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SB 52: "An Act relating to alcoholic beverages; relating to the regulation of manufacturers, wholesalers, and retailers of alcoholic beverages; relating to licenses, endorsements, and permits involving alcoholic beverages; relating to common carrier approval to transport or deliver alcoholic beverages; relating to the Alcoholic Beverage Control Board; relating to offenses involving alcoholic beverages; amending Rule 17(h), Alaska Rules of Minor Offense Procedure; and providing for an effective date."

00 SENATE BILL NO. 52 01 "An Act relating to alcoholic beverages; relating to the regulation of manufacturers, 02 wholesalers, and retailers of alcoholic beverages; relating to licenses, endorsements, and 03 permits involving alcoholic beverages; relating to common carrier approval to transport 04 or deliver alcoholic beverages; relating to the Alcoholic Beverage Control Board; 05 relating to offenses involving alcoholic beverages; amending Rule 17(h), Alaska Rules of 06 Minor Offense Procedure; and providing for an effective date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. AS 04.06 is amended by adding a new section to read: 09 Sec. 04.06.005. Declaration of policy; purpose; finding. It is the policy of 10 the state that controlling the manufacture, distribution, barter, possession, and sale of 11 alcoholic beverages in the state is necessary to promote the health and safety of the 12 people of the state. It is the purpose of this title to carry out the state's policy in the 13 public interest. The legislature finds that observance of this title, regulations adopted

01 by the board, and other applicable laws, local ordinances, and regulations is in the 02 interest of the public, people holding licenses or permits under this title, and the 03 alcoholic beverage industry in general. 04 * Sec. 2. AS 04.06.075 is amended by adding a new subsection to read: 05 (c) The director shall prepare and submit to the board an annual budget for the 06 board that includes funding for administration, enforcement, education, training, and 07 prevention activities under this title. 08 * Sec. 3. AS 04.06.080 is amended to read: 09 Sec. 04.06.080. Delegation of authority. The director shall issue, renew, 10 transfer, suspend, or revoke all licenses, endorsements, and permits at the direction of 11 the board. However, notwithstanding AS 04.06.090(b) [AS 04.11.070], the board may 12 delegate authority to the director to temporarily grant or deny the issuance, renewal, or 13 transfer of licenses, endorsements, and permits. The director's temporary grant or 14 denial of the issuance, renewal, or transfer of a license, endorsement, or permit is not 15 binding on the board. The board may delegate to the director any other duty imposed 16 by this title except its power to propose and adopt regulations. 17 * Sec. 4. AS 04.06.090(b) is amended to read: 18 (b) Only the board may issue, renew, transfer, relocate, suspend, or 19 revoke a license or endorsement under this title. The board shall review all 20 applications for licenses and endorsements made under this title and may order the 21 director to issue, renew, revoke, transfer, or suspend licenses, endorsements, and 22 permits authorized under this title. 23 * Sec. 5. AS 04.06.090(e) is amended to read: 24 (e) The board shall promptly notify all licensees and municipalities of major 25 changes to this title and to regulations adopted under this title. However, if changes 26 only affect specific classifications of licenses, endorsements, and permits, the board 27 need only notify those licensees and municipalities directly affected by the changes. 28 Current copies of this title and current copies of the regulations adopted under it shall 29 be made available at all offices in the state of the Department of Commerce, 30 Community, and Economic Development and the detachment headquarters and posts 31 maintained by the division of Alaska state troopers in the Department of Public Safety.

01 * Sec. 6. AS 04.06.090 is amended by adding new subsections to read: 02 (f) The board is responsible for education on relevant state statutes, 03 regulations, and policies. The board shall coordinate with agencies and nonprofit 04 organizations that provide alcohol awareness education to develop a plan to educate 05 public safety professionals, the alcoholic beverage industry, individuals under 21 years 06 of age, local governments, established villages, and the general public on the 07 responsible use of alcoholic beverages. The board shall update and revise the plan 08 annually. 09 (g) The board shall review the fees specified in this title and regulations 10 adopted under this title at least every five years. 11 (h) The board may, within 30 days after the introduction of a bill amending a 12 provision of this title or adding a new provision to this title, prepare an advisory 13 opinion regarding the changes proposed in the bill. 14 (i) The board shall, within 30 business days after receiving notice of a 15 conviction or violation under this title, provide a copy of the conviction or violation to 16 the holder of a license if an offense or violation occurred on the holder's licensed 17 premises and the holder is not the subject of the conviction or violation. 18 (j) The board shall post information on the board's Internet website about fetal 19 alcohol syndrome and fetal alcohol effects resulting from a woman consuming alcohol 20 during pregnancy. 21 * Sec. 7. AS 04.06.095 is amended to read: 22 Sec. 04.06.095. Statewide database. (a) The board, after consulting with 23 package store licensees, shall create and maintain a statewide database that contains a 24 monthly record of the alcohol purchased by, and shipped to, a person who resides in a 25 municipality or established village that has restricted the sale of alcoholic beverages 26 under AS 04.11.491(a)(1), (2), or (3) or (b)(1) or (2). 27 (b) Except as otherwise specifically provided in this section, the information 28 contained in the database is confidential and is not subject to inspection or copying 29 under AS 40.25.110 - 40.25.220. Personally identifiable information, including 30 business names and addresses, [INFORMATION] in the database shall be purged 31 one year after entry unless it is needed for criminal investigation or prosecution. All

01 other information in the database shall be retained in aggregate form and purged 02 10 years after entry. Information in the database is available only to 03 (1) a package store licensee, agent, or employee to consult before 04 shipping alcohol to a purchaser in a restricted area under a package store shipping 05 endorsement as provided in AS 04.09.460 [AS 04.11.150(g)]; 06 (2) a law enforcement officer; 07 (3) a probation or parole officer; 08 (4) the board; and 09 (5) the person who is the subject of the information; the board shall 10 adopt regulations concerning access by a person to information contained in the 11 database of the purchases by, and shipments to, that person. 12 * Sec. 8. AS 04.06.095 is amended by adding a new subsection to read: 13 (c) The board shall produce an annual report of the aggregate regional and 14 statewide data from the database, excluding personally identifiable information and 15 the names and addresses of businesses, and shall make the report available for public 16 inspection and copying under AS 40.25.110 - 40.25.220. The report must include 17 information about the total volume of alcohol received in each municipality or 18 established village. 19 * Sec. 9. AS 04.06.100(b) is amended to read: 20 (b) The subjects covered by regulations adopted under (a) of this section may 21 include the following matters: 22 (1) employment, conduct, and duties of the director and of regular and 23 contractual employees of the board; 24 (2) procedures for the issuance, denial, renewal, transfer, revocation, 25 and suspension of licenses, endorsements, and permits; 26 (3) terms and conditions of licenses, endorsements, and permits 27 issued; 28 (4) fees for licenses, endorsements, and permits issued for which fees 29 are not prescribed by statute; 30 (5) conduct of regular and special meetings of the board; 31 (6) delegation to the director of routine administrative functions and

01 powers; 02 (7) the temporary granting or denial of issuance, transfer, and renewal 03 of licenses and endorsements; 04 (8) manner of giving any notice required by law or regulation when not 05 provided for by statute; 06 (9) requirements relating to the qualifications of licensees, the 07 conditions upon which a license may be issued, the accommodations of licensed 08 premises, and board inspection of those premises; 09 (10) making of reports by wholesalers; 10 (11) purchase of fidelity bonds by the state for the director and the 11 employees of the board; 12 (12) prohibition of possession of alcoholic beverages by drunken 13 persons and by minors; 14 (13) required reports from corporations licensed under this title, 15 including reports of stock ownership and transfers and changes of officers and 16 directors; 17 (14) [CREATION OF CLASSIFICATIONS OF LICENSES OR 18 PERMITS NOT PROVIDED FOR IN THIS TITLE; 19 (15)] establishment and collection of fees to be paid on application for 20 a license, endorsement, or permit; 21 (15) [(16)] required reports from partnerships and limited partnerships 22 licensed under this title, including reports of transferred interests of 10 percent or 23 more; 24 (16) [(17)] required reports from limited liability organizations 25 licensed under this title, including reports of the transfer of a member's interest if the 26 transfer equals 10 percent or more of the ownership of the limited liability 27 organization and any change of managers; 28 (17) restrictions on the manufacture, packaging, sale, and 29 distribution of products containing alcohol that are intended for human 30 consumption. 31 * Sec. 10. AS 04 is amended by adding a new chapter to read:

01 Chapter 09. Licenses, Endorsements, and Permits. 02 Article 1. License Types. 03 Sec. 04.09.010. Types of licenses. A license defines activities allowed daily on 04 licensed premises. License type is a general category of license activity based on the 05 three-tier system of alcohol regulation. The three types of licenses the board may issue 06 are manufacturer, wholesale, and retail licenses. The board may issue only the licenses 07 authorized in AS 04.09.020 - 04.09.360. 08 Article 2. Manufacturer Licenses. 09 Sec. 04.09.020. Brewery manufacturer license. (a) A brewery manufacturer 10 license authorizes the holder to operate a brewery for the manufacture, packaging, 11 storing, and sale of its brewed beverages to a buyer as permitted in AS 04.09.050. 12 (b) The biennial brewery manufacturer license fee is $1,250. 13 (c) At least 80 percent of each final product that contains brewed beverages 14 offered for sale by the holder of a brewery manufacturer license must be manufactured 15 on the holder's licensed premises in the state. 16 Sec. 04.09.030. Winery manufacturer license. (a) A winery manufacturer 17 license authorizes the holder to operate a winery for the manufacture, packaging, 18 storing, and sale of its wine to a buyer as permitted in AS 04.09.050. 19 (b) The biennial winery manufacturer license fee is $1,250. 20 (c) At least 80 percent of each final product that contains wine offered for sale 21 by the holder of a winery manufacturer license must be manufactured on the holder's 22 licensed premises in the state. 23 Sec. 04.09.040. Distillery manufacturer license. (a) A distillery manufacturer 24 license authorizes the holder to operate a distillery for the manufacture, packaging, 25 storing, and sale of its distilled spirits to a buyer as permitted in AS 04.09.050. 26 (b) The biennial distillery manufacturer license fee is $1,250. 27 (c) At least 80 percent of each final product that contains distilled spirits 28 offered for sale by the holder of a distillery manufacturer license must be 29 manufactured on the holder's licensed premises in the state. 30 Sec. 04.09.050. Authorized sales. (a) The holder of a manufacturer license 31 that annually produces in total less than 300,000 barrels of brewed beverages or mead

01 or cider containing less than 8.5 percent alcohol by volume, less than 50,000 nine- 02 liter-equivalent cases of wine, sake, or mead or cider containing 8.5 percent or more 03 alcohol by volume, or less than 50,000 nine-liter-equivalent cases of distilled spirits 04 may sell its product to 05 (1) the holder of a wholesale license issued under this chapter; 06 (2) the holder of a retail license issued under this chapter; 07 (3) the holder of a permit issued under this chapter; 08 (4) an entity in another state or country. 09 (b) The holder of a manufacturer license that annually produces in total 10 300,000 barrels or more of brewed beverages or mead or cider containing less than 8.5 11 percent alcohol by volume, 50,000 nine-liter-equivalent cases or more of wine, sake, 12 or mead or cider containing 8.5 percent or more alcohol by volume, or 50,000 nine- 13 liter-equivalent cases or more of distilled spirits may sell its product to 14 (1) the holder of a wholesale license issued under this chapter; 15 (2) an entity in another state or country. 16 (c) For purposes of calculating the volume that the holder of a manufacturer 17 license produces under this section, the volume of production must include all 18 production by 19 (1) the holder of the manufacturer's license; and 20 (2) an officer, director, agent, employee, or affiliate of the holder; in 21 this paragraph, "affiliate" means a person that directly or indirectly, through one or 22 more intermediaries, controls, or is controlled by, or is under common control with, a 23 corporation. 24 Sec. 04.09.060. Unlicensed manufacturing. (a) A person commits the crime 25 of unlicensed manufacturing if the person knowingly operates a 26 (1) brewery without a brewery manufacturer license; 27 (2) winery without a winery manufacturer license; or 28 (3) distillery without a distillery manufacturer license. 29 (b) Unlicensed manufacturing is a class A misdemeanor. 30 Sec. 04.09.070. Unlicensed manufacturing in a local option area. (a) A 31 person commits the crime of unlicensed manufacturing in a local option area if the

01 person knowingly operates in an area that has adopted a local option under 02 AS 04.11.491 a 03 (1) brewery without a brewery manufacturer license; 04 (2) winery without a winery manufacturer license; or 05 (3) distillery without a distillery manufacturer license. 06 (b) Unlicensed manufacturing in a local option area is a class C felony. 07 Sec. 04.09.080. Unauthorized manufacturer sale. (a) Except as provided in 08 AS 04.09.310 - 04.09.330, a person who holds a manufacturer license commits the 09 offense of unauthorized manufacturer sale if the person sells its product in violation of 10 AS 04.09.050. 11 (b) Unauthorized manufacturer sale is a violation. 12 Sec. 04.09.090. Definition. In AS 04.09.020 - 04.09.090, "packaging" means 13 the process of containing alcoholic beverages in bottles or other types of containers for 14 purpose of resale. 15 Article 3. Wholesale Licenses. 16 Sec. 04.09.100. General wholesale license. (a) A general wholesale license 17 authorizes the holder to sell alcoholic beverages at wholesale. The holder of a general 18 wholesale license may not sell to a person not licensed under this title, except as 19 provided in AS 04.21.040. 20 (b) The biennial general wholesale license fee is $2,000. 21 (c) In addition to the license fee under (b) of this section, the holder of a 22 general wholesale license shall pay an annual fee based on the total value of business 23 transacted by the wholesale business, including the excise tax imposed by 24 AS 43.60.010. If the total value of business transacted during the calendar year 25 including the excise tax imposed by AS 43.60.010 is 26 (1) less than or equal to $100,000, then the annual fee is $0; 27 (2) over $100,000 and not over $150,000, then the annual fee is $250; 28 (3) over $150,000 and not over $200,000, then the annual fee is $500; 29 (4) over $200,000 and not over $250,000, then the annual fee is $750; 30 (5) over $250,000 and not over $300,000, then the annual fee is 31 $1,000;

01 (6) over $300,000 and not over $350,000, then the annual fee is 02 $1,250; 03 (7) over $350,000 and not over $400,000, then the annual fee is 04 $1,500; 05 (8) over $400,000 and not over $500,000, then the annual fee is 06 $2,000; 07 (9) over $500,000 and not over $600,000, then the annual fee is 08 $2,500; 09 (10) over $600,000 and not over $700,000, then the annual fee is 10 $3,000; 11 (11) over $700,000 and not over $800,000, then the annual fee is 12 $3,500; 13 (12) over $800,000 and not over $1,000,000, then the annual fee is 14 $4,500; 15 (13) over $1,000,000, then the annual fee is $10,000. 16 Sec. 04.09.110. Limited wholesale brewed beverage and wine license. (a) A 17 limited wholesale brewed beverage and wine license authorizes the holder to sell 18 brewed beverages and wine at wholesale. The holder of a limited wholesale brewed 19 beverage and wine license may not sell to a person not licensed under this title, except 20 as provided in AS 04.21.040. 21 (b) The biennial limited wholesale brewed beverage and wine license fee is 22 $400. 23 (c) In addition to the license fee under (b) of this section, the holder of a 24 limited wholesale brewed beverage and wine license shall pay an annual fee based on 25 the total value of business transacted by the wholesale business, including the excise 26 tax imposed by AS 43.60.010. If the total value of business transacted during the 27 calendar year including the excise tax imposed by AS 43.60.010 is 28 (1) less than or equal to $20,000, then the annual fee is $0; 29 (2) over $20,000 and not over $50,000, then the annual fee is $150; 30 (3) over $50,000 and not over $100,000, then the annual fee is $500; 31 (4) over $100,000 and not over $150,000, then the annual fee is $750;

01 (5) over $150,000 and not over $200,000, then the annual fee is 02 $1,000; 03 (6) over $200,000 and not over $400,000, then the annual fee is 04 $2,000; 05 (7) over $400,000 and not over $600,000, then the annual fee is 06 $3,000; 07 (8) over $600,000 and not over $800,000, then the annual fee is 08 $4,000; 09 (9) over $800,000, then the annual fee is $10,000. 10 Sec. 04.09.120. Annual fee and affidavit. (a) Not later than February 28 of 11 each year, the holder of a general wholesale license or a limited wholesale brewed 12 beverage and wine license shall pay the annual fee for the license for the preceding 13 calendar year, and file with the board an affidavit showing the 14 (1) total value of business transacted under the license by the 15 wholesale business, including the excise tax imposed by AS 43.60.010, during the 16 preceding calendar year; and 17 (2) location of the licensed premises at which the business was 18 transacted. 19 (b) Failure to file an affidavit under (a) of this section or the expiration of a 20 license under AS 04.11.540 does not relieve a licensee from paying the prescribed 21 annual fee. 22 Sec. 04.09.130. Wholesale supplier declaration. (a) A person who applies for 23 issuance or renewal of a general wholesale license or a limited wholesale brewed 24 beverage and wine license shall submit to the board, on a form prescribed by the 25 board, a declaration that the person is the appointed wholesaler of the distiller, brewer, 26 vintner, or importer of each product line of alcoholic beverage that the person intends 27 to purchase, offer for sale, or sell. The form must include a space for the person to 28 indicate the total number of suppliers. The board may request a list of suppliers, or 29 additional information about a product line. 30 (b) A person filing a declaration under this section shall pay a biennial filing 31 fee. If the declaration lists

01 (1) one to 25 suppliers, the fee is $500; 02 (2) 26 to 50 suppliers, the fee is $1,000; 03 (3) 51 to 75 suppliers, the fee is $1,500; 04 (4) 76 or more suppliers, the fee is $2,000. 05 (c) In this section, "distiller, brewer, vintner, or importer" includes an 06 exclusive agent of the distiller, brewer, vintner, or importer if the agent's name appears 07 on the label of the brand approved by the Alcohol and Tobacco Tax and Trade Bureau. 08 Sec. 04.09.140. Unlicensed wholesale sale. (a) A person commits the crime of 09 unlicensed wholesale sale if the person knowingly sells 10 (1) distilled spirits at wholesale without a general wholesale license; or 11 (2) brewed beverages or wine at wholesale without a general wholesale 12 license or a limited wholesale brewed beverage and wine license. 13 (b) Unlicensed wholesale sale is a class A misdemeanor. 14 Sec. 04.09.145. Unlicensed wholesale sale in a local option area. (a) A 15 person commits the crime of unlicensed wholesale sale in a local option area if the 16 person knowingly sells in an area that has adopted a local option under AS 04.11.491 17 (1) distilled spirits at wholesale without a general wholesale license; or 18 (2) brewed beverages or wine at wholesale without a general wholesale 19 license or a limited wholesale brewed beverage and wine license. 20 (b) Unlicensed wholesale sale in a local option area is a class C felony. 21 Sec. 04.09.150. Failure to pay annual fee or file affidavit. (a) A person 22 commits the offense of failure to pay an annual wholesale fee or file a wholesale 23 affidavit if the person fails to pay the annual fee or file the affidavit as required under 24 AS 04.09.120. 25 (b) Failure to pay an annual wholesale fee or file a wholesale affidavit is a 26 violation. 27 Sec. 04.09.160. Failure to pay biennial fee or file declaration. (a) A person 28 commits the offense of failure to pay a biennial supplier fee or file a supplier 29 declaration if the person fails to pay the biennial supplier fee or file the declaration as 30 required under AS 04.09.130. 31 (b) Failure to pay a biennial supplier fee or file a supplier declaration is a

01 violation. 02 Article 4. Retail Licenses. 03 Sec. 04.09.200. Beverage dispensary license. (a) A beverage dispensary 04 license authorizes the holder to sell or serve on the licensed premises alcoholic 05 beverages for consumption only on the licensed premises. 06 (b) The biennial beverage dispensary license fee is $2,500. 07 (c) The holder of a beverage dispensary license may not maintain on the 08 licensed premises more than one room in which there is regularly maintained a fixed 09 counter or service bar that has plumbing connections to permanent plumbing at which 10 alcoholic beverages are sold or served to members of the public for consumption, 11 unless the license has a multiple fixed counter endorsement under AS 04.09.420. 12 (d) Except as provided under AS 04.09.610, 04.09.640, 04.09.670, and 13 AS 04.16.120(c), the holder of a beverage dispensary license who sells or serves 14 alcoholic beverages off the licensed premises or permits consumption off the premises 15 of alcoholic beverages sold or served on the premises commits the offense of 16 unauthorized beverage dispensary activity. 17 (e) Unauthorized beverage dispensary activity is a violation. 18 Sec. 04.09.210. Restaurant or eating place license. (a) A restaurant or eating 19 place license authorizes a restaurant or eating place to sell brewed beverages and wine 20 for consumption only on the licensed premises. 21 (b) The biennial restaurant or eating place license fee is $1,250. 22 (c) The board may issue or renew a license under this section only if the 23 (1) board determines that the licensed premises is a bona fide 24 restaurant as defined in AS 04.21.080(b); 25 (2) licensee has, or the licensee has simultaneously applied for, a 26 restaurant endorsement; and 27 (3) sale and service of food and alcoholic beverages and any other 28 business conducted on the licensed premises of the restaurant or eating place is under 29 the sole control of the licensee. 30 (d) The holder of a restaurant or eating place license shall ensure that gross 31 receipts from the sale of food for consumption on the licensed premises are not less

01 than the total of the gross receipts from the sale of alcoholic beverages for 02 consumption on the licensed premises in each calendar year. At the time the holder 03 submits an application for renewal of the license, the holder shall submit a statement 04 to the board certifying that the holder has met the requirement under this subsection 05 for the designated period of the license under AS 04.11.680. The board may renew a 06 restaurant or eating place license only if the licensee's statement provides evidence 07 satisfactory to the board that, during the designated period of the license under 08 AS 04.11.680, the gross receipts from the sale of food for consumption on the licensed 09 premises were not less than the total of the gross receipts from the sale of alcoholic 10 beverages for consumption on the licensed premises. 11 (e) The holder of a restaurant or eating place license may provide 12 entertainment on or adjacent to the licensed premises only between the hours of 10:00 13 a.m. and 11:00 p.m. unless additional hours are approved by the director upon the 14 written request of the licensee for a specific occasion. The director may not grant 15 approval for additional hours of entertainment on or adjacent to the licensed premises 16 of an individual licensee more than six times in a calendar year. In this subsection, 17 "entertainment" includes dancing, karaoke, live performances, or similar activities, but 18 does not include recorded or broadcast performances without live participation. 19 (f) Except as provided under AS 04.09.620, 04.09.640, and AS 04.16.120(c), 20 the holder of a restaurant or eating place license commits the offense of failure to 21 comply with the terms of a restaurant or eating place license if the person sells brewed 22 beverages or wine in violation of (a) of this section or fails to comply with (e) of this 23 section. 24 (g) Failure to comply with the terms of a restaurant or eating place license is a 25 violation. 26 Sec. 04.09.220. Club license. (a) A club license authorizes a club or 27 organization to sell alcoholic beverages for consumption only on the licensed 28 premises. 29 (b) The biennial fee for a club license is $1,500. 30 (c) The board may issue a club license only to an organization operated for 31 social, recreational, benevolent, or athletic purposes and not for profit. The board may

