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SB 76: "An Act relating to alcoholic beverages; relating to the regulation of manufacturers, wholesalers, retailers, and common carriers of alcoholic beverages; relating to licenses, endorsements, and permits involving alcoholic beverages; relating to the Alcoholic Beverage Control Board; relating to offenses involving alcoholic beverages; amending Rule 17, Alaska Rules of Minor Offense Procedure; and providing for an effective date."

00 SENATE BILL NO. 76 01 "An Act relating to alcoholic beverages; relating to the regulation of manufacturers, 02 wholesalers, retailers, and common carriers of alcoholic beverages; relating to licenses, 03 endorsements, and permits involving alcoholic beverages; relating to the Alcoholic 04 Beverage Control Board; relating to offenses involving alcoholic beverages; amending 05 Rule 17, Alaska Rules of Minor Offense Procedure; and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 04.06.075 is amended by adding a new subsection to read: 08 (b) The director shall prepare and submit to the board an annual budget for the 09 board that includes funding for administration, enforcement, education, training, and 10 prevention activities under this title. 11 * Sec. 2. AS 04.06.080 is amended to read: 12 Sec. 04.06.080. Delegation of authority. The director shall issue, renew, 13 transfer, suspend, or revoke all licenses, endorsements, and permits at the direction of

01 the board. However, notwithstanding AS 04.06.090(b) [AS 04.11.070], the board may 02 delegate authority to the director to temporarily grant or deny the issuance, renewal, or 03 transfer of licenses, endorsements, and permits. The director's temporary grant or 04 denial of the issuance, renewal, or transfer of a license, endorsement, or permit is not 05 binding on the board. The board may delegate to the director any duty imposed by this 06 title except its power to propose and adopt regulations. 07 * Sec. 3. AS 04.06.090(b) is amended to read: 08 (b) Only the board may issue, renew, transfer, relocate, suspend, or 09 revoke a license or endorsement under this title. The board shall review all 10 applications for licenses and endorsements made under this title and may order the 11 director to issue, renew, revoke, transfer, or suspend licenses, endorsements, and 12 permits authorized under this title. 13 * Sec. 4. AS 04.06.090(e) is amended to read: 14 (e) The board shall promptly notify all licensees and municipalities of major 15 changes to this title and to regulations adopted under this title. However, if changes 16 only affect specific classifications of licenses, endorsements, and permits, the board 17 need only notify those licensees and municipalities directly affected by the changes. 18 Current copies of this title and current copies of the regulations adopted under it shall 19 be made available at all offices in the state of the Department of Commerce, 20 Community, and Economic Development and the detachment headquarters and posts 21 maintained by the division of Alaska state troopers in the Department of Public Safety. 22 * Sec. 5. AS 04.06.090 is amended by adding new subsections to read: 23 (f) The board shall develop a comprehensive plan to educate public safety 24 professionals, the alcoholic beverage industry, individuals under 21 years of age, local 25 governments, established villages, and the general public on the responsible use of 26 alcoholic beverages and on relevant state statutes, regulations, and policies. The board 27 shall update and revise the plan annually. 28 (g) The board shall review the fees specified in this title and regulations 29 adopted under this title at least every 10 years. 30 (h) The board may, within 30 days after the introduction of a bill amending a 31 provision of this title or adding a new provision to this title, prepare an advisory

01 opinion regarding the changes proposed in the bill. 02 (i) The board shall provide a copy of a conviction or violation under this title 03 to the holder of a license if an offense or violation occurred on the holder's licensed 04 premises and the holder is not the subject of the conviction or violation. 05 (j) The board shall post information on the board's Internet website about fetal 06 alcohol syndrome and fetal alcohol effects resulting from a woman consuming alcohol 07 during pregnancy. 08 * Sec. 6. AS 04.06.095 is amended to read: 09 Sec. 04.06.095. Statewide database. (a) The board, after consulting with 10 package store licensees, shall create and maintain a statewide database that contains a 11 monthly record of the alcohol purchased by, and shipped to, a person who resides in a 12 municipality or established village that has restricted the sale of alcoholic beverages 13 under AS 04.11.491(a)(1), (2), or (3) or (b)(1) or (2). 14 (b) Except as otherwise specifically provided in this section, the information 15 contained in the database is confidential and is not subject to inspection or copying 16 under AS 40.25.110 - 40.25.220. Personally identifiable information, including 17 business names and addresses, [INFORMATION] in the database shall be purged 18 one year after entry unless it is needed for criminal investigation or prosecution. All 19 other information in the database shall be retained in aggregate form and purged 20 10 years after entry. Information in the database is available only to 21 (1) a package store licensee, agent, or employee to consult before 22 shipping alcohol to a purchaser in a restricted area under a package store shipping 23 endorsement as provided in AS 04.09.460 [AS 04.11.150(g)]; 24 (2) a law enforcement officer; 25 (3) a probation or parole officer; 26 (4) the board; and 27 (5) the person who is the subject of the information; the board shall 28 adopt regulations concerning access by a person to information contained in the 29 database of the purchases by, and shipments to, that person. 30 * Sec. 7. AS 04.06.095 is amended by adding a new subsection to read: 31 (c) The board shall produce an annual report of the aggregate regional and

01 statewide data from the database, excluding personally identifiable information and 02 the names and addresses of businesses, and shall make the report available for public 03 inspection and copying under AS 40.25.110 - 40.25.220. The report must include 04 information about the total volume of alcohol received in each municipality or 05 established village. 06 * Sec. 8. AS 04.06.100(b) is amended to read: 07 (b) The subjects covered by regulations adopted under (a) of this section may 08 include the following matters: 09 (1) employment, conduct, and duties of the director and of regular and 10 contractual employees of the board; 11 (2) procedures for the issuance, denial, renewal, transfer, revocation, 12 and suspension of licenses, endorsements, and permits; 13 (3) terms and conditions of licenses, endorsements, and permits 14 issued; 15 (4) fees for licenses, endorsements, and permits issued for which fees 16 are not prescribed by statute; 17 (5) conduct of regular and special meetings of the board; 18 (6) delegation to the director of routine administrative functions and 19 powers; 20 (7) the temporary granting or denial of issuance, transfer, and renewal 21 of licenses and endorsements; 22 (8) manner of giving any notice required by law or regulation when not 23 provided for by statute; 24 (9) requirements relating to the qualifications of licensees, the 25 conditions upon which a license may be issued, the accommodations of licensed 26 premises, and board inspection of those premises; 27 (10) making of reports by wholesalers; 28 (11) purchase of fidelity bonds by the state for the director and the 29 employees of the board; 30 (12) prohibition of possession of alcoholic beverages by drunken 31 persons and by minors;

01 (13) required reports from corporations licensed under this title, 02 including reports of stock ownership and transfers and changes of officers and 03 directors; 04 (14) [CREATION OF CLASSIFICATIONS OF LICENSES OR 05 PERMITS NOT PROVIDED FOR IN THIS TITLE; 06 (15)] establishment and collection of fees to be paid on application for 07 a license, endorsement, or permit; 08 (15) [(16)] required reports from partnerships and limited partnerships 09 licensed under this title, including reports of transferred interests of 10 percent or 10 more; 11 (16) [(17)] required reports from limited liability organizations licensed 12 under this title, including reports of the transfer of a member's interest if the transfer 13 equals 10 percent or more of the ownership of the limited liability organization and 14 any change of managers. 15 * Sec. 9. AS 04 is amended by adding a new chapter to read: 16 Chapter 09. Licenses, Endorsements, and Permits. 17 Article 1. License Types. 18 Sec. 04.09.010. Types of licenses. A license defines activities allowed daily on 19 licensed premises. License type is a general category of license activity based on the 20 three-tier system of alcohol regulation. The three types of licenses the board may issue 21 are manufacturer, wholesale, and retail licenses. The board may issue only the licenses 22 authorized in AS 04.09.020 - 04.09.360. 23 Article 2. Manufacturer Licenses. 24 Sec. 04.09.020. Brewery manufacturer license. (a) A brewery manufacturer 25 license authorizes the holder to operate a brewery for the manufacture, packaging, 26 storing, and sale of its brewed beverages to a buyer as permitted in AS 04.09.050. 27 (b) The biennial brewery manufacturer license fee is $1,500. 28 (c) At least 80 percent of the final product of brewed beverages offered for 29 sale by the holder of a brewery manufacturer license must be manufactured on the 30 holder's licensed premises in the state. 31 Sec. 04.09.030. Winery manufacturer license. (a) A winery manufacturer

01 license authorizes the holder to operate a winery for the manufacture, packaging, 02 storing, and sale of its wine to a buyer as permitted in AS 04.09.050. 03 (b) The biennial winery manufacturer license fee is $1,500. 04 (c) At least 80 percent of the final product of wine offered for sale by the 05 holder of a winery manufacturer license must be manufactured on the holder's licensed 06 premises in the state. 07 Sec. 04.09.040. Distillery manufacturer license. (a) A distillery manufacture 08 license authorizes the holder to operate a distillery for the manufacture, packaging, 09 storing, and sale of its distilled spirits to a buyer as permitted in AS 04.09.050. 10 (b) The biennial distillery manufacturer license fee is $1,500. 11 (c) At least 80 percent of the final product of distilled spirits offered for sale 12 by the holder of a distillery manufacturer license must be manufactured on the holder's 13 licensed premises in the state. 14 Sec. 04.09.050. Authorized sales. (a) The holder of a manufacturer license 15 that annually produces in total less than 300,000 barrels of brewed beverages, less than 16 50,000 nine-liter-equivalent cases of wine, or less than 50,000 nine-liter-equivalent 17 cases of distilled spirits may sell its product to 18 (1) the holder of a wholesale license issued under this chapter; 19 (2) the holder of a retail license issued under this chapter; 20 (3) the holder of a permit issued under this chapter; 21 (4) an entity in another state or country. 22 (b) The holder of a manufacturer license that annually produces in total 23 300,000 barrels or more of brewed beverages, 50,000 nine-liter-equivalent cases or 24 more of wine, or 50,000 nine-liter-equivalent cases or more of distilled spirits may sell 25 its product to 26 (1) the holder of a wholesale license issued under this chapter; 27 (2) an entity in another state or country. 28 (c) For purposes of calculating the volume that the holder of a manufacturer 29 license produces under this section, the volume of production must include all 30 production by 31 (1) the holder of the manufacturer's license; and

01 (2) an officer, director, agent, employee, or affiliate of the holder; in 02 this paragraph, "affiliate" means a person that directly or indirectly, through one or 03 more intermediaries, controls, or is controlled by, or is under common control with, a 04 corporation. 05 Sec. 04.09.060. Unlicensed manufacturing. (a) A person commits the crime 06 of unlicensed manufacturing if the person knowingly operates a 07 (1) brewery without a brewery manufacturer license; 08 (2) winery without a winery manufacturer license; or 09 (3) distillery without a distillery manufacturer license. 10 (b) Unlicensed manufacturing is a class A misdemeanor. 11 Sec. 04.09.070. Unlicensed manufacturing in a local option area. (a) A 12 person commits the crime of unlicensed manufacturing in a local option area if the 13 person knowingly operates in an area that has adopted a local option under 14 AS 04.11.491 a 15 (1) brewery without a brewery manufacturer license; 16 (2) winery without a winery manufacturer license; or 17 (3) distillery without a distillery manufacturer license. 18 (b) Unlicensed manufacturing in a local option area is a class C felony. 19 Sec. 04.09.080. Unauthorized manufacturer sale. (a) Except as provided in 20 AS 04.09.310 - 04.09.330, a person who holds a manufacturer license commits the 21 offense of unauthorized manufacturer sale if the person sells its product in violation of 22 AS 04.09.050. 23 (b) Unauthorized manufacturer sale is a violation. 24 Sec. 04.09.090. Definition. In AS 04.09.020 - 04.09.090, "packaging" means 25 the process of containing alcoholic beverages in bottles or other types of containers for 26 purpose of resale. 27 Article 3. Wholesale Licenses. 28 Sec. 04.09.100. General wholesale license. (a) A general wholesale license 29 authorizes the holder to sell alcoholic beverages at wholesale. The holder of a general 30 wholesale license may not sell to a person not licensed under this title, except as 31 provided in AS 04.21.040.

01 (b) The biennial general wholesale license fee is $2,000. 02 (c) In addition to the license fee under (b) of this section, the holder of a 03 general wholesale license shall pay an annual fee based on the total value of business 04 transacted by the wholesale business, including the excise tax imposed by 05 AS 43.60.010. If the total value of business transacted during the calendar year 06 including the excise tax imposed by AS 43.60.010 is 07 (1) less than or equal to $100,000, then the annual fee is $0; 08 (2) over $100,000 and not over $150,000, then the annual fee is $250; 09 (3) over $150,000 and not over $200,000, then the annual fee is $500; 10 (4) over $200,000 and not over $250,000, then the annual fee is $750; 11 (5) over $250,000 and not over $300,000, then the annual fee is 12 $1,000; 13 (6) over $300,000 and not over $350,000, then the annual fee is 14 $1,250; 15 (7) over $350,000 and not over $400,000, then the annual fee is 16 $1,500; 17 (8) over $400,000 and not over $500,000, then the annual fee is 18 $2,000; 19 (9) over $500,000 and not over $600,000, then the annual fee is 20 $2,500; 21 (10) over $600,000 and not over $700,000, then the annual fee is 22 $3,000; 23 (11) over $700,000 and not over $800,000, then the annual fee is 24 $3,500; 25 (12) over $800,000 and not over $1,000,000, then the annual fee is 26 $4,500; 27 (13) over $1,000,000, then the annual fee is $10,000. 28 Sec. 04.09.110. Limited wholesale brewed beverage and wine license. (a) A 29 limited wholesale brewed beverage and wine license authorizes the holder to sell 30 brewed beverages and wine at wholesale. The holder of a limited wholesale brewed 31 beverage and wine license may not sell to a person not licensed under this title, except

01 as provided in AS 04.21.040. 02 (b) The biennial limited wholesale brewed beverage and wine license fee is 03 $400. 04 (c) In addition to the license fee under (b) of this section, the holder of a 05 limited wholesale brewed beverage and wine license shall pay an annual fee based on 06 the total value of business transacted by the wholesale business, including the excise 07 tax imposed by AS 43.60.010. If the total value of business transacted during the 08 calendar year including the excise tax imposed by AS 43.60.010 is 09 (1) less than or equal to $20,000, then the annual fee is $0; 10 (2) over $20,000 and not over $50,000, then the annual fee is $150; 11 (3) over $50,000 and not over $100,000, then the annual fee is $500; 12 (4) over $100,000 and not over $150,000, then the annual fee is $750; 13 (5) over $150,000 and not over $200,000, then the annual fee is 14 $1,000; 15 (6) over $200,000 and not over $400,000, then the annual fee is 16 $2,000; 17 (7) over $400,000 and not over $600,000, then the annual fee is 18 $3,000; 19 (8) over $600,000 and not over $800,000, then the annual fee is 20 $4,000; 21 (9) over $800,000, then the annual fee is $10,000. 22 Sec. 04.09.120. Annual fee and affidavit. (a) Not later than February 28 of 23 each year the holder of a general wholesale license or a limited wholesale brewed 24 beverage and wine license shall pay the annual fee for the license for the preceding 25 calendar year, and file with the board an affidavit showing the 26 (1) total value of business transacted under the license by the 27 wholesale business, including the excise tax imposed by AS 43.60.010, during the 28 preceding calendar year; and 29 (2) location of the licensed premises at which the business was 30 transacted. 31 (b) Failure to file an affidavit under (a) of this section or the expiration of a

01 license under AS 04.11.540 does not relieve a licensee from paying the prescribed 02 annual fee. 03 Sec. 04.09.130. Wholesale supplier declaration. (a) A person who applies for 04 issuance or renewal of a general wholesale license or a limited wholesale brewed 05 beverage and wine license shall submit to the board, on a form prescribed by the 06 board, a declaration that the person is the appointed wholesaler of the distiller, brewer, 07 vintner, or importer of each product line of alcoholic beverage that the person intends 08 to purchase, offer for sale, or sell. The form must include a space for the person to 09 indicate the total number of suppliers. The board may request a list of suppliers, or 10 additional information about a product line. 11 (b) A person filing a declaration under this section shall pay a biennial filing 12 fee. If the declaration lists 13 (1) one to 25 suppliers, the fee is $500; 14 (2) 26 to 50 suppliers, the fee is $1,000; 15 (3) 51 to 75 suppliers, the fee is $1,500; 16 (4) 76 or more suppliers, the fee is $2,000. 17 (c) In this section, "distiller, brewer, vintner, or importer" includes an 18 exclusive agent of the distiller, brewer, vintner, or importer if the agent's name appears 19 on the label of the brand approved by the Alcohol and Tobacco Tax and Trade Bureau. 20 Sec. 04.09.140. Unlicensed wholesale sale. (a) A person commits the crime of 21 unlicensed wholesale sale if the person knowingly sells 22 (1) distilled spirits at wholesale without a general wholesale license; or 23 (2) brewed beverages or wine at wholesale without a general wholesale 24 license or a limited wholesale brewed beverage and wine license. 25 (b) Unlicensed wholesale sale is a class A misdemeanor. 26 Sec. 04.09.145. Unlicensed wholesale sale in a local option area. (a) A 27 person commits the crime of unlicensed wholesale sale in a local option area if the 28 person knowingly sells in an area that has adopted a local option under AS 04.11.491 29 (1) distilled spirits at wholesale without a general wholesale license; or 30 (2) brewed beverages or wine at wholesale without a general wholesale 31 license or a limited wholesale brewed beverage and wine license.

01 (b) Unlicensed wholesale sale in a local option area is a class C felony. 02 Sec. 04.09.150. Failure to pay annual fee or file affidavit. (a) A person 03 commits the offense of failure to pay an annual wholesale fee or file a wholesale 04 affidavit if the person fails to pay the annual fee or file the affidavit as required under 05 AS 04.09.120. 06 (b) Failure to pay an annual wholesale fee or file a wholesale affidavit is a 07 violation. 08 Sec. 04.09.160. Failure to pay biennial fee or file declaration. (a) A person 09 commits the offense of failure to pay a biennial supplier fee or file a supplier 10 declaration if the person fails to pay the biennial supplier fee or file the declaration as 11 required under AS 04.09.130. 12 (b) Failure to pay a biennial supplier fee or file a supplier declaration is a 13 violation. 14 Article 4. Retail Licenses. 15 Sec. 04.09.200. Beverage dispensary license. (a) A beverage dispensary 16 license authorizes the holder to sell or serve on the licensed premises alcoholic 17 beverages for consumption only on the licensed premises. 18 (b) The biennial beverage dispensary license fee is $2,500. 19 (c) The holder of a beverage dispensary license may not maintain on the 20 licensed premises more than one room in which there is regularly maintained a fixed 21 counter or service bar that has plumbing connections to permanent plumbing at which 22 alcoholic beverages are sold or served to members of the public for consumption, 23 unless the license has a multiple fixed counter endorsement under AS 04.09.420. 24 (d) Except as provided under AS 04.09.610, 04.09.640, 04.09.670, and 25 AS 04.16.120(c), the holder of a beverage dispensary license who sells or serves 26 alcoholic beverages off the licensed premises or permits consumption off the premises 27 of alcoholic beverages sold or served on the premises commits the offense of 28 unauthorized beverage dispensary activity. 29 (e) Unauthorized beverage dispensary activity is a violation. 30 Sec. 04.09.210. Restaurant or eating place license. (a) A restaurant or eating 31 place license authorizes a restaurant or eating place to sell brewed beverages and wine

01 for consumption only on the licensed premises. 02 (b) The biennial restaurant or eating place license fee is $1,250. 03 (c) The board may issue or renew a license under this section only if 04 (1) the board determines that the licensed premises is a bona fide 05 restaurant as defined in AS 04.21.080(b); 06 (2) the licensee has, or the licensee has simultaneously applied for, a 07 restaurant endorsement; and 08 (3) the sale and service of food and alcoholic beverages and any other 09 business conducted on the licensed premises of the restaurant or eating place is under 10 the sole control of the licensee. 11 (d) The holder of a restaurant or eating place license shall ensure that gross 12 receipts from the sale of food for consumption on the licensed premises are at least 13 twice the total of the gross receipts from the sale of alcoholic beverages for 14 consumption on the licensed premises in each calendar year. At the time the holder 15 submits an application for renewal of the license, the holder shall submit a statement 16 to the board certifying that the holder has met the requirement under this subsection 17 for the designated period of the license under AS 04.11.680. The board may renew a 18 restaurant or eating place license only if the licensee's statement provides evidence 19 satisfactory to the board that, during the designated period of the license under 20 AS 04.11.680, the gross receipts from the sale of food for consumption on the licensed 21 premises were at least twice the total of the gross receipts from the sale of alcoholic 22 beverages for consumption on the licensed premises. 23 (e) The holder of a restaurant or eating place license may not provide 24 entertainment on the licensed premises before 3:00 p.m. or after 11:00 p.m. except 25 with the approval of the director. The director may grant approval for entertainment at 26 other times only upon the written request of the licensee, and only for a specific 27 occasion. The director may not grant approval for entertainment on the licensed 28 premises of an individual licensee more than nine times in a calendar year. 29 (f) Except as provided under AS 04.09.620, 04.09.640, and AS 04.16.120(c), 30 the holder of a restaurant or eating place license commits the offense of failure to 31 comply with the terms of a restaurant or eating place license if the person sells brewed

01 beverages or wine in violation of (a) of this section or fails to comply with (e) of this 02 section. 03 (g) Failure to comply with the terms of a restaurant or eating place license is a 04 violation. 05 Sec. 04.09.220. Club license. (a) A club license authorizes a club or 06 organization to sell alcoholic beverages for consumption only on the licensed 07 premises. 08 (b) The biennial fee for a club license is $2,500. 09 (c) The board may issue a club license only to an organization operated for 10 social, recreational, benevolent, or athletic purposes and not for profit. The board may 11 issue a club license only to a club, fraternal organization, patriotic organization, or 12 social organization that has been 13 (1) chartered by a state or national organization for a period of two 14 consecutive years before application for a license under this section; or 15 (2) chartered by a national organization that has maintained a chartered 16 club or organization within the state for a period of at least 20 years. 17 (d) Alcoholic beverages sold under a club license may be purchased only by 18 (1) members of the club and their families; 19 (2) widows or widowers of deceased members of the club who have 20 been accorded club privileges; and 21 (3) military personnel on active duty who are extended the privilege by 22 patriotic organizations. 23 (e) Alcoholic beverages may be purchased only in the portion of the club 24 rooms that are part of the licensed premises. 25 (f) Guests who enter the club premises on the invitation of a member and in 26 the company of the member may be served but not sold alcoholic beverages. A guest 27 shall leave the premises immediately upon the departure of the member who extended 28 the invitation to enter. 29 (g) Notwithstanding AS 04.16.049, access by persons under 21 years of age to 30 the 31 (1) licensed premises of a club is permitted when alcoholic beverages

01 are not present; and 02 (2) premises of a patriotic organization licensed as a club under this 03 section is permitted when alcoholic beverages are present, if the person possesses a 04 valid active duty military or armed forces identification card issued by the United 05 States Department of Defense or the United States Department of Homeland Security. 06 (h) The holder of a club license may not serve or sell alcoholic beverages for 07 use or consumption off the licensed premises of the club or organization, including use 08 or consumption by a club member or employee, except under a club caterer's permit. 09 (i) The holder of a club license may not 10 (1) solicit public patronage of the club premises, except as approved by 11 the board; 12 (2) distribute income from the sale of alcoholic beverages under the 13 license to a member, director, or officer; 14 (3) sell or serve alcoholic beverages in club rooms outside the portion 15 of the club rooms that are part of the licensed premises. 16 (j) In this section, "member" means a holder of a full year of paid membership 17 entitling the holder to all voting rights and privileges of membership under the 18 constitution or bylaws of the club or organization. 19 (k) The holder of a club license commits the offense of failure to comply with 20 the terms of a club license if the person sells alcoholic beverages in violation of (a) of 21 this section or violates (d), (e), (f), (h), or (i) of this section. 22 (l) Failure to comply with the terms of a club license is a violation. 23 Sec. 04.09.230. Package store license. (a) A package store license authorizes 24 the holder to operate a package store to store alcoholic beverages with federally 25 compliant labels, and to sell alcoholic beverages with federally compliant labels to a 26 person present on the licensed premises. 27 (b) The biennial package store license fee is $1,500. 28 (c) The licensed premises occupied by the holder of a package store license 29 may not be connected by a door, opening, or other means of passage intended for the 30 access of the general public to an adjacent retail business not licensed under this title 31 unless approved by the board.

