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SB 372: "An Act relating to community local options for control of alcoholic beverages; relating to the control of alcoholic beverages; relating to the definition of `alcoholic beverage'; and providing for an effective date."

00SENATE BILL NO. 372 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'; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 04.11.010(b) is amended to read: 06 (b) A person may not solicit or receive orders for the delivery of an alcoholic 07 beverage in an area that has adopted a local option under AS 04.11.491. If the 08 area has adopted a local option under AS 04.11.491(a)(1), (2), or (3), or (b)(1) or 09 (2), a package store licensee outside of that local option area may receive orders 10 as provided under AS 04.11.150 but may not solicit in that area or receive orders 11 through an agent or employee in that area. This subsection does not apply to a 12 package store licensee who operates a package store in an area that has adopted 13 a local option under AS 04.11.491(a)(2)(C) or (3)(C) or (b)(2)(C) [WHERE THE 14 RESULTS OF A LOCAL OPTION ELECTION HAVE, UNDER AS 04.11.490 -

01 04.11.500, PROHIBITED THE BOARD FROM ISSUING, RENEWING OR 02 TRANSFERRING ONE OR MORE TYPES OF LICENSES OR PERMITS UNDER 03 THIS TITLE, UNLESS THE PERSON IS LICENSED UNDER THIS TITLE AND 04 THE ORDER IS ACTUALLY RECEIVED BY THAT PERSON FROM THE 05 PURCHASER OF THE ALCOHOLIC BEVERAGE]. A person who violates this 06 subsection is punishable upon conviction as provided under AS 04.16.200(a) or (b). 07 * Sec. 2. AS 04.11.010(c) is amended to read: 08 (c) In a criminal prosecution for possession of alcoholic beverages for sale in 09 violation of (a) of this section, the fact that a person possessed more than 12 liters of 10 distilled spirits, 24 liters or more of wine, or 12 gallons [45 LITERS] or more of malt 11 beverages in an area where the sale of alcoholic beverages is restricted or prohibited 12 under AS 04.11.491 [AS 04.11.490, 04.11.492, 04.11.496, OR 04.11.500] creates a 13 presumption that the person possessed the alcoholic beverages for sale. 14 * Sec. 3. AS 04.11.110(d) is amended to read: 15 (d) Alcoholic beverages sold under a club license may be purchased only by 16 (1) members of the club and their families, (2) widows or widowers of deceased 17 members who have been given [ACCORDED] club privileges, and (3) military 18 personnel [IN UNIFORM] on active duty who are extended the privilege by patriotic 19 organizations upon special occasions. Alcoholic beverages may be purchased only in 20 the portion of the club rooms that are [PART OF THE] licensed premises. 21 * Sec. 4. AS 04.11.135(b) is amended to read: 22 (b) Except as provided under AS 04.11.360(10) [AS 04.11.360(12)], the 23 brewpub license is not transferable, shall remain the property of the state, and is not 24 subject to any form of alienation. 25 * Sec. 5. AS 04.11.150(a) is repealed and reenacted to read: 26 (a) Except as provided under (h) of this section, a package store license 27 authorizes the licensee to sell alcoholic beverages to a person present on the licensed 28 premises or to a person known to the licensee who makes a written solicitation to that 29 licensee for shipment. A licensee, agent, or employee may only ship alcoholic 30 beverages to the person who is purchasing the alcoholic beverages being shipped. 31 Before commencing the practice of shipping alcoholic beverages, and with a

01 subsequent application to renew the license, a licensee shall notify the board in writing 02 of the licensee's intention to ship alcoholic beverages in response to a written 03 solicitation. The package store licensee, agent, or employee shall include written 04 information on fetal alcohol syndrome and fetal alcohol effects resulting from a woman 05 consuming alcohol during pregnancy in a shipment of alcoholic beverages sold in 06 response to a written solicitation. 07 * Sec. 6. AS 04.11.150(h) is repealed and reenacted to read: 08 (h) If a shipment is to an area that has restricted the sale of alcoholic 09 beverages under AS 04.11.491(a)(1), (2), or (3) or (b)(1) or (2), a package store 10 licensee, agent, or employee may not ship to a purchaser 11 (1) more than 12 liters of distilled spirits, 24 liters or more of wine, or 12 12 gallons or more of malt beverages in a calendar month; or 13 (2) an alcoholic beverage that contains more than 75 percent alcohol 14 by volume. 15 * Sec. 7. AS 04.11.270(b) is amended to read: 16 (b) A license shall be renewed as follows: 17 (1) on or before November 1 [OF EACH YEAR], the director shall 18 mail a renewal application to each licensee whose license, unless renewed, will expire 19 on December 31 of that year; the application shall be mailed to the licensee at the 20 licensed premises or at a mailing address furnished by the licensee; 21 (2) the licensee shall submit the completed renewal application and the 22 biennial license fee to the director before January 1 [ON OR BEFORE 23 DECEMBER 31]; 24 (3) a renewal application filed after December 31 is delinquent and 25 must be accompanied by a $500 [$200] penalty fee; 26 (4) if December 31 falls on a weekend or a state holiday, the deadline 27 is extended to the first business day following December 31. 28 * Sec. 8. AS 04.11.320 is amended to read: 29 Sec. 04.11.320. DENIAL OF NEW LICENSES AND PERMITS. (a) An 30 application requesting issuance of a new license shall be denied if 31 (1) the board finds, after review of all relevant information, that

01 issuance of the license would not be in the best interests of the public; 02 (2) issuance of the license is prohibited by AS 04.11.390, relating to 03 residency, or AS 04.11.410, relating to location of premises near churches and schools; 04 (3) the application has not been completed in accordance with 05 AS 04.11.260; 06 (4) issuance of the license would violate the restrictions pertaining to 07 the particular license imposed under this title; 08 (5) issuance of the license is prohibited under this title as a result of 09 an election conducted under AS 04.11.507 [IN ACCORDANCE WITH 10 AS 04.11.502]; 11 (6) the requirements of AS 04.11.420 - 04.11.450 relating to zoning, 12 ownership and location of the license, and the identity and financing of a licensee have 13 not been met; 14 (7) [THE LICENSED PREMISES ARE TO BE LOCATED IN A 15 MUNICIPALITY, THE TYPE OF LICENSE SOUGHT IS A BEVERAGE 16 DISPENSARY OR PACKAGE STORE LICENSE, AND THAT TYPE OF LICENSE 17 IS ALREADY IN EFFECT IN THE MUNICIPALITY UNDER A COMMUNITY 18 LIQUOR LICENSE, UNLESS THE NEW LICENSE IS TO BECOME EFFECTIVE 19 AFTER THE COMMUNITY LIQUOR LICENSE IS NO LONGER EFFECTIVE, 20 WHETHER AS THE RESULT OF A LOCAL OPTION ELECTION OR 21 OTHERWISE; 22 (8) THE AUTHORITY SOUGHT IS AUTHORITY TO OPERATE A 23 BEVERAGE DISPENSARY OR PACKAGE STORE UNDER A COMMUNITY 24 LIQUOR LICENSE FOR PREMISES TO BE LOCATED IN A MUNICIPALITY 25 WHERE THE AUTHORITY SOUGHT IS ALREADY HELD BY A PRIVATE 26 LICENSEE UNDER A BEVERAGE DISPENSARY OR PACKAGE STORE 27 LICENSE, UNLESS THE COMMUNITY LIQUOR LICENSE IS TO BECOME 28 EFFECTIVE AFTER THE PRIVATELY HELD LICENSE IS NO LONGER 29 EFFECTIVE, WHETHER AS THE RESULT OF A LOCAL OPTION ELECTION OR 30 OTHERWISE; 31 (9)] issuance of the license is prohibited under AS 04.11.400(a) or

