Legislature(2019 - 2020)BARNES 124
03/16/2020 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB27 | |
| SB52 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 52 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
| += | HB 27 | TELECONFERENCED | |
SB 52-ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG
3:52:28 PM
CHAIR SPOHNHOLZ announced that the final order of business would
be CS FOR SENATE BILL NO. 52(FIN) am, "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."
3:53:05 PM
KONRAD JACKSON, Staff, Senator Peter Micciche, Alaska State
Legislature, presented the sectional analysis for SB 52,
continued from the previous bill hearing, on behalf of Senator
Micciche, prime sponsor. [Because of its length, the sectional
analysis is provided at the end of the minutes for SB 52.]
MR. JACKSON explained Sections 115-171.
3:57:01 PM
REPRESENTATIVE FIELDS pointed out that the mayor of Anchorage
shut down bars and restaurants except for takeout. He said what
were already tough circumstances for working people and business
owners in downtown Anchorage will be approaching devastating
levels this summer. He opined that being prepared for the
pandemic is in part, helping businesses survive what will
probably be the worst depression in the Alaskas history. He
expressed his hope that the bill will be heard and advanced
expeditiously
3:57:50 PM
REPRESENTATIVE STUTES sought clarification on stacking licenses.
SENATOR MICCICHE explained that under current law, an individual
could own a cidery, a winery, and a brewery, but they could not
be operated under the same license in the same building. He
reiterated that current law does not allow license stacking and
that would not change under SB 52.
CHAIR SPOHNHOLZ offered her understanding that an individual can
own multiple licenses, but the total serving limit would be
apportioned.
SENATOR MICCICHE clarified that Chair Spohnholz may be confusing
sampling with tasting rooms.
CHAIR SPOHNHOLZ acknowledged that.
4:00:23 PM
SENATOR MICCICHE referred attention to the Title 4 Review Report
[included in the committee packet]. He noted that the report
addresses the changes to license fees on page 75 and the changes
to penalties on pages 76-81.
4:01:26 PM
REPRESENTATIVE HANNAN, referencing Section 145, sought to
clarify whether nonalcoholic Kombucha is included in the bill.
SENATOR MICCICHE stated if it's nonalcoholic it's not in the
bill. He noted that alcoholic kombucha is currently unheard of;
however, in the industry, if a beverage tastes good its often
converted to an alcoholic drink. He explained that they were
trying to be forward thinking in case kombucha follows that
trend.
CHAIR SPOHNHOLZ explained that kombucha is not made with cereal
grain; instead, it is made from a symbiotic culture of bacteria
and yeast (SCOBY) and tea. She said its a nonalcoholic
beverage, although sometimes it contains a small percentage of
alcohol.
REPRESENTATIVE HANNAN reiterated her interest in ensuring that
undue regulations are not being added for a category of
beverages that should not be addressed in the bill because it is
nonalcoholic.
CHAIR SPOHNHOLZ echoed her colleague's sentiments.
SENATOR MICCICHE stated that there's a reason it's in the bill.
He deferred to Ms. Brawley.
4:05:27 PM
ANNA BRAWLEY, Senior Associate, Agnew::Beck Consulting,
referencing information provided on the Alcohol and Tobacco Tax
and Trade Bureau (TTB) website, reported that federal and state
law define alcohol as anything above 0.5 percent ABV (alcohol by
volume), which could be kombucha if its fermented and in that
way. She added that most products that are commercially
available are not, making them outside the jurisdiction of the
Alcohol and Beverage Control (ABC) Board. She said the bill
ensures that if someone were to make kombucha that is alcoholic
it would be under the purview of a brewed beverage. She
explained that from the TTBs standpoint, kombucha is defined as
a brewed beverage similar to the way that mead is made from
honey and still considered a wine. She noted that these
regulations would not apply to businesses that currently do not
have to be licensed by the state.
CHAIR SPOHNHOLZ sought clarification on whether alcoholic
kombucha exists.
MS. BRAWLEY offered her understanding that theoretically, it can
be made. She added that to the best of her knowledge, no
businesses in Alaska are currently producing it.
4:07:42 PM
SARAH OATES, President/CEO, Alaska Cabaret, Hotel, Restaurant
and Retailers Association, stated that Alaska Cabaret, Hotel,
Restaurant and Retailers (CHARR) and the Brewers Guild of Alaska
met many times throughout 2019 to discuss the most contentious
sections of Title 4 that have caused previous iterations of the
bill to stall out in the legislative process. She said that
through challenging yet thoughtful compromise, consensus has
finally been reached between public health, public safety, both
state and municipal regulatory bodies, and all three industry
tiers. SB 52 includes many changes that would benefit all
stakeholders. She explained that the addition of endorsements
would empower local governments, while protecting licensees by
giving municipalities a clear, legal means to restrict
privileges of a license if necessary, without having to request
revocation of the licenses operations entirely. She recounted
her experience working for the Alcohol and Marijuana Control
Office (AMCO), adding that this bill will allow members of the
industry to pick up a statute book and understand their legal
privileges, restrictions, and expectations for the first time in
decades. In closing, she relayed Alaska CHARRs full support
for SB 52 and implored the committee to pass the legislation.
4:10:22 PM
EVAN WOOD, Owner, Devil's Club Brewing Company; Government
Affairs Committee, Brewers Guild of Alaska, expressed his
support for SB 52. He said the current version of the bill is
an eight-year culmination of robust stakeholder engagement,
supported by public health, public safety, and all three tiers
of the industry. With the future of the industry and the
economy at-large in question, he urged the committee to move
this legislation forward.
4:12:07 PM
ROBIN MINARD Chief, Chief Communications Officer, Mat-Su Health
Foundation, voiced her strong support for SB 52 based on the
public health elements of the bill. She said it will help
prevent underage drinking and support better enforcement of
Alaskas alcohol laws. She reported that alcohol and substance
abuse were ranked as the number one health issue in Matanuska-
Susitna. She offered her belief that having a well-regulated
alcohol industry that understands and follows the law is part of
the solution. Title 4 is recognized to be outdated, confusing,
and otherwise ineffective in carrying out the intent of the law,
she said. This systemic redraft of Title 4 will benefit
organizations and individuals who are affected by alcohol. She
stated that SB 52 will limit youth access to alcohol, promote
responsible use by adults, and reduce harm. For that reason,
she urged its passage this legislative session.
4:14:14 PM
CHAIR SPOHNHOLZ opened public testimony.
4:14:26 PM
CAMDEN YEHLE conveyed her plans to open a brewery restaurant;
however, she expressed concern about the proposed population
changes that would effectively limit the number of brewery tap
room licenses from thirty to seven. Five of which are already
taken, she said. She pointed out that she could be shut out of
the industry if she fails to obtain one of the two remaining
licenses. She said she believes that more brewery openings make
for more brewery customers, which is good for everyone. She
opined that aside from the changes to population limits, the
bill looks fantastic. She encouraged the committee to pass SB
52.
4:16:46 PM
REPRESENTATIVE HANNAN sought clarification on how the population
cap would specifically affect the Mat-Su Borough.
MS. YEHLE offered her understanding that the bill changes the
population cap from 3,000 per license to 12,000 per license.
She shared, for example, that the city of Wasilla has 8,000
people, allowing for one tap room license, which was already
acquired.
4:18:37 PM
CHAIR SPOHNHOLZ asked Ms. Brawley to describe the reason for
population cap limits and how the restructuring of those limits
was designed regarding cities and boroughs.
MS. BRAWLEY explained that the current population limit is 3,000
for most licenses. She added, that is defined by local
government population. There is a different method for
determining the limits for unorganized boroughs, she said. She
stated that the proposal is to increase the population limit on
new licenses. She further noted that it splits the
manufacturing license between production and the retail room.
That would allow a manufacturer to get a brewery license with no
population limit and exercise it with, for example, a bar,
restaurant, or package store license, which cannot be done under
current law. She said this would increase flexibility and allow
the market to respond to demand without increasing the number of
licenses. She added that the purpose of population limits is to
limit the number of retail outlets in a certain area because the
density of outlets is associated with higher public health and
safety impacts, such as crime and violence.
4:20:39 PM
MS. BRAWLEY responding to a follow-up question from
Representative Hannan, clarified that by unorganized borough
she was referring to a location with no local government and
therefore, no official determination of residency. She
explained that the population in the borough outside a city has
a certain number, and then the city would use the residence of
that city to determine a separate number, so they are two
different numbers."