01 (d) If the holder of a package store license also holds a beverage dispensary 02 license, the licensed premises of the package store are contained within or are adjacent 03 to the licensed premises of the beverage dispensary, and the only public entrance to 04 the package store is by a door or other means within the beverage dispensary, the 05 board shall determine whether additional entrances to the package store are necessary 06 for enforcement purposes, to meet health and fire safety standards, or for the 07 convenience of the public. 08 (e) The holder of a package store license may not 09 (1) offer alcoholic beverages for consumption on the licensed premises 10 or allow the consumption of alcoholic beverages on the licensed premises except as 11 authorized by a package store sampling endorsement issued under AS 04.09.490 or a 12 tasting event permit issued under AS 04.09.670; or 13 (2) subdivide alcoholic beverages except as authorized by a package 14 store repackaging endorsement issued under AS 04.09.480. 15 (f) The holder of a package store license commits the offense of failure to 16 comply with the terms of a package store license if the person stores or sells alcoholic 17 beverages in violation of (a) of this section or fails to comply with (c) or (e) of this 18 section. 19 (g) Failure to comply with the terms of a package store license is a violation. 20 Sec. 04.09.240. Pub license. (a) A pub license authorizes the holder to sell 21 brewed beverages and wine for consumption only at a designated premises located on 22 the campus of an accredited college or university. 23 (b) The biennial pub license fee is $1,250. 24 (c) The board may not 25 (1) issue more than one pub license for each accredited college or 26 university campus in the state; and 27 (2) issue or renew a pub license without the written approval of the 28 governing body of the accredited college or university. 29 (d) The board may designate two alternating premises for a pub license if 30 (1) both premises 31 (A) are located on the accredited college or university campus;

01 (B) are not located in contiguous rooms or adjacent buildings; 02 and 03 (C) are under the licensee's control; 04 (2) at any time, only one location is operating as a licensed premises 05 with specified operating hours approved by the board; and 06 (3) all alcoholic beverages are either removed from the alternate 07 premises or stored in a secure location that is not accessible to the general public 08 during times when the alternate premises is not operating as a licensed premises. 09 (e) The board may suspend or revoke a licensee's use of an alternate premises 10 under (d) of this section after providing written notice and an opportunity to be heard 11 to the licensee. 12 (f) In this section, "accredited college or university" means a college or 13 university accredited by the Northwest Commission on Colleges and Universities. 14 (g) The holder of a pub license commits the offense of failure to comply with 15 the terms of a pub license if the person sells brewed beverages or wine in violation of 16 (a) of this section. 17 (h) Failure to comply with the terms of a pub license is a violation. 18 Sec. 04.09.250. Theater license. (a) A theater license authorizes the holder of 19 a beverage dispensary license or a restaurant or eating place license to sell alcoholic 20 beverages for consumption on licensed premises at a specified theater site, except that 21 a restaurant or eating place licensee with a theater license may only sell brewed 22 beverages and wine. 23 (b) The biennial theater license fee is $1,250. 24 (c) The holder of a theater license may sell or serve alcoholic beverages only 25 in designated areas on the licensed premises, and only for one hour before the event 26 and during intermissions. 27 (d) The holder of a theater license may not sell, serve, or permit the 28 consumption of alcoholic beverages in the audience viewing area. 29 (e) The holder of a theater license shall post the license conspicuously in the 30 theater during times when alcoholic beverages are sold. 31 (f) The board may not approve an application for transfer of a theater license

01 to another location. 02 (g) The board may deny an application for renewal of a theater license if the 03 theater license was not used for at least one event during each calendar year of the 04 license period. 05 (h) In this section, "theater" means a location where events, including plays, 06 operas, orchestra concerts, readings, and similar activities as determined by the board 07 are presented by live performers on a stage. 08 (i) A person commits the offense of failure to comply with the terms of a 09 theater license if the person sells, serves, or permits the consumption of alcoholic 10 beverages except as permitted in this section or fails to post the license as required by 11 this section. 12 (j) Failure to comply with the terms of a theater license is a violation. 13 Sec. 04.09.260. Common carrier dispensary license. (a) A common carrier 14 dispensary license authorizes the holder to sell alcoholic beverages for consumption 15 aboard a boat or train licensed by a state or federal agency for passenger travel, or 16 aboard aircraft operated by an airline licensed by a state or federal agency for 17 passenger travel. 18 (b) Except as provided for airlines under (c) of this section, the biennial 19 common carrier dispensary license fee is $1,000 for each of the first 10 licenses a 20 common carrier holds and $100 for each additional license issued to the common 21 carrier after the first 10 licenses. 22 (c) The biennial fee for a common carrier dispensary license issued to an 23 airline is the fee specified under (b) of this section for each aircraft in which alcoholic 24 beverages are served or $2,000 for each community served by the airline. An airline 25 shall specify the fee applicable to the license at the time of the airline's application for 26 issuance or renewal of the license. 27 (d) Except for a common carrier that is an airline, a common carrier shall 28 obtain a license for each boat or train in which alcoholic beverages are served. After 29 obtaining an initial license for the first boat or train, the common carrier may obtain 30 additional licenses for additional boats or trains upon making a written request 31 identifying the boat or train in the manner prescribed by the board, and paying the

01 biennial fee for additional licensed premises as required by (b) of this section. 02 (e) The holder of a common carrier dispensary license who exceeds the 03 authority granted in (a) of this section commits the crime of unauthorized common 04 carrier dispensary activity. 05 (f) Unauthorized common carrier dispensary activity is a class A 06 misdemeanor. 07 (g) The holder of a common carrier dispensary license who fails to comply 08 with (b) - (d) of this section commits the offense of common carrier dispensary 09 noncompliance. 10 (h) Common carrier dispensary noncompliance is a violation and is punishable 11 by a fine of $500 for each boat, train, or aircraft not in compliance with this section. 12 Sec. 04.09.270. Sporting event license. (a) A sporting event license authorizes 13 the holder to sell brewed beverages and wine at a sporting event site during and one 14 hour before and after a sporting event that is not a school event, for consumption on 15 designated areas at the sporting event site. 16 (b) The biennial sporting event license fee is $1,250. 17 (c) In this section, "sporting event site" includes a location where baseball, 18 hockey, rugby, soccer, or football games, car races, dog sled racing events, or curling 19 matches are regularly held during a season. 20 (d) The holder of a sporting event license who sells brewed beverages or wine 21 off the licensed premises or during hours not authorized under (a) of this section or 22 who permits consumption off the premises of brewed beverages or wine sold on the 23 premises commits the offense of unauthorized sporting event activity. 24 (e) Unauthorized sporting event activity is a violation. 25 (f) The holder of a recreational site license issued under former AS 04.11.210 26 offering, on the effective date of this section, on the recreational site's licensed 27 premises brewed beverages and wine for sale to the public for consumption on the 28 premises may offer brewed beverages and wine for sale to the public for consumption 29 on the premises for a period ending on December 31, 2025, for a license renewing on 30 an odd-numbered year, or December 31, 2026, for a license renewing on an even- 31 numbered year.

01 Sec. 04.09.280. Outdoor recreation lodge license. (a) An outdoor recreation 02 lodge license authorizes the holder to sell alcoholic beverages to a registered overnight 03 guest or off-duty staff of the lodge for consumption on the licensed premises or in 04 conjunction with purchased outdoor recreation activities provided by the licensee. 05 (b) The biennial outdoor recreation lodge license fee is $2,500. 06 (c) The board may not grant an application for transfer of an outdoor 07 recreation lodge license to another location. 08 (d) In this section, "outdoor recreation lodge" means a licensed business that 09 provides overnight accommodations and meals, is primarily involved in offering 10 opportunities for persons to engage in outdoor recreation activities, and has a 11 minimum of two guest rooms. 12 (e) The holder of an outdoor recreation lodge license who sells alcoholic 13 beverages in violation of the authority granted under (a) of this section commits the 14 offense of unauthorized outdoor recreation lodge activity. 15 (f) Unauthorized outdoor recreation lodge activity is a violation. 16 Sec. 04.09.290. Golf course license. (a) A golf course license authorizes the 17 holder to sell brewed beverages and wine for consumption on the licensed premises. 18 (b) The biennial golf course license fee is $1,250. 19 (c) An application for a golf course license must include 20 (1) a drawing of the golf course with an annotated illustration and 21 description of the portions of the course that are intended to be licensed premises; and 22 (2) a sample food menu. 23 (d) The board may not approve an application for transfer of a golf course 24 license to another location. 25 (e) The holder of a golf course license shall make food similar to that listed in 26 the sample menu available during times when brewed beverages and wine are sold, 27 served, and consumed on the licensed premises. 28 (f) The holder of a golf course license may not allow a person other than the 29 holder or an agent or employee of the holder, in the regular course of employment, to 30 bring alcoholic beverages onto the licensed premises or other portions of the course 31 for consumption.

01 (g) In this section, "licensed premises" includes the golf course, a driving 02 range, a club house, and other buildings located on the course, and a vending cart 03 carrying beverages or food to, from, or on the course, and does not include the parking 04 lot. 05 (h) The holder of a golf course license commits the offense of failure to 06 comply with the terms of a golf course license if the person sells brewed beverages or 07 wine in violation of this section or violates (e) or (f) of this section. 08 (i) Failure to comply with the terms of a golf course license is a violation. 09 Sec. 04.09.300. Destination resort license. (a) A destination resort license 10 authorizes the holder to sell alcoholic beverages at a destination resort for 11 consumption on the licensed premises in conjunction with the visitor activities 12 provided by the licensee to cruise ship passengers and staff and other visitors while the 13 cruise ship is in port at the resort. 14 (b) The biennial destination resort license fee is $2,500. 15 (c) The board may not approve an application for transfer of a destination 16 resort license to another location. 17 (d) In this section, "destination resort" means a business that owns a site of at 18 least 20 acres that is used principally as a destination for cruise ships and other vessels 19 that carry a minimum of 50 passengers and that does not provide overnight lodging on 20 its premises for visitors. 21 (e) The holder of a destination resort license commits the offense of failure to 22 comply with a destination resort license if the person sells alcoholic beverages in 23 violation of (a) of this section. 24 (f) Failure to comply with the terms of a destination resort license is a 25 violation. 26 Sec. 04.09.310. Brewery retail license. (a) A brewery retail license authorizes 27 the holder to store, sell, or serve on the licensed premises brewed beverages for 28 consumption on and off the premises. 29 (b) The biennial brewery retail license fee is $1,250. 30 (c) The board may issue a brewery retail license only to the holder of a 31 brewery manufacturer license under AS 04.09.020. The brewery retail licensed

01 premises may be all or part of the brewery manufacturer licensed premises, or the 02 brewery retail licensed premises may be at a different site that is adjacent to the 03 brewery manufacturer licensed premises. 04 (d) Each day, the holder of a brewery retail license may sell, to a person on the 05 licensed premises for consumption on the licensed premises, not more than 06 (1) 36 ounces of the holder's beer; or 07 (2) 18 ounces of the holder's sake. 08 (e) The holder of a brewery retail license may not 09 (1) allow live entertainment, televisions, pool tables, dart games, 10 dancing, electronic or other games, game tables, or other recreational or gaming 11 opportunities on the premises where the consumption occurs; 12 (2) provide seats at the counter or bar where the brewed beverages are 13 served; 14 (3) open the room where the consumption occurs before 9:00 a.m.; or 15 (4) serve brewed beverages after 8:00 p.m. 16 (f) Each day, the holder of a brewery retail license is authorized to sell, to a 17 person on the licensed premises for consumption off the licensed premises, not more 18 than 19 (1) 5.167 gallons of the holder's beer; or 20 (2) nine liters of the holder's sake. 21 (g) Except as provided under (h) of this section, the holder of a brewery retail 22 license may sell to a buyer not listed in AS 04.09.050 not more than 20 percent of the 23 holder's total volume of brewed beverages for the designated period of the license 24 under AS 04.11.680. 25 (h) The requirements of (g) of this section do not apply to 26 (1) the holder of a brewery retail license under this section who held a 27 brewery license issued under former AS 04.11.130 on the day before the effective date 28 of this section; or 29 (2) any person or entity whose completed application is pending on 30 December 31, 2018, 31 (A) under applicable federal law for authority to manufacture

01 and sell products under former AS 04.11.130; and 02 (B) for a brewery license under former AS 04.11.130. 03 (i) The holder of a brewery retail license commits the offense of failure to 04 comply with the terms of a brewery retail license if the person stores, sells, or serves 05 brewed beverages in violation of (a) of this section or violates (d), (e), (f), or (g) of 06 this section. 07 (j) Failure to comply with the terms of a brewery retail license is a violation. 08 Sec. 04.09.320. Winery retail license. (a) A winery retail license authorizes 09 the holder to store, sell, or serve on the licensed premises wine for consumption on 10 and off the premises. 11 (b) The biennial winery retail license fee is $1,250. 12 (c) The board may issue a winery retail license only to the holder of a winery 13 manufacturer license issued under AS 04.09.030. The winery retail licensed premises 14 may be all or part of the winery manufacturer licensed premises, or the winery retail 15 licensed premises may be at a different site that is adjacent to the winery manufacturer 16 licensed premises. 17 (d) Each day, the holder of a winery retail license may sell, to a person on the 18 licensed premises for consumption on the licensed premises, not more than 19 (1) 18 ounces of the holder's wine, mead, or cider containing 8.5 20 percent or more alcohol by volume; or 21 (2) 36 ounces of the holder's cider containing less than 8.5 percent 22 alcohol by volume. 23 (e) The holder of a winery retail license may not 24 (1) allow live entertainment, televisions, pool tables, dart games, 25 dancing, electronic or other games, game tables, or other recreational or gaming 26 opportunities on the premises where the consumption occurs; 27 (2) provide seats at the counter or bar where the wine is served; 28 (3) open the room where the consumption occurs before 9:00 a.m.; or 29 (4) serve wine after 8:00 p.m. 30 (f) Each day, the holder of a winery retail license is authorized to sell, to a 31 person on the licensed premises for consumption off the licensed premises, not more

01 than 02 (1) nine liters of the holder's wine, mead, or cider containing 8.5 03 percent or more alcohol by volume; or 04 (2) 5.167 gallons of the holder's cider containing less than 8.5 percent 05 alcohol by volume. 06 (g) Except as provided under (h) of this section, the holder of a winery retail 07 license may sell to a buyer not listed in AS 04.09.050 not more than 20 percent of the 08 holder's total volume of wine for the designated period of the license under 09 AS 04.11.680. 10 (h) The requirements of (g) of this section do not apply to 11 (1) the holder of a winery retail license under this section who held a 12 winery license issued under former AS 04.11.140 on the day before the effective date 13 of this section; or 14 (2) any person or entity whose completed application is pending on 15 December 31, 2018, 16 (A) under applicable federal law for authority to manufacture 17 and sell products under former AS 04.11.140; and 18 (B) for a winery license under former AS 04.11.140. 19 (i) The holder of a winery retail license commits the offense of failure to 20 comply with the terms of a winery retail license if the person stores, sells, or serves 21 wine in violation of (a) of this section or violates (d), (e), (f), or (g) of this section. 22 (j) Failure to comply with the terms of a winery retail license is a violation. 23 (k) The holder of a winery license issued under former AS 04.11.140 on the 24 day before the effective date of sec. 9 of this Act that provided seating at the counter 25 or bar where the wine is served on the winery's licensed premises may provide seating 26 at the counter or bar where the wine is served for a period ending on January 1, 2021, 27 for a license that is subject to renewal on an odd year and January 1, 2022, for a 28 license that is subject to renewal on an even year. 29 Sec. 04.09.330. Distillery retail license. (a) A distillery retail license 30 authorizes the holder to store, sell, or serve on the licensed premises distilled spirits 31 for consumption on and off the premises.

01 (b) The biennial distillery retail license fee is $1,250. 02 (c) The board may issue a distillery retail license only to the holder of a 03 distillery manufacturer license under AS 04.09.040. The distillery retail licensed 04 premises may be all or part of the distillery manufacturer licensed premises, or the 05 distillery retail licensed premises may be at a different site that is adjacent to the 06 distillery manufacturer licensed premises. 07 (d) The holder of a distillery retail license may sell not more than three ounces 08 of the holder's distilled spirits each day to a person on the licensed premises for 09 consumption on the licensed premises. 10 (e) The holder of a distillery retail license may not 11 (1) allow live entertainment, televisions, pool tables, dart games, 12 dancing, electronic or other games, game tables, or other recreational or gaming 13 opportunities on the premises where the consumption occurs; 14 (2) provide seats at the counter or bar where the distilled spirits are 15 served; 16 (3) open the room where the consumption occurs before 9:00 a.m.; or 17 (4) serve distilled spirits after 8:00 p.m. 18 (f) The holder of a distillery retail license is authorized to sell not more than 19 3.75 liters of the holder's distilled spirits each day to a person on the licensed premises 20 for consumption off the licensed premises. 21 (g) Except as provided under (h) of this section, the holder of a distillery retail 22 license may sell to a person not listed in AS 04.09.050 not more than 20 percent of the 23 holder's total volume of distilled spirits for the designated period of the license under 24 AS 04.11.680. 25 (h) The requirements of (g) of this section do not apply to 26 (1) the holder of a distillery retail license under this section who held a 27 distillery license issued under former AS 04.11.170 on the day before the effective 28 date of this section; or 29 (2) any person or entity whose completed application is pending on 30 December 31, 2018, 31 (A) under applicable federal law for authority to manufacture

01 and sell products under former AS 04.11.170; and 02 (B) for a distillery license under former AS 04.11.170. 03 (i) The holder of a distillery retail license commits the offense of failure to 04 comply with the terms of a distillery retail license if the person stores, sells, or serves 05 distilled spirits in violation of (a) of this section or violates (d), (e), (f), or (g) of this 06 section. 07 (j) Failure to comply with the terms of a distillery retail license is a violation. 08 Sec. 04.09.340. Beverage dispensary tourism license. (a) A beverage 09 dispensary tourism license authorizes the holder to sell or serve on the licensed 10 premises alcoholic beverages for consumption only on the licensed premises. 11 (b) The biennial beverage dispensary tourism license fee is $2,500. 12 (c) The board may issue a beverage dispensary tourism license or approve an 13 application for the transfer of ownership of a beverage dispensary tourism license if it 14 appears that issuance or transfer will encourage the tourism trade by promoting the 15 construction or improvement of 16 (1) a hotel, motel, resort, or similar business relating to the tourist trade 17 with a dining facility or having kitchen facilities in a majority of its rental rooms and 18 at least a minimum number of rental rooms required according to the population of the 19 established village, incorporated city, unified municipality, or population area 20 established under AS 04.11.400(a) in which the facility will be located, as follows: 21 (A) 10 rental rooms if the population is less than 1,501; 22 (B) 20 rental rooms if the population is 1,501 - 2,500; 23 (C) 25 rental rooms if the population is 2,501 - 5,000; 24 (D) 30 rental rooms if the population is 5,001 - 15,000; 25 (E) 35 rental rooms if the population is 15,001 - 25,000; 26 (F) 40 rental rooms if the population is 25,001 - 50,000; and 27 (G) 50 rental rooms if the population is greater than 50,000; or 28 (2) an airport terminal. 29 (d) The holder of a beverage dispensary tourism license may not maintain on 30 the licensed premises more than one room in which there is regularly maintained a 31 fixed counter or service bar that has plumbing connections to permanent plumbing at

01 which alcoholic beverages are sold or served to members of the public for 02 consumption unless the license has a multiple fixed counter endorsement under 03 AS 04.09.420, a hotel or motel endorsement under AS 04.09.430, or a large resort 04 endorsement under AS 04.09.440. 05 (e) Except as provided under AS 04.09.610, 04.09.640, 04.09.670, and 06 AS 04.16.120(c), the holder of a beverage dispensary tourism license who sells or 07 serves alcoholic beverages off the licensed premises or permits consumption off the 08 premises of alcoholic beverages sold or served on the premises commits the offense of 09 unauthorized beverage dispensary tourism activity. 10 (f) Unauthorized beverage dispensary tourism activity is a violation. 11 Sec. 04.09.350. Seasonal restaurant or eating place tourism license. (a) A 12 seasonal restaurant or eating place tourism license authorizes a restaurant or eating 13 place to sell brewed beverages and wine for consumption only on the licensed 14 premises for a period not to exceed six months in each calendar year. 15 (b) The biennial seasonal restaurant or eating place tourism license fee is 16 $1,250. 17 (c) The board may issue or renew a license under this section only if 18 (1) the board determines that the licensed premises is a bona fide 19 restaurant as defined in AS 04.21.080(b); 20 (2) the licensee has, or the licensee has simultaneously applied for, a 21 restaurant endorsement; and 22 (3) the sale and service of food and alcoholic beverages and any other 23 business conducted on the licensed premises of the restaurant or eating place is under 24 the sole control of the licensee. 25 (d) The board may issue a license under this section only in a municipality or 26 established village that 27 (1) has a population of 20,000 or less; and 28 (2) includes a community that receives more than 4,000 visitors a year, 29 as determined by the Department of Commerce, Community, and Economic 30 Development. 31 (e) The board may issue a license or approve an application for the transfer of

01 ownership of a license under this section if it appears that issuance or transfer will 02 encourage the tourism trade. 03 (f) The holder of a seasonal restaurant or eating place tourism license shall 04 ensure that gross receipts from the sale of food for consumption on the licensed 05 premises are at least twice the total of the gross receipts from the sale of alcoholic 06 beverages for consumption on the licensed premises in each calendar year. At the time 07 the holder submits an application for renewal of the license, the holder shall submit a 08 statement to the board certifying that the holder has met the requirement under this 09 subsection for the designated period of the license under AS 04.11.680. The board 10 may renew a seasonal restaurant or eating place tourism license only if the licensee 11 provides evidence satisfactory to the board that, during the designated period of the 12 license under AS 04.11.680, the gross receipts from the sale of food for consumption 13 on the licensed premises were at least twice the total of the gross receipts from the sale 14 of alcoholic beverages for consumption on the licensed premises. 15 (g) The board shall adopt a regulation establishing a formula to limit the 16 number of seasonal restaurant or eating place tourism licenses. 17 (h) The holder of a seasonal restaurant or eating place tourism license may not 18 provide entertainment on the licensed premises before 3:00 p.m. or after 11:00 p.m. 19 except with the approval of the director. The director may grant approval for 20 entertainment at other times only upon the written request of the licensee, and only for 21 a specific occasion. The director may not grant approval for entertainment on the 22 licensed premises of an individual licensee more than five times in a calendar year. 23 (i) Except as provided under AS 04.09.620, 04.09.640, and AS 04.16.120(c), 24 the holder of a seasonal restaurant or eating place tourism license commits the offense 25 of failure to comply with the terms of a seasonal restaurant or eating place tourism 26 license if the person sells brewed beverages or wine in violation of (a) of this section 27 or fails to comply with (f) or (h) of this section. 28 (j) Failure to comply with the terms of a seasonal restaurant or eating place 29 tourism license is a violation. 30 Sec. 04.09.360. Winery direct shipment license. (a) A winery direct shipment 31 license authorizes the holder of a winery manufacturer license issued under

01 AS 04.09.030, or the holder of a winery license issued in another state, to sell the 02 holder's wine in response to an order for shipment to a person, for personal use only 03 and not for resale, who is located in the state. A winery direct shipment license may 04 not be transferred to another person or another location. 05 (b) The biennial fee for a winery direct shipment license is $200. 06 (c) An applicant for issuance or renewal of a winery direct shipment license 07 shall 08 (1) submit an application on a form prescribed by the board; 09 (2) consent to the jurisdiction of the board, the Department of 10 Revenue, and any other state agency or state court concerning enforcement of this 11 title; and 12 (3) if the applicant is the holder of a license or permit authorizing the 13 holder to manufacture and sell wine to the public issued in another state, provide to the 14 board a copy of the holder's license or permit issued 15 (A) in the state; and 16 (B) by the Alcohol and Tobacco Tax and Trade Bureau. 17 (d) All wine shipped to a purchaser in the state by the holder of a winery direct 18 shipment license is subject to the state excise tax. 19 (e) The holder of a winery direct shipment license may not 20 (1) ship wine to an address with a zip code located in an area that has 21 adopted a local option under AS 04.11.491; 22 (2) sell more than the equivalent of six nine-liter cases of wine to a 23 purchaser in one transaction, or more than the equivalent of 12 nine-liter cases of wine 24 to a purchaser in a calendar year; and 25 (3) ship wine using a common carrier who is not approved by the 26 board to ship alcoholic beverages to persons in the state under AS 04.16.125(b). 27 (f) Before shipping an order under this section, the holder of a winery direct 28 shipment license shall 29 (1) verify that the person submitting the order is at least 21 years of 30 age, using an age verification service or other method, and that the named recipient of 31 the shipment, if not the same person as the person submitting the order, is at least 21

01 years of age; 02 (2) determine that the order will not exceed the limits of (e)(2) of this 03 section; 04 (3) provide written or electronic information to the person submitting 05 the order on fetal alcohol syndrome and fetal alcohol effects resulting from a woman's 06 consumption of alcohol during pregnancy; and 07 (4) label the shipping container as containing alcoholic beverages and 08 requiring a signature by a person who is at least 21 years of age upon delivery. 09 (g) The holder of a winery direct shipment license shall 10 (1) retain records of sales made under this license for at least two 11 years; and 12 (2) make records of sales available for inspection and audit by the 13 board and the Department of Revenue. 14 (h) The board shall compile a list that is available for public inspection of zip 15 codes that are located within a local option area and notify the holder of a winery 16 direct shipment license of any change to the list. 17 (i) The holder of a winery direct shipment license commits the offense of 18 failure to comply with the terms of a winery direct shipment license if the person fails 19 to comply with (e) - (g) of this section. 20 (j) Failure to comply with the terms of a winery direct shipment license is a 21 violation. 22 Sec. 04.09.370. Unlicensed retail sale. (a) A person commits the crime of 23 unlicensed retail sale if the person knowingly operates without the appropriate license 24 a retail operation that requires a license under AS 04.09.200 - 04.09.360. 25 (b) Unlicensed retail sale is a class A misdemeanor and is punishable under 26 AS 12.55. 27 Sec. 04.09.380. Unlicensed retail sale in a local option area. (a) A person 28 commits the crime of unlicensed retail sale in a local option area if the person 29 knowingly operates without a license in an area that has adopted a local option under 30 AS 04.11.491 a retail operation that requires a license under AS 04.09.200 - 31 04.09.380.

