SB 9 — 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.

(h) A person commits the offense of failure to comply with the terms of a Enrolled SB 9 -18- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B theater license if the person sells, serves, or permits the consumption of alcoholic beverages except as permitted in this section or fails to post the license as required by this section.

(a) A common carrier dispensary license authorizes the holder to sell alcoholic beverages for consumption aboard a boat or train licensed by a state or federal agency for passenger travel, or aboard an aircraft operated by an airline licensed by a state or federal agency for passenger travel.

After obtaining an initial license for the first boat or train, the common carrier may obtain additional licenses for additional boats or trains upon making a written request identifying the boat or train in the manner prescribed by the board,board and paying the biennial fee for additional licensed premises as required by (b) of this section.

(g) The holder of a common carrier dispensary license who fails to comply with (b) - (d) of this section commits the offense of common carrier dispensary SB0009A -19- Enrolled SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B noncompliance.

(a) An outdoor recreation lodge license authorizes the holder to sell alcoholic beverages to a registered overnight guest or off-duty staff of the lodge for consumption on the licensed premises or in conjunction with purchased outdoor recreation activities pedprovided by the licensee.

Enrolled SB 9 -20- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B (b) The biennial outdoor recreation lodge license fee is $2,500.

(a) A fair license authorizes the holder to sell beer and wine at multiple noncontiguous locations at an annual fair held on fairgrounds for consumption on the licensed premises.

(d) InThe thisholder section,of "annuala fair"fair meanslicense anmay annualnot gatheringsell ofbrewed residentsbeverages of all or awine portionat ofmore thethan state30 thatevents, offersother competitivethan exhibitionsan ofannual livestockfair, andheld agriculturalon crops,the carnivalfairgrounds amusementin ridesa andcalendar games,year. and displays of arts and crafts.

(e) In this section, "annual fair" means an annual gathering of residents of all or a portion of the state that offers competitive exhibitions of livestock and agricultural crops, carnival amusement rides and games, and displays of arts and crafts.

(d) The board may not approve an application for transfer of a golf course -21- Enrolled SB 9 license to another location.

(e) The holder of a golf course license shall make food similar to that listed in SB0009A -21- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B the sample menu available during times when brewed beverages and wine are sold, served, and consumed on the licensed premises.

Enrolled SB 9 -22- (f) Failure to comply with the terms of a destination resort license is a violation.

SB 9 -22- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B Sec.

or (4) serve brewed beverages after 10:009:00 p.m.

(g) The holder of a brewery retail license may allow on the premises where the consumption occurs (1) activities, presentations, television or video displays, or other displays that directly promote or educate customers about the brewery's products, -23- Enrolled SB 9 processes, or establishment;

and (2) other community organizations or businesses to provide SB0009A -23- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B presentations, classes, or product displays or host fundraisers.

Enrolled SB 9 -24- (3) open the room where the consumption occurs before 9:00 a.m.;

or (4) serve wine after 10:009:00 p.m.

SB 9 -24- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B (f) Each day, the holder of a winery retail license is authorized to sell, to a person on the licensed premises for consumption off the licensed premises, not more than 5.167 gallons of the holder's wine, mead, or cider.

(e) Except as provided under (g) of this section and AS 04.09.685, the holder -25- Enrolled SB 9 of a distillery retail license may not (1) allow live music or performances, disc jockeys, karaoke, SB0009A -25- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B televisions, pool tables, dart games, or organized games or tournaments on the premises where the consumption occurs;

or (4) serve distilled spirits after 10:009:00 p.m.

(c) The board may (1) issue a new beverage dispensary tourism license if it appears that the issuance will encourage the tourist trade by promoting the construction or improvement of Enrolled SB 9 -26- (A) a hotel, motel, resort, or similar business relating to the tourist trade with a dining facility or having kitchen facilities in a majority of SB 9 -26- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B its rental rooms and at least a minimum number of rental rooms required according to the population of the incorporated city, unified municipality, or population area established under AS 04.11.400(a) in which the facility will be located, as follows:

(d) The holder of a beverage dispensary tourism license may not maintain on the licensed premises more than one room in which there is regularly maintained a fixed counter or service bar that has plumbing connections to permanent plumbing at -27- Enrolled SB 9 which alcoholic beverages are sold or served to members of the public for consumption unless the license has a multiple fixed counter endorsement under SB0009A -27- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B AS 04.09.420, a hotel or motel endorsement under AS 04.09.430, or a large resort endorsement under AS 04.09.440.

and (C) it is unlikely that persons under 21 years of age not employed on the premises will enter and remain on the licensed premises for Enrolled SB 9 -28- purposes other than dining;

and (2) the sale and service of food and alcoholic beverages and any other SB 9 -28- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B business conducted on the licensed premises of the restaurant or eating place is under the sole control of the licensee.

At the time the holder submits an application for renewal of the license, the holder shall submit a -29- Enrolled SB 9 statement to the board certifying that the holder has met the requirement under this subsection for the designated period of the license under AS 04.11.680.

The board SB0009A -29- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B may renew a seasonal restaurant or eating place tourism license only if the licensee provides evidence satisfactory to the board that, during the designated period of the license under AS 04.11.680, the gross receipts from the sale of food for consumption on the licensed premises were not less than the total of the gross receipts from the sale of alcoholic beverages for consumption on the licensed premises.

WineryManufacturer direct shipment license.

(a) A winerymanufacturer direct shipment license authorizes the holder of a brewery retail license issued under AS 04.09.320, winery retail license issued under AS 04.09.330, or distillery retail license issued under AS 04.09.340, or the holder of a winerymanufacturer license issued in another state, to sell the holder's wineproduct in response to an orderrder for shipment to a Enrolled SB 9 -30- person, for personal use only and not for resale, who is located in the state.

A winerymanufacturer direct shipment license may not be transferred to another person or another location.

(b) The biennial fee for a winerymanufacturer direct shipment license is $200.

SB 9 -30- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B (c) An applicant for issuance or renewal of a winerymanufacturer direct shipment license shall (1) submit an application on a form prescribed by the board;

and (3) if the applicant is the holder of a license or permit authorizing the holder to manufacture and sell wineits product to the public issued in another state, provide to the board a copy of the holder's license or permit issued (A) in the state;

(d) All wineproduct shipped to a purchaser in the state by the holder of a winerymanufacturer direct shipment license is subject to the state excise tax.

(e) The holder of a winerymanufacturer direct shipment license may not (1) ship wineproduct to an address with a zip code located in an areathatarea that has adopted a local option under AS 04.11.491;

(2) sell more than the(A) equivalent1.5 ofliters six nine-liter cases of winedistilled spirits to a purchaser in one transaction,transaction or more than the4.5 equivalentliters of 12distilled nine-literspirits cases of wine to a purchaser in a calendar year;

and(B) (3)18 shipliters of wine usingto a commonpurchaser carrierin whoone istransaction notor approvedmore bythan the108 boardliters toof shipwine alcoholic beverages to personsa purchaser in thea statecalendar underyear; AS 04.09.750(b).

(f)or Before(C) shipping288 anounces orderof underbrewed thisbeverages section,to the holder of a winerypurchaser directin shipmentone licensetransaction shall (1) verify that the person submitting the order is at least 21 years of age, using an age verification service or othermore method,than and13.5 thatgallons the named recipient of thebrewed shipment,beverages ifto nota thepurchaser samein persona ascalendar theyear; person submitting the order, is at least 21 years of age;

(3) ship its product using a common carrier who is not approved by the board to ship alcoholic beverages to persons in the state under AS 04.09.750(b);

or -31- Enrolled SB 9 (4) annually produce more than 300,000 barrels in total of brewed beverages or more than 50,000 proof gallons in total of distilled spirits.