01 prohibition of issuance of the license is found necessary under AS 04.11.400(b); 02 (8) [(10)] the application contains false statements of material fact; 03 (9) [(11)] the license is sought for the sale of alcoholic beverages in a 04 first or second class city where [IN WHICH] there are no licensed premises at the 05 time of application unless a majority of the voters have voted not to approve [IN] a 06 local option to restrict or prohibit the sale of alcoholic beverages under 07 AS 04.11.491, have voted to approve a local option to allow the type of premises 08 under AS 04.11.491(a)(2) or (3), or have voted to remove a restriction or 09 prohibition on the sale of alcoholic beverages under AS 04.11.495 [ELECTION 10 CONDUCTED IN ACCORDANCE WITH AS 04.11.502 HAVE VOTED "NO" ON 11 THE QUESTION SET OUT IN AS 04.11.490, OR HAVE VOTED "YES" ON A 12 QUESTION SET OUT IN AS 04.11.492 OR 04.11.500]; or 13 (10) [(12)] the license is sought for the sale of alcoholic beverages in 14 an established village where [IN WHICH] there are no licensed premises at the time 15 of application unless a majority of the voters have voted not to approve [IN] a local 16 option to restrict or prohibit the sale of alcoholic beverages under AS 04.11.491, 17 have voted to approve a local option to allow the type of premises under 18 AS 04.11.491(b)(2), or have voted to remove a restriction or prohibition on the 19 sale of alcoholic beverages under AS 04.11.495 [ELECTION CONDUCTED IN 20 ACCORDANCE WITH AS 04.11.502 HAVE VOTED "NO" ON THE QUESTION 21 SET OUT IN AS 04.11.490 OR HAVE VOTED "YES" ON THE QUESTION SET 22 OUT IN AS 04.11.500]. 23 (b) An application requesting issuance of a new permit shall be denied if 24 (1) the board finds, after review of all relevant information, that 25 issuance of the permit would not be in the best interests of the public; 26 (2) the board finds that any of the statements made in the application 27 are untrue; 28 (3) the application has not been completed in accordance with 29 AS 04.11.260; or 30 (4) the permit is sought for the sale of alcoholic beverages in a first or 31 second class city or established village where [IN WHICH] there are no licensed

01 premises at the time of application unless a majority of the voters have voted not to 02 approve [IN] a local option to restrict or prohibit the sale of alcoholic beverages 03 under AS 04.11.491, have voted to approve a local option to allow the type of 04 permit under AS 04.11.491(a)(2) or (b)(2), or have voted to remove a restriction 05 or prohibition on the sale of alcoholic beverages under AS 04.11.495 [ELECTION 06 CONDUCTED IN ACCORDANCE WITH AS 04.11.502 HAVE VOTED "NO" ON 07 THE QUESTION SET OUT IN AS 04.11.490]. 08 * Sec. 9. AS 04.11.330(a) is amended to read: 09 (a) An application requesting renewal of a license shall be denied if 10 (1) the board finds, after review of all relevant information, that 11 renewal of the license would not be in the best interests of the public; 12 (2) the license has been revoked for any cause; 13 (3) the applicant has not operated the licensed premises for at least 30 14 eight-hour days during each of the two preceding calendar years, unless the board 15 determines that the licensed premises are under construction or cannot be operated 16 through no fault of the applicant; 17 (4) the board finds that issuance of an existing license under 18 AS 04.11.400(g) has not encouraged tourist trade; 19 (5) the requirements of AS 04.11.420 - 04.11.450 relating to zoning, 20 ownership of the license, and financing of the licensee have not been met; 21 (6) renewal of the license would violate the conditions or restrictions 22 pertaining to the particular license under this title; 23 (7) renewal of the license is prohibited under this title as a result of an 24 election conducted under AS 04.11.507 [IN ACCORDANCE WITH AS 04.11.502]; 25 (8) the application has not been completed in accordance with 26 AS 04.11.270; or 27 (9) the license was issued under AS 04.11.400(j), and the board finds 28 that the public convenience does not require renewal. 29 * Sec. 10. AS 04.11.340 is amended to read: 30 Sec. 04.11.340. DENIAL OF REQUEST FOR RELOCATION. An application 31 requesting approval for the relocation of licensed premises shall be denied if

01 (1) the board finds, after review of all relevant information, that 02 relocation of the license would not be in the best interests of the public; 03 (2) the relocation is prohibited under AS 04.11.400(a) or (b); 04 (3) the license would be relocated out of the established village, 05 incorporated city, unified municipality, or population area established under 06 AS 04.11.400(a) within which it is located; 07 (4) transfer of ownership is to be made concurrently with the relocation 08 of the licensed premises and a ground for denial of the transfer of ownership under 09 AS 04.11.360 is presented; 10 (5) the application has not been completed in accordance with 11 AS 04.11.290; 12 (6) relocation of the license would result in violation of a local zoning 13 law; 14 (7) relocation of the license would violate the restrictions pertaining to 15 the particular license imposed by this title; 16 (8) relocation of the license is prohibited under this title as a result of 17 an election conducted under AS 04.11.507 [IN ACCORDANCE WITH 18 AS 04.11.502]; or 19 (9) [THE LICENSED PREMISES ARE TO BE LOCATED IN A 20 MUNICIPALITY, THE TYPE OF LICENSE SOUGHT TO BE RELOCATED IS A 21 BEVERAGE DISPENSARY OR PACKAGE STORE LICENSE, AND THAT TYPE 22 OF LICENSE IS ALREADY IN EFFECT IN THE MUNICIPALITY UNDER A 23 COMMUNITY LIQUOR LICENSE, UNLESS THE RELOCATION IS TO BECOME 24 EFFECTIVE AFTER THE COMMUNITY LIQUOR LICENSE IS NO LONGER 25 EFFECTIVE, WHETHER AS THE RESULT OF A LOCAL OPTION ELECTION OR 26 OTHERWISE; 27 (10)] the license was issued under AS 04.11.400(g), (h), or (j). 28 * Sec. 11. AS 04.11.360 is amended to read: 29 Sec. 04.11.360. DENIAL OF TRANSFER OF A LICENSE TO ANOTHER 30 PERSON. An application requesting approval of a transfer of a license to another 31 person under this title shall be denied if