01 (b) Unlicensed retail sale in a local option area is a class C felony and is 02 punishable under AS 12.55. 03 Article 5. Endorsements. 04 Sec. 04.09.400. Types of endorsements. (a) An endorsement expands the 05 boundaries of a licensed premises or the authorized activities of a licensed business. 06 (b) Only the board may issue an endorsement. The board may issue only the 07 endorsements authorized in AS 04.09.400 - 04.09.520. 08 (c) An endorsement is valid only in conjunction with a license. An 09 endorsement may only be transferred to another person if the license for which the 10 endorsement was issued is also transferred to that person. An endorsement expires if 11 the licensed premises are relocated, the license expires, or the license is revoked. 12 (d) Except as provided in (c) of this section, an endorsement is valid for the 13 duration of the license as designated in AS 04.11.680. The holder of the endorsement 14 shall renew the endorsement biennially. 15 (e) An application for an endorsement under AS 04.09.400 - 04.09.520 must 16 (1) be made in writing on a form prescribed by the board; and 17 (2) demonstrate that the holder of the license has authority over and 18 will exercise control over conduct of the business in all areas of the licensed premises, 19 including premises newly licensed by the endorsement. 20 Sec. 04.09.410. Manufacturer sampling endorsement. (a) A manufacturer 21 sampling endorsement authorizes the holder of a brewery manufacturer license, 22 winery manufacturer license, or distillery manufacturer license to offer for 23 consumption on the licensed premises at no charge a small sample of an alcoholic 24 beverage produced by the manufacturer. 25 (b) The biennial fee for a manufacturer sampling endorsement is $200. 26 (c) A person serving a sample of an alcoholic beverage under this section must 27 have a current alcohol server education card issued under AS 04.21.025(c). Only the 28 license holder or an agent or employee of the license holder may serve a sample. 29 (d) The holder of a manufacturer sampling endorsement may serve a total 30 volume of samples to a person on a licensed premises each day that does not exceed 31 (1) for the holder of a brewery manufacturer license,

01 (A) 12 ounces of beer; or 02 (B) six ounces of sake; 03 (2) for the holder of a winery manufacturer license, 04 (A) six ounces of wine, mead, or cider containing 8.5 percent 05 or more alcohol by volume; or 06 (B) 12 ounces of cider containing less than 8.5 percent alcohol 07 by volume; 08 (3) for the holder of a distillery manufacturer license, 1.5 ounces of 09 distilled spirits. 10 (e) The holder of a manufacturer sampling endorsement may not publicly 11 advertise, including through newsprint, radio, or television, sampling activities 12 conducted under the endorsement. However, the holder of a manufacturer sampling 13 endorsement may notify existing customers of sampling activities, including by 14 electronic means. 15 (f) A person who offers a sample of an alcoholic beverage for consumption on 16 the licensed premises of a brewery, winery, or distillery without an endorsement under 17 this section commits the offense of unendorsed sampling. 18 (g) Unendorsed sampling is a violation and is punishable by a fine of $500. 19 (h) The holder of a manufacturer sampling endorsement who fails to comply 20 with the requirements of (c) - (e) of this section commits the offense of failure to 21 comply with the terms of a manufacturer sampling endorsement. 22 (i) Failure to comply with the terms of a manufacturer sampling endorsement 23 is a violation. 24 Sec. 04.09.420. Multiple fixed counter endorsement. (a) A multiple fixed 25 counter endorsement authorizes the holder of a beverage dispensary license or a 26 beverage dispensary tourism license to sell or serve alcoholic beverages on the 27 licensed premises from multiple fixed counters. 28 (b) The biennial fee for a multiple fixed counter endorsement is $200. 29 (c) In addition to the fee under (b) of this section, the initial application fee for 30 each fixed counter covered under the endorsement is $1,250. 31 (d) An initial application for a multiple fixed counter endorsement must

01 include an annotated drawing of the location of each fixed counter in the licensed 02 premises. 03 (e) A fixed counter at which alcoholic beverages are sold or served to the 04 public for consumption covered under a multiple fixed counter endorsement must be a 05 regularly maintained fixed counter or service bar that has plumbing connections to 06 permanent plumbing. Multiple fixed counters must be located in the same building 07 under the same contiguous licensed premises as set out in regulation, except as 08 provided for the holder of a hotel or motel endorsement under AS 04.09.430 or a large 09 resort endorsement under AS 04.09.440. The board shall adopt regulations to 10 implement this subsection. 11 (f) The holder of a beverage dispensary license or a beverage dispensary 12 tourism license who maintains multiple fixed counters without an endorsement under 13 this section commits the offense of unendorsed service at multiple fixed counters. 14 (g) The holder of a multiple fixed counter endorsement who fails to comply 15 with the requirements of (d) and (e) of this section commits the offense of multiple 16 fixed counter endorsement noncompliance. 17 (h) Unendorsed service at multiple fixed counters is a violation and is 18 punishable by a fine of $500. 19 (i) Multiple fixed counter endorsement noncompliance is a violation. 20 Sec. 04.09.430. Hotel or motel endorsement. (a) A hotel or motel 21 endorsement authorizes the holder of a beverage dispensary license or a beverage 22 dispensary tourism license that is a hotel, motel, resort, or similar business premises 23 that caters to the traveling public as a substantial part of its business to sell or serve 24 alcoholic beverages on the licensed premises, including in the dining room, banquet 25 room, and other public areas approved by the board, and in guest rooms. 26 (b) The biennial fee for a hotel or motel endorsement is $200. 27 (c) The holder of a beverage dispensary license or a beverage dispensary 28 tourism license that is a hotel, motel, resort, or similar business premises that caters to 29 the traveling public as a substantial part of its business may receive a hotel or motel 30 endorsement in order to qualify for a multiple fixed counter endorsement under 31 AS 04.09.420 to sell or serve alcoholic beverages at a secondary location located in a

01 building different than the licensed premises for the beverage dispensary license or a 02 beverage dispensary tourism license if the different building 03 (1) is located on the same property as, adjacent to, or attached to the 04 originally licensed premises; 05 (2) principally caters to guests of the hotel or motel; and 06 (3) principally encourages the tourism trade at the hotel or motel. 07 (d) The holder of a hotel or motel endorsement may stock alcoholic beverages 08 in guest rooms, for sale and consumption only in the guest room. Alcoholic beverages 09 stocked under this subsection shall be stocked by an employee who is 21 years of age 10 or older, may not be supplied or resupplied during hours that the sale of alcoholic 11 beverages is prohibited as provided under AS 04.16.010(a) and (d), and shall be stored 12 in a unit using a key or combination lock system within the guest room. A key lock 13 system shall be designed to prevent the removal of the key unless the unit is locked. 14 Except for the licensee, or an agent or employee of the licensee, a key or combination 15 enabling a person to obtain alcoholic beverages stocked in a guest room may only be 16 provided to a guest who occupies the room and who is 21 years of age or older. 17 (e) The holder of a hotel or motel endorsement shall exercise control over 18 conduct of the business in all areas of the licensed premises. 19 (f) The holder of a beverage dispensary license or a beverage dispensary 20 tourism license who engages in activity under this section without an endorsement 21 under this section commits the offense of unendorsed hotel or motel service. 22 (g) The holder of a hotel or motel endorsement who fails to comply with the 23 requirements of this section commits the offense of hotel or motel endorsement 24 noncompliance. 25 (h) Unendorsed hotel or motel service is a violation and is punishable by a fine 26 of $500. 27 (i) Hotel or motel endorsement noncompliance is a violation. 28 Sec. 04.09.440. Large resort endorsement. (a) A large resort endorsement 29 authorizes the holder of a beverage dispensary license or a beverage dispensary 30 tourism license that is a large resort to sell or serve alcoholic beverages from multiple 31 locations on the resort property including in the dining room, banquet room, and other

01 public areas approved by the board, and in guest rooms, regardless of whether the 02 locations are in the same building or under the same roof. 03 (b) The biennial fee for a large resort endorsement is $200. 04 (c) The holder of a large resort endorsement may apply for a multiple fixed 05 counter endorsement under AS 04.09.420 to sell or serve alcoholic beverages from 06 multiple locations within the large resort's property. The locations do not need to be 07 located in the same building or on the same parcel, but must be within the boundary of 08 the large resort, as that term is defined in (h) of this section. 09 (d) The holder of a large resort endorsement may sell or serve alcoholic 10 beverages only from locations on the site of the large resort. 11 (e) For federal income tax purposes, the profit and loss from the licensed 12 business conducted at locations on the resort under a large resort endorsement, other 13 than guest rooms, must be combined or consolidated with the profit and loss from the 14 licensed business conducted under the multiple fixed counter endorsement. 15 (f) The holder of a large resort endorsement shall exercise control over 16 conduct of the business in all areas of the licensed premises. 17 (g) A holder of a beverage dispensary license with a large resort endorsement 18 may stock alcoholic beverages in guest rooms, for sale and consumption only in the 19 guest room. Alcoholic beverages stocked under this subsection must be stocked by an 20 employee who is 21 years of age or older, may not be supplied or resupplied during 21 hours that the sale of alcoholic beverages is prohibited as provided under 22 AS 04.16.010(a) and (d), and must be stored in a unit using a key or combination lock 23 system within the guest room. A key lock system must be designed to prevent the 24 removal of the key unless the unit is locked. Except for the licensee, or an agent or 25 employee of the licensee, a key or combination enabling a person to obtain alcoholic 26 beverages stocked in a guest room may be provided only to a guest who occupies the 27 room and who is 21 years of age or older. 28 (h) In this section, "large resort" means a resort that offers both outdoor 29 recreational activities and overnight lodging to the public and is located on a site 30 consisting of at least 10 contiguous acres containing one or more parcels of real 31 property owned by the licensee, leased by the licensee, or a combination of parcels

01 owned by the licensee and leased by the licensee. 02 (i) The holder of a beverage dispensary license or a beverage dispensary 03 tourism license who engages in activity under this section without an endorsement 04 under this section commits the offense of unendorsed large resort service. 05 (j) The holder of a large resort endorsement who fails to comply with the 06 requirements of (c) - (g) of this section commits the offense of large resort 07 endorsement noncompliance. 08 (k) Unendorsed large resort service is a violation and is punishable by a fine of 09 $500. 10 (l) Large resort endorsement noncompliance is a violation. 11 Sec. 04.09.450. Restaurant endorsement. (a) A restaurant endorsement 12 authorizes the holder of a restaurant or eating place license, beverage dispensary 13 license, golf course license, sporting event license, club license, outdoor recreation 14 lodge license, destination resort license, beverage dispensary tourism license, or 15 seasonal restaurant or eating place tourism license to allow a person 16 (1) under 21 years of age access as provided in (e) of this section to the 17 premises of a bona fide restaurant on the licensed premises; and 18 (2) to enter or remain on the licensed premises to consume food or 19 nonalcoholic beverages as authorized under AS 04.16.010(c)(5). 20 (b) The biennial fee for a restaurant endorsement is $200. 21 (c) An application for a restaurant endorsement must specify the establishment 22 or portion of the establishment that constitutes a bona fide restaurant. 23 (d) The board may issue an endorsement under this section only if the board 24 finds 25 (1) that the establishment or portion of the establishment for which the 26 endorsement is requested is a bona fide restaurant; 27 (2) there is supervision on the premises adequate to reasonably ensure 28 that a person under 21 years of age will not obtain alcoholic beverages; and 29 (3) that it is unlikely that persons under 21 years of age not employed 30 on the premises will enter and remain on the premises of the bona fide restaurant for 31 purposes other than dining.

01 (e) The board may authorize the holder of a license with a restaurant 02 endorsement to 03 (1) allow a person who is at least 16 years of age but under 21 years of 04 age to enter and remain on the licensed premises for dining only; 05 (2) allow a person who is under 16 years of age to enter and remain on 06 the licensed premises for dining only if 07 (A) the person is accompanied by a person who is 21 years of 08 age or older; and 09 (B) the parent or guardian of the person consents to the person 10 being on the licensed premises; and 11 (3) subject to AS 04.16.049, employ or permit the employment of a 12 person who is at least 16 years of age but under 21 years of age on the premises of the 13 bona fide restaurant if the employer provides adequate supervision to ensure that the 14 person does not obtain alcoholic beverages. 15 (f) The holder of a license who engages in activity under this section without 16 an endorsement under this section commits the offense of unendorsed restaurant 17 service. 18 (g) The holder of a restaurant endorsement who engages in activity not 19 authorized by the board under (e) of this section or fails to comply with the 20 requirements of (e) of this section commits the offense of restaurant endorsement 21 noncompliance. 22 (h) Unendorsed restaurant service is a violation and is punishable by a fine of 23 $500. 24 (i) Restaurant endorsement noncompliance is a violation. 25 Sec. 04.09.460. Package store shipping endorsement. (a) A package store 26 shipping endorsement authorizes the holder of a package store license to sell alcoholic 27 beverages to a person who makes an order to that licensee for shipment. 28 (b) The biennial fee for a package store shipping endorsement is $200. 29 (c) An endorsement holder may ship alcoholic beverages only to the purchaser 30 and may ship alcoholic beverages only in response to an order. The endorsement 31 holder may not, in response to an order, ship alcohol to a purchaser at an address other

01 than the address where the purchaser resides or, if the purchaser resides in a 02 municipality or established village that has adopted a local option under 03 AS 04.11.491(a)(1), (2), or (3) or (b)(1) or (2) for which a community delivery site has 04 been designated under AS 04.11.491(f), to an address other than that community 05 delivery site except as provided by AS 04.11.491(f)(1) and (2). 06 (d) An endorsement holder shall provide written or electronic information on 07 fetal alcohol syndrome and fetal alcohol effects resulting from a woman's 08 consumption of alcohol during pregnancy to the purchaser in response to an order. 09 (e) If a shipment is to an area that has restricted the sale of alcoholic beverages 10 under AS 04.11.491(a)(1), (2), or (3) or (b)(1) or (2), an endorsement holder may not 11 ship to a purchaser more than 10 and one-half liters of distilled spirits or 24 liters or 12 more of wine, or either a half-barrel keg of brewed beverages or 15.5 gallons or more 13 of brewed beverages in individual containers in a calendar month, or a lower amount 14 of distilled spirits, wine, or brewed beverages if the municipality or established village 15 has adopted the lower amount by local option under AS 04.11.491(g). Before shipping 16 alcohol to a purchaser in a restricted area, an endorsement holder shall consult the 17 database maintained by the board under AS 04.06.095 for any alcoholic beverage 18 shipments made to the purchaser during that calendar month by a package store. An 19 endorsement holder may not ship an amount of alcoholic beverages to a purchaser in a 20 restricted area that, when added to the amount already shipped, exceeds the amount 21 authorized by this subsection. An endorsement holder shall immediately enter into the 22 database the date and the amount of alcoholic beverages shipped to the purchaser. 23 (f) An endorsement holder may not divide or combine shipments of alcoholic 24 beverages so as to circumvent the limitation imposed under (e) of this section. 25 (g) In this section, "endorsement holder" means the holder of a package store 26 license with a package store shipping endorsement, and an agent or employee of the 27 holder of a package store license with a package store shipping endorsement. 28 (h) The holder of a package store license who ships alcoholic beverages 29 without an endorsement under this section commits the offense of unendorsed package 30 store shipping. 31 (i) The holder of a package store shipping endorsement who fails to comply

01 with the requirements of (c) - (f) of this section commits the offense of package store 02 shipping endorsement noncompliance. 03 (j) Unendorsed package store shipping is a violation and is punishable by a 04 fine of $500. 05 (k) Package store shipping endorsement noncompliance is a violation. 06 Sec. 04.09.470. Package store delivery endorsement. (a) A package store 07 delivery endorsement authorizes the holder of a package store license to deliver 08 alcoholic beverages as set out in this section. 09 (b) The biennial fee for a package store delivery endorsement is $200. 10 (c) The holder of a package store delivery endorsement may deliver alcoholic 11 beverages only in response to an order. The board shall adopt regulations specifying 12 the occasions for which delivery of alcoholic beverages is allowed and the manner of 13 delivery by the licensee. 14 (d) The holder of a package store delivery endorsement may deliver alcoholic 15 beverages only to a responsible adult at the delivery location specified on the order. 16 The responsible adult shall provide identification and acceptable proof of age under 17 AS 04.21.050 and acknowledge in writing receipt of the alcoholic beverages. 18 (e) The holder of a package store license who delivers alcoholic beverages 19 without an endorsement under this section commits the offense of unendorsed package 20 store delivery. 21 (f) The holder of a package store delivery endorsement who fails to comply 22 with the requirements of (c) and (d) of this section commits the offense of package 23 store shipping endorsement noncompliance. 24 (g) Unendorsed package store delivery is a violation and is punishable by a 25 fine of $500. 26 (h) Package store shipping endorsement noncompliance is a violation. 27 Sec. 04.09.480. Package store repackaging endorsement. (a) A package 28 store repackaging endorsement authorizes the holder of a package store license to 29 subdivide and sell alcoholic beverages from original packages with federally 30 compliant labels to smaller containers with the standard federal government warnings 31 and the product name.

01 (b) The biennial fee for a package store repackaging endorsement is $200. 02 (c) A package store licensee with a package store repackaging endorsement 03 may 04 (1) subdivide alcoholic beverages 05 (A) for sale on the licensed premises by opening the original 06 package for the purpose of subdividing the contents into smaller packages; or 07 (B) in response to a purchase request from a person who is on 08 the licensed premises or purchase order submitted in accordance with 09 AS 04.09.470(c); 10 (2) permit an agent or employee to subdivide alcoholic beverages, but 11 may not permit a customer or another person who is not an agent or employee of the 12 licensee to subdivide alcoholic beverages. 13 (d) The holder of a package store license who repackages alcoholic beverages 14 without an endorsement under this section commits the offense of unendorsed package 15 store repackaging. 16 (e) The holder of a package store repackaging endorsement who fails to 17 comply with the requirements of this section commit the offense of package store 18 repackaging endorsement noncompliance. 19 (f) Unendorsed package store repackaging is a violation and is punishable by a 20 fine of $500. 21 (g) Package store repackaging endorsement noncompliance is a violation. 22 Sec. 04.09.490. Package store sampling endorsement. (a) A package store 23 sampling endorsement authorizes the holder of a package store license to offer for 24 consumption on the licensed premises at no charge a small sample of an alcoholic 25 beverage from its inventory during the package store's stated hours of business, but not 26 between the hours of midnight and 8 a.m. 27 (b) The biennial fee for a package store sampling endorsement is $200. 28 (c) Only the license holder or an agent or employee of the license holder may 29 serve a sample. 30 (d) The holder of a package store sampling endorsement may serve a total 31 volume of samples to a person on a licensed premises each day that does not exceed

01 (1) 12 ounces of beer or cider, if the cider contains less than 8.5 02 percent alcohol by volume; 03 (2) six ounces of wine, mead, sake, or cider, if the cider contains 8.5 04 percent or more alcohol by volume; 05 (3) 1.5 ounces of distilled spirits; or 06 (4) the alcoholic equivalent of (1), (2), or (3) of this subsection. 07 (e) The holder of a package store sampling endorsement may not publicly 08 advertise, including through newsprint, radio, or television, sampling activities 09 conducted under the endorsement. However, the holder of a package store sampling 10 endorsement may notify existing customers of sampling activities, including by 11 electronic means. 12 (f) A person who offers a sample of an alcoholic beverage for consumption on 13 the licensed premises of a package store without an endorsement under this section 14 commits the offense of unendorsed package store sampling. 15 (g) Unendorsed package store sampling is a violation and is punishable by a 16 fine of $500. 17 (h) The holder of a package store sampling endorsement who fails to comply 18 with the requirements of (a) and (c) - (e) of this section commits the offense of failure 19 to comply with the terms of a package store sampling endorsement. 20 (i) Failure to comply with the terms of a package store sampling endorsement 21 is a violation. 22 Sec. 04.09.500. Bowling alley endorsement. (a) A bowling alley endorsement 23 authorizes the holder of a beverage dispensary license or a beverage dispensary 24 tourism license to sell or serve alcoholic beverages in the concourse or lane areas of 25 the bowling alley adjacent to the main bar area. 26 (b) The biennial fee for a bowling alley endorsement is $200. 27 (c) The board may issue a bowling alley endorsement only if the concourse or 28 lane areas of the bowling alley or both are 29 (1) designated as part of the licensed premises for the beverage 30 dispensary license or a beverage dispensary tourism license; and 31 (2) adjacent to the main bar area.

01 (d) Notwithstanding AS 04.16.049, the board may, upon application, authorize 02 access by persons under 21 years of age to the concourse or lane areas or both 03 designated part of the licensed premises of the bowling alley during hours when no 04 alcoholic beverages are being sold, served, or consumed. 05 (e) The periods during which persons under 21 years of age may be permitted 06 access to the licensed premises must be clearly posted on the licensed premises. 07 (f) The holder of a beverage dispensary license or a beverage dispensary 08 tourism license who sells or serves alcoholic beverages in the concourse or lane areas 09 of a bowling alley without an endorsement under this section commits the offense of 10 unendorsed bowling alley service. 11 (g) The holder of a bowling alley endorsement under this section who fails to 12 comply with the requirements of (e) of this section or who permits access by a person 13 under 21 years of age to the concourse or lane areas of the bowling alley during hours 14 when alcoholic beverages are being served in the concourse or lane areas commits the 15 offense of bowling alley endorsement noncompliance. 16 (h) Unendorsed bowling alley service is a violation and is punishable by a fine 17 of $500. 18 (i) Bowling alley endorsement noncompliance is a violation. 19 Sec. 04.09.510. Golf course endorsement. (a) A golf course endorsement 20 authorizes the owner of a golf course who has obtained a beverage dispensary license 21 or a beverage dispensary tourism license to sell or serve alcoholic beverages on the 22 golf course, driving range, club house and other buildings located on the course, and a 23 vending cart carrying beverages or food to, from, or on the course, excluding the 24 parking lot. 25 (b) The biennial fee for a golf course endorsement is $200. 26 (c) An application for a golf course endorsement must include a drawing of 27 the golf course with an annotated illustration and a description of the portions of the 28 course that are licensed premises and that are intended to be covered by the 29 endorsement. 30 (d) The holder of a beverage dispensary license or beverage dispensary 31 tourism license who sells or serves alcoholic beverages on a golf course without an

01 endorsement under this section commits the offense of unendorsed golf course service. 02 (e) The holder of a golf course endorsement who fails to comply with (a) of 03 this section commits the offense of golf course endorsement noncompliance. 04 (f) Unendorsed golf course service is a violation and is punishable by a fine of 05 $500. 06 (g) Golf course endorsement noncompliance is a violation. 07 Sec. 04.09.520. Brewery repackaging endorsement. (a) A brewery 08 repackaging endorsement authorizes the holder of a brewery manufacturer license who 09 also holds, wholly or in part, a beverage dispensary license, beverage dispensary 10 tourism license, restaurant or eating place license, or a seasonal restaurant or eating 11 place tourism license to offer the holder's brewed beverages for sale for consumption 12 off the licensed premises and to subdivide and sell the holder's brewed beverages from 13 original packages with federally compliant labels to smaller containers with the 14 standard federal government warnings and the product name. 15 (b) The biennial fee for a brewery repackaging endorsement is $200. 16 (c) A brewery manufacturer licensee with a brewery repackaging endorsement 17 (1) is authorized to sell, each day to a person on the licensed premises 18 for consumption off the licensed premises, not more than 19 (A) 5.167 gallons of the holder's beer; or 20 (B) nine liters of sake; 21 (2) may only subdivide the holder's brewed beverages in response to a 22 purchase request from a person who is on the licensed premises; 23 (3) may permit an agent or employee to subdivide the holder's brewed 24 beverages, but may not permit a customer or another person who is not an agent or 25 employee of the licensee to subdivide the holder's brewed beverages. 26 (d) The holder of a package store license who repackages brewed beverages 27 without an endorsement under this section commits the offense of unendorsed brewery 28 repackaging. 29 (e) In this section, "licensed premises" means the premises licensed under a 30 beverage dispensary license, beverage dispensary tourism license, restaurant or eating 31 place license, or a seasonal restaurant or eating place tourism license, and the premises

01 is owned, wholly or in part, by a brewery manufacturer licensee. 02 (f) The holder of a brewery repackaging endorsement who fails to comply 03 with the requirements of this section commits the offense of brewery repackaging 04 endorsement noncompliance. 05 (g) Unendorsed brewery repackaging is a violation, punishable by a fine of 06 $500. 07 (h) Brewery repackaging endorsement noncompliance is a violation. 08 Article 6. Permits. 09 Sec. 04.09.600. Types of permits. (a) A permit allows catering and serving 10 activities for a specific time period on a single specified premises and allows an 11 eligible nonprofit organization to host a fundraising or not-for-profit event. 12 (b) The director may issue only the permits authorized in AS 04.09.600 - 13 04.09.690. An application for a permit must be received by the director not less than 14 three business days before the first day of the event. Except for a conditional 15 contractor's permit issued under AS 04.09.690, the director shall require every person 16 who will serve or sell alcohol or check identification of a patron during a permitted 17 event to complete an alcohol server education course under AS 04.21.025 before the 18 first day of the permitted event. 19 (c) An applicant for a permit must follow the application requirements set out 20 in AS 04.11.260. 21 (d) A permit, other than an inventory resale permit under AS 04.09.680 and a 22 conditional contractor's permit under AS 04.09.690, is valid only on the premises, for 23 the event, and for the period specified. 24 (e) The holder of an approved permit may submit a written request for 25 amendment of the approved permit to change the event date, site, designated area, or 26 designated time. The holder of the approved permit shall submit the request to the 27 director not later than seven days before the event and shall include approval of the 28 law enforcement agency having jurisdiction over the site of the event for which the 29 amended permit is sought. 30 (f) The holder of an approved permit shall identify on the written request 31 under (e) of this section the individuals serving alcohol who have completed alcohol

01 server training as required under AS 04.21.025. 02 (g) A permit may not be transferred to another person or another location and, 03 except for a conditional contractor's permit under AS 04.09.690, may not be renewed. 04 (h) Except as otherwise provided in AS 04.09.680 for an inventory resale 05 permit and AS 04.09.690 for a conditional contractor's permit, the fee for a permit 06 shall be set by the board in regulation. The fee must be at least $50 for each day of the 07 event. 08 (i) The director shall approve or deny a permit application. If the director 09 denies a permit application, the applicant may appeal to the board. 10 Sec. 04.09.610. Beverage dispensary caterer's permit. A beverage 11 dispensary caterer's permit authorizes the holder of a beverage dispensary license or 12 beverage dispensary tourism license to sell or dispense alcoholic beverages at 13 conventions, picnics, sporting events, concerts, street festivals, or similar affairs held 14 off the holder's licensed premises for which a beverage dispensary license or beverage 15 dispensary tourism license would not otherwise be required. The permit may be issued 16 only for designated premises for a specific occasion and for a limited period. 17 Sec. 04.09.620. Restaurant caterer's dining permit. (a) A restaurant caterer's 18 dining permit authorizes the holder of a restaurant or eating place license or a seasonal 19 restaurant or eating place tourism license to sell brewed beverages and wine before 20 and during the service of food provided by the licensee at a single dining event held 21 off the holder's licensed premises. 22 (b) The director may issue a restaurant caterer's dining permit only for 23 designated premises, for a specific occasion, and for a limited period. 24 (c) The licensee shall provide food in conjunction with the service of brewed 25 beverages and wine under a restaurant caterer's dining permit. The licensee shall 26 comply with the requirements for gross receipts from food sales for a restaurant or 27 eating place license under AS 04.09.210(d) or a seasonal restaurant or eating place 28 tourism license under AS 04.09.350. 29 Sec. 04.09.630. Club caterer's permit. (a) A club caterer's permit authorizes 30 the holder of a club license to sell or dispense alcoholic beverages at an event held off 31 the club's licensed premises.

