00 CS FOR SENATE BILL NO. 372(FIN)                                                                                         
01 "An Act relating to community local options for control of alcoholic beverages;                                         
02 relating to the control of alcoholic beverages; relating to the definition of                                           
03 `alcoholic beverage'; relating to purchase and sale of alcoholic beverages; relating                                    
04 to alcohol server education courses; and providing for an effective date."                                              
05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
06    * Section 1.  AS 04.11.010(b) is amended to read:                                                                    
07  (b)  A person may not solicit or receive orders for the delivery of an alcoholic                                      
08 beverage in an area that has adopted a local option under AS 04.11.491.  If the                                        
09 area has adopted a local option under AS 04.11.491(a)(1), (2), or (3), or (b)(1) or                                     
10 (2), a package store licensee outside of that local option area may receive orders                                      
11 as provided under AS 04.11.150 but may not solicit in that area or receive orders                                       
12 through an agent or employee in that area.  This subsection does not apply to a                                         
13 package store licensee who operates a package store in an area that has adopted                                         
14 a local option under AS 04.11.491(a)(2)(C) or (3)(C) or (b)(2)(C) [WHERE THE                                         
01 RESULTS OF A LOCAL OPTION ELECTION HAVE, UNDER AS 04.11.490 -                                                           
02 04.11.500, PROHIBITED THE BOARD FROM ISSUING, RENEWING OR                                                               
03 TRANSFERRING ONE OR MORE TYPES OF LICENSES OR PERMITS UNDER                                                             
04 THIS TITLE, UNLESS THE PERSON IS LICENSED UNDER THIS TITLE AND                                                          
05 THE ORDER IS ACTUALLY RECEIVED BY THAT PERSON FROM THE                                                                  
06 PURCHASER OF THE ALCOHOLIC BEVERAGE].  A person who violates this                                                       
07 subsection is punishable upon conviction as provided under AS 04.16.200(a) or (b).                                    
08    * Sec. 2.  AS 04.11.010(c) is amended to read:                                                                       
09  (c)  In a criminal prosecution for possession of alcoholic beverages for sale in                                      
10 violation of (a) of this section, the fact that a person possessed more than 12 liters of                               
11 distilled spirits, 24 liters or more of wine, or 12 gallons [45 LITERS] or more of malt                               
12 beverages in an area where the sale of alcoholic beverages is restricted or prohibited                                
13 under AS 04.11.491 [AS 04.11.490, 04.11.492, 04.11.496, OR 04.11.500] creates a                                       
14 presumption that the person possessed the alcoholic beverages for sale.                                                 
15    * Sec. 3.  AS 04.11.110(d) is amended to read:                                                                       
16  (d)  Alcoholic beverages sold under a club license may be purchased only by                                           
17 (1) members of the club and their families, (2) widows or widowers of deceased                                          
18 members who have been given [ACCORDED] club privileges, and (3) military                                              
19 personnel [IN UNIFORM] on active duty who are extended the privilege by patriotic                                       
20 organizations upon special occasions.  Alcoholic beverages may be purchased only in                                     
21 the portion of the club rooms that are [PART OF THE] licensed premises.                                                 
22    * Sec. 4.  AS 04.11.135(b) is amended to read:                                                                       
23  (b)  Except as provided under AS 04.11.360(10) [AS 04.11.360(12)], the                                              
24 brewpub license is not transferable, shall remain the property of the state, and is not                                 
25 subject to any form of alienation.                                                                                      
26    * Sec. 5.  AS 04.11.150(a) is repealed and reenacted to read:                                                        
27  (a)  Except as provided under (h) of this section, a package store license                                            
28 authorizes the licensee to sell alcoholic beverages to a person present on the licensed                                 
29 premises or to a person known to the licensee who makes a written solicitation to that                                  
30 licensee for shipment.  A licensee, agent, or employee may only ship alcoholic                                          
31 beverages to the person who is purchasing the alcoholic beverages being shipped.                                        
01 Before commencing the practice of shipping alcoholic beverages, and with a                                              
02 subsequent application to renew the license, a licensee shall notify the board in writing                               
03 of the licensee's intention to ship alcoholic beverages in response to a written                                        
04 solicitation.  The package store licensee, agent, or employee shall include written                                     
05 information on fetal alcohol syndrome and fetal alcohol effects resulting from a woman                                  
06 consuming alcohol during pregnancy in a shipment of alcoholic beverages sold in                                         
07 response to a written solicitation.                                                                                     
08    * Sec. 6.  AS 04.11.150(h) is repealed and reenacted to read:                                                        
09  (h)  If a shipment is to an area that has restricted the sale of alcoholic                                            
10 beverages under AS 04.11.491(a)(1), (2), or (3) or (b)(1) or (2), a package store                                       
11 licensee, agent, or employee may not ship to a purchaser more than 12 liters of                                         
12 distilled spirits, 24 liters or more of wine, or 12 gallons or more of malt beverages in                                
13 a calendar month.                                                                                                       
14    * Sec. 7.  AS 04.11.160 is amended by adding new subsections to read:                                                
15  (f)  A person who applies for issuance or renewal of a license under this                                             
16 section shall file, on forms provided by the board, the following information regarding                                 
17 each brand of alcoholic beverage that the person intends to purchase, offer for sale, or                                
18 sell:  (1) the full and correct brand or trade name; (2) the nature and type of the brand;                              
19 (3) the name of the distiller, brewer, vintner, or importer of the brand; and (4) a                                     
20 certification by the distiller, brewer, vintner, or importer of the brand that the person                               
21 is a primary source of supply for the brand.  In addition to the fees imposed under (a)                                 
22 and (b) of this section, a person filing under this subsection shall pay a biennial filing                              
23 fee of $50 for each brand of alcoholic beverage the person intends to purchase, offer                                   
24 for sale, or sell.  In this subsection, "distiller, brewer, vintner, or importer" includes                              
25 an exclusive agent of the distiller, brewer, vintner, or importer if the agent's name                                   
26 appears on the label of the brand approved by the Federal Bureau of Alcohol, Tobacco                                    
27 and Firearms.                                                                                                           
28  (g)  A person licensed under this section shall notify the board within 10 days                                       
29 of a change in a primary source of supply designation required under (f) of this                                        
30 section.                                                                                                                
31    * Sec. 8.  AS 04.16 is amended by adding a new section to read:                                                      
01  Sec. 04.16.172.  RESTRICTIONS ON PURCHASE AND SALE OF                                                                 
02 ALCOHOLIC BEVERAGES.  A person licensed under AS 04.11.090, 04.11.100,                                                  
03 04.11.110, or 04.11.150 may not purchase, sell, or offer for sale an alcoholic beverage                                 
04 unless the alcoholic beverage being purchased, sold, or offered for sale was obtained                                   
05 from a person licensed under                                                                                            
06   (1)  AS 04.11.160 as a primary source of supply for the alcoholic                                                    
07 beverage being purchased, sold, or offered for sale; or                                                                 
08   (2)  AS 04.11.130, 04.11.140, or 04.11.170.                                                                          
09    * Sec. 9.  AS 04.11.270(b) is amended to read:                                                                       
10  (b)  A license shall be renewed as follows:                                                                           
11   (1)  on or before November 1 [OF EACH YEAR], the director shall                                                      
12 mail a renewal application to each licensee whose license, unless renewed, will expire                                  
13 on December 31 of that year; the application shall be mailed to the licensee at the                                     
14 licensed premises or at a mailing address furnished by the licensee;                                                    
15   (2)  the licensee shall submit the completed renewal application and the                                             
16 biennial license fee to the director before January 1 [ON OR BEFORE                                                   
17 DECEMBER 31];                                                                                                           
18   (3)  a renewal application filed after December 31 is delinquent and                                                 
19 must be accompanied by a $500 [$200] 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. 10.  AS 04.11.320 is amended to read:                                                                         
23  Sec. 04.11.320.  DENIAL OF NEW LICENSES AND PERMITS.  (a)  An                                                         
24 application requesting issuance of a new license shall be denied if                                                     
25   (1)  the board finds, after review of all relevant information, that                                                 
26 issuance of the license would not be in the best interests of the public;                                               
27   (2)  issuance of the license is prohibited by AS 04.11.390, relating to                                              
28 residency, or AS 04.11.410, relating to location of premises near churches and schools;                                 
29   (3)  the application has not been completed in accordance with                                                       
30 AS 04.11.260;                                                                                                           
31   (4)  issuance of the license would violate the restrictions pertaining to                                            
01 the particular license imposed under this title;                                                                        
02   (5)  issuance of the license is prohibited under this title as a result of                                           
03 an election conducted under AS 04.11.507 [IN ACCORDANCE WITH                                                          
04 AS 04.11.502];                                                                                                          
05   (6)  the requirements of AS 04.11.420 - 04.11.450 relating to zoning,                                                
06 ownership and location of the license, and the identity and financing of a licensee have                                
07 not been met;                                                                                                           
08   (7)  [THE LICENSED PREMISES ARE TO BE LOCATED IN A                                                                   
09 MUNICIPALITY, THE TYPE OF LICENSE SOUGHT IS A BEVERAGE                                                                  
10 DISPENSARY OR PACKAGE STORE LICENSE, AND THAT TYPE OF LICENSE                                                           
