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SENATE BILL NO. 96
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FIRST LEGISLATURE - FIRST SESSION
BY SENATORS WILSON BY REQUEST, Shower
Introduced: 3/22/19
Referred: Labor and Commerce, Finance
A BILL
FOR AN ACT ENTITLED
1 "An Act relating to the authority of first class cities and home rule cities to issue, renew,
2 deny, suspend, revoke, and regulate certain licenses involving alcoholic beverages; and
3 relating to the Alcoholic Beverage Control Board."
4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
5 * Section 1. AS 04.06.090(b) is amended to read:
6 (b) Except as provided under AS 04.11.800 - 04.11.830, the [THE] board
7 shall review all applications for licenses made under this title and may order the
8 director to issue, renew, revoke, transfer, or suspend licenses and permits authorized
9 under this title.
10 * Sec. 2. AS 04.11.080 is amended to read:
11 Sec. 04.11.080. Types of licenses and permits. Licenses and permits issued
12 under this title are as follows:
13 (1) beverage dispensary license;
14 (2) duplicate beverage dispensary license for additional rooms;
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1 (3) restaurant or eating place license;
2 (4) club license;
3 (5) bottling works license;
4 (6) brewery license;
5 (7) package store license;
6 (8) general wholesale license;
7 (9) wholesale malt beverage and wine license;
8 (10) distillery license;
9 (11) common carrier dispensary license;
10 (12) retail stock sale license;
11 (13) recreational site license;
12 (14) pub license;
13 (15) winery license;
14 (16) caterer's permit;
15 (17) special events permit;
16 (18) conditional contractor's permit;
17 (19) brewpub license;
18 (20) golf course license;
19 (21) outdoor recreation lodge license;
20 (22) destination resort license;
21 (23) municipal restaurant or eating place license;
22 (24) municipal package store license.
23 * Sec. 3. AS 04.11.400(a) is amended to read:
24 (a) Except as provided in (d) - (k) and (o) of this section, a new license may
25 not be issued and the board may prohibit relocation of an existing license
26 (1) outside an established village, incorporated city, unified
27 municipality, or organized borough if, after the issuance or relocation, there would be
28 (A) more than one restaurant or eating place license for each 1,500 population or
29 fraction of that population, or (B) more than one license of each other type, including
30 licenses that have been issued under (d), [OR] (e), or (o) of this section, for each 3,000
31 population or fraction of that population, in a radius of five miles of the licensed
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1 premises, excluding the populations of established villages, incorporated cities, unified
2 municipalities, and organized boroughs that are wholly or partly included within the
3 radius;
4 (2) inside an established village, incorporated city, or unified
5 municipality if, after the issuance or relocation, there would be inside the established
6 village, incorporated city, or unified municipality
7 (A) more than one restaurant or eating place license for each
8 1,500 population or fraction of that population; or
9 (B) more than one license of each other type, including licenses
10 that have been issued under (d), [OR] (e), or (o) of this section, for each 3,000
11 population or fraction of that population;
12 (3) inside an organized borough but outside an established village or
13 incorporated city located within the borough if, after the issuance or relocation, there
14 would be inside the borough, but outside the established villages and incorporated
15 cities located within the borough,
16 (A) more than one restaurant or eating place license for each
17 1,500 population or fraction of that population; or
18 (B) more than one license of each other type, including licenses
19 that have been issued under (d), [OR] (e), or (o) of this section, for each 3,000
20 population or fraction of that population excluding the population of those
21 established villages that have adopted a local option under AS 04.11.491(b)(1),
22 (3), or (4), and excluding the population of incorporated cities located within
23 the organized borough.