(f) Before shipping an order under this section, the holder of a manufacturer direct shipment license shall (1) verify that the person submitting the order is at least 21 years of age, using an age verification service or other method, and that the named recipient of the shipment, if not the same person as the person submitting the order, is at least 21 years of age;

(3) provide written or electronic information to the person submitting the order on fetal alcohol syndrome and fetal alcohol effects resulting from a woman's SB0009A -31- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B consumption of alcohol during pregnancy;

(g) The holder of a winerymanufacturer direct shipment license shall (1) retain records of sales made under this license for at least two years;

(h) The board shall compile a list that is available for public inspection of zip codes that are located within a local option area and notify the holder of a winerymanufacturer direct shipment license of any change to the list.

(i) The holder of a winerymanufacturer direct shipment license commits the offense of failure to comply with the terms of a winerymanufacturer direct shipment license if the person fails to comply with (e) - (g) of this section.

(j) Failure to comply with the terms of a winerymanufacturer direct shipment license is a violation.

Enrolled SB 9 -32- (b) Only the board may issue an endorsement.

and (2) demonstrate that the holder of the license has authority over and SB 9 -32- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B will exercise control over conduct of the business in all areas of the licensed premises, including premises newly licensed by the endorsement.

(2) for the holder of a winery manufacturer license, (A) six ounces of wine, mead, or cider containing 8.5 percent -33- Enrolled SB 9 or more alcohol by volume;

SB0009A -33- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B (g) The holder of a manufacturer sampling endorsement who fails to comply with the requirements of (c) or (d) of this section commits the offense of failure to comply with the terms of a manufacturer sampling endorsement.

Multiple fixed counters must be located in the same building Enrolled SB 9 -34- under the same contiguous licensed premises as set out in regulation, except as provided for the holder of a hotel or motel endorsement under AS 04.09.430 or a large resort endorsement under AS 04.09.440.

SB 9 -34- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B (i) Multiple fixed counter endorsement noncompliance is a violation.

-35- Enrolled SB 9 (d) The holder of a hotel or motel endorsement may stock alcoholic beverages in guest rooms, for sale and consumption only in the guest room.

SB0009A -35- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B (f) The holder of a beverage dispensary license or a beverage dispensary tourism license who engages in activity under this section without an endorsement under this section commits the offense of unendorsed hotel or motel service.

The locationstions do not need to be Enrolled SB 9 -36- located in the same building or on the same parcel, but must be within the boundary of the large resort, as that term is defined in (h) of this section.

(g) A holder of a beverage dispensary license with a large resort endorsement may stock alcoholic beverages in guest rooms, for sale and consumption only in the SB 9 -36- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B guest room.

(h) In this section, "large resort" means a resort that offers both outdoor recreational activities and overnight lodging to the public and is located on a site consisting of at least 10 contiguous acres containing one or more parcels of real property owned by the licensee,licensee or leased by the licensee, or a combination of parcels owned by the licensee and leased by the licensee.

(j) The holder of a large resort endorsement who fails to comply with the -37- Enrolled SB 9 requirements of (c) - (g) of this section commits the offense of large resort endorsement noncompliance.

and (2) to enter or remain on the licensed premises to consume food or SB0009A -37- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B nonalcoholic beverages as authorized under AS 04.16.010(c)(5).

(2) to allow a person who is under 16 years of age to enter and remain on the licensed premises for dining only if Enrolled SB 9 -38- (A) the person is accompanied by a person who is 21 years of age or older;

(g) The holder of a restaurant endorsement who engages in activity not SB 9 -38- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B authorized by the board under (e) of this section or fails to comply with the requirements of (e) of this section commits the offense of restaurant endorsement noncompliance.

(d) An endorsement holder shall provide written or electronic information on -39- Enrolled SB 9 fetal alcohol syndrome and fetal alcohol effects resulting from a woman's consumption of alcohol during pregnancy to the purchaser in response to an order.

Before shipping alcohol to a purchaser in a restricted area, an endorsement holder shall consult the database maintained by the board under AS 04.06.095 for any aloholicalcoholic beverage shipments made to the purchaser during that calendar month by a package store.

An SB0009A -39- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B endorsement holder may not ship an amount of alcoholic beverages to a purchaser in a restricted area that, when added to the amount already shipped, exceeds the amount authorized by this subsection.

(a) A package store Enrolled SB 9 -40- delivery endorsement authorizes the holder of a package store license to deliver alcoholic beverages to the location of a social event as set out in this section.

The responsible adult shall provide identification and accepleacceptable proof of age under SB 9 -40- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B AS 04.21.050 and acknowledge in writing receipt of the alcoholic beverages.

(c) A package store licensee with a package store repackaging endorsement may (1) subdivide alcoholic beverages -41- Enrolled SB 9 (A) for sale on the licensed premises by opening the original package for the purpose of subdividing the contents into smaller packages;

(e) The holder of a package store repackaging endorsement who fails to SB0009A -41- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B comply with the requirements of this section commits the offense of package store repackaging endorsement noncompliance.

(d) The holder of a package store sampling endorsement may serve a total volume of samples to a person on a licensed premises each day that does not exceed (1) 12 ounces of beer or mead,mead or cider, if the mead or cider contains less than 8.5 percent alcohol by volume;

(2) six ounces of wine, sake, or mead or cider, if the mead ococrider rider contains 8.5 percent or more alcohol by volume;

Enrolled SB 9 -42- (3) 1.5 ounces of distilled spirits;

(e) The holder of a package store sampling endorsement may not publicly advertise, including through newsprint,printed news, radio, or television, sampling activities conducted under the endorsement.

SB 9 -42- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B (h) The holder of a package store sampling endorsement who fails to comply with the requirements of (a) and (c) - (e) of this section commits the offense of failure to comply with the terms of a package store sampling endorsement.

-43- Enrolled SB 9 (e) The periods during which persons under 21 years of age may be permitted access to the licensed premises must be clearly posted on the licensed premises.

(h) Unendorsed bowling alley service is a violation and is punishable by a fine SB0009A -43- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B of $500.

(f) Unendorsed golf course service is a violation and is punishable by a fine of Enrolled SB 9 -44- $500.

SB 9 -44- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B (b) The biennial fee for a brewery repackaging endorsement is $200.

(c) A brewery manufacturer licensee with a brewery repackaging endorsement (1) is authorized to sell, each dayday, to a person on the licensed premises for consumption off the licensed premises, not more than 5.167 gallons of the holder's beer or sake;

(g) Unendorsed brewery repackaging is a violation, punishable by a fine of -45- Enrolled SB 9 $500.

Except for a conditional contractor's permit issued under AS 04.09.690, the director shall require every person who will serve or sell alcohol or check identification of a patron during a permitted event to complete an alcohol server education course under AS 04.21.025 before the SB0009A -45- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B first day of the permitted event.

(h) Except as otherwise provided in AS 04.09.680 for an inventory resale permit and AS 04.09.690 for a conditional contractor's permit, the fee for a permit Enrolled SB 9 -46- shall be set by the board in regulation.

SB 9 -46- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B Sec.

(b) The director may issue a restaurant caterer's dining permit only for designated premises,premises for a specific occasion,occasion and for a limited period.

-47- Enrolled SB 9 (d) The director may not issue more than three club caterer's permits to the holder of a club license in a calendar year.

(b) The director may issue an art exhibit event permit only for a specific art exhibit event at premises designated in the applicationapplication, for a limited period specified in the application.

SB0009A -47- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B (d) An art exhibit event permit may not be exercised during an event that is expected to attract attendees under 21 years of age.

Enrolled SB 9 -48- Sec.

The nonprofit organization shall submit, together with the application, (1) either a signed copy of a ssrolution rolution adopted by the board of directors or a copy of the minutes from a board meeting of the nonprofit organization SB 9 -48- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B authorizing the application;

(d) The director may not issue more than 10five nonprofit organization event permits to a nonprofit organization, including an auxiliary of the organization, in a calendar year.

(a) An alcoholic beverage auction permit authorizes the holder to sell alcoholic beverages by outcryoutcry, silent, or silentonline auction.

An alcoholic beverage auction permit is sufficient to authorize a nonprofit organization under (b) of this section to sell alcoholic beverages by outcryoutcry, silent, or silentonline auction, and no other permit or license is required.

