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

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

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

01 (c) At least 80 percent of the final product of brewed beverages offered for 02 sale by the holder of a brewery manufacturer license must be manufactured on the 03 holder's licensed premises in the state. 04 Sec. 04.09.030. Winery manufacturer license. (a) A winery manufacturer 05 license authorizes the holder to operate a winery for the manufacture, packaging, 06 storing, and sale of its wine to a buyer as permitted in AS 04.09.050. 07 (b) The biennial winery manufacturer license fee is $1,500. 08 (c) At least 80 percent of the final product of wine offered for sale by the 09 holder of a winery manufacturer license must be manufactured on the holder's licensed 10 premises in the state. 11 Sec. 04.09.040. Distillery manufacturer license. (a) A distillery manufacture 12 license authorizes the holder to operate a distillery for the manufacture, packaging, 13 storing, and sale of its distilled spirits to a buyer as permitted in AS 04.09.050. 14 (b) The biennial distillery manufacturer license fee is $1,500. 15 (c) At least 80 percent of the final product of distilled spirits offered for sale 16 by the holder of a distillery manufacturer license must be manufactured on the holder's 17 licensed premises in the state. 18 Sec. 04.09.050. Authorized sales. (a) The holder of a manufacturer license 19 that annually produces in total less than 300,000 barrels of brewed beverages, less than 20 50,000 nine-liter-equivalent cases of wine, or less than 50,000 nine-liter-equivalent 21 cases of distilled spirits may sell its product to 22 (1) the holder of a wholesale license issued under this chapter; 23 (2) the holder of a retail license issued under this chapter; 24 (3) the holder of a permit issued under this chapter; 25 (4) an entity in another state or country. 26 (b) The holder of a manufacturer license that annually produces in total 27 300,000 barrels or more of brewed beverages, 50,000 nine-liter-equivalent cases or 28 more of wine, or 50,000 nine-liter-equivalent cases or more of distilled spirits may sell 29 its product to 30 (1) the holder of a wholesale license issued under this chapter; 31 (2) an entity in another state or country.

01 (c) For purposes of calculating the volume that the holder of a manufacturer 02 license produces under this section, the volume of production must include all 03 production by 04 (1) the holder of the manufacturer's license; and 05 (2) an officer, director, agent, employee, or affiliate of the holder; in 06 this paragraph, "affiliate" means a person that directly or indirectly, through one or 07 more intermediaries, controls, or is controlled by, or is under common control with, a 08 corporation. 09 Sec. 04.09.060. Unlicensed manufacturing. (a) A person commits the crime 10 of unlicensed manufacturing if the person knowingly operates a 11 (1) brewery without a brewery manufacturer license; 12 (2) winery without a winery manufacturer license; or 13 (3) distillery without a distillery manufacturer license. 14 (b) Unlicensed manufacturing is a class A misdemeanor. 15 Sec. 04.09.070. Unlicensed manufacturing in a local option area. (a) A 16 person commits the crime of unlicensed manufacturing in a local option area if the 17 person knowingly operates in an area that has adopted a local option under 18 AS 04.11.491 a 19 (1) brewery without a brewery manufacturer license; 20 (2) winery without a winery manufacturer license; or 21 (3) distillery without a distillery manufacturer license. 22 (b) Unlicensed manufacturing in a local option area is a class C felony. 23 Sec. 04.09.080. Unauthorized manufacturer sale. (a) Except as provided in 24 AS 04.09.310 - 04.09.330, a person who holds a manufacturer license commits the 25 offense of unauthorized manufacturer sale if the person sells its product in violation of 26 AS 04.09.050. 27 (b) Unauthorized manufacturer sale is a violation. 28 Sec. 04.09.090. Definition. In AS 04.09.020 - 04.09.090, "packaging" means 29 the process of containing alcoholic beverages in bottles or other types of containers for 30 purpose of resale. 31 Article 3. Wholesale Licenses.

01 Sec. 04.09.100. General wholesale license. (a) A general wholesale license 02 authorizes the holder to sell alcoholic beverages at wholesale. The holder of a general 03 wholesale license may not sell to a person not licensed under this title, except as 04 provided in AS 04.21.040. 05 (b) The biennial general wholesale license fee is $2,000. 06 (c) In addition to the license fee under (b) of this section, the holder of a 07 general wholesale license shall pay an annual fee based on the total value of business 08 transacted by the wholesale business, including the excise tax imposed by 09 AS 43.60.010. If the total value of business transacted during the calendar year 10 including the excise tax imposed by AS 43.60.010 is 11 (1) less than or equal to $100,000, then the annual fee is $0; 12 (2) over $100,000 and not over $150,000, then the annual fee is $250; 13 (3) over $150,000 and not over $200,000, then the annual fee is $500; 14 (4) over $200,000 and not over $250,000, then the annual fee is $750; 15 (5) over $250,000 and not over $300,000, then the annual fee is 16 $1,000; 17 (6) over $300,000 and not over $350,000, then the annual fee is 18 $1,250; 19 (7) over $350,000 and not over $400,000, then the annual fee is 20 $1,500; 21 (8) over $400,000 and not over $500,000, then the annual fee is 22 $2,000; 23 (9) over $500,000 and not over $600,000, then the annual fee is 24 $2,500; 25 (10) over $600,000 and not over $700,000, then the annual fee is 26 $3,000; 27 (11) over $700,000 and not over $800,000, then the annual fee is 28 $3,500; 29 (12) over $800,000 and not over $1,000,000, then the annual fee is 30 $4,500; 31 (13) over $1,000,000, then the annual fee is $10,000.

01 Sec. 04.09.110. Limited wholesale brewed beverage and wine license. (a) A 02 limited wholesale brewed beverage and wine license authorizes the holder to sell 03 brewed beverages and wine at wholesale. The holder of a limited wholesale brewed 04 beverage and wine license may not sell to a person not licensed under this title, except 05 as provided in AS 04.21.040. 06 (b) The biennial limited wholesale brewed beverage and wine license fee is 07 $400. 08 (c) In addition to the license fee under (b) of this section, the holder of a 09 limited wholesale brewed beverage and wine license shall pay an annual fee based on 10 the total value of business transacted by the wholesale business, including the excise 11 tax imposed by AS 43.60.010. If the total value of business transacted during the 12 calendar year including the excise tax imposed by AS 43.60.010 is 13 (1) less than or equal to $20,000, then the annual fee is $0; 14 (2) over $20,000 and not over $50,000, then the annual fee is $150; 15 (3) over $50,000 and not over $100,000, then the annual fee is $500; 16 (4) over $100,000 and not over $150,000, then the annual fee is $750; 17 (5) over $150,000 and not over $200,000, then the annual fee is 18 $1,000; 19 (6) over $200,000 and not over $400,000, then the annual fee is 20 $2,000; 21 (7) over $400,000 and not over $600,000, then the annual fee is 22 $3,000; 23 (8) over $600,000 and not over $800,000, then the annual fee is 24 $4,000; 25 (9) over $800,000, then the annual fee is $10,000. 26 Sec. 04.09.120. Annual fee and affidavit. (a) Not later than February 28 of 27 each year the holder of a general wholesale license or a limited wholesale brewed 28 beverage and wine license shall pay the annual fee for the license for the preceding 29 calendar year, and file with the board an affidavit showing the 30 (1) total value of business transacted under the license by the 31 wholesale business, including the excise tax imposed by AS 43.60.010, during the

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

01 person knowingly sells in an area that has adopted a local option under AS 04.11.491 02 (1) distilled spirits at wholesale without a general wholesale license; or 03 (2) brewed beverages or wine at wholesale without a general wholesale 04 license or a limited wholesale brewed beverage and wine license. 05 (b) Unlicensed wholesale sale in a local option area is a class C felony. 06 Sec. 04.09.150. Failure to pay annual fee or file affidavit. (a) A person 07 commits the offense of failure to pay an annual wholesale fee or file a wholesale 08 affidavit if the person fails to pay the annual fee or file the affidavit as required under 09 AS 04.09.120. 10 (b) Failure to pay an annual wholesale fee or file a wholesale affidavit is a 11 violation. 12 Sec. 04.09.160. Failure to pay biennial fee or file declaration. (a) A person 13 commits the offense of failure to pay a biennial supplier fee or file a supplier 14 declaration if the person fails to pay the biennial supplier fee or file the declaration as 15 required under AS 04.09.130. 16 (b) Failure to pay a biennial supplier fee or file a supplier declaration is a 17 violation. 18 Article 4. Retail Licenses. 19 Sec. 04.09.200. Beverage dispensary license. (a) A beverage dispensary 20 license authorizes the holder to sell or serve on the licensed premises alcoholic 21 beverages for consumption only on the licensed premises. 22 (b) The biennial beverage dispensary license fee is $2,500. 23 (c) The holder of a beverage dispensary license may not maintain on the 24 licensed premises more than one room in which there is regularly maintained a fixed 25 counter or service bar that has plumbing connections to permanent plumbing at which 26 alcoholic beverages are sold or served to members of the public for consumption, 27 unless the license has a multiple fixed counter endorsement under AS 04.09.420. 28 (d) Except as provided under AS 04.09.610, 04.09.640, 04.09.670, and 29 AS 04.16.120(c), the holder of a beverage dispensary license who sells or serves 30 alcoholic beverages off the licensed premises or permits consumption off the premises 31 of alcoholic beverages sold or served on the premises commits the offense of

01 unauthorized beverage dispensary activity. 02 (e) Unauthorized beverage dispensary activity is a violation. 03 Sec. 04.09.210. Restaurant or eating place license. (a) A restaurant or eating 04 place license authorizes a restaurant or eating place to sell brewed beverages and wine 05 for consumption only on the licensed premises. 06 (b) The biennial restaurant or eating place license fee is $1,250. 07 (c) The board may issue or renew a license under this section only if 08 (1) the board determines that the licensed premises is a bona fide 09 restaurant as defined in AS 04.21.080(b); 10 (2) the licensee has, or the licensee has simultaneously applied for, a 11 restaurant endorsement; and 12 (3) the sale and service of food and alcoholic beverages and any other 13 business conducted on the licensed premises of the restaurant or eating place is under 14 the sole control of the licensee. 15 (d) The holder of a restaurant or eating place license shall ensure that gross 16 receipts from the sale of food for consumption on the licensed premises are not less 17 than the total of the gross receipts from the sale of alcoholic beverages for 18 consumption on the licensed premises in each calendar year. At the time the holder 19 submits an application for renewal of the license, the holder shall submit a statement 20 to the board certifying that the holder has met the requirement under this subsection 21 for the designated period of the license under AS 04.11.680. The board may renew a 22 restaurant or eating place license only if the licensee's statement provides evidence 23 satisfactory to the board that, during the designated period of the license under 24 AS 04.11.680, the gross receipts from the sale of food for consumption on the licensed 25 premises were not less than the total of the gross receipts from the sale of alcoholic 26 beverages for consumption on the licensed premises. 27 (e) The holder of a restaurant or eating place license may not provide 28 entertainment on or adjacent to the licensed premises before 3:00 p.m. or after 11:00 29 p.m. except with the approval of the director. The director may grant approval for 30 entertainment at other times only upon the written request of the licensee, and only for 31 a specific occasion. The director may not grant approval for entertainment on or

01 adjacent to the licensed premises of an individual licensee more than six times in a 02 calendar year. 03 (f) Except as provided under AS 04.09.620, 04.09.640, and AS 04.16.120(c), 04 the holder of a restaurant or eating place license commits the offense of failure to 05 comply with the terms of a restaurant or eating place license if the person sells brewed 06 beverages or wine in violation of (a) of this section or fails to comply with (e) of this 07 section. 08 (g) Failure to comply with the terms of a restaurant or eating place license is a 09 violation. 10 Sec. 04.09.220. Club license. (a) A club license authorizes a club or 11 organization to sell alcoholic beverages for consumption only on the licensed 12 premises. 13 (b) The biennial fee for a club license is $2,500. 14 (c) The board may issue a club license only to an organization operated for 15 social, recreational, benevolent, or athletic purposes and not for profit. The board may 16 issue a club license only to a club, fraternal organization, patriotic organization, or 17 social organization that has been 18 (1) chartered by a state or national organization for a period of 10 19 consecutive years before application for a license under this section; or 20 (2) chartered by a national organization that has maintained a chartered 21 club or organization within the state for a period of at least 20 years. 22 (d) Alcoholic beverages sold under a club license may be purchased only by 23 (1) members of the club and their families; 24 (2) widows or widowers of deceased members of the club who have 25 been accorded club privileges; and 26 (3) military personnel on active duty who are extended the privilege by 27 patriotic organizations. 28 (e) Alcoholic beverages may be purchased only in the portion of the club 29 rooms that are part of the licensed premises. 30 (f) Guests who enter the club premises on the invitation of a member and in 31 the company of the member may be served but not sold alcoholic beverages. A guest

01 shall leave the premises immediately upon the departure of the member who extended 02 the invitation to enter. 03 (g) Notwithstanding AS 04.16.049, access by persons under 21 years of age to 04 the 05 (1) licensed premises of a club is permitted when alcoholic beverages 06 are not present; and 07 (2) premises of a patriotic organization licensed as a club under this 08 section is permitted when alcoholic beverages are present, if the person possesses a 09 valid active duty military or armed forces identification card issued by the United 10 States Department of Defense or the United States Department of Homeland Security. 11 (h) The holder of a club license may not serve or sell alcoholic beverages for 12 use or consumption off the licensed premises of the club or organization, including use 13 or consumption by a club member or employee, except under a club caterer's permit. 14 (i) The holder of a club license may not 15 (1) solicit public patronage of the club premises, except as approved by 16 the board; 17 (2) distribute income from the sale of alcoholic beverages under the 18 license to a member, director, or officer; 19 (3) sell or serve alcoholic beverages in club rooms outside the portion 20 of the club rooms that are part of the licensed premises. 21 (j) In this section, "member" means a holder of a full year of paid membership 22 entitling the holder to all voting rights and privileges of membership under the 23 constitution or bylaws of the club or organization. 24 (k) The holder of a club license commits the offense of failure to comply with 25 the terms of a club license if the person sells alcoholic beverages in violation of (a) of 26 this section or violates (d), (e), (f), (h), or (i) of this section. 27 (l) Failure to comply with the terms of a club license is a violation. 28 Sec. 04.09.230. Package store license. (a) A package store license authorizes 29 the holder to operate a package store to store alcoholic beverages with federally 30 compliant labels, and to sell alcoholic beverages with federally compliant labels to a 31 person present on the licensed premises.

01 (b) The biennial package store license fee is $1,500. 02 (c) The licensed premises occupied by the holder of a package store license 03 may not be connected by a door, opening, or other means of passage intended for the 04 access of the general public to an adjacent retail business not licensed under this title 05 unless approved by the board. 06 (d) If the holder of a package store license also holds a beverage dispensary 07 license, the licensed premises of the package store are contained within or are adjacent 08 to the licensed premises of the beverage dispensary, and the only public entrance to 09 the package store is by a door or other means within the beverage dispensary, the 10 board shall determine whether additional entrances to the package store are necessary 11 for enforcement purposes, to meet health and fire safety standards, or for the 12 convenience of the public. 13 (e) The holder of a package store license may not 14 (1) offer alcoholic beverages for consumption on the licensed premises 15 or allow the consumption of alcoholic beverages on the licensed premises except as 16 authorized by a package store sampling endorsement issued under AS 04.09.490 or a 17 tasting event permit issued under AS 04.09.670; 18 (2) subdivide alcoholic beverages except as authorized by a package 19 store repackaging endorsement issued under AS 04.09.480; 20 (3) offer alcoholic beverages for sale or sell alcoholic beverages to a 21 person not present on the licensed premises who makes an order for shipment except 22 as authorized by a package store shipping endorsement under AS 04.09.460; or 23 (4) deliver alcoholic beverages to a person not present on the licensed 24 premises except as authorized by a package store delivery endorsement under 25 AS 04.09.470. 26 (f) The holder of a package store license commits the offense of failure to 27 comply with the terms of a package store license if the person stores or sells alcoholic 28 beverages in violation of (a) of this section or fails to comply with (c) or (e) of this 29 section. 30 (g) Failure to comply with the terms of a package store license is a violation. 31 Sec. 04.09.240. Pub license. (a) A pub license authorizes the holder to sell

01 brewed beverages and wine for consumption only at a designated premises located on 02 the campus of an accredited college or university. 03 (b) The biennial pub license fee is $1,250. 04 (c) The board may not 05 (1) issue more than one pub license for each accredited college or 06 university campus in the state; and 07 (2) issue or renew a pub license without the written approval of the 08 governing body of the accredited college or university. 09 (d) The board may designate two alternating premises for a pub license if 10 (1) both premises 11 (A) are located on the accredited college or university campus; 12 (B) are not located in contiguous rooms or adjacent buildings; 13 and 14 (C) are under the licensee's control; 15 (2) at any time, only one location is operating as a licensed premises 16 with specified operating hours approved by the board; and 17 (3) all alcoholic beverages are either removed from the alternate 18 premises or stored in a secure location that is not accessible to the general public 19 during times when the alternate premises is not operating as a licensed premises. 20 (e) The board may suspend or revoke a licensee's use of an alternate premises 21 under (d) of this section after providing written notice and an opportunity to be heard 22 to the licensee. 23 (f) In this section, "accredited college or university" means a college or 24 university accredited by the Northwest Commission on Colleges and Universities. 25 (g) The holder of a pub license commits the offense of failure to comply with 26 the terms of a pub license if the person sells brewed beverages or wine in violation of 27 (a) of this section. 28 (h) Failure to comply with the terms of a pub license is a violation. 29 Sec. 04.09.250. Theater license. (a) A theater license authorizes the holder of 30 a beverage dispensary license or a restaurant or eating place license to sell alcoholic 31 beverages for consumption on licensed premises at a specified theater site, except that

01 a restaurant or eating place licensee with a theater license may only sell brewed 02 beverages and wine. 03 (b) The biennial theater license fee is $1,250. 04 (c) The holder of a theater license may sell or serve alcoholic beverages only 05 in designated areas on the licensed premises, and only for one hour before the event 06 and during intermissions. 07 (d) The holder of a theater license may not sell, serve, or permit the 08 consumption of alcoholic beverages in the audience viewing area. 09 (e) The holder of a theater license shall post the license conspicuously in the 10 theater during times when alcoholic beverages are sold. 11 (f) The board may not approve an application for transfer of a theater license 12 to another location. 13 (g) The board may deny an application for renewal of a theater license if the 14 theater license was not used for at least one event during each calendar year of the 15 license period. 16 (h) In this section, "theater" means a location where events, including plays, 17 operas, orchestra concerts, readings, and similar activities as determined by the board 18 are presented by live performers on a stage. 19 (i) A person commits the offense of failure to comply with the terms of a 20 theater license if the person sells, serves, or permits the consumption of alcoholic 21 beverages except as permitted in this section or fails to post the license as required by 22 this section. 23 (j) Failure to comply with the terms of a theater license is a violation. 24 Sec. 04.09.260. Common carrier dispensary license. (a) A common carrier 25 dispensary license authorizes the holder to sell alcoholic beverages for consumption 26 aboard a boat or train licensed by a state or federal agency for passenger travel, or 27 aboard aircraft operated by an airline licensed by a state or federal agency for 28 passenger travel. 29 (b) Except as provided for airlines under (c) of this section, the biennial 30 common carrier dispensary license fee is $1,000 for each of the first 10 licenses a 31 common carrier holds and $100 for each additional license issued to the common

01 carrier after the first 10 licenses. 02 (c) The biennial fee for a common carrier dispensary license issued to an 03 airline is the fee specified under (b) of this section for each aircraft in which alcoholic 04 beverages are served or $2,000 for each community served by the airline. An airline 05 shall specify the fee applicable to the license at the time of the airline's application for 06 issuance or renewal of the license. 07 (d) Except for a common carrier that is an airline, a common carrier shall 08 obtain a license for each boat or train in which alcoholic beverages are served. After 09 obtaining an initial license for the first boat or train, the common carrier may obtain 10 additional licenses for additional boats or trains upon making a written request 11 identifying the boat or train in the manner prescribed by the board, and paying the 12 biennial fee for additional licensed premises as required by (b) of this section. 13 (e) The holder of a common carrier dispensary license who exceeds the 14 authority granted in (a) of this section commits the crime of unauthorized common 15 carrier dispensary activity. 16 (f) Unauthorized common carrier dispensary activity is a class A 17 misdemeanor. 18 (g) The holder of a common carrier dispensary license who fails to comply 19 with (b) - (d) of this section commits the offense of common carrier dispensary 20 noncompliance. 21 (h) Common carrier dispensary noncompliance is a violation and is punishable 22 by a fine of $500 for each boat, train, or aircraft not in compliance with this section. 23 Sec. 04.09.270. Sporting event license. (a) A sporting event license authorizes 24 the holder to sell brewed beverages and wine at a sporting event site during and one 25 hour before and after a sporting event that is not a school event, for consumption on 26 designated areas at the sporting event site. 27 (b) The biennial sporting event license fee is $1,250. 28 (c) In this section, "sporting event site" includes a location where baseball, 29 hockey, rugby, soccer, or football games, car races, dog sled racing events, or curling 30 matches are regularly held during a season. 31 (d) The holder of a sporting event license who sells brewed beverages or wine

01 off the licensed premises or during hours not authorized under (a) of this section or 02 who permits consumption off the premises of brewed beverages or wine sold on the 03 premises commits the offense of unauthorized sporting event activity. 04 (e) Unauthorized sporting event activity is a violation. 05 (f) The holder of a recreational site license issued under former AS 04.11.210 06 offering, on the effective date of this section, on the recreational site's licensed 07 premises brewed beverages and wine for sale to the public for consumption on the 08 premises may offer brewed beverages and wine for sale to the public for consumption 09 on the premises for a period ending on December 31, 2025, for a license renewing on 10 an odd-numbered year, or December 31, 2026, for a license renewing on an even- 11 numbered year. 12 Sec. 04.09.280. Outdoor recreation lodge license. (a) An outdoor recreation 13 lodge license authorizes the holder to sell alcoholic beverages to a registered overnight 14 guest or off-duty staff of the lodge for consumption on the licensed premises or in 15 conjunction with purchased outdoor recreation activities provided by the licensee. 16 (b) The biennial outdoor recreation lodge license fee is $2,500. 17 (c) The board may not grant an application for transfer of an outdoor 18 recreation lodge license to another location. 19 (d) In this section, "outdoor recreation lodge" means a licensed business that 20 provides overnight accommodations and meals, is primarily involved in offering 21 opportunities for persons to engage in outdoor recreation activities, and has a 22 minimum of two guest rooms. 23 (e) The holder of an outdoor recreation lodge license who sells alcoholic 24 beverages in violation of the authority granted under (a) of this section commits the 25 offense of unauthorized outdoor recreation lodge activity. 26 (f) Unauthorized outdoor recreation lodge activity is a violation. 27 Sec. 04.09.290. Golf course license. (a) A golf course license authorizes the 28 holder to sell brewed beverages and wine for consumption on the licensed premises. 29 (b) The biennial golf course license fee is $1,250. 30 (c) An application for a golf course license must include 31 (1) a drawing of the golf course with an annotated illustration and

01 description of the portions of the course that are intended to be licensed premises; and 02 (2) a sample food menu. 03 (d) The board may not approve an application for transfer of a golf course 04 license to another location. 05 (e) The holder of a golf course license shall make food similar to that listed in 06 the sample menu available during times when brewed beverages and wine are sold, 07 served, and consumed on the licensed premises. 08 (f) The holder of a golf course license may not allow a person other than the 09 holder or an agent or employee of the holder, in the regular course of employment, to 10 bring alcoholic beverages onto the licensed premises or other portions of the course 11 for consumption. 12 (g) In this section, "licensed premises" includes the golf course, a driving 13 range, a club house, and other buildings located on the course, and a vending cart 14 carrying beverages or food to, from, or on the course, and does not include the parking 15 lot. 16 (h) The holder of a golf course license commits the offense of failure to 17 comply with the terms of a golf course license if the person sells brewed beverages or 18 wine in violation of this section or violates (e) or (f) of this section. 19 (i) Failure to comply with the terms of a golf course license is a violation. 20 Sec. 04.09.300. Destination resort license. (a) A destination resort license 21 authorizes the holder to sell alcoholic beverages at a destination resort for 22 consumption on the licensed premises in conjunction with the visitor activities 23 provided by the licensee to cruise ship passengers and staff and other visitors while the 24 cruise ship is in port at the resort. 25 (b) The biennial destination resort license fee is $2,500. 26 (c) The board may not approve an application for transfer of a destination 27 resort license to another location. 28 (d) In this section, "destination resort" means a business that owns a site of at 29 least 20 acres that is used principally as a destination for cruise ships and other vessels 30 that carry a minimum of 50 passengers and that does not provide overnight lodging on 31 its premises for visitors.