11 IS ALREADY IN EFFECT IN THE MUNICIPALITY UNDER A COMMUNITY                                                              
12 LIQUOR LICENSE, UNLESS THE NEW LICENSE IS TO BECOME EFFECTIVE                                                           
13 AFTER THE COMMUNITY LIQUOR LICENSE IS NO LONGER EFFECTIVE,                                                              
14 WHETHER AS THE RESULT OF A LOCAL OPTION ELECTION OR                                                                     
15 OTHERWISE;                                                                                                              
16   (8)  THE AUTHORITY SOUGHT IS AUTHORITY TO OPERATE A                                                                  
17 BEVERAGE DISPENSARY OR PACKAGE STORE UNDER A COMMUNITY                                                                  
18 LIQUOR LICENSE FOR PREMISES TO BE LOCATED IN A MUNICIPALITY                                                             
19 WHERE THE AUTHORITY SOUGHT IS ALREADY HELD BY A PRIVATE                                                                 
20 LICENSEE UNDER A BEVERAGE DISPENSARY OR PACKAGE STORE                                                                   
21 LICENSE, UNLESS THE COMMUNITY LIQUOR LICENSE IS TO BECOME                                                               
22 EFFECTIVE AFTER THE PRIVATELY HELD LICENSE IS NO LONGER                                                                 
23 EFFECTIVE, WHETHER AS THE RESULT OF A LOCAL OPTION ELECTION OR                                                          
24 OTHERWISE;                                                                                                              
25   (9)]  issuance of the license is prohibited under AS 04.11.400(a) or                                                 
26 prohibition of issuance of the license is found necessary under AS 04.11.400(b);                                        
27   (8) [(10)]  the application contains false statements of material fact;                                            
28   (9) [(11)]  the license is sought for the sale of alcoholic beverages in a                                         
29 first or second class city where [IN WHICH] there are no licensed premises at the                                     
30 time of application unless a majority of the voters have voted not to approve [IN] a                                  
31 local option to restrict or prohibit the sale of alcoholic beverages under                                             
01 AS 04.11.491, have voted to approve a local option to allow the type of premises                                        
02 under AS 04.11.491(a)(2) or (3), or have voted to remove a restriction or                                               
03 prohibition on the sale of alcoholic beverages under AS 04.11.495 [ELECTION                                            
04 CONDUCTED IN ACCORDANCE WITH AS 04.11.502 HAVE VOTED "NO" ON                                                            
05 THE QUESTION SET OUT IN AS 04.11.490, OR HAVE VOTED "YES" ON A                                                          
06 QUESTION SET OUT IN AS 04.11.492 OR 04.11.500]; or                                                                    
07   (10) [(12)]  the license is sought for the sale of alcoholic beverages in                                          
08 an established village where [IN WHICH] there are no licensed premises at the time                                    
09 of application unless a majority of the voters have voted not to approve [IN] a local                                 
10 option to restrict or prohibit the sale of alcoholic beverages under AS 04.11.491,                                     
11 have voted to approve a local option to allow the type of premises under                                                
12 AS 04.11.491(b)(2), or have voted to remove a restriction or prohibition on the                                         
13 sale of alcoholic beverages under AS 04.11.495 [ELECTION CONDUCTED IN                                                  
14 ACCORDANCE WITH AS 04.11.502 HAVE VOTED "NO" ON THE QUESTION                                                            
15 SET OUT IN AS 04.11.490 OR HAVE VOTED "YES" ON THE QUESTION SET                                                         
16 OUT IN AS 04.11.500].                                                                                                   
17  (b)  An application requesting issuance of a new permit shall be denied if                                            
18   (1)  the board finds, after review of all relevant information, that                                                 
19 issuance of the permit would not be in the best interests of the public;                                                
20   (2)  the board finds that any of the statements made in the application                                              
21 are untrue;                                                                                                             
22   (3)  the application has not been completed in accordance with                                                       
23 AS 04.11.260; or                                                                                                      
24   (4)  the permit is sought for the sale of alcoholic beverages in a first or                                          
25 second class city or established village where [IN WHICH] there are no licensed                                       
26 premises at the time of application unless a majority of the voters have voted not to                                  
27 approve [IN] a local option to restrict or prohibit the sale of alcoholic beverages                                   
28 under AS 04.11.491, have voted to approve a local option to allow the type of                                           
29 permit under AS 04.11.491(a)(2) or (b)(2), or have voted to remove a restriction                                        
30 or prohibition on the sale of alcoholic beverages under AS 04.11.495 [ELECTION                                         
31 CONDUCTED IN ACCORDANCE WITH AS 04.11.502 HAVE VOTED "NO" ON                                                            
01 THE QUESTION SET OUT IN AS 04.11.490].                                                                                  
02    * Sec. 11.  AS 04.11.330(a) is amended to read:                                                                      
03  (a)  An application requesting renewal of a license shall be denied if                                                
04   (1)  the board finds, after review of all relevant information, that                                                 
05 renewal of the license would not be in the best interests of the public;                                                
06   (2)  the license has been revoked for any cause;                                                                     
07   (3)  the applicant has not operated the licensed premises for at least 30                                            
08 eight-hour days during each of the two preceding calendar years, unless the board                                       
09 determines that the licensed premises are under construction or cannot be operated                                      
10 through no fault of the applicant;                                                                                      
11   (4)  the board finds that issuance of an existing license under                                                      
12 AS 04.11.400(g) has not encouraged tourist trade;                                                                       
13   (5)  the requirements of AS 04.11.420 - 04.11.450 relating to zoning,                                                
14 ownership of the license, and financing of the licensee have not been met;                                              
15   (6)  renewal of the license would violate the conditions or restrictions                                           
16 pertaining to the particular license under this title;                                                                  
17   (7)  renewal of the license is prohibited under this title as a result of an                                         
18 election conducted under AS 04.11.507 [IN ACCORDANCE WITH AS 04.11.502];                                              
19   (8)  the application has not been completed in accordance with                                                       
20 AS 04.11.270; or                                                                                                      
21   (9)  the license was issued under AS 04.11.400(j), and the board finds                                               
22 that the public convenience does not require renewal.                                                                   
23    * Sec. 12.  AS 04.11.340 is amended to read:                                                                         
24  Sec. 04.11.340.  DENIAL OF REQUEST FOR RELOCATION.  An application                                                    
25 requesting approval for the relocation of licensed premises shall be denied if                                          
26   (1)  the board finds, after review of all relevant information, that                                                 
27 relocation of the license would not be in the best interests of the public;                                             
28   (2)  the relocation is prohibited under AS 04.11.400(a) or (b);                                                      
29   (3)  the license would be relocated out of the established village,                                                  
30 incorporated city, unified municipality, or population area established under                                           
31 AS 04.11.400(a) within which it is located;                                                                             
01   (4)  transfer of ownership is to be made concurrently with the relocation                                            
02 of the licensed premises and a ground for denial of the transfer of ownership under                                     
03 AS 04.11.360 is presented;                                                                                              
04   (5)  the application has not been completed in accordance with                                                       
05 AS 04.11.290;                                                                                                           
06   (6)  relocation of the license would result in violation of a local zoning                                           
07 law;                                                                                                                    
08   (7)  relocation of the license would violate the restrictions pertaining to                                          
09 the particular license imposed by this title;                                                                           
10   (8)  relocation of the license is prohibited under this title as a result of                                         
11 an election conducted under AS 04.11.507 [IN ACCORDANCE WITH                                                          
12 AS 04.11.502]; or                                                                                                     
13   (9)  [THE LICENSED PREMISES ARE TO BE LOCATED IN A                                                                   
14 MUNICIPALITY, THE TYPE OF LICENSE SOUGHT TO BE RELOCATED IS A                                                           
15 BEVERAGE DISPENSARY OR PACKAGE STORE LICENSE, AND THAT TYPE                                                             
16 OF LICENSE IS ALREADY IN EFFECT IN THE MUNICIPALITY UNDER A                                                             
17 COMMUNITY LIQUOR LICENSE, UNLESS THE RELOCATION IS TO BECOME                                                            
18 EFFECTIVE AFTER THE COMMUNITY LIQUOR LICENSE IS NO LONGER                                                               
19 EFFECTIVE, WHETHER AS THE RESULT OF A LOCAL OPTION ELECTION OR                                                          
20 OTHERWISE;                                                                                                              
21   (10)]  the license was issued under AS 04.11.400(g), (h), or (j).                                                    
22    * Sec. 13.  AS 04.11.360 is amended to read:                                                                         
23  Sec. 04.11.360.  DENIAL OF TRANSFER OF A LICENSE TO ANOTHER                                                           
24 PERSON.  An application requesting approval of a transfer of a license to another                                       
25 person under this title shall be denied if                                                                              
26   (1)  the board finds, after review of all relevant information, that transfer                                        
27 of a license to another person would not be in the best interests of the public;                                        
28   (2)  the application has not been completed in accordance with                                                       
29 AS 04.11.280;                                                                                                           
30   (3)  the application contains false statements of material fact;                                                     
31   (4)  the transferor has not paid all debts or taxes arising from the                                                 
01 conduct of the business licensed under this title unless                                                                
