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CSSB 52(FIN): "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 CS FOR SENATE BILL NO. 52(FIN) 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) The fermentation process of all brewed beverages offered for sale by the 14 holder of a brewery manufacturer license must occur on the holder's licensed premises 15 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 $1,000. 20 (c) The fermentation process of all wine offered for sale by the holder of a 21 winery manufacturer license must occur on the holder's licensed premises in the state. 22 Sec. 04.09.040. Distillery manufacturer license. (a) A distillery manufacturer 23 license authorizes the holder to operate a distillery for the manufacture, packaging, 24 storing, and sale of its distilled spirits to a buyer as permitted in AS 04.09.050. 25 (b) The biennial distillery manufacturer license fee is $1,250. 26 (c) At least 80 percent of each final product that contains distilled spirits 27 offered for sale by the holder of a distillery manufacturer license must be 28 manufactured on the holder's licensed premises in the state. 29 Sec. 04.09.050. Authorized sales. (a) The holder of a manufacturer license 30 that annually produces in total less than 300,000 barrels of brewed beverages or mead 31 or cider containing less than 8.5 percent alcohol by volume, less than 50,000 nine-

01 liter-equivalent cases of wine, sake, or mead or cider containing 8.5 percent or more 02 alcohol by volume, or less than 50,000 nine-liter-equivalent cases of distilled spirits 03 may sell its product to 04 (1) the holder of a wholesale license issued under this chapter; 05 (2) the holder of a retail license issued under this chapter; 06 (3) the holder of a permit issued under this chapter; 07 (4) an entity in another state or country. 08 (b) The holder of a manufacturer license that annually produces in total 09 300,000 barrels or more of brewed beverages or mead or cider containing less than 8.5 10 percent alcohol by volume, 50,000 nine-liter-equivalent cases or more of wine, sake, 11 or mead or cider containing 8.5 percent or more alcohol by volume, or 50,000 nine- 12 liter-equivalent cases or more of distilled spirits may sell its product to 13 (1) the holder of a wholesale license issued under this chapter; 14 (2) an entity in another state or country. 15 (c) For purposes of calculating the volume that the holder of a manufacturer 16 license produces under this section, the volume of production must include all 17 production by 18 (1) the holder of the manufacturer's license; and 19 (2) an officer, director, agent, employee, or affiliate of the holder; in 20 this paragraph, "affiliate" means a person that directly or indirectly, through one or 21 more intermediaries, controls, or is controlled by, or is under common control with, a 22 corporation. 23 Sec. 04.09.060. Unlicensed manufacturing. (a) A person commits the crime 24 of unlicensed manufacturing if the person knowingly operates a 25 (1) brewery without a brewery manufacturer license; 26 (2) winery without a winery manufacturer license; or 27 (3) distillery without a distillery manufacturer license. 28 (b) Unlicensed manufacturing is a class A misdemeanor. 29 Sec. 04.09.080. Unauthorized manufacturer sale. (a) Except as provided in 30 AS 04.09.310 - 04.09.330, a person who holds a manufacturer license commits the 31 offense of unauthorized manufacturer sale if the person sells its product in violation of

01 AS 04.09.050. 02 (b) Unauthorized manufacturer sale is a violation. 03 Sec. 04.09.090. Definition. In AS 04.09.020 - 04.09.090, "packaging" means 04 the process of containing alcoholic beverages in bottles or other types of containers for 05 purpose of resale. 06 Article 3. Wholesale Licenses. 07 Sec. 04.09.100. General wholesale license. (a) A general wholesale license 08 authorizes the holder to sell alcoholic beverages at wholesale. The holder of a general 09 wholesale license may not sell to a person not licensed under this title, except as 10 provided in AS 04.21.040. 11 (b) The biennial general wholesale license fee is $2,000. 12 (c) In addition to the license fee under (b) of this section, the holder of a 13 general wholesale license shall pay an annual fee based on the total value of business 14 transacted by the wholesale business, including the excise tax imposed by 15 AS 43.60.010. If the total value of business transacted during the calendar year 16 including the excise tax imposed by AS 43.60.010 is 17 (1) less than or equal to $100,000, then the annual fee is $0; 18 (2) over $100,000 and not over $150,000, then the annual fee is $250; 19 (3) over $150,000 and not over $200,000, then the annual fee is $500; 20 (4) over $200,000 and not over $250,000, then the annual fee is $750; 21 (5) over $250,000 and not over $300,000, then the annual fee is 22 $1,000; 23 (6) over $300,000 and not over $350,000, then the annual fee is 24 $1,250; 25 (7) over $350,000 and not over $400,000, then the annual fee is 26 $1,500; 27 (8) over $400,000 and not over $500,000, then the annual fee is 28 $2,000; 29 (9) over $500,000 and not over $600,000, then the annual fee is 30 $2,500; 31 (10) over $600,000 and not over $700,000, then the annual fee is

01 $3,000; 02 (11) over $700,000 and not over $800,000, then the annual fee is 03 $3,500; 04 (12) over $800,000 and not over $1,000,000, then the annual fee is 05 $4,500; 06 (13) over $1,000,000, then the annual fee is $10,000. 07 Sec. 04.09.110. Limited wholesale brewed beverage and wine license. (a) A 08 limited wholesale brewed beverage and wine license authorizes the holder to sell 09 brewed beverages and wine at wholesale. The holder of a limited wholesale brewed 10 beverage and wine license may not sell to a person not licensed under this title, except 11 as provided in AS 04.21.040. 12 (b) The biennial limited wholesale brewed beverage and wine license fee is 13 $400. 14 (c) In addition to the license fee under (b) of this section, the holder of a 15 limited wholesale brewed beverage and wine license shall pay an annual fee based on 16 the total value of business transacted by the wholesale business, including the excise 17 tax imposed by AS 43.60.010. If the total value of business transacted during the 18 calendar year including the excise tax imposed by AS 43.60.010 is 19 (1) less than or equal to $20,000, then the annual fee is $0; 20 (2) over $20,000 and not over $50,000, then the annual fee is $150; 21 (3) over $50,000 and not over $100,000, then the annual fee is $500; 22 (4) over $100,000 and not over $150,000, then the annual fee is $750; 23 (5) over $150,000 and not over $200,000, then the annual fee is 24 $1,000; 25 (6) over $200,000 and not over $400,000, then the annual fee is 26 $2,000; 27 (7) over $400,000 and not over $600,000, then the annual fee is 28 $3,000; 29 (8) over $600,000 and not over $800,000, then the annual fee is 30 $4,000; 31 (9) over $800,000, then the annual fee is $10,000.

01 Sec. 04.09.120. Annual fee and affidavit. (a) Not later than February 28 of 02 each year, the holder of a general wholesale license or a limited wholesale brewed 03 beverage and wine license shall pay the annual fee for the license for the preceding 04 calendar year, and file with the board an affidavit showing the 05 (1) total value of business transacted under the license by the 06 wholesale business, including the excise tax imposed by AS 43.60.010, during the 07 preceding calendar year; and 08 (2) location of the licensed premises at which the business was 09 transacted. 10 (b) Failure to file an affidavit under (a) of this section or the expiration of a 11 license under AS 04.11.540 does not relieve a licensee from paying the prescribed 12 annual fee. 13 Sec. 04.09.130. Wholesale supplier declaration. (a) A person who applies for 14 issuance or renewal of a general wholesale license or a limited wholesale brewed 15 beverage and wine license shall submit to the board, on a form prescribed by the 16 board, a declaration that the person is the appointed wholesaler of the distiller, brewer, 17 vintner, or importer of each product line of alcoholic beverage that the person intends 18 to purchase, offer for sale, or sell. The form must include a space for the person to 19 indicate the total number of suppliers. The board may request a list of suppliers, or 20 additional information about a product line. 21 (b) A person filing a declaration under this section shall pay a biennial filing 22 fee. If the declaration lists 23 (1) one to 25 suppliers, the fee is $500; 24 (2) 26 to 50 suppliers, the fee is $1,000; 25 (3) 51 to 75 suppliers, the fee is $1,500; 26 (4) 76 or more suppliers, the fee is $2,000. 27 (c) In this section, "distiller, brewer, vintner, or importer" includes an 28 exclusive agent of the distiller, brewer, vintner, or importer if the agent's name appears 29 on the label of the brand approved by the Alcohol and Tobacco Tax and Trade Bureau. 30 Sec. 04.09.140. Unlicensed wholesale sale. (a) A person commits the crime of 31 unlicensed wholesale sale if the person knowingly sells

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

01 (e) Unauthorized beverage dispensary activity is a violation. 02 Sec. 04.09.210. Restaurant or eating place license. (a) A restaurant or eating 03 place license authorizes a restaurant or eating place to 04 (1) sell brewed beverages and wine for consumption only on the 05 licensed premises; and 06 (2) allow a person 07 (A) under 21 years of age access as provided in (d) of this 08 section to the licensed premises; and 09 (B) to enter or remain on the licensed premises to consume 10 food or nonalcoholic beverages as authorized under AS 04.16.010(c)(5). 11 (b) The biennial restaurant or eating place license fee is $1,250. 12 (c) The board may issue or renew a license under this section only if the 13 (1) board determines that 14 (A) the licensed premises is a bona fide restaurant as defined in 15 AS 04.21.080(b); 16 (B) there is supervision on the premises adequate to reasonably 17 ensure that a person under 21 years of age will not obtain alcoholic beverages; 18 and 19 (C) it is unlikely that persons under 21 years of age not 20 employed on the premises will enter and remain on the licensed premises for 21 purposes other than dining; and 22 (2) sale and service of food and alcoholic beverages and any other 23 business conducted on the licensed premises of the restaurant or eating place is under 24 the sole control of the licensee. 25 (d) The board may authorize the holder of a restaurant or eating place license 26 (1) to allow a person who is at least 16 years of age but under 21 years 27 of age to enter and remain on the licensed premises for dining only; 28 (2) to allow a person who is under 16 years of age to enter and remain 29 on the licensed premises for dining only if 30 (A) the person is accompanied by a person who is 21 years of 31 age or older; and

01 (B) the parent or guardian of the person consents to the person 02 being on the licensed premises; and 03 (3) subject to AS 04.16.049, to employ or permit the employment of a 04 person who is at least 16 years of age but under 21 years of age on the licensed 05 premises if the employer provides adequate supervision to ensure that the person does 06 not obtain alcoholic beverages. 07 (e) The holder of a restaurant or eating place license shall ensure that gross 08 receipts from the sale of food for consumption on the licensed premises are not less 09 than the total of the gross receipts from the sale of alcoholic beverages for 10 consumption on the licensed premises in each calendar year. At the time the holder 11 submits an application for renewal of the license, the holder shall submit a statement 12 to the board certifying that the holder has met the requirement under this subsection 13 for the designated period of the license under AS 04.11.680. The board may renew a 14 restaurant or eating place license only if the licensee's statement provides evidence 15 satisfactory to the board that, during the designated period of the license under 16 AS 04.11.680, the gross receipts from the sale of food for consumption on the licensed 17 premises were not less than the total of the gross receipts from the sale of alcoholic 18 beverages for consumption on the licensed premises. 19 (f) The holder of a restaurant or eating place license may provide 20 entertainment on or adjacent to the licensed premises only between the hours of 10:00 21 a.m. and 11:00 p.m. unless additional hours are approved by the director upon the 22 written request of the licensee for a specific occasion. The director may not grant 23 approval for additional hours of entertainment on or adjacent to the licensed premises 24 of an individual licensee more than six times in a calendar year. In this subsection, 25 "entertainment" includes dancing, karaoke, live performances, or similar activities, but 26 does not include recorded or broadcast performances without live participation. 27 (g) Except as provided under AS 04.09.620, 04.09.640, 04.09.645, and 28 AS 04.16.120(c), the holder of a restaurant or eating place license commits the offense 29 of failure to comply with the terms of a restaurant or eating place license if the person 30 sells brewed beverages or wine in violation of (a) of this section, engages in activity 31 not authorized by the board under (d) of this section, or fails to comply with the

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

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

01 license, the licensed premises of the package store are contained within or are adjacent 02 to the licensed premises of the beverage dispensary, and the only public entrance to 03 the package store is by a door or other means within the beverage dispensary, the 04 board shall determine whether additional entrances to the package store are necessary 05 for enforcement purposes, to meet health and fire safety standards, or for the 06 convenience of the public. 07 (e) The holder of a package store license may not 08 (1) offer alcoholic beverages for consumption on the licensed premises 09 or allow the consumption of alcoholic beverages on the licensed premises except as 10 authorized by a package store sampling endorsement issued under AS 04.09.490 or a 11 package store tasting event permit issued under AS 04.09.670; 12 (2) subdivide alcoholic beverages except as authorized by a package 13 store repackaging endorsement issued under AS 04.09.480; 14 (3) offer alcoholic beverages for sale or sell alcoholic beverages to a 15 person not present on the licensed premises who makes an order for shipment except 16 as authorized by a package store shipping endorsement under AS 04.09.460; or 17 (4) deliver alcoholic beverages to a person not present on the licensed 18 premises except as authorized by a package store delivery endorsement under 19 AS 04.09.470. 20 (f) The holder of a package store license commits the offense of failure to 21 comply with the terms of a package store license if the person stores or sells alcoholic 22 beverages in violation of (a) of this section or fails to comply with (c) or (e) of this 23 section. 24 (g) Failure to comply with the terms of a package store license is a violation. 25 Sec. 04.09.240. Pub license. (a) A pub license authorizes the holder to sell 26 brewed beverages and wine for consumption only at a designated premises located on 27 the campus of an accredited college or university. 28 (b) The biennial pub license fee is $1,250. 29 (c) The board may not 30 (1) issue more than one pub license for each accredited college or 31 university campus in the state; and

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

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

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

01 may continue to offer brewed beverages and wine for sale to the public for 02 consumption on the premises until December 31, 2027, for a license renewing on an 03 odd-numbered year, or December 31, 2028, for a license renewing on an even- 04 numbered year, if the holder of the license is otherwise in compliance with the 05 requirements of this title as it read on the day before the effective date of this section. 06 Sec. 04.09.280. Outdoor recreation lodge license. (a) An outdoor recreation 07 lodge license authorizes the holder to sell alcoholic beverages to a registered overnight 08 guest or off-duty staff of the lodge for consumption on the licensed premises or in 09 conjunction with purchased outdoor recreation activities provided by the licensee. 10 (b) The biennial outdoor recreation lodge license fee is $2,500. 11 (c) The board may not grant an application for transfer of an outdoor 12 recreation lodge license to another location. 13 (d) In this section, "outdoor recreation lodge" means a licensed business that 14 provides overnight accommodations and meals, is primarily involved in offering 15 opportunities for persons to engage in outdoor recreation activities, and has a 16 minimum of two guest rooms. 17 (e) The holder of an outdoor recreation lodge license who sells alcoholic 18 beverages in violation of the authority granted under (a) of this section commits the 19 offense of unauthorized outdoor recreation lodge activity. 20 (f) Unauthorized outdoor recreation lodge activity is a violation. 21 Sec. 04.09.290. Golf course license. (a) A golf course license authorizes the 22 holder to sell brewed beverages and wine for consumption on the licensed premises. 23 (b) The biennial golf course license fee is $1,250. 24 (c) An application for a golf course license must include 25 (1) a drawing of the golf course with an annotated illustration and 26 description of the portions of the course that are intended to be licensed premises; and 27 (2) a sample food menu. 28 (d) The board may not approve an application for transfer of a golf course 29 license to another location. 30 (e) The holder of a golf course license shall make food similar to that listed in 31 the sample menu available during times when brewed beverages and wine are sold,

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

01 the holder to store, sell, or serve on the licensed premises brewed beverages for 02 consumption on and off the premises. 03 (b) The biennial brewery retail license fee is $1,250. 04 (c) The board may issue a brewery retail license only to the holder of a 05 brewery manufacturer license under AS 04.09.020. The brewery retail licensed 06 premises may be all or part of the brewery manufacturer licensed premises, or the 07 brewery retail licensed premises may be at a single different site that is adjacent to the 08 brewery manufacturer licensed premises. 09 (d) Each day, the holder of a brewery retail license may sell, to a person on the 10 licensed premises for consumption on the licensed premises, not more than 11 (1) 36 ounces of the holder's beer; or 12 (2) 18 ounces of the holder's sake. 13 (e) Except as provided under (g) of this section and AS 04.09.685, the holder 14 of a brewery retail license may not 15 (1) allow live music or performances, disc jockeys, karaoke, 16 televisions, pool tables, dart games, or organized games or tournaments on the 17 premises where the consumption occurs; 18 (2) provide seats at the counter or bar where the brewed beverages are 19 served; 20 (3) open the room where the consumption occurs before 9:00 a.m.; or 21 (4) serve brewed beverages after 10:00 p.m. 22 (f) Each day, the holder of a brewery retail license is authorized to sell, to a 23 person on the licensed premises for consumption off the licensed premises, not more 24 than 5.167 gallons of the holder's beer or sake. 25 (g) The holder of a brewery retail license may allow on the premises where the 26 consumption occurs 27 (1) activities, presentations, television or video displays, or other 28 displays that directly promote or educate customers about the brewery's products, 29 processes, or establishment; and 30 (2) other community organizations or businesses to provide 31 presentations, classes, or product displays or host fundraisers.

01 (h) The holder of a brewery retail license commits the offense of failure to 02 comply with the terms of a brewery retail license if the person stores, sells, or serves 03 brewed beverages in violation of (a) of this section or violates (d), (e), or (f) of this 04 section. 05 (i) Failure to comply with the terms of a brewery retail license is a violation. 06 Sec. 04.09.320. Winery retail license. (a) A winery retail license authorizes 07 the holder to store, sell, or serve on the licensed premises wine for consumption on 08 and off the premises. 09 (b) The biennial winery retail license fee is $1,000. 10 (c) The board may issue a winery retail license only to the holder of a winery 11 manufacturer license issued under AS 04.09.030. The winery retail licensed premises 12 may be all or part of the winery manufacturer licensed premises, or the winery retail 13 licensed premises may be at a single different site that is adjacent to the winery 14 manufacturer licensed premises. 15 (d) Each day, the holder of a winery retail license may sell, to a person on the 16 licensed premises for consumption on the licensed premises, a total volume that does 17 not exceed 18 (1) 18 ounces of the holder's wine, mead, or cider containing 8.5 19 percent or more alcohol by volume; 20 (2) 36 ounces of the holder's mead or cider containing less than 8.5 21 percent alcohol by volume; or 22 (3) the alcoholic equivalent of (1) or (2) of this subsection. 23 (e) Except as provided under (g) of this section and AS 04.09.685, the holder 24 of a winery retail license may not 25 (1) allow live music or performances, disc jockeys, karaoke, 26 televisions, pool tables, dart games, or organized games or tournaments on the 27 premises where the consumption occurs; 28 (2) provide seats at the counter or bar where the wine is served; 29 (3) open the room where the consumption occurs before 9:00 a.m.; or 30 (4) serve wine after 10:00 p.m. 31 (f) Each day, the holder of a winery retail license is authorized to sell, to a

01 person on the licensed premises for consumption off the licensed premises, not more 02 than 5.167 gallons of the holder's wine, mead, or cider. 03 (g) The holder of a winery retail license may allow on the premises where the 04 consumption occurs 05 (1) activities, presentations, television or video displays, or other 06 displays that directly promote or educate customers about the winery's products, 07 processes, or establishment; and 08 (2) other community organizations or businesses to provide 09 presentations, classes, or product displays or host fundraisers. 10 (h) The holder of a winery retail license commits the offense of failure to 11 comply with the terms of a winery retail license if the person stores, sells, or serves 12 wine in violation of (a) of this section or violates (d), (e), or (f) of this section. 13 (i) Failure to comply with the terms of a winery retail license is a violation. 14 Sec. 04.09.330. Distillery retail license. (a) A distillery retail license 15 authorizes the holder to store, sell, or serve on the licensed premises distilled spirits 16 for consumption on and off the premises. 17 (b) The biennial distillery retail license fee is $1,250. 18 (c) The board may issue a distillery retail license only to the holder of a 19 distillery manufacturer license under AS 04.09.040. The distillery retail licensed 20 premises may be all or part of the distillery manufacturer licensed premises, or the 21 distillery retail licensed premises may be at a single different site that is adjacent to the 22 distillery manufacturer licensed premises. 23 (d) The holder of a distillery retail license may sell not more than three ounces 24 of the holder's distilled spirits each day to a person on the licensed premises for 25 consumption on the licensed premises. The holder of a distillery retail license may 26 combine the holder's distilled spirits under this subsection with other ingredients that 27 are not alcoholic beverages, including mixers, liquids, and garnishes. 28 (e) Except as provided under (g) of this section and AS 04.09.685, the holder 29 of a distillery retail license may not 30 (1) allow live music or performances, disc jockeys, karaoke, 31 televisions, pool tables, dart games, or organized games or tournaments on the