01 (e) The holder of a destination resort license commits the offense of failure to 02 comply with a destination resort license if the person sells alcoholic beverages in 03 violation of (a) of this section. 04 (f) Failure to comply with the terms of a destination resort license is a 05 violation. 06 Sec. 04.09.310. Brewery retail license. (a) A brewery retail license authorizes 07 the holder to store, sell, or serve on the licensed premises brewed beverages for 08 consumption on and off the premises. 09 (b) The biennial brewery retail license fee is $1,250. 10 (c) The board may issue a brewery retail license only to the holder of a 11 brewery manufacturer license under AS 04.09.020. The brewery retail licensed 12 premises may be all or part of the brewery manufacturer licensed premises, or the 13 brewery retail licensed premises may be at a single different site that is adjacent to the 14 brewery manufacturer licensed premises. 15 (d) Each day, the holder of a brewery retail license may sell, to a person on the 16 licensed premises for consumption on the licensed premises, not more than 17 (1) 36 ounces of the holder's beer; or 18 (2) 18 ounces of the holder's sake. 19 (e) The holder of a brewery retail license may not 20 (1) allow live entertainment, televisions, pool tables, dart games, 21 dancing, electronic or other games, game tables, or other recreational or gaming 22 opportunities on or adjacent to the premises where the consumption occurs; 23 (2) provide seats at the counter or bar where the brewed beverages are 24 served; 25 (3) open the room where the consumption occurs before 9:00 a.m.; or 26 (4) serve brewed beverages after 8:00 p.m. 27 (f) Each day, the holder of a brewery retail license is authorized to sell, to a 28 person on the licensed premises for consumption off the licensed premises, not more 29 than 30 (1) 5.167 gallons of the holder's beer; or 31 (2) nine liters of the holder's sake.

01 (g) Except as provided under (h) of this section, after the fourth renewal of a 02 brewery retail license, the holder of the license may sell to a buyer not listed in 03 AS 04.09.050 not more than 20 percent of the holder's total volume of brewed 04 beverages for the designated period of the license under AS 04.11.680. 05 (h) The requirements of (g) of this section do not apply to 06 (1) the holder of a brewery retail license under this section who held a 07 brewery license issued under former AS 04.11.130 on the day before the effective date 08 of this section; or 09 (2) any person or entity whose completed application is pending on 10 December 31, 2018, 11 (A) under applicable federal law for authority to manufacture 12 and sell products under former AS 04.11.130; and 13 (B) for a brewery license under former AS 04.11.130. 14 (i) The holder of a brewery retail license commits the offense of failure to 15 comply with the terms of a brewery retail license if the person stores, sells, or serves 16 brewed beverages in violation of (a) of this section or violates (d), (e), (f), or (g) of 17 this section. 18 (j) Failure to comply with the terms of a brewery retail license is a violation. 19 Sec. 04.09.320. Winery retail license. (a) A winery retail license authorizes 20 the holder to store, sell, or serve on the licensed premises wine for consumption on 21 and off the premises. 22 (b) The biennial winery retail license fee is $1,250. 23 (c) The board may issue a winery retail license only to the holder of a winery 24 manufacturer license issued under AS 04.09.030. The winery retail licensed premises 25 may be all or part of the winery manufacturer licensed premises, or the winery retail 26 licensed premises may be at a single different site that is adjacent to the winery 27 manufacturer licensed premises. 28 (d) Each day, the holder of a winery retail license may sell, to a person on the 29 licensed premises for consumption on the licensed premises, not more than 30 (1) 18 ounces of the holder's wine, mead, or cider containing 8.5 31 percent or more alcohol by volume; or

01 (2) 36 ounces of the holder's cider containing less than 8.5 percent 02 alcohol by volume. 03 (e) The holder of a winery retail license may not 04 (1) allow live entertainment, televisions, pool tables, dart games, 05 dancing, electronic or other games, game tables, or other recreational or gaming 06 opportunities on or adjacent to the premises where the consumption occurs; 07 (2) provide seats at the counter or bar where the wine is served; 08 (3) open the room where the consumption occurs before 9:00 a.m.; or 09 (4) serve wine after 8:00 p.m. 10 (f) Each day, the holder of a winery retail license is authorized to sell, to a 11 person on the licensed premises for consumption off the licensed premises, not more 12 than 13 (1) nine liters of the holder's wine, mead, or cider containing 8.5 14 percent or more alcohol by volume; or 15 (2) 5.167 gallons of the holder's cider containing less than 8.5 percent 16 alcohol by volume. 17 (g) Except as provided under (h) of this section, after the fourth renewal of a 18 winery retail license, the holder of the license may sell to a buyer not listed in 19 AS 04.09.050 not more than 20 percent of the holder's total volume of wine for the 20 designated period of the license under AS 04.11.680. 21 (h) The requirements of (g) of this section do not apply to 22 (1) the holder of a winery retail license under this section who held a 23 winery license issued under former AS 04.11.140 on the day before the effective date 24 of this section; or 25 (2) any person or entity whose completed application is pending on 26 December 31, 2018, 27 (A) under applicable federal law for authority to manufacture 28 and sell products under former AS 04.11.140; and 29 (B) for a winery license under former AS 04.11.140. 30 (i) The holder of a winery retail license commits the offense of failure to 31 comply with the terms of a winery retail license if the person stores, sells, or serves

01 wine in violation of (a) of this section or violates (d), (e), (f), or (g) of this section. 02 (j) Failure to comply with the terms of a winery retail license is a violation. 03 (k) The holder of a winery license issued under former AS 04.11.140 on the 04 day before the effective date of sec. 9 of this Act that provided seating at the counter 05 or bar where the wine is served on the winery's licensed premises may provide seating 06 at the counter or bar where the wine is served for a period ending on January 1, 2021, 07 for a license that is subject to renewal on an odd year and January 1, 2022, for a 08 license that is subject to renewal on an even year. 09 Sec. 04.09.330. Distillery retail license. (a) A distillery retail license 10 authorizes the holder to store, sell, or serve on the licensed premises distilled spirits 11 for consumption on and off the premises. 12 (b) The biennial distillery retail license fee is $1,250. 13 (c) The board may issue a distillery retail license only to the holder of a 14 distillery manufacturer license under AS 04.09.040. The distillery retail licensed 15 premises may be all or part of the distillery manufacturer licensed premises, or the 16 distillery retail licensed premises may be at a single different site that is adjacent to the 17 distillery manufacturer licensed premises. 18 (d) The holder of a distillery retail license may sell not more than three ounces 19 of the holder's distilled spirits each day to a person on the licensed premises for 20 consumption on the licensed premises. 21 (e) The holder of a distillery retail license may not 22 (1) allow live entertainment, televisions, pool tables, dart games, 23 dancing, electronic or other games, game tables, or other recreational or gaming 24 opportunities on or adjacent to the premises where the consumption occurs; 25 (2) provide seats at the counter or bar where the distilled spirits are 26 served; 27 (3) open the room where the consumption occurs before 9:00 a.m.; or 28 (4) serve distilled spirits after 8:00 p.m. 29 (f) The holder of a distillery retail license is authorized to sell not more than 30 3.75 liters of the holder's distilled spirits each day to a person on the licensed premises 31 for consumption off the licensed premises.

01 (g) Except as provided under (h) of this section, after the fourth renewal of a 02 distillery retail license, the holder of the license may sell to a person not listed in 03 AS 04.09.050 not more than 20 percent of the holder's total volume of distilled spirits 04 for the designated period of the license under AS 04.11.680. 05 (h) The requirements of (g) of this section do not apply to 06 (1) the holder of a distillery retail license under this section who held a 07 distillery license issued under former AS 04.11.170 on the day before the effective 08 date of this section; or 09 (2) any person or entity whose completed application is pending on 10 December 31, 2018, 11 (A) under applicable federal law for authority to manufacture 12 and sell products under former AS 04.11.170; and 13 (B) for a distillery license under former AS 04.11.170. 14 (i) The holder of a distillery retail license commits the offense of failure to 15 comply with the terms of a distillery retail license if the person stores, sells, or serves 16 distilled spirits in violation of (a) of this section or violates (d), (e), (f), or (g) of this 17 section. 18 (j) Failure to comply with the terms of a distillery retail license is a violation. 19 Sec. 04.09.340. Beverage dispensary tourism license. (a) A beverage 20 dispensary tourism license authorizes the holder to sell or serve on the licensed 21 premises alcoholic beverages for consumption only on the licensed premises. 22 (b) The biennial beverage dispensary tourism license fee is $2,500. 23 (c) The board may issue a beverage dispensary tourism license or approve an 24 application for the transfer of ownership of a beverage dispensary tourism license if it 25 appears that issuance or transfer will encourage the tourism trade by promoting the 26 construction or improvement of 27 (1) a hotel, motel, resort, or similar business relating to the tourist trade 28 with a dining facility or having kitchen facilities in a majority of its rental rooms and 29 at least a minimum number of rental rooms required according to the population of the 30 established village, incorporated city, unified municipality, or population area 31 established under AS 04.11.400(a) in which the facility will be located, as follows:

01 (A) 10 rental rooms if the population is less than 1,501; 02 (B) 20 rental rooms if the population is 1,501 - 2,500; 03 (C) 25 rental rooms if the population is 2,501 - 5,000; 04 (D) 30 rental rooms if the population is 5,001 - 15,000; 05 (E) 35 rental rooms if the population is 15,001 - 25,000; 06 (F) 40 rental rooms if the population is 25,001 - 50,000; and 07 (G) 50 rental rooms if the population is greater than 50,000; or 08 (2) an airport terminal. 09 (d) The holder of a beverage dispensary tourism license may not maintain on 10 the licensed premises more than one room in which there is regularly maintained a 11 fixed counter or service bar that has plumbing connections to permanent plumbing at 12 which alcoholic beverages are sold or served to members of the public for 13 consumption unless the license has a multiple fixed counter endorsement under 14 AS 04.09.420, a hotel or motel endorsement under AS 04.09.430, or a large resort 15 endorsement under AS 04.09.440. 16 (e) Except as provided under AS 04.09.610, 04.09.640, 04.09.670, and 17 AS 04.16.120(c), the holder of a beverage dispensary tourism license who sells or 18 serves alcoholic beverages off the licensed premises or permits consumption off the 19 premises of alcoholic beverages sold or served on the premises commits the offense of 20 unauthorized beverage dispensary tourism activity. 21 (f) Unauthorized beverage dispensary tourism activity is a violation. 22 Sec. 04.09.350. Seasonal restaurant or eating place tourism license. (a) A 23 seasonal restaurant or eating place tourism license authorizes a restaurant or eating 24 place to sell brewed beverages and wine for consumption only on the licensed 25 premises for a period not to exceed six months in each calendar year. 26 (b) The biennial seasonal restaurant or eating place tourism license fee is 27 $1,250. 28 (c) The board may issue or renew a license under this section only if 29 (1) the board determines that the licensed premises is a bona fide 30 restaurant as defined in AS 04.21.080(b); 31 (2) the licensee has, or the licensee has simultaneously applied for, a

01 restaurant endorsement; and 02 (3) the sale and service of food and alcoholic beverages and any other 03 business conducted on the licensed premises of the restaurant or eating place is under 04 the sole control of the licensee. 05 (d) The board may issue a license under this section only in a municipality or 06 established village that 07 (1) has a population of 20,000 or less; and 08 (2) includes a community that receives more than 4,000 visitors a year, 09 as determined by the Department of Commerce, Community, and Economic 10 Development. 11 (e) The board may issue a license or approve an application for the transfer of 12 ownership of a license under this section if it appears that issuance or transfer will 13 encourage the tourism trade. 14 (f) The holder of a seasonal restaurant or eating place tourism license shall 15 ensure that gross receipts from the sale of food for consumption on the licensed 16 premises are not less than the total of the gross receipts from the sale of alcoholic 17 beverages for consumption on the licensed premises in each calendar year. At the time 18 the holder submits an application for renewal of the license, the holder shall submit a 19 statement to the board certifying that the holder has met the requirement under this 20 subsection for the designated period of the license under AS 04.11.680. The board 21 may renew a seasonal restaurant or eating place tourism license only if the licensee 22 provides evidence satisfactory to the board that, during the designated period of the 23 license under AS 04.11.680, the gross receipts from the sale of food for consumption 24 on the licensed premises were not less than the total of the gross receipts from the sale 25 of alcoholic beverages for consumption on the licensed premises. 26 (g) The board shall adopt a regulation establishing a formula to limit the 27 number of seasonal restaurant or eating place tourism licenses. 28 (h) The holder of a seasonal restaurant or eating place tourism license may not 29 provide entertainment on or adjacent to the licensed premises before 3:00 p.m. or after 30 11:00 p.m. except with the approval of the director. The director may grant approval 31 for entertainment at other times only upon the written request of the licensee, and only

01 for a specific occasion. The director may not grant approval for entertainment on or 02 adjacent to the licensed premises of an individual licensee more than three times in a 03 calendar year. 04 (i) Except as provided under AS 04.09.620, 04.09.640, and AS 04.16.120(c), 05 the holder of a seasonal restaurant or eating place tourism license commits the offense 06 of failure to comply with the terms of a seasonal restaurant or eating place tourism 07 license if the person sells brewed beverages or wine in violation of (a) of this section 08 or fails to comply with (f) or (h) of this section. 09 (j) Failure to comply with the terms of a seasonal restaurant or eating place 10 tourism license is a violation. 11 Sec. 04.09.360. Winery direct shipment license. (a) A winery direct shipment 12 license authorizes the holder of a winery retail license issued under AS 04.09.320, or 13 the holder of a winery license issued in another state, to sell the holder's wine in 14 response to an order for shipment to a person, for personal use only and not for resale, 15 who is located in the state. A winery direct shipment license may not be transferred to 16 another person or another location. 17 (b) The biennial fee for a winery direct shipment license is $200. 18 (c) An applicant for issuance or renewal of a winery direct shipment license 19 shall 20 (1) submit an application on a form prescribed by the board; 21 (2) consent to the jurisdiction of the board, the Department of 22 Revenue, and any other state agency or state court concerning enforcement of this 23 title; and 24 (3) if the applicant is the holder of a license or permit authorizing the 25 holder to manufacture and sell wine to the public issued in another state, provide to the 26 board a copy of the holder's license or permit issued 27 (A) in the state; and 28 (B) by the Alcohol and Tobacco Tax and Trade Bureau. 29 (d) All wine shipped to a purchaser in the state by the holder of a winery direct 30 shipment license is subject to the state excise tax. 31 (e) The holder of a winery direct shipment license may not

01 (1) ship wine to an address with a zip code located in an area that has 02 adopted a local option under AS 04.11.491; 03 (2) sell more than the equivalent of six nine-liter cases of wine to a 04 purchaser in one transaction, or more than the equivalent of 12 nine-liter cases of wine 05 to a purchaser in a calendar year; and 06 (3) ship wine using a common carrier who is not approved by the 07 board to ship alcoholic beverages to persons in the state under AS 04.16.125(b). 08 (f) Before shipping an order under this section, the holder of a winery direct 09 shipment license shall 10 (1) verify that the person submitting the order is at least 21 years of 11 age, using an age verification service or other method, and that the named recipient of 12 the shipment, if not the same person as the person submitting the order, is at least 21 13 years of age; 14 (2) determine that the order will not exceed the limits of (e)(2) of this 15 section; 16 (3) provide written or electronic information to the person submitting 17 the order on fetal alcohol syndrome and fetal alcohol effects resulting from a woman's 18 consumption of alcohol during pregnancy; and 19 (4) label the shipping container as containing alcoholic beverages and 20 requiring a signature by a person who is at least 21 years of age upon delivery. 21 (g) The holder of a winery direct shipment license shall 22 (1) retain records of sales made under this license for at least two 23 years; and 24 (2) make records of sales available for inspection and audit by the 25 board and the Department of Revenue. 26 (h) The board shall compile a list that is available for public inspection of zip 27 codes that are located within a local option area and notify the holder of a winery 28 direct shipment license of any change to the list. 29 (i) The holder of a winery direct shipment license commits the offense of 30 failure to comply with the terms of a winery direct shipment license if the person fails 31 to comply with (e) - (g) of this section.

01 (j) Failure to comply with the terms of a winery direct shipment license is a 02 violation. 03 Sec. 04.09.370. Unlicensed retail sale. (a) A person commits the crime of 04 unlicensed retail sale if the person knowingly operates without the appropriate license 05 a retail operation that requires a license under AS 04.09.200 - 04.09.360. 06 (b) Unlicensed retail sale is a class A misdemeanor and is punishable under 07 AS 12.55. 08 Sec. 04.09.380. Unlicensed retail sale in a local option area. (a) A person 09 commits the crime of unlicensed retail sale in a local option area if the person 10 knowingly operates without a license in an area that has adopted a local option under 11 AS 04.11.491 a retail operation that requires a license under AS 04.09.200 - 12 04.09.380. 13 (b) Unlicensed retail sale in a local option area is a class C felony and is 14 punishable under AS 12.55. 15 Article 5. Endorsements. 16 Sec. 04.09.400. Types of endorsements. (a) An endorsement expands the 17 boundaries of a licensed premises or the authorized activities of a licensed business. 18 (b) Only the board may issue an endorsement. The board may issue only the 19 endorsements authorized in AS 04.09.400 - 04.09.520. 20 (c) An endorsement is valid only in conjunction with a license. An 21 endorsement may only be transferred to another person if the license for which the 22 endorsement was issued is also transferred to that person. An endorsement expires if 23 the licensed premises are relocated, the license expires, or the license is revoked. 24 (d) Except as provided in (c) of this section, an endorsement is valid for the 25 duration of the license as designated in AS 04.11.680. The holder of the endorsement 26 shall renew the endorsement biennially. 27 (e) An application for an endorsement under AS 04.09.400 - 04.09.520 must 28 (1) be made in writing on a form prescribed by the board; and 29 (2) demonstrate that the holder of the license has authority over and 30 will exercise control over conduct of the business in all areas of the licensed premises, 31 including premises newly licensed by the endorsement.

01 Sec. 04.09.410. Manufacturer sampling endorsement. (a) A manufacturer 02 sampling endorsement authorizes the holder of a brewery manufacturer license, 03 winery manufacturer license, or distillery manufacturer license to offer for 04 consumption on the licensed premises at no charge a small sample of an alcoholic 05 beverage produced by the manufacturer. 06 (b) The biennial fee for a manufacturer sampling endorsement is $200. 07 (c) A person serving a sample of an alcoholic beverage under this section must 08 have a current alcohol server education card issued under AS 04.21.025(c). Only the 09 license holder or an agent or employee of the license holder may serve a sample. 10 (d) The holder of a manufacturer sampling endorsement may serve a total 11 volume of samples to a person on a licensed premises each day that does not exceed 12 (1) for the holder of a brewery manufacturer license, 13 (A) 12 ounces of beer; or 14 (B) six ounces of sake; 15 (2) for the holder of a winery manufacturer license, 16 (A) six ounces of wine, mead, or cider containing 8.5 percent 17 or more alcohol by volume; or 18 (B) 12 ounces of cider containing less than 8.5 percent alcohol 19 by volume; 20 (3) for the holder of a distillery manufacturer license, 1.5 ounces of 21 distilled spirits. 22 (e) The holder of a manufacturer sampling endorsement may not publicly 23 advertise, including through newsprint, radio, or television, sampling activities 24 conducted under the endorsement. However, the holder of a manufacturer sampling 25 endorsement may notify existing customers of sampling activities, including by 26 electronic means. 27 (f) A person who offers a sample of an alcoholic beverage for consumption on 28 the licensed premises of a brewery, winery, or distillery without an endorsement under 29 this section commits the offense of unendorsed sampling. 30 (g) Unendorsed sampling is a violation and is punishable by a fine of $500. 31 (h) The holder of a manufacturer sampling endorsement who fails to comply

01 with the requirements of (c) - (e) of this section commits the offense of failure to 02 comply with the terms of a manufacturer sampling endorsement. 03 (i) Failure to comply with the terms of a manufacturer sampling endorsement 04 is a violation. 05 Sec. 04.09.420. Multiple fixed counter endorsement. (a) A multiple fixed 06 counter endorsement authorizes the holder of a beverage dispensary license or a 07 beverage dispensary tourism license to sell or serve alcoholic beverages on the 08 licensed premises from multiple fixed counters. 09 (b) The biennial fee for a multiple fixed counter endorsement is $200. 10 (c) In addition to the fee under (b) of this section, the initial application fee for 11 each fixed counter covered under the endorsement is $1,250. 12 (d) An initial application for a multiple fixed counter endorsement must 13 include an annotated drawing of the location of each fixed counter in the licensed 14 premises. 15 (e) A fixed counter at which alcoholic beverages are sold or served to the 16 public for consumption covered under a multiple fixed counter endorsement must be a 17 regularly maintained fixed counter or service bar that has plumbing connections to 18 permanent plumbing. Multiple fixed counters must be located in the same building 19 under the same contiguous licensed premises as set out in regulation, except as 20 provided for the holder of a hotel or motel endorsement under AS 04.09.430 or a large 21 resort endorsement under AS 04.09.440. The board shall adopt regulations to 22 implement this subsection. 23 (f) The holder of a beverage dispensary license or a beverage dispensary 24 tourism license who maintains multiple fixed counters without an endorsement under 25 this section commits the offense of unendorsed service at multiple fixed counters. 26 (g) The holder of a multiple fixed counter endorsement who fails to comply 27 with the requirements of (d) and (e) of this section commits the offense of multiple 28 fixed counter endorsement noncompliance. 29 (h) Unendorsed service at multiple fixed counters is a violation and is 30 punishable by a fine of $500. 31 (i) Multiple fixed counter endorsement noncompliance is a violation.

01 Sec. 04.09.430. Hotel or motel endorsement. (a) A hotel or motel 02 endorsement authorizes the holder of a beverage dispensary license or a beverage 03 dispensary tourism license that is a hotel, motel, resort, or similar business premises 04 that caters to the traveling public as a substantial part of its business to sell or serve 05 alcoholic beverages on the licensed premises, including in the dining room, banquet 06 room, and other public areas approved by the board, and in guest rooms. 07 (b) The biennial fee for a hotel or motel endorsement is $200. 08 (c) The holder of a beverage dispensary license or a beverage dispensary 09 tourism license that is a hotel, motel, resort, or similar business premises that caters to 10 the traveling public as a substantial part of its business may receive a hotel or motel 11 endorsement in order to qualify for a multiple fixed counter endorsement under 12 AS 04.09.420 to sell or serve alcoholic beverages at a secondary location located in a 13 building different than the licensed premises for the beverage dispensary license or a 14 beverage dispensary tourism license if the different building 15 (1) is located on the same property as, adjacent to, or attached to the 16 originally licensed premises; 17 (2) principally caters to guests of the hotel or motel; and 18 (3) principally encourages the tourism trade at the hotel or motel. 19 (d) The holder of a hotel or motel endorsement may stock alcoholic beverages 20 in guest rooms, for sale and consumption only in the guest room. Alcoholic beverages 21 stocked under this subsection shall be stocked by an employee who is 21 years of age 22 or older, may not be supplied or resupplied during hours that the sale of alcoholic 23 beverages is prohibited as provided under AS 04.16.010(a) and (d), and shall be stored 24 in a unit using a key or combination lock system within the guest room. A key lock 25 system shall be designed to prevent the removal of the key unless the unit is locked. 26 Except for the licensee, or an agent or employee of the licensee, a key or combination 27 enabling a person to obtain alcoholic beverages stocked in a guest room may only be 28 provided to a guest who occupies the room and who is 21 years of age or older. 29 (e) The holder of a hotel or motel endorsement shall exercise control over 30 conduct of the business in all areas of the licensed premises. 31 (f) The holder of a beverage dispensary license or a beverage dispensary

01 tourism license who engages in activity under this section without an endorsement 02 under this section commits the offense of unendorsed hotel or motel service. 03 (g) The holder of a hotel or motel endorsement who fails to comply with the 04 requirements of this section commits the offense of hotel or motel endorsement 05 noncompliance. 06 (h) Unendorsed hotel or motel service is a violation and is punishable by a fine 07 of $500. 08 (i) Hotel or motel endorsement noncompliance is a violation. 09 Sec. 04.09.440. Large resort endorsement. (a) A large resort endorsement 10 authorizes the holder of a beverage dispensary license or a beverage dispensary 11 tourism license that is a large resort to sell or serve alcoholic beverages from multiple 12 locations on the resort property including in the dining room, banquet room, and other 13 public areas approved by the board, and in guest rooms, regardless of whether the 14 locations are in the same building or under the same roof. 15 (b) The biennial fee for a large resort endorsement is $200. 16 (c) The holder of a large resort endorsement may apply for a multiple fixed 17 counter endorsement under AS 04.09.420 to sell or serve alcoholic beverages from 18 multiple locations within the large resort's property. The locations do not need to be 19 located in the same building or on the same parcel, but must be within the boundary of 20 the large resort, as that term is defined in (h) of this section. 21 (d) The holder of a large resort endorsement may sell or serve alcoholic 22 beverages only from locations on the site of the large resort. 23 (e) For federal income tax purposes, the profit and loss from the licensed 24 business conducted at locations on the resort under a large resort endorsement, other 25 than guest rooms, must be combined or consolidated with the profit and loss from the 26 licensed business conducted under the multiple fixed counter endorsement. 27 (f) The holder of a large resort endorsement shall exercise control over 28 conduct of the business in all areas of the licensed premises. 29 (g) A holder of a beverage dispensary license with a large resort endorsement 30 may stock alcoholic beverages in guest rooms, for sale and consumption only in the 31 guest room. Alcoholic beverages stocked under this subsection must be stocked by an

01 employee who is 21 years of age or older, may not be supplied or resupplied during 02 hours that the sale of alcoholic beverages is prohibited as provided under 03 AS 04.16.010(a) and (d), and must be stored in a unit using a key or combination lock 04 system within the guest room. A key lock system must be designed to prevent the 05 removal of the key unless the unit is locked. Except for the licensee, or an agent or 06 employee of the licensee, a key or combination enabling a person to obtain alcoholic 07 beverages stocked in a guest room may be provided only to a guest who occupies the 08 room and who is 21 years of age or older. 09 (h) In this section, "large resort" means a resort that offers both outdoor 10 recreational activities and overnight lodging to the public and is located on a site 11 consisting of at least 10 contiguous acres containing one or more parcels of real 12 property owned by the licensee, leased by the licensee, or a combination of parcels 13 owned by the licensee and leased by the licensee. 14 (i) The holder of a beverage dispensary license or a beverage dispensary 15 tourism license who engages in activity under this section without an endorsement 16 under this section commits the offense of unendorsed large resort service. 17 (j) The holder of a large resort endorsement who fails to comply with the 18 requirements of (c) - (g) of this section commits the offense of large resort 19 endorsement noncompliance. 20 (k) Unendorsed large resort service is a violation and is punishable by a fine of 21 $500. 22 (l) Large resort endorsement noncompliance is a violation. 23 Sec. 04.09.450. Restaurant endorsement. (a) A restaurant endorsement 24 authorizes the holder of a restaurant or eating place license, beverage dispensary 25 license, golf course license, sporting event license, club license, outdoor recreation 26 lodge license, destination resort license, beverage dispensary tourism license, or 27 seasonal restaurant or eating place tourism license to allow a person 28 (1) under 21 years of age access as provided in (e) of this section to the 29 premises of a bona fide restaurant on the licensed premises; and 30 (2) to enter or remain on the licensed premises to consume food or 31 nonalcoholic beverages as authorized under AS 04.16.010(c)(5).

