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CSHB 240(RLS): "An Act relating to brewery and brewpub licensing and to free samples of beer and wine provided by beverage dispensary licensees, wholesale licensees, and wholesale malt beverage and wine licensees."

00 CS FOR HOUSE BILL NO. 240(RLS) 01 "An Act relating to brewery and brewpub licensing and to free samples of beer and 02 wine provided by beverage dispensary licensees, wholesale licensees, and wholesale malt 03 beverage and wine licensees." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 04.11.090 is amended by adding a new subsection to read: 06 (h) Unless prohibited by AS 04.16.030, a holder of a beverage dispensary 07 license may provide a small sample of beer or wine free of charge to a customer on the 08 licensed premises. Notwithstanding AS 04.11.015, a holder of a beverage dispensary 09 license may advertise and promote the free samples to the public. A municipality may 10 not prohibit or restrict a holder of a beverage dispensary license from advertising, 11 promoting, offering, or providing free samples under this subsection. 12 * Sec. 2. AS 04.11.130(b) is amended to read: 13 (b) The holder of a brewery license may sell beer in quantities of 14 (1) not more [LESS] than five gallons a day to an individual who is

01 present on the licensed premises for consumption off the premises; 02 (2) more than five gallons a day to a person who is licensed under this 03 title, or in another state or country. 04 * Sec. 3. AS 04.11.130 is amended by adding a new subsection to read: 05 (e) Unless prohibited by AS 04.16.030, a holder of a brewery license may sell 06 not more than 24 ounces a day of the brewery's product to a person for consumption 07 on the premises if 08 (1) the brewery does not allow live entertainment, televisions, pool 09 tables, dart games, dancing, electronic or other games, game tables, or other 10 recreational or gaming opportunities on the premises where the consumption occurs; 11 (2) the brewery does not provide seats at the counter or bar where the 12 product is served; and 13 (3) the room where the consumption occurs is not open before 9:00 14 a.m. and serving of the product ends not later than 8:00 p.m. 15 * Sec. 4. AS 04.11.135(a) is amended to read: 16 (a) A brewpub license authorizes the holder of a beverage dispensary license 17 to 18 (1) manufacture on premises licensed under the beverage dispensary 19 license not more than 465,000 [150,000] gallons of beer in a calendar year; 20 (2) sell beer manufactured on premises licensed under the beverage 21 dispensary license for consumption on the licensed premises or other licensed 22 premises of the beverage dispensary licensee that are also licensed as a beverage 23 dispensary; 24 (3) sell beer manufactured on the premises licensed under the beverage 25 dispensary license in quantities of not more than five gallons a [PER] day to an 26 individual who is present on the licensed premises for consumption off the premises; 27 (4) provide a small sample of the brewpub's beer manufactured on the 28 premises free of charge unless prohibited by AS 04.16.030; [AND] 29 (5) sell beer manufactured on the premises licensed under the beverage 30 dispensary license to a person licensed as a wholesaler under AS 04.11.160; sales 31 under this paragraph may not exceed 37,200 gallons in a calendar year, including

01 sales under (6) of this subsection; and 02 (6) sell not more than 6,200 gallons in a calendar year of beer 03 manufactured on the premises to a person who is licensed under this title, or in 04 another state or country, if the premises licensed under the beverage dispensary 05 license are located in a community with a population of 75,000 or more [15,000 06 GALLONS OR THE AMOUNT SOLD UNDER THIS PARAGRAPH IN 07 CALENDAR YEAR 2001, PLUS 10 PERCENT, WHICHEVER AMOUNT IS 08 GREATER]. 09 * Sec. 5. AS 04.11.135(d) is amended to read: 10 (d) Notwithstanding (a) of this section, the holder of a brewpub license who, 11 under the provisions of AS 04.11.450(b), formerly held a brewery license and a 12 restaurant or eating place license and who, under the former brewery license, 13 manufactured beer at a location other than the premises licensed under the former 14 restaurant or eating place license may 15 (1) manufacture not more than 465,000 [150,000] gallons of beer in a 16 calendar year on premises other than the premises licensed under the beverage 17 dispensary license; 18 (2) provide a small sample of the manufactured beer free of charge at 19 the location the beer is manufactured unless prohibited by AS 04.16.030; and 20 (3) sell the beer authorized to be manufactured under this subsection 21 (A) on the premises licensed under the beverage dispensary 22 license or other licensed premises of the beverage dispensary licensee that are 23 also licensed as a beverage dispensary; 24 (B) to a wholesaler licensed under AS 04.11.160; sales under 25 this subparagraph may not exceed 37,200 gallons in a calendar year, 26 including sales under (D) of this paragraph; [15,000 GALLONS OR THE 27 AMOUNT SOLD UNDER THIS SUBPARAGRAPH IN CALENDAR YEAR 28 2001, PLUS 10 PERCENT, WHICHEVER AMOUNT IS GREATER; OR] 29 (C) to an individual who is present on the premises described 30 under (A) of this paragraph, or where the beer is manufactured, in quantities of 31 not more than five gallons a [PER] day for consumption off the premises;

01 and 02 (D) to a person licensed under this title, or in another state 03 or country, if the premises where the beer is manufactured are located in 04 a community with a population of 75,000 or more; sales under this 05 subparagraph may not exceed 6,200 gallons in a calendar year. 06 * Sec. 6. AS 04.11.135(e) is amended to read: 07 (e) Notwithstanding (a) of this section, a brewpub license authorizes the 08 holder of a restaurant or eating place license to (1) manufacture on premises licensed 09 under the restaurant or eating place license not more than 465,000 [150,000] gallons of 10 beer in a calendar year; (2) sell beer manufactured on premises licensed under the 11 restaurant or eating place license for consumption on the licensed premises; (3) sell 12 beer manufactured on the premises licensed under the restaurant or eating place 13 license in quantities of not more than five gallons a [PER] day for consumption off 14 the premises to an individual who is present on the licensed premises; and (4) provide 15 a small sample of the brewpub's beer manufactured on the premises free of charge 16 unless prohibited by AS 04.16.030. A person who holds a brewpub license under this 17 subsection may not hold more than one brewpub license. 18 * Sec. 7. AS 04.11.160 is amended by adding a new subsection to read: 19 (h) Unless prohibited by AS 04.16.030, a holder of a wholesale license or a 20 wholesale malt beverage and wine license may provide a small sample of beer or wine 21 free of charge to a customer on the licensed premises of a beverage dispensary 22 licensee. 23 * Sec. 8. AS 04.16.015(a) is amended to read: 24 (a) On premises where alcoholic beverages are sold by the drink, a licensee or 25 a licensee's agent or employee may not 26 (1) except as provided in AS 04.11.090(h), offer or deliver, as a 27 marketing device to the general public, free alcoholic beverages to a patron; 28 (2) deliver an alcoholic beverage to a person already possessing two or 29 more; 30 (3) sell, offer to sell, deliver alcoholic beverages to a person or group 31 of persons at a price less than the price regularly charged for the beverages during the

01 same calendar week, except at private functions not open to the general public; 02 (4) sell, offer to sell, or deliver an unlimited number of alcoholic 03 beverages to a person or group of persons during a set period of time for a fixed price; 04 (5) sell, offer to sell, or deliver alcoholic beverages to a person or 05 group of persons on any one day at prices less than those charged the general public 06 on that day, except at private functions not open to the general public; 07 (6) encourage or permit an organized game or contest on the licensed 08 premises that involves drinking alcoholic beverages or the awarding of alcoholic 09 beverages as prizes.