AS Title 43, Chapter 70: Alaska Business License Act

Chapter 70. Alaska Business License Act. Sec. 43.70.010. Exemptions. [Repealed, § 5 ch 144 SLA 1978.] Sec. 43.70.020. License required; application. (a) For the privilege of engaging in a business in the state, a person shall first apply, on forms prescribed by the commissioner, and obtain a license, and pay the license fee provided for in AS 43.70.030 . A license issued to a firm for a particular line of business covers all its operations in the state regardless of the number of its establishments. A license issued under this subsection must include (1) the name and address of the licensee; (2) the primary and secondary line of business to be conducted; (3) the dates for which the license is issued; and (4) the business name to be used by the licensee. (b) [Repealed, § 10 ch 45 SLA 1988.] (c) [Repealed, § 10 ch 45 SLA 1988.] (d) A person engaging in a business subject to licensing provisions of a regulatory nature (for example, the requirement of posting a bond before beginning business as a collection agency) must, in addition to filing the regular application required by this section, comply with those regulatory provisions before being entitled to a license under this chapter. The department may establish that a license that is issued under this section expires at the same time as a license, certificate, permit, registration, or similar document issued under AS 08 . (e) If a person knowingly engages in a business in the state without having a current license issued under (a) of this section, the department may impose a civil fine of up to $300. In this subsection, “knowingly” has the meaning given in AS 11.81.900 . (f) A person may apply for a business license under (a) of this section covering multiple lines of business. The department shall prepare an application form that allows an applicant to list multiple lines of business. Sec. 43.70.025. Bond or cash deposit required for an oil or gas business. (a) At the time of applying for a license under this chapter, an applicant engaged in the business of oil or gas exploration, development, or production shall file a surety bond in the amount of $250,000 running to the state, conditioned upon the applicant's promise to pay all (1) taxes and contributions due the state and political subdivisions; and (2) persons furnishing labor or material or renting or supplying equipment to the applicant. (b) In lieu of the surety bond required under this section, the applicant may file with the commissioner a cash deposit or other negotiable security acceptable to the commissioner in the amount of $250,000. (c) The bond required by this section remains in effect until cancelled by action of the surety, the principal, or if the commissioner finds that the business is producing oil or gas in commercial quantities, by the commissioner. Sec. 43.70.028. Claims against an oil or gas business. (a) A person having a claim against a person required to file a surety bond under AS 43.70.025 because of the failure to pay a liability described in AS 43.70.025 (a) may bring suit upon the bond. A copy of the complaint shall be served by registered or certified mail on the commissioner at the time suit is filed, and the commissioner shall maintain a record, available for public inspection, of all suits commenced. This service on the commissioner shall constitute service on the surety, and the commissioner shall transmit the complaint or a copy of it to the surety within 72 hours after it is received. The surety on the bond is not liable in an aggregate amount in excess of that named in the bond, but if claims pending at any one time exceed the amount of the bond, the claims shall be satisfied from the bond in the following order: (1) material, equipment, and supplies delivered in the state; (2) labor, including employee benefits; (3) taxes and other amounts due to the city and borough, in that order; (4) repair of public facilities; (5) taxes and other amounts due to the state. (b) If a judgment is entered against a cash deposit, the commissioner, upon receipt of a certified copy of a final judgment, shall pay the judgment from the amount of the deposit in accordance with the priorities set out in (a) of this section. (c) An action described in (a) of this section may not be commenced on the bond more than three years after the cancellation of the bond. Sec. 43.70.030. Levy and computation of license fee. (a) The fee for each business license is $50 a year, except that the fee is $25 if the business is a sole proprietorship and the sole proprietor is (1) 65 years of age or older when the sole proprietor applies for the license or will reach 65 years of age at any time during the year for which the license is issued; or (2) a disabled veteran. (b) [Repealed, § 1 ch 98 SLA 1984.] (c) The license for the privilege of taking orders through use of catalogs and by mail order offices in the state is the same as set out in this chapter for business generally. (d) [Repealed, § 72 ch 14 SLA 1987.] (e) A license holder may request a new business license without payment of an additional license fee (1) at any time during the period for which the license is valid to correct an error made by the department; or (2) within 30 days after the issuance of the license to make a change to the license. (f) The expiration date of a license issued under (e) of this section is the same as the expiration date of the original license. Sec. 43.70.040. Review and determination of license tax. [Repealed, § 72 ch 14 SLA 1987.] Sec. 