01 premises where the consumption occurs; 02 (2) provide seats at the counter or bar where the distilled spirits are 03 served; 04 (3) open the room where the consumption occurs before 9:00 a.m.; or 05 (4) serve distilled spirits after 10:00 p.m. 06 (f) The holder of a distillery retail license is authorized to sell not more than 07 3.75 liters of the holder's distilled spirits each day to a person on the licensed premises 08 for consumption off the licensed premises. 09 (g) The holder of a distillery retail license may allow on the premises where 10 the consumption occurs 11 (1) activities, presentations, television or video displays, or other 12 displays that directly promote or educate customers about the distillery's products, 13 processes, or establishment; and 14 (2) other community organizations or businesses to provide 15 presentations, classes, or product displays or host fundraisers. 16 (h) The holder of a distillery retail license commits the offense of failure to 17 comply with the terms of a distillery retail license if the person stores, sells, or serves 18 distilled spirits in violation of (a) of this section or violates (d), (e), or (f) of this 19 section. 20 (i) Failure to comply with the terms of a distillery retail license is a violation. 21 Sec. 04.09.340. Beverage dispensary tourism license. (a) A beverage 22 dispensary tourism license authorizes the holder to sell or serve on the licensed 23 premises alcoholic beverages for consumption only on the licensed premises. 24 (b) The biennial beverage dispensary tourism license fee is $2,500. 25 (c) The board may 26 (1) issue a new beverage dispensary tourism license if it appears that 27 the issuance will encourage the tourist trade by promoting the construction or 28 improvement of 29 (A) a hotel, motel, resort, or similar business relating to the 30 tourist trade with a dining facility or having kitchen facilities in a majority of 31 its rental rooms and at least a minimum number of rental rooms required

01 according to the population of the incorporated city, unified municipality, or 02 population area established under AS 04.11.400(a) in which the facility will be 03 located, as follows: 04 (i) 10 rental rooms if the population is less than 1,501; 05 (ii) 20 rental rooms if the population is 1,501 - 2,500; 06 (iii) 25 rental rooms if the population is 2,501 - 5,000; 07 (iv) 30 rental rooms if the population is 5,001 - 15,000; 08 (v) 35 rental rooms if the population is 15,001 - 25,000; 09 (vi) 40 rental rooms if the population is 25,001 - 10 50,000; and 11 (vii) 50 rental rooms if the population is greater than 12 50,000; or 13 (B) an airport terminal; and 14 (2) approve the renewal or transfer of ownership of a beverage 15 dispensary tourism license initially issued under (1) of this subsection or initially 16 issued as a beverage dispensary license under AS 04.11.400, as that section read on 17 the date of the initial licensure, if the 18 (A) holder of the license operates a hotel, motel, resort, or 19 similar business relating to the tourist trade that 20 (i) has a dining facility on the licensed premises or 21 kitchen facilities in a majority of its rental rooms; and 22 (ii) maintains at least the minimum number of rental 23 rooms that the hotel, motel, resort, or similar business had at the time of 24 initial licensure or that were required at the time of initial licensure; or 25 (B) licensed premises are located inside an airport terminal. 26 (d) The holder of a beverage dispensary tourism license may not maintain on 27 the licensed premises more than one room in which there is regularly maintained a 28 fixed counter or service bar that has plumbing connections to permanent plumbing at 29 which alcoholic beverages are sold or served to members of the public for 30 consumption unless the license has a multiple fixed counter endorsement under 31 AS 04.09.420, a hotel or motel endorsement under AS 04.09.430, or a large resort

01 endorsement under AS 04.09.440. 02 (e) Except as provided under AS 04.09.610, 04.09.640, 04.09.670, and 03 AS 04.16.120(c), the holder of a beverage dispensary tourism license who sells or 04 serves alcoholic beverages off the licensed premises or permits consumption off the 05 premises of alcoholic beverages sold or served on the premises commits the offense of 06 unauthorized beverage dispensary tourism activity. 07 (f) Unauthorized beverage dispensary tourism activity is a violation. 08 Sec. 04.09.350. Seasonal restaurant or eating place tourism license. (a) A 09 seasonal restaurant or eating place tourism license authorizes a restaurant or eating 10 place to 11 (1) sell brewed beverages and wine for consumption only on the 12 licensed premises for a period not to exceed six months in each calendar year; and 13 (2) allow a person 14 (A) under 21 years of age access as provided in (f) of this 15 section to the licensed premises; and 16 (B) to enter or remain on the licensed premises to consume 17 food or nonalcoholic beverages as authorized under AS 04.16.010(c)(5). 18 (b) The biennial seasonal restaurant or eating place tourism license fee is 19 $1,250. 20 (c) The board may issue or renew a license under this section only if 21 (1) the board determines that 22 (A) the licensed premises is a bona fide restaurant as defined in 23 AS 04.21.080(b); 24 (B) there is supervision on the premises adequate to reasonably 25 ensure that a person under 21 years of age will not obtain alcoholic beverages; 26 and 27 (C) it is unlikely that persons under 21 years of age not 28 employed on the premises will enter and remain on the licensed premises for 29 purposes other than dining; and 30 (2) the sale and service of food and alcoholic beverages and any other 31 business conducted on the licensed premises of the restaurant or eating place is under

01 the sole control of the licensee. 02 (d) The board may issue a license under this section only in a municipality or 03 established village that 04 (1) has a population of 40,000 or less; and 05 (2) receives more than 4,000 visitors a year, as determined by the 06 board in regulation. 07 (e) The board may issue a license or approve an application for the transfer of 08 ownership of a license under this section if it appears that issuance or transfer will 09 encourage the tourism trade. 10 (f) The board may authorize the holder of a seasonal restaurant or eating place 11 tourism license 12 (1) to allow a person who is at least 16 years of age but under 21 years 13 of age to enter and remain on the licensed premises for dining only; 14 (2) to allow a person who is under 16 years of age to enter and remain 15 on the licensed premises for dining only if 16 (A) the person is accompanied by a person who is 21 years of 17 age or older; and 18 (B) the parent or guardian of the person consents to the person 19 being on the licensed premises; and 20 (3) subject to AS 04.16.049, to employ or permit the employment of a 21 person who is at least 16 years of age but under 21 years of age on the licensed 22 premises if the employer provides adequate supervision to ensure that the person does 23 not obtain alcoholic beverages. 24 (g) The holder of a seasonal restaurant or eating place tourism license shall 25 ensure that gross receipts from the sale of food for consumption on the licensed 26 premises are not less than the total of the gross receipts from the sale of alcoholic 27 beverages for consumption on the licensed premises in each calendar year. At the time 28 the holder submits an application for renewal of the license, the holder shall submit a 29 statement to the board certifying that the holder has met the requirement under this 30 subsection for the designated period of the license under AS 04.11.680. The board 31 may renew a seasonal restaurant or eating place tourism license only if the licensee

01 provides evidence satisfactory to the board that, during the designated period of the 02 license under AS 04.11.680, the gross receipts from the sale of food for consumption 03 on the licensed premises were not less than the total of the gross receipts from the sale 04 of alcoholic beverages for consumption on the licensed premises. 05 (h) The board shall adopt a regulation establishing a formula to limit the 06 number of seasonal restaurant or eating place tourism licenses. 07 (i) The holder of a seasonal restaurant or eating place tourism license may 08 provide entertainment on or adjacent to the licensed premises only between the hours 09 of 10:00 a.m. and 11:00 p.m. unless additional hours are approved by the director 10 upon the written request of the licensee for a specific occasion. The director may not 11 grant approval for additional hours of entertainment on or adjacent to the licensed 12 premises of an individual licensee more than three times in a calendar year. In this 13 subsection, "entertainment" includes dancing, karaoke, live performances, or similar 14 activities, but does not include recorded or broadcast performances without live 15 participation. 16 (j) Except as provided under AS 04.09.620, 04.09.640, and AS 04.16.120(c), 17 the holder of a seasonal restaurant or eating place tourism license commits the offense 18 of failure to comply with the terms of a seasonal restaurant or eating place tourism 19 license if the person sells brewed beverages or wine in violation of (a) of this section, 20 engages in activity not authorized by the board under (f) of this section, or fails to 21 comply with the requirements of (f), (g), or (i) of this section. 22 (k) Failure to comply with the terms of a seasonal restaurant or eating place 23 tourism license is a violation. 24 Sec. 04.09.360. Winery direct shipment license. (a) A winery direct shipment 25 license authorizes the holder of a winery retail license issued under AS 04.09.320, or 26 the holder of a winery license issued in another state, to sell the holder's wine in 27 response to an order for shipment to a person, for personal use only and not for resale, 28 who is located in the state. A winery direct shipment license may not be transferred to 29 another person or another location. 30 (b) The biennial fee for a winery direct shipment license is $200. 31 (c) An applicant for issuance or renewal of a winery direct shipment license

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

01 (4) label the shipping container as containing alcoholic beverages and 02 requiring a signature by a person who is at least 21 years of age upon delivery. 03 (g) The holder of a winery direct shipment license shall 04 (1) retain records of sales made under this license for at least two 05 years; and 06 (2) make records of sales available for inspection and audit by the 07 board and the Department of Revenue. 08 (h) The board shall compile a list that is available for public inspection of zip 09 codes that are located within a local option area and notify the holder of a winery 10 direct shipment license of any change to the list. 11 (i) The holder of a winery direct shipment license commits the offense of 12 failure to comply with the terms of a winery direct shipment license if the person fails 13 to comply with (e) - (g) of this section. 14 (j) Failure to comply with the terms of a winery direct shipment license is a 15 violation. 16 Sec. 04.09.370. Unlicensed retail sale. (a) A person commits the crime of 17 unlicensed retail sale if the person knowingly operates without the appropriate license 18 a retail operation that requires a license under AS 04.09.200 - 04.09.360. 19 (b) Unlicensed retail sale is a class A misdemeanor. 20 Article 5. Endorsements. 21 Sec. 04.09.400. Types of endorsements. (a) An endorsement expands the 22 boundaries of a licensed premises or the authorized activities of a licensed business. 23 (b) Only the board may issue an endorsement. The board may issue only the 24 endorsements authorized in AS 04.09.400 - 04.09.520. 25 (c) An endorsement is valid only in conjunction with a license. An 26 endorsement may be transferred to another person only if the license for which the 27 endorsement was issued is also transferred to that person. An endorsement expires if 28 the licensed premises are relocated, the license expires, or the license is revoked. 29 (d) Except as provided in (c) of this section, an endorsement is valid for the 30 duration of the license as designated in AS 04.11.680. The holder of the endorsement 31 shall renew the endorsement biennially.

01 (e) An application for an endorsement under AS 04.09.400 - 04.09.520 must 02 (1) be made in writing on a form prescribed by the board; and 03 (2) demonstrate that the holder of the license has authority over and 04 will exercise control over conduct of the business in all areas of the licensed premises, 05 including premises newly licensed by the endorsement. 06 Sec. 04.09.410. Manufacturer sampling endorsement. (a) A manufacturer 07 sampling endorsement authorizes the holder of a brewery manufacturer license, 08 winery manufacturer license, or distillery manufacturer license to offer for 09 consumption on the licensed premises at no charge a small sample of an alcoholic 10 beverage produced by the manufacturer. 11 (b) The biennial fee for a manufacturer sampling endorsement is $200. 12 (c) A person serving a sample of an alcoholic beverage under this section must 13 have a current alcohol server education card issued under AS 04.21.025(c). Only the 14 license holder or an agent or employee of the license holder may serve a sample. 15 (d) The holder of a manufacturer sampling endorsement may serve a total 16 volume of samples to a person on a licensed premises each day that does not exceed 17 (1) for the holder of a brewery manufacturer license, 18 (A) 12 ounces of beer; 19 (B) six ounces of sake; or 20 (C) the alcoholic equivalent of (A) or (B) of this paragraph; 21 (2) for the holder of a winery manufacturer license, 22 (A) six ounces of wine, mead, or cider containing 8.5 percent 23 or more alcohol by volume; 24 (B) 12 ounces of mead or cider containing less than 8.5 percent 25 alcohol by volume; or 26 (C) the alcoholic equivalent of (A) or (B) of this paragraph; 27 (3) for the holder of a distillery manufacturer license, 1.5 ounces of 28 distilled spirits; the holder of the distillery manufacturer license may combine the 29 holder's distilled spirits under this paragraph with other ingredients that are not 30 alcoholic beverages, including mixers, liquids, and garnishes. 31 (e) A person who offers a sample of an alcoholic beverage for consumption on

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

01 counter endorsement noncompliance. 02 (h) Unendorsed service at multiple fixed counters is a violation and is 03 punishable by a fine of $500. 04 (i) Multiple fixed counter endorsement noncompliance is a violation. 05 Sec. 04.09.430. Hotel or motel endorsement. (a) A hotel or motel 06 endorsement authorizes the holder of a beverage dispensary license or a beverage 07 dispensary tourism license that is a hotel, motel, resort, or similar business premises 08 that caters to the traveling public as a substantial part of its business to sell or serve 09 alcoholic beverages on the licensed premises, including in a dining room, banquet 10 room, and other public areas approved by the board, and in guest rooms. 11 (b) The biennial fee for a hotel or motel endorsement is $200. 12 (c) The holder of a beverage dispensary license or a beverage dispensary 13 tourism license that is a hotel, motel, resort, or similar business premises that caters to 14 the traveling public as a substantial part of its business shall apply for a multiple fixed 15 counter endorsement under AS 04.09.420 to sell or serve alcoholic beverages at a 16 secondary location located in a building different than the licensed premises for the 17 beverage dispensary license or a beverage dispensary tourism license if the different 18 building 19 (1) is located on the same property as, adjacent to, or attached to the 20 originally licensed premises; 21 (2) principally caters to guests of the hotel or motel; and 22 (3) principally encourages the tourism trade at the hotel or motel. 23 (d) The holder of a hotel or motel endorsement may stock alcoholic beverages 24 in guest rooms, for sale and consumption only in the guest room. Alcoholic beverages 25 stocked under this subsection must be stocked by an employee who is 21 years of age 26 or older, may not be supplied or resupplied during hours that the sale of alcoholic 27 beverages is prohibited as provided under AS 04.16.010(a) and (d), and must be stored 28 in a unit using a key or combination lock system within the guest room. A key lock 29 system must be designed to prevent the removal of the key unless the unit is locked. 30 Except for the licensee, or an agent or employee of the licensee, a key or combination 31 enabling a person to obtain alcoholic beverages stocked in a guest room may be

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

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

01 (1) under 21 years of age access as provided in (e) of this section to the 02 premises of a bona fide restaurant on the licensed premises; and 03 (2) to enter or remain on the licensed premises to consume food or 04 nonalcoholic beverages as authorized under AS 04.16.010(c)(5). 05 (b) The biennial fee for a restaurant endorsement is $200. 06 (c) An application for a restaurant endorsement must specify the establishment 07 or portion of the establishment that constitutes a bona fide restaurant. 08 (d) The board may issue an endorsement under this section only if the board 09 finds 10 (1) that the establishment or portion of the establishment for which the 11 endorsement is requested is a bona fide restaurant; 12 (2) there is supervision on the premises adequate to reasonably ensure 13 that a person under 21 years of age will not obtain alcoholic beverages; and 14 (3) that it is unlikely that persons under 21 years of age not employed 15 on the premises will enter and remain on the premises of the bona fide restaurant for 16 purposes other than dining. 17 (e) The board may authorize the holder of a license with a restaurant 18 endorsement 19 (1) to allow a person who is at least 16 years of age but under 21 years 20 of age to enter and remain on the licensed premises for dining only; 21 (2) to allow a person who is under 16 years of age to enter and remain 22 on the licensed premises for dining only if 23 (A) the person is accompanied by a person who is 21 years of 24 age or older; and 25 (B) the parent or guardian of the person consents to the person 26 being on the licensed premises; and 27 (3) subject to AS 04.16.049, to employ or permit the employment of a 28 person who is at least 16 years of age but under 21 years of age on the premises of the 29 bona fide restaurant if the employer provides adequate supervision to ensure that the 30 person does not obtain alcoholic beverages. 31 (f) The holder of a license who engages in activity under this section without

01 an endorsement under this section commits the offense of unendorsed restaurant 02 service. 03 (g) The holder of a restaurant endorsement who engages in activity not 04 authorized by the board under (e) of this section or fails to comply with the 05 requirements of (e) of this section commits the offense of restaurant endorsement 06 noncompliance. 07 (h) Unendorsed restaurant service is a violation and is punishable by a fine of 08 $500. 09 (i) Restaurant endorsement noncompliance is a violation. 10 Sec. 04.09.460. Package store shipping endorsement. (a) A package store 11 shipping endorsement authorizes the holder of a package store license to sell alcoholic 12 beverages to a person who makes an order to that licensee for shipment. 13 (b) The biennial fee for a package store shipping endorsement is $200. 14 (c) An endorsement holder may ship alcoholic beverages only to the purchaser 15 and may ship alcoholic beverages only in response to an order. The endorsement 16 holder may not, in response to an order, ship alcohol to a purchaser at an address other 17 than the address where the purchaser resides or, if the purchaser resides in a 18 municipality or established village that has adopted a local option under 19 AS 04.11.491(a)(1), (2), or (3) or (b)(1) or (2) for which a community delivery site has 20 been designated under AS 04.11.491(f), to an address other than that community 21 delivery site except as provided by AS 04.11.491(f)(1) and (2). 22 (d) An endorsement holder shall provide written or electronic information on 23 fetal alcohol syndrome and fetal alcohol effects resulting from a woman's 24 consumption of alcohol during pregnancy to the purchaser in response to an order. 25 (e) If a shipment is to an area that has restricted the sale of alcoholic beverages 26 under AS 04.11.491(a)(1), (2), or (3) or (b)(1) or (2), an endorsement holder may not 27 ship to a purchaser more than 10.5 liters of distilled spirits or 24 liters or more of wine, 28 or either a half-barrel keg of brewed beverages or 12 gallons or more of brewed 29 beverages in individual containers in a calendar month, or a lower amount of distilled 30 spirits, wine, or brewed beverages if the municipality or established village has 31 adopted the lower amount by local option under AS 04.11.491(g). Before shipping

01 alcohol to a purchaser in a restricted area, an endorsement holder shall consult the 02 database maintained by the board under AS 04.06.095 for any alcoholic beverage 03 shipments made to the purchaser during that calendar month by a package store. An 04 endorsement holder may not ship an amount of alcoholic beverages to a purchaser in a 05 restricted area that, when added to the amount already shipped, exceeds the amount 06 authorized by this subsection. An endorsement holder shall immediately enter into the 07 database the date and the amount of alcoholic beverages shipped to the purchaser. 08 (f) An endorsement holder may not divide or combine shipments of alcoholic 09 beverages so as to circumvent the limitation imposed under (e) of this section. 10 (g) In this section, "endorsement holder" means the holder of a package store 11 license with a package store shipping endorsement, and an agent or employee of the 12 holder of a package store license with a package store shipping endorsement. 13 (h) The holder of a package store license who ships alcoholic beverages 14 without an endorsement under this section commits the offense of unendorsed package 15 store shipping. 16 (i) The holder of a package store shipping endorsement who fails to comply 17 with the requirements of (c) - (f) of this section commits the offense of package store 18 shipping endorsement noncompliance. 19 (j) Unendorsed package store shipping is a violation and is punishable by a 20 fine of $500. 21 (k) Package store shipping endorsement noncompliance is a violation. 22 Sec. 04.09.470. Package store delivery endorsement. (a) A package store 23 delivery endorsement authorizes the holder of a package store license to deliver 24 alcoholic beverages to the location of a social event as set out in this section. For 25 purposes of this subsection, the board shall define by regulation the term "social 26 event." 27 (b) The biennial fee for a package store delivery endorsement is $200. 28 (c) The holder of a package store delivery endorsement may deliver alcoholic 29 beverages only in response to an order. The board shall adopt regulations specifying 30 the occasions for which delivery of alcoholic beverages is allowed and the manner of 31 delivery by the licensee.

