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HB 107: "An Act relating to the authority of first class cities and home rule cities to issue, renew, deny, suspend, revoke, and regulate certain licenses involving alcoholic beverages; and relating to the Alcoholic Beverage Control Board."

00 HOUSE BILL NO. 107 01 "An Act relating to the authority of first class cities and home rule cities to issue, renew, 02 deny, suspend, revoke, and regulate certain licenses involving alcoholic beverages; and 03 relating to the Alcoholic Beverage Control Board." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 04.06.090(b) is amended to read: 06 (b) Except as provided under AS 04.11.800 - 04.11.830, the [THE] board 07 shall review all applications for licenses made under this title and may order the 08 director to issue, renew, revoke, transfer, or suspend licenses and permits authorized 09 under this title. 10 * Sec. 2. AS 04.11.080 is amended to read: 11 Sec. 04.11.080. Types of licenses and permits. Licenses and permits issued 12 under this title are as follows: 13 (1) beverage dispensary license; 14 (2) duplicate beverage dispensary license for additional rooms;

01 (3) restaurant or eating place license; 02 (4) club license; 03 (5) bottling works license; 04 (6) brewery license; 05 (7) package store license; 06 (8) general wholesale license; 07 (9) wholesale malt beverage and wine license; 08 (10) distillery license; 09 (11) common carrier dispensary license; 10 (12) retail stock sale license; 11 (13) recreational site license; 12 (14) pub license; 13 (15) winery license; 14 (16) caterer's permit; 15 (17) special events permit; 16 (18) conditional contractor's permit; 17 (19) brewpub license; 18 (20) golf course license; 19 (21) outdoor recreation lodge license; 20 (22) destination resort license; 21 (23) municipal restaurant or eating place license; 22 (24) municipal package store license. 23 * Sec. 3. AS 04.11.400(a) is amended to read: 24 (a) Except as provided in (d) - (k) and (o) of this section, a new license may 25 not be issued and the board may prohibit relocation of an existing license 26 (1) outside an established village, incorporated city, unified 27 municipality, or organized borough if, after the issuance or relocation, there would be 28 (A) more than one restaurant or eating place license for each 1,500 population or 29 fraction of that population, or (B) more than one license of each other type, including 30 licenses that have been issued under (d), [OR] (e), or (o) of this section, for each 3,000 31 population or fraction of that population, in a radius of five miles of the licensed

01 premises, excluding the populations of established villages, incorporated cities, unified 02 municipalities, and organized boroughs that are wholly or partly included within the 03 radius; 04 (2) inside an established village, incorporated city, or unified 05 municipality if, after the issuance or relocation, there would be inside the established 06 village, incorporated city, or unified municipality 07 (A) more than one restaurant or eating place license for each 08 1,500 population or fraction of that population; or 09 (B) more than one license of each other type, including licenses 10 that have been issued under (d), [OR] (e), or (o) of this section, for each 3,000 11 population or fraction of that population; 12 (3) inside an organized borough but outside an established village or 13 incorporated city located within the borough if, after the issuance or relocation, there 14 would be inside the borough, but outside the established villages and incorporated 15 cities located within the borough, 16 (A) more than one restaurant or eating place license for each 17 1,500 population or fraction of that population; or 18 (B) more than one license of each other type, including licenses 19 that have been issued under (d), [OR] (e), or (o) of this section, for each 3,000 20 population or fraction of that population excluding the population of those 21 established villages that have adopted a local option under AS 04.11.491(b)(1), 22 (3), or (4), and excluding the population of incorporated cities located within 23 the organized borough. 24 * Sec. 4. AS 04.11.400 is amended by adding a new subsection to read: 25 (o) Notwithstanding the population limits under (a) of this section, the board 26 may approve the issuance of additional brewery licenses under AS 04.11.130, 27 brewpub licenses under AS 04.11.135, winery licenses under AS 04.11.140, or 28 distillery licenses under AS 04.11.170 for a first class or home rule city that meets the 29 criteria in AS 04.11.800(b) if the 30 (1) city submits to the board 31 (A) a resolution adopted by the local governing body of the city

