Statutes and Regulations

Business Licensing

October 2024

DEPARTMENT OF COMMERCE, COMMUNITY,

AND ECONOMIC DEVELOPMENT
DIVISION OF CORPORATIONS, BUSINESS
AND PROFESSIONAL LICENSING

NOTE: The official version of the statutes in this document is printed in the Alaska Statutes, copyrighted by the
State of Alaska. The official version of the regulations in this document is published in the Alaska
Administrative Code, copyrighted by the State of Alaska. If any discrepancies are found between this
document and the official versions, the official versions will apply.

Rev. 10/31/2024
 TABLE OF CONTENTS
Page

Section

1. Business Licensing Statutes

(AS 43.70) ...........................................................................................1

2. Criminal Penalties
(AS 43.05.290) ....................................................................................5

3. Business Licensing Regulations

(12 AAC 12) .......................................................................................6
 CHAPTER 70.
ALASKA BUSINESS LICENSE ACT

Section
20. Application for license
30. Levy and computation of license fee
75. License endorsement
80. Disposal of money
90. Regulations
105. Exemptions
110. Definitions
120. Short title

Sec. 43.70.020. Application for license. (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(b) [Repealed, § 10 ch 45 SLA 1988.]
(c) [Repealed, § 10 ch 45 SLA 1988.]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. 43.70.030. 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, § I 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. 43.70.075. 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.
-1-
 (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, 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 $2000 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 (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.

-2-
 (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 to establish an administrative hearing process for actions taken by the
department under this section. AS 44.62 (Administrative Procedure Act) does not apply to a hearing under this
section.
-3-
 (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. 43.70.105. Exemptions. (a) This chapter does not apply to

(1) a fisheries business;
(2) the sale of liquor under a license issued under AS 04.11;
-4-
 (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,
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 adventure, 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.

TRANSITION: BUSINESS LICENSE ENDORSEMENTS FOR LOCATIONS AND OUTLETS.

Notwithstanding AS 43.70.075(a), as amended by sec. 4 of this Act, a person who, on the effective date of sec. 4 of
this Act, holds a business license endorsement under AS 43.70.075(a) as that subsection existed on the day before
the effective date of sec. 4 of this Act, does not have to obtain an additional business license endorsement for every
location or outlet in a location where the person offers tobacco products for sale until the current endorsement
expires. Upon expiration of the business license endorsement held on the effective date of sec. 4 of this Act, the
person shall obtain a business license endorsement for every location or outlet in a location where the person offers
tobacco products for sale, as required by AS 43.70.075(a), as amended by sec sec. 4 of this Act.

CRIMINAL PENALTIES

Sec. 43.05.290. Criminal penalties.

(h) A person engaging in or attempting to engage in a business, trade, profession, or occupation for which a
license is required under this title, who willfully fails to obtain the license, is guilty of a misdemeanor and, upon
conviction, is punishable by a fine of not more than $2,000, or by imprisonment for not more than six months, or by
both. This subsection does not apply to a violation of AS 43.70.020.
(i) In this section “person” includes, but is not limited to, an officer or employee of a corporation or a member or
employee of a partnership, who, as officer, employee, or member, is under a duty to perform the act in respect to
which the violation occurs. (§ 5 ch 113 SLA 1980; am § 114 ch 6 SLA 1984)

-5-
 CHAPTER 12.
BUSINESS LICENSING.

Article
1. Application Requirements and Licensing (12 AAC 12.010 – 12 AAC 12.050)
2. Business License Endorsement for Sale of Tobacco Products: Administrative Hearing
and Review Procedures (12 AAC 12.800 – 12 AAC 12.855)
3. General Provisions (12 AAC 12.990)

ARTICLE 1.
APPLICATION REQUIREMENTS AND LICENSING.