01 (d) The holder of a package store delivery endorsement may deliver alcoholic 02 beverages only to a responsible adult at the delivery location specified on the order. 03 The responsible adult shall provide identification and acceptable proof of age under 04 AS 04.21.050 and acknowledge in writing receipt of the alcoholic beverages. 05 (e) The holder of a package store license who delivers alcoholic beverages 06 without an endorsement under this section commits the offense of unendorsed package 07 store delivery. 08 (f) The holder of a package store delivery endorsement who fails to comply 09 with the requirements of (c) and (d) of this section commits the offense of package 10 store delivery endorsement noncompliance. 11 (g) Unendorsed package store delivery is a violation and is punishable by a 12 fine of $500. 13 (h) Package store delivery endorsement noncompliance is a violation. 14 Sec. 04.09.480. Package store repackaging endorsement. (a) A package 15 store repackaging endorsement authorizes the holder of a package store license to 16 subdivide and sell alcoholic beverages from original packages with federally 17 compliant labels to smaller containers with the standard federal government warnings 18 and the product name. 19 (b) The biennial fee for a package store repackaging endorsement is $200. 20 (c) A package store licensee with a package store repackaging endorsement 21 may 22 (1) subdivide alcoholic beverages 23 (A) for sale on the licensed premises by opening the original 24 package for the purpose of subdividing the contents into smaller packages; or 25 (B) in response to a purchase request from a person who is on 26 the licensed premises or purchase order submitted in accordance with 27 AS 04.09.470(c); 28 (2) permit an agent or employee to subdivide alcoholic beverages, but 29 may not permit a customer or another person who is not an agent or employee of the 30 licensee to subdivide alcoholic beverages. 31 (d) The holder of a package store license who repackages alcoholic beverages

01 without an endorsement under this section commits the offense of unendorsed package 02 store repackaging. 03 (e) The holder of a package store repackaging endorsement who fails to 04 comply with the requirements of this section commits the offense of package store 05 repackaging endorsement noncompliance. 06 (f) Unendorsed package store repackaging is a violation and is punishable by a 07 fine of $500. 08 (g) Package store repackaging endorsement noncompliance is a violation. 09 Sec. 04.09.490. Package store sampling endorsement. (a) A package store 10 sampling endorsement authorizes the holder of a package store license to offer for 11 consumption on the licensed premises at no charge a small sample of an alcoholic 12 beverage from its inventory during the package store's stated hours of business, but not 13 between the hours of midnight and 8:00 a.m. 14 (b) The biennial fee for a package store sampling endorsement is $200. 15 (c) Only the license holder or an agent or employee of the license holder may 16 serve a sample. 17 (d) The holder of a package store sampling endorsement may serve a total 18 volume of samples to a person on a licensed premises each day that does not exceed 19 (1) 12 ounces of beer or mead, or cider, if the mead or cider contains 20 less than 8.5 percent alcohol by volume; 21 (2) six ounces of wine, sake, or mead or cider, if the mead or cider 22 contains 8.5 percent or more alcohol by volume; 23 (3) 1.5 ounces of distilled spirits; or 24 (4) the alcoholic equivalent of (1), (2), or (3) of this subsection. 25 (e) The holder of a package store sampling endorsement may not publicly 26 advertise, including through newsprint, radio, or television, sampling activities 27 conducted under the endorsement. However, the holder of a package store sampling 28 endorsement may notify existing customers of sampling activities, including by 29 electronic means. 30 (f) A person who offers a sample of an alcoholic beverage for consumption on 31 the licensed premises of a package store without an endorsement under this section

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

01 when alcoholic beverages are being served in the concourse or lane areas commits the 02 offense of bowling alley endorsement noncompliance. 03 (h) Unendorsed bowling alley service is a violation and is punishable by a fine 04 of $500. 05 (i) Bowling alley endorsement noncompliance is a violation. 06 Sec. 04.09.510. Golf course endorsement. (a) A golf course endorsement 07 authorizes the owner of a golf course who has obtained a beverage dispensary license 08 or a beverage dispensary tourism license to sell or serve alcoholic beverages on the 09 golf course, driving range, club house and other buildings located on the course, and a 10 vending cart carrying beverages or food to, from, or on the course, excluding the 11 parking lot. 12 (b) The biennial fee for a golf course endorsement is $200. 13 (c) An application for a golf course endorsement must include a drawing of 14 the golf course with an annotated illustration and a description of the portions of the 15 course that are licensed premises and that are intended to be covered by the 16 endorsement. 17 (d) The holder of a beverage dispensary license or beverage dispensary 18 tourism license who sells or serves alcoholic beverages on a golf course without an 19 endorsement under this section commits the offense of unendorsed golf course service. 20 (e) The holder of a golf course endorsement who fails to comply with (a) of 21 this section commits the offense of golf course endorsement noncompliance. 22 (f) Unendorsed golf course service is a violation and is punishable by a fine of 23 $500. 24 (g) Golf course endorsement noncompliance is a violation. 25 Sec. 04.09.520. Brewery repackaging endorsement. (a) A brewery 26 repackaging endorsement authorizes the holder of a brewery manufacturer license who 27 held a license to operate a brewpub under former AS 04.11.135 and was operating a 28 brewpub on the day before the effective date of this section and who also holds, 29 wholly or in part, a beverage dispensary license, beverage dispensary tourism license, 30 restaurant or eating place license, or a seasonal restaurant or eating place tourism 31 license to offer the holder's brewed beverages for sale for consumption off the licensed

01 premises and to subdivide and sell the holder's brewed beverages from original 02 packages with federally compliant labels to smaller containers with the standard 03 federal government warnings and the product name. 04 (b) The biennial fee for a brewery repackaging endorsement is $200. 05 (c) A brewery manufacturer licensee with a brewery repackaging endorsement 06 (1) is authorized to sell, each day to a person on the licensed premises 07 for consumption off the licensed premises, not more than 5.167 gallons of the holder's 08 beer or sake; 09 (2) may permit an agent or employee to subdivide the holder's brewed 10 beverages, but may not permit a customer or another person who is not an agent or 11 employee of the licensee to subdivide the holder's brewed beverages. 12 (d) In this section, "licensed premises" means a premises licensed under a 13 beverage dispensary license, beverage dispensary tourism license, restaurant or eating 14 place license, or a seasonal restaurant or eating place tourism license that is controlled 15 by a brewery manufacturer licensee. 16 (e) The holder of a brewery manufacturer license who repackages brewed 17 beverages without an endorsement under this section or a brewery retail license under 18 AS 04.09.310 commits the offense of unendorsed brewery repackaging. 19 (f) The holder of a brewery repackaging endorsement who fails to comply 20 with the requirements of this section commits the offense of brewery repackaging 21 endorsement noncompliance. 22 (g) Unendorsed brewery repackaging is a violation, punishable by a fine of 23 $500. 24 (h) Brewery repackaging endorsement noncompliance is a violation. 25 Article 6. Permits. 26 Sec. 04.09.600. Types of permits. (a) A permit allows catering and serving 27 activities for a specific period on a single specified premises and allows an eligible 28 nonprofit organization to host a fundraising or not-for-profit event. 29 (b) The director may issue only the permits authorized in AS 04.09.600 - 30 04.09.690. An application for a permit must be received by the director not less than 31 three business days before the first day of the event. Except for a conditional

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

01 or beverage dispensary tourism license would not otherwise be required. The permit 02 may be issued only for designated premises for a specific occasion and for a limited 03 period. 04 Sec. 04.09.620. Restaurant caterer's dining permit. (a) A restaurant caterer's 05 dining permit authorizes the holder of a restaurant or eating place license or a seasonal 06 restaurant or eating place tourism license to sell brewed beverages and wine before 07 and during the service of food provided by the licensee at a single dining event held 08 off the holder's licensed premises. 09 (b) The director may issue a restaurant caterer's dining permit only for 10 designated premises, for a specific occasion, and for a limited period. 11 (c) The licensee shall provide food in conjunction with the service of brewed 12 beverages and wine under a restaurant caterer's dining permit. The licensee shall 13 comply with the requirements for gross receipts from food sales for a restaurant or 14 eating place license under AS 04.09.210(e) or a seasonal restaurant or eating place 15 tourism license under AS 04.09.350(g). 16 Sec. 04.09.630. Club caterer's permit. (a) A club caterer's permit authorizes 17 the holder of a club license to sell or dispense alcoholic beverages at an event held off 18 the club's licensed premises. 19 (b) The application for a club caterer's permit filed under AS 04.11.260 must 20 be signed by two officers of the organization. 21 (c) A restriction or prohibition under AS 04.09.220 regarding a club member 22 or a guest of a club member applies at the premises covered by the permit. 23 (d) The director may not issue more than three club caterer's permits to the 24 holder of a club license in a calendar year. 25 Sec. 04.09.640. Art exhibit event permit. (a) An art exhibit event permit 26 authorizes the holder of a beverage dispensary license, a beverage dispensary tourism 27 license, a restaurant or eating place license, or a seasonal restaurant or eating place 28 tourism license to sell and serve brewed beverages and wine for consumption at a 29 specific art exhibit event. 30 (b) The director may issue an art exhibit event permit only for a specific art 31 exhibit event at premises designated in the application for a limited period specified in

01 the application. 02 (c) The director may not grant more than 12 art exhibit event permits to a 03 licensee in a calendar year. 04 (d) An art exhibit event permit may not be exercised during an event that is 05 expected to attract attendees under 21 years of age. 06 (e) Food must be provided in conjunction with the service of brewed 07 beverages and wine under an art exhibit event permit. 08 Sec. 04.09.645. Music festival permit. (a) A music festival permit authorizes 09 the holder of a restaurant or eating place license to sell or dispense beer and wine for 10 consumption at a festival with multiple live music performances held off the holder's 11 licensed premises. 12 (b) The board may issue a music festival permit to the holder of a restaurant or 13 eating place license only if the licensed premises of the restaurant or eating place is 14 located in the unorganized borough. 15 (c) The board may issue a music festival permit only for 16 (1) a designated premises and for a limited period, not to exceed four 17 calendar days; 18 (2) a music festival that has existed at the same location for a period of 19 at least 10 years before the application for the permit is filed; and 20 (3) a music festival that is located in the unorganized borough. 21 (d) The board may not issue more than one music festival permit to the holder 22 of a restaurant or eating place license in a calendar year. 23 Sec. 04.09.650. Nonprofit organization event permit. (a) A nonprofit 24 organization event permit authorizes the holder to sell or dispense brewed beverages 25 or wine for consumption at an event organized by the nonprofit organization. 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 a nonprofit 29 organization event permit. 30 (c) The application for a nonprofit organization event 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 from 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 10 nonprofit organization event 08 permits to a nonprofit organization, including an auxiliary of the organization, in a 09 calendar year. A nonprofit organization event permit may be issued only for 10 designated premises for a specific occasion and for a limited period as specified in the 11 application. 12 (e) The nonprofit organization shall ensure that all profits derived from the 13 sale of brewed beverages or wine under a nonprofit organization event permit are paid 14 to the organization that holds the permit and not to an individual. 15 Sec. 04.09.660. Alcoholic beverage auction permit. (a) An alcoholic 16 beverage auction permit authorizes the holder to sell alcoholic beverages by outcry or 17 silent auction. An alcoholic beverage auction permit is sufficient to authorize a 18 nonprofit organization under (b) of this section to sell alcoholic beverages by outcry or 19 silent auction, and no other permit or license is required. An alcoholic beverage 20 auction permit may be operated on the licensed premises of a beverage dispensary 21 license, beverage dispensary tourism license, club license, restaurant or eating place 22 license, or seasonal restaurant or eating place license. 23 (b) Only a nonprofit organization, such as a fraternal, civic, professional, or 24 patriotic organization, that is incorporated under AS 10.20 and has been active for a 25 period of at least two years before filing an application is eligible for an alcoholic 26 beverage auction permit. 27 (c) The application for an alcoholic beverage auction permit filed under 28 AS 04.11.260 must be signed by two officers of the organization. The nonprofit 29 organization shall submit, together with the application, 30 (1) either a signed copy of a resolution adopted by the board of 31 directors or a copy of the minutes of a board meeting of the nonprofit organization

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

01 (2) ends later than 9:00 p.m. 02 (f) Food must be provided in conjunction with the service of alcoholic 03 beverages under a package store tasting event permit. 04 Sec. 04.09.680. Inventory resale permit. (a) An inventory resale permit 05 authorizes the holder to sell the remaining inventory of alcoholic beverages of a 06 business when the owner of the business no longer has a valid license under this title. 07 (b) The fee for an inventory resale permit is $100. 08 (c) The holder of an inventory resale permit may sell the remaining alcoholic 09 beverage inventory only to the holder of a valid license under this chapter. 10 (d) The director may issue an inventory resale permit for a period ending 90 11 days after the date of expiration or forfeiture of the license. The director may not issue 12 a permit if the license was suspended or revoked. 13 Sec. 04.09.685. Live music or entertainment permit. (a) A live music or 14 entertainment permit authorizes the holder of a brewery retail license, winery retail 15 license, or distillery retail license to allow live music or other entertainment on the 16 licensed premises where consumption occurs. 17 (b) The director may not issue more than four live music or entertainment 18 permits to a licensee in a calendar year. The director may issue a live music or 19 entertainment permit only for designated premises for a specific occasion and for a 20 limited period during a single day between the hours of 9:00 a.m. and 10:00 p.m., as 21 specified in the application. 22 Sec. 04.09.690. Conditional contractor's permit. (a) A conditional 23 contractor's permit authorizes the holder to sell brewed beverages or wine for 24 consumption only on designated premises for the designated period of the permit 25 under AS 04.11.680 at construction sites that are located outside a city and inside the 26 boundaries of a military or naval reservation. 27 (b) The biennial conditional contractor's permit fee is $1,250. 28 (c) An applicant for a conditional contractor's permit must obtain and file with 29 the board written permission from the commanding officer of the military or naval 30 reservation and the prime contractor of the remotely situated project for the conduct of 31 the activities authorized by the permit. A conditional contractor's permit may be

01 renewed biennially upon reapplication for a permit and may be revoked or suspended 02 at the discretion of the commanding officer or the prime contractor. 03 (d) A conditional contractor's permit may not be transferred and is not valid 04 after the completion of the holder's contract or the closing of the military or naval 05 reservation. 06 Sec. 04.09.700. Failure to comply with a permit requirement. (a) A person 07 who engages in activity that requires a permit under AS 04.09.600 - 04.09.690 without 08 having a permit and a person who violates the terms of a permit issued under 09 AS 04.09.600 - 04.09.690 commits the offense of failure to comply with a permit 10 requirement. 11 (b) Except as provided in (c) of this section, failure to comply with a permit 12 requirement is a violation. 13 (c) Failure to comply with a permit requirement of an inventory resale permit 14 under AS 04.09.680 or a conditional contractor's permit under AS 04.09.690 is a 15 violation punishable by a fine of $500. 16 Article 7. Common Carrier Approval. 17 Sec. 04.09.750. Common carrier approval. (a) A common carrier may not 18 transport or deliver alcoholic beverages to a person in the state unless the board has 19 approved the common carrier under (b) of this section. 20 (b) A common carrier may apply to the board, on a form prescribed by the 21 board, for approval to transport and deliver alcoholic beverages to persons in the state. 22 The board shall approve an application if the common carrier certifies that it will meet 23 the requirements under (c) and (d) of this section. 24 (c) A common carrier delivering alcoholic beverages to a person in the state 25 shall ensure that the package containing alcoholic beverages is delivered directly to a 26 person who 27 (1) presents identification and acceptable proof of age under 28 AS 04.21.050 showing that the person is 21 years of age or older; and 29 (2) provides a signature acknowledging that the person received the 30 package. 31 (d) A common carrier approved by the board under (b) of this section shall

01 make records of shipments of alcoholic beverages to persons in the state available for 02 inspection and audit by the board. The board may require periodic reporting of 03 approved common carriers on a form prescribed by the board. 04 (e) The board shall maintain, periodically review, and make available for 05 public inspection a list of approved common carriers for transport and delivery of 06 alcoholic beverages to persons in the state. 07 (f) The board may remove a previously approved common carrier from the list 08 if the common carrier transports or delivers alcoholic beverages in violation of (c) or 09 (d) of this section. 10 (g) In this section, 11 (1) "common carrier" means a motor vehicle, watercraft, aircraft, or 12 railroad car available for public hire to transport freight or passengers; 13 (2) "transport" has the meaning given in AS 04.11.499. 14 (h) A common carrier that has not been approved by the board to transport and 15 deliver alcoholic beverages and that transports or delivers alcoholic beverages into or 16 within the state commits the offense of unapproved common carrier transport or 17 delivery of alcoholic beverages. 18 (i) An approved common carrier that violates a provision under (c) or (d) of 19 this section commits the offense of common carrier noncompliance for transport or 20 delivery of alcoholic beverages. 21 (j) Unapproved common carrier transport or delivery of alcoholic beverages is 22 a violation and is punishable by a fine of $500. 23 (k) Common carrier noncompliance for transport or delivery of alcoholic 24 beverages is a violation. 25 * Sec. 11. AS 04.11.010(a) is amended to read: 26 (a) Except as provided in AS 04.11.020, a person may not knowingly 27 (1) [MANUFACTURE, SELL, OFFER FOR SALE,] possess for 28 [SALE OR] barter, traffic in, or barter an alcoholic beverage unless under license or 29 permit issued under this title; or 30 (2) manufacture an alcoholic beverage, sell an alcoholic beverage, 31 offer an alcoholic beverage for sale, or possess an alcoholic beverage for sale in an

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

01 * Sec. 14. AS 04.11.015 is amended to read: 02 Sec. 04.11.015. Purchase from nonlicensee prohibited. (a) A person may not 03 purchase or barter for alcoholic beverages from a person who is not a licensee, 04 permittee, or an agent or employee of a licensee or permittee. 05 (b) A person who violates (a) of this section is guilty of a violation. 06 * Sec. 15. AS 04.11.030(b) is amended to read: 07 (b) If an application for the transfer of ownership of a license from a deceased 08 licensee is not made within 180 [90] days of the death of the licensee or within an 09 additional 90 days if an application for transfer of ownership made by the executor is 10 denied, or no petition is made to the board for an extension of time under (c) of this 11 section within the time, the license is forfeited. 12 * Sec. 16. AS 04.11.040 is amended by adding new subsections to read: 13 (d) A person who transfers a license or permit or a controlling interest in a 14 license or permit in violation of this section commits the offense of unauthorized 15 transfer of an alcoholic beverage license or permit. 16 (e) Unauthorized transfer of an alcoholic beverage license or permit is a 17 violation. 18 * Sec. 17. AS 04.11.045 is amended by adding new subsections to read: 19 (c) A limited liability organization that fails to report as required under (a) of 20 this section commits the offense of failure to report a change in member interest or 21 manager. 22 (d) Failure to report a change in member interest or manager is a violation. 23 * Sec. 18. AS 04.11.050 is amended by adding new subsections to read: 24 (d) A corporation that fails to report as required under (a) of this section, other 25 than a corporation described in (c) of this section, commits the offense of failure to 26 report a stock transfer or change of officers or board members. 27 (e) Failure to report a stock transfer or change of officers or board members is 28 a violation. 29 * Sec. 19. AS 04.11.055 is amended by adding new subsections to read: 30 (c) A partnership that fails to report as required under (a) of this section 31 commits the offense of failure to report a transfer of partnership interest or change of

01 general partner. 02 (d) Failure to report a transfer of partnership interest or change of general 03 partner is a violation. 04 * Sec. 20. AS 04.11.060 is amended to read: 05 Sec. 04.11.060. Nonresident distiller, brewer, winery, or wholesaler. A 06 distiller, brewer, winery, or wholesaler whose plant or principal place of business is 07 outside the state may not sell products directly to licensees in the state without 08 (1) obtaining a general wholesale license under AS 04.09.100 09 [AS 04.11.160(a)] for each wholesale distributing point in the state; 10 (2) appointing an agent upon whom process can be served; and 11 (3) obtaining other applicable licenses under the provisions of this title. 12 * Sec. 21. AS 04.11.060 is amended by adding a new subsection to read: 13 (b) A person who violates (a) of this section is guilty of a class A 14 misdemeanor. 15 * Sec. 22. AS 04.11.260 is amended to read: 16 Sec. 04.11.260. Application for new license, endorsement, or permit. (a) An 17 applicant for a new license, endorsement, or permit shall file with the director a 18 written application, signed and sworn to by the applicant, giving the applicant's name, 19 mailing address, telephone number, and electronic mail address. If the applicant is 20 a corporation, the application shall be executed by an [THE] authorized officer 21 [OFFICERS] of the corporation. If the applicant is a partnership, including a limited 22 partnership, the application shall be executed by an authorized general partner. The 23 application must include 24 (1) the type of license, endorsement, or permit desired; 25 (2) a description of the premises for which the license, endorsement, 26 or permit is desired, giving the address by street and number, or other information, so 27 that the location of the premises can be definitely determined; 28 (3) an annotated illustration of the premises designating the areas 29 for manufacture, storage, service, and consumption of alcoholic beverages and, 30 for a license application, the area for warehousing of the alcoholic beverages; 31 (4) the license, endorsement, or permit fee, and, for a multiple fixed

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

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

01 * Sec. 25. AS 04.11.270 is amended by adding a new subsection to read: 02 (c) This section does not apply to a winery direct shipment license issued 03 under AS 04.09.360. 04 * Sec. 26. AS 04.11.280 is amended to read: 05 Sec. 04.11.280. Application for transfer of a license to another person. (a) 06 An application for transfer of a license or a license with one or more endorsements 07 to another person must contain the same information about the transferee as is required 08 of an applicant for a new license or endorsement under AS 04.11.260 and must 09 include other information required by the board. 10 (b) An application for the transfer of a license or a license with one or more 11 endorsements to another person must be accompanied by a statement, under oath, 12 executed by the transferor, listing all debts of the business and all taxes due by the 13 business. The board shall promptly inform each listed creditor of the application and 14 the amount shown as owed to that creditor. 15 * Sec. 27. AS 04.11.280 is amended by adding new subsections to read: 16 (c) A license is automatically transferred as requested in an application for 17 transfer of the license to another person if 18 (1) the board does not approve or deny the completed application 19 within 90 days after receiving the application; 20 (2) the application is for transfer of a 21 (A) restaurant or eating place license under AS 04.09.210; 22 (B) seasonal restaurant or eating place tourism license under 23 AS 04.09.350; 24 (C) restaurant or eating place license under AS 04.09.210 with 25 one or more endorsements; or 26 (D) seasonal restaurant or eating place tourism license under 27 AS 04.09.350 with one or more endorsements; and 28 (3) the applicant for transfer of a license has not previously had a 29 license or permit suspended or revoked under AS 04.11.370. 30 (d) The board may suspend or revoke a license that was automatically 31 transferred to another person under (c) of this section if, after receiving criminal

01 justice information and records obtained under AS 04.11.295, the board determines 02 that the licensee does not meet the qualifications for transfer of a license to another 03 person under this title. 04 * Sec. 28. 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. 29. 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. 30. 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. 31. 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. 32. 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. 33. 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. 34. AS 04.11.330(a), as amended by sec. 33 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. 35. 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. 36. 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 activity or event [RECREATIONAL SITE] license issued under 30 AS 04.09.270 [AS 04.11.210] may be renewed if the license was exercised at least 31 once during each of the two preceding calendar years.