-49- Enrolled SB 9 (b) Only a nonprofit organization, such as a fraternal, civic, professional, or patriotic organization, that is incorporated under AS 10.20 and has been active for a period of at least two years before filing an application is eligible for an alcoholic beverage auction permit.

SB0009A -49- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B (d) The director may not issue more than five alcoholic beverage auction permits to a nonprofit organization, including an auxiliary of the organization, in a calendar year.

(f) The nonprofit organization may not permit consumption at the auction site of the alcoholic beverages being auctioned under aan nonprofit organization alcoholic beverage auction permit.

(c) The director may issue a package store tasting event permit only for a specific tasting event at premises designated in the application for a limited period Enrolled SB 9 -50- specified in the application.

SB 9 -50- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B Sec.

(b) The director may not issue more than four live music or etnetnertainment ertainment permits to a licensee in a calendar year.

and 10:009:00 p.m., as specified in the application.

(a) A conditional -51- Enrolled SB 9 contractor's permit authorizes the holder to sell brewed beverages or wine for consumption only on designated premises for the designated period of the permit under AS 04.11.680 at construction sites that are located outside a city and inside the boundaries of a military or naval reservation.

(d) A conditional contractor's permit may not be transferred and is not valid SB0009A -51- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B after the completion of the holder's contract or the closing of the military or naval reservation.

The board shall approve an application if the common carrier certifies that it will meet Enrolled SB 9 -52- the requirements under (c) and (d) of this section.

SB 9 -52- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B (e) The board shall maintain, periodically review, and make available for public inspection a list of approved common carriers for transport and delivery of alcoholic beverages to persons in the state.

(2) "transport" has the meaning given in AS 04.11.499.04.11.499(c).

-53- Enrolled SB 9 (k) Common carrier noncompliance for transport or delivery of alcoholic beverages is a violation.

or SB0009A -53- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B (2) manufacture an alcoholic beverage, sell an alcoholic beverage, offer an alcoholic beverage for sale, or possess an alcoholic beverage for sale in an area that has adopted a local option under AS 04.11.491 unless under license or permit issued under this title.

(c) Unless a municipality or established village has adopted a more restrictive local option under AS 04.11.491(g), in a criminal prosecution for possession of Enrolled SB 9 -54- alcoholic beverages for barter or sale in violation of (a) of this section, AS 04.09.060, 04.09.140, or 04.09.850, the fact that a person (1) possessed more than 10 1/2 liters of distilled spirits or 24 liters or more of wine, or either a half-barrel keg [HALF-KEG] of brewed [MALT] beverages or 12 gallons or more of brewed [MALT] beverages in individual containers in an area where the sale of alcoholic beverages is restricted or prohibited under AS 04.11.491 creates a presumption that the person possessed the alcoholic beverages for barter or sale;

(2) sends, transports, or brings more than 10 1/2 liters of distilled spirits or 24 liters or more of wine, or either a half-barrel keg [HALF-KEG] of brewed [MALT] beverages or 12 gallons or more of brewed [MALT] beverages in individual containers to an area where the sale of alcoholic beverages is restricted or SB 9 -54- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B prohibited under AS 04.11.491 creates a presumption that the person sent, transported, or brought the alcoholic beverages for barter or sale in the area.

-55- Enrolled SB 9 * Sec.

SB0009A -55- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B (c) A partnership that fails to report as required under (a) of this section commits the offense of failure to report a transfer of partnership interest or change of general partner.

(a) An applicant for a new license, endorsement, or permit shall file with the director a Enrolled SB 9 -56- written application, signed and sworn to by the applicant, giving the applicant's name, mailing address, telephone number, and electronic mail address.

(3) an annotated illustration of the premises designating the areas for manufacture, storage, service, and consumption of alcoholic beverages and, SB 9 -56- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B for a license application, the area for warehousing of the alcoholic beverages;

(4) the license, endorsement, or permit fee,fee and, for a multiple fixed counter endorsement, the application fee for each counter;

(3) evidence of any approval by public authorities required to be obtained [UNDER AS 04.11.090(e), 04.11.220(c), 04.11.230(b), 04.11.240(b), OR 04.11.250(b),] before a license or permit may be issued, including -57- Enrolled SB 9 (A) written approval under AS 04.09.240 from the governing body of a college or university for a pub license;

(d) A partnership, including a limited partnership, that applies for a license or conditional contractor's permit under AS 04.09.690 shall provide information SB0009A -57- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B required by the board including the names and addresses of all general partners and all partners with an interest of 10 percent or more.

(f) This section does not apply to a winerymanufacturer direct shipment license issued under AS 04.09.370.

and (2) a list of all convictions of the applicant of violations of this title, a regulation adopted under this title, or an ordinance adopted under AS 04.21.010, that Enrolled SB 9 -58- occurred in the preceding two calendar years.

SB 9 -58- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B (4) if December 31 falls on a weekend or a state holiday, the deadline is extended to the first business day following December 31.

(c) This section does not apply to a winerymanufacturer direct shipment license issued under AS 04.09.370.

(c) A license is automatically transferred as requested in an application for transfer of the license to another person if -59- Enrolled SB 9 (1) the board does not approve or deny the completed application within 90 days after receiving the application;

SB0009A -59- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B (d) The board may suspend or revoke a license that was automatically transferred to another person under (c) of this section if, after receiving criminal justice information and records obtained under AS 04.11.295, the board determines that the licensee does not meet the qualifications for transfer of a license to another person under this title.

The board shall use the information obtained under this section in its determination of an applicant's qualification for issuance, transfer, or renewal of a license or issuance or Enrolled SB 9 -60- renewal of a conditional contractor's permit.

(c) This section does not apply to a winerymanufacturer direct shipment license issued under AS 04.09.370.

A person who knowingly makes a false sworn statement that the person does not believe to be true on an application under AS 04.11.260 - 04.11.310 commits the crime of perjury under SB 9 -60- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B AS 11.56.200.

(6) the requirements of AS 04.11.420 - 04.11.450 relating to zoning, ownership and location of the license, and the identity and financing of a licensee have not been met or the requirements of AS 04.11.430(b) relating to location of -61- Enrolled SB 9 the endorsement [, AND THE IDENTITY AND FINANCING OF A LICENSEE] have not been met;

or SB0009A -61- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B (10) the license is sought for the sale of alcoholic beverages in an established village where there are no licensed premises at the time of application unless a majority of the voters have voted not to approve a local option to restrict or prohibit the sale of alcoholic beverages under AS 04.11.491, have voted to approve a local option to allow the type of premises under AS 04.11.491(b)(2), or have voted to remove a restriction or prohibition on the sale of alcoholic beverages under AS 04.11.495.

(5) the requirements of AS 04.11.420 - 04.11.450 relating to zoning, Enrolled SB 9 -62- ownership of the license, and financing of the licensee have not been met;

SB 9 -62- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B (a) An application requesting renewal of a license or endorsement shall be denied if (1) the board finds, after review of all relevant information, that renewal of the license or endorsement would not be in the best interests of the public;

(7) renewal of the license is prohibited under this title as a result of an -63- Enrolled SB 9 election conducted under AS 04.11.507;

(d) Notwithstanding (a)(3) of this section, a theater license issued under AS 04.09.250, a common carrier dispensary license issued under AS 04.09.260, or a sporting activity or event [RECREATIONAL SITE] license issued under SB0009A -63- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B AS 04.09.270 [AS 04.11.210] may be renewed if the license was exercised at least once during each of the two preceding calendar years.

(e) The requirements of (a)(3), (a)(5),(5), and (a)(7)(7) of this section do not apply to a winerymanufacturer direct shipment license issued under AS 04.09.370.

Enrolled SB 9 -64- (6) relocation of the license would result in violation of a local zoning regulation or ordinance [LAW];

SB 9 -64- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B (2) the relocation is prohibited under AS 04.11.400(a) or (b);

An -65- Enrolled SB 9 application requesting approval of a transfer of a license to another person under this title shall be denied if (1) the board finds, after review of all relevant information, that transfer of a license to another person would not be in the best interests of the public;

or (B) the transfer is under a promise given as collateral by the SB0009A -65- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B transferor to the transferee in the course of an earlier transfer of the license under which promise the transferor is obliged to transfer the license back to the transferee in the event of default in payment for property conveyed as part of the earlier transfer of the license;

or (10) the license was issued under AS 04.11.135, unless the transferor is Enrolled SB 9 -66- also applying to transfer the beverage dispensary license required under AS 04.11.135 to the same transferee.

