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HB 288: "An Act relating to the authority of first class cities, second class cities, home rule cities, and unified municipalities to issue, renew, deny, suspend, revoke, and regulate licenses involving alcoholic beverages; and relating to the Alcoholic Beverage Control Board."

00 HOUSE BILL NO. 288 01 "An Act relating to the authority of first class cities, second class cities, home rule cities, 02 and unified municipalities to issue, renew, deny, suspend, revoke, and regulate licenses 03 involving alcoholic beverages; and relating to the Alcoholic Beverage Control Board." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 04.06.090(a) is amended to read: 06 (a) Except as provided in AS 04.11.800, the [THE] board shall control the 07 manufacture, barter, possession, and sale of alcoholic beverages in the state. The board 08 is vested with the powers, duties, and responsibilities necessary for the control of 09 alcoholic beverages, including the power to propose and adopt regulations and to hear 10 appeals from actions of the director, and from actions of officers and employees 11 charged with enforcing the alcoholic beverage control laws and the regulations of the 12 board. 13 * Sec. 2. AS 04.06.090(b) is amended to read: 14 (b) Except as provided in AS 04.11.800, the [THE] board shall review all

01 applications for licenses made under this title and may order the director to issue, 02 renew, revoke, transfer, or suspend licenses and permits authorized under this title. 03 * Sec. 3. AS 04.11.080 is amended to read: 04 Sec. 04.11.080. Types of licenses and permits. Licenses and permits issued 05 under this title are as follows: 06 (1) beverage dispensary license; 07 (2) duplicate beverage dispensary license for additional rooms; 08 (3) restaurant or eating place license; 09 (4) club license; 10 (5) bottling works license; 11 (6) brewery license; 12 (7) package store license; 13 (8) general wholesale license; 14 (9) wholesale malt beverage and wine license; 15 (10) distillery license; 16 (11) common carrier dispensary license; 17 (12) retail stock sale license; 18 (13) recreational site license; 19 (14) pub license; 20 (15) winery license; 21 (16) caterer's permit; 22 (17) special events permit; 23 (18) conditional contractor's permit; 24 (19) brewpub license; 25 (20) golf course license; 26 (21) outdoor recreation lodge license; 27 (22) destination resort license; 28 (23) municipal alcoholic beverage license. 29 * Sec. 4. AS 04.11.495(c) is amended to read: 30 (c) When issuing a license in the area that has removed a local option, the 31 board, or a city or unified municipality in the case of a premises licensed under

01 AS 04.11.800, shall give priority to an applicant who was formerly licensed and 02 whose license was not renewed because of the results of the previous local option 03 election. However, an applicant described in this subsection does not have a legal right 04 to a license and the board, or a city or unified municipality in the case of an 05 application for a license under AS 04.11.800, is not required to approve the 06 application. 07 * Sec. 5. AS 04.11.497 is amended to read: 08 Sec. 04.11.497. Effect on licenses of prohibition of sale. If a majority of 09 voters vote to prohibit the sale of alcoholic beverages under AS 04.11.491(a)(1), (a)(4) 10 or (5), (b)(1), or (b)(3) or (4), the board, or a city or unified municipality with 11 authority over alcoholic beverage licensing under AS 04.11.800, may not issue, 12 renew, or transfer, between persons or locations, a license for premises located within 13 the boundaries of the municipality and in unincorporated areas within five miles of the 14 boundaries of the municipality or within the perimeter of the established village. A 15 license that may not be renewed because of a local option election held under this 16 section is void 90 days after the results of the election are certified. A license that 17 expires during the 90 days after the results of a local option election are certified may 18 be extended, until it is void under this section, by payment of a prorated portion of the 19 biennial license fee. 20 * Sec. 6. AS 04.11.503 is amended to read: 21 Sec. 04.11.503. Effect on licenses of restriction on sale. If a majority of the 22 voters vote under AS 04.11.491(a)(2) or (b)(2) to prohibit sale of alcoholic beverages 23 except by the type or types of licensees or permit holders listed on the ballot, the 24 board, or a city or unified municipality with authority over alcoholic beverage 25 licensing under AS 04.11.800, may not issue, renew, or transfer between persons or 26 locations a license for premises located within the boundaries of the municipality and 27 in unincorporated areas within five miles of the boundaries of the municipality or 28 within the perimeter of the established village, except the type or types of licenses 29 listed on the ballot. A license in effect within the boundaries of the municipality or 30 perimeter of the established village, and in unincorporated areas within five miles of 31 the boundaries of the municipality, except the type of license listed on the ballot, is