01 * Sec. 37. 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. 38. 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. 39. AS 04.11.340, as amended by sec. 38 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. 40. 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. 41. AS 04.11.360, as amended by sec. 40 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. 42. 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 04 (A) restaurant or eating place license under AS 04.09.210 05 [AS 04.11.100]; or 06 (B) seasonal restaurant or eating place tourism license 07 under AS 04.09.350; or 08 (2) the premises are covered by a restaurant endorsement 09 [DESIGNATED BY THE BOARD AS A RESTAURANT] under AS 04.09.450 10 [AS 04.16.049]. 11 * Sec. 43. AS 04.11.370(a) is amended to read: 12 (a) A license, endorsement, or permit shall be suspended or revoked if the 13 board finds 14 (1) misrepresentation of a material fact on an application made under 15 this title or a regulation adopted under this title; 16 (2) continuation of the manufacture, sale, or service of alcoholic 17 beverages by the licensee or permittee would be contrary to the best interests of the 18 public; 19 (3) failure on the part of the licensee to correct a defect that constitutes 20 a violation of this title, a condition or restriction imposed by the board, a regulation 21 adopted under this title, or other laws after receipt of notice issued by the board or its 22 agent; 23 (4) conviction of a licensee of a violation of this title, a regulation 24 adopted under this title, or an ordinance adopted under AS 04.21.010; 25 (5) conviction of an agent or employee of a licensee of a violation of 26 this title, a regulation adopted under this title, or an ordinance adopted under 27 AS 04.21.010, if the licensee is found by the board to have either knowingly allowed 28 the violation or to have recklessly or with criminal negligence failed to act in 29 accordance with the duty prescribed under AS 04.21.030 with the result that the agent 30 or employee violates a law, regulation, or ordinance; 31 (6) failure of the licensee to comply with the public health, fire, or

01 safety laws and regulations in the state; 02 (7) use of the licensed premises as a resort for illegal possessors or 03 users of narcotics, prostitutes, or sex traffickers; in addition to any other legally 04 competent evidence, the character of the premises may be proved by the general 05 reputation of the premises in the community as a resort for illegal possessors or users 06 of narcotics, prostitutes, or sex traffickers; 07 (8) occurrence of illegal gambling within the limits of the licensed 08 premises; 09 (9) the licensee permitted a public offense involving moral turpitude to 10 occur on the licensed premises; 11 (10) violation by a licensee of this title, a condition or restriction 12 imposed by the board, a regulation adopted under this title, or an ordinance adopted 13 under AS 04.21.010; or 14 (11) violation by an agent or employee of a licensee of a provision of 15 this title, a condition or restriction imposed by the board, a regulation adopted under 16 this title, or an ordinance adopted under AS 04.21.010, if the licensee is found by the 17 board to have either knowingly allowed the violation or to have recklessly or with 18 criminal negligence failed to act in accordance with the duty prescribed under 19 AS 04.21.030 with the result that the agent or employee violates the law, condition or 20 restriction, regulation, or ordinance. 21 * Sec. 44. AS 04.11.395 is amended to read: 22 Sec. 04.11.395. Conditions [BOARD IMPOSED CONDITIONS] or 23 restrictions imposed on a license, endorsement, or permit. The board may, in the 24 best interests of the public, impose conditions or restrictions on a license, 25 endorsement, or permit issued under this chapter. 26 * Sec. 45. AS 04.11.395 is amended by adding a new subsection to read: 27 (b) Except for a conditional contractor's permit issued under AS 04.09.690, 28 the board may delegate to the director the authority to impose, in the best interests of 29 the public, conditions or restrictions on a permit issued under this chapter. 30 * Sec. 46. AS 04.11.400(a) is amended to read: 31 (a) Except as provided in (d), (f), and (h) - (k) [(d) - (k)] of this section and

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

01 * Sec. 47. AS 04.11.400(a), as amended by sec. 46 of this Act, is amended to read: 02 (a) Except as provided in (f), (i), and (k) [(d), (f), and (h) - (k)] of this section 03 and AS 04.11.405, a new license may not be issued and the board may prohibit 04 relocation of an existing license 05 (1) outside an established village, incorporated city, unified 06 municipality, or organized borough if, after the issuance or relocation, in a radius of 07 five miles of the licensed premises, excluding the populations of established 08 villages, incorporated cities, unified municipalities, and organized boroughs that 09 are wholly or partly included within the radius, there would be 10 (A) more than one restaurant or eating place license for each 11 1,500 population or fraction of that population; [, OR] 12 (B) more than one brewery retail, one winery retail, and 13 one distillery retail license for each 12,000 population or fraction of that 14 population; or 15 (C) more than one license of each other type, except a type 16 listed in (i) of this section [INCLUDING LICENSES THAT HAVE BEEN 17 ISSUED UNDER (d) OF THIS SECTION], for each 3,000 population or 18 fraction of that population [, IN A RADIUS OF FIVE MILES OF THE 19 LICENSED PREMISES, EXCLUDING THE POPULATIONS OF 20 ESTABLISHED VILLAGES, INCORPORATED CITIES, UNIFIED 21 MUNICIPALITIES, AND ORGANIZED BOROUGHS THAT ARE 22 WHOLLY OR PARTLY INCLUDED WITHIN THE RADIUS]; 23 (2) inside an established village, incorporated city, or unified 24 municipality if, after the issuance or relocation, there would be inside the established 25 village, incorporated city, or unified municipality 26 (A) more than one restaurant or eating place license for each 27 1,500 population or fraction of that population; [OR] 28 (B) more than one brewery retail, one winery retail, and 29 one distillery retail license for each 12,000 population or fraction of that 30 population; or 31 (C) more than one license of each other type, except a type

01 listed in (i) of this section [INCLUDING LICENSES THAT HAVE BEEN 02 ISSUED UNDER (d) OF THIS SECTION], for each 3,000 population or 03 fraction of that population; 04 (3) inside an organized borough but outside an established village or 05 incorporated city located within the borough if, after the issuance or relocation, there 06 would be inside the borough, but outside the established villages and incorporated 07 cities located within the borough, excluding the population of those established 08 villages that have adopted a local option under AS 04.11.491(b)(1) or (3), and 09 excluding the population of incorporated cities located within the organized 10 borough; 11 (A) more than one restaurant or eating place license for each 12 1,500 population or fraction of that population; [OR] 13 (B) more than one brewery retail, one winery retail, and 14 one distillery retail license for each 12,000 population or fraction of that 15 population; or 16 (C) more than one license of each other type, except a type 17 listed in (i) of this section [INCLUDING LICENSES THAT HAVE BEEN 18 ISSUED UNDER (d) OF THIS SECTION], for each 3,000 population or 19 fraction of that population [EXCLUDING THE POPULATION OF THOSE 20 ESTABLISHED VILLAGES THAT HAVE ADOPTED A LOCAL OPTION 21 UNDER AS 04.11.491(b)(1), (3), OR (4), AND EXCLUDING THE 22 POPULATION OF INCORPORATED CITIES LOCATED WITHIN THE 23 ORGANIZED BOROUGH]. 24 * Sec. 48. AS 04.11.400(i) is repealed and reenacted to read: 25 (i) This section does not apply to a 26 (1) brewery manufacturer license issued under AS 04.09.020; 27 (2) winery manufacturer license issued under AS 04.09.030; 28 (3) distillery manufacturer license issued under AS 04.09.040; 29 (4) general wholesale license issued under AS 04.09.100; 30 (5) limited wholesale brewed beverage and wine license under 31 AS 04.09.110;

01 (6) outdoor recreation lodge license issued under AS 04.09.280; 02 (7) destination resort license issued under AS 04.09.300; 03 (8) beverage dispensary tourism license issued under AS 04.09.340; 04 (9) seasonal restaurant or eating place tourism license issued under 05 AS 04.09.350; 06 (10) winery direct shipment license issued under AS 04.09.360; 07 (11) conditional contractor's permit issued under AS 04.09.690. 08 * Sec. 49. AS 04.11.400(k) is amended to read: 09 (k) The board may allow the relocation of an existing beverage dispensary 10 license under AS 04.09.200 or former AS 04.11.090 to a restaurant, eating place, or 11 hotel, motel, resort, or similar business that contains a restaurant or eating place, or of 12 an existing package store license under AS 04.09.230 or former AS 04.11.150, in a 13 borough with a population of 50,000 [60,000] or more [IF THE GOVERNING BODY 14 OF THE BOROUGH APPROVES THE RELOCATION. HOWEVER, IF THE 15 RELOCATION OF THE LICENSE IS] into or within an incorporated city in the 16 borough. The [, THE] board may not approve the relocation unless, at the time of 17 application, the existing number of issued licenses of the type under consideration 18 for relocation located within the borough exceeds the maximum allowed under 19 (a) of this section, and the governing bodies of both the borough and the incorporated 20 city approve the relocation. The board may allow not more than three relocations into 21 each city [IN A BOROUGH] under this subsection each decade. In this subsection, 22 "decade" means each 10-year period beginning April 1 in a year ending in zero. 23 * Sec. 50. AS 04.11 is amended by adding a new section to read: 24 Sec. 04.11.405. Petition for additional restaurant or eating place licenses 25 for certain local governing bodies. (a) A first class city, a home rule city, or a unified 26 municipality may submit a resolution to the board, adopted by its legislative body, 27 petitioning the board for the issuance of additional restaurant or eating place licenses 28 under AS 04.11.100 that exceed the limits under AS 04.11.400(a) in accordance with 29 this section. 30 (b) The board, following a public hearing, may issue one or more additional 31 restaurant or eating place licenses under AS 04.11.100, within the boundaries of the

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

01 (4) information showing that the number of additional licenses 02 requested does not exceed one license for each 1,500 population of the population 03 identified under (2) of this subsection; and 04 (5) additional justification, as necessary, to demonstrate that granting 05 of the additional licenses is in the public interest. 06 (d) If the board grants a petition for additional restaurant or eating place 07 licenses under this section to a municipality, the board may not authorize additional 08 restaurant or eating place licenses to the same municipality under this section for the 09 following three years. 10 * Sec. 51. AS 04.11.405(a), enacted by sec. 50 of this Act, is amended to read: 11 (a) A first class city, a home rule city, or a unified municipality may submit a 12 resolution to the board, adopted by its legislative body, petitioning the board for the 13 issuance of additional restaurant or eating place licenses under AS 04.09.210 14 [AS 04.11.100] that exceed the limits under AS 04.11.400(a) in accordance with this 15 section. 16 * Sec. 52. AS 04.11.405(b), enacted by sec. 50 of this Act, is amended to read: 17 (b) The board, following a public hearing, may issue one or more additional 18 restaurant or eating place licenses under AS 04.09.210 [AS 04.11.100], within the 19 boundaries of the municipality, if the board finds that 20 (1) the municipality 21 (A) serves as a center for commercial activity within and 22 outside the boundaries of the municipality by providing goods and services to a 23 population that is greater than the permanent resident population within the 24 boundaries of the municipality; 25 (B) maintains a local law enforcement department; 26 (C) exercises planning or land-use authority; and 27 (D) at the time of the petition, meets or exceeds the maximum 28 limit under AS 04.11.400(a) for restaurant or eating place licenses issued under 29 AS 04.09.210 [AS 04.11.100]; 30 (2) the number of additional licenses does not exceed the number of 31 additional licenses requested by the municipality in the petition; and

01 (3) granting the additional licenses is in the public interest. 02 * Sec. 53. AS 04.11.420(a) is amended to read: 03 (a) A person may not be issued a new license, endorsement, or permit or 04 transfer a license or a license with endorsement to a new location in a municipality 05 if a zoning regulation or ordinance prohibits the land use [SALE OR 06 CONSUMPTION OF ALCOHOLIC BEVERAGES] unless a variance of the 07 regulation or ordinance has been approved. 08 * Sec. 54. AS 04.11.420 is amended by adding a new subsection to read: 09 (c) Notwithstanding (a) of this section, a license may be renewed if 10 (1) the license was issued before the effective date of a change to a 11 local zoning regulation or ordinance that would prohibit the renewal; and 12 (2) at the time the license was issued, the license conformed with local 13 zoning regulations and ordinances. 14 * Sec. 55. AS 04.11.430 is amended to read: 15 Sec. 04.11.430. Person and location. (a) Each license shall be issued to a 16 specific individual or individuals, to a partnership, including a limited partnership, to a 17 limited liability organization, [OR] to a corporation, to a government entity, or to a 18 tribal organization. If the license is issued to a corporation or a limited liability 19 organization, the registered agent of the corporation or limited liability organization 20 may [MUST] be either an individual resident of the state or a domestic corporation 21 authorized to transact business in this state whose business office is the same as 22 the registered office. 23 (b) Except for a license authorizing the sale of alcoholic beverages on a 24 common carrier, a specific location shall be indicated on the license, endorsement, or 25 permit as the licensed premises, the principal address of which shall be indicated on 26 the license, endorsement, or permit. The mailing address, telephone number, and 27 electronic mailing address of a licensee or, if the licensee is a corporation, the 28 address, telephone number, and electronic mailing address of the registered office 29 of the corporation must be kept current and on file in the main office of the board. 30 * Sec. 56. AS 04.11.450(b) is amended to read: 31 (b) A person who is a representative or owner of a wholesale business

01 licensed under AS 04.09.100 or 04.09.110 [, BREWERY, WINERY, BOTTLING 02 WORKS, OR DISTILLERY] may not be issued, solely or together with others, a 03 manufacturer license issued under AS 04.09.020 - 04.09.040, or a retail license 04 issued under AS 04.09.200 - 04.09.360 [BEVERAGE DISPENSARY LICENSE, A 05 RESTAURANT OR EATING PLACE LICENSE, OR PACKAGE STORE 06 LICENSE. A HOLDER OF A BEVERAGE DISPENSARY LICENSE MAY BE 07 ISSUED A BREWPUB LICENSE, SUBJECT TO THE PROVISIONS OF 08 AS 04.11.135. THE PROHIBITION AGAINST ISSUANCE OF A RESTAURANT 09 OR EATING PLACE LICENSE IMPOSED UNDER THIS SUBSECTION DOES 10 NOT APPLY TO A RESTAURANT OR EATING PLACE LICENSE ISSUED ON 11 OR BEFORE OCTOBER 1, 1996 OR A RESTAURANT OR EATING PLACE 12 LICENSE ISSUED UNDER AN APPLICATION FOR A RESTAURANT OR 13 EATING PLACE LICENSE APPROVED ON OR BEFORE OCTOBER 1, 1996]. 14 * Sec. 57. AS 04.11.450(e) is amended to read: 15 (e) A holder of either a general wholesale license or a limited wholesale 16 brewed [MALT] beverage and wine license may not be employed by or act as the 17 agent or employee of the holder of a manufacturer [BEVERAGE DISPENSARY OR 18 PACKAGE STORE] license under AS 04.09.020 - 04.09.040 or a retail license 19 under AS 04.09.200 - 04.09.360. 20 * Sec. 58. AS 04.11.450 is amended by adding new subsections to read: 21 (g) The holder of a manufacturer license that annually produces in total 22 300,000 barrels or more of brewed beverages or mead or cider containing less than 8.5 23 percent alcohol by volume, 50,000 nine-liter-equivalent cases or more of wine, sake, 24 or mead or cider containing 8.5 percent or more alcohol by volume, or 50,000 nine- 25 liter-equivalent cases or more of distilled spirits may not be issued, solely or together 26 with others, a license under AS 04.09.100 - 04.09.360. 27 (h) For purposes of calculating the volume that the holder of a manufacturer 28 license produces under this section, the volume of production must include all 29 production by 30 (1) the holder of the manufacturer's license; and 31 (2) an officer, director, agent, employee, or affiliate of the holder; in

01 this paragraph, "affiliate" means a person that directly or indirectly, through one or 02 more intermediaries, controls, or is controlled by, or is under common control with, a 03 corporation. 04 * Sec. 59. AS 04.11.460 is amended by adding a new subsection to read: 05 (d) This section does not apply to a winery direct shipment license issued 06 under AS 04.09.360. 07 * Sec. 60. AS 04.11.470 is amended to read: 08 Sec. 04.11.470. Objection. A person may object to an application for issuance, 09 renewal, transfer of location, or transfer to another person of a license, for issuance, 10 renewal, or transfer to another person of a license with one or more 11 endorsements, for issuance of an endorsement or for issuance of a permit, by 12 serving upon the applicant and the board the reasons for the objection. The board shall 13 consider the objections and testimony received at a hearing conducted under 14 AS 04.11.510(b)(2) when it considers the application. An objection and the record of a 15 hearing conducted under AS 04.11.510(b)(2) shall be retained as part of the board's 16 permanent record of its review of the application. 17 * Sec. 61. AS 04.11.480(a) is amended to read: 18 (a) A local governing body may protest the issuance, renewal, relocation, or 19 transfer to another person of a license, issuance, renewal, or transfer to another 20 person of a license with one or more endorsements, or issuance of an 21 endorsement by sending the board and the applicant a protest and the reasons for the 22 protest within 60 days of the date [RECEIPT FROM THE BOARD] of the notice of 23 filing of the application. A protest received after the 60-day period may not be 24 accepted by the board, and in no event may a protest cause the board to reconsider an 25 approved renewal, relocation, or transfer. The local governing body may protest the 26 continued operation of a license or endorsement during the second year of the 27 biennial license period by sending the board and the licensee a protest and the reasons 28 for the protest by January 31 of the second year of the license. The procedures for 29 action on a protest of continued operation of a license or endorsement are the same as 30 the procedures for action on a protest of a renewal application. The board shall 31 consider a protest and testimony received at a hearing conducted under

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

01 * Sec. 64. AS 04.11.480 is amended by adding a new subsection to read: 02 (e) If the location or proposed location of a license is within the boundaries of 03 more than one local government, each local governing body may protest the issuance, 04 renewal, relocation, or transfer of a license. 05 * Sec. 65. AS 04.11.491(a) is amended to read: 06 (a) If a majority of the persons voting on the question vote to approve the 07 option, a municipality shall adopt a local option to prohibit 08 (1) the sale of alcoholic beverages; 09 (2) the sale of alcoholic beverages except by one or more of the 10 following listed on the ballot: 11 (A) a restaurant or eating place licensee; 12 (B) a beverage dispensary licensee; 13 (C) a package store licensee; 14 (D) a caterer holding a beverage dispensary caterer's permit 15 under AS 04.09.610 [AS 04.11.230] to sell alcoholic beverages at a site within 16 the municipality who is also licensed under a beverage dispensary license for 17 premises outside of the municipality; 18 (E) a winery manufacturer licensee; 19 (F) a winery manufacturer licensee, except that sales may 20 occur only to a person licensed under this title or in another state or country; or 21 (G) an outdoor recreation lodge licensee; 22 (3) the sale of alcoholic beverages except on premises operated by the 23 municipality and under a type of licensed premises listed on the ballot, that may 24 include one or more of the following: 25 (A) a restaurant or eating place license; 26 (B) a beverage dispensary license; or 27 (C) a package store license; 28 (4) the sale and importation of alcoholic beverages; or 29 (5) the sale, importation, and possession of alcoholic beverages. 30 * Sec. 66. AS 04.11.491(b) is amended to read: 31 (b) If a majority of the persons voting on the question vote to approve the

