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CSSSSB 76(L&C): "An Act relating to alcoholic beverages; relating to the regulation of manufacturers, wholesalers, retailers, and common carriers of alcoholic beverages; relating to licenses, endorsements, and permits involving alcoholic beverages; relating to the Alcoholic Beverage Control Board; relating to offenses involving alcoholic beverages; amending Rule 17, Alaska Rules of Minor Offense Procedure; and providing for an effective date."

00 CS FOR SPONSOR SUBSTITUTE FOR SENATE BILL NO. 76(L&C) 01 "An Act relating to alcoholic beverages; relating to the regulation of manufacturers, 02 wholesalers, retailers, and common carriers of alcoholic beverages; relating to licenses, 03 endorsements, and permits involving alcoholic beverages; relating to the Alcoholic 04 Beverage Control Board; relating to offenses involving alcoholic beverages; amending 05 Rule 17, Alaska Rules of Minor Offense Procedure; and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 04.06.075 is amended by adding a new subsection to read: 08 (b) The director shall prepare and submit to the board an annual budget for the 09 board that includes funding for administration, enforcement, education, training, and 10 prevention activities under this title. 11 * Sec. 2. AS 04.06.080 is amended to read: 12 Sec. 04.06.080. Delegation of authority. The director shall issue, renew, 13 transfer, suspend, or revoke all licenses, endorsements, and permits at the direction of

01 the board. However, notwithstanding AS 04.06.090(b) [AS 04.11.070], the board may 02 delegate authority to the director to temporarily grant or deny the issuance, renewal, or 03 transfer of licenses, endorsements, and permits. The director's temporary grant or 04 denial of the issuance, renewal, or transfer of a license, endorsement, or permit is not 05 binding on the board. The board may delegate to the director any duty imposed by this 06 title except its power to propose and adopt regulations. 07 * Sec. 3. AS 04.06.090(b) is amended to read: 08 (b) Only the board may issue, renew, transfer, relocate, suspend, or 09 revoke a license or endorsement under this title. The board shall review all 10 applications for licenses and endorsements made under this title and may order the 11 director to issue, renew, revoke, transfer, or suspend licenses, endorsements, and 12 permits authorized under this title. 13 * Sec. 4. AS 04.06.090(e) is amended to read: 14 (e) The board shall promptly notify all licensees and municipalities of major 15 changes to this title and to regulations adopted under this title. However, if changes 16 only affect specific classifications of licenses, endorsements, and permits, the board 17 need only notify those licensees and municipalities directly affected by the changes. 18 Current copies of this title and current copies of the regulations adopted under it shall 19 be made available at all offices in the state of the Department of Commerce, 20 Community, and Economic Development and the detachment headquarters and posts 21 maintained by the division of Alaska state troopers in the Department of Public Safety. 22 * Sec. 5. AS 04.06.090 is amended by adding new subsections to read: 23 (f) The board shall develop a comprehensive plan to educate public safety 24 professionals, the alcoholic beverage industry, individuals under 21 years of age, local 25 governments, established villages, and the general public on the responsible use of 26 alcoholic beverages and on relevant state statutes, regulations, and policies. The board 27 shall update and revise the plan annually. 28 (g) The board shall review the fees specified in this title and regulations 29 adopted under this title at least every 10 years. 30 (h) The board may, within 30 days after the introduction of a bill amending a 31 provision of this title or adding a new provision to this title, prepare an advisory

01 opinion regarding the changes proposed in the bill. 02 (i) The board shall, within 30 business days after receiving notice of a 03 conviction or violation under this title, provide a copy of the conviction or violation to 04 the holder of a license if an offense or violation occurred on the holder's licensed 05 premises and the holder is not the subject of the conviction or violation. 06 (j) The board shall post information on the board's Internet website about fetal 07 alcohol syndrome and fetal alcohol effects resulting from a woman consuming alcohol 08 during pregnancy. 09 * Sec. 6. AS 04.06.095 is amended to read: 10 Sec. 04.06.095. Statewide database. (a) The board, after consulting with 11 package store licensees, shall create and maintain a statewide database that contains a 12 monthly record of the alcohol purchased by, and shipped to, a person who resides in a 13 municipality or established village that has restricted the sale of alcoholic beverages 14 under AS 04.11.491(a)(1), (2), or (3) or (b)(1) or (2). 15 (b) Except as otherwise specifically provided in this section, the information 16 contained in the database is confidential and is not subject to inspection or copying 17 under AS 40.25.110 - 40.25.220. Personally identifiable information, including 18 business names and addresses, [INFORMATION] in the database shall be purged 19 one year after entry unless it is needed for criminal investigation or prosecution. All 20 other information in the database shall be retained in aggregate form and purged 21 10 years after entry. Information in the database is available only to 22 (1) a package store licensee, agent, or employee to consult before 23 shipping alcohol to a purchaser in a restricted area under a package store shipping 24 endorsement as provided in AS 04.09.460 [AS 04.11.150(g)]; 25 (2) a law enforcement officer; 26 (3) a probation or parole officer; 27 (4) the board; and 28 (5) the person who is the subject of the information; the board shall 29 adopt regulations concerning access by a person to information contained in the 30 database of the purchases by, and shipments to, that person. 31 * Sec. 7. AS 04.06.095 is amended by adding a new subsection to read:

01 (c) The board shall produce an annual report of the aggregate regional and 02 statewide data from the database, excluding personally identifiable information and 03 the names and addresses of businesses, and shall make the report available for public 04 inspection and copying under AS 40.25.110 - 40.25.220. The report must include 05 information about the total volume of alcohol received in each municipality or 06 established village. 07 * Sec. 8. AS 04.06.100(b) is amended to read: 08 (b) The subjects covered by regulations adopted under (a) of this section may 09 include the following matters: 10 (1) employment, conduct, and duties of the director and of regular and 11 contractual employees of the board; 12 (2) procedures for the issuance, denial, renewal, transfer, revocation, 13 and suspension of licenses, endorsements, and permits; 14 (3) terms and conditions of licenses, endorsements, and permits 15 issued; 16 (4) fees for licenses, endorsements, and permits issued for which fees 17 are not prescribed by statute; 18 (5) conduct of regular and special meetings of the board; 19 (6) delegation to the director of routine administrative functions and 20 powers; 21 (7) the temporary granting or denial of issuance, transfer, and renewal 22 of licenses and endorsements; 23 (8) manner of giving any notice required by law or regulation when not 24 provided for by statute; 25 (9) requirements relating to the qualifications of licensees, the 26 conditions upon which a license may be issued, the accommodations of licensed 27 premises, and board inspection of those premises; 28 (10) making of reports by wholesalers; 29 (11) purchase of fidelity bonds by the state for the director and the 30 employees of the board; 31 (12) prohibition of possession of alcoholic beverages by drunken

01 persons and by minors; 02 (13) required reports from corporations licensed under this title, 03 including reports of stock ownership and transfers and changes of officers and 04 directors; 05 (14) [CREATION OF CLASSIFICATIONS OF LICENSES OR 06 PERMITS NOT PROVIDED FOR IN THIS TITLE; 07 (15)] establishment and collection of fees to be paid on application for 08 a license, endorsement, or permit; 09 (15) [(16)] required reports from partnerships and limited partnerships 10 licensed under this title, including reports of transferred interests of 10 percent or 11 more; 12 (16) [(17)] required reports from limited liability organizations 13 licensed under this title, including reports of the transfer of a member's interest if the 14 transfer equals 10 percent or more of the ownership of the limited liability 15 organization and any change of managers; 16 (17) restrictions on the manufacture, packaging, sale, and 17 distribution of products containing alcohol that are intended for human 18 consumption. 19 * Sec. 9. AS 04 is amended by adding a new chapter to read: 20 Chapter 09. Licenses, Endorsements, and Permits. 21 Article 1. License Types. 22 Sec. 04.09.010. Types of licenses. A license defines activities allowed daily on 23 licensed premises. License type is a general category of license activity based on the 24 three-tier system of alcohol regulation. The three types of licenses the board may issue 25 are manufacturer, wholesale, and retail licenses. The board may issue only the licenses 26 authorized in AS 04.09.020 - 04.09.360. 27 Article 2. Manufacturer Licenses. 28 Sec. 04.09.020. Brewery manufacturer license. (a) A brewery manufacturer 29 license authorizes the holder to operate a brewery for the manufacture, packaging, 30 storing, and sale of its brewed beverages to a buyer as permitted in AS 04.09.050. 31 (b) The biennial brewery manufacturer license fee is $1,500.

01 (c) At least 80 percent of each final product that contains brewed beverages 02 offered for sale by the holder of a brewery manufacturer license must be manufactured 03 on the holder's licensed premises in the state. 04 Sec. 04.09.030. Winery manufacturer license. (a) A winery manufacturer 05 license authorizes the holder to operate a winery for the manufacture, packaging, 06 storing, and sale of its wine to a buyer as permitted in AS 04.09.050. 07 (b) The biennial winery manufacturer license fee is $1,500. 08 (c) At least 80 percent of each final product that contains wine offered for sale 09 by the holder of a winery manufacturer license must be manufactured on the holder's 10 licensed premises in the state. 11 Sec. 04.09.040. Distillery manufacturer license. (a) A distillery manufacture 12 license authorizes the holder to operate a distillery for the manufacture, packaging, 13 storing, and sale of its distilled spirits to a buyer as permitted in AS 04.09.050. 14 (b) The biennial distillery manufacturer license fee is $1,500. 15 (c) At least 80 percent of each final product that contains distilled spirits 16 offered for sale by the holder of a distillery manufacturer license must be 17 manufactured on the holder's licensed premises in the state. 18 Sec. 04.09.050. Authorized sales. (a) The holder of a manufacturer license 19 that annually produces in total less than 300,000 barrels of brewed beverages, less than 20 50,000 nine-liter-equivalent cases of wine, or less than 50,000 nine-liter-equivalent 21 cases of distilled spirits may sell its product to 22 (1) the holder of a wholesale license issued under this chapter; 23 (2) the holder of a retail license issued under this chapter; 24 (3) the holder of a permit issued under this chapter; 25 (4) an entity in another state or country. 26 (b) The holder of a manufacturer license that annually produces in total 27 300,000 barrels or more of brewed beverages, 50,000 nine-liter-equivalent cases or 28 more of wine, or 50,000 nine-liter-equivalent cases or more of distilled spirits may sell 29 its product to 30 (1) the holder of a wholesale license issued under this chapter; 31 (2) an entity in another state or country.

01 (c) For purposes of calculating the volume that the holder of a manufacturer 02 license produces under this section, the volume of production must include all 03 production by 04 (1) the holder of the manufacturer's license; and 05 (2) an officer, director, agent, employee, or affiliate of the holder; in 06 this paragraph, "affiliate" means a person that directly or indirectly, through one or 07 more intermediaries, controls, or is controlled by, or is under common control with, a 08 corporation. 09 Sec. 04.09.060. Unlicensed manufacturing. (a) A person commits the crime 10 of unlicensed manufacturing if the person knowingly operates a 11 (1) brewery without a brewery manufacturer license; 12 (2) winery without a winery manufacturer license; or 13 (3) distillery without a distillery manufacturer license. 14 (b) Unlicensed manufacturing is a class A misdemeanor. 15 Sec. 04.09.070. Unlicensed manufacturing in a local option area. (a) A 16 person commits the crime of unlicensed manufacturing in a local option area if the 17 person knowingly operates in an area that has adopted a local option under 18 AS 04.11.491 a 19 (1) brewery without a brewery manufacturer license; 20 (2) winery without a winery manufacturer license; or 21 (3) distillery without a distillery manufacturer license. 22 (b) Unlicensed manufacturing in a local option area is a class C felony. 23 Sec. 04.09.080. Unauthorized manufacturer sale. (a) Except as provided in 24 AS 04.09.310 - 04.09.330, a person who holds a manufacturer license commits the 25 offense of unauthorized manufacturer sale if the person sells its product in violation of 26 AS 04.09.050. 27 (b) Unauthorized manufacturer sale is a violation. 28 Sec. 04.09.090. Definition. In AS 04.09.020 - 04.09.090, "packaging" means 29 the process of containing alcoholic beverages in bottles or other types of containers for 30 purpose of resale. 31 Article 3. Wholesale Licenses.

01 Sec. 04.09.100. General wholesale license. (a) A general wholesale license 02 authorizes the holder to sell alcoholic beverages at wholesale. The holder of a general 03 wholesale license may not sell to a person not licensed under this title, except as 04 provided in AS 04.21.040. 05 (b) The biennial general wholesale license fee is $2,000. 06 (c) In addition to the license fee under (b) of this section, the holder of a 07 general wholesale license shall pay an annual fee based on the total value of business 08 transacted by the wholesale business, including the excise tax imposed by 09 AS 43.60.010. If the total value of business transacted during the calendar year 10 including the excise tax imposed by AS 43.60.010 is 11 (1) less than or equal to $100,000, then the annual fee is $0; 12 (2) over $100,000 and not over $150,000, then the annual fee is $250; 13 (3) over $150,000 and not over $200,000, then the annual fee is $500; 14 (4) over $200,000 and not over $250,000, then the annual fee is $750; 15 (5) over $250,000 and not over $300,000, then the annual fee is 16 $1,000; 17 (6) over $300,000 and not over $350,000, then the annual fee is 18 $1,250; 19 (7) over $350,000 and not over $400,000, then the annual fee is 20 $1,500; 21 (8) over $400,000 and not over $500,000, then the annual fee is 22 $2,000; 23 (9) over $500,000 and not over $600,000, then the annual fee is 24 $2,500; 25 (10) over $600,000 and not over $700,000, then the annual fee is 26 $3,000; 27 (11) over $700,000 and not over $800,000, then the annual fee is 28 $3,500; 29 (12) over $800,000 and not over $1,000,000, then the annual fee is 30 $4,500; 31 (13) over $1,000,000, then the annual fee is $10,000.

01 Sec. 04.09.110. Limited wholesale brewed beverage and wine license. (a) A 02 limited wholesale brewed beverage and wine license authorizes the holder to sell 03 brewed beverages and wine at wholesale. The holder of a limited wholesale brewed 04 beverage and wine license may not sell to a person not licensed under this title, except 05 as provided in AS 04.21.040. 06 (b) The biennial limited wholesale brewed beverage and wine license fee is 07 $400. 08 (c) In addition to the license fee under (b) of this section, the holder of a 09 limited wholesale brewed beverage and wine license shall pay an annual fee based on 10 the total value of business transacted by the wholesale business, including the excise 11 tax imposed by AS 43.60.010. If the total value of business transacted during the 12 calendar year including the excise tax imposed by AS 43.60.010 is 13 (1) less than or equal to $20,000, then the annual fee is $0; 14 (2) over $20,000 and not over $50,000, then the annual fee is $150; 15 (3) over $50,000 and not over $100,000, then the annual fee is $500; 16 (4) over $100,000 and not over $150,000, then the annual fee is $750; 17 (5) over $150,000 and not over $200,000, then the annual fee is 18 $1,000; 19 (6) over $200,000 and not over $400,000, then the annual fee is 20 $2,000; 21 (7) over $400,000 and not over $600,000, then the annual fee is 22 $3,000; 23 (8) over $600,000 and not over $800,000, then the annual fee is 24 $4,000; 25 (9) over $800,000, then the annual fee is $10,000. 26 Sec. 04.09.120. Annual fee and affidavit. (a) Not later than February 28 of 27 each year the holder of a general wholesale license or a limited wholesale brewed 28 beverage and wine license shall pay the annual fee for the license for the preceding 29 calendar year, and file with the board an affidavit showing the 30 (1) total value of business transacted under the license by the 31 wholesale business, including the excise tax imposed by AS 43.60.010, during the

01 preceding calendar year; and 02 (2) location of the licensed premises at which the business was 03 transacted. 04 (b) Failure to file an affidavit under (a) of this section or the expiration of a 05 license under AS 04.11.540 does not relieve a licensee from paying the prescribed 06 annual fee. 07 Sec. 04.09.130. Wholesale supplier declaration. (a) A person who applies for 08 issuance or renewal of a general wholesale license or a limited wholesale brewed 09 beverage and wine license shall submit to the board, on a form prescribed by the 10 board, a declaration that the person is the appointed wholesaler of the distiller, brewer, 11 vintner, or importer of each product line of alcoholic beverage that the person intends 12 to purchase, offer for sale, or sell. The form must include a space for the person to 13 indicate the total number of suppliers. The board may request a list of suppliers, or 14 additional information about a product line. 15 (b) A person filing a declaration under this section shall pay a biennial filing 16 fee. If the declaration lists 17 (1) one to 25 suppliers, the fee is $500; 18 (2) 26 to 50 suppliers, the fee is $1,000; 19 (3) 51 to 75 suppliers, the fee is $1,500; 20 (4) 76 or more suppliers, the fee is $2,000. 21 (c) In this section, "distiller, brewer, vintner, or importer" includes an 22 exclusive agent of the distiller, brewer, vintner, or importer if the agent's name appears 23 on the label of the brand approved by the Alcohol and Tobacco Tax and Trade Bureau. 24 Sec. 04.09.140. Unlicensed wholesale sale. (a) A person commits the crime of 25 unlicensed wholesale sale if the person knowingly sells 26 (1) distilled spirits at wholesale without a general wholesale license; or 27 (2) brewed beverages or wine at wholesale without a general wholesale 28 license or a limited wholesale brewed beverage and wine license. 29 (b) Unlicensed wholesale sale is a class A misdemeanor. 30 Sec. 04.09.145. Unlicensed wholesale sale in a local option area. (a) A 31 person commits the crime of unlicensed wholesale sale in a local option area if the

01 person knowingly sells in an area that has adopted a local option under AS 04.11.491 02 (1) distilled spirits at wholesale without a general wholesale license; or 03 (2) brewed beverages or wine at wholesale without a general wholesale 04 license or a limited wholesale brewed beverage and wine license. 05 (b) Unlicensed wholesale sale in a local option area is a class C felony. 06 Sec. 04.09.150. Failure to pay annual fee or file affidavit. (a) A person 07 commits the offense of failure to pay an annual wholesale fee or file a wholesale 08 affidavit if the person fails to pay the annual fee or file the affidavit as required under 09 AS 04.09.120. 10 (b) Failure to pay an annual wholesale fee or file a wholesale affidavit is a 11 violation. 12 Sec. 04.09.160. Failure to pay biennial fee or file declaration. (a) A person 13 commits the offense of failure to pay a biennial supplier fee or file a supplier 14 declaration if the person fails to pay the biennial supplier fee or file the declaration as 15 required under AS 04.09.130. 16 (b) Failure to pay a biennial supplier fee or file a supplier declaration is a 17 violation. 18 Article 4. Retail Licenses. 19 Sec. 04.09.200. Beverage dispensary license. (a) A beverage dispensary 20 license authorizes the holder to sell or serve on the licensed premises alcoholic 21 beverages for consumption only on the licensed premises. 22 (b) The biennial beverage dispensary license fee is $2,500. 23 (c) The holder of a beverage dispensary license may not maintain on the 24 licensed premises more than one room in which there is regularly maintained a fixed 25 counter or service bar that has plumbing connections to permanent plumbing at which 26 alcoholic beverages are sold or served to members of the public for consumption, 27 unless the license has a multiple fixed counter endorsement under AS 04.09.420. 28 (d) Except as provided under AS 04.09.610, 04.09.640, 04.09.670, and 29 AS 04.16.120(c), the holder of a beverage dispensary license who sells or serves 30 alcoholic beverages off the licensed premises or permits consumption off the premises 31 of alcoholic beverages sold or served on the premises commits the offense of

01 unauthorized beverage dispensary activity. 02 (e) Unauthorized beverage dispensary activity is a violation. 03 Sec. 04.09.210. Restaurant or eating place license. (a) A restaurant or eating 04 place license authorizes a restaurant or eating place to sell brewed beverages and wine 05 for consumption only on the licensed premises. 06 (b) The biennial restaurant or eating place license fee is $1,250. 07 (c) The board may issue or renew a license under this section only if the 08 (1) board determines that the licensed premises is a bona fide 09 restaurant as defined in AS 04.21.080(b); 10 (2) licensee has, or the licensee has simultaneously applied for, a 11 restaurant endorsement; and 12 (3) sale and service of food and alcoholic beverages and any other 13 business conducted on the licensed premises of the restaurant or eating place is under 14 the sole control of the licensee. 15 (d) The holder of a restaurant or eating place license shall ensure that gross 16 receipts from the sale of food for consumption on the licensed premises are not less 17 than the total of the gross receipts from the sale of alcoholic beverages for 18 consumption on the licensed premises in each calendar year. At the time the holder 19 submits an application for renewal of the license, the holder shall submit a statement 20 to the board certifying that the holder has met the requirement under this subsection 21 for the designated period of the license under AS 04.11.680. The board may renew a 22 restaurant or eating place license only if the licensee's statement provides evidence 23 satisfactory to the board that, during the designated period of the license under 24 AS 04.11.680, the gross receipts from the sale of food for consumption on the licensed 25 premises were not less than the total of the gross receipts from the sale of alcoholic 26 beverages for consumption on the licensed premises. 27 (e) The holder of a restaurant or eating place license may provide 28 entertainment on or adjacent to the licensed premises only between the hours of 3:00 29 p.m. and 11:00 p.m. unless additional hours are approved by the director upon the 30 written request of the licensee for a specific occasion. The director may not grant 31 approval for additional hours of entertainment on or adjacent to the licensed premises

01 of an individual licensee more than six times in a calendar year. In this subsection, 02 "entertainment" includes dancing, karaoke, live performances, or similar activities, but 03 does not include recorded or broadcast performances without live participation. 04 (f) Except as provided under AS 04.09.620, 04.09.640, and AS 04.16.120(c), 05 the holder of a restaurant or eating place license commits the offense of failure to 06 comply with the terms of a restaurant or eating place license if the person sells brewed 07 beverages or wine in violation of (a) of this section or fails to comply with (e) of this 08 section. 09 (g) Failure to comply with the terms of a restaurant or eating place license is a 10 violation. 11 Sec. 04.09.220. Club license. (a) A club license authorizes a club or 12 organization to sell alcoholic beverages for consumption only on the licensed 13 premises. 14 (b) The biennial fee for a club license is $2,500. 15 (c) The board may issue a club license only to an organization operated for 16 social, recreational, benevolent, or athletic purposes and not for profit. The board may 17 issue a club license only to a club, fraternal organization, patriotic organization, or 18 social organization that has been 19 (1) chartered by a state or national organization for a period of 10 20 consecutive years before application for a license under this section; or 21 (2) chartered by a national organization that has maintained a chartered 22 club or organization within the state for a period of at least 20 years. 23 (d) Alcoholic beverages sold under a club license may be purchased only by 24 (1) members of the club and their families; 25 (2) widows or widowers of deceased members of the club who have 26 been accorded club privileges; and 27 (3) military personnel on active duty who are extended the privilege by 28 patriotic organizations. 29 (e) Alcoholic beverages may be purchased only in the portion of the club 30 rooms that are part of the licensed premises. 31 (f) Guests who enter the club premises on the invitation of a member and in

01 the company of the member may be served but not sold alcoholic beverages. A guest 02 shall leave the premises immediately upon the departure of the member who extended 03 the invitation to enter. 04 (g) Notwithstanding AS 04.16.049, access by persons under 21 years of age to 05 the 06 (1) licensed premises of a club is permitted when alcoholic beverages 07 are not present; and 08 (2) premises of a patriotic organization licensed as a club under this 09 section is permitted when alcoholic beverages are present, if the person possesses a 10 valid active duty military or armed forces identification card issued by the United 11 States Department of Defense or the United States Department of Homeland Security. 12 (h) The holder of a club license may not serve or sell alcoholic beverages for 13 use or consumption off the licensed premises of the club or organization, including use 14 or consumption by a club member or employee, except under a club caterer's permit. 15 (i) The holder of a club license may not 16 (1) solicit public patronage of the club premises, except as approved by 17 the board; 18 (2) distribute income from the sale of alcoholic beverages under the 19 license to a member, director, or officer; 20 (3) sell or serve alcoholic beverages in club rooms outside the portion 21 of the club rooms that are part of the licensed premises. 22 (j) In this section, "member" means a holder of a full year of paid membership 23 entitling the holder to all voting rights and privileges of membership under the 24 constitution or bylaws of the club or organization. 25 (k) The holder of a club license commits the offense of failure to comply with 26 the terms of a club license if the person sells alcoholic beverages in violation of (a) of 27 this section or violates (d), (e), (f), (h), or (i) of this section. 28 (l) Failure to comply with the terms of a club license is a violation. 29 Sec. 04.09.230. Package store license. (a) A package store license authorizes 30 the holder to operate a package store to store alcoholic beverages with federally 31 compliant labels, and to sell alcoholic beverages with federally compliant labels to a

01 person present on the licensed premises. 02 (b) The biennial package store license fee is $1,500. 03 (c) The licensed premises occupied by the holder of a package store license 04 may not be connected by a door, opening, or other means of passage intended for the 05 access of the general public to an adjacent retail business not licensed under this title 06 unless approved by the board. 07 (d) If the holder of a package store license also holds a beverage dispensary 08 license, the licensed premises of the package store are contained within or are adjacent 09 to the licensed premises of the beverage dispensary, and the only public entrance to 10 the package store is by a door or other means within the beverage dispensary, the 11 board shall determine whether additional entrances to the package store are necessary 12 for enforcement purposes, to meet health and fire safety standards, or for the 13 convenience of the public. 14 (e) The holder of a package store license may not 15 (1) offer alcoholic beverages for consumption on the licensed premises 16 or allow the consumption of alcoholic beverages on the licensed premises except as 17 authorized by a package store sampling endorsement issued under AS 04.09.490 or a 18 tasting event permit issued under AS 04.09.670; 19 (2) subdivide alcoholic beverages except as authorized by a package 20 store repackaging endorsement issued under AS 04.09.480; 21 (3) offer alcoholic beverages for sale or sell alcoholic beverages to a 22 person not present on the licensed premises who makes an order for shipment except 23 as authorized by a package store shipping endorsement under AS 04.09.460; or 24 (4) deliver alcoholic beverages to a person not present on the licensed 25 premises except as authorized by a package store delivery endorsement under 26 AS 04.09.470. 27 (f) The holder of a package store license commits the offense of failure to 28 comply with the terms of a package store license if the person stores or sells alcoholic 29 beverages in violation of (a) of this section or fails to comply with (c) or (e) of this 30 section. 31 (g) Failure to comply with the terms of a package store license is a violation.