01 petitioning the board for the issuance of the additional licenses; in this 02 subparagraph, "local governing body" has the meaning given in AS 04.11.830; 03 and 04 (B) proof satisfactory to the board of the total population of the 05 city; and 06 (2) board finds that issuance of the licenses is in the best interest of the 07 city and the area surrounding the city. 08 * Sec. 5. AS 04.11 is amended by adding new sections to read: 09 Article 10. Municipal Licenses. 10 Sec. 04.11.800. Petition for municipal authority. (a) Notwithstanding a 11 contrary provision of this chapter, a first class city or home rule city may petition the 12 board for the authority to issue, renew, deny, suspend, revoke, and regulate, within the 13 boundaries of the city, municipal restaurant or eating place licenses under 14 AS 04.11.805 and municipal package store licenses under AS 04.11.810. The local 15 governing body of the first class city or home rule city shall demonstrate to the board 16 that the city meets the criteria in (b) of this section. 17 (b) The board, following a public hearing, shall approve the city's petition if 18 the board finds that the 19 (1) local governing body of the city has adopted a resolution 20 authorizing the city to submit a petition under this section; and 21 (2) city 22 (A) serves as a center for commercial activity inside and 23 outside the boundaries of the city; 24 (B) has adopted a comprehensive plan and zoning regulations; 25 (C) maintains a local law enforcement department with a chief 26 of police and at least one police officer; and 27 (D) has adopted a written procedure for the issuance, renewal, 28 denial, suspension, and revocation of licenses under AS 04.11.805 and 29 04.11.810, including a fee schedule, requirements for public notice and 30 hearing, and a process for applications, inspections, and audits. 31 (c) The authority granted by the board to a first class city or home rule city

01 under this section does not include the authority to enforce the criminally punishable 02 provisions of this title and regulations adopted by the board, except that a first class 03 city or home rule city may suspend or revoke a license issued under AS 04.11.805 or 04 04.11.810 if the licensee violates a provision of this title or a regulation adopted under 05 this title. 06 Sec. 04.11.805. Municipal restaurant or eating place license. (a) A 07 municipal restaurant or eating place license authorizes a restaurant or eating place to 08 sell beer and wine for consumption only on the licensed premises. 09 (b) The local governing body of a first class city or home rule city approved 10 by the board under AS 04.11.800 may issue a municipal restaurant or eating place 11 license only if the local governing body determines that the premises to be licensed 12 (1) is a bona fide restaurant or eating place; 13 (2) does not maintain more than one room in which there is a fixed 14 counter or service bar at which beer and wine are sold or served to members of the 15 public for consumption, except as provided in (f) of this section; and 16 (3) holds a food service permit from the Department of Environmental 17 Conservation. 18 (c) The holder of a restaurant or eating place license issued under 19 AS 04.11.100 who is issued a municipal restaurant or eating place license under this 20 section for the same licensed premises shall surrender the restaurant or eating place 21 license issued under AS 04.11.100 to the board or its agent immediately after 22 obtaining the municipal restaurant or eating place license issued under this section. 23 (d) A license issued under this section may be renewed only if the licensee 24 provides evidence to the local governing body's satisfaction showing that, for the 25 preceding calendar year, gross receipts from the sale of beer and wine on the licensed 26 premises constituted not more than 35 percent of the gross receipts from the sale of 27 food, beer, and wine on the licensed premises. 28 (e) The holder of a restaurant or eating place license issued under 29 AS 04.11.100 may, with the board's written consent, apply to the local governing body 30 of a first class city or home rule city to convert the restaurant or eating place license to 31 a municipal restaurant or eating place license under this section.

01 (f) The holder of a municipal restaurant or eating place license may maintain 02 on the licensed premises more than one room in which there is regularly maintained a 03 fixed counter or service bar at which beer and wine are sold or served to members of 04 the public for consumption if the local governing body of a first class city or home 05 rule city issues to the licensee, after investigation, a duplicate of the original license 06 for each of the rooms. 07 Sec. 04.11.810. Municipal package store license. (a) A municipal package 08 store license authorizes the licensee to sell alcoholic beverages to a person present on 09 the licensed premises or to a person known to the licensee who makes a written 10 solicitation to the licensee for shipment. 11 (b) The local governing body of a first class city or home rule city approved 12 by the board under AS 04.11.800 may issue a municipal package store license to a 13 retail business only if the 14 (1) retail business complies with the requirements of AS 04.11.150(a), 15 (c) - (e), and (g) - (k); 16 (2) square footage of the premises to be licensed is less than 15 percent 17 of the total square footage of the retail business; and 18 (3) retail business is primarily engaged in selling household products 19 or dispensing pharmaceuticals; in this paragraph, "household products" means 20 groceries, apparel, housewares, or personal care products, but does not include 21 gasoline or diesel fuel. 22 (c) The holder of a package store license issued under AS 04.11.150 who is 23 issued a municipal package store license under this section for the same licensed 24 premises shall surrender the package store license issued under AS 04.11.150 to the 25 board or its agent immediately after obtaining the municipal package store license 26 issued under this section. 27 (d) A license issued under this section may be renewed only if the licensee 28 provides evidence to the local governing body's satisfaction showing that, for the 29 preceding calendar year, gross receipts from the sale of alcohol on the licensed 30 premises constituted not more than 15 percent of the gross receipts of the retail 31 business.