01 void 90 days after the results of the election are certified. A license that expires during 02 the 90 days after the results of a local option election are certified may be extended, 03 until it is void under this section, by payment of a prorated portion of the biennial 04 license fee. 05 * Sec. 7. AS 04.11.505(a) is amended to read: 06 (a) If a majority of the voters vote under AS 04.11.491(a)(3) to prohibit the 07 sale of alcoholic beverages except on premises operated by the municipality, the 08 board, or a city or unified municipality with authority over alcoholic beverage 09 licensing under AS 04.11.800, may not issue, renew, or transfer between persons or 10 locations a license for premises located within the boundaries of a municipality and in 11 unincorporated areas within five miles of the boundaries of the municipality, with the 12 exception of the type of license listed on the ballot and operated under a license held 13 by the municipality. A license in effect is void 90 days after the results of the election 14 are certified. A license that expires during the 90 days after the results of a local option 15 election are certified may be extended, until it is void under this subsection, by 16 payment of a prorated portion of the biennial license fee. 17 * Sec. 8. AS 04.11 is amended by adding a new section to read: 18 Article 10. Municipal Licenses. 19 Sec. 04.11.800. Municipal authority over alcoholic beverage licenses. (a) 20 Notwithstanding AS 04.11.030 - 04.11.070, 04.11.090 - 04.11.480, and 04.11.510 - 21 04.11.690, a first class city, second class city, home rule city, or unified municipality 22 may issue, renew, deny, suspend, revoke, and regulate licenses for the manufacture 23 and sale of alcoholic beverages in the city or unified municipality if the local 24 governing body of the city or unified municipality 25 (1) votes to exempt the city or unified municipality from the 26 requirements of AS 04.11.030 - 04.11.070, 04.11.090 - 04.11.480, and 04.11.510 - 27 04.11.690; and 28 (2) informs the board that the city or unified municipality has voted to 29 exempt the city or unified municipality from the requirements of AS 04.11.030 - 30 04.11.070, 04.11.090 - 04.11.480, and 04.11.510 - 04.11.690. 31 (b) The board may not issue, renew, or transfer to another person or a new

01 location a license or permit under AS 04.11.090 - 04.11.255 in a first class city, 02 second class city, home rule city, or unified municipality that is exempted under (a) of 03 this section. 04 * Sec. 9. AS 04.16.049(a) is amended to read: 05 (a) A person under 21 years of age may not knowingly enter or remain in 06 premises licensed under this title unless 07 (1) accompanied by a parent, guardian, or spouse who has attained 21 08 years of age; 09 (2) the person is at least 16 years of age, the premises are designated 10 by the board, or by a city or unified municipality in the case of a premises licensed 11 under AS 04.11.800, as a restaurant for the purposes of this section, and the person 12 enters and remains only for dining; 13 (3) the person is under 16 years of age, is accompanied by a person 14 over 21 years of age, the parent or guardian of the underaged person consents, the 15 premises are designated by the board, or by a city or unified municipality in the 16 case of a premises licensed under AS 04.11.800, as a restaurant for the purposes of 17 this section, and the person enters and remains only for dining; 18 (4) the person is permitted on the premises under a club license issued 19 under AS 04.11.110(g); or 20 (5) otherwise provided under (c), (d), or (g) of this section. 21 * Sec. 10. AS 04.16.049(c) is amended to read: 22 (c) Notwithstanding any other provision in this section, a person 16 or 17 23 years of age may enter and remain within the licensed premises of a hotel, golf course, 24 or restaurant or eating place in the course of employment if (1) the employment does 25 not involve the serving, mixing, delivering, or dispensing of alcoholic beverages; (2) 26 the person has the written consent of a parent or guardian; and (3) an exemption from 27 the prohibition of AS 23.10.355 is granted by the Department of Labor and Workforce 28 Development. At a licensee's request, the [THE] board, with the approval of the 29 governing body having jurisdiction, or, for a premises licensed under AS 04.11.800, 30 a city or unified municipality [AND AT THE LICENSEE'S REQUEST], shall 31 designate which premises are hotels, golf courses, restaurants, or eating places for the