(4) the transferor has not paid all debts or taxes arising fmfrom the SB 9 -66- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B conduct of the business licensed under this title unless (A) the transferor gives security for the payment of the debts or taxes satisfactory to the creditor or taxing authority;

-67- Enrolled SB 9 HOWEVER, THIS PARAGRAPH DOES NOT APPLY TO A BEVERAGE DISPENSARY LICENSE ISSUED BEFORE JUNE 6, 1985, UNDER FORMER AS 04.11.400(j) IF THE TRANSFER DOES NOT INVOLVE A CHANGE IN LOCATION;

For premises located in a multi-unit residential housing development owned or SB0009A -67- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B financed by the Alaska Housing Finance Corporation, the board may issue a new license under AS 04.11.320, renew a license under AS 04.11.330, or approve a request for relocation under AS 04.11.340 if the Alaska Housing Finance Corporation authorizes the use under AS 18.56.230 and (1) the license is [FOR] a (A) restaurant or eating place license under AS 04.09.210 [AS 04.11.100];

(2) continuation of the manufacture, sale, or service of alcoholic beverages by the licensee or permittee would be contrary to the best interests of the Enrolled SB 9 -68- public;

(5) conviction of an agent or employee of a licensee of a violation of this title, a regulation adopted under this title, or an ordinance adopted under AS 04.21.010, if the licensee is found by the board to have either knowingly allowed the violation or to have recklessly or with criminal negligence failed to act in accordance with the duty prescribed under AS 04.21.030 with the result that the agent SB 9 -68- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B or employee violates a law, regulation, or ordinance;

or (11) violation by an agent or employee of a licensee of a provision of this title, a condition or restriction imposed by the board, a regulation adopted under this title, or an ordinance adopted under AS 04.21.010, if the licensee is found by the board to have either knowingly allowed the violation or to have recklessly or with -69- Enrolled SB 9 criminal negligence failed to act in accordance with the duty prescribed under AS 04.21.030 with the result that the agent or employee violates the law, condition or restriction, regulation, or ordinance.

SB0009A -69- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B * Sec.

or (B) more than one license of each other type, including licenses Enrolled SB 9 -70- that have been issued under (d) [OR (e)] of this section, for each 3,000 population or fraction of that population;

or (B) more than one license of each other type, including licenses that have been issued under (d) [OR (e)] of this section, for each 3,000 population or fraction of that population excluding the population of those established villages that have adopted a local option under AS 04.11.491(b)(1), SB 9 -70- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B (3), or (4), and excluding the population of incorporated cities located within the organized borough.

[, OR] (B) more than one brewery retail, one winery retail, and one distillery retail license for each 12,0009,000 population or fraction of that population;

or (C) more than one license of each other type, except a type listed in (i) of this section [INCLUDING LICENSES THAT HAVE BEEN ISSUED UNDER (d) OF THIS SECTION], for each 3,000 population or -71- Enrolled SB 9 fraction of that population [, IN A RADIUS OF FIVE MILES OF THE LICENSED PREMISES, EXCLUDING THE POPULATIONS OF ESTABLISHED VILLAGES, INCORPORATED CITIES, UNIFIED MUNICIPALITIES, AND ORGANIZED BOROUGHS THAT ARE WHOLLY OR PARTLY INCLUDED WITHIN THE RADIUS];

[OR] (B) more than one brewery retail, one winery retail, and one distillery retail license for each 12,0009,000 population or fraction of that SB0009A -71- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B population;

(3) inside an organized borough but outside an established village or incorporated city located within the borough if, after the issuance or relocation, there would be inside the borough, but outside the established villages and incorporated cities located within the borough, excluding the population of those established villages that have adopted a local option under AS 04.11.491(b)(1) or (3), and excluding the population of incorporated cities located within the organized borough;borough, (A) more than one restaurant or eating place license for each 1,500 population or fraction of that population;

(A)[OR] (B) more than one restaurantbrewery orretail, eatingone placewinery retail, and one distillery retail license for each 1,5009,000 population or fraction of that population;

[OR]or (B)(C) more than one brewerylicense retail,of oneeach wineryother retail,type, andexcept onea distillerytype retaillisted licensein (i) of this section [INCLUDING LICENSES THAT HAVE BEEN Enrolled SB 9 -72- ISSUED UNDER (d) OF THIS SECTION], for each 12,0003,000 population or fraction of that population;population [EXCLUDING THE POPULATION OF THOSE ESTABLISHED VILLAGES THAT HAVE ADOPTED A LOCAL OPTION UNDER AS 04.11.491(b)(1), (3), OR (4), AND EXCLUDING THE POPULATION OF INCORPORATED CITIES LOCATED WITHIN THE ORGANIZED BOROUGH].

or (C) more than one license of each other type, except a type listed in (i) of this section [INCLUDING LICENSES THAT HAVE BEEN ISSUED UNDER (d) OF THIS SECTION], for each 3,000 population or fraction of that population [EXCLUDING THE POPULATION OF THOSE ESTABLISHED VILLAGES THAT HAVE ADOPTED A LOCAL OPTION UNDER AS 04.11.491(b)(1), (3), OR (4), AND EXCLUDING THE POPULATION OF INCORPORATED CITIES LOCATED WITHIN THE ORGANIZED BOROUGH].

AS 04.11.400(a), as amended by sec.

50 of this Act, is amended to read:

(a) Except as provided in (f), (i), and (k) of this section and AS 04.11.405, a new license may not be issued and the board may prohibit relocation of an existing license (1) outside an established village, incorporated city, unified municipality, or organized borough if, after the issuance or relocation, in a radius of five miles of the licensed premises, excluding the populations of established villages, incorporated cities, unified municipalities, and organized boroughs that are wholly or partly included within the radius, there would be (A) more than one restaurant or eating place license for each 1,500 population or fraction of that population;

(B) more than one brewery retail, one winery retail, and one distillery retail license for each 4,500 [9,000] population or fraction of that population;

or (C) more than one license of each other type, except a type listed in (i) of this section, for each 3,000 population or fraction of that population;

(2) inside an established village, incorporated city, or unified municipality if, after the issuance or relocation, there would be inside the established village, incorporated city, or unified municipality (A) more than one restaurant or eating place license for each 1,500 population or fraction of that population;

(B) more than one brewery retail, one winery retail, and one distillery retail license for each 4,500 [9,000] population or fraction of that population;

or -73- Enrolled SB 9 (C) more than one license of each other type, except a type listed in (i) of this section, for each 3,000 population or fraction of that population;

(3) inside an organized borough but outside an established village or incorporated city located within the borough if, after the issuance or relocation, there would be inside the borough, but outside the established villages and incorporated cities located within the borough, excluding the population of those established villages that have adopted a local option under AS 04.11.491(b)(1) or (3), and excluding the population of incorporated cities located within the organized borough, (A) more than one restaurant or eating place license for each 1,500 population or fraction of that population;

(B) more than one brewery retail, one winery retail, and one distillery retail license for each 4,500 [9,000] population or fraction of that population;

or (C) more than one license of each other type, except a type listed in (i) of this section, for each 3,000 population or fraction of that population.

* Sec.

52.

SB 9 -72- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B (5) limited wholesale brewed beverage and wine license issued under AS 04.09.110;

(10) winerymanufacturer direct shipment license issued under AS 04.09.370;

Enrolled SB 9 -74- (11) conditional contractor's permit issued under AS 04.09.690.

52.53.