Section
10. Business license fees
20. Business license
30. Application for business license
40. Term of business license; license renewal
50. Changes in business license

12 AAC 12.010. BUSINESS LICENSE FEES. (a) The fee for a business license, for all or part of the initial
(1) annual license period, is $50 if a person seeks an annual license, except that the fee is $25 if the person
seeks an annual license for which the fee is reduced under AS 43.70.030(a)(1) or (2); or
(2) biennial license period, is $100 if a person seeks a biennial license, except that the fee is $50 if the person
seeks a biennial license for which the fee is reduced under AS 43.70.030(a)(1) or (2).
(b) The business license renewal fee is $50 if a person seeks to renew for the next annual license period, or $100
if a person seeks to renew for the next biennial license period, except that the business license renewal fee is $25 if
the person seeks to renew, for the next annual license period, a license for which the fee is reduced under
AS 43.70.030(a)(1) or (2), or $50 if the person seeks to renew, for the next biennial license period, a license for
which the fee is reduced under AS 43.70.030(a)(1) or (2). Notwithstanding 12 AAC 02.020 and 12 AAC 02.030,
the department will not prorate the first license renewal fee for a business license following initial licensure.
(c) Repealed 1/1/2019.
(d) The fee under AS 43.70.075 for a business license endorsement or for the renewal of an endorsement is
$100 for each location or outlet in a location where the person offers tobacco products, electronic smoking products,
or products containing nicotine for sale, regardless of whether the business license to which each endorsement is
attached is annual or biennial.
(e) A business license that has been issued under this section is non-refundable in accordance with 12 AAC
02.015.

Authority: AS 08.01.010 AS 43.70.020 AS 43.70.075

AS 08.01.065 AS 43.70.030 AS 43.70.090
AS 08.01.100

12 AAC 12.020. BUSINESS LICENSE. (a) A business license is required for each business name under which
the applicant seeks to engage in business in the state.
(b) An independent contractor must have a business license separate from the person to whom the contractor
provides goods or services.
(c) A business that receives revenue for the performance of contracts with the State, its political subdivisions, or
the federal government is not exempt from the business licensing requirements of AS 43.70 and this chapter.
(d) Upon proper application, as described in 12 AAC 12.030, the department will issue a business license to a
business that is exempt from business licensing requirements under AS 43.70.105.
(e) Repealed 1/1/2019.
(f) Repealed 1/1/2019.
(g) In advertising and operating, a business license holder must use the business name that appears on the
business license.
(h) Repealed 3/26/2015.
(i) The business license or a photocopy of the business license must be displayed in a conspicuous location at
each business establishment.

Authority: AS 08.55.010 AS 43.70.090 AS 43.70.110

AS 43.70.020 AS 43.70.105

-6-
 12 AAC 12.030. APPLICATION FOR BUSINESS LICENSE. An applicant for a business license shall
submit the business license fee specified in 12 AAC 12.010 and a completed application on a form provided by the
department. To be complete a business license application must include
(1) the business name;
(2) each primary and each secondary line of business to be conducted; any line of business subject to
licensing provisions of a regulatory nature under AS 43.70.020(d) shall be listed as a primary or secondary line
of business under AS 43.70.020(a)(2);
(3) the names of the persons engaging in the business;
(4) the mailing address and physical address of the principal place of business;
(5) information regarding other licenses or permits, if applicable;
(6) a statement as to whether the business will sell tobacco products, electronic smoking products, or products
containing nicotine as a retailer and the physical address of each outlet or location where tobacco products,
electronic smoking products, or products containing nicotine will be sold;
(7) the name of the natural person completing the application on behalf of the business and that person’s title
or position in the business;
(8) specification whether the applicant seeks an annual initial license, a biennial initial license, renewal for an
annual license period, or renewal for a biennial license period;
(9) the applicant’s date of birth, if the applicant is a sole proprietor who seeks a business license or renewal
for which the fee is reduced under AS 43.70.030(a)(1), or a copy of documentation from the United States
Department of Veterans Affairs that the applicant is a veteran with a service-connected disability, if the applicant is
a sole proprietor who seeks a business license or renewal for which the fee is reduced under AS 43.70.030(a)(2).

Authority: AS 08.01.050 AS 43.70.020 AS 43.70.075

AS 08.01.060 AS 43.70.030 AS 43.70.090
AS 08.01.080

12 AAC 12.040. TERM OF BUSINESS LICENSE; LICENSE RENEWAL. (a) A person may seek an
annual or a biennial business license. A new business license will be assigned a renewal year by the department at
the time the initial license is issued. Except as provided in (b) of this section, the initial
(1) annual license period includes the remainder of the calendar year in which the business license is issued;
or
(2) biennial license period includes the remainder of the calendar year in which the business license is issued
and all of the following calendar year.
(b) If the department issues an initial business license on or after October 1, the
(1) annual license period includes the remainder of the calendar year in which the business license is issued
and all of the following calendar year; or
(2) biennial license period includes the remainder of the calendar year in which the business license is issued
and all of the following two calendar years.
(c) The department will renew a business license that has been lapsed for two years or less if the applicant for
renewal of the business license pays the business license renewal fee specified in 12 AAC 12.010(b) in a manner
specified by the department on the renewal application.
(d) The department will not renew a business license that has been lapsed for more than two years. The
previous holder of a business license that has been lapsed for more than two years may apply for a new business
license under this chapter.