43.70.050. Appeals. [Repealed, § 3 ch 166 SLA 1976. For current law, see AS 43.05.240 .] Sec. 43.70.060. Civil penalty. [Repealed, § 45 ch 113 SLA 1980. For current law, see AS 43.05.220 .] Sec. 43.70.070. Security. [Repealed, § 4 ch 94 SLA 1976; § 5 ch 144 SLA 1978.] Sec. 43.70.075. License endorsement. (a) Unless a person has a business license endorsement issued under this section for each location or outlet in a location where the person offers tobacco products, electronic smoking products, or products containing nicotine for sale, a person may not sell or allow a vending machine to sell in its location or outlet cigarettes, cigars, tobacco, products containing tobacco, electronic smoking products, or products containing nicotine as a retailer at that location or outlet. Each endorsement required under this section is in addition to any other license or endorsement required by law. A person may not apply for an endorsement under this section for a location or outlet if an endorsement issued for the same location or outlet is currently suspended or revoked. An endorsement issued for a location or outlet to a person in violation of this subsection is void. (b) The department, upon payment of a fee of $100, shall issue a business license endorsement to a person who applies for a business license under this chapter, and may renew the endorsement issued under this subsection for a fee of $100. The endorsement expires at the same time as the license to which it attaches. Upon issuance of an endorsement, the department shall also issue to the person receiving the endorsement notice of the penalties that may be imposed under this section. (c) The department may refuse to issue an endorsement under this section if there is reasonable cause to believe that the information submitted in the application is false or misleading and is not made in good faith. (d) If a person who holds an endorsement issued under this section, or an agent or an employee of a person who holds an endorsement issued under this section acting within the scope of the agency or employment, has been convicted of violating AS 11.76.100 , 11.76.106, 11.76.107, or 11.76.109, the department shall impose a civil penalty as set out in this subsection. However, following a hearing under (m) of this section, and based on evidence admitted at that hearing concerning questions specified in (m)(4) and (6) of this section, the department may reduce by not more than 10 days a suspension under (1) of this subsection, or by not more than 20 days a suspension under (2) of this subsection, or increase by not more than 10 days a suspension under (1) of this subsection, or by not more than 20 days a suspension under (2) of this subsection. If a hearing is not requested, or if a hearing is requested and the department determines that the evidence admitted does not support increasing or decreasing the suspension, the department shall suspend the endorsement for a period of (1) 20 days and impose a civil penalty of $500 if the person has not been previously convicted of violating AS 11.76.100 , 11.76.106, 11.76.107, or 11.76.109 and is not otherwise subject to the sanctions described in (2) — (4) of this subsection; (2) 45 days and impose a civil penalty of $2,000 if, within the 24 months before the date of the department's notice under (m) of this section, the person, or an agent or employee of the person while acting within the scope of the agency or employment of the person, was convicted once of violating AS 11.76.100 , 11.76.106, 11.76.107, or 11.76.109; (3) 90 days and impose a civil penalty of $4,000 if, within the 24 months before the date of the department's notice under (m) of this section, the person, or an agent or employee of the person while acting within the scope of the agency or employment of the person, was convicted twice of violating AS 11.76.100 , 11.76.106, 11.76.107, or 11.76.109, or a provision of this section or a regulation implementing this section adopted under AS 43.70.090 ; or (4) one year and impose a civil penalty of $10,000 if, within the 24 months before the date of the department's notice under (m) of this section, the person, or an agent or employee of the person while acting within the scope of the agency or employment of the person, was convicted three or more times of violating AS 11.76.100 , 11.76.106, 11.76.107, or 11.76.109. (e) If a person who receives an endorsement under this section has multiple retail locations or outlets in a location, a suspension or revocation imposed under this section applies only to the retail outlet in the location in which the violation occurs. (f) A person who holds a license endorsement issued under this section shall post on the licensed premises a warning sign as described in this subsection. A warning sign required by this subsection must be at least 8.5 inches by 11 inches and must read: “The sale of electronic smoking products or products containing nicotine without a prescription or tobacco products to persons under age 19 is illegal.” A person holding an endorsement issued under this section shall display the warning sign in a manner conspicuous to a person purchasing or consuming tobacco products, electronic smoking products, or products containing nicotine on the licensed premises. The department shall make available the warning signs required under this section to a person who holds an endorsement issued under this section or a person who requests the sign with the intention of displaying it. (g) A person who is required to hold a business license endorsement under