§ 4.02.110. Transfer of undelivered alcoholic beverages.

A.

Alcoholic beverages that have not been delivered within the minimum permitted delivery time may be transferred to the city's package store for sale to an authorized purchaser under the procedures set out in this section, with the exception of alcoholic beverages that are:

1.

The subject of an appeal to the LBCB or the court under this chapter; or

2.

The subject of a decision of the LBCB or a court for which the time for appeal of the decision has yet to expire, if prepayment of storage fees required under this section have been paid.

B.

At any time following the expiration of the minimum permitted delivery time, the delivery site shall give notice to the purchaser or addressee of the alcoholic beverages for which the minimum permitted delivery time has expired. The notice shall identify the alcoholic beverages and shall inform the purchaser or addressee:

1.

That the minimum permitted delivery time has expired; and

2.

That after an additional seven days from the date the written notice is mailed, the delivery site will take action to transfer the undelivered beverages to the city's package store for sale to an authorized purchaser unless the permittee picks up the beverages, if authorized, prepays storage fees or files an appeal to the LBCB.

C.

The permittee shall be notified that the permittee may file a written appeal at the delivery site not later than the close of business on the seventh day following the date the notice is mailed and that the timely filing of such an appeal will stay the transfer of the alcoholic beverages during the pendency of the appeal. At any time before or after the filing of an appeal, and before the alcoholic beverages are transferred, the owner may make arrangements to have the alcoholic beverages shipped back to the package store that originally shipped the beverages to the delivery site; provided, all handling, storage and other delivery site charges and city taxes must be paid before the delivery site may release the beverages for reshipment. The arrangements for reshipment must include prepayment of all shipping and handling charges and assurances that the beverages will be in the possession of common carriers from the time released by the delivery site until delivered back to the package store.

D.

Upon receipt of a timely-filed appeal, or a late appeal regarding alcoholic beverages that have not yet been transferred to the city's package store for sale to an authorized purchaser, the city delivery site shall segregate the undelivered alcoholic beverages subject to the appeal and note prominently on the container that the alcoholic beverages within the container are the subject of the appeal. The city delivery site shall note on the appeal the date and time received, shall retain a copy for its files and shall forward the original to the LBCB along with the copy of the records of the city delivery site showing all relevant activities relating to the alcoholic beverages and their non-delivery from the date of receipt of the alcoholic beverages at the delivery site through the date of receipt of the appeal.

E.

Upon receipt of an appeal by the LBCB, the LBCB shall hear the appeal in the manner provided under Section 4.02.130.

F.

Storage and applicable charges shall continue to accrue during the pendency of the appeal to the LBCB. If the LBCB determines that the alcoholic beverages should have been delivered when delivery was refused, storage and other related charges that accrued following the refusal to deliver shall be waived, provided the alcoholic beverages are delivered to the appellant within three delivery site operating days of the date the LBCB's decision is mailed or delivered to the appellant; provided, further, the appellant must be qualified and authorized to receive the alcoholic beverages subject to the appeal at the time the appellant requests delivery of the alcoholic beverages at the delivery site.

G.

If the LBCB determines that the refusal to deliver was appropriate, the appellant may appeal the LBCB's decision to the superior court as provided in the applicable Alaska Rules of Appellate Procedures. If the appellant intends to appeal the LBCB's decision to the superior court, the appellant may avoid the transfer of the alcoholic beverages to the city's package store, for sale to any other authorized person, by paying, within three delivery site operating days of the date of the LBCB's decision, all taxes and charges due on the alcoholic beverages from the date of the receipt through the thirty-third day following the appellant's receipt of the LBCB's written decision. If the appellant files a notice of appeal to the superior court of the LBCB's decision, and, in addition, serves a copy of the notice of appeal on the delivery site, with a prepayment for storage and other charges that will come due within the six months that follow the date of the notice of appeal, the delivery site may not transfer the alcoholic beverages to the city's package store for sale to any other authorized person and shall continue to store them for the period covered by their prepayment or until they are lawfully delivered to the appellant, whichever occurs first. If the alcoholic beverages have not been delivered to the appellant and the final decision of the superior court on the appeal has not been issued before the expiration of the period covered by the prepayment, the appellant shall pay for an additional six-month period. Upon the issuance of a final, appealable decision by the superior court, the alcoholic beverages shall be subject to the same procedures and prepayment requirements as applied upon delivery of the LBCB's decision to the appellant. If the alcoholic beverages are delivered to the appellant at any time prior to the expiration of a prepayment, the amount of the prepayment attributable to the time beyond the date of delivery shall be refunded to the appellant.

H.

Upon the failure of a permittee to timely appeal or to make a prepayment or take other required action under this section to preserve his or her right to have the delivery site continue to store his or her alcoholic beverages, the person thereby forfeits all rights, title and claims to such alcoholic beverages and the alcoholic beverages may be transferred to the city's package store for sale to any other authorized person. Upon certification by an authorized delivery site employee that there is no pending appeal of the delivery refusal decision, or that the period covered by the last storage prepayment has expired, and that written notice of the expiration of the prepayment or appeal period was mailed to the appellant at least seven days prior to the date of the certification, the alcoholic beverages may be transferred to the city's package store for sale to any other authorized person.

I.

The delivery site shall forward the certification of transfer to the LBCB. The delivery site shall maintain an inventory of all alcoholic beverages transferred to the city's package store for sale to an authorized person.

(Ord. No. 10-04, § 2(Exh. A), 4-1-2010)