01 purposes of this subsection. 02 * Sec. 11. 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 04.11.090, 04.11.100, 04.11.110, or 04.11.150 may not 05 purchase, sell, or offer for sale an alcoholic beverage unless the alcoholic beverage 06 being purchased, sold, or offered for sale was obtained from a person licensed under 07 (1) AS 04.11.160 as a primary source of supply for the alcoholic 08 beverage being purchased, sold, or offered for sale; 09 (2) AS 04.11.150 and the alcoholic beverage being purchased, sold, or 10 offered for sale was obtained from a person licensed under AS 04.11.160 as a primary 11 source of supply; or 12 (3) AS 04.11.130, 04.11.140, [OR] 04.11.170, or 04.11.800. 13 * Sec. 12. AS 04.16.210 is amended to read: 14 Sec. 04.16.210. Penalty for making false statement. If a false statement is 15 made in an application to the board under AS 04.11.260 - 04.11.290 or in an 16 application to a city or unified municipality under AS 04.11.800, the applicant is 17 guilty of perjury and, upon conviction, is subject to the penalty provided by law for the 18 crime of perjury under AS 11.56.200. 19 * Sec. 13. AS 04.21.020(a) is amended to read: 20 (a) Except as provided under (b) and (d) of this section, a person who provides 21 alcoholic beverages to another person may not be held civilly liable for injuries 22 resulting from the intoxication of that person unless the person who provides the 23 alcoholic beverages holds a license authorized under AS 04.11.080 - 04.11.220 or 24 04.11.800 or is an agent or employee of such a licensee and 25 (1) the alcoholic beverages are provided to a person under the age of 26 21 years in violation of AS 04.16.051, unless the licensee, agent, or employee secures 27 in good faith from the person a signed statement, liquor identification card, or driver's 28 license meeting the requirements of AS 04.21.050(a) and (b), that indicates that the 29 person is 21 years of age or older; or 30 (2) the alcoholic beverages are provided to a drunken person in 31 violation of AS 04.16.030.

01 * Sec. 14. AS 04.21.060 is amended to read: 02 Sec. 04.21.060. Warehousing of alcoholic beverages. A licensee may stock, 03 warehouse, or otherwise store alcoholic beverages in a place elsewhere than premises 04 indicated on the license if 05 (1) the premises to be used for storage are inspected and approved by 06 the board, or by a city or unified municipality in the case of a premises licensed 07 under AS 04.11.800, before their use; 08 (2) the use of the premises for storage is authorized by local zoning 09 ordinances; and 10 (3) the premises are accessible for inspection as provided in 11 AS 04.11.630. 12 * Sec. 15. AS 04.21.080(b)(15) is amended to read: 13 (15) "licensed premises" means any or all designated portions of a 14 building or structure, rooms or enclosures in the building or structure, or real estate 15 leased, used, controlled, or operated by a licensee in the conduct of business for which 16 the licensee is licensed by the board or a city or unified municipality at the specific 17 address for which the license is issued; 18 * Sec. 16. AS 09.65.315(b) is amended to read: 19 (b) A person licensed under AS 04.11.080 - 04.11.255 or 04.11.800, or an 20 agent or employee of the person, is not liable for damages resulting from a motor 21 vehicle accident described under (a) of this section. A person or entity that participates 22 in making arrangements for transportation of a vehicle under (a) of this section is not 23 liable for damages resulting from a motor vehicle accident described in (a) of this 24 section. 25 * Sec. 17. AS 12.55.025(a) is amended to read: 26 (a) When imposing a sentence for conviction of a felony offense or a sentence 27 of imprisonment exceeding 90 days or upon a conviction of a violation of AS 04, a 28 regulation adopted under AS 04, or an ordinance adopted in conformity with 29 AS 04.11.800 or AS 04.21.010, the court shall prepare, as a part of the record, a 30 sentencing report that includes the following: 31 (1) a verbatim record of the sentencing hearing and any other in-court