01 issue a club license only to a club, fraternal organization, patriotic organization, or 02 social organization that has been 03 (1) chartered by a state or national organization for a period of 10 04 consecutive years before application for a license under this section; or 05 (2) chartered by a national organization that has maintained a chartered 06 club or organization in the state for a period of at least 20 years. 07 (d) Alcoholic beverages sold under a club license may be purchased only by 08 (1) members of the club and their families; 09 (2) widows or widowers of deceased members of the club who have 10 been accorded club privileges; and 11 (3) military personnel on active duty who are extended the privilege by 12 patriotic organizations. 13 (e) Alcoholic beverages may be purchased only in the portion of the club 14 rooms that are part of the licensed premises. 15 (f) Guests who enter the club premises on the invitation of a member and in 16 the company of the member may be served but not sold alcoholic beverages. A guest 17 shall leave the premises immediately upon the departure of the member who extended 18 the invitation to enter. 19 (g) Notwithstanding AS 04.16.049, access by persons under 21 years of age to 20 the 21 (1) licensed premises of a club is permitted when alcoholic beverages 22 are not present; and 23 (2) premises of a patriotic organization licensed as a club under this 24 section is permitted when alcoholic beverages are present, if the person possesses a 25 valid active duty military or armed forces identification card issued by the United 26 States Department of Defense or the United States Department of Homeland Security. 27 (h) The holder of a club license may not serve or sell alcoholic beverages for 28 use or consumption off the licensed premises of the club or organization, including use 29 or consumption by a club member or employee, except under a club caterer's permit. 30 (i) The holder of a club license may not 31 (1) solicit public patronage of the club premises, except as approved by

01 the board; 02 (2) distribute income from the sale of alcoholic beverages under the 03 license to a member, director, or officer; 04 (3) sell or serve alcoholic beverages in club rooms outside the portion 05 of the club rooms that are part of the licensed premises. 06 (j) In this section, "member" means a holder of a full year of paid membership 07 entitling the holder to all voting rights and privileges of membership under the 08 constitution or bylaws of the club or organization. 09 (k) The holder of a club license commits the offense of failure to comply with 10 the terms of a club license if the person sells alcoholic beverages in violation of (a) of 11 this section or violates (d), (e), (f), (h), or (i) of this section. 12 (l) Failure to comply with the terms of a club license is a violation. 13 Sec. 04.09.230. Package store license. (a) A package store license authorizes 14 the holder to operate a package store to store alcoholic beverages with federally 15 compliant labels and to sell alcoholic beverages with federally compliant labels to a 16 person present on the licensed premises. 17 (b) The biennial package store license fee is $1,500. 18 (c) The licensed premises occupied by the holder of a package store license 19 may not be connected by a door, opening, or other means of passage intended for the 20 access of the general public to an adjacent retail business not licensed under this title 21 unless approved by the board. 22 (d) If the holder of a package store license also holds a beverage dispensary 23 license, the licensed premises of the package store are contained within or are adjacent 24 to the licensed premises of the beverage dispensary, and the only public entrance to 25 the package store is by a door or other means within the beverage dispensary, the 26 board shall determine whether additional entrances to the package store are necessary 27 for enforcement purposes, to meet health and fire safety standards, or for the 28 convenience of the public. 29 (e) The holder of a package store license may not 30 (1) offer alcoholic beverages for consumption on the licensed premises 31 or allow the consumption of alcoholic beverages on the licensed premises except as

01 authorized by a package store sampling endorsement issued under AS 04.09.490 or a 02 tasting event permit issued under AS 04.09.670; 03 (2) subdivide alcoholic beverages except as authorized by a package 04 store repackaging endorsement issued under AS 04.09.480; 05 (3) offer alcoholic beverages for sale or sell alcoholic beverages to a 06 person not present on the licensed premises who makes an order for shipment except 07 as authorized by a package store shipping endorsement under AS 04.09.460; or 08 (4) deliver alcoholic beverages to a person not present on the licensed 09 premises except as authorized by a package store delivery endorsement under 10 AS 04.09.470. 11 (f) The holder of a package store license commits the offense of failure to 12 comply with the terms of a package store license if the person stores or sells alcoholic 13 beverages in violation of (a) of this section or fails to comply with (c) or (e) of this 14 section. 15 (g) Failure to comply with the terms of a package store license is a violation. 16 Sec. 04.09.240. Pub license. (a) A pub license authorizes the holder to sell 17 brewed beverages and wine for consumption only at a designated premises located on 18 the campus of an accredited college or university. 19 (b) The biennial pub license fee is $1,250. 20 (c) The board may not 21 (1) issue more than one pub license for each accredited college or 22 university campus in the state; and 23 (2) issue or renew a pub license without the written approval of the 24 governing body of the accredited college or university. 25 (d) The board may designate two alternating premises for a pub license if 26 (1) both premises are 27 (A) located on the accredited college or university campus; 28 (B) not located in contiguous rooms or adjacent buildings; and 29 (C) under the licensee's control; 30 (2) at any time, only one location is operating as a licensed premises 31 with specified operating hours approved by the board; and

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

01 theater license if the person sells, serves, or permits the consumption of alcoholic 02 beverages except as permitted in this section or fails to post the license as required by 03 this section. 04 (i) Failure to comply with the terms of a theater license is a violation. 05 Sec. 04.09.260. Common carrier dispensary license. (a) A common carrier 06 dispensary license authorizes the holder to sell alcoholic beverages for consumption 07 aboard a boat or train licensed by a state or federal agency for passenger travel, or 08 aboard aircraft operated by an airline licensed by a state or federal agency for 09 passenger travel. 10 (b) Except as provided for airlines under (c) of this section, the biennial 11 common carrier dispensary license fee is $1,000 for each of the first 10 licenses a 12 common carrier holds and $100 for each additional license issued to the common 13 carrier after the first 10 licenses. 14 (c) The biennial fee for a common carrier dispensary license issued to an 15 airline is the fee specified under (b) of this section for each aircraft in which alcoholic 16 beverages are served or $2,000 for each community served by the airline. An airline 17 shall specify the fee applicable to the license at the time of the airline's application for 18 issuance or renewal of the license. 19 (d) Except for a common carrier that is an airline, a common carrier shall 20 obtain a license for each boat or train in which alcoholic beverages are served. After 21 obtaining an initial license for the first boat or train, the common carrier may obtain 22 additional licenses for additional boats or trains upon making a written request 23 identifying the boat or train in the manner prescribed by the board, and paying the 24 biennial fee for additional licensed premises as required by (b) of this section. 25 (e) The holder of a common carrier dispensary license who exceeds the 26 authority granted in (a) of this section commits the crime of unauthorized common 27 carrier dispensary activity. 28 (f) Unauthorized common carrier dispensary activity is a class A 29 misdemeanor. 30 (g) The holder of a common carrier dispensary license who fails to comply 31 with (b) - (d) of this section commits the offense of common carrier dispensary

01 noncompliance. 02 (h) Common carrier dispensary noncompliance is a violation and is punishable 03 by a fine of $500 for each boat, train, or aircraft not in compliance with this section. 04 Sec. 04.09.270. Sporting event license. (a) A sporting event license authorizes 05 the holder to sell brewed beverages and wine at multiple noncontiguous locations at a 06 sporting event site during and one hour before and after a sporting event that is not a 07 school event, for consumption on designated areas at the sporting event site. 08 (b) The biennial sporting event license fee is $1,250. 09 (c) In this section, "sporting event site" includes a location where baseball, 10 hockey, rugby, soccer, or football games, car races, dog sled racing events, rodeos, or 11 curling matches are regularly held during a season. 12 (d) The holder of a sporting event license who sells brewed beverages or wine 13 off the licensed premises or during hours not authorized under (a) of this section or 14 who permits consumption off the premises of brewed beverages or wine sold on the 15 premises commits the offense of unauthorized sporting event activity. 16 (e) Unauthorized sporting event activity is a violation. 17 (f) The holder, on the day before the effective date of this section, of a 18 recreational site license issued under former AS 04.11.210 who offered brewed 19 beverages and wine for sale to the public for consumption on the licensed premises 20 may continue to offer brewed beverages and wine for sale to the public for 21 consumption on the premises until December 31, 2027, for a license renewing on an 22 odd-numbered year, or December 31, 2028, for a license renewing on an even- 23 numbered year, if the holder of the license is otherwise in compliance with the 24 requirements of this title as it read on the day before the effective date of this section. 25 Sec. 04.09.280. Outdoor recreation lodge license. (a) An outdoor recreation 26 lodge license authorizes the holder to sell alcoholic beverages to a registered overnight 27 guest or off-duty staff of the lodge for consumption on the licensed premises or in 28 conjunction with purchased outdoor recreation activities provided by the licensee. 29 (b) The biennial outdoor recreation lodge license fee is $2,500. 30 (c) The board may not grant an application for transfer of an outdoor 31 recreation lodge license to another location.

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

01 (i) Failure to comply with the terms of a golf course license is a violation. 02 Sec. 04.09.300. Destination resort license. (a) A destination resort license 03 authorizes the holder to sell alcoholic beverages at multiple noncontiguous locations at 04 a destination resort for consumption on the licensed premises in conjunction with the 05 visitor activities provided by the licensee to cruise ship passengers and staff and other 06 visitors while the cruise ship is in port at the resort. 07 (b) The biennial destination resort license fee is $2,500. 08 (c) The board may not approve an application for transfer of a destination 09 resort license to another location. 10 (d) In this section, "destination resort" means a business that owns a site of at 11 least 20 acres that is used principally as a destination for cruise ships and other vessels 12 that carry a minimum of 50 passengers and that does not provide overnight lodging on 13 its premises for visitors. 14 (e) The holder of a destination resort license commits the offense of failure to 15 comply with a destination resort license if the person sells alcoholic beverages in 16 violation of (a) of this section. 17 (f) Failure to comply with the terms of a destination resort license is a 18 violation. 19 Sec. 04.09.310. Brewery retail license. (a) A brewery retail license authorizes 20 the holder to store, sell, or serve on the licensed premises brewed beverages for 21 consumption on and off the premises. 22 (b) The biennial brewery retail license fee is $1,250. 23 (c) The board may issue a brewery retail license only to the holder of a 24 brewery manufacturer license under AS 04.09.020. The brewery retail licensed 25 premises may be all or part of the brewery manufacturer licensed premises, or the 26 brewery retail licensed premises may be at a single different site that is adjacent to the 27 brewery manufacturer licensed premises. 28 (d) Each day, the holder of a brewery retail license may sell, to a person on the 29 licensed premises for consumption on the licensed premises, not more than 30 (1) 36 ounces of the holder's beer; or 31 (2) 18 ounces of the holder's sake.

01 (e) The holder of a brewery retail license may not 02 (1) allow live entertainment, televisions, pool tables, dart games, 03 dancing, electronic or other games, game tables, or other recreational or gaming 04 opportunities on or adjacent to the premises where the consumption occurs; 05 (2) provide seats at the counter or bar where the brewed beverages are 06 served; 07 (3) open the room where the consumption occurs before 9:00 a.m.; or 08 (4) serve brewed beverages after 8:00 p.m. 09 (f) Each day, the holder of a brewery retail license is authorized to sell, to a 10 person on the licensed premises for consumption off the licensed premises, not more 11 than 12 (1) 5.167 gallons of the holder's beer; or 13 (2) nine liters of the holder's sake. 14 (g) 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), or (f) of this 17 section. 18 (h) 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, a total volume that does 30 not exceed 31 (1) 18 ounces of the holder's wine, mead, or cider containing 8.5

01 percent or more alcohol by volume; 02 (2) 36 ounces of the holder's mead or cider containing less than 8.5 03 percent alcohol by volume; or 04 (3) the alcoholic equivalent of (1) or (2) of this subsection. 05 (e) The holder of a winery retail license may not 06 (1) allow live entertainment, televisions, pool tables, dart games, 07 dancing, electronic or other games, game tables, or other recreational or gaming 08 opportunities on or adjacent to the premises where the consumption occurs; 09 (2) provide seats at the counter or bar where the wine is served; 10 (3) open the room where the consumption occurs before 9:00 a.m.; or 11 (4) serve wine after 8:00 p.m. 12 (f) Each day, the holder of a winery retail license is authorized to sell, to a 13 person on the licensed premises for consumption off the licensed premises, not more 14 than 15 (1) nine liters of the holder's wine, mead, or cider containing 8.5 16 percent or more alcohol by volume; 17 (2) 5.167 gallons of the holder's mead or cider containing less than 8.5 18 percent alcohol by volume; or 19 (3) the alcoholic equivalent of (1) or (2) of this subsection. 20 (g) The holder of a winery retail license commits the offense of failure to 21 comply with the terms of a winery retail license if the person stores, sells, or serves 22 wine in violation of (a) of this section or violates (d), (e), or (f) of this section. 23 (h) Failure to comply with the terms of a winery retail license is a violation. 24 Sec. 04.09.330. Distillery retail license. (a) A distillery retail license 25 authorizes the holder to store, sell, or serve on the licensed premises distilled spirits 26 for consumption on and off the premises. 27 (b) The biennial distillery retail license fee is $1,250. 28 (c) The board may issue a distillery retail license only to the holder of a 29 distillery manufacturer license under AS 04.09.040. The distillery retail licensed 30 premises may be all or part of the distillery manufacturer licensed premises, or the 31 distillery retail licensed premises may be at a single different site that is adjacent to the

01 distillery manufacturer licensed premises. 02 (d) The holder of a distillery retail license may sell not more than three ounces 03 of the holder's distilled spirits each day to a person on the licensed premises for 04 consumption on the licensed premises. The holder of a distillery retail license may 05 combine the holder's distilled spirits under this subsection with other ingredients that 06 are not alcoholic beverages, including mixers, liquids, and garnishes. 07 (e) The holder of a distillery retail license may not 08 (1) allow live entertainment, televisions, pool tables, dart games, 09 dancing, electronic or other games, game tables, or other recreational or gaming 10 opportunities on or adjacent to the premises where the consumption occurs; 11 (2) provide seats at the counter or bar where the distilled spirits are 12 served; 13 (3) open the room where the consumption occurs before 9:00 a.m.; or 14 (4) serve distilled spirits after 8:00 p.m. 15 (f) The holder of a distillery retail license is authorized to sell not more than 16 3.75 liters of the holder's distilled spirits each day to a person on the licensed premises 17 for consumption off the licensed premises. 18 (g) The holder of a distillery retail license commits the offense of failure to 19 comply with the terms of a distillery retail license if the person stores, sells, or serves 20 distilled spirits in violation of (a) of this section or violates (d), (e), or (f) of this 21 section. 22 (h) Failure to comply with the terms of a distillery retail license is a violation. 23 Sec. 04.09.340. Beverage dispensary tourism license. (a) A beverage 24 dispensary tourism license authorizes the holder to sell or serve on the licensed 25 premises alcoholic beverages for consumption only on the licensed premises. 26 (b) The biennial beverage dispensary tourism license fee is $2,500. 27 (c) The board may 28 (1) issue a new beverage dispensary tourism license if it appears that 29 the issuance will encourage the tourist trade by promoting the construction or 30 improvement of 31 (A) a hotel, motel, resort, or similar business relating to the

01 tourist trade with a dining facility or having kitchen facilities in a majority of 02 its rental rooms and at least a minimum number of rental rooms required 03 according to the population of the incorporated city, unified municipality, or 04 population area established under AS 04.11.400(a) in which the facility will be 05 located, as follows: 06 (i) 10 rental rooms if the population is less than 1,501; 07 (ii) 20 rental rooms if the population is 1,501 - 2,500; 08 (iii) 25 rental rooms if the population is 2,501 - 5,000; 09 (iv) 30 rental rooms if the population is 5,001 - 15,000; 10 (v) 35 rental rooms if the population is 15,001 - 25,000; 11 (vi) 40 rental rooms if the population is 25,001 - 12 50,000; and 13 (vii) 50 rental rooms if the population is greater than 14 50,000; or 15 (B) an airport terminal; and 16 (2) approve the renewal or transfer of ownership of a beverage 17 dispensary tourism license initially issued under (1) of this subsection or initially 18 issued as a beverage dispensary license under AS 04.11.400, as that section read on 19 the date of the initial licensure, if the 20 (A) holder of the license operates a hotel, motel, resort, or 21 similar business relating to the tourist trade that 22 (i) has a dining facility on the licensed premises or 23 kitchen facilities in a majority of its rental rooms; and 24 (ii) maintains at least the minimum number of rental 25 rooms that the hotel, motel, resort, or similar business had at the time of 26 initial licensure or that were required at the time of initial licensure; or 27 (B) licensed premises are located inside an airport terminal. 28 (d) The holder of a beverage dispensary tourism license may not maintain on 29 the licensed premises more than one room in which there is regularly maintained a 30 fixed counter or service bar that has plumbing connections to permanent plumbing at 31 which alcoholic beverages are sold or served to members of the public for

01 consumption unless the license has a multiple fixed counter endorsement under 02 AS 04.09.420, a hotel or motel endorsement under AS 04.09.430, or a large resort 03 endorsement under AS 04.09.440. 04 (e) Except as provided under AS 04.09.610, 04.09.640, 04.09.670, and 05 AS 04.16.120(c), the holder of a beverage dispensary tourism license who sells or 06 serves alcoholic beverages off the licensed premises or permits consumption off the 07 premises of alcoholic beverages sold or served on the premises commits the offense of 08 unauthorized beverage dispensary tourism activity. 09 (f) Unauthorized beverage dispensary tourism activity is a violation. 10 Sec. 04.09.350. Seasonal restaurant or eating place tourism license. (a) A 11 seasonal restaurant or eating place tourism license authorizes a restaurant or eating 12 place to sell brewed beverages and wine for consumption only on the licensed 13 premises for a period not to exceed six months in each calendar year. 14 (b) The biennial seasonal restaurant or eating place tourism license fee is 15 $1,250. 16 (c) The board may issue or renew a license under this section only if 17 (1) the board determines that the licensed premises is a bona fide 18 restaurant as defined in AS 04.21.080(b); 19 (2) the licensee has, or the licensee has simultaneously applied for, a 20 restaurant endorsement; and 21 (3) the sale and service of food and alcoholic beverages and any other 22 business conducted on the licensed premises of the restaurant or eating place is under 23 the sole control of the licensee. 24 (d) The board may issue a license under this section only in a municipality or 25 established village that 26 (1) has a population of 40,000 or less; and 27 (2) receives more than 4,000 visitors a year, as determined by the 28 board in regulation. 29 (e) The board may issue a license or approve an application for the transfer of 30 ownership of a license under this section if it appears that issuance or transfer will 31 encourage the tourism trade.

01 (f) The holder of a seasonal restaurant or eating place tourism license shall 02 ensure that gross receipts from the sale of food for consumption on the licensed 03 premises are not less than the total of the gross receipts from the sale of alcoholic 04 beverages for consumption on the licensed premises in each calendar year. At the time 05 the holder submits an application for renewal of the license, the holder shall submit a 06 statement to the board certifying that the holder has met the requirement under this 07 subsection for the designated period of the license under AS 04.11.680. The board 08 may renew a seasonal restaurant or eating place tourism license only if the licensee 09 provides evidence satisfactory to the board that, during the designated period of the 10 license under AS 04.11.680, the gross receipts from the sale of food for consumption 11 on the licensed premises were not less than the total of the gross receipts from the sale 12 of alcoholic beverages for consumption on the licensed premises. 13 (g) The board shall adopt a regulation establishing a formula to limit the 14 number of seasonal restaurant or eating place tourism licenses. 15 (h) The holder of a seasonal restaurant or eating place tourism license may 16 provide entertainment on or adjacent to the licensed premises only between the hours 17 of 10:00 a.m. and 11:00 p.m. unless additional hours are approved by the director 18 upon the written request of the licensee for a specific occasion. The director may not 19 grant approval for additional hours of entertainment on or adjacent to the licensed 20 premises of an individual licensee more than three times in a calendar year. In this 21 subsection, "entertainment" includes dancing, karaoke, live performances, or similar 22 activities, but does not include recorded or broadcast performances without live 23 participation. 24 (i) Except as provided under AS 04.09.620, 04.09.640, and AS 04.16.120(c), 25 the holder of a seasonal restaurant or eating place tourism license commits the offense 26 of failure to comply with the terms of a seasonal restaurant or eating place tourism 27 license if the person sells brewed beverages or wine in violation of (a) of this section 28 or fails to comply with (f) or (h) of this section. 29 (j) Failure to comply with the terms of a seasonal restaurant or eating place 30 tourism license is a violation. 31 Sec. 04.09.360. Winery direct shipment license. (a) A winery direct shipment

01 license authorizes the holder of a winery retail license issued under AS 04.09.320, or 02 the holder of a winery license issued in another state, to sell the holder's wine in 03 response to an order for shipment to a person, for personal use only and not for resale, 04 who is located in the state. A winery direct shipment license may not be transferred to 05 another person or another location. 06 (b) The biennial fee for a winery direct shipment license is $200. 07 (c) An applicant for issuance or renewal of a winery direct shipment license 08 shall 09 (1) submit an application on a form prescribed by the board; 10 (2) consent to the jurisdiction of the board, the Department of 11 Revenue, and any other state agency or state court concerning enforcement of this 12 title; and 13 (3) if the applicant is the holder of a license or permit authorizing the 14 holder to manufacture and sell wine to the public issued in another state, provide to the 15 board a copy of the holder's license or permit issued 16 (A) in the state; and 17 (B) by the Alcohol and Tobacco Tax and Trade Bureau. 18 (d) All wine shipped to a purchaser in the state by the holder of a winery direct 19 shipment license is subject to the state excise tax. 20 (e) The holder of a winery direct shipment license may not 21 (1) ship wine to an address with a zip code located in an area that has 22 adopted a local option under AS 04.11.491; 23 (2) sell more than the equivalent of six nine-liter cases of wine to a 24 purchaser in one transaction, or more than the equivalent of 12 nine-liter cases of wine 25 to a purchaser in a calendar year; and 26 (3) ship wine using a common carrier who is not approved by the 27 board to ship alcoholic beverages to persons in the state under AS 04.09.750(b). 28 (f) Before shipping an order under this section, the holder of a winery direct 29 shipment license shall 30 (1) verify that the person submitting the order is at least 21 years of 31 age, using an age verification service or other method, and that the named recipient of

