AS Title 4, Chapter 11: Licensing

Article 1. Licensing and Reporting Requirements. Chapter 11. Licensing. Sec. 04.11.010. License or permit required; presumption concerning possession for sale. (a) Except as provided in AS 04.11.020 , a person may not knowingly (1) possess for barter, traffic in, or barter an alcoholic beverage unless under license or permit issued under this title; or (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. (b) Except as provided in this subsection, a person may not solicit or receive orders for the delivery of an alcoholic beverage in an area that has adopted a local option under AS 04.11.491 . If the area has adopted a local option under AS 04.11.491 (a)(1), (2), or (3) or (b)(1) or (2), a package store licensee outside of that local option area may receive orders as provided under a package store shipping endorsement under AS 04.09.460 but may not solicit in that area or receive orders through an agent or employee in that area. This subsection does not apply to a package store licensee who operates a package store in an area that has adopted a local option under AS 04.11.491 (a)(2)(C) or (3)(C) or (b)(2)(C). A person who violates this subsection is punishable upon conviction as provided under AS 04.16.200 (a) or (b). (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 alcoholic beverages for barter or sale in violation of (a) of this section, AS 04.09.060 , 04.09.140, or AS 04.09.800 , 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 of brewed beverages or 12 gallons or more of brewed 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 of brewed beverages or 12 gallons or more of brewed beverages in individual containers to an area where the sale of alcoholic beverages is restricted or 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. (d) In this section, (1) “bring” has the meaning given in AS 04.11.499 ; (2) “send” has the meaning given in AS 04.11.499 ; (3) “transport” has the meaning given in AS 04.11.499 . Sec. 04.11.015. Purchase from nonlicensee prohibited. (a) A person may not purchase or barter for alcoholic beverages from a person who is not a licensee, permittee, or an agent or employee of a licensee or permittee. (b) A person who violates (a) of this section is guilty of a violation. Sec. 04.11.020. Exceptions: License or permit not required. (a) A license or permit is not required to authorize sales made by a person under a judgment and decree of foreclosure, under the bankruptcy law of the United States, or under order of the board or a court under AS 04.16.220 . (b) A license or permit is not required to serve alcoholic beverages in exchange for valuable contributions at a private gathering of a bona fide group of co-workers or of a professional, social, or fraternal organization if equal contributions are made by all in attendance and only the amount required to purchase the alcoholic beverages is contributed. All other applicable provisions of this title and regulations under this title shall be observed at these private gatherings. Sec. 04.11.030. Death of licensee. (a) The executor or administrator of the estate of a person who was operating a business as a sole licensee under a license authorized by this title may continue to operate the licensed business until an application for transfer of a license to another person is approved or until the license is forfeited under (b) of this section. (b) If an application for the transfer of ownership of a license from a deceased licensee is not made within 180 days of the death of the licensee or within an additional 90 days if an application for transfer of ownership made by the executor is denied, or no petition is made to the board for an extension of time under (c) of this section within the time, the license is forfeited. (c) The board may extend the time limits in (b) of this section on petition of the executor or administrator. (d) This section does not authorize the transfer of a liquor license by an administrator or executor to the estate of a decedent. (e) The board may transfer a license to an executor or administrator only in the executor's or administrator's individual capacity. Sec. 04.11.040. Board approval of transfers. (a) A license issued under this title may not be transferred to another person except with the written consent of the board. (b) A license or permit issued under this title may not be transferred to a new location except with the written consent of the board. (c) A person may not receive or transfer controlling interest in a liquor license issued to a partnership, including a limited partnership, a limited liability organization, or a corporation under this title, except with the written consent of the board. (d) A person who transfers a license or permit or a controlling interest in a license or permit in violation of this section commits the offense of unauthorized transfer of an alcoholic beverage license or permit. (e) Unauthorized transfer of an alcoholic beverage license or permit is a violation. Sec. 04.11.045. Reports required of limited liability organizations. (a) A limited liability organization licensed under this title shall report to the board when a member of the limited liability organization transfers 10 percent or more of the ownership of the organization and shall report a change of managers. (b) The report to the board shall be made in writing in duplicate and shall be sent within 10 days after the change in member interest or manager. (c) A limited liability organization that fails to report as required under (a) of this section commits the offense of failure to report a change in member interest or manager. (d) Failure to report a change in member interest or manager is a violation. Sec. 04.11.050. Reports required of corporations. (a) A corporation issued a license under this title shall report to the board when 10 percent or more of its corporate stock is transferred and shall also report any change in its corporate officers or in the membership of its board of directors. (b) The report to the board shall be made in writing in duplicate and shall be sent within 10 days after the transfer of the stock or the change in officers or directors. (c) This section does not apply to a corporation whose stock is listed on a stock exchange, a corporation that is required by law to file periodic reports with the United States Securities Exchange Commission, or to a bank, trust company, financial institution, or title company to which a license is issued in a fiduciary capacity. (d) A corporation that fails to report as required under (a) of this section, other than a corporation described in (c) of this section, commits the offense of failure to report a stock transfer or change of officers or board members. (e) Failure to report a stock transfer or change of officers or board members is a violation. Sec. 04.11.055. Reports required of partnerships. (a) A partnership, including a limited partnership, issued a license under this title shall report to the board when a partnership interest of 10 percent or more is transferred and shall report a change of general partners. (b) The report to the board shall be made in writing in duplicate and shall be sent within 10 days after the change in interest or change of general partners. (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. (d) Failure to report a transfer of partnership interest or change of general partner is a violation. Sec. 04.11.060. Nonresident distiller, brewer, winery, or wholesaler. (a) A distiller, brewer, winery, or wholesaler whose plant or principal place of business is outside the state may not sell products directly to licensees in the state without (1) obtaining a general wholesale license under AS 04.09.100 for each wholesale distributing point in the state; (2) appointing an agent upon whom process can be served; and (3) obtaining other applicable licenses under the provisions of this title. (b) A person who violates (a) of this section is guilty of a class A misdemeanor. Sec. 04.11.070. Power limited to the board. Article 2. Licenses and Permits. §§ 04.11.080 — 04.11.180. Types of licenses and permits; beverage dispensary license; restaurant or eating place license; club license; golf course license; bottling works license; brewery license; brewpub license; winery license; package store license; permit for delivery to social events; wholesale licenses; distillery license; common carrier dispensary license. Sec. 04.11.190. Community liquor license. [Repealed, § 69 ch 101 SLA 1995.] §§ 04.11.200 — 04.11.255. Retail stock sale license; recreational site license; pub license; outdoor recreation lodge license; caterer's permit; special events permit; conditional contractor's permit; destination resort license. Article 3. Application for License or Permit. Sec. 04.11.260. Application for new license, endorsement, or permit. (a) An applicant for a new license, endorsement, or permit shall file with the director a written application, signed and sworn to by the applicant, giving the applicant's name, mailing address, telephone number, and electronic mail address. If the applicant is a corporation, the application shall be executed by an authorized officer of the corporation. If the applicant is a partnership, including a limited partnership, the application shall be executed by an authorized general partner. The application must include (1) the type of license, endorsement, or permit desired; (2) a description of the premises for which the license, endorsement, or permit is desired, giving the address by street and number, or other information, so that the location of the premises can be definitely determined; (3) an annotated illustration of the premises designating the areas for manufacture, storage, service, and consumption of alcoholic beverages and, for a license application, the area for warehousing of the alcoholic beverages; (4) the license, endorsement, or permit fee and, for a multiple fixed counter endorsement, the application fee for each