01 (b) The application for a club caterer's permit filed under AS 04.11.260 must 02 be signed by two officers of the organization. 03 (c) A restriction or prohibition under AS 04.09.220 regarding a club member 04 or a guest of a club member applies at the premises covered by the permit. 05 (d) The director may not issue more than three club caterer's permits to the 06 holder of a club license in a calendar year. 07 Sec. 04.09.640. Art exhibit event permit. (a) An art exhibit event permit 08 authorizes the holder of a beverage dispensary license, a beverage dispensary tourism 09 license, a restaurant or eating place license, or a seasonal restaurant or eating place 10 tourism license to sell and serve brewed beverages and wine for consumption at a 11 specific art exhibit event. 12 (b) The board may issue an art exhibit event permit only for a specific art 13 exhibit event at premises designated in the application for a limited period specified in 14 the application. 15 (c) The board may not grant more than 12 art exhibit event permits to a 16 licensee in a calendar year. 17 (d) An art exhibit event permit may not be exercised during an event that is 18 expected to attract attendees under 21 years of age. 19 (e) Food must be provided in conjunction with the service of brewed 20 beverages and wine under an art exhibit event permit. 21 Sec. 04.09.650. Nonprofit organization event permit. (a) A nonprofit 22 organization event permit authorizes the holder to sell or dispense brewed beverages 23 or wine for consumption at an event organized by the nonprofit organization. 24 (b) Only a nonprofit fraternal, civic, professional, or patriotic organization 25 active for a period of at least two years before filing an application and incorporated 26 under AS 10.20 is eligible for a nonprofit organization event permit. 27 (c) The application for a nonprofit organization event permit filed under 28 AS 04.11.260 must be signed by two officers of the organization. The nonprofit 29 organization shall submit, together with the application, 30 (1) either a signed copy of a resolution adopted by the board of 31 directors or a copy of the minutes from a board meeting of the nonprofit organization

01 authorizing the application; and 02 (2) a sworn affidavit showing the length of time the organization has 03 been in existence. 04 (d) The director may not issue more than five nonprofit organization event 05 permits to a nonprofit organization, including an auxiliary of the organization, in a 06 calendar year. A nonprofit organization event permit may only be issued for 07 designated premises for a specific occasion and for a limited period of time as 08 specified in the application. 09 (e) The nonprofit organization shall ensure that all profits derived from the 10 sale of brewed beverages or wine under a nonprofit organization event permit are paid 11 to the organization that holds the permit and not to an individual. 12 Sec. 04.09.660. Alcoholic beverage auction permit. (a) An alcoholic 13 beverage auction permit authorizes the holder to sell alcoholic beverages by outcry or 14 silent auction. An alcoholic beverage auction permit is sufficient to authorize a 15 nonprofit organization under (b) of this section to sell alcoholic beverages by outcry or 16 silent auction, and no other permit or license is required. 17 (b) Only a nonprofit fraternal, civic, professional, or patriotic organization 18 active for a period of at least two years before filing an application and incorporated 19 under AS 10.20 is eligible for an alcoholic beverage auction permit. 20 (c) The application for an alcoholic beverage auction permit filed under 21 AS 04.11.260 must be signed by two officers of the organization. The nonprofit 22 organization shall submit, together with the application, 23 (1) either a signed copy of a resolution adopted by the board of 24 directors or a copy of the minutes of a board meeting of the nonprofit organization 25 authorizing the application; and 26 (2) a sworn affidavit showing the length of time the organization has 27 been in existence. 28 (d) The director may not issue more than five alcoholic beverage auction 29 permits to a nonprofit organization, including an auxiliary of the organization, in a 30 calendar year. The director may issue a permit only for designated premises for a 31 specific event and for a limited period as specified in the application.

01 (e) The nonprofit organization shall ensure that all profits derived from the 02 sale of brewed beverages or wine under an alcoholic beverage auction permit are paid 03 to the organization that holds the permit and not to an individual. 04 (f) The nonprofit organization may not permit consumption at the auction site 05 of the alcoholic beverages being auctioned under a nonprofit organization alcoholic 06 beverage auction permit. 07 Sec. 04.09.670. Tasting event permit. (a) A tasting event permit authorizes 08 the holder of a beverage dispensary license or a beverage dispensary tourism license to 09 sell or dispense alcoholic beverages at a tasting event held in partnership with the 10 holder of a package store license, brewery retail license, winery retail license, or 11 distillery retail license. 12 (b) A tasting event must be for the purpose of promoting products available 13 for purchase from the partnering package store licensee, brewery retail licensee, 14 winery retail licensee, or distillery retail licensee; only products produced or sold by 15 the partnering licensee may be sold or dispensed at the event. 16 (c) Only the holder of a beverage dispensary license or a beverage dispensary 17 tourism license may apply for a tasting event permit under this section. An application 18 for a tasting event permit must list both the beverage dispensary licensee or beverage 19 dispensary tourism licensee and the partnering licensee, and specify the designated 20 premises for the event. The tasting event must be held in the same municipality or 21 organized village in which the licensed premises of the partnering licensee are located. 22 (d) The director may not issue more than six permits in a calendar year to a 23 beverage dispensary licensee or a beverage dispensary tourism licensee for tasting 24 events with a particular partnering licensee; however, there is no limit on the number 25 of different partnering licensees with whom a beverage dispensary licensee may 26 partner for different events. If a person holds two or more qualifying partnering 27 licenses, then the director shall treat each license as separate and distinct when 28 applying the limitation under this subsection, regardless of how many other licenses 29 the person holds, wholly or in part. 30 (e) The director may not issue a tasting event permit for a period 31 (1) that is longer than four hours;

01 (2) that lasts beyond 9:00 p.m. 02 (f) Food must be provided in conjunction with the service of alcoholic 03 beverages under a tasting event permit. 04 (g) In this section, "partnering licensee" means the holder of a package store 05 license, brewery retail license, winery retail license, or distillery retail license who has 06 partnered with the holder of a beverage dispensary license or a beverage dispensary 07 tourism license to host a tasting event permitted by this section. 08 Sec. 04.09.680. Inventory resale permit. (a) An inventory resale permit 09 authorizes the holder to sell the remaining inventory of alcoholic beverages of a 10 business when the owner of the business no longer has a valid license under this title. 11 (b) The fee for an inventory resale permit is $100. 12 (c) The holder of an inventory resale permit may sell the remaining alcoholic 13 beverage inventory only to the holder of a valid license under this chapter. 14 (d) The director may issue an inventory resale permit for a period ending 90 15 days after the date of expiration or forfeiture of the license. The director may not issue 16 a permit if the license was suspended or revoked. 17 Sec. 04.09.690. Conditional contractor's permit. (a) A conditional 18 contractor's permit authorizes the holder to sell brewed beverages or wine for 19 consumption only on designated premises for the designated period of the permit 20 under AS 04.11.680 at construction sites that are located outside a city and inside the 21 boundaries of a military or naval reservation. 22 (b) The biennial conditional contractor's permit fee is $1,200. 23 (c) An applicant for a conditional contractor's permit must obtain and file with 24 the board written permission from the commanding officer of the military or naval 25 reservation and the prime contractor of the remotely situated project for the conduct of 26 the activities authorized by the permit. A conditional contractor's permit may be 27 renewed biennially upon reapplication for a permit and may be revoked or suspended 28 at the discretion of the commanding officer or the prime contractor. 29 (d) A conditional contractor's permit may not be transferred and is not valid 30 after the completion of the holder's contract or the closing of the military or naval 31 reservation.

01 Sec. 04.09.700. Failure to comply with a permit requirement. (a) A person 02 who engages in activity that requires a permit under AS 04.09.600 - 04.09.690 without 03 having a permit and a person who violates the terms of a permit issued under 04 AS 04.09.600 - 04.09.690 commits the offense of failure to comply with a permit 05 requirement. 06 (b) Failure to comply with a permit requirement is a violation. 07 (c) Failure to comply with a permit requirement of an inventory resale permit 08 under AS 04.09.680 or a conditional contractor's permit under AS 04.09.690 is 09 punishable by a fine of $500. 10 * Sec. 10. AS 04.11.010(a) is amended to read: 11 (a) A [EXCEPT AS PROVIDED IN AS 04.11.020, A] person may not 12 knowingly [MANUFACTURE, SELL, OFFER FOR SALE,] possess for [SALE OR] 13 barter, traffic in, or barter an alcoholic beverage unless under license or permit issued 14 under this title. 15 * Sec. 11. AS 04.11.010(b) is amended to read: 16 (b) Except as provided in this subsection, a person may not solicit or receive 17 orders for the delivery of an alcoholic beverage in an area that has adopted a local 18 option under AS 04.11.491. If the area has adopted a local option under 19 AS 04.11.491(a)(1), (2), or (3), or (b)(1) or (2), a package store licensee outside of that 20 local option area may receive orders as provided under a package store shipping 21 endorsement under AS 04.09.460 [AS 04.11.150] but may not solicit in that area or 22 receive orders through an agent or employee in that area. This subsection does not 23 apply to a package store licensee who operates a package store in an area that has 24 adopted a local option under AS 04.11.491(a)(2)(C) or (3)(C) or (b)(2)(C). A person 25 who violates this subsection is punishable upon conviction as provided under 26 AS 04.16.200(a) or (b). 27 * Sec. 12. AS 04.11.010(c) is amended to read: 28 (c) Unless a municipality or established village has adopted a more restrictive 29 local option under AS 04.11.491(g), in a criminal prosecution for possession of 30 alcoholic beverages for barter or sale in violation of (a) of this section, AS 04.09.060, 31 04.09.070, 04.09.140, 04.09.145, 04.09.370, or 04.09.380, the fact that a person

01 (1) possessed more than 10 1/2 liters of distilled spirits or 24 liters or 02 more of wine, or either a half-barrel keg [HALF-KEG] of brewed [MALT] 03 beverages or 15.5 [12] gallons or more of brewed [MALT] beverages in individual 04 containers in an area where the sale of alcoholic beverages is restricted or prohibited 05 under AS 04.11.491 creates a presumption that the person possessed the alcoholic 06 beverages for barter or sale; 07 (2) sends, transports, or brings more than 10 1/2 liters of distilled 08 spirits or 24 liters or more of wine, or either a half-barrel keg [HALF-KEG] of 09 brewed [MALT] beverages or 15.5 [12] gallons or more of brewed [MALT] 10 beverages in individual containers to an area where the sale of alcoholic beverages is 11 restricted or prohibited under AS 04.11.491 creates a presumption that the person sent, 12 transported, or brought the alcoholic beverages for barter or sale in the area. 13 * Sec. 13. AS 04.11.015 is amended to read: 14 Sec. 04.11.015. Purchase from nonlicensee prohibited. (a) A person may 15 not purchase or barter for alcoholic beverages from a person who is not a licensee, 16 permittee, or an agent or employee of a licensee or permittee. 17 (b) A person who violates (a) of this section is guilty of a violation. 18 * Sec. 14. AS 04.11.040 is amended by adding new subsections to read: 19 (d) A person who transfers a license or permit or a controlling interest in a 20 license or permit in violation of this section commits the offense of unauthorized 21 transfer of an alcoholic beverage license or permit. 22 (e) Unauthorized transfer of an alcoholic beverage license or permit is a 23 violation. 24 * Sec. 15. AS 04.11.045 is amended by adding new subsections to read: 25 (c) A limited liability organization that fails to report as required under (a) of 26 this section commits the offense of failure to report a change in member interest or 27 manager. 28 (d) Failure to report a change in member interest or manager is a violation. 29 * Sec. 16. AS 04.11.050 is amended by adding new subsections to read: 30 (d) A corporation that fails to report as required under (a) of this section, other 31 than a corporation described in (c) of this section, commits the offense of failure to

01 report a stock transfer or change of officers or board members. 02 (e) Failure to report a stock transfer or change of officers or board members is 03 a violation. 04 * Sec. 17. AS 04.11.055 is amended by adding new subsections to read: 05 (c) A partnership that fails to report as required under (a) of this section 06 commits the offense of failure to report a transfer of partnership interest or change of 07 general partner. 08 (d) Failure to report a transfer of partnership interest or change of general 09 partner is a violation. 10 * Sec. 18. AS 04.11.060 is amended to read: 11 Sec. 04.11.060. Nonresident distiller, brewer, winery, or wholesaler. A 12 distiller, brewer, winery, or wholesaler whose plant or principal place of business is 13 outside the state may not sell products directly to licensees in the state without 14 (1) obtaining a general wholesale license under AS 04.09.100 15 [AS 04.11.160(a)] for each wholesale distributing point in the state; 16 (2) appointing an agent upon whom process can be served; and 17 (3) obtaining other applicable licenses under the provisions of this title. 18 * Sec. 19. AS 04.11.060 is amended by adding a new subsection to read: 19 (b) A person who violates (a) of this section is guilty of a class A 20 misdemeanor. 21 * Sec. 20. AS 04.11.260 is amended to read: 22 Sec. 04.11.260. Application for new license, endorsement, or permit. (a) An 23 applicant for a new license, endorsement, or permit shall file with the director a 24 written application, signed and sworn to by the applicant, giving the applicant's name, 25 mailing address, telephone number, and electronic mail address. If the applicant is 26 a corporation, the application shall be executed by an [THE] authorized officer 27 [OFFICERS] of the corporation. If the applicant is a partnership, including a limited 28 partnership, the application shall be executed by an authorized general partner. The 29 application must include 30 (1) the type of license, endorsement, or permit desired; 31 (2) a description of the premises for which the license, endorsement,

01 or permit is desired, giving the address by street and number, or other information, so 02 that the location of the premises can be definitely determined; 03 (3) an annotated illustration of the premises designating the areas 04 for manufacture, storage, service, and consumption of alcoholic beverages and, 05 for a license application, the area for warehousing of the alcoholic beverages; 06 (4) the license, endorsement, or permit fee, and, for a multiple fixed 07 counter endorsement, the application fee for each counter; 08 (5) [(4)] the duration of the license, endorsement, or permit desired, 09 including, for a permit, a statement of the event dates and the specific hours of 10 intended operation; 11 (6) [(5)] any other information required by the board. 12 (b) A corporation applying for a license or conditional contractor's permit 13 under AS 04.09.690 shall provide the names and addresses of the president, vice- 14 president, secretary, managing officer, and all stockholders who own 10 percent or 15 more of the stock in the corporation, together with any other information required by 16 the board. 17 (c) An applicant for a new license or permit must include with the application 18 (1) proof that notice required by AS 04.11.310, if any, has been given; 19 (2) any petitions required to be secured under AS 04.11.460 before a 20 license may be issued; 21 (3) evidence of any approval by public authorities required to be 22 obtained [UNDER AS 04.11.090(e), 04.11.220(c), 04.11.230(b), 04.11.240(b), OR 23 04.11.250(b)], before a license or permit may be issued, including 24 (A) written approval under AS 04.09.240 from the 25 governing body of a college or university for a pub license; 26 (B) approval under AS 04.11.365 for a restaurant or eating 27 place license in a multi-unit residential housing development owned or 28 financed by the Alaska Housing Finance Corporation; 29 (C) permission from the commanding officer and the prime 30 contractor for a conditional contractor's permit under AS 04.09.690; 31 (D) for a permit other than a conditional contractor's

01 permit, approval of the law enforcement agency having jurisdiction over 02 the site of the event for which the permit is sought. 03 (d) A partnership, including a limited partnership, that applies for a license or 04 conditional contractor's permit under AS 04.09.690 shall provide information 05 required by the board including the names and addresses of all general partners and all 06 partners with an interest of 10 percent or more. 07 (e) A limited liability organization that applies for a license or conditional 08 contractor's permit under AS 04.09.690 shall provide information required by the 09 board, including the names and addresses of all members with an ownership interest of 10 10 percent or more and the names and addresses of all managers. 11 * Sec. 21. AS 04.11.260 is amended by adding a new subsection to read: 12 (f) This section does not apply to a winery direct shipment license issued 13 under AS 04.09.360. 14 * Sec. 22. AS 04.11.270 is amended to read: 15 Sec. 04.11.270. Application for renewal of license, endorsement, or 16 conditional contractor's permit. (a) An application for renewal of a license, 17 endorsement, or [RENEWAL OF A] conditional contractor's permit under 18 AS 04.09.690 must include 19 (1) the information required for a new license, endorsement, or permit 20 under AS 04.11.260 except that proof of notice under AS 04.11.310 is not required; 21 and 22 (2) a list of all convictions of the applicant of violations of this title, a 23 regulation adopted under this title, or an ordinance adopted under AS 04.21.010, that 24 occurred in the preceding two calendar years. 25 (b) A license, endorsement, or permit shall be renewed as follows: 26 (1) on or before November 1, the director shall mail a renewal 27 application to each licensee whose license, endorsement, or permit, unless renewed, 28 will expire on December 31 of that year; the application shall be mailed to the licensee 29 or permittee [AT THE LICENSED PREMISES OR] at a mailing address or 30 electronic mail address furnished by the licensee or permittee; 31 (2) the licensee or permittee shall submit the completed renewal

01 application and the biennial [LICENSE] fee to the director before January 1; 02 (3) a renewal application filed after December 31 is delinquent and 03 must be accompanied by a $500 penalty fee; 04 (4) if December 31 falls on a weekend or a state holiday, the deadline 05 is extended to the first business day following December 31. 06 * Sec. 23. AS 04.11.270 is amended by adding a new subsection to read: 07 (c) This section does not apply to a winery direct shipment license issued 08 under AS 04.09.360. 09 * Sec. 24. AS 04.11.280 is amended to read: 10 Sec. 04.11.280. Application for transfer of a license to another person. (a) 11 An application for transfer of a license or a license with one or more endorsements 12 to another person must contain the same information about the transferee as is required 13 of an applicant for a new license or endorsement under AS 04.11.260 and must 14 include other information required by the board. 15 (b) An application for the transfer of a license or a license with one or more 16 endorsements to another person must be accompanied by a statement, under oath, 17 executed by the transferor, listing all debts of the business and all taxes due by the 18 business. The board shall promptly inform each listed creditor of the application and 19 the amount shown as owed to that creditor. 20 * Sec. 25. AS 04.11.295(a) is amended to read: 21 (a) An applicant for the issuance or transfer of a license or issuance of a 22 conditional contractor's permit under this title shall submit to the board, with the 23 application, the applicant's fingerprints and the fees required by the Department of 24 Public Safety under AS 12.62.160 for criminal justice information and a national 25 criminal history record check. The board may require an applicant for renewal of a 26 license or a conditional contractor's permit under this title to submit fingerprints and 27 pay fees as required by this subsection. The board shall submit the fingerprints to the 28 Department of Public Safety to obtain a report of criminal justice information under 29 AS 12.62 and a national criminal history record check under AS 12.62.400. The 30 Department of Public Safety may submit the fingerprints to the Federal Bureau of 31 Investigation for a national criminal history record check. The board shall use the

01 information obtained under this section in its determination of an applicant's 02 qualification for issuance, transfer, or renewal of a license or issuance or renewal of a 03 conditional contractor's permit. 04 * Sec. 26. AS 04.11.295(b)(1) is amended to read: 05 (1) "applicant" means all individuals whose names and addresses are 06 required to be provided with an application for a new license or conditional 07 contractor's permit under AS 04.09.690 [AS 04.11.260]; 08 * Sec. 27. AS 04.11.310 is amended by adding a new subsection to read: 09 (c) This section does not apply to a winery direct shipment license issued 10 under AS 04.09.360. 11 * Sec. 28. AS 04.11 is amended by adding a new section to article 3 to read: 12 Sec. 04.11.315. False statement on application. A person who knowingly 13 makes a false sworn statement that the person does not believe to be true on an 14 application under AS 04.11.260 - 04.11.310 commits the crime of perjury under 15 AS 11.56.200. 16 * Sec. 29. AS 04.11.320(a) is amended to read: 17 (a) An application requesting issuance of a new license or endorsement shall 18 be denied if 19 (1) the board finds, after review of all relevant information, that 20 issuance of the license or endorsement would not be in the best interests of the 21 public; 22 (2) issuance of the license is prohibited by AS 04.11.410, relating to 23 location of premises near churches and schools; 24 (3) the application has not been completed in accordance with 25 AS 04.11.260; 26 (4) issuance of the license or endorsement would violate the 27 restrictions pertaining to the particular license or endorsement imposed under this 28 title; 29 (5) issuance of the license is prohibited under this title as a result of an 30 election conducted under AS 04.11.507; 31 (6) the requirements of AS 04.11.420 - 04.11.450 relating to zoning,

01 ownership and location of the license or endorsement, and the identity and financing 02 of a licensee have not been met; 03 (7) issuance of the license is prohibited under AS 04.11.400(a) or 04 prohibition of issuance of the license is found necessary under AS 04.11.400(b); 05 (8) the application contains false statements of material fact; 06 (9) the license is sought for the sale of alcoholic beverages in a first or 07 second class city where there are no licensed premises at the time of application unless 08 a majority of the voters have voted not to approve a local option to restrict or prohibit 09 the sale of alcoholic beverages under AS 04.11.491, have voted to approve a local 10 option to allow the type of premises under AS 04.11.491(a)(2) or (3), or have voted to 11 remove a restriction or prohibition on the sale of alcoholic beverages under 12 AS 04.11.495; or 13 (10) the license is sought for the sale of alcoholic beverages in an 14 established village where there are no licensed premises at the time of application 15 unless a majority of the voters have voted not to approve a local option to restrict or 16 prohibit the sale of alcoholic beverages under AS 04.11.491, have voted to approve a 17 local option to allow the type of premises under AS 04.11.491(b)(2), or have voted to 18 remove a restriction or prohibition on the sale of alcoholic beverages under 19 AS 04.11.495. 20 * Sec. 30. AS 04.11.330(a) is amended to read: 21 (a) An application requesting renewal of a license shall be denied if 22 (1) the board finds, after review of all relevant information, that 23 renewal of the license would not be in the best interests of the public; 24 (2) the license has been revoked for any cause; 25 (3) the applicant has not operated the licensed premises for at least 30 26 eight-hour days during each of the two preceding calendar years, unless the board 27 determines that the licensed premises are under construction or cannot be operated 28 through no fault of the applicant; 29 (4) the board finds that issuance of an existing license under 30 AS 04.11.400(d) has not encouraged tourist trade; 31 (5) the requirements of AS 04.11.420 - 04.11.450 relating to zoning,

01 ownership of the license, and financing of the licensee have not been met; 02 (6) renewal of the license would violate the restrictions pertaining to 03 the particular license under this title or the license has been operated in violation of a 04 condition or restriction imposed by the board; 05 (7) renewal of the license is prohibited under this title as a result of an 06 election conducted under AS 04.11.507; or 07 (8) the application has not been completed in accordance with 08 AS 04.11.270 [; OR 09 (9) THE LICENSE WAS ISSUED UNDER AS 04.11.400(g), AND 10 THE BOARD FINDS THAT THE PUBLIC CONVENIENCE DOES NOT 11 REQUIRE RENEWAL]. 12 * Sec. 31. AS 04.11.330(a), as amended by sec. 30 of this Act, is amended to read: 13 (a) An application requesting renewal of a license or endorsement shall be 14 denied if 15 (1) the board finds, after review of all relevant information, that 16 renewal of the license or endorsement would not be in the best interests of the public; 17 (2) the license or endorsement has been revoked for any cause; 18 (3) the applicant has not operated the licensed premises for at least 240 19 hours [30 EIGHT-HOUR DAYS] during each of the two preceding calendar years, 20 unless the board determines that the licensed premises are under construction or 21 cannot be operated through no fault of the applicant; 22 (4) the board finds that issuance of an existing beverage dispensary 23 tourism license under AS 04.09.340 or seasonal restaurant or eating place tourism 24 license under AS 04.09.350 [AS 04.11.400(d)] has not encouraged tourist trade; 25 (5) the requirements of AS 04.11.420 - 04.11.450 relating to zoning, 26 ownership of the license, and financing of the licensee have not been met; 27 (6) renewal of the license or endorsement would violate the 28 restrictions pertaining to the particular license or endorsement under this title or the 29 license or endorsement has been operated in violation of a condition or restriction 30 imposed by the board; 31 (7) renewal of the license is prohibited under this title as a result of an

01 election conducted under AS 04.11.507; or 02 (8) the application has not been completed in accordance with 03 AS 04.09.360 or AS 04.11.270. 04 * Sec. 32. AS 04.11.330(d) is amended to read: 05 (d) Notwithstanding (a)(3) of this section, a common carrier dispensary 06 license issued under AS 04.09.260 or a sporting event [RECREATIONAL SITE] 07 license issued under AS 04.09.270 [AS 04.11.210] may be renewed if the license was 08 exercised at least once during each of the two preceding calendar years. 09 * Sec. 33. AS 04.11.330 is amended by adding a new subsection to read: 10 (e) The requirements of (a)(3), (a)(5), and (a)(7) of this section do not apply to 11 a winery direct shipment license issued under AS 04.09.360. 12 * Sec. 34. AS 04.11.340 is amended to read: 13 Sec. 04.11.340. Denial of request for relocation. An application requesting 14 approval for the relocation of licensed premises shall be denied if 15 (1) the board finds, after review of all relevant information, that 16 relocation of the license would not be in the best interests of the public; 17 (2) the relocation is prohibited under AS 04.11.400(a) or (b); 18 (3) the license would be relocated out of the established village, 19 incorporated city, unified municipality, or population area established under 20 AS 04.11.400(a) within which it is located; 21 (4) transfer of ownership is to be made concurrently with the 22 relocation of the licensed premises and a ground for denial of the transfer of 23 ownership under AS 04.11.360 is presented; 24 (5) the application has not been completed in accordance with 25 AS 04.11.290; 26 (6) relocation of the license would result in violation of a local zoning 27 law; 28 (7) relocation of the license would violate the restrictions pertaining to 29 the particular license imposed by this title; 30 (8) relocation of the license is prohibited under this title as a result of 31 an election conducted under AS 04.11.507; or