(k) The board may allow the relocation of an existing beverage dispensary license under AS 04.09.200 or former AS 04.11.090 to a restaurant, eating place, or hotel, motel, resort, or similar business that contains a restaurant or eating place, or of an existing package store license under AS 04.09.230 or former AS 04.11.150, an existing brewery retail license under AS 04.09.320, an existing winery retail license under AS 04.09.330, or an existing distillery retail license under AS 04.09.340 in a borough with a population of 50,000 [60,000] or more [IF THE GOVERNING BODY OF THE BOROUGH APPROVES THE RELOCATION.

The [, THE] board may not approve the relocation unless, at the time of application, the existing number of issued licenses of the type under consideration for relocation located within the borough exceeds the maximum allowed under (a) of this section,section and the governing bodies of both the borough and the incorporated city approve the relocation.

53.54.

SB0009A -73- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B (b) The board, following a public hearing, may issue one or more additional restaurant or eating place licenses under AS 04.11.100, within the boundaries of the municipality, if the board finds that (1) the municipality (A) serves as a center for commercial activity within and -75- Enrolled SB 9 outside the boundaries of the municipality by providing goods and services to a population that is greater than the permanent resident population within the boundaries of the municipality;

(C) exercises planning or land-useland use authority;

SB 9 -74- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B (B) in a geographic area that the municipality serves under (2) of this subsection;

and Enrolled SB 9 -76- (5) additional justification, as necessary, to demonstrate that granting of the additional licenses is in the public interest.

54.55.

5354 of this Act, is amended to read:

55.56.

5354 of this Act, is amended to read:

(C) exercises planning or land-useland use authority;

SB0009A -75- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B (2) the number of additional licenses does not exceed the number of additional licenses requested by the municipality in the petition;

56.57.

(a) A person may not be issued anew license, endorsement, or permit or -77- Enrolled SB 9 transfer a license or a license with endorsement to a new location in a municipality if a zoning regulation or ordinance prohibits the land use [SALE OR CONSUMPTION OF ALCOHOLIC BEVERAGES] unless a variance of the regulation or ordinance has been approved.

57.58.

58.59.

SB 9 -76- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B * Sec.

59.60.

(b) A person who is a representative or owner of a wholesale business licensed under AS 04.09.100 or 04.09.110 [, BREWERY, WINERY, BOTTLING WORKS, OR DISTILLERY] may not be issued, solely or together with others, a manufacturer license issued under AS 04.09.020 - 04.09.040, or a retail license Enrolled SB 9 -78- issued under AS 04.09.200 - 04.09.370 [BEVERAGE DISPENSARY LICENSE, A RESTAURANT OR EATING PLACE LICENSE, OR PACKAGE STORE LICENSE.

60.61.

61.62.

(h) For purposes of calculating the volume that the holder of a manufacturer license produces under this section, the volume of production must include all production by SB0009A -77- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B (1) the holder of the manufacturer's license;

-79- Enrolled SB 9 * Sec.

62.63.

(d) This section does not apply to a winerymanufacturer direct shipment license issued under AS 04.09.370.

63.64.

A person may object to an application for issuance, renewal, transfer of location, or transfer to another person of a license, for issuance, renewal, or transfer to another person of a license with one or more endorsements, for issuance of an endorsementendorsement, or for issuance of a permit,permit [,] by serving upon the applicant and the board the reasons for the objection.

64.65.

The procedures for action on a protest of continued operation of a license or endorsement are the same as SB 9 -78- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B the procedures for action on a protest of a renewal application.

If an application Enrolled SB 9 -80- or continued operation is protested, the board shall deny the application or continued operation unless the board finds that the protest is arbitrary, capricious, or [AND] unreasonable.

65.66.

66.67.

If a condition recommended by a local governing body is imposed on a licensee, the local governing body shall assume SB0009A -79- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B responsibility for monitoring compliance with the condition, except as otherwise provided by the board.

67.68.

(e) If the location or proposed location of a license is within the boundaries of more than one local government, each local governing body may protest the issuance, -81- Enrolled SB 9 renewal, relocation, or transfer of a license.

68.69.

or[OR] (G) an outdoor recreation lodge licensee;

or (H) a package store licensee limited to selling only beer and wine;

SB 9 -80- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B * Sec.

69.70.

(b) If a majority of the persons voting on the question vote to approve the Enrolled SB 9 -82- option, an established village shall exercise a local option to prohibit (1) the sale of alcoholic beverages;

or[OR] (G) an outdoor recreation lodge licensee;

or (H) a package store licensee limited to selling only beer and wine;

70.71.

The ballot for an election on the option set out in (a)(2)(C), (a)(3)(C), or (b)(2)(C) of this section must include a statement that a package store license is commonly known as a "liquor store" and a summary -83- Enrolled SB 9 explanation of the authority to sell alcoholic beverages given to a package store SB0009A -81- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B licensee under AS 04.09.230 [AS 04.11.150(a)].

71.72.

72.73.

if the applicant requests an informal conference, the running of the period Enrolled SB 9 -84- for requesting a formal hearing is tolled from the date the director receives the SB 9 -82- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B request for the conference until the day after the date of the conference;

73.74.

(c) Unless the grounds for the suspension or revocation are under AS 04.11.370(a)(4), board proceedings to suspend or revoke a license shall be conducted in accordance with AS 44.62.360 - 44.62.630 [AS 44.62.330 - 44.62.630] (Administrative Procedure Act), except that the licensee may submit a request to the director within 15 days after the accusation is served on the licensee for [IS ENTITLED TO] an opportunity to informally confer with the director or the board -85- Enrolled SB 9 [WITHIN 10 DAYS AFTER THE ACCUSATION IS SERVED UPON THE SB0009A -83- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B LICENSEE].

74.75.

After receipt of an application for the issuance or renewal of a license, the renewal of a license with one or more endorsements, the transfer of a license or a license with one or more endorsements to another person, the transfer of a license to a new location, or the issuance of an endorsement from within [(1)] an established village, [(2)] an incorporated city, [(3)] an organized borough, or [(4)] a unified municipality, the board shall notify [TRANSMIT WRITTEN NOTICE TO] the local governing body in writing within 10 business days so that the local governing body may protest under AS 04.11.480.

Enrolled SB 9 -86- * Sec.

75.76.

SB 9 -84- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B (a) If, in a proceeding to suspend or revoke a license, endorsement, or permit under AS 04.11.370(a)(5), the board finds that a sentencing report, record of conviction, or judgment sent to the board under AS 12.55.025(b) or a report prepared by the investigating or arresting officers in connection with the violation, contains information that if uncontradicted or unexplained would provide a ground for suspension or revocation under AS 04.11.370(a)(5), the licensee or permittee has the burden of proof to establish that the licensee or permittee neither knowingly allowed the violation nor recklessly or with criminal negligence failed to act in accordance with the duty prescribed under AS 04.21.030.

76.77.

Notwithstanding AS 04.11.680, an application for renewal of a license, an endorsement, or a conditional contractor's permit under AS 04.09.690 issued for the two calendar years ending December 31 or of a seasonal license issued for parts of those calendar years may be submitted up until the next February 28.

77.78.

78.79.

(b) A license or endorsement fee may not be refunded after the license or -87- Enrolled SB 9 endorsement has been issued unless the board determines it has erred in the issuance SB0009A -85- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B through no fault of the applicant.

79.80.

80.81.

81.82.

The Department of Commerce, Community, and Economic Development shall schedule repayments of erroneously allocated funds Enrolled SB 9 -88- [REFUNDED AMOUNTS] over a sufficient period of time to minimize financial SB 9 -86- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B hardship to the municipality involved.

82.83.

83.84.

84.85.

(c) Except as provided in (e) of this section,[A]section, a[A] licensee, an agent, or an employee may not permit a person to enter and a person may not enter premises licensed under this title between the hours of 5:00 a.m.

THIS SUBSECTION DOES NOT APPLY TO COMMON -89- Enrolled SB 9 CARRIERS OR TO] an employee of the licensee who is on the premises to prepare SB0009A -87- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B for the next day's business;

or (5) [.

85.86.

(e) A brewery, winery, or distillery retail licensee or an agent or employee of a brewery, winery, or distillery retail licensee may not permit a person to enter or remain on and a person may not enter or remain on a premises licensed under this title between the hours of 10:009:30 p.m.