CHAIR SPOHNHOLZ offered her understanding that part of the
reason for restructuring the population limits is to avoid a
situation where there is a [population] cap inside a city that
is located inside of a borough, which forces alcohol businesses
right outside the city limit to work around the population cap.
She asked if that is correct.
MS. BRAWLEY confirmed that. She noted that the bill includes a
proposal to allow cities to petition for additional restaurant
licenses so a city with a small population, as you said, that
is serving a larger area could petition for those additional
restaurant licenses, make them available and, because there
would be no limit on manufacturing licenses and it would be
allowed for a brewery or a distillery or a winery to own one of
those licenses, it would be possible to essentially create a
brewpub
4:24:55 PM
MS. BRAWLEY responding to comments from Representative Hannan
and Chair Spohnholz, said she does not have the information
available in terms of the specific number of licenses in each
community because it depends on the population.
4:25:28 PM
PAUL THOMAS, Owner, Alaska Cache Liquor, expressed his support
for SB 52. He addressed the eight-year process, adding that
everyone had to compromise to reach the current result. He
stressed the importance of passing SB 52 to stabilize the
industry, especially given the uncertainty of the tourism
industry due to the coronavirus. He reiterated that SB 52 is
imperative for industry stability.
4:27:21 PM
HELEN HARTMAN, American Legion Post 17, stated that SB 52 is a
product of over eight years of hard work from 150 different
stakeholders from across the state. She voiced her full support
for the bill. She said that with the coronavirus pandemic on
the forefront of peoples minds, the industry is in dire need of
stability. She added that SB 52 will provide that stability.
4:28:24 PM
JOSH HEGNA, Owner, Girdwood Brewing Company, expressed his full
support for SB 52. He said the bill is the result of an eight-
year collaborative stakeholder process that included public
health, public safety, and all three tiers of the industry. He
offered his belief that SB 52 would provide meaningful
improvement to alcohol regulation in Alaska. He urged the
committee to move the legislation forward expeditiously.
4:29:47 PM
BOBBY WILKEN, Owner, Hoodoo Brewing Co., expressed his full
support for SB 52. He anecdotally explained the difficulty of
navigating Alaskas current alcohol regulations. He said the
bill is the result of an eight-year collaborative stakeholder
process, adding that it will modernize the industry and allow it
to move forward in the future. He addressed the coronavirus
pandemic and the detrimental effect it could have on the
industry. He urged the committee to move the legislation
forward expeditiously.
4:31:26 PM
BEN MILLSTEIN, Owner, Kodiak Island Brewing Company, expressed
his support for SB 52 and echoed the sentiments of his fellow
testifiers. He added that the bill is the result of an eight-
year collaborative stakeholder process.
4:32:30 PM
DOUG HOGUE, Owner, Kenai River Brewing Company, expressed his
support for SB 52, adding that it's a step in the right
direction towards modernizing Alaskas liquor laws. He
addressed the coronavirus pandemic and the detrimental effect it
could have on the industry. He urged the committee to support
the bill.
4:33:38 PM
BERT COTTLE, Mayor, City of Wasilla, stated that the city of
Wasilla supports the one amendment that still is in there." He
said, at least we have the opportunity to go back once a year
now - if that amendment stays - to ask for additional
restaurant, beer, and wine licenses." He explained that it
takes local control away from the local jurisdiction on economic
development. He discussed package stores and full pours in
Wasilla. He expressed his support for the educational aspect
and the law enforcement in the bill.
4:36:11 PM
REPRESENTATIVE HANNAN sought clarification on Mayor Cottles
meaning of "come back once a year."
MAYOR COTTLE explained that under SB 52 in its current form, the
city of Wasilla would be allowed to appear in front of the [ABC]
Board once a year to ask for additional beer and wine licenses.
He noted that there is not a provision in the bill that would
allow him to ask the board for an additional package store.
4:37:27 PM
CHAIR SPOHNHOLZ closed public testimony.
4:37:52 PM
CHAIR SPOHNHOLZ questioned whether the Alaska Center for the
Performing Arts can [serve] alcohol on their premises.
MR. JACKSON offered his understanding that the language in the
[theatre] license is sufficient except for the potential issue
with the Alaska Center for the Performing Arts building and its
ability to limit minors access to areas where alcohol is
served. He noted that building layouts are not addressed in
this legislation.
4:39:36 PM
CHAIR SPOHNHOLZ asked Mr. Klinkhart to interpret the theatre
license as outlined in the bill and whether beer and wine could
be served during intermission at the Alaska Center for the
Performing Arts.
GLEN KLINKHART, Director, Alaska Alcohol & Marijuana Control
Office, Department of Commerce, Community & Economic
Development, offered his understanding that beer and wine could
be served; however, he said the issue of controlling access for
minors has been discussed.
4:41:20 PM
REPRESENTATIVE FIELDS sought to clarify whether the current bill
protects the [Alaska Center for the Performing Arts] ability to
continue serving alcohol in the atrium.
MR. KLINKHART said he does not know.
CHAIR SPOHNHOLZ offered her understanding that the bill as it's
currently written, allows beer and wine to be served with a
theatre license; however, there is some ambiguity about how it
would be implemented. She added that there are limitations in
statute and perhaps in regulation that requires beer and
wine to be served in a 21-and-over area, which the Alaska Center
for the Performing Arts does not have. She noted that she does
not intend on expanding access to alcohol. Nonetheless, she
expressed her interest in ensuring that the Alaska Center for
the Performing Arts can continue to serve beer and wine during
intermission.
4:43:25 PM
REPRESENTATIVE FIELDS agreed. He asked Mr. Jackson to confirm
the bill sponsors intent regarding the Alaska Center for the
Performing Arts.
MR. JACKSON directed attention to Section 04.09.250 on page 17
of the bill. He explained that SB 52 relocates the license from
3AAC 304 695, which codifies the regulation that allows theatre
licenses to serve alcoholic beverages into statute.
4:44:14 PM
REPRESENTATIVE HANNAN asked Mr. Klinkhart whether he exercised
the enforcement of alcohol at the Alaska Center for the
Performing Arts during the last decade. She asked if he is
concerned about it being served in the atrium area.
MR. KLINKHART said he inquired about the Alaska Center for the
Performing Arts during his extensive four months on the job.
He added that the center has shown its ability to self-regulate,
as there have been no incidents regarding public safety.
Nonetheless, the old Title 4 information shows that they have
been doing it against statute.
CHAIR SPOHNHOLZ asked whether the requirement to isolate a 21-
and-over area where alcohol is served is in statute or
regulation.
MR. KLINKHART offered his understanding that its in statute;
however, it was intended to regulate bars.
4:47:06 PM
MR. KLINKHART responding to a follow-up question from Chair
Spohnholz, said [the Alaska Center for the Performing Arts]
would need a designated area for the purpose of selling alcohol.
4:47:42 PM
CHAIR SPOHNHOLZ asked how alcohol is sold over the internet and
how that would be regulated in the state of Alaska.
MR. JACKSON deferred to Ms. Brawley.
4:48:31 PM
MS. BRAWLEY said currently online alcohol sales are not
regulated in Alaska. She explained that SB 52 proposes to limit
online sales to wine from wineries with a direct shipment
license, which is consistent with 44 other states. She noted
that the purchaser would be required to demonstrate that they
are of age and would not be able to purchase in a local option
area. Furthermore, she said, in-state package stores would
still be able to ship wine or spirits to customers.
CHAIR SPOHNHOLZ asked if an order from an in-state package store
would still be considered an online sale.
MS. BRAWLEY explained that regardless of where an individual
lives in Alaska, if he or she orders from a package store, then
it must be done through a written order, which is interpreted as
a paper order as long as the store already has the individuals
identification (ID) on file. She noted that SB 52 also proposes
to allow Alaska package stores to offer their products online
with the same protections, adding that if its purchased through
a dry or damp community, then it would still have to be reported
through the written order database that controls the monthly
limits on customers in those areas.
4:50:51 PM
CHAIR SPOHNHOLZ announced that SB 52 was held over.
SECTIONAL ANALYSIS
The following sectional analysis for CSSB 52(FIN) am was
presented during the hearing [original punctuation provided].
