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HCS CSSB 87(CRA): "An Act relating to the membership of the Alcoholic Beverage Control Board; relating to community local options for control of alcoholic beverages; relating to the control of alcoholic beverages; prohibiting persons from being on premises involving alcoholic beverages under certain circumstances; relating to the definition of 'alcoholic beverage'; relating to purchase and sale of alcoholic beverages; relating to alcohol server education courses; and providing for an effective date."

00HOUSE CS FOR CS FOR SENATE BILL NO. 87(CRA) 01 "An Act relating to the membership of the Alcoholic Beverage Control Board; 02 relating to community local options for control of alcoholic beverages; relating to 03 the control of alcoholic beverages; prohibiting persons from being on premises 04 involving alcoholic beverages under certain circumstances; relating to the definition 05 of 'alcoholic beverage'; relating to purchase and sale of alcoholic beverages; 06 relating to alcohol server education courses; and providing for an effective date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. AS 04.11.010(b) is amended to read: 09  (b) Except as provided in this subsection, a [A] person may not solicit or 10 receive orders for the delivery of an alcoholic beverage in an area that has adopted 11 a local option under AS 04.11.491. If the area has adopted a local option under 12 AS 04.11.491(a)(1), (2), or (3), or (b)(1) or (2), a package store licensee outside of 13 that local option area may receive orders as provided under AS 04.11.150 but may 14 not solicit in that area or receive orders through an agent or employee in that

01 area. This subsection does not apply to a package store licensee who operates a 02 package store in an area that has adopted a local option under 03 AS 04.11.491(a)(2)(C) or (3)(C) or (b)(2)(C) [WHERE THE RESULTS OF A 04 LOCAL OPTION ELECTION HAVE, UNDER AS 04.11.490 - 04.11.500, 05 PROHIBITED THE BOARD FROM ISSUING, RENEWING, OR TRANSFERRING 06 ONE OR MORE TYPES OF LICENSES OR PERMITS UNDER THIS TITLE, 07 UNLESS THE PERSON IS LICENSED UNDER THIS TITLE AND THE ORDER 08 IS ACTUALLY RECEIVED BY THAT PERSON FROM THE PURCHASER OF 09 THE ALCOHOLIC BEVERAGE]. A person who violates this subsection is 10 punishable upon conviction as provided under AS 04.16.200(a) or (b). 11 * Sec. 2. AS 04.11.010(c) is amended to read: 12  (c) In a criminal prosecution for possession of alcoholic beverages for sale in 13 violation of (a) of this section, the fact that a person possessed more than 12 liters of 14 distilled spirits, 24 liters or more of wine, or 12 gallons [45 LITERS] or more of malt 15 beverages in an area where the sale of alcoholic beverages is restricted or prohibited 16 under AS 04.11.491 [AS 04.11.490, 04.11.492, 04.11.496, OR 04.11.500] creates a 17 presumption that the person possessed the alcoholic beverages for sale. 18 * Sec. 3. AS 04.11.080 is amended to read: 19  Sec. 04.11.080. TYPES OF LICENSES AND PERMITS. Licenses and 20 permits issued under this title are as follows: 21  (1) beverage dispensary license; 22  (2) duplicate beverage dispensary license for additional rooms; 23  (3) restaurant or eating place license; 24  (4) club license; 25  (5) bottling works license; 26  (6) brewery license; 27  (7) package store license; 28  (8) general wholesale license; 29  (9) wholesale malt beverage and wine license; 30  (10) distillery license; 31  (11) common carrier dispensary license;

01  (12) retail stock sale license; 02  (13) recreational site license; 03  (14) [COMMUNITY LIQUOR LICENSE; 04  (15)] pub license; 05  (15) [(16)] winery license; 06  (16) [(17)] caterer's permit; 07  (17) [(18)] special events permit; 08  (18) [(19)] conditional contractor's permit; 09  (19) [(20)] brewpub license. 10 * Sec. 4. AS 04.11.100 is amended by adding a new subsection to read: 11  (f) Notwithstanding the provisions of (b) and (e) of this section, upon written 12 application and approval of the local governing body, the board may issue or reissue 13 a restaurant or eating place license and exempt the licensee from the requirements of 14 (b) and (e) of this section. A licensee exempt as provided in this subsection shall 15 provide food items for sale on the premises as shown on a menu approved by the 16 board and available to patrons. The board may not 17  (1) issue or reissue a license as provided under this subsection if 18  (A) the issuance or reissuance would result in more than one 19 exempt restaurant or eating place license for every 10 restaurant or eating place 20 licenses allowed under the provisions of AS 04.11.400(a)(2) or (3); 21  (B) the premises would be located in a building having a public 22 entrance within 200 feet of the boundary line of a school or a church 23 building in which religious services are being regularly conducted; for purposes 24 of this subparagraph, the 200-foot prohibition is measured from the outer 25 boundary line of the school or the public entrance of the church building by the 26 shortest pedestrian route to the nearest public entrance of the restaurant or 27 eating place; 28  (2) reissue a restaurant or eating place license as exempt as provided 29 under the provisions of this subsection if the license was issued under the provisions 30 of AS 04.11.400(g); or 31  (3) transfer an exempt license issued under this subsection to another

01 person. 02 * Sec. 5. AS 04.11.135(a) is amended to read: 03  (a) A brewpub license authorizes the holder of a beverage dispensary license 04 to 05  (1) manufacture on premises licensed under the beverage dispensary 06 license not more than 75,000 [16,000] gallons of beer in a calendar year; and 07  (2) sell beer manufactured on premises licensed under the beverage 08 dispensary license for consumption only on the licensed premises. 09 * Sec. 6. AS 04.11.135(b) is amended to read: 10  (b) Except as provided under AS 04.11.360(10) [AS 04.11.360(12)], the 11 brewpub license is not transferable, shall remain the property of the state, and is not 12 subject to any form of alienation. 13 * Sec. 7. AS 04.11.150(a) is repealed and reenacted to read: 14  (a) Except as provided under (g) of this section, a package store license 15 authorizes the licensee to sell alcoholic beverages to a person present on the licensed 16 premises or to a person known to the licensee who makes a written solicitation to that 17 licensee for shipment. A licensee, agent, or employee may only ship alcoholic 18 beverages to the purchaser. Before commencing the practice of shipping alcoholic 19 beverages, and with each subsequent application to renew the license, a licensee shall 20 notify the board in writing of the licensee's intention to ship alcoholic beverages in 21 response to a written solicitation. The package store licensee, agent, or employee shall 22 include written information on fetal alcohol syndrome and fetal alcohol effects 23 resulting from a woman consuming alcohol during pregnancy in a shipment of 24 alcoholic beverages sold in response to a written solicitation. 25 * Sec. 8. AS 04.11.150(g) is repealed and reenacted to read: 26  (g) If a shipment is to an area that has restricted the sale of alcoholic 27 beverages under AS 04.11.491(a)(1), (2), or (3) or (b)(1) or (2), a package store 28 licensee, agent, or employee may not ship to a purchaser more than 12 liters of 29 distilled spirits, 24 liters or more of wine, or 12 gallons or more of malt beverages in 30 a calendar month. 31 * Sec. 9. AS 04.11.160 is amended by adding new subsections to read:

01  (f) A person who applies for issuance or renewal of a license under this 02 section shall file, on forms provided by the board, the following information regarding 03 each product line of alcoholic beverages that the person intends to purchase, offer for 04 sale, or sell: (1) the supplier of the product line; (2) the full and correct brand names 05 in the product line; (3) the name of the distiller, brewer, vintner, or importer of the 06 product line; and (4) a certification by the distiller, brewer, vintner, or importer of the 07 product line that the person is the primary source of supply for the product line. In 08 addition to the fees imposed under (a) and (b) of this section, a person filing under this 09 subsection shall pay a biennial filing fee as follows: 10 1 to 25 suppliers $ 500 11 26 to 50 suppliers $1,000 12 51 to 75 suppliers $1,500 13 over 75 suppliers $2,000 14 In this subsection, "distiller, brewer, vintner, or importer" includes an exclusive agent 15 of the distiller, brewer, vintner, or importer if the agent's name appears on the label of 16 the brand approved by the Federal Bureau of Alcohol, Tobacco, and Firearms. 17  (g) A person licensed under this section shall notify the board within 10 days 18 of a change in a primary source of supply designation required under (f) of this 19 section. 20 * Sec. 10. AS 04.16 is amended by adding a new section to read: 21  Sec. 04.16.172. RESTRICTIONS ON PURCHASE AND SALE OF 22 ALCOHOLIC BEVERAGES. A person licensed under AS 04.11.090, 04.11.100, 23 04.11.110, or 04.11.150 may not purchase, sell, or offer for sale an alcoholic beverage 24 unless the alcoholic beverage being purchased, sold, or offered for sale was obtained 25 from a person licensed under 26  (1) AS 04.11.160 as a primary source of supply for the alcoholic 27 beverage being purchased, sold, or offered for sale; or 28  (2) AS 04.11.130, 04.11.140, or 04.11.170. 29 * Sec. 11. AS 04.11.270(b) is amended to read: 30  (b) A license shall be renewed as follows: 31  (1) on or before November 1 [OF EACH YEAR], the director shall

01 mail a renewal application to each licensee whose license, unless renewed, will expire 02 on December 31 of that year; the application shall be mailed to the licensee at the 03 licensed premises or at a mailing address furnished by the licensee; 04  (2) the licensee shall submit the completed renewal application and the 05 biennial license fee to the director before January 1 [ON OR BEFORE 06 DECEMBER 31]; 07  (3) a renewal application filed after December 31 is delinquent and 08 must be accompanied by a $500 [$200] penalty fee; 09  (4) if December 31 falls on a weekend or a state holiday, the deadline 10 is extended to the first business day following December 31. 11 * Sec. 12. AS 04.11.320 is amended to read: 12  Sec. 04.11.320. DENIAL OF NEW LICENSES AND PERMITS. (a) An 13 application requesting issuance of a new license shall be denied if 14  (1) the board finds, after review of all relevant information, that 15 issuance of the license would not be in the best interests of the public; 16  (2) issuance of the license is prohibited by AS 04.11.390, relating to 17 residency, or AS 04.11.410, relating to location of premises near churches and schools; 18  (3) the application has not been completed in accordance with 19 AS 04.11.260; 20  (4) issuance of the license would violate the restrictions pertaining to 21 the particular license imposed under this title; 22  (5) issuance of the license is prohibited under this title as a result of 23 an election conducted under AS 04.11.507 [IN ACCORDANCE WITH 24 AS 04.11.502]; 25  (6) the requirements of AS 04.11.420 - 04.11.450 relating to zoning, 26 ownership and location of the license, and the identity and financing of a licensee have 27 not been met; 28  (7) [THE LICENSED PREMISES ARE TO BE LOCATED IN A 29 MUNICIPALITY, THE TYPE OF LICENSE SOUGHT IS A BEVERAGE 30 DISPENSARY OR PACKAGE STORE LICENSE, AND THAT TYPE OF LICENSE 31 IS ALREADY IN EFFECT IN THE MUNICIPALITY UNDER A COMMUNITY

01 LIQUOR LICENSE, UNLESS THE NEW LICENSE IS TO BECOME EFFECTIVE 02 AFTER THE COMMUNITY LIQUOR LICENSE IS NO LONGER EFFECTIVE, 03 WHETHER AS THE RESULT OF A LOCAL OPTION ELECTION OR 04 OTHERWISE; 05  (8) THE AUTHORITY SOUGHT IS AUTHORITY TO OPERATE A 06 BEVERAGE DISPENSARY OR PACKAGE STORE UNDER A COMMUNITY 07 LIQUOR LICENSE FOR PREMISES TO BE LOCATED IN A MUNICIPALITY 08 WHERE THE AUTHORITY SOUGHT IS ALREADY HELD BY A PRIVATE 09 LICENSEE UNDER A BEVERAGE DISPENSARY OR PACKAGE STORE 10 LICENSE, UNLESS THE COMMUNITY LIQUOR LICENSE IS TO BECOME 11 EFFECTIVE AFTER THE PRIVATELY HELD LICENSE IS NO LONGER 12 EFFECTIVE, WHETHER AS THE RESULT OF A LOCAL OPTION ELECTION OR 13 OTHERWISE; 14  (9)] issuance of the license is prohibited under AS 04.11.400(a) or 15 prohibition of issuance of the license is found necessary under AS 04.11.400(b); 16  (8) [(10)] the application contains false statements of material fact; 17  (9) [(11)] the license is sought for the sale of alcoholic beverages in a 18 first or second class city where [IN WHICH] there are no licensed premises at the 19 time of application unless a majority of the voters have voted not to approve [IN] a 20 local option to restrict or prohibit the sale of alcoholic beverages under 21 AS 04.11.491, have voted to approve a local option to allow the type of premises 22 under AS 04.11.491(a)(2) or (3), or have voted to remove a restriction or 23 prohibition on the sale of alcoholic beverages under AS 04.11.495 [ELECTION 24 CONDUCTED IN ACCORDANCE WITH AS 04.11.502 HAVE VOTED "NO" ON 25 THE QUESTION SET OUT IN AS 04.11.490, OR HAVE VOTED "YES" ON A 26 QUESTION SET OUT IN AS 04.11.492 OR 04.11.500]; or 27  (10) [(12)] the license is sought for the sale of alcoholic beverages in 28 an established village where [IN WHICH] there are no licensed premises at the time 29 of application unless a majority of the voters have voted not to approve [IN] a local 30 option to restrict or prohibit the sale of alcoholic beverages under AS 04.11.491, 31 have voted to approve a local option to allow the type of premises under

01 AS 04.11.491(b)(2), or have voted to remove a restriction or prohibition on the 02 sale of alcoholic beverages under AS 04.11.495 [ELECTION CONDUCTED IN 03 ACCORDANCE WITH AS 04.11.502 HAVE VOTED "NO" ON THE QUESTION 04 SET OUT IN AS 04.11.490 OR HAVE VOTED "YES" ON THE QUESTION SET 05 OUT IN AS 04.11.500]. 06  (b) An application requesting issuance of a new permit shall be denied if 07  (1) the board finds, after review of all relevant information, that 08 issuance of the permit would not be in the best interests of the public; 09  (2) the board finds that any of the statements made in the application 10 are untrue; 11  (3) the application has not been completed in accordance with 12 AS 04.11.260; or 13  (4) the permit is sought for the sale of alcoholic beverages in a first or 14 second class city or established village where [IN WHICH] there are no licensed 15 premises at the time of application unless a majority of the voters have voted not to 16 approve [IN] a local option to restrict or prohibit the sale of alcoholic beverages 17 under AS 04.11.491, have voted to approve a local option to allow the type of 18 permit under AS 04.11.491(a)(2) or (b)(2), or have voted to remove a restriction 19 or prohibition on the sale of alcoholic beverages under AS 04.11.495 [ELECTION 20 CONDUCTED IN ACCORDANCE WITH AS 04.11.502 HAVE VOTED "NO" ON 21 THE QUESTION SET OUT IN AS 04.11.490]. 22 * Sec. 13. AS 04.11.330(a) is amended to read: 23  (a) An application requesting renewal of a license shall be denied if 24  (1) the board finds, after review of all relevant information, that 25 renewal of the license would not be in the best interests of the public; 26  (2) the license has been revoked for any cause; 27  (3) the applicant has not operated the licensed premises for at least 30 28 eight-hour days during each of the two preceding calendar years, unless the board 29 determines that the licensed premises are under construction or cannot be operated 30 through no fault of the applicant; 31  (4) the board finds that issuance of an existing license under