01 (b) The biennial fee for a restaurant endorsement is $200. 02 (c) An application for a restaurant endorsement must specify the establishment 03 or portion of the establishment that constitutes a bona fide restaurant. 04 (d) The board may issue an endorsement under this section only if the board 05 finds 06 (1) that the establishment or portion of the establishment for which the 07 endorsement is requested is a bona fide restaurant; 08 (2) there is supervision on the premises adequate to reasonably ensure 09 that a person under 21 years of age will not obtain alcoholic beverages; and 10 (3) that it is unlikely that persons under 21 years of age not employed 11 on the premises will enter and remain on the premises of the bona fide restaurant for 12 purposes other than dining. 13 (e) The board may authorize the holder of a license with a restaurant 14 endorsement 15 (1) to allow a person who is at least 16 years of age but under 21 years 16 of age to enter and remain on the licensed premises for dining only; 17 (2) to allow a person who is under 16 years of age to enter and remain 18 on the licensed premises for dining only if 19 (A) the person is accompanied by a person who is 21 years of 20 age or older; and 21 (B) the parent or guardian of the person consents to the person 22 being on the licensed premises; and 23 (3) subject to AS 04.16.049, to employ or permit the employment of a 24 person who is at least 16 years of age but under 21 years of age on the premises of the 25 bona fide restaurant if the employer provides adequate supervision to ensure that the 26 person does not obtain alcoholic beverages. 27 (f) The holder of a license who engages in activity under this section without 28 an endorsement under this section commits the offense of unendorsed restaurant 29 service. 30 (g) The holder of a restaurant endorsement who engages in activity not 31 authorized by the board under (e) of this section or fails to comply with the

01 requirements of (e) of this section commits the offense of restaurant endorsement 02 noncompliance. 03 (h) Unendorsed restaurant service is a violation and is punishable by a fine of 04 $500. 05 (i) Restaurant endorsement noncompliance is a violation. 06 Sec. 04.09.460. Package store shipping endorsement. (a) A package store 07 shipping endorsement authorizes the holder of a package store license to sell alcoholic 08 beverages to a person who makes an order to that licensee for shipment. 09 (b) The biennial fee for a package store shipping endorsement is $200. 10 (c) An endorsement holder may ship alcoholic beverages only to the purchaser 11 and may ship alcoholic beverages only in response to an order. The endorsement 12 holder may not, in response to an order, ship alcohol to a purchaser at an address other 13 than the address where the purchaser resides or, if the purchaser resides in a 14 municipality or established village that has adopted a local option under 15 AS 04.11.491(a)(1), (2), or (3) or (b)(1) or (2) for which a community delivery site has 16 been designated under AS 04.11.491(f), to an address other than that community 17 delivery site except as provided by AS 04.11.491(f)(1) and (2). 18 (d) An endorsement holder shall provide written or electronic information on 19 fetal alcohol syndrome and fetal alcohol effects resulting from a woman's 20 consumption of alcohol during pregnancy to the purchaser in response to an order. 21 (e) If a shipment is to an area that has restricted the sale of alcoholic beverages 22 under AS 04.11.491(a)(1), (2), or (3) or (b)(1) or (2), an endorsement holder may not 23 ship to a purchaser more than 10 and one-half liters of distilled spirits or 24 liters or 24 more of wine, or either a half-barrel keg of brewed beverages or 15.5 gallons or more 25 of brewed beverages in individual containers in a calendar month, or a lower amount 26 of distilled spirits, wine, or brewed beverages if the municipality or established village 27 has adopted the lower amount by local option under AS 04.11.491(g). Before shipping 28 alcohol to a purchaser in a restricted area, an endorsement holder shall consult the 29 database maintained by the board under AS 04.06.095 for any alcoholic beverage 30 shipments made to the purchaser during that calendar month by a package store. An 31 endorsement holder may not ship an amount of alcoholic beverages to a purchaser in a

01 restricted area that, when added to the amount already shipped, exceeds the amount 02 authorized by this subsection. An endorsement holder shall immediately enter into the 03 database the date and the amount of alcoholic beverages shipped to the purchaser. 04 (f) An endorsement holder may not divide or combine shipments of alcoholic 05 beverages so as to circumvent the limitation imposed under (e) of this section. 06 (g) In this section, "endorsement holder" means the holder of a package store 07 license with a package store shipping endorsement, and an agent or employee of the 08 holder of a package store license with a package store shipping endorsement. 09 (h) The holder of a package store license who ships alcoholic beverages 10 without an endorsement under this section commits the offense of unendorsed package 11 store shipping. 12 (i) The holder of a package store shipping endorsement who fails to comply 13 with the requirements of (c) - (f) of this section commits the offense of package store 14 shipping endorsement noncompliance. 15 (j) Unendorsed package store shipping is a violation and is punishable by a 16 fine of $500. 17 (k) Package store shipping endorsement noncompliance is a violation. 18 Sec. 04.09.470. Package store delivery endorsement. (a) A package store 19 delivery endorsement authorizes the holder of a package store license to deliver 20 alcoholic beverages as set out in this section. 21 (b) The biennial fee for a package store delivery endorsement is $200. 22 (c) The holder of a package store delivery endorsement may deliver alcoholic 23 beverages only in response to an order. The board shall adopt regulations specifying 24 the occasions for which delivery of alcoholic beverages is allowed and the manner of 25 delivery by the licensee. 26 (d) The holder of a package store delivery endorsement may deliver alcoholic 27 beverages only to a responsible adult at the delivery location specified on the order. 28 The responsible adult shall provide identification and acceptable proof of age under 29 AS 04.21.050 and acknowledge in writing receipt of the alcoholic beverages. 30 (e) The holder of a package store license who delivers alcoholic beverages 31 without an endorsement under this section commits the offense of unendorsed package

01 store delivery. 02 (f) The holder of a package store delivery endorsement who fails to comply 03 with the requirements of (c) and (d) of this section commits the offense of package 04 store shipping endorsement noncompliance. 05 (g) Unendorsed package store delivery is a violation and is punishable by a 06 fine of $500. 07 (h) Package store shipping endorsement noncompliance is a violation. 08 Sec. 04.09.480. Package store repackaging endorsement. (a) A package 09 store repackaging endorsement authorizes the holder of a package store license to 10 subdivide and sell alcoholic beverages from original packages with federally 11 compliant labels to smaller containers with the standard federal government warnings 12 and the product name. 13 (b) The biennial fee for a package store repackaging endorsement is $200. 14 (c) A package store licensee with a package store repackaging endorsement 15 may 16 (1) subdivide alcoholic beverages 17 (A) for sale on the licensed premises by opening the original 18 package for the purpose of subdividing the contents into smaller packages; or 19 (B) in response to a purchase request from a person who is on 20 the licensed premises or purchase order submitted in accordance with 21 AS 04.09.470(c); 22 (2) permit an agent or employee to subdivide alcoholic beverages, but 23 may not permit a customer or another person who is not an agent or employee of the 24 licensee to subdivide alcoholic beverages. 25 (d) The holder of a package store license who repackages alcoholic beverages 26 without an endorsement under this section commits the offense of unendorsed package 27 store repackaging. 28 (e) The holder of a package store repackaging endorsement who fails to 29 comply with the requirements of this section commit the offense of package store 30 repackaging endorsement noncompliance. 31 (f) Unendorsed package store repackaging is a violation and is punishable by a

01 fine of $500. 02 (g) Package store repackaging endorsement noncompliance is a violation. 03 Sec. 04.09.490. Package store sampling endorsement. (a) A package store 04 sampling endorsement authorizes the holder of a package store license to offer for 05 consumption on the licensed premises at no charge a small sample of an alcoholic 06 beverage from its inventory during the package store's stated hours of business, but not 07 between the hours of midnight and 8 a.m. 08 (b) The biennial fee for a package store sampling endorsement is $200. 09 (c) Only the license holder or an agent or employee of the license holder may 10 serve a sample. 11 (d) The holder of a package store sampling endorsement may serve a total 12 volume of samples to a person on a licensed premises each day that does not exceed 13 (1) 12 ounces of beer or cider, if the cider contains less than 8.5 14 percent alcohol by volume; 15 (2) six ounces of wine, mead, sake, or cider, if the cider contains 8.5 16 percent or more alcohol by volume; 17 (3) 1.5 ounces of distilled spirits; or 18 (4) the alcoholic equivalent of (1), (2), or (3) of this subsection. 19 (e) The holder of a package store sampling endorsement may not publicly 20 advertise, including through newsprint, radio, or television, sampling activities 21 conducted under the endorsement. However, the holder of a package store sampling 22 endorsement may notify existing customers of sampling activities, including by 23 electronic means. 24 (f) A person who offers a sample of an alcoholic beverage for consumption on 25 the licensed premises of a package store without an endorsement under this section 26 commits the offense of unendorsed package store sampling. 27 (g) Unendorsed package store sampling is a violation and is punishable by a 28 fine of $500. 29 (h) The holder of a package store sampling endorsement who fails to comply 30 with the requirements of (a) and (c) - (e) of this section commits the offense of failure 31 to comply with the terms of a package store sampling endorsement.

01 (i) Failure to comply with the terms of a package store sampling endorsement 02 is a violation. 03 Sec. 04.09.500. Bowling alley endorsement. (a) A bowling alley endorsement 04 authorizes the holder of a beverage dispensary license or a beverage dispensary 05 tourism license to sell or serve alcoholic beverages in the concourse or lane areas of 06 the bowling alley adjacent to the main bar area. 07 (b) The biennial fee for a bowling alley endorsement is $200. 08 (c) The board may issue a bowling alley endorsement only if the concourse or 09 lane areas of the bowling alley or both are 10 (1) designated as part of the licensed premises for the beverage 11 dispensary license or a beverage dispensary tourism license; and 12 (2) adjacent to the main bar area. 13 (d) Notwithstanding AS 04.16.049, the board may, upon application, authorize 14 access by persons under 21 years of age to the concourse or lane areas or both 15 designated part of the licensed premises of the bowling alley during hours when no 16 alcoholic beverages are being sold, served, or consumed. 17 (e) The periods during which persons under 21 years of age may be permitted 18 access to the licensed premises must be clearly posted on the licensed premises. 19 (f) The holder of a beverage dispensary license or a beverage dispensary 20 tourism license who sells or serves alcoholic beverages in the concourse or lane areas 21 of a bowling alley without an endorsement under this section commits the offense of 22 unendorsed bowling alley service. 23 (g) The holder of a bowling alley endorsement under this section who fails to 24 comply with the requirements of (e) of this section or who permits access by a person 25 under 21 years of age to the concourse or lane areas of the bowling alley during hours 26 when alcoholic beverages are being served in the concourse or lane areas commits the 27 offense of bowling alley endorsement noncompliance. 28 (h) Unendorsed bowling alley service is a violation and is punishable by a fine 29 of $500. 30 (i) Bowling alley endorsement noncompliance is a violation. 31 Sec. 04.09.510. Golf course endorsement. (a) A golf course endorsement

01 authorizes the owner of a golf course who has obtained a beverage dispensary license 02 or a beverage dispensary tourism license to sell or serve alcoholic beverages on the 03 golf course, driving range, club house and other buildings located on the course, and a 04 vending cart carrying beverages or food to, from, or on the course, excluding the 05 parking lot. 06 (b) The biennial fee for a golf course endorsement is $200. 07 (c) An application for a golf course endorsement must include a drawing of 08 the golf course with an annotated illustration and a description of the portions of the 09 course that are licensed premises and that are intended to be covered by the 10 endorsement. 11 (d) The holder of a beverage dispensary license or beverage dispensary 12 tourism license who sells or serves alcoholic beverages on a golf course without an 13 endorsement under this section commits the offense of unendorsed golf course service. 14 (e) The holder of a golf course endorsement who fails to comply with (a) of 15 this section commits the offense of golf course endorsement noncompliance. 16 (f) Unendorsed golf course service is a violation and is punishable by a fine of 17 $500. 18 (g) Golf course endorsement noncompliance is a violation. 19 Sec. 04.09.520. Brewery repackaging endorsement. (a) A brewery 20 repackaging endorsement authorizes the holder of a brewery manufacturer license who 21 held a license to operate a brewpub under former AS 04.11.135 and was operating a 22 brewpub on the day before the effective date of this section and who also holds, 23 wholly or in part, a beverage dispensary license, beverage dispensary tourism license, 24 restaurant or eating place license, or a seasonal restaurant or eating place tourism 25 license to offer the holder's brewed beverages for sale for consumption off the licensed 26 premises and to subdivide and sell the holder's brewed beverages from original 27 packages with federally compliant labels to smaller containers with the standard 28 federal government warnings and the product name. 29 (b) The biennial fee for a brewery repackaging endorsement is $200. 30 (c) A brewery manufacturer licensee with a brewery repackaging endorsement 31 (1) is authorized to sell, each day to a person on the licensed premises

01 for consumption off the licensed premises, not more than 02 (A) 5.167 gallons of the holder's beer; or 03 (B) nine liters of sake; 04 (2) may only subdivide the holder's brewed beverages in response to a 05 purchase request from a person who is on the licensed premises; 06 (3) may permit an agent or employee to subdivide the holder's brewed 07 beverages, but may not permit a customer or another person who is not an agent or 08 employee of the licensee to subdivide the holder's brewed beverages. 09 (d) The holder of a package store license who repackages brewed beverages 10 without an endorsement under this section commits the offense of unendorsed brewery 11 repackaging. 12 (e) In this section, "licensed premises" means the premises licensed under a 13 beverage dispensary license, beverage dispensary tourism license, restaurant or eating 14 place license, or a seasonal restaurant or eating place tourism license, and the premises 15 is owned, wholly or in part, by a brewery manufacturer licensee. 16 (f) The holder of a brewery repackaging endorsement who fails to comply 17 with the requirements of this section commits the offense of brewery repackaging 18 endorsement noncompliance. 19 (g) Unendorsed brewery repackaging is a violation, punishable by a fine of 20 $500. 21 (h) Brewery repackaging endorsement noncompliance is a violation. 22 Article 6. Permits. 23 Sec. 04.09.600. Types of permits. (a) A permit allows catering and serving 24 activities for a specific time period on a single specified premises and allows an 25 eligible nonprofit organization to host a fundraising or not-for-profit event. 26 (b) The director may issue only the permits authorized in AS 04.09.600 - 27 04.09.690. An application for a permit must be received by the director not less than 28 three business days before the first day of the event. Except for a conditional 29 contractor's permit issued under AS 04.09.690, the director shall require every person 30 who will serve or sell alcohol or check identification of a patron during a permitted 31 event to complete an alcohol server education course under AS 04.21.025 before the

01 first day of the permitted event. 02 (c) An applicant for a permit must follow the application requirements set out 03 in AS 04.11.260. 04 (d) A permit, other than an inventory resale permit under AS 04.09.680 and a 05 conditional contractor's permit under AS 04.09.690, is valid only on the premises, for 06 the event, and for the period specified. 07 (e) The holder of an approved permit may submit a written request for 08 amendment of the approved permit to change the event date, site, designated area, or 09 designated time. The holder of the approved permit shall submit the request to the 10 director not later than three business days before the event and shall include approval 11 of the law enforcement agency having jurisdiction over the site of the event for which 12 the amended permit is sought. 13 (f) The holder of an approved permit shall ensure that the individuals serving 14 alcohol have completed alcohol server training as required under AS 04.21.025 before 15 the first day of the permitted event. 16 (g) A permit may not be transferred to another person or another location and, 17 except for a conditional contractor's permit under AS 04.09.690, may not be renewed. 18 (h) Except as otherwise provided in AS 04.09.680 for an inventory resale 19 permit and AS 04.09.690 for a conditional contractor's permit, the fee for a permit 20 shall be set by the board in regulation. The fee must be at least $50 for each day of the 21 event. 22 (i) The director shall approve or deny a permit application. If the director 23 denies a permit application, the applicant may appeal to the board. 24 Sec. 04.09.610. Beverage dispensary caterer's permit. A beverage 25 dispensary caterer's permit authorizes the holder of a beverage dispensary license or 26 beverage dispensary tourism license to sell or dispense alcoholic beverages at 27 conventions, picnics, sporting events, concerts, street festivals, or similar affairs held 28 off the holder's licensed premises for which a beverage dispensary license or beverage 29 dispensary tourism license would not otherwise be required. The permit may be issued 30 only for designated premises for a specific occasion and for a limited period. 31 Sec. 04.09.620. Restaurant caterer's dining permit. (a) A restaurant caterer's

01 dining permit authorizes the holder of a restaurant or eating place license or a seasonal 02 restaurant or eating place tourism license to sell brewed beverages and wine before 03 and during the service of food provided by the licensee at a single dining event held 04 off the holder's licensed premises. 05 (b) The director may issue a restaurant caterer's dining permit only for 06 designated premises, for a specific occasion, and for a limited period. 07 (c) The licensee shall provide food in conjunction with the service of brewed 08 beverages and wine under a restaurant caterer's dining permit. The licensee shall 09 comply with the requirements for gross receipts from food sales for a restaurant or 10 eating place license under AS 04.09.210(d) or a seasonal restaurant or eating place 11 tourism license under AS 04.09.350. 12 Sec. 04.09.630. Club caterer's permit. (a) A club caterer's permit authorizes 13 the holder of a club license to sell or dispense alcoholic beverages at an event held off 14 the club's licensed premises. 15 (b) The application for a club caterer's permit filed under AS 04.11.260 must 16 be signed by two officers of the organization. 17 (c) A restriction or prohibition under AS 04.09.220 regarding a club member 18 or a guest of a club member applies at the premises covered by the permit. 19 (d) The director may not issue more than three club caterer's permits to the 20 holder of a club license in a calendar year. 21 Sec. 04.09.640. Art exhibit event permit. (a) An art exhibit event permit 22 authorizes the holder of a beverage dispensary license, a beverage dispensary tourism 23 license, a restaurant or eating place license, or a seasonal restaurant or eating place 24 tourism license to sell and serve brewed beverages and wine for consumption at a 25 specific art exhibit event. 26 (b) The board may issue an art exhibit event permit only for a specific art 27 exhibit event at premises designated in the application for a limited period specified in 28 the application. 29 (c) The board may not grant more than 12 art exhibit event permits to a 30 licensee in a calendar year. 31 (d) An art exhibit event permit may not be exercised during an event that is

01 expected to attract attendees under 21 years of age. 02 (e) Food must be provided in conjunction with the service of brewed 03 beverages and wine under an art exhibit event permit. 04 Sec. 04.09.650. Nonprofit organization event permit. (a) A nonprofit 05 organization event permit authorizes the holder to sell or dispense brewed beverages 06 or wine for consumption at an event organized by the nonprofit organization. 07 (b) Only a nonprofit fraternal, civic, professional, or patriotic organization 08 active for a period of at least two years before filing an application and incorporated 09 under AS 10.20 is eligible for a nonprofit organization event permit. 10 (c) The application for a nonprofit organization event permit filed under 11 AS 04.11.260 must be signed by two officers of the organization. The nonprofit 12 organization shall submit, together with the application, 13 (1) either a signed copy of a resolution adopted by the board of 14 directors or a copy of the minutes from a board meeting of the nonprofit organization 15 authorizing the application; and 16 (2) a sworn affidavit showing the length of time the organization has 17 been in existence. 18 (d) The director may not issue more than five nonprofit organization event 19 permits to a nonprofit organization, including an auxiliary of the organization, in a 20 calendar year. A nonprofit organization event permit may only be issued for 21 designated premises for a specific occasion and for a limited period of time as 22 specified in the application. 23 (e) The nonprofit organization shall ensure that all profits derived from the 24 sale of brewed beverages or wine under a nonprofit organization event permit are paid 25 to the organization that holds the permit and not to an individual. 26 Sec. 04.09.660. Alcoholic beverage auction permit. (a) An alcoholic 27 beverage auction permit authorizes the holder to sell alcoholic beverages by outcry or 28 silent auction. An alcoholic beverage auction permit is sufficient to authorize a 29 nonprofit organization under (b) of this section to sell alcoholic beverages by outcry or 30 silent auction, and no other permit or license is required. 31 (b) Only a nonprofit fraternal, civic, professional, or patriotic organization

01 active for a period of at least two years before filing an application and incorporated 02 under AS 10.20 is eligible for an alcoholic beverage auction permit. 03 (c) The application for an alcoholic beverage auction permit filed under 04 AS 04.11.260 must be signed by two officers of the organization. The nonprofit 05 organization shall submit, together with the application, 06 (1) either a signed copy of a resolution adopted by the board of 07 directors or a copy of the minutes of a board meeting of the nonprofit organization 08 authorizing the application; and 09 (2) a sworn affidavit showing the length of time the organization has 10 been in existence. 11 (d) The director may not issue more than five alcoholic beverage auction 12 permits to a nonprofit organization, including an auxiliary of the organization, in a 13 calendar year. The director may issue a permit only for designated premises for a 14 specific event and for a limited period as specified in the application. 15 (e) The nonprofit organization shall ensure that all profits derived from the 16 sale of brewed beverages or wine under an alcoholic beverage auction permit are paid 17 to the organization that holds the permit and not to an individual. 18 (f) The nonprofit organization may not permit consumption at the auction site 19 of the alcoholic beverages being auctioned under a nonprofit organization alcoholic 20 beverage auction permit. 21 Sec. 04.09.670. Tasting event permit. (a) A tasting event permit authorizes 22 the holder of a beverage dispensary license or a beverage dispensary tourism license to 23 sell or dispense alcoholic beverages at a tasting event held in partnership with the 24 holder of a package store license, brewery retail license, winery retail license, or 25 distillery retail license. 26 (b) A tasting event must be for the purpose of promoting products available 27 for purchase from the partnering package store licensee, brewery retail licensee, 28 winery retail licensee, or distillery retail licensee; only products produced or sold by 29 the partnering licensee may be sold or dispensed at the event. 30 (c) Only the holder of a beverage dispensary license or a beverage dispensary 31 tourism license may apply for a tasting event permit under this section. An application