86.87.

(a) On premises where alcoholic beverages are sold by the drink, a licensee or a licensee's agent or employee may not (1) offer or deliver, as a marketing device to the general public, free alcoholic beverages to a patron, except as provided for the holder of a Enrolled SB 9 -90- manufacturer sampling endorsement under AS 04.09.410 or a package store SB 9 -88- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B sampling endorsement under AS 04.09.490;

87.88.

88.89.

(a) A person holding a license under AS 04.09.020, 04.09.030, 04.09.040, 04.09.100, or 04.09.110 or engaged in the alcoholic beverage industry in another state or country as a brewer, vintner, distiller, or importer, or as an agent of a brewer, vintner, distiller, or importer, may not, except as provided in regulations adopted by the board under (b) of this section, induce a person holding a license under this title to (1) operate as a tied house by inducing a retailer engaged in the sale of alcoholic beverages to purchase products from an entity to the exclusion, in whole or in part, of products sold or offered for sale by other entities by (A) furnishing, giving, renting, lending, or selling to the retailer equipment fixtures, signs, supplies, money, services, or other things of value, except those excluded in regulation and determined to be not contrary to the -91- Enrolled SB 9 public interest or contrary to the intent of this subsection;

SB0009A -89- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B (B) paying or crediting the retailer for an advertising, display, or distribution service;

(4) enter into an agreement for consignment sales, or to purchase, offer to purchase, or contract to purchase products on consignment, under conditional sale, or with the privilege of return on any basis other than a bona fide sale, or where part of the transaction involves, directly or indirectly, the acquisition by an entity from the licenseelicensee, or the entity's agreement to acquire from the licenseelicensee, other alcoholic beverages, except that this paragraph does not apply to transactions involving solely the return of merchandise for ordinary and usual commercial reasons arising after the merchandise has been sold.

(2) necessary to avoid practical difficulty or undue hardship on a Enrolled SB 9 -92- licensee;

SB 9 -90- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B (3) in the best interests of the public;

89.90.

90.91.

(a) A licensee or a licensee's agent or employee may not sell or offer to sell alcoholic beverages to the public online unless the licensee holds a winerymanufacturer direct shipment license issued under AS 04.09.370 or a package store shipping endorsement under AS 04.09.460.

(b) A person may not purchase alcoholic beverages online except from the holder of a winerymanufacturer direct shipment license issued under AS 04.09.370 or a package store shipping endorsement under AS 04.09.460.

91.92.

or (B) a municipal ordinance adopted under AS 04.21.010(a) or -93- Enrolled SB 9 (b);

or SB0009A -91- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B (2) licensed under this title during hours in which the person's presence on the premises is a violation of a municipal ordinance adopted under authority of AS 04.16.010(d) providing for hours of closure that are outside the hours of closure prescribed by AS 04.16.010(c) or (e).

92.93.

(f) A licensee who knowingly allows an agent or employee of the licensee to commit the offense of prohibited conduct relating to a drunken person under (c) of this section commits the offensecrime of failure to ensure compliance relating to a drunken person.

93.94.

94.95.

(b) A person who knowingly violates this section commits the crime of Enrolled SB 9 -94- possession of ingredients for homebrew.

SB 9 -92- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B (c) Possession of ingredients for homebrew is a class A misdemeanor.

95.96.

96.97.

97.98.

(d) A person who is restricted from purchasing alcohol under AS 04.16.160 who knowingly violates (a) of this section commits the offensecrime of entering or remaining on licensed premises.

98.99.

(3) THE PERSON IS UNDER 16 YEARS OF AGE, IS ACCOMPANIED BY A PERSON OVER 21 YEARS OF AGE, THE PARENT OR GUARDIAN OF THE UNDERAGED PERSON CONSENTS, THE PREMISES ARE DESIGNATED BY THE BOARD AS A RESTAURANT FOR THE PURPOSES OF -95- Enrolled SB 9 THIS SECTION, AND THE PERSON ENTERS AND REMAINS ONLY FOR SB0009A -93- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B DINING];

99.100.

100.101.

101.102.

(j) Notwithstanding any other provision in this section, a person under 21 years of age may be present on the licensed premises of a common carrier dispensary, Enrolled SB 9 -96- destination resort, or outdoor recreation lodge for the purpose of travel, travel lodging, SB 9 -94- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B or outdoor recreation activities provided by the licensee if the person is (1) at least 16 years of age;

102.103.

103.104.

and (ii) "serious physical injury" has the meaning given in AS 11.81.900;11.81.900(b);

-97- Enrolled SB 9 * Sec.

104.105.

SB0009A -95- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B (b) The holder of a license is strictly liable for an offense committed under (a) of this section by an employee or agent of the licensee on the licensed premises, punishable by an administrative penalty of $250.

(e) A licensee who knowingly allows an agent or employee of the licensee to commit the offense of licensee, employee, or agent furnishing alcohol to a minor under (c) of this section commits the offensecrime of failure to ensure compliance relating to furnishing alcohol to a minor.

105.106.

106.107.

107.

AS 04.16.060(e) is amended to read:

(e) A person under the age of 21 who is seeking to enter and remain in a licensed premises under AS 04.16.049(a)(2) [OR (3)] may not misrepresent the person's age or having obtained the consent of the parent or guardian required by that section.

SB 9 -96- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B * Sec.

AS 04.16.060(e) is amended to read:

(e) A person under the age of 21 who is seeking to enter and remain in a licensed premises under AS 04.16.049(a)(2) [OR (3)] may not misrepresent the person's age or having obtained the consent of the parent or guardian required by that Enrolled SB 9 -98- section.

* Sec.

109.

A court may reduce the fine to $50 for a person who has not more than one previous violation or to $250 for a person who has two or more previous violations if the person provides the court, not later than six months after a judgment of conviction is entered, with proof of completion of (1) an alcohol safety action program or a juvenile alcohol safety action program developed, designated, or approved by the Department of Health and Social Services under AS 47.37;

109.110.

110.111.

(c) Consuming at a school event is a violation and is punishable by a fine of -99- Enrolled SB 9 $100.

SB0009A -97- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B * Sec.

111.

AS 04.16.090(c) is amended to read:

(c) In [FOR THE PURPOSES OF] this section, "consideration" includes [BUT IS NOT LIMITED TO] cover charge, the sale of food, ice, mixers, or other liquids used with alcoholic beverage drinks, [OR] the furnishing of glassware or other containers for use in the consumption of alcoholic beverages, other charges for access to the licensed premises, or other services or products provided on the licensed premises.

AS 04.16.090(c) is amended to read:

(c) In [FOR THE PURPOSES OF] this section, "consideration" includes a [BUT IS NOT LIMITED TO] cover charge, the sale of food, ice, mixers, or other liquids used with alcoholic beverage drinks, [OR] the furnishing of glassware or other containers for use in the consumption of alcoholic beverages, other charges for access to the licensed premises, or other services or products provided on the licensed premises.

* Sec.

113.

113.114.

114.115.

(f) Notwithstanding (a) of this section, a person may remove alcoholic beverages from the licensed premises of a beverage dispensary license under Enrolled SB 9 -100- AS 04.09.200 or a beverage dispensary tourism license under AS 04.09.350 for SB 9 -98- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B consumption on unlicensed portions of a large resort if the licensee holds a large resort endorsement under AS 04.09.440.

115.116.

116.117.

117.118.

(e) Unauthorized transportation of alcoholic beverages by common carrier into -101- Enrolled SB 9 a local option area is a class A misdemeanor.

SB0009A -99- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B * Sec.

118.119.

119.120.

120.121.

121.122.

122.123.

123.124.

124.125.

Enrolled SB 9 -102- Sec.