02   (A)  the transferor gives security for the payment of the debts                                                     
03 or taxes satisfactory to the creditor or taxing authority; or                                                           
04   (B)  the transfer is pursuant to a promise given as collateral by                                                   
05 the transferor to the transferee in the course of an earlier transfer of the license                                    
06 under which promise the transferor is obliged to transfer the license back to the                                       
07 transferee in the event of default in payment for property conveyed as part of                                          
08 the earlier transfer of the license;                                                                                    
09   (5)  transfer of the license to another person would result in violation                                             
10 of the provisions of this title relating to identity of licensees and financing of licensees;                           
11   (6)  transfer of the license to another person would violate the                                                     
12 restrictions pertaining to the particular license under this title;                                                     
13   (7)  transfer of the license to another person is prohibited under the                                               
14 provisions of this title as a result of an election conducted under AS 04.11.507 [IN                                  
15 ACCORDANCE WITH AS 04.11.502];                                                                                          
16   (8)  the prospective transferee does not have the qualifications required                                            
17 under this title of an original applicant;                                                                              
18   (9)  [THE LICENSED PREMISES ARE LOCATED IN A                                                                         
19 MUNICIPALITY, THE TYPE OF LICENSE SOUGHT TO BE TRANSFERRED IS                                                           
20 A BEVERAGE DISPENSARY OR PACKAGE STORE LICENSE, AND THAT TYPE                                                           
21 OF LICENSE IS ALREADY IN EFFECT IN THE MUNICIPALITY UNDER A                                                             
22 COMMUNITY LIQUOR LICENSE, UNLESS THE TRANSFER IS TO BECOME                                                              
23 EFFECTIVE AFTER THE COMMUNITY LIQUOR LICENSE IS NO LONGER                                                               
24 EFFECTIVE, WHETHER AS THE RESULT OF A LOCAL OPTION ELECTION OR                                                          
25 OTHERWISE;                                                                                                              
26   (10)  THE AUTHORITY SOUGHT IS AUTHORITY TO OPERATE                                                                   
27 A BEVERAGE DISPENSARY OR PACKAGE STORE UNDER A COMMUNITY                                                                
28 LIQUOR LICENSE FOR PREMISES TO BE LOCATED IN A MUNICIPALITY                                                             
29 WHERE THE AUTHORITY SOUGHT IS ALREADY HELD BY A PRIVATE                                                                 
30 LICENSEE UNDER A BEVERAGE DISPENSARY OR PACKAGE STORE                                                                   
31 LICENSE, UNLESS THE TRANSFER IS TO BECOME EFFECTIVE AFTER THE                                                           
01 PRIVATELY HELD LICENSE IS NO LONGER EFFECTIVE, WHETHER AS THE                                                           
02 RESULT OF A LOCAL OPTION ELECTION OR OTHERWISE;                                                                         
03   (11)]  the license was issued under AS 04.11.400(j); or                                                            
04   (10) [(12)]  the license was issued under AS 04.11.135, unless the                                                 
05 transferor is also applying to transfer the beverage dispensary license required under                                  
06 AS 04.11.135 to the same transferee.                                                                                    
07    * Sec. 14.  AS 04.11.370 is amended to read:                                                                         
08  Sec. 04.11.370.  SUSPENSION AND REVOCATION OF LICENSES AND                                                            
09 PERMITS.  A license or permit shall be suspended or revoked if the board finds                                          
10 [THAT ONE OR MORE OF THE FOLLOWING GROUNDS EXISTS:]                                                                     
11   (1)  misrepresentation of a material fact on an application made under                                              
12 this title or a regulation adopted under this title [FOR A LICENSE OR PERMIT];                                         
13   (2)  continuation of the manufacture, sale, or service of alcoholic                                                 
14 beverages by the licensee [ACTIVITIES AUTHORIZED UNDER A LICENSE OR                                                    
15 PERMIT] would be contrary to the best interests of the public;                                                          
16   (3)  failure on the part of the licensee to correct a defect [DEFECTS]                                             
17 that constitutes a violation [CONSTITUTE VIOLATIONS] of this title, a condition                                      
18 or restriction imposed under AS 04.11.395, a regulation [REGULATIONS] adopted                                          
19 under this title, or other laws [WITHIN A PRESCRIBED TIME] after receipt of notice                                      
20 issued by the board or its agent;                                                                                       
21   (4)  conviction of a licensee of a violation of [A PROVISION OF] this                                                
22 title, a regulation adopted under this title, or an ordinance adopted under AS 04.21.010;                               
23   (5)  conviction of an [THE] agent or employee of a licensee of a                                                   
24 violation of this title, a regulation adopted under this title, or an ordinance adopted                                 
25 under AS 04.21.010, if the licensee is found by the board to have either knowingly                                      
26 allowed the violation or to have recklessly or with criminal negligence failed to act in                                
27 accordance with the duty prescribed under AS 04.21.030 with the result that the [AN]                                  
28 agent or employee violates a law, regulation, or ordinance;                                                             
29   (6)  failure of the licensee to comply with the public health, fire, or                                             
30 safety laws and regulations [PERTAINING TO PUBLIC HEALTH] in the state;                                                
31   (7)  use of the licensed premises as a resort for illegal possessors or                                              
01 users of narcotics, prostitutes, or promoters of prostitution; in addition to any other                                 
02 legally competent evidence, the character of the premises may be proved by the                                          
03 general reputation of the premises in the community as a resort for illegal possessors                                  
04 or users of narcotics, prostitutes, or promoters of prostitution;                                                       
05   (8)  occurrence of illegal gambling within the limits of the licensed                                                
06 premises;                                                                                                               
07   (9)  the licensee permitted a [PERMITTING ANY] public offense                                                      
08 involving moral turpitude to occur on the licensed premises;                                                            
09   (10)  violation by a licensee of this title, a condition or restriction                                             
10 imposed under AS 04.11.395, a regulation adopted under this title, or an ordinance                                     
11 adopted under AS 04.21.010; or                                                                                        
12   (11)  violation by an agent or employee of a licensee of a provision of                                              
13 this title, a condition or restriction imposed under AS 04.11.395, a regulation                                       
14 adopted under this title, or an ordinance adopted under AS 04.21.010, if the licensee                                   
15 is found by the board to have either knowingly allowed the violation or to have                                         
16 recklessly or with criminal negligence failed to act in accordance with the duty                                        
17 prescribed under AS 04.21.030 with the result that the agent or employee violates the                                   
18 law, condition or restriction, regulation, or ordinance.                                                              
19    * Sec. 15.  AS 04.11 is amended by adding a new section to read:                                                     
20  Sec. 04.11.395.  BOARD IMPOSED CONDITIONS OR RESTRICTIONS.                                                            
21 The board may, in the best interests of the public, impose conditions or restrictions on                                
22 a license or permit issued under this chapter.                                                                          
23    * Sec. 16.  AS 04.11.400(a) is amended to read:                                                                      
24  (a)  Except as provided in (g), (h), (i), (j), and (k) of this section, a new license                                 
25 may not be issued and the board may prohibit relocation of an existing license                                          
26   (1)  outside an established village, incorporated city, unified                                                      
27 municipality, or organized borough if after the issuance or relocation there would be                                   
28 more than one restaurant or eating place license for each 1,500 population or fraction                                  
29 of that [1,500] population; or more than one license of each other type, including                                  
30 licenses that have been issued under (g) or (h) of this section, for each 3,000                                         
31 population or fraction of that [3,000] population; in a radius of five miles of the                                 
01 licensed premises [OR LOCATION OF PREMISES SOUGHT TO BE LICENSED],                                                      
02 excluding the populations of established villages, incorporated cities, unified                                         
03 municipalities, and organized boroughs that are wholly or partly included within the                                    
04 radius;                                                                                                                 
05   (2)  inside an established village, incorporated city, or unified                                                    
06 municipality if after the issuance or relocation there would be inside the established                                  
07 village, incorporated city, or unified municipality                                                                     
08   (A)  more than one restaurant or eating place license for each                                                    
09 1,500 population or fraction of that [1,500] population; or                                                         
10   (B)  more than one license of each other type, including licenses                                                 
11 that have been issued under (g) or (h) of this section, for each 3,000 population                                       
12 or fraction of that [3,000] population [INSIDE THE ESTABLISHED                                                        
13 VILLAGE, INCORPORATED CITY, OR UNIFIED MUNICIPALITY];                                                                   
14   (3)  inside an organized borough but outside an established village or                                               
15 incorporated city located within the borough, if after the issuance or relocation there                                 
16 would be inside the borough, but outside the established villages and incorporated                                      
17 cities located within the borough, more than one restaurant or eating place license for                                 
18 each 1,500 population or fraction of that [1,500] population; or more than one license                              
19 of each other type, including licenses that have been issued under (g) or (h) of this                                   
20 section, for each 3,000 population or fraction of that [3,000] population [INSIDE THE                                 
21 BOROUGH,] excluding the population of those established villages that have adopted                                     
22 a local option under AS 04.11.491(b)(1), (3), or (4) [CONDUCTED AN ELECTION                                            
23 ON A QUESTION SET OUT IN AS 04.11.490, 04.11.496, OR 04.11.500], and                                                    
24 excluding the population of incorporated cities located within the organized borough.                                   
