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HCS CSSB 9(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 HOUSE CS FOR CS FOR SENATE BILL NO. 9(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 04.06.020(b) is amended to read: 05 (b) Except as provided in (c) of this section, at the time of appointment or 06 reappointment, one member of the board shall be from [ACTIVELY ENGAGED IN] 07 the public safety sector, one member of the board shall represent the general public, 08 one member of the board shall have resided in a rural area within the previous five 09 years, and two members of the board shall be actively engaged in the alcoholic 10 beverage industry. 11 * Sec. 3. AS 04.06.020(c) is amended to read: 12 (c) A member of the board may not hold a wholesale alcoholic beverage 13 license or be an officer, agent, or employee of a wholesale alcoholic beverage 14 enterprise. Not more than two members of the board may be engaged in the same 15 business, occupation, or profession. A board member from [ACTIVELY ENGAGED 16 IN] the public safety sector, from a rural area, or representing the general public may 17 not have, or have an immediate family member who has, a financial interest in a 18 business for which a license is issued. A board member representing the general public 19 may not be affiliated with the public safety sector or the public health sector. 20 * Sec. 4. AS 04.06.020(d)(3) is amended to read: 21 (3) "public safety sector" means a current or former peace officer, a 22 current or former municipal or state prosecutor, a former judicial officer, or a 23 current member of a profession that primarily has the authority to provide for the 24 welfare and protection of the general public through the enforcement of municipal, 25 state, or federal laws; 26 * Sec. 5. AS 04.06.075 is amended by adding a new subsection to read: 27 (c) The director shall prepare and submit to the board an annual budget for the 28 board that includes funding for administration, enforcement, education, training, and 29 prevention activities under this title. 30 * Sec. 6. AS 04.06.080 is amended to read: 31 Sec. 04.06.080. Delegation of authority. The director shall issue, renew,

01 transfer, suspend, or revoke all licenses, endorsements, and permits at the direction of 02 the board. However, notwithstanding AS 04.06.090(b) [AS 04.11.070], the board may 03 delegate authority to the director to temporarily grant or deny the issuance, renewal, or 04 transfer of licenses, endorsements, and permits. The director's temporary grant or 05 denial of the issuance, renewal, or transfer of a license, endorsement, or permit is not 06 binding on the board. The board may delegate to the director any other duty imposed 07 by this title except its power to propose and adopt regulations. 08 * Sec. 7. AS 04.06.090(b) is amended to read: 09 (b) Only the board may issue, renew, transfer, relocate, suspend, or 10 revoke a license or endorsement under this title. The board shall review all 11 applications for licenses and endorsements made under this title and may order the 12 director to issue, renew, revoke, transfer, or suspend licenses, endorsements, and 13 permits authorized under this title. 14 * Sec. 8. AS 04.06.090(e) is amended to read: 15 (e) The board shall promptly notify all licensees and municipalities of major 16 changes to this title and to regulations adopted under this title. However, if changes 17 only affect specific classifications of licenses, endorsements, and permits, the board 18 need only notify those licensees and municipalities directly affected by the changes. 19 Current copies of this title and current copies of the regulations adopted under it shall 20 be made available at all offices in the state of the Department of Commerce, 21 Community, and Economic Development and the detachment headquarters and posts 22 maintained by the division of Alaska state troopers in the Department of Public Safety. 23 * Sec. 9. AS 04.06.090 is amended by adding new subsections to read: 24 (f) The board is responsible for education on relevant state statutes, 25 regulations, and policies. The board shall coordinate with agencies and nonprofit 26 organizations that provide alcohol awareness education to develop a plan to educate 27 public safety professionals, the alcoholic beverage industry, individuals under 21 years 28 of age, local governments, established villages, and the general public on the 29 responsible use of alcoholic beverages. The board shall update and revise the plan 30 annually. 31 (g) The board shall review the fees specified in this title and regulations

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

01 adopt regulations concerning access by a person to information contained in the 02 database of the purchases by, and shipments to, that person. 03 * Sec. 11. AS 04.06.095 is amended by adding a new subsection to read: 04 (c) The board shall produce an annual report of the aggregate regional and 05 statewide data from the database, excluding personally identifiable information and 06 the names and addresses of businesses, and shall make the report available for public 07 inspection and copying under AS 40.25.110 - 40.25.220. The report must include 08 information about the total volume of alcohol received in each municipality or 09 established village. 10 * Sec. 12. AS 04.06.100(b) is amended to read: 11 (b) The subjects covered by regulations adopted under (a) of this section may 12 include the following matters: 13 (1) employment, conduct, and duties of the director and of regular and 14 contractual employees of the board; 15 (2) procedures for the issuance, denial, renewal, transfer, revocation, 16 and suspension of licenses, endorsements, and permits; 17 (3) terms and conditions of licenses, endorsements, and permits 18 issued; 19 (4) fees for licenses, endorsements, and permits issued for which fees 20 are not prescribed by statute; 21 (5) conduct of regular and special meetings of the board; 22 (6) delegation to the director of routine administrative functions and 23 powers; 24 (7) the temporary granting or denial of issuance, transfer, and renewal 25 of licenses and endorsements; 26 (8) manner of giving any notice required by law or regulation when not 27 provided for by statute; 28 (9) requirements relating to the qualifications of licensees, the 29 conditions upon which a license may be issued, the accommodations of licensed 30 premises, and board inspection of those premises; 31 (10) making of reports by wholesalers;

01 (11) purchase of fidelity bonds by the state for the director and the 02 employees of the board; 03 (12) prohibition of possession of alcoholic beverages by drunken 04 persons and by minors; 05 (13) required reports from corporations licensed under this title, 06 including reports of stock ownership and transfers and changes of officers and 07 directors; 08 (14) [CREATION OF CLASSIFICATIONS OF LICENSES OR 09 PERMITS NOT PROVIDED FOR IN THIS TITLE; 10 (15)] establishment and collection of fees to be paid on application for 11 a license, endorsement, or permit; 12 (15) [(16)] required reports from partnerships and limited partnerships 13 licensed under this title, including reports of transferred interests of 10 percent or 14 more; 15 (16) [(17)] required reports from limited liability organizations 16 licensed under this title, including reports of the transfer of a member's interest if the 17 transfer equals 10 percent or more of the ownership of the limited liability 18 organization and any change of managers; 19 (17) restrictions on the manufacture, packaging, sale, and 20 distribution of products containing alcohol that are intended for human 21 consumption. 22 * Sec. 13. AS 04 is amended by adding a new chapter to read: 23 Chapter 09. Licenses, Endorsements, and Permits. 24 Article 1. License Types. 25 Sec. 04.09.010. Types of licenses. A license defines activities allowed daily on 26 licensed premises. License type is a general category of license activity based on the 27 three-tier system of alcohol regulation. The three types of licenses the board may issue 28 are manufacturer, wholesale, and retail licenses. The board may issue only the licenses 29 authorized in AS 04.09.020 - 04.09.370. 30 Article 2. Manufacturer Licenses. 31 Sec. 04.09.020. Brewery manufacturer license. (a) A brewery manufacturer

01 license authorizes the holder to operate a brewery for the manufacture, packaging, 02 storing, and sale of its brewed beverages to a buyer as permitted in AS 04.09.050. 03 (b) The biennial brewery manufacturer license fee is $1,250. 04 (c) The fermentation process of all brewed beverages offered for sale by the 05 holder of a brewery manufacturer license must occur on the holder's licensed premises 06 in the state. 07 Sec. 04.09.030. Winery manufacturer license. (a) A winery manufacturer 08 license authorizes the holder to operate a winery for the manufacture, packaging, 09 storing, and sale of its wine to a buyer as permitted in AS 04.09.050. 10 (b) The biennial winery manufacturer license fee is $1,000. 11 (c) The fermentation process of all wine offered for sale by the holder of a 12 winery manufacturer license must occur on the holder's licensed premises in the state. 13 Sec. 04.09.040. Distillery manufacturer license. (a) A distillery manufacturer 14 license authorizes the holder to operate a distillery for the manufacture, packaging, 15 storing, and sale of its distilled spirits to a buyer as permitted in AS 04.09.050. 16 (b) The biennial distillery manufacturer license fee is $1,250. 17 (c) At least 80 percent of each final product that contains distilled spirits 18 offered for sale by the holder of a distillery manufacturer license must be 19 manufactured on the holder's licensed premises in the state. 20 Sec. 04.09.050. Authorized sales. (a) The holder of a manufacturer license 21 that annually produces in total less than 300,000 barrels of brewed beverages or mead 22 or cider containing less than 8.5 percent alcohol by volume, less than 50,000 nine- 23 liter-equivalent cases of wine, sake, or mead or cider containing 8.5 percent or more 24 alcohol by volume, or less than 50,000 nine-liter-equivalent cases of distilled spirits 25 may sell its product to 26 (1) the holder of a wholesale license issued under this chapter; 27 (2) the holder of a retail license issued under this chapter; 28 (3) the holder of a permit issued under this chapter; 29 (4) an entity in another state or country. 30 (b) The holder of a manufacturer license that annually produces in total 31 300,000 barrels or more of brewed beverages or mead or cider containing less than 8.5

01 percent alcohol by volume, 50,000 nine-liter-equivalent cases or more of wine, sake, 02 or mead or cider containing 8.5 percent or more alcohol by volume, or 50,000 nine- 03 liter-equivalent cases or more of distilled spirits may sell its product to 04 (1) the holder of a wholesale license issued under this chapter; 05 (2) an entity in another state or country. 06 (c) For purposes of calculating the volume that the holder of a manufacturer 07 license produces under this section, the volume of production must include all 08 production by 09 (1) the holder of the manufacturer's license; and 10 (2) an officer, director, agent, employee, or affiliate of the holder; in 11 this paragraph, "affiliate" means a person that directly or indirectly, through one or 12 more intermediaries, controls, or is controlled by, or is under common control with, a 13 corporation. 14 Sec. 04.09.060. Unlicensed manufacturing. (a) A person commits the crime 15 of unlicensed manufacturing if the person knowingly operates a 16 (1) brewery without a brewery manufacturer license; 17 (2) winery without a winery manufacturer license; or 18 (3) distillery without a distillery manufacturer license. 19 (b) Unlicensed manufacturing is a class A misdemeanor. 20 Sec. 04.09.080. Unauthorized manufacturer sale. (a) Except as provided in 21 AS 04.09.320 - 04.09.340, a person who holds a manufacturer license commits the 22 offense of unauthorized manufacturer sale if the person sells its product in violation of 23 AS 04.09.050. 24 (b) Unauthorized manufacturer sale is a violation. 25 Sec. 04.09.090. Definition. In AS 04.09.020 - 04.09.090, "packaging" means 26 the process of containing alcoholic beverages in bottles or other types of containers for 27 purpose of resale. 28 Article 3. Wholesale Licenses. 29 Sec. 04.09.100. General wholesale license. (a) A general wholesale license 30 authorizes the holder to sell alcoholic beverages at wholesale. The holder of a general 31 wholesale license may not sell to a person not licensed under this title, except as

01 provided in AS 04.21.040. 02 (b) The biennial general wholesale license fee is $2,000. 03 (c) In addition to the license fee under (b) of this section, the holder of a 04 general wholesale license shall pay an annual fee based on the total value of business 05 transacted by the wholesale business, including the excise tax imposed by 06 AS 43.60.010. If the total value of business transacted during the calendar year 07 including the excise tax imposed by AS 43.60.010 is 08 (1) less than or equal to $100,000, then the annual fee is $0; 09 (2) over $100,000 and not over $150,000, then the annual fee is $250; 10 (3) over $150,000 and not over $200,000, then the annual fee is $500; 11 (4) over $200,000 and not over $250,000, then the annual fee is $750; 12 (5) over $250,000 and not over $300,000, then the annual fee is 13 $1,000; 14 (6) over $300,000 and not over $350,000, then the annual fee is 15 $1,250; 16 (7) over $350,000 and not over $400,000, then the annual fee is 17 $1,500; 18 (8) over $400,000 and not over $500,000, then the annual fee is 19 $2,000; 20 (9) over $500,000 and not over $600,000, then the annual fee is 21 $2,500; 22 (10) over $600,000 and not over $700,000, then the annual fee is 23 $3,000; 24 (11) over $700,000 and not over $800,000, then the annual fee is 25 $3,500; 26 (12) over $800,000 and not over $1,000,000, then the annual fee is 27 $4,500; 28 (13) over $1,000,000, then the annual fee is $10,000. 29 Sec. 04.09.110. Limited wholesale brewed beverage and wine license. (a) A 30 limited wholesale brewed beverage and wine license authorizes the holder to sell 31 brewed beverages and wine at wholesale. The holder of a limited wholesale brewed

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

01 (b) Failure to file an affidavit under (a) of this section or the expiration of a 02 license under AS 04.11.540 does not relieve a licensee from paying the prescribed 03 annual fee. 04 Sec. 04.09.130. Wholesale supplier declaration. (a) A person who applies for 05 issuance or renewal of a general wholesale license or a limited wholesale brewed 06 beverage and wine license shall submit to the board, on a form prescribed by the 07 board, a declaration that the person is the appointed wholesaler of the distiller, brewer, 08 vintner, or importer of each product line of alcoholic beverage that the person intends 09 to purchase, offer for sale, or sell. The form must include a space for the person to 10 indicate the total number of suppliers. The board may request a list of suppliers, or 11 additional information about a product line. 12 (b) A person filing a declaration under this section shall pay a biennial filing 13 fee. If the declaration lists 14 (1) one to 25 suppliers, the fee is $500; 15 (2) 26 to 50 suppliers, the fee is $1,000; 16 (3) 51 to 75 suppliers, the fee is $1,500; 17 (4) 76 or more suppliers, the fee is $2,000. 18 (c) In this section, "distiller, brewer, vintner, or importer" includes an 19 exclusive agent of the distiller, brewer, vintner, or importer if the agent's name appears 20 on the label of the brand approved by the Alcohol and Tobacco Tax and Trade Bureau. 21 Sec. 04.09.140. Unlicensed wholesale sale. (a) A person commits the crime of 22 unlicensed wholesale sale if the person knowingly sells 23 (1) distilled spirits at wholesale without a general wholesale license; or 24 (2) brewed beverages or wine at wholesale without a general wholesale 25 license or a limited wholesale brewed beverage and wine license. 26 (b) Unlicensed wholesale sale is a class A misdemeanor. 27 Sec. 04.09.150. Failure to pay annual fee or file affidavit. (a) A person 28 commits the offense of failure to pay an annual wholesale fee or file a wholesale 29 affidavit if the person fails to pay the annual fee or file the affidavit as required under 30 AS 04.09.120. 31 (b) Failure to pay an annual wholesale fee or file a wholesale affidavit is a

01 violation. 02 Sec. 04.09.160. Failure to pay biennial fee or file declaration. (a) A person 03 commits the offense of failure to pay a biennial supplier fee or file a supplier 04 declaration if the person fails to pay the biennial supplier fee or file the declaration as 05 required under AS 04.09.130. 06 (b) Failure to pay a biennial supplier fee or file a supplier declaration is a 07 violation. 08 Article 4. Retail Licenses. 09 Sec. 04.09.200. Beverage dispensary license. (a) A beverage dispensary 10 license authorizes the holder to sell or serve on the licensed premises alcoholic 11 beverages for consumption only on the licensed premises. 12 (b) The biennial beverage dispensary license fee is $2,500. 13 (c) The holder of a beverage dispensary license may not maintain on the 14 licensed premises more than one room in which there is regularly maintained a fixed 15 counter or service bar that has plumbing connections to permanent plumbing at which 16 alcoholic beverages are sold or served to members of the public for consumption, 17 unless the license has a multiple fixed counter endorsement under AS 04.09.420. 18 (d) Except as provided under AS 04.09.610, 04.09.640, 04.09.670, and 19 AS 04.16.120(c), the holder of a beverage dispensary license who sells or serves 20 alcoholic beverages off the licensed premises or permits consumption off the premises 21 of alcoholic beverages sold or served on the premises commits the offense of 22 unauthorized beverage dispensary activity. 23 (e) Unauthorized beverage dispensary activity is a violation. 24 Sec. 04.09.210. Restaurant or eating place license. (a) A restaurant or eating 25 place license authorizes a restaurant or eating place to 26 (1) sell brewed beverages and wine for consumption only on the 27 licensed premises; and 28 (2) allow a person 29 (A) under 21 years of age access as provided in (d) of this 30 section to the licensed premises; and 31 (B) to enter or remain on the licensed premises to consume

01 food or nonalcoholic beverages as authorized under AS 04.16.010(c)(5). 02 (b) The biennial restaurant or eating place license fee is $1,250. 03 (c) The board may issue or renew a license under this section only if the 04 (1) board determines that 05 (A) the licensed premises is a bona fide restaurant as defined in 06 AS 04.21.080(b); 07 (B) there is supervision on the premises adequate to reasonably 08 ensure that a person under 21 years of age will not obtain alcoholic beverages; 09 and 10 (C) it is unlikely that persons under 21 years of age not 11 employed on the premises will enter and remain on the licensed premises for 12 purposes other than dining; and 13 (2) sale and service of food and alcoholic beverages and any other 14 business conducted on the licensed premises of the restaurant or eating place is under 15 the sole control of the licensee. 16 (d) The board may authorize the holder of a restaurant or eating place license 17 (1) to allow a person who is at least 16 years of age but under 21 years 18 of age to enter and remain on the licensed premises for dining only; 19 (2) to allow a person who is under 16 years of age to enter and remain 20 on the licensed premises for dining only if 21 (A) the person is accompanied by a person who is 21 years of 22 age or older; and 23 (B) the parent or guardian of the person consents to the person 24 being on the licensed premises; and 25 (3) subject to AS 04.16.049, to employ or permit the employment of a 26 person who is at least 16 years of age but under 21 years of age on the licensed 27 premises if the employer provides adequate supervision to ensure that the person does 28 not obtain alcoholic beverages. 29 (e) The holder of a restaurant or eating place license shall ensure that gross 30 receipts from the sale of food for consumption on the licensed premises are not less 31 than the total of the gross receipts from the sale of alcoholic beverages for

01 consumption on the licensed premises in each calendar year. At the time the holder 02 submits an application for renewal of the license, the holder shall submit a statement 03 to the board certifying that the holder has met the requirement under this subsection 04 for the designated period of the license under AS 04.11.680. The board may renew a 05 restaurant or eating place license only if the licensee's statement provides evidence 06 satisfactory to the board that, during the designated period of the license under 07 AS 04.11.680, the gross receipts from the sale of food for consumption on the licensed 08 premises were not less than the total of the gross receipts from the sale of alcoholic 09 beverages for consumption on the licensed premises. 10 (f) The holder of a restaurant or eating place license may provide 11 entertainment on or adjacent to the licensed premises only between the hours of 10:00 12 a.m. and 11:00 p.m. unless additional hours are approved by the director upon the 13 written request of the licensee for a specific occasion. The director may not grant 14 approval for additional hours of entertainment on or adjacent to the licensed premises 15 of an individual licensee more than six times in a calendar year. In this subsection, 16 "entertainment" includes dancing, karaoke, live performances, or similar activities, but 17 does not include recorded or broadcast performances without live participation. 18 (g) Except as provided under AS 04.09.620, 04.09.640, 04.09.645, and 19 AS 04.16.120(c), the holder of a restaurant or eating place license commits the offense 20 of failure to comply with the terms of a restaurant or eating place license if the person 21 sells brewed beverages or wine in violation of (a) of this section, engages in activity 22 not authorized by the board under (d) of this section, or fails to comply with the 23 requirements of (d), (e), or (f) of this section. 24 (h) Failure to comply with the terms of a restaurant or eating place license is a 25 violation. 26 Sec. 04.09.220. Club license. (a) A club license authorizes a club or 27 organization to sell alcoholic beverages for consumption only on the licensed 28 premises. 29 (b) The biennial fee for a club license is $1,500. 30 (c) The board may issue a club license only to an organization operated for 31 social, recreational, benevolent, or athletic purposes and not for profit. The board may

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

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

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

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

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

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

01 (b) The biennial outdoor recreation lodge license fee is $2,500. 02 (c) The board may not grant an application for transfer of an outdoor 03 recreation lodge license to another location. 04 (d) In this section, "outdoor recreation lodge" means a licensed business that 05 provides overnight accommodations and meals, is primarily involved in offering 06 opportunities for persons to engage in outdoor recreation activities, and has a 07 minimum of two guest rooms. 08 (e) The holder of an outdoor recreation lodge license who sells alcoholic 09 beverages in violation of the authority granted under (a) of this section commits the 10 offense of unauthorized outdoor recreation lodge activity. 11 (f) Unauthorized outdoor recreation lodge activity is a violation. 12 Sec. 04.09.290. Fair license. (a) A fair license authorizes the holder to sell 13 beer and wine at multiple noncontiguous locations at an annual fair held on 14 fairgrounds for consumption on the licensed premises. 15 (b) The biennial fair license fee is $1,250. 16 (c) The board may issue a fair license only to a nonprofit organization that is 17 incorporated under AS 10.20 and has been active for a period of at least five years 18 before the effective date of sec. 13 of this Act. 19 (d) The holder of a fair license may not sell brewed beverages or wine at more 20 than 30 events, other than an annual fair, held on the fairgrounds in a calendar year. 21 (e) In this section, "annual fair" means an annual gathering of residents of all 22 or a portion of the state that offers competitive exhibitions of livestock and agricultural 23 crops, carnival amusement rides and games, and displays of arts and crafts. 24 Sec. 04.09.300. Golf course license. (a) A golf course license authorizes the 25 holder to sell brewed beverages and wine for consumption on the licensed premises. 26 (b) The biennial golf course license fee is $1,250. 27 (c) An application for a golf course license must include 28 (1) a drawing of the golf course with an annotated illustration and 29 description of the portions of the course that are intended to be licensed premises; and 30 (2) a sample food menu. 31 (d) The board may not approve an application for transfer of a golf course

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

01 (f) Failure to comply with the terms of a destination resort license is a 02 violation. 03 Sec. 04.09.320. Brewery retail license. (a) A brewery retail license authorizes 04 the holder to store, sell, or serve on the licensed premises brewed beverages for 05 consumption on and off the premises. 06 (b) The biennial brewery retail license fee is $1,250. 07 (c) The board may issue a brewery retail license only to the holder of a 08 brewery manufacturer license under AS 04.09.020. The brewery retail licensed 09 premises may be all or part of the brewery manufacturer licensed premises, or the 10 brewery retail licensed premises may be at a single different site that is adjacent to the 11 brewery manufacturer licensed premises. 12 (d) Each day, the holder of a brewery retail license may sell, to a person on the 13 licensed premises for consumption on the licensed premises, not more than 14 (1) 36 ounces of the holder's beer; or 15 (2) 18 ounces of the holder's sake. 16 (e) Except as provided under (g) of this section and AS 04.09.685, the holder 17 of a brewery retail license may not 18 (1) allow live music or performances, disc jockeys, karaoke, 19 televisions, pool tables, dart games, or organized games or tournaments on the 20 premises where the consumption occurs; 21 (2) provide seats at the counter or bar where the brewed beverages are 22 served; 23 (3) open the room where the consumption occurs before 9:00 a.m.; or 24 (4) serve brewed beverages after 9:00 p.m. 25 (f) Each day, the holder of a brewery retail license is authorized to sell, to a 26 person on the licensed premises for consumption off the licensed premises, not more 27 than 5.167 gallons of the holder's beer or sake. 28 (g) The holder of a brewery retail license may allow on the premises where the 29 consumption occurs 30 (1) activities, presentations, television or video displays, or other 31 displays that directly promote or educate customers about the brewery's products,

01 processes, or establishment; and 02 (2) other community organizations or businesses to provide 03 presentations, classes, or product displays or host fundraisers. 04 (h) The holder of a brewery retail license commits the offense of failure to 05 comply with the terms of a brewery retail license if the person stores, sells, or serves 06 brewed beverages in violation of (a) of this section or violates (d), (e), or (f) of this 07 section. 08 (i) Failure to comply with the terms of a brewery retail license is a violation. 09 Sec. 04.09.330. Winery retail license. (a) A winery retail license authorizes 10 the holder to store, sell, or serve on the licensed premises wine for consumption on 11 and off the premises. 12 (b) The biennial winery retail license fee is $1,000. 13 (c) The board may issue a winery retail license only to the holder of a winery 14 manufacturer license issued under AS 04.09.030. The winery retail licensed premises 15 may be all or part of the winery manufacturer licensed premises, or the winery retail 16 licensed premises may be at a single different site that is adjacent to the winery 17 manufacturer licensed premises. 18 (d) Each day, the holder of a winery retail license may sell, to a person on the 19 licensed premises for consumption on the licensed premises, a total volume that does 20 not exceed 21 (1) 18 ounces of the holder's wine, mead, or cider containing 8.5 22 percent or more alcohol by volume; 23 (2) 36 ounces of the holder's mead or cider containing less than 8.5 24 percent alcohol by volume; or 25 (3) the alcoholic equivalent of (1) or (2) of this subsection. 26 (e) Except as provided under (g) of this section and AS 04.09.685, the holder 27 of a winery retail license may not 28 (1) allow live music or performances, disc jockeys, karaoke, 29 televisions, pool tables, dart games, or organized games or tournaments on the 30 premises where the consumption occurs; 31 (2) provide seats at the counter or bar where the wine is served;

