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SB 213: "An Act relating to alcohol; relating to local option elections; relating to the statewide database of alcohol purchases; relating to alcohol licenses, endorsements, and permits; relating to municipal regulation and taxation of alcoholic beverages; and providing for an effective date."

00 SENATE BILL NO. 213 01 "An Act relating to alcohol; relating to local option elections; relating to the statewide 02 database of alcohol purchases; relating to alcohol licenses, endorsements, and permits; 03 relating to municipal regulation and taxation of alcoholic beverages; and providing for 04 an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 04.06.095(a) is amended to read: 07 (a) The board, after consulting with package store licensees, shall create and 08 maintain a statewide database that contains a monthly record of the alcohol purchased 09 by, and shipped to, a person who resides in a municipality or established village that 10 has restricted the sale of alcoholic beverages under AS 04.11.491(a)(1), (2), [OR] (3), 11 or (6) or (b)(1) or (2). 12 * Sec. 2. AS 04.09.460(c) is amended to read: 13 (c) An endorsement holder may ship alcoholic beverages only to the purchaser 14 and may ship alcoholic beverages only in response to an order. The endorsement

01 holder may not, in response to an order, ship alcohol to a purchaser at an address other 02 than the address where the purchaser resides or, if the purchaser resides in a 03 municipality or established village that has adopted a local option under 04 AS 04.11.491(a)(1), (2), [OR] (3), or (6) or (b)(1) or (2) for which a community 05 delivery site has been designated under AS 04.11.491(f), to an address other than that 06 community delivery site except as provided by AS 04.11.491(f)(1) and (2). 07 * Sec. 3. AS 04.09.460(e) is amended to read: 08 (e) If a shipment is to an area that has restricted the sale of alcoholic beverages 09 under AS 04.11.491(a)(1), (2), [OR] (3), or (6) or (b)(1) or (2), an endorsement holder 10 may not ship to a purchaser more than 10.5 liters of distilled spirits or 24 liters or more 11 of wine, or either a half-barrel keg of brewed beverages or 12 gallons or more of 12 brewed beverages in individual containers in a calendar month, or a lower amount of 13 distilled spirits, wine, or brewed beverages if the municipality or established village 14 has adopted the lower amount by local option under AS 04.11.491(g). Before shipping 15 alcohol to a purchaser in a restricted area, an endorsement holder shall consult the 16 database maintained by the board under AS 04.06.095 for any alcoholic beverage 17 shipments made to the purchaser during that calendar month by a package store. An 18 endorsement holder may not ship an amount of alcoholic beverages to a purchaser in a 19 restricted area that, when added to the amount already shipped, exceeds the amount 20 authorized by this subsection. An endorsement holder shall immediately enter into the 21 database the date and the amount of alcoholic beverages shipped to the purchaser. 22 * Sec. 4. AS 04.11.010(b) is amended to read: 23 (b) Except as provided in this subsection, a person may not solicit or receive 24 orders for the delivery of an alcoholic beverage in an area that has adopted a local 25 option under AS 04.11.491. If the area has adopted a local option under 26 AS 04.11.491(a)(1), (2), [OR] (3), or (6) or (b)(1) or (2), a package store licensee 27 outside of that local option area may receive orders as provided under a package store 28 shipping endorsement under AS 04.09.460 but may not solicit in that area or receive 29 orders through an agent or employee in that area. This subsection does not apply to a 30 package store licensee who operates a package store in an area that has adopted a local 31 option under AS 04.11.491(a)(2)(C), [OR] (3)(C), or (6)(C) or (b)(2)(C). A person

01 who violates this subsection is punishable upon conviction as provided under 02 AS 04.16.200(a) or (b). 03 * Sec. 5. AS 04.11.320(a) is amended to read: 04 (a) An application requesting issuance of a new license or endorsement shall 05 be denied if 06 (1) the board finds, after review of all relevant information, that 07 issuance of the license or endorsement would not be in the best interests of the public; 08 (2) issuance of the license is prohibited by AS 04.11.410, relating to 09 location of premises near churches and schools; 10 (3) the application has not been completed in accordance with 11 AS 04.11.260; 12 (4) issuance of the license or endorsement would violate the 13 restrictions pertaining to the particular license or endorsement imposed under this title; 14 (5) issuance of the license is prohibited under this title as a result of an 15 election conducted under AS 04.11.507; 16 (6) the requirements of AS 04.11.420 - 04.11.450 relating to zoning, 17 ownership and location of the license, and the identity and financing of a licensee have 18 not been met or the requirements of AS 04.11.430(b) relating to location of the 19 endorsement have not been met; 20 (7) issuance of the license is prohibited under AS 04.11.400(a) or 21 prohibition of issuance of the license is found necessary under AS 04.11.400(b); 22 (8) the application contains false statements of material fact; 23 (9) the license is sought for the sale of alcoholic beverages in a first or 24 second class city where there are no licensed premises at the time of application unless 25 a majority of the voters have voted not to approve a local option to restrict or prohibit 26 the sale of alcoholic beverages under AS 04.11.491, have voted to approve a local 27 option to allow the type of premises under AS 04.11.491(a)(2), [OR] (3), or (6), or 28 have voted to remove a restriction or prohibition on the sale of alcoholic beverages 29 under AS 04.11.495; or 30 (10) the license is sought for the sale of alcoholic beverages in an 31 established village where there are no licensed premises at the time of application