01 for a tasting event permit must list both the beverage dispensary licensee or beverage 02 dispensary tourism licensee and the partnering licensee, and specify the designated 03 premises for the event. The tasting event must be held in the same municipality or 04 organized village in which the licensed premises of the partnering licensee are located. 05 (d) The director may not issue more than six permits in a calendar year to a 06 beverage dispensary licensee or a beverage dispensary tourism licensee for tasting 07 events with a particular partnering licensee; however, there is no limit on the number 08 of different partnering licensees with whom a beverage dispensary licensee may 09 partner for different events. If a person holds two or more qualifying partnering 10 licenses, then the director shall treat each license as separate and distinct when 11 applying the limitation under this subsection, regardless of how many other licenses 12 the person holds, wholly or in part. 13 (e) The director may not issue a tasting event permit for a period 14 (1) that is longer than four hours; 15 (2) that lasts beyond 9:00 p.m. 16 (f) Food must be provided in conjunction with the service of alcoholic 17 beverages under a tasting event permit. 18 (g) In this section, "partnering licensee" means the holder of a package store 19 license, brewery retail license, winery retail license, or distillery retail license who has 20 partnered with the holder of a beverage dispensary license or a beverage dispensary 21 tourism license to host a tasting event permitted by this section. 22 Sec. 04.09.680. Inventory resale permit. (a) An inventory resale permit 23 authorizes the holder to sell the remaining inventory of alcoholic beverages of a 24 business when the owner of the business no longer has a valid license under this title. 25 (b) The fee for an inventory resale permit is $100. 26 (c) The holder of an inventory resale permit may sell the remaining alcoholic 27 beverage inventory only to the holder of a valid license under this chapter. 28 (d) The director may issue an inventory resale permit for a period ending 90 29 days after the date of expiration or forfeiture of the license. The director may not issue 30 a permit if the license was suspended or revoked. 31 Sec. 04.09.690. Conditional contractor's permit. (a) A conditional

01 contractor's permit authorizes the holder to sell brewed beverages or wine for 02 consumption only on designated premises for the designated period of the permit 03 under AS 04.11.680 at construction sites that are located outside a city and inside the 04 boundaries of a military or naval reservation. 05 (b) The biennial conditional contractor's permit fee is $1,200. 06 (c) An applicant for a conditional contractor's permit must obtain and file with 07 the board written permission from the commanding officer of the military or naval 08 reservation and the prime contractor of the remotely situated project for the conduct of 09 the activities authorized by the permit. A conditional contractor's permit may be 10 renewed biennially upon reapplication for a permit and may be revoked or suspended 11 at the discretion of the commanding officer or the prime contractor. 12 (d) A conditional contractor's permit may not be transferred and is not valid 13 after the completion of the holder's contract or the closing of the military or naval 14 reservation. 15 Sec. 04.09.700. Failure to comply with a permit requirement. (a) A person 16 who engages in activity that requires a permit under AS 04.09.600 - 04.09.690 without 17 having a permit and a person who violates the terms of a permit issued under 18 AS 04.09.600 - 04.09.690 commits the offense of failure to comply with a permit 19 requirement. 20 (b) Failure to comply with a permit requirement is a violation. 21 (c) Failure to comply with a permit requirement of an inventory resale permit 22 under AS 04.09.680 or a conditional contractor's permit under AS 04.09.690 is 23 punishable by a fine of $500. 24 * Sec. 10. AS 04.11.010(a) is amended to read: 25 (a) A [EXCEPT AS PROVIDED IN AS 04.11.020, A] person may not 26 knowingly [MANUFACTURE, SELL, OFFER FOR SALE,] possess for [SALE OR] 27 barter, traffic in, or barter an alcoholic beverage unless under license or permit issued 28 under this title. 29 * Sec. 11. AS 04.11.010(b) is amended to read: 30 (b) Except as provided in this subsection, a person may not solicit or receive 31 orders for the delivery of an alcoholic beverage in an area that has adopted a local

01 option under AS 04.11.491. If the area has adopted a local option under 02 AS 04.11.491(a)(1), (2), or (3), or (b)(1) or (2), a package store licensee outside of that 03 local option area may receive orders as provided under a package store shipping 04 endorsement under AS 04.09.460 [AS 04.11.150] but may not solicit in that area or 05 receive orders through an agent or employee in that area. This subsection does not 06 apply to a package store licensee who operates a package store in an area that has 07 adopted a local option under AS 04.11.491(a)(2)(C) or (3)(C) or (b)(2)(C). A person 08 who violates this subsection is punishable upon conviction as provided under 09 AS 04.16.200(a) or (b). 10 * Sec. 12. AS 04.11.010(c) is amended to read: 11 (c) Unless a municipality or established village has adopted a more restrictive 12 local option under AS 04.11.491(g), in a criminal prosecution for possession of 13 alcoholic beverages for barter or sale in violation of (a) of this section, AS 04.09.060, 14 04.09.070, 04.09.140, 04.09.145, 04.09.370, or 04.09.380, the fact that a person 15 (1) possessed more than 10 1/2 liters of distilled spirits or 24 liters or 16 more of wine, or either a half-barrel keg [HALF-KEG] of brewed [MALT] 17 beverages or 15.5 [12] gallons or more of brewed [MALT] beverages in individual 18 containers in an area where the sale of alcoholic beverages is restricted or prohibited 19 under AS 04.11.491 creates a presumption that the person possessed the alcoholic 20 beverages for barter or sale; 21 (2) sends, transports, or brings more than 10 1/2 liters of distilled 22 spirits or 24 liters or more of wine, or either a half-barrel keg [HALF-KEG] of 23 brewed [MALT] beverages or 15.5 [12] gallons or more of brewed [MALT] 24 beverages in individual containers to an area where the sale of alcoholic beverages is 25 restricted or prohibited under AS 04.11.491 creates a presumption that the person sent, 26 transported, or brought the alcoholic beverages for barter or sale in the area. 27 * Sec. 13. AS 04.11.015 is amended to read: 28 Sec. 04.11.015. Purchase from nonlicensee prohibited. (a) A person may 29 not purchase or barter for alcoholic beverages from a person who is not a licensee, 30 permittee, or an agent or employee of a licensee or permittee. 31 (b) A person who violates (a) of this section is guilty of a violation.

01 * Sec. 14. AS 04.11.040 is amended by adding new subsections to read: 02 (d) A person who transfers a license or permit or a controlling interest in a 03 license or permit in violation of this section commits the offense of unauthorized 04 transfer of an alcoholic beverage license or permit. 05 (e) Unauthorized transfer of an alcoholic beverage license or permit is a 06 violation. 07 * Sec. 15. AS 04.11.045 is amended by adding new subsections to read: 08 (c) A limited liability organization that fails to report as required under (a) of 09 this section commits the offense of failure to report a change in member interest or 10 manager. 11 (d) Failure to report a change in member interest or manager is a violation. 12 * Sec. 16. AS 04.11.050 is amended by adding new subsections to read: 13 (d) A corporation that fails to report as required under (a) of this section, other 14 than a corporation described in (c) of this section, commits the offense of failure to 15 report a stock transfer or change of officers or board members. 16 (e) Failure to report a stock transfer or change of officers or board members is 17 a violation. 18 * Sec. 17. AS 04.11.055 is amended by adding new subsections to read: 19 (c) A partnership that fails to report as required under (a) of this section 20 commits the offense of failure to report a transfer of partnership interest or change of 21 general partner. 22 (d) Failure to report a transfer of partnership interest or change of general 23 partner is a violation. 24 * Sec. 18. AS 04.11.060 is amended to read: 25 Sec. 04.11.060. Nonresident distiller, brewer, winery, or wholesaler. A 26 distiller, brewer, winery, or wholesaler whose plant or principal place of business is 27 outside the state may not sell products directly to licensees in the state without 28 (1) obtaining a general wholesale license under AS 04.09.100 29 [AS 04.11.160(a)] for each wholesale distributing point in the state; 30 (2) appointing an agent upon whom process can be served; and 31 (3) obtaining other applicable licenses under the provisions of this title.

01 * Sec. 19. AS 04.11.060 is amended by adding a new subsection to read: 02 (b) A person who violates (a) of this section is guilty of a class A 03 misdemeanor. 04 * Sec. 20. AS 04.11.260 is amended to read: 05 Sec. 04.11.260. Application for new license, endorsement, or permit. (a) An 06 applicant for a new license, endorsement, or permit shall file with the director a 07 written application, signed and sworn to by the applicant, giving the applicant's name, 08 mailing address, telephone number, and electronic mail address. If the applicant is 09 a corporation, the application shall be executed by an [THE] authorized officer 10 [OFFICERS] of the corporation. If the applicant is a partnership, including a limited 11 partnership, the application shall be executed by an authorized general partner. The 12 application must include 13 (1) the type of license, endorsement, or permit desired; 14 (2) a description of the premises for which the license, endorsement, 15 or permit is desired, giving the address by street and number, or other information, so 16 that the location of the premises can be definitely determined; 17 (3) an annotated illustration of the premises designating the areas 18 for manufacture, storage, service, and consumption of alcoholic beverages and, 19 for a license application, the area for warehousing of the alcoholic beverages; 20 (4) the license, endorsement, or permit fee, and, for a multiple fixed 21 counter endorsement, the application fee for each counter; 22 (5) [(4)] the duration of the license, endorsement, or permit desired, 23 including, for a permit, a statement of the event dates and the specific hours of 24 intended operation; 25 (6) [(5)] any other information required by the board. 26 (b) A corporation applying for a license or conditional contractor's permit 27 under AS 04.09.690 shall provide the names and addresses of the president, vice- 28 president, secretary, managing officer, and all stockholders who own 10 percent or 29 more of the stock in the corporation, together with any other information required by 30 the board. 31 (c) An applicant for a new license or permit must include with the application

01 (1) proof that notice required by AS 04.11.310, if any, has been given; 02 (2) any petitions required to be secured under AS 04.11.460 before a 03 license may be issued; 04 (3) evidence of any approval by public authorities required to be 05 obtained [UNDER AS 04.11.090(e), 04.11.220(c), 04.11.230(b), 04.11.240(b), OR 06 04.11.250(b)], before a license or permit may be issued, including 07 (A) written approval under AS 04.09.240 from the 08 governing body of a college or university for a pub license; 09 (B) approval under AS 04.11.365 for a restaurant or eating 10 place license in a multi-unit residential housing development owned or 11 financed by the Alaska Housing Finance Corporation; 12 (C) permission from the commanding officer and the prime 13 contractor for a conditional contractor's permit under AS 04.09.690; 14 (D) for a permit other than a conditional contractor's 15 permit, approval of the law enforcement agency having jurisdiction over 16 the site of the event for which the permit is sought. 17 (d) A partnership, including a limited partnership, that applies for a license or 18 conditional contractor's permit under AS 04.09.690 shall provide information 19 required by the board including the names and addresses of all general partners and all 20 partners with an interest of 10 percent or more. 21 (e) A limited liability organization that applies for a license or conditional 22 contractor's permit under AS 04.09.690 shall provide information required by the 23 board, including the names and addresses of all members with an ownership interest of 24 10 percent or more and the names and addresses of all managers. 25 * Sec. 21. AS 04.11.260 is amended by adding a new subsection to read: 26 (f) This section does not apply to a winery direct shipment license issued 27 under AS 04.09.360. 28 * Sec. 22. AS 04.11.270 is amended to read: 29 Sec. 04.11.270. Application for renewal of license, endorsement, or 30 conditional contractor's permit. (a) An application for renewal of a license, 31 endorsement, or [RENEWAL OF A] conditional contractor's permit under

01 AS 04.09.690 must include 02 (1) the information required for a new license, endorsement, or permit 03 under AS 04.11.260 except that proof of notice under AS 04.11.310 is not required; 04 and 05 (2) a list of all convictions of the applicant of violations of this title, a 06 regulation adopted under this title, or an ordinance adopted under AS 04.21.010, that 07 occurred in the preceding two calendar years. 08 (b) A license, endorsement, or permit shall be renewed as follows: 09 (1) on or before November 1, the director shall mail a renewal 10 application to each licensee whose license, endorsement, or permit, unless renewed, 11 will expire on December 31 of that year; the application shall be mailed to the licensee 12 or permittee [AT THE LICENSED PREMISES OR] at a mailing address or 13 electronic mail address furnished by the licensee or permittee; 14 (2) the licensee or permittee shall submit the completed renewal 15 application and the biennial [LICENSE] fee to the director before January 1; 16 (3) a renewal application filed after December 31 is delinquent and 17 must be accompanied by a $500 penalty fee; 18 (4) if December 31 falls on a weekend or a state holiday, the deadline 19 is extended to the first business day following December 31. 20 * Sec. 23. AS 04.11.270 is amended by adding a new subsection to read: 21 (c) This section does not apply to a winery direct shipment license issued 22 under AS 04.09.360. 23 * Sec. 24. AS 04.11.280 is amended to read: 24 Sec. 04.11.280. Application for transfer of a license to another person. (a) 25 An application for transfer of a license or a license with one or more endorsements 26 to another person must contain the same information about the transferee as is required 27 of an applicant for a new license or endorsement under AS 04.11.260 and must 28 include other information required by the board. 29 (b) An application for the transfer of a license or a license with one or more 30 endorsements to another person must be accompanied by a statement, under oath, 31 executed by the transferor, listing all debts of the business and all taxes due by the

01 business. The board shall promptly inform each listed creditor of the application and 02 the amount shown as owed to that creditor. 03 * Sec. 25. AS 04.11.295(a) is amended to read: 04 (a) An applicant for the issuance or transfer of a license or issuance of a 05 conditional contractor's permit under this title shall submit to the board, with the 06 application, the applicant's fingerprints and the fees required by the Department of 07 Public Safety under AS 12.62.160 for criminal justice information and a national 08 criminal history record check. The board may require an applicant for renewal of a 09 license or a conditional contractor's permit under this title to submit fingerprints and 10 pay fees as required by this subsection. The board shall submit the fingerprints to the 11 Department of Public Safety to obtain a report of criminal justice information under 12 AS 12.62 and a national criminal history record check under AS 12.62.400. The 13 Department of Public Safety may submit the fingerprints to the Federal Bureau of 14 Investigation for a national criminal history record check. The board shall use the 15 information obtained under this section in its determination of an applicant's 16 qualification for issuance, transfer, or renewal of a license or issuance or renewal of a 17 conditional contractor's permit. 18 * Sec. 26. AS 04.11.295(b)(1) is amended to read: 19 (1) "applicant" means all individuals whose names and addresses are 20 required to be provided with an application for a new license or conditional 21 contractor's permit under AS 04.09.690 [AS 04.11.260]; 22 * Sec. 27. AS 04.11.310 is amended by adding a new subsection to read: 23 (c) This section does not apply to a winery direct shipment license issued 24 under AS 04.09.360. 25 * Sec. 28. AS 04.11 is amended by adding a new section to article 3 to read: 26 Sec. 04.11.315. False statement on application. A person who knowingly 27 makes a false sworn statement that the person does not believe to be true on an 28 application under AS 04.11.260 - 04.11.310 commits the crime of perjury under 29 AS 11.56.200. 30 * Sec. 29. AS 04.11.320(a) is amended to read: 31 (a) An application requesting issuance of a new license or endorsement shall

01 be denied if 02 (1) the board finds, after review of all relevant information, that 03 issuance of the license or endorsement would not be in the best interests of the 04 public; 05 (2) issuance of the license is prohibited by AS 04.11.410, relating to 06 location of premises near churches and schools; 07 (3) the application has not been completed in accordance with 08 AS 04.11.260; 09 (4) issuance of the license or endorsement would violate the 10 restrictions pertaining to the particular license or endorsement imposed under this 11 title; 12 (5) issuance of the license is prohibited under this title as a result of an 13 election conducted under AS 04.11.507; 14 (6) the requirements of AS 04.11.420 - 04.11.450 relating to zoning, 15 ownership and location of the license or endorsement, and the identity and financing 16 of a licensee have not been met; 17 (7) issuance of the license is prohibited under AS 04.11.400(a) or 18 prohibition of issuance of the license is found necessary under AS 04.11.400(b); 19 (8) the application contains false statements of material fact; 20 (9) the license is sought for the sale of alcoholic beverages in a first or 21 second class city where there are no licensed premises at the time of application unless 22 a majority of the voters have voted not to approve a local option to restrict or prohibit 23 the sale of alcoholic beverages under AS 04.11.491, have voted to approve a local 24 option to allow the type of premises under AS 04.11.491(a)(2) or (3), or have voted to 25 remove a restriction or prohibition on the sale of alcoholic beverages under 26 AS 04.11.495; or 27 (10) the license is sought for the sale of alcoholic beverages in an 28 established village where there are no licensed premises at the time of application 29 unless a majority of the voters have voted not to approve a local option to restrict or 30 prohibit the sale of alcoholic beverages under AS 04.11.491, have voted to approve a 31 local option to allow the type of premises under AS 04.11.491(b)(2), or have voted to

01 remove a restriction or prohibition on the sale of alcoholic beverages under 02 AS 04.11.495. 03 * Sec. 30. AS 04.11.330(a) is amended to read: 04 (a) An application requesting renewal of a license shall be denied if 05 (1) the board finds, after review of all relevant information, that 06 renewal of the license would not be in the best interests of the public; 07 (2) the license has been revoked for any cause; 08 (3) the applicant has not operated the licensed premises for at least 240 09 hours [30 EIGHT-HOUR DAYS] during each of the two preceding calendar years, 10 unless the board determines that the licensed premises are under construction or 11 cannot be operated through no fault of the applicant; 12 (4) the board finds that issuance of an existing license under 13 AS 04.11.400(d) has not encouraged tourist trade; 14 (5) the requirements of AS 04.11.420 - 04.11.450 relating to zoning, 15 ownership of the license, and financing of the licensee have not been met; 16 (6) renewal of the license would violate the restrictions pertaining to 17 the particular license under this title or the license has been operated in violation of a 18 condition or restriction imposed by the board; 19 (7) renewal of the license is prohibited under this title as a result of an 20 election conducted under AS 04.11.507; or 21 (8) the application has not been completed in accordance with 22 AS 04.11.270 [; OR 23 (9) THE LICENSE WAS ISSUED UNDER AS 04.11.400(g), AND 24 THE BOARD FINDS THAT THE PUBLIC CONVENIENCE DOES NOT 25 REQUIRE RENEWAL]. 26 * Sec. 31. AS 04.11.330(a), as amended by sec. 30 of this Act, is amended to read: 27 (a) An application requesting renewal of a license or endorsement shall be 28 denied if 29 (1) the board finds, after review of all relevant information, that 30 renewal of the license or endorsement would not be in the best interests of the public; 31 (2) the license or endorsement has been revoked for any cause;

01 (3) the applicant has not operated the licensed premises for at least 240 02 hours [30 EIGHT-HOUR DAYS] during each of the two preceding calendar years, 03 unless the board determines that the licensed premises are under construction or 04 cannot be operated through no fault of the applicant; 05 (4) the board finds that issuance of an existing beverage dispensary 06 tourism license under AS 04.09.340 or seasonal restaurant or eating place tourism 07 license under AS 04.09.350 [AS 04.11.400(d)] has not encouraged tourist trade; 08 (5) the requirements of AS 04.11.420 - 04.11.450 relating to zoning, 09 ownership of the license, and financing of the licensee have not been met; 10 (6) renewal of the license or endorsement would violate the 11 restrictions pertaining to the particular license or endorsement under this title or the 12 license or endorsement has been operated in violation of a condition or restriction 13 imposed by the board; 14 (7) renewal of the license is prohibited under this title as a result of an 15 election conducted under AS 04.11.507; or 16 (8) the application has not been completed in accordance with 17 AS 04.09.360 or AS 04.11.270. 18 * Sec. 32. AS 04.11.330(d) is amended to read: 19 (d) Notwithstanding (a)(3) of this section, a common carrier dispensary 20 license issued under AS 04.09.260 or a sporting event [RECREATIONAL SITE] 21 license issued under AS 04.09.270 [AS 04.11.210] may be renewed if the license was 22 exercised at least once during each of the two preceding calendar years. 23 * Sec. 33. AS 04.11.330 is amended by adding a new subsection to read: 24 (e) The requirements of (a)(3), (a)(5), and (a)(7) of this section do not apply to 25 a winery direct shipment license issued under AS 04.09.360. 26 * Sec. 34. AS 04.11.340 is amended to read: 27 Sec. 04.11.340. Denial of request for relocation. An application requesting 28 approval for the relocation of licensed premises shall be denied if 29 (1) the board finds, after review of all relevant information, that 30 relocation of the license would not be in the best interests of the public; 31 (2) the relocation is prohibited under AS 04.11.400(a) or (b);

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

01 law; 02 (7) relocation of the license would violate the restrictions pertaining to 03 the particular license imposed by this title; or 04 (8) relocation of the license is prohibited under this title as a result of 05 an election conducted under AS 04.11.507 [; OR 06 (9) THE LICENSE WAS ISSUED UNDER AS 04.11.400(d)]. 07 * Sec. 36. AS 04.11.360 is amended to read: 08 Sec. 04.11.360. Denial of transfer of a license to another person. An 09 application requesting approval of a transfer of a license to another person under this 10 title shall be denied if 11 (1) the board finds, after review of all relevant information, that 12 transfer of a license to another person would not be in the best interests of the public; 13 (2) the application has not been completed in accordance with 14 AS 04.11.280; 15 (3) the application contains false statements of material fact; 16 (4) the transferor has not paid all debts or taxes arising from the 17 conduct of the business licensed under this title unless 18 (A) the transferor gives security for the payment of the debts or 19 taxes satisfactory to the creditor or taxing authority; or 20 (B) the transfer is under a promise given as collateral by the 21 transferor to the transferee in the course of an earlier transfer of the license 22 under which promise the transferor is obliged to transfer the license back to the 23 transferee in the event of default in payment for property conveyed as part of 24 the earlier transfer of the license; 25 (5) transfer of the license to another person would result in violation of 26 the provisions of this title relating to identity of licensees and financing of licensees; 27 (6) transfer of the license to another person would violate the 28 restrictions pertaining to the particular license under this title; 29 (7) transfer of the license to another person is prohibited under the 30 provisions of this title as a result of an election conducted under AS 04.11.507; 31 (8) the prospective transferee does not have the qualifications required

01 under this title of an original applicant; 02 (9) the license was issued under AS 04.11.100(f) [OR 04.11.400(g)]; 03 however, this paragraph does not apply to a beverage dispensary license issued before 04 June 6, 1985, under former AS 04.11.400(j) if the transfer does not involve a change 05 in location; or 06 (10) the license was issued under AS 04.11.135, unless the transferor is 07 also applying to transfer the beverage dispensary license required under AS 04.11.135 08 to the same transferee. 09 * Sec. 37. AS 04.11.360, as amended by sec. 36 of this Act, is amended to read: 10 Sec. 04.11.360. Denial of transfer of a license to another person. An 11 application requesting approval of a transfer of a license to another person under this 12 title shall be denied if 13 (1) the board finds, after review of all relevant information, that 14 transfer of a license to another person would not be in the best interests of the public; 15 (2) the application has not been completed in accordance with 16 AS 04.11.280; 17 (3) the application contains false statements of material fact; 18 (4) the transferor has not paid all debts or taxes arising from the 19 conduct of the business licensed under this title unless 20 (A) the transferor gives security for the payment of the debts or 21 taxes satisfactory to the creditor or taxing authority; or 22 (B) the transfer is under a promise given as collateral by the 23 transferor to the transferee in the course of an earlier transfer of the license 24 under which promise the transferor is obliged to transfer the license back to the 25 transferee in the event of default in payment for property conveyed as part of 26 the earlier transfer of the license; 27 (5) transfer of the license to another person would result in violation of 28 the provisions of this title relating to identity of licensees and financing of licensees; 29 (6) transfer of the license to another person would violate the 30 restrictions pertaining to the particular license under this title; 31 (7) transfer of the license to another person is prohibited under the

01 provisions of this title as a result of an election conducted under AS 04.11.507; or 02 (8) the prospective transferee does not have the qualifications required 03 under this title of an original applicant; 04 [(9) THE LICENSE WAS ISSUED UNDER AS 04.11.100(f); 05 HOWEVER, THIS PARAGRAPH DOES NOT APPLY TO A BEVERAGE 06 DISPENSARY LICENSE ISSUED BEFORE JUNE 6, 1985, UNDER FORMER 07 AS 04.11.400(j) IF THE TRANSFER DOES NOT INVOLVE A CHANGE IN 08 LOCATION; OR 09 (10) THE LICENSE WAS ISSUED UNDER AS 04.11.135, UNLESS 10 THE TRANSFEROR IS ALSO APPLYING TO TRANSFER THE BEVERAGE 11 DISPENSARY LICENSE REQUIRED UNDER AS 04.11.135 TO THE SAME 12 TRANSFEREE]. 13 * Sec. 38. AS 04.11.365 is amended to read: 14 Sec. 04.11.365. Licensed premises in multi-unit residential housing 15 developments owned or financed by the Alaska Housing Finance Corporation. 16 For premises located in a multi-unit residential housing development owned or 17 financed by the Alaska Housing Finance Corporation, the board may issue a new 18 license under AS 04.11.320, renew a license under AS 04.11.330, or approve a request 19 for relocation under AS 04.11.340 if the Alaska Housing Finance Corporation 20 authorizes the use under AS 18.56.230 and 21 [(1) THE LICENSE IS FOR A RESTAURANT OR EATING PLACE 22 UNDER AS 04.11.100; OR 23 (2)] the premises are covered by a restaurant endorsement 24 [DESIGNATED BY THE BOARD AS A RESTAURANT] under AS 04.09.450 25 [AS 04.16.049]. 26 * Sec. 39. AS 04.11.370(a) is amended to read: 27 (a) A license, endorsement, or permit shall be suspended or revoked if the 28 board finds 29 (1) misrepresentation of a material fact on an application made under 30 this title or a regulation adopted under this title; 31 (2) continuation of the manufacture, sale, or service of alcoholic