01 (3) open the room where the consumption occurs before 9:00 a.m.; or 02 (4) serve wine after 9:00 p.m. 03 (f) Each day, the holder of a winery retail license is authorized to sell, to a 04 person on the licensed premises for consumption off the licensed premises, not more 05 than 5.167 gallons of the holder's wine, mead, or cider. 06 (g) The holder of a winery retail license may allow on the premises where the 07 consumption occurs 08 (1) activities, presentations, television or video displays, or other 09 displays that directly promote or educate customers about the winery's products, 10 processes, or establishment; and 11 (2) other community organizations or businesses to provide 12 presentations, classes, or product displays or host fundraisers. 13 (h) The holder of a winery retail license commits the offense of failure to 14 comply with the terms of a winery retail license if the person stores, sells, or serves 15 wine in violation of (a) of this section or violates (d), (e), or (f) of this section. 16 (i) Failure to comply with the terms of a winery retail license is a violation. 17 Sec. 04.09.340. Distillery retail license. (a) A distillery retail license 18 authorizes the holder to store, sell, or serve on the licensed premises distilled spirits 19 for consumption on and off the premises. 20 (b) The biennial distillery retail license fee is $1,250. 21 (c) The board may issue a distillery retail license only to the holder of a 22 distillery manufacturer license under AS 04.09.040. The distillery retail licensed 23 premises may be all or part of the distillery manufacturer licensed premises, or the 24 distillery retail licensed premises may be at a single different site that is adjacent to the 25 distillery manufacturer licensed premises. 26 (d) The holder of a distillery retail license may sell not more than three ounces 27 of the holder's distilled spirits each day to a person on the licensed premises for 28 consumption on the licensed premises. The holder of a distillery retail license may 29 combine the holder's distilled spirits under this subsection with other ingredients that 30 are not alcoholic beverages, including mixers, liquids, and garnishes. 31 (e) Except as provided under (g) of this section and AS 04.09.685, the holder

01 of a distillery retail license may not 02 (1) allow live music or performances, disc jockeys, karaoke, 03 televisions, pool tables, dart games, or organized games or tournaments on the 04 premises where the consumption occurs; 05 (2) provide seats at the counter or bar where the distilled spirits are 06 served; 07 (3) open the room where the consumption occurs before 9:00 a.m.; or 08 (4) serve distilled spirits after 9:00 p.m. 09 (f) The holder of a distillery retail license is authorized to sell not more than 10 3.75 liters of the holder's distilled spirits each day to a person on the licensed premises 11 for consumption off the licensed premises. 12 (g) The holder of a distillery retail license may allow on the premises where 13 the consumption occurs 14 (1) activities, presentations, television or video displays, or other 15 displays that directly promote or educate customers about the distillery's products, 16 processes, or establishment; and 17 (2) other community organizations or businesses to provide 18 presentations, classes, or product displays or host fundraisers. 19 (h) The holder of a distillery retail license commits the offense of failure to 20 comply with the terms of a distillery retail license if the person stores, sells, or serves 21 distilled spirits in violation of (a) of this section or violates (d), (e), or (f) of this 22 section. 23 (i) Failure to comply with the terms of a distillery retail license is a violation. 24 Sec. 04.09.350. Beverage dispensary tourism license. (a) A beverage 25 dispensary tourism license authorizes the holder to sell or serve on the licensed 26 premises alcoholic beverages for consumption only on the licensed premises. 27 (b) The biennial beverage dispensary tourism license fee is $2,500. 28 (c) The board may 29 (1) issue a new beverage dispensary tourism license if it appears that 30 the issuance will encourage the tourist trade by promoting the construction or 31 improvement of

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

01 which alcoholic beverages are sold or served to members of the public for 02 consumption unless the license has a multiple fixed counter endorsement under 03 AS 04.09.420, a hotel or motel endorsement under AS 04.09.430, or a large resort 04 endorsement under AS 04.09.440. 05 (e) Except as provided under AS 04.09.610, 04.09.640, 04.09.670, and 06 AS 04.16.120(c), the holder of a beverage dispensary tourism license who sells or 07 serves alcoholic beverages off the licensed premises or permits consumption off the 08 premises of alcoholic beverages sold or served on the premises commits the offense of 09 unauthorized beverage dispensary tourism activity. 10 (f) Unauthorized beverage dispensary tourism activity is a violation. 11 Sec. 04.09.360. Seasonal restaurant or eating place tourism license. (a) A 12 seasonal restaurant or eating place tourism license authorizes a restaurant or eating 13 place to 14 (1) sell brewed beverages and wine for consumption only on the 15 licensed premises for a period not to exceed six months in each calendar year; and 16 (2) allow a person 17 (A) under 21 years of age access as provided in (f) of this 18 section to the licensed premises; and 19 (B) to enter or remain on the licensed premises to consume 20 food or nonalcoholic beverages as authorized under AS 04.16.010(c)(5). 21 (b) The biennial seasonal restaurant or eating place tourism license fee is 22 $1,250. 23 (c) The board may issue or renew a license under this section only if 24 (1) the board determines that 25 (A) the licensed premises is a bona fide restaurant as defined in 26 AS 04.21.080(b); 27 (B) there is supervision on the premises adequate to reasonably 28 ensure that a person under 21 years of age will not obtain alcoholic beverages; 29 and 30 (C) it is unlikely that persons under 21 years of age not 31 employed on the premises will enter and remain on the licensed premises for

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

01 statement to the board certifying that the holder has met the requirement under this 02 subsection for the designated period of the license under AS 04.11.680. The board 03 may renew a seasonal restaurant or eating place tourism license only if the licensee 04 provides evidence satisfactory to the board that, during the designated period of the 05 license under AS 04.11.680, the gross receipts from the sale of food for consumption 06 on the licensed premises were not less than the total of the gross receipts from the sale 07 of alcoholic beverages for consumption on the licensed premises. 08 (h) The board shall adopt a regulation establishing a formula to limit the 09 number of seasonal restaurant or eating place tourism licenses. 10 (i) The holder of a seasonal restaurant or eating place tourism license may 11 provide entertainment on or adjacent to the licensed premises only between the hours 12 of 10:00 a.m. and 11:00 p.m. unless additional hours are approved by the director 13 upon the written request of the licensee for a specific occasion. The director may not 14 grant approval for additional hours of entertainment on or adjacent to the licensed 15 premises of an individual licensee more than three times in a calendar year. In this 16 subsection, "entertainment" includes dancing, karaoke, live performances, or similar 17 activities, but does not include recorded or broadcast performances without live 18 participation. 19 (j) Except as provided under AS 04.09.620, 04.09.640, and AS 04.16.120(c), 20 the holder of a seasonal restaurant or eating place tourism license commits the offense 21 of failure to comply with the terms of a seasonal restaurant or eating place tourism 22 license if the person sells brewed beverages or wine in violation of (a) of this section, 23 engages in activity not authorized by the board under (f) of this section, or fails to 24 comply with the requirements of (f), (g), or (i) of this section. 25 (k) Failure to comply with the terms of a seasonal restaurant or eating place 26 tourism license is a violation. 27 Sec. 04.09.370. Manufacturer direct shipment license. (a) A manufacturer 28 direct shipment license authorizes the holder of a brewery retail license issued under 29 AS 04.09.320, winery retail license issued under AS 04.09.330, or distillery retail 30 license issued under AS 04.09.340, or the holder of a manufacturer license issued in 31 another state, to sell the holder's product in response to an order for shipment to a

01 person, for personal use only and not for resale, who is located in the state. A 02 manufacturer direct shipment license may not be transferred to another person or 03 another location. 04 (b) The biennial fee for a manufacturer direct shipment license is $200. 05 (c) An applicant for issuance or renewal of a manufacturer direct shipment 06 license shall 07 (1) submit an application on a form prescribed by the board; 08 (2) consent to the jurisdiction of the board, the Department of 09 Revenue, and any other state agency or state court concerning enforcement of this 10 title; and 11 (3) if the applicant is the holder of a license or permit authorizing the 12 holder to manufacture and sell its product to the public issued in another state, provide 13 to the board a copy of the holder's license or permit issued 14 (A) in the state; and 15 (B) by the Alcohol and Tobacco Tax and Trade Bureau. 16 (d) All product shipped to a purchaser in the state by the holder of a 17 manufacturer direct shipment license is subject to the state excise tax. 18 (e) The holder of a manufacturer direct shipment license may not 19 (1) ship product to an address with a zip code located in an area that 20 has adopted a local option under AS 04.11.491; 21 (2) sell more than 22 (A) 1.5 liters of distilled spirits to a purchaser in one 23 transaction or more than 4.5 liters of distilled spirits to a purchaser in a 24 calendar year; 25 (B) 18 liters of wine to a purchaser in one transaction or more 26 than 108 liters of wine to a purchaser in a calendar year; or 27 (C) 288 ounces of brewed beverages to a purchaser in one 28 transaction or more than 13.5 gallons of brewed beverages to a purchaser in a 29 calendar year; 30 (3) ship its product using a common carrier who is not approved by the 31 board to ship alcoholic beverages to persons in the state under AS 04.09.750(b); or

01 (4) annually produce more than 300,000 barrels in total of brewed 02 beverages or more than 50,000 proof gallons in total of distilled spirits. 03 (f) Before shipping an order under this section, the holder of a manufacturer 04 direct shipment license shall 05 (1) verify that the person submitting the order is at least 21 years of 06 age, using an age verification service or other method, and that the named recipient of 07 the shipment, if not the same person as the person submitting the order, is at least 21 08 years of age; 09 (2) determine that the order will not exceed the limits of (e)(2) of this 10 section; 11 (3) provide written or electronic information to the person submitting 12 the order on fetal alcohol syndrome and fetal alcohol effects resulting from a woman's 13 consumption of alcohol during pregnancy; and 14 (4) label the shipping container as containing alcoholic beverages and 15 requiring a signature by a person who is at least 21 years of age upon delivery. 16 (g) The holder of a manufacturer direct shipment license shall 17 (1) retain records of sales made under this license for at least two 18 years; and 19 (2) make records of sales available for inspection and audit by the 20 board and the Department of Revenue. 21 (h) The board shall compile a list that is available for public inspection of zip 22 codes that are located within a local option area and notify the holder of a 23 manufacturer direct shipment license of any change to the list. 24 (i) The holder of a manufacturer direct shipment license commits the offense 25 of failure to comply with the terms of a manufacturer direct shipment license if the 26 person fails to comply with (e) - (g) of this section. 27 (j) Failure to comply with the terms of a manufacturer direct shipment license 28 is a violation. 29 Article 5. Endorsements. 30 Sec. 04.09.400. Types of endorsements. (a) An endorsement expands the 31 boundaries of a licensed premises or the authorized activities of a licensed business.

01 (b) Only the board may issue an endorsement. The board may issue only the 02 endorsements authorized in AS 04.09.400 - 04.09.520. 03 (c) An endorsement is valid only in conjunction with a license. An 04 endorsement may be transferred to another person only if the license for which the 05 endorsement was issued is also transferred to that person. An endorsement expires if 06 the licensed premises are relocated, the license expires, or the license is revoked. 07 (d) Except as provided in (c) of this section, an endorsement is valid for the 08 duration of the license as designated in AS 04.11.680. The holder of the endorsement 09 shall renew the endorsement biennially. 10 (e) An application for an endorsement under AS 04.09.400 - 04.09.520 must 11 (1) be made in writing on a form prescribed by the board; and 12 (2) demonstrate that the holder of the license has authority over and 13 will exercise control over conduct of the business in all areas of the licensed premises, 14 including premises newly licensed by the endorsement. 15 Sec. 04.09.410. Manufacturer sampling endorsement. (a) A manufacturer 16 sampling endorsement authorizes the holder of a brewery manufacturer license, 17 winery manufacturer license, or distillery manufacturer license to offer for 18 consumption on the licensed premises at no charge a small sample of an alcoholic 19 beverage produced by the manufacturer. 20 (b) The biennial fee for a manufacturer sampling endorsement is $200. 21 (c) A person serving a sample of an alcoholic beverage under this section must 22 have a current alcohol server education card issued under AS 04.21.025(c). Only the 23 license holder or an agent or employee of the license holder may serve a sample. 24 (d) The holder of a manufacturer sampling endorsement may serve a total 25 volume of samples to a person on a licensed premises each day that does not exceed 26 (1) for the holder of a brewery manufacturer license, 27 (A) 12 ounces of beer; 28 (B) six ounces of sake; or 29 (C) the alcoholic equivalent of (A) or (B) of this paragraph; 30 (2) for the holder of a winery manufacturer license, 31 (A) six ounces of wine, mead, or cider containing 8.5 percent

01 or more alcohol by volume; 02 (B) 12 ounces of mead or cider containing less than 8.5 percent 03 alcohol by volume; or 04 (C) the alcoholic equivalent of (A) or (B) of this paragraph; 05 (3) for the holder of a distillery manufacturer license, 1.5 ounces of 06 distilled spirits; the holder of the distillery manufacturer license may combine the 07 holder's distilled spirits under this paragraph with other ingredients that are not 08 alcoholic beverages, including mixers, liquids, and garnishes. 09 (e) A person who offers a sample of an alcoholic beverage for consumption on 10 the licensed premises of a brewery, winery, or distillery without an endorsement under 11 this section commits the offense of unendorsed sampling. 12 (f) Unendorsed sampling is a violation and is punishable by a fine of $500. 13 (g) The holder of a manufacturer sampling endorsement who fails to comply 14 with the requirements of (c) or (d) of this section commits the offense of failure to 15 comply with the terms of a manufacturer sampling endorsement. 16 (h) Failure to comply with the terms of a manufacturer sampling endorsement 17 is a violation. 18 Sec. 04.09.420. Multiple fixed counter endorsement. (a) A multiple fixed 19 counter endorsement authorizes the holder of a beverage dispensary license or a 20 beverage dispensary tourism license to sell or serve alcoholic beverages on the 21 licensed premises from multiple fixed counters. 22 (b) The biennial fee for a multiple fixed counter endorsement is $200. 23 (c) In addition to the fee under (b) of this section, the initial application fee for 24 each fixed counter covered under the endorsement is $1,250. 25 (d) An initial application for a multiple fixed counter endorsement must 26 include an annotated drawing of the location of each fixed counter in the licensed 27 premises. 28 (e) A fixed counter at which alcoholic beverages are sold or served to the 29 public for consumption covered under a multiple fixed counter endorsement must be a 30 regularly maintained fixed counter or service bar that has plumbing connections to 31 permanent plumbing. Multiple fixed counters must be located in the same building

01 under the same contiguous licensed premises as set out in regulation, except as 02 provided for the holder of a hotel or motel endorsement under AS 04.09.430 or a large 03 resort endorsement under AS 04.09.440. The board shall adopt regulations to 04 implement this subsection. 05 (f) The holder of a beverage dispensary license or a beverage dispensary 06 tourism license who maintains multiple fixed counters without an endorsement under 07 this section commits the offense of unendorsed service at multiple fixed counters. 08 (g) The holder of a multiple fixed counter endorsement who fails to comply 09 with the requirements of (e) of this section commits the offense of multiple fixed 10 counter endorsement noncompliance. 11 (h) Unendorsed service at multiple fixed counters is a violation and is 12 punishable by a fine of $500. 13 (i) Multiple fixed counter endorsement noncompliance is a violation. 14 Sec. 04.09.430. Hotel or motel endorsement. (a) A hotel or motel 15 endorsement authorizes the holder of a beverage dispensary license or a beverage 16 dispensary tourism license that is a hotel, motel, resort, or similar business premises 17 that caters to the traveling public as a substantial part of its business to sell or serve 18 alcoholic beverages on the licensed premises, including in a dining room, banquet 19 room, and other public areas approved by the board, and in guest rooms. 20 (b) The biennial fee for a hotel or motel endorsement is $200. 21 (c) The holder of a beverage dispensary license or a beverage dispensary 22 tourism license that is a hotel, motel, resort, or similar business premises that caters to 23 the traveling public as a substantial part of its business shall apply for a multiple fixed 24 counter endorsement under AS 04.09.420 to sell or serve alcoholic beverages at a 25 secondary location located in a building different than the licensed premises for the 26 beverage dispensary license or a beverage dispensary tourism license if the different 27 building 28 (1) is located on the same property as, adjacent to, or attached to the 29 originally licensed premises; 30 (2) principally caters to guests of the hotel or motel; and 31 (3) principally encourages the tourism trade at the hotel or motel.

01 (d) The holder of a hotel or motel endorsement may stock alcoholic beverages 02 in guest rooms, for sale and consumption only in the guest room. Alcoholic beverages 03 stocked under this subsection must be stocked by an employee who is 21 years of age 04 or older, may not be supplied or resupplied during hours that the sale of alcoholic 05 beverages is prohibited as provided under AS 04.16.010(a) and (d), and must be stored 06 in a unit using a key or combination lock system within the guest room. A key lock 07 system must be designed to prevent the removal of the key unless the unit is locked. 08 Except for the licensee, or an agent or employee of the licensee, a key or combination 09 enabling a person to obtain alcoholic beverages stocked in a guest room may be 10 provided only to a guest who occupies the room and who is 21 years of age or older. 11 (e) The holder of a hotel or motel endorsement shall exercise control over 12 conduct of the business in all areas of the licensed premises. 13 (f) The holder of a beverage dispensary license or a beverage dispensary 14 tourism license who engages in activity under this section without an endorsement 15 under this section commits the offense of unendorsed hotel or motel service. 16 (g) The holder of a hotel or motel endorsement who fails to comply with the 17 requirements of this section commits the offense of hotel or motel endorsement 18 noncompliance. 19 (h) Unendorsed hotel or motel service is a violation and is punishable by a fine 20 of $500. 21 (i) Hotel or motel endorsement noncompliance is a violation. 22 Sec. 04.09.440. Large resort endorsement. (a) A large resort endorsement 23 authorizes the holder of a beverage dispensary license or a beverage dispensary 24 tourism license that is a large resort to sell or serve alcoholic beverages from multiple 25 locations on the resort property to guests for consumption in areas on the site of the 26 large resort, including a dining room, banquet room, guest room, open air venue, and 27 ingress or egress route between those areas. 28 (b) The biennial fee for a large resort endorsement is $200. 29 (c) The holder of a large resort endorsement shall apply for a multiple fixed 30 counter endorsement under AS 04.09.420 to sell or serve alcoholic beverages from 31 multiple locations within the large resort's property. The locations do not need to be

01 located in the same building or on the same parcel, but must be within the boundary of 02 the large resort, as that term is defined in (h) of this section. 03 (d) The holder of a large resort endorsement may sell or serve alcoholic 04 beverages only from locations on the site of the large resort. 05 (e) For federal income tax purposes, the profit and loss from the licensed 06 business conducted at locations on the resort under a large resort endorsement, other 07 than guest rooms, must be combined or consolidated with the profit and loss from the 08 licensed business conducted under the multiple fixed counter endorsement. 09 (f) The holder of a large resort endorsement shall exercise control over 10 conduct of the business in all areas of the licensed premises. 11 (g) A holder of a beverage dispensary license with a large resort endorsement 12 may stock alcoholic beverages in guest rooms, for sale and consumption only in the 13 guest room. Alcoholic beverages stocked under this subsection must be stocked by an 14 employee who is 21 years of age or older, may not be supplied or resupplied during 15 hours that the sale of alcoholic beverages is prohibited as provided under 16 AS 04.16.010(a) and (d), and must be stored in a unit using a key or combination lock 17 system within the guest room. A key lock system must be designed to prevent the 18 removal of the key unless the unit is locked. Except for the licensee, or an agent or 19 employee of the licensee, a key or combination enabling a person to obtain alcoholic 20 beverages stocked in a guest room may be provided only to a guest who occupies the 21 room and who is 21 years of age or older. 22 (h) In this section, "large resort" means a resort that offers both outdoor 23 recreational activities and overnight lodging to the public and is located on a site 24 consisting of at least 10 contiguous acres containing one or more parcels of real 25 property owned by the licensee, leased by the licensee, or a combination of parcels 26 owned by the licensee and leased by the licensee. 27 (i) The holder of a beverage dispensary license or a beverage dispensary 28 tourism license who engages in activity for which a large resort endorsement is 29 required under this section without an endorsement under this section commits the 30 offense of unendorsed large resort service. 31 (j) The holder of a large resort endorsement who fails to comply with the

01 requirements of (c) - (g) of this section commits the offense of large resort 02 endorsement noncompliance. 03 (k) Unendorsed large resort service is a violation and is punishable by a fine of 04 $500. 05 (l) Large resort endorsement noncompliance is a violation. 06 Sec. 04.09.450. Restaurant endorsement. (a) A restaurant endorsement 07 authorizes the holder of a beverage dispensary license, fair license, golf course license, 08 sporting activity or event license, club license, outdoor recreation lodge license, 09 destination resort license, or beverage dispensary tourism license to allow a person 10 (1) under 21 years of age access as provided in (e) of this section to the 11 premises of a bona fide restaurant on the licensed premises; and 12 (2) to enter or remain on the licensed premises to consume food or 13 nonalcoholic beverages as authorized under AS 04.16.010(c)(5). 14 (b) The biennial fee for a restaurant endorsement is $200. 15 (c) An application for a restaurant endorsement must specify the establishment 16 or portion of the establishment that constitutes a bona fide restaurant. 17 (d) The board may issue an endorsement under this section only if the board 18 finds 19 (1) that the establishment or portion of the establishment for which the 20 endorsement is requested is a bona fide restaurant; 21 (2) there is supervision on the premises adequate to reasonably ensure 22 that a person under 21 years of age will not obtain alcoholic beverages; and 23 (3) that it is unlikely that persons under 21 years of age not employed 24 on the premises will enter and remain on the premises of the bona fide restaurant for 25 purposes other than dining. 26 (e) The board may authorize the holder of a license with a restaurant 27 endorsement 28 (1) to allow a person who is at least 16 years of age but under 21 years 29 of age to enter and remain on the licensed premises for dining only; 30 (2) to allow a person who is under 16 years of age to enter and remain 31 on the licensed premises for dining only if

01 (A) the person is accompanied by a person who is 21 years of 02 age or older; and 03 (B) the parent or guardian of the person consents to the person 04 being on the licensed premises; and 05 (3) subject to AS 04.16.049, to employ or permit the employment of a 06 person who is at least 16 years of age but under 21 years of age on the premises of the 07 bona fide restaurant if the employer provides adequate supervision to ensure that the 08 person does not obtain alcoholic beverages. 09 (f) The holder of a license who engages in activity under this section without 10 an endorsement under this section commits the offense of unendorsed restaurant 11 service. 12 (g) The holder of a restaurant endorsement who engages in activity not 13 authorized by the board under (e) of this section or fails to comply with the 14 requirements of (e) of this section commits the offense of restaurant endorsement 15 noncompliance. 16 (h) Unendorsed restaurant service is a violation and is punishable by a fine of 17 $500. 18 (i) Restaurant endorsement noncompliance is a violation. 19 Sec. 04.09.460. Package store shipping endorsement. (a) A package store 20 shipping endorsement authorizes the holder of a package store license to sell alcoholic 21 beverages to a person who makes an order to that licensee for shipment. 22 (b) The biennial fee for a package store shipping endorsement is $200. 23 (c) An endorsement holder may ship alcoholic beverages only to the purchaser 24 and may ship alcoholic beverages only in response to an order. The endorsement 25 holder may not, in response to an order, ship alcohol to a purchaser at an address other 26 than the address where the purchaser resides or, if the purchaser resides in a 27 municipality or established village that has adopted a local option under 28 AS 04.11.491(a)(1), (2), or (3) or (b)(1) or (2) for which a community delivery site has 29 been designated under AS 04.11.491(f), to an address other than that community 30 delivery site except as provided by AS 04.11.491(f)(1) and (2). 31 (d) An endorsement holder shall provide written or electronic information on

01 fetal alcohol syndrome and fetal alcohol effects resulting from a woman's 02 consumption of alcohol during pregnancy to the purchaser in response to an order. 03 (e) If a shipment is to an area that has restricted the sale of alcoholic beverages 04 under AS 04.11.491(a)(1), (2), or (3) or (b)(1) or (2), an endorsement holder may not 05 ship to a purchaser more than 10.5 liters of distilled spirits or 24 liters or more of wine, 06 or either a half-barrel keg of brewed beverages or 12 gallons or more of brewed 07 beverages in individual containers in a calendar month, or a lower amount of distilled 08 spirits, wine, or brewed beverages if the municipality or established village has 09 adopted the lower amount by local option under AS 04.11.491(g). Before shipping 10 alcohol to a purchaser in a restricted area, an endorsement holder shall consult the 11 database maintained by the board under AS 04.06.095 for any alcoholic beverage 12 shipments made to the purchaser during that calendar month by a package store. An 13 endorsement holder may not ship an amount of alcoholic beverages to a purchaser in a 14 restricted area that, when added to the amount already shipped, exceeds the amount 15 authorized by this subsection. An endorsement holder shall immediately enter into the 16 database the date and the amount of alcoholic beverages shipped to the purchaser. 17 (f) An endorsement holder may not divide or combine shipments of alcoholic 18 beverages so as to circumvent the limitation imposed under (e) of this section. 19 (g) In this section, "endorsement holder" means the holder of a package store 20 license with a package store shipping endorsement, and an agent or employee of the 21 holder of a package store license with a package store shipping endorsement. 22 (h) The holder of a package store license who ships alcoholic beverages 23 without an endorsement under this section commits the offense of unendorsed package 24 store shipping. 25 (i) The holder of a package store shipping endorsement who fails to comply 26 with the requirements of (c) - (f) of this section commits the offense of package store 27 shipping endorsement noncompliance. 28 (j) Unendorsed package store shipping is a violation and is punishable by a 29 fine of $500. 30 (k) Package store shipping endorsement noncompliance is a violation. 31 Sec. 04.09.470. Package store delivery endorsement. (a) A package store