01 (1) the board finds, after review of all relevant information, that transfer 02 of a license to another person would not be in the best interests of the public; 03 (2) the application has not been completed in accordance with 04 AS 04.11.280; 05 (3) the application contains false statements of material fact; 06 (4) the transferor has not paid all debts or taxes arising from the 07 conduct of the business licensed under this title unless 08 (A) the transferor gives security for the payment of the debts 09 or taxes satisfactory to the creditor or taxing authority; or 10 (B) the transfer is pursuant to a promise given as collateral by 11 the transferor to the transferee in the course of an earlier transfer of the license 12 under which promise the transferor is obliged to transfer the license back to the 13 transferee in the event of default in payment for property conveyed as part of 14 the earlier transfer of the license; 15 (5) transfer of the license to another person would result in violation 16 of the provisions of this title relating to identity of licensees and financing of licensees; 17 (6) transfer of the license to another person would violate the 18 restrictions pertaining to the particular license under this title; 19 (7) transfer of the license to another person is prohibited under the 20 provisions of this title as a result of an election conducted under AS 04.11.507 [IN 21 ACCORDANCE WITH AS 04.11.502]; 22 (8) the prospective transferee does not have the qualifications required 23 under this title of an original applicant; 24 (9) [THE LICENSED PREMISES ARE LOCATED IN A 25 MUNICIPALITY, THE TYPE OF LICENSE SOUGHT TO BE TRANSFERRED IS 26 A BEVERAGE DISPENSARY OR PACKAGE STORE LICENSE, AND THAT TYPE 27 OF LICENSE IS ALREADY IN EFFECT IN THE MUNICIPALITY UNDER A 28 COMMUNITY LIQUOR LICENSE, UNLESS THE TRANSFER IS TO BECOME 29 EFFECTIVE AFTER THE COMMUNITY LIQUOR LICENSE IS NO LONGER 30 EFFECTIVE, WHETHER AS THE RESULT OF A LOCAL OPTION ELECTION OR 31 OTHERWISE;

01 (10) THE AUTHORITY SOUGHT IS AUTHORITY TO OPERATE 02 A BEVERAGE DISPENSARY OR PACKAGE STORE UNDER A COMMUNITY 03 LIQUOR LICENSE FOR PREMISES TO BE LOCATED IN A MUNICIPALITY 04 WHERE THE AUTHORITY SOUGHT IS ALREADY HELD BY A PRIVATE 05 LICENSEE UNDER A BEVERAGE DISPENSARY OR PACKAGE STORE 06 LICENSE, UNLESS THE TRANSFER IS TO BECOME EFFECTIVE AFTER THE 07 PRIVATELY HELD LICENSE IS NO LONGER EFFECTIVE, WHETHER AS THE 08 RESULT OF A LOCAL OPTION ELECTION OR OTHERWISE; 09 (11)] the license was issued under AS 04.11.400(j); or 10 (10) [(12)] the license was issued under AS 04.11.135, unless the 11 transferor is also applying to transfer the beverage dispensary license required under 12 AS 04.11.135 to the same transferee. 13 * Sec. 12. AS 04.11.370 is amended to read: 14 Sec. 04.11.370. SUSPENSION AND REVOCATION OF LICENSES AND 15 PERMITS. A license or permit shall be suspended or revoked if the board finds 16 [THAT ONE OR MORE OF THE FOLLOWING GROUNDS EXISTS:] 17 (1) misrepresentation of a material fact on an application made under 18 this title or a regulation adopted under this title [FOR A LICENSE OR PERMIT]; 19 (2) continuation of the manufacture, sale, or service of alcoholic 20 beverages by the licensee [ACTIVITIES AUTHORIZED UNDER A LICENSE OR 21 PERMIT] would be contrary to the best interests of the public; 22 (3) failure on the part of the licensee to correct a defect [DEFECTS] 23 that constitutes a violation [CONSTITUTE VIOLATIONS] of this title, a condition 24 or restriction imposed under AS 04.11.395, a regulation [REGULATIONS] adopted 25 under this title, or other laws [WITHIN A PRESCRIBED TIME] after receipt of notice 26 issued by the board or its agent; 27 (4) conviction of a licensee of a violation of [A PROVISION OF] this 28 title, a regulation adopted under this title, or an ordinance adopted under AS 04.21.010; 29 (5) conviction of an [THE] agent or employee of a licensee of a 30 violation of this title, a regulation adopted under this title, or an ordinance adopted 31 under AS 04.21.010, if the licensee is found by the board to have either knowingly

01 allowed the violation or to have recklessly or with criminal negligence failed to act in 02 accordance with the duty prescribed under AS 04.21.030 with the result that the [AN] 03 agent or employee violates a law, regulation, or ordinance; 04 (6) failure of the licensee to comply with the public health, fire, or 05 safety laws and regulations [PERTAINING TO PUBLIC HEALTH] in the state; 06 (7) use of the licensed premises as a resort for illegal possessors or 07 users of narcotics, prostitutes, or promoters of prostitution; in addition to any other 08 legally competent evidence, the character of the premises may be proved by the 09 general reputation of the premises in the community as a resort for illegal possessors 10 or users of narcotics, prostitutes, or promoters of prostitution; 11 (8) occurrence of illegal gambling within the limits of the licensed 12 premises; 13 (9) the licensee permitted a [PERMITTING ANY] public offense 14 involving moral turpitude to occur on the licensed premises; 15 (10) violation by a licensee of this title, a condition or restriction 16 imposed under AS 04.11.395, a regulation adopted under this title, or an ordinance 17 adopted under AS 04.21.010; or 18 (11) violation by an agent or employee of a licensee of a provision of 19 this title, a condition or restriction imposed under AS 04.11.395, a regulation 20 adopted under this title, or an ordinance adopted under AS 04.21.010, if the licensee 21 is found by the board to have either knowingly allowed the violation or to have 22 recklessly or with criminal negligence failed to act in accordance with the duty 23 prescribed under AS 04.21.030 with the result that the agent or employee violates the 24 law, condition or restriction, regulation, or ordinance. 25 * Sec. 13. AS 04.11 is amended by adding a new section to read: 26 Sec. 04.11.395. BOARD IMPOSED CONDITIONS OR RESTRICTIONS. 27 The board may, in the best interests of the public, impose conditions or restrictions on 28 a license or permit issued under this chapter. 29 * Sec. 14. AS 04.11.400(a) is amended to read: 30 (a) Except as provided in (g), (h), (i), (j), and (k) of this section, a new license 31 may not be issued and the board may prohibit relocation of an existing license

01 (1) outside an established village, incorporated city, unified 02 municipality, or organized borough if after the issuance or relocation there would be 03 more than one restaurant or eating place license for each 1,500 population or fraction 04 of that [1,500] population; or more than one license of each other type, including 05 licenses that have been issued under (g) or (h) of this section, for each 3,000 06 population or fraction of that [3,000] population; in a radius of five miles of the 07 licensed premises [OR LOCATION OF PREMISES SOUGHT TO BE LICENSED], 08 excluding the populations of established villages, incorporated cities, unified 09 municipalities, and organized boroughs that are wholly or partly included within the 10 radius; 11 (2) inside an established village, incorporated city, or unified 12 municipality if after the issuance or relocation there would be inside the established 13 village, incorporated city, or unified municipality 14 (A) more than one restaurant or eating place license for each 15 1,500 population or fraction of that [1,500] population; or 16 (B) more than one license of each other type, including licenses 17 that have been issued under (g) or (h) of this section, for each 3,000 population 18 or fraction of that [3,000] population [INSIDE THE ESTABLISHED 19 VILLAGE, INCORPORATED CITY, OR UNIFIED MUNICIPALITY]; 20 (3) inside an organized borough but outside an established village or 21 incorporated city located within the borough, if after the issuance or relocation there 22 would be inside the borough, but outside the established villages and incorporated 23 cities located within the borough, more than one restaurant or eating place license for 24 each 1,500 population or fraction of that [1,500] population; or more than one license 25 of each other type, including licenses that have been issued under (g) or (h) of this 26 section, for each 3,000 population or fraction of that [3,000] population [INSIDE THE 27 BOROUGH,] excluding the population of those established villages that have adopted 28 a local option under AS 04.11.491(b)(1), (3), or (4) [CONDUCTED AN ELECTION 29 ON A QUESTION SET OUT IN AS 04.11.490, 04.11.496, OR 04.11.500], and 30 excluding the population of incorporated cities located within the organized borough. 31 * Sec. 15. AS 04.11.480(a) is amended to read:

01 (a) A [IF A] local governing body may [WISHES TO] protest the issuance, 02 renewal, relocation, [TRANSFER OF LOCATION] or transfer to another person of 03 a license by sending [, IT SHALL FURNISH] the board and the applicant [WITH] a 04 protest and the reasons for the protest within 30 days of receipt from the board of 05 notice of filing of the application. The local governing body may protest the 06 continued operation of a license during the second year of the biennial license 07 period by sending the board and the licensee a protest and the reasons for the 08 protest by January 31 of the second year of the license. The procedures for 09 action on a protest of continued operation of a license are the same as the 10 procedures for action on a protest of a renewal application. The board shall 11 consider a protest and testimony received at a hearing conducted under 12 AS 04.11.510(b)(2) or (b)(4) when it considers the application or continued 13 operation, and the protest and the record of the hearing conducted under 14 AS 04.11.510(b)(2) or (b)(4) shall be kept [RETAINED] as part of the board's 15 permanent record of its review [OF THE APPLICATION]. If an application or 16 continued operation is protested, the board shall deny [MAY NOT APPROVE] the 17 application or continued operation unless the board finds that the protest is arbitrary, 18 capricious, and unreasonable. 19 * Sec. 16. AS 04.11 is amended by adding a new section to read: 20 Sec. 04.11.491. LOCAL OPTIONS. (a) If a majority of the persons voting 21 on the question vote to approve the option, a municipality shall adopt a local option 22 to prohibit 23 (1) the sale of alcoholic beverages; 24 (2) the sale of alcoholic beverages except by one or more of the 25 following listed on the ballot: 26 (A) a restaurant or eating place licensee; 27 (B) a beverage dispensary licensee; 28 (C) a package store licensee; or 29 (D) a caterer holding a permit under AS 04.11.230 to sell 30 alcoholic beverages at a site within the municipality who is also licensed under 31 a beverage dispensary license for premises outside of the municipality;

01 (3) the sale of alcoholic beverages except on premises operated by the 02 municipality and under a type of licensed premises listed on the ballot, that may 03 include one or more of the following: 04 (A) a restaurant or eating place license; 05 (B) a beverage dispensary license; or 06 (C) a package store license; 07 (4) the sale and importation of alcoholic beverages; or 08 (5) the sale, importation, and possession of alcoholic beverages. 09 (b) If a majority of the persons voting on the question vote to approve the 10 option, an established village shall exercise a local option to prohibit 11 (1) the sale of alcoholic beverages; 12 (2) the sale of alcoholic beverages except by one or more of the 13 following listed on the ballot: 14 (A) a restaurant or eating place licensee; 15 (B) a beverage dispensary licensee; 16 (C) a package store licensee; or 17 (D) a caterer holding a permit under AS 04.11.230 to sell 18 alcoholic beverages at a site within the established village who is also licensed 19 under a beverage dispensary license for premises outside of the established 20 village; 21 (3) the sale and importation of alcoholic beverages; or 22 (4) the sale, importation, and possession of alcoholic beverages. 23 (c) A ballot question to adopt a local option under this section must at least 24 contain language substantially similar to: "Shall (name of municipality or village) 25 adopt a local option to prohibit (local option under (a) or (b) of this section)? (yes or 26 no)." 27 (d) The ballot for an election on the option set out in (a)(2)(A), (a)(3)(A), or 28 (b)(2)(A) of this section must include an explanation of the authority to sell alcoholic 29 beverages given to a restaurant or eating place. The ballot for an election on the 30 option set out in (a)(2)(B) or (D), (a)(3)(B), or (b)(2)(B) or (D) of this section must 31 include a statement that a beverage dispensary license is commonly known as a "bar"

01 and an explanation of the authority to sell alcoholic beverages given to a beverage 02 dispensary licensee. The ballot for an election on the option set out in (a)(2)(C), 03 (a)(3)(C), or (b)(2)(C) of this section must include a statement that a package store 04 license is commonly known as a "liquor store" and an explanation of the authority to 05 sell alcoholic beverages given to a package store licensee. 06 (e) If a municipality dissolves under AS 29.06.450(a) or (b), a local option 07 adopted by the municipality under (a) of this section shall continue in effect as the 08 corresponding local option under (b) of this section for an established village having 09 the same perimeter as the previous boundaries of the municipality. A license for 10 premises operated by the municipality under AS 04.11.505 expires when the 11 municipality dissolves. 12 (f) A municipality or established village that has adopted a local option under 13 (a)(1), (2), or (3) or (b)(1) or (2) of this section may designate a site for the delivery 14 of alcoholic beverages to individuals in the area or a site for a person to bring 15 alcoholic beverages if the alcoholic beverages are imported into the area. This 16 subsection does not apply to the delivery or importation of 17 (1) one liter or less of distilled spirits, two liters or less of wine, or one 18 gallon or less of malt beverages; or 19 (2) alcoholic beverages to a premises licensed under (a)(2) - (3) or 20 (b)(2) of this section. 21 * Sec. 17. AS 04.11 is amended by adding new sections to read: 22 Sec. 04.11.493. CHANGE OF LOCAL OPTION. (a) If a majority of persons 23 voting on the question vote to approve a different local option, a municipality or 24 established village shall change a local option previously adopted under AS 04.11.491 25 to the different approved option. 26 (b) A ballot question to change a local option under this section must at least 27 contain language substantially similar to: "Shall (name of municipality or village) 28 change the local option currently in effect, that prohibits (current local option under 29 AS 04.11.491), and adopt in its place a local option to prohibit (proposed local option 30 under AS 04.11.491)? (yes or no)." 31 Sec. 04.11.495. REMOVAL OF LOCAL OPTION. (a) If a majority of the

01 persons voting on the question vote to remove the option, a municipality or established 02 village shall remove a local option previously adopted under AS 04.11.491. The 03 option is repealed effective the first day of the month following certification of the 04 results of the election. 05 (b) A ballot question to remove a local option under this section must at least 06 contain language substantially similar to: "Shall (name of municipality or village) 07 remove the local option currently in effect, that prohibits (current local option under 08 AS 04.11.491), so that there is no longer any local option in effect? (yes or no)." 09 (c) When issuing a license in the area that has removed a local option, the 10 board shall give priority to an applicant who was formerly licensed and whose license 11 was not renewed because of the results of the previous local option election. However, 12 an applicant described in this subsection does not have a legal right to a license and 13 the board is not required to approve the application. 14 * Sec. 18. AS 04.11 is amended by adding a new section to read: 15 Sec. 04.11.497. EFFECT ON LICENSES OF PROHIBITION OF SALE. If 16 a majority of voters vote to prohibit the sale of alcoholic beverages under 17 AS 04.11.491(a)(1), (a)(4) or (5), (b)(1), or (b)(3) or (4), the board may not issue, 18 renew, or transfer, between persons or locations, a license for premises located within 19 the boundaries of the municipality and in unincorporated areas within five miles of the 20 boundaries of the municipality or within the perimeter of the established village. A 21 license that may not be renewed because of a local option election held under this 22 section is void 90 days after the results of the election are certified. A license that 23 expires during the 90 days after the results of a local option election are certified may 24 be extended, until it is void under this section, by payment of a prorated portion of the 25 biennial license fee. 26 * Sec. 19. AS 04.11 is amended by adding a new section to read: 27 Sec. 04.11.499. PROHIBITION OF IMPORTATION AFTER ELECTION. If 28 a majority of the voters vote to prohibit the importation of alcoholic beverages under 29 AS 04.11.491(a)(4) or (5) or (b)(3) or (4), a person, beginning on the first day of the 30 month following certification of the results of the election, may not knowingly send, 31 transport, or bring an alcoholic beverage into the municipality or established village,