01 (9) the license was issued under AS 04.11.400(d) [, (e), OR (g)]. 02 * Sec. 35. AS 04.11.340, as amended by sec. 34 of this Act, is amended to read: 03 Sec. 04.11.340. Denial of request for relocation. An application requesting 04 approval for the relocation of licensed premises shall be denied if 05 (1) the board finds, after review of all relevant information, that 06 relocation of the license would not be in the best interests of the public; 07 (2) the relocation is prohibited under AS 04.11.400(a) or (b); 08 (3) the license would be relocated out of the established village, 09 incorporated city, unified municipality, or population area established under 10 AS 04.11.400(a) within which it is located except as provided under 11 AS 04.11.400(k); 12 (4) transfer of ownership is to be made concurrently with the 13 relocation of the licensed premises and a ground for denial of the transfer of 14 ownership under AS 04.11.360 is presented; 15 (5) the application has not been completed in accordance with 16 AS 04.11.290; 17 (6) relocation of the license would result in violation of a local zoning 18 law; 19 (7) relocation of the license would violate the restrictions pertaining to 20 the particular license imposed by this title; or 21 (8) relocation of the license is prohibited under this title as a result of 22 an election conducted under AS 04.11.507 [; OR 23 (9) THE LICENSE WAS ISSUED UNDER AS 04.11.400(d)]. 24 * Sec. 36. AS 04.11.360 is amended to read: 25 Sec. 04.11.360. Denial of transfer of a license to another person. An 26 application requesting approval of a transfer of a license to another person under this 27 title shall be denied if 28 (1) the board finds, after review of all relevant information, that 29 transfer of a license to another person would not be in the best interests of the public; 30 (2) the application has not been completed in accordance with 31 AS 04.11.280;

01 (3) the application contains false statements of material fact; 02 (4) the transferor has not paid all debts or taxes arising from the 03 conduct of the business licensed under this title unless 04 (A) the transferor gives security for the payment of the debts or 05 taxes satisfactory to the creditor or taxing authority; or 06 (B) the transfer is under a promise given as collateral by the 07 transferor to the transferee in the course of an earlier transfer of the license 08 under which promise the transferor is obliged to transfer the license back to the 09 transferee in the event of default in payment for property conveyed as part of 10 the earlier transfer of the license; 11 (5) transfer of the license to another person would result in violation of 12 the provisions of this title relating to identity of licensees and financing of licensees; 13 (6) transfer of the license to another person would violate the 14 restrictions pertaining to the particular license under this title; 15 (7) transfer of the license to another person is prohibited under the 16 provisions of this title as a result of an election conducted under AS 04.11.507; 17 (8) the prospective transferee does not have the qualifications required 18 under this title of an original applicant; 19 (9) the license was issued under AS 04.11.100(f) [OR 04.11.400(g)]; 20 however, this paragraph does not apply to a beverage dispensary license issued before 21 June 6, 1985, under former AS 04.11.400(j) if the transfer does not involve a change 22 in location; or 23 (10) the license was issued under AS 04.11.135, unless the transferor is 24 also applying to transfer the beverage dispensary license required under AS 04.11.135 25 to the same transferee. 26 * Sec. 37. AS 04.11.360, as amended by sec. 36 of this Act, is amended to read: 27 Sec. 04.11.360. Denial of transfer of a license to another person. An 28 application requesting approval of a transfer of a license to another person under this 29 title shall be denied if 30 (1) the board finds, after review of all relevant information, that 31 transfer of a license to another person would not be in the best interests of the public;

01 (2) the application has not been completed in accordance with 02 AS 04.11.280; 03 (3) the application contains false statements of material fact; 04 (4) the transferor has not paid all debts or taxes arising from the 05 conduct of the business licensed under this title unless 06 (A) the transferor gives security for the payment of the debts or 07 taxes satisfactory to the creditor or taxing authority; or 08 (B) the transfer is under a promise given as collateral by the 09 transferor to the transferee in the course of an earlier transfer of the license 10 under which promise the transferor is obliged to transfer the license back to the 11 transferee in the event of default in payment for property conveyed as part of 12 the earlier transfer of the license; 13 (5) transfer of the license to another person would result in violation of 14 the provisions of this title relating to identity of licensees and financing of licensees; 15 (6) transfer of the license to another person would violate the 16 restrictions pertaining to the particular license under this title; 17 (7) transfer of the license to another person is prohibited under the 18 provisions of this title as a result of an election conducted under AS 04.11.507; or 19 (8) the prospective transferee does not have the qualifications required 20 under this title of an original applicant; 21 [(9) THE LICENSE WAS ISSUED UNDER AS 04.11.100(f); 22 HOWEVER, THIS PARAGRAPH DOES NOT APPLY TO A BEVERAGE 23 DISPENSARY LICENSE ISSUED BEFORE JUNE 6, 1985, UNDER FORMER 24 AS 04.11.400(j) IF THE TRANSFER DOES NOT INVOLVE A CHANGE IN 25 LOCATION; OR 26 (10) THE LICENSE WAS ISSUED UNDER AS 04.11.135, UNLESS 27 THE TRANSFEROR IS ALSO APPLYING TO TRANSFER THE BEVERAGE 28 DISPENSARY LICENSE REQUIRED UNDER AS 04.11.135 TO THE SAME 29 TRANSFEREE]. 30 * Sec. 38. AS 04.11.365 is amended to read: 31 Sec. 04.11.365. Licensed premises in multi-unit residential housing

01 developments owned or financed by the Alaska Housing Finance Corporation. 02 For premises located in a multi-unit residential housing development owned or 03 financed by the Alaska Housing Finance Corporation, the board may issue a new 04 license under AS 04.11.320, renew a license under AS 04.11.330, or approve a request 05 for relocation under AS 04.11.340 if the Alaska Housing Finance Corporation 06 authorizes the use under AS 18.56.230 and 07 [(1) THE LICENSE IS FOR A RESTAURANT OR EATING PLACE 08 UNDER AS 04.11.100; OR 09 (2)] the premises are covered by a restaurant endorsement 10 [DESIGNATED BY THE BOARD AS A RESTAURANT] under AS 04.09.450 11 [AS 04.16.049]. 12 * Sec. 39. AS 04.11.370(a) is amended to read: 13 (a) A license, endorsement, or permit shall be suspended or revoked if the 14 board finds 15 (1) misrepresentation of a material fact on an application made under 16 this title or a regulation adopted under this title; 17 (2) continuation of the manufacture, sale, or service of alcoholic 18 beverages by the licensee or permittee would be contrary to the best interests of the 19 public; 20 (3) failure on the part of the licensee to correct a defect that constitutes 21 a violation of this title, a condition or restriction imposed by the board, a regulation 22 adopted under this title, or other laws after receipt of notice issued by the board or its 23 agent; 24 (4) conviction of a licensee of a violation of this title, a regulation 25 adopted under this title, or an ordinance adopted under AS 04.21.010; 26 (5) conviction of an agent or employee of a licensee of a violation of 27 this title, a regulation adopted under this title, or an ordinance adopted under 28 AS 04.21.010, if the licensee is found by the board to have either knowingly allowed 29 the violation or to have recklessly or with criminal negligence failed to act in 30 accordance with the duty prescribed under AS 04.21.030 with the result that the agent 31 or employee violates a law, regulation, or ordinance;

01 (6) failure of the licensee to comply with the public health, fire, or 02 safety laws and regulations in the state; 03 (7) use of the licensed premises as a resort for illegal possessors or 04 users of narcotics, prostitutes, or sex traffickers; in addition to any other legally 05 competent evidence, the character of the premises may be proved by the general 06 reputation of the premises in the community as a resort for illegal possessors or users 07 of narcotics, prostitutes, or sex traffickers; 08 (8) occurrence of illegal gambling within the limits of the licensed 09 premises; 10 (9) the licensee permitted a public offense involving moral turpitude to 11 occur on the licensed premises; 12 (10) violation by a licensee of this title, a condition or restriction 13 imposed by the board, a regulation adopted under this title, or an ordinance adopted 14 under AS 04.21.010; or 15 (11) violation by an agent or employee of a licensee of a provision of 16 this title, a condition or restriction imposed by the board, a regulation adopted under 17 this title, or an ordinance adopted under AS 04.21.010, if the licensee is found by the 18 board to have either knowingly allowed the violation or to have recklessly or with 19 criminal negligence failed to act in accordance with the duty prescribed under 20 AS 04.21.030 with the result that the agent or employee violates the law, condition or 21 restriction, regulation, or ordinance. 22 * Sec. 40. AS 04.11.395 is amended to read: 23 Sec. 04.11.395. Board imposed conditions or restrictions. The board may, in 24 the best interests of the public, impose conditions or restrictions on a license, 25 endorsement, or permit issued under this chapter. 26 * Sec. 41. AS 04.11.400(a) is amended to read: 27 (a) Except as provided in (d) - (k) of this section and AS 04.11.405, a new 28 license may not be 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 population, or (B) more than one license of each other type, including 02 licenses that have been issued under (d) or (e) of this section, for each 3,000 03 population or fraction of that population, in a radius of five miles of the licensed 04 premises, excluding the populations of established villages, incorporated cities, unified 05 municipalities, and organized boroughs that are wholly or partly included within the 06 radius; 07 (2) inside an established village, incorporated city, or unified 08 municipality if, after the issuance or relocation, there would be inside the established 09 village, incorporated city, or unified municipality 10 (A) more than one restaurant or eating place license for each 11 1,500 population or fraction of that population; or 12 (B) more than one license of each other type, including licenses 13 that have been issued under (d) or (e) of this section, for each 3,000 population 14 or fraction of that population; 15 (3) inside an organized borough but outside an established village or 16 incorporated city located within the borough if, after the issuance or relocation, there 17 would be inside the borough, but outside the established villages and incorporated 18 cities located within the borough, 19 (A) more than one restaurant or eating place license for each 20 1,500 population or fraction of that population; or 21 (B) more than one license of each other type, including licenses 22 that have been issued under (d) or (e) of this section, for each 3,000 population 23 or fraction of that population excluding the population of those established 24 villages that have adopted a local option under AS 04.11.491(b)(1), (3), or (4), 25 and excluding the population of incorporated cities located within the 26 organized borough. 27 * Sec. 42. AS 04.11.400(a), as amended by sec. 41 of this Act, is amended to read: 28 (a) Except as provided in (f) and (k) [(d) - (k)] of this section and 29 AS 04.11.405, a new license may not be issued and the board may prohibit relocation 30 of an existing license 31 (1) outside an established village, incorporated city, unified

01 municipality, or organized borough if, after the issuance or relocation, in a radius of 02 five miles of the licensed premises, excluding the populations of established 03 villages, incorporated cities, unified municipalities, and organized boroughs that 04 are wholly or partly included within the radius, there would be 05 (A) more than one restaurant or eating place license for each 06 1,500 population or fraction of that population; [, OR] 07 (B) more than one brewery retail, winery retail, or distillery 08 retail license for each 9,000 population or fraction of that population; or 09 (C) more than one license of each other type, except a type 10 listed in (i) of this section [INCLUDING LICENSES THAT HAVE BEEN 11 ISSUED UNDER (d) OR (e) OF THIS SECTION], for each 3,000 population 12 or fraction of that population [, IN A RADIUS OF FIVE MILES OF THE 13 LICENSED PREMISES, EXCLUDING THE POPULATIONS OF 14 ESTABLISHED VILLAGES, INCORPORATED CITIES, UNIFIED 15 MUNICIPALITIES, AND ORGANIZED BOROUGHS THAT ARE 16 WHOLLY OR PARTLY INCLUDED WITHIN THE RADIUS]; 17 (2) inside an established village, incorporated city, or unified 18 municipality if, after the issuance or relocation, there would be inside the established 19 village, incorporated city, or unified municipality 20 (A) more than one restaurant or eating place license for each 21 1,500 population or fraction of that population; [OR] 22 (B) more than one brewery retail, winery retail, or distillery 23 retail license for each 9,000 population or fraction of that population; or 24 (C) more than one license of each other type, except a type 25 listed in (i) of this section [INCLUDING LICENSES THAT HAVE BEEN 26 ISSUED UNDER (d) OR (e) OF THIS SECTION], for each 3,000 population 27 or fraction of that population; 28 (3) inside an organized borough but outside an established village or 29 incorporated city located within the borough if, after the issuance or relocation, there 30 would be inside the borough, but outside the established villages and incorporated 31 cities located within the borough, excluding the population of those established

01 villages that have adopted a local option under AS 04.11.491(b)(1) or (3), and 02 excluding the population of incorporated cities located within the organized 03 borough; 04 (A) more than one restaurant or eating place license for each 05 1,500 population or fraction of that population; [OR] 06 (B) more than one brewery retail, winery retail, or distillery 07 retail license for each 9,000 population or fraction of that population; or 08 (C) more than one license of each other type, except a type 09 listed in (i) of this section [INCLUDING LICENSES THAT HAVE BEEN 10 ISSUED UNDER (d) OR (e) OF THIS SECTION], for each 3,000 population 11 or fraction of that population [EXCLUDING THE POPULATION OF THOSE 12 ESTABLISHED VILLAGES THAT HAVE ADOPTED A LOCAL OPTION 13 UNDER AS 04.11.491(b)(1), (3), OR (4), AND EXCLUDING THE 14 POPULATION OF INCORPORATED CITIES LOCATED WITHIN THE 15 ORGANIZED BOROUGH]. 16 * Sec. 43. AS 04.11.400(i) is repealed and reenacted to read: 17 (i) This section does not apply to a 18 (1) brewery manufacturer license issued under AS 04.09.020; 19 (2) winery manufacturer license issued under AS 04.09.030; 20 (3) distillery manufacturer license issued under AS 04.09.040; 21 (4) general wholesale license issued under AS 04.09.100; 22 (5) limited wholesale brewed beverage and wine license under 23 AS 04.09.110; 24 (6) outdoor recreation lodge license issued under AS 04.09.280; 25 (7) destination resort license issued under AS 04.09.300; 26 (8) beverage dispensary tourism license issued under AS 04.09.340; 27 (9) seasonal restaurant or eating place tourism license issued under 28 AS 04.09.350; 29 (10) winery direct shipment license issued under AS 04.09.360; 30 (11) conditional contractor's permit issued under AS 04.09.690. 31 * Sec. 44. AS 04.11.400(k) is amended to read:

01 (k) The board may allow the relocation of an existing beverage dispensary 02 license under AS 04.09.200 or former AS 04.11.090 to a restaurant, eating place, or 03 hotel, motel, resort, or similar business that contains a restaurant or eating place, or of 04 an existing package store license under AS 04.09.230 or former AS 04.11.150, in a 05 borough with a population of 50,000 [60,000] or more [IF THE GOVERNING BODY 06 OF THE BOROUGH APPROVES THE RELOCATION. HOWEVER, IF THE 07 RELOCATION OF THE LICENSE IS] into or within an incorporated city in the 08 borough. The [, THE] board may not approve the relocation unless, at the time of 09 application, the existing number of issued licenses of the type under consideration 10 for relocation located within the borough exceeds the maximum allowed under 11 (a) of this section and the governing bodies of both the borough and the incorporated 12 city approve the relocation. The board may allow not more than three relocations into 13 each city [IN A BOROUGH] under this subsection each decade. In this subsection, 14 "decade" means each 10-year period beginning April 1 in a year ending in zero. 15 * Sec. 45. AS 04.11 is amended by adding a new section to read: 16 Sec. 04.11.405. Petition for additional restaurant or eating place licenses 17 for certain local governing bodies. (a) A first class city, a home rule city, or a unified 18 municipality may submit a resolution to the board, adopted by its legislative body, 19 petitioning the board for the issuance of additional restaurant or eating place licenses 20 under AS 04.11.100 that exceed the limits under AS 04.11.400(a) in accordance with 21 this section. 22 (b) The board, following a public hearing, may issue one or more additional 23 restaurant or eating place licenses under AS 04.11.100, within the boundaries of the 24 municipality, if the board finds that 25 (1) the municipality 26 (A) serves as a center for commercial activity within and 27 outside the boundaries of the municipality by providing goods and services to a 28 population that is greater than the permanent resident population within the 29 boundaries of the municipality; 30 (B) maintains a local law enforcement department; 31 (C) exercises planning and land-use authority; and

01 (D) at the time of the petition, meets or exceeds the maximum 02 limit under AS 04.11.400(a) for restaurant or eating place licenses issued under 03 AS 04.11.100; 04 (2) the number of additional licenses does not exceed the number of 05 additional licenses requested by the municipality in the petition; and 06 (3) granting the additional licenses is in the public interest. 07 (c) A resolution submitted by a municipality under (a) of this section must 08 include 09 (1) information demonstrating that the petitioner meets the criteria in 10 (b) of this section; 11 (2) the most recent estimate of the number of people who claim 12 residency or work outside the boundaries of the municipality and who are served by 13 the municipality, including the 14 (A) population located outside the boundaries of the 15 municipality that relies on the municipality for goods and services; 16 (B) visitor population; and 17 (C) nonresident worker population that resides in the 18 municipality, but that is not counted in the latest federal or state census for the 19 municipality; 20 (3) the number of existing restaurant or eating place licenses 21 (A) within the boundaries of the municipality; 22 (B) in a geographic area that the municipality serves under (2) 23 of this subsection; 24 (4) information showing that the number of additional licenses 25 requested does not exceed one license for each 1,500 population of the population 26 identified under (2) of this subsection; and 27 (5) additional justification, as necessary, to demonstrate that granting 28 of the additional licenses is in the public interest. 29 (d) If the board grants a petition for additional restaurant or eating place 30 licenses under this section to a municipality, the board may not authorize additional 31 restaurant or eating place licenses to the same municipality under this section for the

01 following 10 years. 02 * Sec. 46. AS 04.11.405(a), as amended by sec. 45 of this Act, is amended to read: 03 (a) A first class city, a home rule city, or a unified municipality may submit a 04 resolution to the board, adopted by its legislative body, petitioning the board for the 05 issuance of additional restaurant or eating place licenses under AS 04.09.210 06 [AS 04.11.100] that exceed the limits under AS 04.11.400(a) in accordance with this 07 section. 08 * Sec. 47. AS 04.11.405(b), as amended by sec. 45 of this Act, is amended to read: 09 (b) The board, following a public hearing, may issue one or more additional 10 restaurant or eating place licenses under AS 04.09.210 [AS 04.11.100], within the 11 boundaries of the municipality, if the board finds that 12 (1) the municipality 13 (A) serves as a center for commercial activity within and 14 outside the boundaries of the municipality by providing goods and services to a 15 population that is greater than the permanent resident population within the 16 boundaries of the municipality; 17 (B) maintains a local law enforcement department; 18 (C) exercises planning and land-use authority; and 19 (D) at the time of the petition, meets or exceeds the maximum 20 limit under AS 04.11.400(a) for restaurant or eating place licenses issued under 21 AS 04.09.210 [AS 04.11.100]; 22 (2) the number of additional licenses does not exceed the number of 23 additional licenses requested by the municipality in the petition; and 24 (3) granting the additional licenses is in the public interest. 25 * Sec. 48. AS 04.11.430 is amended to read: 26 Sec. 04.11.430. Person and location. (a) Each license shall be issued to a 27 specific individual or individuals, to a partnership, including a limited partnership, to a 28 limited liability organization, or to a corporation. If the license is issued to a 29 corporation or a limited liability organization, the registered agent of the corporation 30 or limited liability organization may [MUST] be either an individual resident of the 31 state or a domestic corporation authorized to transact business in this state whose

01 business office is the same as the registered office. 02 (b) Except for a license authorizing the sale of alcoholic beverages on a 03 common carrier, a specific location shall be indicated on the license or permit as the 04 licensed premises, the principal address of which shall be indicated on the license or 05 permit. The mailing address, telephone number, and electronic mailing address of a 06 licensee or, if the licensee is a corporation, the address, telephone number, and 07 electronic mailing address of the registered office of the corporation must be kept 08 current and on file in the main office of the board. 09 * Sec. 49. AS 04.11.450(b) is amended to read: 10 (b) A person who is a representative or owner of a wholesale business 11 licensed under AS 04.09.100 or 04.09.110 [, BREWERY, WINERY, BOTTLING 12 WORKS, OR DISTILLERY] may not be issued, solely or together with others, a 13 manufacturer license issued under AS 04.09.020 - 04.09.040, or a retail license 14 issued under AS 04.09.200 - 04.09.360 [BEVERAGE DISPENSARY LICENSE, A 15 RESTAURANT OR EATING PLACE LICENSE, OR PACKAGE STORE 16 LICENSE. A HOLDER OF A BEVERAGE DISPENSARY LICENSE MAY BE 17 ISSUED A BREWPUB LICENSE, SUBJECT TO THE PROVISIONS OF 18 AS 04.11.135. THE PROHIBITION AGAINST ISSUANCE OF A RESTAURANT 19 OR EATING PLACE LICENSE IMPOSED UNDER THIS SUBSECTION DOES 20 NOT APPLY TO A RESTAURANT OR EATING PLACE LICENSE ISSUED ON 21 OR BEFORE OCTOBER 1, 1996 OR A RESTAURANT OR EATING PLACE 22 LICENSE ISSUED UNDER AN APPLICATION FOR A RESTAURANT OR 23 EATING PLACE LICENSE APPROVED ON OR BEFORE OCTOBER 1, 1996]. 24 * Sec. 50. AS 04.11.450(e) is amended to read: 25 (e) A holder of either a general wholesale license or a limited wholesale 26 brewed [MALT] beverage and wine license may not be employed by or act as the 27 agent or employee of the holder of a manufacturer [BEVERAGE DISPENSARY OR 28 PACKAGE STORE] license under AS 04.09.020 or 04.09.040 or a retail license 29 under AS 04.09.200 - 04.09.360. 30 * Sec. 51. AS 04.11.450 is amended by adding new subsections to read: 31 (g) The holder of a manufacturer license that annually produces in total

01 300,000 barrels or more of brewed beverages, 50,000 nine-liter-equivalent cases or 02 more of wine, or 50,000 nine-liter-equivalent cases or more of distilled spirits may not 03 be issued, solely or together with others, a license under AS 04.09.100 - 04.09.360. 04 (h) For purposes of calculating the volume that the holder of a manufacturer 05 license produces under this section, the volume of production must include all 06 production by 07 (1) the holder of the manufacturer's license; and 08 (2) an officer, director, agent, employee, or affiliate of the holder; in 09 this paragraph, "affiliate" means a person that directly or indirectly, through one or 10 more intermediaries, controls, or is controlled by, or is under common control with, a 11 corporation. 12 * Sec. 52. AS 04.11.460 is amended by adding a new subsection to read: 13 (d) This section does not apply to a winery direct shipment license issued 14 under AS 04.09.360. 15 * Sec. 53. AS 04.11.470 is amended to read: 16 Sec. 04.11.470. Objection. A person may object to an application for issuance, 17 renewal, transfer of location, or transfer to another person of a license, for issuance, 18 renewal, or transfer to another person of an endorsement, or for issuance of a 19 permit, by serving upon the applicant and the board the reasons for the objection. The 20 board shall consider the objections and testimony received at a hearing conducted 21 under AS 04.11.510(b)(2) when it considers the application. An objection and the 22 record of a hearing conducted under AS 04.11.510(b)(2) shall be retained as part of 23 the board's permanent record of its review of the application. 24 * Sec. 54. AS 04.11.480(a) is amended to read: 25 (a) A local governing body may protest the issuance, renewal, relocation, or 26 transfer to another person of a license, or issuance, renewal, or transfer to another 27 person of an endorsement, by sending the board and the applicant a protest and the 28 reasons for the protest within 60 days of the date [RECEIPT FROM THE BOARD] 29 of the notice of filing of the application. A protest received after the 60-day period 30 may not be accepted by the board, and in no event may a protest cause the board to 31 reconsider an approved renewal, relocation, or transfer. The local governing body may

01 protest the continued operation of a license or endorsement during the second year of 02 the biennial license period by sending the board and the licensee a protest and the 03 reasons for the protest by January 31 of the second year of the license. The procedures 04 for action on a protest of continued operation of a license or endorsement are the 05 same as the procedures for action on a protest of a renewal application. The board 06 shall consider a protest and testimony received at a hearing conducted under 07 AS 04.11.510(b)(2) or (4) when it considers the application or continued operation, 08 and the protest and the record of the hearing conducted under AS 04.11.510(b)(2) or 09 (4) shall be kept as part of the board's permanent record of its review. If an application 10 or continued operation is protested, the board shall deny the application or continued 11 operation unless the board finds that the protest is arbitrary, capricious, and 12 unreasonable. 13 * Sec. 55. AS 04.11.480(b) is amended to read: 14 (b) If the permanent residents residing outside of but within two miles of an 15 incorporated city or an established village wish to protest the issuance, renewal, or 16 transfer of a license or endorsement within the city or village, they shall file with the 17 board a petition meeting the requirements of AS 04.11.510(b)(3) requesting a public 18 hearing not later than [WITHIN] 30 days after [OF] the posting of notice required 19 under AS 04.11.310, or by December 31 of the year application is made for renewal of 20 a license. The board shall consider testimony received at a hearing conducted under 21 AS 04.11.510(b)(3) when it considers the application, and the record of a hearing 22 conducted under AS 04.11.510(b)(3) shall be retained as part of the board's permanent 23 record of its review of the application. 24 * Sec. 56. AS 04.11.480(c) is amended to read: 25 (c) A local governing body may recommend that a license be issued, renewed, 26 relocated, or transferred, or that an endorsement be issued, renewed, or 27 transferred to another person, with conditions. The board shall consider 28 recommended conditions and testimony received at a hearing conducted under 29 AS 04.11.510(b)(2) or (4) when it considers the application or continued operation, 30 and the recommended conditions and the record of the hearing conducted under 31 AS 04.11.510(b)(2) or (4) shall be kept as part of the board's permanent record of its

01 review. If the local governing body recommends conditions, the board shall impose 02 the recommended conditions unless the board finds that the recommended conditions 03 are arbitrary, capricious, or unreasonable. If a condition recommended by a local 04 governing body is imposed on a licensee, the local governing body shall assume 05 responsibility for monitoring compliance with the condition, except as otherwise 06 provided by the board. 07 * Sec. 57. AS 04.11.491(a) is amended to read: 08 (a) If a majority of the persons voting on the question vote to approve the 09 option, a municipality shall adopt a local option to prohibit 10 (1) the sale of alcoholic beverages; 11 (2) the sale of alcoholic beverages except by one or more of the 12 following listed on the ballot: 13 (A) a restaurant or eating place licensee; 14 (B) a beverage dispensary licensee; 15 (C) a package store licensee; 16 (D) a caterer holding a beverage dispensary caterer's permit 17 under AS 04.09.610 [AS 04.11.230] to sell alcoholic beverages at a site within 18 the municipality who is also licensed under a beverage dispensary license for 19 premises outside of the municipality; 20 (E) a winery manufacturer licensee; [OR] 21 (F) a winery manufacturer licensee, except that sales may 22 occur only to a person licensed under this title or in another state or country; or 23 (G) an outdoor recreation lodge; 24 (3) the sale of alcoholic beverages except on premises operated by the 25 municipality and under a type of licensed premises listed on the ballot, that may 26 include one or more of the following: 27 (A) a restaurant or eating place license; 28 (B) a beverage dispensary license; or 29 (C) a package store license; 30 (4) the sale and importation of alcoholic beverages; or 31 (5) the sale, importation, and possession of alcoholic beverages.