Title 4, Chapter 6: Alcohol Beverage Control Board
Section 1: Declaration of Policy; purpose; finding.
Adds a new section AS 04.06.005 (Pages 1-2)
Section 2: Authority of director. Adds a new
subsection AS 04.06.075 to require that the director
of the Alcoholic Beverage Control board (ABC board)
shall include in the agency's budget resources for
administration, enforcement, education, training, and
prevention activities under Title 4. (Page 2)
Section 3: Delegation of Authority. Amends AS
04.06.080 to add endorsements to the delegated powers
of the director of the ABC board. (Page 2)
Section 4: Powers and duties. Amends AS 04.06.090(b)
to relocate existing language in 04.11.070 and adds
endorsements to the powers of the ABC board. (Page 2)
Section 5: Powers and duties. Amends AS 04.06.090(e)
to add endorsements. This section requires the board
to notify all licensees and municipalities of major
changes to Title 4. (Page 2)
Section 6: Powers and duties. Amends AS 04.06.090 to
add a new subsection (f) that directs the board to
prepare a Title 4 education plan for public safety,
industry, youth, municipalities, and the public with
annual revision.
Adds new subsections (g-j) which direct the board to
review fees every 5 years, allow opinions on
legislation amending this title, requires the board to
provide notice of violations to licensees after
receiving from the court system, and to post FASD
information online. (Page 3)
Subsection 7: Statewide database. Amends AS 04.06.095
to allow for certain information from the statewide
database to be retained for 10 years, only identifying
information will be purged annually. Adds a reference
to a package store shipping endorsement. (Pages 3-4)
Subsection 8: Statewide database. Adds a new
subsection AS 04.06.095(c), which directs the board to
produce a report of aggregate regional sales of
alcohol in local option areas, based on information
retained in database and not including identifying
data about an individual purchaser or seller. (Page 4)
Section 9: Regulations. Amends AS 04.06.100(b)
Regulations, to add endorsements, removes the board's
power to create additional licenses and permits in
regulation, and adds the power to restrict
manufacturing, packaging, sale, and distribution of
products containing alcohol intended for human
consumption. (Pages 4-5)
New Chapter 9: Licenses, Endorsements and Permits
Section 10: Adds the new Chapter 09 to Title 4
Licenses, Endorsements and Permits. Relocates and
renumbers many existing licenses and permits from
Chapter 11. Organizes into articles of licenses listed
by the 3 tiers: manufacture, wholesale, retail;
endorsements; and permits. (Pages 5-51)
Article 1. License Types.
AS 04.09.010. Types of licenses. Gives the definition
of license, three tiers, and limits license types to
those listed in this chapter. (Page 6)
Article 2. Manufacturer Licenses.
AS 04.09.020. Brewery manufacturer license. Relocates
the brewery license from 04.11.130, moves other
provisions from current brewery license to new retail
license and endorsements, sets the biennial fee at
$1,250 and requires that fermentation must occur on
the licensed premises. (Page 6)
AS 04.09.030. Winery manufacturer license. Relocates
the winery license from 04.11.140, moves other
provisions from current winery license to new retail
license and endorsements, sets the biennial fee at
$1,000 and requires that fermentation must occur on
the licensed premises. (Page 6)
AS 04.09.040. Distillery manufacturer license.
Relocates the distillery license from 04.11.160, moves
other provisions from current winery license to new
retail license and endorsements, sets the biennial fee
at $1,250 and requires that at least 80% of the final
product of distilled spirits sold be manufactured on
licensed premises in Alaska. (Page 6)
AS 04.09.050. Authorized sales. Retains existing
privileges for smaller manufacturers to self-
distribute to retail, wholesale, permitted and out of
state or country licensees. Requires large
manufacturers to go through wholesale distributors.
(Pages 6-7)
AS 04.09.060. Unlicensed manufacturing. Relocates
existing penalty for unlicensed manufacture from
04.11.010. (Page 7)
AS 04.09.080. Unauthorized manufacturer sale. Defines
unauthorized manufacturer sale as violating 04.09.050
and sets the penalty. (Pages 8-9)
AS 04.09.090. Definition. Defines "packaging" in this
section, which is the process of containing alcoholic
beverages in bottles or other containers for sale.
(Page 8)
Article 3. Wholesale Licenses
AS 04.09.100. General wholesale license. Relocates the
general wholesale license from 04.11.160, moves other
existing components to other places in the chapter,
maintains $2,000 biennial fee, maintains $10,000
maximum fee, and reduces annual transaction fees for
smaller businesses. (Pages 8-9)
AS 04.09.110. Limited wholesale brewed beverage and
wine license. Relocates limited wholesale license from
previous wholesale license section (AS 04.11.160(b))
in a separate section, maintains $400 biennial fee,
maintains maximum $10,000 fee, and reduces annual
transaction fees for smaller businesses. (Page 9)
AS 04.09.120. Annual fee and affidavit. Relocates
existing affidavit requirement from previous wholesale
licenses section (AS 04.11.160(c)-(d)), requires a
wholesale licensee to submit an affidavit to the board
stating total value of annual sales, including tax.
(Page 10)
AS 04.09.130. Wholesaler supplier declaration.
Relocates the wholesale supplier declaration from
previous wholesale licenses section (AS 04.11.160(e)),
maintains current fee structure, and simplifies the
required reporting process. (Page 10)
AS 04.09.140. Unlicensed wholesale sale. Relocates
unlicensed wholesale provision from 04.11.010 and
maintains penalty. (Pages 10-11)
AS 04.09.150. Failure to pay annual fee or file
affidavit. States that failure to pay an annual
wholesale fee or file an affidavit is a violation and
sets the penalty. (Page 11)
AS 04.09.160. Failure to pay biennial fee or file
declaration. States that failure to pay a biennial fee
and failure to file a declaration are violations and
sets the penalty. (Page 11)
Article 4. Retail Licensees
AS 04.09.200. Beverage dispensary license. Relocates
and simplifies the BDL license language from
04.11.090, maintains the $2,500 biennial fee,
references the multiple fixed counter endorsement, and
sets the penalty for unauthorized beverage dispensary
activity. Sections in current BDL for bowling alley
and hotel licensees relocated to become separate
endorsements. (Pages 11-12)
AS 04.09.210. Restaurant and eating place license.
Relocates license from 04.11.100, sets biennial fee at
$1250, defines the 1:1 food to alcohol ratio, limits
the number of annual allowed after-hours entertainment
events to six, defines when minors can be on the
premises, and sets penalty for failure to comply with
license terms. (Pages 12-14)
AS 04.09.220. Club license. Relocates license from
04.11.110, sets biennial fee at $1,500, defines what
qualifies as membership, and sets the penalty for
failure to comply with license terms. (Pages 14-15)
AS 04.09.230. Package store license. Relocates license
from 04.11.150, maintains biennial fee of $1,500, and
sets penalty for failure to comply with licenses
terms. Sections in current AS 04.11.150 for delivery,
shipping and other activities relocated to become
separate endorsements. (Pages 15-16)
AS 04.09.240. Pub license. Relocates license from
04.11.220, sets biennial fee at $1,250, and sets
penalty for failure to comply with license terms. Adds
provision allowing designation of alternating
premises, which allows a second location on a
university campus that must be operated during
mutually exclusive hours from existing license. (Pages
16-17)
AS 04.09.250. Theatre license. Relocates license from
regulation (3 AAC 304.695), sets biennial fee at
$1,250, defines theater as including live performance
events, and sets the penalty for failure to comply
with license terms. (Pages 17-18)
AS 04.09.260. Common carrier dispensary license.
Relocates license from 04.11.180, maintains current
fee schedule, removes "vehicle" as a qualifying
premises, and sets penalties for unauthorized common
carrier dispensary activity and common carrier
dispensary noncompliance. (Pages 18-19)
AS 04.09.270. Sporting activity or event license.
Relocates and renames recreational site license, sets
biennial fee at $1,250, sets penalty for unauthorized
sporting event activity, and establishes 8-year sunset
dates for licenses issued under former AS 04.11.210
that do not conform to statute. (Pages 19-20)
AS 04.09.280. Outdoor recreation lodge license.