01 delivery endorsement authorizes the holder of a package store license to deliver 02 alcoholic beverages to the location of a social event as set out in this section. For 03 purposes of this subsection, the board shall define by regulation the term "social 04 event." 05 (b) The biennial fee for a package store delivery endorsement is $200. 06 (c) The holder of a package store delivery endorsement may deliver alcoholic 07 beverages only in response to an order. The board shall adopt regulations specifying 08 the occasions for which delivery of alcoholic beverages is allowed and the manner of 09 delivery by the licensee. 10 (d) The holder of a package store delivery endorsement may deliver alcoholic 11 beverages only to a responsible adult at the delivery location specified on the order. 12 The responsible adult shall provide identification and acceptable proof of age under 13 AS 04.21.050 and acknowledge in writing receipt of the alcoholic beverages. 14 (e) The holder of a package store license who delivers alcoholic beverages 15 without an endorsement under this section commits the offense of unendorsed package 16 store delivery. 17 (f) The holder of a package store delivery endorsement who fails to comply 18 with the requirements of (c) and (d) of this section commits the offense of package 19 store delivery endorsement noncompliance. 20 (g) Unendorsed package store delivery is a violation and is punishable by a 21 fine of $500. 22 (h) Package store delivery endorsement noncompliance is a violation. 23 Sec. 04.09.480. Package store repackaging endorsement. (a) A package 24 store repackaging endorsement authorizes the holder of a package store license to 25 subdivide and sell alcoholic beverages from original packages with federally 26 compliant labels to smaller containers with the standard federal government warnings 27 and the product name. 28 (b) The biennial fee for a package store repackaging endorsement is $200. 29 (c) A package store licensee with a package store repackaging endorsement 30 may 31 (1) subdivide alcoholic beverages

01 (A) for sale on the licensed premises by opening the original 02 package for the purpose of subdividing the contents into smaller packages; or 03 (B) in response to a purchase request from a person who is on 04 the licensed premises or purchase order submitted in accordance with 05 AS 04.09.470(c); 06 (2) permit an agent or employee to subdivide alcoholic beverages, but 07 may not permit a customer or another person who is not an agent or employee of the 08 licensee to subdivide alcoholic beverages. 09 (d) The holder of a package store license who repackages alcoholic beverages 10 without an endorsement under this section commits the offense of unendorsed package 11 store repackaging. 12 (e) The holder of a package store repackaging endorsement who fails to 13 comply with the requirements of this section commits the offense of package store 14 repackaging endorsement noncompliance. 15 (f) Unendorsed package store repackaging is a violation and is punishable by a 16 fine of $500. 17 (g) Package store repackaging endorsement noncompliance is a violation. 18 Sec. 04.09.490. Package store sampling endorsement. (a) A package store 19 sampling endorsement authorizes the holder of a package store license to offer for 20 consumption on the licensed premises at no charge a small sample of an alcoholic 21 beverage from its inventory during the package store's stated hours of business, but not 22 between the hours of midnight and 8:00 a.m. 23 (b) The biennial fee for a package store sampling endorsement is $200. 24 (c) Only the license holder or an agent or employee of the license holder may 25 serve a sample. 26 (d) The holder of a package store sampling endorsement may serve a total 27 volume of samples to a person on a licensed premises each day that does not exceed 28 (1) 12 ounces of beer or mead, or cider, if the mead or cider contains 29 less than 8.5 percent alcohol by volume; 30 (2) six ounces of wine, sake, or mead or cider, if the mead or cider 31 contains 8.5 percent or more alcohol by volume;

01 (3) 1.5 ounces of distilled spirits; or 02 (4) the alcoholic equivalent of (1), (2), or (3) of this subsection. 03 (e) The holder of a package store sampling endorsement may not publicly 04 advertise, including through newsprint, radio, or television, sampling activities 05 conducted under the endorsement. However, the holder of a package store sampling 06 endorsement may notify existing customers of sampling activities, including by 07 electronic means. 08 (f) A person who offers a sample of an alcoholic beverage for consumption on 09 the licensed premises of a package store without an endorsement under this section 10 commits the offense of unendorsed package store sampling. 11 (g) Unendorsed package store sampling is a violation and is punishable by a 12 fine of $500. 13 (h) The holder of a package store sampling endorsement who fails to comply 14 with the requirements of (a) and (c) - (e) of this section commits the offense of failure 15 to comply with the terms of a package store sampling endorsement. 16 (i) Failure to comply with the terms of a package store sampling endorsement 17 is a violation. 18 Sec. 04.09.500. Bowling alley endorsement. (a) A bowling alley endorsement 19 authorizes the holder of a beverage dispensary license or a beverage dispensary 20 tourism license to sell or serve alcoholic beverages in the concourse or lane areas of 21 the bowling alley adjacent to the main bar area. 22 (b) The biennial fee for a bowling alley endorsement is $200. 23 (c) The board may issue a bowling alley endorsement only if the concourse or 24 lane areas of the bowling alley or both are 25 (1) designated as part of the licensed premises for the beverage 26 dispensary license or a beverage dispensary tourism license; and 27 (2) adjacent to the main bar area. 28 (d) Notwithstanding AS 04.16.049, the board may, upon application, authorize 29 access by persons under 21 years of age to the concourse or lane areas or both that are 30 designated part of the licensed premises of the bowling alley during hours when no 31 alcoholic beverages are being sold, served, or consumed.

01 (e) The periods during which persons under 21 years of age may be permitted 02 access to the licensed premises must be clearly posted on the licensed premises. 03 (f) The holder of a beverage dispensary license or a beverage dispensary 04 tourism license who sells or serves alcoholic beverages in the concourse or lane areas 05 of a bowling alley without an endorsement under this section commits the offense of 06 unendorsed bowling alley service. 07 (g) The holder of a bowling alley endorsement under this section who fails to 08 comply with the requirements of (e) of this section or who permits access by a person 09 under 21 years of age to the concourse or lane areas of the bowling alley during hours 10 when alcoholic beverages are being served in the concourse or lane areas commits the 11 offense of bowling alley endorsement noncompliance. 12 (h) Unendorsed bowling alley service is a violation and is punishable by a fine 13 of $500. 14 (i) Bowling alley endorsement noncompliance is a violation. 15 Sec. 04.09.510. Golf course endorsement. (a) A golf course endorsement 16 authorizes the owner of a golf course who has obtained a beverage dispensary license 17 or a beverage dispensary tourism license to sell or serve alcoholic beverages on the 18 golf course, driving range, club house and other buildings located on the course, and a 19 vending cart carrying beverages or food to, from, or on the course, excluding the 20 parking lot. 21 (b) The biennial fee for a golf course endorsement is $200. 22 (c) An application for a golf course endorsement must include a drawing of 23 the golf course with an annotated illustration and a description of the portions of the 24 course that are licensed premises and that are intended to be covered by the 25 endorsement. 26 (d) The holder of a beverage dispensary license or beverage dispensary 27 tourism license who sells or serves alcoholic beverages on a golf course without an 28 endorsement under this section commits the offense of unendorsed golf course service. 29 (e) The holder of a golf course endorsement who fails to comply with (a) of 30 this section commits the offense of golf course endorsement noncompliance. 31 (f) Unendorsed golf course service is a violation and is punishable by a fine of

01 $500. 02 (g) Golf course endorsement noncompliance is a violation. 03 Sec. 04.09.520. Brewery repackaging endorsement. (a) A brewery 04 repackaging endorsement authorizes the holder of a brewery manufacturer license who 05 held a license to operate a brewpub under former AS 04.11.135 and was operating a 06 brewpub on the day before the effective date of this section and who also holds, 07 wholly or in part, a beverage dispensary license, beverage dispensary tourism license, 08 restaurant or eating place license, or a seasonal restaurant or eating place tourism 09 license to offer the holder's brewed beverages for sale for consumption off the licensed 10 premises and to subdivide and sell the holder's brewed beverages from original 11 packages with federally compliant labels to smaller containers with the standard 12 federal government warnings and the product name. 13 (b) The biennial fee for a brewery repackaging endorsement is $200. 14 (c) A brewery manufacturer licensee with a brewery repackaging endorsement 15 (1) is authorized to sell, each day to a person on the licensed premises 16 for consumption off the licensed premises, not more than 5.167 gallons of the holder's 17 beer or sake; 18 (2) may permit an agent or employee to subdivide the holder's brewed 19 beverages, but may not permit a customer or another person who is not an agent or 20 employee of the licensee to subdivide the holder's brewed beverages. 21 (d) In this section, "licensed premises" means a premises licensed under a 22 beverage dispensary license, beverage dispensary tourism license, restaurant or eating 23 place license, or a seasonal restaurant or eating place tourism license that is controlled 24 by a brewery manufacturer licensee. 25 (e) The holder of a brewery manufacturer license who repackages brewed 26 beverages without an endorsement under this section or a brewery retail license under 27 AS 04.09.320 commits the offense of unendorsed brewery repackaging. 28 (f) The holder of a brewery repackaging endorsement who fails to comply 29 with the requirements of this section commits the offense of brewery repackaging 30 endorsement noncompliance. 31 (g) Unendorsed brewery repackaging is a violation, punishable by a fine of

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

01 shall be set by the board in regulation. The fee must be at least $50 for each day of the 02 event. 03 (i) The director shall approve or deny a permit application. If the director 04 denies a permit application, the applicant may appeal to the board. 05 Sec. 04.09.610. Beverage dispensary caterer's permit. A beverage 06 dispensary caterer's permit authorizes the holder of a beverage dispensary license or 07 beverage dispensary tourism license to sell or dispense alcoholic beverages at 08 conventions, picnics, sporting activities or events, concerts, street festivals, or similar 09 affairs held off the holder's licensed premises for which a beverage dispensary license 10 or beverage dispensary tourism license would not otherwise be required. The permit 11 may be issued only for designated premises for a specific occasion and for a limited 12 period. 13 Sec. 04.09.620. Restaurant caterer's dining permit. (a) A restaurant caterer's 14 dining permit authorizes the holder of a restaurant or eating place license or a seasonal 15 restaurant or eating place tourism license to sell brewed beverages and wine before 16 and during the service of food provided by the licensee at a single dining event held 17 off the holder's licensed premises. 18 (b) The director may issue a restaurant caterer's dining permit only for 19 designated premises, for a specific occasion, and for a limited period. 20 (c) The licensee shall provide food in conjunction with the service of brewed 21 beverages and wine under a restaurant caterer's dining permit. The licensee shall 22 comply with the requirements for gross receipts from food sales for a restaurant or 23 eating place license under AS 04.09.210(e) or a seasonal restaurant or eating place 24 tourism license under AS 04.09.360(g). 25 Sec. 04.09.630. Club caterer's permit. (a) A club caterer's permit authorizes 26 the holder of a club license to sell or dispense alcoholic beverages at an event held off 27 the club's licensed premises. 28 (b) The application for a club caterer's permit filed under AS 04.11.260 must 29 be signed by two officers of the organization. 30 (c) A restriction or prohibition under AS 04.09.220 regarding a club member 31 or a guest of a club member applies at the premises covered by the permit.

01 (d) The director may not issue more than three club caterer's permits to the 02 holder of a club license in a calendar year. 03 Sec. 04.09.640. Art exhibit event permit. (a) An art exhibit event permit 04 authorizes the holder of a beverage dispensary license, a beverage dispensary tourism 05 license, a restaurant or eating place license, or a seasonal restaurant or eating place 06 tourism license to sell and serve brewed beverages and wine for consumption at a 07 specific art exhibit event. 08 (b) The director may issue an art exhibit event permit only for a specific art 09 exhibit event at premises designated in the application for a limited period specified in 10 the application. 11 (c) The director may not grant more than 12 art exhibit event permits to a 12 licensee in a calendar year. 13 (d) An art exhibit event permit may not be exercised during an event that is 14 expected to attract attendees under 21 years of age. 15 (e) Food must be provided in conjunction with the service of brewed 16 beverages and wine under an art exhibit event permit. 17 Sec. 04.09.645. Music festival permit. (a) A music festival permit authorizes 18 the holder of a restaurant or eating place license to sell or dispense beer and wine for 19 consumption at a festival with multiple live music performances held off the holder's 20 licensed premises. 21 (b) The board may issue a music festival permit to the holder of a restaurant or 22 eating place license only if the licensed premises of the restaurant or eating place is 23 located in the unorganized borough. 24 (c) The board may issue a music festival permit only for 25 (1) a designated premises and for a limited period, not to exceed four 26 calendar days; 27 (2) a music festival that has existed at the same location for a period of 28 at least 10 years before the application for the permit is filed; and 29 (3) a music festival that is located in the unorganized borough. 30 (d) The board may not issue more than one music festival permit to the holder 31 of a restaurant or eating place license in a calendar year.

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

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

01 specified in the application. 02 (d) The director may not issue more than six package store tasting event 03 permits in a calendar year to a package store licensee. If a person holds two or more 04 package store licenses, then the director shall treat each license as separate and distinct 05 when applying the limitation under this subsection, regardless of how many other 06 licenses the person holds, wholly or in part. 07 (e) The director may not issue a package store tasting event permit for a period 08 that 09 (1) is longer than four hours; 10 (2) ends later than 9:00 p.m. 11 (f) Food must be provided in conjunction with the service of alcoholic 12 beverages under a package store tasting event permit. 13 Sec. 04.09.680. Inventory resale permit. (a) An inventory resale permit 14 authorizes the holder to sell the remaining inventory of alcoholic beverages of a 15 business when the owner of the business no longer has a valid license under this title. 16 (b) The fee for an inventory resale permit is $100. 17 (c) The holder of an inventory resale permit may sell the remaining alcoholic 18 beverage inventory only to the holder of a valid license under this chapter. 19 (d) The director may issue an inventory resale permit for a period ending 90 20 days after the date of expiration or forfeiture of the license. The director may not issue 21 a permit if the license was suspended or revoked. 22 Sec. 04.09.685. Live music or entertainment permit. (a) A live music or 23 entertainment permit authorizes the holder of a brewery retail license, winery retail 24 license, or distillery retail license to allow live music or other entertainment on the 25 licensed premises where consumption occurs. 26 (b) The director may not issue more than four live music or entertainment 27 permits to a licensee in a calendar year. The director may issue a live music or 28 entertainment permit only for designated premises for a specific occasion and for a 29 limited period during a single day between the hours of 9:00 a.m. and 9:00 p.m., as 30 specified in the application. 31 Sec. 04.09.690. Conditional contractor's permit. (a) A conditional

01 contractor's permit authorizes the holder to sell brewed beverages or wine for 02 consumption only on designated premises for the designated period of the permit 03 under AS 04.11.680 at construction sites that are located outside a city and inside the 04 boundaries of a military or naval reservation. 05 (b) The biennial conditional contractor's permit fee is $1,250. 06 (c) An applicant for a conditional contractor's permit must obtain and file with 07 the board written permission from the commanding officer of the military or naval 08 reservation and the prime contractor of the remotely situated project for the conduct of 09 the activities authorized by the permit. A conditional contractor's permit may be 10 renewed biennially upon reapplication for a permit and may be revoked or suspended 11 at the discretion of the commanding officer or the prime contractor. 12 (d) A conditional contractor's permit may not be transferred and is not valid 13 after the completion of the holder's contract or the closing of the military or naval 14 reservation. 15 Sec. 04.09.700. Failure to comply with a permit requirement. (a) A person 16 who engages in activity that requires a permit under AS 04.09.600 - 04.09.690 without 17 having a permit and a person who violates the terms of a permit issued under 18 AS 04.09.600 - 04.09.690 commits the offense of failure to comply with a permit 19 requirement. 20 (b) Except as provided in (c) of this section, failure to comply with a permit 21 requirement is a violation. 22 (c) Failure to comply with a permit requirement of an inventory resale permit 23 under AS 04.09.680 or a conditional contractor's permit under AS 04.09.690 is a 24 violation punishable by a fine of $500. 25 Article 7. Common Carrier Approval. 26 Sec. 04.09.750. Common carrier approval. (a) A common carrier may not 27 transport or deliver alcoholic beverages to a person in the state unless the board has 28 approved the common carrier under (b) of this section. 29 (b) A common carrier may apply to the board, on a form prescribed by the 30 board, for approval to transport and deliver alcoholic beverages to persons in the state. 31 The board shall approve an application if the common carrier certifies that it will meet

01 the requirements under (c) and (d) of this section. 02 (c) A common carrier delivering alcoholic beverages to a person in the state 03 shall ensure that the package containing alcoholic beverages is delivered directly to a 04 person who 05 (1) presents identification and acceptable proof of age under 06 AS 04.21.050 showing that the person is 21 years of age or older; and 07 (2) provides a signature acknowledging that the person received the 08 package. 09 (d) A common carrier approved by the board under (b) of this section shall 10 make records of shipments of alcoholic beverages to persons in the state available for 11 inspection and audit by the board. The board may require periodic reporting of 12 approved common carriers on a form prescribed by the board. 13 (e) The board shall maintain, periodically review, and make available for 14 public inspection a list of approved common carriers for transport and delivery of 15 alcoholic beverages to persons in the state. 16 (f) The board may remove a previously approved common carrier from the list 17 if the common carrier transports or delivers alcoholic beverages in violation of (c) or 18 (d) of this section. 19 (g) In this section, 20 (1) "common carrier" means a motor vehicle, watercraft, aircraft, or 21 railroad car available for public hire to transport freight or passengers; 22 (2) "transport" has the meaning given in AS 04.11.499. 23 (h) A common carrier that has not been approved by the board to transport and 24 deliver alcoholic beverages and that transports or delivers alcoholic beverages into or 25 within the state commits the offense of unapproved common carrier transport or 26 delivery of alcoholic beverages. 27 (i) An approved common carrier that violates a provision under (c) or (d) of 28 this section commits the offense of common carrier noncompliance for transport or 29 delivery of alcoholic beverages. 30 (j) Unapproved common carrier transport or delivery of alcoholic beverages is 31 a violation and is punishable by a fine of $500.

01 (k) Common carrier noncompliance for transport or delivery of alcoholic 02 beverages is a violation. 03 Article 8. Prohibited Acts. 04 Sec. 04.09.850. Unlicensed retail sale. (a) A person commits the crime of 05 unlicensed retail sale if the person knowingly operates without the appropriate license 06 a retail operation that requires a license under this chapter. 07 (b) Unlicensed retail sale is a class A misdemeanor. 08 * Sec. 14. AS 04.11.010(a) is amended to read: 09 (a) Except as provided in AS 04.11.020, a person may not knowingly 10 (1) [MANUFACTURE, SELL, OFFER FOR SALE,] possess for 11 [SALE OR] barter, traffic in, or barter an alcoholic beverage unless under license or 12 permit issued under this title; or 13 (2) manufacture an alcoholic beverage, sell an alcoholic beverage, 14 offer an alcoholic beverage for sale, or possess an alcoholic beverage for sale in an 15 area that has adopted a local option under AS 04.11.491 unless under license or 16 permit issued under this title. 17 * Sec. 15. AS 04.11.010(b) is amended to read: 18 (b) Except as provided in this subsection, a person may not solicit or receive 19 orders for the delivery of an alcoholic beverage in an area that has adopted a local 20 option under AS 04.11.491. If the area has adopted a local option under 21 AS 04.11.491(a)(1), (2), or (3) [,] or (b)(1) or (2), a package store licensee outside of 22 that local option area may receive orders as provided under a package store shipping 23 endorsement under AS 04.09.460 [AS 04.11.150] but may not solicit in that area or 24 receive orders through an agent or employee in that area. This subsection does not 25 apply to a package store licensee who operates a package store in an area that has 26 adopted a local option under AS 04.11.491(a)(2)(C) or (3)(C) or (b)(2)(C). A person 27 who violates this subsection is punishable upon conviction as provided under 28 AS 04.16.200(a) or (b). 29 * Sec. 16. AS 04.11.010(c) is amended to read: 30 (c) Unless a municipality or established village has adopted a more restrictive 31 local option under AS 04.11.491(g), in a criminal prosecution for possession of

01 alcoholic beverages for barter or sale in violation of (a) of this section, AS 04.09.060, 02 04.09.140, or 04.09.850, the fact that a person 03 (1) possessed more than 10 1/2 liters of distilled spirits or 24 liters or 04 more of wine, or either a half-barrel keg [HALF-KEG] of brewed [MALT] 05 beverages or 12 gallons or more of brewed [MALT] beverages in individual 06 containers in an area where the sale of alcoholic beverages is restricted or prohibited 07 under AS 04.11.491 creates a presumption that the person possessed the alcoholic 08 beverages for barter or sale; 09 (2) sends, transports, or brings more than 10 1/2 liters of distilled 10 spirits or 24 liters or more of wine, or either a half-barrel keg [HALF-KEG] of 11 brewed [MALT] beverages or 12 gallons or more of brewed [MALT] beverages in 12 individual containers to an area where the sale of alcoholic beverages is restricted or 13 prohibited under AS 04.11.491 creates a presumption that the person sent, transported, 14 or brought the alcoholic beverages for barter or sale in the area. 15 * Sec. 17. AS 04.11.015 is amended to read: 16 Sec. 04.11.015. Purchase from nonlicensee prohibited. (a) A person may not 17 purchase or barter for alcoholic beverages from a person who is not a licensee, 18 permittee, or an agent or employee of a licensee or permittee. 19 (b) A person who violates (a) of this section is guilty of a violation. 20 * Sec. 18. AS 04.11.030(b) is amended to read: 21 (b) If an application for the transfer of ownership of a license from a deceased 22 licensee is not made within 180 [90] days of the death of the licensee or within an 23 additional 90 days if an application for transfer of ownership made by the executor is 24 denied, or no petition is made to the board for an extension of time under (c) of this 25 section within the time, the license is forfeited. 26 * Sec. 19. AS 04.11.040 is amended by adding new subsections to read: 27 (d) A person who transfers a license or permit or a controlling interest in a 28 license or permit in violation of this section commits the offense of unauthorized 29 transfer of an alcoholic beverage license or permit. 30 (e) Unauthorized transfer of an alcoholic beverage license or permit is a 31 violation.

