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HCS CSSB 16(FIN): "An Act relating to certain alcoholic beverage licenses and permits; relating to the bond requirement for certain alcoholic beverage license holders; and providing for an effective date."

00 HOUSE CS FOR CS FOR SENATE BILL NO. 16(FIN) 01 "An Act relating to certain alcoholic beverage licenses and permits; relating to the bond 02 requirement for certain alcoholic beverage license holders; and providing for an 03 effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 04.11.080 is amended to read: 06 Sec. 04.11.080. Types of licenses and permits. Licenses and permits issued 07 under this title are as follows: 08 (1) beverage dispensary license; 09 (2) duplicate beverage dispensary license for additional rooms; 10 (3) restaurant or eating place license; 11 (4) club license; 12 (5) bottling works license; 13 (6) brewery license; 14 (7) package store license;

01 (8) general wholesale license; 02 (9) wholesale malt beverage and wine license; 03 (10) distillery license; 04 (11) common carrier dispensary license; 05 (12) retail stock sale license; 06 (13) recreational site license; 07 (14) pub license; 08 (15) winery license; 09 (16) caterer's permit; 10 (17) special events permit; 11 (18) conditional contractor's permit; 12 (19) brewpub license; 13 (20) golf course license; 14 (21) outdoor recreation lodge license; 15 (22) destination resort license; 16 (23) performing arts theater license; 17 (24) fair license. 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 predominantly composed of 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 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 portions of the audience viewing area at the performing arts theater site. The 10 board may approve an application for a performing arts theater license only if the 11 application is approved by the local governing body of the municipality in which the 12 performing arts theater site is located or, for a performing arts theater site outside a 13 municipality, approved by the law enforcement agency that has jurisdiction over the 14 performing arts theater site. 15 (h) In this section, "performing arts theater" means a location where events are 16 presented by live performers on a stage, such as plays, operas, orchestra concerts, 17 readings, and similar activities as determined by the board. 18 * Sec. 3. AS 04.11.210 is amended by adding a new subsection to read: 19 (d) The board may not deny an application for renewal of a license issued 20 under this section or an application to transfer a license issued under this section to 21 another person solely because the board determines that the licensed premises is not a 22 "recreational site" as defined under (c) of this section if the applicant 23 (1) held a license under this section or received a transferred license 24 under this section that was valid at any time between January 1, 2018, and March 31, 25 2019; and 26 (2) operates the license under the same conditions required at the time 27 of initial licensure. 28 * Sec. 4. AS 04.11 is amended by adding a new section to read: 29 Sec. 04.11.215. Fair license. (a) A fair license authorizes the holder to sell 30 beer and wine at multiple noncontiguous locations at an annual fair held on 31 fairgrounds for consumption on licensed premises.

01 (b) The biennial fair license fee is $800. 02 (c) The board may issue a fair license only to a nonprofit organization that is 03 incorporated under AS 10.20 and has been active for a period of at least five years 04 before the effective date of sec. 4 of this Act. 05 (d) In this section, "annual fair" means an annual gathering of residents of all 06 or a portion of the state that offers competitive exhibitions of livestock and agricultural 07 crops, carnival amusement rides and games, and displays of arts and crafts. 08 * Sec. 5. AS 04.11.330(d) is amended to read: 09 (d) Notwithstanding (a)(3) of this section, a performing arts theater license 10 issued under AS 04.11.205 and a recreational site license issued under AS 04.11.210 11 may be renewed if the license was exercised at least once during each of the two 12 preceding calendar years. 13 * Sec. 6. AS 04.16.049(a) is amended to read: 14 (a) A person under 21 years of age may not knowingly enter or remain in 15 premises licensed under this title unless 16 (1) accompanied by a parent, guardian, or spouse who has attained 21 17 years of age; 18 (2) the person is at least 16 years of age, the premises are designated 19 by the board as a restaurant for the purposes of this section, and the person enters and 20 remains only for dining; 21 (3) the person is under 16 years of age, is accompanied by a person 22 over 21 years of age, the parent or guardian of the underaged person consents, the 23 premises are designated by the board as a restaurant for the purposes of this section, 24 and the person enters and remains only for dining; 25 (4) the person is permitted on the premises under a club license issued 26 under AS 04.11.110(g); or 27 (5) otherwise provided under (c), (d), [OR] (g), or (j) of this section. 28 * Sec. 7. AS 04.16.049 is amended by adding a new subsection to read: 29 (j) Notwithstanding any other provision of this section, a person under 21 30 years of age may be present on licensed premises of a performing arts theater for the 31 purpose of viewing an event presented by live performers on a stage or attending a