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

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

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

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

01 the traveling public as a substantial part of its business shall apply for a multiple fixed 02 counter endorsement under AS 04.09.420 to sell or serve alcoholic beverages at a 03 secondary location located in a building different than the licensed premises for the 04 beverage dispensary license or a beverage dispensary tourism license if the different 05 building 06 (1) is located on the same property as, adjacent to, or attached to the 07 originally licensed premises; 08 (2) principally caters to guests of the hotel or motel; and 09 (3) principally encourages the tourism trade at the hotel or motel. 10 (d) The holder of a hotel or motel endorsement may stock alcoholic beverages 11 in guest rooms, for sale and consumption only in the guest room. Alcoholic beverages 12 stocked under this subsection must be stocked by an employee who is 21 years of age 13 or older, may not be supplied or resupplied during hours that the sale of alcoholic 14 beverages is prohibited as provided under AS 04.16.010(a) and (d), and must be stored 15 in a unit using a key or combination lock system within the guest room. A key lock 16 system must be designed to prevent the removal of the key unless the unit is locked. 17 Except for the licensee, or an agent or employee of the licensee, a key or combination 18 enabling a person to obtain alcoholic beverages stocked in a guest room may be 19 provided only to a guest who occupies the room and who is 21 years of age or older. 20 (e) The holder of a hotel or motel endorsement shall exercise control over 21 conduct of the business in all areas of the licensed premises. 22 (f) The holder of a beverage dispensary license or a beverage dispensary 23 tourism license who engages in activity under this section without an endorsement 24 under this section commits the offense of unendorsed hotel or motel service. 25 (g) The holder of a hotel or motel endorsement who fails to comply with the 26 requirements of this section commits the offense of hotel or motel endorsement 27 noncompliance. 28 (h) Unendorsed hotel or motel service is a violation and is punishable by a fine 29 of $500. 30 (i) Hotel or motel endorsement noncompliance is a violation. 31 Sec. 04.09.440. Large resort endorsement. (a) A large resort endorsement

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

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

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

01 (c) An endorsement holder may ship alcoholic beverages only to the purchaser 02 and may ship alcoholic beverages only in response to an order. The endorsement 03 holder may not, in response to an order, ship alcohol to a purchaser at an address other 04 than the address where the purchaser resides or, if the purchaser resides in a 05 municipality or established village that has adopted a local option under 06 AS 04.11.491(a)(1), (2), or (3) or (b)(1) or (2) for which a community delivery site has 07 been designated under AS 04.11.491(f), to an address other than that community 08 delivery site except as provided by AS 04.11.491(f)(1) and (2). 09 (d) An endorsement holder shall provide written or electronic information on 10 fetal alcohol syndrome and fetal alcohol effects resulting from a woman's 11 consumption of alcohol during pregnancy to the purchaser in response to an order. 12 (e) If a shipment is to an area that has restricted the sale of alcoholic beverages 13 under AS 04.11.491(a)(1), (2), or (3) or (b)(1) or (2), an endorsement holder may not 14 ship to a purchaser more than 10.5 liters of distilled spirits or 24 liters or more of wine, 15 or either a half-barrel keg of brewed beverages or 12 gallons or more of brewed 16 beverages in individual containers in a calendar month, or a lower amount of distilled 17 spirits, wine, or brewed beverages if the municipality or established village has 18 adopted the lower amount by local option under AS 04.11.491(g). Before shipping 19 alcohol to a purchaser in a restricted area, an endorsement holder shall consult the 20 database maintained by the board under AS 04.06.095 for any alcoholic beverage 21 shipments made to the purchaser during that calendar month by a package store. An 22 endorsement holder may not ship an amount of alcoholic beverages to a purchaser in a 23 restricted area that, when added to the amount already shipped, exceeds the amount 24 authorized by this subsection. An endorsement holder shall immediately enter into the 25 database the date and the amount of alcoholic beverages shipped to the purchaser. 26 (f) An endorsement holder may not divide or combine shipments of alcoholic 27 beverages so as to circumvent the limitation imposed under (e) of this section. 28 (g) In this section, "endorsement holder" means the holder of a package store 29 license with a package store shipping endorsement, and an agent or employee of the 30 holder of a package store license with a package store shipping endorsement. 31 (h) The holder of a package store license who ships alcoholic beverages

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

01 Sec. 04.09.480. Package store repackaging endorsement. (a) A package 02 store repackaging endorsement authorizes the holder of a package store license to 03 subdivide and sell alcoholic beverages from original packages with federally 04 compliant labels to smaller containers with the standard federal government warnings 05 and the product name. 06 (b) The biennial fee for a package store repackaging endorsement is $200. 07 (c) A package store licensee with a package store repackaging endorsement 08 may 09 (1) subdivide alcoholic beverages 10 (A) for sale on the licensed premises by opening the original 11 package for the purpose of subdividing the contents into smaller packages; or 12 (B) in response to a purchase request from a person who is on 13 the licensed premises or purchase order submitted in accordance with 14 AS 04.09.470(c); 15 (2) permit an agent or employee to subdivide alcoholic beverages, but 16 may not permit a customer or another person who is not an agent or employee of the 17 licensee to subdivide alcoholic beverages. 18 (d) The holder of a package store license who repackages alcoholic beverages 19 without an endorsement under this section commits the offense of unendorsed package 20 store repackaging. 21 (e) The holder of a package store repackaging endorsement who fails to 22 comply with the requirements of this section commits the offense of package store 23 repackaging endorsement noncompliance. 24 (f) Unendorsed package store repackaging is a violation and is punishable by a 25 fine of $500. 26 (g) Package store repackaging endorsement noncompliance is a violation. 27 Sec. 04.09.490. Package store sampling endorsement. (a) A package store 28 sampling endorsement authorizes the holder of a package store license to offer for 29 consumption on the licensed premises at no charge a small sample of an alcoholic 30 beverage from its inventory during the package store's stated hours of business, but not 31 between the hours of midnight and 8:00 a.m.

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

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

01 the golf course with an annotated illustration and a description of the portions of the 02 course that are licensed premises and that are intended to be covered by the 03 endorsement. 04 (d) The holder of a beverage dispensary license or beverage dispensary 05 tourism license who sells or serves alcoholic beverages on a golf course without an 06 endorsement under this section commits the offense of unendorsed golf course service. 07 (e) The holder of a golf course endorsement who fails to comply with (a) of 08 this section commits the offense of golf course endorsement noncompliance. 09 (f) Unendorsed golf course service is a violation and is punishable by a fine of 10 $500. 11 (g) Golf course endorsement noncompliance is a violation. 12 Sec. 04.09.520. Brewery repackaging endorsement. (a) A brewery 13 repackaging endorsement authorizes the holder of a brewery manufacturer license who 14 held a license to operate a brewpub under former AS 04.11.135 and was operating a 15 brewpub on the day before the effective date of this section and who also holds, 16 wholly or in part, a beverage dispensary license, beverage dispensary tourism license, 17 restaurant or eating place license, or a seasonal restaurant or eating place tourism 18 license to offer the holder's brewed beverages for sale for consumption off the licensed 19 premises and to subdivide and sell the holder's brewed beverages from original 20 packages with federally compliant labels to smaller containers with the standard 21 federal government warnings and the product name. 22 (b) The biennial fee for a brewery repackaging endorsement is $200. 23 (c) A brewery manufacturer licensee with a brewery repackaging endorsement 24 (1) is authorized to sell, each day to a person on the licensed premises 25 for consumption off the licensed premises, not more than 26 (A) 5.167 gallons of the holder's beer; or 27 (B) nine liters of sake; 28 (2) may permit an agent or employee to subdivide the holder's brewed 29 beverages, but may not permit a customer or another person who is not an agent or 30 employee of the licensee to subdivide the holder's brewed beverages. 31 (d) In this section, "licensed premises" means a premises licensed under a

01 beverage dispensary license, beverage dispensary tourism license, restaurant or eating 02 place license, or a seasonal restaurant or eating place tourism license that is controlled 03 by a brewery manufacturer licensee. 04 (e) The holder of a brewery manufacturer license who repackages brewed 05 beverages without an endorsement under this section or a brewery retail license under 06 AS 04.09.310 commits the offense of unendorsed brewery repackaging. 07 (f) The holder of a brewery repackaging endorsement who fails to comply 08 with the requirements of this section commits the offense of brewery repackaging 09 endorsement noncompliance. 10 (g) Unendorsed brewery repackaging is a violation, punishable by a fine of 11 $500. 12 (h) Brewery repackaging endorsement noncompliance is a violation. 13 Article 6. Permits. 14 Sec. 04.09.600. Types of permits. (a) A permit allows catering and serving 15 activities for a specific period on a single specified premises and allows an eligible 16 nonprofit organization to host a fundraising or not-for-profit event. 17 (b) The director may issue only the permits authorized in AS 04.09.600 - 18 04.09.690. An application for a permit must be received by the director not less than 19 three business days before the first day of the event. Except for a conditional 20 contractor's permit issued under AS 04.09.690, the director shall require every person 21 who will serve or sell alcohol or check identification of a patron during a permitted 22 event to complete an alcohol server education course under AS 04.21.025 before the 23 first day of the permitted event. 24 (c) An applicant for a permit must follow the application requirements set out 25 in AS 04.11.260. 26 (d) A permit, other than an inventory resale permit under AS 04.09.680 and a 27 conditional contractor's permit under AS 04.09.690, is valid only on the premises, for 28 the event, and for the period specified. 29 (e) The holder of an approved permit may submit a written request for 30 amendment of the approved permit to change the event date, site, designated area, or 31 designated time. The holder of the approved permit shall submit the request to the

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

01 eating place license under AS 04.09.210(d) or a seasonal restaurant or eating place 02 tourism license under AS 04.09.350(f). 03 Sec. 04.09.630. Club caterer's permit. (a) A club caterer's permit authorizes 04 the holder of a club license to sell or dispense alcoholic beverages at an event held off 05 the club's licensed premises. 06 (b) The application for a club caterer's permit filed under AS 04.11.260 must 07 be signed by two officers of the organization. 08 (c) A restriction or prohibition under AS 04.09.220 regarding a club member 09 or a guest of a club member applies at the premises covered by the permit. 10 (d) The director may not issue more than three club caterer's permits to the 11 holder of a club license in a calendar year. 12 Sec. 04.09.640. Art exhibit event permit. (a) An art exhibit event permit 13 authorizes the holder of a beverage dispensary license, a beverage dispensary tourism 14 license, a restaurant or eating place license, or a seasonal restaurant or eating place 15 tourism license to sell and serve brewed beverages and wine for consumption at a 16 specific art exhibit event. 17 (b) The director may issue an art exhibit event permit only for a specific art 18 exhibit event at premises designated in the application for a limited period specified in 19 the application. 20 (c) The director may not grant more than 12 art exhibit event permits to a 21 licensee in a calendar year. 22 (d) An art exhibit event permit may not be exercised during an event that is 23 expected to attract attendees under 21 years of age. 24 (e) Food must be provided in conjunction with the service of brewed 25 beverages and wine under an art exhibit event permit. 26 Sec. 04.09.650. Nonprofit organization event permit. (a) A nonprofit 27 organization event permit authorizes the holder to sell or dispense brewed beverages 28 or wine for consumption at an event organized by the nonprofit organization. 29 (b) Only a nonprofit organization, such as a fraternal, civic, professional, or 30 patriotic organization, that is incorporated under AS 10.20 and has been active for a 31 period of at least two years before filing an application is eligible for a nonprofit

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

01 organization shall submit, together with the application, 02 (1) either a signed copy of a resolution adopted by the board of 03 directors or a copy of the minutes of a board meeting of the nonprofit organization 04 authorizing the application; and 05 (2) a sworn affidavit showing the length of time the organization has 06 been in existence. 07 (d) The director may not issue more than five alcoholic beverage auction 08 permits to a nonprofit organization, including an auxiliary of the organization, in a 09 calendar year. The director may issue a permit only for designated premises for a 10 specific event and for a limited period as specified in the application. 11 (e) The nonprofit organization shall ensure that all profits derived from the 12 sale of brewed beverages or wine under an alcoholic beverage auction permit are paid 13 to the organization that holds the permit and not to an individual. 14 (f) The nonprofit organization may not permit consumption at the auction site 15 of the alcoholic beverages being auctioned under a nonprofit organization alcoholic 16 beverage auction permit. 17 Sec. 04.09.670. Tasting event permit. (a) A tasting event permit authorizes 18 the holder of a package store license to sell or dispense alcoholic beverages at a tasting 19 event held on the licensed premises, or unlicensed areas of the property where the 20 package store is located, excluding the parking lot. 21 (b) A tasting event must be for the purpose of promoting products available 22 for purchase from the package store licensee; only products sold by the package store 23 licensee may be sold or dispensed at the event. 24 (c) The director may issue a tasting event permit only for a specific tasting 25 event at premises designated in the application for a limited period specified in the 26 application. 27 (d) The director may not issue more than six tasting event permits in a 28 calendar year to a package store licensee. If a person holds two or more package store 29 licenses, then the director shall treat each license as separate and distinct when 30 applying the limitation under this subsection, regardless of how many other licenses 31 the person holds, wholly or in part.

01 (e) The director may not issue a tasting event permit for a period that 02 (1) is longer than four hours; 03 (2) ends later than 9:00 p.m. 04 (f) Food must be provided in conjunction with the service of alcoholic 05 beverages under a tasting event permit. 06 Sec. 04.09.680. Inventory resale permit. (a) An inventory resale permit 07 authorizes the holder to sell the remaining inventory of alcoholic beverages of a 08 business when the owner of the business no longer has a valid license under this title. 09 (b) The fee for an inventory resale permit is $100. 10 (c) The holder of an inventory resale permit may sell the remaining alcoholic 11 beverage inventory only to the holder of a valid license under this chapter. 12 (d) The director may issue an inventory resale permit for a period ending 90 13 days after the date of expiration or forfeiture of the license. The director may not issue 14 a permit if the license was suspended or revoked. 15 Sec. 04.09.690. Conditional contractor's permit. (a) A conditional 16 contractor's permit authorizes the holder to sell brewed beverages or wine for 17 consumption only on designated premises for the designated period of the permit 18 under AS 04.11.680 at construction sites that are located outside a city and inside the 19 boundaries of a military or naval reservation. 20 (b) The biennial conditional contractor's permit fee is $1,250. 21 (c) An applicant for a conditional contractor's permit must obtain and file with 22 the board written permission from the commanding officer of the military or naval 23 reservation and the prime contractor of the remotely situated project for the conduct of 24 the activities authorized by the permit. A conditional contractor's permit may be 25 renewed biennially upon reapplication for a permit and may be revoked or suspended 26 at the discretion of the commanding officer or the prime contractor. 27 (d) A conditional contractor's permit may not be transferred and is not valid 28 after the completion of the holder's contract or the closing of the military or naval 29 reservation. 30 Sec. 04.09.700. Failure to comply with a permit requirement. (a) A person 31 who engages in activity that requires a permit under AS 04.09.600 - 04.09.690 without

01 having a permit and a person who violates the terms of a permit issued under 02 AS 04.09.600 - 04.09.690 commits the offense of failure to comply with a permit 03 requirement. 04 (b) Except as provided in (c) of this section, failure to comply with a permit 05 requirement is a violation punishable under AS 04.21.072. 06 (c) Failure to comply with a permit requirement of an inventory resale permit 07 under AS 04.09.680 or a conditional contractor's permit under AS 04.09.690 is 08 punishable by a fine of $500. 09 Article 7. Common Carrier Approval. 10 Sec. 04.09.750. Common carrier approval. (a) A common carrier may not 11 transport or deliver alcoholic beverages to a person in the state unless the board has 12 approved the common carrier under (b) of this section. 13 (b) A common carrier may apply to the board, on a form prescribed by the 14 board, for approval to transport and deliver alcoholic beverages to persons in the state. 15 The board shall approve an application if the common carrier certifies that it will meet 16 the requirements under (c) and (d) of this section. 17 (c) A common carrier delivering alcoholic beverages to a person in the state 18 shall ensure that the package containing alcoholic beverages is delivered directly to a 19 person who 20 (1) presents identification and acceptable proof of age under 21 AS 04.21.050 showing that the person is 21 years of age or older; and 22 (2) provides a signature acknowledging that the person received the 23 package. 24 (d) A common carrier approved by the board under (b) of this section shall 25 make records of shipments of alcoholic beverages to persons in the state available for 26 inspection and audit by the board. The board may require periodic reporting of 27 approved common carriers on a form prescribed by the board. 28 (e) The board shall maintain, periodically review, and make available for 29 public inspection a list of approved common carriers for transport and delivery of 30 alcoholic beverages to persons in the state. 31 (f) The board may remove a previously approved common carrier from the list

01 if the common carrier transports or delivers alcoholic beverages in violation of (c) or 02 (d) of this section. 03 (g) In this section, 04 (1) "common carrier" means a motor vehicle, watercraft, aircraft, or 05 railroad car available for public hire to transport freight or passengers; 06 (2) "transport" has the meaning given in AS 04.11.499. 07 (h) A common carrier that has not been approved by the board to transport and 08 deliver alcoholic beverages and that transports or delivers alcoholic beverages into or 09 within the state commits the offense of unapproved common carrier transport or 10 delivery of alcoholic beverages. 11 (i) An approved common carrier that violates a provision under (c) or (d) of 12 this section commits the offense of common carrier noncompliance for transport or 13 delivery of alcoholic beverages. 14 (j) Unapproved common carrier transport or delivery of alcoholic beverages is 15 a violation and is punishable by a fine of $500. 16 (k) Common carrier noncompliance for transport or delivery of alcoholic 17 beverages is a violation. 18 * Sec. 11. AS 04.11.010(a) is amended to read: 19 (a) A [EXCEPT AS PROVIDED IN AS 04.11.020, A] person may not 20 knowingly [MANUFACTURE, SELL, OFFER FOR SALE,] possess for [SALE OR] 21 barter, traffic in, or barter an alcoholic beverage unless under license or permit issued 22 under this title. 23 * Sec. 12. AS 04.11.010(b) is amended to read: 24 (b) Except as provided in this subsection, a person may not solicit or receive 25 orders for the delivery of an alcoholic beverage in an area that has adopted a local 26 option under AS 04.11.491. If the area has adopted a local option under 27 AS 04.11.491(a)(1), (2), or (3) [,] or (b)(1) or (2), a package store licensee outside of 28 that local option area may receive orders as provided under a package store shipping 29 endorsement under AS 04.09.460 [AS 04.11.150] but may not solicit in that area or 30 receive orders through an agent or employee in that area. This subsection does not 31 apply to a package store licensee who operates a package store in an area that has

01 adopted a local option under AS 04.11.491(a)(2)(C) or (3)(C) or (b)(2)(C). A person 02 who violates this subsection is punishable upon conviction as provided under 03 AS 04.16.200(a) or (b). 04 * Sec. 13. AS 04.11.010(c) is amended to read: 05 (c) Unless a municipality or established village has adopted a more restrictive 06 local option under AS 04.11.491(g), in a criminal prosecution for possession of 07 alcoholic beverages for barter or sale in violation of (a) of this section, AS 04.09.060, 08 04.09.070, 04.09.140, 04.09.145, 04.09.370, or 04.09.380, the fact that a person 09 (1) possessed more than 10 1/2 liters of distilled spirits or 24 liters or 10 more of wine, or either a half-barrel keg [HALF-KEG] of brewed [MALT] 11 beverages or 12 gallons or more of brewed [MALT] beverages in individual 12 containers in an area where the sale of alcoholic beverages is restricted or prohibited 13 under AS 04.11.491 creates a presumption that the person possessed the alcoholic 14 beverages for barter or sale; 15 (2) sends, transports, or brings more than 10 1/2 liters of distilled 16 spirits or 24 liters or more of wine, or either a half-barrel keg [HALF-KEG] of 17 brewed [MALT] beverages or 12 gallons or more of brewed [MALT] beverages in 18 individual containers to an area where the sale of alcoholic beverages is restricted or 19 prohibited under AS 04.11.491 creates a presumption that the person sent, transported, 20 or brought the alcoholic beverages for barter or sale in the area. 21 * Sec. 14. AS 04.11.015 is amended to read: 22 Sec. 04.11.015. Purchase from nonlicensee prohibited. (a) A person may not 23 purchase or barter for alcoholic beverages from a person who is not a licensee, 24 permittee, or an agent or employee of a licensee or permittee. 25 (b) A person who violates (a) of this section is guilty of a violation. 26 * Sec. 15. AS 04.11.030(b) is amended to read: 27 (b) If an application for the transfer of ownership of a license from a deceased 28 licensee is not made within 180 [90] days of the death of the licensee or within an 29 additional 90 days if an application for transfer of ownership made by the executor is 30 denied, or no petition is made to the board for an extension of time under (c) of this 31 section within the time, the license is forfeited.