25    * Sec. 17.  AS 04.11.480(a) is amended to read:                                                                      
26  (a)  A [IF A] local governing body may [WISHES TO] protest the issuance,                                          
27 renewal, relocation, [TRANSFER OF LOCATION] or transfer to another person of                                          
28 a license by sending [, IT SHALL FURNISH] the board and the applicant [WITH] a                                        
29 protest and the reasons for the protest within 30 days of receipt from the board of                                     
30 notice of filing of the application.  The local governing body may protest the                                         
31 continued operation of a license during the second year of the biennial license                                         
01 period by sending the board and the licensee a protest and the reasons for the                                          
02 protest by January 31 of the second year of the license.  The procedures for                                            
03 action on a protest of continued operation of a license are the same as the                                             
04 procedures for action on a protest of a renewal application.  The board shall                                          
05 consider a protest and testimony received at a hearing conducted under                                                  
06 AS 04.11.510(b)(2) or (b)(4) when it considers the application or continued                                            
07 operation, and the protest and the record of the hearing conducted under                                               
08 AS 04.11.510(b)(2) or (b)(4) shall be kept [RETAINED] as part of the board's                                          
09 permanent record of its review [OF THE APPLICATION].  If an application or                                             
10 continued operation is protested, the board shall deny [MAY NOT APPROVE] the                                         
11 application or continued operation unless the board finds that the protest is arbitrary,                              
12 capricious, and unreasonable.                                                                                           
13    * Sec. 18.  AS 04.11 is amended by adding a new section to read:                                                     
14  Sec. 04.11.491.  LOCAL OPTIONS.  (a)  If a majority of the persons voting                                             
15 on the question vote to approve the option, a municipality shall adopt a local option                                   
16 to prohibit                                                                                                             
17   (1)  the sale of alcoholic beverages;                                                                                
18   (2)  the sale of alcoholic beverages except by one or more of the                                                    
19 following listed on the ballot:                                                                                         
20   (A)  a restaurant or eating place licensee;                                                                         
21   (B)  a beverage dispensary licensee;                                                                                
22   (C)  a package store licensee; or                                                                                   
23   (D)  a caterer holding a permit under AS 04.11.230 to sell                                                          
24 alcoholic beverages at a site within the municipality who is also licensed under                                        
25 a beverage dispensary license for premises outside of the municipality;                                                 
26   (3)  the sale of alcoholic beverages except on premises operated by the                                              
27 municipality and under a type of licensed premises listed on the ballot, that may                                       
28 include one or more of the following:                                                                                   
29   (A)  a restaurant or eating place license;                                                                          
30   (B)  a beverage dispensary license; or                                                                              
31   (C)  a package store license;                                                                                       
01   (4)  the sale and importation of alcoholic beverages; or                                                             
02   (5)  the sale, importation, and possession of alcoholic beverages.                                                   
03  (b)  If a majority of the persons voting on the question vote to approve the                                          
04 option, an established village shall exercise a local option to prohibit                                                
05   (1)  the sale of alcoholic beverages;                                                                                
06   (2)  the sale of alcoholic beverages except by one or more of the                                                    
07 following listed on the ballot:                                                                                         
08   (A)  a restaurant or eating place licensee;                                                                         
09   (B)  a beverage dispensary licensee;                                                                                
10   (C)  a package store licensee; or                                                                                   
11   (D)  a caterer holding a permit under AS 04.11.230 to sell                                                          
12 alcoholic beverages at a site within the established village who is also licensed                                       
13 under a beverage dispensary license for premises outside of the established                                             
14 village;                                                                                                                
15   (3)  the sale and importation of alcoholic beverages; or                                                             
16   (4)  the sale, importation, and possession of alcoholic beverages.                                                   
17  (c)  A ballot question to adopt a local option under this section must at least                                       
18 contain language substantially similar to: "Shall (name of municipality or village)                                     
19 adopt a local option to prohibit (local option under (a) or (b) of this section)? (yes or                               
20 no)."                                                                                                                   
21  (d)  The ballot for an election on the option set out in (a)(2)(A), (a)(3)(A), or                                     
22 (b)(2)(A) of this section must include an explanation of the authority to sell alcoholic                                
23 beverages given to a restaurant or eating place.  The ballot for an election on the                                     
24 option set out in (a)(2)(B) or (D), (a)(3)(B), or (b)(2)(B) or (D) of this section must                                 
25 include a statement that a beverage dispensary license is commonly known as a "bar"                                     
26 and an explanation of the authority to sell alcoholic beverages given to a beverage                                     
27 dispensary licensee.  The ballot for an election on the option set out in (a)(2)(C),                                    
28 (a)(3)(C), or (b)(2)(C) of this section must include a statement that a package store                                   
29 license is commonly known as a "liquor store" and an explanation of the authority to                                    
30 sell alcoholic beverages given to a package store licensee.                                                             
31  (e)  If a municipality dissolves under AS 29.06.450(a) or (b), a local option                                         
01 adopted by the municipality under (a) of this section shall continue in effect as the                                   
02 corresponding local option under (b) of this section for an established village having                                  
03 the same perimeter as the previous boundaries of the municipality.  A license for                                       
04 premises operated by the municipality under AS 04.11.505 expires when the                                               
05 municipality dissolves.                                                                                                 
06  (f)  A municipality or established village that has adopted a local option under                                      
07 (a)(1), (2), or (3) or (b)(1) or (2) of this section may designate a site for the delivery                              
08 of alcoholic beverages to individuals in the area or a site for a person to bring                                       
09 alcoholic beverages if the alcoholic beverages are imported into the area.  This                                        
10 subsection does not apply to the delivery or importation of                                                             
11   (1)  one liter or less of distilled spirits, two liters or less of wine, or one                                      
12 gallon or less of malt beverages; or                                                                                    
13   (2)  alcoholic beverages to a premises licensed under (a)(2) - (3) or                                                
14 (b)(2) of this section.                                                                                                 
15    * Sec. 19.  AS 04.11 is amended by adding new sections to read:                                                      
16  Sec. 04.11.493.  CHANGE OF LOCAL OPTION.  (a)  If a majority of persons                                               
17 voting on the question vote to approve a different local option, a municipality or                                      
18 established village shall change a local option previously adopted under AS 04.11.491                                   
19 to the different approved option.                                                                                       
20  (b)  A ballot question to change a local option under this section must at least                                      
21 contain language substantially similar to: "Shall (name of municipality or village)                                     
22 change the local option currently in effect, that prohibits (current local option under                                 
23 AS 04.11.491), and adopt in its place a local option to prohibit (proposed local option                                 
24 under AS 04.11.491)? (yes or no)."                                                                                      
25  Sec. 04.11.495.  REMOVAL OF LOCAL OPTION.  (a)  If a majority of the                                                  
26 persons voting on the question vote to remove the option, a municipality or established                                 
27 village shall remove a local option previously adopted under AS 04.11.491.  The                                         
28 option is repealed effective the first day of the month following certification of the                                  
29 results of the election.                                                                                                
30  (b)  A ballot question to remove a local option under this section must at least                                      
31 contain language substantially similar to: "Shall (name of municipality or village)                                     
01 remove the local option currently in effect, that prohibits (current local option under                                 