01 AS 04.11.400(d) has not encouraged tourist trade; 02  (5) the requirements of AS 04.11.420 - 04.11.450 relating to zoning, 03 ownership of the license, and financing of the licensee have not been met; 04  (6) renewal of the license would violate the restrictions pertaining to 05 the particular license under this title or the license has been operated in violation of 06 a condition or restriction imposed by the board; 07  (7) renewal of the license is prohibited under this title as a result of an 08 election conducted under AS 04.11.507 [IN ACCORDANCE WITH AS 04.11.502]; 09  (8) the application has not been completed in accordance with 10 AS 04.11.270; or 11  (9) the license was issued under AS 04.11.400(g), and the board finds 12 that the public convenience does not require renewal. 13 * Sec. 14. AS 04.11.340 is amended to read: 14  Sec. 04.11.340. DENIAL OF REQUEST FOR RELOCATION. An application 15 requesting approval for the relocation of licensed premises shall be denied if 16  (1) the board finds, after review of all relevant information, that 17 relocation of the license would not be in the best interests of the public; 18  (2) the relocation is prohibited under AS 04.11.400(a) or (b); 19  (3) the license would be relocated out of the established village, 20 incorporated city, unified municipality, or population area established under 21 AS 04.11.400(a) within which it is located; 22  (4) transfer of ownership is to be made concurrently with the relocation 23 of the licensed premises and a ground for denial of the transfer of ownership under 24 AS 04.11.360 is presented; 25  (5) the application has not been completed in accordance with 26 AS 04.11.290; 27  (6) relocation of the license would result in violation of a local zoning 28 law; 29  (7) relocation of the license would violate the restrictions pertaining to 30 the particular license imposed by this title; 31  (8) relocation of the license is prohibited under this title as a result of

01 an election conducted under AS 04.11.507 [IN ACCORDANCE WITH 02 AS 04.11.502]; or 03  (9) [THE LICENSED PREMISES ARE TO BE LOCATED IN A 04 MUNICIPALITY, THE TYPE OF LICENSE SOUGHT TO BE RELOCATED IS A 05 BEVERAGE DISPENSARY OR PACKAGE STORE LICENSE, AND THAT TYPE 06 OF LICENSE IS ALREADY IN EFFECT IN THE MUNICIPALITY UNDER A 07 COMMUNITY LIQUOR LICENSE, UNLESS THE RELOCATION IS TO BECOME 08 EFFECTIVE AFTER THE COMMUNITY LIQUOR LICENSE IS NO LONGER 09 EFFECTIVE, WHETHER AS THE RESULT OF A LOCAL OPTION ELECTION OR 10 OTHERWISE; 11  (10)] the license was issued under AS 04.11.400(d), (e), or (g). 12 * Sec. 15. AS 04.11.360 is amended to read: 13  Sec. 04.11.360. DENIAL OF TRANSFER OF A LICENSE TO ANOTHER 14 PERSON. An application requesting approval of a transfer of a license to another 15 person under this title shall be denied if 16  (1) the board finds, after review of all relevant information, that transfer 17 of a license to another person would not be in the best interests of the public; 18  (2) the application has not been completed in accordance with 19 AS 04.11.280; 20  (3) the application contains false statements of material fact; 21  (4) the transferor has not paid all debts or taxes arising from the 22 conduct of the business licensed under this title unless 23  (A) the transferor gives security for the payment of the debts 24 or taxes satisfactory to the creditor or taxing authority; or 25  (B) the transfer is pursuant to a promise given as collateral by 26 the transferor to the transferee in the course of an earlier transfer of the license 27 under which promise the transferor is obliged to transfer the license back to the 28 transferee in the event of default in payment for property conveyed as part of 29 the earlier transfer of the license; 30  (5) transfer of the license to another person would result in violation 31 of the provisions of this title relating to identity of licensees and financing of licensees;

01  (6) transfer of the license to another person would violate the 02 restrictions pertaining to the particular license under this title; 03  (7) transfer of the license to another person is prohibited under the 04 provisions of this title as a result of an election conducted under AS 04.11.507 [IN 05 ACCORDANCE WITH AS 04.11.502]; 06  (8) the prospective transferee does not have the qualifications required 07 under this title of an original applicant; 08  (9) [THE LICENSED PREMISES ARE LOCATED IN A 09 MUNICIPALITY, THE TYPE OF LICENSE SOUGHT TO BE TRANSFERRED IS 10 A BEVERAGE DISPENSARY OR PACKAGE STORE LICENSE, AND THAT TYPE 11 OF LICENSE IS ALREADY IN EFFECT IN THE MUNICIPALITY UNDER A 12 COMMUNITY LIQUOR LICENSE, UNLESS THE TRANSFER IS TO BECOME 13 EFFECTIVE AFTER THE COMMUNITY LIQUOR LICENSE IS NO LONGER 14 EFFECTIVE, WHETHER AS THE RESULT OF A LOCAL OPTION ELECTION OR 15 OTHERWISE; 16  (10) THE AUTHORITY SOUGHT IS AUTHORITY TO OPERATE 17 A 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 TRANSFER IS TO BECOME EFFECTIVE AFTER THE 22 PRIVATELY HELD LICENSE IS NO LONGER EFFECTIVE, WHETHER AS THE 23 RESULT OF A LOCAL OPTION ELECTION OR OTHERWISE; 24  (11)] the license was issued under AS 04.11.100(f) or 04.11.400(g); or 25  (10) [AS 04.11.400(g); 26  (12)] the license was issued under AS 04.11.135, unless the transferor 27 is also applying to transfer the beverage dispensary license required under 28 AS 04.11.135 to the same transferee. 29 * Sec. 16. AS 04.11.370 is amended to read: 30  Sec. 04.11.370. SUSPENSION AND REVOCATION OF LICENSES AND 31 PERMITS. A license or permit shall be suspended or revoked if the board finds

01 [THAT ONE OR MORE OF THE FOLLOWING GROUNDS EXISTS:] 02  (1) misrepresentation of a material fact on an application made under 03 this title or a regulation adopted under this title [FOR A LICENSE OR PERMIT]; 04  (2) continuation of the manufacture, sale, or service of alcoholic 05 beverages by the licensee or permittee [ACTIVITIES AUTHORIZED UNDER A 06 LICENSE OR PERMIT] would be contrary to the best interests of the public; 07  (3) failure on the part of the licensee to correct a defect [DEFECTS] 08 that constitutes a violation [CONSTITUTE VIOLATIONS] of this title, a condition 09 or restriction imposed by the board, a regulation [REGULATIONS] adopted under 10 this title, or other laws [WITHIN A PRESCRIBED TIME] after receipt of notice 11 issued by the board or its agent; 12  (4) conviction of a licensee of a violation of [A PROVISION OF] this 13 title, a regulation adopted under this title, or an ordinance adopted under AS 04.21.010; 14  (5) conviction of an [THE] agent or employee of a licensee of a 15 violation of this title, a regulation adopted under this title, or an ordinance adopted 16 under AS 04.21.010, if the licensee is found by the board to have either knowingly 17 allowed the violation or to have recklessly or with criminal negligence failed to act in 18 accordance with the duty prescribed under AS 04.21.030 with the result that the [AN] 19 agent or employee violates a law, regulation, or ordinance; 20  (6) failure of the licensee to comply with the public health, fire, or 21 safety laws and regulations [PERTAINING TO PUBLIC HEALTH] in the state; 22  (7) use of the licensed premises as a resort for illegal possessors or 23 users of narcotics, prostitutes, or promoters of prostitution; in addition to any other 24 legally competent evidence, the character of the premises may be proved by the 25 general reputation of the premises in the community as a resort for illegal possessors 26 or users of narcotics, prostitutes, or promoters of prostitution; 27  (8) occurrence of illegal gambling within the limits of the licensed 28 premises; 29  (9) the licensee permitted a [PERMITTING ANY] public offense 30 involving moral turpitude to occur on the licensed premises; 31  (10) violation by a licensee of this title, a condition or restriction