Relocates license from 04.11.225, sets biennial fee at
$2,500, and sets penalty for unauthorized outdoor
recreation lodge activity. (Page 20)
AS 04.09.290. Golf course license. Relocates license
from 04.11.115, sets biennial fee at $1,250, and sets
penalty for failure to comply with license terms.
(Pages 20-21)
AS 04.09.300. Destination resort license. Relocates
license from 04.11.255, sets biennial fee at $2,500,
and sets penalty for failure to comply with license
terms. (Page 21)
AS 04.09.310. Brewery retail license. Creates new
license type based on relocated existing language in
AS 04.11.130 for brewery retail activities, sets
biennial fee at $1,250, requires retail license to be
adjacent to manufacturing location, extends brewery
closing time to 10pm, allows limited presentations,
classes and fund raising events on premises and sets
penalty for failure to comply with license terms.
(Pages 21-23)
AS 04.09.320. Winery retail license. Creates new
license type based on existing language in AS
04.11.140 for winery retail activities, sets biennial
fee at $1,000, requires retail license to be adjacent
to manufacturing location, defines sales volume limits
for cider and mead depending on alcohol content,
extends winery closing time to 10pm, allows limited
presentations, classes and fund raising events on
premises and sets penalty for failure to comply with
license terms. (Pages 23-24)
AS 04.09.330. Distillery retail license. Creates new
license type based on existing language in AS
04.11.170 for distillery retail activities, sets
biennial fee at $1,250, requires retail license to be
adjacent to manufacturing location, extends distillery
closing time to 10pm, allows limited presentations,
classes and fund raising events on premises, and sets
penalty for failure to comply with license terms.
(Pages 24-25)
AS 04.09.340. Beverage dispensary tourism license.
Relocates license from AS 04.11.400(d), maintains
biennial fee at $2,500, maintains exemption from
number of rooms required for renewing licenses, and
sets penalty for unauthorized beverage dispensary
activity. Other language in AS 04.11.400(d) relocated
to Hotel or Motel Endorsement. (Pages 25-27)
AS 04.09.350. Seasonal restaurant or eating place
license. Creates new license type, sets biennial
license fee at $1,250, defines which communities can
qualify for having this license type, sets out formula
for determining number of allowed licenses per
community, and sets penalty for failure to comply with
license terms. (Pages 27-29)
AS 04.09.360. Winery direct shipment license. Creates
new license type authorizing direct to consumer
(including online) sales of wine for in-state or out-
of-state winery, sets biennial license fee at $200,
directs the board to develop an application form
specifically for this license, prohibits sales by this
license type to local option areas, and sets penalty
for failure to comply with license terms. (Pages 29-
31)
AS 04.09.370. Unlicensed retail sale. Relocates
existing unlicensed retail sale from 04.11.010 and
maintains misdemeanor A penalty. (Page 31)
Article 5. Endorsements.
AS 04.09.400. Types of endorsements. Defines
endorsements, clarifies that endorsements must be
exercised with a license. (Pages 30-31)
AS 04.09.410. Manufacturer sampling endorsement.
Creates new endorsement for onsite sampling relocated
with existing language from manufacturing licenses,
defines per person per day volume limits by product
type, sets biennial fee at $200, sets penalties for
unendorsed sampling and endorsement noncompliance.
(Pages 32-33)
AS 04.09.420. Multiple fixed counter endorsement.
Creates new endorsement for multiple fixed counters
with language relocated from duplicate license section
in AS 04.11.090, sets biennial fee at $200, sets
initial application fee of $1,250 per counter, sets
penalties for endorsement noncompliance and unendorsed
service. (Pages 33-34)
AS 04.09.430. Hotel or motel endorsement. Creates new
endorsement using some language relocated from AS
04.11.090, sets biennial fee at $200, sets penalties
for unendorsed hotel or motel service and endorsement
noncompliance. (Pages 34-35)
AS 04.09.440. Large resort endorsement. Creates new
endorsement using some language relocated from AS
04.11.090, defines a large resort, sets biennial fee
at $200, sets penalties for unendorsed large resort
service and endorsement noncompliance. (Pages 35-36)
AS 04.09.450. Restaurant endorsement. Creates new
endorsement using language from the Restaurant
Designation Permit currently in regulation, defines
which license types may qualify for the endorsement,
sets biennial fee at $200, defines situations in which
minors may be present on licensed premises for
employment or dining, and sets penalties for
unendorsed restaurant service and endorsement
noncompliance. (Pages 36-38)
AS 04.09.460. Package store shipping endorsement.
Creates new endorsement by relocating language from AS
04.11.150, allows licensees to accept online orders,
sets biennial fee at $200, maintains requirement to
enter orders to customers in local option areas in
written order database, and sets penalties for
unendorsed package store shipping and endorsement
noncompliance. (Pages 38-39)
AS 04.09.470. Package store delivery endorsement.
Creates new endorsement by relocating language from AS
04.11.150, sets biennial fee at $200, sets penalties
for unendorsed package store delivery and endorsement
noncompliance. (Pages 39-40)
AS 04.09.480. Package store repackaging endorsement.
Creates new endorsement by relocating language from
regulation, sets biennial fee at $200, sets penalties
for unendorsed package store repackaging and
endorsement noncompliance. (Pages 40-41)
AS 04.09.490. Package store sampling endorsement.
Creates new endorsement, defines per person per day
volume limits by product type, sets biennial fee at
$200, sets penalties for unendorsed package store
sampling and endorsement noncompliance. (Pages 41-42)
AS 04.09.500. Bowling alley endorsement. Creates new
endorsement using language from AS 04.11.090, sets
biennial fee at $200, sets penalties for unendorsed
bowling alley service and endorsement noncompliance.
(Pages 42-43)
AS 04.09.510. Golf course endorsement. Creates new
endorsement using language from AS 04.11.115, allows a
beverage dispensary to serve alcoholic beverages on
its course, sets biennial fee at $200, and sets
penalties for unendorsed golf course service and
endorsement noncompliance. (Page 43)
AS 04.09.520. Brewery repackaging endorsement. Creates
new endorsement by relocating language from AS
04.11.135, limits availability to licensees currently
operating brewpubs as of the bill's effective date,
sets biennial fee at $200, sets penalties for
unendorsed brewery repackaging and endorsement
noncompliance. (Pages 43-44
Article 6. Permits.
AS 04.09.600. Types of permits. Defines permits,
establishes application process, requires servers to
have an alcohol server education card, and sets daily
fee for all permit types at least $50 per event day.
(Pages 44-45)
AS 04.09.610. Beverage dispensary caterer's permit.
Relocates caterer's permit from 04.11.230 and renames.
(Pages 45-46)
AS 04.09.620. Restaurant caterer's dining permit.
Relocates permit from regulations, renames to allow
service of meals other than dinner, and requires
counting sales from permit events as part of food to
alcohol ratio sales requirement. (Page 46)
AS 04.09.630. Club caterer's permit. Relocates permit
from regulations, limits permitted events to 3 per
year, and simplifies existing language for application
process. (Page 46)
AS 04.09.640. Art exhibit permit. Relocates permit
from regulations, removes option for annual $100 fee,
and simplifies existing language. (Pages 46-47)
AS 04.09.645. Music festival permit. Creates a new
permit, allows a restaurant or eating place to serve
beer or wine at a festival held off the holder's
licensed premises. Requires the festival must take
place in an unorganized borough, may not exceed four
days, festival must have taken place at the same
location for at least the last ten years. (Page 47)
AS 04.09.650. Nonprofit organization event permit.
Relocates special events permit from 04.11.240 and
renames, simplifies existing language for application
process. Expands the number of nonprofit organization
event permits per year. (Pages 47-48)
AS 04.09.660. Alcoholic beverage auction permit.
Relocates wine auction permit from regulations and
renames to allow all alcoholic beverages to be
auctioned and simplifies existing language for
application process. (Pages 48-49)
AS 04.09.670. Package Store Tasting event permit.
Creates new permit, allows a package store to host a
tasting event on the package store's licensed premises
with service from its own inventory, sets a time limit
and food requirement, and limits to six events per
license per year. (Pages 49-50)
AS 04.09.680. Inventory resale permit. Relocates
retail stock sale license from 04.11.200, maintains
$100 fee, and renames the permit. (Page 50)
AS 04.09.685. Live music or entertainment permit.