this section, or who is required to be licensed or agrees to be licensed under AS 43.50.010 , or an agent or employee of the person, may not (1) sell cigarettes to another person unless the cigarettes are sold in groups of at least 20 and the cigarettes are in the manufacturer's original cigarette pack or contained in a cigarette carton or box; or (2) sell or possess cigarettes if the cigarette package (A) differs in any respect from the requirements of 15 U.S.C. 1331 — 1341 (Federal Cigarette Labeling and Advertising Act) for the placement of warnings or of any other information upon a package of cigarettes that is sold within the United States; (B) is labeled “For Export Only,” “U.S. Tax Exempt,” “For Use Outside U.S.,” or with similar wording indicating that the manufacturer did not intend that the product be sold in the United States; this subparagraph does not apply to cigarettes sold or intended to be sold as duty-free merchandise by a duty-free sales enterprise under 19 U.S.C. 1555(b); however, this subparagraph does apply to duty-free cigarettes that are brought back into the state for resale in the state; (C) has been altered by adding, masking, or deleting wording described in (B) of this paragraph. (h) A violation of (g) of this section is an unfair or deceptive act or practice under AS 45.50.471 . (i) The commissioner or the commissioner of revenue may seize cigarettes, electronic smoking products, or products containing nicotine that do not comply with this section. After notice and an opportunity for a hearing, the commissioner or the commissioner of revenue shall destroy cigarettes, electronic smoking products, or products containing nicotine seized under this subsection. (j) A person who violates (g) of this section is guilty of a class B misdemeanor. (k) If a person, or an agent or employee of the person while acting within the scope of the agency or employment of the person, violates a provision of (a) or (g) of this section, the department may suspend the person's business license endorsement or right to obtain a business license endorsement for a period of not more than (1) 45 days; or (2) 90 days if, within the 24 months before the date of the department's notice under (m) of this section, the person, or an agent or employee of the person while acting within the scope of the agency or employment of the person, violates a provision of (a) or (g) of this section. (l) Notwithstanding (a) of this section, a person owning vending machines that offer tobacco products, electronic smoking products, or products containing nicotine for sale need obtain only one business license endorsement under this section even if the person has vending machines in more than one outlet or location in the state. The person who owns a vending machine that offers tobacco products, electronic smoking products, or products containing nicotine for sale and the person who owns the premises where the vending machine is located are both required to obtain a business license endorsement issued under this section. If the endorsement of the person owning the vending machine is suspended or revoked, the person may not sell cigarettes, cigars, products containing tobacco, electronic smoking products, or products containing nicotine during the period of suspension or revocation through the use of vending machines at the location or outlet where the violation occurred. During the period of suspension or revocation, the person owning that vending machine may not use that machine to sell tobacco products, electronic smoking products, or products containing nicotine at another location or outlet. (m) The department may initiate suspension of a business license endorsement or the right to obtain a business license endorsement under this section by sending the person subject to the suspension a notice by certified mail, return receipt requested, or by delivering the notice to the person. The notice must contain information that informs the person of the grounds for suspension, the length of any suspension sought, and the person's right to administrative review. A suspension begins 30 days after receipt of notice described in this subsection unless the person delivers a timely written request for a hearing to the department in the manner provided by regulations of the department. If a hearing is requested under this subsection, an administrative law judge of the office of administrative hearings ( AS 44.64.010 ) shall determine the issues by using the preponderance of the evidence test and shall, to the extent they do not conflict with regulations adopted under AS 44.64.060 , conduct the hearing in the manner provided by regulations of the department. A hearing under this subsection is limited to the following questions: (1) was the person holding the business license endorsement, or an agent or employee of the person while acting within the scope of the agency or employment of the person, convicted by plea or judicial finding of violating AS 11.76.100 , 11.76.106, 11.76.107, or 11.76.109; (2) if the department does not allege a conviction of AS 11.76.100 , 11.76.106, 11.76.107, or 11.76.109, did the person, or an agent or employee of the person while acting within the scope of the agency or employment of the person, violate a provision of (a) or (g) of this section; (3) within the 24 months before the date of the department's notice under this subsection, was the person, or an agent or employee of the person while acting within the scope of the agency or employment of the person, convicted of violating AS 