01 option, an established village shall exercise a local option to prohibit 02 (1) the sale of alcoholic beverages; 03 (2) the sale of alcoholic beverages except by one or more of the 04 following listed on the ballot: 05 (A) a restaurant or eating place licensee; 06 (B) a beverage dispensary licensee; 07 (C) a package store licensee; 08 (D) a caterer holding a beverage dispensary caterer's permit 09 under AS 04.09.610 [AS 04.11.230] to sell alcoholic beverages at a site within 10 the established village who is also licensed under a beverage dispensary license 11 for premises outside of the established village; 12 (E) a winery manufacturer licensee; 13 (F) a winery manufacturer licensee, except that sales may 14 occur only to a person licensed under this title or in another state or country; or 15 (G) an outdoor recreation lodge licensee; 16 (3) the sale and importation of alcoholic beverages; or 17 (4) the sale, importation, and possession of alcoholic beverages. 18 * Sec. 67. AS 04.11.491(d) is amended to read: 19 (d) The ballot for an election on the option set out in (a)(2)(A), (a)(3)(A), or 20 (b)(2)(A) of this section must include a summary explanation of the authority to sell 21 alcoholic beverages given to a restaurant or eating place under AS 04.09.210(a) 22 [AS 04.11.100(a)]. The ballot for an election on the option set out in (a)(2)(B) or (D), 23 (a)(3)(B), or (b)(2)(B) or (D) of this section must include a statement that a beverage 24 dispensary license is commonly known as a "bar" and a summary explanation of the 25 authority to sell alcoholic beverages given to a beverage dispensary licensee under 26 AS 04.09.200 [AS 04.11.090(a)]. The ballot for an election on the option set out in 27 (a)(2)(C), (a)(3)(C), or (b)(2)(C) of this section must include a statement that a 28 package store license is commonly known as a "liquor store" and a summary 29 explanation of the authority to sell alcoholic beverages given to a package store 30 licensee under AS 04.09.230 [AS 04.11.150(a)]. 31 * Sec. 68. AS 04.11.491(g) is amended to read:

01 (g) If a municipality or established village has adopted a local option under 02 (a)(1), (2), (3), or (4), or (b)(1), (2), or (3) of this section, the municipality or 03 established village, as part of the local option question or questions placed before the 04 voters, may 05 (1) adopt an amount of alcoholic beverages that may be imported that 06 is less than the amounts set out in AS 04.09.460(e) [AS 04.11.150(g)]; 07 (2) adopt an amount of alcoholic beverages that would give rise to a 08 presumption that the person possessed the alcoholic beverages for sale; the amounts 09 adopted under this paragraph may be lower than those set out in AS 04.11.010(c); 10 (3) opt to not apply a class C felony to violations of AS 04.16.051 that 11 apply solely by reason of the municipality or established village adopting a local 12 option under this section. 13 * Sec. 69. AS 04.11.510(b) is amended to read: 14 (b) The board may review an application for the issuance, renewal, transfer of 15 location, or transfer to another person of a license without affording the applicant 16 notice or hearing, except 17 (1) if an application is denied, written [THE] notice of denial shall be 18 furnished immediately to the applicant [IMMEDIATELY IN WRITING] stating the 19 reason for the denial in clear and concise language; the notice of denial must inform 20 the applicant that the applicant is entitled to submit a request to the director, within 21 15 days after receiving the notice of denial, for an informal conference with either 22 the director or the board, and that, if not satisfied by the informal conference, the 23 applicant is then entitled to a formal hearing conducted by the office of administrative 24 hearings (AS 44.64.010); the director shall respond to a request for an informal 25 conference or a formal hearing in a timely manner and shall hold an informal 26 conference within 15 days after receiving a request for an informal conference 27 unless the applicant and the director agree in writing to waive or extend the time 28 limit; if the applicant requests an informal conference, the running of the period 29 for requesting a formal hearing is tolled from the date the director receives the 30 request for the conference until the day after the date of the conference; if the 31 applicant requests a formal hearing, the office of administrative hearings shall adhere

01 to AS 44.62.330 - 44.62.630 (Administrative Procedure Act); all interested persons 02 may be heard at the hearing [AND UNLESS WAIVED BY THE APPLICANT AND 03 THE BOARD, THE FORMAL HEARING SHALL BE HELD IN THE AREA FOR 04 WHICH THE APPLICATION IS REQUESTED]; 05 (2) the board may, on its own initiative or in response to an objection 06 or protest, hold a hearing to ascertain the reaction of the public or a local governing 07 body to an application if a hearing is not required under this subsection; the board 08 shall send notice of a hearing conducted under this paragraph 20 days in advance of 09 the hearing to the person who filed the objection or protest, to a [EACH] 10 community council, if the licensed premises or proposed licensed premises 11 described in the application is located within the boundaries of the community 12 council, [ESTABLISHED WITHIN THE MUNICIPALITY] and to each nonprofit 13 community organization entitled to notification under AS 04.11.310(b); 14 (3) if a petition containing the signatures of 35 percent of the adult 15 residents having a permanent place of abode outside of but within two miles of an 16 incorporated city or an established village is filed with the board, the board shall hold 17 a public hearing on the question of whether the issuance, renewal, or transfer of the 18 license in the city or village would be in the public interest; 19 (4) if a protest to the issuance, renewal, transfer of location or transfer 20 to another person of a license made by a local governing body is based on a question 21 of law, the board shall hold a public hearing. 22 * Sec. 70. AS 04.11.510(c) is amended to read: 23 (c) Unless the grounds for the suspension or revocation are under 24 AS 04.11.370(a)(4), board proceedings to suspend or revoke a license shall be 25 conducted in accordance with AS 44.62.360 - 44.62.630 [AS 44.62.330 - 44.62.630] 26 (Administrative Procedure Act), except that the licensee may submit a request to the 27 director within 15 days after the accusation is served on the licensee for [IS 28 ENTITLED TO] an opportunity to informally confer with the director or the board 29 [WITHIN 10 DAYS AFTER THE ACCUSATION IS SERVED UPON THE 30 LICENSEE]. Notice of the opportunity for an informal conference shall be served on 31 [UPON] the licensee along with the accusation. The director shall respond to a

01 request for an informal conference or a formal hearing in a timely manner. The 02 director shall hold an informal conference within 15 days after receiving a 03 request for an informal conference unless the applicant and the director agree in 04 writing to waive or extend the time limit. After the informal conference, the 05 board shall hold a formal hearing on the accusation at the next regularly 06 scheduled board meeting that occurs 20 days or more after service of the 07 accusation [IF AN INFORMAL CONFERENCE IS REQUESTED, THE RUNNING 08 OF THE PERIOD OF TIME SPECIFIED IN AS 44.62.380 FOR FILING A NOTICE 09 OF DEFENSE IS TOLLED FROM THE DATE OF RECEIPT OF THE REQUEST 10 FOR THE CONFERENCE UNTIL THE DAY FOLLOWING THE DATE OF THE 11 CONFERENCE UNLESS EXTENDED BY THE BOARD. AFTER THE 12 CONFERENCE, THE LICENSEE, IF NOT SATISFIED BY THE RESULTS OF 13 THE CONFERENCE, MAY OBTAIN A HEARING BY FILING A NOTICE OF 14 DEFENSE AS PROVIDED IN AS 44.62.390]. If the grounds for suspension or 15 revocation are under AS 04.11.370(a)(4), the licensee is not entitled to notice and 16 hearing under AS 44.62.360 - 44.62.630 [AS 44.62.330 - 44.62.630] on the merits of 17 the suspension or revocation. However, the board shall afford the licensee notice and 18 hearing on the issue of what administrative sanction to impose under AS 04.16.180. 19 * Sec. 71. AS 04.11.520 is amended to read: 20 Sec. 04.11.520. Notice to local governing body. After receipt of an 21 application for the issuance or renewal of a license, the renewal of a license with 22 one or more endorsements, the transfer of a license or a license with one or more 23 endorsements to another person, transfer of a license to a new location, or the 24 issuance of an endorsement from within [(1)] an established village, [(2)] an 25 incorporated city, [(3)] an organized borough, or [(4)] a unified municipality, the 26 board shall notify [TRANSMIT WRITTEN NOTICE TO] the local governing body in 27 writing within 10 business days so that the local governing body may protest under 28 AS 04.11.480. 29 * Sec. 72. AS 04.11.535(a) is amended to read: 30 (a) If, in a proceeding to suspend or revoke a license, endorsement, or permit 31 under AS 04.11.370(a)(5), the board finds that a sentencing report, record of

01 conviction, or judgment sent to the board under AS 12.55.025(b) or a report prepared 02 by the investigating or arresting officers in connection with the violation, contains 03 information that if uncontradicted or unexplained would provide a ground for 04 suspension or revocation under AS 04.11.370(a)(5), the licensee or permittee has the 05 burden of proof to establish that the licensee or permittee neither knowingly allowed 06 the violation nor recklessly or with criminal negligence failed to act in accordance 07 with the duty prescribed under AS 04.21.030. 08 * Sec. 73. AS 04.11.540 is amended to read: 09 Sec. 04.11.540. License, endorsement, and conditional contractor's permit 10 renewal and expiration. Notwithstanding AS 04.11.680, an application for renewal 11 of a license, endorsement, or a conditional contractor's permit under 12 AS 04.09.690 issued for the two calendar years ending December 31 or of a seasonal 13 license issued for parts of those calendar years may be submitted up until the next 14 February 28. If a complete application for renewal has not been filed by February 28 15 or the required fees and the penalty fees have not been paid by that date, the license, 16 endorsement, or conditional contractor's permit expires at 12:00 midnight 17 February 28. A new license may not be issued to the holder of an expired license for 18 the same premises except on proof satisfactory to the board of good cause for the 19 failure to file and pay. 20 * Sec. 74. AS 04.11.560(b) is amended to read: 21 (b) A decision by the board relating to the issuance, renewal, transfer, 22 relocation, suspension, or revocation of a license or an endorsement under this title 23 may be appealed to the superior court under AS 44.62.560. 24 * Sec. 75. AS 04.11.570 is amended to read: 25 Sec. 04.11.570. Refund and forfeiture of fees. (a) If an application for a 26 license or endorsement is denied, the board shall refund the license fee but not 27 [LESS] the application fee. 28 (b) A license or endorsement fee may not be refunded after the license or 29 endorsement has been issued unless the board determines it has erred in the issuance 30 through no fault of the applicant. 31 (c) If a license, endorsement, or permit is revoked on grounds that

01 statements made in the application are untrue, the [LICENSE] fee paid by the 02 applicant is forfeited to the state. 03 * Sec. 76. AS 04.11.580(b) is amended to read: 04 (b) The licensee shall surrender a current license to the board not later than 05 [WITHIN] 10 days after the loss or vacation of the licensed premises. 06 * Sec. 77. AS 04.11.590(a) is amended to read: 07 (a) Money collected from licenses, endorsements, permits, and civil fines 08 under this title shall be transferred by the board to the Department of Commerce, 09 Community, and Economic Development and deposited in the general fund. 10 * Sec. 78. AS 04.11.610 is amended to read: 11 Sec. 04.11.610. Allocation [REFUND] to municipalities. (a) An amount 12 equal to the sum of the biennial [BIENNIAL] license fees, excluding annual 13 wholesale fees and biennial wholesale license fees, collected within a municipality 14 shall be allocated [REFUNDED] semi-annually to the municipality. 15 (b) If the officers of a municipality fail to actively enforce local ordinances, 16 this title, laws of the United States and the state, and the regulations relating to the 17 manufacture and sale of alcoholic beverages in the state, or fail to provide the 18 director with a report of contacts with licensed establishments, educational 19 activities concerning this title and local ordinances, and violations of this title 20 occurring in the municipality, at the time and in the format as may be required 21 by regulation adopted by the board, the commissioner of commerce, community, 22 and economic development may deny the allocation [REFUND] provided for under 23 (a) of this section until the board finds the enforcement of the ordinances, laws, and 24 regulations is resumed or the report is provided. 25 (c) The Department of Commerce, Community, and Economic Development 26 shall recover any funds [AMOUNTS] erroneously allocated [REFUNDED] under (a) 27 of this section. The Department of Commerce, Community, and Economic 28 Development shall schedule repayments of erroneously allocated funds 29 [REFUNDED AMOUNTS] over a sufficient period of time to minimize financial 30 hardship to the municipality involved. 31 * Sec. 79. AS 04.11.630(b) is amended to read:

01 (b) A license, endorsement, or permit issued under this title shall be posted 02 within the licensed premises or designated premises so as to be easily available for 03 inspection upon request by a peace officer or other person during regular business 04 hours or during the period specified on the permit. 05 * Sec. 80. AS 04.11.680 is amended to read: 06 Sec. 04.11.680. Duration of licenses, endorsements, and permits. (a) Upon 07 application [AND PAYMENT OF ONE-HALF OF THE BIENNIAL FEE], the board 08 may issue a seasonal license under this title that is effective for the intervals stated on 09 the license. [A SEASONAL LICENSE MAY NOT BE EFFECTIVE FOR MORE 10 THAN 12 MONTHS IN A TWO-YEAR PERIOD.] Otherwise, a license or 11 endorsement [ALL LICENSES] issued under this title and a conditional 12 contractor's permit issued under AS 04.09.690 is [OTHER THAN A RETAIL 13 STOCK SALE LICENSE ARE] effective for the two calendar years ending 14 December 31, unless a shorter period is prescribed by the board or by law. 15 (b) A permit issued under this title shall be for a specific time [THE] period 16 [PRESCRIBED BY THE BOARD]. The period shall be clearly designated on the 17 permit. 18 * Sec. 81. AS 04.16.010(c) is amended to read: 19 (c) Except as provided in (e) of this section, a [A] licensee, agent, or 20 employee may not permit a person to enter and a person may not enter premises 21 licensed under this title between the hours of 5:00 a.m. and 8:00 a.m. each day, unless 22 the person is 23 (1) on the premises to conduct business with the licensee, agent, or 24 employee, and the licensee, agent, or employee is in compliance with (a) and (b) 25 of this section; 26 (2) a common carrier with a common carrier dispensary license 27 under AS 04.09.260; 28 (3) [. THIS SUBSECTION DOES NOT APPLY TO COMMON 29 CARRIERS OR TO] an employee of the licensee who is on the premises to prepare 30 for the next day's business; 31 (4) performing maintenance or improvements authorized by the

01 licensee; 02 (5) [. A PERSON MAY ENTER OR REMAIN] on the premises [OF 03 A BONA FIDE RESTAURANT OR EATING PLACE LICENSED UNDER THIS 04 TITLE] to consume food or nonalcoholic beverages and the premises are 05 (A) licensed under a restaurant or eating place license 06 issued under AS 04.09.210 or a seasonal restaurant or eating place 07 tourism license issued under AS 04.09.350; or 08 (B) covered under a restaurant endorsement issued under 09 AS 04.09.450. 10 * Sec. 82. AS 04.16.010 is amended by adding new subsections to read: 11 (e) A brewery, winery, or distillery retail licensee or an agent or employee of a 12 brewery, winery, or distillery retail licensee may not permit a person to enter and a 13 person may not enter a premises licensed under this title between the hours of 10:00 14 p.m. and 9:00 a.m. each day, unless the person is 15 (1) on the premises to conduct business with the licensee, agent, or 16 employee, and the licensee, agent, or employee is in compliance with (a) and (b) of 17 this section; 18 (2) an employee of the licensee who is on the premises to prepare for 19 the next day's business; or 20 (3) performing maintenance or improvements authorized by the 21 licensee. 22 (f) A person who violates (a), (b), (c), or (e) of this section is guilty of a 23 violation. 24 * Sec. 83. AS 04.16.015(a) is amended to read: 25 (a) On premises where alcoholic beverages are sold by the drink, a licensee or 26 a licensee's agent or employee may not 27 (1) offer or deliver, as a marketing device to the general public, free 28 alcoholic beverages to a patron, except as provided for the holder of a 29 manufacturer sampling endorsement under AS 04.09.410 or a package store 30 sampling endorsement under AS 04.09.490; 31 (2) deliver an alcoholic beverage to a person already possessing two or

01 more; 02 (3) sell, offer to sell, or deliver alcoholic beverages to a person or 03 group of persons at a price less than the price regularly charged for the beverages 04 during a consecutive seven-day period [THE SAME CALENDAR WEEK], except at 05 private functions not open to the general public; 06 (4) sell, offer to sell, or deliver an unlimited number of alcoholic 07 beverages to a person or group of persons during a set period of time for a fixed price; 08 (5) sell, offer to sell, or deliver alcoholic beverages to a person or 09 group of persons on any one day at prices less than those charged the general public 10 on that day, except at private functions not open to the general public; 11 (6) encourage or permit an organized game or contest on the licensed 12 premises that involves drinking alcoholic beverages or the awarding of alcoholic 13 beverages as prizes. 14 * Sec. 84. AS 04.16.015 is amended by adding a new subsection to read: 15 (e) A person who violates this section is guilty of a violation. 16 * Sec. 85. AS 04.16 is amended by adding a new section to read: 17 Sec. 04.16.017. Trade practices. (a) A person holding a license under 18 AS 04.09.020, 04.09.030, 04.09.040, 04.09.100, or 04.09.110 or engaged in the 19 alcoholic beverage industry in another state or country as a brewer, vintner, distiller, 20 or importer, or as an agent of a brewer, vintner, distiller, or importer, may not, except 21 as provided in regulations adopted by the board under (b) of this section, induce a 22 person holding a license under this title to 23 (1) operate as a tied house by inducing a retailer engaged in the sale of 24 alcoholic beverages to purchase products from an entity to the exclusion, in whole or 25 in part, of products sold or offered for sale by other entities by 26 (A) furnishing, giving, renting, lending, or selling to the retailer 27 equipment fixtures, signs, supplies, money, services, or other things of value, 28 except those excluded in regulation and determined to be not contrary to the 29 public interest or contrary to the intent of this subsection; 30 (B) paying or crediting the retailer for an advertising, display, 31 or distribution service;

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

01 (c) The board shall adopt regulations establishing administrative penalties for 02 a violation of this section. 03 (d) In this section, "commercial bribery," "consignment sales," "exclusive 04 outlet," and "tied house" have the meanings given in 27 U.S.C. 205 and regulations 05 adopted under that section. 06 * Sec. 86. AS 04.16.020 is amended by adding new subsections to read: 07 (d) A person who violates a provision of this section commits the offense of 08 unauthorized solicitation or purchase of alcoholic beverages. 09 (e) Unauthorized solicitation or purchase of alcoholic beverages is a violation 10 and is punishable by a fine of $100. 11 * Sec. 87. AS 04.16 is amended by adding a new section to read: 12 Sec. 04.16.022. Online sale and purchase of alcoholic beverages. (a) A 13 licensee or a licensee's agent or employee may not sell or offer to sell alcoholic 14 beverages to the public online unless the licensee holds a winery direct shipment 15 license issued under AS 04.09.360 or a package store shipping endorsement under 16 AS 04.09.460. 17 (b) A person may not purchase alcoholic beverages online except from the 18 holder of a winery direct shipment license issued under AS 04.09.360 or a package 19 store shipping endorsement under AS 04.09.460. 20 (c) A person who violates (a) of this section is, upon conviction, guilty of a 21 class A misdemeanor. 22 (d) A person who violates (b) of this section is guilty of a violation. 23 * Sec. 88. AS 04.16.025(a) is amended to read: 24 (a) A person may not knowingly enter or remain on premises 25 (1) in which alcoholic beverages are manufactured, sold, offered for 26 sale, possessed for sale or barter, trafficked in, or bartered in violation of 27 (A) AS 04.09.060, 04.09.370, or AS 04.11.010; or 28 (B) a municipal ordinance adopted under AS 04.21.010(a) or 29 (b); or 30 (2) licensed under this title during hours in which the person's presence 31 on the premises is a violation of a municipal ordinance adopted under authority of

01 AS 04.16.010(d) providing for hours of closure that are outside the hours of closure 02 prescribed by AS 04.16.010(c) or (e). 03 * Sec. 89. AS 04.16.030 is amended by adding new subsections to read: 04 (c) A person who violates this section commits the offense of prohibited 05 conduct relating to a drunken person. 06 (d) Prohibited conduct relating to a drunken person is a violation, punishable 07 by a fine of $500. 08 (e) The holder of a license is strictly and vicariously liable for an offense 09 committed under (c) of this section by an employee or agent of the licensee on the 10 licensed premises, punishable by an administrative penalty of $250. Notwithstanding 11 AS 04.11.370(a)(4) and (5) and AS 04.16.180(b)(1), the board may not order 12 suspension of the license for the first violation committed on the licensed premises 13 under this section. 14 (f) A licensee who knowingly allows an agent or employee of the licensee to 15 commit the offense of prohibited conduct relating to a drunken person under (c) of this 16 section commits the offense of failure to ensure compliance relating to a drunken 17 person. 18 (g) Failure to ensure compliance relating to a drunken person is a class A 19 misdemeanor. 20 * Sec. 90. AS 04.16.035 is amended to read: 21 Sec. 04.16.035. Possession of ingredients for homebrew in certain areas. A 22 person residing in an area that has adopted a local option under AS 04.11.491 [TO 23 PROHIBIT THE SALE, IMPORTATION, AND POSSESSION OF ALCOHOLIC 24 BEVERAGES UNDER AS 04.11.491(a)(5) OR (b)(4)] may not possess sugar, 25 artificial sugar, malt, yeast, or any other material or equipment with the intent to use 26 the material or equipment to create an alcoholic beverage. 27 * Sec. 91. AS 04.16.035 is amended by adding new subsections to read: 28 (b) A person who knowingly violates this section commits the crime of 29 possession of ingredients for homebrew. 30 (c) Possession of ingredients for homebrew is a class A misdemeanor. 31 * Sec. 92. AS 04.16.040 is amended by adding new subsections to read:

01 (b) A person who violates this section commits the offense of prohibited 02 access by a drunken person. 03 (c) Prohibited access by a drunken person is a violation. 04 * Sec. 93. AS 04.16.045 is amended by adding new subsections to read: 05 (b) A person who violates this section commits the offense of permitting 06 consumption not authorized under a license. 07 (c) Permitting consumption not authorized under a license is a violation. 08 * Sec. 94. AS 04.16.047 is amended by adding new subsections to read: 09 (d) A person who is restricted from purchasing alcohol under AS 04.16.160 10 who knowingly violates (a) of this section commits the offense of entering or 11 remaining on licensed premises. 12 (e) Entering or remaining on licensed premises is a class A misdemeanor. 13 * Sec. 95. AS 04.16.049(a) is amended to read: 14 (a) A person under 21 years of age may not knowingly enter or remain in 15 premises licensed under this title unless 16 (1) accompanied by a parent, guardian, or spouse who has attained 21 17 years of age; 18 (2) the person is allowed to enter and remain on [AT LEAST 16 19 YEARS OF AGE,] the premises under a restaurant or eating place license issued 20 under AS 04.09.210, seasonal restaurant or eating place tourism license issued 21 under AS 04.09.350, or restaurant endorsement issued under AS 04.09.450 [ARE 22 DESIGNATED BY THE BOARD AS A RESTAURANT FOR THE PURPOSES OF 23 THIS SECTION, AND THE PERSON ENTERS AND REMAINS ONLY FOR 24 DINING; 25 (3) THE PERSON IS UNDER 16 YEARS OF AGE, IS 26 ACCOMPANIED BY A PERSON OVER 21 YEARS OF AGE, THE PARENT OR 27 GUARDIAN OF THE UNDERAGED PERSON CONSENTS, THE PREMISES ARE 28 DESIGNATED BY THE BOARD AS A RESTAURANT FOR THE PURPOSES OF 29 THIS SECTION, AND THE PERSON ENTERS AND REMAINS ONLY FOR 30 DINING]; 31 (3) [(4)] the person is permitted on the premises under a club license

01 issued under AS 04.09.220(g) or former AS 04.11.110(g); or 02 (4) [(5)] otherwise provided under (c), (d), or (g) of this section. 03 * Sec. 96. AS 04.16.049(c) is amended to read: 04 (c) Notwithstanding any other provision in this section, a person 16 or 17 05 years of age may enter and remain within the licensed premises of a hotel or motel, 06 large resort, golf course, general wholesaler, limited brewed beverage and wine 07 wholesaler, common carrier dispensary, outdoor recreation lodge, or restaurant 08 [OR EATING PLACE] in the course of employment if 09 (1) the employment does not involve the serving, mixing, delivering, 10 or dispensing of alcoholic beverages; 11 (2) the person has the written consent of a parent or guardian; and 12 (3) an exemption from the prohibition of AS 23.10.355 is granted by 13 the Department of Labor and Workforce Development. [THE BOARD, WITH THE 14 APPROVAL OF THE GOVERNING BODY HAVING JURISDICTION AND AT 15 THE LICENSEE'S REQUEST, SHALL DESIGNATE WHICH PREMISES ARE 16 HOTELS, GOLF COURSES, RESTAURANTS, OR EATING PLACES FOR THE 17 PURPOSES OF THIS SUBSECTION.] 18 * Sec. 97. AS 04.16.049(d) is amended to read: 19 (d) Notwithstanding any other provision in this section, a person 18, 19, or 20 20 years of age may be employed within the licensed premises of a hotel or motel, large 21 resort, golf course, general wholesaler, limited brewed beverage and wine 22 wholesaler, common carrier dispensary, outdoor recreation lodge, or restaurant 23 [OR EATING PLACE], may enter and remain within those premises for the purpose 24 of employment, but may not, in the course of employment, sell, serve, deliver, or 25 dispense alcoholic beverages. 26 * Sec. 98. AS 04.16.049 is amended by adding a new subsection to read: 27 (j) Notwithstanding any other provision in this section, a person under 21 28 years of age may be present on the licensed premises of a common carrier dispensary, 29 destination resort, or outdoor recreation lodge for the purpose of travel, travel lodging, 30 or outdoor recreation activities provided by the licensee if the person is 31 (1) at least 16 years of age; or

01 (2) under 16 years of age and a parent or legal guardian of the 02 underaged person consents. 03 * Sec. 99. AS 04.16.051(d) is repealed and reenacted to read: 04 (d) A person who, with criminal negligence, furnishes or delivers an alcoholic 05 beverage to a person under 21 years of age in violation of (a) of this section commits 06 the crime of furnishing or delivering to a minor. 07 * Sec. 100. AS 04.16.051 is amended by adding a new subsection to read: 08 (e) Furnishing or delivering to a minor is 09 (1) a class A misdemeanor, except as provided in (2) of this 10 subsection; 11 (2) a class C felony if 12 (A) within the five years preceding the violation, the person has 13 been previously convicted under 14 (i) this section; or 15 (ii) a law or ordinance of this or another jurisdiction 16 with elements substantially similar to this section; 17 (B) the person who receives the alcoholic beverage negligently 18 causes serious physical injury to or the death of another person while under the 19 influence of the alcoholic beverage received in violation of this section; in this 20 subparagraph, 21 (i) "negligently" means acting with civil negligence; 22 and 23 (ii) "serious physical injury" has the meaning given in 24 AS 11.81.900; or 25 (C) the violation occurs within the boundaries of a municipality 26 or the perimeter of an established village that has adopted a local option under 27 AS 04.11.491 and has not opted out of applying a class C felony to violations 28 of this section under AS 04.11.491(g). 29 * Sec. 101. AS 04.16.052 is amended by adding new subsections to read: 30 (b) The holder of a license is strictly liable for an offense committed under (a) 31 of this section by an employee or agent of the licensee on the licensed premises,

01 punishable by an administrative penalty of $250. Notwithstanding AS 04.11.370(a)(4) 02 and (5) and AS 04.16.180(b)(1), the board may not order suspension of the license for 03 the first violation committed on the licensed premises under this section. 04 (c) A person who violates (a) of this section commits the offense of licensee, 05 employee, or agent furnishing alcohol to a minor. 06 (d) Licensee, employee, or agent furnishing alcohol to a minor is a violation 07 and is punishable by a fine of $500. 08 (e) A licensee who knowingly allows an agent or employee of the licensee to 09 commit the offense of licensee, employee, or agent furnishing alcohol to a minor 10 under (c) of this section commits the offense of failure to ensure compliance relating 11 to furnishing alcohol to a minor. 12 (f) Failure to ensure compliance relating to furnishing alcohol to a minor is a 13 class A misdemeanor. 14 * Sec. 102. AS 04.16.055 is amended by adding new subsections to read: 15 (b) A person who knowingly rents a room in a hotel, motel, resort, or similar 16 business for the purpose of providing alcoholic beverages to a person under 21 years 17 of age commits the crime of renting a room for the purpose of providing alcoholic 18 beverages to a person under 21 years of age. 19 (c) Renting a room for the purpose of providing alcoholic beverages to a 20 person under 21 years of age is a class A misdemeanor. 21 * Sec. 103. AS 04.16.057(b) is amended to read: 22 (b) A person who violates this section is guilty of a violation and is 23 punishable by a fine of $500 [SHALL BE PUNISHED AS PROVIDED IN 24 AS 12.55]. 25 * Sec. 104. AS 04.16.060(e) is amended to read: 26 (e) A person under the age of 21 who is seeking to enter and remain in a 27 licensed premises under AS 04.16.049(a)(2) [OR (3)] may not misrepresent the 28 person's age or having obtained the consent of the parent or guardian required by that 29 section. 30 * Sec. 105. AS 04.16.060 is amended by adding new subsections to read: 31 (g) A person who violates (a) of this section commits the offense of purchase

01 by a person under 21 years of age. 02 (h) A person who violates (b) or (c) of this section commits the offense of 03 delivery to a person under 21 years of age. 04 (i) Purchase by a person under 21 years of age is a violation and is punishable 05 by a fine of $500. 06 (j) Delivery to a person under 21 years of age is a violation and is punishable 07 by a fine of $500. 08 (k) For a person under 21 years of age who commits an offense under (g) of 09 this section, the violation must be charged and filed with the court as a separate case 10 and may not be combined or joined with any other minor offense or criminal charge in 11 one action at the time of filing. A court may reduce the fine to $50 for a person who 12 has not more than one previous violation or to $250 for a person who has two or more 13 previous violations if the person provides the court, not later than six months after a 14 judgment of conviction is entered, with proof of completion of 15 (1) an alcohol safety action program or a juvenile alcohol safety action 16 program developed, designated, or approved by the Department of Health and Social 17 Services under AS 47.37; or 18 (2) a community diversion panel. 19 * Sec. 106. AS 04.16.080 is amended to read: 20 Sec. 04.16.080. Consumption [SALES OR CONSUMPTION] at school 21 events. A person who is 21 years of age or older may not [SELL OR] consume 22 alcoholic beverages during a school event at the site of the event if the event is 23 expected to attract attendees under 21 years of age. 24 * Sec. 107. AS 04.16.080 is amended by adding new subsections to read: 25 (b) A person who is 21 years of age or older who consumes an alcoholic 26 beverage during a school event at the site of the event under (a) of this section 27 commits the offense of consuming at a school event. 28 (c) Consuming at a school event is a violation and is punishable by a fine of 29 $100. 30 * Sec. 108. AS 04.16.090(c) is amended to read: 31 (c) In [FOR THE PURPOSES OF] this section, "consideration" includes

01 [BUT IS NOT LIMITED TO] cover charge, the sale of food, ice, mixers, or other 02 liquids used with alcoholic beverage drinks, [OR] the furnishing of glassware or other 03 containers for use in the consumption of alcoholic beverages, other charges for 04 access to the licensed premises, or other services or products provided on the 05 licensed premises. 06 * Sec. 109. AS 04.16.090 is amended by adding new subsections to read: 07 (d) A person who knowingly violates this section commits the crime of 08 maintaining a bottle club. 09 (e) Maintaining a bottle club is a class A misdemeanor. 10 * Sec. 110. AS 04.16.110 is amended by adding new subsections to read: 11 (b) A person who knowingly sells an alcoholic beverage in violation of (a) of 12 this section commits the crime of sale of a prohibited alcoholic beverage. 13 (c) Sale of a prohibited alcoholic beverage is a class A misdemeanor. 14 * Sec. 111. AS 04.16.120 is amended by adding new subsections to read: 15 (d) A person who removes an alcoholic beverage from licensed premises in 16 violation of (a) of this section and a person who brings an alcoholic beverage onto 17 licensed premises in violation of (b) of this section commits the offense of removal or 18 introduction of alcoholic beverages. 19 (e) Notwithstanding (a) of this section, the holder of a beverage dispensary 20 license under AS 04.09.200, the holder of a beverage dispensary tourism license under 21 AS 04.09.340, or the holder's employee may transport alcoholic beverages across 22 unlicensed portions of a hotel, motel, or large resort if the 23 (1) licensee holds an endorsement under AS 04.09.430 or 04.09.440; 24 and 25 (2) licensee or employee is walking directly from one licensed area of 26 the premises to another licensed area. 27 (f) Notwithstanding (a) of this section, a person may remove alcoholic 28 beverages from the licensed premises of a beverage dispensary license under 29 AS 04.09.200 or a beverage dispensary tourism license under AS 04.09.340 for 30 consumption on unlicensed portions of a large resort if the licensee holds a large resort 31 endorsement under AS 04.09.440.

01 (g) Removal or introduction of alcoholic beverages is a violation and is 02 punishable by a fine of $100. 03 * Sec. 112. AS 04.16.125(a) is amended to read: 04 (a) A person may not use a common carrier to transport alcoholic beverages 05 into an area that has restricted the sale of alcoholic beverages under 06 AS 04.11.491(a)(1), (2), or (3) or (b)(1) or (2) unless 07 (1) the shipping container holding the alcoholic beverages is clearly 08 labeled as containing alcoholic beverages [WITH LETTERS THAT CONTRAST IN 09 COLOR TO THE SHIPPING CONTAINER AND THAT ARE AT LEAST TWO 10 INCHES IN HEIGHT]; and 11 (2) an itemized invoice showing the quantity and purchase value of 12 distilled spirits, [OF] wine, and brewed [OF MALT] beverages is attached to the 13 outside of the shipping container. 14 * Sec. 113. AS 04.16.125(b) is amended to read: 15 (b) The requirements in (a) of this section do [THIS SECTION DOES] not 16 apply to 17 (1) a person transporting [NOT MORE THAN] 18 (A) two liters or less of wine; 19 (B) one gallon or less of brewed [MALT] beverages; or 20 (C) one liter or less of distilled spirits; or 21 (2) the transportation of alcoholic beverages for use on premises 22 allowed under AS 04.11.491(a)(2) or (3) [AS 04.11.491(a)(2) - (3)] or (b)(2) or for 23 use under a permit allowed under AS 04.11.491(a)(2). 24 * Sec. 114. AS 04.16.125 is amended by adding new subsections to read: 25 (d) A person who knowingly violates this section commits the crime of 26 unauthorized transportation of alcoholic beverages by common carrier into a local 27 option area. 28 (e) Unauthorized transportation of alcoholic beverages by common carrier into 29 a local option area is a class A misdemeanor. 30 * Sec. 115. AS 04.16.130 is amended by adding new subsections to read: 31 (c) A person who violates this section commits the offense of unauthorized

01 storage of alcoholic beverages. 02 (d) Unauthorized storage of alcoholic beverages is a violation. 03 * Sec. 116. AS 04.16.140 is amended by adding new subsections to read: 04 (b) A person who knowingly violates (a) of this section commits the offense 05 of sale or consumption of an alcoholic beverage in a warehouse. 06 (c) Sale or consumption of an alcoholic beverage in a warehouse is a violation. 07 * Sec. 117. AS 04.16.150 is amended by adding new subsections to read: 08 (b) Except as provided under AS 04.16.030(f) and 04.16.052(e), a licensee 09 who knowingly violates (a) of this section commits the offense of failure to ensure 10 compliance. 11 (c) Failure to ensure compliance is a violation. 12 * Sec. 118. AS 04.16.160 is amended by adding new subsections to read: 13 (c) A person who knowingly fails to comply with a restriction on purchasing 14 alcoholic beverages in violation of (a) of this section commits the crime of failure to 15 comply with a restriction on purchasing alcoholic beverages. 16 (d) Failure to comply with a restriction on purchasing alcoholic beverages is a 17 class A misdemeanor. 18 * Sec. 119. AS 04.16.170(b) is amended to read: 19 (b) A person transporting alcoholic beverages into the state may not sell those 20 alcoholic beverages to a person not licensed under this title, unless the alcoholic 21 beverages are used for religious, industrial, pharmaceutical, or medical purposes, or as 22 allowed under AS 04.09.360. 23 * Sec. 120. AS 04.16.170 is amended by adding new subsections to read: 24 (c) A licensee who knowingly violates (a) or (b) of this section commits the 25 crime of sale of alcoholic beverages from or to an unlicensed person. 26 (d) Sale of alcoholic beverages from or to an unlicensed person is a class A 27 misdemeanor. 28 * Sec. 121. AS 04.16.172 is amended to read: 29 Sec. 04.16.172. Restrictions on purchase and sale of alcoholic beverages. A 30 person licensed under AS 04.09.200, 04.09.210, 04.09.220, 04.09.230, 04.09.270, 31 04.09.280, 04.09.290, 04.09.300, 04.09.310, 04.09.320, 04.09.330, 04.09.340, or

01 04.09.350 [AS 04.11.090, 04.11.100, 04.11.110, OR 04.11.150] may not purchase, 02 sell, or offer for sale an alcoholic beverage unless the alcoholic beverage being 03 purchased, sold, or offered for sale was obtained from a person licensed under 04 (1) AS 04.09.100 or 04.09.110 [AS 04.11.160] as a primary source of 05 supply for the alcoholic beverage being purchased, sold, or offered for sale; 06 (2) AS 04.09.230 [AS 04.11.150] and the alcoholic beverage being 07 purchased, sold, or offered for sale was obtained from a person licensed under 08 AS 04.09.100 or 04.09.110 [AS 04.11.160] as a primary source of supply; or 09 (3) AS 04.09.020, 04.09.030, or 04.09.040 [AS 04.11.130, 04.11.140, 10 OR 04.11.170]. 11 * Sec. 122. AS 04.16.172 is amended by adding new subsections to read: 12 (b) A licensee who knowingly violates (a) of this section commits the crime of 13 licensee obtaining alcoholic beverages from an unlicensed seller. 14 (c) Licensee obtaining alcoholic beverages from an unlicensed seller is a class 15 A misdemeanor. 16 * Sec. 123. AS 04.16.175 is amended by adding new subsections to read: 17 (c) A person who knowingly furnishes an alcoholic beverage to a player in 18 violation of (a) of this section commits the crime of furnishing an alcoholic beverage 19 in aid of a gambling enterprise. 20 (d) Furnishing an alcoholic beverage in aid of a gambling enterprise is a class 21 A misdemeanor. 22 * Sec. 124. AS 04.16.180(b) is amended to read: 23 (b) A suspension or revocation of a license ordered by the board under 24 AS 04.11.370(a)(4) and (5) shall be as follows: 25 (1) on first conviction, the license of the premises involved may not be 26 revoked, but, except as provided in AS 04.16.030 and 04.16.052, may be suspended 27 for not more than 45 days; 28 (2) on second conviction, the license of the premises involved may not 29 be revoked, but may be suspended for not more than 90 days; 30 (3) on third conviction, the license of the premises involved may be 31 suspended or revoked.