01 Sec. 04.11.815. Renewal. For renewal of a license issued under AS 04.11.805 02 or 04.11.810, the licensee shall annually provide the local governing body of a first 03 class city or home rule city with written evidence showing that the licensee meets the 04 requirements for original licensure and renewal. The local governing body shall 05 annually file with the board written documentation of the licensee's compliance with 06 this section. 07 Sec. 04.11.820. Appeals. A person may appeal a decision of the local 08 governing body of a first class city or home rule city under AS 04.11.800 - 04.11.830 09 to a hearing officer appointed by the first class city or home rule city. 10 Sec. 04.11.825. Transfer. A license issued under AS 04.11.805 or 04.11.810 11 may not be transferred to another person or a new location. 12 Sec. 04.11.830. Definitions. Notwithstanding the definition of "local 13 governing body" in AS 04.21.080(b), in AS 04.11.800 - 04.11.830, "local governing 14 body" means a city council or a local alcohol control board established in ordinance by 15 a city council. 16 * Sec. 6. AS 04.16.210 is amended to read: 17 Sec. 04.16.210. Penalty for making false statement. If a false statement is 18 made in an application to the board under AS 04.11.260 - 04.11.290 or in an 19 application to a municipality under AS 04.11.800 - 04.11.830, the applicant is 20 guilty of perjury and, upon conviction, is subject to the penalty provided by law for the 21 crime of perjury under AS 11.56.200. 22 * Sec. 7. AS 04.21.020(a) is amended to read: 23 (a) Except as provided under (b) and (d) of this section, a person who provides 24 alcoholic beverages to another person may not be held civilly liable for injuries 25 resulting from the intoxication of that person unless the person who provides the 26 alcoholic beverages holds a license authorized under AS 04.11.080 - 04.11.220, 27 04.11.805, or 04.11.810 or is an agent or employee of such a licensee and 28 (1) the alcoholic beverages are provided to a person under the age of 29 21 years in violation of AS 04.16.051, unless the licensee, agent, or employee secures 30 in good faith from the person a signed statement, liquor identification card, or driver's 31 license meeting the requirements of AS 04.21.050(a) and (b), that indicates that the

01 person is 21 years of age or older; or 02 (2) the alcoholic beverages are provided to a drunken person in 03 violation of AS 04.16.030. 04 * Sec. 8. AS 04.21.080(b)(15) is amended to read: 05 (15) "licensed premises" means any or all designated portions of a 06 building or structure, rooms or enclosures in the building or structure, or real estate 07 leased, used, controlled, or operated by a licensee in the conduct of business for which 08 the licensee is licensed by the board or a municipality at the specific address for 09 which the license is issued; 10 * Sec. 9. AS 04.21.080(b) is amended by adding a new paragraph to read: 11 (21) "bona fide restaurant or eating place" means an establishment or a 12 portion of an establishment where, during all times beer and wine are served or 13 consumed, 14 (A) the patron's principal activity is consumption of food; and 15 (B) a variety of food items appropriate for meals is available 16 for sale as shown on a menu provided to patrons and filed with the board. 17 * Sec. 10. AS 09.65.315(b) is amended to read: 18 (b) A person licensed under AS 04.11.080 - 04.11.255, 04.11.805, or 19 04.11.810, or an agent or employee of the person, is not liable for damages resulting 20 from a motor vehicle accident described under (a) of this section. A person or entity 21 that participates in making arrangements for transportation of a vehicle under (a) of 22 this section is not liable for damages resulting from a motor vehicle accident described 23 in (a) of this section. 24 * Sec. 11. AS 29.35.080(a) is amended to read: 25 (a) A municipality may regulate the possession, barter, sale, importation, and 26 consumption of alcoholic beverages under AS 04.11.480 - 04.11.509 and 27 AS 04.21.010. This subsection applies to home rule and general law 28 municipalities. 29 * Sec. 12. AS 29.35.080 is amended by adding a new subsection to read: 30 (c) A first class city or home rule city may issue, renew, deny, suspend, 31 revoke, and regulate alcoholic beverage licenses under AS 04.11.800 - 04.11.830.

01 * Sec. 13. AS 29.35.310(a) is amended to read: 02 (a) Except for the powers granted to a city under AS 04.11.800 - 03 04.11.830, a [A] city in a first or second class borough may transfer to the borough in 04 which it is located any of its powers or functions, subject to the approval of the 05 assembly. 06 * Sec. 14. AS 29.35.080(b) is repealed.