01 * Sec. 16. 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. 17. 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. 18. 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. 19. 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. 20. 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. 21. 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. 22. 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. 23. 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. 24. AS 04.11.270 is amended to read: 29 Sec. 04.11.270. Application for renewal of license, license with one or more 30 endorsements, or conditional contractor's permit. (a) An application for renewal of 31 a license, license with one or more endorsements, or [RENEWAL OF A]

01 conditional contractor's permit under 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, license with one or more endorsements, or permit shall be 09 renewed as follows: 10 (1) on or before November 1, the director shall mail a renewal 11 application to each licensee whose license, license with one or more endorsements, 12 or permit, unless renewed, will expire on December 31 of that year; the application 13 shall be mailed to the licensee or permittee [AT THE LICENSED PREMISES OR] at 14 a mailing address or electronic mail address furnished by the licensee or permittee; 15 (2) the licensee or permittee shall submit the completed renewal 16 application and the biennial [LICENSE] fee to the director before January 1; 17 (3) a renewal application filed after December 31 is delinquent and 18 must be accompanied by a $500 penalty fee; 19 (4) if December 31 falls on a weekend or a state holiday, the deadline 20 is extended to the first business day following December 31. 21 * Sec. 25. AS 04.11.270 is amended by adding a new subsection to read: 22 (c) This section does not apply to a winery direct shipment license issued 23 under AS 04.09.360. 24 * Sec. 26. AS 04.11.280 is amended to read: 25 Sec. 04.11.280. Application for transfer of a license to another person. (a) 26 An application for transfer of a license or a license with one or more endorsements 27 to another person must contain the same information about the transferee as is required 28 of an applicant for a new license or endorsement under AS 04.11.260 and must 29 include other information required by the board. 30 (b) An application for the transfer of a license or a license with one or more 31 endorsements to another person must be accompanied by a statement, under oath,

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

01 (a) An application requesting issuance of a new license or endorsement shall 02 be denied if 03 (1) the board finds, after review of all relevant information, that 04 issuance of the license or endorsement would not be in the best interests of the 05 public; 06 (2) issuance of the license is prohibited by AS 04.11.410, relating to 07 location of premises near churches and schools; 08 (3) the application has not been completed in accordance with 09 AS 04.11.260; 10 (4) issuance of the license or endorsement would violate the 11 restrictions pertaining to the particular license or endorsement imposed under this 12 title; 13 (5) issuance of the license is prohibited under this title as a result of an 14 election conducted under AS 04.11.507; 15 (6) the requirements of AS 04.11.420 - 04.11.450 relating to zoning, 16 ownership and location of the license, and the identity and financing of a licensee 17 have not been met or the requirements of AS 04.11.430(b) relating to location of 18 the endorsement [, AND THE IDENTITY AND FINANCING OF A LICENSEE] 19 have not been met; 20 (7) issuance of the license is prohibited under AS 04.11.400(a) or 21 prohibition of issuance of the license is found necessary under AS 04.11.400(b); 22 (8) the application contains false statements of material fact; 23 (9) the license is sought for the sale of alcoholic beverages in a first or 24 second class city where there are no licensed premises at the time of application unless 25 a majority of the voters have voted not to approve a local option to restrict or prohibit 26 the sale of alcoholic beverages under AS 04.11.491, have voted to approve a local 27 option to allow the type of premises under AS 04.11.491(a)(2) or (3), or have voted to 28 remove a restriction or prohibition on the sale of alcoholic beverages under 29 AS 04.11.495; or 30 (10) the license is sought for the sale of alcoholic beverages in an 31 established village where there are no licensed premises at the time of application

01 unless a majority of the voters have voted not to approve a local option to restrict or 02 prohibit the sale of alcoholic beverages under AS 04.11.491, have voted to approve a 03 local option to allow the type of premises under AS 04.11.491(b)(2), or have voted to 04 remove a restriction or prohibition on the sale of alcoholic beverages under 05 AS 04.11.495. 06 * Sec. 32. AS 04.11.330(a) is amended to read: 07 (a) An application requesting renewal of a license shall be denied if 08 (1) the board finds, after review of all relevant information, that 09 renewal of the license would not be in the best interests of the public; 10 (2) the license has been revoked for any cause; 11 (3) the applicant has not operated the licensed premises for at least 240 12 hours during each of the two preceding calendar years, unless the board determines 13 that the licensed premises are under construction or cannot be operated through no 14 fault of the applicant; 15 (4) the board finds that issuance of an existing license under 16 AS 04.11.400(d) has not encouraged tourist trade; 17 (5) the requirements of AS 04.11.420 - 04.11.450 relating to zoning, 18 ownership of the license, and financing of the licensee have not been met; 19 (6) renewal of the license would violate the restrictions pertaining to 20 the particular license under this title or the license has been operated in violation of a 21 condition or restriction imposed by the board; 22 (7) renewal of the license is prohibited under this title as a result of an 23 election conducted under AS 04.11.507; or 24 (8) the application has not been completed in accordance with 25 AS 04.11.270 [; OR 26 (9) THE LICENSE WAS ISSUED UNDER AS 04.11.400(g), AND 27 THE BOARD FINDS THAT THE PUBLIC CONVENIENCE DOES NOT 28 REQUIRE RENEWAL]. 29 * Sec. 33. AS 04.11.330(a), as amended by sec. 32 of this Act, is amended to read: 30 (a) An application requesting renewal of a license or endorsement shall be 31 denied if

01 (1) the board finds, after review of all relevant information, that 02 renewal of the license or endorsement would not be in the best interests of the public; 03 (2) the license or endorsement has been revoked for any cause; 04 (3) the applicant has not operated the licensed premises for at least 240 05 hours during each of the two preceding calendar years, unless the board determines 06 that the licensed premises are under construction or cannot be operated through no 07 fault of the applicant; 08 (4) the board finds that issuance of an existing beverage dispensary 09 tourism license under AS 04.09.340 or seasonal restaurant or eating place tourism 10 license under AS 04.09.350 [AS 04.11.400(d)] has not encouraged tourist trade; 11 (5) the requirements of AS 04.11.420 - 04.11.450 relating to zoning, 12 ownership of the license, and financing of the licensee have not been met; 13 (6) renewal of the license or endorsement would violate the 14 restrictions pertaining to the particular license or endorsement under this title or the 15 license or endorsement has been operated in violation of a condition or restriction 16 imposed by the board; 17 (7) renewal of the license is prohibited under this title as a result of an 18 election conducted under AS 04.11.507; or 19 (8) the application has not been completed in accordance with 20 AS 04.09.360 or AS 04.11.270. 21 * Sec. 34. AS 04.11.330(b) is amended to read: 22 (b) An application for renewal of a license may be denied if the applicant is 23 delinquent in the payment of taxes, fees, or penalties due to the state or a local 24 government if the tax liability or fees or penalties assessed arise [ARISES] in whole 25 or in part out of the licensed business. 26 * Sec. 35. AS 04.11.330(d) is amended to read: 27 (d) Notwithstanding (a)(3) of this section, a theater license issued under 28 AS 04.09.250, a common carrier dispensary license issued under AS 04.09.260, or 29 a sporting event [RECREATIONAL SITE] license issued under AS 04.09.270 30 [AS 04.11.210] may be renewed if the license was exercised at least once during each 31 of the two preceding calendar years.

01 * Sec. 36. AS 04.11.330 is amended by adding a new subsection to read: 02 (e) The requirements of (a)(3), (a)(5), and (a)(7) of this section do not apply to 03 a winery direct shipment license issued under AS 04.09.360. 04 * Sec. 37. AS 04.11.340 is amended to read: 05 Sec. 04.11.340. Denial of request for relocation. An application requesting 06 approval for the relocation of licensed premises shall be denied if 07 (1) the board finds, after review of all relevant information, that 08 relocation of the license would not be in the best interests of the public; 09 (2) the relocation is prohibited under AS 04.11.400(a) or (b); 10 (3) the license would be relocated out of the established village, 11 incorporated city, unified municipality, or population area established under 12 AS 04.11.400(a) within which it is located; 13 (4) transfer of ownership is to be made concurrently with the 14 relocation of the licensed premises and a ground for denial of the transfer of 15 ownership under AS 04.11.360 is presented; 16 (5) the application has not been completed in accordance with 17 AS 04.11.290; 18 (6) relocation of the license would result in violation of a local zoning 19 regulation or ordinance [LAW]; 20 (7) relocation of the license would violate the restrictions pertaining to 21 the particular license imposed by this title; 22 (8) relocation of the license is prohibited under this title as a result of 23 an election conducted under AS 04.11.507; or 24 (9) the license was issued under AS 04.11.400(d) [, (e), OR (g)]. 25 * Sec. 38. AS 04.11.340, as amended by sec. 37 of this Act, is amended to read: 26 Sec. 04.11.340. Denial of request for relocation. An application requesting 27 approval for the relocation of licensed premises shall be denied if 28 (1) the board finds, after review of all relevant information, that 29 relocation of the license would not be in the best interests of the public; 30 (2) the relocation is prohibited under AS 04.11.400(a) or (b); 31 (3) the license would be relocated out of the established village,

01 incorporated city, unified municipality, or population area established under 02 AS 04.11.400(a) within which it is located except as provided under 03 AS 04.11.400(k); 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 regulation or ordinance; 11 (7) relocation of the license would violate the restrictions pertaining to 12 the particular license imposed by this title; or 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)]. 16 * Sec. 39. AS 04.11.360 is amended to read: 17 Sec. 04.11.360. Denial of transfer of a license to another person. An 18 application requesting approval of a transfer of a license to another person under this 19 title shall be denied if 20 (1) the board finds, after review of all relevant information, that 21 transfer of a license to another person would not be in the best interests of the public; 22 (2) the application has not been completed in accordance with 23 AS 04.11.280; 24 (3) the application contains false statements of material fact; 25 (4) the transferor has not paid all debts or taxes arising from the 26 conduct of the business licensed under this title unless 27 (A) the transferor gives security for the payment of the debts or 28 taxes satisfactory to the creditor or taxing authority; or 29 (B) the transfer is under a promise given as collateral by the 30 transferor to the transferee in the course of an earlier transfer of the license 31 under which promise the transferor is obliged to transfer the license back to the

01 transferee in the event of default in payment for property conveyed as part of 02 the earlier transfer of the license; 03 (5) transfer of the license to another person would result in violation of 04 the provisions of this title relating to identity of licensees and financing of licensees; 05 (6) transfer of the license to another person would violate the 06 restrictions pertaining to the particular license under this title; 07 (7) transfer of the license to another person is prohibited under the 08 provisions of this title as a result of an election conducted under AS 04.11.507; 09 (8) the prospective transferee does not have the qualifications required 10 under this title of an original applicant; however, an application may not be denied 11 because a prospective transferee under AS 04.11.400(d)(2) does not have the 12 qualifications required under AS 04.11.400(d)(1); 13 (9) the license was issued under AS 04.11.100(f) [OR 04.11.400(g)]; 14 however, this paragraph does not apply to a beverage dispensary license issued before 15 June 6, 1985, under former AS 04.11.400(j) if the transfer does not involve a change 16 in location; or 17 (10) the license was issued under AS 04.11.135, unless the transferor is 18 also applying to transfer the beverage dispensary license required under AS 04.11.135 19 to the same transferee. 20 * Sec. 40. AS 04.11.360, as amended by sec. 39 of this Act, is amended to read: 21 Sec. 04.11.360. Denial of transfer of a license to another person. An 22 application requesting approval of a transfer of a license to another person under this 23 title shall be denied if 24 (1) the board finds, after review of all relevant information, that 25 transfer of a license to another person would not be in the best interests of the public; 26 (2) the application has not been completed in accordance with 27 AS 04.11.280; 28 (3) the application contains false statements of material fact; 29 (4) the transferor has not paid all debts or taxes arising from the 30 conduct of the business licensed under this title unless 31 (A) the transferor gives security for the payment of the debts or

01 taxes satisfactory to the creditor or taxing authority; or 02 (B) the transfer is under a promise given as collateral by the 03 transferor to the transferee in the course of an earlier transfer of the license 04 under which promise the transferor is obliged to transfer the license back to the 05 transferee in the event of default in payment for property conveyed as part of 06 the earlier transfer of the license; 07 (5) transfer of the license to another person would result in violation of 08 the provisions of this title relating to identity of licensees and financing of licensees; 09 (6) transfer of the license to another person would violate the 10 restrictions pertaining to the particular license under this title; 11 (7) transfer of the license to another person is prohibited under the 12 provisions of this title as a result of an election conducted under AS 04.11.507; or 13 (8) the prospective transferee does not have the qualifications required 14 under this title of an original applicant; however, an application may not be denied 15 because a prospective transferee under AS 04.09.340(c)(2) [AS 04.11.400(d)(2)] does 16 not have the qualifications required under AS 04.09.340(c)(1) [AS 04.11.400(d)(1); 17 (9) THE LICENSE WAS ISSUED UNDER AS 04.11.100(f); 18 HOWEVER, THIS PARAGRAPH DOES NOT APPLY TO A BEVERAGE 19 DISPENSARY LICENSE ISSUED BEFORE JUNE 6, 1985, UNDER FORMER 20 AS 04.11.400(j) IF THE TRANSFER DOES NOT INVOLVE A CHANGE IN 21 LOCATION; OR 22 (10) THE LICENSE WAS ISSUED UNDER AS 04.11.135, UNLESS 23 THE TRANSFEROR IS ALSO APPLYING TO TRANSFER THE BEVERAGE 24 DISPENSARY LICENSE REQUIRED UNDER AS 04.11.135 TO THE SAME 25 TRANSFEREE]. 26 * Sec. 41. AS 04.11.365 is amended to read: 27 Sec. 04.11.365. Licensed premises in multi-unit residential housing 28 developments owned or financed by the Alaska Housing Finance Corporation. 29 For premises located in a multi-unit residential housing development owned or 30 financed by the Alaska Housing Finance Corporation, the board may issue a new 31 license under AS 04.11.320, renew a license under AS 04.11.330, or approve a request

01 for relocation under AS 04.11.340 if the Alaska Housing Finance Corporation 02 authorizes the use under AS 18.56.230 and 03 [(1) THE LICENSE IS FOR A RESTAURANT OR EATING PLACE 04 UNDER AS 04.11.100; OR 05 (2)] the premises are covered by a restaurant endorsement 06 [DESIGNATED BY THE BOARD AS A RESTAURANT] under AS 04.09.450 07 [AS 04.16.049]. 08 * Sec. 42. AS 04.11.370(a) is amended to read: 09 (a) A license, endorsement, or permit shall be suspended or revoked if the 10 board finds 11 (1) misrepresentation of a material fact on an application made under 12 this title or a regulation adopted under this title; 13 (2) continuation of the manufacture, sale, or service of alcoholic 14 beverages by the licensee or permittee would be contrary to the best interests of the 15 public; 16 (3) failure on the part of the licensee to correct a defect that constitutes 17 a violation of this title, a condition or restriction imposed by the board, a regulation 18 adopted under this title, or other laws after receipt of notice issued by the board or its 19 agent; 20 (4) conviction of a licensee of a violation of this title, a regulation 21 adopted under this title, or an ordinance adopted under AS 04.21.010; 22 (5) conviction of an agent or employee of a licensee of a violation of 23 this title, a regulation adopted under this title, or an ordinance adopted under 24 AS 04.21.010, if the licensee is found by the board to have either knowingly allowed 25 the violation or to have recklessly or with criminal negligence failed to act in 26 accordance with the duty prescribed under AS 04.21.030 with the result that the agent 27 or employee violates a law, regulation, or ordinance; 28 (6) failure of the licensee to comply with the public health, fire, or 29 safety laws and regulations in the state; 30 (7) use of the licensed premises as a resort for illegal possessors or 31 users of narcotics, prostitutes, or sex traffickers; in addition to any other legally

01 competent evidence, the character of the premises may be proved by the general 02 reputation of the premises in the community as a resort for illegal possessors or users 03 of narcotics, prostitutes, or sex traffickers; 04 (8) occurrence of illegal gambling within the limits of the licensed 05 premises; 06 (9) the licensee permitted a public offense involving moral turpitude to 07 occur on the licensed premises; 08 (10) violation by a licensee of this title, a condition or restriction 09 imposed by the board, a regulation adopted under this title, or an ordinance adopted 10 under AS 04.21.010; or 11 (11) violation by an agent or employee of a licensee of a provision of 12 this title, a condition or restriction imposed by the board, a regulation adopted under 13 this title, or an ordinance adopted under AS 04.21.010, if the licensee is found by the 14 board to have either knowingly allowed the violation or to have recklessly or with 15 criminal negligence failed to act in accordance with the duty prescribed under 16 AS 04.21.030 with the result that the agent or employee violates the law, condition or 17 restriction, regulation, or ordinance. 18 * Sec. 43. AS 04.11.395 is amended to read: 19 Sec. 04.11.395. Conditions [BOARD IMPOSED CONDITIONS] or 20 restrictions imposed on a license, endorsement, or permit. The board may, in the 21 best interests of the public, impose conditions or restrictions on a license, 22 endorsement, or permit issued under this chapter. 23 * Sec. 44. AS 04.11.395 is amended by adding a new subsection to read: 24 (b) Except for a conditional contractor's permit issued under AS 04.09.690, 25 the director may, in the best interests of the public, impose conditions or restrictions 26 on a permit issued under this chapter. 27 * Sec. 45. AS 04.11.400(a) is amended to read: 28 (a) Except as provided in (d), (f), and (h) - (k) [(d) - (k)] of this section and 29 AS 04.11.405, a new license may not be issued and the board may prohibit relocation 30 of an existing license 31 (1) outside an established village, incorporated city, unified

01 municipality, or organized borough if, after the issuance or relocation, there would be 02 (A) more than one restaurant or eating place license for each 1,500 population or 03 fraction of that population, or (B) more than one license of each other type, including 04 licenses that have been issued under (d) [OR (e)] of this section, for each 3,000 05 population or fraction of that population, in a radius of five miles of the licensed 06 premises, excluding the populations of established villages, incorporated cities, unified 07 municipalities, and organized boroughs that are wholly or partly included within the 08 radius; 09 (2) inside an established village, incorporated city, or unified 10 municipality if, after the issuance or relocation, there would be inside the established 11 village, incorporated city, or unified municipality 12 (A) more than one restaurant or eating place license for each 13 1,500 population or fraction of that population; or 14 (B) more than one license of each other type, including licenses 15 that have been issued under (d) [OR (e)] of this section, for each 3,000 16 population or fraction of that population; 17 (3) inside an organized borough but outside an established village or 18 incorporated city located within the borough if, after the issuance or relocation, there 19 would be inside the borough, but outside the established villages and incorporated 20 cities located within the borough, 21 (A) more than one restaurant or eating place license for each 22 1,500 population or fraction of that population; or 23 (B) more than one license of each other type, including licenses 24 that have been issued under (d) [OR (e)] of this section, for each 3,000 25 population or fraction of that population excluding the population of those 26 established villages that have adopted a local option under AS 04.11.491(b)(1), 27 (3), or (4), and excluding the population of incorporated cities located within 28 the organized borough. 29 * Sec. 46. AS 04.11.400(a), as amended by sec. 45 of this Act, is amended to read: 30 (a) Except as provided in (f), (i), and (k) [(d), (f), and (h) - (k)] of this section 31 and AS 04.11.405, a new license may not be issued and the board may prohibit

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

01 (3) inside an organized borough but outside an established village or 02 incorporated city located within the borough if, after the issuance or relocation, there 03 would be inside the borough, but outside the established villages and incorporated 04 cities located within the borough, excluding the population of those established 05 villages that have adopted a local option under AS 04.11.491(b)(1) or (3), and 06 excluding the population of incorporated cities located within the organized 07 borough; 08 (A) more than one restaurant or eating place license for each 09 1,500 population or fraction of that population; [OR] 10 (B) more than one brewery retail, one winery retail, and 11 one distillery retail license for each 9,000 population or fraction of that 12 population; or 13 (C) more than one license of each other type, except a type 14 listed in (i) of this section [INCLUDING LICENSES THAT HAVE BEEN 15 ISSUED UNDER (d) OF THIS SECTION], for each 3,000 population or 16 fraction of that population [EXCLUDING THE POPULATION OF THOSE 17 ESTABLISHED VILLAGES THAT HAVE ADOPTED A LOCAL OPTION 18 UNDER AS 04.11.491(b)(1), (3), OR (4), AND EXCLUDING THE 19 POPULATION OF INCORPORATED CITIES LOCATED WITHIN THE 20 ORGANIZED BOROUGH]. 21 * Sec. 47. AS 04.11.400(i) is repealed and reenacted to read: 22 (i) This section does not apply to a 23 (1) brewery manufacturer license issued under AS 04.09.020; 24 (2) winery manufacturer license issued under AS 04.09.030; 25 (3) distillery manufacturer license issued under AS 04.09.040; 26 (4) general wholesale license issued under AS 04.09.100; 27 (5) limited wholesale brewed beverage and wine license under 28 AS 04.09.110; 29 (6) outdoor recreation lodge license issued under AS 04.09.280; 30 (7) destination resort license issued under AS 04.09.300; 31 (8) beverage dispensary tourism license issued under AS 04.09.340;

01 (9) seasonal restaurant or eating place tourism license issued under 02 AS 04.09.350; 03 (10) winery direct shipment license issued under AS 04.09.360; 04 (11) conditional contractor's permit issued under AS 04.09.690. 05 * Sec. 48. AS 04.11.400(k) is amended to read: 06 (k) The board may allow the relocation of an existing beverage dispensary 07 license under AS 04.09.200 or former AS 04.11.090 to a restaurant, eating place, or 08 hotel, motel, resort, or similar business that contains a restaurant or eating place, or of 09 an existing package store license under AS 04.09.230 or former AS 04.11.150, in a 10 borough with a population of 50,000 [60,000] or more [IF THE GOVERNING BODY 11 OF THE BOROUGH APPROVES THE RELOCATION. HOWEVER, IF THE 12 RELOCATION OF THE LICENSE IS] into or within an incorporated city in the 13 borough. The [, THE] board may not approve the relocation unless, at the time of 14 application, the existing number of issued licenses of the type under consideration 15 for relocation located within the borough exceeds the maximum allowed under 16 (a) of this section, and the governing bodies of both the borough and the incorporated 17 city approve the relocation. The board may allow not more than three relocations into 18 each city [IN A BOROUGH] under this subsection each decade. In this subsection, 19 "decade" means each 10-year period beginning April 1 in a year ending in zero. 20 * Sec. 49. AS 04.11 is amended by adding a new section to read: 21 Sec. 04.11.405. Petition for additional restaurant or eating place licenses 22 for certain local governing bodies. (a) A first class city, a home rule city, or a unified 23 municipality may submit a resolution to the board, adopted by its legislative body, 24 petitioning the board for the issuance of additional restaurant or eating place licenses 25 under AS 04.11.100 that exceed the limits under AS 04.11.400(a) in accordance with 26 this section. 27 (b) The board, following a public hearing, may issue one or more additional 28 restaurant or eating place licenses under AS 04.11.100, within the boundaries of the 29 municipality, if the board finds that 30 (1) the municipality 31 (A) serves as a center for commercial activity within and

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

01 (5) additional justification, as necessary, to demonstrate that granting 02 of the additional licenses is in the public interest. 03 (d) If the board grants a petition for additional restaurant or eating place 04 licenses under this section to a municipality, the board may not authorize additional 05 restaurant or eating place licenses to the same municipality under this section for the 06 following three years. 07 * Sec. 50. AS 04.11.405(a), enacted by sec. 49 of this Act, is amended to read: 08 (a) A first class city, a home rule city, or a unified municipality may submit a 09 resolution to the board, adopted by its legislative body, petitioning the board for the 10 issuance of additional restaurant or eating place licenses under AS 04.09.210 11 [AS 04.11.100] that exceed the limits under AS 04.11.400(a) in accordance with this 12 section. 13 * Sec. 51. AS 04.11.405(b), enacted by sec. 49 of this Act, is amended to read: 14 (b) The board, following a public hearing, may issue one or more additional 15 restaurant or eating place licenses under AS 04.09.210 [AS 04.11.100], within the 16 boundaries of the municipality, if the board finds that 17 (1) the municipality 18 (A) serves as a center for commercial activity within and 19 outside the boundaries of the municipality by providing goods and services to a 20 population that is greater than the permanent resident population within the 21 boundaries of the municipality; 22 (B) maintains a local law enforcement department; 23 (C) exercises planning or land-use authority; and 24 (D) at the time of the petition, meets or exceeds the maximum 25 limit under AS 04.11.400(a) for restaurant or eating place licenses issued under 26 AS 04.09.210 [AS 04.11.100]; 27 (2) the number of additional licenses does not exceed the number of 28 additional licenses requested by the municipality in the petition; and 29 (3) granting the additional licenses is in the public interest. 30 * Sec. 52. AS 04.11.420(a) is amended to read: 31 (a) A person may not be issued a new license, endorsement, or permit or

01 transfer a license or a license with endorsement to a new location in a municipality 02 if a zoning regulation or ordinance prohibits the land use [SALE OR 03 CONSUMPTION OF ALCOHOLIC BEVERAGES] unless a variance of the 04 regulation or ordinance has been approved. 05 * Sec. 53. AS 04.11.420 is amended by adding a new subsection to read: 06 (c) Notwithstanding (a) of this section, a license may be renewed if 07 (1) the license was issued before the effective date of a change to a 08 local zoning regulation or ordinance that would prohibit the renewal; and 09 (2) at the time the license was issued, the license conformed with local 10 zoning regulations and ordinances. 11 * Sec. 54. AS 04.11.430 is amended to read: 12 Sec. 04.11.430. Person and location. (a) Each license shall be issued to a 13 specific individual or individuals, to a partnership, including a limited partnership, to a 14 limited liability organization, [OR] to a corporation, to a government entity, or to a 15 tribal organization. If the license is issued to a corporation or a limited liability 16 organization, the registered agent of the corporation or limited liability organization 17 may [MUST] be either an individual resident of the state or a domestic corporation 18 authorized to transact business in this state whose business office is the same as 19 the registered office. 20 (b) Except for a license authorizing the sale of alcoholic beverages on a 21 common carrier, a specific location shall be indicated on the license, endorsement, or 22 permit as the licensed premises, the principal address of which shall be indicated on 23 the license, endorsement, or permit. The mailing address, telephone number, and 24 electronic mailing address of a licensee or, if the licensee is a corporation, the 25 address, telephone number, and electronic mailing address of the registered office 26 of the corporation must be kept current and on file in the main office of the board. 27 * Sec. 55. AS 04.11.450(b) is amended to read: 28 (b) A person who is a representative or owner of a wholesale business 29 licensed under AS 04.09.100 or 04.09.110 [, BREWERY, WINERY, BOTTLING 30 WORKS, OR DISTILLERY] may not be issued, solely or together with others, a 31 manufacturer license issued under AS 04.09.020 - 04.09.040, or a retail license

01 issued under AS 04.09.200 - 04.09.360 [BEVERAGE DISPENSARY LICENSE, A 02 RESTAURANT OR EATING PLACE LICENSE, OR PACKAGE STORE 03 LICENSE. A HOLDER OF A BEVERAGE DISPENSARY LICENSE MAY BE 04 ISSUED A BREWPUB LICENSE, SUBJECT TO THE PROVISIONS OF 05 AS 04.11.135. THE PROHIBITION AGAINST ISSUANCE OF A RESTAURANT 06 OR EATING PLACE LICENSE IMPOSED UNDER THIS SUBSECTION DOES 07 NOT APPLY TO A RESTAURANT OR EATING PLACE LICENSE ISSUED ON 08 OR BEFORE OCTOBER 1, 1996 OR A RESTAURANT OR EATING PLACE 09 LICENSE ISSUED UNDER AN APPLICATION FOR A RESTAURANT OR 10 EATING PLACE LICENSE APPROVED ON OR BEFORE OCTOBER 1, 1996]. 11 * Sec. 56. AS 04.11.450(e) is amended to read: 12 (e) A holder of either a general wholesale license or a limited wholesale 13 brewed [MALT] beverage and wine license may not be employed by or act as the 14 agent or employee of the holder of a manufacturer [BEVERAGE DISPENSARY OR 15 PACKAGE STORE] license under AS 04.09.020 - 04.09.040 or a retail license 16 under AS 04.09.200 - 04.09.360. 17 * Sec. 57. AS 04.11.450 is amended by adding new subsections to read: 18 (g) The holder of a manufacturer license that annually produces in total 19 300,000 barrels or more of brewed beverages or mead or cider containing less than 8.5 20 percent alcohol by volume, 50,000 nine-liter-equivalent cases or more of wine, sake, 21 or mead or cider containing 8.5 percent or more alcohol by volume, or 50,000 nine- 22 liter-equivalent cases or more of distilled spirits may not be issued, solely or together 23 with others, a license under AS 04.09.100 - 04.09.360. 24 (h) For purposes of calculating the volume that the holder of a manufacturer 25 license produces under this section, the volume of production must include all 26 production by 27 (1) the holder of the manufacturer's license; and 28 (2) an officer, director, agent, employee, or affiliate of the holder; in 29 this paragraph, "affiliate" means a person that directly or indirectly, through one or 30 more intermediaries, controls, or is controlled by, or is under common control with, a 31 corporation.