01 imposed by the board, a regulation adopted under this title, or an ordinance adopted 02 under AS 04.21.010; or 03  (11) violation by an agent or employee of a licensee of a provision of 04 this title, a condition or restriction imposed by the board, a regulation adopted 05 under this title, or an ordinance adopted under AS 04.21.010, if the licensee is found 06 by the board to have either knowingly allowed the violation or to have recklessly or 07 with criminal negligence failed to act in accordance with the duty prescribed under 08 AS 04.21.030 with the result that the agent or employee violates the law, condition 09 or restriction, regulation, or ordinance. 10 * Sec. 17. AS 04.11.370 is amended by adding new subsections to read: 11  (b) If the board finds that a licensee or permittee has been convicted of a 12 violation of a criminal law related to gambling under AS 11.66.200 - 11.66.280, the 13 board shall suspend the license or permit for a period of at least six months if the 14 offense is the person's first conviction or violation and shall revoke the license or 15 permit if the offense is the person's second or subsequent conviction or violation. 16  (c) If the board receives notice from the Department of Revenue that a licensee 17 or permittee has violated a provision of AS 05.15 related to gambling, the board 18  (1) may suspend the license or permit; and 19  (2) shall suspend the license or permit for a period of at least 30 days 20 if the offense is the person's second or subsequent violation of AS 05.15 related to 21 gambling. 22 * Sec. 18. AS 04.11 is amended by adding a new section to read: 23  Sec. 04.11.395. BOARD IMPOSED CONDITIONS OR RESTRICTIONS. 24 The board may, in the best interests of the public, impose conditions or restrictions on 25 a license or permit issued under this chapter. 26 * Sec. 19. AS 04.11.400(a) is amended to read: 27  (a) Except as provided in (d) - (h) of this section, a new license may not be 28 issued and the board may prohibit relocation of an existing license 29  (1) outside an established village, incorporated city, unified 30 municipality, or organized borough if after the issuance or relocation there would be 31 (A) more than one restaurant or eating place license for each 1,500 population or

01 fraction of that [1,500] population, or (B) more than one license of each other type, 02 including licenses that have been issued under (d) or (e) of this section, for each 3,000 03 population or fraction of that [3,000] population, in a radius of five miles of the 04 licensed premises [OR LOCATION OF PREMISES SOUGHT TO BE LICENSED], 05 excluding the populations of established villages, incorporated cities, unified 06 municipalities, and organized boroughs that are wholly or partly included within the 07 radius; 08  (2) inside an established village, incorporated city, or unified 09 municipality if after the issuance or relocation there would be inside the established 10 village, incorporated city, or unified municipality 11  (A) more than one restaurant or eating place license for each 12 1,500 population or fraction of that [1,500] population; or 13  (B) more than one license of each other type, including licenses 14 that have been issued under (d) or (e) of this section, for each 3,000 population 15 or fraction of that [3,000] population [INSIDE THE ESTABLISHED 16 VILLAGE, INCORPORATED CITY, OR UNIFIED MUNICIPALITY]; 17  (3) inside an organized borough but outside an established village or 18 incorporated city located within the borough, if after the issuance or relocation there 19 would be inside the borough, but outside the established villages and incorporated 20 cities located within the borough, 21  (A) more than one restaurant or eating place license for each 22 1,500 population or fraction of that [1,500] population; or 23  (B) more than one license of each other type, including licenses 24 that have been issued under (d) or (e) of this section, for each 3,000 population 25 or fraction of that [3,000] population [INSIDE THE BOROUGH,] excluding 26 the population of those established villages that have adopted a local option 27 under AS 04.11.491(b)(1), (3), or (4) [CONDUCTED AN ELECTION ON A 28 QUESTION SET OUT IN AS 04.11.490, 04.11.496, OR 04.11.500], and 29 excluding the population of incorporated cities located within the organized 30 borough. 31 * Sec. 20. 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 60 [30] days of receipt from the board 05 of notice of filing of the application. A protest received after the 60-day period 06 may not be accepted by the board, and in no event may a protest cause the board 07 to reconsider an approved renewal, relocation, or transfer. The local governing 08 body may protest the continued operation of a license during the second year of 09 the biennial license period by sending the board and the licensee a protest and the 10 reasons for the protest by January 31 of the second year of the license. The 11 procedures for action on a protest of continued operation of a license are the 12 same as the procedures for action on a protest of a renewal application. The 13 board shall consider a protest and testimony received at a hearing conducted under 14 AS 04.11.510(b)(2) or (4) when it considers the application or continued operation, 15 and the protest and the record of the hearing conducted under AS 04.11.510(b)(2) or 16 (4) shall be kept [RETAINED] as part of the board's permanent record of its review 17 [OF THE APPLICATION]. If an application or continued operation is protested, the 18 board shall deny [MAY NOT APPROVE] the application or continued operation 19 unless the board finds that the protest is arbitrary, capricious, and unreasonable. 20 * Sec. 21. AS 04.11 is amended by adding a new section to read: 21  Sec. 04.11.491. LOCAL OPTIONS. (a) If a majority of the persons voting 22 on the question vote to approve the option, a municipality shall adopt a local option 23 to prohibit 24  (1) the sale of alcoholic beverages; 25  (2) the sale of alcoholic beverages except by one or more of the 26 following listed on the ballot: 27  (A) a restaurant or eating place licensee; 28  (B) a beverage dispensary licensee; 29  (C) a package store licensee; or 30  (D) a caterer holding a permit under AS 04.11.230 to sell 31 alcoholic beverages at a site within the municipality who is also licensed under

01 a beverage dispensary license for premises outside of the municipality; 02  (3) the sale of alcoholic beverages except on premises operated by the 03 municipality and under a type of licensed premises listed on the ballot, that may 04 include one or more of the following: 05  (A) a restaurant or eating place license; 06  (B) a beverage dispensary license; or 07  (C) a package store license; 08  (4) the sale and importation of alcoholic beverages; or 09  (5) the sale, importation, and possession of alcoholic beverages. 10  (b) If a majority of the persons voting on the question vote to approve the 11 option, an established village shall exercise a local option to prohibit 12  (1) the sale of alcoholic beverages; 13  (2) the sale of alcoholic beverages except by one or more of the 14 following listed on the ballot: 15  (A) a restaurant or eating place licensee; 16  (B) a beverage dispensary licensee; 17  (C) a package store licensee; or 18  (D) a caterer holding a permit under AS 04.11.230 to sell 19 alcoholic beverages at a site within the established village who is also licensed 20 under a beverage dispensary license for premises outside of the established 21 village; 22  (3) the sale and importation of alcoholic beverages; or 23  (4) the sale, importation, and possession of alcoholic beverages. 24  (c) A ballot question to adopt a local option under this section must at least 25 contain language substantially similar to: "Shall (name of municipality or village) 26 adopt a local option to prohibit (local option under (a) or (b) of this section)? (yes or 27 no)." 28  (d) The ballot for an election on the option set out in (a)(2)(A), (a)(3)(A), or 29 (b)(2)(A) of this section must include a summary explanation of the authority to sell 30 alcoholic beverages given to a restaurant or eating place under AS 04.11.100(a). The 31 ballot for an election on the option set out in (a)(2)(B) or (D), (a)(3)(B), or (b)(2)(B)

01 or (D) of this section must include a statement that a beverage dispensary license is 02 commonly known as a "bar" and a summary explanation of the authority to sell 03 alcoholic beverages given to a beverage dispensary licensee under AS 04.11.090(a). 04 The ballot for an election on the option set out in (a)(2)(C), (a)(3)(C), or (b)(2)(C) of 05 this section must include a statement that a package store license is commonly known 06 as a "liquor store" and a summary explanation of the authority to sell alcoholic 07 beverages given to a package store licensee under AS 04.11.150(a). 08  (e) If a municipality dissolves under AS 29.06.450(a) or (b), a local option 09 adopted by the municipality under (a) of this section shall continue in effect as the 10 corresponding local option under (b) of this section for an established village having 11 the same perimeter as the previous boundaries of the municipality. A license for 12 premises operated by the municipality under AS 04.11.505 expires when the 13 municipality dissolves. 14  (f) A municipality or established village that has adopted a local option under 15 (a)(1), (2), or (3) or (b)(1) or (2) of this section may designate a site for the delivery 16 of alcoholic beverages to individuals in the area or a site for a person to bring 17 alcoholic beverages if the alcoholic beverages are imported into the area. This 18 subsection does not apply to the delivery or importation of 19  (1) one liter or less of distilled spirits, two liters or less of wine, or one 20 gallon or less of malt beverages; or 21  (2) alcoholic beverages to a premises licensed under (a)(2) - (3) or 22 (b)(2) of this section. 23 * Sec. 22. AS 04.11 is amended by adding new sections to read: 24  Sec. 04.11.493. CHANGE OF LOCAL OPTION. (a) If a majority of persons 25 voting on the question vote to approve a different local option, a municipality or 26 established village shall change a local option previously adopted under AS 04.11.491 27 to the different approved option. 28  (b) A ballot question to change a local option under this section must at least 29 contain language substantially similar to: "Shall (name of municipality or village) 30 change the local option currently in effect, that prohibits (current local option under 31 AS 04.11.491), and adopt in its place a local option to prohibit (proposed local option