01 Sec. 04.09.240. Pub license. (a) A pub license authorizes the holder to sell 02 brewed beverages and wine for consumption only at a designated premises located on 03 the campus of an accredited college or university. 04 (b) The biennial pub license fee is $1,250. 05 (c) The board may not 06 (1) issue more than one pub license for each accredited college or 07 university campus in the state; and 08 (2) issue or renew a pub license without the written approval of the 09 governing body of the accredited college or university. 10 (d) The board may designate two alternating premises for a pub license if 11 (1) both premises are 12 (A) located on the accredited college or university campus; 13 (B) not located in contiguous rooms or adjacent buildings; and 14 (C) under the licensee's control; 15 (2) at any time, only one location is operating as a licensed premises 16 with specified operating hours approved by the board; and 17 (3) all alcoholic beverages are either removed from the alternate 18 premises or stored in a secure location that is not accessible to the general public 19 during times when the alternate premises is not operating as a licensed premises. 20 (e) The board may suspend or revoke a licensee's use of an alternate premises 21 under (d) of this section after providing written notice and an opportunity to be heard 22 to the licensee. 23 (f) In this section, "accredited college or university" means a college or 24 university accredited by the Northwest Commission on Colleges and Universities. 25 (g) The holder of a pub license commits the offense of failure to comply with 26 the terms of a pub license if the person sells brewed beverages or wine in violation of 27 (a) of this section. 28 (h) Failure to comply with the terms of a pub license is a violation. 29 Sec. 04.09.250. Theater license. (a) A theater license authorizes the holder of 30 a beverage dispensary license or a restaurant or eating place license to sell alcoholic 31 beverages for consumption on licensed premises at a specified theater site, except that

01 a restaurant or eating place licensee with a theater license may only sell brewed 02 beverages and wine. 03 (b) The biennial theater license fee is $1,250. 04 (c) The holder of a theater license may sell or serve alcoholic beverages only 05 in designated areas on the licensed premises, and only for one hour before the event 06 and during intermissions. 07 (d) The holder of a theater license may not sell, serve, or permit the 08 consumption of alcoholic beverages in the audience viewing area. 09 (e) The holder of a theater license shall post the license conspicuously in the 10 theater during times when alcoholic beverages are sold. 11 (f) The board may not approve an application for transfer of a theater license 12 to another location. 13 (g) The board may deny an application for renewal of a theater license if the 14 theater license was not used for at least one event during each calendar year of the 15 license period. 16 (h) In this section, "theater" means a location where events, including plays, 17 operas, orchestra concerts, readings, and similar activities as determined by the board 18 are presented by live performers on a stage. 19 (i) A person commits the offense of failure to comply with the terms of a 20 theater license if the person sells, serves, or permits the consumption of alcoholic 21 beverages except as permitted in this section or fails to post the license as required by 22 this section. 23 (j) Failure to comply with the terms of a theater license is a violation. 24 Sec. 04.09.260. Common carrier dispensary license. (a) A common carrier 25 dispensary license authorizes the holder to sell alcoholic beverages for consumption 26 aboard a boat or train licensed by a state or federal agency for passenger travel, or 27 aboard aircraft operated by an airline licensed by a state or federal agency for 28 passenger travel. 29 (b) Except as provided for airlines under (c) of this section, the biennial 30 common carrier dispensary license fee is $1,000 for each of the first 10 licenses a 31 common carrier holds and $100 for each additional license issued to the common

01 carrier after the first 10 licenses. 02 (c) The biennial fee for a common carrier dispensary license issued to an 03 airline is the fee specified under (b) of this section for each aircraft in which alcoholic 04 beverages are served or $2,000 for each community served by the airline. An airline 05 shall specify the fee applicable to the license at the time of the airline's application for 06 issuance or renewal of the license. 07 (d) Except for a common carrier that is an airline, a common carrier shall 08 obtain a license for each boat or train in which alcoholic beverages are served. After 09 obtaining an initial license for the first boat or train, the common carrier may obtain 10 additional licenses for additional boats or trains upon making a written request 11 identifying the boat or train in the manner prescribed by the board, and paying the 12 biennial fee for additional licensed premises as required by (b) of this section. 13 (e) The holder of a common carrier dispensary license who exceeds the 14 authority granted in (a) of this section commits the crime of unauthorized common 15 carrier dispensary activity. 16 (f) Unauthorized common carrier dispensary activity is a class A 17 misdemeanor. 18 (g) The holder of a common carrier dispensary license who fails to comply 19 with (b) - (d) of this section commits the offense of common carrier dispensary 20 noncompliance. 21 (h) Common carrier dispensary noncompliance is a violation and is punishable 22 by a fine of $500 for each boat, train, or aircraft not in compliance with this section. 23 Sec. 04.09.270. Sporting event license. (a) A sporting event license authorizes 24 the holder to sell brewed beverages and wine at a sporting event site during and one 25 hour before and after a sporting event that is not a school event, for consumption on 26 designated areas at the sporting event site. 27 (b) The biennial sporting event license fee is $1,250. 28 (c) In this section, "sporting event site" includes a location where baseball, 29 hockey, rugby, soccer, or football games, car races, dog sled racing events, or curling 30 matches are regularly held during a season. 31 (d) The holder of a sporting event license who sells brewed beverages or wine

01 off the licensed premises or during hours not authorized under (a) of this section or 02 who permits consumption off the premises of brewed beverages or wine sold on the 03 premises commits the offense of unauthorized sporting event activity. 04 (e) Unauthorized sporting event activity is a violation. 05 (f) The holder, on the day before the effective date of this section, of a 06 recreational site license issued under former AS 04.11.210 who offered brewed 07 beverages and wine for sale to the public for consumption on the licensed premises 08 may continue to offer brewed beverages and wine for sale to the public for 09 consumption on the premises until December 31, 2026, for a license renewing on an 10 even-numbered year, or December 31, 2027, for a license renewing on an odd- 11 numbered year, if the holder of the license is otherwise in compliance with the 12 requirements of this title as it read on the day before the effective date of this section. 13 Sec. 04.09.280. Outdoor recreation lodge license. (a) An outdoor recreation 14 lodge license authorizes the holder to sell alcoholic beverages to a registered overnight 15 guest or off-duty staff of the lodge for consumption on the licensed premises or in 16 conjunction with purchased outdoor recreation activities provided by the licensee. 17 (b) The biennial outdoor recreation lodge license fee is $2,500. 18 (c) The board may not grant an application for transfer of an outdoor 19 recreation lodge license to another location. 20 (d) In this section, "outdoor recreation lodge" means a licensed business that 21 provides overnight accommodations and meals, is primarily involved in offering 22 opportunities for persons to engage in outdoor recreation activities, and has a 23 minimum of two guest rooms. 24 (e) The holder of an outdoor recreation lodge license who sells alcoholic 25 beverages in violation of the authority granted under (a) of this section commits the 26 offense of unauthorized outdoor recreation lodge activity. 27 (f) Unauthorized outdoor recreation lodge activity is a violation. 28 Sec. 04.09.290. Golf course license. (a) A golf course license authorizes the 29 holder to sell brewed beverages and wine for consumption on the licensed premises. 30 (b) The biennial golf course license fee is $1,250. 31 (c) An application for a golf course license must include

01 (1) a drawing of the golf course with an annotated illustration and 02 description of the portions of the course that are intended to be licensed premises; and 03 (2) a sample food menu. 04 (d) The board may not approve an application for transfer of a golf course 05 license to another location. 06 (e) The holder of a golf course license shall make food similar to that listed in 07 the sample menu available during times when brewed beverages and wine are sold, 08 served, and consumed on the licensed premises. 09 (f) The holder of a golf course license may not allow a person other than the 10 holder or an agent or employee of the holder, in the regular course of employment, to 11 bring alcoholic beverages onto the licensed premises or other portions of the course 12 for consumption. 13 (g) In this section, "licensed premises" includes the golf course, a driving 14 range, a club house, and other buildings located on the course, and a vending cart 15 carrying beverages or food to, from, or on the course, and does not include the parking 16 lot. 17 (h) The holder of a golf course license commits the offense of failure to 18 comply with the terms of a golf course license if the person sells brewed beverages or 19 wine in violation of this section or violates (e) or (f) of this section. 20 (i) Failure to comply with the terms of a golf course license is a violation. 21 Sec. 04.09.300. Destination resort license. (a) A destination resort license 22 authorizes the holder to sell alcoholic beverages at a destination resort for 23 consumption on the licensed premises in conjunction with the visitor activities 24 provided by the licensee to cruise ship passengers and staff and other visitors while the 25 cruise ship is in port at the resort. 26 (b) The biennial destination resort license fee is $2,500. 27 (c) The board may not approve an application for transfer of a destination 28 resort license to another location. 29 (d) In this section, "destination resort" means a business that owns a site of at 30 least 20 acres that is used principally as a destination for cruise ships and other vessels 31 that carry a minimum of 50 passengers and that does not provide overnight lodging on

01 its premises for visitors. 02 (e) The holder of a destination resort license commits the offense of failure to 03 comply with a destination resort license if the person sells alcoholic beverages in 04 violation of (a) of this section. 05 (f) Failure to comply with the terms of a destination resort license is a 06 violation. 07 Sec. 04.09.310. Brewery retail license. (a) A brewery retail license authorizes 08 the holder to store, sell, or serve on the licensed premises brewed beverages for 09 consumption on and off the premises. 10 (b) The biennial brewery retail license fee is $1,250. 11 (c) The board may issue a brewery retail license only to the holder of a 12 brewery manufacturer license under AS 04.09.020. The brewery retail licensed 13 premises may be all or part of the brewery manufacturer licensed premises, or the 14 brewery retail licensed premises may be at a single different site that is adjacent to the 15 brewery manufacturer licensed premises. 16 (d) Each day, the holder of a brewery retail license may sell, to a person on the 17 licensed premises for consumption on the licensed premises, not more than 18 (1) 36 ounces of the holder's beer; or 19 (2) 18 ounces of the holder's sake. 20 (e) The holder of a brewery retail license may not 21 (1) allow live entertainment, televisions, pool tables, dart games, 22 dancing, electronic or other games, game tables, or other recreational or gaming 23 opportunities on or adjacent to the premises where the consumption occurs; 24 (2) provide seats at the counter or bar where the brewed beverages are 25 served; 26 (3) open the room where the consumption occurs before 9:00 a.m.; or 27 (4) serve brewed beverages after 8:00 p.m. 28 (f) Each day, the holder of a brewery retail license is authorized to sell, to a 29 person on the licensed premises for consumption off the licensed premises, not more 30 than 31 (1) 5.167 gallons of the holder's beer; or

01 (2) nine liters of the holder's sake. 02 (g) The holder of a brewery retail license commits the offense of failure to 03 comply with the terms of a brewery retail license if the person stores, sells, or serves 04 brewed beverages in violation of (a) of this section or violates (d), (e), or (f) of this 05 section. 06 (h) Failure to comply with the terms of a brewery retail license is a violation. 07 Sec. 04.09.320. Winery retail license. (a) A winery retail license authorizes 08 the holder to store, sell, or serve on the licensed premises wine for consumption on 09 and off the premises. 10 (b) The biennial winery retail license fee is $1,250. 11 (c) The board may issue a winery retail license only to the holder of a winery 12 manufacturer license issued under AS 04.09.030. The winery retail licensed premises 13 may be all or part of the winery manufacturer licensed premises, or the winery retail 14 licensed premises may be at a single different site that is adjacent to the winery 15 manufacturer licensed premises. 16 (d) Each day, the holder of a winery retail license may sell, to a person on the 17 licensed premises for consumption on the licensed premises, not more than 18 (1) 18 ounces of the holder's wine, mead, or cider containing 8.5 19 percent or more alcohol by volume; or 20 (2) 36 ounces of the holder's cider containing less than 8.5 percent 21 alcohol by volume. 22 (e) The holder of a winery retail license may not 23 (1) allow live entertainment, televisions, pool tables, dart games, 24 dancing, electronic or other games, game tables, or other recreational or gaming 25 opportunities on or adjacent to the premises where the consumption occurs; 26 (2) provide seats at the counter or bar where the wine is served; 27 (3) open the room where the consumption occurs before 9:00 a.m.; or 28 (4) serve wine after 8:00 p.m. 29 (f) Each day, the holder of a winery retail license is authorized to sell, to a 30 person on the licensed premises for consumption off the licensed premises, not more 31 than

01 (1) nine liters of the holder's wine, mead, or cider containing 8.5 02 percent or more alcohol by volume; or 03 (2) 5.167 gallons of the holder's cider containing less than 8.5 percent 04 alcohol by volume. 05 (g) The holder of a winery retail license commits the offense of failure to 06 comply with the terms of a winery retail license if the person stores, sells, or serves 07 wine in violation of (a) of this section or violates (d), (e), or (f) of this section. 08 (h) Failure to comply with the terms of a winery retail license is a violation. 09 (i) The holder, on the day before the effective date of this section, of a winery 10 license issued under former AS 04.11.140 who provided seating at the counter or bar 11 where the wine is served on the winery's licensed premises may continue to provide 12 seating at the counter or bar where the wine is served for a period ending on 13 December 31, 2022, for a license that is subject to renewal on an even-numbered year 14 and December 31, 2023, for a license that is subject to renewal on an odd-numbered 15 year. 16 Sec. 04.09.330. Distillery retail license. (a) A distillery retail license 17 authorizes the holder to store, sell, or serve on the licensed premises distilled spirits 18 for consumption on and off the premises. 19 (b) The biennial distillery retail license fee is $1,250. 20 (c) The board may issue a distillery retail license only to the holder of a 21 distillery manufacturer license under AS 04.09.040. The distillery retail licensed 22 premises may be all or part of the distillery manufacturer licensed premises, or the 23 distillery retail licensed premises may be at a single different site that is adjacent to the 24 distillery manufacturer licensed premises. 25 (d) The holder of a distillery retail license may sell not more than three ounces 26 of the holder's distilled spirits each day to a person on the licensed premises for 27 consumption on the licensed premises. 28 (e) The holder of a distillery retail license may not 29 (1) allow live entertainment, televisions, pool tables, dart games, 30 dancing, electronic or other games, game tables, or other recreational or gaming 31 opportunities on or adjacent to the premises where the consumption occurs;

01 (2) provide seats at the counter or bar where the distilled spirits are 02 served; 03 (3) open the room where the consumption occurs before 9:00 a.m.; or 04 (4) serve distilled spirits after 8:00 p.m. 05 (f) The holder of a distillery retail license is authorized to sell not more than 06 3.75 liters of the holder's distilled spirits each day to a person on the licensed premises 07 for consumption off the licensed premises. 08 (g) The holder of a distillery retail license commits the offense of failure to 09 comply with the terms of a distillery retail license if the person stores, sells, or serves 10 distilled spirits in violation of (a) of this section or violates (d), (e), or (f) of this 11 section. 12 (h) Failure to comply with the terms of a distillery retail license is a violation. 13 Sec. 04.09.340. Beverage dispensary tourism license. (a) A beverage 14 dispensary tourism license authorizes the holder to sell or serve on the licensed 15 premises alcoholic beverages for consumption only on the licensed premises. 16 (b) The biennial beverage dispensary tourism license fee is $2,500. 17 (c) The board may issue a beverage dispensary tourism license or approve an 18 application for the transfer of ownership of a beverage dispensary tourism license if it 19 appears that issuance or transfer will encourage the tourism trade by promoting the 20 construction or improvement of 21 (1) a hotel, motel, resort, or similar business relating to the tourist trade 22 with a dining facility or having kitchen facilities in a majority of its rental rooms and 23 at least a minimum number of rental rooms required according to the population of the 24 established village, incorporated city, unified municipality, or population area 25 established under AS 04.11.400(a) in which the facility will be located, as follows: 26 (A) 10 rental rooms if the population is less than 1,501; 27 (B) 20 rental rooms if the population is 1,501 - 2,500; 28 (C) 25 rental rooms if the population is 2,501 - 5,000; 29 (D) 30 rental rooms if the population is 5,001 - 15,000; 30 (E) 35 rental rooms if the population is 15,001 - 25,000; 31 (F) 40 rental rooms if the population is 25,001 - 50,000; and

01 (G) 50 rental rooms if the population is greater than 50,000; or 02 (2) an airport terminal. 03 (d) The holder of a beverage dispensary tourism license may not maintain on 04 the licensed premises more than one room in which there is regularly maintained a 05 fixed counter or service bar that has plumbing connections to permanent plumbing at 06 which alcoholic beverages are sold or served to members of the public for 07 consumption unless the license has a multiple fixed counter endorsement under 08 AS 04.09.420, a hotel or motel endorsement under AS 04.09.430, or a large resort 09 endorsement under AS 04.09.440. 10 (e) Except as provided under AS 04.09.610, 04.09.640, 04.09.670, and 11 AS 04.16.120(c), the holder of a beverage dispensary tourism license who sells or 12 serves alcoholic beverages off the licensed premises or permits consumption off the 13 premises of alcoholic beverages sold or served on the premises commits the offense of 14 unauthorized beverage dispensary tourism activity. 15 (f) Unauthorized beverage dispensary tourism activity is a violation. 16 Sec. 04.09.350. Seasonal restaurant or eating place tourism license. (a) A 17 seasonal restaurant or eating place tourism license authorizes a restaurant or eating 18 place to sell brewed beverages and wine for consumption only on the licensed 19 premises for a period not to exceed six months in each calendar year. 20 (b) The biennial seasonal restaurant or eating place tourism license fee is 21 $1,250. 22 (c) The board may issue or renew a license under this section only if 23 (1) the board determines that the licensed premises is a bona fide 24 restaurant as defined in AS 04.21.080(b); 25 (2) the licensee has, or the licensee has simultaneously applied for, a 26 restaurant endorsement; and 27 (3) the sale and service of food and alcoholic beverages and any other 28 business conducted on the licensed premises of the restaurant or eating place is under 29 the sole control of the licensee. 30 (d) The board may issue a license under this section only in a municipality or 31 established village that

01 (1) has a population of 20,000 or less; and 02 (2) includes a community that receives more than 4,000 visitors a year, 03 as determined by the Department of Commerce, Community, and Economic 04 Development. 05 (e) The board may issue a license or approve an application for the transfer of 06 ownership of a license under this section if it appears that issuance or transfer will 07 encourage the tourism trade. 08 (f) The holder of a seasonal restaurant or eating place tourism license shall 09 ensure that gross receipts from the sale of food for consumption on the licensed 10 premises are not less than the total of the gross receipts from the sale of alcoholic 11 beverages for consumption on the licensed premises in each calendar year. At the time 12 the holder submits an application for renewal of the license, the holder shall submit a 13 statement to the board certifying that the holder has met the requirement under this 14 subsection for the designated period of the license under AS 04.11.680. The board 15 may renew a seasonal restaurant or eating place tourism license only if the licensee 16 provides evidence satisfactory to the board that, during the designated period of the 17 license under AS 04.11.680, the gross receipts from the sale of food for consumption 18 on the licensed premises were not less than the total of the gross receipts from the sale 19 of alcoholic beverages for consumption on the licensed premises. 20 (g) The board shall adopt a regulation establishing a formula to limit the 21 number of seasonal restaurant or eating place tourism licenses. 22 (h) The holder of a seasonal restaurant or eating place tourism license may 23 provide entertainment on or adjacent to the licensed premises only between the hours 24 of 3:00 p.m. and 11:00 p.m. unless additional hours are approved by the director upon 25 the written request of the licensee for a specific occasion. The director may not grant 26 approval for additional hours of entertainment on or adjacent to the licensed premises 27 of an individual licensee more than three times in a calendar year. In this subsection, 28 "entertainment" includes dancing, karaoke, live performances, or similar activities, but 29 does not include recorded or broadcast performances without live participation. 30 (i) Except as provided under AS 04.09.620, 04.09.640, and AS 04.16.120(c), 31 the holder of a seasonal restaurant or eating place tourism license commits the offense

01 of failure to comply with the terms of a seasonal restaurant or eating place tourism 02 license if the person sells brewed beverages or wine in violation of (a) of this section 03 or fails to comply with (f) or (h) of this section. 04 (j) Failure to comply with the terms of a seasonal restaurant or eating place 05 tourism license is a violation. 06 Sec. 04.09.360. Winery direct shipment license. (a) A winery direct shipment 07 license authorizes the holder of a winery retail license issued under AS 04.09.320, or 08 the holder of a winery license issued in another state, to sell the holder's wine in 09 response to an order for shipment to a person, for personal use only and not for resale, 10 who is located in the state. A winery direct shipment license may not be transferred to 11 another person or another location. 12 (b) The biennial fee for a winery direct shipment license is $200. 13 (c) An applicant for issuance or renewal of a winery direct shipment license 14 shall 15 (1) submit an application on a form prescribed by the board; 16 (2) consent to the jurisdiction of the board, the Department of 17 Revenue, and any other state agency or state court concerning enforcement of this 18 title; and 19 (3) if the applicant is the holder of a license or permit authorizing the 20 holder to manufacture and sell wine to the public issued in another state, provide to the 21 board a copy of the holder's license or permit issued 22 (A) in the state; and 23 (B) by the Alcohol and Tobacco Tax and Trade Bureau. 24 (d) All wine shipped to a purchaser in the state by the holder of a winery direct 25 shipment license is subject to the state excise tax. 26 (e) The holder of a winery direct shipment license may not 27 (1) ship wine to an address located in an area that has adopted a local 28 option under AS 04.11.491; 29 (2) sell more than the equivalent of six nine-liter cases of wine to a 30 purchaser in one transaction, or more than the equivalent of 12 nine-liter cases of wine 31 to a purchaser in a calendar year; and

01 (3) ship wine using a common carrier who is not approved by the 02 board to ship alcoholic beverages to persons in the state under AS 04.16.125(b). 03 (f) Before shipping an order under this section, the holder of a winery direct 04 shipment license shall 05 (1) verify that the person submitting the order is at least 21 years of 06 age, using an age verification service or other method, and that the named recipient of 07 the shipment, if not the same person as the person submitting the order, is at least 21 08 years of age; 09 (2) determine that the order will not exceed the limits of (e)(2) of this 10 section; 11 (3) provide written or electronic information to the person submitting 12 the order on fetal alcohol syndrome and fetal alcohol effects resulting from a woman's 13 consumption of alcohol during pregnancy; and 14 (4) label the shipping container as containing alcoholic beverages and 15 requiring a signature by a person who is at least 21 years of age upon delivery. 16 (g) The holder of a winery direct shipment license shall 17 (1) retain records of sales made under this license for at least two 18 years; and 19 (2) make records of sales available for inspection and audit by the 20 board and the Department of Revenue. 21 (h) The board shall compile a list that is available for public inspection of 22 local option areas and notify the holder of a winery direct shipment license of any 23 change to the list. 24 (i) The holder of a winery direct shipment license commits the offense of 25 failure to comply with the terms of a winery direct shipment license if the person fails 26 to comply with (e) - (g) of this section. 27 (j) Failure to comply with the terms of a winery direct shipment license is a 28 violation. 29 Sec. 04.09.370. Unlicensed retail sale. (a) A person commits the crime of 30 unlicensed retail sale if the person knowingly operates without the appropriate license 31 a retail operation that requires a license under AS 04.09.200 - 04.09.360.

01 (b) Unlicensed retail sale is a class A misdemeanor and is punishable under 02 AS 12.55. 03 Sec. 04.09.380. Unlicensed retail sale in a local option area. (a) A person 04 commits the crime of unlicensed retail sale in a local option area if the person 05 knowingly operates without a license in an area that has adopted a local option under 06 AS 04.11.491 a retail operation that requires a license under AS 04.09.200 - 07 04.09.360. 08 (b) Unlicensed retail sale in a local option area is a class C felony and is 09 punishable under AS 12.55. 10 Article 5. Endorsements. 11 Sec. 04.09.400. Types of endorsements. (a) An endorsement expands the 12 boundaries of a licensed premises or the authorized activities of a licensed business. 13 (b) Only the board may issue an endorsement. The board may issue only the 14 endorsements authorized in AS 04.09.400 - 04.09.520. 15 (c) An endorsement is valid only in conjunction with a license. An 16 endorsement may only be transferred to another person if the license for which the 17 endorsement was issued is also transferred to that person. An endorsement expires if 18 the licensed premises are relocated, the license expires, or the license is revoked. 19 (d) Except as provided in (c) of this section, an endorsement is valid for the 20 duration of the license as designated in AS 04.11.680. The holder of the endorsement 21 shall renew the endorsement biennially. 22 (e) An application for an endorsement under AS 04.09.400 - 04.09.520 must 23 (1) be made in writing on a form prescribed by the board; and 24 (2) demonstrate that the holder of the license has authority over and 25 will exercise control over conduct of the business in all areas of the licensed premises, 26 including premises newly licensed by the endorsement. 27 Sec. 04.09.410. Manufacturer sampling endorsement. (a) A manufacturer 28 sampling endorsement authorizes the holder of a brewery manufacturer license, 29 winery manufacturer license, or distillery manufacturer license to offer for 30 consumption on the licensed premises at no charge a small sample of an alcoholic 31 beverage produced by the manufacturer.