01 * Sec. 125. AS 04.16.180(e) is amended to read: 02 (e) In this section, 03 (1) "conviction" includes a conviction of a violation, a 04 misdemeanor, and a felony; 05 (2) [THE TERMS] "second conviction" and "third conviction" include 06 only convictions for violations that occur within five years after [OF] the first 07 conviction; the [. THE] terms refer to the cumulative number of convictions of a 08 licensee of any combination of violations of the provisions of this title, regulations 09 adopted under this title, or ordinances adopted under AS 04.21.010; [. THE TERMS] 10 "second conviction" and "third conviction" include a conviction of the agent or 11 employee of a licensee of a violation of a law, regulation, or ordinance if the 12 conviction constitutes a ground for suspension or revocation under 13 AS 04.11.370(a)(5). 14 * Sec. 126. AS 04.16.180 is amended by adding new subsections to read: 15 (f) In addition to the criminal penalties specified in this title and AS 12.55, a 16 holder of a license under this title who is convicted of a crime or offense involving the 17 violation of a provision of this title or a regulation adopted under this title is subject to 18 suspension or revocation of the license under this section and other administrative 19 penalties imposed by the board. For purposes of administrative penalties under this 20 subsection, each violation is a separate offense. 21 (g) The holder of a license subject to suspension or revocation under (b)(2) or 22 (3) of this section may request a hearing to petition the board to reduce the 23 administrative penalty. The board may reduce the administrative penalty if the 24 licensee shows, by a preponderance of the evidence, that 25 (1) the licensee complied with the alcohol server education course 26 requirement of AS 04.21.025 and adopted and enforced a compliance program and a 27 disciplinary program for agents and employees of the licensee; 28 (2) the licensee has a pattern and practice of exercising the degree of 29 care required under AS 04.16.030; 30 (3) the licensee posted warning signs as required under AS 04.21.065; 31 and

01 (4) in the case of a conviction for a violation of AS 04.16.030 or 02 04.16.052, the agent or employee convicted under AS 04.16.030 or 04.16.052 03 completed an alcohol server education course under AS 04.21.025. 04 * Sec. 127. AS 04.16.220(a) is amended to read: 05 (a) The following are subject to forfeiture: 06 (1) alcoholic beverages manufactured, sold, offered for sale, possessed 07 for sale, or bartered or exchanged for goods and services in this state in violation of 08 AS 04.09.060, 04.09.370, or AS 04.11.010; alcoholic beverages possessed, stocked, 09 warehoused, or otherwise stored in violation of AS 04.21.060; alcoholic beverages 10 sold or offered for sale in violation of a local option adopted under AS 04.11.491; 11 alcoholic beverages transported into the state and sold to persons not licensed under 12 this title [CHAPTER] in violation of AS 04.16.170(b); alcoholic beverages 13 transported in violation of AS 04.09.750 or AS 04.16.125; 14 (2) materials and equipment used in the manufacture, sale, offering for 15 sale, possession for sale, or barter or exchange of alcoholic beverages for goods and 16 services in this state in violation of AS 04.09.060, 04.09.370, or AS 04.11.010; 17 materials and equipment used in the stocking, warehousing, or storage of alcoholic 18 beverages in violation of AS 04.21.060; materials and equipment used in the sale or 19 offering for sale of an alcoholic beverage in an area in violation of a local option 20 adopted under AS 04.11.491; 21 (3) aircraft, vehicles, or vessels used to transport or facilitate the 22 transportation of 23 (A) alcoholic beverages manufactured, sold, offered for sale, 24 possessed for sale, or bartered or exchanged for goods and services in this state 25 in violation of AS 04.09.060, 04.09.370, or AS 04.11.010; 26 (B) property stocked, warehoused, or otherwise stored in 27 violation of AS 04.21.060; 28 (C) alcoholic beverages imported into a municipality or 29 established village in violation of AS 04.11.499(a); 30 (4) alcoholic beverages found on licensed premises that do not bear 31 federal excise stamps if excise stamps are required under federal law;

01 (5) alcoholic beverages, materials, or equipment used in violation of 02 AS 04.16.175; 03 (6) money, securities, negotiable instruments, or other things of value 04 used in financial transactions or items of value purchased from the proceeds derived 05 from activity prohibited under AS 04.09.060, 04.09.370, or AS 04.11.010 or in 06 violation of a local option adopted under AS 04.11.491; 07 (7) a firearm used in furtherance of a violation of this title. 08 * Sec. 128. AS 04.16.220(d) is amended to read: 09 (d) Property subject to forfeiture under (a) of this section may be forfeited 10 (1) upon conviction of a person for a violation of AS 04.09.060, 11 04.09.370, 04.09.750, AS 04.11.010, 04.11.499, AS 04.16.125, AS 04.21.060, or 12 AS 04.11.501 or an ordinance adopted under AS 04.11.501; or 13 (2) upon judgment by the superior court in a proceeding in rem that the 14 property was used in a manner subjecting it to forfeiture under (a) of this section. 15 * Sec. 129. AS 04.16.220(g) is amended to read: 16 (g) It is no defense in an in rem forfeiture proceeding brought under (d)(2) of 17 this section that a criminal proceeding is pending or has resulted in conviction or 18 acquittal of a person charged with violating AS 04.09.060, 04.09.370, AS 04.11.010, 19 04.11.499, or AS 04.21.060. 20 * Sec. 130. AS 04.16.220(i) is amended to read: 21 (i) Upon conviction for a violation of AS 04.09.060, 04.09.370, AS 04.11.010, 22 or 04.11.499(a), if an aircraft, vehicle, or watercraft is subject to forfeiture under (a) of 23 this section, the court shall, subject to remission to innocent parties under this section, 24 (1) order the forfeiture of an aircraft to the state; 25 (2) order the forfeiture of a vehicle or watercraft if 26 (A) the defendant has a prior felony conviction for a violation 27 of AS 11.41 or a similar law in another jurisdiction; 28 (B) the defendant is on felony probation or parole; 29 (C) the defendant has a prior conviction for violating 30 AS 04.11.010 or 04.11.499(a); or 31 (D) the quantity of alcohol transported in violation of this title

01 was twice the presumptive amounts in AS 04.11.010(c). 02 * Sec. 131. AS 04.21 is amended by adding a new section to read: 03 Sec. 04.21.012. Keg registration. (a) A person may not purchase a keg or 04 similar container holding four or more gallons of an alcoholic beverage unless the 05 person provides proof that the person is over 21 years of age and completes and signs 06 a registration form. The purchaser of a keg or similar container holding four or more 07 gallons of an alcoholic beverage may not remove or obliterate the temporary 08 identifying tag on the keg or container. 09 (b) A licensee or an agent or employee of a licensee who sells or offers for 10 sale a keg or similar container holding four or more gallons of an alcoholic beverage 11 shall require a purchaser to show acceptable proof of age under AS 04.21.050(b) and 12 sign the sworn statement on a registration form. The licensee shall complete the 13 registration form and affix a temporary tag with a unique identifier to the keg or 14 container before releasing the container to the purchaser. The licensee shall retain a 15 copy of the form for one year and make the form available for inspection. 16 (c) The board shall prescribe a registration form for use by licensees and 17 purchasers. The board may approve for use a registration form adopted by a local 18 governing body. A registration form must include 19 (1) the name of the seller; 20 (2) the name of the purchaser; 21 (3) a description of the proof of age provided by the buyer, including 22 the identification number, if any; 23 (4) the unique identifier on the temporary tag attached to the keg or 24 container under (b) of this section. 25 (d) A licensee or an agent or employee of a licensee who sells a keg or similar 26 container holding four or more gallons of an alcoholic beverage without completing a 27 registration form or affixing a temporary identification tag to the keg or container 28 commits the crime of selling alcoholic beverages in an unregistered keg. 29 (e) A person who is not licensed under this title or the employee or agent of a 30 person who is not licensed under this title who possesses a keg or similar container 31 holding four or more gallons of an alcoholic beverage without a temporary

01 identification tag commits the crime of possessing alcoholic beverages in an 02 unregistered keg. 03 (f) Selling alcoholic beverages in an unregistered keg is a violation. 04 (g) Possessing alcoholic beverages in an unregistered keg is a violation and is 05 punishable by a fine of $100. 06 * Sec. 132. AS 04.21.020(a) is amended to read: 07 (a) Except as provided under (b) and (d) of this section, a person who provides 08 alcoholic beverages to another person may not be held civilly liable for injuries 09 resulting from the intoxication of that person unless the person who provides the 10 alcoholic beverages holds a license authorized under AS 04.09.020 - 04.09.360 11 [AS 04.11.080 - 04.11.220] or is an agent or employee of [SUCH] a licensee and 12 (1) the alcoholic beverages are provided to a person under [THE AGE 13 OF] 21 years of age in violation of AS 04.16.051, unless the licensee, agent, or 14 employee secures in good faith from the person a signed statement, liquor 15 identification card, or driver's license meeting the requirements of AS 04.21.050(a) 16 and (b), that indicates that the person is 21 years of age or older; or 17 (2) the alcoholic beverages are provided to a drunken person in 18 violation of AS 04.16.030. 19 * Sec. 133. AS 04.21.020(b) is amended to read: 20 (b) A person who sells or barters an alcoholic beverage to another person in 21 violation of AS 04.09.060, 04.09.370, or AS 04.11.010 is strictly liable (1) to the 22 recipient or another person for civil damages if, while under the influence of the 23 alcoholic beverage, the person receiving the alcoholic beverage engages in conduct 24 that results in civil damages and the recipient's being under the influence of the 25 alcoholic beverage substantially contributes to the civil damages; and (2) for the cost 26 to the state or a political subdivision of the state to criminally prosecute a person who 27 receives an alcoholic beverage from a person who violates AS 04.11.010 if the 28 prosecution results from the violation of AS 04.11.010 described in this subsection. 29 * Sec. 134. AS 04.21.025(a) is repealed and reenacted to read: 30 (a) Except as provided under (e) and (f) of this section, as a condition of 31 issuance or renewal of a license or conditional contractor's permit and selling alcoholic

01 beverages under a license or conditional contractor's permit, the board shall require a 02 licensee or permittee who sells or serves alcoholic beverages and a licensee's or 03 permittee's agents and employees who sell or serve alcoholic beverages or check the 04 identification of a patron to complete an alcohol server education course approved by 05 the board. 06 * Sec. 135. AS 04.21.025(b) is amended to read: 07 (b) The subjects that are included in an approved alcohol server education 08 course shall be determined under regulations adopted by the board. In approving 09 alcohol server education courses, the board shall consider the needs of both urban and 10 rural licensees regarding access to an approved alcohol server education course. A 11 licensee, permittee, agent, or employee who sells or serves alcoholic beverages shall 12 keep the card described in (c) of this section or other proof acceptable to the board of 13 successful completion of an approved alcohol server education course on the licensed 14 premises during working hours. 15 * Sec. 136. AS 04.21.025(c) is amended to read: 16 (c) A licensee, permittee, agent, or employee shall complete the course 17 required under (a) of this section and pass a written test demonstrating an 18 understanding of the course subjects not more than 30 days after being licensed, 19 permitted, or employed. The course provider shall issue a card to each individual who 20 completes the course and passes the written test. A card issued under this subsection is 21 valid for three years from the date of issue. A licensee, permittee, agent, or employee 22 may renew a card issued under this section; to renew the card, the licensee, permittee, 23 agent, or employee must pass a written test demonstrating an understanding of the 24 course subjects. Notwithstanding the 30-day period for completing the course and 25 passing the written test under this subsection, a person may not sell or serve 26 alcoholic beverages or check the identification of a patron at a permitted event 27 under AS 04.09.600 - 04.09.690 unless the person possesses a valid card issued 28 before the event. 29 * Sec. 137. AS 04.21.025 is amended by adding new subsections to read: 30 (f) This section does not apply to the following licenses: 31 (1) brewery manufacturer license under AS 04.09.020, unless the

01 licensee holds a manufacturer sampling endorsement; 02 (2) winery manufacturer license under AS 04.09.030, unless the 03 licensee holds a manufacturer sampling endorsement; 04 (3) distillery manufacturer license under AS 04.09.040, unless the 05 licensee holds a manufacturer sampling endorsement; 06 (4) general wholesale license under AS 04.09.100; 07 (5) limited wholesale brewed beverage and wine license under 08 AS 04.09.110; 09 (6) winery direct shipment license under AS 04.09.360. 10 (g) A person who violates (a) - (c) or (e) of this section commits the offense of 11 failure to comply with alcohol server education requirements. 12 (h) Failure to comply with alcohol server education requirements is a 13 violation. 14 * Sec. 138. AS 04.21.050(a) is amended to read: 15 (a) If a licensee or an agent or employee of the licensee questions or has 16 reason to question whether a person entering licensed premises, or ordering, 17 purchasing, attempting to purchase, or otherwise procuring or attempting to procure 18 alcoholic beverages, 19 (1) has attained the age of 21 years or is entering without consent in 20 violation of AS 04.16.049(a)(2) [AS 04.16.049(a)(3)] and has not attained the age of 21 16 years, that licensee, agent, or employee shall require the person to furnish proof of 22 age acceptable under (b) of this section or proof of consent in a form determined by 23 the board; if the person questioned does not furnish proof of age acceptable under (b) 24 of this section, or if a licensee, agent, or employee questions or has reason to question 25 the validity of the proof of age furnished, the licensee, employee, or agent shall require 26 the person to sign a statement that the person is over the age of 21 or 16 years, as 27 appropriate; this statement shall be made on a form prepared by and furnished to the 28 licensee by the board; 29 (2) is restricted from purchasing alcoholic beverages under 30 AS 04.16.160, the licensee, agent, or employee may, but has no duty or obligation to, 31 require the person to furnish proof acceptable under (b) of this section that the person

01 is not restricted from purchasing alcoholic beverages or require the person to sign a 02 statement that the person is not restricted from purchasing alcoholic beverages under 03 AS 04.16.160; this statement shall be made on a form prepared by and furnished to the 04 licensee by the board. 05 * Sec. 139. AS 04.21.060 is amended by adding new subsections to read: 06 (b) A licensee who stores alcoholic beverages elsewhere than on the licensed 07 premises and who fails to comply with (a)(1) - (3) of this section commits the offense 08 of unauthorized warehousing. 09 (c) Unauthorized warehousing is a violation. 10 * Sec. 140. AS 04.21.065(a) is repealed and reenacted to read: 11 (a) A holder of one of the following types of licenses or permits shall post on 12 the licensed or designated premises three separate warning signs as described in (b) of 13 this section: 14 (1) brewery manufacturer license under AS 04.09.020 with a 15 manufacturer sampling endorsement under AS 04.09.410; 16 (2) winery manufacturer license under AS 04.09.030 with a 17 manufacturer sampling endorsement under AS 04.09.410; 18 (3) distillery manufacturer license under AS 04.09.040 with a 19 manufacturer sampling endorsement under AS 04.09.410; 20 (4) beverage dispensary license under AS 04.09.200; 21 (5) restaurant or eating place license under AS 04.09.210; 22 (6) club license under AS 04.09.220; 23 (7) package store license under AS 04.09.230; 24 (8) pub license under AS 04.09.240; 25 (9) theater license under AS 04.09.250; 26 (10) common carrier dispensary license under AS 04.09.260; 27 (11) sporting activity or event license under AS 04.09.270; 28 (12) outdoor recreation lodge license under AS 04.09.280; 29 (13) golf course license under AS 04.09.290; 30 (14) destination resort license under AS 04.09.300; 31 (15) brewery retail license under AS 04.09.310;

01 (16) winery retail license under AS 04.09.320; 02 (17) distillery retail license under AS 04.09.330; 03 (18) beverage dispensary tourism license under AS 04.09.340; 04 (19) seasonal restaurant or eating place tourism license under 05 AS 04.09.350; 06 (20) beverage dispensary caterer's permit under AS 04.09.610; 07 (21) restaurant caterer's dining permit under AS 04.09.620; 08 (22) club caterer's permit under AS 04.09.630; 09 (23) art exhibit event permit under AS 04.09.640; 10 (24) music festival permit under AS 04.09.645; 11 (25) nonprofit organization event permit under AS 04.09.650; 12 (26) package store tasting event permit under AS 04.09.670; 13 (27) conditional contractor's permit under AS 04.09.690; 14 (28) another license or permit issued by the board authorizing 15 consumption of alcoholic beverages. 16 * Sec. 141. AS 04.21 is amended by adding new sections to read: 17 Sec. 04.21.072. Fines and other criminal penalties. (a) A violation under this 18 title, unless otherwise specified in the provision of this title defining the offense, is 19 punishable by a fine of $250. 20 (b) A misdemeanor or felony under this title, unless otherwise specified in the 21 provision of this title defining the offense, is punishable as provided in AS 12.55. 22 Sec. 04.21.074. Bail forfeiture schedule. The supreme court shall establish by 23 rule or order a schedule of bail amounts for violations under this title that allow the 24 disposition of a citation without a court appearance. The bail amount may not exceed 25 the maximum penalty prescribed by law for the violation. 26 Sec. 04.21.076. Suspension of fine or sentence. The court may not suspend a 27 fine for an offense other than a misdemeanor or felony under this title, or suspend 28 imposition or execution of sentence for an offense other than a misdemeanor or felony 29 under this title, unless otherwise expressly provided in this title. 30 * Sec. 142. AS 04.21.078 is amended to read: 31 Sec. 04.21.078. Court records of persons under 21 years of age. The Alaska

01 Court System may not publish on a publicly available website the court records of a 02 violation of AS 04.16.049, [OR] 04.16.050, 04.16.060(g), or a similar ordinance of a 03 municipality, if the violation was charged separately and was not joined with any other 04 minor offense or criminal charge at the time of filing. 05 * Sec. 143. AS 04.21.080(b)(6) is amended to read: 06 (6) "designated premises" means any or all designated portions of a 07 building or structure, rooms or enclosures in the building or structure, or real estate 08 leased, used, controlled, or operated by a licensee or permittee for the purpose for 09 which the license or permit is issued by the board at the location of the site for which 10 the license or permit is issued; 11 * Sec. 144. AS 04.21.080(b)(15) is amended to read: 12 (15) "licensed premises" means any or all designated portions of a 13 building or structure, rooms or enclosures in the building or structure, or real estate 14 leased, used, controlled, or operated by a licensee in the conduct of business for which 15 the licensee is licensed by the board at the specific address for which the license or an 16 endorsement to the license is issued; 17 * Sec. 145. AS 04.21.080(b) is amended by adding new paragraphs to read: 18 (21) "bona fide restaurant" means an establishment or a portion of an 19 establishment where, during all times alcoholic beverages are served or consumed, 20 (A) the patron's principal activity is consumption of food; and 21 (B) a variety of types of food items appropriate for meals is 22 prepared on site and available for sale as shown on a menu provided to patrons 23 and filed with the board; 24 (22) "brewed beverage" means an alcoholic beverage made by 25 fermenting cereal grains, including beer and malt beverages, sake, and kombucha; 26 (23) "calendar year" means the period beginning January 1 and ending 27 December 31; 28 (24) "cider" means a type of wine made primarily from fermented 29 apples, apple juice, or concentrate; 30 (25) "distilled spirit" means an alcoholic beverage that is first 31 fermented and then distilled;

01 (26) "golf course" means a course that is open to the public, having at 02 least nine holes and covering at least 2,950 yards; 03 (27) "kombucha" means a brewed beverage made from fermented tea 04 and containing at least one-half percent alcohol by volume; 05 (28) "mead" means a type of wine made primarily from honey; 06 (29) "sake" means a type of brewed beverage made primarily from 07 fermented rice; 08 (30) "wine" means an alcoholic beverage made from fermented grapes 09 or other fruit or honey. 10 * Sec. 146. AS 05.15.690(48) is amended to read: 11 (48) "vendor" means a business whose primary activity is not regulated 12 by this chapter but that 13 (A) is engaged in the sale of pull-tabs on behalf of a permittee; 14 (B) holds a business license under AS 43.70; and 15 (C) is an establishment holding a 16 (i) beverage dispensary license under AS 04.09.200 or 17 beverage dispensary tourism license under AS 04.09.340 without a 18 restaurant endorsement issued under AS 04.09.450 [AS 04.11.090] 19 that [HAS NOT BEEN DESIGNATED BY THE ALCOHOLIC 20 BEVERAGE CONTROL BOARD UNDER AS 04.16.049(a)(2) - (3),] 21 has not been exempted by the Department of Labor and Workforce 22 Development under AS 04.16.049(c) and AS 23.10.355 [,] and, if the 23 establishment is a hotel, motel, resort, or similar business that caters to 24 the traveling public as a substantial part of its business, does not allow 25 the sale of pull-tabs in a dining room, banquet room, guest room, or 26 other public areas other than a room in which there is regularly 27 maintained a fixed counter or service bar that has plumbing 28 connections to permanent plumbing at which alcoholic beverages are 29 sold or served to members of the public for consumption; 30 (ii) package store license under AS 04.09.230 31 [AS 04.11.150];

01 * Sec. 147. AS 09.65.315(b) is amended to read: 02 (b) A person licensed under AS 04.09.020 - 04.09.360 [AS 04.11.080 - 03 04.11.255], or an agent or employee of the person, is not liable for damages resulting 04 from a motor vehicle accident described under (a) of this section. A person or entity 05 that participates in making arrangements for transportation of a vehicle under (a) of 06 this section is not liable for damages resulting from a motor vehicle accident described 07 in (a) of this section. 08 * Sec. 148. AS 11.61.220(d) is amended to read: 09 (d) In a prosecution under (a)(2) of this section, it is 10 (1) an affirmative defense that 11 (A) [REPEALED] 12 (B) the loaded firearm was a concealed handgun as defined in 13 AS 18.65.790; and 14 (C) the possession occurred at a place covered by a restaurant 15 or eating place license under AS 04.09.210, seasonal restaurant or eating 16 place tourism license under AS 04.09.350, or restaurant endorsement 17 under AS 04.09.450 [DESIGNATED AS A RESTAURANT FOR THE 18 PURPOSES OF AS 04.16.049] and the defendant did not consume 19 intoxicating liquor at the place; 20 (2) a defense that the defendant, at the time of possession, was on 21 business premises 22 (A) owned by or leased by the defendant; or 23 (B) in the course of the defendant's employment for the owner 24 or lessee of those premises. 25 * Sec. 149. AS 11.76.100(b) is amended to read: 26 (b) Notwithstanding the provisions of (a) of this section, a person who 27 maintains a vending machine is not in violation of (a)(3) of this section if the vending 28 machine is located 29 (1) on premises licensed as a beverage dispensary under AS 04.09.200 30 or 04.09.340 [AS 04.11.090], licensed as a club under AS 04.09.220 [AS 04.11.110], 31 or licensed as a package store under AS 04.09.230 [AS 04.11.150]; and