01 * Sec. 58. AS 04.11.491(b) is amended to read: 02 (b) If a majority of the persons voting on the question vote to approve the 03 option, an established village shall exercise a local option to prohibit 04 (1) the sale of alcoholic beverages; 05 (2) the sale of alcoholic beverages except by one or more of the 06 following listed on the ballot: 07 (A) a restaurant or eating place licensee; 08 (B) a beverage dispensary licensee; 09 (C) a package store licensee; 10 (D) a caterer holding a beverage dispensary caterer's permit 11 under AS 04.09.610 [AS 04.11.230] to sell alcoholic beverages at a site within 12 the established village who is also licensed under a beverage dispensary license 13 for premises outside of the established village; 14 (E) a winery manufacturer licensee; [OR] 15 (F) a winery manufacturer licensee, except that sales may 16 occur only to a person licensed under this title or in another state or country; or 17 (G) an outdoor recreation lodge; 18 (3) the sale and importation of alcoholic beverages; or 19 (4) the sale, importation, and possession of alcoholic beverages. 20 * Sec. 59. AS 04.11.491(d) is amended to read: 21 (d) The ballot for an election on the option set out in (a)(2)(A), (a)(3)(A), or 22 (b)(2)(A) of this section must include a summary explanation of the authority to sell 23 alcoholic beverages given to a restaurant or eating place under AS 04.09.210(a) 24 [AS 04.11.100(a)]. The ballot for an election on the option set out in (a)(2)(B) or (D), 25 (a)(3)(B), or (b)(2)(B) or (D) of this section must include a statement that a beverage 26 dispensary license is commonly known as a "bar" and a summary explanation of the 27 authority to sell alcoholic beverages given to a beverage dispensary licensee under 28 AS 04.09.200 [AS 04.11.090(a)]. The ballot for an election on the option set out in 29 (a)(2)(C), (a)(3)(C), or (b)(2)(C) of this section must include a statement that a 30 package store license is commonly known as a "liquor store" and a summary 31 explanation of the authority to sell alcoholic beverages given to a package store

01 licensee under AS 04.09.230 [AS 04.11.150(a)]. 02 * Sec. 60. AS 04.11.491(g) is amended to read: 03 (g) If a municipality or established village has adopted a local option under 04 (a)(1), (2), (3), or (4), or (b)(1), (2), or (3) of this section, the municipality or 05 established village, as part of the local option question or questions placed before the 06 voters, may 07 (1) adopt an amount of alcoholic beverages that may be imported that 08 is less than the amounts set out in AS 04.09.460(f) [AS 04.11.150(g)]; 09 (2) adopt an amount of alcoholic beverages that would give rise to a 10 presumption that the person possessed the alcoholic beverages for sale; the amounts 11 adopted under this paragraph may be lower than those set out in AS 04.11.010(c) [; 12 (3) OPT TO NOT APPLY A CLASS C FELONY TO VIOLATIONS 13 OF AS 04.16.051 THAT APPLY SOLELY BY REASON OF THE MUNICIPALITY 14 OR ESTABLISHED VILLAGE ADOPTING A LOCAL OPTION UNDER THIS 15 SECTION]. 16 * Sec. 61. AS 04.11.520 is amended to read: 17 Sec. 04.11.520. Notice to local governing body. After receipt of an 18 application for the issuance or renewal of a license or endorsement or an 19 application for transfer of a license to another person or a new location from 20 within [(1)] an established village, [(2)] an incorporated city, [(3)] an organized 21 borough, or [(4)] a unified municipality, the board shall notify [TRANSMIT 22 WRITTEN NOTICE TO] the local governing body in writing within 10 business 23 days so that the local governing body may protest under AS 04.11.480. 24 * Sec. 62. AS 04.11.535(a) is amended to read: 25 (a) If, in a proceeding to suspend or revoke a license, endorsement, or permit 26 under AS 04.11.370(a)(5), the board finds that a sentencing report, record of 27 conviction, or judgment sent to the board under AS 12.55.025(b) or a report prepared 28 by the investigating or arresting officers in connection with the violation, contains 29 information that if uncontradicted or unexplained would provide a ground for 30 suspension or revocation under AS 04.11.370(a)(5), the licensee or permittee has the 31 burden of proof to establish that the licensee or permittee neither knowingly allowed

01 the violation nor recklessly or with criminal negligence failed to act in accordance 02 with the duty prescribed under AS 04.21.030. 03 * Sec. 63. AS 04.11.537 is amended to read: 04 Sec. 04.11.537. Application of precedent. In determining whether issuance, 05 renewal, transfer, relocation, suspension, or revocation of a license or the issuance, 06 renewal, transfer to another person, suspension, or revocation of an endorsement 07 is in the best interests of the public, the board need not conform to or distinguish its 08 decision from any action it has taken in the past on applications presenting similar 09 facts, but may instead base its decision only on the particular facts before it. 10 * Sec. 64. AS 04.11.540 is amended to read: 11 Sec. 04.11.540. License, endorsement, and conditional contractor's permit 12 renewal and expiration. Notwithstanding AS 04.11.680, an application for renewal 13 of a license, endorsement, or a conditional contractor's permit under 14 AS 04.09.690 issued for the two calendar years ending December 31 or of a seasonal 15 license issued for parts of those calendar years may be submitted up until the next 16 February 28. If a complete application for renewal has not been filed by February 28 17 or the required fees and the penalty fees have not been paid by that date, the license, 18 endorsement, or conditional contractor's permit expires at 12:00 midnight 19 February 28. A new license may not be issued to the holder of an expired license for 20 the same premises except on proof satisfactory to the board of good cause for the 21 failure to file and pay. 22 * Sec. 65. AS 04.11.560(b) is amended to read: 23 (b) A decision by the board relating to the issuance, renewal, transfer, 24 relocation, suspension, or revocation of a license or an endorsement under this title 25 may be appealed to the superior court under AS 44.62.560. 26 * Sec. 66. AS 04.11.570 is amended to read: 27 Sec. 04.11.570. Refund and forfeiture of fees. (a) If an application for a 28 license or endorsement is denied, the board shall refund the license fee less the 29 application fee. 30 (b) A license or endorsement fee may not be refunded after the license or 31 endorsement has been issued unless the board determines it has erred in the issuance

01 through no fault of the applicant. 02 (c) If a license, endorsement, or permit is revoked on grounds that 03 statements made in the application are untrue, the [LICENSE] fee paid by the 04 applicant is forfeited to the state. 05 * Sec. 67. AS 04.11.580(b) is amended to read: 06 (b) The licensee shall surrender a current license to the board not later than 07 [WITHIN] 10 days after the loss or vacation of the licensed premises. 08 * Sec. 68. AS 04.11.590(a) is amended to read: 09 (a) Money collected from licenses, endorsements, permits, and civil 10 penalties [FINES] under this title shall be transferred by the board to the Department 11 of Commerce, Community, and Economic Development and deposited in the general 12 fund. 13 * Sec. 69. AS 04.11.610 is amended to read: 14 Sec. 04.11.610. Allocation [REFUND] to municipalities. (a) An amount 15 equal to the sum of the biennial [BIENNIAL] license fees, excluding annual 16 wholesale fees and biennial wholesale license fees, collected within a municipality 17 shall be allocated [REFUNDED] semi-annually to the municipality. 18 (b) If the officers of a municipality fail to actively enforce local ordinances, 19 this title, and laws of the United States and the state, and the regulations relating to 20 the manufacture and sale of alcoholic beverages in the state, or fail to provide the 21 director with a report of contacts with licensed establishments, educational 22 activities concerning this title and local ordinances, and violations of this title 23 occurring in the municipality, at the time and in the format as may be required 24 by regulation adopted by the board, the commissioner of commerce, community, 25 and economic development may deny the allocation [REFUND] provided for under 26 (a) of this section until the board finds the enforcement of the ordinances, laws, and 27 regulations is resumed or the report is provided. 28 (c) The Department of Commerce, Community, and Economic Development 29 shall recover any funds [AMOUNTS] erroneously allocated [REFUNDED] under (a) 30 of this section. The Department of Commerce, Community, and Economic 31 Development shall schedule repayments of erroneously allocated funds

01 [REFUNDED AMOUNTS] over a sufficient period of time to minimize financial 02 hardship to the municipality involved. 03 * Sec. 70. AS 04.11.630(b) is amended to read: 04 (b) A license, endorsement, or permit issued under this title shall be posted 05 within the licensed premises or designated premises so as to be easily available for 06 inspection upon request by a peace officer or other person during regular business 07 hours or during the time period specified on the permit. 08 * Sec. 71. AS 04.11.680 is amended to read: 09 Sec. 04.11.680. Duration of licenses, endorsements, and permits. (a) Upon 10 application [AND PAYMENT OF ONE-HALF OF THE BIENNIAL FEE], the board 11 may issue a seasonal license under this title that is effective for the intervals stated on 12 the license. [A SEASONAL LICENSE MAY NOT BE EFFECTIVE FOR MORE 13 THAN 12 MONTHS IN A TWO-YEAR PERIOD.] Otherwise, a license or 14 endorsement [ALL LICENSES] issued under this title and a conditional 15 contractor's permit issued under AS 04.09.690 is [OTHER THAN A RETAIL 16 STOCK SALE LICENSE ARE] effective for the two calendar years ending 17 December 31, unless a shorter period is prescribed by the board or by law. 18 (b) A permit issued under this title shall be for a specific time [THE] period 19 [PRESCRIBED BY THE BOARD]. The period shall be clearly designated on the 20 permit. 21 * Sec. 72. AS 04.16.010(c) is amended to read: 22 (c) A licensee, an agent, or employee may not permit a person to enter and a 23 person may not enter premises licensed under this title between the hours of 5:00 a.m. 24 and 8:00 a.m. each day, unless the person is 25 (1) on the premises to conduct business with the licensee, agent, or 26 employee, and the licensee, agent, or employee is in compliance with (a) and (b) 27 of this section; 28 (2) a common carrier with a common carrier dispensary license 29 under AS 04.09.260; 30 (3) [. THIS SUBSECTION DOES NOT APPLY TO COMMON 31 CARRIERS OR TO] an employee of the licensee who is on the premises to prepare

01 for the next day's business; 02 (4) performing maintenance or improvements authorized by the 03 licensee; 04 (5) [. A PERSON MAY ENTER OR REMAIN] on the premises [OF 05 A BONA FIDE RESTAURANT OR EATING PLACE LICENSED UNDER THIS 06 TITLE] to consume food or nonalcoholic beverages and the premises are covered 07 under a restaurant endorsement issued under AS 04.09.450. 08 * Sec. 73. AS 04.16.010 is amended by adding a new subsection to read: 09 (e) A person who violates (a), (b), or (c) of this section is guilty of a violation. 10 * Sec. 74. AS 04.16.015(a) is amended to read: 11 (a) On premises where alcoholic beverages are sold by the drink, a licensee or 12 a licensee's agent or employee may not 13 (1) offer or deliver, as a marketing device to the general public, free 14 alcoholic beverages to a patron, except as provided for the holder of a 15 manufacturer sampling endorsement under AS 04.09.410 or a package store 16 sampling endorsement under AS 04.09.490; 17 (2) deliver an alcoholic beverage to a person already possessing the 18 equivalent of two or more alcoholic drinks; in this paragraph, "alcoholic drink" 19 means 16 ounces of beer, a malt beverage, or cider containing less than 8.5 20 percent alcohol by volume, six ounces of wine, sake, or cider containing 8.5 21 percent alcohol by volume or more, or 1.5 ounces of a distilled spirit; 22 (3) sell, offer to sell, or deliver alcoholic beverages to a person or 23 group of persons at a price less than the price regularly charged for the beverages 24 during a consecutive seven-day period [THE SAME CALENDAR WEEK], except at 25 private functions not open to the general public; 26 (4) sell, offer to sell, or deliver an unlimited number of alcoholic 27 beverages to a person or group of persons during a set period of time for a fixed price; 28 (5) sell, offer to sell, or deliver alcoholic beverages to a person or 29 group of persons on any one day at prices less than those charged the general public 30 on that day, except at private functions not open to the general public; 31 (6) encourage or permit an organized game or contest on the licensed

01 premises that involves drinking alcoholic beverages or the awarding of alcoholic 02 beverages as prizes. 03 * Sec. 75. AS 04.16.015 is amended by adding a new subsection to read: 04 (e) A person who violates this section is guilty of a violation. 05 * Sec. 76. AS 04.16 is amended by adding a new section to read: 06 Sec. 04.16.017. Trade practices. (a) A person holding a license under 07 AS 04.09.020, 04.09.030, 04.09.040, 04.09.100, or 04.09.110 or engaged in the 08 alcoholic beverage industry in another state or country as a brewer, vintner, distiller, 09 or importer, or as an agent of a brewer, vintner, distiller, or importer, may not, except 10 as provided in regulations adopted by the board under (b) of this section, induce a 11 person holding a license under this title to 12 (1) operate as a tied house by inducing a retailer engaged in the sale of 13 alcoholic beverages to purchase products from an entity to the exclusion, in whole or 14 in part, of products sold or offered for sale by other entities by 15 (A) furnishing, giving, renting, lending, or selling to the retailer 16 equipment fixtures, signs, supplies, money, services, or other things of value, 17 except those excluded in regulation and determined to be not contrary to the 18 public interest or contrary to the intent of this subsection; 19 (B) paying or crediting the retailer for an advertising, display, 20 or distribution service; 21 (C) guaranteeing a loan or the repayment of a financial 22 obligation of the retailer; 23 (D) extending to the retailer credit for a period in excess of the 24 credit period usual and customary to the industry for the particular class of 25 transactions; or 26 (E) requiring the retailer to take and dispose of a certain quota 27 of the products; 28 (2) operate as an exclusive outlet by requiring that a retailer engaged in 29 the sale of alcoholic beverages purchase products from an entity, to the exclusion, in 30 whole or in part, of alcoholic beverages sold or offered for sale by other entities; 31 (3) purchase products from an entity to the exclusion, in whole or in

01 part, of products sold or offered for sale by other entities by 02 (A) commercial bribery; or 03 (B) offering or giving any bonus, premium, or compensation to 04 an officer, employee, or representative of the licensee; 05 (4) enter into an agreement for consignment sales, or to purchase, offer 06 to purchase, or contract to purchase products on consignment, under conditional sale, 07 or with the privilege of return on any basis other than a bona fide sale, or where part of 08 the transaction involves, directly or indirectly, the acquisition by an entity from the 09 licensee or the entity's agreement to acquire from the licensee other alcoholic 10 beverages, except that this paragraph does not apply to transactions involving solely 11 the return of merchandise for ordinary and usual commercial reasons arising after the 12 merchandise has been sold. 13 (b) The board may adopt regulations providing exceptions to the practices 14 listed under (a) of this section that are 15 (1) consistent with federal law at the time of the effective date of sec. 16 76 of this Act; 17 (2) necessary to avoid practical difficulty or undue hardship on a 18 licensee; 19 (3) in the best interests of the public; and 20 (4) consistent with the requirements of this title. 21 (c) The board shall adopt regulations establishing administrative penalties for 22 a violation of this section. 23 (d) In this section, "commercial bribery," "consignment sales," "exclusive 24 outlet," and "tied house" have the meanings given in 27 U.S.C. 205 and regulations 25 adopted under that section. 26 * Sec. 77. AS 04.16.020 is amended by adding new subsections to read: 27 (d) A person who violates a provision of this section commits the offense of 28 unauthorized solicitation or purchase of alcoholic beverages. 29 (e) Unauthorized solicitation or purchase of alcoholic beverages is a violation 30 and is punishable by a fine of $100. 31 * Sec. 78. AS 04.16 is amended by adding a new section to read:

01 Sec. 04.16.022. Online sale and purchase of brewed beverages and distilled 02 spirits. (a) A licensee or a licensee's agent or employee may not sell or offer to sell brewed 03 beverages or distilled spirits to the public online. 04 (b) A person may not purchase brewed beverages or distilled spirits online. 05 (c) A person who violates (a) of this section is, upon conviction, guilty of a 06 class A misdemeanor. 07 (d) A person who violates (b) of this section is guilty of a violation. 08 * Sec. 79. AS 04.16.025(a) is amended to read: 09 (a) A person may not knowingly enter or remain on premises 10 (1) in which alcoholic beverages are manufactured, sold, offered for 11 sale, possessed for sale or barter, trafficked in, or bartered in violation of 12 (A) AS 04.09.060, 04.09.070, 04.09.145, 04.09.370, 04.09.380, 13 or AS 04.11.010; or 14 (B) a municipal ordinance adopted under AS 04.21.010(a) or 15 (b); or 16 (2) licensed under this title during hours in which the person's presence 17 on the premises is a violation of a municipal ordinance adopted under authority of 18 AS 04.16.010(d) providing for hours of closure that are outside the hours of closure 19 prescribed by AS 04.16.010(c). 20 * Sec. 80. AS 04.16.030 is amended by adding new subsections to read: 21 (c) A person who violates this section commits the offense of prohibited 22 conduct relating to a drunken person. 23 (d) Prohibited conduct relating to a drunken person is a violation, punishable 24 by a fine of at least $250 but not more than $500. 25 (e) In addition to the penalty specified under (d) of this section, the holder of 26 the license is strictly and vicariously liable for a violation committed by an employee 27 or agent of the licensee on the licensed premises, punishable by an administrative 28 penalty of $250. Notwithstanding AS 04.11.370(a)(4) and (5) and AS 04.16.180(b)(1), 29 the board may not order suspension of the license for the first violation committed on 30 the licensed premises under this section. 31 * Sec. 81. AS 04.16.035 is amended to read:

01 Sec. 04.16.035. Possession of ingredients for homebrew in certain areas. A 02 person residing in an area that has adopted a local option under AS 04.11.491 [TO 03 PROHIBIT THE SALE, IMPORTATION, AND POSSESSION OF ALCOHOLIC 04 BEVERAGES UNDER AS 04.11.491(a)(5) OR (b)(4)] may not possess sugar, 05 artificial sugar, malt, yeast, or any other material or equipment with the intent to use 06 the material or equipment to create an alcoholic beverage. 07 * Sec. 82. AS 04.16.035 is amended by adding new subsections to read: 08 (b) A person who knowingly violates this section commits the crime of 09 possession of ingredients for homebrew. 10 (c) Possession of ingredients for homebrew is a class A misdemeanor. 11 * Sec. 83. AS 04.16.040 is amended to read: 12 Sec. 04.16.040. Access of drunken persons to licensed premises. A drunken 13 person may not knowingly enter or remain on licensed premises [LICENSED 14 UNDER THIS TITLE]. 15 * Sec. 84. AS 04.16.040 is amended by adding new subsections to read: 16 (b) A person who violates this section commits the offense of prohibited 17 access by a drunken person. 18 (c) Prohibited access by a drunken person is a violation. 19 * Sec. 85. AS 04.16.045 is amended by adding new subsections to read: 20 (b) A person who violates this section commits the offense of permitting 21 consumption not authorized under a license. 22 (c) Permitting consumption not authorized under a license is a violation. 23 * Sec. 86. AS 04.16.047 is amended by adding new subsections to read: 24 (d) A person who is restricted from purchasing alcohol under AS 04.16.160 25 who knowingly violates (a) of this section commits the offense of entering or 26 remaining on licensed premises. 27 (e) Entering or remaining on licensed premises is a class A misdemeanor. 28 * Sec. 87. AS 04.16.049(a) is amended to read: 29 (a) A person under 21 years of age may not knowingly enter or remain in 30 premises licensed under this title unless 31 (1) accompanied by a parent, guardian, or spouse who has attained 21

01 years of age; 02 (2) the person is allowed to enter and remain on [AT LEAST 16 03 YEARS OF AGE,] the premises under a restaurant endorsement issued under 04 AS 04.09.450 [ARE DESIGNATED BY THE BOARD AS A RESTAURANT FOR 05 THE PURPOSES OF THIS SECTION, AND THE PERSON ENTERS AND 06 REMAINS ONLY FOR DINING; 07 (3) THE PERSON IS UNDER 16 YEARS OF AGE, IS 08 ACCOMPANIED BY A PERSON OVER 21 YEARS OF AGE, THE PARENT OR 09 GUARDIAN OF THE UNDERAGED PERSON CONSENTS, THE PREMISES ARE 10 DESIGNATED BY THE BOARD AS A RESTAURANT FOR THE PURPOSES OF 11 THIS SECTION, AND THE PERSON ENTERS AND REMAINS ONLY FOR 12 DINING]; 13 (3) [(4)] the person is permitted on the premises under a club license 14 issued under AS 04.09.220(g) or former AS 04.11.110(g); or 15 (4) [(5)] otherwise provided under (c), (d), or (g) of this section. 16 * Sec. 88. AS 04.16.049(c) is amended to read: 17 (c) Notwithstanding any other provision in this section, a person 16 or 17 18 years of age may enter and remain within the licensed premises of a hotel or motel, 19 large resort, golf course, general wholesaler, limited brewed beverage and wine 20 wholesaler, common carrier dispensary, outdoor recreation lodge, or restaurant 21 [OR EATING PLACE] in the course of employment if (1) the employment does not 22 involve the serving, mixing, delivering, or dispensing of alcoholic beverages; (2) the 23 person has the written consent of a parent or guardian; and (3) an exemption from the 24 prohibition of AS 23.10.355 is granted by the Department of Labor and Workforce 25 Development. [THE BOARD, WITH THE APPROVAL OF THE GOVERNING 26 BODY HAVING JURISDICTION AND AT THE LICENSEE'S REQUEST, SHALL 27 DESIGNATE WHICH PREMISES ARE HOTELS, GOLF COURSES, 28 RESTAURANTS, OR EATING PLACES FOR THE PURPOSES OF THIS 29 SUBSECTION.] 30 * Sec. 89. AS 04.16.049(d) is amended to read: 31 (d) Notwithstanding any other provision in this section, a person 18, 19, or 20

01 years of age may be employed within the licensed premises of a hotel or motel, large 02 resort, golf course, general wholesaler, limited brewed beverage and wine 03 wholesaler, common carrier dispensary, outdoor recreation lodge, or restaurant 04 [OR EATING PLACE], may enter and remain within those premises for the purpose 05 of employment, but may not, in the course of employment, sell, serve, deliver, or 06 dispense alcoholic beverages. 07 * Sec. 90. AS 04.16.049 is amended by adding a new subsection to read: 08 (j) Notwithstanding any other provision in this section, a person under 21 09 years of age may be present on the licensed premises of a common carrier dispensary, 10 destination resort, or outdoor recreation lodge for the purpose of travel, travel lodging, 11 or outdoor recreation activities provided by the licensee if the person is 12 (1) at least 16 years of age; or 13 (2) under 16 years of age and a parent or legal guardian of the 14 underaged person consents. 15 * Sec. 91. AS 04.16.051(d) is repealed and reenacted to read: 16 (d) A person who, with criminal negligence, furnishes or delivers an alcoholic 17 beverage to a person under 21 years of age in violation of (a) of this section commits 18 the crime of furnishing or delivering to a minor. 19 * Sec. 92. AS 04.16.051 is amended by adding a new subsection to read: 20 (e) Furnishing or delivering to a minor is 21 (1) a violation and is punishable by a fine of $500, except as provided 22 in (2) of this subsection; 23 (2) a class C felony if the person who receives the alcoholic beverage 24 negligently causes serious physical injury to or the death of another person while 25 under the influence of the alcoholic beverage received in violation of this section; in 26 this paragraph, 27 (A) "negligently" means acting with civil negligence; and 28 (B) "serious physical injury" has the meaning given in 29 AS 11.81.900. 30 * Sec. 93. AS 04.16.052 is amended by adding new subsections to read: 31 (b) In addition to the penalty specified under (d) of this section, for a violation

01 committed by an employee or agent of the licensee on a licensed premises under this 02 section, the holder of the license is strictly liable and subject to an administrative 03 penalty of $250. Notwithstanding AS 04.11.370(a)(4) and (5) and AS 04.16.180(b)(1), 04 the board may not order suspension of the license for the first violation committed on 05 the licensed premises under this section. 06 (c) A person who violates this section commits the offense of licensee, 07 employee, or agent furnishing alcohol to a minor. 08 (d) Licensee, employee, or agent furnishing alcohol to a minor is a violation 09 and is punishable by a fine of at least $250 but not more than $500. 10 * Sec. 94. AS 04.16.055 is amended by adding new subsections to read: 11 (b) A person who knowingly rents a room in a hotel, motel, resort, or similar 12 business for the purpose of providing alcoholic beverages to a person under 21 years 13 of age commits the crime of renting a room for the purpose of providing alcoholic 14 beverages to a person under 21 years of age. 15 (c) Renting a room for the purpose of providing alcoholic beverages to a 16 person under 21 years of age is a violation and is punishable by a fine of $500. 17 * Sec. 95. AS 04.16.057(b) is amended to read: 18 (b) A person who violates this section is guilty of a violation and is 19 punishable by a fine of $500 [SHALL BE PUNISHED AS PROVIDED IN 20 AS 12.55]. 21 * Sec. 96. AS 04.16.060(e) is amended to read: 22 (e) A person under the age of 21 who is seeking to enter and remain in a 23 licensed premises under AS 04.16.049(a)(2) [OR (3)] may not misrepresent the 24 person's age or having obtained the consent of the parent or guardian required by that 25 section. 26 * Sec. 97. AS 04.16.060 is amended by adding new subsections to read: 27 (g) A person who violates this section commits the offense of purchase by or 28 delivery to a person under 21 years of age. 29 (h) Purchase by or delivery to a person under 21 years of age is a violation and 30 is punishable by a fine of $500. 31 (i) For a person under 21 years of age who commits an offense under (g) of

01 this section, the violation must be charged and filed with the court as a separate case 02 and may not be combined or joined with any other minor offense or criminal charge in 03 one action at the time of filing. A court may reduce the fine to $50 for a person who 04 has not more than one previous violation or to $250 for a person who has two or more 05 previous violations if the person provides the court, not later than six months after a 06 judgment of conviction is entered, with proof of completion of 07 (1) an alcohol safety action program or a juvenile alcohol safety action 08 program developed, designated, or approved by the Department of Health and Social 09 Services under AS 47.37; or 10 (2) a community diversion panel. 11 * Sec. 98. AS 04.16.080 is amended to read: 12 Sec. 04.16.080. Consumption [SALES OR CONSUMPTION] at school 13 events. A person may not [SELL OR] consume alcoholic beverages during a school 14 event at the site of the event. 15 * Sec. 99. AS 04.16.080 is amended by adding new subsections to read: 16 (b) A person who consumes an alcoholic beverage during a school event at the 17 site of the event commits the offense of consuming at a school event. 18 (c) Consuming at a school event is a violation and is punishable by a fine of 19 $100. 20 * Sec. 100. AS 04.16.090(c) is amended to read: 21 (c) In [FOR THE PURPOSES OF] this section, "consideration" includes 22 [BUT IS NOT LIMITED TO] cover charge, the sale of food, ice, mixers, or other 23 liquids used with alcoholic beverage drinks, or the furnishing of glassware or other 24 containers for use in the consumption of alcoholic beverages. 25 * Sec. 101. AS 04.16.090 is amended by adding new subsections to read: 26 (d) A person who knowingly violates this section commits the crime of 27 maintaining a bottle club. 28 (e) Maintaining a bottle club is a class A misdemeanor. 29 * Sec. 102. AS 04.16.110 is amended by adding new subsections to read: 30 (b) A person who knowingly sells an alcoholic beverage in violation of (a) of 31 this section commits the crime of sale of a prohibited alcoholic beverage.