01 under AS 04.11.491)? (yes or no)." 02  Sec. 04.11.495. REMOVAL OF LOCAL OPTION. (a) If a majority of the 03 persons voting on the question vote to remove the option, a municipality or established 04 village shall remove a local option previously adopted under AS 04.11.491. The 05 option is repealed effective the first day of the month following certification of the 06 results of the election. 07  (b) A ballot question to remove a local option under this section must at least 08 contain language substantially similar to: "Shall (name of municipality or village) 09 remove the local option currently in effect, that prohibits (current local option under 10 AS 04.11.491), so that there is no longer any local option in effect? (yes or no)." 11  (c) When issuing a license in the area that has removed a local option, the 12 board shall give priority to an applicant who was formerly licensed and whose license 13 was not renewed because of the results of the previous local option election. However, 14 an applicant described in this subsection does not have a legal right to a license and 15 the board is not required to approve the application. 16 * Sec. 23. AS 04.11 is amended by adding a new section to read: 17  Sec. 04.11.497. EFFECT ON LICENSES OF PROHIBITION OF SALE. If 18 a majority of voters vote to prohibit the sale of alcoholic beverages under 19 AS 04.11.491(a)(1), (a)(4) or (5), (b)(1), or (b)(3) or (4), the board may not issue, 20 renew, or transfer, between persons or locations, a license for premises located within 21 the boundaries of the municipality and in unincorporated areas within five miles of the 22 boundaries of the municipality or within the perimeter of the established village. A 23 license that may not be renewed because of a local option election held under this 24 section is void 90 days after the results of the election are certified. A license that 25 expires during the 90 days after the results of a local option election are certified may 26 be extended, until it is void under this section, by payment of a prorated portion of the 27 biennial license fee. 28 * Sec. 24. AS 04.11 is amended by adding a new section to read: 29  Sec. 04.11.499. PROHIBITION OF IMPORTATION AFTER ELECTION. If 30 a majority of the voters vote to prohibit the importation of alcoholic beverages under 31 AS 04.11.491(a)(4) or (5) or (b)(3) or (4), a person, beginning on the first day of the

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

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

01 AS 04.11.493, or remove a local option under AS 04.11.495, shall be conducted as 02 required in this section. 03  (b) Upon receipt of a petition of a number of registered voters equal to 35 04 percent or more of the number of votes cast at the last regular municipal election, the 05 local governing body of a municipality shall place upon a separate ballot at the next 06 regular election, or at a special election, whichever local option, change in local option, 07 or removal of local option constitutes the subject of the petition. The local governing 08 body shall conduct the election under the election ordinance of the municipality. 09  (c) Upon receipt of a petition of 35 percent or more of the registered voters 10 residing within an established village, the lieutenant governor shall place upon a 11 separate ballot at a special election the local option, change in local option, or removal 12 of local option that constitutes the subject of the petition. The lieutenant governor 13 shall conduct the election under AS 15. 14  (d) A petition filed with the local governing body of a municipality under (b) 15 of this section, that places on the ballot the option set out in AS 04.11.491(a)(5), 16 constitutes a proposed ordinance of the municipality. 17  (e) AS 29.26.110 - 29.26.160 apply to a petition under (b) of this section in 18 a general law municipality except the 19  (1) number of required signatures is determined under (b) of this 20 section rather than under AS 29.26.130; 21  (2) application filed under AS 29.26.110 must at least contain language 22 substantially similar to the questions set out under AS 04.11.491 - 04.11.495 rather 23 than containing an ordinance or resolution; 24  (3) petition must at least contain language substantially similar to the 25 questions set out under AS 04.11.491 - 04.11.495 rather than material required under 26 AS 29.26.120(a)(1) and (2). 27  (f) Notwithstanding any other provisions of law, an election under (b) or (c) 28 of this section to remove a local option or to change to a less restrictive option than 29 the local option previously adopted under AS 04.11.491 may not be conducted during 30 the first 12 months after the local option was adopted or more than once in an 31 18-month period.

01  (g) Notwithstanding AS 29.26.140(a), after a petition has been certified as 02 sufficient to meet the requirements of (b) or (c) of this section, another petition may 03 not be filed or certified until after the question presented in the first petition has been 04 voted on. Only one local option question may be presented in an election. 05  Sec. 04.11.509. NOTICE OF THE RESULTS OF A LOCAL OPTION 06 ELECTION. (a) If a majority of the voters vote to prohibit, change, or remove a 07 local option under AS 04.11.491 - 04.11.495, the clerk of the municipality, or, if the 08 election is in an established village, the lieutenant governor shall notify the board of 09 the results of the election immediately after the results are certified. The board shall 10 immediately notify the Department of Law and the Department of Public Safety of the 11 results of the election. 12  (b) If a majority of the voters vote to prohibit the importation or possession 13 of alcoholic beverages under AS 04.11.491(a)(4) or (5) or (b)(3) or (4), the following 14 actions in addition to those prescribed in (a) of this section shall be taken before the 15 date the prohibition becomes effective: 16  (1) the board shall notify, by certified mail, all package store licensees 17 who sell alcoholic beverages in response to a written solicitation of the local option; 18 and 19  (2) the municipality or established village shall post public notice of 20 the prohibition in a central location in the municipality or village. 21 * Sec. 29. AS 04.11.540 is amended to read: 22  Sec. 04.11.540. LICENSE RENEWAL AND EXPIRATION. Notwithstanding 23 AS 04.11.680, an application for renewal of a license issued for the two calendar years 24 [YEAR] ending December 31 or of a seasonal license issued for parts of those 25 calendar years [A SIX-MONTH PERIOD ENDING IN THE PREVIOUS YEAR] may 26 be submitted up until the next February 28 [, BUT THE AUTHORITY GRANTED 27 UNDER THE LICENSE MAY NOT BE EXERCISED UNTIL THE LICENSE IS 28 RENEWED]. If a complete [THE] application for renewal has [AND APPLICABLE 29 AFFIDAVITS HAVE] not been filed by February 28 or the required fees and the 30 penalty fees have not been paid by that date, the license expires at 12:00 midnight 31 February 28. A new license may not be issued to the holder of an expired license for

01 the same premises except on proof satisfactory to the board of good cause for the 02 failure to file and pay. 03 * Sec. 30. AS 04.11.680(a) is amended to read: 04  (a) Upon application and payment of one-half [ONE-QUARTER] of the 05 biennial fee, the board may issue a seasonal license under this title that is [WILL BE] 06 effective for the intervals stated on the license. A seasonal license may not be 07 effective for more than 12 months in a two-year period [A CONTINUOUS SIX-MONTH PERIOD]. Otherwise, 08 all licenses issued under this title other than a retail 09 stock sale license are effective for the two calendar years ending December 31, unless 10 a shorter period is prescribed by the board or by law. 11 * Sec. 31. AS 04.16 is amended by adding a new section to read: 12  Sec. 04.16.025. ILLEGAL PRESENCE ON PREMISES INVOLVING 13 ALCOHOLIC BEVERAGES. (a) A person may not knowingly enter or remain on 14 premises 15  (1) in which alcoholic beverages are manufactured, sold, offered for 16 sale, possessed for sale or barter, trafficked in, or bartered in violation of 17  (A) AS 04.11.010; or 18  (B) a municipal ordinance adopted under AS 04.21.010(a) or 19 (b); or 20  (2) licensed under this title during hours in which the person's presence 21 on the premises is a violation of a municipal ordinance adopted under authority of 22 AS 04.16.010(d) providing for hours of closure that are outside the hours of closure 23 prescribed by AS 04.16.010(c). 24  (b) A person who violates this section is guilty of a violation. 25 * Sec. 32. AS 04.16.110 is repealed and reenacted to read: 26  Sec. 04.16.110. SALE OF CERTAIN ALCOHOLIC BEVERAGES 27 PROHIBITED. A person may not sell an alcoholic beverage if it 28  (1) is intended for human consumption and is in powdered form; or 29  (2) contains more than 76 percent alcohol by volume. 30 * Sec. 33. AS 04.16.125(a) is amended to read: 31  (a) A person may not use a common carrier to transport alcoholic beverages