02 AS 04.11.491), so that there is no longer any local option in effect? (yes or no)."                                     
03  (c)  When issuing a license in the area that has removed a local option, the                                          
04 board shall give priority to an applicant who was formerly licensed and whose license                                   
05 was not renewed because of the results of the previous local option election.  However,                                 
06 an applicant described in this subsection does not have a legal right to a license and                                  
07 the board is not required to approve the application.                                                                   
08    * Sec. 20.  AS 04.11 is amended by adding a new section to read:                                                     
09  Sec. 04.11.497.  EFFECT ON LICENSES OF PROHIBITION OF SALE.  If                                                       
10 a majority of voters vote to prohibit the sale of alcoholic beverages under                                             
11 AS 04.11.491(a)(1), (a)(4) or (5), (b)(1), or (b)(3) or (4), the board 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. 21.  AS 04.11 is amended by adding a new section to read:                                                     
21  Sec. 04.11.499.  PROHIBITION OF IMPORTATION AFTER ELECTION.  If                                                       
22 a majority of the voters vote to prohibit the importation of alcoholic beverages under                                  
23 AS 04.11.491(a)(4) or (5) or (b)(3) or (4), a person, beginning on the first day of the                                 
24 month following certification of the results of the election, may not knowingly send,                                   
25 transport, or bring an alcoholic beverage into the municipality or established village,                                 
26 unless the alcoholic beverage is sacramental wine to be used for bona fide religious                                    
27 purposes based on tenets or teachings of a church or religious body, is limited in                                      
28 quantity to the amount necessary for religious purposes, and is dispensed only for                                      
29 religious purposes by a person authorized by the church or religious body to dispense                                   
30 the sacramental wine.                                                                                                   
31    * Sec. 22.  AS 04.11 is amended by adding a new section to read:                                                     
01  Sec. 04.11.501.  PROHIBITION OF POSSESSION AFTER ELECTION.  (a)                                                       
02 If a majority of the voters vote to prohibit the possession of alcoholic beverages under                                
03 AS 04.11.491(a)(5) or (b)(4), a person may not knowingly possess an alcoholic                                           
04 beverage in the municipality or established village, unless the alcoholic beverage is                                   
05 sacramental wine to be used for bona fide religious purposes based on tenets or                                         
06 teachings of a church or religious body, is limited in quantity to the amount necessary                                 
07 for religious purposes, and is dispensed only for religious purposes, by a person                                       
08 recognized by the church or religious body as authorized to dispense the wine.                                          
09  (b)  If there are licensed premises within the municipality or established village,                                   
10 the prohibition on possession is effective beginning 90 days after the results of the                                   
11 election are certified.  If there are no licensed premises within the municipality or                                   
12 established village, the prohibition on possession is effective beginning 60 days after                                 
13 the results of the election are certified.                                                                              
14  (c)  Upon the adoption by a municipality of a local option under                                                      
15 AS 04.11.491(a)(5), an ordinance is adopted containing the provisions of this section.                                  
16  (d)  In this section, "possession" means having physical possession of or                                             
17 exercising dominion or control over an alcoholic beverage, but does not include having                                  
18 an alcoholic beverage within the digestive system of a person.                                                          
19    * Sec. 23.  AS 04.11 is amended by adding a new section to read:                                                     
20  Sec. 04.11.503.  EFFECT ON LICENSES OF RESTRICTION ON SALE.  If                                                       
21 a majority of the voters vote under AS 04.11.491(a)(2) or (b)(2) to prohibit sale of                                    
22 alcoholic beverages except by the type or types of licensees or permit holders listed                                   
23 on the ballot, the board may not issue, renew, or transfer between persons or locations                                 
24 a license for premises located within the boundaries of the municipality and in                                         
25 unincorporated areas within five miles of the boundaries of the municipality or within                                  
26 the perimeter of the established village, except the type or types of licenses listed on                                
27 the ballot.  A license in effect within the boundaries of the municipality or perimeter                                 
28 of the established village, and in unincorporated areas within five miles of the                                        
29 boundaries of the municipality, except the type of license listed on the ballot, are void                               
30 90 days after the results of the election are certified.  A license that expires during the                             
31 90 days after the results of a local option election are certified may be extended, until                               
01 it is void under this section, by payment of a prorated portion of the biennial license                                 
02 fee.                                                                                                                    
03    * Sec. 24.  AS 04.11 is amended by adding a new section to read:                                                     
04  Sec. 04.11.505.  LICENSING AFTER PROHIBITION ON SALE EXCEPT IN                                                        
05 PREMISES OPERATED BY MUNICIPALITY.  (a)  If a majority of the voters vote                                               
06 under AS 04.11.491(a)(3) to prohibit the sale of alcoholic beverages except on                                          
07 premises operated by the municipality, the board may not issue, renew, or transfer                                      
08 between persons or locations a license for premises located within the boundaries of                                    
09 a municipality and in unincorporated areas within five miles of the boundaries of the                                   
10 municipality, with the exception of the type of license listed on the ballot and operated                               
11 under a license held by the municipality.  A license in effect is void 90 days after the                                
12 results of the election are certified.  A license that expires during the 90 days after the                             
13 results of a local option election are certified may be extended, until it is void under                                
14 this subsection, by payment of a prorated portion of the biennial license fee.                                          
15  (b)  The local governing body of a municipality shall apply for a license to                                          
16 operate the type of licensed premises listed on the ballot under AS 04.11.491(a)(3) and                                 
17 approved by a majority of the voters.  The municipality shall operate the premises                                      
18 subject to the conditions and fees applicable to the type of license.  Nothing in this                                  
19 section precludes a municipality from applying to be a licensee under other provisions                                  
20 of this title.                                                                                                          
21    * Sec. 25.  AS 04.11 is amended by adding new sections to read:                                                      
22  Sec. 04.11.507.  PROCEDURE FOR LOCAL OPTION ELECTIONS.  (a)                                                           
23 Elections to adopt a local option under AS 04.11.491, change a local option under                                       
24 AS 04.11.493, or remove a local option under AS 04.11.495, shall be conducted as                                        
25 required in this section.                                                                                               
26  (b)  Upon receipt of a petition of a number of registered voters equal to 35                                          
27 percent or more of the number of votes cast at the last regular municipal election, the                                 
28 local governing body of a municipality shall place upon a separate ballot at the next                                   
29 regular election, or at a special election, whichever local option, change in local option,                             
30 or removal of local option constitutes the subject of the petition.  The local governing                                
31 body shall conduct the election under the election ordinance of the municipality.                                       
01  (c)  Upon receipt of a petition of 35 percent or more of the registered voters                                        
02 residing within an established village, the lieutenant governor shall place upon a                                      
03 separate ballot at a special election the local option, change in local option, or removal                              
04 of local option that constitutes the subject of the petition.  The lieutenant governor                                  
05 shall conduct the election under AS 15.                                                                                 
06  (d)  A petition filed with the local governing body of a municipality under (b)                                       
07 of this section, that places on the ballot the option set out in AS 04.11.491(a)(5),                                    
08 constitutes a proposed ordinance of the municipality.                                                                   
09  (e)  AS 29.26.110 - 29.26.160 apply to a petition under (b) of this section in                                        
10 a general law municipality except the                                                                                   
11   (1)  number of required signatures is determined under (b) of this                                                   
12 section rather than under AS 29.26.130;                                                                                 
13   (2)  application filed under AS 29.26.110 must at least contain language                                             
14 substantially similar to the questions set out under AS 04.11.491 - 04.11.495 rather                                    
15 than containing an ordinance or resolution;                                                                             
16   (3)  petition must at least contain language substantially similar to the                                            
17 questions set out under AS 04.11.491 - 04.11.495 rather than material required under                                    
18 AS 29.26.120(a)(1) and (2).                                                                                             
19  (f)  Notwithstanding any other provisions of law, an election under (b) or (c)                                        
20 of this section to remove a local option or to change to a less restrictive option than                                 
21 the local option previously adopted under AS 04.11.491 may not be conducted during                                      
22 the first 12 months after the local option was adopted or more than once in a 12-month                                  
23 period.                                                                                                                 
24  Sec. 04.11.509.  NOTICE OF THE RESULTS OF A LOCAL OPTION                                                              
25 ELECTION.  (a)  If a majority of the voters vote to prohibit, change, or remove a                                       
26 local option under AS 04.11.491 - 04.11.495, the clerk of the municipality, or, if the                                  
27 election is in an established village, the lieutenant governor shall notify the board of                                
28 the results of the election immediately after the results are certified.  The board shall                               
29 immediately notify the Department of Law and the Department of Public Safety of the                                     
30 results of the election.                                                                                                
31  (b)  If a majority of the voters vote to prohibit the importation or possession                                       
01 of alcoholic beverages under AS 04.11.491(a)(4) or (5) or (b)(3) or (4), the following                                  
02 actions in addition to those prescribed in (a) of this section shall be taken before the                                
03 date the prohibition becomes effective:                                                                                 
04   (1)  the board shall notify, by certified mail, all package store licensees                                          
05 who sell alcoholic beverages in response to a written solicitation of the local option;                                 
06 and                                                                                                                     
07   (2)  the municipality or established village shall post public notice of                                             
08 the prohibition in a central location in the municipality or village.                                                   
09    * Sec. 26.  AS 04.11.540 is amended to read:                                                                         
10  Sec. 04.11.540.  LICENSE RENEWAL AND EXPIRATION.  Notwithstanding                                                     
11 AS 04.11.680, an application for renewal of a license issued for the two calendar years                             
12 [YEAR] ending December 31 or of a seasonal license issued for parts of those                                         
13 calendar years [A SIX-MONTH PERIOD ENDING IN THE PREVIOUS YEAR] may                                                    
14 be submitted up until the next February 28 [, BUT THE AUTHORITY GRANTED                                                 
15 UNDER THE LICENSE MAY NOT BE EXERCISED UNTIL THE LICENSE IS                                                             
16 RENEWED].  If a complete [THE] application for renewal has [AND APPLICABLE                                          
17 AFFIDAVITS HAVE] not been filed by February 28 or the required fees and the                                             
18 penalty fees have not been paid by that date, the license expires at 12:00 midnight                                     
19 February 28.  A new license may not be issued to the holder of an expired license for                                   
20 the same premises except on proof satisfactory to the board of good cause for the                                       
21 failure to file and pay.                                                                                                
22    * Sec. 27.  AS 04.11.680(a) is amended to read:                                                                      
23  (a)  Upon application and payment of one-half [ONE-QUARTER] of the                                                  
24 biennial fee, the board may issue a seasonal license under this title that will be                                    
25 effective for a continuous six-month period in each of the biennial calendar years.                                   