01 * Sec. 58. AS 04.11.460 is amended by adding a new subsection to read: 02 (d) This section does not apply to a winery direct shipment license issued 03 under AS 04.09.360. 04 * Sec. 59. AS 04.11.470 is amended to read: 05 Sec. 04.11.470. Objection. A person may object to an application for issuance, 06 renewal, transfer of location, or transfer to another person of a license, for issuance, 07 renewal, or transfer to another person of a license with one or more 08 endorsements, for issuance of an endorsement or for issuance of a permit, by 09 serving upon the applicant and the board the reasons for the objection. The board shall 10 consider the objections and testimony received at a hearing conducted under 11 AS 04.11.510(b)(2) when it considers the application. An objection and the record of a 12 hearing conducted under AS 04.11.510(b)(2) shall be retained as part of the board's 13 permanent record of its review of the application. 14 * Sec. 60. AS 04.11.480(a) is amended to read: 15 (a) A local governing body may protest the issuance, renewal, relocation, or 16 transfer to another person of a license, issuance, renewal, or transfer to another 17 person of a license with one or more endorsements, or issuance of an 18 endorsement by sending the board and the applicant a protest and the reasons for the 19 protest within 60 days of the date [RECEIPT FROM THE BOARD] of the notice of 20 filing of the application. A protest received after the 60-day period may not be 21 accepted by the board, and in no event may a protest cause the board to reconsider an 22 approved renewal, relocation, or transfer. The local governing body may protest the 23 continued operation of a license or endorsement during the second year of the 24 biennial license period by sending the board and the licensee a protest and the reasons 25 for the protest by January 31 of the second year of the license. The procedures for 26 action on a protest of continued operation of a license or endorsement are the same as 27 the procedures for action on a protest of a renewal application. The board shall 28 consider a protest and testimony received at a hearing conducted under 29 AS 04.11.510(b)(2) or (4) when it considers the application or continued operation, 30 and the protest and the record of the hearing conducted under AS 04.11.510(b)(2) or 31 (4) shall be kept as part of the board's permanent record of its review. If an application

01 or continued operation is protested, the board shall deny the application or continued 02 operation unless the board finds that the protest is arbitrary, capricious, or [AND] 03 unreasonable. 04 * Sec. 61. AS 04.11.480(b) is amended to read: 05 (b) If the permanent residents residing outside of but within two miles of an 06 incorporated city or an established village wish to protest the issuance, renewal, or 07 transfer of a license or a license with one or more endorsements within the city or 08 village, they shall file with the board a petition meeting the requirements of 09 AS 04.11.510(b)(3) requesting a public hearing not later than [WITHIN] 30 days 10 after [OF] the posting of notice required under AS 04.11.310, or by December 31 of 11 the year application is made for renewal of a license. The board shall consider 12 testimony received at a hearing conducted under AS 04.11.510(b)(3) when it considers 13 the application, and the record of a hearing conducted under AS 04.11.510(b)(3) shall 14 be retained as part of the board's permanent record of its review of the application. 15 * Sec. 62. AS 04.11.480(c) is amended to read: 16 (c) A local governing body may recommend that a license be issued, renewed, 17 relocated, or transferred, or that a license with one or more endorsements be 18 issued, renewed, or transferred to another person, with conditions. The board shall 19 consider recommended conditions and testimony received at a hearing conducted 20 under AS 04.11.510(b)(2) or (4) when it considers the application or continued 21 operation, and the recommended conditions and the record of the hearing conducted 22 under AS 04.11.510(b)(2) or (4) shall be kept as part of the board's permanent record 23 of its review. If the local governing body recommends conditions, the board shall 24 impose the recommended conditions unless the board finds that the recommended 25 conditions are arbitrary, capricious, or unreasonable. If a condition recommended by a 26 local governing body is imposed on a licensee, the local governing body shall assume 27 responsibility for monitoring compliance with the condition, except as otherwise 28 provided by the board. 29 * Sec. 63. AS 04.11.480 is amended by adding a new subsection to read: 30 (e) If the location or proposed location of a license is within the boundaries of 31 more than one local government, each local governing body may protest the issuance,

01 renewal, relocation, or transfer of a license. 02 * Sec. 64. AS 04.11.491(a) is amended to read: 03 (a) If a majority of the persons voting on the question vote to approve the 04 option, a municipality shall adopt a local option to prohibit 05 (1) the sale of alcoholic beverages; 06 (2) the sale of alcoholic beverages except by one or more of the 07 following listed on the ballot: 08 (A) a restaurant or eating place licensee; 09 (B) a beverage dispensary licensee; 10 (C) a package store licensee; 11 (D) a caterer holding a beverage dispensary caterer's permit 12 under AS 04.09.610 [AS 04.11.230] to sell alcoholic beverages at a site within 13 the municipality who is also licensed under a beverage dispensary license for 14 premises outside of the municipality; 15 (E) a winery manufacturer licensee; 16 (F) a winery manufacturer licensee, except that sales may 17 occur only to a person licensed under this title or in another state or country; or 18 (G) an outdoor recreation lodge licensee; 19 (3) the sale of alcoholic beverages except on premises operated by the 20 municipality and under a type of licensed premises listed on the ballot, that may 21 include one or more of the following: 22 (A) a restaurant or eating place license; 23 (B) a beverage dispensary license; or 24 (C) a package store license; 25 (4) the sale and importation of alcoholic beverages; or 26 (5) the sale, importation, and possession of alcoholic beverages. 27 * Sec. 65. AS 04.11.491(b) is amended to read: 28 (b) If a majority of the persons voting on the question vote to approve the 29 option, an established village shall exercise a local option to prohibit 30 (1) the sale of alcoholic beverages; 31 (2) the sale of alcoholic beverages except by one or more of the

01 following listed on the ballot: 02 (A) a restaurant or eating place licensee; 03 (B) a beverage dispensary licensee; 04 (C) a package store licensee; 05 (D) a caterer holding a beverage dispensary caterer's permit 06 under AS 04.09.610 [AS 04.11.230] to sell alcoholic beverages at a site within 07 the established village who is also licensed under a beverage dispensary license 08 for premises outside of the established village; 09 (E) a winery manufacturer licensee; 10 (F) a winery manufacturer licensee, except that sales may 11 occur only to a person licensed under this title or in another state or country; or 12 (G) an outdoor recreation lodge licensee; 13 (3) the sale and importation of alcoholic beverages; or 14 (4) the sale, importation, and possession of alcoholic beverages. 15 * Sec. 66. AS 04.11.491(d) is amended to read: 16 (d) The ballot for an election on the option set out in (a)(2)(A), (a)(3)(A), or 17 (b)(2)(A) of this section must include a summary explanation of the authority to sell 18 alcoholic beverages given to a restaurant or eating place under AS 04.09.210(a) 19 [AS 04.11.100(a)]. The ballot for an election on the option set out in (a)(2)(B) or (D), 20 (a)(3)(B), or (b)(2)(B) or (D) of this section must include a statement that a beverage 21 dispensary license is commonly known as a "bar" and a summary explanation of the 22 authority to sell alcoholic beverages given to a beverage dispensary licensee under 23 AS 04.09.200 [AS 04.11.090(a)]. The ballot for an election on the option set out in 24 (a)(2)(C), (a)(3)(C), or (b)(2)(C) of this section must include a statement that a 25 package store license is commonly known as a "liquor store" and a summary 26 explanation of the authority to sell alcoholic beverages given to a package store 27 licensee under AS 04.09.230 [AS 04.11.150(a)]. 28 * Sec. 67. AS 04.11.491(g) is amended to read: 29 (g) If a municipality or established village has adopted a local option under 30 (a)(1), (2), (3), or (4), or (b)(1), (2), or (3) of this section, the municipality or 31 established village, as part of the local option question or questions placed before the

01 voters, may 02 (1) adopt an amount of alcoholic beverages that may be imported that 03 is less than the amounts set out in AS 04.09.460(e) [AS 04.11.150(g)]; 04 (2) adopt an amount of alcoholic beverages that would give rise to a 05 presumption that the person possessed the alcoholic beverages for sale; the amounts 06 adopted under this paragraph may be lower than those set out in AS 04.11.010(c); 07 (3) opt to not apply a class C felony to violations of AS 04.16.051 that 08 apply solely by reason of the municipality or established village adopting a local 09 option under this section. 10 * Sec. 68. AS 04.11.510(b) is amended to read: 11 (b) The board may review an application for the issuance, renewal, transfer of 12 location, or transfer to another person of a license without affording the applicant 13 notice or hearing, except 14 (1) if an application is denied, written [THE] notice of denial shall be 15 furnished immediately to the applicant [IMMEDIATELY IN WRITING] stating the 16 reason for the denial in clear and concise language; the notice of denial must inform 17 the applicant that the applicant is entitled to submit a request to the director, within 18 15 days after receiving the notice of denial, for an informal conference with either 19 the director or the board, and that, if not satisfied by the informal conference, the 20 applicant is then entitled to a formal hearing conducted by the office of administrative 21 hearings (AS 44.64.010); the director shall respond to a request for an informal 22 conference or a formal hearing in a timely manner and shall hold an informal 23 conference within 15 days after receiving a request for an informal conference 24 unless the applicant and the director agree in writing to waive or extend the time 25 limit; if the applicant requests an informal conference, the running of the period 26 for requesting a formal hearing is tolled from the date the director receives the 27 request for the conference until the day after the date of the conference; if the 28 applicant requests a formal hearing, the office of administrative hearings shall adhere 29 to AS 44.62.330 - 44.62.630 (Administrative Procedure Act); all interested persons 30 may be heard at the hearing [AND UNLESS WAIVED BY THE APPLICANT AND 31 THE BOARD, THE FORMAL HEARING SHALL BE HELD IN THE AREA FOR

01 WHICH THE APPLICATION IS REQUESTED]; 02 (2) the board may, on its own initiative or in response to an objection 03 or protest, hold a hearing to ascertain the reaction of the public or a local governing 04 body to an application if a hearing is not required under this subsection; the board 05 shall send notice of a hearing conducted under this paragraph 20 days in advance of 06 the hearing to the person who filed the objection or protest, to a [EACH] 07 community council, if the licensed premises or proposed licensed premises 08 described in the application is located within the boundaries of the community 09 council, [ESTABLISHED WITHIN THE MUNICIPALITY] and to each nonprofit 10 community organization entitled to notification under AS 04.11.310(b); 11 (3) if a petition containing the signatures of 35 percent of the adult 12 residents having a permanent place of abode outside of but within two miles of an 13 incorporated city or an established village is filed with the board, the board shall hold 14 a public hearing on the question of whether the issuance, renewal, or transfer of the 15 license in the city or village would be in the public interest; 16 (4) if a protest to the issuance, renewal, transfer of location or transfer 17 to another person of a license made by a local governing body is based on a question 18 of law, the board shall hold a public hearing. 19 * Sec. 69. AS 04.11.510(c) is amended to read: 20 (c) Unless the grounds for the suspension or revocation are under 21 AS 04.11.370(a)(4), board proceedings to suspend or revoke a license shall be 22 conducted in accordance with AS 44.62.360 - 44.62.630 [AS 44.62.330 - 44.62.630] 23 (Administrative Procedure Act), except that the licensee may submit a request to the 24 director within 15 days after the accusation is served on the licensee for [IS 25 ENTITLED TO] an opportunity to informally confer with the director or the board 26 [WITHIN 10 DAYS AFTER THE ACCUSATION IS SERVED UPON THE 27 LICENSEE]. Notice of the opportunity for an informal conference shall be served on 28 [UPON] the licensee along with the accusation. The director shall respond to a 29 request for an informal conference or a formal hearing in a timely manner. The 30 director shall hold an informal conference within 15 days after receiving a 31 request for an informal conference unless the applicant and the director agree in

01 writing to waive or extend the time limit. After the informal conference, the 02 board shall hold a formal hearing on the accusation at the next regularly 03 scheduled board meeting that occurs 20 days or more after service of the 04 accusation [IF AN INFORMAL CONFERENCE IS REQUESTED, THE RUNNING 05 OF THE PERIOD OF TIME SPECIFIED IN AS 44.62.380 FOR FILING A NOTICE 06 OF DEFENSE IS TOLLED FROM THE DATE OF RECEIPT OF THE REQUEST 07 FOR THE CONFERENCE UNTIL THE DAY FOLLOWING THE DATE OF THE 08 CONFERENCE UNLESS EXTENDED BY THE BOARD. AFTER THE 09 CONFERENCE, THE LICENSEE, IF NOT SATISFIED BY THE RESULTS OF 10 THE CONFERENCE, MAY OBTAIN A HEARING BY FILING A NOTICE OF 11 DEFENSE AS PROVIDED IN AS 44.62.390]. If the grounds for suspension or 12 revocation are under AS 04.11.370(a)(4), the licensee is not entitled to notice and 13 hearing under AS 44.62.360 - 44.62.630 [AS 44.62.330 - 44.62.630] on the merits of 14 the suspension or revocation. However, the board shall afford the licensee notice and 15 hearing on the issue of what administrative sanction to impose under AS 04.16.180. 16 * Sec. 70. AS 04.11.520 is amended to read: 17 Sec. 04.11.520. Notice to local governing body. After receipt of an 18 application for the issuance or renewal of a license, the renewal of a license with 19 one or more endorsements, the transfer of a license or a license with one or more 20 endorsements to another person, transfer of a license to a new location, or the 21 issuance of an endorsement from within [(1)] an established village, [(2)] an 22 incorporated city, [(3)] an organized borough, or [(4)] a unified municipality, the 23 board shall notify [TRANSMIT WRITTEN NOTICE TO] the local governing body in 24 writing within 10 business days so that the local governing body may protest under 25 AS 04.11.480. 26 * Sec. 71. AS 04.11.535(a) is amended to read: 27 (a) If, in a proceeding to suspend or revoke a license, endorsement, or permit 28 under AS 04.11.370(a)(5), the board finds that a sentencing report, record of 29 conviction, or judgment sent to the board under AS 12.55.025(b) or a report prepared 30 by the investigating or arresting officers in connection with the violation, contains 31 information that if uncontradicted or unexplained would provide a ground for

01 suspension or revocation under AS 04.11.370(a)(5), the licensee or permittee has the 02 burden of proof to establish that the licensee or permittee neither knowingly allowed 03 the violation nor recklessly or with criminal negligence failed to act in accordance 04 with the duty prescribed under AS 04.21.030. 05 * Sec. 72. AS 04.11.540 is amended to read: 06 Sec. 04.11.540. License, endorsement, and conditional contractor's permit 07 renewal and expiration. Notwithstanding AS 04.11.680, an application for renewal 08 of a license, endorsement, or a conditional contractor's permit under 09 AS 04.09.690 issued for the two calendar years ending December 31 or of a seasonal 10 license issued for parts of those calendar years may be submitted up until the next 11 February 28. If a complete application for renewal has not been filed by February 28 12 or the required fees and the penalty fees have not been paid by that date, the license, 13 endorsement, or conditional contractor's permit expires at 12:00 midnight 14 February 28. A new license may not be issued to the holder of an expired license for 15 the same premises except on proof satisfactory to the board of good cause for the 16 failure to file and pay. 17 * Sec. 73. AS 04.11.560(b) is amended to read: 18 (b) A decision by the board relating to the issuance, renewal, transfer, 19 relocation, suspension, or revocation of a license or an endorsement under this title 20 may be appealed to the superior court under AS 44.62.560. 21 * Sec. 74. AS 04.11.570 is amended to read: 22 Sec. 04.11.570. Refund and forfeiture of fees. (a) If an application for a 23 license or endorsement is denied, the board shall refund the license fee but not 24 [LESS] the application fee. 25 (b) A license or endorsement fee may not be refunded after the license or 26 endorsement has been issued unless the board determines it has erred in the issuance 27 through no fault of the applicant. 28 (c) If a license, endorsement, or permit is revoked on grounds that 29 statements made in the application are untrue, the [LICENSE] fee paid by the 30 applicant is forfeited to the state. 31 * Sec. 75. AS 04.11.580(b) is amended to read:

01 (b) The licensee shall surrender a current license to the board not later than 02 [WITHIN] 10 days after the loss or vacation of the licensed premises. 03 * Sec. 76. AS 04.11.590(a) is amended to read: 04 (a) Money collected from licenses, endorsements, permits, and civil fines 05 under this title shall be transferred by the board to the Department of Commerce, 06 Community, and Economic Development and deposited in the general fund. 07 * Sec. 77. AS 04.11.610 is amended to read: 08 Sec. 04.11.610. Allocation [REFUND] to municipalities. (a) An amount 09 equal to the sum of the biennial [BIENNIAL] license fees, excluding annual 10 wholesale fees and biennial wholesale license fees, collected within a municipality 11 shall be allocated [REFUNDED] semi-annually to the municipality. 12 (b) If the officers of a municipality fail to actively enforce local ordinances, 13 this title, laws of the United States and the state, and the regulations relating to the 14 manufacture and sale of alcoholic beverages in the state, or fail to provide the 15 director with a report of contacts with licensed establishments, educational 16 activities concerning this title and local ordinances, and violations of this title 17 occurring in the municipality, at the time and in the format as may be required 18 by regulation adopted by the board, the commissioner of commerce, community, 19 and economic development may deny the allocation [REFUND] provided for under 20 (a) of this section until the board finds the enforcement of the ordinances, laws, and 21 regulations is resumed or the report is provided. 22 (c) The Department of Commerce, Community, and Economic Development 23 shall recover any funds [AMOUNTS] erroneously allocated [REFUNDED] under (a) 24 of this section. The Department of Commerce, Community, and Economic 25 Development shall schedule repayments of erroneously allocated funds 26 [REFUNDED AMOUNTS] over a sufficient period of time to minimize financial 27 hardship to the municipality involved. 28 * Sec. 78. AS 04.11.630(b) is amended to read: 29 (b) A license, endorsement, or permit issued under this title shall be posted 30 within the licensed premises or designated premises so as to be easily available for 31 inspection upon request by a peace officer or other person during regular business

01 hours or during the period specified on the permit. 02 * Sec. 79. AS 04.11.680 is amended to read: 03 Sec. 04.11.680. Duration of licenses, endorsements, and permits. (a) Upon 04 application [AND PAYMENT OF ONE-HALF OF THE BIENNIAL FEE], the board 05 may issue a seasonal license under this title that is effective for the intervals stated on 06 the license. [A SEASONAL LICENSE MAY NOT BE EFFECTIVE FOR MORE 07 THAN 12 MONTHS IN A TWO-YEAR PERIOD.] Otherwise, a license or 08 endorsement [ALL LICENSES] issued under this title and a conditional 09 contractor's permit issued under AS 04.09.690 is [OTHER THAN A RETAIL 10 STOCK SALE LICENSE ARE] effective for the two calendar years ending 11 December 31, unless a shorter period is prescribed by the board or by law. 12 (b) A permit issued under this title shall be for a specific time [THE] period 13 [PRESCRIBED BY THE BOARD]. The period shall be clearly designated on the 14 permit. 15 * Sec. 80. AS 04.16.010(c) is amended to read: 16 (c) A licensee, an agent, or employee may not permit a person to enter and a 17 person may not enter premises licensed under this title between the hours of 5:00 a.m. 18 and 8:00 a.m. each day, unless the person is 19 (1) on the premises to conduct business with the licensee, agent, or 20 employee, and the licensee, agent, or employee is in compliance with (a) and (b) 21 of this section; 22 (2) a common carrier with a common carrier dispensary license 23 under AS 04.09.260; 24 (3) [. THIS SUBSECTION DOES NOT APPLY TO COMMON 25 CARRIERS OR TO] an employee of the licensee who is on the premises to prepare 26 for the next day's business; 27 (4) performing maintenance or improvements authorized by the 28 licensee; 29 (5) [. A PERSON MAY ENTER OR REMAIN] on the premises [OF 30 A BONA FIDE RESTAURANT OR EATING PLACE LICENSED UNDER THIS 31 TITLE] to consume food or nonalcoholic beverages and the premises are covered

