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HOUSE BILL NO. 357
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTIETH LEGISLATURE - SECOND SESSION
BY REPRESENTATIVES KOPP, Spohnholz
Introduced: 2/16/18
Referred: Labor and Commerce, Judiciary
A BILL
FOR AN ACT ENTITLED
1 "An Act relating to alcoholic beverages; relating to the regulation of manufacturers,
2 wholesalers, retailers, and common carriers of alcoholic beverages; relating to licenses,
3 endorsements, and permits involving alcoholic beverages; relating to the Alcoholic
4 Beverage Control Board; relating to offenses involving alcoholic beverages; amending
5 Rule 17, Alaska Rules of Minor Offense Procedure; and providing for an effective date."
6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
7 * Section 1. AS 04.06.075 is amended by adding a new subsection to read:
8 (b) The director shall prepare and submit to the board an annual budget for the
9 board that includes funding for administration, enforcement, education, training, and
10 prevention activities under this title.
11 * Sec. 2. AS 04.06.080 is amended to read:
12 Sec. 04.06.080. Delegation of authority. The director shall issue, renew,
13 transfer, suspend, or revoke all licenses, endorsements, and permits at the direction of
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1 the board. However, notwithstanding AS 04.06.090(b) [AS 04.11.070], the board may
2 delegate authority to the director to temporarily grant or deny the issuance, renewal, or
3 transfer of licenses, endorsements, and permits. The director's temporary grant or
4 denial of the issuance, renewal, or transfer of a license, endorsement, or permit is not
5 binding on the board. The board may delegate to the director any duty imposed by this
6 title except its power to propose and adopt regulations.
7 * Sec. 3. AS 04.06.090(b) is amended to read:
8 (b) Only the board may issue, renew, transfer, relocate, suspend, or
9 revoke a license or endorsement under this title. The board shall review all
10 applications for licenses and endorsements made under this title and may order the
11 director to issue, renew, revoke, transfer, or suspend licenses, endorsements, and
12 permits authorized under this title.
13 * Sec. 4. AS 04.06.090(e) is amended to read:
14 (e) The board shall promptly notify all licensees and municipalities of major
15 changes to this title and to regulations adopted under this title. However, if changes
16 only affect specific classifications of licenses, endorsements, and permits, the board
17 need only notify those licensees and municipalities directly affected by the changes.
18 Current copies of this title and current copies of the regulations adopted under it shall
19 be made available at all offices in the state of the Department of Commerce,
20 Community, and Economic Development and the detachment headquarters and posts
21 maintained by the division of Alaska state troopers in the Department of Public Safety.
22 * Sec. 5. AS 04.06.090 is amended by adding new subsections to read:
23 (f) The board shall develop a comprehensive plan to educate public safety
24 professionals, the alcoholic beverage industry, individuals under 21 years of age, local
25 governments, established villages, and the general public on the responsible use of
26 alcoholic beverages and on relevant state statutes, regulations, and policies. The board
27 shall update and revise the plan annually.
28 (g) The board shall review the fees specified in this title and regulations
29 adopted under this title at least every 10 years.
30 (h) The board may, within 30 days after the introduction of a bill amending a
31 provision of this title or adding a new provision to this title, prepare an advisory
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1 opinion regarding the changes proposed in the bill.
2 (i) The board shall, within 30 business days after receiving notice of a
3 conviction or violation under this title, provide a copy of the conviction or violation to
4 the holder of a license if an offense or violation occurred on the holder's licensed
5 premises and the holder is not the subject of the conviction or violation.
6 (j) The board shall post information on the board's Internet website about fetal
7 alcohol syndrome and fetal alcohol effects resulting from a woman consuming alcohol
8 during pregnancy.
9 * Sec. 6. AS 04.06.095 is amended to read:
10 Sec. 04.06.095. Statewide database. (a) The board, after consulting with
11 package store licensees, shall create and maintain a statewide database that contains a
12 monthly record of the alcohol purchased by, and shipped to, a person who resides in a
13 municipality or established village that has restricted the sale of alcoholic beverages
14 under AS 04.11.491(a)(1), (2), or (3) or (b)(1) or (2).