01 (b) The biennial fee for a manufacturer sampling endorsement is $200. 02 (c) A person serving a sample of an alcoholic beverage under this section must 03 have a current alcohol server education card issued under AS 04.21.025(c). Only the 04 license holder or an agent or employee of the license holder may serve a sample. 05 (d) The holder of a manufacturer sampling endorsement may serve a total 06 volume of samples to a person on a licensed premises each day that does not exceed 07 (1) for the holder of a brewery manufacturer license, 08 (A) 12 ounces of beer; or 09 (B) six ounces of sake; 10 (2) for the holder of a winery manufacturer license, 11 (A) six ounces of wine, mead, or cider containing 8.5 percent 12 or more alcohol by volume; or 13 (B) 12 ounces of cider containing less than 8.5 percent alcohol 14 by volume; 15 (3) for the holder of a distillery manufacturer license, 1.5 ounces of 16 distilled spirits. 17 (e) The holder of a manufacturer sampling endorsement may not publicly 18 advertise, including through newsprint, radio, or television, sampling activities 19 conducted under the endorsement. However, the holder of a manufacturer sampling 20 endorsement may notify existing customers of sampling activities, including by 21 electronic means. 22 (f) A person who offers a sample of an alcoholic beverage for consumption on 23 the licensed premises of a brewery, winery, or distillery without an endorsement under 24 this section commits the offense of unendorsed sampling. 25 (g) Unendorsed sampling is a violation and is punishable by a fine of $500. 26 (h) The holder of a manufacturer sampling endorsement who fails to comply 27 with the requirements of (c) - (e) of this section commits the offense of failure to 28 comply with the terms of a manufacturer sampling endorsement. 29 (i) Failure to comply with the terms of a manufacturer sampling endorsement 30 is a violation. 31 Sec. 04.09.420. Multiple fixed counter endorsement. (a) A multiple fixed

01 counter endorsement authorizes the holder of a beverage dispensary license or a 02 beverage dispensary tourism license to sell or serve alcoholic beverages on the 03 licensed premises from multiple fixed counters. 04 (b) The biennial fee for a multiple fixed counter endorsement is $200. 05 (c) In addition to the fee under (b) of this section, the initial application fee for 06 each fixed counter covered under the endorsement is $1,250. 07 (d) An initial application for a multiple fixed counter endorsement must 08 include an annotated drawing of the location of each fixed counter in the licensed 09 premises. 10 (e) A fixed counter at which alcoholic beverages are sold or served to the 11 public for consumption covered under a multiple fixed counter endorsement must be a 12 regularly maintained fixed counter or service bar that has plumbing connections to 13 permanent plumbing. Multiple fixed counters must be located in the same building 14 under the same contiguous licensed premises as set out in regulation, except as 15 provided for the holder of a hotel or motel endorsement under AS 04.09.430 or a large 16 resort endorsement under AS 04.09.440. The board shall adopt regulations to 17 implement this subsection. 18 (f) The holder of a beverage dispensary license or a beverage dispensary 19 tourism license who maintains multiple fixed counters without an endorsement under 20 this section commits the offense of unendorsed service at multiple fixed counters. 21 (g) The holder of a multiple fixed counter endorsement who fails to comply 22 with the requirements of (e) of this section commits the offense of multiple fixed 23 counter endorsement noncompliance. 24 (h) Unendorsed service at multiple fixed counters is a violation and is 25 punishable by a fine of $500. 26 (i) Multiple fixed counter endorsement noncompliance is a violation. 27 Sec. 04.09.430. Hotel or motel endorsement. (a) A hotel or motel 28 endorsement authorizes the holder of a beverage dispensary license or a beverage 29 dispensary tourism license that is a hotel, motel, resort, or similar business premises 30 that caters to the traveling public as a substantial part of its business to sell or serve 31 alcoholic beverages on the licensed premises, including in the dining room, banquet

01 room, and other public areas approved by the board, and in guest rooms. 02 (b) The biennial fee for a hotel or motel endorsement is $200. 03 (c) The holder of a beverage dispensary license or a beverage dispensary 04 tourism license that is a hotel, motel, resort, or similar business premises that caters to 05 the traveling public as a substantial part of its business shall apply for a multiple fixed 06 counter endorsement under AS 04.09.420 to sell or serve alcoholic beverages at a 07 secondary location located in a building different than the licensed premises for the 08 beverage dispensary license or a beverage dispensary tourism license if the different 09 building 10 (1) is located on the same property as, adjacent to, or attached to the 11 originally licensed premises; 12 (2) principally caters to guests of the hotel or motel; and 13 (3) principally encourages the tourism trade at the hotel or motel. 14 (d) The holder of a hotel or motel endorsement may stock alcoholic beverages 15 in guest rooms, for sale and consumption only in the guest room. Alcoholic beverages 16 stocked under this subsection must be stocked by an employee who is 21 years of age 17 or older, may not be supplied or resupplied during hours that the sale of alcoholic 18 beverages is prohibited as provided under AS 04.16.010(a) and (d), and must be stored 19 in a unit using a key or combination lock system within the guest room. A key lock 20 system must be designed to prevent the removal of the key unless the unit is locked. 21 Except for the licensee, or an agent or employee of the licensee, a key or combination 22 enabling a person to obtain alcoholic beverages stocked in a guest room may only be 23 provided to a guest who occupies the room and who is 21 years of age or older. 24 (e) The holder of a hotel or motel endorsement shall exercise control over 25 conduct of the business in all areas of the licensed premises. 26 (f) The holder of a beverage dispensary license or a beverage dispensary 27 tourism license who engages in activity under this section without an endorsement 28 under this section commits the offense of unendorsed hotel or motel service. 29 (g) The holder of a hotel or motel endorsement who fails to comply with the 30 requirements of this section commits the offense of hotel or motel endorsement 31 noncompliance.

01 (h) Unendorsed hotel or motel service is a violation and is punishable by a fine 02 of $500. 03 (i) Hotel or motel endorsement noncompliance is a violation. 04 Sec. 04.09.440. Large resort endorsement. (a) A large resort endorsement 05 authorizes the holder of a beverage dispensary license or a beverage dispensary 06 tourism license that is a large resort to sell or serve alcoholic beverages from multiple 07 locations on the resort property including in the dining room, banquet room, and other 08 public areas approved by the board, and in guest rooms, regardless of whether the 09 locations are in the same building or under the same roof. 10 (b) The biennial fee for a large resort endorsement is $200. 11 (c) The holder of a large resort endorsement shall apply for a multiple fixed 12 counter endorsement under AS 04.09.420 to sell or serve alcoholic beverages from 13 multiple locations within the large resort's property. The locations do not need to be 14 located in the same building or on the same parcel, but must be within the boundary of 15 the large resort, as that term is defined in (h) of this section. 16 (d) The holder of a large resort endorsement may sell or serve alcoholic 17 beverages only from locations on the site of the large resort. 18 (e) For federal income tax purposes, the profit and loss from the licensed 19 business conducted at locations on the resort under a large resort endorsement, other 20 than guest rooms, must be combined or consolidated with the profit and loss from the 21 licensed business conducted under the multiple fixed counter endorsement. 22 (f) The holder of a large resort endorsement shall exercise control over 23 conduct of the business in all areas of the licensed premises. 24 (g) A holder of a beverage dispensary license with a large resort endorsement 25 may stock alcoholic beverages in guest rooms, for sale and consumption only in the 26 guest room. Alcoholic beverages stocked under this subsection must be stocked by an 27 employee who is 21 years of age or older, may not be supplied or resupplied during 28 hours that the sale of alcoholic beverages is prohibited as provided under 29 AS 04.16.010(a) and (d), and must be stored in a unit using a key or combination lock 30 system within the guest room. A key lock system must be designed to prevent the 31 removal of the key unless the unit is locked. Except for the licensee, or an agent or

01 employee of the licensee, a key or combination enabling a person to obtain alcoholic 02 beverages stocked in a guest room may be provided only to a guest who occupies the 03 room and who is 21 years of age or older. 04 (h) In this section, "large resort" means a resort that offers both outdoor 05 recreational activities and overnight lodging to the public and is located on a site 06 consisting of at least 10 contiguous acres containing one or more parcels of real 07 property owned by the licensee, leased by the licensee, or a combination of parcels 08 owned by the licensee and leased by the licensee. 09 (i) The holder of a beverage dispensary license or a beverage dispensary 10 tourism license who engages in activity under this section without an endorsement 11 under this section commits the offense of unendorsed large resort service. 12 (j) The holder of a large resort endorsement who fails to comply with the 13 requirements of (c) - (g) of this section commits the offense of large resort 14 endorsement noncompliance. 15 (k) Unendorsed large resort service is a violation and is punishable by a fine of 16 $500. 17 (l) Large resort endorsement noncompliance is a violation. 18 Sec. 04.09.450. Restaurant endorsement. (a) A restaurant endorsement 19 authorizes the holder of a restaurant or eating place license, beverage dispensary 20 license, golf course license, sporting event license, club license, outdoor recreation 21 lodge license, destination resort license, beverage dispensary tourism license, or 22 seasonal restaurant or eating place tourism license to allow a person 23 (1) under 21 years of age access as provided in (e) of this section to the 24 premises of a bona fide restaurant on the licensed premises; and 25 (2) to enter or remain on the licensed premises to consume food or 26 nonalcoholic beverages as authorized under AS 04.16.010(c)(5). 27 (b) The biennial fee for a restaurant endorsement is $200. 28 (c) An application for a restaurant endorsement must specify the establishment 29 or portion of the establishment that constitutes a bona fide restaurant. 30 (d) The board may issue an endorsement under this section only if the board 31 finds

01 (1) that the establishment or portion of the establishment for which the 02 endorsement is requested is a bona fide restaurant; 03 (2) there is supervision on the premises adequate to reasonably ensure 04 that a person under 21 years of age will not obtain alcoholic beverages; and 05 (3) that it is unlikely that persons under 21 years of age not employed 06 on the premises will enter and remain on the premises of the bona fide restaurant for 07 purposes other than dining. 08 (e) The board may authorize the holder of a license with a restaurant 09 endorsement 10 (1) to allow a person who is at least 16 years of age but under 21 years 11 of age to enter and remain on the licensed premises for dining only; 12 (2) to allow a person who is under 16 years of age to enter and remain 13 on the licensed premises for dining only if 14 (A) the person is accompanied by a person who is 21 years of 15 age or older; and 16 (B) the parent or guardian of the person consents to the person 17 being on the licensed premises; and 18 (3) subject to AS 04.16.049, to employ or permit the employment of a 19 person who is at least 16 years of age but under 21 years of age on the premises of the 20 bona fide restaurant if the employer provides adequate supervision to ensure that the 21 person does not obtain alcoholic beverages. 22 (f) The holder of a license who engages in activity under this section without 23 an endorsement under this section commits the offense of unendorsed restaurant 24 service. 25 (g) The holder of a restaurant endorsement who engages in activity not 26 authorized by the board under (e) of this section or fails to comply with the 27 requirements of (e) of this section commits the offense of restaurant endorsement 28 noncompliance. 29 (h) Unendorsed restaurant service is a violation and is punishable by a fine of 30 $500. 31 (i) Restaurant endorsement noncompliance is a violation.

01 Sec. 04.09.460. Package store shipping endorsement. (a) A package store 02 shipping endorsement authorizes the holder of a package store license to sell alcoholic 03 beverages to a person who makes an order to that licensee for shipment. 04 (b) The biennial fee for a package store shipping endorsement is $200. 05 (c) An endorsement holder may ship alcoholic beverages only to the purchaser 06 and may ship alcoholic beverages only in response to an order. The endorsement 07 holder may not, in response to an order, ship alcohol to a purchaser at an address other 08 than the address where the purchaser resides or, if the purchaser resides in a 09 municipality or established village that has adopted a local option under 10 AS 04.11.491(a)(1), (2), or (3) or (b)(1) or (2) for which a community delivery site has 11 been designated under AS 04.11.491(f), to an address other than that community 12 delivery site except as provided by AS 04.11.491(f)(1) and (2). 13 (d) An endorsement holder shall provide written or electronic information on 14 fetal alcohol syndrome and fetal alcohol effects resulting from a woman's 15 consumption of alcohol during pregnancy to the purchaser in response to an order. 16 (e) If a shipment is to an area that has restricted the sale of alcoholic beverages 17 under AS 04.11.491(a)(1), (2), or (3) or (b)(1) or (2), an endorsement holder may not 18 ship to a purchaser more than 10.5 liters of distilled spirits or 24 liters or more of wine, 19 or either a half-barrel keg of brewed beverages or 15.5 gallons or more of brewed 20 beverages in individual containers in a calendar month, or a lower amount of distilled 21 spirits, wine, or brewed beverages if the municipality or established village has 22 adopted the lower amount by local option under AS 04.11.491(g). Before shipping 23 alcohol to a purchaser in a restricted area, an endorsement holder shall consult the 24 database maintained by the board under AS 04.06.095 for any alcoholic beverage 25 shipments made to the purchaser during that calendar month by a package store. An 26 endorsement holder may not ship an amount of alcoholic beverages to a purchaser in a 27 restricted area that, when added to the amount already shipped, exceeds the amount 28 authorized by this subsection. An endorsement holder shall immediately enter into the 29 database the date and the amount of alcoholic beverages shipped to the purchaser. 30 (f) An endorsement holder may not divide or combine shipments of alcoholic 31 beverages so as to circumvent the limitation imposed under (e) of this section.

01 (g) In this section, "endorsement holder" means the holder of a package store 02 license with a package store shipping endorsement, and an agent or employee of the 03 holder of a package store license with a package store shipping endorsement. 04 (h) The holder of a package store license who ships alcoholic beverages 05 without an endorsement under this section commits the offense of unendorsed package 06 store shipping. 07 (i) The holder of a package store shipping endorsement who fails to comply 08 with the requirements of (c) - (f) of this section commits the offense of package store 09 shipping endorsement noncompliance. 10 (j) Unendorsed package store shipping is a violation and is punishable by a 11 fine of $500. 12 (k) Package store shipping endorsement noncompliance is a violation. 13 Sec. 04.09.470. Package store delivery endorsement. (a) A package store 14 delivery endorsement authorizes the holder of a package store license to deliver 15 alcoholic beverages to the location of a social event as set out in this section. For 16 purposes of this subsection, the board shall define by regulation the term "social 17 event." 18 (b) The biennial fee for a package store delivery endorsement is $200. 19 (c) The holder of a package store delivery endorsement may deliver alcoholic 20 beverages only in response to an order. The board shall adopt regulations specifying 21 the occasions for which delivery of alcoholic beverages is allowed and the manner of 22 delivery by the licensee. 23 (d) The holder of a package store delivery endorsement may deliver alcoholic 24 beverages only to a responsible adult at the delivery location specified on the order. 25 The responsible adult shall provide identification and acceptable proof of age under 26 AS 04.21.050 and acknowledge in writing receipt of the alcoholic beverages. 27 (e) The holder of a package store license who delivers alcoholic beverages 28 without an endorsement under this section commits the offense of unendorsed package 29 store delivery. 30 (f) The holder of a package store delivery endorsement who fails to comply 31 with the requirements of (c) and (d) of this section commits the offense of package

01 store delivery endorsement noncompliance. 02 (g) Unendorsed package store delivery is a violation and is punishable by a 03 fine of $500. 04 (h) Package store delivery endorsement noncompliance is a violation. 05 Sec. 04.09.480. Package store repackaging endorsement. (a) A package 06 store repackaging endorsement authorizes the holder of a package store license to 07 subdivide and sell alcoholic beverages from original packages with federally 08 compliant labels to smaller containers with the standard federal government warnings 09 and the product name. 10 (b) The biennial fee for a package store repackaging endorsement is $200. 11 (c) A package store licensee with a package store repackaging endorsement 12 may 13 (1) subdivide alcoholic beverages 14 (A) for sale on the licensed premises by opening the original 15 package for the purpose of subdividing the contents into smaller packages; or 16 (B) in response to a purchase request from a person who is on 17 the licensed premises or purchase order submitted in accordance with 18 AS 04.09.470(c); 19 (2) permit an agent or employee to subdivide alcoholic beverages, but 20 may not permit a customer or another person who is not an agent or employee of the 21 licensee to subdivide alcoholic beverages. 22 (d) The holder of a package store license who repackages alcoholic beverages 23 without an endorsement under this section commits the offense of unendorsed package 24 store repackaging. 25 (e) The holder of a package store repackaging endorsement who fails to 26 comply with the requirements of this section commits the offense of package store 27 repackaging endorsement noncompliance. 28 (f) Unendorsed package store repackaging is a violation and is punishable by a 29 fine of $500. 30 (g) Package store repackaging endorsement noncompliance is a violation. 31 Sec. 04.09.490. Package store sampling endorsement. (a) A package store

01 sampling endorsement authorizes the holder of a package store license to offer for 02 consumption on the licensed premises at no charge a small sample of an alcoholic 03 beverage from its inventory during the package store's stated hours of business, but not 04 between the hours of midnight and 8 a.m. 05 (b) The biennial fee for a package store sampling endorsement is $200. 06 (c) Only the license holder or an agent or employee of the license holder may 07 serve a sample. 08 (d) The holder of a package store sampling endorsement may serve a total 09 volume of samples to a person on a licensed premises each day that does not exceed 10 (1) 12 ounces of beer or cider, if the cider contains less than 8.5 11 percent alcohol by volume; 12 (2) six ounces of wine, mead, sake, or cider, if the cider contains 8.5 13 percent or more alcohol by volume; 14 (3) 1.5 ounces of distilled spirits; or 15 (4) the alcoholic equivalent of (1), (2), or (3) of this subsection. 16 (e) The holder of a package store sampling endorsement may not publicly 17 advertise, including through newsprint, radio, or television, sampling activities 18 conducted under the endorsement. However, the holder of a package store sampling 19 endorsement may notify existing customers of sampling activities, including by 20 electronic means. 21 (f) A person who offers a sample of an alcoholic beverage for consumption on 22 the licensed premises of a package store without an endorsement under this section 23 commits the offense of unendorsed package store sampling. 24 (g) Unendorsed package store sampling is a violation and is punishable by a 25 fine of $500. 26 (h) The holder of a package store sampling endorsement who fails to comply 27 with the requirements of (a) and (c) - (e) of this section commits the offense of failure 28 to comply with the terms of a package store sampling endorsement. 29 (i) Failure to comply with the terms of a package store sampling endorsement 30 is a violation. 31 Sec. 04.09.500. Bowling alley endorsement. (a) A bowling alley endorsement

01 authorizes the holder of a beverage dispensary license or a beverage dispensary 02 tourism license to sell or serve alcoholic beverages in the concourse or lane areas of 03 the bowling alley adjacent to the main bar area. 04 (b) The biennial fee for a bowling alley endorsement is $200. 05 (c) The board may issue a bowling alley endorsement only if the concourse or 06 lane areas of the bowling alley or both are 07 (1) designated as part of the licensed premises for the beverage 08 dispensary license or a beverage dispensary tourism license; and 09 (2) adjacent to the main bar area. 10 (d) Notwithstanding AS 04.16.049, the board may, upon application, authorize 11 access by persons under 21 years of age to the concourse or lane areas or both that are 12 designated part of the licensed premises of the bowling alley during hours when no 13 alcoholic beverages are being sold, served, or consumed. 14 (e) The periods during which persons under 21 years of age may be permitted 15 access to the licensed premises must be clearly posted on the licensed premises. 16 (f) The holder of a beverage dispensary license or a beverage dispensary 17 tourism license who sells or serves alcoholic beverages in the concourse or lane areas 18 of a bowling alley without an endorsement under this section commits the offense of 19 unendorsed bowling alley service. 20 (g) The holder of a bowling alley endorsement under this section who fails to 21 comply with the requirements of (e) of this section or who permits access by a person 22 under 21 years of age to the concourse or lane areas of the bowling alley during hours 23 when alcoholic beverages are being served in the concourse or lane areas commits the 24 offense of bowling alley endorsement noncompliance. 25 (h) Unendorsed bowling alley service is a violation and is punishable by a fine 26 of $500. 27 (i) Bowling alley endorsement noncompliance is a violation. 28 Sec. 04.09.510. Golf course endorsement. (a) A golf course endorsement 29 authorizes the owner of a golf course who has obtained a beverage dispensary license 30 or a beverage dispensary tourism license to sell or serve alcoholic beverages on the 31 golf course, driving range, club house and other buildings located on the course, and a

01 vending cart carrying beverages or food to, from, or on the course, excluding the 02 parking lot. 03 (b) The biennial fee for a golf course endorsement is $200. 04 (c) An application for a golf course endorsement must include a drawing of 05 the golf course with an annotated illustration and a description of the portions of the 06 course that are licensed premises and that are intended to be covered by the 07 endorsement. 08 (d) The holder of a beverage dispensary license or beverage dispensary 09 tourism license who sells or serves alcoholic beverages on a golf course without an 10 endorsement under this section commits the offense of unendorsed golf course service. 11 (e) The holder of a golf course endorsement who fails to comply with (a) of 12 this section commits the offense of golf course endorsement noncompliance. 13 (f) Unendorsed golf course service is a violation and is punishable by a fine of 14 $500. 15 (g) Golf course endorsement noncompliance is a violation. 16 Sec. 04.09.520. Brewery repackaging endorsement. (a) A brewery 17 repackaging endorsement authorizes the holder of a brewery manufacturer license who 18 held a license to operate a brewpub under former AS 04.11.135 and was operating a 19 brewpub on the day before the effective date of this section and who also holds, 20 wholly or in part, a beverage dispensary license, beverage dispensary tourism license, 21 restaurant or eating place license, or a seasonal restaurant or eating place tourism 22 license to offer the holder's brewed beverages for sale for consumption off the licensed 23 premises and to subdivide and sell the holder's brewed beverages from original 24 packages with federally compliant labels to smaller containers with the standard 25 federal government warnings and the product name. 26 (b) The biennial fee for a brewery repackaging endorsement is $200. 27 (c) A brewery manufacturer licensee with a brewery repackaging endorsement 28 (1) is authorized to sell, each day to a person on the licensed premises 29 for consumption off the licensed premises, not more than 30 (A) 5.167 gallons of the holder's beer; or 31 (B) nine liters of sake;

01 (2) may permit an agent or employee to subdivide the holder's brewed 02 beverages, but may not permit a customer or another person who is not an agent or 03 employee of the licensee to subdivide the holder's brewed beverages. 04 (d) The holder of a brewery manufacturer license who repackages brewed 05 beverages without an endorsement under this section or a brewery retail license under 06 AS 04.09.310 commits the offense of unendorsed brewery repackaging. 07 (e) In this section, "licensed premises" means a premises licensed under a 08 beverage dispensary license, beverage dispensary tourism license, restaurant or eating 09 place license, or a seasonal restaurant or eating place tourism license that is controlled 10 by a brewery manufacturer licensee. 11 (f) The holder of a brewery repackaging endorsement who fails to comply 12 with the requirements of this section commits the offense of brewery repackaging 13 endorsement noncompliance. 14 (g) Unendorsed brewery repackaging is a violation, punishable by a fine of 15 $500. 16 (h) Brewery repackaging endorsement noncompliance is a violation. 17 Article 6. Permits. 18 Sec. 04.09.600. Types of permits. (a) A permit allows catering and serving 19 activities for a specific time period on a single specified premises and allows an 20 eligible nonprofit organization to host a fundraising or not-for-profit event. 21 (b) The director may issue only the permits authorized in AS 04.09.600 - 22 04.09.690. An application for a permit must be received by the director not less than 23 three business days before the first day of the event. Except for a conditional 24 contractor's permit issued under AS 04.09.690, the director shall require every person 25 who will serve or sell alcohol or check identification of a patron during a permitted 26 event to complete an alcohol server education course under AS 04.21.025 before the 27 first day of the permitted event. 28 (c) An applicant for a permit must follow the application requirements set out 29 in AS 04.11.260. 30 (d) A permit, other than an inventory resale permit under AS 04.09.680 and a 31 conditional contractor's permit under AS 04.09.690, is valid only on the premises, for

01 the event, and for the period specified. 02 (e) The holder of an approved permit may submit a written request for 03 amendment of the approved permit to change the event date, site, designated area, or 04 designated time. The holder of the approved permit shall submit the request to the 05 director not later than three business days before the event and shall include approval 06 of the law enforcement agency having jurisdiction over the site of the event for which 07 the amended permit is sought. 08 (f) The holder of an approved permit shall ensure that the individuals serving 09 alcohol have completed alcohol server training as required under AS 04.21.025 before 10 the first day of the permitted event. 11 (g) A permit may not be transferred to another person or another location and, 12 except for a conditional contractor's permit under AS 04.09.690, may not be renewed. 13 (h) Except as otherwise provided in AS 04.09.680 for an inventory resale 14 permit and AS 04.09.690 for a conditional contractor's permit, the fee for a permit 15 shall be set by the board in regulation. The fee must be at least $50 for each day of the 16 event. 17 (i) The director shall approve or deny a permit application. If the director 18 denies a permit application, the applicant may appeal to the board. 19 Sec. 04.09.610. Beverage dispensary caterer's permit. A beverage 20 dispensary caterer's permit authorizes the holder of a beverage dispensary license or 21 beverage dispensary tourism license to sell or dispense alcoholic beverages at 22 conventions, picnics, sporting events, concerts, street festivals, or similar affairs held 23 off the holder's licensed premises for which a beverage dispensary license or beverage 24 dispensary tourism license would not otherwise be required. The permit may be issued 25 only for designated premises for a specific occasion and for a limited period. 26 Sec. 04.09.620. Restaurant caterer's dining permit. (a) A restaurant caterer's 27 dining permit authorizes the holder of a restaurant or eating place license or a seasonal 28 restaurant or eating place tourism license to sell brewed beverages and wine before 29 and during the service of food provided by the licensee at a single dining event held 30 off the holder's licensed premises. 31 (b) The director may issue a restaurant caterer's dining permit only for