Creates new permit, allows holders of a brewery retail
license, winery retail license or distillery retail
license to hold up to four live entertainment events
per year, on premises, between the hours of 9am and
10pm on a single day. (Page 50)
AS 04.09.690. Conditional contractors permit.
Relocates permit from 04.11.250 and sets the fee at
$1,250. (Pages 50-51)
AS 04.09.700. Failure to comply with a permit
requirement. Sets the penalties for failure to comply
with permit requirements. (Page 51)
Article 7. Common Carrier Approval
AS 04.09.750. Common carrier approval. Requires the
board to approve a common carrier to transport and
deliver alcoholic beverages to consumers within the
state in response to a consumer's order, and sets
requirements and penalties for common carriers. (Pages
51-52)
Chapter 11: Licensing
Section 11: License or permit required; presumption
concerning possession for sale. Amends AS 04.11.010(a)
to state that a person may not knowingly possess for
barter, traffic in or barter an alcoholic beverage
unless under license or permit. Maintains existing
misdemeanor A penalty. Other provisions regarding
illegal sales and manufacturing are relocated to new
penalty sections in Section 10. (Pages 52-53)
Section 12: License or permit required; presumption
concerning possession for sale. Amends AS 04.11.010(b)
to add a reference to the package store shipping
license for soliciting and accepting shipments of an
alcoholic beverage in a local option area. (Page 53)
Section 13: License or permit required; presumption
concerning possession for sale. Amends AS 04.11.010(c)
to add a reference to unlicensed sale, corrects term
"half-keg," adds clarification to the type of
alcoholic beverage (formerly "malt"), and adds barter
to local option violation. (Page 53)
Section 14: Purchase from nonlicensee prohibited.
Amends AS 04.11.015 to prohibit the purchase or barter
for alcoholic beverages from a nonlicensee and sets
penalty as a violation with $250 fine. (Page 54)
Section 15: Death of licensee. Amends AS 04.11.030(b)
to increase the period of time for a transfer of
ownership of a license from a deceased licensee to 180
days (from 90 days). (Page 54)
Section 16: Board approval of transfers. Adds new
subsections to AS 04.11.040 (d) and (e) to make it a a
minor offense and provide for a penalty for the
unauthorized transfer of an alcoholic beverage license
or permit. It is a violation. (Page 54)
Section 17: Reports required of limited liability
organization. Adds new subsections to AS 04.11.045 (c)
and (d) to set the penalty for failure to report a
change in member interest or manager at a $250 fine.
(Page 54)
Section 18: Reports required of corporations. Adds new
subsections to AS 04.11.050 (c) and (d) to set the
penalty for failure to report a stock transfer or
change of officers or board members at a $250 fine.
(Page 54)
Section 19: Reports required of partnerships. Adds new
subsections to AS 04.11.055 (c) and (d) to set the
penalty for failure to report a transfer of
partnership interest or change of general partner at a
$250 fine. (Pages 54-55)
Section 20: Nonresident distiller, brewer, winery, or
wholesaler. Amends AS 04.11.060 Nonresident
distiller, brewer, winery or wholesaler to add the
reference to renumbered general wholesale license.
This section requires out-of-state distillers,
brewers, wineries, and wholesalers to obtain a general
wholesale license if their principal operations is
located outside of Alaska. (Page 55)
Section 21: Nonresident distiller, brewer, winery, or
wholesaler. Amends AS 04.11.060 to add a new
subsection (b) to maintain the existing misdemeanor A
penalty for violating the previous section. (Page 55)
Section 22: Application for new license or permit.
Amends AS 04.11.260 Application for a new license,
endorsement, or permit to include the new
endorsements, multiple fixed counter endorsement fees,
and requirements for a conditional contractor's
permit. This section requires the mailing address,
phone number and e-mail of the applicant, requires
annotated licensed premises illustrations and adds
license references with individual application
requirements. (Pages 55-57)
Section 23: Application for new license or permit.
Amends AS 04.11.260 to exempt winery direct shipment
license from the application process for other license
types, defined instead in AS 04.09.360 (Page 57)
Section 24: Application for renewal of license or
permit. Amends AS 04.11.270 to add endorsements, adds
conditional contractor's permit, and allows
applications to be sent via electronic mail. (Page 57)
Section 25: Application for renewal of license or
permit. Amends AS 04.11.270 to exempt winery direct
shipment license from the renewal process, defined
instead in AS 04.09.360. (Page 58)
Section 26: Application for transfer of a license to
another person. Amends AS 04.11.280 to add
endorsements as transferrable with a license. (Page
58)
Section 27: Adds a provision for automatic transfer of
a REPL or seasonal REPL license if the board takes no
action within 90 days. (Pages 58-59)
Section 28: Criminal justice information and records.
Amends AS 04.11.295(a) to clarify issuance and renewal
of a conditional contractor's permit as it pertains to
criminal justice information records. (Page 59)
Section 29: Criminal justice information and records.
Amends AS 04.11.295(c)(1) adds reference to
conditional contractor's permit to the definition of
"applicant." (Page 59)
Section 30: Notice of application. Adds new subsection
AS 04.11.310 (c) to exempt winery direct shipment
license from notice requirements that do not pertain
to this type of license. (Page 59)
Section 31: False statement on application. Adds a new
subsection to AS 04.11.315, relocating AS 04.16.210
and defines the crime of making false statements on an
application as perjury, with the existing felony C
penalty defined in AS 11.56.200. (Page 59)
Section 32: Denial of new licenses and permits. Amends
AS 04.11.320(a) to add references to endorsements in
the currently existing denial of new licenses and
permits statute. This section also requires disclosure
of the identity and financing of a licensee. (Pages
59-61)
Section 33: Denial of license or permit renewal.
Amends AS 04.11.330(a) to remove reference to public
convenience licenses. [Effective immediately] (Page
61)
Section 34: Denial of license or permit renewal.
Amends AS 04.11.330(a) (duplicate section) to add
endorsement, adds reference to beverage dispensary
tourism license, and adds reference to seasonal
restaurant or eating place tourism license. [Effective
with other licensing changes 1/1/2021] (Pages 61-62)
Section 35: Denial of license or permit renewal.
Amends AS 04.11.330(b) to include outstanding fees or
penalties due to a state or local government in
addition to unpaid taxes as grounds for denial of an
application or renewal of a license. (Page 62)
Section 36: Denial of license or permit renewal.
Amends AS 04.11.330(d) to allow for a theater license,
a common carrier dispensary license, and a sporting
event license to be renewed if it was exercised at
least once during each of the preceding two calendar
years. This is existing statute in relation to a
recreational site license. (Page 62)
Section 37: Denial of license or permit renewal. Adds
new subsection 04.11.330 (e) to exempt a winery direct
shipment license from certain provisions in the denial
of an application section that do not pertain to this
type of license. (Page 62)
Section 38: Denial of request for relocation. Amends
AS 04.11.340 to remove the reference to public
convenience license regarding a denial of request for
relocation. [Effective immediately] (Page 62)
Section 39: Denial of request for relocation. Amends
AS 04.11.340 (duplicate section), to add a reference
to 04.11.400(k) and removes reference to 04.11.400(d),
which exempts certain licenses from population limits.
[Effective with other licensing changes, 1/1/2021]
(Pages 63-64)
Section 40: Denial of transfer of license to another
person. Amends AS 04.11.360 to remove the public
convenience license reference regarding denial of
transfer of a license to another person. [Effective
immediately] (Pages 64-65)
Section 41: Denial of transfer of license to another
person. Amends AS 04.11.360 (duplicate section) to
remove the reference to a public convenience beverage
dispensary license under former 04.11.400(i) or to a
brewpub license regarding denial of transfer of a
license to another person. [Effective with other
licensing changes, 1/1/2021] (Pages 65-66)
Section 42: Licensed premises in multi-unit
residential housing development owned or financed by
the Alaska Housing Finance Corporation. Amends AS
04.11.365 to rename restaurant designation permit to a
restaurant endorsement as a licensed premises in
multi-unit residential housing developments owned or
financed by the Alaska Housing Finance Corporation.