counter; (5) the duration of the license, endorsement, or permit desired, including, for a permit, a statement of the event dates and the specific hours of intended operation; (6) any other information required by the board. (b) A corporation applying for a license or conditional contractor's permit under AS 04.09.710 shall provide the names and addresses of the president, vice- president, secretary, managing officer, and all stockholders who own 10 percent or more of the stock in the corporation, together with any other information required by the board. (c) An applicant for a new license or permit must include with the application (1) proof that notice required by AS 04.11.310 , if any, has been given; (2) any petitions required to be secured under AS 04.11.460 before a license may be issued; (3) evidence of any approval by public authorities required to be obtained before a license or permit may be issued, including (A) written approval under AS 04.09.240 from the governing body of a college or university for a pub license; (B) approval under AS 04.11.365 for a restaurant or eating place license in a multi-unit residential housing development owned or financed by the Alaska Housing Finance Corporation; (C) permission from the commanding officer and the prime contractor for a conditional contractor's permit under AS 04.09.710 ; (D) for a permit other than a conditional contractor's permit, approval of the law enforcement agency having jurisdiction over the site of the event for which the permit is sought. (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 required by the board including the names and addresses of all general partners and all partners with an interest of 10 percent or more. (e) A limited liability organization that applies for a license or conditional contractor's permit under AS 04.09.710 shall provide information required by the board, including the names and addresses of all members with an ownership interest of 10 percent or more and the names and addresses of all managers. (f) This section does not apply to a manufacturer direct shipment license issued under AS 04.09.370 . Sec. 04.11.270. Application for renewal of license, license with one or more endorsements, or conditional contractor's permit. (a) An application for renewal of a license, license with one or more endorsements, or conditional contractor's permit under AS 04.09.710 must include (1) the information required for a new license, endorsement, or permit under AS 04.11.260 except that proof of notice under AS 04.11.310 is not required; 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 occurred in the preceding two calendar years. (b) A license, license with one or more endorsements, or permit shall be renewed as follows: (1) on or before November 1, the director shall mail a renewal application to each licensee whose license, license with one or more endorsements, or permit, unless renewed, will expire on December 31 of that year; the application shall be mailed to the licensee or permittee at a mailing address or electronic mail address furnished by the licensee or permittee; (2) the licensee or permittee shall submit the completed renewal application and the biennial fee to the director before January 1; (3) a renewal application filed after December 31 is delinquent and must be accompanied by a $500 penalty fee; (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 manufacturer direct shipment license issued under AS 04.09.370 . Sec. 04.11.280. Application for transfer of a license to another person. (a) An application for transfer of a license or a license with one or more endorsements to another person must contain the same information about the transferee as is required of an applicant for a new license or endorsement under AS 04.11.260 and must include other information required by the board. (b) An application for the transfer of a license or a license with one or more endorsements to another person must be accompanied by a statement, under oath, executed by the transferor, listing all debts of the business and all taxes due by the business. The board shall promptly inform each listed creditor of the application and the amount shown as owed to that creditor. (c) A license is automatically transferred as requested in an application for transfer of the license to another person if (1) the board does not approve or deny the completed application within 90 days after receiving the application; (2) the application is for transfer of a (A) restaurant or eating place license under AS 04.09.210 ; (B) seasonal restaurant or eating place tourism license under AS 04.09.360 ; (C) restaurant or eating place license under AS 04.09.210 with one or more endorsements; or (D) seasonal restaurant or eating place tourism license under AS 04.09.360 with one or more endorsements; and (3) the applicant for transfer of a license has not previously had a license or permit suspended or revoked under AS 04.11.370 . (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. Sec. 04.11.290. Application for transfer of license location. An application for a transfer of a license to a new location must contain the information required by the board and must be accompanied by proof that the notice required in AS 04.11.310 has been given and by any petitions required to be secured under AS 04.11.460 before a license may be transferred. Sec. 04.11.295. Criminal justice information and records. (a) An applicant for the issuance or transfer of a license or issuance of a conditional contractor's permit under this title shall submit to the board, with the application, the applicant's fingerprints and the fees required by the Department of Public Safety under AS 12.62.160 for criminal justice information and a national criminal history record check. Except as provided under (b) of this section, the board may require an applicant for renewal of a license or a conditional contractor's permit under this title to submit fingerprints and pay the required fees. The board shall submit the fingerprints to the Department of Public Safety to obtain a report of criminal justice information under AS 12.62 and a national criminal history record check under AS 12.62.400 . The Department of Public Safety may submit the fingerprints to the Federal Bureau of Investigation for a national criminal history record check. 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 renewal of a conditional contractor's permit. (b) For renewal of a license or conditional contractor's permit held by a corporation that is required by federal law to file periodic reports with the United States Securities and Exchange Commission, the board may require submission of fingerprints and payment of the required fees of not more than three individuals who are officers of the corporation. (c) In this section, (1) “applicant” means all individuals whose names and addresses are required to be provided with an application for a new license or conditional contractor's permit under AS 04.09.710 ; (2) “criminal justice information” has the meaning given in AS 12.62.900 . Sec. 04.11.300. State trooper investigation. The state troopers shall assist the director in the investigation of applicants for new licenses and applicants for the transfer of existing licenses before the applications are considered by the board. Sec. 04.11.310. Notice of application. (a) Before a new license is issued, or transfer of location or transfer of a license to another person is approved, the applicant must post a copy of the application for 10 days at the location of the proposed licensed premises and at any additional locations designated by the board. The board may require the applicant (1) to provide a copy of the application to newspapers, radio and television stations for public service announcement or (2) to provide paid notice of the application once each week for three successive weeks in a newspaper or by radio. The notice required in this subsection must be in more than one language when the board decides it is necessary. (b) Upon receipt of an application for the issuance, renewal, relocation, or transfer of ownership of a license for premises or proposed premises that are located within one-half mile of the boundary of a community council established by municipal charter or ordinance, the board shall (1) immediately provide written notice of the application to (A) the community council; and (B) any nonprofit community organization that has requested notification in writing; and (2) at least 10 days before the date set for board action on the application provide written notice of the proposed action and the time and place for a hearing to (A) the community council; and (B) any nonprofit community organization that has requested notification in writing. (c) This section does not apply to a manufacturer direct shipment license issued under AS 04.09.370 . Sec. 04.11.315. False statement on application. 