11.76.100 , 11.76.106, 11.76.107, or 11.76.109 or adjudicated for violating a provision of (a) or (g) of this section; (4) did the person holding the business license endorsement establish that the person holding the business license endorsement had adopted and enforced an education, a compliance, and a disciplinary program for agents and employees of the person as provided in (t) of this section; (5) did the person holding the business license endorsement overcome the rebuttable presumption established in (w) of this section; (6) within five years before the date of the violation that is the subject of the hearing, did the department establish that the person holding the business license endorsement (A) previously violated (a) or (g) of this section; (B) previously violated AS 11.76.100 , 11.76.106, 11.76.107, or 11.76.109 at a location or outlet in a location for which the person holds a business license endorsement, or had an agent or employee previously violate AS 11.76.100 , 11.76.106, 11.76.107, or 11.76.109; this subparagraph does not apply to a prior conviction that served to enhance a suspension period under (d)(2) — (4) of this section; or (C) engaged at a location owned by the person in other conduct that was or is likely to result in the sale of tobacco, electronic smoking products, or products containing nicotine to a person under 19 years of age in violation of AS 11.76.100 , 11.76.106, 11.76.107, or 11.76.109. (n) The commissioner may (1) adopt the proposed decision of a hearing officer under this section; (2) remand the matter for further proceedings; or (3) reject the proposed decision, review the record, and issue a decision based on the record. (o) After notice and a hearing, the department may revoke a business license endorsement or increase a period of suspension if the department finds that, during a period of suspension, a person continues the conduct for which the endorsement or the right to obtain an endorsement was suspended. A person whose endorsement or right to obtain an endorsement is revoked or suspended under this subsection may not apply for or obtain an endorsement under this chapter. A period of revocation or suspension imposed under this subsection may not exceed two years. (p) If a person who holds an endorsement issued under this section violates (f) of this section, the department may impose a civil penalty not to exceed $250 for each day of the violation, but the department may not suspend or revoke a business license endorsement. The total civil penalty imposed under this subsection for each violation may not exceed $5,000. (q) The department may adopt regulations that do not conflict with regulations adopted under AS 44.64.010 to establish an administrative hearing process for actions taken under this section. AS 44.62 (Administrative Procedure Act) does not apply to a hearing under this section. (r) For purposes of this section, the sale of a product containing tobacco, an electronic smoking product, or a product containing nicotine by an agent or employee of a person who holds or is required to hold a business license endorsement under this section at the location or outlet in a location for which the endorsement was, or was required to be, issued is rebuttably presumed to have been a sale within the person's scope of agency or employment. (s) If a person violates (a) of this section, the department may impose a civil penalty not to exceed $250 for each day of the violation. The total civil penalty imposed under this subsection for each violation may not exceed $5,000. The civil penalty described in this subsection may be imposed in addition to a suspension of a business license endorsement or the right to obtain a business license endorsement ordered by the department under (k) or (o) of this section. (t) Based on evidence provided at the hearing under (m)(4) — (6) of this section, the department may reduce the license suspension period under (d) of this section if the person holding the business license endorsement establishes that, before the date of the violation, the person had (1) adopted and enforced a written policy against selling cigarettes, cigars, tobacco, products containing tobacco, electronic smoking products, or products containing nicotine to a person under 19 years of age in violation of AS 11.76.100 , 11.76.106, 11.76.107, or 11.76.109; (2) informed the person's agents and employees of the applicable laws and their requirements and conducted training on complying with the laws and requirements; (3) required each agent and employee of the person to sign a form stating that the agent and employee has been informed of and understands the written policy and the requirements of AS 11.76.100 , 11.76.106, 11.76.107, and 11.76.109; (4) determined that the agents and employees of the person had sufficient experience and ability to comply with the written policy and requirements of AS 11.76.100 , 11.76.106, 11.76.107, and 11.76.109; (5) required the agents and employees of the person to verify the age of purchasers of cigarettes, cigars, tobacco, other products containing tobacco, electronic smoking products, or products containing nicotine by means of a valid government issued photographic identification; (6) established and enforced disciplinary sanctions for noncompliance with the written policy or the requirements of AS 11.76.100 , 11.76.106, 11.76.107, and 11.76.109; and (7) monitored the compliance of the agents and employees of the person with the written policy and the requirements of AS 11.76.100 , 11.76.106, 11.76.107, and 