01 * Sec. 20. AS 04.11.045 is amended by adding new subsections to read: 02 (c) A limited liability organization that fails to report as required under (a) of 03 this section commits the offense of failure to report a change in member interest or 04 manager. 05 (d) Failure to report a change in member interest or manager is a violation. 06 * Sec. 21. AS 04.11.050 is amended by adding new subsections to read: 07 (d) A corporation that fails to report as required under (a) of this section, other 08 than a corporation described in (c) of this section, commits the offense of failure to 09 report a stock transfer or change of officers or board members. 10 (e) Failure to report a stock transfer or change of officers or board members is 11 a violation. 12 * Sec. 22. AS 04.11.055 is amended by adding new subsections to read: 13 (c) A partnership that fails to report as required under (a) of this section 14 commits the offense of failure to report a transfer of partnership interest or change of 15 general partner. 16 (d) Failure to report a transfer of partnership interest or change of general 17 partner is a violation. 18 * Sec. 23. AS 04.11.060 is amended to read: 19 Sec. 04.11.060. Nonresident distiller, brewer, winery, or wholesaler. A 20 distiller, brewer, winery, or wholesaler whose plant or principal place of business is 21 outside the state may not sell products directly to licensees in the state without 22 (1) obtaining a general wholesale license under AS 04.09.100 23 [AS 04.11.160(a)] for each wholesale distributing point in the state; 24 (2) appointing an agent upon whom process can be served; and 25 (3) obtaining other applicable licenses under the provisions of this title. 26 * Sec. 24. AS 04.11.060 is amended by adding a new subsection to read: 27 (b) A person who violates (a) of this section is guilty of a class A 28 misdemeanor. 29 * Sec. 25. AS 04.11.260 is amended to read: 30 Sec. 04.11.260. Application for new license, endorsement, or permit. (a) An 31 applicant for a new license, endorsement, or permit shall file with the director a

01 written application, signed and sworn to by the applicant, giving the applicant's name, 02 mailing address, telephone number, and electronic mail address. If the applicant is 03 a corporation, the application shall be executed by an [THE] authorized officer 04 [OFFICERS] of the corporation. If the applicant is a partnership, including a limited 05 partnership, the application shall be executed by an authorized general partner. The 06 application must include 07 (1) the type of license, endorsement, or permit desired; 08 (2) a description of the premises for which the license, endorsement, 09 or permit is desired, giving the address by street and number, or other information, so 10 that the location of the premises can be definitely determined; 11 (3) an annotated illustration of the premises designating the areas 12 for manufacture, storage, service, and consumption of alcoholic beverages and, 13 for a license application, the area for warehousing of the alcoholic beverages; 14 (4) the license, endorsement, or permit fee, and, for a multiple fixed 15 counter endorsement, the application fee for each counter; 16 (5) [(4)] the duration of the license, endorsement, or permit desired, 17 including, for a permit, a statement of the event dates and the specific hours of 18 intended operation; 19 (6) [(5)] any other information required by the board. 20 (b) A corporation applying for a license or conditional contractor's permit 21 under AS 04.09.690 shall provide the names and addresses of the president, vice- 22 president, secretary, managing officer, and all stockholders who own 10 percent or 23 more of the stock in the corporation, together with any other information required by 24 the board. 25 (c) An applicant for a new license or permit must include with the application 26 (1) proof that notice required by AS 04.11.310, if any, has been given; 27 (2) any petitions required to be secured under AS 04.11.460 before a 28 license may be issued; 29 (3) evidence of any approval by public authorities required to be 30 obtained [UNDER AS 04.11.090(e), 04.11.220(c), 04.11.230(b), 04.11.240(b), OR 31 04.11.250(b),] before a license or permit may be issued, including

01 (A) written approval under AS 04.09.240 from the 02 governing body of a college or university for a pub license; 03 (B) approval under AS 04.11.365 for a restaurant or eating 04 place license in a multi-unit residential housing development owned or 05 financed by the Alaska Housing Finance Corporation; 06 (C) permission from the commanding officer and the prime 07 contractor for a conditional contractor's permit under AS 04.09.690; 08 (D) for a permit other than a conditional contractor's 09 permit, approval of the law enforcement agency having jurisdiction over 10 the site of the event for which the permit is sought. 11 (d) A partnership, including a limited partnership, that applies for a license or 12 conditional contractor's permit under AS 04.09.690 shall provide information 13 required by the board including the names and addresses of all general partners and all 14 partners with an interest of 10 percent or more. 15 (e) A limited liability organization that applies for a license or conditional 16 contractor's permit under AS 04.09.690 shall provide information required by the 17 board, including the names and addresses of all members with an ownership interest of 18 10 percent or more and the names and addresses of all managers. 19 * Sec. 26. AS 04.11.260 is amended by adding a new subsection to read: 20 (f) This section does not apply to a manufacturer direct shipment license 21 issued under AS 04.09.370. 22 * Sec. 27. AS 04.11.270 is amended to read: 23 Sec. 04.11.270. Application for renewal of license, license with one or more 24 endorsements, or conditional contractor's permit. (a) An application for renewal of 25 a license, license with one or more endorsements, or [RENEWAL OF A] 26 conditional contractor's permit under AS 04.09.690 must include 27 (1) the information required for a new license, endorsement, or permit 28 under AS 04.11.260 except that proof of notice under AS 04.11.310 is not required; 29 and 30 (2) a list of all convictions of the applicant of violations of this title, a 31 regulation adopted under this title, or an ordinance adopted under AS 04.21.010, that

01 occurred in the preceding two calendar years. 02 (b) A license, license with one or more endorsements, or permit shall be 03 renewed as follows: 04 (1) on or before November 1, the director shall mail a renewal 05 application to each licensee whose license, license with one or more endorsements, 06 or permit, unless renewed, will expire on December 31 of that year; the application 07 shall be mailed to the licensee or permittee [AT THE LICENSED PREMISES OR] at 08 a mailing address or electronic mail address furnished by the licensee or permittee; 09 (2) the licensee or permittee shall submit the completed renewal 10 application and the biennial [LICENSE] fee to the director before January 1; 11 (3) a renewal application filed after December 31 is delinquent and 12 must be accompanied by a $500 penalty fee; 13 (4) if December 31 falls on a weekend or a state holiday, the deadline 14 is extended to the first business day following December 31. 15 * Sec. 28. AS 04.11.270 is amended by adding a new subsection to read: 16 (c) This section does not apply to a manufacturer direct shipment license 17 issued under AS 04.09.370. 18 * Sec. 29. AS 04.11.280 is amended to read: 19 Sec. 04.11.280. Application for transfer of a license to another person. (a) 20 An application for transfer of a license or a license with one or more endorsements 21 to another person must contain the same information about the transferee as is required 22 of an applicant for a new license or endorsement under AS 04.11.260 and must 23 include other information required by the board. 24 (b) An application for the transfer of a license or a license with one or more 25 endorsements to another person must be accompanied by a statement, under oath, 26 executed by the transferor, listing all debts of the business and all taxes due by the 27 business. The board shall promptly inform each listed creditor of the application and 28 the amount shown as owed to that creditor. 29 * Sec. 30. AS 04.11.280 is amended by adding new subsections to read: 30 (c) A license is automatically transferred as requested in an application for 31 transfer of the license to another person if

01 (1) the board does not approve or deny the completed application 02 within 90 days after receiving the application; 03 (2) the application is for transfer of a 04 (A) restaurant or eating place license under AS 04.09.210; 05 (B) seasonal restaurant or eating place tourism license under 06 AS 04.09.360; 07 (C) restaurant or eating place license under AS 04.09.210 with 08 one or more endorsements; or 09 (D) seasonal restaurant or eating place tourism license under 10 AS 04.09.360 with one or more endorsements; and 11 (3) the applicant for transfer of a license has not previously had a 12 license or permit suspended or revoked under AS 04.11.370. 13 (d) The board may suspend or revoke a license that was automatically 14 transferred to another person under (c) of this section if, after receiving criminal 15 justice information and records obtained under AS 04.11.295, the board determines 16 that the licensee does not meet the qualifications for transfer of a license to another 17 person under this title. 18 * Sec. 31. AS 04.11.295(a) is amended to read: 19 (a) An applicant for the issuance or transfer of a license or issuance of a 20 conditional contractor's permit under this title shall submit to the board, with the 21 application, the applicant's fingerprints and the fees required by the Department of 22 Public Safety under AS 12.62.160 for criminal justice information and a national 23 criminal history record check. Except as provided under (b) of this section, the board 24 may require an applicant for renewal of a license or a conditional contractor's permit 25 under this title to submit fingerprints and pay the required fees. The board shall submit 26 the fingerprints to the Department of Public Safety to obtain a report of criminal 27 justice information under AS 12.62 and a national criminal history record check under 28 AS 12.62.400. The Department of Public Safety may submit the fingerprints to the 29 Federal Bureau of Investigation for a national criminal history record check. The 30 board shall use the information obtained under this section in its determination of an 31 applicant's qualification for issuance, transfer, or renewal of a license or issuance or

01 renewal of a conditional contractor's permit. 02 * Sec. 32. AS 04.11.295(c)(1) is amended to read: 03 (1) "applicant" means all individuals whose names and addresses are 04 required to be provided with an application for a new license or conditional 05 contractor's permit under AS 04.09.690 [AS 04.11.260]; 06 * Sec. 33. AS 04.11.310 is amended by adding a new subsection to read: 07 (c) This section does not apply to a manufacturer direct shipment license 08 issued under AS 04.09.370. 09 * Sec. 34. AS 04.11 is amended by adding a new section to article 3 to read: 10 Sec. 04.11.315. False statement on application. A person who knowingly 11 makes a false sworn statement that the person does not believe to be true on an 12 application under AS 04.11.260 - 04.11.310 commits the crime of perjury under 13 AS 11.56.200. 14 * Sec. 35. AS 04.11.320(a) is amended to read: 15 (a) An application requesting issuance of a new license or endorsement shall 16 be denied if 17 (1) the board finds, after review of all relevant information, that 18 issuance of the license or endorsement would not be in the best interests of the 19 public; 20 (2) issuance of the license is prohibited by AS 04.11.410, relating to 21 location of premises near churches and schools; 22 (3) the application has not been completed in accordance with 23 AS 04.11.260; 24 (4) issuance of the license or endorsement would violate the 25 restrictions pertaining to the particular license or endorsement imposed under this 26 title; 27 (5) issuance of the license is prohibited under this title as a result of an 28 election conducted under AS 04.11.507; 29 (6) the requirements of AS 04.11.420 - 04.11.450 relating to zoning, 30 ownership and location of the license, and the identity and financing of a licensee 31 have not been met or the requirements of AS 04.11.430(b) relating to location of

01 the endorsement [, AND THE IDENTITY AND FINANCING OF A LICENSEE] 02 have not been met; 03 (7) issuance of the license is prohibited under AS 04.11.400(a) or 04 prohibition of issuance of the license is found necessary under AS 04.11.400(b); 05 (8) the application contains false statements of material fact; 06 (9) the license is sought for the sale of alcoholic beverages in a first or 07 second class city where there are no licensed premises at the time of application unless 08 a majority of the voters have voted not to approve a local option to restrict or prohibit 09 the sale of alcoholic beverages under AS 04.11.491, have voted to approve a local 10 option to allow the type of premises under AS 04.11.491(a)(2) or (3), or have voted to 11 remove a restriction or prohibition on the sale of alcoholic beverages under 12 AS 04.11.495; or 13 (10) the license is sought for the sale of alcoholic beverages in an 14 established village where there are no licensed premises at the time of application 15 unless a majority of the voters have voted not to approve a local option to restrict or 16 prohibit the sale of alcoholic beverages under AS 04.11.491, have voted to approve a 17 local option to allow the type of premises under AS 04.11.491(b)(2), or have voted to 18 remove a restriction or prohibition on the sale of alcoholic beverages under 19 AS 04.11.495. 20 * Sec. 36. AS 04.11.330(a) is amended to read: 21 (a) An application requesting renewal of a license shall be denied if 22 (1) the board finds, after review of all relevant information, that 23 renewal of the license would not be in the best interests of the public; 24 (2) the license has been revoked for any cause; 25 (3) the applicant has not operated the licensed premises for at least 240 26 hours during each of the two preceding calendar years, unless the board determines 27 that the licensed premises are under construction or cannot be operated through no 28 fault of the applicant; 29 (4) the board finds that issuance of an existing license under 30 AS 04.11.400(d) has not encouraged tourist trade; 31 (5) the requirements of AS 04.11.420 - 04.11.450 relating to zoning,

01 ownership of the license, and financing of the licensee have not been met; 02 (6) renewal of the license would violate the restrictions pertaining to 03 the particular license under this title or the license has been operated in violation of a 04 condition or restriction imposed by the board; 05 (7) renewal of the license is prohibited under this title as a result of an 06 election conducted under AS 04.11.507; or 07 (8) the application has not been completed in accordance with 08 AS 04.11.270 [; OR 09 (9) THE LICENSE WAS ISSUED UNDER AS 04.11.400(g), AND 10 THE BOARD FINDS THAT THE PUBLIC CONVENIENCE DOES NOT 11 REQUIRE RENEWAL]. 12 * Sec. 37. AS 04.11.330(a), as amended by sec. 36 of this Act, is amended to read: 13 (a) An application requesting renewal of a license or endorsement shall be 14 denied if 15 (1) the board finds, after review of all relevant information, that 16 renewal of the license or endorsement would not be in the best interests of the public; 17 (2) the license or endorsement has been revoked for any cause; 18 (3) the applicant has not operated the licensed premises for at least 240 19 hours during each of the two preceding calendar years, unless the board determines 20 that the licensed premises are under construction or cannot be operated through no 21 fault of the applicant; 22 (4) the board finds that issuance of an existing beverage dispensary 23 tourism license under AS 04.09.350 or seasonal restaurant or eating place tourism 24 license under AS 04.09.360 [AS 04.11.400(d)] has not encouraged tourist trade; 25 (5) the requirements of AS 04.11.420 - 04.11.450 relating to zoning, 26 ownership of the license, and financing of the licensee have not been met; 27 (6) renewal of the license or endorsement would violate the 28 restrictions pertaining to the particular license or endorsement under this title or the 29 license or endorsement has been operated in violation of a condition or restriction 30 imposed by the board; 31 (7) renewal of the license is prohibited under this title as a result of an

01 election conducted under AS 04.11.507; or 02 (8) the application has not been completed in accordance with 03 AS 04.09.370 or AS 04.11.270. 04 * Sec. 38. AS 04.11.330(b) is amended to read: 05 (b) An application for renewal of a license may be denied if the applicant is 06 delinquent in the payment of taxes, fees, or penalties due to the state or a local 07 government if the tax liability or fees or penalties assessed arise [ARISES] in whole 08 or in part out of the licensed business. 09 * Sec. 39. AS 04.11.330(d) is amended to read: 10 (d) Notwithstanding (a)(3) of this section, a theater license issued under 11 AS 04.09.250, a common carrier dispensary license issued under AS 04.09.260, or 12 a sporting activity or event [RECREATIONAL SITE] license issued under 13 AS 04.09.270 [AS 04.11.210] may be renewed if the license was exercised at least 14 once during each of the two preceding calendar years. 15 * Sec. 40. AS 04.11.330 is amended by adding a new subsection to read: 16 (e) The requirements of (a)(3), (a)(5), and (a)(7) of this section do not apply to 17 a manufacturer direct shipment license issued under AS 04.09.370. 18 * Sec. 41. AS 04.11.340 is amended to read: 19 Sec. 04.11.340. Denial of request for relocation. An application requesting 20 approval for the relocation of licensed premises shall be denied if 21 (1) the board finds, after review of all relevant information, that 22 relocation of the license would not be in the best interests of the public; 23 (2) the relocation is prohibited under AS 04.11.400(a) or (b); 24 (3) the license would be relocated out of the established village, 25 incorporated city, unified municipality, or population area established under 26 AS 04.11.400(a) within which it is located; 27 (4) transfer of ownership is to be made concurrently with the 28 relocation of the licensed premises and a ground for denial of the transfer of 29 ownership under AS 04.11.360 is presented; 30 (5) the application has not been completed in accordance with 31 AS 04.11.290;

01 (6) relocation of the license would result in violation of a local zoning 02 regulation or ordinance [LAW]; 03 (7) relocation of the license would violate the restrictions pertaining to 04 the particular license imposed by this title; 05 (8) relocation of the license is prohibited under this title as a result of 06 an election conducted under AS 04.11.507; or 07 (9) the license was issued under AS 04.11.400(d) [, (e), OR (g)]. 08 * Sec. 42. AS 04.11.340, as amended by sec. 41 of this Act, is amended to read: 09 Sec. 04.11.340. Denial of request for relocation. An application requesting 10 approval for the relocation of licensed premises shall be denied if 11 (1) the board finds, after review of all relevant information, that 12 relocation of the license would not be in the best interests of the public; 13 (2) the relocation is prohibited under AS 04.11.400(a) or (b); 14 (3) the license would be relocated out of the established village, 15 incorporated city, unified municipality, or population area established under 16 AS 04.11.400(a) within which it is located except as provided under 17 AS 04.11.400(k); 18 (4) transfer of ownership is to be made concurrently with the 19 relocation of the licensed premises and a ground for denial of the transfer of 20 ownership under AS 04.11.360 is presented; 21 (5) the application has not been completed in accordance with 22 AS 04.11.290; 23 (6) relocation of the license would result in violation of a local zoning 24 regulation or ordinance; 25 (7) relocation of the license would violate the restrictions pertaining to 26 the particular license imposed by this title; or 27 (8) relocation of the license is prohibited under this title as a result of 28 an election conducted under AS 04.11.507 [; OR 29 (9) THE LICENSE WAS ISSUED UNDER AS 04.11.400(d)]. 30 * Sec. 43. AS 04.11.360 is amended to read: 31 Sec. 04.11.360. Denial of transfer of a license to another person. An

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

01 also applying to transfer the beverage dispensary license required under AS 04.11.135 02 to the same transferee. 03 * Sec. 44. AS 04.11.360, as amended by sec. 43 of this Act, is amended to read: 04 Sec. 04.11.360. Denial of transfer of a license to another person. An 05 application requesting approval of a transfer of a license to another person under this 06 title shall be denied if 07 (1) the board finds, after review of all relevant information, that 08 transfer of a license to another person would not be in the best interests of the public; 09 (2) the application has not been completed in accordance with 10 AS 04.11.280; 11 (3) the application contains false statements of material fact; 12 (4) the transferor has not paid all debts or taxes arising from the 13 conduct of the business licensed under this title unless 14 (A) the transferor gives security for the payment of the debts or 15 taxes satisfactory to the creditor or taxing authority; or 16 (B) the transfer is under a promise given as collateral by the 17 transferor to the transferee in the course of an earlier transfer of the license 18 under which promise the transferor is obliged to transfer the license back to the 19 transferee in the event of default in payment for property conveyed as part of 20 the earlier transfer of the license; 21 (5) transfer of the license to another person would result in violation of 22 the provisions of this title relating to identity of licensees and financing of licensees; 23 (6) transfer of the license to another person would violate the 24 restrictions pertaining to the particular license under this title; 25 (7) transfer of the license to another person is prohibited under the 26 provisions of this title as a result of an election conducted under AS 04.11.507; or 27 (8) the prospective transferee does not have the qualifications required 28 under this title of an original applicant; however, an application may not be denied 29 because a prospective transferee under AS 04.09.350(c)(2) [AS 04.11.400(d)(2)] does 30 not have the qualifications required under AS 04.09.350(c)(1) [AS 04.11.400(d)(1); 31 (9) THE LICENSE WAS ISSUED UNDER AS 04.11.100(f);

01 HOWEVER, THIS PARAGRAPH DOES NOT APPLY TO A BEVERAGE 02 DISPENSARY LICENSE ISSUED BEFORE JUNE 6, 1985, UNDER FORMER 03 AS 04.11.400(j) IF THE TRANSFER DOES NOT INVOLVE A CHANGE IN 04 LOCATION; OR 05 (10) THE LICENSE WAS ISSUED UNDER AS 04.11.135, UNLESS 06 THE TRANSFEROR IS ALSO APPLYING TO TRANSFER THE BEVERAGE 07 DISPENSARY LICENSE REQUIRED UNDER AS 04.11.135 TO THE SAME 08 TRANSFEREE]. 09 * Sec. 45. AS 04.11.365 is amended to read: 10 Sec. 04.11.365. Licensed premises in multi-unit residential housing 11 developments owned or financed by the Alaska Housing Finance Corporation. 12 For premises located in a multi-unit residential housing development owned or 13 financed by the Alaska Housing Finance Corporation, the board may issue a new 14 license under AS 04.11.320, renew a license under AS 04.11.330, or approve a request 15 for relocation under AS 04.11.340 if the Alaska Housing Finance Corporation 16 authorizes the use under AS 18.56.230 and 17 (1) the license is [FOR] a 18 (A) restaurant or eating place license under AS 04.09.210 19 [AS 04.11.100]; or 20 (B) seasonal restaurant or eating place tourism license 21 under AS 04.09.360; or 22 (2) the premises are covered by a restaurant endorsement 23 [DESIGNATED BY THE BOARD AS A RESTAURANT] under AS 04.09.450 24 [AS 04.16.049]. 25 * Sec. 46. AS 04.11.370(a) is amended to read: 26 (a) A license, endorsement, or permit shall be suspended or revoked if the 27 board finds 28 (1) misrepresentation of a material fact on an application made under 29 this title or a regulation adopted under this title; 30 (2) continuation of the manufacture, sale, or service of alcoholic 31 beverages by the licensee or permittee would be contrary to the best interests of the

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

01 criminal negligence failed to act in accordance with the duty prescribed under 02 AS 04.21.030 with the result that the agent or employee violates the law, condition or 03 restriction, regulation, or ordinance. 04 * Sec. 47. AS 04.11.395 is amended to read: 05 Sec. 04.11.395. Conditions [BOARD IMPOSED CONDITIONS] or 06 restrictions imposed on a license, endorsement, or permit. The board may, in the 07 best interests of the public, impose conditions or restrictions on a license, 08 endorsement, or permit issued under this chapter. 09 * Sec. 48. AS 04.11.395 is amended by adding a new subsection to read: 10 (b) Except for a conditional contractor's permit issued under AS 04.09.690, 11 the board may delegate to the director the authority to impose, in the best interests of 12 the public, conditions or restrictions on a permit issued under this chapter. 13 * Sec. 49. AS 04.11.400(a) is amended to read: 14 (a) Except as provided in (d), (f), and (h) - (k) [(d) - (k)] of this section and 15 AS 04.11.405, a new license may not be issued and the board may prohibit relocation 16 of an existing license 17 (1) outside an established village, incorporated city, unified 18 municipality, or organized borough if, after the issuance or relocation, there would be 19 (A) more than one restaurant or eating place license for each 1,500 population or 20 fraction of that population, or (B) more than one license of each other type, including 21 licenses that have been issued under (d) [OR (e)] of this section, for each 3,000 22 population or fraction of that population, in a radius of five miles of the licensed 23 premises, excluding the populations of established villages, incorporated cities, unified 24 municipalities, and organized boroughs that are wholly or partly included within the 25 radius; 26 (2) inside an established village, incorporated city, or unified 27 municipality if, after the issuance or relocation, there would be inside the established 28 village, incorporated city, or unified municipality 29 (A) more than one restaurant or eating place license for each 30 1,500 population or fraction of that population; or 31 (B) more than one license of each other type, including licenses

01 that have been issued under (d) [OR (e)] of this section, for each 3,000 02 population or fraction of that population; 03 (3) inside an organized borough but outside an established village or 04 incorporated city located within the borough if, after the issuance or relocation, there 05 would be inside the borough, but outside the established villages and incorporated 06 cities located within the borough, 07 (A) more than one restaurant or eating place license for each 08 1,500 population or fraction of that population; or 09 (B) more than one license of each other type, including licenses 10 that have been issued under (d) [OR (e)] of this section, for each 3,000 11 population or fraction of that population excluding the population of those 12 established villages that have adopted a local option under AS 04.11.491(b)(1), 13 (3), or (4), and excluding the population of incorporated cities located within 14 the organized borough. 15 * Sec. 50. AS 04.11.400(a), as amended by sec. 49 of this Act, is amended to read: 16 (a) Except as provided in (f), (i), and (k) [(d), (f), and (h) - (k)] of this section 17 and AS 04.11.405, a new license may not be issued and the board may prohibit 18 relocation of an existing license 19 (1) outside an established village, incorporated city, unified 20 municipality, or organized borough if, after the issuance or relocation, in a radius of 21 five miles of the licensed premises, excluding the populations of established 22 villages, incorporated cities, unified municipalities, and organized boroughs that 23 are wholly or partly included within the radius, there would be 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 brewery retail, one winery retail, and 27 one distillery retail license for each 9,000 population or fraction of that 28 population; or 29 (C) more than one license of each other type, except a type 30 listed in (i) of this section [INCLUDING LICENSES THAT HAVE BEEN 31 ISSUED UNDER (d) OF THIS SECTION], for each 3,000 population or

01 fraction of that population [, IN A RADIUS OF FIVE MILES OF THE 02 LICENSED PREMISES, EXCLUDING THE POPULATIONS OF 03 ESTABLISHED VILLAGES, INCORPORATED CITIES, UNIFIED 04 MUNICIPALITIES, AND ORGANIZED BOROUGHS THAT ARE 05 WHOLLY OR PARTLY INCLUDED WITHIN THE RADIUS]; 06 (2) inside an established village, incorporated city, or unified 07 municipality if, after the issuance or relocation, there would be inside the established 08 village, incorporated city, or unified municipality 09 (A) more than one restaurant or eating place license for each 10 1,500 population or fraction of that population; [OR] 11 (B) more than one brewery retail, one winery retail, and 12 one distillery retail license for each 9,000 population or fraction of that 13 population; or 14 (C) more than one license of each other type, except a type 15 listed in (i) of this section [INCLUDING LICENSES THAT HAVE BEEN 16 ISSUED UNDER (d) OF THIS SECTION], for each 3,000 population or 17 fraction of that population; 18 (3) inside an organized borough but outside an established village or 19 incorporated city located within the borough if, after the issuance or relocation, there 20 would be inside the borough, but outside the established villages and incorporated 21 cities located within the borough, excluding the population of those established 22 villages that have adopted a local option under AS 04.11.491(b)(1) or (3), and 23 excluding the population of incorporated cities located within the organized 24 borough; 25 (A) more than one restaurant or eating place license for each 26 1,500 population or fraction of that population; [OR] 27 (B) more than one brewery retail, one winery retail, and 28 one distillery retail license for each 9,000 population or fraction of that 29 population; or 30 (C) more than one license of each other type, except a type 31 listed in (i) of this section [INCLUDING LICENSES THAT HAVE BEEN

01 ISSUED UNDER (d) OF THIS SECTION], for each 3,000 population or 02 fraction of that population [EXCLUDING THE POPULATION OF THOSE 03 ESTABLISHED VILLAGES THAT HAVE ADOPTED A LOCAL OPTION 04 UNDER AS 04.11.491(b)(1), (3), OR (4), AND EXCLUDING THE 05 POPULATION OF INCORPORATED CITIES LOCATED WITHIN THE 06 ORGANIZED BOROUGH]. 07 * Sec. 51. AS 04.11.400(i) is repealed and reenacted to read: 08 (i) This section does not apply to a 09 (1) brewery manufacturer license issued under AS 04.09.020; 10 (2) winery manufacturer license issued under AS 04.09.030; 11 (3) distillery manufacturer license issued under AS 04.09.040; 12 (4) general wholesale license issued under AS 04.09.100; 13 (5) limited wholesale brewed beverage and wine license under 14 AS 04.09.110; 15 (6) outdoor recreation lodge license issued under AS 04.09.280; 16 (7) destination resort license issued under AS 04.09.310; 17 (8) beverage dispensary tourism license issued under AS 04.09.350; 18 (9) seasonal restaurant or eating place tourism license issued under 19 AS 04.09.360; 20 (10) manufacturer direct shipment license issued under AS 04.09.370; 21 (11) conditional contractor's permit issued under AS 04.09.690. 22 * Sec. 52. AS 04.11.400(k) is amended to read: 23 (k) The board may allow the relocation of an existing beverage dispensary 24 license under AS 04.09.200 or former AS 04.11.090 to a restaurant, eating place, or 25 hotel, motel, resort, or similar business that contains a restaurant or eating place, an 26 existing package store license under AS 04.09.230 or former AS 04.11.150, an 27 existing brewery retail license under AS 04.09.320, an existing winery retail 28 license under AS 04.09.330, or an existing distillery retail license under 29 AS 04.09.340 in a borough with a population of 50,000 [60,000] or more [IF THE 30 GOVERNING BODY OF THE BOROUGH APPROVES THE RELOCATION. 31 HOWEVER, IF THE RELOCATION OF THE LICENSE IS] into or within an

01 incorporated city in the borough. The [, THE] board may not approve the relocation 02 unless, at the time of application, the existing number of issued licenses of the 03 type under consideration for relocation located within the borough exceeds the 04 maximum allowed under (a) of this section, and the governing bodies of both the 05 borough and the incorporated city approve the relocation. The board may allow not 06 more than three relocations into each city [IN A BOROUGH] under this subsection 07 each decade. In this subsection, "decade" means each 10-year period beginning 08 April 1 in a year ending in zero. 09 * Sec. 53. AS 04.11 is amended by adding a new section to read: 10 Sec. 04.11.405. Petition for additional restaurant or eating place licenses 11 for certain local governing bodies. (a) A first class city, a home rule city, or a unified 12 municipality may submit a resolution to the board, adopted by its legislative body, 13 petitioning the board for the issuance of additional restaurant or eating place licenses 14 under AS 04.11.100 that exceed the limits under AS 04.11.400(a) in accordance with 15 this section. 16 (b) The board, following a public hearing, may issue one or more additional 17 restaurant or eating place licenses under AS 04.11.100, within the boundaries of the 18 municipality, if the board finds that 19 (1) the municipality 20 (A) serves as a center for commercial activity within and 21 outside the boundaries of the municipality by providing goods and services to a 22 population that is greater than the permanent resident population within the 23 boundaries of the municipality; 24 (B) maintains a local law enforcement department; 25 (C) exercises planning or land-use authority; and 26 (D) at the time of the petition, meets or exceeds the maximum 27 limit under AS 04.11.400(a) for restaurant or eating place licenses issued under 28 AS 04.11.100; 29 (2) the number of additional licenses does not exceed the number of 30 additional licenses requested by the municipality in the petition; and 31 (3) granting the additional licenses is in the public interest.

