alcoholic beverages so as to 02 circumvent the limitation imposed under (g) of this section; or 03 (2) in response to a written order, ship alcohol to a purchaser at an 04 address other than the address where the purchaser resides or, if the purchaser 05 resides in a municipality or established village that has adopted a local option 06 under AS 04.11.491(a)(1), (2), or (3) or (b)(1) or (2) for which a community 07 delivery site has been designated under AS 04.11.491(f), to an address other than 08 that community delivery site except as provided by AS 04.11.491(f)(1) and (2). 09 * Sec. 5. AS 04.11 is amended by adding a new section to read: 10 Sec. 04.11.260. Destination resort license. (a) A destination resort license 11 authorizes the holder to sell alcoholic beverages at a destination resort for 12 consumption on the licensed premises in conjunction with the visitor activities 13 provided by the licensee to cruise ship passengers and staff and other visitors while the 14 cruise ship is in port at this resort. A destination resort license may not be transferred. 15 (b) The biennial fee for a destination resort license is $1,250. 16 (c) For purposes of this section, the term "destination resort" means a business 17 that owns a site of at least 20 acres that is used principally as a destination for cruise 18 ships and other vessels that carry a minimum of 50 passengers and that does not 19 provide overnight lodging on its premises for visitors. 20 * Sec. 6. AS 04.11.400(a) is amended to read: 21 (a) Except as provided in (d) - (h), (k), [AND] (l), and (n) of this section, a 22 new license may not be issued and the board may prohibit relocation of an existing 23 license 24 (1) outside an established village, incorporated city, unified 25 municipality, or organized borough if, after the issuance or relocation, there would be 26 (A) more than one restaurant or eating place license for each 1,500 population or 27 fraction of that population, or (B) more than one license of each other type, including 28 licenses that have been issued under (d) or (e) of this section, for each 3,000 29 population or fraction of that population, in a radius of five miles of the licensed 30 premises, 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 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 population; 10 (3) inside an organized borough but outside an established village or 11 incorporated city located within the borough [,] if, after the issuance or relocation 12 there would be inside the borough, but outside the established villages and 13 incorporated cities located within the borough, 14 (A) more than one restaurant or eating place license for each 15 1,500 population or fraction of that population; or 16 (B) more than one license of each other type, including licenses 17 that have been issued under (d) or (e) of this section, for each 3,000 population 18 or fraction of that population excluding the population of those established 19 villages that have adopted a local option under AS 04.11.491(b)(1), (3), or (4), 20 and excluding the population of incorporated cities located within the 21 organized borough. 22 * Sec. 7. AS 04.11.400 is amended by adding a new subsection to read: 23 (n) The board may allow the relocation of an existing beverage dispensary 24 license under AS 04.11.090 to a restaurant, eating place, or hotel, motel, resort, or 25 similar business that contains a restaurant or eating place, in a borough with a 26 population of 60,000 or more if the governing body of the borough approves the 27 relocation. However, if the relocation of the license is into or within an incorporated 28 city in the borough, the board may not approve the relocation unless the governing 29 bodies of both the borough and the incorporated city approve the relocation. The board 30 may allow not more than three relocations in a borough under this subsection each 31 decade. In this subsection, "decade" means each 10-year period beginning April 1 in a

01 year ending in zero. 02 * Sec. 8. AS 04.11.499 is amended to read: 03 Sec. 04.11.499. Prohibition of importation after election. If a majority of the 04 voters vote to prohibit the importation of alcoholic beverages under 05 AS 04.11.491(a)(4) or (5) or (b)(3) or (4), a person, beginning on the first day of the 06 month following certification of the results of the election, may not knowingly send, 07 transport, or bring an alcoholic beverage into the municipality or established village, 08 unless the alcoholic beverage is sacramental wine to be used for bona fide religious 09 purposes based on tenets or teachings of a church or religious body, is limited in 10 quantity to the amount necessary for religious purposes, and is dispensed only for 11 religious purposes by a person authorized by the church or religious body to dispense 12 the sacramental wine. [IN THIS SECTION, 13 (1) "BRING" MEANS TO CARRY OR CONVEY OR TO ATTEMPT 14 OR SOLICIT TO CARRY OR CONVEY; 15 (2) "SEND" MEANS TO CAUSE TO BE TAKEN OR 16 DISTRIBUTED OR TO ATTEMPT OR SOLICIT TO CAUSE TO BE TAKEN OR 17 DISTRIBUTED, AND INCLUDES USE OF THE UNITED STATES POSTAL 18 SERVICE; 19 (3) "TRANSPORT" MEANS TO SHIP BY ANY METHOD, AND 20 INCLUDES DELIVERING OR TRANSFERRING OR ATTEMPTING OR 21 SOLICITING TO DELIVER OR TRANSFER AN ALCOHOLIC BEVERAGE TO 22 BE SHIPPED TO, DELIVERED TO, OR LEFT OR HELD FOR PICK UP BY ANY 23 PERSON.] 24 * Sec. 9. AS 04.11.499 is amended by adding new subsections to read: 25 (b) A person who resides in a municipality or established village that has 26 adopted a local option under AS 04.11.491(a) or (b) may not purchase alcohol from 27 another person who has sent, transported, or brought an alcoholic beverage into the 28 municipality or established village in violation of the local option. 29 (c) In this section, 30 (1) "bring" means to carry or convey or to attempt or solicit to carry or 31 convey;