11.76.109. (u) A reduction in the period of suspension under this section may not be granted more than once in a 12-month period for a location or outlet in a location for which the person holds a business license. (v) Notwithstanding (d) of this section, in place of a hearing under (m) of this section, the department and the person holding the business license endorsement may enter into a memorandum of agreement regarding the imposition of a suspension and civil penalties based on a violation of AS 11.76.100 , 11.76.106, 11.76.107, or 11.76.109. The memorandum of agreement must contain a provision that the person holding the business license endorsement admits or does not contest that a violation of AS 11.76.100 , 11.76.106, 11.76.107, or 11.76.109 occurred and accepts the imposition of suspension and civil penalty under this section. Based on the memorandum of agreement, the department may reduce the period of suspension. For violations involving AS 11.76.100 , 11.76.106, 11.76.107, or 11.76.109, the department may not reduce the period of suspension by more than 10 days under (d)(1) of this section or by more than 20 days under (d)(2) of this section. The department may not agree to a reduction in the period of suspension more than once in a 12-month time period for a location or outlet in a location for which the person holds a business license endorsement. (w) For purposes of (m)(5) of this section, a conviction for a violation of AS 11.76.100 , 11.76.106, 11.76.107, or 11.76.109 by the agent or employee of the person who holds the business license endorsement is rebuttably presumed to constitute proof of the fact that the agent or employee negligently sold a cigarette, a cigar, or tobacco, a product containing tobacco, an electronic smoking product, or a product containing nicotine to a person under 19 years of age. The person who holds the business license endorsement may overcome the presumption by establishing by clear and convincing evidence that the agent or employee did not negligently sell a cigarette, a cigar, or tobacco, a product containing tobacco, an electronic smoking product, or a product containing nicotine to a person under 19 years of age in violation of AS 11.76.100 , 11.76.106, 11.76.107, or 11.76.109 as alleged in the citation issued to the agent or employee. The presentation of evidence authorized by this subsection does not constitute a collateral attack on the conviction described in this subsection. (x) Notwithstanding (d), (t), or (v) of this section, a period of suspension may not be reduced for a violation of AS 11.76.100 (a)(4) or 11.76.109(a)(4). Sec. 43.70.080. Disposal of money. All money collected by the department under this chapter shall be deposited in the general fund. Sec. 43.70.090. Regulations. The department may adopt regulations necessary to implement this chapter. Sec. 43.70.100. Penal provisions. [Repealed, § 46 ch 113 SLA 1980. For current provisions, see AS 43.05.290 .] Sec. 43.70.105. Exemptions. (a) This chapter does not apply to (1) a fisheries business; (2) the sale of liquor under a license issued under AS 04.09 ; (3) an insurance business; (4) a mining business; (5) supplying services as an employee; (6) furnishing goods or services by a person who does not represent to be regularly engaged in furnishing goods or services; (7) the activities of an investment club; in this paragraph, (A) “investment club” means a group of individuals, incorporated or otherwise organized, that engages primarily in investing in securities, that does not sell investment services to another person, that does not advertise, and the primary purpose of which is educational; (B) “security” has the meaning given in AS 45.56.900 ; (8) a bank organized under AS 06.05 or the laws of another state; (9) a national bank chartered by the United States; (10) a credit union organized under AS 06.45 or the laws of another state; (11) a credit union regulated by the National Credit Union Administration; (12) a mutual savings bank chartered under AS 06.15 or organized under the laws of another state. (b) Notwithstanding an exemption provided by (a) of this section, a person who sells cigarettes, cigars, tobacco, products containing tobacco, electronic smoking products, or products containing nicotine as a retailer must have a business license under AS 43.70.020 and a business license endorsement required under AS 43.70.075 . Sec. 43.70.110. Definitions. In this chapter, unless the context otherwise requires, (1) “business” means a for profit or nonprofit entity engaging or offering to engage in a trade, a service, a profession, or an activity with the goal of receiving a financial benefit in exchange for the provision of services, or goods or other property; (2) “commissioner” means the commissioner of commerce, community, and economic development; (3) “department” means the Department of Commerce, Community, and Economic Development; (4) “electronic smoking product” has the meaning given in AS 11.81.900 (b); (5) “line of business” means the particular trade, service, profession, or activity engaged in by a for-profit or nonprofit entity with the goal of receiving a financial benefit; (6) “person” includes an individual, firm, partnership, joint venture, association, corporation, estate trust, business trust, receiver, or any group or combination acting as a unit; (7) “product containing nicotine” does not include a cigarette, a cigar, tobacco, or a product containing tobacco. Sec. 43.70.120. Short title. This chapter may be cited as the Alaska Business License Act.