Section 1: Allows the ABC board to adopt regulations regarding reports from limited liability organizations licensed under Title 4.

Section 2: Expands peace officer powers granted by the Commissioner of Department of Public Safety to certain ABC employees to include investigation of violations of laws against prostitution and promoting prostitution, gambling, promoting gambling, and related offenses.

Section 3: Provides that a person cannot receive or transfer controlling interest in a license issued to a limited liability organization, except with the approval of the ABC Board.

Section 4: Requires a limited liability organization to report to the board when 10 percent or more of the ownership of the organization is transferred.

Section 5: Makes changes to the authority of a holder of a brewpub license, regarding sale of manufactured beer.

Section 6: Allows certain brewpub licensees to manufacture beer on premises other than the premises licensed under the beverage dispensary license.

Section 7: Technical amendment.

Section 8: Authorizes a package store licensee to deliver wine or champagne to a cruise ship or hotel guest. Allows a florist or gift basket establishment to purchase wine or champagne for delivery to a cruise ship passenger or hotel guest. Imposes certain record keeping, delivery, and permit requirements. Allows a package store licensee to deliver alcoholic beverages to a responsible adult at a wedding or wedding reception or other social event defined by regulation of the board.

Section 9: Deletes reference to residency requirements when filing an application with the ABC Board.

Section 10: Requires a limited liability organization to report certain ownership information to the ABC Board.

Section 11: Deletes reference to residency requirements.

Section 12: Imposes requirements when issuing a liquor license to a limited liability organization.

Section 13: Prohibits leasing a liquor license to a limited liability organizations.

Section 14: Provides that a local governing body may recommend that a license be issued, renewed, relocated, or transferred with conditions. The Board shall impose those conditions unless it finds them arbitrary, capricious, or unreasonable. The local governing body is responsible for monitoring compliance with the conditions except as otherwise provided by the Board.

Provides that a local governing body may notify the Board that it has determined a licensee has violated a provision of law or condition imposed on the license. Unless the Board finds the local governing body to be acting in an arbitrary, capricious, or unreasonable manner, the Board shall prepare the determination as an accusation against the licensee and proceed in the manner described in law.

Section 15: Allows a person to bring their own wine to a restaurant, with the permission of the licensee. Allows the licensee to charge a corkage fee.

Section 16: Provides that a license held by a limited liability organization does not relieve the licensee of obligations or liability imposed under Title 4, solely because the license is held by a limited liability organization.

Section 17: Definitions.

Section 18: Extends the sunset date of the ABC Board to June 30, 2003.

Section 19: Repeals AS 04.11.390 (residency requirements).

Section 20: Effective date for Section 18.

Section 21: Effective date for all sections but sec. 18.