Authority: AS 08.01.050 AS 08.01.100 AS 43.70.090

AS 08.01.080

12 AAC 12.050. CHANGES IN BUSINESS LICENSE. (a) A new business license under 12 AAC 12.030 is
required if
(1) the name of the business changes, unless the change is limited to the addition or removal of a
(A) professional title of a business owner used in the name of the business; or
(B) word describing the legal form of organization of the business and the ownership of the business has
not changed; or
(2) the ownership of the business changes.
(b) If the business license holder submits the fee specified in 12 AAC 02.105(3) along with the updated
information on a form provided by the department, the department will update a business license to show a change
in
(1) the business license holder’s legal name; or
(2) the business name as described in (a)(1)(A) or (B) of this section.
(c) A business license is not transferable or assignable.
(d) A business license holder may request a new business license under AS 43.70.030(e)(2) within 30 days after
issuance of the initial business license if when preparing the license application the holder
(1) in error placed information in the wrong place on the application; or
-7-
 (2) made an error in entering information; in this subparagraph, "error"
(A) means a typographical or similar non-substantive mistake;
(B) includes a spelling error or an error in identifying a primary or secondary line of business.
(e) At any time during the life of a business license, the department will update the mailing or physical address
at no charge upon the license holder’s request.

Authority: AS 08.01.080 AS 43.70.030 AS 43.70.090

AS 43.70.020

ARTICLE 2.
BUSINESS LICENSE ENDORSEMENT FOR SALE OF TOBACCO PRODUCTS, ELECTRONIC
SMOKING PRODUCTS, AND PRODUCTS CONTAINING NICOTINE:
ADMINISTRATIVE HEARING AND REVIEW PROCEDURES

Section
800. Applicability
805. Request for hearing
810. Notice of appearance by attorney for aggrieved person
815. Time and place of hearing
820. Discovery
825. Continuances
830. Motions
835. Hearing
840. Evidence
845. Final decision and reconsideration
850. Contacts with the commissioner or hearing officer
855. Time periods and methods for filing

12 AAC 12.800. APPLICABILITY. The provisions of 12 AAC 12.800 - 12 AAC 12.855 apply to an
administrative hearing regarding a department action under AS 43.70.075, including a notice of suspension and a
refusal by the department to issue a business license endorsement.

Authority: AS 43.70.075 AS 43.70.090

12 AAC 12.805. REQUEST FOR HEARING. (a) To obtain administrative review of a department action
under AS 43.70.075, an aggrieved person must file with the department, in accordance with this section and 12 AAC
12.855, a request for an administrative hearing. The request must be filed within 20 days after the notice of
department action is issued.
(b) A request for an administrative hearing must
(1) be in writing;
(2) be signed by the aggrieved person or the aggrieved person's attorney;
(3) be correctly addressed;
(4) set out the jurisdictional heading and case caption; the case caption must state the aggrieved person's own
name; in addition, if the aggrieved person does business under another name, the case caption must state that name
under a "d/b/a" designation;
(5) set out the case reference number used by the department;
(6) set out, underneath the case reference number and centered, the title of the request;
(7) specify the basis upon which the department action is being challenged;
(8) specify the relief sought;
(9) set out, at the end of the request, the
(A) signature of the aggrieved person or the aggrieved person's attorney; and
(B) date that the request was signed;
(10) include the aggrieved person's mailing address and daytime telephone number; the aggrieved person may
include an electronic mail address and a telephone number for facsimile transmissions; and
(11) include a request for any special procedures to be used at the hearing, including the use of a translator.
(c) The aggrieved person is responsible for notifying the department in writing of any change in the aggrieved
person's mailing address, daytime telephone number, electronic mail address, or telephone number for facsimile
transmissions. For purposes of any requirement in 12 AAC 12.800 - 12 AAC 12.855 to provide the aggrieved
person with a copy of filed or decisional documents, and for purposes of any other attempt to contact the aggrieved
person, the department and the hearing officer may consider current any information that the aggrieved person most
recently provided with respect to the aggrieved person's mailing address, daytime telephone number, electronic mail
address, or telephone number for facsimile transmissions.