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 AS 11.56.200 . Article 4. Denial, Suspension, or Revocation of Licenses and Permits. Sec. 04.11.320. Denial of new licenses and permits. (a) An application requesting issuance of a new license or endorsement shall be denied if (1) the board finds, after review of all relevant information, that issuance of the license or endorsement would not be in the best interests of the public; (2) issuance of the license is prohibited by AS 04.11.410 , relating to location of premises near churches and schools; (3) the application has not been completed in accordance with AS 04.11.260 ; (4) issuance of the license or endorsement would violate the restrictions pertaining to the particular license or endorsement imposed under this title; (5) issuance of the license is prohibited under this title as a result of an election conducted under AS 04.11.507 ; (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 the endorsement have not been met; (7) issuance of the license is prohibited under AS 04.11.400 (a) or prohibition of issuance of the license is found necessary under AS 04.11.400 (b); (8) the application contains false statements of material fact; (9) the license is sought for the sale of alcoholic beverages in a first or second class city 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 (a)(2) or (3), or have voted to remove a restriction or prohibition on the sale of alcoholic beverages under AS 04.11.495 ; or (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 . (b) An application requesting issuance of a new permit shall be denied if (1) the board finds, after review of all relevant information, that issuance of the permit would not be in the best interests of the public; (2) the board finds that any of the statements made in the application are untrue; (3) the application has not been completed in accordance with AS 04.11.260 ; or (4) the permit is sought for the sale of alcoholic beverages in a first or second class city or 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 permit under AS 04.11.491 (a)(2) or (b)(2), or have voted to remove a restriction or prohibition on the sale of alcoholic beverages under AS 04.11.495 . Sec. 04.11.330. Denial of license or permit renewal. (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; (2) the license or endorsement has been revoked for any cause; (3) the applicant has not operated the licensed premises for at least 240 hours during each of the two preceding calendar years, unless the board determines that the licensed premises are under construction or cannot be operated through no fault of the applicant; (4) the board finds that issuance of an existing beverage dispensary tourism license under AS 04.09.350 or seasonal restaurant or eating place tourism license under AS 04.09.360 has not encouraged tourist trade; (5) the requirements of AS 04.11.420 — 04.11.450 relating to zoning, ownership of the license, and financing of the licensee have not been met; (6) renewal of the license or endorsement would violate the restrictions pertaining to the particular license or endorsement under this title or the license or endorsement has been operated in violation of a condition or restriction imposed by the board; (7) renewal of the license is prohibited under this title as a result of an election conducted under AS 04.11.507 ; or (8) the application has not been completed in accordance with AS 04.09.370 or AS 04.11.270 . (b) An application for renewal of a license may be denied if the applicant is delinquent in the payment of taxes, fees, or penalties due to the state or a local government if the tax liability or fees or penalties assessed arise in whole or in part out of the licensed business. (c) An application requesting renewal of a conditional contractor's permit shall be denied if (1) the board finds, after review of all relevant information, that issuance of the permit would not be in the best interests of the public; (2) the application has not been completed in accordance with AS 04.11.270 . (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 license issued under AS 04.09.270 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), (5), and (7) of this section do not apply to a manufacturer direct shipment license issued under AS 04.09.370 . Sec. 04.11.340. Denial of request for relocation. An application requesting approval for the relocation of licensed premises shall be denied if (1) the board finds, after review of all relevant information, that relocation of the license would not be in the best interests of the public; (2) the relocation is prohibited under AS 04.11.400 (a) or (b); (3) the license would be relocated out of the established village, incorporated city, unified municipality, or population area established under AS 04.11.400 (a) within which it is located except as provided under AS 04.11.400 (k); (4) transfer of ownership is to be made concurrently with the relocation of the licensed premises and a ground for denial of the transfer of ownership under AS 04.11.360 is presented; (5) the application has not been completed in accordance with AS 04.11.290 ; (6) relocation of the license would result in violation of a local zoning regulation or ordinance; (7) relocation of the license would violate the restrictions pertaining to the particular license imposed by this title; or (8) relocation of the license is prohibited under this title as a result of an election conducted under AS 04.11.507 . Sec. 04.11.360. Denial of transfer of a license to another person. An 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; (2) the application has not been completed in accordance with AS 04.11.280 ; (3) the application contains false statements of material fact; (4) the transferor has not paid all debts or taxes arising from the 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; or (B) the transfer is under a promise given as collateral by the 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; (5) transfer of the license to another person would result in violation of the provisions of this title relating to identity of licensees and financing of licensees; (6) transfer of the license to another person would violate the restrictions pertaining to the particular license under this title; (7) transfer of the license to another person is prohibited under the provisions of this title as a result of an election conducted under AS 04.11.507 ; or (8) the prospective transferee does not have the qualifications required under this title of an original applicant; however, an application may not be denied because a prospective transferee under AS 04.09.350 (c)(2) does not have the qualifications required under AS 04.09.350 (c)(1). Sec. 04.11.365. Licensed premises in multi-unit residential housing developments owned or financed by the Alaska Housing Finance Corporation. For premises located in a multi-unit residential housing development owned or 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 a (A) restaurant or eating place license under AS 04.09.210 ; or (B) seasonal restaurant or eating place tourism license under AS 04.09.360 ; or (2) the premises are covered by a restaurant endorsement under AS 04.09.450 . Sec. 04.11.370. Suspension and revocation of licenses and permits. (a) A license, endorsement, or permit shall be suspended or revoked if the board finds (1) misrepresentation of a material fact on an application made under this title or a regulation adopted under this title; (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 public; (3) failure on the part of the licensee to correct a defect that constitutes a violation of this title, a condition or restriction imposed by the board, a regulation adopted under this title, or other laws after receipt of notice issued by the board or its agent; (4) conviction of a licensee of a violation of this title, a regulation adopted under this title, or an ordinance adopted under AS 04.21.010 ; (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 or employee violates a law, regulation, or ordinance; (6) failure of the licensee to comply with the public health, fire, or safety laws and regulations in the state; (7) use of the licensed premises as a resort for illegal possessors or users of narcotics, prostitutes, or sex traffickers; in addition to any other legally competent evidence, the character of the premises may be proved by the general reputation of the premises in the community as a resort for illegal possessors or users of narcotics, prostitutes, or sex traffickers; (8) occurrence of illegal gambling within the limits of the licensed premises; (9) the licensee permitted a public offense involving moral turpitude to occur on the licensed premises; (10) violation by a licensee 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 ; 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 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. (b) If the board finds that a licensee or permittee has been convicted of a violation of a criminal law related to gambling under AS 11.66.200 — 11.66.280, the board shall suspend the license or permit for a period of at least six months if the offense is the person's first conviction or violation and shall revoke the license or permit if the offense is the person's second or subsequent conviction or violation. (c) If the board receives notice from the Department of Revenue that a licensee or permittee has violated a provision of AS 05.15 related to gambling, the board (1) may suspend the license or permit; and (2) shall suspend the license or permit for a period of at least 30 days if the offense is the person's second or subsequent violation of AS 05.15 related to gambling. Article 5. Restrictions on Issuance and Transfer of Licenses. Sec. 04.11.390. Residence requirements. [Repealed, § 19 ch 74 SLA 1999.] Sec. 04.11.395. Conditions or restrictions imposed on a license, endorsement, or permit. (a) The board may, in the best interests of the public, impose conditions or restrictions on a license, endorsement, or permit issued under this chapter. (b) Except for a conditional contractor's permit issued under AS 04.09.710 , the board may delegate to the director the authority to impose, in the best interests of the public, conditions or restrictions on a permit issued under this chapter. Sec. 04.11.400. Population limitations. (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 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 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; (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 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. (b) If the radius described in (a)(1) of this section encompasses all of an established village, incorporated city, or unified municipality and the population resident inside and outside the established village, incorporated city, or unified municipality but inside the radius described in (a)(1) of the section is less than 3,000, the board may deny the issuance or relocation of the license. (c) [Repealed, § 88 ch 74 SLA 1985.] (d) [Repealed, § 164 ch 8 SLA 