26 Otherwise, all licenses issued under this title other than a retail stock sale license are                              
27 effective for the two calendar years ending December 31, unless a shorter period is                                     
28 prescribed by the board or by law.                                                                                      
29    * Sec. 28.  AS 04.16.110 is repealed and reenacted to read:                                                          
30  Sec. 04.16.110.  SALE OF CERTAIN ALCOHOLIC BEVERAGES                                                                  
31 PROHIBITED.  A person may not sell an alcoholic beverage if it                                                          
01   (1)  is not in liquid form; or                                                                                       
02   (2)  contains more than 76 percent alcohol by volume.                                                                
03    * Sec. 29.  AS 04.16.125(a) is amended to read:                                                                      
04  (a)  A person may not use a common carrier to transport alcoholic beverages                                           
05 into an area that has restricted the sale of alcoholic beverages under                                                  
06 AS 04.11.491(a)(1), (2), or (3) or (b)(1) or (2) [AS 04.11.490, 04.11.492, OR                                         
07 04.11.500] unless                                                                                                       
08   (1)  the shipping container holding the alcoholic beverages is clearly                                               
09 labeled as containing alcoholic beverages with letters that contrast in color to the                                    
10 shipping container and that are at least two inches in height; and                                                      
11   (2)  an itemized invoice showing the quantity and purchase value of                                                
12 distilled spirits, of wine, and of malt [THE ALCOHOLIC] beverages is attached to                                      
13 the outside of the shipping container.                                                                                  
14    * Sec. 30.  AS 04.16.125(b) is amended to read:                                                                      
15  (b)  This section does not apply to                                                                                   
16   (1)  a person transporting not more than                                                                           
17   (A)  two liters of wine;                                                                                        
18   (B)  one gallon of [OR] malt beverages; [,] or                                                                  
19   (C)  [NOT MORE THAN] one liter of distilled spirits; or                                                          
20   (2)  the transportation of alcoholic beverages for use on premises                                                   
21 allowed under AS 04.11.491(a)(2) - (3) or (b)(2) or for use under a permit allowed                                      
22 under AS 04.11.491(a)(2).                                                                                              
23    * Sec. 31.  AS 04.16.200(b) is amended to read:                                                                      
24  (b)  A person who violates AS 04.11.010 in an area that has adopted                                                 
25 [WHERE THE RESULTS OF] a local option under AS 04.11.491 [ELECTION                                                    
26 HAVE, UNDER AS 04.11.490 -  04.11.500, PROHIBITED THE BOARD FROM                                                        
27 ISSUING, RENEWING, OR TRANSFERRING ONE OR MORE TYPES OF                                                                 
28 LICENSES OR PERMITS UNDER THIS TITLE IN THE AREA] is, upon conviction,                                                  
29 guilty of a class C felony.                                                                                             
30    * Sec. 32.  AS 04.16.200(e) is amended to read:                                                                      
31  (e)  A person who sends, transports, or brings alcoholic beverages into a                                             
01 municipality or established village in violation of AS 04.11.499 [AS 04.11.496] is,                                   
02 upon conviction,                                                                                                        
03   (1)  guilty of a class A misdemeanor if the quantity imported is less                                                
04 than 12 liters of distilled spirits, 24 liters of wine, or 12 gallons [45 LITERS] of malt                             
05 beverages; or                                                                                                           
06   (2)  guilty of a class C felony if the quantity imported is 12 liters or                                             
07 more of distilled spirits, 24 liters or more of wine, or 12 gallons [45 LITERS] or more                               
08 of malt beverages.                                                                                                      
09    * Sec. 33.  AS 04.16.205(a) is amended to read:                                                                      
10  (a)  A person who possesses alcoholic beverages in a municipality or                                                  
11 established village in violation of AS 04.11.501 [AS 04.11.498] or an ordinance                                       
12 adopted under AS 04.11.501 [AS 04.11.498] may, upon conviction, be punished by a                                      
13 fine not to exceed $1,000.  When a peace officer stops or contacts a person concerning                                  
14 a violation of AS 04.11.501 [AS 04.11.498] or an ordinance adopted [ENACTED]                                        
15 under AS 04.11.501 [AS 04.11.498], the peace officer may [, IN THE OFFICER'S                                          
16 DISCRETION,] issue a citation to the person as provided in AS 12.25.180.                                                
17    * Sec. 34.  AS 04.16.205(b) is amended to read:                                                                      
18  (b)  A person cited for a violation of AS 04.11.501 [AS 04.11.498] or an                                            
19 ordinance adopted under AS 04.11.501 [AS 04.11.498] for which a bail amount has                                       
20 been established under (c) of this section may, within 30 days after the date the                                       
21 citation is issued.                                                                                                     
22   (1)  mail or personally deliver to the clerk of the court in which the                                               
23 citation is filed by the peace officer the amount of bail indicated on the citation and                                 
24 a copy of the citation indicating that the right to an appearance is waived, a plea of no                               
25 contest is entered and the bail and all alcoholic beverages seized are forfeited; or                                    
26   (2)  perform community work in lieu of payment of the fine or a portion                                              
27 of the fine as provided in (d) of this section.                                                                         
28    * Sec. 35.  AS 04.16.205(c) is amended to read:                                                                      
29  (c)  The supreme court shall establish by rule or order a schedule of bail                                            
30 amounts that may be forfeited without a court appearance for a violation of                                             
31 AS 04.11.501 [AS 04.11.498] or an ordinance adopted under AS 04.11.501                                              
01 [AS 04.11.498].  In establishing the bail schedule the supreme court may consider the                                   
02 quantity of alcoholic beverages possessed and the number of prior violations of the                                     
03 person cited. Before establishing or amending the schedule of bail amounts required                                     
04 by this subsection, the supreme court shall appoint and consult with an advisory                                        
05 committee consisting of the following seven persons:  one superior court judge, one                                     
06 magistrate from each judicial district in the state, a representative of the Department                                 
07 of Law, and a representative of the Public Defender Agency.  The maximum bail                                           
08 amount may not exceed $1,000, and the issuing officer shall write on the citation the                                   
09 amount of bail applicable to the violation.                                                                             
10    * Sec. 36.  AS 04.16.205(d) is amended to read:                                                                      
11  (d)  Community work shall be performed at the direction of the local governing                                      
12 body of the municipality or the local governing body of the established village.  In the                             
13 absence of a local governing body for an established village, community work                                            
14 shall be performed at the direction of the body that has traditionally performed                                        
15 public functions on behalf of the entire community.  The value of community work                                       
16 in lieu of a fine is $5.00 per hour.  When the community work is completed, the                                         
17 person cited for the violation shall mail or personally deliver to the clerk of the court                               
18 in which the citation is filed by the peace officer                                                                     
19   (1)  a form, prescribed by the administrative director of the Alaska                                                 
20 Court System, indicating completion of the community work; and                                                          
21   (2)  a copy of the citation, indicating that the right to an appearance is                                           
22 waived, a plea of no contest is entered, and that the bail is forfeited or community                                    
23 work has been performed and that all alcoholic beverages seized are forfeited.                                          
24    * Sec. 37.  AS 04.16.205(g) is amended to read:                                                                      
25  (g)  Notwithstanding other provisions of law, if a person cited for a violation                                       
26 of AS 04.11.501 [AS 04.11.498] or an ordinance adopted under AS 04.11.501                                           
27 [AS 04.11.498] for which a bail amount has been established under (c) of this section                                   
28 appears in court and is found guilty, the penalty that is imposed for the offense may                                   
29 not exceed the bail amount for that offense established under (c) of this section.                                      