01 performing arts-related activity if the person is 02 (1) at least 16 years of age; or 03 (2) under 16 years of age and 04 (A) is accompanied by a person who is at least 21 years of age; 05 and 06 (B) the person's parent or guardian consents. 07 * Sec. 8. AS 04.21.065(a) is amended to read: 08 (a) A holder of one of the following types of licenses or permits shall post on 09 the licensed or designated premises three separate warning signs as described in (b) of 10 this section: 11 (1) beverage dispensary license; 12 (2) restaurant or eating place license; 13 (3) club license; 14 (4) brewery license; this paragraph applies only to a brewery that 15 permits a person to sample portions of the brewery's product; 16 (5) package store license; 17 (6) common carrier dispensary license; 18 (7) recreational site license; 19 (8) pub license; 20 (9) winery license; this paragraph applies only to a winery that permits 21 a person to sample portions of the winery's product; 22 (10) distillery license; this paragraph applies only to a distillery that 23 permits a person to sample portions of the distillery's product; 24 (11) caterer's permit; 25 (12) special events permit; 26 (13) conditional contractor's permit; 27 (14) performing arts theater license; 28 (15) fair license; 29 (16) another license or permit issued by the board authorizing 30 consumption of alcoholic beverages. 31 * Sec. 9. AS 43.60.040(a) is amended to read:

01 (a) Each brewer, distiller, bottler, jobber, wholesaler, or manufacturer is 02 primarily liable for the payment of the excise taxes on alcoholic beverages sold, and, 03 except as provided under (i) of this section, shall furnish a good and sufficient 04 surety bond of $25,000 payable to the department and approved by the Department of 05 Law. If a wholesaler fails to pay the tax to the state, the wholesaler forfeits the bond 06 and the wholesaler's license shall be revoked. The department, in its discretion, may 07 issue permits in place of bonds to resident holders of wholesale, malt beverage, and 08 wine licenses doing business wholly in the state who pay the tax before shipment. 09 * Sec. 10. AS 43.60.040(b) is amended to read: 10 (b) Upon receipt of the bond and its subsequent approval, the department shall 11 issue a license certificate authorizing the brewer, distiller, bottler, jobber, wholesaler, 12 or manufacturer, liable for the payment of the tax, to sell alcoholic beverages in the 13 state or to consign shipments of alcoholic beverages to the state. Except as provided 14 under (i) of this section, it [IT] is unlawful for a brewer, distiller, bottler, jobber, 15 wholesaler, or manufacturer to sell alcoholic beverages in the state or to consign 16 shipments of alcoholic beverages into the state without first furnishing the required 17 bond and obtaining the license certificate or permit from the department. The license 18 certificate does not constitute permission to sell alcoholic beverages in the state or to 19 consign them to the state without having complied with other requirements of state or 20 federal law. 21 * Sec. 11. AS 43.60.040 is amended by adding a new subsection to read: 22 (i) The department may not require a brewer, distiller, bottler, jobber, 23 wholesaler, or manufacturer who has timely filed monthly tax returns and paid 24 monthly taxes to the department over the most recent three consecutive years to 25 maintain a bond if the brewer, distiller, bottler, jobber, wholesaler, or manufacturer 26 continues to remain in compliance with AS 43.60. The department shall notify the 27 brewer, distiller, bottler, jobber, wholesaler, or manufacturer of any noncompliance 28 that requires the brewer, distiller, bottler, jobber, wholesaler, or manufacturer to file a 29 bond under (a) of this section. The brewer, distiller, bottler, jobber, wholesaler, or 30 manufacturer shall, within 30 days after receiving the notice of noncompliance, file 31 with the department a bond under (a) of this section.

01 * Sec. 12. The uncodified law of the State of Alaska is amended by adding a new section to 02 read: 03 TRANSITION. The board shall reconsider an application for renewal of a recreational 04 site license or transfer of a recreational site license to another person and apply 05 AS 04.11.210(d), enacted by sec. 3 of this Act, if 06 (1) the application was denied between January 1, 2018, and the effective date 07 of this Act; and 08 (2) the board denied the application because the board determined that the 09 licensed premises was not a "recreational site" as defined under AS 04.11.210(c). 10 * Sec. 13. The uncodified law of the State of Alaska is amended by adding a new section to 11 read: 12 RETROACTIVITY. Section 3 of this Act is retroactive to January 1, 2018. 13 * Sec. 14. This Act takes effect immediately under AS 01.10.070(c).