2022.] (e) [Repealed, § 165 ch 8 SLA 2022.] (f) An application requesting a transfer of location of licensed premises limited under (a) or (b) of this section shall be granted without regard to (a) of this section if the new location is less than one mile from the original location and (1) no ground for denial exists under AS 04.11.340 (1) or (3); and (2) relocation of the licensed premises is necessary due to (A) termination of a lease or rental agreement; (B) condemnation of the premises; (C) the substantial destruction of the premises by any cause. (g) [Repealed, § 165 ch 8 SLA 2022.] (h) [Repealed, § 164 ch 8 SLA 2022.] (i) This section does not apply to a (1) brewery manufacturer license issued under AS 04.09.020 ; (2) winery manufacturer license issued under AS 04.09.030 ; (3) distillery manufacturer license issued under AS 04.09.040 ; (4) general wholesale license issued under AS 04.09.100 ; (5) limited wholesale brewed beverage and wine license issued under AS 04.09.110 ; (6) outdoor recreation lodge license issued under AS 04.09.280 ; (7) destination resort license issued under AS 04.09.310 ; (8) beverage dispensary tourism license issued under AS 04.09.350 ; (9) seasonal restaurant or eating place tourism license issued under AS 04.09.360 ; (10) manufacturer direct shipment license issued under AS 04.09.370 ; (11) conditional contractor's permit issued under AS 04.09.710 . (j) [Repealed, § 164 ch 8 SLA 2022.] (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, 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 or more into or within an incorporated city in the borough. 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 and the governing bodies of both the borough and the incorporated city approve the relocation. The board may allow not more than three relocations into each city under this subsection each decade. In this subsection, “decade” means each 10-year period beginning April 1 in a year ending in zero. (l) In (a)(1) of this section, “population” includes only those persons residing inside the radius not later than the date the application is received by the board and not earlier than 60 days before the application is received by the board. (m) In (a)(2) and (3) of this section, “population” includes only those persons residing inside the established village, incorporated city, unified municipality, or organized borough as of December 31 of the year preceding the date of application. (n) In this section “radius” means the circular area or distance limited by the sweep of a straight line originating at the proposed licensed premises and extending outward. Sec. 04.11.405. Petition for additional restaurant or eating place licenses for certain local governing bodies. (a) A first class city, a home rule city, or a unified municipality may submit a resolution to the board, adopted by its legislative body, petitioning the board for the issuance of additional restaurant or eating place licenses under AS 04.09.210 that exceed the limits under AS 04.11.400 (a) in accordance with this section. (b) The board, following a public hearing, may issue one or more additional restaurant or eating place licenses under AS 04.09.210 , within the boundaries of the municipality, if the board finds that (1) the municipality (A) serves as a center for commercial activity within and 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; (B) maintains a local law enforcement department; (C) exercises planning or land use authority; and (D) at the time of the petition, meets or exceeds the maximum limit under AS 04.11.400 (a) for restaurant or eating place licenses issued under AS 04.09.210 ; (2) the number of additional licenses does not exceed the number of additional licenses requested by the municipality in the petition; and (3) granting the additional licenses is in the public interest. (c) A resolution submitted by a municipality under (a) of this section must include (1) information demonstrating that the petitioner meets the criteria in (b) of this section; (2) the most recent estimate of the number of people who claim residency or work outside the boundaries of the municipality and who are served by the municipality, including the (A) population located outside the boundaries of the municipality that relies on the municipality for goods and services; (B) visitor population; and (C) nonresident worker population that resides in the municipality, but that is not counted in the latest federal or state census for the municipality; (3) the number of existing restaurant or eating place licenses (A) within the boundaries of the municipality; (B) in a geographic area that the municipality serves under (2) of this subsection; (4) information showing that the number of additional licenses requested does not exceed one license for each 1,500 population of the population identified under (2) of this subsection; and (5) additional justification, as necessary, to demonstrate that granting of the additional licenses is in the public interest. (d) If the board grants a petition for additional restaurant or eating place licenses under this section to a municipality, the board may not authorize additional restaurant or eating place licenses to the same municipality under this section for the following year. Sec. 04.11.410. Restriction of location near churches and schools. (a) A beverage dispensary or package store license may not be issued and the location of an existing license may not be transferred if the licensed premises would be located in a building the public entrance of which is within 200 feet of a school ground or a church building in which religious services are regularly conducted, measured by the shortest pedestrian route from the outer boundaries of the school ground or the public entrance of the church building. However, a license issued before the presence of either cause of restriction within 200 feet of the licensed premises may be renewed or transferred to a person notwithstanding this subsection. (b) If a beverage dispensary or package store license for premises located within 200 feet of a school ground or church building in which religious services are regularly conducted is revoked, expires, or is transferred to another location, a beverage dispensary or package store license may not be issued or transferred to the formerly licensed premises until the cessation of either cause of restriction. Sec. 04.11.420. Zoning limitations. (a) A person may not be issued a new license, endorsement, or permit or 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 unless a variance of the regulation or ordinance has been approved. (b) The municipality shall inform the board of zoning regulations or ordinances that prohibit the sale or consumption of alcoholic beverages. (c) Notwithstanding (a) of this section, a license may be renewed if (1) the license was issued before the effective date of a change to a local zoning regulation or ordinance that would prohibit the renewal; and (2) at the time the license was issued, the license conformed with local zoning regulations and ordinances. Sec. 04.11.430. Person and location. (a) Each license shall be issued to a specific individual or individuals, to a partnership, including a limited partnership, to a limited liability organization, to a corporation, to a government entity, or to a tribal organization. If the license is issued to a corporation or a limited liability organization, the registered agent of the corporation or limited liability organization may be either an individual resident of the state or a domestic corporation authorized to transact business in this state whose business office is the same as the registered office. (b) Except for a license authorizing the sale of alcoholic beverages on a common carrier, a specific location shall be indicated on the license, endorsement, or permit as the licensed premises, the principal address of which shall be indicated on the license, endorsement, or permit. The mailing address, telephone number, and electronic mailing address of a licensee or, if the licensee is a corporation, the address, telephone number, and electronic mailing address of the registered office of the corporation must be kept current and on file in the main office of the board. Sec. 04.11.450. Prohibited financial interest. (a) A person other than a licensee may not have a direct or indirect financial interest in the business for which a license is issued. (b) A person who is a representative or owner of a wholesale business licensed under AS 04.09.100 or 04.09.110 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 issued under AS 04.09.200 — 04.09.370. (c) A license may not be leased by a licensee to another person, partnership, limited liability organization, or corporation. (d) For the purposes of this section, a lessor under a graduated or percentage lease-rent agreement involving premises licensed under this title does not hold a financial interest in the business. (e) A holder of either a general wholesale license or a limited wholesale brewed beverage and wine license may not be employed by or act as the agent or employee of the holder of a manufacturer license under AS 04.09.020 — 04.09.040 or a retail license under AS 04.09.200 — 04.09.370.

