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SB 16: "An Act relating to certain alcoholic beverage licenses and permits; and relating to the bond requirement for certain alcoholic beverage license holders."

00                             SENATE BILL NO. 16                                                                          
01 "An Act relating to certain alcoholic beverage licenses and permits; and relating to the                                
02 bond requirement for certain alcoholic beverage license holders."                                                       
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. AS 04.11.080 is amended to read:                                                                      
05            Sec. 04.11.080. Types of licenses and permits. Licenses and permits issued                                 
06       under this title are as follows:                                                                                  
07                 (1)  beverage dispensary license;                                                                       
08                 (2)  duplicate beverage dispensary license for additional rooms;                                        
09                 (3)  restaurant or eating place license;                                                                
10                 (4)  club license;                                                                                      
11                 (5)  bottling works license;                                                                            
12                 (6)  brewery license;                                                                                   
13                 (7)  package store license;                                                                             
14                 (8)  general wholesale license;                                                                         
01                 (9)  wholesale malt beverage and wine license;                                                          
02                 (10)  distillery license;                                                                               
03                 (11)  common carrier dispensary license;                                                                
04                 (12)  retail stock sale license;                                                                        
05                 (13)  recreational site license;                                                                        
06                 (14)  pub license;                                                                                      
07                 (15)  winery license;                                                                                   
08                 (16)  caterer's permit;                                                                                 
09                 (17)  special events permit;                                                                            
10                 (18)  conditional contractor's permit;                                                                  
11                 (19)  brewpub license;                                                                                  
12                 (20)  golf course license;                                                                              
13                 (21)  outdoor recreation lodge license;                                                                 
14                 (22)  destination resort license;                                                                   
15                 (23)  performing arts theater license;                                                              
16                 (24)  fair license;                                                                                 
17                 (25)  concert permit.                                                                               
18    * Sec. 2. AS 04.11 is amended by adding a new section to read:                                                     
19 Sec. 04.11.205. Performing arts theater license. (a) A performing arts theater                                        
20 license authorizes the holder of a beverage dispensary license to sell alcoholic                                        
21 beverages and the holder of a restaurant or eating place license to sell beer and wine                                  
22 at multiple noncontiguous locations at a specified performing arts theater site for                                     
23       consumption on the licensed premises.                                                                             
24            (b)  The biennial performing arts theater license fee is $1,250.                                             
25 (c)  The holder of a performing arts theater license may not sell or serve                                              
26 alcoholic beverages as provided under the license during an event that is expected to                                   
27       attract an audience with attendees under 21 years of age.                                                         
28 (d)  The holder of a performing arts theater license may sell or serve alcoholic                                        
29       beverages as provided under the license only                                                                      
30                 (1)  in designated areas on the licensed premises; and                                                  
31 (2)  for a period beginning two hours before the event until one hour                                                   
01       after the event.                                                                                                  
02            (e)  The holder of a performing arts theater license shall post the license                                  
03       conspicuously in the performing arts theater during times when alcoholic beverages                                
04       are sold.                                                                                                         
05            (f)  The board may not approve an application for the transfer of a performing                               
06       arts theater license to another person or location.                                                               
07 (g)  An application for a performing arts theater license must clearly identify                                         
08 designated areas for the sale and consumption of alcoholic beverages, which may                                         
09 include the audience viewing area at the performing arts theater site. The board may                                    
10 approve an application for a performing arts theater license only if the application is                                 
11 approved by the local governing body of the municipality in which the performing arts                                   
12 theater site is located or, for a performing arts theater site outside a municipality,                                  
13 approved by the law enforcement agency that has jurisdiction over the performing arts                                   
14       theater site.                                                                                                     
15 (h)  The board may deny an application for renewal of a performing arts                                                 
16 theater license if the license was not used for at least one event during each calendar                                 
17       year of the license period.                                                                                       
18 (i)  In this section, "performing arts theater" means a location where events are                                       
19 presented by live performers on a stage, such as plays, operas, orchestra concerts,                                     
20       readings, and similar activities as determined by the board.                                                      
21    * Sec. 3. AS 04.11 is amended by adding a new section to read:                                                     
22 Sec. 04.11.215. Fair license. (a) A fair license authorizes the holder to sell                                        
23 beer and wine at multiple noncontiguous locations at regional fairs and other events                                    
24       held on a fairgrounds for consumption at designated areas of the licensed premises.                               