01 (A) as far as practicable from the primary entrance; and 02 (B) in a place that is directly and continually supervised by a 03 person employed on the licensed premises during the hours the vending 04 machine is accessible to the public; or 05 (2) in an employee break room or other controlled area of a private 06 work place that is not generally considered a public place and the room or area 07 contains a posted warning sign at least 11 inches by 14 inches indicating that 08 possession of tobacco by a person under 19 years of age is prohibited under 09 AS 11.76.105. 10 * Sec. 150. AS 11.76.107(a) is amended to read: 11 (a) A person commits the offense of failure to supervise a vending machine if 12 the person owns premises licensed as a beverage dispensary under AS 04.09.200 or 13 04.09.340 [AS 04.11.090], licensed as a club under AS 04.09.220 [AS 04.11.110], or 14 licensed as a package store under AS 04.09.230 [AS 04.11.150] and with criminal 15 negligence fails to have an employee supervise a vending machine on those premises 16 that dispenses cigarettes, cigars, tobacco, products containing tobacco, electronic 17 smoking products, or products containing nicotine as required by 18 AS 11.76.100(b)(1)(B) and 11.76.109(d)(1)(B). 19 * Sec. 151. AS 11.76.109(d) is amended to read: 20 (d) Notwithstanding (a)(3) of this section, a person who maintains a vending 21 machine is not in violation of (a)(3) of this section if the vending machine is located 22 (1) on premises licensed as a beverage dispensary under AS 04.09.200 23 or 04.09.340 [AS 04.11.090], licensed as a club under AS 04.09.220 [AS 04.11.110], 24 or licensed as a package store under AS 04.09.230 [AS 04.11.150], and is located 25 (A) as far as practicable from the primary entrance; and 26 (B) in a place that is directly and continually supervised by a 27 person employed on the licensed premises during the hours the vending 28 machine is accessible to the public; or 29 (2) in an employee break room or other controlled area of a private 30 work place that is not generally considered a public place and the room or area 31 contains a posted warning sign at least 11 inches by 8.5 inches indicating that

01 possession of electronic smoking products or products containing nicotine by a person 02 under 19 years of age without a prescription is prohibited under this section 03 [AS 11.76.109]. 04 * Sec. 152. AS 12.62.400(a) is amended to read: 05 (a) To obtain a national criminal history record check for determining a 06 person's qualifications for a license, permit, registration, employment, or position, a 07 person shall submit the person's fingerprints to the department with the fee established 08 by AS 12.62.160. The department may submit the fingerprints to the Federal Bureau 09 of Investigation to obtain a national criminal history record check of the person for the 10 purpose of evaluating a person's qualifications for 11 (1) a license or conditional contractor's permit to manufacture, sell, 12 offer for sale, possess for sale or barter, traffic in, or barter an alcoholic beverage 13 under AS 04.09 [AS 04.11]; 14 (2) licensure as a mortgage lender, a mortgage broker, or a mortgage 15 loan originator under AS 06.60; 16 (3) admission to the Alaska Bar Association under AS 08.08; 17 (4) licensure as a collection agency operator under AS 08.24; 18 (5) a certificate of fitness to handle explosives under AS 08.52; 19 (6) licensure as a massage therapist under AS 08.61; 20 (7) licensure to practice nursing or certification as a nurse aide under 21 AS 08.68; 22 (8) certification as a real estate appraiser under AS 08.87; 23 (9) a position involving supervisory or disciplinary power over a minor 24 or dependent adult for which criminal justice information may be released under 25 AS 12.62.160(b)(9); 26 (10) a teacher certificate under AS 14.20; 27 (11) a registration or license to operate a marijuana establishment 28 under AS 17.38; 29 (12) admittance to a police training program under AS 18.65.230 or for 30 certification as a police officer under AS 18.65.240 if that person's prospective 31 employer does not have access to a criminal justice information system;

01 (13) licensure as a security guard under AS 18.65.400 - 18.65.490; 02 (14) a concealed handgun permit under AS 18.65.700 - 18.65.790; 03 (15) licensure as an insurance producer, managing general agent, 04 reinsurance intermediary broker, reinsurance intermediary manager, surplus lines 05 broker, or independent adjuster under AS 21.27; 06 (16) serving and executing process issued by a court by a person 07 designated under AS 22.20.130; 08 (17) a school bus driver license under AS 28.15.046; 09 (18) licensure as an operator or an instructor for a commercial driver 10 training school under AS 28.17; 11 (19) registration as a broker-dealer, agent, investment adviser 12 representative, or investment adviser under AS 45.56.300 - 45.56.350; 13 (20) licensure, license renewal, certification, certification renewal, or 14 payment from the Department of Health and Social Services of an individual and an 15 entity subject to the requirements for a criminal history check under AS 47.05.310, 16 including 17 (A) a public home care provider described in AS 47.05.017; 18 (B) a provider of home and community-based waiver services 19 financed under AS 47.07.030(c); 20 (C) a case manager to coordinate community mental health 21 services under AS 47.30.530; 22 (D) an entity listed in AS 47.32.010(b), including an owner, 23 officer, director, member, partner, employee, volunteer, or contractor of an 24 entity; or 25 (E) an individual or entity not described in (A) - (D) of this 26 paragraph that is required by statute or regulation to be licensed or certified by 27 the Department of Health and Social Services or that is eligible to receive 28 payments, in whole or in part, from the Department of Health and Social 29 Services to provide for the health, safety, and welfare of persons who are 30 served by the programs administered by the Department of Health and Social 31 Services.

01 * Sec. 153. AS 18.56.230(b) is amended to read: 02 (b) The corporation may not authorize the commercial use of space in a multi- 03 unit residential housing development owned or financed by the corporation for 04 (1) a business that offers adult entertainment; 05 (2) the sale of alcoholic beverages, unless the sale [IS IN A 06 RESTAURANT OR EATING PLACE LICENSED UNDER AS 04.11.100 OR] is in 07 premises 08 (A) licensed under a restaurant or eating place license 09 issued by the Alcoholic Beverage Control Board under AS 04.09.210 or 10 seasonal restaurant or eating place tourism license issued by the Alcoholic 11 Beverage Control Board under AS 04.09.350; or 12 (B) covered by a restaurant endorsement issued 13 [DESIGNATED] by the Alcoholic Beverage Control Board under 14 AS 04.09.450 [AS A RESTAURANT UNDER AS 04.16.049]; 15 (3) substance abuse treatment; or 16 (4) a business that primarily sells, transfers, or stores cigarettes or 17 tobacco-related products. 18 * Sec. 154. AS 18.65.085(c) is amended to read: 19 (c) The Department of Public Safety may establish and administer a reward 20 program, and provide grants to municipalities, established villages, and, at the request 21 of a municipality or established village, to a nonprofit association that administers a 22 village public safety officer program, for reward programs leading to the apprehension 23 and conviction of persons who violate AS 04.09.060, 04.09.370, or AS 04.11.010 by 24 selling, importing, or possessing alcoholic beverages in violation of a local option 25 adopted by a municipality or established village under AS 04.11.491. 26 * Sec. 155. AS 18.80.230(b) is amended to read: 27 (b) Notwithstanding (a) of this section, a physical fitness facility may limit 28 public accommodation to only males or only females to protect the privacy interests of 29 its users. Public accommodation may be limited under this subsection only to those 30 rooms in the facility that are primarily used for weight loss, aerobic, and other 31 exercises, or for resistance weight training. Public accommodation may not be limited

01 under this subsection to rooms in the facility primarily used for other purposes, 02 including conference rooms, dining rooms, and premises licensed under AS 04.09 03 [AS 04.11]. This subsection does not apply to swimming pools or golf courses. 04 * Sec. 156. AS 43.60 is amended by adding a new section to read: 05 Sec. 43.60.060. Winery direct shipment tax; statement; audit. A holder of a 06 winery direct shipment license under AS 04.09.360 who sells wine in the state or who 07 consigns shipments of wine into the state shall 08 (1) be subject to the taxes provided under AS 43.60.010(a); 09 (2) provide monthly statements and other information required under 10 AS 43.60.020 with the remittance of a tax collected under this section; 11 (3) allow the Department of Revenue to perform an audit of the 12 holder's records upon request; and 13 (4) consent to the jurisdiction of a state court concerning enforcement 14 of this section relating to the collection of taxes and other money owed by the holder, 15 including interest and penalties. 16 * Sec. 157. AS 43.70.105(a) is amended to read: 17 (a) This chapter does not apply to 18 (1) a fisheries business; 19 (2) the sale of liquor under a license issued under AS 04.09 20 [AS 04.11]; 21 (3) an insurance business; 22 (4) a mining business; 23 (5) supplying services as an employee; 24 (6) furnishing goods or services by a person who does not represent to 25 be regularly engaged in furnishing goods or services; 26 (7) the activities of an investment club; in this paragraph, 27 (A) "investment club" means a group of individuals, 28 incorporated or otherwise organized, that engages primarily in investing in 29 securities, that does not sell investment services to another person, that does 30 not advertise, and the primary purpose of which is educational; 31 (B) "security" has the meaning given in AS 45.56.900.

01 * Sec. 158. AS 45.45.590(1) is amended to read: 02 (1) "business proprietor" means a person who owns a place of business 03 in which the public may assemble and in which copyrighted musical works may be 04 performed, broadcasted, or otherwise transmitted; in this paragraph, "place of 05 business" includes a store, professional office, sports facility, entertainment facility, 06 restaurant, hotel, or [AN] alcoholic beverage establishment licensed under AS 04.09 07 [AS 04.11]; 08 * Sec. 159. The uncodified law of the State of Alaska is amended by adding a new section 09 to read: 10 DIRECT COURT RULE AMENDMENT. Rule 17(h), Alaska Rules of Minor 11 Offense Procedure, is amended to read: 12 (h) Joinder Limits. A prosecutor may not join a violation of AS 04.16.049, 13 [OR] 04.16.050, or 04.16.060(g) or a similar municipal ordinance with a related 14 criminal charge. 15 * Sec. 160. AS 04.11.070, 04.11.080, 04.11.090, 04.11.100, 04.11.110, 04.11.115, 16 04.11.120, 04.11.130, 04.11.135, 04.11.140, 04.11.150, 04.11.160, 04.11.170, 04.11.180, 17 04.11.200, 04.11.210, 04.11.220, 04.11.225, 04.11.230, 04.11.240, 04.11.250, 04.11.255, 18 04.11.400(d), 04.11.400(h), 04.11.400(j); AS 04.16.070, 04.16.100, 04.16.180(a), 19 04.16.180(d), 04.16.210; and AS 04.21.080(b)(3) are repealed. 20 * Sec. 161. AS 04.11.400(e) and 04.11.400(g) are repealed. 21 * Sec. 162. AS 04.09.270(f) is repealed January 1, 2029. 22 * Sec. 163. Sections 166(a) and 167 of this Act are repealed January 1, 2021. 23 * Sec. 164. The uncodified law of the State of Alaska is amended by adding a new section 24 to read: 25 APPLICABILITY. (a) The provisions of secs. 10 - 21, 31, 81 - 84, 86 - 131, 136 - 26 139, 141, and 149 - 151 of this Act apply to offenses committed on or after the effective date 27 of each of those respective sections. 28 (b) References to previous convictions in AS 04.11.270(a), as amended by sec. 24 of 29 this Act, AS 04.16.180(b), as amended by sec. 124 of this Act, AS 04.16.180(e), as amended 30 by sec. 125 of this Act, and AS 04.16.220(i), as amended by sec. 130 of this Act, apply to 31 convictions occurring before, on, or after the effective date of each of those respective

01 sections. 02 * Sec. 165. The uncodified law of the State of Alaska is amended by adding a new section 03 to read: 04 TRANSITION: IMPLEMENTATION. Notwithstanding sec. 171 of this Act, to timely 05 provide for the issuance, renewal, and transfer of licenses, endorsements, and permits 06 beginning on January 1, 2021, the Alcoholic Beverage Control Board may immediately 07 implement secs. 3, 4, 9, 10, 22, 24, 71, and 166 of this Act by sending out notices relating to, 08 accepting applications for, and collecting fees for licenses, endorsements, and permits as if 09 secs. 3, 4, 9, 10, 22, 24, 71, and 166 of this Act were in effect at the time of implementation, 10 so long as licenses, endorsements, and permits are not issued under those sections before 11 January 1, 2021. 12 * Sec. 166. The uncodified law of the State of Alaska is amended by adding a new section 13 to read: 14 TRANSITION: CONVERSION OF APPLICATIONS AND LICENSES. (a) 15 Notwithstanding the population limits under AS 04.11.400(a) or (b), the Alcoholic Beverage 16 Control Board shall convert, within 90 days after the effective date of this subsection, 17 (1) a license issued or renewed as necessary for the public convenience under 18 former AS 04.11.400(e) or 04.11.400(g), repealed by sec. 161 of this Act, into a restaurant or 19 eating place license under AS 04.11.100; if the license was issued as a restaurant or eating 20 place license, or into a beverage dispensary license under AS 04.11.090, if the license was 21 issued as a beverage dispensary license under former AS 04.11.400(j), as that subsection read 22 on June 5, 1985; 23 (2) an application submitted to the board that meets all of the requirements 24 under former AS 04.11.400(e) or 04.11.400(g), repealed by sec. 161 of this Act, into an 25 application for a restaurant or eating place license under AS 04.11.100. 26 (b) Notwithstanding the population limits under AS 04.11.400(a) or (b), the Alcoholic 27 Beverage Control Board shall convert, within 90 days after the effective date of this 28 subsection, 29 (1) a license issued or renewed as a bottling works license under former 30 AS 04.11.120, repealed by sec. 160 of this Act, into a brewery manufacturer license under 31 AS 04.09.020, added by sec. 10 of this Act, or into a winery manufacturer license under

01 AS 04.09.030, added by sec. 10 of this Act; 02 (2) a license issued or renewed as a brewpub license under former 03 AS 04.11.135, repealed by sec. 160 of this Act, into a brewery manufacturer license under 04 AS 04.09.020, added by sec. 10 of this Act; 05 (3) a license issued or renewed as a beverage dispensary license or restaurant 06 or eating place license for a premises that is a theater under former AS 04.11.090 or 07 AS 04.11.100, repealed by sec. 160 of this Act, into a theater license under AS 04.09.250, 08 added by sec. 10 of this Act; 09 (4) a license issued or renewed as a wholesale license under former 10 AS 04.11.160(a), repealed by sec. 160 of this Act, into a general wholesale license under 11 AS 04.09.100, added by sec. 10 of this Act; 12 (5) a license issued or renewed as a wholesale license under former 13 AS 04.11.160(b), repealed by sec. 160 of this Act, into a limited wholesale brewed beverage 14 and wine license under AS 04.09.110, added by sec. 10 of this Act; 15 (6) a license issued or renewed as a beverage dispensary license under former 16 AS 04.11.400(d), repealed by sec. 160 of this Act, into a beverage dispensary tourism license 17 under AS 04.09.340, added by sec. 10 of this Act; 18 (7) a duplicate license issued or renewed as a duplicate beverage dispensary 19 license under former AS 04.11.090(e), repealed by sec. 160 of this Act, into a multiple fixed 20 counter endorsement under AS 04.09.420, added by sec. 10 of this Act. 21 (c) Notwithstanding the population limits under AS 04.11.400(a) or (b), the Alcoholic 22 Beverage Control Board may 23 (1) convert a license issued or renewed as a brewery license under former 24 AS 04.11.130, repealed by sec. 160 of this Act, into a brewery manufacturer license under 25 AS 04.09.020, added by sec. 10 of this Act, and a brewery retail license under AS 04.09.310, 26 added by sec. 10 of this Act, upon application by the licensee; 27 (2) convert an application submitted to the board that meets all of the 28 requirements under former AS 04.11.130, repealed by sec. 160 of this Act, into an application 29 for a brewery manufacturer license under AS 04.09.020, added by sec. 10 of this Act, and a 30 brewery retail license under AS 04.09.310, added by sec. 10 of this Act; 31 (3) issue a brewery manufacturer license under AS 04.09.020, added by sec.

01 10 of this Act, and a brewery retail license under AS 04.09.310, added by sec. 10 of this Act, 02 to an applicant who submits an application to the board under former AS 04.11.130, repealed 03 by sec. 160 of this Act, if the board converts the application under (2) of this subsection; 04 (4) convert a license issued or renewed as a winery license under former 05 AS 04.11.140, repealed by sec. 160 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 (5) convert an application submitted to the board that meets all of the 09 requirements under former AS 04.11.140, repealed by sec. 160 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 (6) issue a winery manufacturer license under AS 04.09.030, added by sec. 10 13 of this Act, and a winery retail license under AS 04.09.320, added by sec. 10 of this Act, to an 14 applicant who submits an application to the board under former AS 04.11.140, repealed by 15 sec. 160 of this Act, if the board converts the application under (5) of this subsection; 16 (7) convert a license issued or renewed as a distillery license under former 17 AS 04.11.170, repealed by sec. 160 of this Act, into a distillery manufacturer license under 18 AS 04.09.040, added by sec. 10 of this Act, and a distillery retail license under AS 04.09.330, 19 added by sec. 10 of this Act, upon application by the licensee; 20 (8) convert an application submitted to the board that meets all of the 21 requirements under former AS 04.11.170, repealed by sec. 160 of this Act, into an application 22 for a distillery manufacturer license under AS 04.09.040, added by sec. 10 of this Act, and a 23 distillery retail license under AS 04.09.330, added by sec. 10 of this Act; 24 (9) issue a distillery manufacturer license under AS 04.09.040, added by sec. 25 10 of this Act, and a distillery retail license under AS 04.09.330, added by sec. 10 of this Act, 26 to an applicant who submits an application to the board under former AS 04.11.170, repealed 27 by sec. 160 of this Act, if the board converts the application under (8) of this subsection; 28 (10) convert a license issued or renewed as a recreational site license under 29 former AS 04.11.210, repealed by sec. 160 of this Act, into a sporting activity or event license 30 under AS 04.09.270, added by sec. 10 of this Act, upon application by the licensee; 31 (11) establish an application form and procedure for conversion applications

01 under this subsection. 02 * Sec. 167. The uncodified law of the State of Alaska is amended by adding a new section 03 to read: 04 TRANSITION: SEASONAL RESTAURANT OR EATING PLACE LICENSE. (a) 05 Notwithstanding AS 04.11.080, the Alcoholic Beverage Control Board may issue a seasonal 06 restaurant or eating place tourism license to a person who files an application under 07 AS 04.11.260. 08 (b) A seasonal restaurant or eating place license authorizes a restaurant or eating place 09 to sell brewed beverages and wine for consumption only on the licensed premises for a period 10 not to exceed six months in each calendar year. 11 (c) The biennial seasonal restaurant or eating place tourism license fee is $1,250. 12 (d) The board may issue a license under this section only if 13 (1) the board determines that the licensed premises is a bona fide restaurant or 14 eating place; and 15 (2) the sale and service of food and alcoholic beverages and any other 16 business conducted on the licensed premises of the restaurant or eating place is under the sole 17 control of the licensee. 18 (e) The board may issue a license under this section only in a municipality or 19 established village that 20 (1) has a population of 40,000 or less; and 21 (2) receives more than 4,000 visitors a year, as determined by the board in 22 regulation. 23 (f) The board may issue a license or approve an application for the transfer of 24 ownership of a license under this section if it appears that issuance or transfer will encourage 25 the tourism trade. 26 (g) The holder of a seasonal restaurant or eating place tourism license shall ensure 27 that gross receipts from the sale of food for consumption on the licensed premises are not less 28 than the total amount of the gross receipts from the sale of alcoholic beverages for 29 consumption on the licensed premises in each calendar year. 30 (h) The board shall adopt a regulation establishing a formula to limit the number of 31 seasonal restaurant or eating place tourism licenses.

01 (i) The holder of a seasonal restaurant or eating place tourism license may provide 02 entertainment on or adjacent to the licensed premises only between the hours of 11:00 a.m. 03 and 11:00 p.m. unless additional hours are approved by the director upon the written request 04 of the licensee for a specific occasion. The director may not grant approval for additional 05 hours of entertainment on or adjacent to the licensed premises of an individual licensee more 06 than three times in a calendar year. In this subsection, "entertainment" includes dancing, 07 karaoke, live performances, or similar activities, but does not include recorded or broadcast 08 performances without live participation. 09 (j) A license issued under this section may be renewed under AS 04.09.350, added by 10 sec. 10 of this Act, on or after the effective date of sec. 10 of this Act. 11 (k) In this section, "bona fide restaurant" means an establishment or a portion of an 12 establishment where, during all times alcoholic beverages are served or consumed, 13 (1) the patron's principal activity is consumption of food; and 14 (2) a variety of types of food items appropriate for meals is prepared on site 15 and available for sale as shown on a menu provided to patrons and filed with the board. 16 * Sec. 168. The uncodified law of the State of Alaska is amended by adding a new section 17 to read: 18 TRANSITION: REGULATIONS. The Department of Commerce, Community, and 19 Economic Development and the Alcoholic Beverage Control Board may adopt regulations 20 necessary to implement the changes made by this Act. The regulations take effect under 21 AS 44.62 (Administrative Procedure Act), but not before the effective date of the law 22 implemented by the regulation. 23 * Sec. 169. Sections 33, 38, 40, 46, 50, 55, 161, 166(a), 166(c)(8), 167, and 168 of this Act 24 take effect immediately under AS 01.10.070(c). 25 * Sec. 170. Section 165 of this Act takes effect September 1, 2020. 26 * Sec. 171. Except as provided in secs. 169 and 170 of this Act, this Act takes effect 27 January 1, 2021.