01 (c) A resolution submitted by a municipality under (a) of this section must 02 include 03 (1) information demonstrating that the petitioner meets the criteria in 04 (b) of this section; 05 (2) the most recent estimate of the number of people who claim 06 residency or work outside the boundaries of the municipality and who are served by 07 the municipality, including the 08 (A) population located outside the boundaries of the 09 municipality that relies on the municipality for goods and services; 10 (B) visitor population; and 11 (C) nonresident worker population that resides in the 12 municipality, but that is not counted in the latest federal or state census for the 13 municipality; 14 (3) the number of existing restaurant or eating place licenses 15 (A) within the boundaries of the municipality; 16 (B) in a geographic area that the municipality serves under (2) 17 of this subsection; 18 (4) information showing that the number of additional licenses 19 requested does not exceed one license for each 1,500 population of the population 20 identified under (2) of this subsection; and 21 (5) additional justification, as necessary, to demonstrate that granting 22 of the additional licenses is in the public interest. 23 (d) If the board grants a petition for additional restaurant or eating place 24 licenses under this section to a municipality, the board may not authorize additional 25 restaurant or eating place licenses to the same municipality under this section for the 26 following year. 27 * Sec. 54. AS 04.11.405(a), enacted by sec. 53 of this Act, is amended to read: 28 (a) A first class city, a home rule city, or a unified municipality may submit a 29 resolution to the board, adopted by its legislative body, petitioning the board for the 30 issuance of additional restaurant or eating place licenses under AS 04.09.210 31 [AS 04.11.100] that exceed the limits under AS 04.11.400(a) in accordance with this

01 section. 02 * Sec. 55. AS 04.11.405(b), enacted by sec. 53 of this Act, is amended to read: 03 (b) The board, following a public hearing, may issue one or more additional 04 restaurant or eating place licenses under AS 04.09.210 [AS 04.11.100], within the 05 boundaries of the municipality, if the board finds that 06 (1) the municipality 07 (A) serves as a center for commercial activity within and 08 outside the boundaries of the municipality by providing goods and services to a 09 population that is greater than the permanent resident population within the 10 boundaries of the municipality; 11 (B) maintains a local law enforcement department; 12 (C) exercises planning or land-use authority; and 13 (D) at the time of the petition, meets or exceeds the maximum 14 limit under AS 04.09.210 [AS 04.11.400(a)] for restaurant or eating place 15 licenses issued under AS 04.11.100; 16 (2) the number of additional licenses does not exceed the number of 17 additional licenses requested by the municipality in the petition; and 18 (3) granting the additional licenses is in the public interest. 19 * Sec. 56. AS 04.11.420(a) is amended to read: 20 (a) A person may not be issued a new license, endorsement, or permit or 21 transfer a license or a license with endorsement to a new location in a municipality 22 if a zoning regulation or ordinance prohibits the land use [SALE OR 23 CONSUMPTION OF ALCOHOLIC BEVERAGES] unless a variance of the 24 regulation or ordinance has been approved. 25 * Sec. 57. AS 04.11.420 is amended by adding a new subsection to read: 26 (c) Notwithstanding (a) of this section, a license may be renewed if 27 (1) the license was issued before the effective date of a change to a 28 local zoning regulation or ordinance that would prohibit the renewal; and 29 (2) at the time the license was issued, the license conformed with local 30 zoning regulations and ordinances. 31 * Sec. 58. AS 04.11.430 is amended to read:

01 Sec. 04.11.430. Person and location. (a) Each license shall be issued to a 02 specific individual or individuals, to a partnership, including a limited partnership, to a 03 limited liability organization, [OR] to a corporation, to a government entity, or to a 04 tribal organization. If the license is issued to a corporation or a limited liability 05 organization, the registered agent of the corporation or limited liability organization 06 may [MUST] be either an individual resident of the state or a domestic corporation 07 authorized to transact business in this state whose business office is the same as 08 the registered office. 09 (b) Except for a license authorizing the sale of alcoholic beverages on a 10 common carrier, a specific location shall be indicated on the license, endorsement, or 11 permit as the licensed premises, the principal address of which shall be indicated on 12 the license, endorsement, or permit. The mailing address, telephone number, and 13 electronic mailing address of a licensee or, if the licensee is a corporation, the 14 address, telephone number, and electronic mailing address of the registered office 15 of the corporation must be kept current and on file in the main office of the board. 16 * Sec. 59. AS 04.11.450(b) is amended to read: 17 (b) A person who is a representative or owner of a wholesale business 18 licensed under AS 04.09.100 or 04.09.110 [, BREWERY, WINERY, BOTTLING 19 WORKS, OR DISTILLERY] may not be issued, solely or together with others, a 20 manufacturer license issued under AS 04.09.020 - 04.09.040, or a retail license 21 issued under AS 04.09.200 - 04.09.370 [BEVERAGE DISPENSARY LICENSE, A 22 RESTAURANT OR EATING PLACE LICENSE, OR PACKAGE STORE 23 LICENSE. A HOLDER OF A BEVERAGE DISPENSARY LICENSE MAY BE 24 ISSUED A BREWPUB LICENSE, SUBJECT TO THE PROVISIONS OF 25 AS 04.11.135. THE PROHIBITION AGAINST ISSUANCE OF A RESTAURANT 26 OR EATING PLACE LICENSE IMPOSED UNDER THIS SUBSECTION DOES 27 NOT APPLY TO A RESTAURANT OR EATING PLACE LICENSE ISSUED ON 28 OR BEFORE OCTOBER 1, 1996 OR A RESTAURANT OR EATING PLACE 29 LICENSE ISSUED UNDER AN APPLICATION FOR A RESTAURANT OR 30 EATING PLACE LICENSE APPROVED ON OR BEFORE OCTOBER 1, 1996]. 31 * Sec. 60. AS 04.11.450(e) is amended to read:

01 (e) A holder of either a general wholesale license or a limited wholesale 02 brewed [MALT] beverage and wine license may not be employed by or act as the 03 agent or employee of the holder of a manufacturer [BEVERAGE DISPENSARY OR 04 PACKAGE STORE] license under AS 04.09.020 - 04.09.040 or a retail license 05 under AS 04.09.200 - 04.09.370. 06 * Sec. 61. AS 04.11.450 is amended by adding new subsections to read: 07 (g) The holder of a manufacturer license that annually produces in total 08 300,000 barrels or more of brewed beverages or mead or cider containing less than 8.5 09 percent alcohol by volume, 50,000 nine-liter-equivalent cases or more of wine, sake, 10 or mead or cider containing 8.5 percent or more alcohol by volume, or 50,000 nine- 11 liter-equivalent cases or more of distilled spirits may not be issued, solely or together 12 with others, a license under AS 04.09.100 - 04.09.370. 13 (h) For purposes of calculating the volume that the holder of a manufacturer 14 license produces under this section, the volume of production must include all 15 production by 16 (1) the holder of the manufacturer's license; and 17 (2) an officer, director, agent, employee, or affiliate of the holder; in 18 this paragraph, "affiliate" means a person that directly or indirectly, through one or 19 more intermediaries, controls, or is controlled by, or is under common control with, a 20 corporation. 21 * Sec. 62. AS 04.11.460 is amended by adding a new subsection to read: 22 (d) This section does not apply to a manufacturer direct shipment license 23 issued under AS 04.09.370. 24 * Sec. 63. AS 04.11.470 is amended to read: 25 Sec. 04.11.470. Objection. A person may object to an application for issuance, 26 renewal, transfer of location, or transfer to another person of a license, for issuance, 27 renewal, or transfer to another person of a license with one or more 28 endorsements, for issuance of an endorsement or for issuance of a permit, by 29 serving upon the applicant and the board the reasons for the objection. The board shall 30 consider the objections and testimony received at a hearing conducted under 31 AS 04.11.510(b)(2) when it considers the application. An objection and the record of a

01 hearing conducted under AS 04.11.510(b)(2) shall be retained as part of the board's 02 permanent record of its review of the application. 03 * Sec. 64. AS 04.11.480(a) is amended to read: 04 (a) A local governing body may protest the issuance, renewal, relocation, or 05 transfer to another person of a license, issuance, renewal, or transfer to another 06 person of a license with one or more endorsements, or issuance of an 07 endorsement by sending the board and the applicant a protest and the reasons for the 08 protest within 60 days of the date [RECEIPT FROM THE BOARD] of the notice of 09 filing of the application. A protest received after the 60-day period may not be 10 accepted by the board, and in no event may a protest cause the board to reconsider an 11 approved renewal, relocation, or transfer. The local governing body may protest the 12 continued operation of a license or endorsement during the second year of the 13 biennial license period by sending the board and the licensee a protest and the reasons 14 for the protest by January 31 of the second year of the license. The procedures for 15 action on a protest of continued operation of a license or endorsement are the same as 16 the procedures for action on a protest of a renewal application. The board shall 17 consider a protest and testimony received at a hearing conducted under 18 AS 04.11.510(b)(2) or (4) when it considers the application or continued operation, 19 and the protest and the record of the hearing conducted under AS 04.11.510(b)(2) or 20 (4) shall be kept as part of the board's permanent record of its review. If an application 21 or continued operation is protested, the board shall deny the application or continued 22 operation unless the board finds that the protest is arbitrary, capricious, or [AND] 23 unreasonable. 24 * Sec. 65. AS 04.11.480(b) is amended to read: 25 (b) If the permanent residents residing outside of but within two miles of an 26 incorporated city or an established village wish to protest the issuance, renewal, or 27 transfer of a license or a license with one or more endorsements within the city or 28 village, they shall file with the board a petition meeting the requirements of 29 AS 04.11.510(b)(3) requesting a public hearing not later than [WITHIN] 30 days 30 after [OF] the posting of notice required under AS 04.11.310, or by December 31 of 31 the year application is made for renewal of a license. The board shall consider

01 testimony received at a hearing conducted under AS 04.11.510(b)(3) when it considers 02 the application, and the record of a hearing conducted under AS 04.11.510(b)(3) shall 03 be retained as part of the board's permanent record of its review of the application. 04 * Sec. 66. AS 04.11.480(c) is amended to read: 05 (c) A local governing body may recommend that a license be issued, renewed, 06 relocated, or transferred, or that a license with one or more endorsements be 07 issued, renewed, or transferred to another person, with conditions. The board shall 08 consider recommended conditions and testimony received at a hearing conducted 09 under AS 04.11.510(b)(2) or (4) when it considers the application or continued 10 operation, and the recommended conditions and the record of the hearing conducted 11 under AS 04.11.510(b)(2) or (4) shall be kept as part of the board's permanent record 12 of its review. If the local governing body recommends conditions, the board shall 13 impose the recommended conditions unless the board finds that the recommended 14 conditions are arbitrary, capricious, or unreasonable. If a condition recommended by a 15 local governing body is imposed on a licensee, the local governing body shall assume 16 responsibility for monitoring compliance with the condition, except as otherwise 17 provided by the board. 18 * Sec. 67. AS 04.11.480 is amended by adding a new subsection to read: 19 (e) If the location or proposed location of a license is within the boundaries of 20 more than one local government, each local governing body may protest the issuance, 21 renewal, relocation, or transfer of a license. 22 * Sec. 68. AS 04.11.491(a) is amended to read: 23 (a) If a majority of the persons voting on the question vote to approve the 24 option, a municipality shall adopt a local option to prohibit 25 (1) the sale of alcoholic beverages; 26 (2) the sale of alcoholic beverages except by one or more of the 27 following listed on the ballot: 28 (A) a restaurant or eating place licensee; 29 (B) a beverage dispensary licensee; 30 (C) a package store licensee; 31 (D) a caterer holding a beverage dispensary caterer's permit

01 under AS 04.09.610 [AS 04.11.230] to sell alcoholic beverages at a site within 02 the municipality who is also licensed under a beverage dispensary license for 03 premises outside of the municipality; 04 (E) a winery manufacturer licensee; 05 (F) a winery manufacturer licensee, except that sales may 06 occur only to a person licensed under this title or in another state or country; 07 [OR] 08 (G) an outdoor recreation lodge licensee; or 09 (H) a package store licensee limited to selling only beer and 10 wine; 11 (3) the sale of alcoholic beverages except on premises operated by the 12 municipality and under a type of licensed premises listed on the ballot, that may 13 include one or more of the following: 14 (A) a restaurant or eating place license; 15 (B) a beverage dispensary license; or 16 (C) a package store license; 17 (4) the sale and importation of alcoholic beverages; or 18 (5) the sale, importation, and possession of alcoholic beverages. 19 * Sec. 69. AS 04.11.491(b) is amended to read: 20 (b) If a majority of the persons voting on the question vote to approve the 21 option, an established village shall exercise a local option to prohibit 22 (1) the sale of alcoholic beverages; 23 (2) the sale of alcoholic beverages except by one or more of the 24 following listed on the ballot: 25 (A) a restaurant or eating place licensee; 26 (B) a beverage dispensary licensee; 27 (C) a package store licensee; 28 (D) a caterer holding a beverage dispensary caterer's permit 29 under AS 04.09.610 [AS 04.11.230] to sell alcoholic beverages at a site within 30 the established village who is also licensed under a beverage dispensary license 31 for premises outside of the established village;

01 (E) a winery manufacturer licensee; 02 (F) a winery manufacturer licensee, except that sales may 03 occur only to a person licensed under this title or in another state or country; 04 [OR] 05 (G) an outdoor recreation lodge licensee; or 06 (H) a package store licensee limited to selling only beer and 07 wine; 08 (3) the sale and importation of alcoholic beverages; or 09 (4) the sale, importation, and possession of alcoholic beverages. 10 * Sec. 70. AS 04.11.491(d) is amended to read: 11 (d) The ballot for an election on the option set out in (a)(2)(A), (a)(3)(A), or 12 (b)(2)(A) of this section must include a summary explanation of the authority to sell 13 alcoholic beverages given to a restaurant or eating place under AS 04.09.210(a) 14 [AS 04.11.100(a)]. The ballot for an election on the option set out in (a)(2)(B) or (D), 15 (a)(3)(B), or (b)(2)(B) or (D) of this section must include a statement that a beverage 16 dispensary license is commonly known as a "bar" and a summary explanation of the 17 authority to sell alcoholic beverages given to a beverage dispensary licensee under 18 AS 04.09.200 [AS 04.11.090(a)]. The ballot for an election on the option set out in 19 (a)(2)(C), (a)(3)(C), or (b)(2)(C) of this section must include a statement that a 20 package store license is commonly known as a "liquor store" and a summary 21 explanation of the authority to sell alcoholic beverages given to a package store 22 licensee under AS 04.09.230 [AS 04.11.150(a)]. 23 * Sec. 71. AS 04.11.491(g) is amended to read: 24 (g) If a municipality or established village has adopted a local option under 25 (a)(1), (2), (3), or (4), or (b)(1), (2), or (3) of this section, the municipality or 26 established village, as part of the local option question or questions placed before the 27 voters, may 28 (1) adopt an amount of alcoholic beverages that may be imported that 29 is less than the amounts set out in AS 04.09.460(e) [AS 04.11.150(g)]; 30 (2) adopt an amount of alcoholic beverages that would give rise to a 31 presumption that the person possessed the alcoholic beverages for sale; the amounts

01 adopted under this paragraph may be lower than those set out in AS 04.11.010(c); 02 (3) opt to not apply a class C felony to violations of AS 04.16.051 that 03 apply solely by reason of the municipality or established village adopting a local 04 option under this section. 05 * Sec. 72. AS 04.11.510(b) is amended to read: 06 (b) The board may review an application for the issuance, renewal, transfer of 07 location, or transfer to another person of a license without affording the applicant 08 notice or hearing, except 09 (1) if an application is denied, written [THE] notice of denial shall be 10 furnished immediately to the applicant [IMMEDIATELY IN WRITING] stating the 11 reason for the denial in clear and concise language; the notice of denial must inform 12 the applicant that the applicant is entitled to submit a request to the director, within 13 15 days after receiving the notice of denial, for an informal conference with either 14 the director or the board, and that, if not satisfied by the informal conference, the 15 applicant is then entitled to a formal hearing conducted by the office of administrative 16 hearings (AS 44.64.010); the director shall respond to a request for an informal 17 conference or a formal hearing in a timely manner and shall hold an informal 18 conference within 15 days after receiving a request for an informal conference 19 unless the applicant and the director agree in writing to waive or extend the time 20 limit; if the applicant requests an informal conference, the running of the period 21 for requesting a formal hearing is tolled from the date the director receives the 22 request for the conference until the day after the date of the conference; if the 23 applicant requests a formal hearing, the office of administrative hearings shall adhere 24 to AS 44.62.330 - 44.62.630 (Administrative Procedure Act); all interested persons 25 may be heard at the hearing [AND UNLESS WAIVED BY THE APPLICANT AND 26 THE BOARD, THE FORMAL HEARING SHALL BE HELD IN THE AREA FOR 27 WHICH THE APPLICATION IS REQUESTED]; 28 (2) the board may, on its own initiative or in response to an objection 29 or protest, hold a hearing to ascertain the reaction of the public or a local governing 30 body to an application if a hearing is not required under this subsection; the board 31 shall send notice of a hearing conducted under this paragraph 20 days in advance of

01 the hearing to the person who filed the objection or protest, to a [EACH] 02 community council, if the licensed premises or proposed licensed premises 03 described in the application is located within the boundaries of the community 04 council, [ESTABLISHED WITHIN THE MUNICIPALITY] and to each nonprofit 05 community organization entitled to notification under AS 04.11.310(b); 06 (3) if a petition containing the signatures of 35 percent of the adult 07 residents having a permanent place of abode outside of but within two miles of an 08 incorporated city or an established village is filed with the board, the board shall hold 09 a public hearing on the question of whether the issuance, renewal, or transfer of the 10 license in the city or village would be in the public interest; 11 (4) if a protest to the issuance, renewal, transfer of location or transfer 12 to another person of a license made by a local governing body is based on a question 13 of law, the board shall hold a public hearing. 14 * Sec. 73. AS 04.11.510(c) is amended to read: 15 (c) Unless the grounds for the suspension or revocation are under 16 AS 04.11.370(a)(4), board proceedings to suspend or revoke a license shall be 17 conducted in accordance with AS 44.62.360 - 44.62.630 [AS 44.62.330 - 44.62.630] 18 (Administrative Procedure Act), except that the licensee may submit a request to the 19 director within 15 days after the accusation is served on the licensee for [IS 20 ENTITLED TO] an opportunity to informally confer with the director or the board 21 [WITHIN 10 DAYS AFTER THE ACCUSATION IS SERVED UPON THE 22 LICENSEE]. Notice of the opportunity for an informal conference shall be served on 23 [UPON] the licensee along with the accusation. The director shall respond to a 24 request for an informal conference or a formal hearing in a timely manner. The 25 director shall hold an informal conference within 15 days after receiving a 26 request for an informal conference unless the applicant and the director agree in 27 writing to waive or extend the time limit. After the informal conference, the 28 board shall hold a formal hearing on the accusation at the next regularly 29 scheduled board meeting that occurs 20 days or more after service of the 30 accusation [IF AN INFORMAL CONFERENCE IS REQUESTED, THE RUNNING 31 OF THE PERIOD OF TIME SPECIFIED IN AS 44.62.380 FOR FILING A NOTICE

01 OF DEFENSE IS TOLLED FROM THE DATE OF RECEIPT OF THE REQUEST 02 FOR THE CONFERENCE UNTIL THE DAY FOLLOWING THE DATE OF THE 03 CONFERENCE UNLESS EXTENDED BY THE BOARD. AFTER THE 04 CONFERENCE, THE LICENSEE, IF NOT SATISFIED BY THE RESULTS OF 05 THE CONFERENCE, MAY OBTAIN A HEARING BY FILING A NOTICE OF 06 DEFENSE AS PROVIDED IN AS 44.62.390]. If the grounds for suspension or 07 revocation are under AS 04.11.370(a)(4), the licensee is not entitled to notice and 08 hearing under AS 44.62.360 - 44.62.630 [AS 44.62.330 - 44.62.630] on the merits of 09 the suspension or revocation. However, the board shall afford the licensee notice and 10 hearing on the issue of what administrative sanction to impose under AS 04.16.180. 11 * Sec. 74. AS 04.11.520 is amended to read: 12 Sec. 04.11.520. Notice to local governing body. After receipt of an 13 application for the issuance or renewal of a license, the renewal of a license with 14 one or more endorsements, the transfer of a license or a license with one or more 15 endorsements to another person, transfer of a license to a new location, or the 16 issuance of an endorsement from within [(1)] an established village, [(2)] an 17 incorporated city, [(3)] an organized borough, or [(4)] a unified municipality, the 18 board shall notify [TRANSMIT WRITTEN NOTICE TO] the local governing body in 19 writing within 10 business days so that the local governing body may protest under 20 AS 04.11.480. 21 * Sec. 75. AS 04.11.535(a) is amended to read: 22 (a) If, in a proceeding to suspend or revoke a license, endorsement, or permit 23 under AS 04.11.370(a)(5), the board finds that a sentencing report, record of 24 conviction, or judgment sent to the board under AS 12.55.025(b) or a report prepared 25 by the investigating or arresting officers in connection with the violation, contains 26 information that if uncontradicted or unexplained would provide a ground for 27 suspension or revocation under AS 04.11.370(a)(5), the licensee or permittee has the 28 burden of proof to establish that the licensee or permittee neither knowingly allowed 29 the violation nor recklessly or with criminal negligence failed to act in accordance 30 with the duty prescribed under AS 04.21.030. 31 * Sec. 76. AS 04.11.540 is amended to read:

01 Sec. 04.11.540. License, endorsement, and conditional contractor's permit 02 renewal and expiration. Notwithstanding AS 04.11.680, an application for renewal 03 of a license, endorsement, or a conditional contractor's permit under 04 AS 04.09.690 issued for the two calendar years ending December 31 or of a seasonal 05 license issued for parts of those calendar years may be submitted up until the next 06 February 28. If a complete application for renewal has not been filed by February 28 07 or the required fees and the penalty fees have not been paid by that date, the license, 08 endorsement, or conditional contractor's permit expires at 12:00 midnight 09 February 28. A new license may not be issued to the holder of an expired license for 10 the same premises except on proof satisfactory to the board of good cause for the 11 failure to file and pay. 12 * Sec. 77. AS 04.11.560(b) is amended to read: 13 (b) A decision by the board relating to the issuance, renewal, transfer, 14 relocation, suspension, or revocation of a license or an endorsement under this title 15 may be appealed to the superior court under AS 44.62.560. 16 * Sec. 78. AS 04.11.570 is amended to read: 17 Sec. 04.11.570. Refund and forfeiture of fees. (a) If an application for a 18 license or endorsement is denied, the board shall refund the license fee but not 19 [LESS] the application fee. 20 (b) A license or endorsement fee may not be refunded after the license or 21 endorsement has been issued unless the board determines it has erred in the issuance 22 through no fault of the applicant. 23 (c) If a license, endorsement, or permit is revoked on grounds that 24 statements made in the application are untrue, the [LICENSE] fee paid by the 25 applicant is forfeited to the state. 26 * Sec. 79. AS 04.11.580(b) is amended to read: 27 (b) The licensee shall surrender a current license to the board not later than 28 [WITHIN] 10 days after the loss or vacation of the licensed premises. 29 * Sec. 80. AS 04.11.590(a) is amended to read: 30 (a) Money collected from licenses, endorsements, permits, and civil fines 31 under this title shall be transferred by the board to the Department of Commerce,