01 designated premises, for a specific occasion, and for a limited period. 02 (c) The licensee shall provide food in conjunction with the service of brewed 03 beverages and wine under a restaurant caterer's dining permit. The licensee shall 04 comply with the requirements for gross receipts from food sales for a restaurant or 05 eating place license under AS 04.09.210(d) or a seasonal restaurant or eating place 06 tourism license under AS 04.09.350(f). 07 Sec. 04.09.630. Club caterer's permit. (a) A club caterer's permit authorizes 08 the holder of a club license to sell or dispense alcoholic beverages at an event held off 09 the club's licensed premises. 10 (b) The application for a club caterer's permit filed under AS 04.11.260 must 11 be signed by two officers of the organization. 12 (c) A restriction or prohibition under AS 04.09.220 regarding a club member 13 or a guest of a club member applies at the premises covered by the permit. 14 (d) The director may not issue more than three club caterer's permits to the 15 holder of a club license in a calendar year. 16 Sec. 04.09.640. Art exhibit event permit. (a) An art exhibit event permit 17 authorizes the holder of a beverage dispensary license, a beverage dispensary tourism 18 license, a restaurant or eating place license, or a seasonal restaurant or eating place 19 tourism license to sell and serve brewed beverages and wine for consumption at a 20 specific art exhibit event. 21 (b) The director may issue an art exhibit event permit only for a specific art 22 exhibit event at premises designated in the application for a limited period specified in 23 the application. 24 (c) The director may not grant more than 12 art exhibit event permits to a 25 licensee in a calendar year. 26 (d) An art exhibit event permit may not be exercised during an event that is 27 expected to attract attendees under 21 years of age. 28 (e) Food must be provided in conjunction with the service of brewed 29 beverages and wine under an art exhibit event permit. 30 Sec. 04.09.650. Nonprofit organization event permit. (a) A nonprofit 31 organization event permit authorizes the holder to sell or dispense brewed beverages

01 or wine for consumption at an event organized by the nonprofit organization. 02 (b) Only a nonprofit organization, such as a fraternal, civic, professional, or 03 patriotic organization, that is incorporated under AS 10.20 and has been active for a 04 period of at least two years before filing an application is eligible for a nonprofit 05 organization event permit. 06 (c) The application for a nonprofit organization event permit filed under 07 AS 04.11.260 must be signed by two officers of the organization. The nonprofit 08 organization shall submit, together with the application, 09 (1) either a signed copy of a resolution adopted by the board of 10 directors or a copy of the minutes from a board meeting of the nonprofit organization 11 authorizing the application; and 12 (2) a sworn affidavit showing the length of time the organization has 13 been in existence. 14 (d) The director may not issue more than five nonprofit organization event 15 permits to a nonprofit organization, including an auxiliary of the organization, in a 16 calendar year. A nonprofit organization event permit may only be issued for 17 designated premises for a specific occasion and for a limited period of time as 18 specified in the application. 19 (e) The nonprofit organization shall ensure that all profits derived from the 20 sale of brewed beverages or wine under a nonprofit organization event permit are paid 21 to the organization that holds the permit and not to an individual. 22 Sec. 04.09.660. Alcoholic beverage auction permit. (a) An alcoholic 23 beverage auction permit authorizes the holder to sell alcoholic beverages by outcry or 24 silent auction. An alcoholic beverage auction permit is sufficient to authorize a 25 nonprofit organization under (b) of this section to sell alcoholic beverages by outcry or 26 silent auction, and no other permit or license is required. An alcoholic beverage 27 auction permit may be operated on the licensed premises of a beverage dispensary 28 license, beverage dispensary tourism license, club license, restaurant or eating place 29 license, or seasonal restaurant or eating place license. 30 (b) Only a nonprofit organization, such as a fraternal, civic, professional, or 31 patriotic organization, that is incorporated under AS 10.20 and has been active for a

01 period of at least two years before filing an application is eligible for an alcoholic 02 beverage auction permit. 03 (c) The application for an alcoholic beverage auction permit filed under 04 AS 04.11.260 must be signed by two officers of the organization. The nonprofit 05 organization shall submit, together with the application, 06 (1) either a signed copy of a resolution adopted by the board of 07 directors or a copy of the minutes of a board meeting of the nonprofit organization 08 authorizing the application; and 09 (2) a sworn affidavit showing the length of time the organization has 10 been in existence. 11 (d) The director may not issue more than five alcoholic beverage auction 12 permits to a nonprofit organization, including an auxiliary of the organization, in a 13 calendar year. The director may issue a permit only for designated premises for a 14 specific event and for a limited period as specified in the application. 15 (e) The nonprofit organization shall ensure that all profits derived from the 16 sale of brewed beverages or wine under an alcoholic beverage auction permit are paid 17 to the organization that holds the permit and not to an individual. 18 (f) The nonprofit organization may not permit consumption at the auction site 19 of the alcoholic beverages being auctioned under a nonprofit organization alcoholic 20 beverage auction permit. 21 Sec. 04.09.670. Tasting event permit. (a) A tasting event permit authorizes 22 the holder of a beverage dispensary license or a beverage dispensary tourism license to 23 sell or dispense alcoholic beverages at a tasting event held in partnership with the 24 holder of a package store license, brewery retail license, winery retail license, or 25 distillery retail license. 26 (b) A tasting event must be for the purpose of promoting products available 27 for purchase from the partnering package store licensee, brewery retail licensee, 28 winery retail licensee, or distillery retail licensee; only products produced or sold by 29 the partnering licensee may be sold or dispensed at the event. 30 (c) Only the holder of a beverage dispensary license or a beverage dispensary 31 tourism license may apply for a tasting event permit under this section. An application

01 for a tasting event permit must list both the beverage dispensary licensee or beverage 02 dispensary tourism licensee and the partnering licensee, and specify the designated 03 premises for the event. The tasting event must be held in the same municipality or 04 organized village in which the licensed premises of the partnering licensee are located. 05 (d) The director may not issue more than six permits in a calendar year to a 06 beverage dispensary licensee or a beverage dispensary tourism licensee for tasting 07 events with a particular partnering licensee; however, there is no limit on the number 08 of different partnering licensees with whom a beverage dispensary licensee may 09 partner for different events. If a person holds two or more qualifying partnering 10 licenses, then the director shall treat each license as separate and distinct when 11 applying the limitation under this subsection, regardless of how many other licenses 12 the person holds, wholly or in part. 13 (e) The director may not issue a tasting event permit for a period that 14 (1) is longer than four hours; 15 (2) lasts beyond 9:00 p.m. 16 (f) Food must be provided in conjunction with the service of alcoholic 17 beverages under a tasting event permit. 18 (g) In this section, "partnering licensee" means the holder of a package store 19 license, brewery retail license, winery retail license, or distillery retail license who has 20 partnered with the holder of a beverage dispensary license or a beverage dispensary 21 tourism license to host a tasting event permitted by this section. 22 Sec. 04.09.680. Inventory resale permit. (a) An inventory resale permit 23 authorizes the holder to sell the remaining inventory of alcoholic beverages of a 24 business when the owner of the business no longer has a valid license under this title. 25 (b) The fee for an inventory resale permit is $100. 26 (c) The holder of an inventory resale permit may sell the remaining alcoholic 27 beverage inventory only to the holder of a valid license under this chapter. 28 (d) The director may issue an inventory resale permit for a period ending 90 29 days after the date of expiration or forfeiture of the license. The director may not issue 30 a permit if the license was suspended or revoked. 31 Sec. 04.09.690. Conditional contractor's permit. (a) A conditional

01 contractor's permit authorizes the holder to sell brewed beverages or wine for 02 consumption only on designated premises for the designated period of the permit 03 under AS 04.11.680 at construction sites that are located outside a city and inside the 04 boundaries of a military or naval reservation. 05 (b) The biennial conditional contractor's permit fee is $1,200. 06 (c) An applicant for a conditional contractor's permit must obtain and file with 07 the board written permission from the commanding officer of the military or naval 08 reservation and the prime contractor of the remotely situated project for the conduct of 09 the activities authorized by the permit. A conditional contractor's permit may be 10 renewed biennially upon reapplication for a permit and may be revoked or suspended 11 at the discretion of the commanding officer or the prime contractor. 12 (d) A conditional contractor's permit may not be transferred and is not valid 13 after the completion of the holder's contract or the closing of the military or naval 14 reservation. 15 Sec. 04.09.700. Failure to comply with a permit requirement. (a) A person 16 who engages in activity that requires a permit under AS 04.09.600 - 04.09.690 without 17 having a permit and a person who violates the terms of a permit issued under 18 AS 04.09.600 - 04.09.690 commits the offense of failure to comply with a permit 19 requirement. 20 (b) Except as provided in (c) of this section, failure to comply with a permit 21 requirement is a violation punishable under AS 04.21.072. 22 (c) Failure to comply with a permit requirement of an inventory resale permit 23 under AS 04.09.680 or a conditional contractor's permit under AS 04.09.690 is 24 punishable by a fine of $500. 25 * Sec. 10. AS 04.11.010(a) is amended to read: 26 (a) A [EXCEPT AS PROVIDED IN AS 04.11.020, A] person may not 27 knowingly [MANUFACTURE, SELL, OFFER FOR SALE,] possess for [SALE OR] 28 barter, traffic in, or barter an alcoholic beverage unless under license or permit issued 29 under this title. 30 * Sec. 11. AS 04.11.010(b) is amended to read: 31 (b) Except as provided in this subsection, a person may not solicit or receive

01 orders for the delivery of an alcoholic beverage in an area that has adopted a local 02 option under AS 04.11.491. If the area has adopted a local option under 03 AS 04.11.491(a)(1), (2), or (3), or (b)(1) or (2), a package store licensee outside of that 04 local option area may receive orders as provided under a package store shipping 05 endorsement under AS 04.09.460 [AS 04.11.150] but may not solicit in that area or 06 receive orders through an agent or employee in that area. This subsection does not 07 apply to a package store licensee who operates a package store in an area that has 08 adopted a local option under AS 04.11.491(a)(2)(C) or (3)(C) or (b)(2)(C). A person 09 who violates this subsection is punishable upon conviction as provided under 10 AS 04.16.200(a) or (b). 11 * Sec. 12. AS 04.11.010(c) is amended to read: 12 (c) Unless a municipality or established village has adopted a more restrictive 13 local option under AS 04.11.491(g), in a criminal prosecution for possession of 14 alcoholic beverages for barter or sale in violation of (a) of this section, AS 04.09.060, 15 04.09.070, 04.09.140, 04.09.145, 04.09.370, or 04.09.380, the fact that a person 16 (1) possessed more than 10 1/2 liters of distilled spirits or 24 liters or 17 more of wine, or either a half-barrel keg [HALF-KEG] of brewed [MALT] 18 beverages or 15.5 [12] gallons or more of brewed [MALT] beverages in individual 19 containers in an area where the sale of alcoholic beverages is restricted or prohibited 20 under AS 04.11.491 creates a presumption that the person possessed the alcoholic 21 beverages for barter or sale; 22 (2) sends, transports, or brings more than 10 1/2 liters of distilled 23 spirits or 24 liters or more of wine, or either a half-barrel keg [HALF-KEG] of 24 brewed [MALT] beverages or 15.5 [12] gallons or more of brewed [MALT] 25 beverages in individual containers to an area where the sale of alcoholic beverages is 26 restricted or prohibited under AS 04.11.491 creates a presumption that the person sent, 27 transported, or brought the alcoholic beverages for barter or sale in the area. 28 * Sec. 13. AS 04.11.015 is amended to read: 29 Sec. 04.11.015. Purchase from nonlicensee prohibited. (a) A person may not 30 purchase or barter for alcoholic beverages from a person who is not a licensee, 31 permittee, or an agent or employee of a licensee or permittee.

01 (b) A person who violates (a) of this section is guilty of a violation. 02 * Sec. 14. AS 04.11.040 is amended by adding new subsections to read: 03 (d) A person who transfers a license or permit or a controlling interest in a 04 license or permit in violation of this section commits the offense of unauthorized 05 transfer of an alcoholic beverage license or permit. 06 (e) Unauthorized transfer of an alcoholic beverage license or permit is a 07 violation. 08 * Sec. 15. AS 04.11.045 is amended by adding new subsections to read: 09 (c) A limited liability organization that fails to report as required under (a) of 10 this section commits the offense of failure to report a change in member interest or 11 manager. 12 (d) Failure to report a change in member interest or manager is a violation. 13 * Sec. 16. AS 04.11.050 is amended by adding new subsections to read: 14 (d) A corporation that fails to report as required under (a) of this section, other 15 than a corporation described in (c) of this section, commits the offense of failure to 16 report a stock transfer or change of officers or board members. 17 (e) Failure to report a stock transfer or change of officers or board members is 18 a violation. 19 * Sec. 17. AS 04.11.055 is amended by adding new subsections to read: 20 (c) A partnership that fails to report as required under (a) of this section 21 commits the offense of failure to report a transfer of partnership interest or change of 22 general partner. 23 (d) Failure to report a transfer of partnership interest or change of general 24 partner is a violation. 25 * Sec. 18. AS 04.11.060 is amended to read: 26 Sec. 04.11.060. Nonresident distiller, brewer, winery, or wholesaler. A 27 distiller, brewer, winery, or wholesaler whose plant or principal place of business is 28 outside the state may not sell products directly to licensees in the state without 29 (1) obtaining a general wholesale license under AS 04.09.100 30 [AS 04.11.160(a)] for each wholesale distributing point in the state; 31 (2) appointing an agent upon whom process can be served; and

01 (3) obtaining other applicable licenses under the provisions of this title. 02 * Sec. 19. AS 04.11.060 is amended by adding a new subsection to read: 03 (b) A person who violates (a) of this section is guilty of a class A 04 misdemeanor. 05 * Sec. 20. AS 04.11.260 is amended to read: 06 Sec. 04.11.260. Application for new license, endorsement, or permit. (a) An 07 applicant for a new license, endorsement, or permit shall file with the director a 08 written application, signed and sworn to by the applicant, giving the applicant's name, 09 mailing address, telephone number, and electronic mail address. If the applicant is 10 a corporation, the application shall be executed by an [THE] authorized officer 11 [OFFICERS] of the corporation. If the applicant is a partnership, including a limited 12 partnership, the application shall be executed by an authorized general partner. The 13 application must include 14 (1) the type of license, endorsement, or permit desired; 15 (2) a description of the premises for which the license, endorsement, 16 or permit is desired, giving the address by street and number, or other information, so 17 that the location of the premises can be definitely determined; 18 (3) an annotated illustration of the premises designating the areas 19 for manufacture, storage, service, and consumption of alcoholic beverages and, 20 for a license application, the area for warehousing of the alcoholic beverages; 21 (4) the license, endorsement, or permit fee, and, for a multiple fixed 22 counter endorsement, the application fee for each counter; 23 (5) [(4)] the duration of the license, endorsement, or permit desired, 24 including, for a permit, a statement of the event dates and the specific hours of 25 intended operation; 26 (6) [(5)] any other information required by the board. 27 (b) A corporation applying for a license or conditional contractor's permit 28 under AS 04.09.690 shall provide the names and addresses of the president, vice- 29 president, secretary, managing officer, and all stockholders who own 10 percent or 30 more of the stock in the corporation, together with any other information required by 31 the board.

01 (c) An applicant for a new license or permit must include with the application 02 (1) proof that notice required by AS 04.11.310, if any, has been given; 03 (2) any petitions required to be secured under AS 04.11.460 before a 04 license may be issued; 05 (3) evidence of any approval by public authorities required to be 06 obtained [UNDER AS 04.11.090(e), 04.11.220(c), 04.11.230(b), 04.11.240(b), OR 07 04.11.250(b),] before a license or permit may be issued, including 08 (A) written approval under AS 04.09.240 from the 09 governing body of a college or university for a pub license; 10 (B) approval under AS 04.11.365 for a restaurant or eating 11 place license in a multi-unit residential housing development owned or 12 financed by the Alaska Housing Finance Corporation; 13 (C) permission from the commanding officer and the prime 14 contractor for a conditional contractor's permit under AS 04.09.690; 15 (D) for a permit other than a conditional contractor's 16 permit, approval of the law enforcement agency having jurisdiction over 17 the site of the event for which the permit is sought. 18 (d) A partnership, including a limited partnership, that applies for a license or 19 conditional contractor's permit under AS 04.09.690 shall provide information 20 required by the board including the names and addresses of all general partners and all 21 partners with an interest of 10 percent or more. 22 (e) A limited liability organization that applies for a license or conditional 23 contractor's permit under AS 04.09.690 shall provide information required by the 24 board, including the names and addresses of all members with an ownership interest of 25 10 percent or more and the names and addresses of all managers. 26 * Sec. 21. AS 04.11.260 is amended by adding a new subsection to read: 27 (f) This section does not apply to a winery direct shipment license issued 28 under AS 04.09.360. 29 * Sec. 22. AS 04.11.270 is amended to read: 30 Sec. 04.11.270. Application for renewal of license, license with 31 endorsement, or conditional contractor's permit. (a) An application for renewal of

01 a license, license with endorsement, or [RENEWAL OF A] conditional contractor's 02 permit under AS 04.09.690 must include 03 (1) the information required for a new license, license with 04 endorsement, or permit under AS 04.11.260 except that proof of notice under 05 AS 04.11.310 is not required; and 06 (2) a list of all convictions of the applicant of violations of this title, a 07 regulation adopted under this title, or an ordinance adopted under AS 04.21.010, that 08 occurred in the preceding two calendar years. 09 (b) A license, license with endorsement, or permit shall be renewed as 10 follows: 11 (1) on or before November 1, the director shall mail a renewal 12 application to each licensee whose license, license with endorsement, or permit, 13 unless renewed, will expire on December 31 of that year; the application shall be 14 mailed to the licensee or permittee [AT THE LICENSED PREMISES OR] at a 15 mailing address or electronic mail address furnished by the licensee or permittee; 16 (2) the licensee or permittee shall submit the completed renewal 17 application and the biennial [LICENSE] fee to the director before January 1; 18 (3) a renewal application filed after December 31 is delinquent and 19 must be accompanied by a $500 penalty fee; 20 (4) if December 31 falls on a weekend or a state holiday, the deadline 21 is extended to the first business day following December 31. 22 * Sec. 23. AS 04.11.270 is amended by adding a new subsection to read: 23 (c) This section does not apply to a winery direct shipment license issued 24 under AS 04.09.360. 25 * Sec. 24. AS 04.11.280 is amended to read: 26 Sec. 04.11.280. Application for transfer of a license to another person. (a) 27 An application for transfer of a license or a license with one or more endorsements 28 to another person must contain the same information about the transferee as is required 29 of an applicant for a new license or endorsement under AS 04.11.260 and must 30 include other information required by the board. 31 (b) An application for the transfer of a license or a license with one or more

01 endorsements to another person must be accompanied by a statement, under oath, 02 executed by the transferor, listing all debts of the business and all taxes due by the 03 business. The board shall promptly inform each listed creditor of the application and 04 the amount shown as owed to that creditor. 05 * Sec. 25. AS 04.11.295(a) is amended to read: 06 (a) An applicant for the issuance or transfer of a license or issuance of a 07 conditional contractor's permit under this title shall submit to the board, with the 08 application, the applicant's fingerprints and the fees required by the Department of 09 Public Safety under AS 12.62.160 for criminal justice information and a national 10 criminal history record check. The board may require an applicant for renewal of a 11 license or a conditional contractor's permit under this title to submit fingerprints and 12 pay fees as required by this subsection. The board shall submit the fingerprints to the 13 Department of Public Safety to obtain a report of criminal justice information under 14 AS 12.62 and a national criminal history record check under AS 12.62.400. The 15 Department of Public Safety may submit the fingerprints to the Federal Bureau of 16 Investigation for a national criminal history record check. The board shall use the 17 information obtained under this section in its determination of an applicant's 18 qualification for issuance, transfer, or renewal of a license or issuance or renewal of a 19 conditional contractor's permit. 20 * Sec. 26. AS 04.11.295(b)(1) is amended to read: 21 (1) "applicant" means all individuals whose names and addresses are 22 required to be provided with an application for a new license or conditional 23 contractor's permit under AS 04.09.690 [AS 04.11.260]; 24 * Sec. 27. AS 04.11.310 is amended by adding a new subsection to read: 25 (c) This section does not apply to a winery direct shipment license issued 26 under AS 04.09.360. 27 * Sec. 28. AS 04.11 is amended by adding a new section to article 3 to read: 28 Sec. 04.11.315. False statement on application. A person who knowingly 29 makes a false sworn statement that the person does not believe to be true on an 30 application under AS 04.11.260 - 04.11.310 commits the crime of perjury under 31 AS 11.56.200.

01 * Sec. 29. AS 04.11.320(a) is amended to read: 02 (a) An application requesting issuance of a new license or endorsement shall 03 be denied if 04 (1) the board finds, after review of all relevant information, that 05 issuance of the license or endorsement would not be in the best interests of the 06 public; 07 (2) issuance of the license is prohibited by AS 04.11.410, relating to 08 location of premises near churches and schools; 09 (3) the application has not been completed in accordance with 10 AS 04.11.260; 11 (4) issuance of the license or endorsement would violate the 12 restrictions pertaining to the particular license or endorsement imposed under this 13 title; 14 (5) issuance of the license is prohibited under this title as a result of an 15 election conducted under AS 04.11.507; 16 (6) the requirements of AS 04.11.420 - 04.11.450 relating to zoning, 17 ownership and location of the license or endorsement, and the identity and financing 18 of a licensee have not been met; 19 (7) issuance of the license is prohibited under AS 04.11.400(a) or 20 prohibition of issuance of the license is found necessary under AS 04.11.400(b); 21 (8) the application contains false statements of material fact; 22 (9) the license is sought for the sale of alcoholic beverages in a first or 23 second class city where there are no licensed premises at the time of application unless 24 a majority of the voters have voted not to approve a local option to restrict or prohibit 25 the sale of alcoholic beverages under AS 04.11.491, have voted to approve a local 26 option to allow the type of premises under AS 04.11.491(a)(2) or (3), or have voted to 27 remove a restriction or prohibition on the sale of alcoholic beverages under 28 AS 04.11.495; or 29 (10) the license is sought for the sale of alcoholic beverages in an 30 established village where there are no licensed premises at the time of application 31 unless a majority of the voters have voted not to approve a local option to restrict or

01 prohibit the sale of alcoholic beverages under AS 04.11.491, have voted to approve a 02 local option to allow the type of premises under AS 04.11.491(b)(2), or have voted to 03 remove a restriction or prohibition on the sale of alcoholic beverages under 04 AS 04.11.495. 05 * Sec. 30. AS 04.11.330(a) is amended to read: 06 (a) An application requesting renewal of a license shall be denied if 07 (1) the board finds, after review of all relevant information, that 08 renewal of the license would not be in the best interests of the public; 09 (2) the license has been revoked for any cause; 10 (3) the applicant has not operated the licensed premises for at least 240 11 hours [30 EIGHT-HOUR DAYS] during each of the two preceding calendar years, 12 unless the board determines that the licensed premises are under construction or 13 cannot be operated through no fault of the applicant; 14 (4) the board finds that issuance of an existing license under 15 AS 04.11.400(d) has not encouraged tourist trade; 16 (5) the requirements of AS 04.11.420 - 04.11.450 relating to zoning, 17 ownership of the license, and financing of the licensee have not been met; 18 (6) renewal of the license would violate the restrictions pertaining to 19 the particular license under this title or the license has been operated in violation of a 20 condition or restriction imposed by the board; 21 (7) renewal of the license is prohibited under this title as a result of an 22 election conducted under AS 04.11.507; or 23 (8) the application has not been completed in accordance with 24 AS 04.11.270 [; OR 25 (9) THE LICENSE WAS ISSUED UNDER AS 04.11.400(g), AND 26 THE BOARD FINDS THAT THE PUBLIC CONVENIENCE DOES NOT 27 REQUIRE RENEWAL]. 28 * Sec. 31. AS 04.11.330(a), as amended by sec. 30 of this Act, is amended to read: 29 (a) An application requesting renewal of a license or endorsement shall be 30 denied if 31 (1) the board finds, after review of all relevant information, that

01 renewal of the license or endorsement would not be in the best interests of the public; 02 (2) the license or endorsement has been revoked for any cause; 03 (3) the applicant has not operated the licensed premises for at least 240 04 hours [30 EIGHT-HOUR DAYS] during each of the two preceding calendar years, 05 unless the board determines that the licensed premises are under construction or 06 cannot be operated through no fault of the applicant; 07 (4) the board finds that issuance of an existing beverage dispensary 08 tourism license under AS 04.09.340 or seasonal restaurant or eating place tourism 09 license under AS 04.09.350 [AS 04.11.400(d)] has not encouraged tourist trade; 10 (5) the requirements of AS 04.11.420 - 04.11.450 relating to zoning, 11 ownership of the license, and financing of the licensee have not been met; 12 (6) renewal of the license or endorsement would violate the 13 restrictions pertaining to the particular license or endorsement under this title or the 14 license or endorsement has been operated in violation of a condition or restriction 15 imposed by the board; 16 (7) renewal of the license is prohibited under this title as a result of an 17 election conducted under AS 04.11.507; or 18 (8) the application has not been completed in accordance with 19 AS 04.09.360 or AS 04.11.270. 20 * Sec. 32. AS 04.11.330(d) is amended to read: 21 (d) Notwithstanding (a)(3) of this section, a common carrier dispensary 22 license issued under AS 04.09.260 or a sporting event [RECREATIONAL SITE] 23 license issued under AS 04.09.270 [AS 04.11.210] may be renewed if the license was 24 exercised at least once during each of the two preceding calendar years. 25 * Sec. 33. AS 04.11.330 is amended by adding a new subsection to read: 26 (e) The requirements of (a)(3), (a)(5), and (a)(7) of this section do not apply to 27 a winery direct shipment license issued under AS 04.09.360. 28 * Sec. 34. AS 04.11.340 is amended to read: 29 Sec. 04.11.340. Denial of request for relocation. An application requesting 30 approval for the relocation of licensed premises shall be denied if 31 (1) the board finds, after review of all relevant information, that