01 beverages by the licensee or permittee would be contrary to the best interests of the 02 public; 03 (3) failure on the part of the licensee to correct a defect that constitutes 04 a violation of this title, a condition or restriction imposed by the board, a regulation 05 adopted under this title, or other laws after receipt of notice issued by the board or its 06 agent; 07 (4) conviction of a licensee of a violation of this title, a regulation 08 adopted under this title, or an ordinance adopted under AS 04.21.010; 09 (5) conviction of an agent or employee of a licensee of a violation of 10 this title, a regulation adopted under this title, or an ordinance adopted under 11 AS 04.21.010, if the licensee is found by the board to have either knowingly allowed 12 the violation or to have recklessly or with criminal negligence failed to act in 13 accordance with the duty prescribed under AS 04.21.030 with the result that the agent 14 or employee violates a law, regulation, or ordinance; 15 (6) failure of the licensee to comply with the public health, fire, or 16 safety laws and regulations in the state; 17 (7) use of the licensed premises as a resort for illegal possessors or 18 users of narcotics, prostitutes, or sex traffickers; in addition to any other legally 19 competent evidence, the character of the premises may be proved by the general 20 reputation of the premises in the community as a resort for illegal possessors or users 21 of narcotics, prostitutes, or sex traffickers; 22 (8) occurrence of illegal gambling within the limits of the licensed 23 premises; 24 (9) the licensee permitted a public offense involving moral turpitude to 25 occur on the licensed premises; 26 (10) violation by a licensee of this title, a condition or restriction 27 imposed by the board, a regulation adopted under this title, or an ordinance adopted 28 under AS 04.21.010; or 29 (11) violation by an agent or employee of a licensee of a provision of 30 this title, a condition or restriction imposed by the board, a regulation adopted under 31 this title, or an ordinance adopted under AS 04.21.010, if the licensee is found by the

01 board to have either knowingly allowed the violation or to have recklessly or with 02 criminal negligence failed to act in accordance with the duty prescribed under 03 AS 04.21.030 with the result that the agent or employee violates the law, condition or 04 restriction, regulation, or ordinance. 05 * Sec. 40. AS 04.11.395 is amended to read: 06 Sec. 04.11.395. Board imposed conditions or restrictions. The board may, in 07 the best interests of the public, impose conditions or restrictions on a license, 08 endorsement, or permit issued under this chapter. 09 * Sec. 41. AS 04.11.400(a) is amended to read: 10 (a) Except as provided in (d) - (k) of this section and AS 04.11.405, a new 11 license may not be issued and the board may prohibit relocation of an existing license 12 (1) outside an established village, incorporated city, unified 13 municipality, or organized borough if, after the issuance or relocation, there would be 14 (A) more than one restaurant or eating place license for each 1,500 population or 15 fraction of that population, or (B) more than one license of each other type, including 16 licenses that have been issued under (d) or (e) of this section, for each 3,000 17 population or fraction of that population, in a radius of five miles of the licensed 18 premises, excluding the populations of established villages, incorporated cities, unified 19 municipalities, and organized boroughs that are wholly or partly included within the 20 radius; 21 (2) inside an established village, incorporated city, or unified 22 municipality if, after the issuance or relocation, there would be inside the established 23 village, incorporated city, or unified municipality 24 (A) more than one restaurant or eating place license for each 25 1,500 population or fraction of that population; or 26 (B) more than one license of each other type, including licenses 27 that have been issued under (d) or (e) of this section, for each 3,000 population 28 or fraction of that population; 29 (3) inside an organized borough but outside an established village or 30 incorporated city located within the borough if, after the issuance or relocation, there 31 would be inside the borough, but outside the established villages and incorporated

01 cities located within the borough, 02 (A) more than one restaurant or eating place license for each 03 1,500 population or fraction of that population; or 04 (B) more than one license of each other type, including licenses 05 that have been issued under (d) or (e) of this section, for each 3,000 population 06 or fraction of that population excluding the population of those established 07 villages that have adopted a local option under AS 04.11.491(b)(1), (3), or (4), 08 and excluding the population of incorporated cities located within the 09 organized borough. 10 * Sec. 42. AS 04.11.400(a), as amended by sec. 41 of this Act, is amended to read: 11 (a) Except as provided in (f) and (k) [(d) - (k)] of this section and 12 AS 04.11.405, a new license may not be issued and the board may prohibit relocation 13 of an existing license 14 (1) outside an established village, incorporated city, unified 15 municipality, or organized borough if, after the issuance or relocation, in a radius of 16 five miles of the licensed premises, excluding the populations of established 17 villages, incorporated cities, unified municipalities, and organized boroughs that 18 are wholly or partly included within the radius, there would be 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 brewery retail, winery retail, or distillery 22 retail license for each 9,000 population or fraction of that population; or 23 (C) more than one license of each other type, except a type 24 listed in (i) of this section [INCLUDING LICENSES THAT HAVE BEEN 25 ISSUED UNDER (d) OR (e) OF THIS SECTION], for each 3,000 population 26 or fraction of that population [, IN A RADIUS OF FIVE MILES OF THE 27 LICENSED PREMISES, EXCLUDING THE POPULATIONS OF 28 ESTABLISHED VILLAGES, INCORPORATED CITIES, UNIFIED 29 MUNICIPALITIES, AND ORGANIZED BOROUGHS THAT ARE 30 WHOLLY OR PARTLY INCLUDED WITHIN THE RADIUS]; 31 (2) inside an established village, incorporated city, or unified

01 municipality if, after the issuance or relocation, there would be inside the established 02 village, incorporated city, or unified municipality 03 (A) more than one restaurant or eating place license for each 04 1,500 population or fraction of that population; [OR] 05 (B) more than one brewery retail, winery retail, or distillery 06 retail license for each 9,000 population or fraction of that population; or 07 (C) more than one license of each other type, except a type 08 listed in (i) of this section [INCLUDING LICENSES THAT HAVE BEEN 09 ISSUED UNDER (d) OR (e) OF THIS SECTION], for each 3,000 population 10 or fraction of that population; 11 (3) inside an organized borough but outside an established village or 12 incorporated city located within the borough if, after the issuance or relocation, there 13 would be inside the borough, but outside the established villages and incorporated 14 cities located within the borough, excluding the population of those established 15 villages that have adopted a local option under AS 04.11.491(b)(1) or (3), and 16 excluding the population of incorporated cities located within the organized 17 borough; 18 (A) more than one restaurant or eating place license for each 19 1,500 population or fraction of that population; [OR] 20 (B) more than one brewery retail, winery retail, or distillery 21 retail license for each 9,000 population or fraction of that population; or 22 (C) more than one license of each other type, except a type 23 listed in (i) of this section [INCLUDING LICENSES THAT HAVE BEEN 24 ISSUED UNDER (d) OR (e) OF THIS SECTION], for each 3,000 population 25 or fraction of that population [EXCLUDING THE POPULATION OF THOSE 26 ESTABLISHED VILLAGES THAT HAVE ADOPTED A LOCAL OPTION 27 UNDER AS 04.11.491(b)(1), (3), OR (4), AND EXCLUDING THE 28 POPULATION OF INCORPORATED CITIES LOCATED WITHIN THE 29 ORGANIZED BOROUGH]. 30 * Sec. 43. AS 04.11.400(i) is repealed and reenacted to read: 31 (i) This section does not apply to a

01 (1) brewery manufacturer license issued under AS 04.09.020; 02 (2) winery manufacturer license issued under AS 04.09.030; 03 (3) distillery manufacturer license issued under AS 04.09.040; 04 (4) general wholesale license issued under AS 04.09.100; 05 (5) limited wholesale brewed beverage and wine license under 06 AS 04.09.110; 07 (6) outdoor recreation lodge license issued under AS 04.09.280; 08 (7) destination resort license issued under AS 04.09.300; 09 (8) beverage dispensary tourism license issued under AS 04.09.340; 10 (9) seasonal restaurant or eating place tourism license issued under 11 AS 04.09.350; 12 (10) winery direct shipment license issued under AS 04.09.360; 13 (11) conditional contractor's permit issued under AS 04.09.690. 14 * Sec. 44. AS 04.11.400(k) is amended to read: 15 (k) The board may allow the relocation of an existing beverage dispensary 16 license under AS 04.09.200 or former AS 04.11.090 to a restaurant, eating place, or 17 hotel, motel, resort, or similar business that contains a restaurant or eating place, or of 18 an existing package store license under AS 04.09.230 or former AS 04.11.150, in a 19 borough with a population of 50,000 [60,000] or more [IF THE GOVERNING BODY 20 OF THE BOROUGH APPROVES THE RELOCATION. HOWEVER, IF THE 21 RELOCATION OF THE LICENSE IS] into or within an incorporated city in the 22 borough. The [, THE] board may not approve the relocation unless, at the time of 23 application, the existing number of issued licenses of the type under consideration 24 for relocation located within the borough exceeds the maximum allowed under 25 (a) of this section and the governing bodies of both the borough and the incorporated 26 city approve the relocation. The board may allow not more than three relocations into 27 each city [IN A BOROUGH] under this subsection each decade. In this subsection, 28 "decade" means each 10-year period beginning April 1 in a year ending in zero. 29 * Sec. 45. AS 04.11 is amended by adding a new section to read: 30 Sec. 04.11.405. Petition for additional restaurant or eating place licenses 31 for certain local governing bodies. (a) A first class city, a home rule city, or a unified

01 municipality may submit a resolution to the board, adopted by its legislative body, 02 petitioning the board for the issuance of additional restaurant or eating place licenses 03 under AS 04.11.100 that exceed the limits under AS 04.11.400(a) in accordance with 04 this section. 05 (b) The board, following a public hearing, may issue one or more additional 06 restaurant or eating place licenses under AS 04.11.100, within the boundaries of the 07 municipality, if the board finds that 08 (1) the municipality 09 (A) serves as a center for commercial activity within and 10 outside the boundaries of the municipality by providing goods and services to a 11 population that is greater than the permanent resident population within the 12 boundaries of the municipality; 13 (B) maintains a local law enforcement department; 14 (C) exercises planning and land-use authority; and 15 (D) at the time of the petition, meets or exceeds the maximum 16 limit under AS 04.11.400(a) for restaurant or eating place licenses issued under 17 AS 04.11.100; 18 (2) the number of additional licenses does not exceed the number of 19 additional licenses requested by the municipality in the petition; and 20 (3) granting the additional licenses is in the public interest. 21 (c) A resolution submitted by a municipality under (a) of this section must 22 include 23 (1) information demonstrating that the petitioner meets the criteria in 24 (b) of this section; 25 (2) the most recent estimate of the number of people who claim 26 residency or work outside the boundaries of the municipality and who are served by 27 the municipality, including the 28 (A) population located outside the boundaries of the 29 municipality that relies on the municipality for goods and services; 30 (B) visitor population; and 31 (C) nonresident worker population that resides in the

01 municipality, but that is not counted in the latest federal or state census for the 02 municipality; 03 (3) the number of existing restaurant or eating place licenses 04 (A) within the boundaries of the municipality; 05 (B) in a geographic area that the municipality serves under (2) 06 of this subsection; 07 (4) information showing that the number of additional licenses 08 requested does not exceed one license for each 1,500 population of the population 09 identified under (2) of this subsection; and 10 (5) additional justification, as necessary, to demonstrate that granting 11 of the additional licenses is in the public interest. 12 (d) If the board grants a petition for additional restaurant or eating place 13 licenses under this section to a municipality, the board may not authorize additional 14 restaurant or eating place licenses to the same municipality under this section for the 15 following 10 years. 16 * Sec. 46. AS 04.11.405(a), as amended by sec. 45 of this Act, is amended to read: 17 (a) A first class city, a home rule city, or a unified municipality may submit a 18 resolution to the board, adopted by its legislative body, petitioning the board for the 19 issuance of additional restaurant or eating place licenses under AS 04.09.210 20 [AS 04.11.100] that exceed the limits under AS 04.11.400(a) in accordance with this 21 section. 22 * Sec. 47. AS 04.11.405(b), as amended by sec. 45 of this Act, is amended to read: 23 (b) The board, following a public hearing, may issue one or more additional 24 restaurant or eating place licenses under AS 04.09.210 [AS 04.11.100], within the 25 boundaries of the municipality, if the board finds that 26 (1) the municipality 27 (A) serves as a center for commercial activity within and 28 outside the boundaries of the municipality by providing goods and services to a 29 population that is greater than the permanent resident population within the 30 boundaries of the municipality; 31 (B) maintains a local law enforcement department;

01 (C) exercises planning and land-use authority; and 02 (D) at the time of the petition, meets or exceeds the maximum 03 limit under AS 04.11.400(a) for restaurant or eating place licenses issued under 04 AS 04.09.210 [AS 04.11.100]; 05 (2) the number of additional licenses does not exceed the number of 06 additional licenses requested by the municipality in the petition; and 07 (3) granting the additional licenses is in the public interest. 08 * Sec. 48. AS 04.11.430 is amended to read: 09 Sec. 04.11.430. Person and location. (a) Each license shall be issued to a 10 specific individual or individuals, to a partnership, including a limited partnership, to a 11 limited liability organization, or to a corporation. If the license is issued to a 12 corporation or a limited liability organization, the registered agent of the corporation 13 or limited liability organization may [MUST] be either an individual resident of the 14 state or a domestic corporation authorized to transact business in this state whose 15 business office is the same as the registered office. 16 (b) Except for a license authorizing the sale of alcoholic beverages on a 17 common carrier, a specific location shall be indicated on the license or permit as the 18 licensed premises, the principal address of which shall be indicated on the license or 19 permit. The mailing address, telephone number, and electronic mailing address of a 20 licensee or, if the licensee is a corporation, the address, telephone number, and 21 electronic mailing address of the registered office of the corporation must be kept 22 current and on file in the main office of the board. 23 * Sec. 49. AS 04.11.450(b) is amended to read: 24 (b) A person who is a representative or owner of a wholesale business 25 licensed under AS 04.09.100 or 04.09.110 [, BREWERY, WINERY, BOTTLING 26 WORKS, OR DISTILLERY] may not be issued, solely or together with others, a 27 manufacturer license issued under AS 04.09.020 - 04.09.040, or a retail license 28 issued under AS 04.09.200 - 04.09.360 [BEVERAGE DISPENSARY LICENSE, A 29 RESTAURANT OR EATING PLACE LICENSE, OR PACKAGE STORE 30 LICENSE. A HOLDER OF A BEVERAGE DISPENSARY LICENSE MAY BE 31 ISSUED A BREWPUB LICENSE, SUBJECT TO THE PROVISIONS OF

01 AS 04.11.135. THE PROHIBITION AGAINST ISSUANCE OF A RESTAURANT 02 OR EATING PLACE LICENSE IMPOSED UNDER THIS SUBSECTION DOES 03 NOT APPLY TO A RESTAURANT OR EATING PLACE LICENSE ISSUED ON 04 OR BEFORE OCTOBER 1, 1996 OR A RESTAURANT OR EATING PLACE 05 LICENSE ISSUED UNDER AN APPLICATION FOR A RESTAURANT OR 06 EATING PLACE LICENSE APPROVED ON OR BEFORE OCTOBER 1, 1996]. 07 * Sec. 50. AS 04.11.450(e) is amended to read: 08 (e) A holder of either a general wholesale license or a limited wholesale 09 brewed [MALT] beverage and wine license may not be employed by or act as the 10 agent or employee of the holder of a manufacturer [BEVERAGE DISPENSARY OR 11 PACKAGE STORE] license under AS 04.09.020 or 04.09.040 or a retail license 12 under AS 04.09.200 - 04.09.360. 13 * Sec. 51. AS 04.11.450 is amended by adding new subsections to read: 14 (g) The holder of a manufacturer license that annually produces in total 15 300,000 barrels or more of brewed beverages, 50,000 nine-liter-equivalent cases or 16 more of wine, or 50,000 nine-liter-equivalent cases or more of distilled spirits may not 17 be issued, solely or together with others, a license under AS 04.09.100 - 04.09.360. 18 (h) For purposes of calculating the volume that the holder of a manufacturer 19 license produces under this section, the volume of production must include all 20 production by 21 (1) the holder of the manufacturer's license; and 22 (2) an officer, director, agent, employee, or affiliate of the holder; in 23 this paragraph, "affiliate" means a person that directly or indirectly, through one or 24 more intermediaries, controls, or is controlled by, or is under common control with, a 25 corporation. 26 * Sec. 52. AS 04.11.460 is amended by adding a new subsection to read: 27 (d) This section does not apply to a winery direct shipment license issued 28 under AS 04.09.360. 29 * Sec. 53. AS 04.11.470 is amended to read: 30 Sec. 04.11.470. Objection. A person may object to an application for issuance, 31 renewal, transfer of location, or transfer to another person of a license, for issuance,

01 renewal, or transfer to another person of a license with one or more 02 endorsements, for issuance of an endorsement or for issuance of a permit, by 03 serving upon the applicant and the board the reasons for the objection. The board shall 04 consider the objections and testimony received at a hearing conducted under 05 AS 04.11.510(b)(2) when it considers the application. An objection and the record of a 06 hearing conducted under AS 04.11.510(b)(2) shall be retained as part of the board's 07 permanent record of its review of the application. 08 * Sec. 54. AS 04.11.480(a) is amended to read: 09 (a) A local governing body may protest the issuance, renewal, relocation, or 10 transfer to another person of a license, issuance, renewal, or transfer to another 11 person of a license with one or more endorsements, or issuance of an 12 endorsement by sending the board and the applicant a protest and the reasons for the 13 protest within 60 days of the date [RECEIPT FROM THE BOARD] of the notice of 14 filing of the application. A protest received after the 60-day period may not be 15 accepted by the board, and in no event may a protest cause the board to reconsider an 16 approved renewal, relocation, or transfer. The local governing body may protest the 17 continued operation of a license or endorsement during the second year of the 18 biennial license period by sending the board and the licensee a protest and the reasons 19 for the protest by January 31 of the second year of the license. The procedures for 20 action on a protest of continued operation of a license or endorsement are the same as 21 the procedures for action on a protest of a renewal application. The board shall 22 consider a protest and testimony received at a hearing conducted under 23 AS 04.11.510(b)(2) or (4) when it considers the application or continued operation, 24 and the protest and the record of the hearing conducted under AS 04.11.510(b)(2) or 25 (4) shall be kept as part of the board's permanent record of its review. If an application 26 or continued operation is protested, the board shall deny the application or continued 27 operation unless the board finds that the protest is arbitrary, capricious, and 28 unreasonable. 29 * Sec. 55. AS 04.11.480(b) is amended to read: 30 (b) If the permanent residents residing outside of but within two miles of an 31 incorporated city or an established village wish to protest the issuance, renewal, or

01 transfer of a license or a license with one or more endorsements within the city or 02 village, they shall file with the board a petition meeting the requirements of 03 AS 04.11.510(b)(3) requesting a public hearing not later than [WITHIN] 30 days 04 after [OF] the posting of notice required under AS 04.11.310, or by December 31 of 05 the year application is made for renewal of a license. The board shall consider 06 testimony received at a hearing conducted under AS 04.11.510(b)(3) when it considers 07 the application, and the record of a hearing conducted under AS 04.11.510(b)(3) shall 08 be retained as part of the board's permanent record of its review of the application. 09 * Sec. 56. AS 04.11.480(c) is amended to read: 10 (c) A local governing body may recommend that a license be issued, renewed, 11 relocated, or transferred, or that a license with one or more endorsements be 12 issued, renewed, or transferred to another person, with conditions. The board shall 13 consider recommended conditions and testimony received at a hearing conducted 14 under AS 04.11.510(b)(2) or (4) when it considers the application or continued 15 operation, and the recommended conditions and the record of the hearing conducted 16 under AS 04.11.510(b)(2) or (4) shall be kept as part of the board's permanent record 17 of its review. If the local governing body recommends conditions, the board shall 18 impose the recommended conditions unless the board finds that the recommended 19 conditions are arbitrary, capricious, or unreasonable. If a condition recommended by a 20 local governing body is imposed on a licensee, the local governing body shall assume 21 responsibility for monitoring compliance with the condition, except as otherwise 22 provided by the board. 23 * Sec. 57. AS 04.11.491(a) is amended to read: 24 (a) If a majority of the persons voting on the question vote to approve the 25 option, a municipality shall adopt a local option to prohibit 26 (1) the sale of alcoholic beverages; 27 (2) the sale of alcoholic beverages except by one or more of the 28 following listed on the ballot: 29 (A) a restaurant or eating place licensee; 30 (B) a beverage dispensary licensee; 31 (C) a package store licensee;

01 (D) a caterer holding a beverage dispensary caterer's permit 02 under AS 04.09.610 [AS 04.11.230] to sell alcoholic beverages at a site within 03 the municipality who is also licensed under a beverage dispensary license for 04 premises outside of the municipality; 05 (E) a winery manufacturer licensee; [OR] 06 (F) a winery manufacturer licensee, except that sales may 07 occur only to a person licensed under this title or in another state or country; or 08 (G) an outdoor recreation lodge; 09 (3) the sale of alcoholic beverages except on premises operated by the 10 municipality and under a type of licensed premises listed on the ballot, that may 11 include one or more of the following: 12 (A) a restaurant or eating place license; 13 (B) a beverage dispensary license; or 14 (C) a package store license; 15 (4) the sale and importation of alcoholic beverages; or 16 (5) the sale, importation, and possession of alcoholic beverages. 17 * Sec. 58. AS 04.11.491(b) is amended to read: 18 (b) If a majority of the persons voting on the question vote to approve the 19 option, an established village shall exercise a local option to prohibit 20 (1) the sale of alcoholic beverages; 21 (2) the sale of alcoholic beverages except by one or more of the 22 following listed on the ballot: 23 (A) a restaurant or eating place licensee; 24 (B) a beverage dispensary licensee; 25 (C) a package store licensee; 26 (D) a caterer holding a beverage dispensary caterer's permit 27 under AS 04.09.610 [AS 04.11.230] to sell alcoholic beverages at a site within 28 the established village who is also licensed under a beverage dispensary license 29 for premises outside of the established village; 30 (E) a winery manufacturer licensee; [OR] 31 (F) a winery manufacturer licensee, except that sales may

01 occur only to a person licensed under this title or in another state or country; or 02 (G) an outdoor recreation lodge; 03 (3) the sale and importation of alcoholic beverages; or 04 (4) the sale, importation, and possession of alcoholic beverages. 05 * Sec. 59. AS 04.11.491(d) is amended to read: 06 (d) The ballot for an election on the option set out in (a)(2)(A), (a)(3)(A), or 07 (b)(2)(A) of this section must include a summary explanation of the authority to sell 08 alcoholic beverages given to a restaurant or eating place under AS 04.09.210(a) 09 [AS 04.11.100(a)]. The ballot for an election on the option set out in (a)(2)(B) or (D), 10 (a)(3)(B), or (b)(2)(B) or (D) of this section must include a statement that a beverage 11 dispensary license is commonly known as a "bar" and a summary explanation of the 12 authority to sell alcoholic beverages given to a beverage dispensary licensee under 13 AS 04.09.200 [AS 04.11.090(a)]. The ballot for an election on the option set out in 14 (a)(2)(C), (a)(3)(C), or (b)(2)(C) of this section must include a statement that a 15 package store license is commonly known as a "liquor store" and a summary 16 explanation of the authority to sell alcoholic beverages given to a package store 17 licensee under AS 04.09.230 [AS 04.11.150(a)]. 18 * Sec. 60. AS 04.11.491(g) is amended to read: 19 (g) If a municipality or established village has adopted a local option under 20 (a)(1), (2), (3), or (4), or (b)(1), (2), or (3) of this section, the municipality or 21 established village, as part of the local option question or questions placed before the 22 voters, may 23 (1) adopt an amount of alcoholic beverages that may be imported that 24 is less than the amounts set out in AS 04.09.460(e) [AS 04.11.150(g)]; 25 (2) adopt an amount of alcoholic beverages that would give rise to a 26 presumption that the person possessed the alcoholic beverages for sale; the amounts 27 adopted under this paragraph may be lower than those set out in AS 04.11.010(c) [; 28 (3) OPT TO NOT APPLY A CLASS C FELONY TO VIOLATIONS 29 OF AS 04.16.051 THAT APPLY SOLELY BY REASON OF THE MUNICIPALITY 30 OR ESTABLISHED VILLAGE ADOPTING A LOCAL OPTION UNDER THIS 31 SECTION].