24 * Sec. 4. AS 04.11.400 is amended by adding a new subsection to read:
25 (o) Notwithstanding the population limits under (a) of this section, the board
26 may approve the issuance of additional brewery licenses under AS 04.11.130,
27 brewpub licenses under AS 04.11.135, winery licenses under AS 04.11.140, or
28 distillery licenses under AS 04.11.170 for a first class or home rule city that meets the
29 criteria in AS 04.11.800(b) if the
30 (1) city submits to the board
31 (A) a resolution adopted by the local governing body of the city
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1 petitioning the board for the issuance of the additional licenses; in this
2 subparagraph, "local governing body" has the meaning given in AS 04.11.830;
3 and
4 (B) proof satisfactory to the board of the total population of the
5 city; and
6 (2) board finds that issuance of the licenses is in the best interest of the
7 city and the area surrounding the city.
8 * Sec. 5. AS 04.11 is amended by adding new sections to read:
9 Article 10. Municipal Licenses.
10 Sec. 04.11.800. Petition for municipal authority. (a) Notwithstanding a
11 contrary provision of this chapter, a first class city or home rule city may petition the
12 board for the authority to issue, renew, deny, suspend, revoke, and regulate, within the
13 boundaries of the city, municipal restaurant or eating place licenses under
14 AS 04.11.805 and municipal package store licenses under AS 04.11.810. The local
15 governing body of the first class city or home rule city shall demonstrate to the board
16 that the city meets the criteria in (b) of this section.
17 (b) The board, following a public hearing, shall approve the city's petition if
18 the board finds that the
19 (1) local governing body of the city has adopted a resolution
20 authorizing the city to submit a petition under this section; and
21 (2) city
22 (A) serves as a center for commercial activity inside and
23 outside the boundaries of the city;
24 (B) has adopted a comprehensive plan and zoning regulations;
25 (C) maintains a local law enforcement department with a chief
26 of police and at least one police officer; and
27 (D) has adopted a written procedure for the issuance, renewal,
28 denial, suspension, and revocation of licenses under AS 04.11.805 and
29 04.11.810, including a fee schedule, requirements for public notice and
30 hearing, and a process for applications, inspections, and audits.
31 (c) The authority granted by the board to a first class city or home rule city
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1 under this section does not include the authority to enforce the criminally punishable
2 provisions of this title and regulations adopted by the board, except that a first class
3 city or home rule city may suspend or revoke a license issued under AS 04.11.805 or
4 04.11.810 if the licensee violates a provision of this title or a regulation adopted under
5 this title.
6 Sec. 04.11.805. Municipal restaurant or eating place license. (a) A
7 municipal restaurant or eating place license authorizes a restaurant or eating place to
8 sell beer and wine for consumption only on the licensed premises.
9 (b) The local governing body of a first class city or home rule city approved
10 by the board under AS 04.11.800 may issue a municipal restaurant or eating place
11 license only if the local governing body determines that the premises to be licensed
12 (1) is a bona fide restaurant or eating place;
13 (2) does not maintain more than one room in which there is a fixed
14 counter or service bar at which beer and wine are sold or served to members of the
15 public for consumption, except as provided in (f) of this section; and
16 (3) holds a food service permit from the Department of Environmental
17 Conservation.
18 (c) The holder of a restaurant or eating place license issued under
19 AS 04.11.100 who is issued a municipal restaurant or eating place license under this
20 section for the same licensed premises shall surrender the restaurant or eating place
21 license issued under AS 04.11.100 to the board or its agent immediately after
22 obtaining the municipal restaurant or eating place license issued under this section.
23 (d) A license issued under this section may be renewed only if the licensee
24 provides evidence to the local governing body's satisfaction showing that, for the
25 preceding calendar year, gross receipts from the sale of beer and wine on the licensed
26 premises constituted not more than 35 percent of the gross receipts from the sale of
27 food, beer, and wine on the licensed premises.
28 (e) The holder of a restaurant or eating place license issued under
29 AS 04.11.100 may, with the board's written consent, apply to the local governing body
30 of a first class city or home rule city to convert the restaurant or eating place license to
31 a municipal restaurant or eating place license under this section.