01 Community, and Economic Development and deposited in the general fund. 02 * Sec. 81. AS 04.11.610 is amended to read: 03 Sec. 04.11.610. Allocation [REFUND] to municipalities. (a) An amount 04 equal to the sum of the biennial [BIENNIAL] license fees, excluding annual 05 wholesale fees and biennial wholesale license fees, collected within a municipality 06 shall be allocated [REFUNDED] semi-annually to the municipality. 07 (b) If the officers of a municipality fail to actively enforce local ordinances, 08 this title, laws of the United States and the state, and the regulations relating to the 09 manufacture and sale of alcoholic beverages in the state, or fail to provide the 10 director with a report of contacts with licensed establishments, educational 11 activities concerning this title and local ordinances, and violations of this title 12 occurring in the municipality, at the time and in the format as may be required 13 by regulation adopted by the board, the commissioner of commerce, community, 14 and economic development may deny the allocation [REFUND] provided for under 15 (a) of this section until the board finds the enforcement of the ordinances, laws, and 16 regulations is resumed or the report is provided. 17 (c) The Department of Commerce, Community, and Economic Development 18 shall recover any funds [AMOUNTS] erroneously allocated [REFUNDED] under (a) 19 of this section. The Department of Commerce, Community, and Economic 20 Development shall schedule repayments of erroneously allocated funds 21 [REFUNDED AMOUNTS] over a sufficient period of time to minimize financial 22 hardship to the municipality involved. 23 * Sec. 82. AS 04.11.630(b) is amended to read: 24 (b) A license, endorsement, or permit issued under this title shall be posted 25 within the licensed premises or designated premises so as to be easily available for 26 inspection upon request by a peace officer or other person during regular business 27 hours or during the period specified on the permit. 28 * Sec. 83. AS 04.11.680 is amended to read: 29 Sec. 04.11.680. Duration of licenses, endorsements, and permits. (a) Upon 30 application [AND PAYMENT OF ONE-HALF OF THE BIENNIAL FEE], the board 31 may issue a seasonal license under this title that is effective for the intervals stated on

01 the license. [A SEASONAL LICENSE MAY NOT BE EFFECTIVE FOR MORE 02 THAN 12 MONTHS IN A TWO-YEAR PERIOD.] Otherwise, a license or 03 endorsement [ALL LICENSES] issued under this title and a conditional 04 contractor's permit issued under AS 04.09.690 is [OTHER THAN A RETAIL 05 STOCK SALE LICENSE ARE] effective for the two calendar years ending 06 December 31, unless a shorter period is prescribed by the board or by law. 07 (b) A permit issued under this title shall be for a specific time [THE] period 08 [PRESCRIBED BY THE BOARD]. The period shall be clearly designated on the 09 permit. 10 * Sec. 84. AS 04.16.010(c) is amended to read: 11 (c) Except as provided in (e) of this section, a [A] licensee, an agent, or 12 employee may not permit a person to enter and a person may not enter premises 13 licensed under this title between the hours of 5:00 a.m. and 8:00 a.m. each day, unless 14 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) 17 of this section; 18 (2) a common carrier with a common carrier dispensary license 19 under AS 04.09.260; 20 (3) [. THIS SUBSECTION DOES NOT APPLY TO COMMON 21 CARRIERS OR TO] an employee of the licensee who is on the premises to prepare 22 for the next day's business; 23 (4) performing maintenance or improvements authorized by the 24 licensee; 25 (5) [. A PERSON MAY ENTER OR REMAIN] on the premises [OF 26 A BONA FIDE RESTAURANT OR EATING PLACE LICENSED UNDER THIS 27 TITLE] to consume food or nonalcoholic beverages and the premises are 28 (A) licensed under a restaurant or eating place license 29 issued under AS 04.09.210 or a seasonal restaurant or eating place 30 tourism license issued under AS 04.09.360; or 31 (B) covered under a restaurant endorsement issued under

01 AS 04.09.450. 02 * Sec. 85. AS 04.16.010 is amended by adding new subsections to read: 03 (e) A brewery, winery, or distillery retail licensee or an agent or employee of a 04 brewery, winery, or distillery retail licensee may not permit a person to enter or 05 remain on and a person may not enter or remain on a premises licensed under this title 06 between the hours of 9:30 p.m. and 9:00 a.m. each day, unless the person is 07 (1) on the premises to conduct business with the licensee, agent, or 08 employee, and the licensee, agent, or employee is in compliance with (a) and (b) of 09 this section; 10 (2) an employee of the licensee who is on the premises to prepare for 11 the next day's business; or 12 (3) performing maintenance or improvements authorized by the 13 licensee. 14 (f) A person who violates (a), (b), (c), or (e) of this section is guilty of a 15 violation. 16 * Sec. 86. AS 04.16.015(a) is amended to read: 17 (a) On premises where alcoholic beverages are sold by the drink, a licensee or 18 a licensee's agent or employee may not 19 (1) offer or deliver, as a marketing device to the general public, free 20 alcoholic beverages to a patron, except as provided for the holder of a 21 manufacturer sampling endorsement under AS 04.09.410 or a package store 22 sampling endorsement under AS 04.09.490; 23 (2) deliver an alcoholic beverage to a person already possessing two or 24 more; 25 (3) sell, offer to sell, or deliver alcoholic beverages to a person or 26 group of persons at a price less than the price regularly charged for the beverages 27 during a consecutive seven-day period [THE SAME CALENDAR WEEK], except at 28 private functions not open to the general public; 29 (4) sell, offer to sell, or deliver an unlimited number of alcoholic 30 beverages to a person or group of persons during a set period of time for a fixed price; 31 (5) sell, offer to sell, or deliver alcoholic beverages to a person or

01 group of persons on any one day at prices less than those charged the general public 02 on that day, except at private functions not open to the general public; 03 (6) encourage or permit an organized game or contest on the licensed 04 premises that involves drinking alcoholic beverages or the awarding of alcoholic 05 beverages as prizes. 06 * Sec. 87. AS 04.16.015 is amended by adding a new subsection to read: 07 (e) A person who violates this section is guilty of a violation. 08 * Sec. 88. AS 04.16 is amended by adding a new section to read: 09 Sec. 04.16.017. Trade practices. (a) A person holding a license under 10 AS 04.09.020, 04.09.030, 04.09.040, 04.09.100, or 04.09.110 or engaged in the 11 alcoholic beverage industry in another state or country as a brewer, vintner, distiller, 12 or importer, or as an agent of a brewer, vintner, distiller, or importer, may not, except 13 as provided in regulations adopted by the board under (b) of this section, induce a 14 person holding a license under this title to 15 (1) operate as a tied house by inducing a retailer engaged in the sale of 16 alcoholic beverages to purchase products from an entity to the exclusion, in whole or 17 in part, of products sold or offered for sale by other entities by 18 (A) furnishing, giving, renting, lending, or selling to the retailer 19 equipment fixtures, signs, supplies, money, services, or other things of value, 20 except those excluded in regulation and determined to be not contrary to the 21 public interest or contrary to the intent of this subsection; 22 (B) paying or crediting the retailer for an advertising, display, 23 or distribution service; 24 (C) guaranteeing a loan or the repayment of a financial 25 obligation of the retailer; 26 (D) extending to the retailer credit for a period in excess of the 27 credit period usual and customary to the industry for the particular class of 28 transactions; or 29 (E) requiring the retailer to take and dispose of a certain quota 30 of the products; 31 (2) operate as an exclusive outlet by requiring that a retailer engaged in

01 the sale of alcoholic beverages purchase products from an entity to the exclusion, in 02 whole or in part, of alcoholic beverages sold or offered for sale by other entities; 03 (3) purchase products from an entity to the exclusion, in whole or in 04 part, of products sold or offered for sale by other entities by 05 (A) commercial bribery; or 06 (B) offering or giving any bonus, premium, or compensation to 07 an officer, employee, or representative of the licensee; 08 (4) enter into an agreement for consignment sales, or to purchase, offer 09 to purchase, or contract to purchase products on consignment, under conditional sale, 10 or with the privilege of return on any basis other than a bona fide sale, or where part of 11 the transaction involves, directly or indirectly, the acquisition by an entity from the 12 licensee or the entity's agreement to acquire from the licensee other alcoholic 13 beverages, except that this paragraph does not apply to transactions involving solely 14 the return of merchandise for ordinary and usual commercial reasons arising after the 15 merchandise has been sold. 16 (b) The board shall adopt regulations providing exceptions to the practices 17 listed under (a) of this section that are 18 (1) consistent with federal law at the time of the effective date of this 19 section; 20 (2) necessary to avoid practical difficulty or undue hardship on a 21 licensee; 22 (3) in the best interests of the public; and 23 (4) consistent with the requirements of this title. 24 (c) The board shall adopt regulations establishing administrative penalties for 25 a violation of this section. 26 (d) In this section, "commercial bribery," "consignment sales," "exclusive 27 outlet," and "tied house" have the meanings given in 27 U.S.C. 205 and regulations 28 adopted under that section. 29 * Sec. 89. AS 04.16.020 is amended by adding new subsections to read: 30 (d) A person who violates a provision of this section commits the offense of 31 unauthorized solicitation or purchase of alcoholic beverages.

01 (e) Unauthorized solicitation or purchase of alcoholic beverages is a violation 02 and is punishable by a fine of $100. 03 * Sec. 90. AS 04.16 is amended by adding a new section to read: 04 Sec. 04.16.022. Online sale and purchase of alcoholic beverages. (a) A 05 licensee or a licensee's agent or employee may not sell or offer to sell alcoholic 06 beverages to the public online unless the licensee holds a manufacturer direct 07 shipment license issued under AS 04.09.370 or a package store shipping endorsement 08 under AS 04.09.460. 09 (b) A person may not purchase alcoholic beverages online except from the 10 holder of a manufacturer direct shipment license issued under AS 04.09.370 or a 11 package store shipping endorsement under AS 04.09.460. 12 (c) A person who violates (a) of this section is, upon conviction, guilty of a 13 class A misdemeanor. 14 (d) A person who violates (b) of this section is guilty of a violation. 15 * Sec. 91. AS 04.16.025(a) is amended to read: 16 (a) A person may not knowingly enter or remain on premises 17 (1) in which alcoholic beverages are manufactured, sold, offered for 18 sale, possessed for sale or barter, trafficked in, or bartered in violation of 19 (A) AS 04.09.060, 04.09.850, or AS 04.11.010; or 20 (B) a municipal ordinance adopted under AS 04.21.010(a) or 21 (b); or 22 (2) licensed under this title during hours in which the person's presence 23 on the premises is a violation of a municipal ordinance adopted under authority of 24 AS 04.16.010(d) providing for hours of closure that are outside the hours of closure 25 prescribed by AS 04.16.010(c) or (e). 26 * Sec. 92. AS 04.16.030 is amended by adding new subsections to read: 27 (c) A person who violates this section commits the offense of prohibited 28 conduct relating to a drunken person. 29 (d) Prohibited conduct relating to a drunken person is a violation, punishable 30 by a fine of $500. 31 (e) The holder of a license is strictly and vicariously liable for an offense

01 committed under (c) of this section by an employee or agent of the licensee on the 02 licensed premises, punishable by an administrative penalty of $250. Notwithstanding 03 AS 04.11.370(a)(4) and (5) and AS 04.16.180(b)(1), the board may not order 04 suspension of the license for the first violation committed on the licensed premises 05 under this section. 06 (f) A licensee who knowingly allows an agent or employee of the licensee to 07 commit the offense of prohibited conduct relating to a drunken person under (c) of this 08 section commits the offense of failure to ensure compliance relating to a drunken 09 person. 10 (g) Failure to ensure compliance relating to a drunken person is a class A 11 misdemeanor. 12 * Sec. 93. AS 04.16.035 is amended to read: 13 Sec. 04.16.035. Possession of ingredients for homebrew in certain areas. A 14 person residing in an area that has adopted a local option under AS 04.11.491 [TO 15 PROHIBIT THE SALE, IMPORTATION, AND POSSESSION OF ALCOHOLIC 16 BEVERAGES UNDER AS 04.11.491(a)(5) OR (b)(4)] may not possess sugar, 17 artificial sugar, malt, yeast, or any other material or equipment with the intent to use 18 the material or equipment to create an alcoholic beverage. 19 * Sec. 94. AS 04.16.035 is amended by adding new subsections to read: 20 (b) A person who knowingly violates this section commits the crime of 21 possession of ingredients for homebrew. 22 (c) Possession of ingredients for homebrew is a class A misdemeanor. 23 * Sec. 95. AS 04.16.040 is amended by adding new subsections to read: 24 (b) A person who violates this section commits the offense of prohibited 25 access by a drunken person. 26 (c) Prohibited access by a drunken person is a violation. 27 * Sec. 96. AS 04.16.045 is amended by adding new subsections to read: 28 (b) A person who violates this section commits the offense of permitting 29 consumption not authorized under a license. 30 (c) Permitting consumption not authorized under a license is a violation. 31 * Sec. 97. AS 04.16.047 is amended by adding new subsections to read:

01 (d) A person who is restricted from purchasing alcohol under AS 04.16.160 02 who knowingly violates (a) of this section commits the offense of entering or 03 remaining on licensed premises. 04 (e) Entering or remaining on licensed premises is a class A misdemeanor. 05 * Sec. 98. AS 04.16.049(a) is amended to read: 06 (a) A person under 21 years of age may not knowingly enter or remain in 07 premises licensed under this title unless 08 (1) accompanied by a parent, guardian, or spouse who has attained 21 09 years of age; 10 (2) the person is allowed to enter and remain on [AT LEAST 16 11 YEARS OF AGE,] the premises under a restaurant or eating place license issued 12 under AS 04.09.210, seasonal restaurant or eating place tourism license issued 13 under AS 04.09.360, or restaurant endorsement issued under AS 04.09.450 [ARE 14 DESIGNATED BY THE BOARD AS A RESTAURANT FOR THE PURPOSES OF 15 THIS SECTION, AND THE PERSON ENTERS AND REMAINS ONLY FOR 16 DINING; 17 (3) THE PERSON IS UNDER 16 YEARS OF AGE, IS 18 ACCOMPANIED BY A PERSON OVER 21 YEARS OF AGE, THE PARENT OR 19 GUARDIAN OF THE UNDERAGED PERSON CONSENTS, THE PREMISES ARE 20 DESIGNATED BY THE BOARD AS A RESTAURANT FOR THE PURPOSES OF 21 THIS SECTION, AND THE PERSON ENTERS AND REMAINS ONLY FOR 22 DINING]; 23 (3) [(4)] the person is permitted on the premises under a club license 24 issued under AS 04.09.220(g) or former AS 04.11.110(g); or 25 (4) [(5)] otherwise provided under (c), (d), or (g) of this section. 26 * Sec. 99. AS 04.16.049(c) is amended to read: 27 (c) Notwithstanding any other provision in this section, a person 16 or 17 28 years of age may enter and remain within the licensed premises of a hotel or motel, 29 large resort, golf course, general wholesaler, limited brewed beverage and wine 30 wholesaler, common carrier dispensary, outdoor recreation lodge, or restaurant 31 [OR EATING PLACE] in the course of employment if

01 (1) the employment does not involve the serving, mixing, delivering, 02 or dispensing of alcoholic beverages; 03 (2) the person has the written consent of a parent or guardian; and 04 (3) an exemption from the prohibition of AS 23.10.355 is granted by 05 the Department of Labor and Workforce Development. [THE BOARD, WITH THE 06 APPROVAL OF THE GOVERNING BODY HAVING JURISDICTION AND AT 07 THE LICENSEE'S REQUEST, SHALL DESIGNATE WHICH PREMISES ARE 08 HOTELS, GOLF COURSES, RESTAURANTS, OR EATING PLACES FOR THE 09 PURPOSES OF THIS SUBSECTION.] 10 * Sec. 100. AS 04.16.049(d) is amended to read: 11 (d) Notwithstanding any other provision in this section, a person 18, 19, or 20 12 years of age may be employed within the licensed premises of a hotel or motel, large 13 resort, golf course, general wholesaler, limited brewed beverage and wine 14 wholesaler, common carrier dispensary, outdoor recreation lodge, or restaurant 15 [OR EATING PLACE], may enter and remain within those premises for the purpose 16 of employment, but may not, in the course of employment, sell, serve, deliver, or 17 dispense alcoholic beverages. 18 * Sec. 101. AS 04.16.049 is amended by adding a new subsection to read: 19 (j) Notwithstanding any other provision in this section, a person under 21 20 years of age may be present on the licensed premises of a common carrier dispensary, 21 destination resort, or outdoor recreation lodge for the purpose of travel, travel lodging, 22 or outdoor recreation activities provided by the licensee if the person is 23 (1) at least 16 years of age; or 24 (2) under 16 years of age and a parent or legal guardian of the 25 underaged person consents. 26 * Sec. 102. AS 04.16.051(d) is repealed and reenacted to read: 27 (d) A person who, with criminal negligence, furnishes or delivers an alcoholic 28 beverage to a person under 21 years of age in violation of (a) of this section commits 29 the crime of furnishing or delivering to a minor. 30 * Sec. 103. AS 04.16.051 is amended by adding a new subsection to read: 31 (e) Furnishing or delivering to a minor is

01 (1) a class A misdemeanor, except as provided in (2) of this 02 subsection; 03 (2) a class C felony if 04 (A) within the five years preceding the violation, the person has 05 been previously convicted under 06 (i) this section; or 07 (ii) a law or ordinance of this or another jurisdiction 08 with elements substantially similar to this section; 09 (B) the person who receives the alcoholic beverage negligently 10 causes serious physical injury to or the death of another person while under the 11 influence of the alcoholic beverage received in violation of this section; in this 12 subparagraph, 13 (i) "negligently" means acting with civil negligence; 14 and 15 (ii) "serious physical injury" has the meaning given in 16 AS 11.81.900; or 17 (C) the violation occurs within the boundaries of a municipality 18 or the perimeter of an established village that has adopted a local option under 19 AS 04.11.491 and has not opted out of applying a class C felony to violations 20 of this section under AS 04.11.491(g). 21 * Sec. 104. AS 04.16.052 is amended by adding new subsections to read: 22 (b) The holder of a license is strictly liable for an offense committed under (a) 23 of this section by an employee or agent of the licensee on the licensed premises, 24 punishable by an administrative penalty of $250. Notwithstanding AS 04.11.370(a)(4) 25 and (5) and AS 04.16.180(b)(1), the board may not order suspension of the license for 26 the first violation committed on the licensed premises under this section. 27 (c) A person who violates (a) of this section commits the offense of licensee, 28 employee, or agent furnishing alcohol to a minor. 29 (d) Licensee, employee, or agent furnishing alcohol to a minor is a violation 30 and is punishable by a fine of $500. 31 (e) A licensee who knowingly allows an agent or employee of the licensee to

01 commit the offense of licensee, employee, or agent furnishing alcohol to a minor 02 under (c) of this section commits the offense of failure to ensure compliance relating 03 to furnishing alcohol to a minor. 04 (f) Failure to ensure compliance relating to furnishing alcohol to a minor is a 05 class A misdemeanor. 06 * Sec. 105. AS 04.16.055 is amended by adding new subsections to read: 07 (b) A person who knowingly rents a room in a hotel, motel, resort, or similar 08 business for the purpose of providing alcoholic beverages to a person under 21 years 09 of age commits the crime of renting a room for the purpose of providing alcoholic 10 beverages to a person under 21 years of age. 11 (c) Renting a room for the purpose of providing alcoholic beverages to a 12 person under 21 years of age is a class A misdemeanor. 13 * Sec. 106. AS 04.16.057(b) is amended to read: 14 (b) A person who violates this section is guilty of a violation and is 15 punishable by a fine of $500 [SHALL BE PUNISHED AS PROVIDED IN 16 AS 12.55]. 17 * Sec. 107. AS 04.16.060(e) is amended to read: 18 (e) A person under the age of 21 who is seeking to enter and remain in a 19 licensed premises under AS 04.16.049(a)(2) [OR (3)] may not misrepresent the 20 person's age or having obtained the consent of the parent or guardian required by that 21 section. 22 * Sec. 108. AS 04.16.060 is amended by adding new subsections to read: 23 (g) A person who violates (a) of this section commits the offense of purchase 24 by a person under 21 years of age. 25 (h) A person who violates (b) or (c) of this section commits the offense of 26 delivery to a person under 21 years of age. 27 (i) Purchase by a person under 21 years of age is a violation and is punishable 28 by a fine of $500. 29 (j) Delivery to a person under 21 years of age is a violation and is punishable 30 by a fine of $500. 31 (k) For a person under 21 years of age who commits an offense under (g) of

01 this section, the violation must be charged and filed with the court as a separate case 02 and may not be combined or joined with any other minor offense or criminal charge in 03 one action at the time of filing. A court may reduce the fine to $50 for a person who 04 has not more than one previous violation or to $250 for a person who has two or more 05 previous violations if the person provides the court, not later than six months after a 06 judgment of conviction is entered, with proof of completion of 07 (1) an alcohol safety action program or a juvenile alcohol safety action 08 program developed, designated, or approved by the Department of Health and Social 09 Services under AS 47.37; or 10 (2) a community diversion panel. 11 * Sec. 109. AS 04.16.080 is amended to read: 12 Sec. 04.16.080. Consumption [SALES OR CONSUMPTION] at school 13 events. A person who is 21 years of age or older may not [SELL OR] consume 14 alcoholic beverages during a school event at the site of the event if the event is 15 expected to attract attendees under 21 years of age. 16 * Sec. 110. AS 04.16.080 is amended by adding new subsections to read: 17 (b) A person who is 21 years of age or older who consumes an alcoholic 18 beverage during a school event at the site of the event under (a) of this section 19 commits the offense of consuming at a school event. 20 (c) Consuming at a school event is a violation and is punishable by a fine of 21 $100. 22 * Sec. 111. AS 04.16.090(c) is amended to read: 23 (c) In [FOR THE PURPOSES OF] this section, "consideration" includes 24 [BUT IS NOT LIMITED TO] cover charge, the sale of food, ice, mixers, or other 25 liquids used with alcoholic beverage drinks, [OR] the furnishing of glassware or other 26 containers for use in the consumption of alcoholic beverages, other charges for 27 access to the licensed premises, or other services or products provided on the 28 licensed premises. 29 * Sec. 112. AS 04.16.090 is amended by adding new subsections to read: 30 (d) A person who knowingly violates this section commits the crime of 31 maintaining a bottle club.