01 (c) Sale of a prohibited alcoholic beverage is a class A misdemeanor. 02 * Sec. 103. AS 04.16.120 is amended by adding new subsections to read: 03 (d) A person who removes an alcoholic beverage from licensed premises in 04 violation of (a) of this section and a person who brings an alcoholic beverage onto 05 licensed premises in violation of (b) of this section commits the offense of removal or 06 introduction of alcoholic beverages. 07 (e) Notwithstanding (a) of this section, the holder of a beverage dispensary 08 license under AS 04.09.200, the holder of a beverage dispensary tourism license under 09 AS 04.09.340, or the holder's employee may transport alcoholic beverages across 10 unlicensed portions of a hotel, motel, or large resort if the 11 (1) licensee holds an endorsement under AS 04.09.430 or 04.09.440; 12 and 13 (2) licensee or employee is walking directly from one licensed area of 14 the premises to another licensed area. 15 (f) Removal or introduction of alcoholic beverages is a violation and is 16 punishable by a fine of $100. 17 * Sec. 104. AS 04.16.125 is repealed and reenacted to read: 18 Sec. 04.16.125. Alcoholic beverages transported or delivered by common 19 carrier. (a) A common carrier may not transport or deliver alcoholic beverages to a 20 person in the state unless the board has approved the common carrier under (b) of this 21 section. 22 (b) A common carrier may apply to the board, on a form prescribed by the 23 board, for approval to transport and deliver alcoholic beverages to persons in the state. 24 The board shall approve an application if the common carrier certifies that it will meet 25 the requirements under (c) and (d) of this section. 26 (c) A common carrier delivering alcoholic beverages to a person in the state 27 shall ensure that the package containing alcoholic beverages is delivered directly to a 28 person who 29 (1) presents identification and acceptable proof of age under 30 AS 04.21.050 showing that the person is 21 years of age or older; and 31 (2) provides a signature acknowledging that the person received the

01 package. 02 (d) A common carrier approved by the board under (b) of this section shall 03 make records of shipments of alcoholic beverages to persons in the state available for 04 inspection and audit by the board. The board may require periodic reporting of 05 approved common carriers on a form prescribed by the board. 06 (e) The board shall maintain, periodically review, and make available for 07 public inspection a list of approved common carriers for transport and delivery of 08 alcoholic beverages to persons in the state. 09 (f) The board may remove a previously approved common carrier from the list 10 if the common carrier transports or delivers alcoholic beverages in violation of (c) or 11 (d) of this section. 12 (g) A person may use a common carrier to transport and deliver alcoholic 13 beverages into an area that has restricted the sale of alcoholic beverages under 14 AS 04.11.491(a)(1), (2), or (3) or (b)(1) or (2) if 15 (1) the shipping container holding the alcoholic beverages is clearly 16 labeled as containing alcoholic beverages and requiring a signature of a person at least 17 21 years of age upon delivery; and 18 (2) an itemized invoice showing the quantity and purchase value of 19 distilled spirits, wine, and brewed beverages is attached to the outside of the shipping 20 container. 21 (h) The requirements under (g) of this section do not apply to 22 (1) a person transporting 23 (A) two liters or less of wine; 24 (B) one gallon or less of brewed beverages; or 25 (C) one liter or less of distilled spirits; or 26 (2) the transportation of alcoholic beverages for use on premises 27 allowed under AS 04.11.491(a)(2) or (3) or (b)(2) or for use under a permit allowed 28 under AS 04.11.491(a)(2). 29 (i) A common carrier that has not been approved by the board to transport and 30 deliver alcoholic beverages and that transports or delivers alcoholic beverages into or 31 within the state commits the offense of unapproved common carrier transport or

01 delivery of alcoholic beverages. 02 (j) Unapproved common carrier transport or delivery of alcoholic beverages is 03 a violation and is punishable by a fine of $500. 04 (k) An approved common carrier that violates a provision under (c) or (d) of 05 this section commits the offense of common carrier noncompliance for transport or 06 delivery of alcoholic beverages. 07 (l) Common carrier noncompliance for transport or delivery of alcoholic 08 beverages is a violation. 09 (m) A person who knowingly violates (g) of this section commits the crime of 10 unauthorized transportation of alcoholic beverages by common carrier into a local 11 option area. 12 (n) Unauthorized transportation of alcoholic beverages by common carrier 13 into a local option area is a class A misdemeanor. 14 (o) In this section, 15 (1) "common carrier" means a motor vehicle, watercraft, aircraft, or 16 railroad car available for public hire to transport freight or passengers; 17 (2) "transport" has the meaning given in AS 04.11.499. 18 * Sec. 105. AS 04.16.130 is amended by adding new subsections to read: 19 (c) A person who violates this section commits the offense of unauthorized 20 storage of alcoholic beverages. 21 (d) Unauthorized storage of alcoholic beverages is a violation. 22 * Sec. 106. AS 04.16.140 is amended by adding new subsections to read: 23 (b) A person who knowingly violates (a) of this section commits the crime of 24 sale or consumption of an alcoholic beverage in a warehouse. 25 (c) Sale or consumption of an alcoholic beverage in a warehouse is a violation. 26 * Sec. 107. AS 04.16.150 is amended by adding new subsections to read: 27 (b) A licensee who knowingly violates (a) of this section commits the crime of 28 failure to ensure compliance. 29 (c) Failure to ensure compliance is a class A misdemeanor. 30 * Sec. 108. AS 04.16.160 is amended by adding new subsections to read: 31 (c) A person who knowingly fails to comply with a restriction on purchasing

01 alcoholic beverages in violation of (a) of this section commits the crime of failure to 02 comply with a restriction on purchasing alcoholic beverages. 03 (d) Failure to comply with a restriction on purchasing alcoholic beverages is a 04 class A misdemeanor. 05 * Sec. 109. AS 04.16.170 is amended to read: 06 Sec. 04.16.170. Source of alcoholic beverages. (a) Alcoholic beverages for 07 consumption by the purchaser may only [NOT] be sold by [UNLESS OBTAINED 08 FROM] a person licensed under this title. 09 (b) A person transporting alcoholic beverages into the state may not sell those 10 alcoholic beverages to a person not licensed under this title, unless the alcoholic 11 beverages are used for religious, industrial, pharmaceutical, or medical purposes, or as 12 allowed under AS 04.09.360. 13 * Sec. 110. AS 04.16.170 is amended by adding new subsections to read: 14 (c) A licensee who knowingly violates (a) or (b) of this section commits the 15 crime of sale of alcoholic beverages from or to an unlicensed person. 16 (d) Sale of alcoholic beverages from or to an unlicensed person is a class A 17 misdemeanor. 18 * Sec. 111. AS 04.16.172 is amended to read: 19 Sec. 04.16.172. Restrictions on purchase and sale of alcoholic beverages. A 20 person licensed under AS 04.09.200, 04.09.210, 04.09.220, 04.09.230, 04.09.270, 21 04.09.280, 04.09.290, 04.09.300, 04.09.310, 04.09.320, 04.09.330, 04.09.340, or 22 04.09.350 [AS 04.11.090, 04.11.100, 04.11.110, OR 04.11.150] may not purchase, 23 sell, or offer for sale an alcoholic beverage unless the alcoholic beverage being 24 purchased, sold, or offered for sale was obtained from a person licensed under 25 (1) AS 04.09.100 or 04.09.110 [AS 04.11.160] as a primary source of 26 supply for the alcoholic beverage being purchased, sold, or offered for sale; 27 (2) AS 04.09.230 [AS 04.11.150] and the alcoholic beverage being 28 purchased, sold, or offered for sale was obtained from a person licensed under 29 AS 04.09.100 or 04.09.110 [AS 04.11.160] as a primary source of supply; or 30 (3) AS 04.09.020, 04.09.030, or 04.09.040 [AS 04.11.130, 04.11.140, 31 OR 04.11.170].

01 * Sec. 112. AS 04.16.172 is amended by adding new subsections to read: 02 (b) A licensee who knowingly violates (a) of this section commits the crime of 03 licensee obtaining alcoholic beverages from an unlicensed seller. 04 (c) Licensee obtaining alcoholic beverages from an unlicensed seller is a class 05 A misdemeanor. 06 * Sec. 113. AS 04.16.175 is amended by adding new subsections to read: 07 (c) A person who knowingly furnishes an alcoholic beverage to a player in 08 violation of (a) of this section commits the crime of furnishing an alcoholic beverage 09 in aid of a gambling enterprise. 10 (d) Furnishing an alcoholic beverage in aid of a gambling enterprise is a class 11 A misdemeanor. 12 * Sec. 114. AS 04.16.180(b) is amended to read: 13 (b) A suspension or revocation of a license ordered by the board under 14 AS 04.11.370(a)(4) and (5) shall be as follows: 15 (1) on first conviction, the license of the premises involved may not be 16 revoked, but, except as provided in AS 04.16.030 and 04.16.052, may be suspended 17 for not more than 45 days; 18 (2) on second conviction, the license of the premises involved may not 19 be revoked, but may be suspended for not more than 90 days; 20 (3) on third conviction, the license of the premises involved may be 21 suspended or revoked. 22 * Sec. 115. AS 04.16.180(e) is amended to read: 23 (e) In this section, 24 (1) "conviction" includes a conviction of a violation, a 25 misdemeanor, and a felony; 26 (2) [THE TERMS] "second conviction" and "third conviction" include 27 only convictions for violations that occur within five years after [OF] the first 28 conviction; the [. THE] terms refer to the cumulative number of convictions of a 29 licensee of any combination of violations of the provisions of this title, regulations 30 adopted under this title, or ordinances adopted under AS 04.21.010; [. THE TERMS] 31 "second conviction" and "third conviction" include a conviction of the agent or

01 employee of a licensee of a violation of a law, regulation, or ordinance if the 02 conviction constitutes a ground for suspension or revocation under 03 AS 04.11.370(a)(5). 04 * Sec. 116. AS 04.16.180 is amended by adding new subsections to read: 05 (f) In addition to the criminal penalties specified in this title and AS 12.55, a 06 holder of a license under this title who is convicted of a crime or offense involving the 07 violation of a provision of this title or a regulation adopted under this title is subject to 08 suspension or revocation of the license under this section and other administrative 09 penalties imposed by the board. For purposes of administrative penalties under this 10 subsection, each violation is a separate offense. 11 (g) The holder of a license subject to suspension or revocation under (b)(2) or 12 (3) of this section may request a hearing to petition the board to reduce the 13 administrative penalty. The board may reduce the administrative penalty if the 14 licensee shows, by a preponderance of the evidence, that 15 (1) the licensee complied with the alcohol server education course 16 requirement of AS 04.21.025 and adopted and enforced a compliance program and a 17 disciplinary program for agents and employees of the licensee; 18 (2) the licensee has a pattern and practice of exercising the degree of 19 care required under AS 04.16.030; 20 (3) the licensee posted warning signs as required under AS 04.21.065; 21 and 22 (4) in the case of a conviction for a violation of AS 04.16.030 or 23 04.16.052, the agent or employee convicted under AS 04.16.030 or 04.16.052 24 completed an alcohol server education course under AS 04.21.025. 25 * Sec. 117. AS 04.16.220(a) is amended to read: 26 (a) The following are subject to forfeiture: 27 (1) alcoholic beverages manufactured, sold, offered for sale, possessed 28 for sale, or bartered or exchanged for goods and services in this state in violation of 29 AS 04.09.060, 04.09.070, 04.09.145, 04.09.370, 04.09.380, or AS 04.11.010; 30 alcoholic beverages possessed, stocked, warehoused, or otherwise stored in violation 31 of AS 04.21.060; alcoholic beverages sold or offered for sale in violation of a local

01 option adopted under AS 04.11.491; alcoholic beverages transported into the state and 02 sold to persons not licensed under this chapter in violation of AS 04.16.170(b); 03 alcoholic beverages transported in violation of AS 04.16.125; 04 (2) materials and equipment used in the manufacture, sale, offering for 05 sale, possession for sale, or barter or exchange of alcoholic beverages for goods and 06 services in this state in violation of AS 04.09.060, 04.09.070, 04.09.145, 04.09.370, 07 04.09.380, or AS 04.11.010; materials and equipment used in the stocking, 08 warehousing, or storage of alcoholic beverages in violation of AS 04.21.060; materials 09 and equipment used in the sale or offering for sale of an alcoholic beverage in an area 10 in violation of a local option adopted under AS 04.11.491; 11 (3) aircraft, vehicles, or vessels used to transport or facilitate the 12 transportation of 13 (A) alcoholic beverages manufactured, sold, offered for sale, 14 possessed for sale, or bartered or exchanged for goods and services in this state 15 in violation of AS 04.09.060, 04.09.070, 04.09.145, 04.09.370, 04.09.380, or 16 AS 04.11.010; 17 (B) property stocked, warehoused, or otherwise stored in 18 violation of AS 04.21.060; 19 (C) alcoholic beverages imported into a municipality or 20 established village in violation of AS 04.11.499(a); 21 (4) alcoholic beverages found on licensed premises that do not bear 22 federal excise stamps if excise stamps are required under federal law; 23 (5) alcoholic beverages, materials, or equipment used in violation of 24 AS 04.16.175; 25 (6) money, securities, negotiable instruments, or other things of value 26 used in financial transactions or items of value purchased from the proceeds derived 27 from activity prohibited under AS 04.09.060, 04.09.070, 04.09.145, 04.09.370, 28 04.09.380, or AS 04.11.010 or in violation of a local option adopted under 29 AS 04.11.491; 30 (7) a firearm used in furtherance of a violation of this title. 31 * Sec. 118. AS 04.16.220(d) is amended to read:

01 (d) Property subject to forfeiture under (a) of this section may be forfeited 02 (1) upon conviction of a person for a violation of AS 04.09.060, 03 04.09.070, 04.09.145, 04.09.370, 04.09.380, AS 04.11.010, 04.11.499, AS 04.16.125, 04 AS 04.21.060, or AS 04.11.501 or an ordinance adopted under AS 04.11.501; or 05 (2) upon judgment by the superior court in a proceeding in rem that the 06 property was used in a manner subjecting it to forfeiture under (a) of this section. 07 * Sec. 119. AS 04.16.220(g) is amended to read: 08 (g) It is no defense in an in rem forfeiture proceeding brought under (d)(2) of 09 this section that a criminal proceeding is pending or has resulted in conviction or 10 acquittal of a person charged with violating AS 04.09.060, 04.09.070, 04.09.145, 11 04.09.370, 04.09.380, AS 04.11.010, 04.11.499, or AS 04.21.060. 12 * Sec. 120. AS 04.16.220(i) is amended to read: 13 (i) Upon conviction for a violation of AS 04.09.060, 04.09.070, 04.09.145, 14 04.09.370, 04.09.380, AS 04.11.010, or 04.11.499(a), if an aircraft, vehicle, or 15 watercraft is subject to forfeiture under (a) of this section, the court shall, subject to 16 remission to innocent parties under this section, 17 (1) order the forfeiture of an aircraft to the state; 18 (2) order the forfeiture of a vehicle or watercraft if 19 (A) the defendant has a prior felony conviction for a violation 20 of AS 11.41 or a similar law in another jurisdiction; 21 (B) the defendant is on felony probation or parole; 22 (C) the defendant has a prior conviction for violating 23 AS 04.11.010 or 04.11.499(a); or 24 (D) the quantity of alcohol transported in violation of this title 25 was twice the presumptive amounts in AS 04.11.010(c). 26 * Sec. 121. AS 04.21 is amended by adding a new section to read: 27 Sec. 04.21.012. Keg registration. (a) A person may not purchase an alcoholic 28 beverage in a keg or other container holding four or more gallons unless the person 29 provides proof that the person is over 21 years of age and completes and signs a 30 registration form. The purchaser of an alcoholic beverage in a keg or other container 31 holding four or more gallons may not remove or obliterate the temporary identifying

01 tag on the keg or container. 02 (b) A licensee who sells or offers for sale an alcoholic beverage in a keg or 03 other container holding four or more gallons shall require a purchaser to show 04 acceptable proof of age under AS 04.21.050(b) and sign the sworn statement on a 05 registration form. The licensee shall complete the registration form and affix a 06 temporary tag with a unique identifier to the keg or container before releasing the 07 container to the purchaser. The licensee shall retain a copy of the form for one year 08 and make the form available for inspection. 09 (c) The board shall prescribe a registration form for use by licensees and 10 purchasers. The board may approve for use a registration form adopted by a local 11 governing body. A registration form must include 12 (1) the name of the seller; 13 (2) the name of the purchaser; 14 (3) a description of the proof of age provided by the buyer, including 15 the identification number, if any; 16 (4) the unique identifier on the temporary tag attached to the keg or 17 container under (b) of this section. 18 (d) A licensee or an agent or employee of a licensee who sells alcoholic 19 beverages in a keg or other container holding four or more gallons without completing 20 a registration form or affixing a temporary identification tag to the keg or container 21 commits the crime of selling alcoholic beverages in an unregistered keg. 22 (e) A person who is not licensed under this title or the employee or agent of a 23 person who is not licensed under this title who possesses alcoholic beverages in a keg 24 or other container holding four or more gallons without a temporary identification tag 25 commits the crime of possessing alcoholic beverages in an unregistered keg. 26 (f) Selling alcoholic beverages in an unregistered keg is a violation. 27 (g) Possessing alcoholic beverages in an unregistered keg is a violation and is 28 punishable by a fine of $100. 29 * Sec. 122. AS 04.21.020(a) is amended to read: 30 (a) Except as provided under (b) and (d) of this section, a person who provides 31 alcoholic beverages to another person may not be held civilly liable for injuries

01 resulting from the intoxication of that person unless the person who provides the 02 alcoholic beverages holds a license authorized under AS 04.09.010 - 04.09.380 03 [AS 04.11.080 - 04.11.220] or is an agent or employee of [SUCH] a licensee and 04 (1) the alcoholic beverages are provided to a person under [THE AGE 05 OF] 21 years of age in violation of AS 04.16.051, unless the licensee, agent, or 06 employee secures in good faith from the person a signed statement, liquor 07 identification card, or driver's license meeting the requirements of AS 04.21.050(a) 08 and (b), that indicates that the person is 21 years of age or older; or 09 (2) the alcoholic beverages are provided to a drunken person in 10 violation of AS 04.16.030. 11 * Sec. 123. AS 04.21.020(b) is amended to read: 12 (b) A person who sells or barters an alcoholic beverage to another person in 13 violation of AS 04.09.060, 04.09.070, 04.09.145, 04.09.370, 04.09.380, or 14 AS 04.11.010 is strictly liable (1) to the recipient or another person for civil damages 15 if, while under the influence of the alcoholic beverage, the person receiving the 16 alcoholic beverage engages in conduct that results in civil damages and the recipient's 17 being under the influence of the alcoholic beverage substantially contributes to the 18 civil damages; and (2) for the cost to the state or a political subdivision of the state to 19 criminally prosecute a person who receives an alcoholic beverage from a person who 20 violates AS 04.11.010 if the prosecution results from the violation of AS 04.11.010 21 described in this subsection. 22 * Sec. 124. AS 04.21.025(a) is repealed and reenacted to read: 23 (a) As a condition of issuance or renewal of a license or conditional 24 contractor's permit and selling alcoholic beverages under a license or conditional 25 contractor's permit, the board shall require a licensee or permittee who sells or serves 26 alcoholic beverages and a licensee's or permittee's agents and employees who sell or 27 serve alcoholic beverages or check the identification of a patron to complete an 28 alcohol server education course approved by the board. This section applies only to a 29 conditional contractor's permit under AS 04.09.690 and the following licenses: 30 (1) brewery manufacturer license under AS 04.09.020 with a 31 manufacturer sampling endorsement;

01 (2) winery manufacturer license under AS 04.09.030 with a 02 manufacturer sampling endorsement; 03 (3) distillery manufacturer license under AS 04.09.040 with a 04 manufacturer sampling endorsement; 05 (4) beverage dispensary license under AS 04.09.200; 06 (5) restaurant or eating place license under AS 04.09.210; 07 (6) club license under AS 04.09.220; 08 (7) package store license under AS 04.09.230; 09 (8) pub license under AS 04.09.240; 10 (9) theater license under AS 04.09.250; 11 (10) sporting event license under AS 04.09.270; 12 (11) outdoor recreation lodge license under AS 04.09.280; 13 (12) golf course license under AS 04.09.290; 14 (13) destination resort license under AS 04.09.300; 15 (14) brewery retail license under AS 04.09.310; 16 (15) winery retail license under AS 04.09.320; 17 (16) distillery retail license under AS 04.09.330; 18 (17) beverage dispensary tourism license under AS 04.09.340; 19 (18) seasonal restaurant or eating place tourism license under 20 AS 04.09.350; 21 (19) a brewery license issued under former AS 04.11.130, if brewed 22 beverages are offered for sale to the public for consumption on or off the premises 23 under AS 04.09.020; 24 (20) a winery license issued under former AS 04.11.140, if wine is 25 offered for sale to the public for consumption on or off the premises under 26 AS 04.09.030; 27 (21) a distillery license issued under former AS 04.11.170, if distilled 28 beverages are offered for sale to the public for consumption on or off the premises 29 under AS 04.09.040. 30 * Sec. 125. AS 04.21.025(b) is amended to read: 31 (b) The subjects that are included in an approved alcohol server education

01 course shall be determined under regulations adopted by the board. In approving 02 alcohol server education courses, the board shall consider the needs of both urban and 03 rural licensees regarding access to an approved alcohol server education course. A 04 licensee, permittee, agent, or employee who sells or serves alcoholic beverages shall 05 keep the card described in (c) of this section or other proof acceptable to the board of 06 successful completion of an approved alcohol server education course on the licensed 07 premises during working hours. 08 * Sec. 126. AS 04.21.025(c) is amended to read: 09 (c) A licensee, permittee, agent, or employee shall complete the course 10 required under (a) of this section and pass a written test demonstrating an 11 understanding of the course subjects not more than 30 days after being licensed, 12 permitted, or employed. The course provider shall issue a card to each individual who 13 completes the course and passes the written test. A card issued under this subsection is 14 valid for three years from the date of issue. A licensee, permittee, agent, or employee 15 may renew a card issued under this section; to renew the card, the licensee, permittee, 16 agent, or employee must pass a written test demonstrating an understanding of the 17 course subjects. A person shall possess a valid card before being listed as a 18 designated server for a permitted event under AS 04.09.600(f). 19 * Sec. 127. AS 04.21.025 is amended by adding new subsections to read: 20 (f) A person who violates (a) - (c) of this section commits the offense of 21 failure to comply with alcohol server education requirements. 22 (g) Failure to comply with alcohol server education requirements is a 23 violation. 24 * Sec. 128. AS 04.21.050(a) is amended to read: 25 (a) If a licensee or an agent or employee of the licensee questions or has 26 reason to question whether a person entering licensed premises, or ordering, 27 purchasing, attempting to purchase, or otherwise procuring or attempting to procure 28 alcoholic beverages, 29 (1) has attained the age of 21 years or is entering without consent in 30 violation of AS 04.16.049(a)(2) [AS 04.16.049(a)(3)] and has not attained the age of 31 16 years, that licensee, agent, or employee shall require the person to furnish proof of