(f) The holder of a manufacturer license that annually produces in total 300,000 barrels or more of brewed beverages or mead or cider containing less than 8.5 percent alcohol by volume, 50,000 nine-liter-equivalent cases or more of wine, sake, or mead or cider containing 8.5 percent or more alcohol by volume, or 50,000 nine- liter-equivalent cases or more of distilled spirits may not be issued, solely or together with others, a license under AS 04.09.100 — 04.09.370. (g) 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 (1) the holder of the manufacturer's license; and (2) an officer, director, agent, employee, or affiliate of the holder; in this paragraph, “affiliate” means a person that directly or indirectly, through one or more intermediaries, controls, or is controlled by, or is under common control with, a corporation. (h) In this section, “direct or indirect financial interest” means holding a legal or equitable interest in the operation of a business licensed under this title. However, credit extended by a distiller, a brewery, or a winery to a wholesaler, or credit extended by a wholesaler to persons licensed under this title, or a consulting fee received from a person licensed under this title, is not considered a financial interest in a business licensed under this title. Sec. 04.11.460. Prior public approval. (a) A new license or the transfer of location of an existing license may not be approved by the board in an area outside but within 50 miles of the boundaries of a municipality unless a petition asking that the license be issued or transferred within the area containing signatures of a majority of the permanent residents residing within one mile of the proposed premises is filed with the board. (b) A license may not be issued in an area that is 50 miles or more from the boundaries of a municipality unless a petition asking that the license be issued within the area containing the signatures of two-thirds of the permanent residents residing within a radius of five miles of the United States post office station nearest to the proposed licensed premises, is filed with the board. If there are two or more United States post office stations in the vicinity of the proposed licensed premises, the nearest to the premises constitutes the point of beginning under this subsection. If there is no United States post office station within a radius of five miles of the proposed licensed premises, the applicant must obtain the signatures of two-thirds of the permanent residents residing within a five mile radius of the proposed licensed premises. A petition is not required for the renewal of a license issued in accordance with this subsection unless specifically required by the board. (c) This section does not apply to a manufacturer direct shipment license issued under AS 04.09.370 . (d) In this section, “permanent resident” means a person 21 years of age or older who has established a permanent place of abode. Article 6. Procedures for Public Influence. Sec. 04.11.470. Objection. 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 endorsement, or for issuance of a permit by serving upon the applicant and the board the reasons for the objection. The board shall consider the objections and testimony received at a hearing conducted under AS 04.11.510 (b)(2) when it considers the application. An objection and the record of a hearing conducted under AS 04.11.510 (b)(2) shall be retained as part of the board's permanent record of its review of the application. Sec. 04.11.480. Protest. (a) A local governing body may protest the issuance, renewal, relocation, or transfer to another person of a license, issuance, renewal, or transfer to another person of a license with one or more endorsements, or issuance of an endorsement by sending the board and the applicant a protest and the reasons for the protest within 60 days of the date of the notice of filing of the application. A protest received after the 60-day period may not be accepted by the board, and in no event may a protest cause the board to reconsider an approved renewal, relocation, or transfer. The local governing body may protest the continued operation of a license or endorsement during the second year of the biennial license period by sending the board and the licensee a protest and the reasons for the protest by January 31 of the second year of the license. The procedures for action on a protest of continued operation of a license or endorsement are the same as the procedures for action on a protest of a renewal application. The board shall consider a protest and testimony received at a hearing conducted under AS 04.11.510 (b)(2) or (4) when it considers the application or continued operation, and the protest and the record of the hearing conducted under AS 04.11.510 (b)(2) or (4) shall be kept as part of the board's permanent record of its review. If an application 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 unreasonable. (b) If the permanent residents residing outside of but within two miles of an incorporated city or an established village wish to protest the issuance, renewal, or transfer of a license or a license with one or more endorsements within the city or village, they shall file with the board a petition meeting the requirements of AS 04.11.510 (b)(3) requesting a public hearing not later than 30 days after the posting of notice required under AS 04.11.310 , or by December 31 of the year application is made for renewal of a license. The board shall consider testimony received at a hearing conducted under AS 04.11.510 (b)(3) when it considers the application, and the record of a hearing conducted under AS 04.11.510 (b)(3) shall be retained as part of the board's permanent record of its review of the application. (c) A local governing body may recommend that a license be issued, renewed, relocated, or transferred, or that a license with one or more endorsements be issued, renewed, or transferred to another person, with conditions. The board shall consider recommended conditions and testimony received at a hearing conducted under AS 04.11.510 (b)(2) or (4) when it considers the application or continued operation, and the recommended conditions and the record of the hearing conducted under AS 04.11.510 (b)(2) or (4) shall be kept as part of the board's permanent record of its review. If the local governing body recommends conditions, the board shall impose the recommended conditions unless the board finds that the recommended conditions are arbitrary, capricious, or unreasonable. If a condition recommended by a local governing body is imposed on a licensee, the local governing body shall assume responsibility for monitoring compliance with the condition, except as otherwise provided by the board. (d) In addition to the right to protest under (a) of this section, a local governing body may notify the board that the local governing body has determined that a licensee has violated a provision of this title or a condition imposed on the licensee by the board. Unless the board finds that the local governing body's determination is arbitrary, capricious, or unreasonable, the board shall prepare the determination as an accusation against the licensee under AS 44.62.360 and conduct proceedings to resolve the matter as described under AS 04.11.510 (c). (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, renewal, relocation, or transfer of a license. Sec. 04.11.490. Prohibition of the sale of alcoholic beverages. [Repealed, § 69 ch 101 SLA 1995.] Sec. 04.11.491. Local options. (a) If a majority of the persons voting on the question vote to approve the option, a municipality shall adopt a local option to prohibit (1) the sale of alcoholic beverages; (2) the sale of alcoholic beverages except by one or more of the following listed on the ballot: (A) a restaurant or eating place licensee; (B) a beverage dispensary licensee; (C) a package store licensee; (D) a caterer holding a beverage dispensary caterer's permit under AS 04.09.610 to sell alcoholic beverages at a site within the municipality who is also licensed under a beverage dispensary license for premises outside of the municipality; (E) a winery manufacturer licensee; (F) a winery manufacturer licensee, except that sales may occur only to a person licensed under this title or in another state or country; (G) an outdoor recreation lodge licensee; or (H) a package store licensee limited to selling only beer and wine; (3) the sale of alcoholic beverages except on premises operated by the municipality and under a type of licensed premises listed on the ballot, that may include one or more of the following: (A) a restaurant or eating place license; (B) a beverage dispensary license; or (C) a package store license; (4) the sale and importation of alcoholic beverages; or (5) the sale, importation, and possession of alcoholic beverages. (b) If a majority of the persons voting on the question vote to approve the option, an established village shall exercise a local option to prohibit (1) the sale of alcoholic beverages; (2) the sale of alcoholic beverages except by one or more of the following listed on the ballot: (A) a restaurant or eating place licensee; (B) a beverage dispensary licensee; (C) a package store licensee; (D) a caterer holding a beverage dispensary caterer's permit under AS 04.09.610 to sell alcoholic beverages at a site within the established village who is also licensed under a beverage dispensary license for premises outside of the established village; (E) a winery manufacturer licensee; (F) a winery manufacturer licensee, except that sales may occur only to a person licensed under this title or in another state or country; (G) an outdoor recreation lodge licensee; or (H) a package store licensee limited to selling only beer and wine; (3) the sale and importation of alcoholic beverages; or (4) the sale, importation, and possession of alcoholic beverages. (c) A ballot question to adopt a local option under this section must at least contain language substantially similar to: “Shall (name of municipality or village) adopt a local option to prohibit (local option under (a) or (b) of this section)? (yes or no).” (d) The ballot for an election on the option set out in (a)(2)(A), (a)(3)(A), or (b)(2)(A) of this section must include a summary explanation of the authority to sell alcoholic beverages given to a restaurant or eating place under AS 04.09.210 (a). The ballot for an election on the option set out in (a)(2)(B) or (D), (a)(3)(B), or (b)(2)(B) or (D) of this section must include a statement that a beverage dispensary license is commonly known as a “bar” and a summary explanation of the authority to sell alcoholic beverages given to a beverage dispensary licensee under AS 04.09.200 . 