01 sentencing procedures; 02 (2) findings on material issues of fact and on factual questions required 03 to be determined as a prerequisite to the selection of the sentence imposed; 04 (3) a clear statement of the terms of the sentence imposed; if a term of 05 imprisonment is imposed, the statement must include 06 (A) the approximate minimum term the defendant is expected 07 to serve before being released or placed on mandatory parole if the defendant 08 is eligible for and does not forfeit good conduct deductions under 09 AS 33.20.010; and 10 (B) if applicable, the approximate minimum term of 11 imprisonment the defendant must serve before becoming eligible for release on 12 discretionary parole; 13 (4) any recommendations as to the place of confinement or the manner 14 of treatment; and 15 (5) in the case of a conviction for a felony offense, information 16 assessing 17 (A) the financial, emotional, and medical effects of the offense 18 on the victim; 19 (B) the need of the victim for restitution; and 20 (C) any other information required by the court. 21 * Sec. 18. AS 12.55.025(b) is amended to read: 22 (b) The sentencing report required under (a) of this section shall be furnished 23 within 30 days after imposition of sentence to the Department of Law, the defendant, 24 the Department of Corrections, the state Board of Parole if the defendant will be 25 eligible for parole, and to the Alcoholic Beverage Control Board if the defendant is to 26 be sentenced for a conviction of a violation of AS 04, a regulation adopted under 27 AS 04, or an ordinance adopted under AS 04.11.800 or AS 04.21.010. 28 * Sec. 19. AS 12.55.025(m) is amended to read: 29 (m) When imposing a sentence for conviction of a felony offense or a 30 sentence of imprisonment exceeding 90 days or, upon a conviction of a violation of 31 AS 04, a regulation adopted under AS 04, or an ordinance adopted in conformity with

01 AS 04.11.800 or AS 04.21.010, the court shall orally state on the record the terms of 02 the sentence of imprisonment imposed and the approximate minimum sentence that 03 must be served before the defendant may be eligible for mandatory parole and that the 04 period of active incarceration may be reduced under other provisions of law. 05 * Sec. 20. AS 18.56.230(b) is amended to read: 06 (b) The corporation may not authorize the commercial use of space in a multi- 07 unit residential housing development owned or financed by the corporation for 08 (1) a business that offers adult entertainment; 09 (2) the sale of alcoholic beverages, unless the sale is in a restaurant or 10 eating place licensed under AS 04.11.100 or is in premises designated as a restaurant 11 under AS 04.16.049 by the Alcoholic Beverage Control Board or, in the case of a 12 premises licensed under AS 04.11.800, by a city or unified municipality [AS A 13 RESTAURANT UNDER AS 04.16.049]; 14 (3) substance abuse treatment; or 15 (4) a business that primarily sells, transfers, or stores cigarettes or 16 tobacco-related products. 17 * Sec. 21. AS 29.35.080(a) is amended to read: 18 (a) A municipality may regulate the possession, barter, sale, importation, and 19 consumption of alcoholic beverages under AS 04.11.480 - 04.11.509 and 20 AS 04.21.010. This subsection applies to home rule and general law 21 municipalities. 22 * Sec. 22. AS 29.35.080 is amended by adding a new subsection to read: 23 (c) A first class city, second class city, home rule city, or unified municipality 24 may issue, renew, deny, suspend, revoke, and regulate alcoholic beverage licenses 25 under AS 04.11.800. 26 * Sec. 23. AS 29.35.310(a) is amended to read: 27 (a) Except for the powers granted to a city under AS 04.11.800, a [A] city 28 in a first or second class borough may transfer to the borough in which it is located 29 any of its powers or functions, subject to the approval of the assembly. 30 * Sec. 24. AS 34.03.360(6) is amended to read: 31 (6) "illegal activity involving alcoholic beverages" means a person's

01 delivery of an alcoholic beverage in violation of AS 04.11.010(b) in an area where the 02 results of a local option election have, under AS 04.11.491, prohibited the Alcoholic 03 Beverage Control Board, or a city or unified municipality in the case of a premises 04 licensed under AS 04.11.800, from issuing, renewing, or transferring a liquor license 05 or permit under AS 04; 06 * Sec. 25. AS 29.35.080(b) is repealed.