(Pages 66-67)
Section 43: Suspension and revocation of licenses and
permits. Amends AS 04.11.370(a) to add endorsements to
the suspension and revocation of licenses and permits
section. (Pages 67-68)
Section 44: Conditions or Restrictions. Amends AS
04.11.395 to change the section title and adds a
reference to endorsements. (Page 68)
Section 45: Adds a new subsection AS 04.11.395(b) to
allow the board delegate authority to the director to
impose conditions or restrictions on any permit other
than a conditional contractor's permit. The director
reviews permit applications and issues all permits.
(Page 68)
Section 46: Population Limitations. Amends AS
04.11.400(a) to remove references to a public
convenience license. [Effective immediately] (Pages
68-69)
Section 47: Population limitations. Amends AS
04.11.400(a) (duplicate section), to edit subsection
references, adds new population limit of 1:12,000 for
new manufacturer retail licenses, adds licenses exempt
from population limits and exempts local option
populations from calculations. [Effective with other
licensing changes, 1/1/2021] (Pages 70-71)
Section 48: Population limitations. Repeals and
reenacts AS 04.11.400(i) to list licenses exempt from
population limits, including manufacturer (production
only) licenses, wholesale licenses and currently
exempt retail licenses that primarily cater to
tourists and travelers. (Pages 71-72)
Section 49: Population limitations. Amends AS
04.11.400(k) to edit reference to beverage dispensary
license, allows relocation of a package store, lowers
borough threshold population for qualifying boroughs,
restricts number of licenses eligible for transfer to
those exceeding population limits and defines number
of allowed transfers by city, not borough. (Page 72)
Section 50: Petition for additional restaurant or
eating place licenses for certain local governing
bodies. Adds new section AS 04.11.405 that gives first
class cities, home rule cities, or unified
municipalities the ability to petition the board for
additional restaurant or eating place licenses
allocated to their jurisdiction. [Effective
immediately] (Pages 72-74)
Section 51: Petition for additional restaurant or
eating place licenses for certain local governing
bodies. Amends AS 04.11.405(a) (duplicate section)
that gives first class cities, home rule cities, or
unified municipalities the ability to petition the
board to grant additional restaurant or eating place
licenses allocated to their jurisdiction under the new
Article 9. [Effective with other licensing changes,
1/1/2021] (Page 74)
Section 52: Petition for additional restaurant or
eating place licenses for certain local governing
bodies. Amends AS 04.11.405(b) (duplicate section) to
allow the board to issue additional restaurant or
eating place licenses under the new Article 9.
[Effective with other licensing changes, 1/1/2021]
(Pages 74-75)
Section 53: Zoning limitations. Amends AS 04.11.420(a)
to disallow a new or location transfer of a license,
endorsement or permit in a municipality if a zoning
regulation or ordinance prohibits it. (Page 75)
Section 54: Zoning limitations. Adds new subsection AS
04.11.420(c) to allow a license to be renewed if it
was initially issued prior to the effective date of a
local zoning regulation or ordinance that would
prohibit it, if it was issued in compliance with local
zoning regulations and ordinances at the time. (Page
73)
Section 55: Person and location. Amends AS 04.11.430
to allow licenses to be issued to government entities
and tribal organizations. Place residency requirements
on corporations and limited liability organizations.
Adds a reference to endorsements in relation to
information required, including telephone number, and
email address. [Effective immediately] (Page 75)
Section 56: Prohibited financial interest. Amends AS
04.11.450(b) to clarify that a wholesaler cannot own a
manufacturer license or a retail license, removes
restrictions on manufacturers owning a retail license,
and removes references to repealed licenses. (Pages
75-76)
Section 57: Prohibited financial interest. Amends AS
04.11.450(e) to clarify that a holder of a general
wholesale or limited wholesale brewed beverage and
wine license cannot be employed by or act as the agent
or employee of a manufacturer or retail license. (Page
76)
Section 58: Prohibited financial interest. Adds new
subsections to AS 04.11.450 (g-h) to restrict
manufacturers above a certain annual production level
from owning a wholesale license or retail license and
defines thresholds for production by product type.
(Pages 76-77)
Section 59: Prior public approval. Amends AS 04.11.460
to exempt a winery direct shipment license boundary
restrictions that do not pertain to this type of
license. (Page 77)
Section 60: Objection. Amends AS 04.11.470 to add
endorsements to allowable objections and protest.
(Page 77)
Section 61: Protest. Amends AS 04.11.480(a) to include
endorsements regarding a person objecting to an
application for issuance, renewal, transfer of
location or transfer to another person. (Pages 77-78)
Section 62: Protest. Amends 04.11.480(b) to include
endorsements in the existing boundary limits for
requesting a public hearing to protest the issuance,
renewal, or transfer of a license. (Page 78)
Section 63: Protest. Amends 04.11.480(c) to include
endorsements in the existing section that allows a
local governing body to establish conditions on a
license's issuance, renewal, or transfer. (Page 78)
Section 64: Protest. Adds new subsection 04.11.480(e)
to clarify more than one local governing body to
protest the issuance, renewal, relocation or transfer
of a license if the location or proposed location is
within the boundaries of more than one local
government. (Page 79)
Section 65: Local option. Amends AS 04.11.491(a) to
insert renumbered references for license types that
can be exempted from restrictions on sale in local
option elections in a municipality. (Page 79)
Section 66: Local option. Amends AS 04.11.491(b) to
insert renumbered references for license types that
can be exempted from restrictions on sale in local
option elections in an established village. (Pages 79-
80)
Section 67: Local option. Amends AS 04.11.491(d) to
insert references to license types. (Page 80)
Section 68: Local option. Amends AS 04.11.491(g) to
insert references to license types. (Pages 80-81)
Section 69: Procedure for action on license
applications, suspensions, and revocations. Amends AS
04.11.510(b) to clarify the timeframes for immediate
written notice of a denied application, and inform the
applicant that they are entitled to submit a request
to the director within 15 days for an informal
conference. The applicant is then entitled to a formal
hearing conducted by the Office of Administrative
Hearings if they are dissatisfied. This section
establishes timelines for these procedures. (Pages 81-
82)
Section 70: Procedure for action on license
applications, suspensions, and revocations. Amends AS
04.11.510(c) to correct the statutory reference to the
Administrative Procedure Act, allows a licensee to
submit a request for an informal conference to the
director within 15 days after an accusation that may
lead to a suspension or revocation of a license. This
section establishes a timeline for this procedure.
(Pages 82-83)
Section 71: Notice to local governing body. Amends AS
04.11.520 to require the board to notify the local
governing body of an established village, incorporated
city, an organized borough, or a unified municipality
within 10 business days after receipt of an
application for the issuance or renewal of a license,
endorsement, license with endorsements, or the
transfer of a license to another person or location.
(Page 84)
Section 72: Suspension and revocation based on acts of
employees. Amends AS 04.11.535(a) to add endorsements,
reference to permittee as applicable and clarifying
language. (Pages 83-84)
Sections 73: License, endorsement, and conditional
contractor's permit renewal and expiration. Amends AS
04.11.540 to add endorsements and conditional
contractors permit to the existing statute regarding
renewal and expiration of an application. (Page 84)
Section 74: Appeals. Amends AS 04.11.560(b) to add
endorsements to the appeals procedure in the event of
a board decision relating to the issuance, renewal,
transfer, relocation, suspension, or revocation of a
license or endorsement. (Page 84)
Section 75: Refund and forfeiture of fees. Amends AS
04.11.570 to add endorsements to existing statute
regarding the refund and forfeiture of fees in the
event of a denied application. (Pages 84-85)
Section 76: Surrender or destruction of license.
Amends 04.11.580(b) to clean up time limit language to
"not later than 10 days" from "within 10 days." (Page
85)
Section 77: Disposition of money. Amends AS
04.11.590(a) to include money collected from
endorsements and permits to be transferred by the
board to the Department of Commerce, Community and
Economic Development and deposited to the general
fund. (Page 85)
Section 78: Refund to municipalities. Amends AS
04.11.610 to change "refund" to "allocation"
throughout and specifies content of already-required
reporting by municipalities for how license fee funds
were used for alcohol-related education and
enforcement. (Page 85)
Section 79: Accessibility of license and licensed
premises to inspection. Amends AS 04.11.630(b) to
require easily available posting of a license,
endorsements, permits, designated premises during a
permitted event. (Pages 85-86)
Section 80: Duration of licenses and permits. Amends
AS 04.11.680 to add endorsements, conditional
contractors permit, states that permits must be issued
for a specified time and removes fee reduction for
seasonal licenses. (Page 86)
Chapter 16: Regulation of Sales and Distribution;
Prohibited Acts
Section 81: Hours of sale and presence on licensed
premises (standard closing hours). Amends AS
04.16.010(c) to clarify the hours that a person cannot
be on the licensed premises outside of allowed
operating hours (8:00 a.m. to 5:00 a.m.) unless to
conduct business with the licensee, maintenance or
improvements or is the holder of a common carrier
license, and adds restaurant endorsement reference.