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 (e) If a municipality dissolves under AS 29.06.450 (a) or (b), a local option adopted by the municipality under (a) of this section shall continue in effect as the corresponding local option under (b) of this section for an established village having the same perimeter as the previous boundaries of the municipality. A license for premises operated by the municipality under AS 04.11.505 expires when the municipality dissolves. (f) A municipality or established village that has adopted a local option under (a)(1), (2), or (3) or (b)(1) or (2) of this section may designate a site for the delivery of alcoholic beverages to individuals in the area or a site for a person to bring alcoholic beverages if the alcoholic beverages are imported into the area. This subsection does not apply to the delivery or importation of (1) one liter or less of distilled spirits, two liters or less of wine, or one gallon or less of malt beverages; or (2) alcoholic beverages to a premises licensed under (a)(2) — (3) or (b)(2) of this section. (g) If a municipality or established village has adopted a local option under (a)(1), (2), (3), or (4), or (b)(1), (2), or (3) of this section, the municipality or established village, as part of the local option question or questions placed before the voters, may (1) adopt an amount of alcoholic beverages that may be imported that is less than the amounts set out in AS 04.09.460 (e); (2) adopt an amount of alcoholic beverages that would give rise to a presumption that the person possessed the alcoholic beverages for sale; the amounts adopted under this paragraph may be lower than those set out in AS 04.11.010 (c); (3) opt to not apply a class C felony to violations of AS 04.16.051 that apply solely by reason of the municipality or established village adopting a local option under this section. Sec. 04.11.492. Community liquor license; complete prohibition on sales. [Repealed, § 69 ch 101 SLA 1995.] Sec. 04.11.493. Change of local option. (a) If a majority of persons voting on the question vote to approve a different local option, a municipality or established village shall change a local option previously adopted under AS 04.11.491 to the different approved option. (b) A ballot question to change a local option under this section must at least contain language substantially similar to: “Shall (name of municipality or village) change the local option currently in effect, that prohibits (current local option under AS 04.11.491 ), and adopt in its place a local option to prohibit (proposed local option under AS 04.11.491 )? (yes or no).” Sec. 04.11.494. Operation of delivery sites. [Repealed, § 15 ch 63 SLA 2001 as amended by § 1 ch 28 SLA 2004.] Sec. 04.11.495. Removal of local option. (a) If a majority of the persons voting on the question vote to remove the option, a municipality or established village shall remove a local option previously adopted under AS 04.11.491 . The option is repealed effective the first day of the month following certification of the results of the election. (b) A ballot question to remove a local option under this section must at least contain language substantially similar to: “Shall (name of municipality or village) remove the local option currently in effect, that prohibits (current local option under AS 04.11.491 ), so that there is no longer any local option in effect? (yes or no).” (c) When issuing a license in the area that has removed a local option, the board shall give priority to an applicant who was formerly licensed and whose license was not renewed because of the results of the previous local option election. However, an applicant described in this subsection does not have a legal right to a license and the board is not required to approve the application. Sec. 04.11.496. Prohibition of sale and importation of alcoholic beverages. [Repealed, § 69 ch 101 SLA 1995.] Sec. 04.11.497. Effect on licenses of prohibition of sale. If a majority of voters vote to prohibit the sale of alcoholic beverages under AS 04.11.491 (a)(1), (a)(4) or (5), (b)(1), or (b)(3) or (4), the board may not issue, renew, or transfer, between persons or locations, a license for premises located within the boundaries of the municipality and in unincorporated areas within five miles of the boundaries of the municipality or within the perimeter of the established village. A license that may not be renewed because of a local option election held under this section is void 90 days after the results of the election are certified. A license that expires during the 90 days after the results of a local option election are certified may be extended, until it is void under this section, by payment of a prorated portion of the biennial license fee. Sec. 04.11.498. Prohibition of possession of alcoholic beverages. [Repealed, § 69 ch 101 SLA 1995.] Sec. 04.11.499. Prohibition of importation or purchase after election. (a) If a majority of the voters vote to prohibit the importation of alcoholic beverages under AS 04.11.491 (a)(4) or (5) or (b)(3) or (4), a person, beginning on the first day of the month following certification of the results of the election, may not knowingly send, transport, or bring an alcoholic beverage into the municipality or established village, unless the alcoholic beverage is sacramental wine to be used for bona fide religious purposes based on tenets or teachings of a church or religious body, is limited in quantity to the amount necessary for religious purposes, and is dispensed only for religious purposes by a person authorized by the church or religious body to dispense the sacramental wine. (b) A person who resides in a municipality or established village that has adopted a local option under AS 04.11.491 (a) or (b) may not purchase alcohol from another person who has sent, transported, or brought an alcoholic beverage into the municipality or established village in violation of the local option. (c) In this section, (1) “bring” means to carry or convey or to attempt or solicit to carry or convey; (2) “send” means to cause to be taken or distributed or to attempt or solicit to cause to be taken or distributed, and includes use of the United States Postal Service; (3) “transport” means to ship by any method, and includes delivering or transferring or attempting or soliciting to deliver or transfer an alcoholic beverage to be shipped to, delivered to, or left or held for pickup by any person. Sec. 04.11.500. Prohibition of the sale of alcoholic beverages except by selected licenses. [Repealed, § 69 ch 101 SLA 1995.] Sec. 04.11.501. Prohibition of possession after election. (a) If a majority of the voters vote to prohibit the possession of alcoholic beverages under AS 04.11.491 (a)(5) or (b)(4), a person may not knowingly possess an alcoholic beverage in the municipality or established village, unless the alcoholic beverage is sacramental wine to be used for bona fide religious purposes based on tenets or teachings of a church or religious body, is limited in quantity to the amount necessary for religious purposes, and is dispensed only for religious purposes, by a person recognized by the church or religious body as authorized to dispense the wine. (b) If there are licensed premises within the municipality or established village, the prohibition on possession is effective beginning 90 days after the results of the election are certified. If there are no licensed premises within the municipality or established village, the prohibition on possession is effective beginning 60 days after the results of the election are certified. (c) Upon the adoption by a municipality of a local option under AS 04.11.491 (a)(5), an ordinance is adopted containing the provisions of this section. (d) In this section, “possession” means having physical possession of or exercising dominion or control over an alcoholic beverage, but does not include having an alcoholic beverage within the digestive system of a person. Sec. 04.11.502. Procedure for local option elections. [Repealed, § 69 ch 101 SLA 1995.] Sec. 04.11.503. Effect on licenses of restriction on sale. If a majority of the voters vote under AS 04.11.491 (a)(2) or (b)(2) to prohibit sale of alcoholic beverages except by the type or types of licensees or permit holders listed on the ballot, the board may not issue, renew, or transfer between persons or locations a license for premises located within the boundaries of the municipality and in unincorporated areas within five miles of the boundaries of the municipality or within the perimeter of the established village, except the type or types of licenses listed on the ballot. A license in effect within the boundaries of the municipality or perimeter of the established village, and in unincorporated areas within five miles of the boundaries of the municipality, except the type of license listed on the ballot, is void 90 days after the results of the election are certified. A license that expires during the 90 days after the results of a local option election are certified may be extended, until it is void under this section, by payment of a prorated portion of the biennial license fee. Sec. 04.11.504. Reinstatement of licenses. [Repealed, § 69 ch 101 SLA 1995.] Sec. 04.11.505. Licensing after prohibition on sale except in premises operated by municipality. (a) If a majority of the voters vote under AS 04.11.491 (a)(3) to prohibit the sale of alcoholic beverages except on premises operated by the municipality, the board may not issue, renew, or transfer between persons or locations a license for premises located within the boundaries of a municipality and in unincorporated areas within five miles of the boundaries of the municipality, with the exception of the type of license listed on the ballot and operated under a license held by the municipality. A license in effect is void 90 days after the results of the election are certified. A license that expires during the 90 days after the results of a local option election