01 relocation of the license would not be in the best interests of the public; 02 (2) the relocation is prohibited under AS 04.11.400(a) or (b); 03 (3) the license would be relocated out of the established village, 04 incorporated city, unified municipality, or population area established under 05 AS 04.11.400(a) within which it is located; 06 (4) transfer of ownership is to be made concurrently with the 07 relocation of the licensed premises and a ground for denial of the transfer of 08 ownership under AS 04.11.360 is presented; 09 (5) the application has not been completed in accordance with 10 AS 04.11.290; 11 (6) relocation of the license would result in violation of a local zoning 12 law; 13 (7) relocation of the license would violate the restrictions pertaining to 14 the particular license imposed by this title; 15 (8) relocation of the license is prohibited under this title as a result of 16 an election conducted under AS 04.11.507; or 17 (9) the license was issued under AS 04.11.400(d) [, (e), OR (g)]. 18 * Sec. 35. AS 04.11.340, as amended by sec. 34 of this Act, is amended to read: 19 Sec. 04.11.340. Denial of request for relocation. An application requesting 20 approval for the relocation of licensed premises shall be denied if 21 (1) the board finds, after review of all relevant information, that 22 relocation of the license would not be in the best interests of the public; 23 (2) the relocation is prohibited under AS 04.11.400(a) or (b); 24 (3) the license would be relocated out of the established village, 25 incorporated city, unified municipality, or population area established under 26 AS 04.11.400(a) within which it is located except as provided under 27 AS 04.11.400(k); 28 (4) transfer of ownership is to be made concurrently with the 29 relocation of the licensed premises and a ground for denial of the transfer of 30 ownership under AS 04.11.360 is presented; 31 (5) the application has not been completed in accordance with

01 AS 04.11.290; 02 (6) relocation of the license would result in violation of a local zoning 03 law; 04 (7) relocation of the license would violate the restrictions pertaining to 05 the particular license imposed by this title; or 06 (8) relocation of the license is prohibited under this title as a result of 07 an election conducted under AS 04.11.507 [; OR 08 (9) THE LICENSE WAS ISSUED UNDER AS 04.11.400(d)]. 09 * Sec. 36. AS 04.11.360 is amended to read: 10 Sec. 04.11.360. Denial of transfer of a license to another person. An 11 application requesting approval of a transfer of a license to another person under this 12 title shall be denied if 13 (1) the board finds, after review of all relevant information, that 14 transfer of a license to another person would not be in the best interests of the public; 15 (2) the application has not been completed in accordance with 16 AS 04.11.280; 17 (3) the application contains false statements of material fact; 18 (4) the transferor has not paid all debts or taxes arising from the 19 conduct of the business licensed under this title unless 20 (A) the transferor gives security for the payment of the debts or 21 taxes satisfactory to the creditor or taxing authority; or 22 (B) the transfer is under a promise given as collateral by the 23 transferor to the transferee in the course of an earlier transfer of the license 24 under which promise the transferor is obliged to transfer the license back to the 25 transferee in the event of default in payment for property conveyed as part of 26 the earlier transfer of the license; 27 (5) transfer of the license to another person would result in violation of 28 the provisions of this title relating to identity of licensees and financing of licensees; 29 (6) transfer of the license to another person would violate the 30 restrictions pertaining to the particular license under this title; 31 (7) transfer of the license to another person is prohibited under the

01 provisions of this title as a result of an election conducted under AS 04.11.507; 02 (8) the prospective transferee does not have the qualifications required 03 under this title of an original applicant; 04 (9) the license was issued under AS 04.11.100(f) [OR 04.11.400(g)]; 05 however, this paragraph does not apply to a beverage dispensary license issued before 06 June 6, 1985, under former AS 04.11.400(j) if the transfer does not involve a change 07 in location; or 08 (10) the license was issued under AS 04.11.135, unless the transferor is 09 also applying to transfer the beverage dispensary license required under AS 04.11.135 10 to the same transferee. 11 * Sec. 37. AS 04.11.360, as amended by sec. 36 of this Act, is amended to read: 12 Sec. 04.11.360. Denial of transfer of a license to another person. An 13 application requesting approval of a transfer of a license to another person under this 14 title shall be denied if 15 (1) the board finds, after review of all relevant information, that 16 transfer of a license to another person would not be in the best interests of the public; 17 (2) the application has not been completed in accordance with 18 AS 04.11.280; 19 (3) the application contains false statements of material fact; 20 (4) the transferor has not paid all debts or taxes arising from the 21 conduct of the business licensed under this title unless 22 (A) the transferor gives security for the payment of the debts or 23 taxes satisfactory to the creditor or taxing authority; or 24 (B) the transfer is under a promise given as collateral by the 25 transferor to the transferee in the course of an earlier transfer of the license 26 under which promise the transferor is obliged to transfer the license back to the 27 transferee in the event of default in payment for property conveyed as part of 28 the earlier transfer of the license; 29 (5) transfer of the license to another person would result in violation of 30 the provisions of this title relating to identity of licensees and financing of licensees; 31 (6) transfer of the license to another person would violate the

01 restrictions pertaining to the particular license under this title; 02 (7) transfer of the license to another person is prohibited under the 03 provisions of this title as a result of an election conducted under AS 04.11.507; or 04 (8) the prospective transferee does not have the qualifications required 05 under this title of an original applicant; 06 [(9) THE LICENSE WAS ISSUED UNDER AS 04.11.100(f); 07 HOWEVER, THIS PARAGRAPH DOES NOT APPLY TO A BEVERAGE 08 DISPENSARY LICENSE ISSUED BEFORE JUNE 6, 1985, UNDER FORMER 09 AS 04.11.400(j) IF THE TRANSFER DOES NOT INVOLVE A CHANGE IN 10 LOCATION; OR 11 (10) THE LICENSE WAS ISSUED UNDER AS 04.11.135, UNLESS 12 THE TRANSFEROR IS ALSO APPLYING TO TRANSFER THE BEVERAGE 13 DISPENSARY LICENSE REQUIRED UNDER AS 04.11.135 TO THE SAME 14 TRANSFEREE]. 15 * Sec. 38. AS 04.11.365 is amended to read: 16 Sec. 04.11.365. Licensed premises in multi-unit residential housing 17 developments owned or financed by the Alaska Housing Finance Corporation. 18 For premises located in a multi-unit residential housing development owned or 19 financed by the Alaska Housing Finance Corporation, the board may issue a new 20 license under AS 04.11.320, renew a license under AS 04.11.330, or approve a request 21 for relocation under AS 04.11.340 if the Alaska Housing Finance Corporation 22 authorizes the use under AS 18.56.230 and 23 [(1) THE LICENSE IS FOR A RESTAURANT OR EATING PLACE 24 UNDER AS 04.11.100; OR 25 (2)] the premises are covered by a restaurant endorsement 26 [DESIGNATED BY THE BOARD AS A RESTAURANT] under AS 04.09.450 27 [AS 04.16.049]. 28 * Sec. 39. AS 04.11.370(a) is amended to read: 29 (a) A license, endorsement, or permit shall be suspended or revoked if the 30 board finds 31 (1) misrepresentation of a material fact on an application made under

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

01 this title, a condition or restriction imposed by the board, a regulation adopted under 02 this title, or an ordinance adopted under AS 04.21.010, if the licensee is found by the 03 board to have either knowingly allowed the violation or to have recklessly or with 04 criminal negligence failed to act in accordance with the duty prescribed under 05 AS 04.21.030 with the result that the agent or employee violates the law, condition or 06 restriction, regulation, or ordinance. 07 * Sec. 40. AS 04.11.395 is amended to read: 08 Sec. 04.11.395. Conditions [BOARD IMPOSED CONDITIONS] or 09 restrictions imposed on a license, endorsement, or permit. The board may, in the 10 best interests of the public, impose conditions or restrictions on a license, 11 endorsement, or permit issued under this chapter. 12 * Sec. 41. AS 04.11.395 is amended by adding a new subsection to read: 13 (b) Except for a conditional contractor's permit issued under AS 04.09.690, 14 the director may, in the best interests of the public, impose conditions or restrictions 15 on a permit issued under this chapter. 16 * Sec. 42. AS 04.11.400(a) is amended to read: 17 (a) Except as provided in (d) - (k) of this section and AS 04.11.405, a new 18 license may not be issued and the board may prohibit relocation of an existing license 19 (1) outside an established village, incorporated city, unified 20 municipality, or organized borough if, after the issuance or relocation, there would be 21 (A) more than one restaurant or eating place license for each 1,500 population or 22 fraction of that population, or (B) more than one license of each other type, including 23 licenses that have been issued under (d) or (e) of this section, for each 3,000 24 population or fraction of that population, in a radius of five miles of the licensed 25 premises, excluding the populations of established villages, incorporated cities, unified 26 municipalities, and organized boroughs that are wholly or partly included within the 27 radius; 28 (2) inside an established village, incorporated city, or unified 29 municipality if, after the issuance or relocation, there would be inside the established 30 village, incorporated city, or unified municipality 31 (A) more than one restaurant or eating place license for each

01 1,500 population or fraction of that population; or 02 (B) more than one license of each other type, including licenses 03 that have been issued under (d) or (e) of this section, for each 3,000 population 04 or fraction of that population; 05 (3) inside an organized borough but outside an established village or 06 incorporated city located within the borough if, after the issuance or relocation, there 07 would be inside the borough, but outside the established villages and incorporated 08 cities located within the borough, 09 (A) more than one restaurant or eating place license for each 10 1,500 population or fraction of that population; or 11 (B) more than one license of each other type, including licenses 12 that have been issued under (d) or (e) of this section, for each 3,000 population 13 or fraction of that population excluding the population of those established 14 villages that have adopted a local option under AS 04.11.491(b)(1), (3), or (4), 15 and excluding the population of incorporated cities located within the 16 organized borough. 17 * Sec. 43. AS 04.11.400(a), as amended by sec. 42 of this Act, is amended to read: 18 (a) Except as provided in (f) and (k) [(d) - (k)] of this section and 19 AS 04.11.405, a new license may not be issued and the board may prohibit relocation 20 of an existing license 21 (1) outside an established village, incorporated city, unified 22 municipality, or organized borough if, after the issuance or relocation, in a radius of 23 five miles of the licensed premises, excluding the populations of established 24 villages, incorporated cities, unified municipalities, and organized boroughs that 25 are wholly or partly included within the radius, there would be 26 (A) more than one restaurant or eating place license for each 27 1,500 population or fraction of that population; [, OR] 28 (B) more than one brewery retail, winery retail, or distillery 29 retail license for each 9,000 population or fraction of that population; or 30 (C) more than one license of each other type, except a type 31 listed in (i) of this section [INCLUDING LICENSES THAT HAVE BEEN

01 ISSUED UNDER (d) OR (e) OF THIS SECTION], for each 3,000 population 02 or fraction of that population [, IN A RADIUS OF FIVE MILES OF THE 03 LICENSED PREMISES, EXCLUDING THE POPULATIONS OF 04 ESTABLISHED VILLAGES, INCORPORATED CITIES, UNIFIED 05 MUNICIPALITIES, AND ORGANIZED BOROUGHS THAT ARE 06 WHOLLY OR PARTLY INCLUDED WITHIN THE RADIUS]; 07 (2) inside an established village, incorporated city, or unified 08 municipality if, after the issuance or relocation, there would be inside the established 09 village, incorporated city, or unified municipality 10 (A) more than one restaurant or eating place license for each 11 1,500 population or fraction of that population; [OR] 12 (B) more than one brewery retail, winery retail, or distillery 13 retail license for each 9,000 population or fraction of that population; or 14 (C) more than one license of each other type, except a type 15 listed in (i) of this section [INCLUDING LICENSES THAT HAVE BEEN 16 ISSUED UNDER (d) OR (e) OF THIS SECTION], for each 3,000 population 17 or fraction of that population; 18 (3) inside an organized borough but outside an established village or 19 incorporated city located within the borough if, after the issuance or relocation, there 20 would be inside the borough, but outside the established villages and incorporated 21 cities located within the borough, excluding the population of those established 22 villages that have adopted a local option under AS 04.11.491(b)(1) or (3), and 23 excluding the population of incorporated cities located within the organized 24 borough; 25 (A) more than one restaurant or eating place license for each 26 1,500 population or fraction of that population; [OR] 27 (B) more than one brewery retail, winery retail, or distillery 28 retail license for each 9,000 population or fraction of that population; or 29 (C) more than one license of each other type, except a type 30 listed in (i) of this section [INCLUDING LICENSES THAT HAVE BEEN 31 ISSUED UNDER (d) OR (e) OF THIS SECTION], for each 3,000 population

01 or fraction of that population [EXCLUDING THE POPULATION OF THOSE 02 ESTABLISHED VILLAGES THAT HAVE ADOPTED A LOCAL OPTION 03 UNDER AS 04.11.491(b)(1), (3), OR (4), AND EXCLUDING THE 04 POPULATION OF INCORPORATED CITIES LOCATED WITHIN THE 05 ORGANIZED BOROUGH]. 06 * Sec. 44. AS 04.11.400(i) is repealed and reenacted to read: 07 (i) This section does not apply to a 08 (1) brewery manufacturer license issued under AS 04.09.020; 09 (2) winery manufacturer license issued under AS 04.09.030; 10 (3) distillery manufacturer license issued under AS 04.09.040; 11 (4) general wholesale license issued under AS 04.09.100; 12 (5) limited wholesale brewed beverage and wine license under 13 AS 04.09.110; 14 (6) outdoor recreation lodge license issued under AS 04.09.280; 15 (7) destination resort license issued under AS 04.09.300; 16 (8) beverage dispensary tourism license issued under AS 04.09.340; 17 (9) seasonal restaurant or eating place tourism license issued under 18 AS 04.09.350; 19 (10) winery direct shipment license issued under AS 04.09.360; 20 (11) conditional contractor's permit issued under AS 04.09.690. 21 * Sec. 45. AS 04.11.400(k) is amended to read: 22 (k) The board may allow the relocation of an existing beverage dispensary 23 license under AS 04.09.200 or former AS 04.11.090 to a restaurant, eating place, or 24 hotel, motel, resort, or similar business that contains a restaurant or eating place, or of 25 an existing package store license under AS 04.09.230 or former AS 04.11.150, in a 26 borough with a population of 50,000 [60,000] or more [IF THE GOVERNING BODY 27 OF THE BOROUGH APPROVES THE RELOCATION. HOWEVER, IF THE 28 RELOCATION OF THE LICENSE IS] into or within an incorporated city in the 29 borough. The [, THE] board may not approve the relocation unless, at the time of 30 application, the existing number of issued licenses of the type under consideration 31 for relocation located within the borough exceeds the maximum allowed under

01 (a) of this section, and the governing bodies of both the borough and the incorporated 02 city approve the relocation. The board may allow not more than three relocations into 03 each city [IN A BOROUGH] under this subsection each decade. In this subsection, 04 "decade" means each 10-year period beginning April 1 in a year ending in zero. 05 * Sec. 46. AS 04.11 is amended by adding a new section to read: 06 Sec. 04.11.405. Petition for additional restaurant or eating place licenses 07 for certain local governing bodies. (a) A first class city, a home rule city, or a unified 08 municipality may submit a resolution to the board, adopted by its legislative body, 09 petitioning the board for the issuance of additional restaurant or eating place licenses 10 under AS 04.11.100 that exceed the limits under AS 04.11.400(a) in accordance with 11 this section. 12 (b) The board, following a public hearing, may issue one or more additional 13 restaurant or eating place licenses under AS 04.11.100, within the boundaries of the 14 municipality, if the board finds that 15 (1) the municipality 16 (A) serves as a center for commercial activity within and 17 outside the boundaries of the municipality by providing goods and services to a 18 population that is greater than the permanent resident population within the 19 boundaries of the municipality; 20 (B) maintains a local law enforcement department; 21 (C) exercises planning and land-use authority; and 22 (D) at the time of the petition, meets or exceeds the maximum 23 limit under AS 04.11.400(a) for restaurant or eating place licenses issued under 24 AS 04.11.100; 25 (2) the number of additional licenses does not exceed the number of 26 additional licenses requested by the municipality in the petition; and 27 (3) granting the additional licenses is in the public interest. 28 (c) A resolution submitted by a municipality under (a) of this section must 29 include 30 (1) information demonstrating that the petitioner meets the criteria in 31 (b) of this section;

01 (2) the most recent estimate of the number of people who claim 02 residency or work outside the boundaries of the municipality and who are served by 03 the municipality, including the 04 (A) population located outside the boundaries of the 05 municipality that relies on the municipality for goods and services; 06 (B) visitor population; and 07 (C) nonresident worker population that resides in the 08 municipality, but that is not counted in the latest federal or state census for the 09 municipality; 10 (3) the number of existing restaurant or eating place licenses 11 (A) within the boundaries of the municipality; 12 (B) in a geographic area that the municipality serves under (2) 13 of this subsection; 14 (4) information showing that the number of additional licenses 15 requested does not exceed one license for each 1,500 population of the population 16 identified under (2) of this subsection; and 17 (5) additional justification, as necessary, to demonstrate that granting 18 of the additional licenses is in the public interest. 19 (d) If the board grants a petition for additional restaurant or eating place 20 licenses under this section to a municipality, the board may not authorize additional 21 restaurant or eating place licenses to the same municipality under this section for the 22 following 10 years. 23 * Sec. 47. AS 04.11.405(a), as enacted by sec. 46 of this Act, is amended to read: 24 (a) A first class city, a home rule city, or a unified municipality may submit a 25 resolution to the board, adopted by its legislative body, petitioning the board for the 26 issuance of additional restaurant or eating place licenses under AS 04.09.210 27 [AS 04.11.100] that exceed the limits under AS 04.11.400(a) in accordance with this 28 section. 29 * Sec. 48. AS 04.11.405(b), as enacted by sec. 46 of this Act, is amended to read: 30 (b) The board, following a public hearing, may issue one or more additional 31 restaurant or eating place licenses under AS 04.09.210 [AS 04.11.100], within the

01 boundaries of the municipality, if the board finds that 02 (1) the municipality 03 (A) serves as a center for commercial activity within and 04 outside the boundaries of the municipality by providing goods and services to a 05 population that is greater than the permanent resident population within the 06 boundaries of the municipality; 07 (B) maintains a local law enforcement department; 08 (C) exercises planning and land-use authority; and 09 (D) at the time of the petition, meets or exceeds the maximum 10 limit under AS 04.11.400(a) for restaurant or eating place licenses issued under 11 AS 04.09.210 [AS 04.11.100]; 12 (2) the number of additional licenses does not exceed the number of 13 additional licenses requested by the municipality in the petition; and 14 (3) granting the additional licenses is in the public interest. 15 * Sec. 49. AS 04.11.430 is amended to read: 16 Sec. 04.11.430. Person and location. (a) Each license shall be issued to a 17 specific individual or individuals, to a partnership, including a limited partnership, to a 18 limited liability organization, or to a corporation. If the license is issued to a 19 corporation or a limited liability organization, the registered agent of the corporation 20 or limited liability organization may [MUST] be either an individual resident of the 21 state or a domestic corporation authorized to transact business in this state whose 22 business office is the same as the registered office. 23 (b) Except for a license authorizing the sale of alcoholic beverages on a 24 common carrier, a specific location shall be indicated on the license or permit as the 25 licensed premises, the principal address of which shall be indicated on the license or 26 permit. The mailing address, telephone number, and electronic mailing address of a 27 licensee or, if the licensee is a corporation, the address, telephone number, and 28 electronic mailing address of the registered office of the corporation must be kept 29 current and on file in the main office of the board. 30 * Sec. 50. AS 04.11.450(b) is amended to read: 31 (b) A person who is a representative or owner of a wholesale business

01 licensed under AS 04.09.100 or 04.09.110 [, BREWERY, WINERY, BOTTLING 02 WORKS, OR DISTILLERY] may not be issued, solely or together with others, a 03 manufacturer license issued under AS 04.09.020 - 04.09.040, or a retail license 04 issued under AS 04.09.200 - 04.09.360 [BEVERAGE DISPENSARY LICENSE, A 05 RESTAURANT OR EATING PLACE LICENSE, OR PACKAGE STORE 06 LICENSE. A HOLDER OF A BEVERAGE DISPENSARY LICENSE MAY BE 07 ISSUED A BREWPUB LICENSE, SUBJECT TO THE PROVISIONS OF 08 AS 04.11.135. THE PROHIBITION AGAINST ISSUANCE OF A RESTAURANT 09 OR EATING PLACE LICENSE IMPOSED UNDER THIS SUBSECTION DOES 10 NOT APPLY TO A RESTAURANT OR EATING PLACE LICENSE ISSUED ON 11 OR BEFORE OCTOBER 1, 1996 OR A RESTAURANT OR EATING PLACE 12 LICENSE ISSUED UNDER AN APPLICATION FOR A RESTAURANT OR 13 EATING PLACE LICENSE APPROVED ON OR BEFORE OCTOBER 1, 1996]. 14 * Sec. 51. AS 04.11.450(e) is amended to read: 15 (e) A holder of either a general wholesale license or a limited wholesale 16 brewed [MALT] beverage and wine license may not be employed by or act as the 17 agent or employee of the holder of a manufacturer [BEVERAGE DISPENSARY OR 18 PACKAGE STORE] license under AS 04.09.020 - 04.09.040 or a retail license 19 under AS 04.09.200 - 04.09.360. 20 * Sec. 52. AS 04.11.450 is amended by adding new subsections to read: 21 (g) The holder of a manufacturer license that annually produces in total 22 300,000 barrels or more of brewed beverages, 50,000 nine-liter-equivalent cases or 23 more of wine, or 50,000 nine-liter-equivalent cases or more of distilled spirits may not 24 be issued, solely or together with others, a license under AS 04.09.100 - 04.09.360. 25 (h) For purposes of calculating the volume that the holder of a manufacturer 26 license produces under this section, the volume of production must include all 27 production by 28 (1) the holder of the manufacturer's license; and 29 (2) an officer, director, agent, employee, or affiliate of the holder; in 30 this paragraph, "affiliate" means a person that directly or indirectly, through one or 31 more intermediaries, controls, or is controlled by, or is under common control with, a

01 corporation. 02 * Sec. 53. AS 04.11.460 is amended by adding a new subsection to read: 03 (d) This section does not apply to a winery direct shipment license issued 04 under AS 04.09.360. 05 * Sec. 54. AS 04.11.470 is amended to read: 06 Sec. 04.11.470. Objection. A person may object to an application for issuance, 07 renewal, transfer of location, or transfer to another person of a license, for issuance, 08 renewal, or transfer to another person of a license with one or more 09 endorsements, for issuance of an endorsement or for issuance of a permit, by 10 serving upon the applicant and the board the reasons for the objection. The board shall 11 consider the objections and testimony received at a hearing conducted under 12 AS 04.11.510(b)(2) when it considers the application. An objection and the record of a 13 hearing conducted under AS 04.11.510(b)(2) shall be retained as part of the board's 14 permanent record of its review of the application. 15 * Sec. 55. AS 04.11.480(a) is amended to read: 16 (a) A local governing body may protest the issuance, renewal, relocation, or 17 transfer to another person of a license, issuance, renewal, or transfer to another 18 person of a license with one or more endorsements, or issuance of an 19 endorsement by sending the board and the applicant a protest and the reasons for the 20 protest within 60 days of the date [RECEIPT FROM THE BOARD] of the notice of 21 filing of the application. A protest received after the 60-day period may not be 22 accepted by the board, and in no event may a protest cause the board to reconsider an 23 approved renewal, relocation, or transfer. The local governing body may protest the 24 continued operation of a license or endorsement during the second year of the 25 biennial license period by sending the board and the licensee a protest and the reasons 26 for the protest by January 31 of the second year of the license. The procedures for 27 action on a protest of continued operation of a license or endorsement are the same as 28 the procedures for action on a protest of a renewal application. The board shall 29 consider a protest and testimony received at a hearing conducted under 30 AS 04.11.510(b)(2) or (4) when it considers the application or continued operation, 31 and the protest and the record of the hearing conducted under AS 04.11.510(b)(2) or

01 (4) shall be kept as part of the board's permanent record of its review. If an application 02 or continued operation is protested, the board shall deny the application or continued 03 operation unless the board finds that the protest is arbitrary, capricious, and 04 unreasonable. 05 * Sec. 56. AS 04.11.480(b) is amended to read: 06 (b) If the permanent residents residing outside of but within two miles of an 07 incorporated city or an established village wish to protest the issuance, renewal, or 08 transfer of a license or a license with one or more endorsements within the city or 09 village, they shall file with the board a petition meeting the requirements of 10 AS 04.11.510(b)(3) requesting a public hearing not later than [WITHIN] 30 days 11 after [OF] the posting of notice required under AS 04.11.310, or by December 31 of 12 the year application is made for renewal of a license. The board shall consider 13 testimony received at a hearing conducted under AS 04.11.510(b)(3) when it considers 14 the application, and the record of a hearing conducted under AS 04.11.510(b)(3) shall 15 be retained as part of the board's permanent record of its review of the application. 16 * Sec. 57. AS 04.11.480(c) is amended to read: 17 (c) A local governing body may recommend that a license be issued, renewed, 18 relocated, or transferred, or that a license with one or more endorsements be 19 issued, renewed, or transferred to another person, with conditions. The board shall 20 consider recommended conditions and testimony received at a hearing conducted 21 under AS 04.11.510(b)(2) or (4) when it considers the application or continued 22 operation, and the recommended conditions and the record of the hearing conducted 23 under AS 04.11.510(b)(2) or (4) shall be kept as part of the board's permanent record 24 of its review. If the local governing body recommends conditions, the board shall 25 impose the recommended conditions unless the board finds that the recommended 26 conditions are arbitrary, capricious, or unreasonable. If a condition recommended by a 27 local governing body is imposed on a licensee, the local governing body shall assume 28 responsibility for monitoring compliance with the condition, except as otherwise 29 provided by the board. 30 * Sec. 58. AS 04.11.491(a) is amended to read: 31 (a) If a majority of the persons voting on the question vote to approve the