30    * Sec. 38.  AS 04.16.205(h) is amended to read:                                                                      
31  (h)  A violation of AS 04.11.501 [AS 04.11.498] or an ordinance adopted under                                       
01 AS 04.11.501 [AS 04.11.498] may not be considered a criminal offense and may not                                      
02 result in imprisonment, nor is a fine imposed for a violation considered criminal                                       
03 punishment.  A person cited for a violation does not have a right to a jury trial or                                    
04 court appointed counsel.                                                                                                
05    * Sec. 39.  AS 04.16.220(a) is amended to read:                                                                      
06  (a)  The following are subject to forfeiture:                                                                         
07   (1)  alcoholic beverages manufactured, sold, offered for sale or                                                     
08 possessed for sale, bartered or exchanged for goods and services in this state in                                       
09 violation of AS 04.11.010; alcoholic beverages possessed, stocked, warehoused, or                                       
10 otherwise stored in violation of AS 04.21.060; alcoholic beverages sold or offered for                                  
11 sale in violation [IN AN AREA WHERE THE RESULTS] of a local option adopted                                         
12 under AS 04.11.491 [ELECTION HAVE, UNDER AS 04.11.490 - 04.11.500,                                                     
13 PROHIBITED THE POSSESSION OF ALCOHOLIC BEVERAGES OR                                                                     
14 PROHIBITED THE BOARD FROM ISSUING, RENEWING, OR TRANSFERRING                                                            
15 ONE OR MORE LICENSES OR PERMITS UNDER THIS TITLE IN THE AREA];                                                          
16 alcoholic beverages transported into the state and sold to persons not licensed under                                   
17 this chapter in violation of AS 04.16.170(b);                                                                           
18   (2)  materials and equipment used in the manufacture, sale, offering for                                             
19 sale, possession for sale, barter or exchange of alcoholic beverages for goods and                                      
20 services in this state in violation of AS 04.11.010; materials and equipment used in the                                
21 stocking, warehousing, or storage of alcoholic beverages in violation of AS 04.21.060;                                  
22 materials and equipment used in the sale or offering for sale of an alcoholic beverage                                  
23 in an area in violation [WHERE THE RESULTS] of a local option under                                                  
24 AS 04.11.491 [ELECTION HAVE, UNDER AS 04.11.490 - 04.11.500, PROHIBITED                                                
25 THE BOARD FROM ISSUING, RENEWING, OR TRANSFERRING ONE OR                                                                
26 MORE LICENSES OR PERMITS UNDER THIS TITLE IN THE AREA];                                                                 
27   (3)  aircraft, vehicles, or vessels used to transport, or facilitate the                                             
28 transportation of                                                                                                       
29   (A)  alcoholic beverages manufactured, sold, offered for sale or                                                    
30 possessed for sale, bartered or exchanged for goods and services in this state                                          
31 in violation of 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 [AS 04.11.496];                                                      
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    * Sec. 40.  AS 04.16.220(b) is amended to read:                                                                      
10  (b)  Property subject to forfeiture under this section may be actually or                                             
11 constructively seized under an order issued by the superior court upon a showing of                                     
12 probable cause that the property is subject to forfeiture under this section. Constructive                              
13 seizure is effected upon posting a signed notice of seizure on the item to be forfeited,                                
14 stating the violation and the date and place of seizure. Seizure without a court order                                  
15 may be made if                                                                                                          
16   (1)  the seizure is incident to a valid arrest or search;                                                            
17   (2)  the property subject to seizure is the subject of a prior judgment in                                           
18 favor of the state; or                                                                                                  
19   (3)  there is probable cause to believe that the property is subject to                                              
20 forfeiture under (a) of this section; except for alcoholic beverages possessed on                                       
21 violation of AS 04.11.501 [AS 04.11.498] or an ordinance adopted under AS 04.11.501                                 
22 [AS 04.11.498], property seized under this paragraph may not be held over 48 hours                                      
23 or until an order of forfeiture is issued by the court, whichever is earlier.                                           
24    * Sec. 41.  AS 04.16.220(d) is amended to read:                                                                      
25  (d)  Property subject to forfeiture under (a) of this section may be forfeited                                        
26   (1)  upon conviction of a person for a violation of [UNDER]                                                        
27 AS 04.11.010, 04.11.499, [04.11.496(b), OR] AS 04.21.060, or AS 04.11.501 [UPON                                   
28 ENTRY OF JUDGMENT UNDER AS 04.11.498] or an ordinance adopted under                                                     
29 AS 04.11.501 [AS 04.11.498]; or                                                                                     
30   (2)  upon judgment by the superior court in a proceeding in rem that the                                             
31 property was used in a manner subjecting it to forfeiture under (a) of this section.                                    
01    * Sec. 42.  AS 04.16.220(g) is amended to read:                                                                      
02  (g)  It is no defense in an in rem forfeiture proceeding brought under (d)(2) of                                      
03 this section that a criminal proceeding is pending or has resulted in conviction or                                     
04 acquittal of a person charged with violating AS 04.11.010, 04.11.499 [04.11.496(b)],                                  
05 or AS 04.21.060.                                                                                                        
06    * Sec. 43.  AS 04.21.010(a) is amended to read:                                                                      
07  (a)  A municipality may adopt ordinances governing the importation, barter,                                           
08 sale, and consumption of alcoholic beverages within the municipality and may ban                                        
09 possession of alcoholic beverages under AS 04.11.491(a)(5) [AS 04.11.498(d) OR (e)].                                  
10 An ordinance adopted under this section may not be inconsistent with this title or                                      
11 regulations adopted under this title.  An ordinance that limits the monthly amounts                                    
12 of alcoholic beverages a person may import into a municipality that has adopted                                         
13 a local option under AS 04.11.491(a)(1), (2), or (3) is not inconsistent with this                                      
14 title.                                                                                                                 
15    * Sec. 44.  AS 04.21.010(b) is amended to read:                                                                      
16  (b)  After the adoption of a local option under AS 04.11.491(a), a [IF, AS A                                        
17 RESULT OF AN ELECTION HELD IN ACCORDANCE WITH AS 04.11.502 IN A                                                         
18 MUNICIPALITY, THE BOARD IS PROHIBITED FROM ISSUING, RENEWING,                                                           
19 OR TRANSFERRING A LICENSE BETWEEN HOLDERS OR LOCATIONS OR IF                                                            
20 THE IMPORTATION OF ALCOHOLIC BEVERAGES IS PROHIBITED IN THE                                                             
21 MUNICIPALITY, THE] municipality may adopt an ordinance making the sale, [OR]                                          
22 importation, or possession of alcoholic beverages a misdemeanor to the extent                                        
23 prohibited under the local option.  The ordinance may not be inconsistent with this                                    
24 title or the regulations adopted under this title.                                                                      
25    * Sec. 45.  AS 04.21.015(b) is amended to read:                                                                      
26  (b)  This section does not apply to AS 04.16.050, 04.16.051, 04.16.080;                                               
27 AS 04.21.010, 04.21.020; alcoholic beverages manufactured in a quantity that exceeds                                    
28 the limit imposed on private manufacture under federal law; or an area that has                                         
29 adopted a local option law under AS 04.11.491 [AS 04.11.490 - 04.11.500].                                             
30    * Sec. 46.  AS 04.21.025(a) is amended to read:                                                                      
31  (a)  As a condition of issuance or renewal of a license and selling alcoholic                                         
01 beverages under a license, the board shall require a licensee who sells or serves                                       
02 alcoholic beverages and a licensee's agents and employees who sell or serve alcoholic                                   
03 beverages to complete an alcohol server education course approved by the board, if the                                  
04 license is for a                                                                                                        
05   (1)  beverage dispensary;                                                                                            
06   (2)  restaurant or eating place;                                                                                     
07   (3)  club;                                                                                                           
08   (4)  package store;                                                                                                  
09   (5)  [COMMON CARRIER DISPENSARY;                                                                                     
10   (6)]  recreational site;                                                                                             
11   (6) [(7)]  community;                                                                                              
12   (7) [(8)]  pub;                                                                                                    
13   (8) [(9)]  conditional contractor.                                                                                 
14    * Sec. 47.  AS 04.21.025 is amended by adding a new subsection to read:                                              
15  (e)  A person licensed as a common carrier dispensary shall train agents and                                          
16 employees who sell or serve alcoholic beverages on provisions of state law regarding                                    
17 sale of alcoholic beverages, including AS 04.16.015, 04.16.020, 04.16.030, 04.16.051,                                   
18 04.16.052, 04.16.120, 04.16.125, AS 04.21.030, and 04.21.050.  The training must                                        
19 include the subjects of the effects of alcohol consumption, identifying a drunken                                       
20 person, determining valid identification, intervention to prevent unlawful alcohol                                      
21 consumption, and penalties for unlawful acts by agents and employees of licensees.                                      
