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Enrolled SB 16: 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.

00Enrolled SB 16 01 Relating to certain alcoholic beverage licenses and permits; relating to the bond requirement 02 for certain alcoholic beverage license holders; and providing for an effective date. 03 _______________ 04 * Section 1. AS 04.11.210 is amended by adding new subsections to read: 05 (d) The board may not deny an application for renewal of a license issued 06 under this section or an application to transfer a license issued under this section to 07 another person solely because the board determines that the licensed premises is not a 08 "recreational site" as defined under (c) of this section if the applicant 09 (1) held a license under this section or received a transferred license 10 under this section that was valid at any time between January 1, 2018, and March 31, 11 2019 or holds a license that was initially issued under (e) of this section; and 12 (2) operates the license under the same conditions required at the time 13 of initial licensure.

01 (e) The board may not deny an application for issuance of a new license under 02 this section solely because the board determines that the licensed premises is not a 03 "recreational site" as defined in (c) of this section if the applicant filed an application 04 for a new license under this section between October 1, 2018, and the effective date of 05 this Act. 06 * Sec. 2. AS 43.60.040(a) is amended to read: 07 (a) Each brewer, distiller, bottler, jobber, wholesaler, or manufacturer is 08 primarily liable for the payment of the excise taxes on alcoholic beverages sold, and, 09 except as provided under (i) of this section, shall furnish a good and sufficient 10 surety bond of $25,000 payable to the department and approved by the Department of 11 Law. If a wholesaler fails to pay the tax to the state, the wholesaler forfeits the bond 12 and the wholesaler's license shall be revoked. The department, in its discretion, may 13 issue permits in place of bonds to resident holders of wholesale, malt beverage, and 14 wine licenses doing business wholly in the state who pay the tax before shipment. 15 * Sec. 3. AS 43.60.040(b) is amended to read: 16 (b) Upon receipt of the bond and its subsequent approval, the department shall 17 issue a license certificate authorizing the brewer, distiller, bottler, jobber, wholesaler, 18 or manufacturer, liable for the payment of the tax, to sell alcoholic beverages in the 19 state or to consign shipments of alcoholic beverages to the state. Except as provided 20 under (i) of this section, it [IT] is unlawful for a brewer, distiller, bottler, jobber, 21 wholesaler, or manufacturer to sell alcoholic beverages in the state or to consign 22 shipments of alcoholic beverages into the state without first furnishing the required 23 bond and obtaining the license certificate or permit from the department. The license 24 certificate does not constitute permission to sell alcoholic beverages in the state or to 25 consign them to the state without having complied with other requirements of state or 26 federal law. 27 * Sec. 4. AS 43.60.040 is amended by adding a new subsection to read: 28 (i) The department may not require a brewer, distiller, bottler, jobber, 29 wholesaler, or manufacturer who has timely filed monthly tax returns and paid 30 monthly taxes to the department over the most recent three consecutive years to 31 maintain a bond if the brewer, distiller, bottler, jobber, wholesaler, or manufacturer

01 continues to remain in compliance with this chapter. The department shall notify the 02 brewer, distiller, bottler, jobber, wholesaler, or manufacturer of any noncompliance 03 that requires the brewer, distiller, bottler, jobber, wholesaler, or manufacturer to file a 04 bond under (a) of this section. The brewer, distiller, bottler, jobber, wholesaler, or 05 manufacturer shall, within 30 days after receiving the notice of noncompliance, file 06 with the department a bond under (a) of this section. 07 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 08 read: 09 TRANSITION. (a) The Alcoholic Beverage Control Board shall reconsider an 10 application for renewal of a recreational site license or transfer of a recreational site license to 11 another person and apply AS 04.11.210(d), enacted by sec. 1 of this Act, if 12 (1) the application was denied between January 1, 2018, and the effective date 13 of this Act; and 14 (2) the board denied the application because the board determined that the 15 licensed premises was not a "recreational site" as defined under AS 04.11.210(c). 16 (b) The Alcoholic Beverage Control Board shall reconsider an application for 17 issuance of a new recreational site license and apply AS 04.11.210(e), enacted by sec. 1 of 18 this Act, if 19 (1) the application was denied between October 1, 2018, and the effective date 20 of this Act; and 21 (2) the board denied the application because the board determined that the 22 licensed premises was not a "recreational site" as defined under AS 04.11.210(c). 23 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 24 read: 25 RETROACTIVITY. (a) AS 04.11.210(d), enacted by sec. 1 of this Act, is retroactive 26 to January 1, 2018. 27 (b) AS 04.11.210(e), enacted by sec. 1 of this Act, is retroactive to October 1, 2018. 28 * Sec. 7. This Act takes effect immediately under AS 01.10.070(c).