01 age acceptable under (b) of this section or proof of consent in a form determined by 02 the board; if the person questioned does not furnish proof of age acceptable under (b) 03 of this section, or if a licensee, agent, or employee questions or has reason to question 04 the validity of the proof of age furnished, the licensee, employee, or agent shall require 05 the person to sign a statement that the person is over the age of 21 or 16 years, as 06 appropriate; this statement shall be made on a form prepared by and furnished to the 07 licensee by the board; 08 (2) is restricted from purchasing alcoholic beverages under 09 AS 04.16.160, the licensee, agent, or employee may, but has no duty or obligation to, 10 require the person to furnish proof acceptable under (b) of this section that the person 11 is not restricted from purchasing alcoholic beverages or require the person to sign a 12 statement that the person is not restricted from purchasing alcoholic beverages under 13 AS 04.16.160; this statement shall be made on a form prepared by and furnished to the 14 licensee by the board. 15 * Sec. 129. AS 04.21.060 is amended by adding new subsections to read: 16 (b) A licensee who stores alcoholic beverages elsewhere than on the licensed 17 premises and who fails to comply with (a)(1) - (3) of this section commits the offense 18 of unauthorized warehousing. 19 (c) Unauthorized warehousing is a violation. 20 * Sec. 130. AS 04.21.065(a) is repealed and reenacted to read: 21 (a) A holder of one of the following types of licenses or permits shall post on 22 the licensed or designated premises three separate warning signs as described in (b) of 23 this section: 24 (1) brewery manufacturer license under AS 04.09.020 with a 25 manufacturer sampling endorsement under AS 04.09.410; 26 (2) winery manufacturer license under AS 04.09.030 with a 27 manufacturer sampling endorsement under AS 04.09.410; 28 (3) distillery manufacturer license under AS 04.09.040 with a 29 manufacturer sampling endorsement under AS 04.09.410; 30 (4) beverage dispensary license under AS 04.09.200; 31 (5) restaurant or eating place license under AS 04.09.210;

01 (6) club license under AS 04.09.220; 02 (7) package store license under AS 04.09.230; 03 (8) pub license under AS 04.09.240; 04 (9) theater license under AS 04.09.250; 05 (10) common carrier dispensary license under AS 04.09.260; 06 (11) sporting event license under AS 04.09.270; 07 (12) outdoor recreation lodge license under AS 04.09.280; 08 (13) golf course license under AS 04.09.290; 09 (14) destination resort license under AS 04.09.300; 10 (15) brewery retail license under AS 04.09.310; 11 (16) winery retail license under AS 04.09.320; 12 (17) distillery retail license under AS 04.09.330; 13 (18) beverage dispensary tourism license under AS 04.09.340; 14 (19) seasonal restaurant or eating place tourism license under 15 AS 04.09.350; 16 (20) beverage dispensary caterer's permit under AS 04.09.610; 17 (21) restaurant caterer's dining permit under AS 04.09.620; 18 (22) club caterer's permit under AS 04.09.630; 19 (23) art exhibit event permit under AS 04.09.640; 20 (24) nonprofit organization event permit under AS 04.09.650; 21 (25) tasting event permit under AS 04.09.670; 22 (26) conditional contractor's permit under AS 04.09.690; 23 (27) another license or permit issued by the board authorizing 24 consumption of alcoholic beverages. 25 * Sec. 131. AS 04.21 is amended by adding new sections to read: 26 Sec. 04.21.072. Fines and other criminal penalties. (a) A violation under this 27 title, unless otherwise specified in the provision of this title defining the offense, is 28 punishable by a fine of $250. 29 (b) A misdemeanor or felony under this title, unless otherwise specified in the 30 provision of this title defining the offense, is punishable as provided in AS 12.55. 31 Sec. 04.21.074. Bail forfeiture schedule. (a) The supreme court shall establish

01 a schedule of bail amounts for violations under this title. The bail amount may not 02 exceed the fine for the violation. The bail amount must appear on the citation. 03 (b) If a person cited for a violation under this title does not contest the citation, 04 the person may, on or before the 30th day after the date of the citation, mail or 05 personally deliver to the clerk of the court in which the citation is filed 06 (1) the amount of bail indicated on the citation for the violation; and 07 (2) a copy of the citation indicating that the right to an appearance is 08 waived, a plea of no contest is entered, and the bail is forfeited. 09 (c) When bail has been forfeited under (b) of this section, a judgment of 10 conviction shall be entered. Forfeiture of bail is a complete satisfaction for the 11 violation. The clerk of the court accepting the bail shall provide the violator with a 12 receipt stating that fact if requested. 13 (d) A person cited under this section is guilty of failure to obey a citation 14 under AS 12.25.230 if the person fails to pay the bail amount established under (a) of 15 this section or to appear in court as required. 16 (e) When bail has been forfeited under (b) of this section, the court shall 17 forward a copy of the judgment of conviction to the board. 18 Sec. 04.21.076. Suspension of fine or sentence. The court may not suspend a 19 fine for an offense other than a misdemeanor or felony under this title, or suspend 20 imposition or execution of sentence for an offense other than a misdemeanor or felony 21 under this title, unless otherwise expressly provided in this title. 22 * Sec. 132. AS 04.21.078 is amended to read: 23 Sec. 04.21.078. Court records of persons under 21 years of age. The Alaska 24 Court System may not publish on a publicly available website the court records of a 25 violation of AS 04.16.049, [OR] 04.16.050, 04.16.060, or a similar ordinance of a 26 municipality, if the violation was charged separately and was not joined with any other 27 minor offense or criminal charge at the time of filing. 28 * Sec. 133. AS 04.21.080(b)(6) is amended to read: 29 (6) "designated premises" means any or all designated portions of a 30 building or structure, rooms or enclosures in the building or structure, or real estate 31 leased, used, controlled, or operated by a licensee or permittee for the purpose for

01 which the license or permit is issued by the board at the location of the site for which 02 the license or permit is issued; 03 * Sec. 134. AS 04.21.080(b)(15) is amended to read: 04 (15) "licensed premises" means any or all designated portions of a 05 building or structure, rooms or enclosures in the building or structure, or real estate 06 leased, used, controlled, or operated by a licensee in the conduct of business for which 07 the licensee is licensed by the board at the specific address for which the license or an 08 endorsement to the license is issued; 09 * Sec. 135. AS 04.21.080(b) is amended by adding new paragraphs to read: 10 (21) "bona fide restaurant" means an establishment or a portion of an 11 establishment where, during all times alcoholic beverages are served or consumed, 12 (A) the patron's principal activity is consumption of food; and 13 (B) a variety of types of food items appropriate for meals is 14 prepared on site and available for sale as shown on a menu provided to patrons 15 and filed with the board; 16 (22) "brewed beverage" means an alcoholic beverage made by 17 fermenting cereal grains, including beer and malt beverages, sake, and kombucha; 18 (23) "calendar year" means the period beginning January 1 and ending 19 December 31; 20 (24) "cider" means a type of wine made primarily from fermented 21 apples, apple juice, or concentrate; 22 (25) "distilled spirit" means an alcoholic beverage that is first 23 fermented and then distilled; 24 (26) "golf course" means a course that is open to the public, having at 25 least nine holes and covering at least 2,950 yards; 26 (27) "kombucha" means a brewed beverage made from fermented tea 27 and containing at least one-half percent alcohol by volume; 28 (28) "mead" means a type of wine made primarily from honey; 29 (29) "sake" means a type of brewed beverage made primarily from 30 fermented rice; 31 (30) "school grounds" has the meaning given in AS 11.71.900;

01 (31) "wine" means an alcoholic beverage made from fermented grapes 02 or other fruit or honey. 03 * Sec. 136. AS 05.15.690(48) is amended to read: 04 (48) "vendor" means a business whose primary activity is not regulated 05 by this chapter but that 06 (A) is engaged in the sale of pull-tabs on behalf of a permittee; 07 (B) holds a business license under AS 43.70; and 08 (C) is an establishment holding a 09 (i) beverage dispensary license under AS 04.09.200 10 [AS 04.11.090] that has not been designated by the Alcoholic Beverage 11 Control Board under AS 04.16.049(a)(2) [AS 04.16.049(a)(2) - (3)], 12 has not been exempted by the Department of Labor and Workforce 13 Development under AS 04.16.049(c) and AS 23.10.355, and if the 14 establishment is a hotel, motel, resort, or similar business that caters to 15 the traveling public as a substantial part of its business, does not allow 16 the sale of pull-tabs in a dining room, banquet room, guest room, or 17 other public areas other than a room in which there is regularly 18 maintained a fixed counter or service bar that has plumbing 19 connections to permanent plumbing at which alcoholic beverages are 20 sold or served to members of the public for consumption; 21 (ii) package store license under AS 04.09.230 22 [AS 04.11.150]; 23 * Sec. 137. AS 09.65.315(b) is amended to read: 24 (b) A person licensed under AS 04.09.010 - 04.09.380 [AS 04.11.080 - 25 04.11.255], or an agent or employee of the person, is not liable for damages resulting 26 from a motor vehicle accident described under (a) of this section. A person or entity 27 that participates in making arrangements for transportation of a vehicle under (a) of 28 this section is not liable for damages resulting from a motor vehicle accident described 29 in (a) of this section. 30 * Sec. 138. AS 11.76.100(b) is amended to read: 31 (b) Notwithstanding the provisions of (a) of this section, a person who

01 maintains a vending machine is not in violation of (a)(3) of this section if the vending 02 machine is located 03 (1) on premises licensed as a beverage dispensary under AS 04.09.200 04 [AS 04.11.090], licensed as a club under AS 04.09.220 [AS 04.11.110], or licensed as 05 a package store under AS 04.09.230 [AS 04.11.150]; and 06 (A) as far as practicable from the primary entrance; and 07 (B) in a place that is directly and continually supervised by a 08 person employed on the licensed premises during the hours the vending 09 machine is accessible to the public; or 10 (2) in an employee break room or other controlled area of a private 11 work place that is not generally considered a public place and the room or area 12 contains a posted warning sign at least 11 inches by 14 inches indicating that 13 possession of tobacco by a person under 19 years of age is prohibited under 14 AS 11.76.105. 15 * Sec. 139. AS 11.76.107(a) is amended to read: 16 (a) A person commits the offense of failure to supervise a cigarette vending 17 machine if the person owns premises licensed as a beverage dispensary under 18 AS 04.09.200, [AS 04.11.090 OR] licensed as a club under AS 04.09.220, 19 [AS 04.11.110] or licensed as a package store under AS 04.09.230 [AS 04.11.150] and 20 with criminal negligence fails to have an employee supervise a vending machine on 21 those premises that dispenses cigarettes, cigars, tobacco, or products containing 22 tobacco as required by AS 11.76.100(b)(1)(B). 23 * Sec. 140. AS 12.62.400(a) is amended to read: 24 (a) To obtain a national criminal history record check for determining a 25 person's qualifications for a license, permit, registration, employment, or position, a 26 person shall submit the person's fingerprints to the department with the fee established 27 by AS 12.62.160. The department may submit the fingerprints to the Federal Bureau 28 of Investigation to obtain a national criminal history record check of the person for the 29 purpose of evaluating a person's qualifications for 30 (1) a license or conditional contractor's permit to manufacture, sell, 31 offer for sale, possess for sale or barter, traffic in, or barter an alcoholic beverage

01 under AS 04.09 [AS 04.11]; 02 (2) licensure as a mortgage lender, a mortgage broker, or a mortgage 03 loan originator under AS 06.60; 04 (3) admission to the Alaska Bar Association under AS 08.08; 05 (4) licensure as a collection agency operator under AS 08.24; 06 (5) a certificate of fitness to handle explosives under AS 08.52; 07 (6) licensure as a massage therapist under AS 08.61; 08 (7) licensure to practice nursing or certification as a nurse aide under 09 AS 08.68; 10 (8) certification as a real estate appraiser under AS 08.87; 11 (9) a position involving supervisory or disciplinary power over a minor 12 or dependent adult for which criminal justice information may be released under 13 AS 12.62.160(b)(9); 14 (10) a teacher certificate under AS 14.20; 15 (11) licensure as a security guard under AS 18.65.400 - 18.65.490; 16 (12) a concealed handgun permit under AS 18.65.700 - 18.65.790; 17 (13) licensure as an insurance producer, managing general agent, 18 reinsurance intermediary broker, reinsurance intermediary manager, surplus lines 19 broker, or independent adjuster under AS 21.27; 20 (14) serving and executing process issued by a court by a person 21 designated under AS 22.20.130; 22 (15) a school bus driver license under AS 28.15.046; 23 (16) licensure as an operator or an instructor for a commercial driver 24 training school under AS 28.17; 25 (17) registration as a broker-dealer, agent, investment adviser 26 representative, or state investment adviser under AS 45.55.030 - 45.55.060; 27 (18) a registration or license to operate a marijuana establishment 28 under AS 17.38. 29 * Sec. 141. AS 12.85 is amended by adding a new section to read: 30 Sec. 12.85.015. Record of judgment of conviction. When a person is 31 convicted of an offense under a provision of AS 04, the court shall provide a copy of

01 the judgment of conviction to the Alcoholic Beverage Control Board. 02 * Sec. 142. AS 18.56.230(b) is amended to read: 03 (b) The corporation may not authorize the commercial use of space in a multi- 04 unit residential housing development owned or financed by the corporation for 05 (1) a business that offers adult entertainment; 06 (2) the sale of alcoholic beverages, unless the sale [IS IN A 07 RESTAURANT OR EATING PLACE LICENSED UNDER AS 04.11.100 OR] is in 08 premises covered by a restaurant endorsement issued [DESIGNATED] by the 09 Alcoholic Beverage Control Board under AS 04.09.450 [AS A RESTAURANT 10 UNDER AS 04.16.049]; 11 (3) substance abuse treatment; or 12 (4) a business that primarily sells, transfers, or stores cigarettes or 13 tobacco-related products. 14 * Sec. 143. AS 18.65.085(c) is amended to read: 15 (c) The Department of Public Safety may establish and administer a reward 16 program, and provide grants to municipalities, established villages, and, at the request 17 of a municipality or established village, to a nonprofit association that administers a 18 village public safety officer program, for reward programs leading to the apprehension 19 and conviction of persons who violate AS 04.09.060, 04.09.070, 04.09.145, 04.09.370, 20 04.09.380, or AS 04.11.010 by selling, importing, or possessing alcoholic beverages 21 in violation of a local option adopted by a municipality or established village under 22 AS 04.11.491. 23 * Sec. 144. AS 18.80.230(b) is amended to read: 24 (b) Notwithstanding (a) of this section, a physical fitness facility may limit 25 public accommodation to only males or only females to protect the privacy interests of 26 its users. Public accommodation may be limited under this subsection only to those 27 rooms in the facility that are primarily used for weight loss, aerobic, and other 28 exercises, or for resistance weight training. Public accommodation may not be limited 29 under this subsection to rooms in the facility primarily used for other purposes, 30 including conference rooms, dining rooms, and premises licensed under AS 04.09 31 [AS 04.11]. This subsection does not apply to swimming pools or golf courses.

01 * Sec. 145. AS 39.50.200(b) is amended by adding a new paragraph to read: 02 (65) Marijuana Control Board (AS 17.38.080). 03 * Sec. 146. AS 43.60 is amended by adding a new section to read: 04 Sec. 43.60.060. Winery direct shipment tax; statement; audit. A holder of a 05 winery direct shipment license under AS 04.09.360 who sells wine in the state or who 06 consigns shipments of wine into the state shall 07 (1) be subject to the taxes provided under AS 43.60.010(a); 08 (2) provide monthly statements and other information required under 09 AS 43.60.020 with the remittance of a tax collected under this section; 10 (3) allow the Department of Revenue to perform an audit of the 11 holder's records upon request; and 12 (4) consent to the jurisdiction of a state court concerning enforcement 13 of this section relating to the collection of taxes and other money owed by the holder, 14 including interest and penalties. 15 * Sec. 147. AS 43.70.105(a) is amended to read: 16 (a) This chapter does not apply to 17 (1) a fisheries business; 18 (2) the sale of liquor under a license issued under AS 04.09 19 [AS 04.11]; 20 (3) an insurance business; 21 (4) a mining business; 22 (5) supplying services as an employee; 23 (6) furnishing goods or services by a person who does not represent to 24 be regularly engaged in furnishing goods or services; 25 (7) the activities of an investment club; in this paragraph, 26 (A) "investment club" means a group of individuals, 27 incorporated or otherwise organized, that engages primarily in investing in 28 securities, that does not sell investment services to another person, that does 29 not advertise, and the primary purpose of which is educational; 30 (B) "security" has the meaning given in AS 45.55.990. 31 * Sec. 148. AS 45.45.590(1) is amended to read:

01 (1) "business proprietor" means a person who owns a place of business 02 in which the public may assemble and in which copyrighted musical works may be 03 performed, broadcasted, or otherwise transmitted; in this paragraph, "place of 04 business" includes a store, professional office, sports facility, entertainment facility, 05 restaurant, hotel, or [AN] alcoholic beverage establishment licensed under AS 04.09 06 [AS 04.11]; 07 * Sec. 149. AS 45.50.471(b) is amended by adding a new paragraph to read: 08 (58) violating AS 04.16.017 (alcohol trade practices). 09 * Sec. 150. The uncodified law of the State of Alaska is amended to read: 10 DIRECT COURT RULE AMENDMENT. Rule 17, Alaska Rules of Minor 11 Offense Procedure, is amended by adding a new subsection to read: 12 (g) A prosecutor may not join a minor offense for a violation of AS 04.16.049, 13 [OR] 04.16.050, or 04.16.060 with a related criminal offense. 14 * Sec. 151. AS 04.11.070, 04.11.080, 04.11.090, 04.11.100, 04.11.110, 04.11.115, 15 04.11.120, 04.11.130, 04.11.135, 04.11.140, 04.11.150, 04.11.160, 04.11.170, 04.11.180, 16 04.11.200, 04.11.210, 04.11.220, 04.11.225, 04.11.230, 04.11.240, 04.11.250, 04.11.255, 17 04.11.400(d), 04.11.400(h), 04.11.400(j); AS 04.16.070, 04.16.100, 04.16.180(a), 18 04.16.180(d), 04.16.210; and AS 04.21.080(b)(3) are repealed. 19 * Sec. 152. AS 04.11.400(e) and 04.11.400(g) are repealed. 20 * Sec. 153. AS 04.09.270(f) and 04.09.320(k) are repealed January 1, 2027. 21 * Sec. 154. The uncodified law of the State of Alaska is amended by adding a new section 22 to read: 23 APPLICABILITY. (a) The provisions of secs. 9 - 19, 28, 72 - 75, 77 - 121, 126 - 129, 24 131, 138, 139, and 141 of this Act apply to offenses committed on or after the effective date 25 of each of those respective sections. 26 (b) References to previous convictions in AS 04.11.270(a), as amended by sec. 22 of 27 this Act, AS 04.16.180(b), as amended by sec. 114 of this Act, AS 04.16.180(e), as amended 28 by sec. 115 of this Act, and AS 04.16.220(i), as amended by sec. 120 of this Act, apply to 29 convictions occurring before, on, or after the effective date of each of those respective 30 sections. 31 * Sec. 155. The uncodified law of the State of Alaska is amended by adding a new section

01 to read: 02 TRANSITION: CONVERSION OF APPLICATIONS AND LICENSES. (a) The 03 Alcoholic Beverage Control Board shall convert, within 90 days of the effective date of sec. 04 155 of this Act, 05 (1) a license issued or renewed as necessary for the public convenience under 06 former AS 04.11.400(e) or 04.11.400(g), repealed by sec. 152 of this Act, into a restaurant or 07 eating place license under AS 04.09.210, added by sec. 9 of this Act, if the license was issued 08 as a restaurant or eating place license, or into a beverage dispensary license under 09 AS 04.09.200, added by sec. 9 of this Act, if the license was issued as a beverage dispensary 10 license under former AS 04.11.400(j); 11 (2) notwithstanding AS 04.11.400(a) and (b), an application submitted to the 12 board that meets all of the requirements under former AS 04.11.400(e) or 04.11.400(g), 13 repealed by sec. 152 of this Act, into an application for a restaurant or eating place license 14 under AS 04.09.210, added by sec. 9 of this Act, if the license was issued as a restaurant or 15 eating place license; 16 (3) a license issued or renewed as a bottling works license under former 17 AS 04.11.120, repealed by sec. 151 of this Act, into a brewery manufacturer license under 18 AS 04.09.020, added by sec. 9 of this Act, or into a winery manufacturer license under 19 AS 04.09.030, added by sec. 9 of this Act; 20 (4) a license issued or renewed as a brewpub license under former 21 AS 04.11.135, repealed by sec. 151 of this Act, into a brewery manufacturer license under 22 AS 04.09.020, added by sec. 9 of this Act; 23 (5) a license issued or renewed as a theater license under former 24 AS 04.11.090, repealed by sec. 151 of this Act, or under former AS 04.11.100, repealed by 25 sec. 151 of this Act, into a theater license under AS 04.09.250, added by sec. 9 of this Act; 26 (6) a license issued or renewed as a wholesale license under former 27 AS 04.11.160(a), repealed by sec. 151 of this Act, into a general wholesale license under 28 AS 04.09.100, added by sec. 9 of this Act; 29 (7) a license issued or renewed as a wholesale license under former 30 AS 04.11.160(b), repealed by sec. 151 of this Act, into a limited wholesale brewed beverage 31 and wine license under AS 04.09.110, added by sec. 9 of this Act;

01 (8) a license issued or renewed as a beverage dispensary license under former 02 AS 04.11.400(d), repealed by sec. 151 of this Act, into a beverage dispensary tourism license 03 under AS 04.09.340, added by sec. 9 of this Act; 04 (9) a duplicate license issued or renewed as a duplicate beverage dispensary 05 license under former AS 04.11.090(e), repealed by sec. 151 of this Act, into a multiple fixed 06 counter endorsement under AS 04.09.420, added by sec. 9 of this Act. 07 (b) The Alcoholic Beverage Control Board may 08 (1) convert a license issued or renewed as a brewery license under former 09 AS 04.11.130, repealed by sec. 151 of this Act, into a brewery manufacturer license under 10 AS 04.09.020, added by sec. 9 of this Act, and a brewery retail license under AS 04.09.310, 11 added by sec. 9 of this Act, upon application by the licensee; 12 (2) notwithstanding AS 04.11.400(a) or (b), convert an application submitted 13 to the board that meets all of the requirements under former AS 04.11.130, repealed by sec. 14 151 of this Act, into an application for a brewery manufacturer license under AS 04.09.020, 15 added by sec. 9 of this Act, and a brewery retail license under AS 04.09.310, added by sec. 9 16 of this Act; 17 (3) convert a license issued or renewed as a winery license under former 18 AS 04.11.140, repealed by sec. 151 of this Act, into a winery manufacturer license under 19 AS 04.09.030, added by sec. 9 of this Act, and a winery retail license under AS 04.09.320, 20 added by sec. 9 of this Act, upon application by the licensee; 21 (4) notwithstanding AS 04.11.400(a) or (b), convert an application submitted 22 to the board that meets all of the requirements under former AS 04.11.140, repealed by sec. 23 151 of this Act, into an application for a winery manufacturer license under AS 04.09.030, 24 added by sec. 9 of this Act, and a winery retail license under AS 04.09.320, added by sec. 9 of 25 this Act; 26 (5) convert a license issued or renewed as a distillery license under former 27 AS 04.11.170, repealed by sec. 151 of this Act, into a distillery manufacturer license under 28 AS 04.09.040, added by sec. 9 of this Act, and a distillery retail license under AS 04.09.330, 29 added by sec. 9 of this Act, upon application by the licensee; 30 (6) notwithstanding AS 04.11.400(a) or (b), convert an application submitted 31 to the board that meets all of the requirements under former AS 04.11.170, repealed by sec.

01 151 of this Act, into an application for a distillery manufacturer license under AS 04.09.040, 02 added by sec. 9 of this Act, and a distillery retail license under AS 04.09.330, added by sec. 9 03 of this Act; 04 (7) convert a license issued or renewed as a recreational site license under 05 former AS 04.11.210, repealed by sec. 151 of this Act, into a sporting event license under 06 AS 04.09.270, added by sec. 9 of this Act, upon application by the licensee; 07 (8) establish an application form and procedure for conversion applications 08 under this section. 09 * Sec. 156. The uncodified law of the State of Alaska is amended by adding a new section 10 to read: 11 TRANSITION: SEASONAL RESTAURANT OR EATING PLACE LICENSE. 12 Notwithstanding the effective date of sec. 9 of this Act, the board may issue a seasonal 13 restaurant or eating place license to a person who files an application on a form prescribed by 14 the board. The board shall adopt regulations relating to a seasonal restaurant or eating place 15 license under AS 04.06.100. 16 * Sec. 157. The uncodified law of the State of Alaska is amended by adding a new section 17 to read: 18 TRANSITION: REGULATIONS. The Department of Commerce, Community, and 19 Economic Development and the Alcoholic Beverage Control Board may adopt regulations 20 necessary to implement the changes made by this Act. The regulations take effect under 21 AS 44.62 (Administrative Procedure Act), but not before the effective date of the law 22 implemented by the regulation. 23 * Sec. 158. Sections 30, 34, 36, 41, 45, 48, 97, 132, 152, 156, and 157 of this Act take effect 24 immediately under AS 01.10.070(c). 25 * Sec. 159. Except as provided in sec. 158 of this Act, this Act takes effect January 1, 2019.