A SB 9 -100- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B person licensed under AS 04.09.200, 04.09.210, 04.09.220, 04.09.230, 04.09.270, 04.09.280, 04.09.290, 04.09.300, 04.09.310, 04.09.320, 04.09.330, 04.09.340, 04.09.350, or 04.09.360 [AS 04.11.090, 04.11.100, 04.11.110, OR 04.11.150] may not purchase, sell, or offer for sale an alcoholic beverage unless the alcoholic beverage being purchased, sold, or offered for sale was obtained from a person licensed under (1) AS 04.09.100 or 04.09.110 [AS 04.11.160] as a primary source of supply for the alcoholic beverage being purchased, sold, or offered for sale;

125.126.

126.127.

127.128.

(2) on second conviction, the license of the premises involved may not -103- Enrolled SB 9 be revoked, but may be suspended for not more than 90 days;

SB0009A -101- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B (3) on third conviction, the license of the premises involved may be suspended or revoked.

128.129.

129.130.

(2) the licensee has a pattern and practice of exercising the degree of Enrolled SB 9 -104- care required under AS 04.16.030;

SB 9 -102- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B (3) the licensee posted warning signs as required under AS 04.21.065;

130.131.

(C) alcoholic beverages imported into a municipality or -105- Enrolled SB 9 established village in violation of AS 04.11.499(a);

SB0009A -103- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B (4) alcoholic beverages found on licensed premises that do not bear federal excise stamps if excise stamps are required under federal law;

131.132.

132.133.

133.134.

Enrolled SB 9 -106- (C) the defendant has a prior conviction for violating SB 9 -104- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B AS 04.11.010 or 04.11.499(a);

134.135.

-107- Enrolled SB 9 (e) A person who is not licensed under this title or the employee or agent of a SB0009A -105- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B person who is not licensed under this title who possesses a keg or similar container holding four or more gallons of an alcoholic beverage without a temporary identification tag commits the crime of possessing alcoholic beverages in an unregistered keg.

135.136.

136.137.

(b) A person who sells or barters an alcoholic beverage totther ather person in violation of AS 04.09.060, 04.09.850, or AS 04.11.010 is strictly liable (1) to the recipient or another person for civil damages if, while under the influence of the alcoholic beverage, the person receiving the alcoholic beverage engages in conduct that results in civil damages and the recipient's being under the influence of the alcoholic beverage substantially contributes to the civil damages;

Enrolled SB 9 -108- * Sec.

137.138.

SB 9 -106- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B (a) Except as provided under (e) and (f) of this section, as a condition of issuance or renewal of a license or conditional contractor's permit and selling alcoholic beverages under a license or conditional contractor's permit, the board shall require a licensee or permittee who sells or serves alcoholic beverages and a licensee's or permittee's agents and employees who sell or serve alcoholic beverages or check the identification of a patron to complete an alcohol server education course approved by the board.

138.139.

In approving alcohol server education courses, the board shall consider the needs of both urban and rural licensees regarding access to an approved alcohol server education course.course and allow a licensee, permittee, agent, or employee to complete an alcohol server education course online or in person.

139.140.

(c) A licensee, permittee, agent, or employee shall complete the course required under (a) of this section and pass a written testtest, online or in person, demonstrating an understanding of the course subjects not more than 30 days after being licensed, permitted, or employed.

Notwithstanding the 30-day period for completing the course and passing the written test under this subsection, a person may not sell or serve alcoholic beverages or check the identification of a patron at a permitted event under AS 04.09.600 - 04.09.690 unless the person possesses a -109- Enrolled SB 9 valid card issued before the event.

140.141.

SB0009A -107- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B (f) This section does not apply to the following licenses:

(6) winerymanufacturer direct shipment license under AS 04.09.370.

141.142.

this statement shall be made on a form prepared by and furnished to the Enrolled SB 9 -110- licensee by the board;

(2) is restricted from purchasing alcoholic beverages under SB 9 -108- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B AS 04.16.160, the licensee, agent, or employee may, but has no duty or obligation to, require the person to furnish proof acceptable under (b) of this section that the person is not restricted from purchasing alcoholic beverages or require the person to sign a statement that the person is not restricted from purchasing alcoholic beverages under AS 04.16.160;

142.143.

143.144.

-111- Enrolled SB 9 (12) outdoor recreation lodge license under AS 04.09.280;

SB0009A -109- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B (14) golf course license under AS 04.09.300;

144.145.

The court may not suspend a Enrolled SB 9 -112- fine for an offense other than a misdemeanor or felony under this title, or suspend imposition or execution of sentence for an offense other than a misdemeanor or felony SB 9 -110- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B under this title, unless otherwise expressly provided in this title.

145.146.

146.147.

147.148.

148.149.

(23) "calendar year" means the period beginning January 1 and ending -113- Enrolled SB 9 December 31;

(24) "cider" means a type of wine made primarily from fermented SB0009A -111- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B apples, apple juice, or concentrate;

(26) "golf course" means a course that is open to the public, having at least nine holesholes, and covering at least 2,950 yards;

149.150.

and (C) is an establishment holding a (i) beverage dispensary license under AS 04.09.200 or beverage dispensary tourism license under AS 04.09.350 without a restaurant endorsement issued under AS 04.09.450 [AS 04.11.090] that [HAS NOT BEEN DESIGNATED BY THE ALCOHOLIC BEVERAGE CONTROL BOARD UNDER AS 04.16.049(a)(2) - (3),] has not been exempted by the Department of Labor and Workforce Development under AS 04.16.049(c) and AS 23.10.35523.10.355, [,]does not allow the sale of pull-tabs in portions of the establishment designated as a bona fide restaurant under AS 04.09.450, and, if the establishment is a hotel, motel, resort, or similar business that caters to the traveling public as a substantial part of its business, does not allow the sale of pull-tabs in a dining room, Enrolled SB 9 -114- banquet room, guest room, or other public areas other than a room in which there is regularly maintained a fixed counter or service bar that has plumbing connections to permanent plumbing at which alcoholic beverages are SB 9 -112- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B sold or served to members of the public for consumption;

150.151.

151.152.

-115- Enrolled SB 9 * Sec.

152.153.

(b) Notwithstanding the provisions of (a) of this section, a person who maintains a vending machine is not in violation of (a)(3) of this section if the vending machine is located SB0009A -113- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B (1) on premises licensed as a beverage dispensary under AS 04.09.200 or 04.09.350 [AS 04.11.090], licensed as a club under AS 04.09.220 [AS 04.11.110], or licensed as a package store under AS 04.09.230 [AS 04.11.150];04.11.150;] and (A) as far as practicable from the primary entrance;

and (A) as far as practicable from the primary entrance;

153.154.

154.155.

(d) Notwithstanding (a)(3) of this section, a person who maintains a vending machine is not in violation of (a)(3) of this section if the vending machine is located (1) on premises licensed as a beverage dispensary under AS 04.09.200 or 04.09.350 [AS 04.11.090], licensed as a club under AS 04.09.220 [AS 04.11.110], or licensed as a package store under AS 04.09.230 [AS 04.11.150], and is located Enrolled SB 9 -116- (A) as far as practicable from the primary entrance;

or SB 9 -114- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B (2) in an employee break room or other controlled area of a private work place that is not generally considered a public place and the room or area contains a posted warning sign at least 11 inches by 8.5 inches indicating that possession of electronic smoking products or products containing nicotine by a person under 19 years of age without a prescription is prohibited under this section [AS 11.76.109].

155.156.

AS 12.62.400(a)12.62.400(a), isas amended toby read:sec.

2 of Executive Order 121, is amended to read:

(9) a position involving supervisory or disciplinary power over a minor -117- Enrolled SB 9 or dependent adult for which criminal justice information may be released under AS 12.62.160(b)(9);

SB0009A -115- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B (12) admittance to a police training program under AS 18.65.230 or for certification as a police officer under AS 18.65.240 if that person's prospective employer does not have access to a criminal justice information system;

(20) licensure, license renewal, certification, certification renewal, or payment from the Department of Health and Social Services of an individual and an entity subject to the requirements for a criminal history check under AS 47.05.310, including (A) a public home care provider described in AS 47.05.017;

(D) an entity listed in AS 47.32.010(b),47.32.010(b) and (c), including an owner, officer, director, member, partner, employee, volunteer, or contractor of an entity;

or Enrolled SB 9 -118- (E) an individual or entity not described in (A) - (D) of this paragraph that is required by statute or regulation to be licensed or certified by the Department of Health and Social Services or that is eligible to receive payments, in whole or in part, from the Department of Health and Social SB 9 -116- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B Services to provide for the health, safety, and welfare of persons who are served by the programs administeredadministereby by the Department of HealthHealth; and Social Services.