are certified may be extended, until it is void under this subsection, by payment of a prorated portion of the biennial license fee. (b) The local governing body of a municipality shall apply for a license to operate the type of licensed premises listed on the ballot under AS 04.11.491 (a)(3) and approved by a majority of the voters. The municipality shall operate the premises subject to the conditions and fees applicable to the type of license. Nothing in this section precludes a municipality from applying to be a licensee under other provisions of this title. Sec. 04.11.506. Notice of the results of a local option election. [Repealed, § 69 ch 101 SLA 1995.] Sec. 04.11.507. Procedure for local option elections. (a) Elections to adopt a local option under AS 04.11.491 , change a local option under AS 04.11.493 , or remove a local option under AS 04.11.495 , shall be conducted as required in this section. (b) Upon receipt of a petition of a number of registered voters equal to 35 percent or more of the number of votes cast at the last regular municipal election, the local governing body of a municipality shall place upon a separate ballot at the next regular election, or at a special election, whichever local option, change in local option, or removal of local option constitutes the subject of the petition. The local governing body shall conduct the election under the election ordinance of the municipality. (c) Upon receipt of a petition of 35 percent or more of the registered voters residing within an established village, the lieutenant governor shall place upon a separate ballot at a special election the local option, change in local option, or removal of local option that constitutes the subject of the petition. The lieutenant governor shall conduct the election under AS 15 . (d) A petition filed with the local governing body of a municipality under (b) of this section, that places on the ballot the option set out in AS 04.11.491 (a)(5), constitutes a proposed ordinance of the municipality. (e) AS 29.26.110 — 29.26.160 apply to a petition under (b) of this section in a general law municipality except the (1) number of required signatures is determined under (b) of this section rather than under AS 29.26.130 ; (2) application filed under AS 29.26.110 must at least contain language substantially similar to the questions set out under AS 04.11.491 — 04.11.495 rather than containing an ordinance or resolution; (3) petition must at least contain language substantially similar to the questions set out under AS 04.11.491 — 04.11.495 rather than material required under AS 29.26.120 (a)(1) and (2). (f) Notwithstanding any other provisions of law, an election under (b) or (c) of this section to remove a local option or to change to a less restrictive option than the local option previously adopted under AS 04.11.491 may not be conducted during the first 24 months after the local option was adopted or more than once in a 36-month period. (g) Notwithstanding AS 29.26.140 (a), after a petition has been certified as sufficient to meet the requirements of (b) or (c) of this section, another petition may not be filed or certified until after the question presented in the first petition has been voted on. Only one local option question may be presented in an election. Sec. 04.11.508. Establishment of perimeter of established village. (a) Except as provided under (b) and (c) of this section, for purposes of AS 04.11.491 , 04.11.497, and 04.11.503, the perimeter of an established village is a circle around the established village that includes an area within a five-mile radius of the post office of the established village. If the established village does not have a post office, the perimeter of an established village is a circle around the established village that includes an area within a five-mile radius of another site selected by the local governing body or by the board if the established village does not have a local governing body. (b) If the perimeter of an established village determined under (a) of this section includes any area that is (1) within a municipality (A) that has adopted a local option, the local option adopted by the municipality applies in the overlapping area; (B) the local option adopted by the established village does not apply in the overlapping area; (2) within the perimeter of another established village and, if the other established village has (A) also adopted a local option under AS 04.11.491 , the local option of the established village that is less restrictive applies in the overlapping area; (B) not adopted a local option under AS 04.11.491 , the local option does not apply in the overlapping area. (c) If the board determines that the perimeter of an established village as provided under (a) and (b) of this section does not accurately reflect the perimeter of the established village, the board may establish the perimeter of the established village and the areas of overlapping perimeter described under (b) of this section for purposes of applying a local option selected under this chapter. Sec. 04.11.509. Notice of the results of a local option election. (a) If a majority of the voters vote to prohibit, change, or remove a local option under AS 04.11.491 — 04.11.495, the clerk of the municipality, or, if the election is in an established village, the lieutenant governor shall notify the board of the results of the election immediately after the results are certified. The board shall immediately notify the Department of Law and the Department of Public Safety of the results of the election. (b) If a majority of the voters vote to prohibit the importation or possession of alcoholic beverages under AS 04.11.491 (a)(4) or (5) or (b)(3) or (4), the following actions in addition to those prescribed in (a) of this section shall be taken before the date the prohibition becomes effective: (1) the board shall notify, by certified mail, all package store licensees who sell alcoholic beverages in response to a written solicitation of the local option; and (2) the municipality or established village shall post public notice of the prohibition in a central location in the municipality or village. Article 7. Board Procedures. Sec. 04.11.510. Procedure for action on license applications, suspensions, and revocations. (a) Unless a legal action relating to the license, applicant, or premises to be licensed is pending, the board shall decide whether to grant or deny an application within 90 days of receipt of the application at the main office of the board. However, the decision may not be made before the time allowed for protest under AS 04.11.480 has elapsed, unless waived by the municipality. (b) The board may review an application for the issuance, renewal, transfer of location, or transfer to another person of a license without affording the applicant notice or hearing, except (1) if an application is denied, written notice of denial shall be furnished immediately to the applicant stating the reason for the denial in clear and concise language; the notice of denial must inform the applicant that the applicant is entitled to submit a request to the director, within 15 days after receiving the notice of denial, for an informal conference with either the director or the board, and that, if not satisfied by the informal conference, the applicant is then entitled to a formal hearing conducted by the office of administrative hearings ( AS 44.64.010 ); the director shall respond to a request for an informal conference or a formal hearing in a timely manner and shall hold an informal conference within 15 days after receiving a request for an informal conference unless the applicant and the director agree in writing to waive or extend the time limit; if the applicant requests an informal conference, the running of the period for requesting a formal hearing is tolled from the date the director receives the request for the conference until the day after the date of the conference; if the applicant requests a formal hearing, the office of administrative hearings shall adhere to AS 44.62.330 — 44.62.630 (Administrative Procedure Act); all interested persons may be heard at the hearing; (2) the board may, on its own initiative or in response to an objection or protest, hold a hearing to ascertain the reaction of the public or a local governing body to an application if a hearing is not required under this subsection; the board shall send notice of a hearing conducted under this paragraph 20 days in advance of the hearing to the person who filed the objection or protest, to a community council, if the licensed premises or proposed licensed premises described in the application is located within the boundaries of the community council, and to each nonprofit community organization entitled to notification under AS 04.11.310 (b); (3) if a petition containing the signatures of 35 percent of the adult residents having a permanent place of abode outside of but within two miles of an incorporated city or an established village is filed with the board, the board shall hold a public hearing on the question of whether the issuance, renewal, or transfer of the license in the city or village would be in the public interest; (4) if a protest to the issuance, renewal, transfer of location or transfer to another person of a license made by a local governing body is based on a question of law, the board shall hold a public hearing. (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 (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 an opportunity to informally confer with the director or the board. Notice of the opportunity for an informal conference shall be served on the licensee along with the accusation. The director shall respond to a request for an informal conference or a formal hearing in a timely manner. The director shall hold an informal conference within 15 days after receiving a request for an informal conference unless the applicant and the director agree in writing to waive or extend the time limit. After the informal conference, the board shall hold a formal hearing on the accusation at the next regularly scheduled board meeting that occurs 20 days or more after service of the accusation. If the grounds for suspension or revocation are under AS 04.11.370 (a)(4), the licensee is not entitled to notice and hearing under AS 44.62.360 — 44.62.630 on the merits of the suspension or revocation. However, the board shall afford the licensee notice and hearing on the issue of what administrative sanction to impose under AS 04.16.180 . (d) [Repealed, § 69 ch 101 SLA 1995.] Sec. 04.11.520. Notice to local governing body. 