15 (b) Except as otherwise specifically provided in this section, the information
16 contained in the database is confidential and is not subject to inspection or copying
17 under AS 40.25.110 - 40.25.220. Personally identifiable information, including
18 business names and addresses, [INFORMATION] in the database shall be purged
19 one year after entry unless it is needed for criminal investigation or prosecution. All
20 other information in the database shall be retained in aggregate form and purged
21 10 years after entry. Information in the database is available only to
22 (1) a package store licensee, agent, or employee to consult before
23 shipping alcohol to a purchaser in a restricted area under a package store shipping
24 endorsement as provided in AS 04.09.460 [AS 04.11.150(g)];
25 (2) a law enforcement officer;
26 (3) a probation or parole officer;
27 (4) the board; and
28 (5) the person who is the subject of the information; the board shall
29 adopt regulations concerning access by a person to information contained in the
30 database of the purchases by, and shipments to, that person.
31 * Sec. 7. AS 04.06.095 is amended by adding a new subsection to read:
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1 (c) The board shall produce an annual report of the aggregate regional and
2 statewide data from the database, excluding personally identifiable information and
3 the names and addresses of businesses, and shall make the report available for public
4 inspection and copying under AS 40.25.110 - 40.25.220. The report must include
5 information about the total volume of alcohol received in each municipality or
6 established village.
7 * Sec. 8. AS 04.06.100(b) is amended to read:
8 (b) The subjects covered by regulations adopted under (a) of this section may
9 include the following matters:
10 (1) employment, conduct, and duties of the director and of regular and
11 contractual employees of the board;
12 (2) procedures for the issuance, denial, renewal, transfer, revocation,
13 and suspension of licenses, endorsements, and permits;
14 (3) terms and conditions of licenses, endorsements, and permits
15 issued;
16 (4) fees for licenses, endorsements, and permits issued for which fees
17 are not prescribed by statute;
18 (5) conduct of regular and special meetings of the board;
19 (6) delegation to the director of routine administrative functions and
20 powers;
21 (7) the temporary granting or denial of issuance, transfer, and renewal
22 of licenses and endorsements;
23 (8) manner of giving any notice required by law or regulation when not
24 provided for by statute;
25 (9) requirements relating to the qualifications of licensees, the
26 conditions upon which a license may be issued, the accommodations of licensed
27 premises, and board inspection of those premises;
28 (10) making of reports by wholesalers;
29 (11) purchase of fidelity bonds by the state for the director and the
30 employees of the board;
31 (12) prohibition of possession of alcoholic beverages by drunken
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1 persons and by minors;
2 (13) required reports from corporations licensed under this title,
3 including reports of stock ownership and transfers and changes of officers and
4 directors;
5 (14) [CREATION OF CLASSIFICATIONS OF LICENSES OR
6 PERMITS NOT PROVIDED FOR IN THIS TITLE;
7 (15)] establishment and collection of fees to be paid on application for
8 a license, endorsement, or permit;
9 (15) [(16)] required reports from partnerships and limited partnerships
10 licensed under this title, including reports of transferred interests of 10 percent or
11 more;
12 (16) [(17)] required reports from limited liability organizations
13 licensed under this title, including reports of the transfer of a member's interest if the
14 transfer equals 10 percent or more of the ownership of the limited liability
15 organization and any change of managers;
16 (17) restrictions on the manufacture, packaging, sale, and
17 distribution of products containing alcohol that are intended for human
18 consumption.
19 * Sec. 9. AS 04 is amended by adding a new chapter to read:
20 Chapter 09. Licenses, Endorsements, and Permits.
21 Article 1. License Types.
22 Sec. 04.09.010. Types of licenses. A license defines activities allowed daily on
23 licensed premises. License type is a general category of license activity based on the
24 three-tier system of alcohol regulation. The three types of licenses the board may issue
25 are manufacturer, wholesale, and retail licenses. The board may issue only the licenses
26 authorized in AS 04.09.020 - 04.09.360.