01 under a restaurant endorsement issued under AS 04.09.450. 02 * Sec. 81. AS 04.16.010 is amended by adding a new subsection to read: 03 (e) A person who violates (a), (b), or (c) of this section is guilty of a violation. 04 * Sec. 82. AS 04.16.015(a) is amended to read: 05 (a) On premises where alcoholic beverages are sold by the drink, a licensee or 06 a licensee's agent or employee may not 07 (1) offer or deliver, as a marketing device to the general public, free 08 alcoholic beverages to a patron, except as provided for the holder of a 09 manufacturer sampling endorsement under AS 04.09.410 or a package store 10 sampling endorsement under AS 04.09.490; 11 (2) deliver an alcoholic beverage to a person already possessing two or 12 more; 13 (3) sell, offer to sell, or deliver alcoholic beverages to a person or 14 group of persons at a price less than the price regularly charged for the beverages 15 during a consecutive seven-day period [THE SAME CALENDAR WEEK], except at 16 private functions not open to the general public; 17 (4) sell, offer to sell, or deliver an unlimited number of alcoholic 18 beverages to a person or group of persons during a set period of time for a fixed price; 19 (5) sell, offer to sell, or deliver alcoholic beverages to a person or 20 group of persons on any one day at prices less than those charged the general public 21 on that day, except at private functions not open to the general public; 22 (6) encourage or permit an organized game or contest on the licensed 23 premises that involves drinking alcoholic beverages or the awarding of alcoholic 24 beverages as prizes. 25 * Sec. 83. AS 04.16.015 is amended by adding a new subsection to read: 26 (e) A person who violates this section is guilty of a violation. 27 * Sec. 84. AS 04.16 is amended by adding a new section to read: 28 Sec. 04.16.017. Trade practices. (a) A person holding a license under 29 AS 04.09.020, 04.09.030, 04.09.040, 04.09.100, or 04.09.110 or engaged in the 30 alcoholic beverage industry in another state or country as a brewer, vintner, distiller, 31 or importer, or as an agent of a brewer, vintner, distiller, or importer, may not, except

01 as provided in regulations adopted by the board under (b) of this section, induce a 02 person holding a license under this title to 03 (1) operate as a tied house by inducing a retailer engaged in the sale of 04 alcoholic beverages to purchase products from an entity to the exclusion, in whole or 05 in part, of products sold or offered for sale by other entities by 06 (A) furnishing, giving, renting, lending, or selling to the retailer 07 equipment fixtures, signs, supplies, money, services, or other things of value, 08 except those excluded in regulation and determined to be not contrary to the 09 public interest or contrary to the intent of this subsection; 10 (B) paying or crediting the retailer for an advertising, display, 11 or distribution service; 12 (C) guaranteeing a loan or the repayment of a financial 13 obligation of the retailer; 14 (D) extending to the retailer credit for a period in excess of the 15 credit period usual and customary to the industry for the particular class of 16 transactions; or 17 (E) requiring the retailer to take and dispose of a certain quota 18 of the products; 19 (2) operate as an exclusive outlet by requiring that a retailer engaged in 20 the sale of alcoholic beverages purchase products from an entity to the exclusion, in 21 whole or in part, of alcoholic beverages sold or offered for sale by other entities; 22 (3) purchase products from an entity to the exclusion, in whole or in 23 part, of products sold or offered for sale by other entities by 24 (A) commercial bribery; or 25 (B) offering or giving any bonus, premium, or compensation to 26 an officer, employee, or representative of the licensee; 27 (4) enter into an agreement for consignment sales, or to purchase, offer 28 to purchase, or contract to purchase products on consignment, under conditional sale, 29 or with the privilege of return on any basis other than a bona fide sale, or where part of 30 the transaction involves, directly or indirectly, the acquisition by an entity from the 31 licensee or the entity's agreement to acquire from the licensee other alcoholic

01 beverages, except that this paragraph does not apply to transactions involving solely 02 the return of merchandise for ordinary and usual commercial reasons arising after the 03 merchandise has been sold. 04 (b) The board shall adopt regulations providing exceptions to the practices 05 listed under (a) of this section that are 06 (1) consistent with federal law at the time of the effective date of this 07 section; 08 (2) necessary to avoid practical difficulty or undue hardship on a 09 licensee; 10 (3) in the best interests of the public; and 11 (4) consistent with the requirements of this title. 12 (c) The board shall adopt regulations establishing administrative penalties for 13 a violation of this section. 14 (d) In this section, "commercial bribery," "consignment sales," "exclusive 15 outlet," and "tied house" have the meanings given in 27 U.S.C. 205 and regulations 16 adopted under that section. 17 * Sec. 85. AS 04.16.020 is amended by adding new subsections to read: 18 (d) A person who violates a provision of this section commits the offense of 19 unauthorized solicitation or purchase of alcoholic beverages. 20 (e) Unauthorized solicitation or purchase of alcoholic beverages is a violation 21 and is punishable by a fine of $100. 22 * Sec. 86. AS 04.16 is amended by adding a new section to read: 23 Sec. 04.16.022. Online sale and purchase of alcoholic beverages. (a) A 24 licensee or a licensee's agent or employee may not sell or offer to sell alcoholic 25 beverages to the public online unless the licensee holds a winery direct shipment 26 license issued under AS 04.09.360 or a package store shipping endorsement under 27 AS 04.09.460. 28 (b) A person may not purchase alcoholic beverages online except from the 29 holder of a winery direct shipment license issued under AS 04.09.360 or a package 30 store shipping endorsement under AS 04.09.460. 31 (c) A person who violates (a) of this section is, upon conviction, guilty of a

01 class A misdemeanor. 02 (d) A person who violates (b) of this section is guilty of a violation. 03 * Sec. 87. AS 04.16.025(a) is amended to read: 04 (a) A person may not knowingly enter or remain on premises 05 (1) in which alcoholic beverages are manufactured, sold, offered for 06 sale, possessed for sale or barter, trafficked in, or bartered in violation of 07 (A) AS 04.09.060, 04.09.070, 04.09.145, 04.09.370, 04.09.380, 08 or AS 04.11.010; or 09 (B) a municipal ordinance adopted under AS 04.21.010(a) or 10 (b); or 11 (2) licensed under this title during hours in which the person's presence 12 on the premises is a violation of a municipal ordinance adopted under authority of 13 AS 04.16.010(d) providing for hours of closure that are outside the hours of closure 14 prescribed by AS 04.16.010(c). 15 * Sec. 88. AS 04.16.030 is amended by adding new subsections to read: 16 (c) A person who violates this section commits the offense of prohibited 17 conduct relating to a drunken person. 18 (d) Prohibited conduct relating to a drunken person is a violation, punishable 19 by a fine of $500. 20 (e) The holder of a license is strictly and vicariously liable for an offense 21 committed under (c) of this section by an employee or agent of the licensee on the 22 licensed premises, punishable by an administrative penalty of $250. Notwithstanding 23 AS 04.11.370(a)(4) and (5) and AS 04.16.180(b)(1), the board may not order 24 suspension of the license for the first violation committed on the licensed premises 25 under this section. 26 (f) A licensee who knowingly allows an agent or employee of the licensee to 27 commit the offense of prohibited conduct relating to a drunken person under (c) of this 28 section commits the offense of failure to ensure compliance relating to a drunken 29 person. 30 (g) Failure to ensure compliance relating to a drunken person is a class A 31 misdemeanor.

01 * Sec. 89. AS 04.16.035 is amended to read: 02 Sec. 04.16.035. Possession of ingredients for homebrew in certain areas. A 03 person residing in an area that has adopted a local option under AS 04.11.491 [TO 04 PROHIBIT THE SALE, IMPORTATION, AND POSSESSION OF ALCOHOLIC 05 BEVERAGES UNDER AS 04.11.491(a)(5) OR (b)(4)] may not possess sugar, 06 artificial sugar, malt, yeast, or any other material or equipment with the intent to use 07 the material or equipment to create an alcoholic beverage. 08 * Sec. 90. AS 04.16.035 is amended by adding new subsections to read: 09 (b) A person who knowingly violates this section commits the crime of 10 possession of ingredients for homebrew. 11 (c) Possession of ingredients for homebrew is a class A misdemeanor. 12 * Sec. 91. AS 04.16.040 is amended by adding new subsections to read: 13 (b) A person who violates this section commits the offense of prohibited 14 access by a drunken person. 15 (c) Prohibited access by a drunken person is a violation. 16 * Sec. 92. AS 04.16.045 is amended by adding new subsections to read: 17 (b) A person who violates this section commits the offense of permitting 18 consumption not authorized under a license. 19 (c) Permitting consumption not authorized under a license is a violation. 20 * Sec. 93. AS 04.16.047 is amended by adding new subsections to read: 21 (d) A person who is restricted from purchasing alcohol under AS 04.16.160 22 who knowingly violates (a) of this section commits the offense of entering or 23 remaining on licensed premises. 24 (e) Entering or remaining on licensed premises is a class A misdemeanor. 25 * Sec. 94. AS 04.16.049(a) is amended to read: 26 (a) A person under 21 years of age may not knowingly enter or remain in 27 premises licensed under this title unless 28 (1) accompanied by a parent, guardian, or spouse who has attained 21 29 years of age; 30 (2) the person is allowed to enter and remain on [AT LEAST 16 31 YEARS OF AGE,] the premises under a restaurant endorsement issued under

01 AS 04.09.450 [ARE DESIGNATED BY THE BOARD AS A RESTAURANT FOR 02 THE PURPOSES OF THIS SECTION, AND THE PERSON ENTERS AND 03 REMAINS ONLY FOR DINING; 04 (3) THE PERSON IS UNDER 16 YEARS OF AGE, IS 05 ACCOMPANIED BY A PERSON OVER 21 YEARS OF AGE, THE PARENT OR 06 GUARDIAN OF THE UNDERAGED PERSON CONSENTS, THE PREMISES ARE 07 DESIGNATED BY THE BOARD AS A RESTAURANT FOR THE PURPOSES OF 08 THIS SECTION, AND THE PERSON ENTERS AND REMAINS ONLY FOR 09 DINING]; 10 (3) [(4)] the person is permitted on the premises under a club license 11 issued under AS 04.09.220(g) or former AS 04.11.110(g); or 12 (4) [(5)] otherwise provided under (c), (d), or (g) of this section. 13 * Sec. 95. AS 04.16.049(c) is amended to read: 14 (c) Notwithstanding any other provision in this section, a person 16 or 17 15 years of age may enter and remain within the licensed premises of a hotel or motel, 16 large resort, golf course, general wholesaler, limited brewed beverage and wine 17 wholesaler, common carrier dispensary, outdoor recreation lodge, or restaurant 18 [OR EATING PLACE] in the course of employment if 19 (1) the employment does not involve the serving, mixing, delivering, 20 or dispensing of alcoholic beverages; 21 (2) the person has the written consent of a parent or guardian; and 22 (3) an exemption from the prohibition of AS 23.10.355 is granted by 23 the Department of Labor and Workforce Development. [THE BOARD, WITH THE 24 APPROVAL OF THE GOVERNING BODY HAVING JURISDICTION AND AT 25 THE LICENSEE'S REQUEST, SHALL DESIGNATE WHICH PREMISES ARE 26 HOTELS, GOLF COURSES, RESTAURANTS, OR EATING PLACES FOR THE 27 PURPOSES OF THIS SUBSECTION.] 28 * Sec. 96. AS 04.16.049(d) is amended to read: 29 (d) Notwithstanding any other provision in this section, a person 18, 19, or 20 30 years of age may be employed within the licensed premises of a hotel or motel, large 31 resort, golf course, general wholesaler, limited brewed beverage and wine

01 wholesaler, common carrier dispensary, outdoor recreation lodge, or restaurant 02 [OR EATING PLACE], may enter and remain within those premises for the purpose 03 of employment, but may not, in the course of employment, sell, serve, deliver, or 04 dispense alcoholic beverages. 05 * Sec. 97. AS 04.16.049 is amended by adding a new subsection to read: 06 (j) Notwithstanding any other provision in this section, a person under 21 07 years of age may be present on the licensed premises of a common carrier dispensary, 08 destination resort, or outdoor recreation lodge for the purpose of travel, travel lodging, 09 or outdoor recreation activities provided by the licensee if the person is 10 (1) at least 16 years of age; or 11 (2) under 16 years of age and a parent or legal guardian of the 12 underaged person consents. 13 * Sec. 98. AS 04.16.051(d) is repealed and reenacted to read: 14 (d) A person who, with criminal negligence, furnishes or delivers an alcoholic 15 beverage to a person under 21 years of age in violation of (a) of this section commits 16 the crime of furnishing or delivering to a minor. 17 * Sec. 99. AS 04.16.051 is amended by adding a new subsection to read: 18 (e) Furnishing or delivering to a minor is 19 (1) a class A misdemeanor, except as provided in (2) of this 20 subsection; 21 (2) a class C felony if 22 (A) within the five years preceding the violation, the person has 23 been previously convicted under 24 (i) this section; or 25 (ii) a law or ordinance of this or another jurisdiction 26 with elements substantially similar to this section; 27 (B) the person who receives the alcoholic beverage negligently 28 causes serious physical injury to or the death of another person while under the 29 influence of the alcoholic beverage received in violation of this section; in this 30 subparagraph, 31 (i) "negligently" means acting with civil negligence;

01 and 02 (ii) "serious physical injury" has the meaning given in 03 AS 11.81.900; or 04 (C) the violation occurs within the boundaries of a municipality 05 or the perimeter of an established village that has adopted a local option under 06 AS 04.11.491 and has not opted out of applying a class C felony to violations 07 of this section under AS 04.11.491(g). 08 * Sec. 100. AS 04.16.052 is amended by adding new subsections to read: 09 (b) The holder of a license is strictly liable for an offense committed under (a) 10 of this section by an employee or agent of the licensee on the licensed premises, 11 punishable by an administrative penalty of $250. Notwithstanding AS 04.11.370(a)(4) 12 and (5) and AS 04.16.180(b)(1), the board may not order suspension of the license for 13 the first violation committed on the licensed premises under this section. 14 (c) A person who violates (a) of this section commits the offense of licensee, 15 employee, or agent furnishing alcohol to a minor. 16 (d) Licensee, employee, or agent furnishing alcohol to a minor is a violation 17 and is punishable by a fine of $500. 18 (e) A licensee who knowingly allows an agent or employee of the licensee to 19 commit the offense of licensee, employee, or agent furnishing alcohol to a minor 20 under (c) of this section commits the offense of failure to ensure compliance relating 21 to furnishing alcohol to a minor. 22 (f) Failure to ensure compliance relating to furnishing alcohol to a minor is a 23 class A misdemeanor. 24 * Sec. 101. AS 04.16.055 is amended by adding new subsections to read: 25 (b) A person who knowingly rents a room in a hotel, motel, resort, or similar 26 business for the purpose of providing alcoholic beverages to a person under 21 years 27 of age commits the crime of renting a room for the purpose of providing alcoholic 28 beverages to a person under 21 years of age. 29 (c) Renting a room for the purpose of providing alcoholic beverages to a 30 person under 21 years of age is a class A misdemeanor. 31 * Sec. 102. AS 04.16.057(b) is amended to read:

01 (b) A person who violates this section is guilty of a violation and is 02 punishable by a fine of $500 [SHALL BE PUNISHED AS PROVIDED IN 03 AS 12.55]. 04 * Sec. 103. AS 04.16.060(e) is amended to read: 05 (e) A person under the age of 21 who is seeking to enter and remain in a 06 licensed premises under AS 04.16.049(a)(2) [OR (3)] may not misrepresent the 07 person's age or having obtained the consent of the parent or guardian required by that 08 section. 09 * Sec. 104. AS 04.16.060 is amended by adding new subsections to read: 10 (g) A person who violates (a) of this section commits the offense of purchase 11 by a person under 21 years of age. 12 (h) A person who violates (b) or (c) of this section commits the offense of 13 delivery to a person under 21 years of age. 14 (i) Purchase by a person under 21 years of age is a violation and is punishable 15 by a fine of $500. 16 (j) Delivery to a person under 21 years of age is a violation and is punishable 17 by a fine of $500. 18 (k) For a person under 21 years of age who commits an offense under (g) of 19 this section, the violation must be charged and filed with the court as a separate case 20 and may not be combined or joined with any other minor offense or criminal charge in 21 one action at the time of filing. A court may reduce the fine to $50 for a person who 22 has not more than one previous violation or to $250 for a person who has two or more 23 previous violations if the person provides the court, not later than six months after a 24 judgment of conviction is entered, with proof of completion of 25 (1) an alcohol safety action program or a juvenile alcohol safety action 26 program developed, designated, or approved by the Department of Health and Social 27 Services under AS 47.37; or 28 (2) a community diversion panel. 29 * Sec. 105. AS 04.16.080 is amended to read: 30 Sec. 04.16.080. Consumption [SALES OR CONSUMPTION] at school 31 events. A person who is 21 years of age or older may not [SELL OR] consume

01 alcoholic beverages during a school event at the site of the event if the event is 02 expected to attract attendees under 21 years of age. 03 * Sec. 106. AS 04.16.080 is amended by adding new subsections to read: 04 (b) A person who is 21 years of age or older who consumes an alcoholic 05 beverage during a school event at the site of the event under (a) of this section 06 commits the offense of consuming at a school event. 07 (c) Consuming at a school event is a violation and is punishable by a fine of 08 $100. 09 * Sec. 107. AS 04.16.090(c) is amended to read: 10 (c) In [FOR THE PURPOSES OF] this section, "consideration" includes 11 [BUT IS NOT LIMITED TO] cover charge, the sale of food, ice, mixers, or other 12 liquids used with alcoholic beverage drinks, [OR] the furnishing of glassware or other 13 containers for use in the consumption of alcoholic beverages, other charges for 14 access to the licensed premises, or other services or products provided on the 15 licensed premises. 16 * Sec. 108. AS 04.16.090 is amended by adding new subsections to read: 17 (d) A person who knowingly violates this section commits the crime of 18 maintaining a bottle club. 19 (e) Maintaining a bottle club is a class A misdemeanor. 20 * Sec. 109. AS 04.16.110 is amended by adding new subsections to read: 21 (b) A person who knowingly sells an alcoholic beverage in violation of (a) of 22 this section commits the crime of sale of a prohibited alcoholic beverage. 23 (c) Sale of a prohibited alcoholic beverage is a class A misdemeanor. 24 * Sec. 110. AS 04.16.120 is amended by adding new subsections to read: 25 (d) A person who removes an alcoholic beverage from licensed premises in 26 violation of (a) of this section and a person who brings an alcoholic beverage onto 27 licensed premises in violation of (b) of this section commits the offense of removal or 28 introduction of alcoholic beverages. 29 (e) Notwithstanding (a) of this section, the holder of a beverage dispensary 30 license under AS 04.09.200, the holder of a beverage dispensary tourism license under 31 AS 04.09.340, or the holder's employee may transport alcoholic beverages across

01 unlicensed portions of a hotel, motel, or large resort if the 02 (1) licensee holds an endorsement under AS 04.09.430 or 04.09.440; 03 and 04 (2) licensee or employee is walking directly from one licensed area of 05 the premises to another licensed area. 06 (f) Removal or introduction of alcoholic beverages is a violation and is 07 punishable by a fine of $100. 08 * Sec. 111. AS 04.16.125(a) is amended to read: 09 (a) A person may [NOT] use a common carrier approved by the board 10 under AS 04.09.750(b) to transport alcoholic beverages into an area that has restricted 11 the sale of alcoholic beverages under AS 04.11.491(a)(1), (2), or (3) or (b)(1) or (2) if 12 [UNLESS] 13 (1) the shipping container holding the alcoholic beverages is clearly 14 labeled as containing alcoholic beverages [WITH LETTERS THAT CONTRAST IN 15 COLOR TO THE SHIPPING CONTAINER AND THAT ARE AT LEAST TWO 16 INCHES IN HEIGHT]; and 17 (2) an itemized invoice showing the quantity and purchase value of 18 distilled spirits, [OF] wine, and brewed [OF MALT] beverages is attached to the 19 outside of the shipping container. 20 * Sec. 112. AS 04.16.125(b) is amended to read: 21 (b) This section does not apply to 22 (1) a person transporting [NOT MORE THAN] 23 (A) two liters or less of wine; 24 (B) one gallon or less of brewed [MALT] beverages; or 25 (C) one liter or less of distilled spirits; or 26 (2) the transportation of alcoholic beverages for use on premises 27 allowed under AS 04.11.491(a)(2) or (3) [AS 04.11.491(a)(2) - (3)] or (b)(2) or for 28 use under a permit allowed under AS 04.11.491(a)(2). 29 * Sec. 113. AS 04.16.125 is amended by adding new subsections to read: 30 (d) A person who knowingly violates this section commits the crime of 31 unauthorized transportation of alcoholic beverages by common carrier into a local

01 option area. 02 (e) Unauthorized transportation of alcoholic beverages by common carrier into 03 a local option area is a class A misdemeanor. 04 * Sec. 114. AS 04.16.130 is amended by adding new subsections to read: 05 (c) A person who violates this section commits the offense of unauthorized 06 storage of alcoholic beverages. 07 (d) Unauthorized storage of alcoholic beverages is a violation. 08 * Sec. 115. AS 04.16.140 is amended by adding new subsections to read: 09 (b) A person who knowingly violates (a) of this section commits the offense 10 of sale or consumption of an alcoholic beverage in a warehouse. 11 (c) Sale or consumption of an alcoholic beverage in a warehouse is a violation. 12 * Sec. 116. AS 04.16.150 is amended by adding new subsections to read: 13 (b) Except as provided under AS 04.16.030(f) and 04.16.052(e), a licensee 14 who knowingly violates (a) of this section commits the offense of failure to ensure 15 compliance. 16 (c) Failure to ensure compliance is a violation. 17 * Sec. 117. AS 04.16.160 is amended by adding new subsections to read: 18 (c) A person who knowingly fails to comply with a restriction on purchasing 19 alcoholic beverages in violation of (a) of this section commits the crime of failure to 20 comply with a restriction on purchasing alcoholic beverages. 21 (d) Failure to comply with a restriction on purchasing alcoholic beverages is a 22 class A misdemeanor. 23 * Sec. 118. AS 04.16.170(b) is amended to read: 24 (b) A person transporting alcoholic beverages into the state may not sell those 25 alcoholic beverages to a person not licensed under this title, unless the alcoholic 26 beverages are used for religious, industrial, pharmaceutical, or medical purposes, or as 27 allowed under AS 04.09.360. 28 * Sec. 119. AS 04.16.170 is amended by adding new subsections to read: 29 (c) A licensee who knowingly violates (a) or (b) of this section commits the 30 crime of sale of alcoholic beverages from or to an unlicensed person. 31 (d) Sale of alcoholic beverages from or to an unlicensed person is a class A