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 an established village, an incorporated city, an organized borough, or a unified municipality, the board shall notify the local governing body in writing within 10 business days so that the local governing body may protest under AS 04.11.480 . Sec. 04.11.525. Notice to community council and others. On receipt of an application for the issuance, renewal, relocation, or transfer of the ownership of a license, the board shall provide written notice under AS 04.11.310 (b). Sec. 04.11.530. Consideration of reports. A license may not be suspended or revoked under AS 04.11.370 (a)(4) or (5) unless the board considers the reports prepared by arresting and investigating officers and the sentencing report sent to the board under AS 12.55.025 (b). Sec. 04.11.535. Suspension and revocation based on acts of employees. (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 . (b) If the board suspends or revokes a license on grounds that a licensee knowingly allowed or recklessly or with criminal negligence failed to act in accordance with the duty prescribed under AS 04.21.030 resulting in unlawful action of an agent or employee, the board shall file a criminal complaint charging the licensee with violation of AS 04.16.150 . Sec. 04.11.537. Application of precedent. Article 8. Expiration of Licenses. Sec. 04.11.540. License, endorsement, and conditional contractor's permit renewal and expiration. Notwithstanding AS 04.11.680 , an application for renewal of a license, an endorsement, or a conditional contractor's permit under AS 04.09.710 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. If a complete application for renewal has not been filed by February 28 or the required fees and the penalty fees have not been paid by that date, the license, endorsement, or conditional contractor's permit expires at 12:00 midnight February 28. A new license may not be issued to the holder of an expired license for the same premises except on proof satisfactory to the board of good cause for the failure to file and pay. Sec. 04.11.550. Notice of expiration. On or before February 15, the director shall mail a notice of expiration to each licensee who has not either (1) filed an application to renew a license, along with any applicable affidavits and all fees due, or (2) notified the director of an intent not to do so. Failure of the director to mail this notice of expiration does not waive the requirement that the application for renewal be filed by February 28. Article 9. Miscellaneous Provisions. Sec. 04.11.560. Appeals. (a) An action of an officer, employee, or agent of the board relating to the administration or enforcement of this title may be appealed to the board by the aggrieved party. (b) A decision by the board relating to the issuance, renewal, transfer, relocation, suspension, or revocation of a license or an endorsement under this title may be appealed to the superior court under AS 44.62.560 . Sec. 04.11.570. Refund and forfeiture of fees. (a) If an application for a license or endorsement is denied, the board shall refund the license fee but not the application fee. (b) A license or endorsement fee may not be refunded after the license or endorsement has been issued unless the board determines it has erred in the issuance through no fault of the applicant. (c) If a license, endorsement, or permit is revoked on grounds that statements made in the application are untrue, the fee paid by the applicant is forfeited to the state. Sec. 04.11.575. Civil fine. (a) Except as provided in (c) of this section, the board may, in addition to any other penalties imposed under this title, impose a civil fine upon a licensee that the board determines, at a proceeding under AS 04.11.510 (c), has violated a provision of this title, a regulation adopted under this title, or an ordinance adopted in accordance with AS 04.21.010 . (b) The board shall by regulation adopt a schedule of fines that a licensee may be required to pay under this section. A fine may not exceed the greater of (1) $50,000; or (2) an amount that is three times the monetary gain realized by the licensee as a result of the violation. (c) If the board is proceeding under AS 04.11.370 (a)(4), the board may not impose a civil fine exceeding the amount specified under AS 12.55.035 applicable to the offense for which the licensee was convicted, or with the licensee's consent, the limit imposed under (b) of this section. Sec. 04.11.580. Surrender or destruction of license. (a) A license issued under this title shall, if the board so directs, be surrendered on demand to a peace officer, agent, or officer of the board. (b) The licensee shall surrender a current license to the board not later than 10 days after the loss or vacation of the licensed premises. (c) If the license is destroyed, the licensee shall notify the board. Sec. 04.11.590. Disposition of money. (a) Money collected from licenses, endorsements, permits, and civil fines under this title shall be transferred by the board to the Department of Commerce, Community, and Economic Development and deposited in the general fund. (b) A fee prescribed by the board in addition to fees authorized under this title shall be transferred to the Department of Commerce, Community, and Economic Development and deposited in the general fund. (c) The annual estimated balance in the account maintained by the commissioner of administration under AS 37.05.142 may be used by the legislature to make appropriations to the Department of Commerce, Community, and Economic Development to carry out the purposes of AS 04.06 . Sec. 04.11.610. Allocation to municipalities. (a) An amount equal to the sum of the biennial license fees, excluding annual wholesale fees and biennial wholesale license fees, collected within a municipality shall be allocated semi-annually to the municipality. (b) If the officers of a municipality fail to actively enforce local ordinances, this title, laws of the United States and the state, and the regulations relating to the manufacture and sale of alcoholic beverages in the state, or fail to provide the director with a report of contacts with licensed establishments, educational activities concerning this title and local ordinances, and violations of this title occurring in the municipality, at the time and in the format as may be required by regulation adopted by the board, the commissioner of commerce, community, and economic development may deny the allocation provided for under (a) of this section until the board finds the enforcement of the ordinances, laws, and regulations is resumed or the report is provided. (c) The Department of Commerce, Community, and Economic Development shall recover any funds erroneously allocated under (a) of this section. The Department of Commerce, Community, and Economic Development shall schedule repayments of erroneously allocated funds over a sufficient period of time to minimize financial hardship to the municipality involved. Sec. 04.11.630. Accessibility of license and licensed premises to inspection. (a) A licensee shall, upon request, make the licensed premises and places authorized for storage under AS 04.21.060 available for inspection by officers charged with the enforcement of this title, including members of the board and the director or an employee of the director, during all regular business hours. (b) A license, endorsement, or permit issued under this title shall be posted within the licensed premises or designated premises so as to be easily available for inspection upon request by a peace officer or other person during regular business hours or during the period specified on the permit. Sec. 04.11.660. License a privilege. (a) A license issued under this title is a personal privilege, not a property right. (b) The privilege conferred upon the licensee is personal in nature and affords protection to the licensee only. Sec. 04.11.670. Foreclosure. A license issued under this title is not subject to foreclosure, and may not be used as collateral to secure a debt. However, if a license is transferred to another person, the transferor may secure payment for real and personal property conveyed to the transferee upon the promise of the transferee to transfer the license back to the transferor upon default in payment. Sec. 04.11.680. Duration of licenses, endorsements, and permits. (a) Upon application, the board may issue a seasonal license under this title that is effective for the intervals stated on the license. Otherwise, a license or endorsement issued under this title and a conditional contractor's permit issued under AS 04.09.690 is effective for the two calendar years ending December 31, unless a shorter period is prescribed by the board or by law. (b) A permit issued under this title shall be for a specific time period. The period shall be clearly designated on the permit. Sec. 04.11.690. Discouragement of monopolies. (a) In a general sense, it is against the public interest that the issuance, renewal, or transfer of licenses issued under this title will create, or assist in the creation of, a monopoly. (b) The board may submit proposals to the governor and the legislature addressed to the discouragement of the creation of monopolies. (c) The board may not by regulation adopt a definition of a monopoly. Sec. 04.11.700. Renumbered as AS 04.21.055 .