01 (2) "send" means to cause to be taken or distributed or to attempt or 02 solicit to cause to be taken or distributed, and includes use of the United States Postal 03 Service; 04 (3) "transport" means to ship by any method, and includes delivering 05 or transferring or attempting or soliciting to deliver or transfer an alcoholic beverage 06 to be shipped to, delivered to, or left or held for pickup by any person. 07 * Sec. 10. AS 04.11.507(f) is amended to read: 08 (f) Notwithstanding any other provisions of law, an election under (b) or (c) of 09 this section to remove a local option or to change to a less restrictive option than the 10 local option previously adopted under AS 04.11.491 may not be conducted during the 11 first 24 [12] months after the local option was adopted or more than once in a 36- 12 month [AN 18-MONTH] period. 13 * Sec. 11. AS 04.16.020 is amended by adding a new subsection to read: 14 (c) A person may not purchase alcohol by written order on behalf of another 15 person who resides in a municipality or established village that has adopted a local 16 option under AS 04.11.491(a)(5) or (b)(4). 17 * Sec. 12. AS 04.16 is amended by adding a new section to read: 18 Sec. 04.16.035. Possession of ingredients for homebrew in certain areas. A 19 person residing in an area that has adopted a local option to prohibit the sale, 20 importation, and possession of alcoholic beverages under AS 04.11.491(a)(5) or (b)(4) 21 may not possess sugar, artificial sugar, malt, yeast, or any other material or equipment 22 with the intent to use the material or equipment to create an alcoholic beverage. 23 * Sec. 13. AS 04.16.180(a) is amended to read: 24 (a) Except as provided in AS 04.11.015, 04.11.150(g), AS 04.16.025, 25 04.16.050, 04.16.051, 04.16.200 - 04.16.210, and AS 04.21.065, a person who violates 26 a provision of this title or a regulation adopted by the board is guilty, upon conviction, 27 of a class A misdemeanor. Each violation is a separate offense. 28 * Sec. 14. AS 04.16.200(e) is amended to read: 29 (e) A person who sends, transports, or brings alcoholic beverages into a 30 municipality or established village in violation of AS 04.11.499(a) [AS 04.11.499] is, 31 upon conviction,

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

01 violation of AS 04.21.060; 02 (C) alcoholic beverages imported into a municipality or 03 established village in violation of AS 04.11.499(a) [AS 04.11.499]; 04 (4) alcoholic beverages found on licensed premises that do not bear 05 federal excise stamps if excise stamps are required under federal law; 06 (5) alcoholic beverages, materials, or equipment used in violation of 07 AS 04.16.175; 08 (6) money, securities, negotiable instruments, or other things of value 09 used in financial transactions or items of value purchased from the proceeds derived 10 from activity prohibited under AS 04.11.010 or in violation of a local option adopted 11 under AS 04.11.491; 12 (7) a firearm used in furtherance of a violation of this title. 13 * Sec. 17. AS 04.16.220(i) is amended to read: 14 (i) Upon conviction for a violation of AS 04.11.010 or 04.11.499(a) 15 [04.11.499], if an aircraft, vehicle, or watercraft is subject to forfeiture under (a) of 16 this section, the court shall, subject to remission to innocent parties under this section, 17 (1) order the forfeiture of an aircraft to the state; 18 (2) order the forfeiture of a vehicle or watercraft if 19 (A) the defendant has a prior felony conviction for a violation 20 of AS 11.41 or a similar law in another jurisdiction; 21 (B) the defendant is on felony probation or parole; 22 (C) the defendant has a prior conviction for violating 23 AS 04.11.010 or 04.11.499(a) [04.11.499]; or 24 (D) the quantity of alcohol transported in violation of this title 25 was twice the presumptive amounts in AS 04.11.010(c). 26 * Sec. 18. The uncodified law of the State of Alaska is amended by adding a new section to 27 read: 28 ALCOHOLIC BEVERAGE DELIVERY SITE PILOT PROJECT. (a) The Alcoholic 29 Beverage Control Board established by AS 04.06.010 shall, if requested by the local 30 governing body of Bethel, establish a site in Bethel and, if requested by the local governing 31 body of Kotzebue, establish a site in Kotzebue for delivery of alcoholic beverages. The

01 delivery sites shall be operated as sites designated under AS 04.11.491(f) are operated. Each 02 site shall, if established, begin operation on July 1, 2008, and shall continue in operation as 03 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 04 community. However, each site shall stop operation on June 30, 2011, regardless of whether a 05 local option is in effect in each community on that date. 06 (b) The delivery site established in Bethel under (a) of this section shall serve as the 07 delivery site under AS 04.11.494 for Bethel and shall be established after consultation with 08 public, private, and nonprofit agencies in Bethel. 09 (c) The delivery site established in Kotzebue under (a) of this section shall serve as 10 the delivery site under AS 04.11.494 for Kotzebue and shall be established after consultation 11 with public, private, and nonprofit agencies in Kotzebue. 12 * Sec. 19. The uncodified law of the State of Alaska is amended by adding a new section to 13 read: 14 TRANSITIONAL PROVISION. For purposes of the limitation on relocation of 15 licenses under AS 04.11.400(n), enacted by sec. 7 of this Act, the first "decade" shall extend 16 from the effective date of sec. 8 of this Act through March 31, 2010. 17 * Sec. 20. The uncodified law of the State of Alaska is amended by adding a new section to 18 read: 19 REVISOR'S INSTRUCTIONS. The revisor of statutes is instructed to change the 20 heading of AS 04.11.499 from "Prohibition of importation after election" to "Prohibition of 21 importation or purchase after election." 22 * Sec. 21. Section 18 of this Act is repealed. 23 * Sec. 22. Section 3 of this Act takes effect July 1, 2008. 24 * Sec. 23. Section 21 of this Act takes effect June 30, 2011. 25 * Sec. 24. Except as provided in secs. 22 and 23 of this Act, this Act takes effect 26 immediately under AS 01.10.070(c).