References new subsection (e) to AS 01.16.010. (Pages
86-87)
Section 82: Hours of sale and presence on licensed
premises. (Standard closing hours) Adds new
subsections (e) and (f) to clarify the hours that a
person cannot be on the licensed premises outside of
allowed operating hours (10:00 p.m. to 9:00 a.m.) of a
brewery, winery or distillery retail establishment
unless to conduct business with the licensee,
maintenance or improvements. Amends AS 04.16.010 to
add new a penalty section (f), making it a violation.
(Page 87)
Section 83: Pricing and marketing of alcoholic
beverages. Amends AS 04.16.015(a) to exempt
manufacturer and package store sampling endorsements
from the prohibition on providing alcohol free of
charge, and defines a week as seven days for pricing
and marketing of alcoholic beverages. (Pages 87-88)
Section 84: Pricing and marketing of alcoholic
beverages. Amends AS 04.16.015 by adding a new
subsection (e) to set the penalty for violating this
section as a violation. (Page 88)
Section 85: Trade practices. Adds a new section AS
04.16.017 to specify illegal practices by
manufacturers as defined in federal law, and directs
the board to adopt regulations defining exceptions to
these rules and define administrative penalties for
violations. (Pages 88-90)
Section 86: Solicitation of alcoholic beverages;
purchase on behalf of another. Amends AS 04.16.020 to
set the penalty ($100 fine) for unauthorized
solicitation or purchase of alcoholic beverages. (Page
90)
Section 87: Online sale and purchase of alcoholic
beverages. Adds a new section AS 04.16.022 prohibiting
online purchase and sale to Alaska consumers unless
the licensee has a winery direct shipment license or
package store shipping endorsement and sets penalties.
(Page 90)
Section 88: Illegal presence on premises involving
alcoholic beverages. Amends AS 04.16.025(a) to add
statutory references to all penalties involving sale
without a license. (Pages 90-91)
Section 89: Prohibited conduct relating to drunken
persons. Amends AS 04.16.030 to change existing
penalty for prohibited conduct relating to a drunken
person, adds administrative penalty to licensee if
employee is convicted of a violation of this section,
and adds misdemeanor penalty for licensee who
knowingly allows employees to violate this section.
(Page 91)
Section 90: Possession of ingredients for homebrew in
certain areas. Amends AS 04.16.035 to change statutory
reference to all local option areas, consistent with
AS 04.21.025 restricting private manufacture of
alcohol in all local option areas. (Page 91)
Section 91: Possession of ingredients for homebrew in
certain areas. Adds new subsections to AS 04.16.035
(b-c) to clarify current penalty for possession of
ingredients for homebrew. (Page 91)
Section 92: Access of drunken persons to licensed
premises. Adds new subsections to AS 04.16.040 to
relocate and change the penalty for prohibited access
by a drunken person. (Pages 91-92)
Section 93: Obligation to enforce restrictions in
licensed premises. Adds new subsections to AS
04.16.045 (b-c) to relocate and change penalty for
permitting consumption not authorized under a license.
(Page 92)
Section 94: Access of persons with restriction on
purchasing alcohol. Amends AS 04.16.047 to reference
the existing penalty for entering and remaining on
licensed premises defined in AS 04.16.160. (Page 92)
Section 95: Access to persons under the age of 21 to
licensed premises. Amends AS 04.16.049(a) to add a
reference to restaurant endorsement and club license.
(Pages 92-93)
Section 96: Access to persons under the age of 21 to
licensed premises. Amends AS 04.16.049(c) to add
additional license types allowed to have underage
persons on premises as employees, ages 16 and 17,
provided they are not serving alcohol. (Page 93)
Section 97: Access to persons under the age of 21 to
licensed premises. Amends AS 04.16.049(d) to add
additional license types allowed to have underage
persons on premises as employees, ages 18-20, provided
they are not serving alcohol. (Page 93)
Section 98: Access to persons under the age of 21 to
licensed premises. Adds a new subsection to AS
04.16.049 (j) to additional license types allowed to
have underage persons on premises if traveling,
provided they are not served or consume alcohol.
(Pages 93-94)
Section 99: Furnishing or delivery of alcoholic
beverages to persons under the age of 21. Repeals and
reenacts AS 04.16.051(d) to define existing offense of
furnishing or delivering alcohol to a minor. (Page 94)
Section 100: Furnishing or delivery of alcoholic
beverages to persons under the age of 21. Adds a new
subsection to AS 04.16.051 (e) to relocate the
existing C felony penalty for furnishing or delivering
to a minor by a person, for situations involving
serious harm, repeat offenses, and if the violation
occurs in a local option area. (Page 94)
Section 101: Furnishing of alcoholic beverages to
person under the age of 21 by licensees. Amends AS
04.16.052 to change the penalties for furnishing or
delivering alcohol to a minor by a licensee or
employee, adds administrative penalty to licensee if
an employee is convicted of a violation of this
section and shifts misdemeanor penalty in AS 04.16.150
to the licensee who knowingly allows employees to
violate this section. (Pages 94-95)
Section 102: Room rental for purposes of consuming
alcoholic beverages. Amends AS 04.16.055 to maintain
the current penalty of class A misdemeanor for renting
a room for the purpose of providing alcoholic
beverages to a person under 21 years of age. (Page 95)
Section 103: Permitting minor to illegally possess
liquor in a dwelling. Amends AS 04.16.057(b) to
maintain current penalty as a violation and adds $500
fine. (Page 95)
Section 104: Purchase by or delivery to persons under
the age of 21. Amends AS 04.16.060(e) to reference
existing requirement that a person under the age of 21
years of age may not misrepresent their age or having
parental consent in order to enter and remain in a
licensed premises under AS 04.16.049(a)(2). (Page 95)
Section 105: Purchase by or delivery to persons under
the age of 21. Amends AS 04.16.060 to add penalties
for violating this section. For adults (at least 21
years of age) penalty cannot be reduced. For minors
(under 21 years of age) penalty can be reduced if
youth completes an alcohol safety action program or a
community diversion panel. Applies the same penalty
changes as previously enacted in 2016 for AS 04.16.049
and 04.16.050 for minors. (Pages 95-96)
Section 106: Consumption at school events. Amends AS
04.16.080 to edit the title for the section and
prohibits alcohol sales at a school event if it is
expected to attract attendees under 21 years of age.
(Page 96)
Section 107: Consumption at school events. Amends AS
04.16.080 by adding two new subsections (b) and (c) to
define the penalty for violating this section. (Page
96)
Section 108: Prohibition of bottle clubs. Amends AS
04.16.090(c) clarifies the definition of
"consideration" in relation to bottle clubs. (Pages
96-97)
Section 109: Prohibition of bottle clubs. Adds new
subsections to AS 04.16.090 (d-e) to define the crime
of maintaining a bottle club, relocates and maintains
current penalty. (Page 97)
Section 110: Sale of certain alcoholic beverages
prohibited. Amends AS 04.16.110 to define sale of a
prohibited alcoholic beverage, relocates and maintains
current penalty. (Page 97)
Section 111: Removal or introduction of alcoholic
beverages. Amends AS 04.16.120 to define removal or
introduction of alcoholic beverages, sets penalty and
exemptions. (Pages 97-98)
Sections 112-114: Alcoholic beverages transported by
common carrier. Repeals and reenacts AS 04.16.125(a)
to allow for delivery to a person over the age of 21
and adds clarifying language to how the delivery must
be labeled. Maintains penalty for unauthorized
transportation of alcoholic beverages by common
carrier into a local option area and makes
noncompliance a violation. (Page 98)
Section 115: Stock confined to licensed premises. Adds
a new subsection to AS 04.16.130 (c) to set the
penalty for unauthorized storage of alcoholic
beverages as a violation. (Pages 98-99)
Section 116: Sale or consumption of alcoholic
beverages in a warehouse. Amends AS 04.16.140 to add
sections (b-c) to set the penalty for consuming
alcoholic beverages in a warehouse as a violation.