01 unless the alcoholic beverage is sacramental wine to be used for bona fide religious 02 purposes based on tenets or teachings of a church or religious body, is limited in 03 quantity to the amount necessary for religious purposes, and is dispensed only for 04 religious purposes by a person authorized by the church or religious body to dispense 05 the sacramental wine. 06 * Sec. 20. AS 04.11 is amended by adding a new section to read: 07 Sec. 04.11.501. PROHIBITION OF POSSESSION AFTER ELECTION. (a) 08 If a majority of the voters vote to prohibit the possession of alcoholic beverages under 09 AS 04.11.491(a)(5) or (b)(4), a person may not knowingly possess an alcoholic 10 beverage in the municipality or established village, unless the alcoholic beverage is 11 sacramental wine to be used for bona fide religious purposes based on tenets or 12 teachings of a church or religious body, is limited in quantity to the amount necessary 13 for religious purposes, and is dispensed only for religious purposes, by a person 14 recognized by the church or religious body as authorized to dispense the wine. 15 (b) If there are licensed premises within the municipality or established village, 16 the prohibition on possession is effective beginning 90 days after the results of the 17 election are certified. If there are no licensed premises within the municipality or 18 established village, the prohibition on possession is effective beginning 60 days after 19 the results of the election are certified. 20 (c) Upon the adoption by a municipality of a local option under 21 AS 04.11.491(a)(5), an ordinance is adopted containing the provisions of this section. 22 (d) In this section, "possession" means having physical possession of or 23 exercising dominion or control over an alcoholic beverage, but does not include having 24 an alcoholic beverage within the digestive system of a person. 25 * Sec. 21. AS 04.11 is amended by adding a new section to read: 26 Sec. 04.11.503. EFFECT ON LICENSES OF RESTRICTION ON SALE. If 27 a majority of the voters vote under AS 04.11.491(a)(2) or (b)(2) to prohibit sale of 28 alcoholic beverages except by the type or types of licensees or permit holders listed 29 on the ballot, the board may not issue, renew, or transfer between persons or locations 30 a license for premises located within the boundaries of the municipality and in 31 unincorporated areas within five miles of the boundaries of the municipality or within

01 the perimeter of the established village, except the type or types of licenses listed on 02 the ballot. A license in effect within the boundaries of the municipality or perimeter 03 of the established village, and in unincorporated areas within five miles of the 04 boundaries of the municipality, except the type of license listed on the ballot, are void 05 90 days after the results of the election are certified. A license that expires during the 06 90 days after the results of a local option election are certified may be extended, until 07 it is void under this section, by payment of a prorated portion of the biennial license 08 fee. 09 * Sec. 22. AS 04.11 is amended by adding a new section to read: 10 Sec. 04.11.505. LICENSING AFTER PROHIBITION ON SALE EXCEPT IN 11 PREMISES OPERATED BY MUNICIPALITY. (a) If a majority of the voters vote 12 under AS 04.11.491(a)(3) to prohibit the sale of alcoholic beverages except on 13 premises operated by the municipality, the board may not issue, renew, or transfer 14 between persons or locations a license for premises located within the boundaries of 15 a municipality and in unincorporated areas within five miles of the boundaries of the 16 municipality, with the exception of the type of license listed on the ballot and operated 17 under a license held by the municipality. A license in effect is void 90 days after the 18 results of the election are certified. A license that expires during the 90 days after the 19 results of a local option election are certified may be extended, until it is void under 20 this subsection, by payment of a prorated portion of the biennial license fee. 21 (b) The local governing body of a municipality shall apply for a license to 22 operate the type of licensed premises listed on the ballot under AS 04.11.491(a)(3) and 23 approved by a majority of the voters. The municipality shall operate the premises 24 subject to the conditions and fees applicable to the type of license. Nothing in this 25 section precludes a municipality from applying to be a licensee under other provisions 26 of this title. 27 * Sec. 23. AS 04.11 is amended by adding new sections to read: 28 Sec. 04.11.507. PROCEDURE FOR LOCAL OPTION ELECTIONS. (a) 29 Elections to adopt a local option under AS 04.11.491, change a local option under 30 AS 04.11.493, or remove a local option under AS 04.11.495, shall be conducted as 31 required in this section.

01 (b) Upon receipt of a petition of a number of registered voters equal to 35 02 percent or more of the number of votes cast at the last regular municipal election, the 03 local governing body of a municipality shall place upon a separate ballot at the next 04 regular election, or at a special election, whichever local option, change in local option, 05 or removal of local option constitutes the subject of the petition. The local governing 06 body shall conduct the election under the election ordinance of the municipality. 07 (c) Upon receipt of a petition of 35 percent or more of the registered voters 08 residing within an established village, the lieutenant governor shall place upon a 09 separate ballot at a special election the local option, change in local option, or removal 10 of local option that constitutes the subject of the petition. The lieutenant governor 11 shall conduct the election under AS 15. 12 (d) A petition filed with the local governing body of a municipality under (b) 13 of this section, that places on the ballot the option set out in AS 04.11.491(a)(5), 14 constitutes a proposed ordinance of the municipality. 15 (e) AS 29.26.110 - 29.26.160 apply to a petition under (b) of this section in 16 a general law municipality except the 17 (1) number of required signatures is determined under (b) of this 18 section rather than under AS 29.26.130; 19 (2) application filed under AS 29.26.110 must at least contain language 20 substantially similar to the questions set out under AS 04.11.491 - 04.11.495 rather 21 than containing an ordinance or resolution; 22 (3) petition must at least contain language substantially similar to the 23 questions set out under AS 04.11.491 - 04.11.495 rather than material required under 24 AS 29.26.120(a)(1) and (2). 25 (f) Notwithstanding any other provisions of law, an election under (b) or (c) 26 of this section to remove a local option or to change to a less restrictive option than 27 the local option previously adopted under AS 04.11.491 may not be conducted during 28 the first 12 months after the local option was adopted or more than once in a 12-month 29 period. 30 Sec. 04.11.509. NOTICE OF THE RESULTS OF A LOCAL OPTION 31 ELECTION. (a) If a majority of the voters vote to prohibit, change, or remove a