01 * Sec. 61. AS 04.11.520 is amended to read: 02 Sec. 04.11.520. Notice to local governing body. After receipt of an 03 application for the issuance or renewal of a license, the renewal of a license with 04 one or more endorsements, the transfer of a license or a license with one or more 05 endorsements to another person or a new location, or the issuance of an 06 endorsement from within [(1)] an established village, [(2)] an incorporated city, [(3)] 07 an organized borough, or [(4)] a unified municipality, the board shall notify 08 [TRANSMIT WRITTEN NOTICE TO] the local governing body in writing within 10 09 business days so that the local governing body may protest under AS 04.11.480. 10 * Sec. 62. AS 04.11.535(a) is amended to read: 11 (a) If, in a proceeding to suspend or revoke a license, endorsement, or permit 12 under AS 04.11.370(a)(5), the board finds that a sentencing report, record of 13 conviction, or judgment sent to the board under AS 12.55.025(b) or a report prepared 14 by the investigating or arresting officers in connection with the violation, contains 15 information that if uncontradicted or unexplained would provide a ground for 16 suspension or revocation under AS 04.11.370(a)(5), the licensee or permittee has the 17 burden of proof to establish that the licensee or permittee neither knowingly allowed 18 the violation nor recklessly or with criminal negligence failed to act in accordance 19 with the duty prescribed under AS 04.21.030. 20 * Sec. 63. AS 04.11.537 is amended to read: 21 Sec. 04.11.537. Application of precedent. In determining whether issuance, 22 renewal, transfer, relocation, suspension, or revocation of a license or the issuance, 23 renewal, transfer to another person, suspension, or revocation of an endorsement 24 is in the best interests of the public, the board need not conform to or distinguish its 25 decision from any action it has taken in the past on applications presenting similar 26 facts, but may instead base its decision only on the particular facts before it. 27 * Sec. 64. AS 04.11.540 is amended to read: 28 Sec. 04.11.540. License, endorsement, and conditional contractor's permit 29 renewal and expiration. Notwithstanding AS 04.11.680, an application for renewal 30 of a license, endorsement, or a conditional contractor's permit under 31 AS 04.09.690 issued for the two calendar years ending December 31 or of a seasonal

01 license issued for parts of those calendar years may be submitted up until the next 02 February 28. If a complete application for renewal has not been filed by February 28 03 or the required fees and the penalty fees have not been paid by that date, the license, 04 endorsement, or conditional contractor's permit expires at 12:00 midnight 05 February 28. A new license may not be issued to the holder of an expired license for 06 the same premises except on proof satisfactory to the board of good cause for the 07 failure to file and pay. 08 * Sec. 65. AS 04.11.560(b) is amended to read: 09 (b) A decision by the board relating to the issuance, renewal, transfer, 10 relocation, suspension, or revocation of a license or an endorsement under this title 11 may be appealed to the superior court under AS 44.62.560. 12 * Sec. 66. AS 04.11.570 is amended to read: 13 Sec. 04.11.570. Refund and forfeiture of fees. (a) If an application for a 14 license or endorsement is denied, the board shall refund the license fee less the 15 application fee. 16 (b) A license or endorsement fee may not be refunded after the license or 17 endorsement has been issued unless the board determines it has erred in the issuance 18 through no fault of the applicant. 19 (c) If a license, endorsement, or permit is revoked on grounds that 20 statements made in the application are untrue, the [LICENSE] fee paid by the 21 applicant is forfeited to the state. 22 * Sec. 67. AS 04.11.580(b) is amended to read: 23 (b) The licensee shall surrender a current license to the board not later than 24 [WITHIN] 10 days after the loss or vacation of the licensed premises. 25 * Sec. 68. AS 04.11.590(a) is amended to read: 26 (a) Money collected from licenses, endorsements, permits, and civil 27 penalties [FINES] under this title shall be transferred by the board to the Department 28 of Commerce, Community, and Economic Development and deposited in the general 29 fund. 30 * Sec. 69. AS 04.11.610 is amended to read: 31 Sec. 04.11.610. Allocation [REFUND] to municipalities. (a) An amount

01 equal to the sum of the biennial [BIENNIAL] license fees, excluding annual 02 wholesale fees and biennial wholesale license fees, collected within a municipality 03 shall be allocated [REFUNDED] semi-annually to the municipality. 04 (b) If the officers of a municipality fail to actively enforce local ordinances, 05 this title, and laws of the United States and the state, and the regulations relating to 06 the manufacture and sale of alcoholic beverages in the state, or fail to provide the 07 director with a report of contacts with licensed establishments, educational 08 activities concerning this title and local ordinances, and violations of this title 09 occurring in the municipality, at the time and in the format as may be required 10 by regulation adopted by the board, the commissioner of commerce, community, 11 and economic development may deny the allocation [REFUND] provided for under 12 (a) of this section until the board finds the enforcement of the ordinances, laws, and 13 regulations is resumed or the report is provided. 14 (c) The Department of Commerce, Community, and Economic Development 15 shall recover any funds [AMOUNTS] erroneously allocated [REFUNDED] under (a) 16 of this section. The Department of Commerce, Community, and Economic 17 Development shall schedule repayments of erroneously allocated funds 18 [REFUNDED AMOUNTS] over a sufficient period of time to minimize financial 19 hardship to the municipality involved. 20 * Sec. 70. AS 04.11.630(b) is amended to read: 21 (b) A license, endorsement, or permit issued under this title shall be posted 22 within the licensed premises or designated premises so as to be easily available for 23 inspection upon request by a peace officer or other person during regular business 24 hours or during the time period specified on the permit. 25 * Sec. 71. AS 04.11.680 is amended to read: 26 Sec. 04.11.680. Duration of licenses, endorsements, and permits. (a) Upon 27 application [AND PAYMENT OF ONE-HALF OF THE BIENNIAL FEE], the board 28 may issue a seasonal license under this title that is effective for the intervals stated on 29 the license. [A SEASONAL LICENSE MAY NOT BE EFFECTIVE FOR MORE 30 THAN 12 MONTHS IN A TWO-YEAR PERIOD.] Otherwise, a license or 31 endorsement [ALL LICENSES] issued under this title and a conditional

01 contractor's permit issued under AS 04.09.690 is [OTHER THAN A RETAIL 02 STOCK SALE LICENSE ARE] effective for the two calendar years ending 03 December 31, unless a shorter period is prescribed by the board or by law. 04 (b) A permit issued under this title shall be for a specific time [THE] period 05 [PRESCRIBED BY THE BOARD]. The period shall be clearly designated on the 06 permit. 07 * Sec. 72. AS 04.16.010(c) is amended to read: 08 (c) A licensee, an agent, or employee may not permit a person to enter and a 09 person may not enter premises licensed under this title between the hours of 5:00 a.m. 10 and 8:00 a.m. each day, unless the person is 11 (1) on the premises to conduct business with the licensee, agent, or 12 employee, and the licensee, agent, or employee is in compliance with (a) and (b) 13 of this section; 14 (2) a common carrier with a common carrier dispensary license 15 under AS 04.09.260; 16 (3) [. THIS SUBSECTION DOES NOT APPLY TO COMMON 17 CARRIERS OR TO] an employee of the licensee who is on the premises to prepare 18 for the next day's business; 19 (4) performing maintenance or improvements authorized by the 20 licensee; 21 (5) [. A PERSON MAY ENTER OR REMAIN] on the premises [OF 22 A BONA FIDE RESTAURANT OR EATING PLACE LICENSED UNDER THIS 23 TITLE] to consume food or nonalcoholic beverages and the premises are covered 24 under a restaurant endorsement issued under AS 04.09.450. 25 * Sec. 73. AS 04.16.010 is amended by adding a new subsection to read: 26 (e) A person who violates (a), (b), or (c) of this section is guilty of a violation. 27 * Sec. 74. AS 04.16.015(a) is amended to read: 28 (a) On premises where alcoholic beverages are sold by the drink, a licensee or 29 a licensee's agent or employee may not 30 (1) offer or deliver, as a marketing device to the general public, free 31 alcoholic beverages to a patron, except as provided for the holder of a

01 manufacturer sampling endorsement under AS 04.09.410 or a package store 02 sampling endorsement under AS 04.09.490; 03 (2) deliver an alcoholic beverage to a person already possessing two or 04 more; 05 (3) sell, offer to sell, or deliver alcoholic beverages to a person or 06 group of persons at a price less than the price regularly charged for the beverages 07 during a consecutive seven-day period [THE SAME CALENDAR WEEK], except at 08 private functions not open to the general public; 09 (4) sell, offer to sell, or deliver an unlimited number of alcoholic 10 beverages to a person or group of persons during a set period of time for a fixed price; 11 (5) sell, offer to sell, or deliver alcoholic beverages to a person or 12 group of persons on any one day at prices less than those charged the general public 13 on that day, except at private functions not open to the general public; 14 (6) encourage or permit an organized game or contest on the licensed 15 premises that involves drinking alcoholic beverages or the awarding of alcoholic 16 beverages as prizes. 17 * Sec. 75. AS 04.16.015 is amended by adding a new subsection to read: 18 (e) A person who violates this section is guilty of a violation. 19 * Sec. 76. AS 04.16 is amended by adding a new section to read: 20 Sec. 04.16.017. Trade practices. (a) A person holding a license under 21 AS 04.09.020, 04.09.030, 04.09.040, 04.09.100, or 04.09.110 or engaged in the 22 alcoholic beverage industry in another state or country as a brewer, vintner, distiller, 23 or importer, or as an agent of a brewer, vintner, distiller, or importer, may not, except 24 as provided in regulations adopted by the board under (b) of this section, induce a 25 person holding a license under this title to 26 (1) operate as a tied house by inducing a retailer engaged in the sale of 27 alcoholic beverages to purchase products from an entity to the exclusion, in whole or 28 in part, of products sold or offered for sale by other entities by 29 (A) furnishing, giving, renting, lending, or selling to the retailer 30 equipment fixtures, signs, supplies, money, services, or other things of value, 31 except those excluded in regulation and determined to be not contrary to the

01 public interest or contrary to the intent of this subsection; 02 (B) paying or crediting the retailer for an advertising, display, 03 or distribution service; 04 (C) guaranteeing a loan or the repayment of a financial 05 obligation of the retailer; 06 (D) extending to the retailer credit for a period in excess of the 07 credit period usual and customary to the industry for the particular class of 08 transactions; or 09 (E) requiring the retailer to take and dispose of a certain quota 10 of the products; 11 (2) operate as an exclusive outlet by requiring that a retailer engaged in 12 the sale of alcoholic beverages purchase products from an entity, to the exclusion, in 13 whole or in part, of alcoholic beverages sold or offered for sale by other entities; 14 (3) purchase products from an entity to the exclusion, in whole or in 15 part, of products sold or offered for sale by other entities by 16 (A) commercial bribery; or 17 (B) offering or giving any bonus, premium, or compensation to 18 an officer, employee, or representative of the licensee; 19 (4) enter into an agreement for consignment sales, or to purchase, offer 20 to purchase, or contract to purchase products on consignment, under conditional sale, 21 or with the privilege of return on any basis other than a bona fide sale, or where part of 22 the transaction involves, directly or indirectly, the acquisition by an entity from the 23 licensee or the entity's agreement to acquire from the licensee other alcoholic 24 beverages, except that this paragraph does not apply to transactions involving solely 25 the return of merchandise for ordinary and usual commercial reasons arising after the 26 merchandise has been sold. 27 (b) The board shall adopt regulations providing exceptions to the practices 28 listed under (a) of this section that are 29 (1) consistent with federal law at the time of the effective date of sec. 30 76 of this Act; 31 (2) necessary to avoid practical difficulty or undue hardship on a

01 licensee; 02 (3) in the best interests of the public; and 03 (4) consistent with the requirements of this title. 04 (c) The board shall adopt regulations establishing administrative penalties for 05 a violation of this section. 06 (d) In this section, "commercial bribery," "consignment sales," "exclusive 07 outlet," and "tied house" have the meanings given in 27 U.S.C. 205 and regulations 08 adopted under that section. 09 * Sec. 77. AS 04.16.020 is amended by adding new subsections to read: 10 (d) A person who violates a provision of this section commits the offense of 11 unauthorized solicitation or purchase of alcoholic beverages. 12 (e) Unauthorized solicitation or purchase of alcoholic beverages is a violation 13 and is punishable by a fine of $100. 14 * Sec. 78. AS 04.16 is amended by adding a new section to read: 15 Sec. 04.16.022. Online sale and purchase of brewed beverages and distilled 16 spirits. (a) A licensee or a licensee's agent or employee may not sell or offer to sell 17 alcoholic beverages to the public online unless the licensee holds a winery direct 18 shipment license issued under AS 04.09.360 or a package store shipping endorsement 19 under AS 04.09.460. 20 (b) A person may not purchase alcoholic beverages online except from the 21 holder of a winery direct shipment license issued under AS 04.09.360 or a package 22 store shipping endorsement under AS 04.09.460. 23 (c) A person who violates (a) of this section is, upon conviction, guilty of a 24 class A misdemeanor. 25 (d) A person who violates (b) of this section is guilty of a violation. 26 * Sec. 79. AS 04.16.025(a) is amended to read: 27 (a) A person may not knowingly enter or remain on premises 28 (1) in which alcoholic beverages are manufactured, sold, offered for 29 sale, possessed for sale or barter, trafficked in, or bartered in violation of 30 (A) AS 04.09.060, 04.09.070, 04.09.145, 04.09.370, 04.09.380, 31 or AS 04.11.010; or

01 (B) a municipal ordinance adopted under AS 04.21.010(a) or 02 (b); or 03 (2) licensed under this title during hours in which the person's presence 04 on the premises is a violation of a municipal ordinance adopted under authority of 05 AS 04.16.010(d) providing for hours of closure that are outside the hours of closure 06 prescribed by AS 04.16.010(c). 07 * Sec. 80. AS 04.16.030 is amended by adding new subsections to read: 08 (c) A person who violates this section commits the offense of prohibited 09 conduct relating to a drunken person. 10 (d) Prohibited conduct relating to a drunken person is a violation, punishable 11 by a fine of $500. 12 (e) In addition to the penalty specified under (d) of this section, the holder of 13 the license is strictly and vicariously liable for a violation committed by an employee 14 or agent of the licensee on the licensed premises, punishable by an administrative 15 penalty of $250. Notwithstanding AS 04.11.370(a)(4) and (5) and AS 04.16.180(b)(1), 16 the board may not order suspension of the license for the first violation committed on 17 the licensed premises under this section. 18 (f) A licensee who knowingly allows an agent or employee of the licensee to 19 commit the offense of prohibited conduct relating to a drunken person under (c) of this 20 section commits the offense of failure to ensure compliance relating to a drunken 21 person. 22 (g) Failure to ensure compliance relating to a drunken person is a class A 23 misdemeanor. 24 * Sec. 81. AS 04.16.035 is amended to read: 25 Sec. 04.16.035. Possession of ingredients for homebrew in certain areas. A 26 person residing in an area that has adopted a local option under AS 04.11.491 [TO 27 PROHIBIT THE SALE, IMPORTATION, AND POSSESSION OF ALCOHOLIC 28 BEVERAGES UNDER AS 04.11.491(a)(5) OR (b)(4)] may not possess sugar, 29 artificial sugar, malt, yeast, or any other material or equipment with the intent to use 30 the material or equipment to create an alcoholic beverage. 31 * Sec. 82. AS 04.16.035 is amended by adding new subsections to read:

01 (b) A person who knowingly violates this section commits the crime of 02 possession of ingredients for homebrew. 03 (c) Possession of ingredients for homebrew is a class A misdemeanor. 04 * Sec. 83. AS 04.16.040 is amended to read: 05 Sec. 04.16.040. Access of drunken persons to licensed premises. A drunken 06 person may not knowingly enter or remain on licensed premises [LICENSED 07 UNDER THIS TITLE]. 08 * Sec. 84. AS 04.16.040 is amended by adding new subsections to read: 09 (b) A person who violates this section commits the offense of prohibited 10 access by a drunken person. 11 (c) Prohibited access by a drunken person is a violation. 12 * Sec. 85. AS 04.16.045 is amended by adding new subsections to read: 13 (b) A person who violates this section commits the offense of permitting 14 consumption not authorized under a license. 15 (c) Permitting consumption not authorized under a license is a violation. 16 * Sec. 86. AS 04.16.047 is amended by adding new subsections to read: 17 (d) A person who is restricted from purchasing alcohol under AS 04.16.160 18 who knowingly violates (a) of this section commits the offense of entering or 19 remaining on licensed premises. 20 (e) Entering or remaining on licensed premises is a class A misdemeanor. 21 * Sec. 87. AS 04.16.049(a) is amended to read: 22 (a) A person under 21 years of age may not knowingly enter or remain in 23 premises licensed under this title unless 24 (1) accompanied by a parent, guardian, or spouse who has attained 21 25 years of age; 26 (2) the person is allowed to enter and remain on [AT LEAST 16 27 YEARS OF AGE,] the premises under a restaurant endorsement issued under 28 AS 04.09.450 [ARE DESIGNATED BY THE BOARD AS A RESTAURANT FOR 29 THE PURPOSES OF THIS SECTION, AND THE PERSON ENTERS AND 30 REMAINS ONLY FOR DINING; 31 (3) THE PERSON IS UNDER 16 YEARS OF AGE, IS

01 ACCOMPANIED BY A PERSON OVER 21 YEARS OF AGE, THE PARENT OR 02 GUARDIAN OF THE UNDERAGED PERSON CONSENTS, THE PREMISES ARE 03 DESIGNATED BY THE BOARD AS A RESTAURANT FOR THE PURPOSES OF 04 THIS SECTION, AND THE PERSON ENTERS AND REMAINS ONLY FOR 05 DINING]; 06 (3) [(4)] the person is permitted on the premises under a club license 07 issued under AS 04.09.220(g) or former AS 04.11.110(g); or 08 (4) [(5)] otherwise provided under (c), (d), or (g) of this section. 09 * Sec. 88. AS 04.16.049(c) is amended to read: 10 (c) Notwithstanding any other provision in this section, a person 16 or 17 11 years of age may enter and remain within the licensed premises of a hotel or motel, 12 large resort, golf course, general wholesaler, limited brewed beverage and wine 13 wholesaler, common carrier dispensary, outdoor recreation lodge, or restaurant 14 [OR EATING PLACE] in the course of employment if (1) the employment does not 15 involve the serving, mixing, delivering, or dispensing of alcoholic beverages; (2) the 16 person has the written consent of a parent or guardian; and (3) an exemption from the 17 prohibition of AS 23.10.355 is granted by the Department of Labor and Workforce 18 Development. [THE BOARD, WITH THE APPROVAL OF THE GOVERNING 19 BODY HAVING JURISDICTION AND AT THE LICENSEE'S REQUEST, SHALL 20 DESIGNATE WHICH PREMISES ARE HOTELS, GOLF COURSES, 21 RESTAURANTS, OR EATING PLACES FOR THE PURPOSES OF THIS 22 SUBSECTION.] 23 * Sec. 89. AS 04.16.049(d) is amended to read: 24 (d) Notwithstanding any other provision in this section, a person 18, 19, or 20 25 years of age may be employed within the licensed premises of a hotel or motel, large 26 resort, golf course, general wholesaler, limited brewed beverage and wine 27 wholesaler, common carrier dispensary, outdoor recreation lodge, or restaurant 28 [OR EATING PLACE], may enter and remain within those premises for the purpose 29 of employment, but may not, in the course of employment, sell, serve, deliver, or 30 dispense alcoholic beverages. 31 * Sec. 90. AS 04.16.049 is amended by adding a new subsection to read:

01 (j) Notwithstanding any other provision in this section, a person under 21 02 years of age may be present on the licensed premises of a common carrier dispensary, 03 destination resort, or outdoor recreation lodge for the purpose of travel, travel lodging, 04 or outdoor recreation activities provided by the licensee if the person is 05 (1) at least 16 years of age; or 06 (2) under 16 years of age and a parent or legal guardian of the 07 underaged person consents. 08 * Sec. 91. AS 04.16.051(d) is repealed and reenacted to read: 09 (d) A person who, with criminal negligence, furnishes or delivers an alcoholic 10 beverage to a person under 21 years of age in violation of (a) of this section commits 11 the crime of furnishing or delivering to a minor. 12 * Sec. 92. AS 04.16.051 is amended by adding a new subsection to read: 13 (e) Furnishing or delivering to a minor is 14 (1) a violation and is punishable by a fine of $500, except as provided 15 in (2) of this subsection; 16 (2) a class C felony if the person who receives the alcoholic beverage 17 negligently causes serious physical injury to or the death of another person while 18 under the influence of the alcoholic beverage received in violation of this section; in 19 this paragraph, 20 (A) "negligently" means acting with civil negligence; and 21 (B) "serious physical injury" has the meaning given in 22 AS 11.81.900. 23 * Sec. 93. AS 04.16.052 is amended by adding new subsections to read: 24 (b) In addition to the penalty specified under (d) of this section, for a violation 25 committed by an employee or agent of the licensee on a licensed premises under this 26 section, the holder of the license is strictly liable and subject to an administrative 27 penalty of $250. Notwithstanding AS 04.11.370(a)(4) and (5) and AS 04.16.180(b)(1), 28 the board may not order suspension of the license for the first violation committed on 29 the licensed premises under this section. 30 (c) A person who violates (a) of this section commits the offense of licensee, 31 employee, or agent furnishing alcohol to a minor.

01 (d) Licensee, employee, or agent furnishing alcohol to a minor is a violation 02 and is punishable by a fine of $500. 03 (e) A licensee who knowingly allows an agent or employee of the licensee to 04 commit the offense of licensee, employee, or agent furnishing alcohol to a minor 05 under (c) of this section commits the offense of failure to ensure compliance relating 06 to furnishing alcohol to a minor. 07 (f) Failure to ensure compliance relating to furnishing alcohol to a minor is a 08 class A misdemeanor. 09 * Sec. 94. AS 04.16.055 is amended by adding new subsections to read: 10 (b) A person who knowingly rents a room in a hotel, motel, resort, or similar 11 business for the purpose of providing alcoholic beverages to a person under 21 years 12 of age commits the crime of renting a room for the purpose of providing alcoholic 13 beverages to a person under 21 years of age. 14 (c) Renting a room for the purpose of providing alcoholic beverages to a 15 person under 21 years of age is a violation and is punishable by a fine of $500. 16 * Sec. 95. AS 04.16.057(b) is amended to read: 17 (b) A person who violates this section is guilty of a violation and is 18 punishable by a fine of $500 [SHALL BE PUNISHED AS PROVIDED IN 19 AS 12.55]. 20 * Sec. 96. AS 04.16.060(e) is amended to read: 21 (e) A person under the age of 21 who is seeking to enter and remain in a 22 licensed premises under AS 04.16.049(a)(2) [OR (3)] may not misrepresent the 23 person's age or having obtained the consent of the parent or guardian required by that 24 section. 25 * Sec. 97. AS 04.16.060 is amended by adding new subsections to read: 26 (g) A person who violates (a) of this section commits the offense of purchase 27 by a person under 21 years of age. 28 (h) A person who violates (b) or (c) of this section commits the offense of 29 delivery to a person under 21 years of age. 30 (i) Purchase by a person under 21 years of age is a violation and is punishable 31 by a fine of $500.