01 into an area that has restricted the sale of alcoholic beverages under 02 AS 04.11.491(a)(1), (2), or (3) or (b)(1) or (2) [AS 04.11.490, 04.11.492, OR 03 04.11.500] unless 04  (1) the shipping container holding the alcoholic beverages is clearly 05 labeled as containing alcoholic beverages with letters that contrast in color to the 06 shipping container and that are at least two inches in height; and 07  (2) an itemized invoice showing the quantity and purchase value of 08 distilled spirits, of wine, and of malt [THE ALCOHOLIC] beverages is attached to 09 the outside of the shipping container. 10 * Sec. 34. AS 04.16.125(b) is amended to read: 11  (b) This section does not apply to 12  (1) a person transporting not more than 13  (A) two liters of wine; 14  (B) one gallon of [OR] malt beverages; [,] or 15  (C) [NOT MORE THAN] one liter of distilled spirits; or 16  (2) the transportation of alcoholic beverages for use on premises 17 allowed under AS 04.11.491(a)(2) - (3) or (b)(2) or for use under a permit allowed 18 under AS 04.11.491(a)(2). 19 * Sec. 35. AS 04.16.180(a) is amended to read: 20  (a) Except as provided in AS 04.11.015, AS 04.16.025, 04.16.051 21 [AS 04.16.051], 04.16.200 - 04.16.210, and AS 04.21.065, a person who violates a 22 provision of this title or a regulation adopted by the board is guilty, upon conviction, 23 of a class A misdemeanor. Each violation is a separate offense. 24 * Sec. 36. 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. 37. 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. 38. 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 and shall forfeit the seized alcoholic beverages. When a 15 peace officer stops or contacts a person concerning a violation of AS 04.11.501 16 [AS 04.11.498] or an ordinance adopted [ENACTED] under AS 04.11.501 17 [AS 04.11.498], the peace officer shall seize the alcoholic beverages and may [, IN 18 THE OFFICER'S DISCRETION,] issue a citation to the person as provided in 19 AS 12.25.180. 20 * Sec. 39. AS 04.16.205(b) is amended to read: 21  (b) A person cited for a violation of AS 04.11.501 [AS 04.11.498] or an 22 ordinance adopted under AS 04.11.501 [AS 04.11.498] for which a bail amount has 23 been established under (c) of this section may, within 30 days after the date the 24 citation is issued, 25  (1) mail or personally deliver to the clerk of the court in which the 26 citation is filed by the peace officer the amount of bail indicated on the citation and 27 a copy of the citation indicating that the right to an appearance is waived, a plea of no 28 contest is entered, and the bail and all alcoholic beverages seized are forfeited; or 29  (2) perform community work in lieu of payment of the fine or a portion 30 of the fine as provided in (d) of this section. 31 * Sec. 40. AS 04.16.205(c) is amended to read:

01  (c) The supreme court shall establish by rule or order a schedule of bail 02 amounts that may be forfeited without a court appearance for a violation of 03 AS 04.11.501 [AS 04.11.498] or an ordinance adopted under AS 04.11.501 04 [AS 04.11.498]. In establishing the bail schedule the supreme court may consider the 05 quantity of alcoholic beverages possessed and the number of prior violations of the 06 person cited. Before establishing or amending the schedule of bail amounts required 07 by this subsection, the supreme court shall appoint and consult with an advisory 08 committee consisting of the following seven persons: one superior court judge, one 09 magistrate from each judicial district in the state, a representative of the Department 10 of Law, and a representative of the Public Defender Agency. The maximum bail 11 amount may not exceed $1,000, and the issuing officer shall write on the citation the 12 amount of bail applicable to the violation. 13 * Sec. 41. AS 04.16.205(d) is amended to read: 14  (d) Community work shall be performed at the direction of the local governing 15 body of the municipality or the local governing body of the established village. In the 16 absence of a local governing body for an established village, community work 17 shall be performed at the direction of the body that has traditionally performed 18 public functions on behalf of the entire community. The value of community work 19 in lieu of a fine is $5.00 per hour. When the community work is completed, the 20 person cited for the violation shall mail or personally deliver to the clerk of the court 21 in which the citation is filed by the peace officer 22  (1) a form, prescribed by the administrative director of the Alaska 23 Court System, indicating completion of the community work; and 24  (2) a copy of the citation, indicating that the right to an appearance is 25 waived, a plea of no contest is entered, and that the bail is forfeited or community 26 work has been performed and that all alcoholic beverages seized are forfeited. 27 * Sec. 42. AS 04.16.205(g) is amended to read: 28  (g) Notwithstanding other provisions of law, if a person cited for a violation 29 of AS 04.11.501 [AS 04.11.498] or an ordinance adopted under AS 04.11.501 30 [AS 04.11.498] for which a bail amount has been established under (c) of this section 31 appears in court and is found guilty, the penalty that is imposed for the offense may

01 not exceed the bail amount for that offense established under (c) of this section. 02 * Sec. 43. AS 04.16.205(h) is amended to read: 03  (h) A violation of AS 04.11.501 [AS 04.11.498] or an ordinance adopted under 04 AS 04.11.501 [AS 04.11.498] may not be considered a criminal offense and may not 05 result in imprisonment, nor is a fine imposed for a violation considered criminal 06 punishment. A person cited for a violation does not have a right to a jury trial or 07 court appointed counsel. 08 * Sec. 44. AS 04.16.220(a) is amended to read: 09  (a) The following are subject to forfeiture: 10  (1) alcoholic beverages manufactured, sold, offered for sale or 11 possessed for sale, bartered or exchanged for goods and services in this state in 12 violation of AS 04.11.010; alcoholic beverages possessed, stocked, warehoused, or 13 otherwise stored in violation of AS 04.21.060; alcoholic beverages sold, or offered for 14 sale in violation [IN AN AREA WHERE THE RESULTS] of a local option adopted 15 under AS 04.11.491 [ELECTION HAVE, UNDER AS 04.11.490 - 04.11.500, 16 PROHIBITED THE POSSESSION OF ALCOHOLIC BEVERAGES OR 17 PROHIBITED THE BOARD FROM ISSUING, RENEWING, OR TRANSFERRING 18 ONE OR MORE LICENSES OR PERMITS UNDER THIS TITLE IN THE AREA]; 19 alcoholic beverages transported into the state and sold to persons not licensed under 20 this chapter in violation of AS 04.16.170(b); 21  (2) materials and equipment used in the manufacture, sale, offering for 22 sale, possession for sale, barter or exchange of alcoholic beverages for goods and 23 services in this state in violation of AS 04.11.010; materials and equipment used in the 24 stocking, warehousing, or storage of alcoholic beverages in violation of AS 04.21.060; 25 materials and equipment used in the sale or offering for sale of an alcoholic beverage 26 in an area in violation [WHERE THE RESULTS] of a local option adopted under 27 AS 04.11.491 [ELECTION HAVE, UNDER AS 04.11.490 - 04.11.500, PROHIBITED 28 THE BOARD FROM ISSUING, RENEWING, OR TRANSFERRING ONE OR 29 MORE LICENSES OR PERMITS UNDER THIS TITLE IN THE AREA]; 30  (3) aircraft, vehicles, or vessels used to transport, or facilitate the 31 transportation of