25            (b)  The biennial fair license fee is $800.                                                                  
26 (c)  The board may issue a fair license only to a nonprofit organization that is                                        
27 incorporated under AS 10.20 and has been active for a period of at least 10 years                                       
28       before filing an application for a fair license.                                                                  
29 (d)  In this section, "regional fair" means an annual gathering of residents of all                                     
30 or a portion of the state that offers competitive exhibitions of livestock and agricultural                             
31 crops, carnival amusement rides and games, displays of arts and crafts, or outdoor                                      
01       entertainment.                                                                                                    
02    * Sec. 4. AS 04.11 is amended by adding a new section to read:                                                     
03 Sec. 04.11.235. Concert permit. (a) A concert permit authorizes the holder of                                         
04 a recreational site license to sell or dispense beer and wine for consumption on the                                    
05 licensed premises of the recreational site during a period beginning one hour before                                    
06 and concluding at the end of a concert or similar entertainment event with a performer                                  
07       and an audience.                                                                                                  
08            (b)  A concert permit may not be transferred or renewed.                                                     
09            (c)  The fee for a concert permit is $50 and must accompany the application for                              
10       the concert permit.                                                                                               
11    * Sec. 5. AS 04.11.400(a) is amended to read:                                                                      
12 (a)  Except as provided in (d) - (k) and (o) of this section, a new license may                                     
13       not be issued and the board may prohibit relocation of an existing license                                        
14 (1)  outside an established village, incorporated city, unified                                                         
15 municipality, or organized borough if, after the issuance or relocation, there would be                                 
16 (A) more than one restaurant or eating place license for each 1,500 population or                                       
17 fraction of that population, or (B) more than one license of each other type, including                                 
18 licenses that have been issued under (d) or (e) of this section, for each 3,000                                         
19 population or fraction of that population, in a radius of five miles of the licensed                                    
20 premises, excluding the populations of established villages, incorporated cities, unified                               
21 municipalities, and organized boroughs that are wholly or partly included within the                                    
22       radius;                                                                                                           
23 (2)  inside an established village, incorporated city, or unified                                                       
24 municipality if, after the issuance or relocation, there would be inside the established                                
25       village, incorporated city, or unified municipality                                                               
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 license of each other type, including licenses                                                       
29 that have been issued under (d) or (e) of this section, for each 3,000 population                                       
30            or fraction of that population;                                                                              
31 (3)  inside an organized borough but outside an established village or                                                  
01 incorporated city located within the borough if, after the issuance or relocation, there                                
02 would be inside the borough, but outside the established villages and incorporated                                      
03       cities located within the borough,                                                                                
04 (A)  more than one restaurant or eating place license for each                                                          
05            1,500 population or fraction of that population; or                                                          
06 (B)  more than one license of each other type, including licenses                                                       
07 that have been issued under (d) or (e) of this section, for each 3,000 population                                       
08 or fraction of that population excluding the population of those established                                            
09 villages that have adopted a local option under AS 04.11.491(b)(1), (3), or (4),                                        
10 and excluding the population of incorporated cities located within the                                                  
11            organized borough.                                                                                           
12    * Sec. 6. AS 04.11.400 is amended by adding a new subsection to read:                                              
13 (o)  The board may approve the issuance and renewal of only one fair license                                            
14       under AS 04.11.215 in each borough.                                                                               
15    * Sec. 7. AS 04.21.065(a) is amended to read:                                                                      
16 (a)  A holder of one of the following types of licenses or permits shall post on                                        
17 the licensed or designated premises three separate warning signs as described in (b) of                                 