01 misdemeanor. 02 * Sec. 120. AS 04.16.172 is amended to read: 03 Sec. 04.16.172. Restrictions on purchase and sale of alcoholic beverages. A 04 person licensed under AS 04.09.200, 04.09.210, 04.09.220, 04.09.230, 04.09.270, 05 04.09.280, 04.09.290, 04.09.300, 04.09.310, 04.09.320, 04.09.330, 04.09.340, or 06 04.09.350 [AS 04.11.090, 04.11.100, 04.11.110, OR 04.11.150] may not purchase, 07 sell, or offer for sale an alcoholic beverage unless the alcoholic beverage being 08 purchased, sold, or offered for sale was obtained from a person licensed under 09 (1) AS 04.09.100 or 04.09.110 [AS 04.11.160] as a primary source of 10 supply for the alcoholic beverage being purchased, sold, or offered for sale; 11 (2) AS 04.09.230 [AS 04.11.150] and the alcoholic beverage being 12 purchased, sold, or offered for sale was obtained from a person licensed under 13 AS 04.09.100 or 04.09.110 [AS 04.11.160] as a primary source of supply; or 14 (3) AS 04.09.020, 04.09.030, or 04.09.040 [AS 04.11.130, 04.11.140, 15 OR 04.11.170]. 16 * Sec. 121. AS 04.16.172 is amended by adding new subsections to read: 17 (b) A licensee who knowingly violates (a) of this section commits the crime of 18 licensee obtaining alcoholic beverages from an unlicensed seller. 19 (c) Licensee obtaining alcoholic beverages from an unlicensed seller is a class 20 A misdemeanor. 21 * Sec. 122. AS 04.16.175 is amended by adding new subsections to read: 22 (c) A person who knowingly furnishes an alcoholic beverage to a player in 23 violation of (a) of this section commits the crime of furnishing an alcoholic beverage 24 in aid of a gambling enterprise. 25 (d) Furnishing an alcoholic beverage in aid of a gambling enterprise is a class 26 A misdemeanor. 27 * Sec. 123. AS 04.16.180(b) is amended to read: 28 (b) A suspension or revocation of a license ordered by the board under 29 AS 04.11.370(a)(4) and (5) shall be as follows: 30 (1) on first conviction, the license of the premises involved may not be 31 revoked, but, except as provided in AS 04.16.030 and 04.16.052, may be suspended

01 for not more than 45 days; 02 (2) on second conviction, the license of the premises involved may not 03 be revoked, but may be suspended for not more than 90 days; 04 (3) on third conviction, the license of the premises involved may be 05 suspended or revoked. 06 * Sec. 124. AS 04.16.180(e) is amended to read: 07 (e) In this section, 08 (1) "conviction" includes a conviction of a violation, a 09 misdemeanor, and a felony; 10 (2) [THE TERMS] "second conviction" and "third conviction" include 11 only convictions for violations that occur within five years after [OF] the first 12 conviction; the [. THE] terms refer to the cumulative number of convictions of a 13 licensee of any combination of violations of the provisions of this title, regulations 14 adopted under this title, or ordinances adopted under AS 04.21.010; [. THE TERMS] 15 "second conviction" and "third conviction" include a conviction of the agent or 16 employee of a licensee of a violation of a law, regulation, or ordinance if the 17 conviction constitutes a ground for suspension or revocation under 18 AS 04.11.370(a)(5). 19 * Sec. 125. AS 04.16.180 is amended by adding new subsections to read: 20 (f) In addition to the criminal penalties specified in this title and AS 12.55, a 21 holder of a license under this title who is convicted of a crime or offense involving the 22 violation of a provision of this title or a regulation adopted under this title is subject to 23 suspension or revocation of the license under this section and other administrative 24 penalties imposed by the board. For purposes of administrative penalties under this 25 subsection, each violation is a separate offense. 26 (g) The holder of a license subject to suspension or revocation under (b)(2) or 27 (3) of this section may request a hearing to petition the board to reduce the 28 administrative penalty. The board may reduce the administrative penalty if the 29 licensee shows, by a preponderance of the evidence, that 30 (1) the licensee complied with the alcohol server education course 31 requirement of AS 04.21.025 and adopted and enforced a compliance program and a

01 disciplinary program for agents and employees of the licensee; 02 (2) the licensee has a pattern and practice of exercising the degree of 03 care required under AS 04.16.030; 04 (3) the licensee posted warning signs as required under AS 04.21.065; 05 and 06 (4) in the case of a conviction for a violation of AS 04.16.030 or 07 04.16.052, the agent or employee convicted under AS 04.16.030 or 04.16.052 08 completed an alcohol server education course under AS 04.21.025. 09 * Sec. 126. AS 04.16.220(a) is amended to read: 10 (a) The following are subject to forfeiture: 11 (1) alcoholic beverages manufactured, sold, offered for sale, possessed 12 for sale, or bartered or exchanged for goods and services in this state in violation of 13 AS 04.09.060, 04.09.070, 04.09.145, 04.09.370, 04.09.380, or AS 04.11.010; 14 alcoholic beverages possessed, stocked, warehoused, or otherwise stored in violation 15 of AS 04.21.060; alcoholic beverages sold or offered for sale in violation of a local 16 option adopted under AS 04.11.491; alcoholic beverages transported into the state and 17 sold to persons not licensed under this title [CHAPTER] in violation of 18 AS 04.16.170(b); alcoholic beverages transported in violation of AS 04.09.750 or 19 AS 04.16.125; 20 (2) materials and equipment used in the manufacture, sale, offering for 21 sale, possession for sale, or barter or exchange of alcoholic beverages for goods and 22 services in this state in violation of AS 04.09.060, 04.09.070, 04.09.145, 04.09.370, 23 04.09.380, or AS 04.11.010; materials and equipment used in the stocking, 24 warehousing, or storage of alcoholic beverages in violation of AS 04.21.060; materials 25 and equipment used in the sale or offering for sale of an alcoholic beverage in an area 26 in violation of a local option adopted under AS 04.11.491; 27 (3) aircraft, vehicles, or vessels used to transport or facilitate the 28 transportation of 29 (A) alcoholic beverages manufactured, sold, offered for sale, 30 possessed for sale, or bartered or exchanged for goods and services in this state 31 in violation of AS 04.09.060, 04.09.070, 04.09.145, 04.09.370, 04.09.380, or

01 AS 04.11.010; 02 (B) property stocked, warehoused, or otherwise stored in 03 violation of AS 04.21.060; 04 (C) alcoholic beverages imported into a municipality or 05 established village in violation of AS 04.11.499(a); 06 (4) alcoholic beverages found on licensed premises that do not bear 07 federal excise stamps if excise stamps are required under federal law; 08 (5) alcoholic beverages, materials, or equipment used in violation of 09 AS 04.16.175; 10 (6) money, securities, negotiable instruments, or other things of value 11 used in financial transactions or items of value purchased from the proceeds derived 12 from activity prohibited under AS 04.09.060, 04.09.070, 04.09.145, 04.09.370, 13 04.09.380, or AS 04.11.010 or in violation of a local option adopted under 14 AS 04.11.491; 15 (7) a firearm used in furtherance of a violation of this title. 16 * Sec. 127. AS 04.16.220(d) is amended to read: 17 (d) Property subject to forfeiture under (a) of this section may be forfeited 18 (1) upon conviction of a person for a violation of AS 04.09.060, 19 04.09.070, 04.09.145, 04.09.370, 04.09.380, AS 04.09.750, AS 04.11.010, 04.11.499, 20 AS 04.16.125, AS 04.21.060, or AS 04.11.501 or an ordinance adopted under 21 AS 04.11.501; or 22 (2) upon judgment by the superior court in a proceeding in rem that the 23 property was used in a manner subjecting it to forfeiture under (a) of this section. 24 * Sec. 128. AS 04.16.220(g) is amended to read: 25 (g) It is no defense in an in rem forfeiture proceeding brought under (d)(2) of 26 this section that a criminal proceeding is pending or has resulted in conviction or 27 acquittal of a person charged with violating AS 04.09.060, 04.09.070, 04.09.145, 28 04.09.370, 04.09.380, AS 04.11.010, 04.11.499, or AS 04.21.060. 29 * Sec. 129. AS 04.16.220(i) is amended to read: 30 (i) Upon conviction for a violation of AS 04.09.060, 04.09.070, 04.09.145, 31 04.09.370, 04.09.380, AS 04.11.010, or 04.11.499(a), if an aircraft, vehicle, or

01 watercraft is subject to forfeiture under (a) of this section, the court shall, subject to 02 remission to innocent parties under this section, 03 (1) order the forfeiture of an aircraft to the state; 04 (2) order the forfeiture of a vehicle or watercraft if 05 (A) the defendant has a prior felony conviction for a violation 06 of AS 11.41 or a similar law in another jurisdiction; 07 (B) the defendant is on felony probation or parole; 08 (C) the defendant has a prior conviction for violating 09 AS 04.11.010 or 04.11.499(a); or 10 (D) the quantity of alcohol transported in violation of this title 11 was twice the presumptive amounts in AS 04.11.010(c). 12 * Sec. 130. AS 04.21 is amended by adding a new section to read: 13 Sec. 04.21.012. Keg registration. (a) A person may not purchase a keg or 14 similar container holding four or more gallons of an alcoholic beverage unless the 15 person provides proof that the person is over 21 years of age and completes and signs 16 a registration form. The purchaser of a keg or similar container holding four or more 17 gallons of an alcoholic beverage may not remove or obliterate the temporary 18 identifying tag on the keg or container. 19 (b) A licensee or an agent or employee of a licensee who sells or offers for 20 sale a keg or similar container holding four or more gallons of an alcoholic beverage 21 shall require a purchaser to show acceptable proof of age under AS 04.21.050(b) and 22 sign the sworn statement on a registration form. The licensee shall complete the 23 registration form and affix a temporary tag with a unique identifier to the keg or 24 container before releasing the container to the purchaser. The licensee shall retain a 25 copy of the form for one year and make the form available for inspection. 26 (c) The board shall prescribe a registration form for use by licensees and 27 purchasers. The board may approve for use a registration form adopted by a local 28 governing body. A registration form must include 29 (1) the name of the seller; 30 (2) the name of the purchaser; 31 (3) a description of the proof of age provided by the buyer, including

01 the identification number, if any; 02 (4) the unique identifier on the temporary tag attached to the keg or 03 container under (b) of this section. 04 (d) A licensee or an agent or employee of a licensee who sells a keg or similar 05 container holding four or more gallons of an alcoholic beverage without completing a 06 registration form or affixing a temporary identification tag to the keg or container 07 commits the crime of selling alcoholic beverages in an unregistered keg. 08 (e) A person who is not licensed under this title or the employee or agent of a 09 person who is not licensed under this title who possesses a keg or similar container 10 holding four or more gallons of an alcoholic beverage without a temporary 11 identification tag commits the crime of possessing alcoholic beverages in an 12 unregistered keg. 13 (f) Selling alcoholic beverages in an unregistered keg is a violation. 14 (g) Possessing alcoholic beverages in an unregistered keg is a violation and is 15 punishable by a fine of $100. 16 * Sec. 131. AS 04.21.020(a) is amended to read: 17 (a) Except as provided under (b) and (d) of this section, a person who provides 18 alcoholic beverages to another person may not be held civilly liable for injuries 19 resulting from the intoxication of that person unless the person who provides the 20 alcoholic beverages holds a license authorized under AS 04.09.020 - 04.09.360 21 [AS 04.11.080 - 04.11.220] or is an agent or employee of [SUCH] a licensee and 22 (1) the alcoholic beverages are provided to a person under [THE AGE 23 OF] 21 years of age in violation of AS 04.16.051, unless the licensee, agent, or 24 employee secures in good faith from the person a signed statement, liquor 25 identification card, or driver's license meeting the requirements of AS 04.21.050(a) 26 and (b), that indicates that the person is 21 years of age or older; or 27 (2) the alcoholic beverages are provided to a drunken person in 28 violation of AS 04.16.030. 29 * Sec. 132. AS 04.21.020(b) is amended to read: 30 (b) A person who sells or barters an alcoholic beverage to another person in 31 violation of AS 04.09.060, 04.09.070, 04.09.145, 04.09.370, 04.09.380, or

01 AS 04.11.010 is strictly liable (1) to the recipient or another person for civil damages 02 if, while under the influence of the alcoholic beverage, the person receiving the 03 alcoholic beverage engages in conduct that results in civil damages and the recipient's 04 being under the influence of the alcoholic beverage substantially contributes to the 05 civil damages; and (2) for the cost to the state or a political subdivision of the state to 06 criminally prosecute a person who receives an alcoholic beverage from a person who 07 violates AS 04.11.010 if the prosecution results from the violation of AS 04.11.010 08 described in this subsection. 09 * Sec. 133. AS 04.21.025(a) is repealed and reenacted to read: 10 (a) Except as provided under (e) and (f) of this section, as a condition of 11 issuance or renewal of a license or conditional contractor's permit and selling alcoholic 12 beverages under a license or conditional contractor's permit, the board shall require a 13 licensee or permittee who sells or serves alcoholic beverages and a licensee's or 14 permittee's agents and employees who sell or serve alcoholic beverages or check the 15 identification of a patron to complete an alcohol server education course approved by 16 the board. 17 * Sec. 134. AS 04.21.025(b) is amended to read: 18 (b) The subjects that are included in an approved alcohol server education 19 course shall be determined under regulations adopted by the board. In approving 20 alcohol server education courses, the board shall consider the needs of both urban and 21 rural licensees regarding access to an approved alcohol server education course. A 22 licensee, permittee, agent, or employee who sells or serves alcoholic beverages shall 23 keep the card described in (c) of this section or other proof acceptable to the board of 24 successful completion of an approved alcohol server education course on the licensed 25 premises during working hours. 26 * Sec. 135. AS 04.21.025(c) is amended to read: 27 (c) A licensee, permittee, agent, or employee shall complete the course 28 required under (a) of this section and pass a written test demonstrating an 29 understanding of the course subjects not more than 30 days after being licensed, 30 permitted, or employed. The course provider shall issue a card to each individual who 31 completes the course and passes the written test. A card issued under this subsection is

01 valid for three years from the date of issue. A licensee, permittee, agent, or employee 02 may renew a card issued under this section; to renew the card, the licensee, permittee, 03 agent, or employee must pass a written test demonstrating an understanding of the 04 course subjects. Notwithstanding the 30-day period for completing the course and 05 passing the written test under this subsection, a person may not sell or serve 06 alcoholic beverages or check the identification of a patron at a permitted event 07 under AS 04.09.600 - 04.09.690 unless the person possesses a valid card issued 08 before the event. 09 * Sec. 136. AS 04.21.025 is amended by adding new subsections to read: 10 (f) This section does not apply to the following licenses: 11 (1) brewery manufacturer license under AS 04.09.020, unless the 12 licensee holds a manufacturer sampling endorsement; 13 (2) winery manufacturer license under AS 04.09.030, unless the 14 licensee holds a manufacturer sampling endorsement; 15 (3) distillery manufacturer license under AS 04.09.040, unless the 16 licensee holds a manufacturer sampling endorsement; 17 (4) general wholesale license under AS 04.09.100; 18 (5) limited wholesale brewed beverage and wine license under 19 AS 04.09.110; 20 (6) winery direct shipment license under AS 04.09.360. 21 (g) A person who violates (a) - (c) or (e) of this section commits the offense of 22 failure to comply with alcohol server education requirements. 23 (h) Failure to comply with alcohol server education requirements is a 24 violation. 25 * Sec. 137. AS 04.21.050(a) is amended to read: 26 (a) If a licensee or an agent or employee of the licensee questions or has 27 reason to question whether a person entering licensed premises, or ordering, 28 purchasing, attempting to purchase, or otherwise procuring or attempting to procure 29 alcoholic beverages, 30 (1) has attained the age of 21 years or is entering without consent in 31 violation of AS 04.16.049(a)(2) [AS 04.16.049(a)(3)] and has not attained the age of

01 16 years, that licensee, agent, or employee shall require the person to furnish proof of 02 age acceptable under (b) of this section or proof of consent in a form determined by 03 the board; if the person questioned does not furnish proof of age acceptable under (b) 04 of this section, or if a licensee, agent, or employee questions or has reason to question 05 the validity of the proof of age furnished, the licensee, employee, or agent shall require 06 the person to sign a statement that the person is over the age of 21 or 16 years, as 07 appropriate; this statement shall be made on a form prepared by and furnished to the 08 licensee by the board; 09 (2) is restricted from purchasing alcoholic beverages under 10 AS 04.16.160, the licensee, agent, or employee may, but has no duty or obligation to, 11 require the person to furnish proof acceptable under (b) of this section that the person 12 is not restricted from purchasing alcoholic beverages or require the person to sign a 13 statement that the person is not restricted from purchasing alcoholic beverages under 14 AS 04.16.160; this statement shall be made on a form prepared by and furnished to the 15 licensee by the board. 16 * Sec. 138. AS 04.21.060 is amended by adding new subsections to read: 17 (b) A licensee who stores alcoholic beverages elsewhere than on the licensed 18 premises and who fails to comply with (a)(1) - (3) of this section commits the offense 19 of unauthorized warehousing. 20 (c) Unauthorized warehousing is a violation. 21 * Sec. 139. AS 04.21.065(a) is repealed and reenacted to read: 22 (a) A holder of one of the following types of licenses or permits shall post on 23 the licensed or designated premises three separate warning signs as described in (b) of 24 this section: 25 (1) brewery manufacturer license under AS 04.09.020 with a 26 manufacturer sampling endorsement under AS 04.09.410; 27 (2) winery manufacturer license under AS 04.09.030 with a 28 manufacturer sampling endorsement under AS 04.09.410; 29 (3) distillery manufacturer license under AS 04.09.040 with a 30 manufacturer sampling endorsement under AS 04.09.410; 31 (4) beverage dispensary license under AS 04.09.200;

01 (5) restaurant or eating place license under AS 04.09.210; 02 (6) club license under AS 04.09.220; 03 (7) package store license under AS 04.09.230; 04 (8) pub license under AS 04.09.240; 05 (9) theater license under AS 04.09.250; 06 (10) common carrier dispensary license under AS 04.09.260; 07 (11) sporting event license under AS 04.09.270; 08 (12) outdoor recreation lodge license under AS 04.09.280; 09 (13) golf course license under AS 04.09.290; 10 (14) destination resort license under AS 04.09.300; 11 (15) brewery retail license under AS 04.09.310; 12 (16) winery retail license under AS 04.09.320; 13 (17) distillery retail license under AS 04.09.330; 14 (18) beverage dispensary tourism license under AS 04.09.340; 15 (19) seasonal restaurant or eating place tourism license under 16 AS 04.09.350; 17 (20) beverage dispensary caterer's permit under AS 04.09.610; 18 (21) restaurant caterer's dining permit under AS 04.09.620; 19 (22) club caterer's permit under AS 04.09.630; 20 (23) art exhibit event permit under AS 04.09.640; 21 (24) nonprofit organization event permit under AS 04.09.650; 22 (25) tasting event permit under AS 04.09.670; 23 (26) conditional contractor's permit under AS 04.09.690; 24 (27) another license or permit issued by the board authorizing 25 consumption of alcoholic beverages. 26 * Sec. 140. AS 04.21 is amended by adding new sections to read: 27 Sec. 04.21.072. Fines and other criminal penalties. (a) A violation under this 28 title, unless otherwise specified in the provision of this title defining the offense, is 29 punishable by a fine of $250. 30 (b) A misdemeanor or felony under this title, unless otherwise specified in the 31 provision of this title defining the offense, is punishable as provided in AS 12.55.

01 Sec. 04.21.074. Bail forfeiture schedule. The supreme court shall establish by 02 rule or order a schedule of bail amounts for violations under this title that allow the 03 disposition of a citation without a court appearance. The bail amount may not exceed 04 the maximum penalty prescribed by law for the violation. 05 Sec. 04.21.076. Suspension of fine or sentence. The court may not suspend a 06 fine for an offense other than a misdemeanor or felony under this title, or suspend 07 imposition or execution of sentence for an offense other than a misdemeanor or felony 08 under this title, unless otherwise expressly provided in this title. 09 * Sec. 141. AS 04.21.078 is amended to read: 10 Sec. 04.21.078. Court records of persons under 21 years of age. The Alaska 11 Court System may not publish on a publicly available website the court records of a 12 violation of AS 04.16.049, [OR] 04.16.050, 04.16.060(g), or a similar ordinance of a 13 municipality, if the violation was charged separately and was not joined with any other 14 minor offense or criminal charge at the time of filing. 15 * Sec. 142. AS 04.21.080(b)(6) is amended to read: 16 (6) "designated premises" means any or all designated portions of a 17 building or structure, rooms or enclosures in the building or structure, or real estate 18 leased, used, controlled, or operated by a licensee or permittee for the purpose for 19 which the license or permit is issued by the board at the location of the site for which 20 the license or permit is issued; 21 * Sec. 143. AS 04.21.080(b)(15) is amended to read: 22 (15) "licensed premises" means any or all designated portions of a 23 building or structure, rooms or enclosures in the building or structure, or real estate 24 leased, used, controlled, or operated by a licensee in the conduct of business for which 25 the licensee is licensed by the board at the specific address for which the license or an 26 endorsement to the license is issued; 27 * Sec. 144. AS 04.21.080(b) is amended by adding new paragraphs to read: 28 (21) "bona fide restaurant" means an establishment or a portion of an 29 establishment where, during all times alcoholic beverages are served or consumed, 30 (A) the patron's principal activity is consumption of food; and 31 (B) a variety of types of food items appropriate for meals is

01 prepared on site and available for sale as shown on a menu provided to patrons 02 and filed with the board; 03 (22) "brewed beverage" means an alcoholic beverage made by 04 fermenting cereal grains, including beer and malt beverages, sake, and kombucha; 05 (23) "calendar year" means the period beginning January 1 and ending 06 December 31; 07 (24) "cider" means a type of wine made primarily from fermented 08 apples, apple juice, or concentrate; 09 (25) "distilled spirit" means an alcoholic beverage that is first 10 fermented and then distilled; 11 (26) "golf course" means a course that is open to the public, having at 12 least nine holes and covering at least 2,950 yards; 13 (27) "kombucha" means a brewed beverage made from fermented tea 14 and containing at least one-half percent alcohol by volume; 15 (28) "mead" means a type of wine made primarily from honey; 16 (29) "sake" means a type of brewed beverage made primarily from 17 fermented rice; 18 (30) "wine" means an alcoholic beverage made from fermented grapes 19 or other fruit or honey. 20 * Sec. 145. AS 05.15.690(48) is amended to read: 21 (48) "vendor" means a business whose primary activity is not regulated 22 by this chapter but that 23 (A) is engaged in the sale of pull-tabs on behalf of a permittee; 24 (B) holds a business license under AS 43.70; and 25 (C) is an establishment holding a 26 (i) beverage dispensary license under AS 04.09.200 or 27 beverage dispensary tourism license under AS 04.09.340 without a 28 restaurant endorsement issued under AS 04.09.450 [AS 04.11.090] 29 that [HAS NOT BEEN DESIGNATED BY THE ALCOHOLIC 30 BEVERAGE CONTROL BOARD UNDER AS 04.16.049(a)(2) - (3),] 31 has not been exempted by the Department of Labor and Workforce