01  (A) alcoholic beverages manufactured, sold, offered for sale or 02 possessed for sale, bartered or exchanged for goods and services in this state 03 in violation of AS 04.11.010; 04  (B) property stocked, warehoused, or otherwise stored in 05 violation of AS 04.21.060; 06  (C) alcoholic beverages imported into a municipality or 07 established village in violation of AS 04.11.499 [AS 04.11.496]; 08  (4) alcoholic beverages found on licensed premises that do not bear 09 federal excise stamps if excise stamps are required under federal law; 10  (5) alcoholic beverages, materials or equipment used in violation of 11 AS 04.16.175. 12 * Sec. 45. AS 04.16.220(b) is amended to read: 13  (b) Property subject to forfeiture under this section may be actually or 14 constructively seized under an order issued by the superior court upon a showing of 15 probable cause that the property is subject to forfeiture under this section. Constructive 16 seizure is effected upon posting a signed notice of seizure on the item to be forfeited, 17 stating the violation and the date and place of seizure. Seizure without a court order 18 may be made if 19  (1) the seizure is incident to a valid arrest or search; 20  (2) the property subject to seizure is the subject of a prior judgment in 21 favor of the state; or 22  (3) there is probable cause to believe that the property is subject to 23 forfeiture under (a) of this section; except for alcoholic beverages possessed on 24 violation of AS 04.11.501 [AS 04.11.498] or an ordinance adopted under AS 04.11.501 25 [AS 04.11.498], property seized under this paragraph may not be held over 48 hours 26 or until an order of forfeiture is issued by the court, whichever is earlier. 27 * Sec. 46. AS 04.16.220(d) is amended to read: 28  (d) Property subject to forfeiture under (a) of this section may be forfeited 29  (1) upon conviction of a person for a violation of [UNDER] 30 AS 04.11.010, 04.11.499, [04.11.496(b), OR] AS 04.21.060, or AS 04.11.501 [UPON 31 ENTRY OF JUDGMENT UNDER AS 04.11.498] or an ordinance adopted under

01 AS 04.11.501 [AS 04.11.498]; or 02  (2) upon judgment by the superior court in a proceeding in rem that the 03 property was used in a manner subjecting it to forfeiture under (a) of this section. 04 * Sec. 47. AS 04.16.220(g) is amended to read: 05  (g) It is no defense in an in rem forfeiture proceeding brought under (d)(2) of 06 this section that a criminal proceeding is pending or has resulted in conviction or 07 acquittal of a person charged with violating AS 04.11.010, 04.11.499 [04.11.496(b)], 08 or AS 04.21.060. 09 * Sec. 48. AS 04.16.220(h) is amended to read: 10  (h) Alcoholic beverages forfeited under (d) of this section shall be placed in 11 the custody of a peace officer of the state and destroyed no later than 30 days after 12 forfeiture. All other property forfeited under this section shall be placed in the custody 13 of the commissioner of public safety for disposition according to an order entered by 14 the court. The court shall order destroyed any property forfeited under this section that 15 is harmful to the public and shall order any property forfeited under this section 16 that was seized in a municipality to be transferred to the municipality in which 17 the property was seized. Other property shall be ordered sold and the proceeds used 18 for payment of expenses of the proceedings for forfeiture and sale, including expenses 19 of seizure, custody, and court costs. The remainder of the proceeds shall be deposited 20 in the general fund. 21 * Sec. 49. AS 04.21.010(a) is amended to read: 22  (a) A municipality may adopt ordinances governing the importation, barter, 23 sale, and consumption of alcoholic beverages within the municipality and may ban 24 possession of alcoholic beverages under AS 04.11.491(a)(5) [AS 04.11.498(d) OR (e)]. 25 An ordinance adopted under this section may not be inconsistent with this title or 26 regulations adopted under this title. In a municipality that has adopted a local 27 option under AS 04.11.491(a)(1), (2), or (3), an ordinance is not inconsistent with 28 this title if it limits 29  (1) the monthly amounts of alcoholic beverages a person may 30 import into the municipality; 31  (2) the percent of alcohol by volume that an alcoholic beverage may

01 contain; a limit imposed under this paragraph may not be less than 40 nor more 02 than 76 percent alcohol by volume; or 03  (3) the type of alcoholic beverage container that may be possessed 04 in the municipality. 05 * Sec. 50. AS 04.21.010(b) is amended to read: 06  (b) After the adoption of a local option under AS 04.11.491(a), a [IF, AS A 07 RESULT OF AN ELECTION HELD IN ACCORDANCE WITH AS 04.11.502 IN A 08 MUNICIPALITY, THE BOARD IS PROHIBITED FROM ISSUING, RENEWING, 09 OR TRANSFERRING A LICENSE BETWEEN HOLDERS OR LOCATIONS OR IF 10 THE IMPORTATION OF ALCOHOLIC BEVERAGES IS PROHIBITED IN THE 11 MUNICIPALITY, THE] municipality may adopt an ordinance making the sale, [OR] 12 importation, or possession of alcoholic beverages a misdemeanor to the extent 13 prohibited under the local option. The ordinance may not be inconsistent with this 14 title or the regulations adopted under this title. 15 * Sec. 51. AS 04.21.010(c) is amended to read: 16  (c) A municipality may not impose taxes on alcoholic beverages except a 17  (1) property tax on alcoholic beverage inventories; 18  (2) sales tax on alcoholic beverage sales if sales taxes are imposed on 19 other sales within the municipality; 20  (3) sales tax on alcoholic beverage sales that was in effect before 21 July 1, 1985; and 22  (4) sales and use tax on alcoholic beverages if the sale of alcoholic 23 beverages within the municipality has been prohibited under AS 04.11.491(a)(1), (4), 24 or (5) [AS 04.11.490]. 25 * Sec. 52. 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. 53. 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 or check the identification of a patron to complete an alcohol server 04 education course approved by the board, if the 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  (8)] pub; 13  (7) [(9)] conditional contractor. 14 * Sec. 54. 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 or who check the identification of a 17 patron on provisions of state law regarding sale of alcoholic beverages, including 18 AS 04.16.015, 04.16.020, 04.16.030, 04.16.051, 04.16.052, 04.16.120, 04.16.125, 19 AS 04.21.030, and 04.21.050. The training must include the subjects of the effects of 20 alcohol consumption, identifying a drunken person, determining valid identification, 21 intervention to prevent unlawful alcohol consumption, and penalties for unlawful acts 22 by agents and employees of licensees. A common carrier licensee shall, once every 23 three years, provide the board with a description of its training program including the 24 subjects taught, teaching method, and testing required. 25 * Sec. 55. AS 04.21.065(a) is amended to read: 26  (a) A holder of one of the following types of licenses or permits shall post on 27 the licensed or designated premises two separate warning signs as described in (b) of 28 this section: 29  (1) beverage dispensary license; 30  (2) restaurant or eating place license; 31  (3) club license;

01  (4) brewery license; this paragraph applies only to a brewery that 02 permits a person to sample portions of the brewery's product; 03  (5) package store license; 04  (6) common carrier dispensary license; 05  (7) recreational site license; 06  (8) [COMMUNITY LIQUOR LICENSE; 07  (9)] pub license; 08  (9) [(10)] winery license; this paragraph applies only to a winery that 09 permits a person to sample portions of the winery's product; 10  (10) [(11)] caterer's permit; 11  (11) [(12)] special events permit; 12  (12) [(13)] conditional contractor's permit; 13  (13) [(14)] another license or permit issued by the board authorizing 14 consumption of alcoholic beverages. 15 * Sec. 56. AS 04.21.080(b)(1) is amended to read: 16  (1) "alcoholic beverage" means a spirituous, vinous, malt, or other 17 fermented or distilled liquid, whatever the origin, that is intended for human 18 consumption as a beverage and that contains one-half of one percent or more of 19 alcohol by volume, whether produced commercially or privately; however, in an area 20 that has adopted a local option under AS 04.11.491 [LOCAL-OPTION 21 PROHIBITION UNDER AS 04.11.490 - 04.11.500], "alcoholic beverage" means a 22 spirituous, vinous, malt, or other fermented or distilled liquid, whatever the origin, that 23 is intended for human consumption as a beverage by the person who possesses or 24 attempts to possess it and that contains alcohol in any amount if the liquid is 25 produced privately, or that contains one-half of one percent or more of alcohol by 26 volume, if the liquid is produced commercially; 27 * Sec. 57. AS 04.21.080(b)(9) is amended to read: 28  (9) "established village" means an area that does not contain any 29 part of an incorporated city or another established village and that is 30  (A) an unincorporated community that is in the unorganized 31 borough and that has 25 or more permanent residents; or