22 A common carrier licensee shall, once every three years, provide the board with a                                       
23 description of its training program including the subjects taught, teaching method, and                                 
24 testing required.                                                                                                       
25    * Sec. 48.  AS 04.21.080(b)(1) is amended to read:                                                                   
26   (1)  "alcoholic beverage" means a spirituous, vinous, malt or other                                                  
27 fermented or distilled liquid, whatever the origin, that is intended for human                                          
28 consumption as a beverage and that contains one-half of one percent or more of                                          
29 alcohol by volume, whether produced commercially or privately; however, in an area                                      
30 that has adopted a local option under AS 04.11.491 [LOCAL-OPTION                                                      
31 PROHIBITION UNDER AS 04.11.490 - 04.11.500], "alcoholic beverage" means a                                               
01 spirituous, vinous, malt, or other fermented or distilled liquid, whatever the origin, that                             
02 is intended for human consumption as a beverage by the person who possesses or                                         
03 attempts to possess it and that contains alcohol in any amount if the liquid is                                        
04 produced privately, or that contains one-half of one percent or more of alcohol by                                      
05 volume, if the liquid is produced commercially;                                                                         
06    * Sec. 49.  AS 04.21.080(b)(9) is amended to read:                                                                   
07   (9)  "established village" means an area not containing any part of                                                 
08 an incorporated city or another established village, that has a perimeter no more                                       
09 than 10 miles in diameter clearly designated on a map by the local governing                                            
10 body or the board in the absence of a local governing body, and that is                                                
11   (A)  an unincorporated community that is in the unorganized                                                         
12 borough and that has 25 or more permanent residents; or                                                                 
13   (B)  an unincorporated community that is in an organized                                                            
14 borough, has 25 or more permanent residents, and                                                                        
15   (i)  is on a road system and is located more than 50                                                               
16 miles outside the boundary limits of a unified municipality, or                                                         
17   (ii)  is not on a road system and is located more than 15                                                          
18 miles outside the boundary limits of a unified municipality;                                                            
19    * Sec. 50.  AS 15.07.064(g) is amended to read:                                                                      
20  (g)  In this section, "established village"  means an unincorporated                                                 
21 community that is in                                                                                                   
22   (A)  the unorganized borough and that has 25 or more                                                               
23 permanent residents; or                                                                                                 
24   (B)  an organized borough, has 25 or more permanent                                                                 
25 residents, and                                                                                                          
26   (i)  is on a road system and is located more than 50                                                               
27 miles outside the boundary limits of a unified municipality, or                                                         
28   (ii)  is not on a road system and is located more than                                                             
29 15 miles outside the boundary limits of a unified municipality                                                         
30 [HAS THE MEANING GIVEN IN AS 04.21.080].                                                                                
31    * Sec. 51.  AS 18.65.085(a) is amended to read:                                                                      
01  (a)  There is established in the Department of Public Safety, division of state                                       
02 troopers, a narcotic drugs and alcohol enforcement unit for the purpose of investigating                                
03 and combating the illicit sale and distribution of narcotic drugs and alcoholic beverages                               
04 in the state. Enforcement of the alcoholic beverage control laws shall focus primarily                                  
05 on the investigation, apprehension,  and conviction of persons who violate                                              
06 AS 04.11.010 by selling, importing, or possessing alcoholic beverages in violation of                                   
07 a local option [AN ORDINANCE] adopted by a municipality or established village                                        
08 under AS 04.11.491 [AS 04.11.490 - 04.11.500].                                                                        
09    * Sec. 52.  AS 18.65.085(c) is amended to read:                                                                      
10  (c)  The Department of Public Safety may establish and administer a reward                                            
11 program, and provide grants to municipalities, established villages, and, at the request                                
12 of a municipality or established village, to a nonprofit association that administers a                                 
13 village public safety officer program, for reward programs  leading to the apprehension                                 
14 and conviction of persons who violate AS 04.11.010 by selling, importing, or                                            
15 possessing alcoholic beverages in violation of a local option [AN ORDINANCE]                                          
16 adopted by a municipality or established village under AS 04.11.491 [AS 04.11.490                                     
17 - 04.11.500].                                                                                                           
18    * Sec. 53.  AS 29.20.270(e) is amended to read:                                                                      
19  (e)  The veto does not extend to an ordinance adopted under AS 04.11.501                                            
20 [AS 04.11.498].  This subsection applies to home rule and general law municipalities.                                   
21    * Sec. 54.  AS 29.25.020(d) is amended to read:                                                                      
22  (d)  This section does not apply to an ordinance proposed under                                                       
23 AS 04.11.507(d) [AS 04.11.502(c)].                                                                                    
24    * Sec. 55.  AS 29.25.070(d) is amended to read:                                                                      
25  (d)  This section does not apply to an ordinance adopted under AS 04.11.501(c)                                      
26 [AS 04.11.498(d) OR (e)].                                                                                               
27    * Sec. 56.  AS 29.35.080(a) is amended to read:                                                                      
28  (a)  A municipality may regulate the possession, barter, sale, importation, and                                     
29 consumption of alcoholic beverages under AS 04.11.480 - 04.11.509 [IN                                                 
30 ACCORDANCE WITH AS 04.11.480  - 04.11.506] and AS 04.21.010.                                                            
31     * Sec. 57.  AS 47.37.045(e) is amended to read:                                                                     
01  (e)  In this section,                                                                                                 
02   (1)  "established village" means an unincorporated community that                                                   
03 is in                                                                                                                   
04   (A)  the unorganized borough and that has 25 or more                                                                
05 permanent residents; or                                                                                                 
06   (B)  an organized borough, has 25 or more permanent                                                                 
07 residents, and                                                                                                          
08   (i)  is on a road system and is located more than 50                                                               
09 miles outside the boundary limits of a unified municipality, or                                                         
10   (ii)  is not on a road system and is located more than                                                             
11 15 miles outside the boundary limits of a unified municipality                                                         
12 [HAS THE MEANING GIVEN IN AS 04.21.080(b)];                                                                             
13   (2)  "local governing body" has the meaning given in AS 04.21.080(b);                                                
14   (3)  "nonprofit organization" means an organization that qualifies for                                               
15 exemption from taxation under 26 U.S.C. 501(c)(3) or (4) (Internal Revenue Code).                                       
16    * Sec. 58.  AS 04.11.190, 04.11.490, 04.11.492, 04.11.496, 04.11.498, 04.11.500, 04.11.502,                          
17 04.11.504, 04.11.506, and 04.11.510(d) are repealed.                                                                    
18    * Sec. 59.  TRANSITION:  LOCAL OPTIONS EARLIER ADOPTED.  Notwithstanding                                             
19 the provisions of this Act, local options adopted by an area under AS 04.11.490, 04.11.492,                             
20 04.11.496, 04.11.498, or 04.11.500 or previous local option laws before the effective date of                           
21 this Act shall continue in effect until changed under AS 04.11.493 or removed under                                     
22 AS 04.11.495.  References in this Act to local option elections conducted under AS 04.11.491,                           
23 04.11.493, 04.11.495, 04.11.497, 04.11.499, 04.11.501, 04.11.503, 04.11.505, and 04.11.507                              
24 are to be interpreted to include local option elections conducted under AS 04.11.490,                                   
25 04.11.492, 04.11.496, 04.11.498, 04.11.500, or 04.11.502 or previous local option laws in                               
26 effect before the effective date of this Act.                                                                           
27    * Sec. 60.  TRANSITION:  COMMUNITY LIQUOR LICENSES.  A community liquor                                              
28 license issued under AS 04.11.190 before the effective date of this Act to operate a beverage                           
29 dispensary shall continue as a beverage dispensary license under AS 04.11.090.  A community                             
30 liquor license issued under AS 04.11.190 before the effective date of this Act to operate a                             
31 package store shall continue as a package store license under AS 04.11.150.                                             
01    * Sec. 61.  TRANSITION. A person licensed under AS 04.11.160 on the effective date of                                
02 this section shall submit the information required under AS 04.11.160(f), added by sec. 7 of                            
03 this Act, by September 30, 1994.                                                                                        
04    * Sec. 62.  This Act takes effect July 1, 1994.