01 Development under AS 04.16.049(c) and AS 23.10.355 [,] and, if the 02 establishment is a hotel, motel, resort, or similar business that caters to 03 the traveling public as a substantial part of its business, does not allow 04 the sale of pull-tabs in a dining room, banquet room, guest room, or 05 other public areas other than a room in which there is regularly 06 maintained a fixed counter or service bar that has plumbing 07 connections to permanent plumbing at which alcoholic beverages are 08 sold or served to members of the public for consumption; 09 (ii) package store license under AS 04.09.230 10 [AS 04.11.150]; 11 * Sec. 146. AS 09.65.315(b) is amended to read: 12 (b) A person licensed under AS 04.09.020 - 04.09.360 [AS 04.11.080 - 13 04.11.255], or an agent or employee of the person, is not liable for damages resulting 14 from a motor vehicle accident described under (a) of this section. A person or entity 15 that participates in making arrangements for transportation of a vehicle under (a) of 16 this section is not liable for damages resulting from a motor vehicle accident described 17 in (a) of this section. 18 * Sec. 147. AS 11.61.220(d) is amended to read: 19 (d) In a prosecution under (a)(2) of this section, it is 20 (1) an affirmative defense that 21 (A) [REPEALED] 22 (B) the loaded firearm was a concealed handgun as defined in 23 AS 18.65.790; and 24 (C) the possession occurred at a place covered by a restaurant 25 endorsement under AS 04.09.450 [DESIGNATED AS A RESTAURANT 26 FOR THE PURPOSES OF AS 04.16.049] and the defendant did not consume 27 intoxicating liquor at the place; 28 (2) a defense that the defendant, at the time of possession, was on 29 business premises 30 (A) owned by or leased by the defendant; or 31 (B) in the course of the defendant's employment for the owner

01 or lessee of those premises. 02 * Sec. 148. AS 11.76.100(b) is amended to read: 03 (b) Notwithstanding the provisions of (a) of this section, a person who 04 maintains a vending machine is not in violation of (a)(3) of this section if the vending 05 machine is located 06 (1) on premises licensed as a beverage dispensary under AS 04.09.200 07 or 04.09.340 [AS 04.11.090], licensed as a club under AS 04.09.220 [AS 04.11.110], 08 or licensed as a package store under AS 04.09.230 [AS 04.11.150]; and 09 (A) as far as practicable from the primary entrance; and 10 (B) in a place that is directly and continually supervised by a 11 person employed on the licensed premises during the hours the vending 12 machine is accessible to the public; or 13 (2) in an employee break room or other controlled area of a private 14 work place that is not generally considered a public place and the room or area 15 contains a posted warning sign at least 11 inches by 14 inches indicating that 16 possession of tobacco by a person under 19 years of age is prohibited under 17 AS 11.76.105. 18 * Sec. 149. AS 11.76.107(a) is amended to read: 19 (a) A person commits the offense of failure to supervise a vending machine if 20 the person owns premises licensed as a beverage dispensary under AS 04.09.200 or 21 04.09.340 [AS 04.11.090], licensed as a club under AS 04.09.220 [AS 04.11.110], or 22 licensed as a package store under AS 04.09.230 [AS 04.11.150] and with criminal 23 negligence fails to have an employee supervise a vending machine on those premises 24 that dispenses cigarettes, cigars, tobacco, products containing tobacco, electronic 25 smoking products, or products containing nicotine as required by 26 AS 11.76.100(b)(1)(B) and 11.76.109(f)(1)(B). 27 * Sec. 150. AS 11.76.109(d) is amended to read: 28 (d) Notwithstanding (a)(3) of this section, a person who maintains a vending 29 machine is not in violation of (a)(3) of this section if the vending machine is located 30 (1) on premises licensed as a beverage dispensary under AS 04.09.200 31 or 04.09.340 [AS 04.11.090], licensed as a club under AS 04.09.220 [AS 04.11.110],

01 or licensed as a package store under AS 04.09.230 [AS 04.11.150], and is located 02 (A) as far as practicable from the primary entrance; and 03 (B) in a place that is directly and continually supervised by a 04 person employed on the licensed premises during the hours the vending 05 machine is accessible to the public; or 06 (2) in an employee break room or other controlled area of a private 07 work place that is not generally considered a public place and the room or area 08 contains a posted warning sign at least 11 inches by 8.5 inches indicating that 09 possession of electronic smoking products or products containing nicotine by a person 10 under 19 years of age without a prescription is prohibited under this section 11 [AS 11.76.109]. 12 * Sec. 151. AS 12.62.400(a) is amended to read: 13 (a) To obtain a national criminal history record check for determining a 14 person's qualifications for a license, permit, registration, employment, or position, a 15 person shall submit the person's fingerprints to the department with the fee established 16 by AS 12.62.160. The department may submit the fingerprints to the Federal Bureau 17 of Investigation to obtain a national criminal history record check of the person for the 18 purpose of evaluating a person's qualifications for 19 (1) a license or conditional contractor's permit to manufacture, sell, 20 offer for sale, possess for sale or barter, traffic in, or barter an alcoholic beverage 21 under AS 04.09 [AS 04.11]; 22 (2) licensure as a mortgage lender, a mortgage broker, or a mortgage 23 loan originator under AS 06.60; 24 (3) admission to the Alaska Bar Association under AS 08.08; 25 (4) licensure as a collection agency operator under AS 08.24; 26 (5) a certificate of fitness to handle explosives under AS 08.52; 27 (6) licensure as a massage therapist under AS 08.61; 28 (7) licensure to practice nursing or certification as a nurse aide under 29 AS 08.68; 30 (8) certification as a real estate appraiser under AS 08.87; 31 (9) a position involving supervisory or disciplinary power over a minor

01 or dependent adult for which criminal justice information may be released under 02 AS 12.62.160(b)(9); 03 (10) a teacher certificate under AS 14.20; 04 (11) a registration or license to operate a marijuana establishment 05 under AS 17.38; 06 (12) admittance to a police training program under AS 18.65.230 or for 07 certification as a police officer under AS 18.65.240 if that person's prospective 08 employer does not have access to a criminal justice information system; 09 (13) licensure as a security guard under AS 18.65.400 - 18.65.490; 10 (14) a concealed handgun permit under AS 18.65.700 - 18.65.790; 11 (15) licensure as an insurance producer, managing general agent, 12 reinsurance intermediary broker, reinsurance intermediary manager, surplus lines 13 broker, or independent adjuster under AS 21.27; 14 (16) serving and executing process issued by a court by a person 15 designated under AS 22.20.130; 16 (17) a school bus driver license under AS 28.15.046; 17 (18) licensure as an operator or an instructor for a commercial driver 18 training school under AS 28.17; 19 (19) registration as a broker-dealer, agent, investment adviser 20 representative, or investment adviser under AS 45.56.300 - 45.56.350; 21 (20) licensure, license renewal, certification, certification renewal, or 22 payment from the Department of Health and Social Services of an individual and an 23 entity subject to the requirements for a criminal history check under AS 47.05.310, 24 including 25 (A) a public home care provider described in AS 47.05.017; 26 (B) a provider of home and community-based waiver services 27 financed under AS 47.07.030(c); 28 (C) a case manager to coordinate community mental health 29 services under AS 47.30.530; 30 (D) an entity listed in AS 47.32.010(b), including an owner, 31 officer, director, member, partner, employee, volunteer, or contractor of an

01 entity; or 02 (E) an individual or entity not described in (A) - (D) of this 03 paragraph that is required by statute or regulation to be licensed or certified by 04 the Department of Health and Social Services or that is eligible to receive 05 payments, in whole or in part, from the Department of Health and Social 06 Services to provide for the health, safety, and welfare of persons who are 07 served by the programs administered by the Department of Health and Social 08 Services. 09 * Sec. 152. AS 18.56.230(b) is amended to read: 10 (b) The corporation may not authorize the commercial use of space in a multi- 11 unit residential housing development owned or financed by the corporation for 12 (1) a business that offers adult entertainment; 13 (2) the sale of alcoholic beverages, unless the sale [IS IN A 14 RESTAURANT OR EATING PLACE LICENSED UNDER AS 04.11.100 OR] is in 15 premises covered by a restaurant endorsement issued [DESIGNATED] by the 16 Alcoholic Beverage Control Board under AS 04.09.450 [AS A RESTAURANT 17 UNDER AS 04.16.049]; 18 (3) substance abuse treatment; or 19 (4) a business that primarily sells, transfers, or stores cigarettes or 20 tobacco-related products. 21 * Sec. 153. AS 18.65.085(c) is amended to read: 22 (c) The Department of Public Safety may establish and administer a reward 23 program, and provide grants to municipalities, established villages, and, at the request 24 of a municipality or established village, to a nonprofit association that administers a 25 village public safety officer program, for reward programs leading to the apprehension 26 and conviction of persons who violate AS 04.09.060, 04.09.070, 04.09.145, 04.09.370, 27 04.09.380, or AS 04.11.010 by selling, importing, or possessing alcoholic beverages 28 in violation of a local option adopted by a municipality or established village under 29 AS 04.11.491. 30 * Sec. 154. AS 18.80.230(b) is amended to read: 31 (b) Notwithstanding (a) of this section, a physical fitness facility may limit

01 public accommodation to only males or only females to protect the privacy interests of 02 its users. Public accommodation may be limited under this subsection only to those 03 rooms in the facility that are primarily used for weight loss, aerobic, and other 04 exercises, or for resistance weight training. Public accommodation may not be limited 05 under this subsection to rooms in the facility primarily used for other purposes, 06 including conference rooms, dining rooms, and premises licensed under AS 04.09 07 [AS 04.11]. This subsection does not apply to swimming pools or golf courses. 08 * Sec. 155. AS 43.60 is amended by adding a new section to read: 09 Sec. 43.60.060. Winery direct shipment tax; statement; audit. A holder of a 10 winery direct shipment license under AS 04.09.360 who sells wine in the state or who 11 consigns shipments of wine into the state shall 12 (1) be subject to the taxes provided under AS 43.60.010(a); 13 (2) provide monthly statements and other information required under 14 AS 43.60.020 with the remittance of a tax collected under this section; 15 (3) allow the Department of Revenue to perform an audit of the 16 holder's records upon request; and 17 (4) consent to the jurisdiction of a state court concerning enforcement 18 of this section relating to the collection of taxes and other money owed by the holder, 19 including interest and penalties. 20 * Sec. 156. AS 43.70.105(a) is amended to read: 21 (a) This chapter does not apply to 22 (1) a fisheries business; 23 (2) the sale of liquor under a license issued under AS 04.09 24 [AS 04.11]; 25 (3) an insurance business; 26 (4) a mining business; 27 (5) supplying services as an employee; 28 (6) furnishing goods or services by a person who does not represent to 29 be regularly engaged in furnishing goods or services; 30 (7) the activities of an investment club; in this paragraph, 31 (A) "investment club" means a group of individuals,

01 incorporated or otherwise organized, that engages primarily in investing in 02 securities, that does not sell investment services to another person, that does 03 not advertise, and the primary purpose of which is educational; 04 (B) "security" has the meaning given in AS 45.56.900. 05 * Sec. 157. AS 45.45.590(1) is amended to read: 06 (1) "business proprietor" means a person who owns a place of business 07 in which the public may assemble and in which copyrighted musical works may be 08 performed, broadcasted, or otherwise transmitted; in this paragraph, "place of 09 business" includes a store, professional office, sports facility, entertainment facility, 10 restaurant, hotel, or [AN] alcoholic beverage establishment licensed under AS 04.09 11 [AS 04.11]; 12 * Sec. 158. The uncodified law of the State of Alaska is amended by adding a new section 13 to read: 14 DIRECT COURT RULE AMENDMENT. Rule 17(h), Alaska Rules of Minor 15 Offense Procedure, is amended to read: 16 (h) Joinder Limits. A prosecutor may not join a violation of AS 04.16.049, 17 [OR] 04.16.050, or 04.16.060(g) or a similar municipal ordinance with a related 18 criminal charge. 19 * Sec. 159. AS 04.11.070, 04.11.080, 04.11.090, 04.11.100, 04.11.110, 04.11.115, 20 04.11.120, 04.11.130, 04.11.135, 04.11.140, 04.11.150, 04.11.160, 04.11.170, 04.11.180, 21 04.11.200, 04.11.210, 04.11.220, 04.11.225, 04.11.230, 04.11.240, 04.11.250, 04.11.255, 22 04.11.400(d), 04.11.400(h), 04.11.400(j); AS 04.16.070, 04.16.100, 04.16.180(a), 23 04.16.180(d), 04.16.210; and AS 04.21.080(b)(3) are repealed. 24 * Sec. 160. AS 04.11.400(e) and 04.11.400(g) are repealed. 25 * Sec. 161. AS 04.09.270(f) is repealed January 1, 2029. 26 * Sec. 162. Sections 165(a) and 166 of this Act are repealed January 1, 2021. 27 * Sec. 163. The uncodified law of the State of Alaska is amended by adding a new section 28 to read: 29 APPLICABILITY. (a) The provisions of secs. 10 - 21, 30, 80 - 83, 85 - 130, 135 - 30 138, 140, and 148 - 150 of this Act apply to offenses committed on or after the effective date 31 of each of those respective sections.

01 (b) References to previous convictions in AS 04.11.270(a), as amended by sec. 24 of 02 this Act, AS 04.16.180(b), as amended by sec. 123 of this Act, AS 04.16.180(e), as amended 03 by sec. 124 of this Act, and AS 04.16.220(i), as amended by sec. 129 of this Act, apply to 04 convictions occurring before, on, or after the effective date of each of those respective 05 sections. 06 * Sec. 164. The uncodified law of the State of Alaska is amended by adding a new section 07 to read: 08 TRANSITION: IMPLEMENTATION. Notwithstanding sec. 170 of this Act, to timely 09 provide for the issuance, renewal, and transfer of licenses, endorsements, and permits 10 beginning on January 1, 2021, the Alcoholic Beverage Control Board may immediately 11 implement secs. 3, 4, 9, 10, 22, 24, 70, and 165 of this Act by sending out notices relating to, 12 accepting applications for, and collecting fees for licenses, endorsements, and permits as if 13 secs. 3, 4, 9, 10, 22, 24, 70, and 165 of this Act were in effect at the time of implementation, 14 so long as licenses, endorsements, and permits are not issued under those sections before 15 January 1, 2021. 16 * Sec. 165. The uncodified law of the State of Alaska is amended by adding a new section 17 to read: 18 TRANSITION: CONVERSION OF APPLICATIONS AND LICENSES. (a) 19 Notwithstanding the population limits under AS 04.11.400(a) or (b), the Alcoholic Beverage 20 Control Board shall convert, within 90 days after the effective date of this subsection, 21 (1) a license issued or renewed as necessary for the public convenience under 22 former AS 04.11.400(e) or 04.11.400(g), repealed by sec. 160 of this Act, into a restaurant or 23 eating place license under AS 04.11.100; if the license was issued as a restaurant or eating 24 place license, or into a beverage dispensary license under AS 04.11.090, if the license was 25 issued as a beverage dispensary license under former AS 04.11.400(j), as that subsection read 26 on June 5, 1985; 27 (2) an application submitted to the board that meets all of the requirements 28 under former AS 04.11.400(e) or 04.11.400(g), repealed by sec. 160 of this Act, into an 29 application for a restaurant or eating place license under AS 04.11.100. 30 (b) Notwithstanding the population limits under AS 04.11.400(a) or (b), the Alcoholic 31 Beverage Control Board shall convert, within 90 days after the effective date of this

01 subsection, 02 (1) a license issued or renewed as a bottling works license under former 03 AS 04.11.120, repealed by sec. 159 of this Act, into a brewery manufacturer license under 04 AS 04.09.020, added by sec. 10 of this Act, or into a winery manufacturer license under 05 AS 04.09.030, added by sec. 10 of this Act; 06 (2) a license issued or renewed as a brewpub license under former 07 AS 04.11.135, repealed by sec. 159 of this Act, into a brewery manufacturer license under 08 AS 04.09.020, added by sec. 10 of this Act; 09 (3) a license issued or renewed as a beverage dispensary license or restaurant 10 or eating place license for a premises that is a theater under former AS 04.11.090 or 11 AS 04.11.100, repealed by sec. 159 of this Act, into a theater license under AS 04.09.250, 12 added by sec. 10 of this Act; 13 (4) a license issued or renewed as a wholesale license under former 14 AS 04.11.160(a), repealed by sec. 159 of this Act, into a general wholesale license under 15 AS 04.09.100, added by sec. 10 of this Act; 16 (5) a license issued or renewed as a wholesale license under former 17 AS 04.11.160(b), repealed by sec. 159 of this Act, into a limited wholesale brewed beverage 18 and wine license under AS 04.09.110, added by sec. 10 of this Act; 19 (6) a license issued or renewed as a beverage dispensary license under former 20 AS 04.11.400(d), repealed by sec. 159 of this Act, into a beverage dispensary tourism license 21 under AS 04.09.340, added by sec. 10 of this Act; 22 (7) a duplicate license issued or renewed as a duplicate beverage dispensary 23 license under former AS 04.11.090(e), repealed by sec. 159 of this Act, into a multiple fixed 24 counter endorsement under AS 04.09.420, added by sec. 10 of this Act. 25 (c) Notwithstanding the population limits under AS 04.11.400(a) or (b), the Alcoholic 26 Beverage Control Board may 27 (1) convert a license issued or renewed as a brewery license under former 28 AS 04.11.130, repealed by sec. 159 of this Act, into a brewery manufacturer license under 29 AS 04.09.020, added by sec. 10 of this Act, and a brewery retail license under AS 04.09.310, 30 added by sec. 10 of this Act, upon application by the licensee; 31 (2) convert an application submitted to the board that meets all of the

01 requirements under former AS 04.11.130, repealed by sec. 159 of this Act, into an application 02 for a brewery manufacturer license under AS 04.09.020, added by sec. 10 of this Act, and a 03 brewery retail license under AS 04.09.310, added by sec. 10 of this Act; 04 (3) convert a license issued or renewed as a winery license under former 05 AS 04.11.140, repealed by sec. 159 of this Act, into a winery manufacturer license under 06 AS 04.09.030, added by sec. 10 of this Act, and a winery retail license under AS 04.09.320, 07 added by sec. 10 of this Act, upon application by the licensee; 08 (4) convert an application submitted to the board that meets all of the 09 requirements under former AS 04.11.140, repealed by sec. 159 of this Act, into an application 10 for a winery manufacturer license under AS 04.09.030, added by sec. 10 of this Act, and a 11 winery retail license under AS 04.09.320, added by sec. 10 of this Act; 12 (5) convert a license issued or renewed as a distillery license under former 13 AS 04.11.170, repealed by sec. 159 of this Act, into a distillery manufacturer license under 14 AS 04.09.040, added by sec. 10 of this Act, and a distillery retail license under AS 04.09.330, 15 added by sec. 10 of this Act, upon application by the licensee; 16 (6) convert an application submitted to the board that meets all of the 17 requirements under former AS 04.11.170, repealed by sec. 159 of this Act, into an application 18 for a distillery manufacturer license under AS 04.09.040, added by sec. 10 of this Act, and a 19 distillery retail license under AS 04.09.330, added by sec. 10 of this Act; 20 (7) convert a license issued or renewed as a recreational site license under 21 former AS 04.11.210, repealed by sec. 159 of this Act, into a sporting event license under 22 AS 04.09.270, added by sec. 10 of this Act, upon application by the licensee; 23 (8) establish an application form and procedure for conversion applications 24 under this subsection. 25 * Sec. 166. The uncodified law of the State of Alaska is amended by adding a new section 26 to read: 27 TRANSITION: SEASONAL RESTAURANT OR EATING PLACE LICENSE. (a) 28 Notwithstanding AS 04.11.080, the Alcoholic Beverage Control Board may issue a seasonal 29 restaurant or eating place tourism license to a person who files an application under 30 AS 04.11.260. 31 (b) A seasonal restaurant or eating place license authorizes a restaurant or eating place

01 to sell brewed beverages and wine for consumption only on the licensed premises for a period 02 not to exceed six months in each calendar year. 03 (c) The biennial seasonal restaurant or eating place tourism license fee is $1,250. 04 (d) The board may issue a license under this section only if 05 (1) the board determines that the licensed premises is a bona fide restaurant or 06 eating place; and 07 (2) the sale and service of food and alcoholic beverages and any other 08 business conducted on the licensed premises of the restaurant or eating place is under the sole 09 control of the licensee. 10 (e) The board may issue a license under this section only in a municipality or 11 established village that 12 (1) has a population of 40,000 or less; and 13 (2) receives more than 4,000 visitors a year, as determined by the board in 14 regulation. 15 (f) The board may issue a license or approve an application for the transfer of 16 ownership of a license under this section if it appears that issuance or transfer will encourage 17 the tourism trade. 18 (g) The holder of a seasonal restaurant or eating place tourism license shall ensure 19 that gross receipts from the sale of food for consumption on the licensed premises are not less 20 than the total amount of the gross receipts from the sale of alcoholic beverages for 21 consumption on the licensed premises in each calendar year. 22 (h) The board shall adopt a regulation establishing a formula to limit the number of 23 seasonal restaurant or eating place tourism licenses. 24 (i) The holder of a seasonal restaurant or eating place tourism license may provide 25 entertainment on or adjacent to the licensed premises only between the hours of 11:00 a.m. 26 and 11:00 p.m. unless additional hours are approved by the director upon the written request 27 of the licensee for a specific occasion. The director may not grant approval for additional 28 hours of entertainment on or adjacent to the licensed premises of an individual licensee more 29 than three times in a calendar year. In this subsection, "entertainment" includes dancing, 30 karaoke, live performances, or similar activities, but does not include recorded or broadcast 31 performances without live participation.

01 (j) A license issued under this section may be renewed under AS 04.09.350, added by 02 sec. 10 of this Act, on or after the effective date of sec. 10 of this Act. 03 (k) In this section, "bona fide restaurant" means an establishment or a portion of an 04 establishment where, during all times alcoholic beverages are served or consumed, 05 (1) the patron's principal activity is consumption of food; and 06 (2) a variety of types of food items appropriate for meals is prepared on site 07 and available for sale as shown on a menu provided to patrons and filed with the board. 08 * Sec. 167. The uncodified law of the State of Alaska is amended by adding a new section 09 to read: 10 TRANSITION: REGULATIONS. The Department of Commerce, Community, and 11 Economic Development and the Alcoholic Beverage Control Board may adopt regulations 12 necessary to implement the changes made by this Act. The regulations take effect under 13 AS 44.62 (Administrative Procedure Act), but not before the effective date of the law 14 implemented by the regulation. 15 * Sec. 168. Sections 32, 37, 39, 45, 49, 54, 160, 165(a), 165(c)(8), 166, and 167 of this Act 16 take effect immediately under AS 01.10.070(c). 17 * Sec. 169. Section 164 of this Act takes effect September 1, 2020. 18 * Sec. 170. Except as provided in secs. 168 and 169 of this Act, this Act takes effect 19 January 1, 2021.