01  (B) an unincorporated community that is in an organized 02 borough, has 25 or more permanent residents, and 03  (i) is on a road system and is located more than 50 04 miles outside the boundary limits of a unified municipality, or 05  (ii) is not on a road system and is located more than 15 06 miles outside the boundary limits of a unified municipality; 07 * Sec. 58. AS 05.15 is amended by adding a new section to article 1 to read: 08  Sec. 05.15.097. NOTICE TO THE ALCOHOLIC BEVERAGE CONTROL 09 BOARD. If, after notice and hearing, the department determines that a person has 10 violated a provision of this chapter related to gambling and the person is a licensee or 11 permittee under AS 04, the department shall provide notice of the violation to the 12 Alcoholic Beverage Control Board. 13 * Sec. 59. AS 15.07.064(g) is amended to read: 14  (g) In this section, "established village" means an unincorporated 15 community that is in 16  (A) the unorganized borough and that has 25 or more 17 permanent residents; or 18  (B) an organized borough, has 25 or more permanent 19 residents, and 20  (i) is on a road system and is located more than 50 21 miles outside the boundary limits of a unified municipality, or 22  (ii) is not on a road system and is located more than 23 15 miles outside the boundary limits of a unified municipality 24 [HAS THE MEANING GIVEN IN AS 04.21.080]. 25 * Sec. 60. AS 18.65.085(a) is amended to read: 26  (a) There is established in the Department of Public Safety, division of state 27 troopers, a narcotic drugs and alcohol enforcement unit for the purpose of investigating 28 and combating the illicit sale and distribution of narcotic drugs and alcoholic beverages 29 in the state. Enforcement of the alcoholic beverage control laws shall focus primarily 30 on the investigation, apprehension, and conviction of persons who violate 31 AS 04.11.010 by selling, importing, or possessing alcoholic beverages in violation of

01 a local option [AN ORDINANCE] adopted by a municipality or established village 02 under AS 04.11.491 [AS 04.11.490 - 04.11.500]. 03 * Sec. 61. AS 18.65.085(c) is amended to read: 04  (c) The Department of Public Safety may establish and administer a reward 05 program, and provide grants to municipalities, established villages, and, at the request 06 of a municipality or established village, to a nonprofit association that administers a 07 village public safety officer program, for reward programs leading to the apprehension 08 and conviction of persons who violate AS 04.11.010 by selling, importing, or 09 possessing alcoholic beverages in violation of a local option [AN ORDINANCE] 10 adopted by a municipality or established village under AS 04.11.491 [AS 04.11.490 11 - 04.11.500]. 12 * Sec. 62. AS 29.20.270(e) is amended to read: 13  (e) The veto does not extend to an ordinance adopted under AS 04.11.501 14 [AS 04.11.498]. This subsection applies to home rule and general law municipalities. 15 * Sec. 63. AS 29.25.020(d) is amended to read: 16  (d) This section does not apply to an ordinance proposed under 17 AS 04.11.507(d) [AS 04.11.502(c)]. 18 * Sec. 64. AS 29.25.070(d) is amended to read: 19  (d) This section does not apply to an ordinance adopted under AS 04.11.501(c) 20 [AS 04.11.498(d) OR (e)]. 21 * Sec. 65. AS 29.35.080(a) is amended to read: 22  (a) A municipality may regulate the possession, barter, sale, importation, and 23 consumption of alcoholic beverages under AS 04.11.480 - 04.11.509 [IN 24 ACCORDANCE WITH AS 04.11.480 - 04.11.506] and AS 04.21.010. 25 * Sec. 66. AS 34.03.360(6) is amended to read: 26  (6) "illegal activity involving alcoholic beverages" means a person's 27 delivery of an alcoholic beverage in violation of AS 04.11.010(b) in an area where the 28 results of a local option election have, under AS 04.11.491 [AS 04.11.490 - 29 04.11.500], prohibited the Alcoholic Beverage Control Board from issuing, renewing, 30 or transferring a liquor license or permit under AS 04; 31 * Sec. 67. 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. 68. AS 04.11.090(c), 04.11.190, 04.11.490, 04.11.492, 04.11.496, 04.11.498, 17 04.11.500, 04.11.502, 04.11.504, 04.11.506, and 04.11.510(d) are repealed. 18 * Sec. 69. 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 section. 27 * Sec. 70. TRANSITION: EXISTING LOCAL OPTION PETITIONS. A petition to adopt 28 or remove a local option on file with a municipality or the lieutenant governor on the effective 29 date of this section that has not been voted on is void and may not be placed on an election 30 ballot. 31 * Sec. 71. TRANSITION: COMMUNITY LIQUOR LICENSES. A community liquor

01 license issued under AS 04.11.190 before the effective date of this section to operate a 02 beverage dispensary shall continue as a beverage dispensary license under AS 04.11.090. A 03 community liquor license issued under AS 04.11.190 before the effective date of this section 04 to operate a package store shall continue as a package store license under AS 04.11.150. 05 * Sec. 72. TRANSITION. A person licensed under AS 04.11.160 on the effective date of 06 this section shall submit the information required under AS 04.11.160(f), added by sec. 9 of 07 this Act, by September 30, 1995. 08 * Sec. 73. TRANSITION: IMPLEMENTATION OF BIENNIAL SEASONAL LICENSES. 09 (a) Approximately one-half of the applicants for 1996 renewal of a seasonal license issued 10 by the Alcoholic Beverage Control Board, as determined by the director of the Alcoholic 11 Beverage Control Board, shall be eligible for a one-year seasonal license. These licenses 12 expire, unless renewed, on December 31, 1996, and may be renewed biennially in even-numbered years after that. 13 The 1996 renewal fee for these licenses is one-half of the seasonal 14 biennial license fee. 15 (b) Applicants whose licenses are not renewed under (a) of this section shall be 16 eligible for a two-year seasonal license. These licenses expire, unless renewed, on 17 December 31, 1997, and may be renewed biennially in odd-numbered years. 18 (c) The director shall notify each licensee in writing as to whether the licensee shall 19 apply for renewal under (a) or (b) of this section, and of the actual amount of the renewal fee. 20 The notice must be given not later than December 1, 1995. However, the failure of the 21 director to provide the notice required in this subsection does not prevent a license from 22 expiring on February 28, 1996, under AS 04.11.540, if the renewal application is not filed on 23 or before that date. 24 * Sec. 74. TRANSITION: REGULATIONS. Notwithstanding sec. 78 of this Act, the 25 Alcoholic Beverage Control Board may proceed to adopt regulations necessary to implement 26 this Act. The regulations take effect under AS 44.62 (Administrative Procedure Act), but not 27 before July 1, 1995. 28 * Sec. 75. PROHIBITION ON PURCHASE OR CERTAIN ALCOHOLIC BEVERAGES. 29 Beginning July 1, 1995, and ending June 30, 1996, a person licensed as a wholesaler under 30 AS 04.11.160 may not purchase an alcoholic beverage that contains more than 76 percent 31 alcohol by volume.

01 * Sec. 76. Section 74 of this Act takes effect immediately under AS 01.10.070(c). 02 * Sec. 77. AS 04.16.110(2), enacted by sec. 32 of this Act, takes effect July 1, 1996. 03 * Sec. 78. Except as provided in secs. 76 and 77 of this Act, this Act takes effect July 1, 04 1995.