01 (e) Maintaining a bottle club is a class A misdemeanor. 02 * Sec. 113. AS 04.16.110 is amended by adding new subsections to read: 03 (b) A person who knowingly sells an alcoholic beverage in violation of (a) of 04 this section commits the crime of sale of a prohibited alcoholic beverage. 05 (c) Sale of a prohibited alcoholic beverage is a class A misdemeanor. 06 * Sec. 114. AS 04.16.120 is amended by adding new subsections to read: 07 (d) A person who removes an alcoholic beverage from licensed premises in 08 violation of (a) of this section and a person who brings an alcoholic beverage onto 09 licensed premises in violation of (b) of this section commits the offense of removal or 10 introduction of alcoholic beverages. 11 (e) Notwithstanding (a) of this section, the holder of a beverage dispensary 12 license under AS 04.09.200, the holder of a beverage dispensary tourism license under 13 AS 04.09.350, or the holder's employee may transport alcoholic beverages across 14 unlicensed portions of a hotel, motel, or large resort if the 15 (1) licensee holds an endorsement under AS 04.09.430 or 04.09.440; 16 and 17 (2) licensee or employee is walking directly from one licensed area of 18 the premises to another licensed area. 19 (f) Notwithstanding (a) of this section, a person may remove alcoholic 20 beverages from the licensed premises of a beverage dispensary license under 21 AS 04.09.200 or a beverage dispensary tourism license under AS 04.09.350 for 22 consumption on unlicensed portions of a large resort if the licensee holds a large resort 23 endorsement under AS 04.09.440. 24 (g) Removal or introduction of alcoholic beverages is a violation and is 25 punishable by a fine of $100. 26 * Sec. 115. AS 04.16.125(a) is amended to read: 27 (a) A person may not use a common carrier to transport alcoholic beverages 28 into an area that has restricted the sale of alcoholic beverages under 29 AS 04.11.491(a)(1), (2), or (3) or (b)(1) or (2) unless 30 (1) the shipping container holding the alcoholic beverages is clearly 31 labeled as containing alcoholic beverages [WITH LETTERS THAT CONTRAST IN

01 COLOR TO THE SHIPPING CONTAINER AND THAT ARE AT LEAST TWO 02 INCHES IN HEIGHT]; and 03 (2) an itemized invoice showing the quantity and purchase value of 04 distilled spirits, [OF] wine, and brewed [OF MALT] beverages is attached to the 05 outside of the shipping container. 06 * Sec. 116. AS 04.16.125(b) is amended to read: 07 (b) The requirements in (a) of this section do [THIS SECTION DOES] not 08 apply to 09 (1) a person transporting [NOT MORE THAN] 10 (A) two liters or less of wine; 11 (B) one gallon or less of brewed [MALT] beverages; or 12 (C) one liter or less of distilled spirits; or 13 (2) the transportation of alcoholic beverages for use on premises 14 allowed under AS 04.11.491(a)(2) or (3) [AS 04.11.491(a)(2) - (3)] or (b)(2) or for 15 use under a permit allowed under AS 04.11.491(a)(2). 16 * Sec. 117. AS 04.16.125 is amended by adding new subsections to read: 17 (d) A person who knowingly violates this section commits the crime of 18 unauthorized transportation of alcoholic beverages by common carrier into a local 19 option area. 20 (e) Unauthorized transportation of alcoholic beverages by common carrier into 21 a local option area is a class A misdemeanor. 22 * Sec. 118. AS 04.16.130 is amended by adding new subsections to read: 23 (c) A person who violates this section commits the offense of unauthorized 24 storage of alcoholic beverages. 25 (d) Unauthorized storage of alcoholic beverages is a violation. 26 * Sec. 119. AS 04.16.140 is amended by adding new subsections to read: 27 (b) A person who knowingly violates (a) of this section commits the offense 28 of sale or consumption of an alcoholic beverage in a warehouse. 29 (c) Sale or consumption of an alcoholic beverage in a warehouse is a violation. 30 * Sec. 120. AS 04.16.150 is amended by adding new subsections to read: 31 (b) Except as provided under AS 04.16.030(f) and 04.16.052(e), a licensee

01 who knowingly violates (a) of this section commits the offense of failure to ensure 02 compliance. 03 (c) Failure to ensure compliance is a violation. 04 * Sec. 121. AS 04.16.160 is amended by adding new subsections to read: 05 (c) A person who knowingly fails to comply with a restriction on purchasing 06 alcoholic beverages in violation of (a) of this section commits the crime of failure to 07 comply with a restriction on purchasing alcoholic beverages. 08 (d) Failure to comply with a restriction on purchasing alcoholic beverages is a 09 class A misdemeanor. 10 * Sec. 122. AS 04.16.170(b) is amended to read: 11 (b) A person transporting alcoholic beverages into the state may not sell those 12 alcoholic beverages to a person not licensed under this title, unless the alcoholic 13 beverages are used for religious, industrial, pharmaceutical, or medical purposes, or as 14 allowed under AS 04.09.370. 15 * Sec. 123. AS 04.16.170 is amended by adding new subsections to read: 16 (c) A licensee who knowingly violates (a) or (b) of this section commits the 17 crime of sale of alcoholic beverages from or to an unlicensed person. 18 (d) Sale of alcoholic beverages from or to an unlicensed person is a class A 19 misdemeanor. 20 * Sec. 124. AS 04.16.172 is amended to read: 21 Sec. 04.16.172. Restrictions on purchase and sale of alcoholic beverages. A 22 person licensed under AS 04.09.200, 04.09.210, 04.09.220, 04.09.230, 04.09.270, 23 04.09.280, 04.09.290, 04.09.300, 04.09.310, 04.09.320, 04.09.330, 04.09.340, 24 04.09.350, or 04.09.360 [AS 04.11.090, 04.11.100, 04.11.110, OR 04.11.150] may not 25 purchase, sell, or offer for sale an alcoholic beverage unless the alcoholic beverage 26 being purchased, sold, or offered for sale was obtained from a person licensed under 27 (1) AS 04.09.100 or 04.09.110 [AS 04.11.160] as a primary source of 28 supply for the alcoholic beverage being purchased, sold, or offered for sale; 29 (2) AS 04.09.230 [AS 04.11.150] and the alcoholic beverage being 30 purchased, sold, or offered for sale was obtained from a person licensed under 31 AS 04.09.100 or 04.09.110 [AS 04.11.160] as a primary source of supply; or

01 (3) AS 04.09.020, 04.09.030, or 04.09.040 [AS 04.11.130, 04.11.140, 02 OR 04.11.170]. 03 * Sec. 125. AS 04.16.172 is amended by adding new subsections to read: 04 (b) A licensee who knowingly violates (a) of this section commits the crime of 05 licensee obtaining alcoholic beverages from an unlicensed seller. 06 (c) Licensee obtaining alcoholic beverages from an unlicensed seller is a class 07 A misdemeanor. 08 * Sec. 126. AS 04.16.175 is amended by adding new subsections to read: 09 (c) A person who knowingly furnishes an alcoholic beverage to a player in 10 violation of (a) of this section commits the crime of furnishing an alcoholic beverage 11 in aid of a gambling enterprise. 12 (d) Furnishing an alcoholic beverage in aid of a gambling enterprise is a class 13 A misdemeanor. 14 * Sec. 127. AS 04.16.180(b) is amended to read: 15 (b) A suspension or revocation of a license ordered by the board under 16 AS 04.11.370(a)(4) and (5) shall be as follows: 17 (1) on first conviction, the license of the premises involved may not be 18 revoked, but, except as provided in AS 04.16.030 and 04.16.052, may be suspended 19 for not more than 45 days; 20 (2) on second conviction, the license of the premises involved may not 21 be revoked, but may be suspended for not more than 90 days; 22 (3) on third conviction, the license of the premises involved may be 23 suspended or revoked. 24 * Sec. 128. AS 04.16.180(e) is amended to read: 25 (e) In this section, 26 (1) "conviction" includes a conviction of a violation, a 27 misdemeanor, and a felony; 28 (2) [THE TERMS] "second conviction" and "third conviction" include 29 only convictions for violations that occur within five years after [OF] the first 30 conviction; the [. THE] terms refer to the cumulative number of convictions of a 31 licensee of any combination of violations of the provisions of this title, regulations

01 adopted under this title, or ordinances adopted under AS 04.21.010; [. THE TERMS] 02 "second conviction" and "third conviction" include a conviction of the agent or 03 employee of a licensee of a violation of a law, regulation, or ordinance if the 04 conviction constitutes a ground for suspension or revocation under 05 AS 04.11.370(a)(5). 06 * Sec. 129. AS 04.16.180 is amended by adding new subsections to read: 07 (f) In addition to the criminal penalties specified in this title and AS 12.55, a 08 holder of a license under this title who is convicted of a crime or offense involving the 09 violation of a provision of this title or a regulation adopted under this title is subject to 10 suspension or revocation of the license under this section and other administrative 11 penalties imposed by the board. For purposes of administrative penalties under this 12 subsection, each violation is a separate offense. 13 (g) The holder of a license subject to suspension or revocation under (b)(2) or 14 (3) of this section may request a hearing to petition the board to reduce the 15 administrative penalty. The board may reduce the administrative penalty if the 16 licensee shows, by a preponderance of the evidence, that 17 (1) the licensee complied with the alcohol server education course 18 requirement of AS 04.21.025 and adopted and enforced a compliance program and a 19 disciplinary program for agents and employees of the licensee; 20 (2) the licensee has a pattern and practice of exercising the degree of 21 care required under AS 04.16.030; 22 (3) the licensee posted warning signs as required under AS 04.21.065; 23 and 24 (4) in the case of a conviction for a violation of AS 04.16.030 or 25 04.16.052, the agent or employee convicted under AS 04.16.030 or 04.16.052 26 completed an alcohol server education course under AS 04.21.025. 27 * Sec. 130. AS 04.16.220(a) is amended to read: 28 (a) The following are subject to forfeiture: 29 (1) alcoholic beverages manufactured, sold, offered for sale, possessed 30 for sale, or bartered or exchanged for goods and services in this state in violation of 31 AS 04.09.060, 04.09.850, or AS 04.11.010; alcoholic beverages possessed, stocked,

01 warehoused, or otherwise stored in violation of AS 04.21.060; alcoholic beverages 02 sold or offered for sale in violation of a local option adopted under AS 04.11.491; 03 alcoholic beverages transported into the state and sold to persons not licensed under 04 this title [CHAPTER] in violation of AS 04.16.170(b); alcoholic beverages 05 transported in violation of AS 04.09.750 or AS 04.16.125; 06 (2) materials and equipment used in the manufacture, sale, offering for 07 sale, possession for sale, or barter or exchange of alcoholic beverages for goods and 08 services in this state in violation of AS 04.09.060, 04.09.850, or AS 04.11.010; 09 materials and equipment used in the stocking, warehousing, or storage of alcoholic 10 beverages in violation of AS 04.21.060; materials and equipment used in the sale or 11 offering for sale of an alcoholic beverage in an area in violation of a local option 12 adopted under AS 04.11.491; 13 (3) aircraft, vehicles, or vessels used to transport or facilitate the 14 transportation of 15 (A) alcoholic beverages manufactured, sold, offered for sale, 16 possessed for sale, or bartered or exchanged for goods and services in this state 17 in violation of AS 04.09.060, 04.09.850, or AS 04.11.010; 18 (B) property stocked, warehoused, or otherwise stored in 19 violation of AS 04.21.060; 20 (C) alcoholic beverages imported into a municipality or 21 established village in violation of AS 04.11.499(a); 22 (4) alcoholic beverages found on licensed premises that do not bear 23 federal excise stamps if excise stamps are required under federal law; 24 (5) alcoholic beverages, materials, or equipment used in violation of 25 AS 04.16.175; 26 (6) money, securities, negotiable instruments, or other things of value 27 used in financial transactions or items of value purchased from the proceeds derived 28 from activity prohibited under AS 04.09.060, 04.09.850, or AS 04.11.010 or in 29 violation of a local option adopted under AS 04.11.491; 30 (7) a firearm used in furtherance of a violation of this title. 31 * Sec. 131. AS 04.16.220(d) is amended to read:

01 (d) Property subject to forfeiture under (a) of this section may be forfeited 02 (1) upon conviction of a person for a violation of AS 04.09.060, 03 04.09.750, 04.09.850, AS 04.11.010, 04.11.499, AS 04.16.125, AS 04.21.060, or 04 AS 04.11.501 or an ordinance adopted under AS 04.11.501; or 05 (2) upon judgment by the superior court in a proceeding in rem that the 06 property was used in a manner subjecting it to forfeiture under (a) of this section. 07 * Sec. 132. AS 04.16.220(g) is amended to read: 08 (g) It is no defense in an in rem forfeiture proceeding brought under (d)(2) of 09 this section that a criminal proceeding is pending or has resulted in conviction or 10 acquittal of a person charged with violating AS 04.09.060, 04.09.850, AS 04.11.010, 11 04.11.499, or AS 04.21.060. 12 * Sec. 133. AS 04.16.220(i) is amended to read: 13 (i) Upon conviction for a violation of AS 04.09.060, 04.09.850, AS 04.11.010, 14 or 04.11.499(a), if an aircraft, vehicle, or watercraft is subject to forfeiture under (a) of 15 this section, the court shall, subject to remission to innocent parties under this section, 16 (1) order the forfeiture of an aircraft to the state; 17 (2) order the forfeiture of a vehicle or watercraft if 18 (A) the defendant has a prior felony conviction for a violation 19 of AS 11.41 or a similar law in another jurisdiction; 20 (B) the defendant is on felony probation or parole; 21 (C) the defendant has a prior conviction for violating 22 AS 04.11.010 or 04.11.499(a); or 23 (D) the quantity of alcohol transported in violation of this title 24 was twice the presumptive amounts in AS 04.11.010(c). 25 * Sec. 134. AS 04.21 is amended by adding a new section to read: 26 Sec. 04.21.012. Keg registration. (a) A person may not purchase a keg or 27 similar container holding four or more gallons of an alcoholic beverage unless the 28 person provides proof that the person is over 21 years of age and completes and signs 29 a registration form. The purchaser of a keg or similar container holding four or more 30 gallons of an alcoholic beverage may not remove or obliterate the temporary 31 identifying tag on the keg or container.

01 (b) A licensee or an agent or employee of a licensee who sells or offers for 02 sale a keg or similar container holding four or more gallons of an alcoholic beverage 03 shall require a purchaser to show acceptable proof of age under AS 04.21.050(b) and 04 sign the sworn statement on a registration form. The licensee shall complete the 05 registration form and affix a temporary tag with a unique identifier to the keg or 06 container before releasing the container to the purchaser. The licensee shall retain a 07 copy of the form for one year and make the form available for inspection. 08 (c) The board shall prescribe a registration form for use by licensees and 09 purchasers. The board may approve for use a registration form adopted by a local 10 governing body. A registration form must include 11 (1) the name of the seller; 12 (2) the name of the purchaser; 13 (3) a description of the proof of age provided by the buyer, including 14 the identification number, if any; 15 (4) the unique identifier on the temporary tag attached to the keg or 16 container under (b) of this section. 17 (d) A licensee or an agent or employee of a licensee who sells a keg or similar 18 container holding four or more gallons of an alcoholic beverage without completing a 19 registration form or affixing a temporary identification tag to the keg or container 20 commits the crime of selling alcoholic beverages in an unregistered keg. 21 (e) A person who is not licensed under this title or the employee or agent of a 22 person who is not licensed under this title who possesses a keg or similar container 23 holding four or more gallons of an alcoholic beverage without a temporary 24 identification tag commits the crime of possessing alcoholic beverages in an 25 unregistered keg. 26 (f) Selling alcoholic beverages in an unregistered keg is a violation. 27 (g) Possessing alcoholic beverages in an unregistered keg is a violation and is 28 punishable by a fine of $100. 29 * Sec. 135. AS 04.21.020(a) is amended to read: 30 (a) Except as provided under (b) and (d) of this section, a person who provides 31 alcoholic beverages to another person may not be held civilly liable for injuries

01 resulting from the intoxication of that person unless the person who provides the 02 alcoholic beverages holds a license authorized under AS 04.09.020 - 04.09.370 03 [AS 04.11.080 - 04.11.220] or is an agent or employee of [SUCH] a licensee and 04 (1) the alcoholic beverages are provided to a person under [THE AGE 05 OF] 21 years of age in violation of AS 04.16.051, unless the licensee, agent, or 06 employee secures in good faith from the person a signed statement, liquor 07 identification card, or driver's license meeting the requirements of AS 04.21.050(a) 08 and (b), that indicates that the person is 21 years of age or older; or 09 (2) the alcoholic beverages are provided to a drunken person in 10 violation of AS 04.16.030. 11 * Sec. 136. AS 04.21.020(b) is amended to read: 12 (b) A person who sells or barters an alcoholic beverage to another person in 13 violation of AS 04.09.060, 04.09.850, or AS 04.11.010 is strictly liable (1) to the 14 recipient or another person for civil damages if, while under the influence of the 15 alcoholic beverage, the person receiving the alcoholic beverage engages in conduct 16 that results in civil damages and the recipient's being under the influence of the 17 alcoholic beverage substantially contributes to the civil damages; and (2) for the cost 18 to the state or a political subdivision of the state to criminally prosecute a person who 19 receives an alcoholic beverage from a person who violates AS 04.11.010 if the 20 prosecution results from the violation of AS 04.11.010 described in this subsection. 21 * Sec. 137. AS 04.21.025(a) is repealed and reenacted to read: 22 (a) Except as provided under (e) and (f) of this section, as a condition of 23 issuance or renewal of a license or conditional contractor's permit and selling alcoholic 24 beverages under a license or conditional contractor's permit, the board shall require a 25 licensee or permittee who sells or serves alcoholic beverages and a licensee's or 26 permittee's agents and employees who sell or serve alcoholic beverages or check the 27 identification of a patron to complete an alcohol server education course approved by 28 the board. 29 * Sec. 138. AS 04.21.025(b) is amended to read: 30 (b) The subjects that are included in an approved alcohol server education 31 course shall be determined under regulations adopted by the board. In approving

01 alcohol server education courses, the board shall consider the needs of both urban and 02 rural licensees regarding access to an approved alcohol server education course and 03 allow a licensee, permittee, agent, or employee to complete an alcohol server 04 education course online or in person. A licensee, permittee, agent, or employee 05 who sells or serves alcoholic beverages shall keep the card described in (c) of this 06 section or other proof acceptable to the board of successful completion of an approved 07 alcohol server education course on the licensed premises during working hours. 08 * Sec. 139. AS 04.21.025(c) is amended to read: 09 (c) A licensee, permittee, agent, or employee shall complete the course 10 required under (a) of this section and pass a written test, online or in person, 11 demonstrating an understanding of the course subjects not more than 30 days after 12 being licensed, permitted, or employed. The course provider shall issue a card to each 13 individual who completes the course and passes the written test. A card issued under 14 this subsection is valid for three years from the date of issue. A licensee, permittee, 15 agent, or employee may renew a card issued under this section; to renew the card, the 16 licensee, permittee, agent, or employee must pass a written test demonstrating an 17 understanding of the course subjects. Notwithstanding the 30-day period for 18 completing the course and passing the written test under this subsection, a person 19 may not sell or serve alcoholic beverages or check the identification of a patron at 20 a permitted event under AS 04.09.600 - 04.09.690 unless the person possesses a 21 valid card issued before the event. 22 * Sec. 140. AS 04.21.025 is amended by adding new subsections to read: 23 (f) This section does not apply to the following licenses: 24 (1) brewery manufacturer license under AS 04.09.020, unless the 25 licensee holds a manufacturer sampling endorsement; 26 (2) winery manufacturer license under AS 04.09.030, unless the 27 licensee holds a manufacturer sampling endorsement; 28 (3) distillery manufacturer license under AS 04.09.040, unless the 29 licensee holds a manufacturer sampling endorsement; 30 (4) general wholesale license under AS 04.09.100; 31 (5) limited wholesale brewed beverage and wine license under

01 AS 04.09.110; 02 (6) manufacturer direct shipment license under AS 04.09.370. 03 (g) A person who violates (a) - (c) or (e) of this section commits the offense of 04 failure to comply with alcohol server education requirements. 05 (h) Failure to comply with alcohol server education requirements is a 06 violation. 07 * Sec. 141. AS 04.21.050(a) is amended to read: 08 (a) If a licensee or an agent or employee of the licensee questions or has 09 reason to question whether a person entering licensed premises, or ordering, 10 purchasing, attempting to purchase, or otherwise procuring or attempting to procure 11 alcoholic beverages, 12 (1) has attained the age of 21 years or is entering without consent in 13 violation of AS 04.16.049(a)(2) [AS 04.16.049(a)(3)] and has not attained the age of 14 16 years, that licensee, agent, or employee shall require the person to furnish proof of 15 age acceptable under (b) of this section or proof of consent in a form determined by 16 the board; if the person questioned does not furnish proof of age acceptable under (b) 17 of this section, or if a licensee, agent, or employee questions or has reason to question 18 the validity of the proof of age furnished, the licensee, employee, or agent shall require 19 the person to sign a statement that the person is over the age of 21 or 16 years, as 20 appropriate; this statement shall be made on a form prepared by and furnished to the 21 licensee by the board; 22 (2) is restricted from purchasing alcoholic beverages under 23 AS 04.16.160, the licensee, agent, or employee may, but has no duty or obligation to, 24 require the person to furnish proof acceptable under (b) of this section that the person 25 is not restricted from purchasing alcoholic beverages or require the person to sign a 26 statement that the person is not restricted from purchasing alcoholic beverages under 27 AS 04.16.160; this statement shall be made on a form prepared by and furnished to the 28 licensee by the board. 29 * Sec. 142. AS 04.21.060 is amended by adding new subsections to read: 30 (b) A licensee who stores alcoholic beverages elsewhere than on the licensed 31 premises and who fails to comply with (a)(1) - (3) of this section commits the offense

01 of unauthorized warehousing. 02 (c) Unauthorized warehousing is a violation. 03 * Sec. 143. AS 04.21.065(a) is repealed and reenacted to read: 04 (a) A holder of one of the following types of licenses or permits shall post on 05 the licensed or designated premises three separate warning signs as described in (b) of 06 this section: 07 (1) brewery manufacturer license under AS 04.09.020 with a 08 manufacturer sampling endorsement under AS 04.09.410; 09 (2) winery manufacturer license under AS 04.09.030 with a 10 manufacturer sampling endorsement under AS 04.09.410; 11 (3) distillery manufacturer license under AS 04.09.040 with a 12 manufacturer sampling endorsement under AS 04.09.410; 13 (4) beverage dispensary license under AS 04.09.200; 14 (5) restaurant or eating place license under AS 04.09.210; 15 (6) club license under AS 04.09.220; 16 (7) package store license under AS 04.09.230; 17 (8) pub license under AS 04.09.240; 18 (9) theater license under AS 04.09.250; 19 (10) common carrier dispensary license under AS 04.09.260; 20 (11) sporting activity or event license under AS 04.09.270; 21 (12) outdoor recreation lodge license under AS 04.09.280; 22 (13) fair license under AS 04.09.290; 23 (14) golf course license under AS 04.09.300; 24 (15) destination resort license under AS 04.09.310; 25 (16) brewery retail license under AS 04.09.320; 26 (17) winery retail license under AS 04.09.330; 27 (18) distillery retail license under AS 04.09.340; 28 (19) beverage dispensary tourism license under AS 04.09.350; 29 (20) seasonal restaurant or eating place tourism license under 30 AS 04.09.360; 31 (21) beverage dispensary caterer's permit under AS 04.09.610;

01 (22) restaurant caterer's dining permit under AS 04.09.620; 02 (23) club caterer's permit under AS 04.09.630; 03 (24) art exhibit event permit under AS 04.09.640; 04 (25) music festival permit under AS 04.09.645; 05 (26) nonprofit organization event permit under AS 04.09.650; 06 (27) package store tasting event permit under AS 04.09.670; 07 (28) conditional contractor's permit under AS 04.09.690; 08 (29) another license or permit issued by the board authorizing 09 consumption of alcoholic beverages. 10 * Sec. 144. AS 04.21 is amended by adding new sections to read: 11 Sec. 04.21.072. Fines and other criminal penalties. (a) A violation under this 12 title, unless otherwise specified in the provision of this title defining the offense, is 13 punishable by a fine of $250. 14 (b) A misdemeanor or felony under this title, unless otherwise specified in the 15 provision of this title defining the offense, is punishable as provided in AS 12.55. 16 Sec. 04.21.074. Bail forfeiture schedule. The supreme court shall establish by 17 rule or order a schedule of bail amounts for violations under this title that allow the 18 disposition of a citation without a court appearance. The bail amount may not exceed 19 the maximum penalty prescribed by law for the violation. 20 Sec. 04.21.076. Suspension of fine or sentence. The court may not suspend a 21 fine for an offense other than a misdemeanor or felony under this title, or suspend 22 imposition or execution of sentence for an offense other than a misdemeanor or felony 23 under this title, unless otherwise expressly provided in this title. 24 * Sec. 145. AS 04.21.078 is amended to read: 25 Sec. 04.21.078. Court records of persons under 21 years of age. The Alaska 26 Court System may not publish on a publicly available website the court records of a 27 violation of AS 04.16.049, [OR] 04.16.050, 04.16.060(g), or a similar ordinance of a 28 municipality, if the violation was charged separately and was not joined with any other 29 minor offense or criminal charge at the time of filing. 30 * Sec. 146. AS 04.21.080(b)(6) is amended to read: 31 (6) "designated premises" means any or all designated portions of a

01 building or structure, rooms or enclosures in the building or structure, or real estate 02 leased, used, controlled, or operated by a licensee or permittee for the purpose for 03 which the license or permit is issued by the board at the location of the site for which 04 the license or permit is issued; 05 * Sec. 147. AS 04.21.080(b)(15) is amended to read: 06 (15) "licensed 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 in the conduct of business for which 09 the licensee is licensed by the board at the specific address for which the license or an 10 endorsement to the license is issued; 11 * Sec. 148. AS 04.21.080(b) is amended by adding new paragraphs to read: 12 (21) "bona fide restaurant" means an establishment or a portion of an 13 establishment where, during all times alcoholic beverages are served or consumed, 14 (A) the patron's principal activity is consumption of food; and 15 (B) a variety of types of food items appropriate for meals is 16 prepared on site and available for sale as shown on a menu provided to patrons 17 and filed with the board; 18 (22) "brewed beverage" means an alcoholic beverage made by 19 fermenting cereal grains, including beer and malt beverages, sake, and kombucha; 20 (23) "calendar year" means the period beginning January 1 and ending 21 December 31; 22 (24) "cider" means a type of wine made primarily from fermented 23 apples, apple juice, or concentrate; 24 (25) "distilled spirit" means an alcoholic beverage that is first 25 fermented and then distilled; 26 (26) "golf course" means a course that is open to the public, having at 27 least nine holes and covering at least 2,950 yards; 28 (27) "kombucha" means a brewed beverage made from fermented tea 29 and containing at least one-half percent alcohol by volume; 30 (28) "mead" means a type of wine made primarily from honey; 31 (29) "sake" means a type of brewed beverage made primarily from