01 option, a municipality shall adopt a local option to prohibit 02 (1) the sale of alcoholic beverages; 03 (2) the sale of alcoholic beverages except by one or more of the 04 following listed on the ballot: 05 (A) a restaurant or eating place licensee; 06 (B) a beverage dispensary licensee; 07 (C) a package store licensee; 08 (D) a caterer holding a beverage dispensary caterer's permit 09 under AS 04.09.610 [AS 04.11.230] to sell alcoholic beverages at a site within 10 the municipality who is also licensed under a beverage dispensary license for 11 premises outside of the municipality; 12 (E) a winery manufacturer licensee; [OR] 13 (F) a winery manufacturer licensee, except that sales may 14 occur only to a person licensed under this title or in another state or country; or 15 (G) an outdoor recreation lodge; 16 (3) the sale of alcoholic beverages except on premises operated by the 17 municipality and under a type of licensed premises listed on the ballot, that may 18 include one or more of the following: 19 (A) a restaurant or eating place license; 20 (B) a beverage dispensary license; or 21 (C) a package store license; 22 (4) the sale and importation of alcoholic beverages; or 23 (5) the sale, importation, and possession of alcoholic beverages. 24 * Sec. 59. AS 04.11.491(b) is amended to read: 25 (b) If a majority of the persons voting on the question vote to approve the 26 option, an established village shall exercise a local option to prohibit 27 (1) the sale of alcoholic beverages; 28 (2) the sale of alcoholic beverages except by one or more of the 29 following listed on the ballot: 30 (A) a restaurant or eating place licensee; 31 (B) a beverage dispensary licensee;

01 (C) a package store licensee; 02 (D) a caterer holding a beverage dispensary caterer's permit 03 under AS 04.09.610 [AS 04.11.230] to sell alcoholic beverages at a site within 04 the established village who is also licensed under a beverage dispensary license 05 for premises outside of the established village; 06 (E) a winery manufacturer licensee; [OR] 07 (F) a winery manufacturer licensee, except that sales may 08 occur only to a person licensed under this title or in another state or country; or 09 (G) an outdoor recreation lodge; 10 (3) the sale and importation of alcoholic beverages; or 11 (4) the sale, importation, and possession of alcoholic beverages. 12 * Sec. 60. AS 04.11.491(d) is amended to read: 13 (d) The ballot for an election on the option set out in (a)(2)(A), (a)(3)(A), or 14 (b)(2)(A) of this section must include a summary explanation of the authority to sell 15 alcoholic beverages given to a restaurant or eating place under AS 04.09.210(a) 16 [AS 04.11.100(a)]. The ballot for an election on the option set out in (a)(2)(B) or (D), 17 (a)(3)(B), or (b)(2)(B) or (D) of this section must include a statement that a beverage 18 dispensary license is commonly known as a "bar" and a summary explanation of the 19 authority to sell alcoholic beverages given to a beverage dispensary licensee under 20 AS 04.09.200 [AS 04.11.090(a)]. The ballot for an election on the option set out in 21 (a)(2)(C), (a)(3)(C), or (b)(2)(C) of this section must include a statement that a 22 package store license is commonly known as a "liquor store" and a summary 23 explanation of the authority to sell alcoholic beverages given to a package store 24 licensee under AS 04.09.230 [AS 04.11.150(a)]. 25 * Sec. 61. AS 04.11.491(g) is amended to read: 26 (g) If a municipality or established village has adopted a local option under 27 (a)(1), (2), (3), or (4), or (b)(1), (2), or (3) of this section, the municipality or 28 established village, as part of the local option question or questions placed before the 29 voters, may 30 (1) adopt an amount of alcoholic beverages that may be imported that 31 is less than the amounts set out in AS 04.09.460(e) [AS 04.11.150(g)];

01 (2) adopt an amount of alcoholic beverages that would give rise to a 02 presumption that the person possessed the alcoholic beverages for sale; the amounts 03 adopted under this paragraph may be lower than those set out in AS 04.11.010(c) [; 04 (3) OPT TO NOT APPLY A CLASS C FELONY TO VIOLATIONS 05 OF AS 04.16.051 THAT APPLY SOLELY BY REASON OF THE MUNICIPALITY 06 OR ESTABLISHED VILLAGE ADOPTING A LOCAL OPTION UNDER THIS 07 SECTION]. 08 * Sec. 62. AS 04.11.520 is amended to read: 09 Sec. 04.11.520. Notice to local governing body. After receipt of an 10 application for the issuance or renewal of a license, the renewal of a license with 11 one or more endorsements, the transfer of a license or a license with one or more 12 endorsements to another person, transfer of a license to a new location, or the 13 issuance of an endorsement from within [(1)] an established village, [(2)] an 14 incorporated city, [(3)] an organized borough, or [(4)] a unified municipality, the 15 board shall notify [TRANSMIT WRITTEN NOTICE TO] the local governing body in 16 writing within 10 business days so that the local governing body may protest under 17 AS 04.11.480. 18 * Sec. 63. AS 04.11.535(a) is amended to read: 19 (a) If, in a proceeding to suspend or revoke a license, endorsement, or permit 20 under AS 04.11.370(a)(5), the board finds that a sentencing report, record of 21 conviction, or judgment sent to the board under AS 12.55.025(b) or a report prepared 22 by the investigating or arresting officers in connection with the violation, contains 23 information that if uncontradicted or unexplained would provide a ground for 24 suspension or revocation under AS 04.11.370(a)(5), the licensee or permittee has the 25 burden of proof to establish that the licensee or permittee neither knowingly allowed 26 the violation nor recklessly or with criminal negligence failed to act in accordance 27 with the duty prescribed under AS 04.21.030. 28 * Sec. 64. AS 04.11.537 is amended to read: 29 Sec. 04.11.537. Application of precedent. In determining whether issuance, 30 renewal, transfer, relocation, suspension, or revocation of a license or the issuance, 31 renewal, transfer to another person, suspension, or revocation of an endorsement

01 is in the best interests of the public, the board need not conform to or distinguish its 02 decision from any action it has taken in the past on applications presenting similar 03 facts, but may instead base its decision only on the particular facts before it. 04 * Sec. 65. AS 04.11.540 is amended to read: 05 Sec. 04.11.540. License, endorsement, and conditional contractor's permit 06 renewal and expiration. Notwithstanding AS 04.11.680, an application for renewal 07 of a license, endorsement, or a conditional contractor's permit under 08 AS 04.09.690 issued for the two calendar years ending December 31 or of a seasonal 09 license issued for parts of those calendar years may be submitted up until the next 10 February 28. If a complete application for renewal has not been filed by February 28 11 or the required fees and the penalty fees have not been paid by that date, the license, 12 endorsement, or conditional contractor's permit expires at 12:00 midnight 13 February 28. A new license may not be issued to the holder of an expired license for 14 the same premises except on proof satisfactory to the board of good cause for the 15 failure to file and pay. 16 * Sec. 66. AS 04.11.560(b) is amended to read: 17 (b) A decision by the board relating to the issuance, renewal, transfer, 18 relocation, suspension, or revocation of a license or an endorsement under this title 19 may be appealed to the superior court under AS 44.62.560. 20 * Sec. 67. AS 04.11.570 is amended to read: 21 Sec. 04.11.570. Refund and forfeiture of fees. (a) If an application for a 22 license or endorsement is denied, the board shall refund the license fee but not 23 [LESS] the application fee. 24 (b) A license or endorsement fee may not be refunded after the license or 25 endorsement has been issued unless the board determines it has erred in the issuance 26 through no fault of the applicant. 27 (c) If a license, endorsement, or permit is revoked on grounds that 28 statements made in the application are untrue, the [LICENSE] fee paid by the 29 applicant is forfeited to the state. 30 * Sec. 68. AS 04.11.580(b) is amended to read: 31 (b) The licensee shall surrender a current license to the board not later than

01 [WITHIN] 10 days after the loss or vacation of the licensed premises. 02 * Sec. 69. AS 04.11.590(a) is amended to read: 03 (a) Money collected from licenses, endorsements, permits, and civil 04 penalties [FINES] under this title shall be transferred by the board to the Department 05 of Commerce, Community, and Economic Development and deposited in the general 06 fund. 07 * Sec. 70. AS 04.11.610 is amended to read: 08 Sec. 04.11.610. Allocation [REFUND] to municipalities. (a) An amount 09 equal to the sum of the biennial [BIENNIAL] license fees, excluding annual 10 wholesale fees and biennial wholesale license fees, collected within a municipality 11 shall be allocated [REFUNDED] semi-annually to the municipality. 12 (b) If the officers of a municipality fail to actively enforce local ordinances, 13 this title, laws of the United States and the state, and the regulations relating to the 14 manufacture and sale of alcoholic beverages in the state, or fail to provide the 15 director with a report of contacts with licensed establishments, educational 16 activities concerning this title and local ordinances, and violations of this title 17 occurring in the municipality, at the time and in the format as may be required 18 by regulation adopted by the board, the commissioner of commerce, community, 19 and economic development may deny the allocation [REFUND] provided for under 20 (a) of this section until the board finds the enforcement of the ordinances, laws, and 21 regulations is resumed or the report is provided. 22 (c) The Department of Commerce, Community, and Economic Development 23 shall recover any funds [AMOUNTS] erroneously allocated [REFUNDED] under (a) 24 of this section. The Department of Commerce, Community, and Economic 25 Development shall schedule repayments of erroneously allocated funds 26 [REFUNDED AMOUNTS] over a sufficient period of time to minimize financial 27 hardship to the municipality involved. 28 * Sec. 71. AS 04.11.630(b) is amended to read: 29 (b) A license, endorsement, or permit issued under this title shall be posted 30 within the licensed premises or designated premises so as to be easily available for 31 inspection upon request by a peace officer or other person during regular business

01 hours or during the time period specified on the permit. 02 * Sec. 72. AS 04.11.680 is amended to read: 03 Sec. 04.11.680. Duration of licenses, endorsements, and permits. (a) Upon 04 application [AND PAYMENT OF ONE-HALF OF THE BIENNIAL FEE], the board 05 may issue a seasonal license under this title that is effective for the intervals stated on 06 the license. [A SEASONAL LICENSE MAY NOT BE EFFECTIVE FOR MORE 07 THAN 12 MONTHS IN A TWO-YEAR PERIOD.] Otherwise, a license or 08 endorsement [ALL LICENSES] issued under this title and a conditional 09 contractor's permit issued under AS 04.09.690 is [OTHER THAN A RETAIL 10 STOCK SALE LICENSE ARE] effective for the two calendar years ending 11 December 31, unless a shorter period is prescribed by the board or by law. 12 (b) A permit issued under this title shall be for a specific time [THE] period 13 [PRESCRIBED BY THE BOARD]. The period shall be clearly designated on the 14 permit. 15 * Sec. 73. AS 04.16.010(c) is amended to read: 16 (c) A licensee, an agent, or employee may not permit a person to enter and a 17 person may not enter premises licensed under this title between the hours of 5:00 a.m. 18 and 8:00 a.m. each day, unless the person is 19 (1) on the premises to conduct business with the licensee, agent, or 20 employee, and the licensee, agent, or employee is in compliance with (a) and (b) 21 of this section; 22 (2) a common carrier with a common carrier dispensary license 23 under AS 04.09.260; 24 (3) [. THIS SUBSECTION DOES NOT APPLY TO COMMON 25 CARRIERS OR TO] an employee of the licensee who is on the premises to prepare 26 for the next day's business; 27 (4) performing maintenance or improvements authorized by the 28 licensee; 29 (5) [. A PERSON MAY ENTER OR REMAIN] on the premises [OF 30 A BONA FIDE RESTAURANT OR EATING PLACE LICENSED UNDER THIS 31 TITLE] to consume food or nonalcoholic beverages and the premises are covered

01 under a restaurant endorsement issued under AS 04.09.450. 02 * Sec. 74. AS 04.16.010 is amended by adding a new subsection to read: 03 (e) A person who violates (a), (b), or (c) of this section is guilty of a violation. 04 * Sec. 75. AS 04.16.015(a) is amended to read: 05 (a) On premises where alcoholic beverages are sold by the drink, a licensee or 06 a licensee's agent or employee may not 07 (1) offer or deliver, as a marketing device to the general public, free 08 alcoholic beverages to a patron, except as provided for the holder of a 09 manufacturer sampling endorsement under AS 04.09.410 or a package store 10 sampling endorsement under AS 04.09.490; 11 (2) deliver an alcoholic beverage to a person already possessing two or 12 more; 13 (3) sell, offer to sell, or deliver alcoholic beverages to a person or 14 group of persons at a price less than the price regularly charged for the beverages 15 during a consecutive seven-day period [THE SAME CALENDAR WEEK], except at 16 private functions not open to the general public; 17 (4) sell, offer to sell, or deliver an unlimited number of alcoholic 18 beverages to a person or group of persons during a set period of time for a fixed price; 19 (5) sell, offer to sell, or deliver alcoholic beverages to a person or 20 group of persons on any one day at prices less than those charged the general public 21 on that day, except at private functions not open to the general public; 22 (6) encourage or permit an organized game or contest on the licensed 23 premises that involves drinking alcoholic beverages or the awarding of alcoholic 24 beverages as prizes. 25 * Sec. 76. AS 04.16.015 is amended by adding a new subsection to read: 26 (e) A person who violates this section is guilty of a violation. 27 * Sec. 77. AS 04.16 is amended by adding a new section to read: 28 Sec. 04.16.017. Trade practices. (a) A person holding a license under 29 AS 04.09.020, 04.09.030, 04.09.040, 04.09.100, or 04.09.110 or engaged in the 30 alcoholic beverage industry in another state or country as a brewer, vintner, distiller, 31 or importer, or as an agent of a brewer, vintner, distiller, or importer, may not, except

01 as provided in regulations adopted by the board under (b) of this section, induce a 02 person holding a license under this title to 03 (1) operate as a tied house by inducing a retailer engaged in the sale of 04 alcoholic beverages to purchase products from an entity to the exclusion, in whole or 05 in part, of products sold or offered for sale by other entities by 06 (A) furnishing, giving, renting, lending, or selling to the retailer 07 equipment fixtures, signs, supplies, money, services, or other things of value, 08 except those excluded in regulation and determined to be not contrary to the 09 public interest or contrary to the intent of this subsection; 10 (B) paying or crediting the retailer for an advertising, display, 11 or distribution service; 12 (C) guaranteeing a loan or the repayment of a financial 13 obligation of the retailer; 14 (D) extending to the retailer credit for a period in excess of the 15 credit period usual and customary to the industry for the particular class of 16 transactions; or 17 (E) requiring the retailer to take and dispose of a certain quota 18 of the products; 19 (2) operate as an exclusive outlet by requiring that a retailer engaged in 20 the sale of alcoholic beverages purchase products from an entity to the exclusion, in 21 whole or in part, of alcoholic beverages sold or offered for sale by other entities; 22 (3) purchase products from an entity to the exclusion, in whole or in 23 part, of products sold or offered for sale by other entities by 24 (A) commercial bribery; or 25 (B) offering or giving any bonus, premium, or compensation to 26 an officer, employee, or representative of the licensee; 27 (4) enter into an agreement for consignment sales, or to purchase, offer 28 to purchase, or contract to purchase products on consignment, under conditional sale, 29 or with the privilege of return on any basis other than a bona fide sale, or where part of 30 the transaction involves, directly or indirectly, the acquisition by an entity from the 31 licensee or the entity's agreement to acquire from the licensee other alcoholic

01 beverages, except that this paragraph does not apply to transactions involving solely 02 the return of merchandise for ordinary and usual commercial reasons arising after the 03 merchandise has been sold. 04 (b) The board shall adopt regulations providing exceptions to the practices 05 listed under (a) of this section that are 06 (1) consistent with federal law at the time of the effective date of this 07 section; 08 (2) necessary to avoid practical difficulty or undue hardship on a 09 licensee; 10 (3) in the best interests of the public; and 11 (4) consistent with the requirements of this title. 12 (c) The board shall adopt regulations establishing administrative penalties for 13 a violation of this section. 14 (d) In this section, "commercial bribery," "consignment sales," "exclusive 15 outlet," and "tied house" have the meanings given in 27 U.S.C. 205 and regulations 16 adopted under that section. 17 * Sec. 78. AS 04.16.020 is amended by adding new subsections to read: 18 (d) A person who violates a provision of this section commits the offense of 19 unauthorized solicitation or purchase of alcoholic beverages. 20 (e) Unauthorized solicitation or purchase of alcoholic beverages is a violation 21 and is punishable by a fine of $100. 22 * Sec. 79. AS 04.16 is amended by adding a new section to read: 23 Sec. 04.16.022. Online sale and purchase of alcoholic beverages. (a) A 24 licensee or a licensee's agent or employee may not sell or offer to sell alcoholic 25 beverages to the public online unless the licensee holds a winery direct shipment 26 license issued under AS 04.09.360 or a package store shipping endorsement under 27 AS 04.09.460. 28 (b) A person may not purchase alcoholic beverages online except from the 29 holder of a winery direct shipment license issued under AS 04.09.360 or a package 30 store shipping endorsement under AS 04.09.460. 31 (c) A person who violates (a) of this section is, upon conviction, guilty of a

01 class A misdemeanor. 02 (d) A person who violates (b) of this section is guilty of a violation. 03 * Sec. 80. AS 04.16.025(a) is amended to read: 04 (a) A person may not knowingly enter or remain on premises 05 (1) in which alcoholic beverages are manufactured, sold, offered for 06 sale, possessed for sale or barter, trafficked in, or bartered in violation of 07 (A) AS 04.09.060, 04.09.070, 04.09.145, 04.09.370, 04.09.380, 08 or AS 04.11.010; or 09 (B) a municipal ordinance adopted under AS 04.21.010(a) or 10 (b); or 11 (2) licensed under this title during hours in which the person's presence 12 on the premises is a violation of a municipal ordinance adopted under authority of 13 AS 04.16.010(d) providing for hours of closure that are outside the hours of closure 14 prescribed by AS 04.16.010(c). 15 * Sec. 81. AS 04.16.030 is amended by adding new subsections to read: 16 (c) A person who violates this section commits the offense of prohibited 17 conduct relating to a drunken person. 18 (d) Prohibited conduct relating to a drunken person is a violation, punishable 19 by a fine of $500. 20 (e) In addition to the penalty specified under (d) of this section, the holder of 21 the license is strictly and vicariously liable for a violation committed by an employee 22 or agent of the licensee on the licensed premises, punishable by an administrative 23 penalty of $250. Notwithstanding AS 04.11.370(a)(4) and (5) and AS 04.16.180(b)(1), 24 the board may not order suspension of the license for the first violation committed on 25 the licensed premises under this section. 26 (f) A licensee who knowingly allows an agent or employee of the licensee to 27 commit the offense of prohibited conduct relating to a drunken person under (c) of this 28 section commits the offense of failure to ensure compliance relating to a drunken 29 person. 30 (g) Failure to ensure compliance relating to a drunken person is a class A 31 misdemeanor.

01 * Sec. 82. AS 04.16.035 is amended to read: 02 Sec. 04.16.035. Possession of ingredients for homebrew in certain areas. A 03 person residing in an area that has adopted a local option under AS 04.11.491 [TO 04 PROHIBIT THE SALE, IMPORTATION, AND POSSESSION OF ALCOHOLIC 05 BEVERAGES UNDER AS 04.11.491(a)(5) OR (b)(4)] may not possess sugar, 06 artificial sugar, malt, yeast, or any other material or equipment with the intent to use 07 the material or equipment to create an alcoholic beverage. 08 * Sec. 83. AS 04.16.035 is amended by adding new subsections to read: 09 (b) A person who knowingly violates this section commits the crime of 10 possession of ingredients for homebrew. 11 (c) Possession of ingredients for homebrew is a class A misdemeanor. 12 * Sec. 84. AS 04.16.040 is amended to read: 13 Sec. 04.16.040. Access of drunken persons to licensed premises. A drunken 14 person may not knowingly enter or remain on licensed premises [LICENSED 15 UNDER THIS TITLE]. 16 * Sec. 85. AS 04.16.040 is amended by adding new subsections to read: 17 (b) A person who violates this section commits the offense of prohibited 18 access by a drunken person. 19 (c) Prohibited access by a drunken person is a violation. 20 * Sec. 86. AS 04.16.045 is amended by adding new subsections to read: 21 (b) A person who violates this section commits the offense of permitting 22 consumption not authorized under a license. 23 (c) Permitting consumption not authorized under a license is a violation. 24 * Sec. 87. AS 04.16.047 is amended by adding new subsections to read: 25 (d) A person who is restricted from purchasing alcohol under AS 04.16.160 26 who knowingly violates (a) of this section commits the offense of entering or 27 remaining on licensed premises. 28 (e) Entering or remaining on licensed premises is a class A misdemeanor. 29 * Sec. 88. AS 04.16.049(a) is amended to read: 30 (a) A person under 21 years of age may not knowingly enter or remain in 31 premises licensed under this title unless

01 (1) accompanied by a parent, guardian, or spouse who has attained 21 02 years of age; 03 (2) the person is allowed to enter and remain on [AT LEAST 16 04 YEARS OF AGE,] the premises under a restaurant endorsement issued under 05 AS 04.09.450 [ARE DESIGNATED BY THE BOARD AS A RESTAURANT FOR 06 THE PURPOSES OF THIS SECTION, AND THE PERSON ENTERS AND 07 REMAINS ONLY FOR DINING; 08 (3) THE PERSON IS UNDER 16 YEARS OF AGE, IS 09 ACCOMPANIED BY A PERSON OVER 21 YEARS OF AGE, THE PARENT OR 10 GUARDIAN OF THE UNDERAGED PERSON CONSENTS, THE PREMISES ARE 11 DESIGNATED BY THE BOARD AS A RESTAURANT FOR THE PURPOSES OF 12 THIS SECTION, AND THE PERSON ENTERS AND REMAINS ONLY FOR 13 DINING]; 14 (3) [(4)] the person is permitted on the premises under a club license 15 issued under AS 04.09.220(g) or former AS 04.11.110(g); or 16 (4) [(5)] otherwise provided under (c), (d), or (g) of this section. 17 * Sec. 89. AS 04.16.049(c) is amended to read: 18 (c) Notwithstanding any other provision in this section, a person 16 or 17 19 years of age may enter and remain within the licensed premises of a hotel or motel, 20 large resort, golf course, general wholesaler, limited brewed beverage and wine 21 wholesaler, common carrier dispensary, outdoor recreation lodge, or restaurant 22 [OR EATING PLACE] in the course of employment if 23 (1) the employment does not involve the serving, mixing, delivering, 24 or dispensing of alcoholic beverages; 25 (2) the person has the written consent of a parent or guardian; and 26 (3) an exemption from the prohibition of AS 23.10.355 is granted by 27 the Department of Labor and Workforce Development. [THE BOARD, WITH THE 28 APPROVAL OF THE GOVERNING BODY HAVING JURISDICTION AND AT 29 THE LICENSEE'S REQUEST, SHALL DESIGNATE WHICH PREMISES ARE 30 HOTELS, GOLF COURSES, RESTAURANTS, OR EATING PLACES FOR THE 31 PURPOSES OF THIS SUBSECTION.]

01 * Sec. 90. AS 04.16.049(d) is amended to read: 02 (d) Notwithstanding any other provision in this section, a person 18, 19, or 20 03 years of age may be employed within the licensed premises of a hotel or motel, large 04 resort, golf course, general wholesaler, limited brewed beverage and wine 05 wholesaler, common carrier dispensary, outdoor recreation lodge, or restaurant 06 [OR EATING PLACE], may enter and remain within those premises for the purpose 07 of employment, but may not, in the course of employment, sell, serve, deliver, or 08 dispense alcoholic beverages. 09 * Sec. 91. AS 04.16.049 is amended by adding a new subsection to read: 10 (j) Notwithstanding any other provision in this section, a person under 21 11 years of age may be present on the licensed premises of a common carrier dispensary, 12 destination resort, or outdoor recreation lodge for the purpose of travel, travel lodging, 13 or outdoor recreation activities provided by the licensee if the person is 14 (1) at least 16 years of age; or 15 (2) under 16 years of age and a parent or legal guardian of the 16 underaged person consents. 17 * Sec. 92. AS 04.16.051(d) is repealed and reenacted to read: 18 (d) A person who, with criminal negligence, furnishes or delivers an alcoholic 19 beverage to a person under 21 years of age in violation of (a) of this section commits 20 the crime of furnishing or delivering to a minor. 21 * Sec. 93. AS 04.16.051 is amended by adding a new subsection to read: 22 (e) Furnishing or delivering to a minor is 23 (1) a violation and is punishable by a fine of $500, except as provided 24 in (2) of this subsection; 25 (2) a class C felony if the person who receives the alcoholic beverage 26 negligently causes serious physical injury to or the death of another person while 27 under the influence of the alcoholic beverage received in violation of this section; in 28 this paragraph, 29 (A) "negligently" means acting with civil negligence; and 30 (B) "serious physical injury" has the meaning given in 31 AS 11.81.900.