01 local option under AS 04.11.491 - 04.11.495, the clerk of the municipality, or, if the 02 election is in an established village, the lieutenant governor shall notify the board of 03 the results of the election immediately after the results are certified. The board shall 04 immediately notify the Department of Law and the Department of Public Safety of the 05 results of the election. 06 (b) If a majority of the voters vote to prohibit the importation or possession 07 of alcoholic beverages under AS 04.11.491(a)(4) or (5) or (b)(3) or (4), the following 08 actions in addition to those prescribed in (a) of this section shall be taken before the 09 date the prohibition becomes effective: 10 (1) the board shall notify, by certified mail, all package store licensees 11 who sell alcoholic beverages in response to a written solicitation of the local option; 12 and 13 (2) the municipality or established village shall post public notice of 14 the prohibition in a central location in the municipality or village. 15 * Sec. 24. AS 04.11.540 is amended to read: 16 Sec. 04.11.540. LICENSE RENEWAL AND EXPIRATION. Notwithstanding 17 AS 04.11.680, an application for renewal of a license issued for the two calendar years 18 [YEAR] ending December 31 or of a seasonal license issued for parts of those 19 calendar years [A SIX-MONTH PERIOD ENDING IN THE PREVIOUS YEAR] may 20 be submitted up until the next February 28 [, BUT THE AUTHORITY GRANTED 21 UNDER THE LICENSE MAY NOT BE EXERCISED UNTIL THE LICENSE IS 22 RENEWED]. If a complete [THE] application for renewal has [AND APPLICABLE 23 AFFIDAVITS HAVE] not been filed by February 28 or the required fees and the 24 penalty fees have not been paid by that date, the license expires at 12:00 midnight 25 February 28. A new license may not be issued to the holder of an expired license for 26 the same premises except on proof satisfactory to the board of good cause for the 27 failure to file and pay. 28 * Sec. 25. AS 04.11.680(a) is amended to read: 29 (a) Upon application and payment of one-half [ONE-QUARTER] of the 30 biennial fee, the board may issue a seasonal license under this title that will be 31 effective for a continuous six-month period in each of the biennial calendar years.

01 Otherwise, all licenses issued under this title other than a retail stock sale license are 02 effective for the two calendar years ending December 31, unless a shorter period is 03 prescribed by the board or by law. 04 * Sec. 26. AS 04.16.125(a) is amended to read: 05 (a) A person may not use a common carrier to transport alcoholic beverages 06 into an area that has restricted the sale of alcoholic beverages under 07 AS 04.11.491(a)(1), (2), or (3) or (b)(1) or (2) [AS 04.11.490, 04.11.492, OR 08 04.11.500] unless 09 (1) the shipping container holding the alcoholic beverages is clearly 10 labeled as containing alcoholic beverages with letters that contrast in color to the 11 shipping container and that are at least two inches in height; and 12 (2) an itemized invoice showing the quantity and purchase value of 13 distilled spirits, of wine, and of malt [THE ALCOHOLIC] beverages is attached to 14 the outside of the shipping container. 15 * Sec. 27. AS 04.16.125(b) is amended to read: 16 (b) This section does not apply to 17 (1) a person transporting not more than 18 (A) two liters of wine; 19 (B) one gallon of [OR] malt beverages; [,] or 20 (C) [NOT MORE THAN] one liter of distilled spirits; or 21 (2) the transportation of alcoholic beverages for use on premises 22 allowed under AS 04.11.491(a)(2) - (3) or (b)(2) or for use under a permit allowed 23 under AS 04.11.491(a)(2). 24 * Sec. 28. AS 04.16.200(b) is amended to read: 25 (b) A person who violates AS 04.11.010 in an area that has adopted 26 [WHERE THE RESULTS OF] a local option under AS 04.11.491 [ELECTION 27 HAVE, UNDER AS 04.11.490 - 04.11.500, PROHIBITED THE BOARD FROM 28 ISSUING, RENEWING, OR TRANSFERRING ONE OR MORE TYPES OF 29 LICENSES OR PERMITS UNDER THIS TITLE IN THE AREA] is, upon conviction, 30 guilty of a class C felony. 31 * Sec. 29. AS 04.16.200(e) is amended to read:

01 (e) A person who sends, transports, or brings alcoholic beverages into a 02 municipality or established village in violation of AS 04.11.499 [AS 04.11.496] is, 03 upon conviction, 04 (1) guilty of a class A misdemeanor if the quantity imported is less 05 than 12 liters of distilled spirits, 24 liters of wine, or 12 gallons [45 LITERS] of malt 06 beverages; or 07 (2) guilty of a class C felony if the quantity imported is 12 liters or 08 more of distilled spirits, 24 liters or more of wine, or 12 gallons [45 LITERS] or more 09 of malt beverages. 10 * Sec. 30. AS 04.16.205(a) is amended to read: 11 (a) A person who possesses alcoholic beverages in a municipality or 12 established village in violation of AS 04.11.501 [AS 04.11.498] or an ordinance 13 adopted under AS 04.11.501 [AS 04.11.498] may, upon conviction, be punished by a 14 fine not to exceed $1,000. When a peace officer stops or contacts a person concerning 15 a violation of AS 04.11.501 [AS 04.11.498] or an ordinance adopted [ENACTED] 16 under AS 04.11.501 [AS 04.11.498], the peace officer may [, IN THE OFFICER'S 17 DISCRETION,] issue a citation to the person as provided in AS 12.25.180. 18 * Sec. 31. AS 04.16.205(b) is amended to read: 19 (b) A person cited for a violation of AS 04.11.501 [AS 04.11.498] or an 20 ordinance adopted under AS 04.11.501 [AS 04.11.498] for which a bail amount has 21 been established under (c) of this section may, within 30 days after the date the 22 citation is issued. 23 (1) mail or personally deliver to the clerk of the court in which the 24 citation is filed by the peace officer the amount of bail indicated on the citation and 25 a copy of the citation indicating that the right to an appearance is waived, a plea of no 26 contest is entered and the bail and all alcoholic beverages seized are forfeited; or 27 (2) perform community work in lieu of payment of the fine or a portion 28 of the fine as provided in (d) of this section. 29 * Sec. 32. AS 04.16.205(c) is amended to read: 30 (c) The supreme court shall establish by rule or order a schedule of bail 31 amounts that may be forfeited without a court appearance for a violation of

01 AS 04.11.501 [AS 04.11.498] or an ordinance adopted under AS 04.11.501 02 [AS 04.11.498]. In establishing the bail schedule the supreme court may consider the 03 quantity of alcoholic beverages possessed and the number of prior violations of the 04 person cited. Before establishing or amending the schedule of bail amounts required 05 by this subsection, the supreme court shall appoint and consult with an advisory 06 committee consisting of the following seven persons: one superior court judge, one 07 magistrate from each judicial district in the state, a representative of the Department 08 of Law, and a representative of the Public Defender Agency. The maximum bail 09 amount may not exceed $1,000, and the issuing officer shall write on the citation the 10 amount of bail applicable to the violation. 11 * Sec. 33. AS 04.16.205(d) is amended to read: 12 (d) Community work shall be performed at the direction of the local governing 13 body of the municipality or the local governing body of the established village. In the 14 absence of a local governing body for an established village, community work 15 shall be performed at the direction of the body that has traditionally performed 16 public functions on behalf of the entire community. The value of community work 17 in lieu of a fine is $5.00 per hour. When the community work is completed, the 18 person cited for the violation shall mail or personally deliver to the clerk of the court 19 in which the citation is filed by the peace officer 20 (1) a form, prescribed by the administrative director of the Alaska 21 Court System, indicating completion of the community work; and 22 (2) a copy of the citation, indicating that the right to an appearance is 23 waived, a plea of no contest is entered, and that the bail is forfeited or community 24 work has been performed and that all alcoholic beverages seized are forfeited. 25 * Sec. 34. AS 04.16.205(g) is amended to read: 26 (g) Notwithstanding other provisions of law, if a person cited for a violation 27 of AS 04.11.501 [AS 04.11.498] or an ordinance adopted under AS 04.11.501 28 [AS 04.11.498] for which a bail amount has been established under (c) of this section 29 appears in court and is found guilty, the penalty that is imposed for the offense may 30 not exceed the bail amount for that offense established under (c) of this section. 31 * Sec. 35. AS 04.16.205(h) is amended to read:

01 (h) A violation of AS 04.11.501 [AS 04.11.498] or an ordinance adopted under 02 AS 04.11.501 [AS 04.11.498] may not be considered a criminal offense and may not 03 result in imprisonment, nor is a fine imposed for a violation considered criminal 04 punishment. A person cited for a violation does not have a right to a jury trial or 05 court appointed counsel. 06 * Sec. 36. AS 04.16.220(a) is amended to read: 07 (a) The following are subject to forfeiture: 08 (1) alcoholic beverages manufactured, sold, offered for sale or 09 possessed for sale, bartered or exchanged for goods and services in this state in 10 violation of AS 04.11.010; alcoholic beverages possessed, stocked, warehoused, or 11 otherwise stored in violation of AS 04.21.060; alcoholic beverages sold or offered for 12 sale in an area that has adopted [WHERE THE RESULTS OF] a local option under 13 AS 04.11.491 [ELECTION HAVE, UNDER AS 04.11.490 - 04.11.500, PROHIBITED 14 THE POSSESSION OF ALCOHOLIC BEVERAGES OR PROHIBITED THE 15 BOARD FROM ISSUING, RENEWING, OR TRANSFERRING ONE OR MORE 16 LICENSES OR PERMITS UNDER THIS TITLE IN THE AREA]; alcoholic beverages 17 transported into the state and sold to persons not licensed under this chapter in 18 violation of AS 04.16.170(b); 19 (2) materials and equipment used in the manufacture, sale, offering for 20 sale, possession for sale, barter or exchange of alcoholic beverages for goods and 21 services in this state in violation of AS 04.11.010; materials and equipment used in the 22 stocking, warehousing, or storage of alcoholic beverages in violation of AS 04.21.060; 23 materials and equipment used in the sale or offering for sale of an alcoholic beverage 24 in an area that has adopted [WHERE THE RESULTS OF] a local option under 25 AS 04.11.491 [ELECTION HAVE, UNDER AS 04.11.490 - 04.11.500, PROHIBITED 26 THE BOARD FROM ISSUING, RENEWING, OR TRANSFERRING ONE OR 27 MORE LICENSES OR PERMITS UNDER THIS TITLE IN THE AREA]; 28 (3) aircraft, vehicles, or vessels used to transport, or facilitate the 29 transportation of 30 (A) alcoholic beverages manufactured, sold, offered for sale or 31 possessed for sale, bartered or exchanged for goods and services in this state

01 in violation of AS 04.11.010; 02 (B) property stocked, warehoused, or otherwise stored in 03 violation of AS 04.21.060; 04 (C) alcoholic beverages imported into a municipality or 05 established village in violation of AS 04.11.499 [AS 04.11.496]; 06 (4) alcoholic beverages found on licensed premises that do not bear 07 federal excise stamps if excise stamps are required under federal law; 08 (5) alcoholic beverages, materials or equipment used in violation of 09 AS 04.16.175. 10 * Sec. 37. AS 04.16.220(b) is amended to read: 11 (b) Property subject to forfeiture under this section may be actually or 12 constructively seized under an order issued by the superior court upon a showing of 13 probable cause that the property is subject to forfeiture under this section. Constructive 14 seizure is effected upon posting a signed notice of seizure on the item to be forfeited, 15 stating the violation and the date and place of seizure. Seizure without a court order 16 may be made if 17 (1) the seizure is incident to a valid arrest or search; 18 (2) the property subject to seizure is the subject of a prior judgment in 19 favor of the state; or 20 (3) there is probable cause to believe that the property is subject to 21 forfeiture under (a) of this section; except for alcoholic beverages possessed on 22 violation of AS 04.11.501 [AS 04.11.498] or an ordinance adopted under AS 04.11.501 23 [AS 04.11.498], property seized under this paragraph may not be held over 48 hours 24 or until an order of forfeiture is issued by the court, whichever is earlier. 25 * Sec. 38. AS 04.16.220(d) is amended to read: 26 (d) Property subject to forfeiture under (a) of this section may be forfeited 27 (1) upon conviction of a person for a violation of [UNDER] 28 AS 04.11.010, 04.11.499, [04.11.496(b), OR] AS 04.21.060, or AS 04.11.501 [UPON 29 ENTRY OF JUDGMENT UNDER AS 04.11.498] or an ordinance adopted under 30 AS 04.11.501 [AS 04.11.498]; or 31 (2) upon judgment by the superior court in a proceeding in rem that the

01 property was used in a manner subjecting it to forfeiture under (a) of this section. 02 * Sec. 39. AS 04.16.220(g) is amended to read: 03 (g) It is no defense in an in rem forfeiture proceeding brought under (d)(2) of 04 this section that a criminal proceeding is pending or has resulted in conviction or 05 acquittal of a person charged with violating AS 04.11.010, 04.11.499 [04.11.496(b)], 06 or AS 04.21.060. 07 * Sec. 40. AS 04.21.010(a) is amended to read: 08 (a) A municipality may adopt ordinances governing the importation, barter, 09 sale, and consumption of alcoholic beverages within the municipality and may ban 10 possession of alcoholic beverages under AS 04.11.491(a)(5) [AS 04.11.498(d) OR (e)]. 11 An ordinance adopted under this section may not be inconsistent with this title or 12 regulations adopted under this title. An ordinance that limits the monthly amounts 13 of alcoholic beverages a person may import into a municipality that has adopted 14 a local option under AS 04.11.491(a)(1), (2), or (3) is not inconsistent with this 15 title. 16 * Sec. 41. AS 04.21.010(b) is amended to read: 17 (b) After the adoption of a local option under AS 04.11.491, a [IF, AS A 18 RESULT OF AN ELECTION HELD IN ACCORDANCE WITH AS 04.11.502 IN A 19 MUNICIPALITY, THE BOARD IS PROHIBITED FROM ISSUING, RENEWING, 20 OR TRANSFERRING A LICENSE BETWEEN HOLDERS OR LOCATIONS OR IF 21 THE IMPORTATION OF ALCOHOLIC BEVERAGES IS PROHIBITED IN THE 22 MUNICIPALITY, THE] municipality may adopt an ordinance making the sale or 23 importation of alcoholic beverages a misdemeanor. The ordinance may not be 24 inconsistent with this title or the regulations adopted under this title. 25 * Sec. 42. AS 04.21.010(c) is amended to read: 26 (c) A municipality may not impose taxes on alcoholic beverages except (1) property tax on alcoholic 27 beverage inventories; 28 (2) sales tax on alcoholic beverage sales if sales taxes are imposed on 29 other sales within the municipality; 30 (3) sales tax on alcoholic beverage sales that was in effect before 31 July 1, 1985; and