01 unless a majority of the voters have voted not to approve a local option to restrict or 02 prohibit the sale of alcoholic beverages under AS 04.11.491, have voted to approve a 03 local option to allow the type of premises under AS 04.11.491(b)(2), or have voted to 04 remove a restriction or prohibition on the sale of alcoholic beverages under 05 AS 04.11.495. 06 * Sec. 6. AS 04.11.320(b) is amended to read: 07 (b) An application requesting issuance of a new permit shall be denied if 08 (1) the board finds, after review of all relevant information, that 09 issuance of the permit would not be in the best interests of the public; 10 (2) the board finds that any of the statements made in the application 11 are untrue; 12 (3) the application has not been completed in accordance with 13 AS 04.11.260; or 14 (4) the permit is sought for the sale of alcoholic beverages in a first or 15 second class city or established village where there are no licensed premises at the 16 time of application unless a majority of the voters have voted not to approve a local 17 option to restrict or prohibit the sale of alcoholic beverages under AS 04.11.491, have 18 voted to approve a local option to allow the type of permit under AS 04.11.491(a)(2) 19 or (6) or (b)(2), or have voted to remove a restriction or prohibition on the sale of 20 alcoholic beverages under AS 04.11.495. 21 * Sec. 7. AS 04.11.491(a) is amended to read: 22 (a) If a majority of the persons voting on the question vote to approve the 23 option, a municipality shall adopt a local option to prohibit 24 (1) the sale of alcoholic beverages; 25 (2) the sale of alcoholic beverages except by one or more of the 26 following listed on the ballot: 27 (A) a restaurant or eating place licensee; 28 (B) a beverage dispensary licensee; 29 (C) a package store licensee; 30 (D) a caterer holding a beverage dispensary caterer's permit 31 under AS 04.09.610 to sell alcoholic beverages at a site within the municipality

01 who is also licensed under a beverage dispensary license for premises outside 02 of the municipality; 03 (E) a winery manufacturer licensee; 04 (F) a winery manufacturer licensee, except that sales may occur 05 only to a person licensed under this title or in another state or country; 06 (G) an outdoor recreation lodge licensee; or 07 (H) a package store licensee limited to selling only beer and 08 wine; 09 (3) the sale of alcoholic beverages except on premises operated by the 10 municipality and under a type of licensed premises listed on the ballot, that may 11 include one or more of the following: 12 (A) a restaurant or eating place license; 13 (B) a beverage dispensary license; or 14 (C) a package store license; 15 (4) the sale and importation of alcoholic beverages; [OR] 16 (5) the sale, importation, and possession of alcoholic beverages; or 17 (6) the sale of alcoholic beverages except by one or more of the 18 following listed on the ballot: 19 (A) a restaurant or eating place licensee; 20 (B) a beverage dispensary licensee; 21 (C) a package store licensee on premises operated by the 22 municipality. 23 * Sec. 8. AS 04.11.491(d) is amended to read: 24 (d) The ballot for an election on the option set out in (a)(2)(A), (a)(3)(A), or 25 (b)(2)(A) of this section must include a summary explanation of the authority to sell 26 alcoholic beverages given to a restaurant or eating place under AS 04.09.210(a). The 27 ballot for an election on the option set out in (a)(2)(B) or (D), (a)(3)(B), or (b)(2)(B) or 28 (D) of this section must include a statement that a beverage dispensary license is 29 commonly known as a "bar" and a summary explanation of the authority to sell 30 alcoholic beverages given to a beverage dispensary licensee under AS 04.09.200. The 31 ballot for an election on the option set out in (a)(2)(C), (a)(3)(C), (a)(6)(C), or