01 (j) Delivery to a person under 21 years of age is a violation and is punishable 02 by a fine of $500. 03 (k) For a person under 21 years of age who commits an offense under (g) of 04 this section, the violation must be charged and filed with the court as a separate case 05 and may not be combined or joined with any other minor offense or criminal charge in 06 one action at the time of filing. A court may reduce the fine to $50 for a person who 07 has not more than one previous violation or to $250 for a person who has two or more 08 previous violations if the person provides the court, not later than six months after a 09 judgment of conviction is entered, with proof of completion of 10 (1) an alcohol safety action program or a juvenile alcohol safety action 11 program developed, designated, or approved by the Department of Health and Social 12 Services under AS 47.37; or 13 (2) a community diversion panel. 14 * Sec. 98. AS 04.16.080 is amended to read: 15 Sec. 04.16.080. Consumption [SALES OR CONSUMPTION] at school 16 events. A person may not [SELL OR] consume alcoholic beverages during a school 17 event at the site of the event. 18 * Sec. 99. AS 04.16.080 is amended by adding new subsections to read: 19 (b) A person who consumes an alcoholic beverage during a school event at the 20 site of the event commits the offense of consuming at a school event. 21 (c) Consuming at a school event is a violation and is punishable by a fine of 22 $100. 23 * Sec. 100. AS 04.16.090(c) is amended to read: 24 (c) In [FOR THE PURPOSES OF] this section, "consideration" includes 25 [BUT IS NOT LIMITED TO] cover charge, the sale of food, ice, mixers, or other 26 liquids used with alcoholic beverage drinks, [OR] the furnishing of glassware or other 27 containers for use in the consumption of alcoholic beverages, other charges for 28 access to the licensed premises, or other services or products provided on the 29 licensed premises. 30 * Sec. 101. AS 04.16.090 is amended by adding new subsections to read: 31 (d) A person who knowingly violates this section commits the crime of

01 maintaining a bottle club. 02 (e) Maintaining a bottle club is a class A misdemeanor. 03 * Sec. 102. AS 04.16.110 is amended by adding new subsections to read: 04 (b) A person who knowingly sells an alcoholic beverage in violation of (a) of 05 this section commits the crime of sale of a prohibited alcoholic beverage. 06 (c) Sale of a prohibited alcoholic beverage is a class A misdemeanor. 07 * Sec. 103. AS 04.16.120 is amended by adding new subsections to read: 08 (d) A person who removes an alcoholic beverage from licensed premises in 09 violation of (a) of this section and a person who brings an alcoholic beverage onto 10 licensed premises in violation of (b) of this section commits the offense of removal or 11 introduction of alcoholic beverages. 12 (e) Notwithstanding (a) of this section, the holder of a beverage dispensary 13 license under AS 04.09.200, the holder of a beverage dispensary tourism license under 14 AS 04.09.340, or the holder's employee may transport alcoholic beverages across 15 unlicensed portions of a hotel, motel, or large resort if the 16 (1) licensee holds an endorsement under AS 04.09.430 or 04.09.440; 17 and 18 (2) licensee or employee is walking directly from one licensed area of 19 the premises to another licensed area. 20 (f) Removal or introduction of alcoholic beverages is a violation and is 21 punishable by a fine of $100. 22 * Sec. 104. AS 04.16.125 is repealed and reenacted to read: 23 Sec. 04.16.125. Alcoholic beverages transported or delivered by common 24 carrier. (a) A common carrier may not transport or deliver alcoholic beverages to a 25 person in the state unless the board has approved the common carrier under (b) of this 26 section. 27 (b) A common carrier may apply to the board, on a form prescribed by the 28 board, for approval to transport and deliver alcoholic beverages to persons in the state. 29 The board shall approve an application if the common carrier certifies that it will meet 30 the requirements under (c) and (d) of this section. 31 (c) A common carrier delivering alcoholic beverages to a person in the state

01 shall ensure that the package containing alcoholic beverages is delivered directly to a 02 person who 03 (1) presents identification and acceptable proof of age under 04 AS 04.21.050 showing that the person is 21 years of age or older; and 05 (2) provides a signature acknowledging that the person received the 06 package. 07 (d) A common carrier approved by the board under (b) of this section shall 08 make records of shipments of alcoholic beverages to persons in the state available for 09 inspection and audit by the board. The board may require periodic reporting of 10 approved common carriers on a form prescribed by the board. 11 (e) The board shall maintain, periodically review, and make available for 12 public inspection a list of approved common carriers for transport and delivery of 13 alcoholic beverages to persons in the state. 14 (f) The board may remove a previously approved common carrier from the list 15 if the common carrier transports or delivers alcoholic beverages in violation of (c) or 16 (d) of this section. 17 (g) A person may use a common carrier to transport and deliver alcoholic 18 beverages into an area that has restricted the sale of alcoholic beverages under 19 AS 04.11.491(a)(1), (2), or (3) or (b)(1) or (2) if 20 (1) the shipping container holding the alcoholic beverages is clearly 21 labeled as containing alcoholic beverages and requiring a signature of a person at least 22 21 years of age upon delivery; and 23 (2) an itemized invoice showing the quantity and purchase value of 24 distilled spirits, wine, and brewed beverages is attached to the outside of the shipping 25 container. 26 (h) The requirements under (g) of this section do not apply to 27 (1) a person transporting 28 (A) two liters or less of wine; 29 (B) one gallon or less of brewed beverages; or 30 (C) one liter or less of distilled spirits; or 31 (2) the transportation of alcoholic beverages for use on premises

01 allowed under AS 04.11.491(a)(2) or (3) or (b)(2) or for use under a permit allowed 02 under AS 04.11.491(a)(2). 03 (i) A common carrier that has not been approved by the board to transport and 04 deliver alcoholic beverages and that transports or delivers alcoholic beverages into or 05 within the state commits the offense of unapproved common carrier transport or 06 delivery of alcoholic beverages. 07 (j) Unapproved common carrier transport or delivery of alcoholic beverages is 08 a violation and is punishable by a fine of $500. 09 (k) An approved common carrier that violates a provision under (c) or (d) of 10 this section commits the offense of common carrier noncompliance for transport or 11 delivery of alcoholic beverages. 12 (l) Common carrier noncompliance for transport or delivery of alcoholic 13 beverages is a violation. 14 (m) A person who knowingly violates (g) of this section commits the crime of 15 unauthorized transportation of alcoholic beverages by common carrier into a local 16 option area. 17 (n) Unauthorized transportation of alcoholic beverages by common carrier 18 into a local option area is a class A misdemeanor. 19 (o) In this section, 20 (1) "common carrier" means a motor vehicle, watercraft, aircraft, or 21 railroad car available for public hire to transport freight or passengers; 22 (2) "transport" has the meaning given in AS 04.11.499. 23 * Sec. 105. AS 04.16.130 is amended by adding new subsections to read: 24 (c) A person who violates this section commits the offense of unauthorized 25 storage of alcoholic beverages. 26 (d) Unauthorized storage of alcoholic beverages is a violation. 27 * Sec. 106. AS 04.16.140 is amended by adding new subsections to read: 28 (b) A person who knowingly violates (a) of this section commits the offense 29 of sale or consumption of an alcoholic beverage in a warehouse. 30 (c) Sale or consumption of an alcoholic beverage in a warehouse is a violation. 31 * Sec. 107. AS 04.16.150 is amended by adding new subsections to read:

01 (b) Except as provided under AS 04.16.030(f) and 04.16.052(e), a licensee 02 who knowingly violates (a) of this section commits the offense of failure to ensure 03 compliance. 04 (c) Failure to ensure compliance is a violation. 05 * Sec. 108. AS 04.16.160 is amended by adding new subsections to read: 06 (c) A person who knowingly fails to comply with a restriction on purchasing 07 alcoholic beverages in violation of (a) of this section commits the crime of failure to 08 comply with a restriction on purchasing alcoholic beverages. 09 (d) Failure to comply with a restriction on purchasing alcoholic beverages is a 10 class A misdemeanor. 11 * Sec. 109. AS 04.16.170 is amended to read: 12 Sec. 04.16.170. Source of alcoholic beverages. (a) Alcoholic beverages for 13 consumption by the purchaser may only [NOT] be sold by [UNLESS OBTAINED 14 FROM] a person licensed under this title. 15 (b) A person transporting alcoholic beverages into the state may not sell those 16 alcoholic beverages to a person not licensed under this title, unless the alcoholic 17 beverages are used for religious, industrial, pharmaceutical, or medical purposes, or as 18 allowed under AS 04.09.360. 19 * Sec. 110. AS 04.16.170 is amended by adding new subsections to read: 20 (c) A licensee who knowingly violates (a) or (b) of this section commits the 21 crime of sale of alcoholic beverages from or to an unlicensed person. 22 (d) Sale of alcoholic beverages from or to an unlicensed person is a class A 23 misdemeanor. 24 * Sec. 111. AS 04.16.172 is amended to read: 25 Sec. 04.16.172. Restrictions on purchase and sale of alcoholic beverages. A 26 person licensed under AS 04.09.200, 04.09.210, 04.09.220, 04.09.230, 04.09.270, 27 04.09.280, 04.09.290, 04.09.300, 04.09.310, 04.09.320, 04.09.330, 04.09.340, or 28 04.09.350 [AS 04.11.090, 04.11.100, 04.11.110, OR 04.11.150] may not purchase, 29 sell, or offer for sale an alcoholic beverage unless the alcoholic beverage being 30 purchased, sold, or offered for sale was obtained from a person licensed under 31 (1) AS 04.09.100 or 04.09.110 [AS 04.11.160] as a primary source of

01 supply for the alcoholic beverage being purchased, sold, or offered for sale; 02 (2) AS 04.09.230 [AS 04.11.150] and the alcoholic beverage being 03 purchased, sold, or offered for sale was obtained from a person licensed under 04 AS 04.09.100 or 04.09.110 [AS 04.11.160] as a primary source of supply; or 05 (3) AS 04.09.020, 04.09.030, or 04.09.040 [AS 04.11.130, 04.11.140, 06 OR 04.11.170]. 07 * Sec. 112. AS 04.16.172 is amended by adding new subsections to read: 08 (b) A licensee who knowingly violates (a) of this section commits the crime of 09 licensee obtaining alcoholic beverages from an unlicensed seller. 10 (c) Licensee obtaining alcoholic beverages from an unlicensed seller is a class 11 A misdemeanor. 12 * Sec. 113. AS 04.16.175 is amended by adding new subsections to read: 13 (c) A person who knowingly furnishes an alcoholic beverage to a player in 14 violation of (a) of this section commits the crime of furnishing an alcoholic beverage 15 in aid of a gambling enterprise. 16 (d) Furnishing an alcoholic beverage in aid of a gambling enterprise is a class 17 A misdemeanor. 18 * Sec. 114. AS 04.16.180(b) is amended to read: 19 (b) A suspension or revocation of a license ordered by the board under 20 AS 04.11.370(a)(4) and (5) shall be as follows: 21 (1) on first conviction, the license of the premises involved may not be 22 revoked, but, except as provided in AS 04.16.030 and 04.16.052, may be suspended 23 for not more than 45 days; 24 (2) on second conviction, the license of the premises involved may not 25 be revoked, but may be suspended for not more than 90 days; 26 (3) on third conviction, the license of the premises involved may be 27 suspended or revoked. 28 * Sec. 115. AS 04.16.180(e) is amended to read: 29 (e) In this section, 30 (1) "conviction" includes a conviction of a violation, a 31 misdemeanor, and a felony;

01 (2) [THE TERMS] "second conviction" and "third conviction" include 02 only convictions for violations that occur within five years after [OF] the first 03 conviction; the [. THE] terms refer to the cumulative number of convictions of a 04 licensee of any combination of violations of the provisions of this title, regulations 05 adopted under this title, or ordinances adopted under AS 04.21.010; [. THE TERMS] 06 "second conviction" and "third conviction" include a conviction of the agent or 07 employee of a licensee of a violation of a law, regulation, or ordinance if the 08 conviction constitutes a ground for suspension or revocation under 09 AS 04.11.370(a)(5). 10 * Sec. 116. AS 04.16.180 is amended by adding new subsections to read: 11 (f) In addition to the criminal penalties specified in this title and AS 12.55, a 12 holder of a license under this title who is convicted of a crime or offense involving the 13 violation of a provision of this title or a regulation adopted under this title is subject to 14 suspension or revocation of the license under this section and other administrative 15 penalties imposed by the board. For purposes of administrative penalties under this 16 subsection, each violation is a separate offense. 17 (g) The holder of a license subject to suspension or revocation under (b)(2) or 18 (3) of this section may request a hearing to petition the board to reduce the 19 administrative penalty. The board may reduce the administrative penalty if the 20 licensee shows, by a preponderance of the evidence, that 21 (1) the licensee complied with the alcohol server education course 22 requirement of AS 04.21.025 and adopted and enforced a compliance program and a 23 disciplinary program for agents and employees of the licensee; 24 (2) the licensee has a pattern and practice of exercising the degree of 25 care required under AS 04.16.030; 26 (3) the licensee posted warning signs as required under AS 04.21.065; 27 and 28 (4) in the case of a conviction for a violation of AS 04.16.030 or 29 04.16.052, the agent or employee convicted under AS 04.16.030 or 04.16.052 30 completed an alcohol server education course under AS 04.21.025. 31 * Sec. 117. AS 04.16.220(a) is amended to read:

01 (a) The following are subject to forfeiture: 02 (1) alcoholic beverages manufactured, sold, offered for sale, possessed 03 for sale, or bartered or exchanged for goods and services in this state in violation of 04 AS 04.09.060, 04.09.070, 04.09.145, 04.09.370, 04.09.380, or AS 04.11.010; 05 alcoholic beverages possessed, stocked, warehoused, or otherwise stored in violation 06 of AS 04.21.060; alcoholic beverages sold or offered for sale in violation of a local 07 option adopted under AS 04.11.491; alcoholic beverages transported into the state and 08 sold to persons not licensed under this chapter in violation of AS 04.16.170(b); 09 alcoholic beverages transported in violation of AS 04.16.125; 10 (2) materials and equipment used in the manufacture, sale, offering for 11 sale, possession for sale, or barter or exchange of alcoholic beverages for goods and 12 services in this state in violation of AS 04.09.060, 04.09.070, 04.09.145, 04.09.370, 13 04.09.380, or AS 04.11.010; materials and equipment used in the stocking, 14 warehousing, or storage of alcoholic beverages in violation of AS 04.21.060; materials 15 and equipment used in the sale or offering for sale of an alcoholic beverage in an area 16 in violation of a local option adopted under AS 04.11.491; 17 (3) aircraft, vehicles, or vessels used to transport or facilitate the 18 transportation of 19 (A) alcoholic beverages manufactured, sold, offered for sale, 20 possessed for sale, or bartered or exchanged for goods and services in this state 21 in violation of AS 04.09.060, 04.09.070, 04.09.145, 04.09.370, 04.09.380, or 22 AS 04.11.010; 23 (B) property stocked, warehoused, or otherwise stored in 24 violation of AS 04.21.060; 25 (C) alcoholic beverages imported into a municipality or 26 established village in violation of AS 04.11.499(a); 27 (4) alcoholic beverages found on licensed premises that do not bear 28 federal excise stamps if excise stamps are required under federal law; 29 (5) alcoholic beverages, materials, or equipment used in violation of 30 AS 04.16.175; 31 (6) money, securities, negotiable instruments, or other things of value

01 used in financial transactions or items of value purchased from the proceeds derived 02 from activity prohibited under AS 04.09.060, 04.09.070, 04.09.145, 04.09.370, 03 04.09.380, or AS 04.11.010 or in violation of a local option adopted under 04 AS 04.11.491; 05 (7) a firearm used in furtherance of a violation of this title. 06 * Sec. 118. AS 04.16.220(d) is amended to read: 07 (d) Property subject to forfeiture under (a) of this section may be forfeited 08 (1) upon conviction of a person for a violation of AS 04.09.060, 09 04.09.070, 04.09.145, 04.09.370, 04.09.380, AS 04.11.010, 04.11.499, AS 04.16.125, 10 AS 04.21.060, or AS 04.11.501 or an ordinance adopted under AS 04.11.501; or 11 (2) upon judgment by the superior court in a proceeding in rem that the 12 property was used in a manner subjecting it to forfeiture under (a) of this section. 13 * Sec. 119. AS 04.16.220(g) is amended to read: 14 (g) It is no defense in an in rem forfeiture proceeding brought under (d)(2) of 15 this section that a criminal proceeding is pending or has resulted in conviction or 16 acquittal of a person charged with violating AS 04.09.060, 04.09.070, 04.09.145, 17 04.09.370, 04.09.380, AS 04.11.010, 04.11.499, or AS 04.21.060. 18 * Sec. 120. AS 04.16.220(i) is amended to read: 19 (i) Upon conviction for a violation of AS 04.09.060, 04.09.070, 04.09.145, 20 04.09.370, 04.09.380, AS 04.11.010, or 04.11.499(a), if an aircraft, vehicle, or 21 watercraft is subject to forfeiture under (a) of this section, the court shall, subject to 22 remission to innocent parties under this section, 23 (1) order the forfeiture of an aircraft to the state; 24 (2) order the forfeiture of a vehicle or watercraft if 25 (A) the defendant has a prior felony conviction for a violation 26 of AS 11.41 or a similar law in another jurisdiction; 27 (B) the defendant is on felony probation or parole; 28 (C) the defendant has a prior conviction for violating 29 AS 04.11.010 or 04.11.499(a); or 30 (D) the quantity of alcohol transported in violation of this title 31 was twice the presumptive amounts in AS 04.11.010(c).

01 * Sec. 121. AS 04.21 is amended by adding a new section to read: 02 Sec. 04.21.012. Keg registration. (a) A person may not purchase an alcoholic 03 beverage in a keg or other container holding four or more gallons unless the person 04 provides proof that the person is over 21 years of age and completes and signs a 05 registration form. The purchaser of an alcoholic beverage in a keg or other container 06 holding four or more gallons may not remove or obliterate the temporary identifying 07 tag on the keg or container. 08 (b) A licensee who sells or offers for sale an alcoholic beverage in a keg or 09 other container holding four or more gallons shall require a purchaser to show 10 acceptable proof of age under AS 04.21.050(b) and sign the sworn statement on a 11 registration form. The licensee shall complete the registration form and affix a 12 temporary tag with a unique identifier to the keg or container before releasing the 13 container to the purchaser. The licensee shall retain a copy of the form for one year 14 and make the form available for inspection. 15 (c) The board shall prescribe a registration form for use by licensees and 16 purchasers. The board may approve for use a registration form adopted by a local 17 governing body. A registration form must include 18 (1) the name of the seller; 19 (2) the name of the purchaser; 20 (3) a description of the proof of age provided by the buyer, including 21 the identification number, if any; 22 (4) the unique identifier on the temporary tag attached to the keg or 23 container under (b) of this section. 24 (d) A licensee or an agent or employee of a licensee who sells alcoholic 25 beverages in a keg or other container holding four or more gallons without completing 26 a registration form or affixing a temporary identification tag to the keg or container 27 commits the crime of selling alcoholic beverages in an unregistered keg. 28 (e) A person who is not licensed under this title or the employee or agent of a 29 person who is not licensed under this title who possesses alcoholic beverages in a keg 30 or other container holding four or more gallons without a temporary identification tag 31 commits the crime of possessing alcoholic beverages in an unregistered keg.

01 (f) Selling alcoholic beverages in an unregistered keg is a violation. 02 (g) Possessing alcoholic beverages in an unregistered keg is a violation and is 03 punishable by a fine of $100. 04 * Sec. 122. AS 04.21.020(a) is amended to read: 05 (a) Except as provided under (b) and (d) of this section, a person who provides 06 alcoholic beverages to another person may not be held civilly liable for injuries 07 resulting from the intoxication of that person unless the person who provides the 08 alcoholic beverages holds a license authorized under AS 04.09.010 - 04.09.380 09 [AS 04.11.080 - 04.11.220] or is an agent or employee of [SUCH] a licensee and 10 (1) the alcoholic beverages are provided to a person under [THE AGE 11 OF] 21 years of age in violation of AS 04.16.051, unless the licensee, agent, or 12 employee secures in good faith from the person a signed statement, liquor 13 identification card, or driver's license meeting the requirements of AS 04.21.050(a) 14 and (b), that indicates that the person is 21 years of age or older; or 15 (2) the alcoholic beverages are provided to a drunken person in 16 violation of AS 04.16.030. 17 * Sec. 123. AS 04.21.020(b) is amended to read: 18 (b) A person who sells or barters an alcoholic beverage to another person in 19 violation of AS 04.09.060, 04.09.070, 04.09.145, 04.09.370, 04.09.380, or 20 AS 04.11.010 is strictly liable (1) to the recipient or another person for civil damages 21 if, while under the influence of the alcoholic beverage, the person receiving the 22 alcoholic beverage engages in conduct that results in civil damages and the recipient's 23 being under the influence of the alcoholic beverage substantially contributes to the 24 civil damages; and (2) for the cost to the state or a political subdivision of the state to 25 criminally prosecute a person who receives an alcoholic beverage from a person who 26 violates AS 04.11.010 if the prosecution results from the violation of AS 04.11.010 27 described in this subsection. 28 * Sec. 124. AS 04.21.025(a) is repealed and reenacted to read: 29 (a) As a condition of issuance or renewal of a license or conditional 30 contractor's permit and selling alcoholic beverages under a license or conditional 31 contractor's permit, the board shall require a licensee or permittee who sells or serves

01 alcoholic beverages and a licensee's or permittee's agents and employees who sell or 02 serve alcoholic beverages or check the identification of a patron to complete an 03 alcohol server education course approved by the board. This section applies only to a 04 conditional contractor's permit under AS 04.09.690 and the following licenses: 05 (1) brewery manufacturer license under AS 04.09.020 with a 06 manufacturer sampling endorsement; 07 (2) winery manufacturer license under AS 04.09.030 with a 08 manufacturer sampling endorsement; 09 (3) distillery manufacturer license under AS 04.09.040 with a 10 manufacturer sampling endorsement; 11 (4) beverage dispensary license under AS 04.09.200; 12 (5) restaurant or eating place license under AS 04.09.210; 13 (6) club license under AS 04.09.220; 14 (7) package store license under AS 04.09.230; 15 (8) pub license under AS 04.09.240; 16 (9) theater license under AS 04.09.250; 17 (10) sporting event license under AS 04.09.270; 18 (11) outdoor recreation lodge license under AS 04.09.280; 19 (12) golf course license under AS 04.09.290; 20 (13) destination resort license under AS 04.09.300; 21 (14) brewery retail license under AS 04.09.310; 22 (15) winery retail license under AS 04.09.320; 23 (16) distillery retail license under AS 04.09.330; 24 (17) beverage dispensary tourism license under AS 04.09.340; 25 (18) seasonal restaurant or eating place tourism license under 26 AS 04.09.350; 27 (19) a brewery license issued under former AS 04.11.130, if brewed 28 beverages are offered for sale to the public for consumption on or off the premises 29 under AS 04.09.020; 30 (20) a winery license issued under former AS 04.11.140, if wine is 31 offered for sale to the public for consumption on or off the premises under

01 AS 04.09.030; 02 (21) a distillery license issued under former AS 04.11.170, if distilled 03 beverages are offered for sale to the public for consumption on or off the premises 04 under AS 04.09.040. 05 * Sec. 125. AS 04.21.025(b) is amended to read: 06 (b) The subjects that are included in an approved alcohol server education 07 course shall be determined under regulations adopted by the board. In approving 08 alcohol server education courses, the board shall consider the needs of both urban and 09 rural licensees regarding access to an approved alcohol server education course. A 10 licensee, permittee, agent, or employee who sells or serves alcoholic beverages shall 11 keep the card described in (c) of this section or other proof acceptable to the board of 12 successful completion of an approved alcohol server education course on the licensed 13 premises during working hours. 14 * Sec. 126. AS 04.21.025(c) is amended to read: 15 (c) A licensee, permittee, agent, or employee shall complete the course 16 required under (a) of this section and pass a written test demonstrating an 17 understanding of the course subjects not more than 30 days after being licensed, 18 permitted, or employed. The course provider shall issue a card to each individual who 19 completes the course and passes the written test. A card issued under this subsection is 20 valid for three years from the date of issue. A licensee, permittee, agent, or employee 21 may renew a card issued under this section; to renew the card, the licensee, permittee, 22 agent, or employee must pass a written test demonstrating an understanding of the 23 course subjects. Notwithstanding the 30-day period for completing the course and 24 passing the written test under this subsection, a person may not sell or serve 25 alcoholic beverages or check the identification of a patron at a permitted event 26 under AS 04.09.600 - 04.09.690 unless the person possesses a valid card issued 27 before the event. 28 * Sec. 127. AS 04.21.025 is amended by adding new subsections to read: 29 (f) A person who violates (a) - (c) of this section commits the offense of 30 failure to comply with alcohol server education requirements. 31 (g) Failure to comply with alcohol server education requirements is a

01 violation. 02 * Sec. 128. AS 04.21.050(a) is amended to read: 03 (a) If a licensee or an agent or employee of the licensee questions or has 04 reason to question whether a person entering licensed premises, or ordering, 05 purchasing, attempting to purchase, or otherwise procuring or attempting to procure 06 alcoholic beverages, 07 (1) has attained the age of 21 years or is entering without consent in 08 violation of AS 04.16.049(a)(2) [AS 04.16.049(a)(3)] and has not attained the age of 09 16 years, that licensee, agent, or employee shall require the person to furnish proof of 10 age acceptable under (b) of this section or proof of consent in a form determined by 11 the board; if the person questioned does not furnish proof of age acceptable under (b) 12 of this section, or if a licensee, agent, or employee questions or has reason to question 13 the validity of the proof of age furnished, the licensee, employee, or agent shall require 14 the person to sign a statement that the person is over the age of 21 or 16 years, as 15 appropriate; this statement shall be made on a form prepared by and furnished to the 16 licensee by the board; 17 (2) is restricted from purchasing alcoholic beverages under 18 AS 04.16.160, the licensee, agent, or employee may, but has no duty or obligation to, 19 require the person to furnish proof acceptable under (b) of this section that the person 20 is not restricted from purchasing alcoholic beverages or require the person to sign a 21 statement that the person is not restricted from purchasing alcoholic beverages under 22 AS 04.16.160; this statement shall be made on a form prepared by and furnished to the 23 licensee by the board. 24 * Sec. 129. AS 04.21.060 is amended by adding new subsections to read: 25 (b) A licensee who stores alcoholic beverages elsewhere than on the licensed 26 premises and who fails to comply with (a)(1) - (3) of this section commits the offense 27 of unauthorized warehousing. 28 (c) Unauthorized warehousing is a violation. 29 * Sec. 130. AS 04.21.065(a) is repealed and reenacted to read: 30 (a) A holder of one of the following types of licenses or permits shall post on 31 the licensed or designated premises three separate warning signs as described in (b) of