(21) licensure, license renewal, certification, or certification renewal by the Department of Family and Community Services of an individual or entity, or payment from the Department of Family and Community Services to an individual or entity, subject to the requirements for a criminal history check under AS 47.05.310 for a foster home, child placement agency, and runaway shelter listed in AS 47.32.010(c), including an owner, officer, director, member, partner, employee, volunteer, or contractor of an entity.

156.157.

157.158.

-119- Enrolled SB 9 (c) The Department of Public Safety may establish and administer a reward program, and provide grants to municipalities, established villages, and, at the request of a municipality or established village, to a nonprofit association that administers a village public safety officer program, for reward programs leading to the apprehension and conviction of persons who violate AS 04.09.060, 04.09.850, or AS 04.11.010 by selling, importing, or possessing alcoholic beverages in violation of a local option adopted by a municipality or established village under AS 04.11.491.

158.159.

(b) Notwithstanding (a) of this section, a physical fitness facility may limit public accommodation to only males or only females to protect the privacy interests of SB0009A -117- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B its users.

159.160.

WineryManufacturer direct shipment tax;

A holder of a winerymanufacturer direct shipment license under AS 04.09.370 who sells wineits product in the state or who consigns shipments of wineits product into the state shall (1) be subject to the taxes provided under AS 43.60.010(a);

160.161.

Enrolled SB 9 -120- (2) the sale of liquor under a license issued under AS 04.09 [AS 04.11];

in this paragraph, (A) "investment club" means a group of individuals, incorporated or otherwise organized, that engages primarily in investing in SB 9 -118- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B securities, that does not sell investment services to another person, that does not advertise, and the primary purpose of which is educational;

161.162.

162.163.

163.164.

AS 04.16.070, 04.16.100, 04.16.180(a), -121- Enrolled SB 9 04.16.180(d), 04.16.210;

164.165.

165.166.

166.167.

13 - 24, 34, 8485 - 87,88, 8990 - 134,135, 139140 - 142,143, 144,145, and 152153 - 154155 of this Act apply to offenses committed on or after the effective date of each of those respective sections.

127128 of this Act, AS 04.16.180(e), as amended SB0009A -119- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B by sec.

128129 of this Act, and AS 04.16.220(i), as amended by sec.

133134 of this Act, apply to convictions occurring before, on, or after the effective date of each of those respective sections.

167.168.

174177 of this Act, to timely provide for the issuance, renewal, and transfer of licenses, endorsements, and permits, beginning on January 1, 2023,2024, the Alcoholic Beverage Control Board may begin to implement the changes that will be made under secs.

6, 7, 12, 13, 25, 27, 74,75, and 168169 of this Act by sending out notices relating to, accepting applications for, and collecting fees for licenses, endorsements, and permits according to the changes that will be made when secs.

6, 7, 12, 13, 25, 27, 74,75, and 168169 of this Act take effect.

6, 7, 12, 13, 25, 27, 74,75, and 168169 of this Act before January 1, 2023.2024.

168.169.

164165 of this Act, into a restaurant or Enrolled SB 9 -122- eating place license under AS 04.11.100;04.11.100, if the license was issued as a restaurant or eating place license, or into a beverage dispensary license under AS 04.11.090, if the license was issued as a beverage dispensary license under former AS 04.11.400(j), as that subsection read on June 5, 1985;

if the license was issued as a restaurant or eating place license, or into a beverage dispensary license under AS 04.11.090, if the license was issued as a beverage dispensary license under former AS 04.11.400(j), as that subsection read on June 5, 1985;

164165 of this Act, into an application for a restaurant or eating place license under AS 04.11.100.

(b) Notwithstanding the population limits under AS 04.11.400(a) or (b), the Alcoholic Beverage Control Board shall convert, within 90 days after the effective date of this subsection, SB 9 -120- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B (1) a license issued or renewed as a bottling works license under former AS 04.11.120, repealed by sec.

163164 of this Act, into a brewery manufacturer license under AS 04.09.020, added by sec.

163164 of this Act, into a brewery manufacturer license under AS 04.09.020, added by sec.

163164 of this Act, into a theater license under AS 04.09.250, added by sec.

163164 of this Act, into a general wholesale license under AS 04.09.100, added by sec.

163164 of this Act, into a limited wholesale brewed beverage and wine license under AS 04.09.110, added by sec.

163164 of this Act, into a beverage dispensary tourism license under AS 04.09.350, added by sec.

(7) a duplicate license issued or renewed as a duplicate beverage dispensary -123- Enrolled SB 9 license under former AS 04.11.090(e), repealed by sec.

163164 of this Act, into a multiple fixed counter endorsement under AS 04.09.420, added by sec.

163164 of this Act, into a sporting activity or event license under AS 04.09.270, added by sec.

(d) Notwithstanding the population limits under AS 04.11.400(a) or (b), the Alcoholic Beverage Control Board may (1) convert a license issued or renewed as a brewery license under former SB0009A -121- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B AS 04.11.130, repealed by sec.

163164 of this Act, into a brewery manufacturer license under AS 04.09.020, added by sec.

163164 of this Act, into an application for a brewery manufacturer license under AS 04.09.020, added by sec.

163164 of this Act, if the board converts the application under (2) of this subsection;

163164 of this Act, into a winery manufacturer license under AS 04.09.030, added by sec.

163164 of this Act, into an application for a winery manufacturer license under AS 04.09.030, added by sec.

13 of this Act, to an Enrolled SB 9 -124- applicant who submits an application to the board under former AS 04.11.140, repealed by sec.

163164 of this Act, if the board converts the application under (5) of this subsection;

163164 of this Act, into a distillery manufacturer license under AS 04.09.040, added by sec.

163164 of this Act, into an application for a distillery manufacturer license under AS 04.09.040, addebyadded by sec.

SB 9 -122- SB0009A New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B (9) issue a distillery manufacturer license under AS 04.09.040, added by sec.

163164 of this Act, if the board converts the application under (8) of this subsection;

169.170.

SEASONAL RESTAURANT OR EATING PLACE TOURISM LICENSE.

(b) A seasonal restaurant or eating place tourism license authorizes a restaurant or eating place to sell brewed beverages and wine for consumption only on the licensed premises for a period not to exceed six months in each calendar year.

and (2) the sale and service of food and alcoholic beverages and any other business conducted on the licensed premises of the restaurant or eating place is under the sole -125- Enrolled SB 9 control of the licensee.

(g) The holder of a seasonal restaurant or eating place tourism license shall ensure SB0009A -123- SB 9 New Text Underlined [DELETED TEXT BRACKETED] 32-LS0124\B that gross receipts from the sale of food for consumption on the licensed premises are not less than the total amount of the gross receipts from the sale of alcoholic beverages for consumption on the licensed premises in each calendar year.

170.171.

The uncodified law of the State of Alaska is amended by adding a new section Enrolled SB 9 -126- to read:

171.

Sections 168(a) and 169 of this Act are repealed January 1, 2023.

* Sec.

Sections 36,169(a) 41, 43, 49, 53, 58, 164, 168(a), 168(d)(8), 169, and 170 of this Act takeare effectrepealed immediatelyJanuary under1, AS2024. 01.10.070(c).

173Section173. 167 of this Act takes effect September 1, 2022.

SBThe 9uncodified -124-law SB0009Aof Newthe TextState Underlinedof [DELETEDAlaska TEXTis BRACKETED]amended 32-LS0124\Bby *adding Sec.a new section to read:

CONDITIONAL EFFECT.

AS 04.16.060(k), enacted by sec.

109 of this Act, and sec.

163 of this Act take effect only if sec.

163 of this Act receives the two-thirds majority vote of each house required by art.

IV, sec.