(Page 99)
Section 117: Licensee responsible for violations.
Amends AS 04.16.150 to set the penalty for failure to
ensure compliance as a violation. (Page 99)
Section 118: Restriction on purchasing alcoholic
beverages. Amends AS 04.16.160 to add new sections
(cd) to maintain existing penalty for noncompliance on
a restriction for purchasing alcohol. (Page 99
Section 119: Source of alcoholic beverages. Amends AS
04.16.170 to exempt winery direct shipment license,
maintains penalties for sale of alcoholic beverages
from or to an unlicensed person. (Page 99)
Section 120: Source of alcoholic beverages. Amends AS
04.16.170 to add new subsections (c-d) to maintain the
existing penalty for violating this section as class A
misdemeanor. (Page 99)
Section 121: Restrictions on purchase and sale of
alcoholic beverages. Amends AS 04.16.172 to renumber
and statutory references to the new license types and
maintains current misdemeanor A penalty for licensee
obtaining alcoholic beverages from an unlicensed
seller. (Pages 99-100)
Section 122: Restrictions on purchase and sale of
alcoholic beverages. Amends AS 04.16.172 to add new
subsections (b-c) to maintain the existing misdemeanor
A penalty for violating this section. (Page 100)
Section 123: Furnishing alcoholic beverages in aid of
gambling enterprise. Amends AS 04.16.175 to add new
subsections that maintain the existing misdemeanor A
penalty for the crime of furnishing an alcoholic
beverage in aid of a gambling enterprise. (Page 100)
Section 124: Penalties for violation. Amends AS
04.16.180(b) to add statutory references to prohibited
conduct related to drunken persons and furnishing
alcoholic beverages to persons under the age of 21 by
licensees. (Page 100)
Section 125: Penalties for violation. Amends AS
04.16.180(b) to add definition for "conviction." (Page
100)
Section 126: Penalties for violation. Amends AS
04.16.180 to add new subsections (f-g), adds
clarification that licensees are subject to
administrative penalties imposed by the board for
violations of AS 04.16.030 and AS 04.16.052, and adds
mitigating circumstances for licensees. (Pages 100-
102)
Section 127-130: Forfeiture and seizures. Amends AS
04.16.220 to renumber and cross-reference the new
license types. (Pages 102-104)
Chapter 21: General Provisions
Section 131: Keg registration. Adds a new section
04.21.012 establishing a keg registration process
including proof of age, registration form
requirements, identification tags, and establishes the
penalties for possession and sale of alcoholic
beverages in an unregistered keg. (Pages 104-106)
Section 132-133: Civil liability of persons providing
alcoholic beverages. Amends AS 04.21.020 to renumber
and cross-reference license types. (Page 105)
Section 134: Alcohol server education course. Repeals
and reenacts AS 04.21.025(a), which requires a license
holder and their employees to check ID's, including a
conditional contractor permit. (Pages 105-106
Section 135: Alcohol server education course. Amends
section AS 04.21.025(b) to require permittees (along
with licensees, agents, and employees) to keep the
alcohol server education card on the licensed premise
during working hours. (Page 106)
Section 136: Alcohol server education course. Amends
section AS 04.21.025(c) to require permittees (along
with licensees, agents, and employees) to take and
pass an alcohol server education course within 30 days
after being licensed, permitted, or employed.
Additionally, a person may not sell or serve alcoholic
beverages, or check the ID of a patron at a permitted
event unless that person possesses a valid alcohol
server card. (Page 106)
Section 137: Alcohol server education course. Amends
AS 04.21.025 to add new subsections (f-h), which
exempts manufacturer license holders from the server
alcohol education course requirement unless they also
hold a sampling endorsement, defines failure to comply
and sets the penalty as a violation. (Pages 106- 107)
Section 138: Proof of age and of not being restricted
from purchasing alcoholic beverages. Amends AS
04.21.050 to renumber references to license types.
(Pages 107-108)
Section 139: Warehousing of alcoholic beverages.
Amends AS 04.21.060 to add a new subsection (b), which
define the penalty of storing alcoholic beverages and
sets it at a violation. (Page 108)
Section 140: Posting of warning signs. Repeals and
reenacts AS 04.21.065(a) to update the license and
permit types required to post warning signs and adds
statutory references. (Pages 108-109)
Section 141: Fines and other criminal penalties. Adds
new sections AS 04.21.072, 04.21.074, and 04.21.076 to
set penalties for other violations, misdemeanors or
felonies, unless otherwise specified. Directs the
supreme court to establish a bail schedule and places
requirements on the courts for suspending fines or
imposition/execution of sentence. (Page 109)
Section 142: Court records for persons under 21 years
of age. Amends AS 04.21.078 to add statutory reference
to violations of AS 04.16.060, Purchase by or delivery
to persons under the age of 21, requiring that charges
under this section for an underage person is not
published on Court View, consistent with changes
passed in 2016 related to minors charged under AS
04.16.049 and AS 04.16.050. (Pages 109-110)
Section 143: Definitions. Amends AS 04.21.080(b)(6) to
add permit holders and license holders. (Page 110)
Section 144: Definitions. Amends AS 04.21.080(b)(15)
to add endorsement to a licensed premises. (Page 110)
Section 145: Definitions. Amends AS 04.21.080(b) with
definitions: bona fide restaurant, brewed beverage,
calendar year, cider, distilled spirit, golf course,
kombucha, mead, sake, and wine. (Pages 110-111)
Changes to Other Titles
Section 146: Definitions. Amends AS 05.15.690(48) to
renumber statutory reference for a vendor to include
an establishment that holds a beverage dispensary
license. (Page 111)
Section 147-155: Amendments to various other titles.
Amends references to Title 4 and license types in new
Chapter 04.09 in Titles 9, 11, 12 and 18. (Pages 112-
117)
Section 156: Winery direct shipment tax; statement;
audit. Adds a new section AS 43.60.060 to establish
tax collection on direct wine shipments from out of
state business holding this license and outlines
requirements for the Department of Revenue. (Page 117)
Section 157: Exemptions. Amends statutory reference to
Title 4 for new Chapter 04.09. (Page 117) Section 158:
Definitions. Amends statutory reference in the
definition of "business proprietor." (Page 118)
Transition and Effective Dates
Section 159: Adds a new section to the uncodified law
of the State of Alaska, adding a Direct Court Rule
Amendment, amending Rule 17(h) Alaska Rules of Minor
Offense Procedure, to add AS 04.16.060(g) to joinder
limits, similar to changes passed in 2016 for AS
04.16.049 and AS 04.16.050. (Page 118)
Section 160-161: Repeals various sections of AS 04.11
amended by the sections of this bill. (Page 118)
Section 162: Repeals the AS 04.09.270(f) to sunset
licenses issued as recreational site licenses before
the effective date of the legislation. The repeal is
effective 1/1/2029. (Page 118)
Section 163: Repeals the transition sections (165 &
166) of this legislation on 1/1/2021. (Page 118)
Section 164: Applicability section for offenses
committed on or after the effective date of certain
sections. (Pages 118-119)
Section 165: Adds a new section to uncodified law
regarding transition. The ABC board may begin to
immediately implement certain sections that are
effective 1/1/2021 through applications under the new
licensing structure and collecting fees at the newly
established amounts. [Effective 9/1/2020] (Page 119)
Section 166: Adds a new section to uncodified law to
provide transition language for the ABC board to
convert certain licenses under this Act within 90 days
of the effective date of this section. (Pages 119-122)
Section 167: Adds a new section to uncodified law to
provide transition language for the ABC board to issue
a seasonal restaurant or eating place tourism license
before new section AS 04.09.350, seasonal restaurant
or eating place tourism license, takes effect. (Pages
122-123)
Section 168: Adds transition language for the
department to promulgate regulations. (Page 123)
Section 169: Effective dates for sections to be
implemented immediately. (Page 123)
Section 170: Effective dates for board to initiate
application process and collect new fees for licenses
beginning 1/1/2021. (Page 123)
Section 171: Except as provided elsewhere, effective
date of this Act is 1/1/2021. (Page 123)
[End of sectional analysis SB 52 was held over.]
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