01 this section: 02 (1) brewery manufacturer license under AS 04.09.020 with a 03 manufacturer sampling endorsement under AS 04.09.410; 04 (2) winery manufacturer license under AS 04.09.030 with a 05 manufacturer sampling endorsement under AS 04.09.410; 06 (3) distillery manufacturer license under AS 04.09.040 with a 07 manufacturer sampling endorsement under AS 04.09.410; 08 (4) beverage dispensary license under AS 04.09.200; 09 (5) restaurant or eating place license under AS 04.09.210; 10 (6) club license under AS 04.09.220; 11 (7) package store license under AS 04.09.230; 12 (8) pub license under AS 04.09.240; 13 (9) theater license under AS 04.09.250; 14 (10) common carrier dispensary license under AS 04.09.260; 15 (11) sporting event license under AS 04.09.270; 16 (12) outdoor recreation lodge license under AS 04.09.280; 17 (13) golf course license under AS 04.09.290; 18 (14) destination resort license under AS 04.09.300; 19 (15) brewery retail license under AS 04.09.310; 20 (16) winery retail license under AS 04.09.320; 21 (17) distillery retail license under AS 04.09.330; 22 (18) beverage dispensary tourism license under AS 04.09.340; 23 (19) seasonal restaurant or eating place tourism license under 24 AS 04.09.350; 25 (20) beverage dispensary caterer's permit under AS 04.09.610; 26 (21) restaurant caterer's dining permit under AS 04.09.620; 27 (22) club caterer's permit under AS 04.09.630; 28 (23) art exhibit event permit under AS 04.09.640; 29 (24) nonprofit organization event permit under AS 04.09.650; 30 (25) tasting event permit under AS 04.09.670; 31 (26) conditional contractor's permit under AS 04.09.690;

01 (27) another license or permit issued by the board authorizing 02 consumption of alcoholic beverages. 03 * Sec. 131. AS 04.21 is amended by adding new sections to read: 04 Sec. 04.21.072. Fines and other criminal penalties. (a) A violation under this 05 title, unless otherwise specified in the provision of this title defining the offense, is 06 punishable by a fine of $250. 07 (b) A misdemeanor or felony under this title, unless otherwise specified in the 08 provision of this title defining the offense, is punishable as provided in AS 12.55. 09 Sec. 04.21.074. Bail forfeiture schedule. The supreme court shall establish by 10 rule or order a schedule of bail amounts for violations under this title that allow the 11 disposition of a citation without a court appearance. The bail amount may not exceed 12 the maximum penalty prescribed by law for the violation. 13 Sec. 04.21.076. Suspension of fine or sentence. The court may not suspend a 14 fine for an offense other than a misdemeanor or felony under this title, or suspend 15 imposition or execution of sentence for an offense other than a misdemeanor or felony 16 under this title, unless otherwise expressly provided in this title. 17 * Sec. 132. AS 04.21.078 is amended to read: 18 Sec. 04.21.078. Court records of persons under 21 years of age. The Alaska 19 Court System may not publish on a publicly available website the court records of a 20 violation of AS 04.16.049, [OR] 04.16.050, 04.16.060(g), or a similar ordinance of a 21 municipality, if the violation was charged separately and was not joined with any other 22 minor offense or criminal charge at the time of filing. 23 * Sec. 133. AS 04.21.080(b)(6) is amended to read: 24 (6) "designated premises" means any or all designated portions of a 25 building or structure, rooms or enclosures in the building or structure, or real estate 26 leased, used, controlled, or operated by a licensee or permittee for the purpose for 27 which the license or permit is issued by the board at the location of the site for which 28 the license or permit is issued; 29 * Sec. 134. AS 04.21.080(b)(15) is amended to read: 30 (15) "licensed premises" means any or all designated portions of a 31 building or structure, rooms or enclosures in the building or structure, or real estate

01 leased, used, controlled, or operated by a licensee in the conduct of business for which 02 the licensee is licensed by the board at the specific address for which the license or an 03 endorsement to the license is issued; 04 * Sec. 135. AS 04.21.080(b) is amended by adding new paragraphs to read: 05 (21) "bona fide restaurant" means an establishment or a portion of an 06 establishment where, during all times alcoholic beverages are served or consumed, 07 (A) the patron's principal activity is consumption of food; and 08 (B) a variety of types of food items appropriate for meals is 09 prepared on site and available for sale as shown on a menu provided to patrons 10 and filed with the board; 11 (22) "brewed beverage" means an alcoholic beverage made by 12 fermenting cereal grains, including beer and malt beverages, sake, and kombucha; 13 (23) "calendar year" means the period beginning January 1 and ending 14 December 31; 15 (24) "cider" means a type of wine made primarily from fermented 16 apples, apple juice, or concentrate; 17 (25) "distilled spirit" means an alcoholic beverage that is first 18 fermented and then distilled; 19 (26) "golf course" means a course that is open to the public, having at 20 least nine holes and covering at least 2,950 yards; 21 (27) "kombucha" means a brewed beverage made from fermented tea 22 and containing at least one-half percent alcohol by volume; 23 (28) "mead" means a type of wine made primarily from honey; 24 (29) "sake" means a type of brewed beverage made primarily from 25 fermented rice; 26 (30) "school grounds" has the meaning given in AS 11.71.900; 27 (31) "wine" means an alcoholic beverage made from fermented grapes 28 or other fruit or honey. 29 * Sec. 136. AS 05.15.690(48) is amended to read: 30 (48) "vendor" means a business whose primary activity is not regulated 31 by this chapter but that

01 (A) is engaged in the sale of pull-tabs on behalf of a permittee; 02 (B) holds a business license under AS 43.70; and 03 (C) is an establishment holding a 04 (i) beverage dispensary license under AS 04.09.200 05 [AS 04.11.090] that has not been designated by the Alcoholic Beverage 06 Control Board under AS 04.16.049(a)(2) [AS 04.16.049(a)(2) - (3)], 07 has not been exempted by the Department of Labor and Workforce 08 Development under AS 04.16.049(c) and AS 23.10.355, and if the 09 establishment is a hotel, motel, resort, or similar business that caters to 10 the traveling public as a substantial part of its business, does not allow 11 the sale of pull-tabs in a dining room, banquet room, guest room, or 12 other public areas other than a room in which there is regularly 13 maintained a fixed counter or service bar that has plumbing 14 connections to permanent plumbing at which alcoholic beverages are 15 sold or served to members of the public for consumption; 16 (ii) package store license under AS 04.09.230 17 [AS 04.11.150]; 18 * Sec. 137. AS 09.65.315(b) is amended to read: 19 (b) A person licensed under AS 04.09.010 - 04.09.380 [AS 04.11.080 - 20 04.11.255], or an agent or employee of the person, is not liable for damages resulting 21 from a motor vehicle accident described under (a) of this section. A person or entity 22 that participates in making arrangements for transportation of a vehicle under (a) of 23 this section is not liable for damages resulting from a motor vehicle accident described 24 in (a) of this section. 25 * Sec. 138. AS 11.76.100(b) is amended to read: 26 (b) Notwithstanding the provisions of (a) of this section, a person who 27 maintains a vending machine is not in violation of (a)(3) of this section if the vending 28 machine is located 29 (1) on premises licensed as a beverage dispensary under AS 04.09.200 30 [AS 04.11.090], licensed as a club under AS 04.09.220 [AS 04.11.110], or licensed as 31 a package store under AS 04.09.230 [AS 04.11.150]; and

01 (A) as far as practicable from the primary entrance; and 02 (B) in a place that is directly and continually supervised by a 03 person employed on the licensed premises during the hours the vending 04 machine is accessible to the public; or 05 (2) in an employee break room or other controlled area of a private 06 work place that is not generally considered a public place and the room or area 07 contains a posted warning sign at least 11 inches by 14 inches indicating that 08 possession of tobacco by a person under 19 years of age is prohibited under 09 AS 11.76.105. 10 * Sec. 139. AS 11.76.107(a) is amended to read: 11 (a) A person commits the offense of failure to supervise a cigarette vending 12 machine if the person owns premises licensed as a beverage dispensary under 13 AS 04.09.200, [AS 04.11.090 OR] licensed as a club under AS 04.09.220, 14 [AS 04.11.110] or licensed as a package store under AS 04.09.230 [AS 04.11.150] and 15 with criminal negligence fails to have an employee supervise a vending machine on 16 those premises that dispenses cigarettes, cigars, tobacco, or products containing 17 tobacco as required by AS 11.76.100(b)(1)(B). 18 * Sec. 140. AS 12.62.400(a) is amended to read: 19 (a) To obtain a national criminal history record check for determining a 20 person's qualifications for a license, permit, registration, employment, or position, a 21 person shall submit the person's fingerprints to the department with the fee established 22 by AS 12.62.160. The department may submit the fingerprints to the Federal Bureau 23 of Investigation to obtain a national criminal history record check of the person for the 24 purpose of evaluating a person's qualifications for 25 (1) a license or conditional contractor's permit to manufacture, sell, 26 offer for sale, possess for sale or barter, traffic in, or barter an alcoholic beverage 27 under AS 04.09 [AS 04.11]; 28 (2) licensure as a mortgage lender, a mortgage broker, or a mortgage 29 loan originator under AS 06.60; 30 (3) admission to the Alaska Bar Association under AS 08.08; 31 (4) licensure as a collection agency operator under AS 08.24;

01 (5) a certificate of fitness to handle explosives under AS 08.52; 02 (6) licensure as a massage therapist under AS 08.61; 03 (7) licensure to practice nursing or certification as a nurse aide under 04 AS 08.68; 05 (8) certification as a real estate appraiser under AS 08.87; 06 (9) a position involving supervisory or disciplinary power over a minor 07 or dependent adult for which criminal justice information may be released under 08 AS 12.62.160(b)(9); 09 (10) a teacher certificate under AS 14.20; 10 (11) a registration or license to operate a marijuana establishment 11 under AS 17.38; 12 (12) licensure as a security guard under AS 18.65.400 - 18.65.490; 13 (13) a concealed handgun permit under AS 18.65.700 - 18.65.790; 14 (14) licensure as an insurance producer, managing general agent, 15 reinsurance intermediary broker, reinsurance intermediary manager, surplus lines 16 broker, or independent adjuster under AS 21.27; 17 (15) serving and executing process issued by a court by a person 18 designated under AS 22.20.130; 19 (16) a school bus driver license under AS 28.15.046; 20 (17) licensure as an operator or an instructor for a commercial driver 21 training school under AS 28.17; 22 (18) registration as a broker-dealer, agent, investment adviser 23 representative, or state investment adviser under AS 45.55.030 - 45.55.060. 24 * Sec. 141. AS 18.56.230(b) is amended to read: 25 (b) The corporation may not authorize the commercial use of space in a multi- 26 unit residential housing development owned or financed by the corporation for 27 (1) a business that offers adult entertainment; 28 (2) the sale of alcoholic beverages, unless the sale [IS IN A 29 RESTAURANT OR EATING PLACE LICENSED UNDER AS 04.11.100 OR] is in 30 premises covered by a restaurant endorsement issued [DESIGNATED] by the 31 Alcoholic Beverage Control Board under AS 04.09.450 [AS A RESTAURANT

01 UNDER AS 04.16.049]; 02 (3) substance abuse treatment; or 03 (4) a business that primarily sells, transfers, or stores cigarettes or 04 tobacco-related products. 05 * Sec. 142. AS 18.65.085(c) is amended to read: 06 (c) The Department of Public Safety may establish and administer a reward 07 program, and provide grants to municipalities, established villages, and, at the request 08 of a municipality or established village, to a nonprofit association that administers a 09 village public safety officer program, for reward programs leading to the apprehension 10 and conviction of persons who violate AS 04.09.060, 04.09.070, 04.09.145, 04.09.370, 11 04.09.380, or AS 04.11.010 by selling, importing, or possessing alcoholic beverages 12 in violation of a local option adopted by a municipality or established village under 13 AS 04.11.491. 14 * Sec. 143. AS 18.80.230(b) is amended to read: 15 (b) Notwithstanding (a) of this section, a physical fitness facility may limit 16 public accommodation to only males or only females to protect the privacy interests of 17 its users. Public accommodation may be limited under this subsection only to those 18 rooms in the facility that are primarily used for weight loss, aerobic, and other 19 exercises, or for resistance weight training. Public accommodation may not be limited 20 under this subsection to rooms in the facility primarily used for other purposes, 21 including conference rooms, dining rooms, and premises licensed under AS 04.09 22 [AS 04.11]. This subsection does not apply to swimming pools or golf courses. 23 * Sec. 144. AS 39.50.200(b) is amended by adding a new paragraph to read: 24 (65) Marijuana Control Board (AS 17.38.080). 25 * Sec. 145. AS 43.60 is amended by adding a new section to read: 26 Sec. 43.60.060. Winery direct shipment tax; statement; audit. A holder of a 27 winery direct shipment license under AS 04.09.360 who sells wine in the state or who 28 consigns shipments of wine into the state shall 29 (1) be subject to the taxes provided under AS 43.60.010(a); 30 (2) provide monthly statements and other information required under 31 AS 43.60.020 with the remittance of a tax collected under this section;

01 (3) allow the Department of Revenue to perform an audit of the 02 holder's records upon request; and 03 (4) consent to the jurisdiction of a state court concerning enforcement 04 of this section relating to the collection of taxes and other money owed by the holder, 05 including interest and penalties. 06 * Sec. 146. AS 43.70.105(a) is amended to read: 07 (a) This chapter does not apply to 08 (1) a fisheries business; 09 (2) the sale of liquor under a license issued under AS 04.09 10 [AS 04.11]; 11 (3) an insurance business; 12 (4) a mining business; 13 (5) supplying services as an employee; 14 (6) furnishing goods or services by a person who does not represent to 15 be regularly engaged in furnishing goods or services; 16 (7) the activities of an investment club; in this paragraph, 17 (A) "investment club" means a group of individuals, 18 incorporated or otherwise organized, that engages primarily in investing in 19 securities, that does not sell investment services to another person, that does 20 not advertise, and the primary purpose of which is educational; 21 (B) "security" has the meaning given in AS 45.55.990. 22 * Sec. 147. AS 45.45.590(1) is amended to read: 23 (1) "business proprietor" means a person who owns a place of business 24 in which the public may assemble and in which copyrighted musical works may be 25 performed, broadcasted, or otherwise transmitted; in this paragraph, "place of 26 business" includes a store, professional office, sports facility, entertainment facility, 27 restaurant, hotel, or [AN] alcoholic beverage establishment licensed under AS 04.09 28 [AS 04.11]; 29 * Sec. 148. The uncodified law of the State of Alaska is amended to read: 30 DIRECT COURT RULE AMENDMENT. Rule 17, Alaska Rules of Minor 31 Offense Procedure, is amended by adding a new subsection to read:

01 (g) A prosecutor may not join a minor offense for a violation of AS 04.16.049, 02 [OR] 04.16.050, or 04.16.060(g) with a related criminal offense. 03 * Sec. 149. AS 04.11.070, 04.11.080, 04.11.090, 04.11.100, 04.11.110, 04.11.115, 04 04.11.120, 04.11.130, 04.11.135, 04.11.140, 04.11.150, 04.11.160, 04.11.170, 04.11.180, 05 04.11.200, 04.11.210, 04.11.220, 04.11.225, 04.11.230, 04.11.240, 04.11.250, 04.11.255, 06 04.11.400(d), 04.11.400(h), 04.11.400(j); AS 04.16.070, 04.16.100, 04.16.180(a), 07 04.16.180(d), 04.16.210; and AS 04.21.080(b)(3) are repealed. 08 * Sec. 150. AS 04.11.400(e) and 04.11.400(g) are repealed. 09 * Sec. 151. AS 04.09.270(f) and 04.09.320(k) are repealed January 1, 2027. 10 * Sec. 152. Section 155 of this Act is repealed January 1, 2019. 11 * Sec. 153. The uncodified law of the State of Alaska is amended by adding a new section 12 to read: 13 APPLICABILITY. (a) The provisions of secs. 9 - 19, 28, 72 - 75, 77 - 121, 126 - 129, 14 131, 138, and 139 of this Act apply to offenses committed on or after the effective date of 15 each of those respective sections. 16 (b) References to previous convictions in AS 04.11.270(a), as amended by sec. 22 of 17 this Act, AS 04.16.180(b), as amended by sec. 114 of this Act, AS 04.16.180(e), as amended 18 by sec. 115 of this Act, and AS 04.16.220(i), as amended by sec. 120 of this Act, apply to 19 convictions occurring before, on, or after the effective date of each of those respective 20 sections. 21 * Sec. 154. The uncodified law of the State of Alaska is amended by adding a new section 22 to read: 23 TRANSITION: CONVERSION OF APPLICATIONS AND LICENSES. (a) 24 Notwithstanding AS 04.11.400(a), the Alcoholic Beverage Control Board shall convert, 25 within 90 days after the effective date of sec. 154 of this Act, 26 (1) a license issued or renewed as necessary for the public convenience under 27 former AS 04.11.400(e) or 04.11.400(g), repealed by sec. 150 of this Act, into a restaurant or 28 eating place license under AS 04.09.210, added by sec. 9 of this Act, if the license was issued 29 as a restaurant or eating place license, or into a beverage dispensary license under 30 AS 04.09.200, added by sec. 9 of this Act, if the license was issued as a beverage dispensary 31 license under former AS 04.11.400(j);

01 (2) notwithstanding AS 04.11.400(a) and (b), an application submitted to the 02 board that meets all of the requirements under former AS 04.11.400(e) or 04.11.400(g), 03 repealed by sec. 150 of this Act, into an application for a restaurant or eating place license 04 under AS 04.09.210, added by sec. 9 of this Act, if the license was issued as a restaurant or 05 eating place license; 06 (3) a license issued or renewed as a bottling works license under former 07 AS 04.11.120, repealed by sec. 149 of this Act, into a brewery manufacturer license under 08 AS 04.09.020, added by sec. 9 of this Act, or into a winery manufacturer license under 09 AS 04.09.030, added by sec. 9 of this Act; 10 (4) a license issued or renewed as a brewpub license under former 11 AS 04.11.135, repealed by sec. 149 of this Act, into a brewery manufacturer license under 12 AS 04.09.020, added by sec. 9 of this Act; 13 (5) a license issued or renewed as a theater license under former 14 AS 04.11.090, repealed by sec. 149 of this Act, or under former AS 04.11.100, repealed by 15 sec. 151 of this Act, into a theater license under AS 04.09.250, added by sec. 9 of this Act; 16 (6) a license issued or renewed as a wholesale license under former 17 AS 04.11.160(a), repealed by sec. 149 of this Act, into a general wholesale license under 18 AS 04.09.100, added by sec. 9 of this Act; 19 (7) a license issued or renewed as a wholesale license under former 20 AS 04.11.160(b), repealed by sec. 149 of this Act, into a limited wholesale brewed beverage 21 and wine license under AS 04.09.110, added by sec. 9 of this Act; 22 (8) a license issued or renewed as a beverage dispensary license under former 23 AS 04.11.400(d), repealed by sec. 149 of this Act, into a beverage dispensary tourism license 24 under AS 04.09.340, added by sec. 9 of this Act; 25 (9) a duplicate license issued or renewed as a duplicate beverage dispensary 26 license under former AS 04.11.090(e), repealed by sec. 149 of this Act, into a multiple fixed 27 counter endorsement under AS 04.09.420, added by sec. 9 of this Act. 28 (b) The Alcoholic Beverage Control Board may 29 (1) convert a license issued or renewed as a brewery license under former 30 AS 04.11.130, repealed by sec. 149 of this Act, into a brewery manufacturer license under 31 AS 04.09.020, added by sec. 9 of this Act, and a brewery retail license under AS 04.09.310,

01 added by sec. 9 of this Act, upon application by the licensee; 02 (2) notwithstanding AS 04.11.400(a) or (b), convert an application submitted 03 to the board that meets all of the requirements under former AS 04.11.130, repealed by sec. 04 149 of this Act, into an application for a brewery manufacturer license under AS 04.09.020, 05 added by sec. 9 of this Act, and a brewery retail license under AS 04.09.310, added by sec. 9 06 of this Act; 07 (3) convert a license issued or renewed as a winery license under former 08 AS 04.11.140, repealed by sec. 149 of this Act, into a winery manufacturer license under 09 AS 04.09.030, added by sec. 9 of this Act, and a winery retail license under AS 04.09.320, 10 added by sec. 9 of this Act, upon application by the licensee; 11 (4) notwithstanding AS 04.11.400(a) or (b), convert an application submitted 12 to the board that meets all of the requirements under former AS 04.11.140, repealed by sec. 13 149 of this Act, into an application for a winery manufacturer license under AS 04.09.030, 14 added by sec. 9 of this Act, and a winery retail license under AS 04.09.320, added by sec. 9 of 15 this Act; 16 (5) convert a license issued or renewed as a distillery license under former 17 AS 04.11.170, repealed by sec. 149 of this Act, into a distillery manufacturer license under 18 AS 04.09.040, added by sec. 9 of this Act, and a distillery retail license under AS 04.09.330, 19 added by sec. 9 of this Act, upon application by the licensee; 20 (6) notwithstanding AS 04.11.400(a) or (b), convert an application submitted 21 to the board that meets all of the requirements under former AS 04.11.170, repealed by sec. 22 149 of this Act, into an application for a distillery manufacturer license under AS 04.09.040, 23 added by sec. 9 of this Act, and a distillery retail license under AS 04.09.330, added by sec. 9 24 of this Act; 25 (7) convert a license issued or renewed as a recreational site license under 26 former AS 04.11.210, repealed by sec. 149 of this Act, into a sporting event license under 27 AS 04.09.270, added by sec. 9 of this Act, upon application by the licensee; 28 (8) establish an application form and procedure for conversion applications 29 under this section. 30 * Sec. 155. The uncodified law of the State of Alaska is amended by adding a new section 31 to read:

01 TRANSITION: SEASONAL RESTAURANT OR EATING PLACE LICENSE. (a) 02 Notwithstanding AS 04.11.080, the Alcoholic Beverage Control Board may issue a seasonal 03 restaurant or eating place tourism license to a person who files an application under 04 AS 04.11.260. 05 (b) A seasonal restaurant or eating place license authorizes a restaurant or eating place 06 to sell brewed beverages and wine for consumption only on the licensed premises for a period 07 not to exceed six months in each calendar year. 08 (c) The biennial seasonal restaurant or eating place tourism license fee is $1,250. 09 (d) The board may issue a license under this section only if 10 (1) the board determines that the licensed premises is a bona fide restaurant or 11 eating place; and 12 (2) the sale and service of food and alcoholic beverages and any other 13 business conducted on the licensed premises of the restaurant or eating place is under the sole 14 control of the licensee. 15 (e) The board may issue a license under this section only in a municipality or 16 established village that 17 (1) has a population of 20,000 or less; and 18 (2) includes a community that receives more than 4,000 visitors a year, as 19 determined by the Department of Commerce, Community, and Economic Development. 20 (f) The board may issue a license or approve an application for the transfer of 21 ownership of a license under this section if it appears that issuance or transfer will encourage 22 the tourism trade. 23 (g) The holder of a seasonal restaurant or eating place tourism license shall ensure 24 that gross receipts from the sale of food for consumption on the licensed premises are not less 25 than the total amount of the gross receipts from the sale of alcoholic beverages for 26 consumption on the licensed premises in each calendar year. 27 (h) The board shall adopt a regulation establishing a formula to limit the number of 28 seasonal restaurant or eating place tourism licenses. 29 (i) The holder of a seasonal restaurant or eating place tourism license may not provide 30 entertainment on or adjacent to the licensed premises before 3:00 p.m. or after 11:00 p.m. 31 except with the approval of the director. The director may grant approval for entertainment at

01 other times only upon the written request of the licensee, and only for a specific occasion. The 02 director may not grant approval for entertainment on or adjacent to the licensed premises of 03 an individual licensee more than five times in a calendar year. 04 (j) A license issued under this section may be renewed under AS 04.09.350, added by 05 sec. 9 of this Act, on or after the effective date of sec. 9 of this Act. 06 * Sec. 156. The uncodified law of the State of Alaska is amended by adding a new section 07 to read: 08 TRANSITION: REGULATIONS. The Department of Commerce, Community, and 09 Economic Development and the Alcoholic Beverage Control Board may adopt regulations 10 necessary to implement the changes made by this Act. The regulations take effect under 11 AS 44.62 (Administrative Procedure Act), but not before the effective date of the law 12 implemented by the regulation. 13 * Sec. 157. Sections 30, 34, 36, 41, 45, 48, 97, 132, 150, 155, and 156 of this Act take effect 14 immediately under AS 01.10.070(c). 15 * Sec. 158. Except as provided in sec. 157 of this Act, this Act takes effect January 1, 2019.