27 Article 2. Manufacturer Licenses.
28 Sec. 04.09.020. Brewery manufacturer license. (a) A brewery manufacturer
29 license authorizes the holder to operate a brewery for the manufacture, packaging,
30 storing, and sale of its brewed beverages to a buyer as permitted in AS 04.09.050.
31 (b) The biennial brewery manufacturer license fee is $1,500.
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1 (c) At least 80 percent of each final product that contains brewed beverages
2 offered for sale by the holder of a brewery manufacturer license must be manufactured
3 on the holder's licensed premises in the state.
4 Sec. 04.09.030. Winery manufacturer license. (a) A winery manufacturer
5 license authorizes the holder to operate a winery for the manufacture, packaging,
6 storing, and sale of its wine to a buyer as permitted in AS 04.09.050.
7 (b) The biennial winery manufacturer license fee is $1,500.
8 (c) At least 80 percent of each final product that contains wine offered for sale
9 by the holder of a winery manufacturer license must be manufactured on the holder's
10 licensed premises in the state.
11 Sec. 04.09.040. Distillery manufacturer license. (a) A distillery manufacture
12 license authorizes the holder to operate a distillery for the manufacture, packaging,
13 storing, and sale of its distilled spirits to a buyer as permitted in AS 04.09.050.
14 (b) The biennial distillery manufacturer license fee is $1,500.
15 (c) At least 80 percent of each final product that contains distilled spirits
16 offered for sale by the holder of a distillery manufacturer license must be
17 manufactured on the holder's licensed premises in the state.
18 Sec. 04.09.050. Authorized sales. (a) The holder of a manufacturer license
19 that annually produces in total less than 300,000 barrels of brewed beverages, less than
20 50,000 nine-liter-equivalent cases of wine, or less than 50,000 nine-liter-equivalent
21 cases of distilled spirits may sell its product to
22 (1) the holder of a wholesale license issued under this chapter;
23 (2) the holder of a retail license issued under this chapter;
24 (3) the holder of a permit issued under this chapter;
25 (4) an entity in another state or country.
26 (b) The holder of a manufacturer license that annually produces in total
27 300,000 barrels or more of brewed beverages, 50,000 nine-liter-equivalent cases or
28 more of wine, or 50,000 nine-liter-equivalent cases or more of distilled spirits may sell
29 its product to
30 (1) the holder of a wholesale license issued under this chapter;
31 (2) an entity in another state or country.
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1 (c) For purposes of calculating the volume that the holder of a manufacturer
2 license produces under this section, the volume of production must include all
3 production by
4 (1) the holder of the manufacturer's license; and
5 (2) an officer, director, agent, employee, or affiliate of the holder; in
6 this paragraph, "affiliate" means a person that directly or indirectly, through one or
7 more intermediaries, controls, or is controlled by, or is under common control with, a
8 corporation.
9 Sec. 04.09.060. Unlicensed manufacturing. (a) A person commits the crime
10 of unlicensed manufacturing if the person knowingly operates a
11 (1) brewery without a brewery manufacturer license;
12 (2) winery without a winery manufacturer license; or
13 (3) distillery without a distillery manufacturer license.
14 (b) Unlicensed manufacturing is a class A misdemeanor.
15 Sec. 04.09.070. Unlicensed manufacturing in a local option area. (a) A
16 person commits the crime of unlicensed manufacturing in a local option area if the
17 person knowingly operates in an area that has adopted a local option under
18 AS 04.11.491 a
19 (1) brewery without a brewery manufacturer license;
20 (2) winery without a winery manufacturer license; or
21 (3) distillery without a distillery manufacturer license.
22 (b) Unlicensed manufacturing in a local option area is a class C felony.
23 Sec. 04.09.080. Unauthorized manufacturer sale. (a) Except as provided in
24 AS 04.09.310 - 04.09.330, a person who holds a manufacturer license commits the
25 offense of unauthorized manufacturer sale if the person sells its product in violation of
26 AS 04.09.050.
27 (b) Unauthorized manufacturer sale is a violation.
28 Sec. 04.09.090. Definition. In AS 04.09.020 - 04.09.090, "packaging" means
29 the process of containing alcoholic beverages in bottles or other types of containers for
30 purpose of resale.
31 Article 3. Wholesale Licenses.
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