18       this section:                                                                                                     
19                 (1)  beverage dispensary license;                                                                       
20                 (2)  restaurant or eating place license;                                                                
21                 (3)  club license;                                                                                      
22 (4)  brewery license; this paragraph applies only to a brewery that                                                     
23       permits a person to sample portions of the brewery's product;                                                     
24                 (5)  package store license;                                                                             
25                 (6)  common carrier dispensary license;                                                                 
26                 (7)  recreational site license;                                                                         
27                 (8)  pub license;                                                                                       
28 (9)  winery license; this paragraph applies only to a winery that permits                                               
29       a person to sample portions of the winery's product;                                                              
30 (10)  distillery license; this paragraph applies only to a distillery that                                              
31       permits a person to sample portions of the distillery's product;                                                  
01                 (11)  caterer's permit;                                                                                 
02                 (12)  special events permit;                                                                            
03                 (13)  conditional contractor's permit;                                                                  
04                 (14)  performing arts theater license;                                                              
05                 (15)  fair license;                                                                                 
06                 (16)  concert permit;                                                                               
07                 (17)  another license or permit issued by the board authorizing                                     
08       consumption of alcoholic beverages.                                                                               
09    * Sec. 8. AS 43.60.040(a) is amended to read:                                                                      
10 (a)  Each brewer, distiller, bottler, jobber, wholesaler, or manufacturer is                                            
11 primarily liable for the payment of the excise taxes on alcoholic beverages sold, and,                              
12 except as provided under (i) of this section, shall furnish a good and sufficient                                   
13 surety bond of $25,000 payable to the department and approved by the Department of                                      
14 Law. If a wholesaler fails to pay the tax to the state, the wholesaler forfeits the bond                            
15 and the wholesaler's license shall be revoked. The department, in its discretion, may                                   
16 issue permits in place of bonds to resident holders of wholesale, malt beverage, and                                    
17       wine licenses doing business wholly in the state who pay the tax before shipment.                                 
18    * Sec. 9. AS 43.60.040(b) is amended to read:                                                                      
19 (b)  Upon receipt of the bond and its subsequent approval, the department shall                                         
20 issue a license certificate authorizing the brewer, distiller, bottler, jobber, wholesaler,                             
21 or manufacturer, liable for the payment of the tax, to sell alcoholic beverages in the                                  
22 state or to consign shipments of alcoholic beverages to the state. Except as provided                               
23 under (i) of this section, it [IT] is unlawful for a brewer, distiller, bottler, jobber,                            
24 wholesaler, or manufacturer to sell alcoholic beverages in the state or to consign                                      
25 shipments of alcoholic beverages into the state without first furnishing the required                                   
26 bond and obtaining the license certificate or permit from the department. The license                                   
27 certificate does not constitute permission to sell alcoholic beverages in the state or to                               
28 consign them to the state without having complied with other requirements of state or                                   
29       federal law.                                                                                                      
30    * Sec. 10. AS 43.60.040 is amended by adding a new subsection to read:                                             
31 (i)  The department may not require a brewer, distiller, bottler, jobber,                                               
01 wholesaler, or manufacturer who has timely filed monthly tax returns and paid                                           
02 monthly taxes to the department over the most recent three consecutive calendar years                                   
03 to maintain a bond if the brewer, distiller, bottler, jobber, wholesaler, or manufacturer                               
04 remains in compliance with AS 43.60. The department shall notify the brewer,                                            
05 distiller, bottler, jobber, wholesaler, or manufacturer of any noncompliance that                                       
06 requires the brewer, distiller, bottler, jobber, wholesaler, or manufacturer to file a bond                             
07 under (a) of this section after three years. The brewer, distiller, bottler, jobber,                                    
08 wholesaler, or manufacturer shall, within 30 days after receiving a notice of                                           
09       noncompliance, file with the department a bond under (a) of this section.