01 * Sec. 94. AS 04.16.052 is amended by adding new subsections to read: 02 (b) In addition to the penalty specified under (d) of this section, for a violation 03 committed by an employee or agent of the licensee on a licensed premises under this 04 section, the holder of the license is strictly liable and subject to an administrative 05 penalty of $250. Notwithstanding AS 04.11.370(a)(4) and (5) and AS 04.16.180(b)(1), 06 the board may not order suspension of the license for the first violation committed on 07 the licensed premises under this section. 08 (c) A person who violates (a) of this section commits the offense of licensee, 09 employee, or agent furnishing alcohol to a minor. 10 (d) Licensee, employee, or agent furnishing alcohol to a minor is a violation 11 and is punishable by a fine of $500. 12 (e) A licensee who knowingly allows an agent or employee of the licensee to 13 commit the offense of licensee, employee, or agent furnishing alcohol to a minor 14 under (c) of this section commits the offense of failure to ensure compliance relating 15 to furnishing alcohol to a minor. 16 (f) Failure to ensure compliance relating to furnishing alcohol to a minor is a 17 class A misdemeanor. 18 * Sec. 95. AS 04.16.055 is amended by adding new subsections to read: 19 (b) A person who knowingly rents a room in a hotel, motel, resort, or similar 20 business for the purpose of providing alcoholic beverages to a person under 21 years 21 of age commits the crime of renting a room for the purpose of providing alcoholic 22 beverages to a person under 21 years of age. 23 (c) Renting a room for the purpose of providing alcoholic beverages to a 24 person under 21 years of age is a violation and is punishable by a fine of $500. 25 * Sec. 96. AS 04.16.057(b) is amended to read: 26 (b) A person who violates this section is guilty of a violation and is 27 punishable by a fine of $500 [SHALL BE PUNISHED AS PROVIDED IN 28 AS 12.55]. 29 * Sec. 97. AS 04.16.060(e) is amended to read: 30 (e) A person under the age of 21 who is seeking to enter and remain in a 31 licensed premises under AS 04.16.049(a)(2) [OR (3)] may not misrepresent the

01 person's age or having obtained the consent of the parent or guardian required by that 02 section. 03 * Sec. 98. AS 04.16.060 is amended by adding new subsections to read: 04 (g) A person who violates (a) of this section commits the offense of purchase 05 by a person under 21 years of age. 06 (h) A person who violates (b) or (c) of this section commits the offense of 07 delivery to a person under 21 years of age. 08 (i) Purchase by a person under 21 years of age is a violation and is punishable 09 by a fine of $500. 10 (j) Delivery to a person under 21 years of age is a violation and is punishable 11 by a fine of $500. 12 (k) For a person under 21 years of age who commits an offense under (g) of 13 this section, the violation must be charged and filed with the court as a separate case 14 and may not be combined or joined with any other minor offense or criminal charge in 15 one action at the time of filing. A court may reduce the fine to $50 for a person who 16 has not more than one previous violation or to $250 for a person who has two or more 17 previous violations if the person provides the court, not later than six months after a 18 judgment of conviction is entered, with proof of completion of 19 (1) an alcohol safety action program or a juvenile alcohol safety action 20 program developed, designated, or approved by the Department of Health and Social 21 Services under AS 47.37; or 22 (2) a community diversion panel. 23 * Sec. 99. AS 04.16.080 is amended to read: 24 Sec. 04.16.080. Consumption [SALES OR CONSUMPTION] at school 25 events. A person may not [SELL OR] consume alcoholic beverages during a school 26 event at the site of the event. 27 * Sec. 100. AS 04.16.080 is amended by adding new subsections to read: 28 (b) A person who consumes an alcoholic beverage during a school event at the 29 site of the event commits the offense of consuming at a school event. 30 (c) Consuming at a school event is a violation and is punishable by a fine of 31 $100.

01 * Sec. 101. AS 04.16.090(c) is amended to read: 02 (c) In [FOR THE PURPOSES OF] this section, "consideration" includes 03 [BUT IS NOT LIMITED TO] cover charge, the sale of food, ice, mixers, or other 04 liquids used with alcoholic beverage drinks, [OR] the furnishing of glassware or other 05 containers for use in the consumption of alcoholic beverages, other charges for 06 access to the licensed premises, or other services or products provided on the 07 licensed premises. 08 * Sec. 102. AS 04.16.090 is amended by adding new subsections to read: 09 (d) A person who knowingly violates this section commits the crime of 10 maintaining a bottle club. 11 (e) Maintaining a bottle club is a class A misdemeanor. 12 * Sec. 103. AS 04.16.110 is amended by adding new subsections to read: 13 (b) A person who knowingly sells an alcoholic beverage in violation of (a) of 14 this section commits the crime of sale of a prohibited alcoholic beverage. 15 (c) Sale of a prohibited alcoholic beverage is a class A misdemeanor. 16 * Sec. 104. AS 04.16.120 is amended by adding new subsections to read: 17 (d) A person who removes an alcoholic beverage from licensed premises in 18 violation of (a) of this section and a person who brings an alcoholic beverage onto 19 licensed premises in violation of (b) of this section commits the offense of removal or 20 introduction of alcoholic beverages. 21 (e) Notwithstanding (a) of this section, the holder of a beverage dispensary 22 license under AS 04.09.200, the holder of a beverage dispensary tourism license under 23 AS 04.09.340, or the holder's employee may transport alcoholic beverages across 24 unlicensed portions of a hotel, motel, or large resort if the 25 (1) licensee holds an endorsement under AS 04.09.430 or 04.09.440; 26 and 27 (2) licensee or employee is walking directly from one licensed area of 28 the premises to another licensed area. 29 (f) Removal or introduction of alcoholic beverages is a violation and is 30 punishable by a fine of $100. 31 * Sec. 105. AS 04.16.125 is repealed and reenacted to read:

01 Sec. 04.16.125. Alcoholic beverages transported or delivered by common 02 carrier. (a) A common carrier may not transport or deliver alcoholic beverages to a 03 person in the state unless the board has approved the common carrier under (b) of this 04 section. 05 (b) A common carrier may apply to the board, on a form prescribed by the 06 board, for approval to transport and deliver alcoholic beverages to persons in the state. 07 The board shall approve an application if the common carrier certifies that it will meet 08 the requirements under (c) and (d) of this section. 09 (c) A common carrier delivering alcoholic beverages to a person in the state 10 shall ensure that the package containing alcoholic beverages is delivered directly to a 11 person who 12 (1) presents identification and acceptable proof of age under 13 AS 04.21.050 showing that the person is 21 years of age or older; and 14 (2) provides a signature acknowledging that the person received the 15 package. 16 (d) A common carrier approved by the board under (b) of this section shall 17 make records of shipments of alcoholic beverages to persons in the state available for 18 inspection and audit by the board. The board may require periodic reporting of 19 approved common carriers on a form prescribed by the board. 20 (e) The board shall maintain, periodically review, and make available for 21 public inspection a list of approved common carriers for transport and delivery of 22 alcoholic beverages to persons in the state. 23 (f) The board may remove a previously approved common carrier from the list 24 if the common carrier transports or delivers alcoholic beverages in violation of (c) or 25 (d) of this section. 26 (g) A person may use a common carrier to transport and deliver alcoholic 27 beverages into an area that has restricted the sale of alcoholic beverages under 28 AS 04.11.491(a)(1), (2), or (3) or (b)(1) or (2) if 29 (1) the shipping container holding the alcoholic beverages is clearly 30 labeled as containing alcoholic beverages and requiring a signature of a person at least 31 21 years of age upon delivery; and

01 (2) an itemized invoice showing the quantity and purchase value of 02 distilled spirits, wine, and brewed beverages is attached to the outside of the shipping 03 container. 04 (h) The requirements under (g) of this section do not apply to 05 (1) a person transporting 06 (A) two liters or less of wine; 07 (B) one gallon or less of brewed beverages; or 08 (C) one liter or less of distilled spirits; or 09 (2) the transportation of alcoholic beverages for use on premises 10 allowed under AS 04.11.491(a)(2) or (3) or (b)(2) or for use under a permit allowed 11 under AS 04.11.491(a)(2). 12 (i) A common carrier that has not been approved by the board to transport and 13 deliver alcoholic beverages and that transports or delivers alcoholic beverages into or 14 within the state commits the offense of unapproved common carrier transport or 15 delivery of alcoholic beverages. 16 (j) Unapproved common carrier transport or delivery of alcoholic beverages is 17 a violation and is punishable by a fine of $500. 18 (k) An approved common carrier that violates a provision under (c) or (d) of 19 this section commits the offense of common carrier noncompliance for transport or 20 delivery of alcoholic beverages. 21 (l) Common carrier noncompliance for transport or delivery of alcoholic 22 beverages is a violation. 23 (m) A person who knowingly violates (g) of this section commits the crime of 24 unauthorized transportation of alcoholic beverages by common carrier into a local 25 option area. 26 (n) Unauthorized transportation of alcoholic beverages by common carrier 27 into a local option area is a class A misdemeanor. 28 (o) In this section, 29 (1) "common carrier" means a motor vehicle, watercraft, aircraft, or 30 railroad car available for public hire to transport freight or passengers; 31 (2) "transport" has the meaning given in AS 04.11.499.

01 * Sec. 106. AS 04.16.130 is amended by adding new subsections to read: 02 (c) A person who violates this section commits the offense of unauthorized 03 storage of alcoholic beverages. 04 (d) Unauthorized storage of alcoholic beverages is a violation. 05 * Sec. 107. AS 04.16.140 is amended by adding new subsections to read: 06 (b) A person who knowingly violates (a) of this section commits the offense 07 of sale or consumption of an alcoholic beverage in a warehouse. 08 (c) Sale or consumption of an alcoholic beverage in a warehouse is a violation. 09 * Sec. 108. AS 04.16.150 is amended by adding new subsections to read: 10 (b) Except as provided under AS 04.16.030(f) and 04.16.052(e), a licensee 11 who knowingly violates (a) of this section commits the offense of failure to ensure 12 compliance. 13 (c) Failure to ensure compliance is a violation. 14 * Sec. 109. AS 04.16.160 is amended by adding new subsections to read: 15 (c) A person who knowingly fails to comply with a restriction on purchasing 16 alcoholic beverages in violation of (a) of this section commits the crime of failure to 17 comply with a restriction on purchasing alcoholic beverages. 18 (d) Failure to comply with a restriction on purchasing alcoholic beverages is a 19 class A misdemeanor. 20 * Sec. 110. AS 04.16.170 is amended to read: 21 Sec. 04.16.170. Source of alcoholic beverages. (a) Alcoholic beverages for 22 consumption by the purchaser may only [NOT] be sold by [UNLESS OBTAINED 23 FROM] a person licensed under this title. 24 (b) A person transporting alcoholic beverages into the state may not sell those 25 alcoholic beverages to a person not licensed under this title, unless the alcoholic 26 beverages are used for religious, industrial, pharmaceutical, or medical purposes, or as 27 allowed under AS 04.09.360. 28 * Sec. 111. AS 04.16.170 is amended by adding new subsections to read: 29 (c) A licensee who knowingly violates (a) or (b) of this section commits the 30 crime of sale of alcoholic beverages from or to an unlicensed person. 31 (d) Sale of alcoholic beverages from or to an unlicensed person is a class A

01 misdemeanor. 02 * Sec. 112. AS 04.16.172 is amended to read: 03 Sec. 04.16.172. Restrictions on purchase and sale of alcoholic beverages. A 04 person licensed under AS 04.09.200, 04.09.210, 04.09.220, 04.09.230, 04.09.270, 05 04.09.280, 04.09.290, 04.09.300, 04.09.310, 04.09.320, 04.09.330, 04.09.340, or 06 04.09.350 [AS 04.11.090, 04.11.100, 04.11.110, OR 04.11.150] may not purchase, 07 sell, or offer for sale an alcoholic beverage unless the alcoholic beverage being 08 purchased, sold, or offered for sale was obtained from a person licensed under 09 (1) AS 04.09.100 or 04.09.110 [AS 04.11.160] as a primary source of 10 supply for the alcoholic beverage being purchased, sold, or offered for sale; 11 (2) AS 04.09.230 [AS 04.11.150] and the alcoholic beverage being 12 purchased, sold, or offered for sale was obtained from a person licensed under 13 AS 04.09.100 or 04.09.110 [AS 04.11.160] as a primary source of supply; or 14 (3) AS 04.09.020, 04.09.030, or 04.09.040 [AS 04.11.130, 04.11.140, 15 OR 04.11.170]. 16 * Sec. 113. AS 04.16.172 is amended by adding new subsections to read: 17 (b) A licensee who knowingly violates (a) of this section commits the crime of 18 licensee obtaining alcoholic beverages from an unlicensed seller. 19 (c) Licensee obtaining alcoholic beverages from an unlicensed seller is a class 20 A misdemeanor. 21 * Sec. 114. AS 04.16.175 is amended by adding new subsections to read: 22 (c) A person who knowingly furnishes an alcoholic beverage to a player in 23 violation of (a) of this section commits the crime of furnishing an alcoholic beverage 24 in aid of a gambling enterprise. 25 (d) Furnishing an alcoholic beverage in aid of a gambling enterprise is a class 26 A misdemeanor. 27 * Sec. 115. AS 04.16.180(b) is amended to read: 28 (b) A suspension or revocation of a license ordered by the board under 29 AS 04.11.370(a)(4) and (5) shall be as follows: 30 (1) on first conviction, the license of the premises involved may not be 31 revoked, but, except as provided in AS 04.16.030 and 04.16.052, may be suspended

01 for not more than 45 days; 02 (2) on second conviction, the license of the premises involved may not 03 be revoked, but may be suspended for not more than 90 days; 04 (3) on third conviction, the license of the premises involved may be 05 suspended or revoked. 06 * Sec. 116. AS 04.16.180(e) is amended to read: 07 (e) In this section, 08 (1) "conviction" includes a conviction of a violation, a 09 misdemeanor, and a felony; 10 (2) [THE TERMS] "second conviction" and "third conviction" include 11 only convictions for violations that occur within five years after [OF] the first 12 conviction; the [. THE] terms refer to the cumulative number of convictions of a 13 licensee of any combination of violations of the provisions of this title, regulations 14 adopted under this title, or ordinances adopted under AS 04.21.010; [. THE TERMS] 15 "second conviction" and "third conviction" include a conviction of the agent or 16 employee of a licensee of a violation of a law, regulation, or ordinance if the 17 conviction constitutes a ground for suspension or revocation under 18 AS 04.11.370(a)(5). 19 * Sec. 117. AS 04.16.180 is amended by adding new subsections to read: 20 (f) In addition to the criminal penalties specified in this title and AS 12.55, a 21 holder of a license under this title who is convicted of a crime or offense involving the 22 violation of a provision of this title or a regulation adopted under this title is subject to 23 suspension or revocation of the license under this section and other administrative 24 penalties imposed by the board. For purposes of administrative penalties under this 25 subsection, each violation is a separate offense. 26 (g) The holder of a license subject to suspension or revocation under (b)(2) or 27 (3) of this section may request a hearing to petition the board to reduce the 28 administrative penalty. The board may reduce the administrative penalty if the 29 licensee shows, by a preponderance of the evidence, that 30 (1) the licensee complied with the alcohol server education course 31 requirement of AS 04.21.025 and adopted and enforced a compliance program and a

01 disciplinary program for agents and employees of the licensee; 02 (2) the licensee has a pattern and practice of exercising the degree of 03 care required under AS 04.16.030; 04 (3) the licensee posted warning signs as required under AS 04.21.065; 05 and 06 (4) in the case of a conviction for a violation of AS 04.16.030 or 07 04.16.052, the agent or employee convicted under AS 04.16.030 or 04.16.052 08 completed an alcohol server education course under AS 04.21.025. 09 * Sec. 118. 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 04.09.060, 04.09.070, 04.09.145, 04.09.370, 04.09.380, or AS 04.11.010; 14 alcoholic beverages possessed, stocked, warehoused, or otherwise stored in violation 15 of AS 04.21.060; alcoholic beverages sold or offered for sale in violation of a local 16 option adopted under AS 04.11.491; alcoholic beverages transported into the state and 17 sold to persons not licensed under this title [CHAPTER] in violation of 18 AS 04.16.170(b); alcoholic beverages transported in violation of 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 04.09.060, 04.09.070, 04.09.145, 04.09.370, 22 04.09.380, or AS 04.11.010; materials and equipment used in the stocking, 23 warehousing, or storage of alcoholic beverages in violation of AS 04.21.060; materials 24 and equipment used in the sale or offering for sale of an alcoholic beverage in an area 25 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 04.09.060, 04.09.070, 04.09.145, 04.09.370, 04.09.380, or 31 AS 04.11.010;

01 (B) property stocked, warehoused, or otherwise stored in 02 violation of AS 04.21.060; 03 (C) alcoholic beverages imported into a municipality or 04 established village in violation of AS 04.11.499(a); 05 (4) alcoholic beverages found on licensed premises that do not bear 06 federal excise stamps if excise stamps are required under federal law; 07 (5) alcoholic beverages, materials, or equipment used in violation of 08 AS 04.16.175; 09 (6) money, securities, negotiable instruments, or other things of value 10 used in financial transactions or items of value purchased from the proceeds derived 11 from activity prohibited under AS 04.09.060, 04.09.070, 04.09.145, 04.09.370, 12 04.09.380, or AS 04.11.010 or in violation of a local option adopted under 13 AS 04.11.491; 14 (7) a firearm used in furtherance of a violation of this title. 15 * Sec. 119. AS 04.16.220(d) is amended to read: 16 (d) Property subject to forfeiture under (a) of this section may be forfeited 17 (1) upon conviction of a person for a violation of AS 04.09.060, 18 04.09.070, 04.09.145, 04.09.370, 04.09.380, AS 04.11.010, 04.11.499, AS 04.16.125, 19 AS 04.21.060, or AS 04.11.501 or an ordinance adopted under AS 04.11.501; or 20 (2) upon judgment by the superior court in a proceeding in rem that the 21 property was used in a manner subjecting it to forfeiture under (a) of this section. 22 * Sec. 120. AS 04.16.220(g) is amended to read: 23 (g) It is no defense in an in rem forfeiture proceeding brought under (d)(2) of 24 this section that a criminal proceeding is pending or has resulted in conviction or 25 acquittal of a person charged with violating AS 04.09.060, 04.09.070, 04.09.145, 26 04.09.370, 04.09.380, AS 04.11.010, 04.11.499, or AS 04.21.060. 27 * Sec. 121. AS 04.16.220(i) is amended to read: 28 (i) Upon conviction for a violation of AS 04.09.060, 04.09.070, 04.09.145, 29 04.09.370, 04.09.380, AS 04.11.010, or 04.11.499(a), if an aircraft, vehicle, or 30 watercraft is subject to forfeiture under (a) of this section, the court shall, subject to 31 remission to innocent parties under this section,

01 (1) order the forfeiture of an aircraft to the state; 02 (2) order the forfeiture of a vehicle or watercraft if 03 (A) the defendant has a prior felony conviction for a violation 04 of AS 11.41 or a similar law in another jurisdiction; 05 (B) the defendant is on felony probation or parole; 06 (C) the defendant has a prior conviction for violating 07 AS 04.11.010 or 04.11.499(a); or 08 (D) the quantity of alcohol transported in violation of this title 09 was twice the presumptive amounts in AS 04.11.010(c). 10 * Sec. 122. AS 04.21 is amended by adding a new section to read: 11 Sec. 04.21.012. Keg registration. (a) A person may not purchase a keg or 12 similar container holding four or more gallons of an alcoholic beverage unless the 13 person provides proof that the person is over 21 years of age and completes and signs 14 a registration form. The purchaser of a keg or similar container holding four or more 15 gallons of an alcoholic beverage may not remove or obliterate the temporary 16 identifying tag on the keg or container. 17 (b) A licensee or an agent or employee of a licensee who sells or offers for 18 sale a keg or similar container holding four or more gallons of an alcoholic beverage 19 shall require a purchaser to show acceptable proof of age under AS 04.21.050(b) and 20 sign the sworn statement on a registration form. The licensee shall complete the 21 registration form and affix a temporary tag with a unique identifier to the keg or 22 container before releasing the container to the purchaser. The licensee shall retain a 23 copy of the form for one year and make the form available for inspection. 24 (c) The board shall prescribe a registration form for use by licensees and 25 purchasers. The board may approve for use a registration form adopted by a local 26 governing body. A registration form must include 27 (1) the name of the seller; 28 (2) the name of the purchaser; 29 (3) a description of the proof of age provided by the buyer, including 30 the identification number, if any; 31 (4) the unique identifier on the temporary tag attached to the keg or

01 container under (b) of this section. 02 (d) A licensee or an agent or employee of a licensee who sells a keg or similar 03 container holding four or more gallons of an alcoholic beverage without completing a 04 registration form or affixing a temporary identification tag to the keg or container 05 commits the crime of selling alcoholic beverages in an unregistered keg. 06 (e) A person who is not licensed under this title or the employee or agent of a 07 person who is not licensed under this title who possesses a keg or similar container 08 holding four or more gallons of an alcoholic beverage without a temporary 09 identification tag commits the crime of possessing alcoholic beverages in an 10 unregistered keg. 11 (f) Selling alcoholic beverages in an unregistered keg is a violation. 12 (g) Possessing alcoholic beverages in an unregistered keg is a violation and is 13 punishable by a fine of $100. 14 * Sec. 123. AS 04.21.020(a) is amended to read: 15 (a) Except as provided under (b) and (d) of this section, a person who provides 16 alcoholic beverages to another person may not be held civilly liable for injuries 17 resulting from the intoxication of that person unless the person who provides the 18 alcoholic beverages holds a license authorized under AS 04.09.010 - 04.09.380 19 [AS 04.11.080 - 04.11.220] or is an agent or employee of [SUCH] a licensee and 20 (1) the alcoholic beverages are provided to a person under [THE AGE 21 OF] 21 years of age in violation of AS 04.16.051, unless the licensee, agent, or 22 employee secures in good faith from the person a signed statement, liquor 23 identification card, or driver's license meeting the requirements of AS 04.21.050(a) 24 and (b), that indicates that the person is 21 years of age or older; or 25 (2) the alcoholic beverages are provided to a drunken person in 26 violation of AS 04.16.030. 27 * Sec. 124. AS 04.21.020(b) is amended to read: 28 (b) A person who sells or barters an alcoholic beverage to another person in 29 violation of AS 04.09.060, 04.09.070, 04.09.145, 04.09.370, 04.09.380, or 30 AS 04.11.010 is strictly liable (1) to the recipient or another person for civil damages 31 if, while under the influence of the alcoholic beverage, the person receiving the

01 alcoholic beverage engages in conduct that results in civil damages and the recipient's 02 being under the influence of the alcoholic beverage substantially contributes to the 03 civil damages; and (2) for the cost to the state or a political subdivision of the state to 04 criminally prosecute a person who receives an alcoholic beverage from a person who 05 violates AS 04.11.010 if the prosecution results from the violation of AS 04.11.010 06 described in this subsection. 07 * Sec. 125. AS 04.21.025(a) is repealed and reenacted to read: 08 (a) Except as provided under (e) and (f) of this section, as a condition of 09 issuance or renewal of a license or conditional contractor's permit and selling alcoholic 10 beverages under a license or conditional contractor's permit, the board shall require a 11 licensee or permittee who sells or serves alcoholic beverages and a licensee's or 12 permittee's agents and employees who sell or serve alcoholic beverages or check the 13 identification of a patron to complete an alcohol server education course approved by 14 the board. 15 * Sec. 126. AS 04.21.025(b) is amended to read: 16 (b) The subjects that are included in an approved alcohol server education 17 course shall be determined under regulations adopted by the board. In approving 18 alcohol server education courses, the board shall consider the needs of both urban and 19 rural licensees regarding access to an approved alcohol server education course. A 20 licensee, permittee, agent, or employee who sells or serves alcoholic beverages shall 21 keep the card described in (c) of this section or other proof acceptable to the board of 22 successful completion of an approved alcohol server education course on the licensed 23 premises during working hours. 24 * Sec. 127. AS 04.21.025(c) is amended to read: 25 (c) A licensee, permittee, agent, or employee shall complete the course 26 required under (a) of this section and pass a written test demonstrating an 27 understanding of the course subjects not more than 30 days after being licensed, 28 permitted, or employed. The course provider shall issue a card to each individual who 29 completes the course and passes the written test. A card issued under this subsection is 30 valid for three years from the date of issue. A licensee, permittee, agent, or employee 31 may renew a card issued under this section; to renew the card, the licensee, permittee,

01 agent, or employee must pass a written test demonstrating an understanding of the 02 course subjects. Notwithstanding the 30-day period for completing the course and 03 passing the written test under this subsection, a person may not sell or serve 04 alcoholic beverages or check the identification of a patron at a permitted event 05 under AS 04.09.600 - 04.09.690 unless the person possesses a valid card issued 06 before the event. 07 * Sec. 128. AS 04.21.025 is amended by adding new subsections to read: 08 (f) This section does not apply to the following licenses: 09 (1) brewery manufacturer license under AS 04.09.020, unless the 10 licensee holds a manufacturer sampling endorsement; 11 (2) winery manufacturer license under AS 04.09.030, unless the 12 licensee holds a manufacturer sampling endorsement; 13 (3) distillery manufacturer license under AS 04.09.040, unless the 14 licensee holds a manufacturer sampling endorsement; 15 (4) general wholesale license under AS 04.09.100; 16 (5) limited wholesale brewed beverage and wine license under 17 AS 04.09.110; 18 (6) winery direct shipment license under AS 04.09.360. 19 (g) A person who violates (a) - (c) or (e) of this section commits the offense of 20 failure to comply with alcohol server education requirements. 21 (h) Failure to comply with alcohol server education requirements is a 22 violation. 23 * Sec. 129. AS 04.21.050(a) is amended to read: 24 (a) If a licensee or an agent or employee of the licensee questions or has 25 reason to question whether a person entering licensed premises, or ordering, 26 purchasing, attempting to purchase, or otherwise procuring or attempting to procure 27 alcoholic beverages, 28 (1) has attained the age of 21 years or is entering without consent in 29 violation of AS 04.16.049(a)(2) [AS 04.16.049(a)(3)] and has not attained the age of 30 16 years, that licensee, agent, or employee shall require the person to furnish proof of 31 age acceptable under (b) of this section or proof of consent in a form determined by