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1 (f) The holder of a municipal restaurant or eating place license may maintain
2 on the licensed premises more than one room in which there is regularly maintained a
3 fixed counter or service bar at which beer and wine are sold or served to members of
4 the public for consumption if the local governing body of a first class city or home
5 rule city issues to the licensee, after investigation, a duplicate of the original license
6 for each of the rooms.
7 Sec. 04.11.810. Municipal package store license. (a) A municipal package
8 store license authorizes the licensee to sell alcoholic beverages to a person present on
9 the licensed premises or to a person known to the licensee who makes a written
10 solicitation to the licensee for shipment.
11 (b) The local governing body of a first class city or home rule city approved
12 by the board under AS 04.11.800 may issue a municipal package store license to a
13 retail business only if the
14 (1) retail business complies with the requirements of AS 04.11.150(a),
15 (c) - (e), and (g) - (k);
16 (2) square footage of the premises to be licensed is less than 15 percent
17 of the total square footage of the retail business; and
18 (3) retail business is primarily engaged in selling household products
19 or dispensing pharmaceuticals; in this paragraph, "household products" means
20 groceries, apparel, housewares, or personal care products, but does not include
21 gasoline or diesel fuel.
22 (c) The holder of a package store license issued under AS 04.11.150 who is
23 issued a municipal package store license under this section for the same licensed
24 premises shall surrender the package store license issued under AS 04.11.150 to the
25 board or its agent immediately after obtaining the municipal package store license
26 issued under this section.
27 (d) A license issued under this section may be renewed only if the licensee
28 provides evidence to the local governing body's satisfaction showing that, for the
29 preceding calendar year, gross receipts from the sale of alcohol on the licensed
30 premises constituted not more than 15 percent of the gross receipts of the retail
31 business.
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1 Sec. 04.11.815. Renewal. For renewal of a license issued under AS 04.11.805
2 or 04.11.810, the licensee shall annually provide the local governing body of a first
3 class city or home rule city with written evidence showing that the licensee meets the
4 requirements for original licensure and renewal. The local governing body shall
5 annually file with the board written documentation of the licensee's compliance with
6 this section.
7 Sec. 04.11.820. Appeals. A person may appeal a decision of the local
8 governing body of a first class city or home rule city under AS 04.11.800 - 04.11.830
9 to a hearing officer appointed by the first class city or home rule city.
10 Sec. 04.11.825. Transfer. A license issued under AS 04.11.805 or 04.11.810
11 may not be transferred to another person or a new location.
12 Sec. 04.11.830. Definitions. Notwithstanding the definition of "local
13 governing body" in AS 04.21.080(b), in AS 04.11.800 - 04.11.830, "local governing
14 body" means a city council or a local alcohol control board established in ordinance by
15 a city council.
16 * Sec. 6. AS 04.16.210 is amended to read:
17 Sec. 04.16.210. Penalty for making false statement. If a false statement is
18 made in an application to the board under AS 04.11.260 - 04.11.290 or in an
19 application to a municipality under AS 04.11.800 - 04.11.830, the applicant is
20 guilty of perjury and, upon conviction, is subject to the penalty provided by law for the
21 crime of perjury under AS 11.56.200.
22 * Sec. 7. AS 04.21.020(a) is amended to read:
23 (a) Except as provided under (b) and (d) of this section, a person who provides
24 alcoholic beverages to another person may not be held civilly liable for injuries
25 resulting from the intoxication of that person unless the person who provides the
26 alcoholic beverages holds a license authorized under AS 04.11.080 - 04.11.220,
27 04.11.805, or 04.11.810 or is an agent or employee of such a licensee and
28 (1) the alcoholic beverages are provided to a person under the age of
29 21 years in violation of AS 04.16.051, unless the licensee, agent, or employee secures
30 in good faith from the person a signed statement, liquor identification card, or driver's
31 license meeting the requirements of AS 04.21.050(a) and (b), that indicates that the
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