01 (4) sales and use tax on alcoholic beverages if the sale of alcoholic 02 beverages within the municipality has been prohibited under AS 04.11.491(a)(1), (4), 03 or (5) [AS 04.11.490]. 04 * Sec. 43. AS 04.21.015(b) is amended to read: 05 (b) This section does not apply to AS 04.16.050, 04.16.051, 04.16.080; 06 AS 04.21.010, 04.21.020; alcoholic beverages manufactured in a quantity that exceeds 07 the limit imposed on private manufacture under federal law; or an area that has 08 adopted a local option law under AS 04.11.491 [AS 04.11.490 - 04.11.500]. 09 * Sec. 44. AS 04.21.080(b)(1) is amended to read: 10 (1) "alcoholic beverage" means a spirituous, vinous, malt or other 11 fermented or distilled liquid, whatever the origin, that is intended for human 12 consumption as a beverage and that contains one-half of one percent or more of 13 alcohol by volume, whether produced commercially or privately; however, in an area 14 that has adopted a local option under AS 04.11.491 [LOCAL-OPTION 15 PROHIBITION UNDER AS 04.11.490 - 04.11.500], "alcoholic beverage" means a 16 spirituous, vinous, malt, or other fermented or distilled liquid, whatever the origin, that 17 is intended for human consumption as a beverage by the person who possesses or 18 attempts to possess it and that contains alcohol in any amount if the liquid is 19 produced privately, or that contains one-half of one percent or more of alcohol by 20 volume, if the liquid is produced commercially; 21 * Sec. 45. AS 04.21.080(b)(9) is amended to read: 22 (9) "established village" means an area not containing any part of 23 an incorporated city or another established village, that has a perimeter no more 24 than 10 miles in diameter clearly designated on a map by the local governing 25 body or the board in the absence of a local governing body, and that is 26 (A) an unincorporated community that is in the unorganized 27 borough and that has 25 or more permanent residents; or 28 (B) an unincorporated community that is in an organized 29 borough, has 25 or more permanent residents, and 30 (i) is on a road system and is located more than 50 31 miles outside the boundary limits of a unified municipality, or

01 (ii) is not on a road system and is located more than 15 02 miles outside the boundary limits of a unified municipality; 03 * Sec. 46. AS 15.07.064(g) is amended to read: 04 (g) In this section, "established village" means an unincorporated 05 community that is in 06 (A) the unorganized borough and that has 25 or more 07 permanent residents; or 08 (B) an organized borough, has 25 or more permanent 09 residents, and 10 (i) is on a road system and is located more than 50 11 miles outside the boundary limits of a unified municipality, or 12 (ii) is not on a road system and is located more than 13 15 miles outside the boundary limits of a unified municipality [HAS 14 THE MEANING GIVEN IN AS 04.21.080]. 15 * Sec. 47. AS 18.65.085(a) is amended to read: 16 (a) There is established in the Department of Public Safety, division of state 17 troopers, a narcotic drugs and alcohol enforcement unit for the purpose of investigating 18 and combating the illicit sale and distribution of narcotic drugs and alcoholic beverages 19 in the state. Enforcement of the alcoholic beverage control laws shall focus primarily 20 on the investigation, apprehension, and conviction of persons who violate 21 AS 04.11.010 by selling, importing, or possessing alcoholic beverages in violation of 22 a local option [AN ORDINANCE] adopted by a municipality or established village 23 under AS 04.11.491 [AS 04.11.490 - 04.11.500]. 24 * Sec. 48. AS 18.65.085(c) is amended to read: 25 (c) The Department of Public Safety may establish and administer a reward 26 program, and provide grants to municipalities, established villages, and, at the request 27 of a municipality or established village, to a nonprofit association that administers a 28 village public safety officer program, for reward programs leading to the apprehension 29 and conviction of persons who violate AS 04.11.010 by selling, importing, or 30 possessing alcoholic beverages in violation of a local option [AN ORDINANCE] 31 adopted by a municipality or established village under AS 04.11.491 [AS 04.11.490

01 - 04.11.500]. 02 * Sec. 49. AS 29.20.270(e) is amended to read: 03 (e) The veto does not extend to an ordinance adopted under AS 04.11.501 04 [AS 04.11.498]. This subsection applies to home rule and general law municipalities. 05 * Sec. 50. AS 29.25.020(d) is amended to read: 06 (d) This section does not apply to an ordinance proposed under 07 AS 04.11.507(d) [AS 04.11.502(c)]. 08 * Sec. 51. AS 29.25.070(d) is amended to read: 09 (d) This section does not apply to an ordinance adopted under AS 04.11.501(c) 10 [AS 04.11.498(d) OR (e)]. 11 * Sec. 52. AS 29.35.080(a) is amended to read: 12 (a) A municipality may regulate the possession, barter, sale, importation, and 13 consumption of alcoholic beverages under AS 04.11.480 - 04.11.509 [IN 14 ACCORDANCE WITH AS 04.11.480 - 04.11.506] and AS 04.21.010. 15 * Sec. 53. AS 47.37.045(e) is amended to read: 16 (e) In this section, 17 (1) "established village" means an unincorporated community that 18 is in 19 (A) the unorganized borough and that has 25 or more 20 permanent residents; or 21 (B) an organized borough, has 25 or more permanent 22 residents, and 23 (i) is on a road system and is located more than 50 24 miles outside the boundary limits of a unified municipality, or 25 (ii) is not on a road system and is located more than 26 15 miles outside the boundary limits of a unified municipality [HAS 27 THE MEANING GIVEN IN AS 04.21.080(b)]; 28 (2) "local governing body" has the meaning given in AS 04.21.080(b); 29 (3) "nonprofit organization" means an organization that qualifies for 30 exemption from taxation under 26 U.S.C. 501(c)(3) or (4) (Internal Revenue Code). 31 * Sec. 54. AS 04.11.190, 04.11.490, 04.11.492, 04.11.496, 04.11.498, 04.11.500, 04.11.502,

01 04.11.504, 04.11.506, and 04.11.510(d) are repealed. 02 * Sec. 55. TRANSITION: LOCAL OPTIONS EARLIER ADOPTED. Notwithstanding 03 the provisions of this Act, local options adopted by an area under AS 04.11.490, 04.11.492, 04 04.11.496, 04.11.498, or 04.11.500 or previous local option laws before the effective date of 05 this Act shall continue in effect until changed under AS 04.11.493 or removed under 06 AS 04.11.495. References in this Act to local option elections conducted under AS 04.11.491, 07 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 08 are to be interpreted to include local option elections conducted under AS 04.11.490, 09 04.11.492, 04.11.496, 04.11.498, 04.11.500, or 04.11.502 or previous local option laws in 10 effect before the effective date of this Act. 11 * Sec. 56. TRANSITION: COMMUNITY LIQUOR LICENSES. A community liquor 12 license issued under AS 04.11.190 before the effective date of this Act to operate a beverage 13 dispensary shall continue as a beverage dispensary license under AS 04.11.090. A community 14 liquor license issued under AS 04.11.190 before the effective date of this Act to operate a 15 package store shall continue as a package store license under AS 04.11.150. 16 * Sec. 57. This Act takes effect July 1, 1994.