01 fermented rice; 02 (30) "wine" means an alcoholic beverage made from fermented grapes 03 or other fruit or honey. 04 * Sec. 149. AS 05.15.690(48) is amended to read: 05 (48) "vendor" means a business whose primary activity is not regulated 06 by this chapter but that 07 (A) is engaged in the sale of pull-tabs on behalf of a permittee; 08 (B) holds a business license under AS 43.70; and 09 (C) is an establishment holding a 10 (i) beverage dispensary license under AS 04.09.200 or 11 beverage dispensary tourism license under AS 04.09.350 12 [AS 04.11.090] that [HAS NOT BEEN DESIGNATED BY THE 13 ALCOHOLIC BEVERAGE CONTROL BOARD UNDER 14 AS 04.16.049(a)(2) - (3),] has not been exempted by the Department of 15 Labor and Workforce Development under AS 04.16.049(c) and 16 AS 23.10.355, does not allow the sale of pull-tabs in portions of the 17 establishment designated as a bona fide restaurant under 18 AS 04.09.450, and, if the establishment is a hotel, motel, resort, or 19 similar business that caters to the traveling public as a substantial part 20 of its business, does not allow the sale of pull-tabs in a dining room, 21 banquet room, guest room, or other public areas other than a room in 22 which there is regularly maintained a fixed counter or service bar that 23 has plumbing connections to permanent plumbing at which 24 alcoholic beverages are sold or served to members of the public for 25 consumption; 26 (ii) package store license under AS 04.09.230 27 [AS 04.11.150]; 28 * Sec. 150. AS 09.65.315(b) is amended to read: 29 (b) A person licensed under AS 04.09.020 - 04.09.370 [AS 04.11.080 - 30 04.11.255], or an agent or employee of the person, is not liable for damages resulting 31 from a motor vehicle accident described under (a) of this section. A person or entity

01 that participates in making arrangements for transportation of a vehicle under (a) of 02 this section is not liable for damages resulting from a motor vehicle accident described 03 in (a) of this section. 04 * Sec. 151. AS 11.61.220(d) is amended to read: 05 (d) In a prosecution under (a)(2) of this section, it is 06 (1) an affirmative defense that 07 (A) [REPEALED] 08 (B) the loaded firearm was a concealed handgun as defined in 09 AS 18.65.790; and 10 (C) the possession occurred at a place covered by a restaurant 11 or eating place license under AS 04.09.210, seasonal restaurant or eating 12 place tourism license under AS 04.09.360, or restaurant endorsement 13 under AS 04.09.450 [DESIGNATED AS A RESTAURANT FOR THE 14 PURPOSES OF AS 04.16.049] and the defendant did not consume 15 intoxicating liquor at the place; 16 (2) a defense that the defendant, at the time of possession, was on 17 business premises 18 (A) owned by or leased by the defendant; or 19 (B) in the course of the defendant's employment for the owner 20 or lessee of those premises. 21 * Sec. 152. AS 11.76.100(b) is amended to read: 22 (b) Notwithstanding the provisions of (a) of this section, a person who 23 maintains a vending machine is not in violation of (a)(3) of this section if the vending 24 machine is located 25 (1) on premises licensed as a beverage dispensary under AS 04.09.200 26 or 04.09.350 [AS 04.11.090], licensed as a club under AS 04.09.220 [AS 04.11.110], 27 or licensed as a package store under AS 04.09.230 [AS 04.11.150]; and 28 (A) as far as practicable from the primary entrance; and 29 (B) in a place that is directly and continually supervised by a 30 person employed on the licensed premises during the hours the vending 31 machine is accessible to the public; or

01 (2) in an employee break room or other controlled area of a private 02 work place that is not generally considered a public place and the room or area 03 contains a posted warning sign at least 11 inches by 14 inches indicating that 04 possession of tobacco by a person under 19 years of age is prohibited under 05 AS 11.76.105. 06 * Sec. 153. AS 11.76.107(a) is amended to read: 07 (a) A person commits the offense of failure to supervise a vending machine if 08 the person owns premises licensed as a beverage dispensary under AS 04.09.200 or 09 04.09.350 [AS 04.11.090], licensed as a club under AS 04.09.220 [AS 04.11.110], or 10 licensed as a package store under AS 04.09.230 [AS 04.11.150] and with criminal 11 negligence fails to have an employee supervise a vending machine on those premises 12 that dispenses cigarettes, cigars, tobacco, products containing tobacco, electronic 13 smoking products, or products containing nicotine as required by 14 AS 11.76.100(b)(1)(B) and 11.76.109(d)(1)(B). 15 * Sec. 154. AS 11.76.109(d) is amended to read: 16 (d) Notwithstanding (a)(3) of this section, a person who maintains a vending 17 machine is not in violation of (a)(3) of this section if the vending machine is located 18 (1) on premises licensed as a beverage dispensary under AS 04.09.200 19 or 04.09.350 [AS 04.11.090], licensed as a club under AS 04.09.220 [AS 04.11.110], 20 or licensed as a package store under AS 04.09.230 [AS 04.11.150], and is located 21 (A) as far as practicable from the primary entrance; and 22 (B) in a place that is directly and continually supervised by a 23 person employed on the licensed premises during the hours the vending 24 machine is accessible to the public; or 25 (2) in an employee break room or other controlled area of a private 26 work place that is not generally considered a public place and the room or area 27 contains a posted warning sign at least 11 inches by 8.5 inches indicating that 28 possession of electronic smoking products or products containing nicotine by a person 29 under 19 years of age without a prescription is prohibited under this section 30 [AS 11.76.109]. 31 * Sec. 155. AS 12.62.400(a) is amended to read:

01 (a) To obtain a national criminal history record check for determining a 02 person's qualifications for a license, permit, registration, employment, or position, a 03 person shall submit the person's fingerprints to the department with the fee established 04 by AS 12.62.160. The department may submit the fingerprints to the Federal Bureau 05 of Investigation to obtain a national criminal history record check of the person for the 06 purpose of evaluating a person's qualifications for 07 (1) a license or conditional contractor's permit to manufacture, sell, 08 offer for sale, possess for sale or barter, traffic in, or barter an alcoholic beverage 09 under AS 04.09 [AS 04.11]; 10 (2) licensure as a mortgage lender, a mortgage broker, or a mortgage 11 loan originator under AS 06.60; 12 (3) admission to the Alaska Bar Association under AS 08.08; 13 (4) licensure as a collection agency operator under AS 08.24; 14 (5) a certificate of fitness to handle explosives under AS 08.52; 15 (6) licensure as a massage therapist under AS 08.61; 16 (7) licensure to practice nursing or certification as a nurse aide under 17 AS 08.68; 18 (8) certification as a real estate appraiser under AS 08.87; 19 (9) a position involving supervisory or disciplinary power over a minor 20 or dependent adult for which criminal justice information may be released under 21 AS 12.62.160(b)(9); 22 (10) a teacher certificate under AS 14.20; 23 (11) a registration or license to operate a marijuana establishment 24 under AS 17.38; 25 (12) admittance to a police training program under AS 18.65.230 or for 26 certification as a police officer under AS 18.65.240 if that person's prospective 27 employer does not have access to a criminal justice information system; 28 (13) licensure as a security guard under AS 18.65.400 - 18.65.490; 29 (14) a concealed handgun permit under AS 18.65.700 - 18.65.790; 30 (15) licensure as an insurance producer, managing general agent, 31 reinsurance intermediary broker, reinsurance intermediary manager, surplus lines

01 broker, or independent adjuster under AS 21.27; 02 (16) serving and executing process issued by a court by a person 03 designated under AS 22.20.130; 04 (17) a school bus driver license under AS 28.15.046; 05 (18) licensure as an operator or an instructor for a commercial driver 06 training school under AS 28.17; 07 (19) registration as a broker-dealer, agent, investment adviser 08 representative, or investment adviser under AS 45.56.300 - 45.56.350; 09 (20) licensure, license renewal, certification, certification renewal, or 10 payment from the Department of Health and Social Services of an individual and an 11 entity subject to the requirements for a criminal history check under AS 47.05.310, 12 including 13 (A) a public home care provider described in AS 47.05.017; 14 (B) a provider of home and community-based waiver services 15 financed under AS 47.07.030(c); 16 (C) a case manager to coordinate community mental health 17 services under AS 47.30.530; 18 (D) an entity listed in AS 47.32.010(b), including an owner, 19 officer, director, member, partner, employee, volunteer, or contractor of an 20 entity; or 21 (E) an individual or entity not described in (A) - (D) of this 22 paragraph that is required by statute or regulation to be licensed or certified by 23 the Department of Health and Social Services or that is eligible to receive 24 payments, in whole or in part, from the Department of Health and Social 25 Services to provide for the health, safety, and welfare of persons who are 26 served by the programs administered by the Department of Health and Social 27 Services. 28 * Sec. 156. AS 18.56.230(b) is amended to read: 29 (b) The corporation may not authorize the commercial use of space in a multi- 30 unit residential housing development owned or financed by the corporation for 31 (1) a business that offers adult entertainment;

01 (2) the sale of alcoholic beverages, unless the sale [IS IN A 02 RESTAURANT OR EATING PLACE LICENSED UNDER AS 04.11.100 OR] is in 03 premises 04 (A) licensed under a restaurant or eating place license 05 issued by the Alcoholic Beverage Control Board under AS 04.09.210 or 06 seasonal restaurant or eating place tourism license issued by the Alcoholic 07 Beverage Control Board under AS 04.09.360; or 08 (B) covered by a restaurant endorsement issued 09 [DESIGNATED] by the Alcoholic Beverage Control Board under 10 AS 04.09.450 [AS A RESTAURANT UNDER AS 04.16.049]; 11 (3) substance abuse treatment; or 12 (4) a business that primarily sells, transfers, or stores cigarettes or 13 tobacco-related products. 14 * Sec. 157. AS 18.65.085(c) is amended to read: 15 (c) The Department of Public Safety may establish and administer a reward 16 program, and provide grants to municipalities, established villages, and, at the request 17 of a municipality or established village, to a nonprofit association that administers a 18 village public safety officer program, for reward programs leading to the apprehension 19 and conviction of persons who violate AS 04.09.060, 04.09.850, or AS 04.11.010 by 20 selling, importing, or possessing alcoholic beverages in violation of a local option 21 adopted by a municipality or established village under AS 04.11.491. 22 * Sec. 158. AS 18.80.230(b) is amended to read: 23 (b) Notwithstanding (a) of this section, a physical fitness facility may limit 24 public accommodation to only males or only females to protect the privacy interests of 25 its users. Public accommodation may be limited under this subsection only to those 26 rooms in the facility that are primarily used for weight loss, aerobic, and other 27 exercises, or for resistance weight training. Public accommodation may not be limited 28 under this subsection to rooms in the facility primarily used for other purposes, 29 including conference rooms, dining rooms, and premises licensed under AS 04.09 30 [AS 04.11]. This subsection does not apply to swimming pools or golf courses. 31 * Sec. 159. AS 43.60 is amended by adding a new section to read:

01 Sec. 43.60.060. Manufacturer direct shipment tax; statement; audit. A 02 holder of a manufacturer direct shipment license under AS 04.09.370 who sells its 03 product in the state or who consigns shipments of its product into the state shall 04 (1) be subject to the taxes provided under AS 43.60.010(a); 05 (2) provide monthly statements and other information required under 06 AS 43.60.020 with the remittance of a tax collected under this section; 07 (3) allow the Department of Revenue to perform an audit of the 08 holder's records upon request; and 09 (4) consent to the jurisdiction of a state court concerning enforcement 10 of this section relating to the collection of taxes and other money owed by the holder, 11 including interest and penalties. 12 * Sec. 160. AS 43.70.105(a) is amended to read: 13 (a) This chapter does not apply to 14 (1) a fisheries business; 15 (2) the sale of liquor under a license issued under AS 04.09 16 [AS 04.11]; 17 (3) an insurance business; 18 (4) a mining business; 19 (5) supplying services as an employee; 20 (6) furnishing goods or services by a person who does not represent to 21 be regularly engaged in furnishing goods or services; 22 (7) the activities of an investment club; in this paragraph, 23 (A) "investment club" means a group of individuals, 24 incorporated or otherwise organized, that engages primarily in investing in 25 securities, that does not sell investment services to another person, that does 26 not advertise, and the primary purpose of which is educational; 27 (B) "security" has the meaning given in AS 45.56.900. 28 * Sec. 161. AS 45.45.590(1) is amended to read: 29 (1) "business proprietor" means a person who owns a place of business 30 in which the public may assemble and in which copyrighted musical works may be 31 performed, broadcasted, or otherwise transmitted; in this paragraph, "place of

01 business" includes a store, professional office, sports facility, entertainment facility, 02 restaurant, hotel, or [AN] alcoholic beverage establishment licensed under AS 04.09 03 [AS 04.11]; 04 * Sec. 162. The uncodified law of the State of Alaska is amended by adding a new section 05 to read: 06 DIRECT COURT RULE AMENDMENT. Rule 17(h), Alaska Rules of Minor 07 Offense Procedure, is amended to read: 08 (h) Joinder Limits. A prosecutor may not join a violation of AS 04.16.049, 09 [OR] 04.16.050, or 04.16.060(g) or a similar municipal ordinance with a related 10 criminal charge. 11 * Sec. 163. AS 04.11.070, 04.11.080, 04.11.090, 04.11.100, 04.11.110, 04.11.115, 12 04.11.120, 04.11.130, 04.11.135, 04.11.140, 04.11.150, 04.11.160, 04.11.170, 04.11.180, 13 04.11.200, 04.11.210, 04.11.220, 04.11.225, 04.11.230, 04.11.240, 04.11.250, 04.11.255, 14 04.11.400(d), 04.11.400(h), 04.11.400(j); AS 04.16.070, 04.16.100, 04.16.180(a), 15 04.16.180(d), 04.16.210; and AS 04.21.080(b)(3) are repealed. 16 * Sec. 164. AS 04.11.400(e) and 04.11.400(g) are repealed. 17 * Sec. 165. AS 04.09.270(f) is repealed January 1, 2029. 18 * Sec. 166. The uncodified law of the State of Alaska is amended by adding a new section 19 to read: 20 APPLICABILITY. (a) The provisions of secs. 13 - 24, 34, 84 - 87, 89 - 134, 139 - 21 142, 144, and 152 - 154 of this Act apply to offenses committed on or after the effective date 22 of each of those respective sections. 23 (b) References to previous convictions in AS 04.11.270(a), as amended by sec. 27 of 24 this Act, AS 04.16.180(b), as amended by sec. 127 of this Act, AS 04.16.180(e), as amended 25 by sec. 128 of this Act, and AS 04.16.220(i), as amended by sec. 133 of this Act, apply to 26 convictions occurring before, on, or after the effective date of each of those respective 27 sections. 28 * Sec. 167. The uncodified law of the State of Alaska is amended by adding a new section 29 to read: 30 TRANSITION: IMPLEMENTATION. Notwithstanding sec. 175 of this Act, to timely 31 provide for the issuance, renewal, and transfer of licenses, endorsements, and permits,

01 beginning on January 1, 2024, the Alcoholic Beverage Control Board may begin to implement 02 the changes that will be made under secs. 6, 7, 12, 13, 25, 27, 74, and 168 of this Act by 03 sending out notices relating to, accepting applications for, and collecting fees for licenses, 04 endorsements, and permits according to the changes that will be made when secs. 6, 7, 12, 13, 05 25, 27, 74, and 168 of this Act take effect. However, the Alcoholic Beverage Control Board 06 may not issue licenses, endorsements, and permits under secs. 6, 7, 12, 13, 25, 27, 74, and 168 07 of this Act before January 1, 2024. 08 * Sec. 168. The uncodified law of the State of Alaska is amended by adding a new section 09 to read: 10 TRANSITION: CONVERSION OF APPLICATIONS AND LICENSES. (a) 11 Notwithstanding the population limits under AS 04.11.400(a) or (b), the Alcoholic Beverage 12 Control Board shall convert, within 90 days after the effective date of this subsection, 13 (1) a license issued or renewed as necessary for the public convenience under 14 former AS 04.11.400(e) or 04.11.400(g), repealed by sec. 164 of this Act, into a restaurant or 15 eating place license under AS 04.11.100; if the license was issued as a restaurant or eating 16 place license, or into a beverage dispensary license under AS 04.11.090, if the license was 17 issued as a beverage dispensary license under former AS 04.11.400(j), as that subsection read 18 on June 5, 1985; 19 (2) an application submitted to the board that meets all of the requirements 20 under former AS 04.11.400(e) or 04.11.400(g), repealed by sec. 164 of this Act, into an 21 application for a restaurant or eating place license under AS 04.11.100. 22 (b) Notwithstanding the population limits under AS 04.11.400(a) or (b), the Alcoholic 23 Beverage Control Board shall convert, within 90 days after the effective date of this 24 subsection, 25 (1) a license issued or renewed as a bottling works license under former 26 AS 04.11.120, repealed by sec. 163 of this Act, into a brewery manufacturer license under 27 AS 04.09.020, added by sec. 13 of this Act, or into a winery manufacturer license under 28 AS 04.09.030, added by sec. 13 of this Act; 29 (2) a license issued or renewed as a brewpub license under former 30 AS 04.11.135, repealed by sec. 163 of this Act, into a brewery manufacturer license under 31 AS 04.09.020, added by sec. 13 of this Act;

01 (3) a license issued or renewed as a beverage dispensary license or restaurant 02 or eating place license for a premises that is a theater under former AS 04.11.090 or 03 AS 04.11.100, repealed by sec. 163 of this Act, into a theater license under AS 04.09.250, 04 added by sec. 13 of this Act; 05 (4) a license issued or renewed as a wholesale license under former 06 AS 04.11.160(a), repealed by sec. 163 of this Act, into a general wholesale license under 07 AS 04.09.100, added by sec. 13 of this Act; 08 (5) a license issued or renewed as a wholesale license under former 09 AS 04.11.160(b), repealed by sec. 163 of this Act, into a limited wholesale brewed beverage 10 and wine license under AS 04.09.110, added by sec. 13 of this Act; 11 (6) a license issued or renewed as a beverage dispensary license under former 12 AS 04.11.400(d), repealed by sec. 163 of this Act, into a beverage dispensary tourism license 13 under AS 04.09.350, added by sec. 13 of this Act; 14 (7) a duplicate license issued or renewed as a duplicate beverage dispensary 15 license under former AS 04.11.090(e), repealed by sec. 163 of this Act, into a multiple fixed 16 counter endorsement under AS 04.09.420, added by sec. 13 of this Act. 17 (c) Notwithstanding the population limits under AS 04.11.400(a) or (b), the Alcoholic 18 Beverage Control Board shall, upon application by the licensee, convert a license issued or 19 renewed as a recreational site license under former AS 04.11.210, repealed by sec. 163 of this 20 Act, into a sporting activity or event license under AS 04.09.270, added by sec. 13 of this Act, 21 or another applicable license under AS 04.09. 22 (d) Notwithstanding the population limits under AS 04.11.400(a) or (b), the Alcoholic 23 Beverage Control Board may 24 (1) convert a license issued or renewed as a brewery license under former 25 AS 04.11.130, repealed by sec. 163 of this Act, into a brewery manufacturer license under 26 AS 04.09.020, added by sec. 13 of this Act, and a brewery retail license under AS 04.09.320, 27 added by sec. 13 of this Act, upon application by the licensee; 28 (2) convert an application submitted to the board that meets all of the 29 requirements under former AS 04.11.130, repealed by sec. 163 of this Act, into an application 30 for a brewery manufacturer license under AS 04.09.020, added by sec. 13 of this Act, and a 31 brewery retail license under AS 04.09.320, added by sec. 13 of this Act;

01 (3) issue a brewery manufacturer license under AS 04.09.020, added by sec. 02 13 of this Act, and a brewery retail license under AS 04.09.320, added by sec. 13 of this Act, 03 to an applicant who submits an application to the board under former AS 04.11.130, repealed 04 by sec. 163 of this Act, if the board converts the application under (2) of this subsection; 05 (4) convert a license issued or renewed as a winery license under former 06 AS 04.11.140, repealed by sec. 163 of this Act, into a winery manufacturer license under 07 AS 04.09.030, added by sec. 13 of this Act, and a winery retail license under AS 04.09.330, 08 added by sec. 13 of this Act, upon application by the licensee; 09 (5) convert an application submitted to the board that meets all of the 10 requirements under former AS 04.11.140, repealed by sec. 163 of this Act, into an application 11 for a winery manufacturer license under AS 04.09.030, added by sec. 13 of this Act, and a 12 winery retail license under AS 04.09.330, added by sec. 13 of this Act; 13 (6) issue a winery manufacturer license under AS 04.09.030, added by sec. 13 14 of this Act, and a winery retail license under AS 04.09.330, added by sec. 13 of this Act, to an 15 applicant who submits an application to the board under former AS 04.11.140, repealed by 16 sec. 163 of this Act, if the board converts the application under (5) of this subsection; 17 (7) convert a license issued or renewed as a distillery license under former 18 AS 04.11.170, repealed by sec. 163 of this Act, into a distillery manufacturer license under 19 AS 04.09.040, added by sec. 13 of this Act, and a distillery retail license under AS 04.09.340, 20 added by sec. 13 of this Act, upon application by the licensee; 21 (8) convert an application submitted to the board that meets all of the 22 requirements under former AS 04.11.170, repealed by sec. 163 of this Act, into an application 23 for a distillery manufacturer license under AS 04.09.040, added by sec. 13 of this Act, and a 24 distillery retail license under AS 04.09.340, added by sec. 13 of this Act; 25 (9) issue a distillery manufacturer license under AS 04.09.040, added by sec. 26 13 of this Act, and a distillery retail license under AS 04.09.340, added by sec. 13 of this Act, 27 to an applicant who submits an application to the board under former AS 04.11.170, repealed 28 by sec. 163 of this Act, if the board converts the application under (8) of this subsection; 29 (10) establish an application form and procedure for conversion applications 30 under this subsection. 31 * Sec. 169. The uncodified law of the State of Alaska is amended by adding a new section

01 to read: 02 TRANSITION: SEASONAL RESTAURANT OR EATING PLACE LICENSE. (a) 03 Notwithstanding AS 04.11.080, the Alcoholic Beverage Control Board may issue a seasonal 04 restaurant or eating place tourism license to a person who files an application under 05 AS 04.11.260. 06 (b) A seasonal restaurant or eating place license authorizes a restaurant or eating place 07 to sell brewed beverages and wine for consumption only on the licensed premises for a period 08 not to exceed six months in each calendar year. 09 (c) The biennial seasonal restaurant or eating place tourism license fee is $1,250. 10 (d) The board may issue a license under this section only if 11 (1) the board determines that the licensed premises is a bona fide restaurant or 12 eating place; and 13 (2) the sale and service of food and alcoholic beverages and any other 14 business conducted on the licensed premises of the restaurant or eating place is under the sole 15 control of the licensee. 16 (e) The board may issue a license under this section only in a municipality or 17 established village that 18 (1) has a population of 40,000 or less; and 19 (2) receives more than 4,000 visitors a year, as determined by the board in 20 regulation. 21 (f) The board may issue a license or approve an application for the transfer of 22 ownership of a license under this section if it appears that issuance or transfer will encourage 23 the tourism trade. 24 (g) The holder of a seasonal restaurant or eating place tourism license shall ensure 25 that gross receipts from the sale of food for consumption on the licensed premises are not less 26 than the total amount of the gross receipts from the sale of alcoholic beverages for 27 consumption on the licensed premises in each calendar year. 28 (h) The board shall adopt a regulation establishing a formula to limit the number of 29 seasonal restaurant or eating place tourism licenses. 30 (i) The holder of a seasonal restaurant or eating place tourism license may provide 31 entertainment on or adjacent to the licensed premises only between the hours of 11:00 a.m.

01 and 11:00 p.m. unless additional hours are approved by the director upon the written request 02 of the licensee for a specific occasion. The director may not grant approval for additional 03 hours of entertainment on or adjacent to the licensed premises of an individual licensee more 04 than three times in a calendar year. In this subsection, "entertainment" includes dancing, 05 karaoke, live performances, or similar activities, but does not include recorded or broadcast 06 performances without live participation. 07 (j) A license issued under this section may be renewed under AS 04.09.360, added by 08 sec. 13 of this Act, on or after the effective date of sec. 13 of this Act. 09 (k) In this section, "bona fide restaurant" means an establishment or a portion of an 10 establishment where, during all times alcoholic beverages are served or consumed, 11 (1) the patron's principal activity is consumption of food; and 12 (2) a variety of types of food items appropriate for meals is prepared on site 13 and available for sale as shown on a menu provided to patrons and filed with the board. 14 * Sec. 170. The uncodified law of the State of Alaska is amended by adding a new section 15 to read: 16 TRANSITION: REGULATIONS. The Department of Commerce, Community, and 17 Economic Development and the Alcoholic Beverage Control Board may adopt regulations 18 necessary to implement the changes made by this Act. The regulations take effect under 19 AS 44.62 (Administrative Procedure Act), but not before the effective date of the law 20 implemented by the regulation. 21 * Sec. 171. Sections 168(a) and 169 of this Act are repealed January 1, 2024. 22 * Sec. 172. The uncodified law of the State of Alaska is amended by adding a new section 23 to read: 24 CONDITIONAL EFFECT. AS 04.16.060(k), enacted by sec. 108 of this Act, and sec. 25 162 of this Act take effect only if sec. 162 of this Act receives the two-thirds majority vote of 26 each house required by art. IV, sec. 15, Constitution of the State of Alaska. 27 * Sec. 173. Sections 36, 41, 43, 49, 53, 58, 164, 168(a), 168(d)(8), 169, and 170 of this Act 28 take effect immediately under AS 01.10.070(c). 29 * Sec. 174. Section 167 of this Act takes effect September 1, 2023. 30 * Sec. 175. Except as provided in secs. 173 and 174 of this Act, this Act takes effect 31 January 1, 2024.