01 the board; if the person questioned does not furnish proof of age acceptable under (b) 02 of this section, or if a licensee, agent, or employee questions or has reason to question 03 the validity of the proof of age furnished, the licensee, employee, or agent shall require 04 the person to sign a statement that the person is over the age of 21 or 16 years, as 05 appropriate; this statement shall be made on a form prepared by and furnished to the 06 licensee by the board; 07 (2) is restricted from purchasing alcoholic beverages under 08 AS 04.16.160, the licensee, agent, or employee may, but has no duty or obligation to, 09 require the person to furnish proof acceptable under (b) of this section that the person 10 is not restricted from purchasing alcoholic beverages or require the person to sign a 11 statement that the person is not restricted from purchasing alcoholic beverages under 12 AS 04.16.160; this statement shall be made on a form prepared by and furnished to the 13 licensee by the board. 14 * Sec. 130. AS 04.21.060 is amended by adding new subsections to read: 15 (b) A licensee who stores alcoholic beverages elsewhere than on the licensed 16 premises and who fails to comply with (a)(1) - (3) of this section commits the offense 17 of unauthorized warehousing. 18 (c) Unauthorized warehousing is a violation. 19 * Sec. 131. AS 04.21.065(a) is repealed and reenacted 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 three separate warning signs as described in (b) of 22 this section: 23 (1) brewery manufacturer license under AS 04.09.020 with a 24 manufacturer sampling endorsement under AS 04.09.410; 25 (2) winery manufacturer license under AS 04.09.030 with a 26 manufacturer sampling endorsement under AS 04.09.410; 27 (3) distillery manufacturer license under AS 04.09.040 with a 28 manufacturer sampling endorsement under AS 04.09.410; 29 (4) beverage dispensary license under AS 04.09.200; 30 (5) restaurant or eating place license under AS 04.09.210; 31 (6) club license under AS 04.09.220;

01 (7) package store license under AS 04.09.230; 02 (8) pub license under AS 04.09.240; 03 (9) theater license under AS 04.09.250; 04 (10) common carrier dispensary license under AS 04.09.260; 05 (11) sporting event license under AS 04.09.270; 06 (12) outdoor recreation lodge license under AS 04.09.280; 07 (13) golf course license under AS 04.09.290; 08 (14) destination resort license under AS 04.09.300; 09 (15) brewery retail license under AS 04.09.310; 10 (16) winery retail license under AS 04.09.320; 11 (17) distillery retail license under AS 04.09.330; 12 (18) beverage dispensary tourism license under AS 04.09.340; 13 (19) seasonal restaurant or eating place tourism license under 14 AS 04.09.350; 15 (20) beverage dispensary caterer's permit under AS 04.09.610; 16 (21) restaurant caterer's dining permit under AS 04.09.620; 17 (22) club caterer's permit under AS 04.09.630; 18 (23) art exhibit event permit under AS 04.09.640; 19 (24) nonprofit organization event permit under AS 04.09.650; 20 (25) tasting event permit under AS 04.09.670; 21 (26) conditional contractor's permit under AS 04.09.690; 22 (27) another license or permit issued by the board authorizing 23 consumption of alcoholic beverages. 24 * Sec. 132. AS 04.21 is amended by adding new sections to read: 25 Sec. 04.21.072. Fines and other criminal penalties. (a) A violation under this 26 title, unless otherwise specified in the provision of this title defining the offense, is 27 punishable by a fine of $250. 28 (b) A misdemeanor or felony under this title, unless otherwise specified in the 29 provision of this title defining the offense, is punishable as provided in AS 12.55. 30 Sec. 04.21.074. Bail forfeiture schedule. The supreme court shall establish by 31 rule or order a schedule of bail amounts for violations under this title that allow the

01 disposition of a citation without a court appearance. The bail amount may not exceed 02 the maximum penalty prescribed by law for the violation. 03 Sec. 04.21.076. Suspension of fine or sentence. The court may not suspend a 04 fine for an offense other than a misdemeanor or felony under this title, or suspend 05 imposition or execution of sentence for an offense other than a misdemeanor or felony 06 under this title, unless otherwise expressly provided in this title. 07 * Sec. 133. AS 04.21.078 is amended to read: 08 Sec. 04.21.078. Court records of persons under 21 years of age. The Alaska 09 Court System may not publish on a publicly available website the court records of a 10 violation of AS 04.16.049, [OR] 04.16.050, 04.16.060(g), or a similar ordinance of a 11 municipality, if the violation was charged separately and was not joined with any other 12 minor offense or criminal charge at the time of filing. 13 * Sec. 134. AS 04.21.080(b)(6) is amended to read: 14 (6) "designated premises" means any or all designated portions of a 15 building or structure, rooms or enclosures in the building or structure, or real estate 16 leased, used, controlled, or operated by a licensee or permittee for the purpose for 17 which the license or permit is issued by the board at the location of the site for which 18 the license or permit is issued; 19 * Sec. 135. AS 04.21.080(b)(15) is amended to read: 20 (15) "licensed premises" means any or all designated portions of a 21 building or structure, rooms or enclosures in the building or structure, or real estate 22 leased, used, controlled, or operated by a licensee in the conduct of business for which 23 the licensee is licensed by the board at the specific address for which the license or an 24 endorsement to the license is issued; 25 * Sec. 136. AS 04.21.080(b) is amended by adding new paragraphs to read: 26 (21) "bona fide restaurant" means an establishment or a portion of an 27 establishment where, during all times alcoholic beverages are served or consumed, 28 (A) the patron's principal activity is consumption of food; and 29 (B) a variety of types of food items appropriate for meals is 30 prepared on site and available for sale as shown on a menu provided to patrons 31 and filed with the board;

01 (22) "brewed beverage" means an alcoholic beverage made by 02 fermenting cereal grains, including beer and malt beverages, sake, and kombucha; 03 (23) "calendar year" means the period beginning January 1 and ending 04 December 31; 05 (24) "cider" means a type of wine made primarily from fermented 06 apples, apple juice, or concentrate; 07 (25) "distilled spirit" means an alcoholic beverage that is first 08 fermented and then distilled; 09 (26) "golf course" means a course that is open to the public, having at 10 least nine holes and covering at least 2,950 yards; 11 (27) "kombucha" means a brewed beverage made from fermented tea 12 and containing at least one-half percent alcohol by volume; 13 (28) "mead" means a type of wine made primarily from honey; 14 (29) "sake" means a type of brewed beverage made primarily from 15 fermented rice; 16 (30) "wine" means an alcoholic beverage made from fermented grapes 17 or other fruit or honey. 18 * Sec. 137. AS 05.15.690(48) is amended to read: 19 (48) "vendor" means a business whose primary activity is not regulated 20 by this chapter but that 21 (A) is engaged in the sale of pull-tabs on behalf of a permittee; 22 (B) holds a business license under AS 43.70; and 23 (C) is an establishment holding a 24 (i) beverage dispensary license under AS 04.09.200 25 without a restaurant endorsement issued under AS 04.09.450 26 [AS 04.11.090 THAT HAS NOT BEEN DESIGNATED BY THE 27 ALCOHOLIC BEVERAGE CONTROL BOARD UNDER 28 AS 04.16.049(a)(2) - (3)], has not been exempted by the Department of 29 Labor and Workforce Development under AS 04.16.049(c) and 30 AS 23.10.355, and if the establishment is a hotel, motel, resort, or 31 similar business that caters to the traveling public as a substantial part

01 of its business, does not allow the sale of pull-tabs in a dining room, 02 banquet room, guest room, or other public areas other than a room in 03 which there is regularly maintained a fixed counter or service bar that 04 has plumbing connections to permanent plumbing at which 05 alcoholic beverages are sold or served to members of the public for 06 consumption; 07 (ii) package store license under AS 04.09.230 08 [AS 04.11.150]; 09 * Sec. 138. AS 09.65.315(b) is amended to read: 10 (b) A person licensed under AS 04.09.010 - 04.09.380 [AS 04.11.080 - 11 04.11.255], or an agent or employee of the person, is not liable for damages resulting 12 from a motor vehicle accident described under (a) of this section. A person or entity 13 that participates in making arrangements for transportation of a vehicle under (a) of 14 this section is not liable for damages resulting from a motor vehicle accident described 15 in (a) of this section. 16 * Sec. 139. AS 11.76.100(b) is amended to read: 17 (b) Notwithstanding the provisions of (a) of this section, a person who 18 maintains a vending machine is not in violation of (a)(3) of this section if the vending 19 machine is located 20 (1) on premises licensed as a beverage dispensary under AS 04.09.200 21 [AS 04.11.090], licensed as a club under AS 04.09.220 [AS 04.11.110], or licensed as 22 a package store under AS 04.09.230 [AS 04.11.150]; and 23 (A) as far as practicable from the primary entrance; and 24 (B) in a place that is directly and continually supervised by a 25 person employed on the licensed premises during the hours the vending 26 machine is accessible to the public; or 27 (2) in an employee break room or other controlled area of a private 28 work place that is not generally considered a public place and the room or area 29 contains a posted warning sign at least 11 inches by 14 inches indicating that 30 possession of tobacco by a person under 19 years of age is prohibited under 31 AS 11.76.105.

01 * Sec. 140. AS 11.76.107(a) is amended to read: 02 (a) A person commits the offense of failure to supervise a cigarette vending 03 machine if the person owns premises licensed as a beverage dispensary under 04 AS 04.09.200, [AS 04.11.090 OR] licensed as a club under AS 04.09.220, 05 [AS 04.11.110] or licensed as a package store under AS 04.09.230 [AS 04.11.150] and 06 with criminal negligence fails to have an employee supervise a vending machine on 07 those premises that dispenses cigarettes, cigars, tobacco, or products containing 08 tobacco as required by AS 11.76.100(b)(1)(B). 09 * Sec. 141. AS 12.62.400(a) is amended to read: 10 (a) To obtain a national criminal history record check for determining a 11 person's qualifications for a license, permit, registration, employment, or position, a 12 person shall submit the person's fingerprints to the department with the fee established 13 by AS 12.62.160. The department may submit the fingerprints to the Federal Bureau 14 of Investigation to obtain a national criminal history record check of the person for the 15 purpose of evaluating a person's qualifications for 16 (1) a license or conditional contractor's permit to manufacture, sell, 17 offer for sale, possess for sale or barter, traffic in, or barter an alcoholic beverage 18 under AS 04.09 [AS 04.11]; 19 (2) licensure as a mortgage lender, a mortgage broker, or a mortgage 20 loan originator under AS 06.60; 21 (3) admission to the Alaska Bar Association under AS 08.08; 22 (4) licensure as a collection agency operator under AS 08.24; 23 (5) a certificate of fitness to handle explosives under AS 08.52; 24 (6) licensure as a massage therapist under AS 08.61; 25 (7) licensure to practice nursing or certification as a nurse aide under 26 AS 08.68; 27 (8) certification as a real estate appraiser under AS 08.87; 28 (9) a position involving supervisory or disciplinary power over a minor 29 or dependent adult for which criminal justice information may be released under 30 AS 12.62.160(b)(9); 31 (10) a teacher certificate under AS 14.20;

01 (11) a registration or license to operate a marijuana establishment 02 under AS 17.38; 03 (12) licensure as a security guard under AS 18.65.400 - 18.65.490; 04 (13) a concealed handgun permit under AS 18.65.700 - 18.65.790; 05 (14) licensure as an insurance producer, managing general agent, 06 reinsurance intermediary broker, reinsurance intermediary manager, surplus lines 07 broker, or independent adjuster under AS 21.27; 08 (15) serving and executing process issued by a court by a person 09 designated under AS 22.20.130; 10 (16) a school bus driver license under AS 28.15.046; 11 (17) licensure as an operator or an instructor for a commercial driver 12 training school under AS 28.17; 13 (18) registration as a broker-dealer, agent, investment adviser 14 representative, or state investment adviser under AS 45.55.030 - 45.55.060. 15 * Sec. 142. AS 18.56.230(b) is amended to read: 16 (b) The corporation may not authorize the commercial use of space in a multi- 17 unit residential housing development owned or financed by the corporation for 18 (1) a business that offers adult entertainment; 19 (2) the sale of alcoholic beverages, unless the sale [IS IN A 20 RESTAURANT OR EATING PLACE LICENSED UNDER AS 04.11.100 OR] is in 21 premises covered by a restaurant endorsement issued [DESIGNATED] by the 22 Alcoholic Beverage Control Board under AS 04.09.450 [AS A RESTAURANT 23 UNDER AS 04.16.049]; 24 (3) substance abuse treatment; or 25 (4) a business that primarily sells, transfers, or stores cigarettes or 26 tobacco-related products. 27 * Sec. 143. AS 18.65.085(c) is amended to read: 28 (c) The Department of Public Safety may establish and administer a reward 29 program, and provide grants to municipalities, established villages, and, at the request 30 of a municipality or established village, to a nonprofit association that administers a 31 village public safety officer program, for reward programs leading to the apprehension

01 and conviction of persons who violate AS 04.09.060, 04.09.070, 04.09.145, 04.09.370, 02 04.09.380, or AS 04.11.010 by selling, importing, or possessing alcoholic beverages 03 in violation of a local option adopted by a municipality or established village under 04 AS 04.11.491. 05 * Sec. 144. AS 18.80.230(b) is amended to read: 06 (b) Notwithstanding (a) of this section, a physical fitness facility may limit 07 public accommodation to only males or only females to protect the privacy interests of 08 its users. Public accommodation may be limited under this subsection only to those 09 rooms in the facility that are primarily used for weight loss, aerobic, and other 10 exercises, or for resistance weight training. Public accommodation may not be limited 11 under this subsection to rooms in the facility primarily used for other purposes, 12 including conference rooms, dining rooms, and premises licensed under AS 04.09 13 [AS 04.11]. This subsection does not apply to swimming pools or golf courses. 14 * Sec. 145. AS 39.50.200(b) is amended by adding a new paragraph to read: 15 (65) Marijuana Control Board (AS 17.38.080). 16 * Sec. 146. AS 43.60 is amended by adding a new section to read: 17 Sec. 43.60.060. Winery direct shipment tax; statement; audit. A holder of a 18 winery direct shipment license under AS 04.09.360 who sells wine in the state or who 19 consigns shipments of wine into the state shall 20 (1) be subject to the taxes provided under AS 43.60.010(a); 21 (2) provide monthly statements and other information required under 22 AS 43.60.020 with the remittance of a tax collected under this section; 23 (3) allow the Department of Revenue to perform an audit of the 24 holder's records upon request; and 25 (4) consent to the jurisdiction of a state court concerning enforcement 26 of this section relating to the collection of taxes and other money owed by the holder, 27 including interest and penalties. 28 * Sec. 147. AS 43.70.105(a) is amended to read: 29 (a) This chapter does not apply to 30 (1) a fisheries business; 31 (2) the sale of liquor under a license issued under AS 04.09

01 [AS 04.11]; 02 (3) an insurance business; 03 (4) a mining business; 04 (5) supplying services as an employee; 05 (6) furnishing goods or services by a person who does not represent to 06 be regularly engaged in furnishing goods or services; 07 (7) the activities of an investment club; in this paragraph, 08 (A) "investment club" means a group of individuals, 09 incorporated or otherwise organized, that engages primarily in investing in 10 securities, that does not sell investment services to another person, that does 11 not advertise, and the primary purpose of which is educational; 12 (B) "security" has the meaning given in AS 45.55.990. 13 * Sec. 148. AS 45.45.590(1) is amended to read: 14 (1) "business proprietor" means a person who owns a place of business 15 in which the public may assemble and in which copyrighted musical works may be 16 performed, broadcasted, or otherwise transmitted; in this paragraph, "place of 17 business" includes a store, professional office, sports facility, entertainment facility, 18 restaurant, hotel, or [AN] alcoholic beverage establishment licensed under AS 04.09 19 [AS 04.11]; 20 * Sec. 149. The uncodified law of the State of Alaska is amended to read: 21 DIRECT COURT RULE AMENDMENT. Rule 17, Alaska Rules of Minor 22 Offense Procedure, is amended by adding a new subsection to read: 23 (g) A prosecutor may not join a minor offense for a violation of AS 04.16.049, 24 [OR] 04.16.050, or 04.16.060(g) with a related criminal offense. 25 * Sec. 150. AS 04.11.070, 04.11.080, 04.11.090, 04.11.100, 04.11.110, 04.11.115, 26 04.11.120, 04.11.130, 04.11.135, 04.11.140, 04.11.150, 04.11.160, 04.11.170, 04.11.180, 27 04.11.200, 04.11.210, 04.11.220, 04.11.225, 04.11.230, 04.11.240, 04.11.250, 04.11.255, 28 04.11.400(d), 04.11.400(h), 04.11.400(j); AS 04.16.070, 04.16.100, 04.16.180(a), 29 04.16.180(d), 04.16.210; and AS 04.21.080(b)(3) are repealed. 30 * Sec. 151. AS 04.11.400(e) and 04.11.400(g) are repealed. 31 * Sec. 152. AS 04.09.270(f) and 04.09.320(i) are repealed January 1, 2028.

01 * Sec. 153. Section 156 of this Act is repealed January 1, 2020. 02 * Sec. 154. The uncodified law of the State of Alaska is amended by adding a new section 03 to read: 04 APPLICABILITY. (a) The provisions of secs. 9 - 19, 28, 73 - 76, 78 - 122, 127 - 130, 05 132, 139, and 140 of this Act apply to offenses committed on or after the effective date of 06 each of those respective sections. 07 (b) References to previous convictions in AS 04.11.270(a), as amended by sec. 22 of 08 this Act, AS 04.16.180(b), as amended by sec. 115 of this Act, AS 04.16.180(e), as amended 09 by sec. 116 of this Act, and AS 04.16.220(i), as amended by sec. 121 of this Act, apply to 10 convictions occurring before, on, or after the effective date of each of those respective 11 sections. 12 * Sec. 155. The uncodified law of the State of Alaska is amended by adding a new section 13 to read: 14 TRANSITION: CONVERSION OF APPLICATIONS AND LICENSES. (a) 15 Notwithstanding the population limits under AS 04.11.400(a) or (b), the Alcoholic Beverage 16 Control Board shall convert, within 90 days after the effective date of this section, 17 (1) a license issued or renewed as necessary for the public convenience under 18 former AS 04.11.400(e) or 04.11.400(g), repealed by sec. 151 of this Act, into a restaurant or 19 eating place license under AS 04.09.210, added by sec. 9 of this Act, if the license was issued 20 as a restaurant or eating place license, or into a beverage dispensary license under 21 AS 04.09.200, added by sec. 9 of this Act, if the license was issued as a beverage dispensary 22 license under former AS 04.11.400(j); 23 (2) an application submitted to the board that meets all of the requirements 24 under former AS 04.11.400(e) or 04.11.400(g), repealed by sec. 151 of this Act, into an 25 application for a restaurant or eating place license under AS 04.09.210, added by sec. 9 of this 26 Act, if the license was issued as a restaurant or eating place license; 27 (3) a license issued or renewed as a bottling works license under former 28 AS 04.11.120, repealed by sec. 150 of this Act, into a brewery manufacturer license under 29 AS 04.09.020, added by sec. 9 of this Act, or into a winery manufacturer license under 30 AS 04.09.030, added by sec. 9 of this Act; 31 (4) a license issued or renewed as a brewpub license under former

01 AS 04.11.135, repealed by sec. 150 of this Act, into a brewery manufacturer license under 02 AS 04.09.020, added by sec. 9 of this Act; 03 (5) a license issued or renewed as a beverage dispensary license or restaurant 04 or eating place license for a premises that is a theater under former AS 04.11.090 or 05 AS 04.11.100, repealed by sec. 150 of this Act, into a theater license under AS 04.09.250, 06 added by sec. 9 of this Act; 07 (6) a license issued or renewed as a wholesale license under former 08 AS 04.11.160(a), repealed by sec. 150 of this Act, into a general wholesale license under 09 AS 04.09.100, added by sec. 9 of this Act; 10 (7) a license issued or renewed as a wholesale license under former 11 AS 04.11.160(b), repealed by sec. 150 of this Act, into a limited wholesale brewed beverage 12 and wine license under AS 04.09.110, added by sec. 9 of this Act; 13 (8) a license issued or renewed as a beverage dispensary license under former 14 AS 04.11.400(d), repealed by sec. 150 of this Act, into a beverage dispensary tourism license 15 under AS 04.09.340, added by sec. 9 of this Act; 16 (9) a duplicate license issued or renewed as a duplicate beverage dispensary 17 license under former AS 04.11.090(e), repealed by sec. 150 of this Act, into a multiple fixed 18 counter endorsement under AS 04.09.420, added by sec. 9 of this Act. 19 (b) Notwithstanding the population limits under AS 04.11.400(a) or (b), the Alcoholic 20 Beverage Control Board may 21 (1) convert a license issued or renewed as a brewery license under former 22 AS 04.11.130, repealed by sec. 150 of this Act, into a brewery manufacturer license under 23 AS 04.09.020, added by sec. 9 of this Act, and a brewery retail license under AS 04.09.310, 24 added by sec. 9 of this Act, upon application by the licensee; 25 (2) convert an application submitted to the board that meets all of the 26 requirements under former AS 04.11.130, repealed by sec. 150 of this Act, into an application 27 for a brewery manufacturer license under AS 04.09.020, added by sec. 9 of this Act, and a 28 brewery retail license under AS 04.09.310, added by sec. 9 of this Act; 29 (3) convert a license issued or renewed as a winery license under former 30 AS 04.11.140, repealed by sec. 150 of this Act, into a winery manufacturer license under 31 AS 04.09.030, added by sec. 9 of this Act, and a winery retail license under AS 04.09.320,

01 added by sec. 9 of this Act, upon application by the licensee; 02 (4) convert an application submitted to the board that meets all of the 03 requirements under former AS 04.11.140, repealed by sec. 150 of this Act, into an application 04 for a winery manufacturer license under AS 04.09.030, added by sec. 9 of this Act, and a 05 winery retail license under AS 04.09.320, added by sec. 9 of this Act; 06 (5) convert a license issued or renewed as a distillery license under former 07 AS 04.11.170, repealed by sec. 150 of this Act, into a distillery manufacturer license under 08 AS 04.09.040, added by sec. 9 of this Act, and a distillery retail license under AS 04.09.330, 09 added by sec. 9 of this Act, upon application by the licensee; 10 (6) convert an application submitted to the board that meets all of the 11 requirements under former AS 04.11.170, repealed by sec. 150 of this Act, into an application 12 for a distillery manufacturer license under AS 04.09.040, added by sec. 9 of this Act, and a 13 distillery retail license under AS 04.09.330, added by sec. 9 of this Act; 14 (7) convert a license issued or renewed as a recreational site license under 15 former AS 04.11.210, repealed by sec. 150 of this Act, into a sporting event license under 16 AS 04.09.270, added by sec. 9 of this Act, upon application by the licensee; 17 (8) establish an application form and procedure for conversion applications 18 under this section. 19 * Sec. 156. The uncodified law of the State of Alaska is amended by adding a new section 20 to read: 21 TRANSITION: SEASONAL RESTAURANT OR EATING PLACE LICENSE. (a) 22 Notwithstanding AS 04.11.080, the Alcoholic Beverage Control Board may issue a seasonal 23 restaurant or eating place tourism license to a person who files an application under 24 AS 04.11.260. 25 (b) A seasonal restaurant or eating place license authorizes a restaurant or eating place 26 to sell brewed beverages and wine for consumption only on the licensed premises for a period 27 not to exceed six months in each calendar year. 28 (c) The biennial seasonal restaurant or eating place tourism license fee is $1,250. 29 (d) The board may issue a license under this section only if 30 (1) the board determines that the licensed premises is a bona fide restaurant or 31 eating place; and

01 (2) the sale and service of food and alcoholic beverages and any other 02 business conducted on the licensed premises of the restaurant or eating place is under the sole 03 control of the licensee. 04 (e) The board may issue a license under this section only in a municipality or 05 established village that 06 (1) has a population of 20,000 or less; and 07 (2) includes a community that receives more than 4,000 visitors a year, as 08 determined by the Department of Commerce, Community, and Economic Development. 09 (f) The board may issue a license or approve an application for the transfer of 10 ownership of a license under this section if it appears that issuance or transfer will encourage 11 the tourism trade. 12 (g) The holder of a seasonal restaurant or eating place tourism license shall ensure 13 that gross receipts from the sale of food for consumption on the licensed premises are not less 14 than the total amount of the gross receipts from the sale of alcoholic beverages for 15 consumption on the licensed premises in each calendar year. 16 (h) The board shall adopt a regulation establishing a formula to limit the number of 17 seasonal restaurant or eating place tourism licenses. 18 (i) The holder of a seasonal restaurant or eating place tourism license may provide 19 entertainment on or adjacent to the licensed premises only between the hours of 3:00 p.m. and 20 11:00 p.m. unless additional hours are approved by the director upon the written request of the 21 licensee for a specific occasion. The director may not grant approval for additional hours of 22 entertainment on or adjacent to the licensed premises of an individual licensee more than 23 three times in a calendar year. In this subsection, "entertainment" includes dancing, karaoke, 24 live performances, or similar activities, but does not include recorded or broadcast 25 performances without live participation. 26 (j) A license issued under this section may be renewed under AS 04.09.350, added by 27 sec. 9 of this Act, on or after the effective date of sec. 9 of this Act. 28 * Sec. 157. The uncodified law of the State of Alaska is amended by adding a new section 29 to read: 30 TRANSITION: REGULATIONS. The Department of Commerce, Community, and 31 Economic Development and the Alcoholic Beverage Control Board may adopt regulations

01 necessary to implement the changes made by this Act. The regulations take effect under 02 AS 44.62 (Administrative Procedure Act), but not before the effective date of the law 03 implemented by the regulation. 04 * Sec. 158. Sections 30, 34, 36, 42, 46, 49, 98, 133, 151, 156, and 157 of this Act take effect 05 immediately under AS 01.10.070(c). 06 * Sec. 159. Except as provided in sec. 158 of this Act, this Act takes effect January 1, 2020.