01 (b)(2)(C) of this section must include a statement that a package store license is 02 commonly known as a "liquor store" and a summary explanation of the authority to 03 sell alcoholic beverages given to a package store licensee under AS 04.09.230. 04 * Sec. 9. AS 04.11.491(f) is amended to read: 05 (f) A municipality or established village that has adopted a local option under 06 (a)(1), (2), [OR] (3), or (6) or (b)(1) or (2) of this section may designate a site for the 07 delivery of alcoholic beverages to individuals in the area or a site for a person to bring 08 alcoholic beverages if the alcoholic beverages are imported into the area. This 09 subsection does not apply to the delivery or importation of 10 (1) one liter or less of distilled spirits, two liters or less of wine, or one 11 gallon or less of malt beverages; or 12 (2) alcoholic beverages to a premises licensed under (a)(2), (3), or (6) 13 [(a)(2) - (3)] or (b)(2) of this section. 14 * Sec. 10. AS 04.11.491(g) is amended to read: 15 (g) If a municipality or established village has adopted a local option under 16 (a)(1), (2), (3), [OR] (4), or (6) or (b)(1), (2), or (3) of this section, the municipality or 17 established village, as part of the local option question or questions placed before the 18 voters, may 19 (1) adopt an amount of alcoholic beverages that may be imported that 20 is less than the amounts set out in AS 04.09.460(e); 21 (2) adopt an amount of alcoholic beverages that would give rise to a 22 presumption that the person possessed the alcoholic beverages for sale; the amounts 23 adopted under this paragraph may be lower than those set out in AS 04.11.010(c); 24 (3) opt to not apply a class C felony to violations of AS 04.16.051 that 25 apply solely by reason of the municipality or established village adopting a local 26 option under this section. 27 * Sec. 11. AS 04.11.503 is amended to read: 28 Sec. 04.11.503. Effect on licenses of restriction on sale. If a majority of the 29 voters vote under AS 04.11.491(a)(2) or (6) or (b)(2) to prohibit sale of alcoholic 30 beverages except by the type or types of licensees or permit holders listed on the 31 ballot, the board may not issue, renew, or transfer between persons or locations a

01 license for premises located within the boundaries of the municipality and in 02 unincorporated areas within five miles of the boundaries of the municipality or within 03 the perimeter of the established village, except the type or types of licenses listed on 04 the ballot. A license in effect within the boundaries of the municipality or perimeter of 05 the established village, and in unincorporated areas within five miles of the boundaries 06 of the municipality, except the type of license listed on the ballot, is void 90 days after 07 the results of the election are certified. A license that expires during the 90 days after 08 the results of a local option election are certified may be extended, until it is void 09 under this section, by payment of a prorated portion of the biennial license fee. 10 * Sec. 12. AS 04.11.505 is amended to read: 11 Sec. 04.11.505. Licensing after prohibition on sale except in premises 12 operated by municipality. (a) If a majority of the voters vote under 13 AS 04.11.491(a)(3) or (6) to prohibit the sale of alcoholic beverages except on 14 premises operated by the municipality, the board may not issue, renew, or transfer 15 between persons or locations a license for premises located within the boundaries of a 16 municipality and in unincorporated areas within five miles of the boundaries of the 17 municipality, with the exception of the type of license listed on the ballot and operated 18 under a license held by the municipality. A license in effect is void 90 days after the 19 results of the election are certified. A license that expires during the 90 days after the 20 results of a local option election are certified may be extended, until it is void under 21 this subsection, by payment of a prorated portion of the biennial license fee. 22 (b) The local governing body of a municipality shall apply for a license to 23 operate the type of licensed premises listed on the ballot under AS 04.11.491(a)(3) or 24 (6)(C) and approved by a majority of the voters. The municipality shall operate the 25 premises subject to the conditions and fees applicable to the type of license. Nothing 26 in this section precludes a municipality from applying to be a licensee under other 27 provisions of this title. 28 * Sec. 13. AS 04.21.010(a) is amended to read: 29 (a) A municipality may adopt ordinances governing the importation, barter, 30 sale, and consumption of alcoholic beverages within the municipality and may ban 31 possession of alcoholic beverages under AS 04.11.491(a)(5). An ordinance adopted

01 under this section may not be inconsistent with this title or regulations adopted under 02 this title. In a municipality that has adopted a local option under AS 04.11.491(a)(1), 03 (2), [OR] (3), or (6), an ordinance is not inconsistent with this title if it limits 04 (1) the monthly amounts of alcoholic beverages a person may import 05 into the municipality; 06 (2) the percent of alcohol by volume that an alcoholic beverage may 07 contain; a limit imposed under this paragraph may not be less than 40 nor more than 08 76 percent alcohol by volume; or 09 (3) the type of alcoholic beverage container that may be possessed in 10 the municipality. 11 * Sec. 14. This Act takes effect January 1, 2025.