-8-
Authority: AS 43.70.075 AS 43.70.090

12 AAC 12.810. NOTICE OF APPEARANCE BY ATTORNEY FOR AGGRIEVED PERSON. An

attorney representing an aggrieved person must file with the hearing officer a notice of appearance that provides the
attorney's mailing address, the attorney's telephone number, and any telephone number for the attorney to receive
facsimile transmissions.

Authority: AS 43.70.075 AS 43.70.090

12 AAC 12.815. TIME AND PLACE OF HEARING. (a) Unless the aggrieved person and the department
stipulate, with the hearing officer's approval, to the time and place of the hearing and to pre-hearing deadlines, the
hearing officer shall conduct a telephonic pre-hearing conference to
(1) schedule the time and place of the hearing; and
(2) determine pre-hearing deadlines for the close of discovery, the exchange of witness and exhibit lists, the
filing of motions, and the filing of optional hearing memoranda.
(b) The hearing shall be held in Anchorage, Fairbanks, or Juneau, whichever location is closest to the aggrieved
person, unless the aggrieved person and the department stipulate, with the hearing officer's approval, to a different
location for the hearing.

Authority: AS 43.70.075 AS 43.70.090

12 AAC 12.820. DISCOVERY. The aggrieved person and the department may obtain discovery of
unprivileged documentary evidence relevant to the issues identified in AS 43.70.075(m)(1), (2), and (3). Discovery
requests and responses are not required to be filed with the hearing officer. Upon a motion with good cause shown,
the hearing officer may compel discovery or issue protective orders concerning discovery.

Authority: AS 43.70.075 AS 43.70.090

12 AAC 12.825. CONTINUANCES. To seek a continuance in an administrative hearing, the aggrieved person
or the department must file a motion that sets out the grounds for the request. The administrative hearing may only
be continued for good cause shown.

Authority: AS 43.70.075 AS 43.70.090

12 AAC 12.830. MOTIONS. (a) To make a motion or submit a memorandum, the aggrieved person or the
department must file the motion or memorandum in writing with the hearing officer and provide a copy to the
opposing party. The filing of a motion or memorandum with the hearing officer is subject to the requirements of
12 AAC 12.855, as applicable. The filing must include signed proof that a copy was provided to the opposing party,
identifying the motion or memorandum provided, and setting out the date and the method by which the copy was
provided. A copy to the opposing party may be provided by personal delivery, first class mail, or facsimile
transmission. A copy provided by electronic mail shall not be considered to have been provided in accordance with
this subsection.
(b) A written motion is subject to opposition and reply memoranda,
(1) except as otherwise set out in 12 AAC 12.800 - 12 AAC 12.855;
(2) unless the aggrieved person and the department, with the hearing officer's approval, stipulate otherwise; or
(3) unless the commissioner or hearing officer order otherwise.
(c) Unless the commissioner or hearing officer orders a different schedule for the filing of memoranda, and
except as provided in (d) of this section,
(1) an opposition memorandum may be filed with the hearing officer no later than 10 days after the date the
motion was provided to the opposing party; and
(2) a reply memorandum may be filed with the hearing officer no later than three business days after the date
the opposition memorandum was provided to the opposing party.
(d) If a motion or memorandum is provided to the opposing party by first class mail, three days shall be added
to the time for filing an opposition or reply memorandum.

Authority: AS 43.70.075 AS 43.70.090

12 AAC 12.835. HEARING. (a) For purposes of the preponderance of the evidence test required under
AS 43.70.075(m), the department bears the burden of proof.
(b) Unless the aggrieved person and the department agree otherwise, the department will present its case first.
The aggrieved person and the department each may make an opening statement and a closing argument. A closing
argument may be oral or written, and with the hearing officer's approval, may be filed or take place after the final
day of testimony. Each witness shall testify under oath and with an opportunity for cross-examination. An
aggrieved person who is not represented by counsel may testify in a narrative form, under oath and subject to cross-
-9-
examination. Upon request by the aggrieved person or the department, and with the hearing officer's approval, a
witness, the aggrieved person, or the department may testify or otherwise participate in the hearing process
telephonically. Any long distance charge for telephonic testimony or participation must be incurred by the party
who made the request.
(c) A hearing held under this section shall be recorded and may be transcribed at the request and expense of the
party requesting the transcript.
(d) After the record for the hearing is closed, the hearing officer shall issue a written proposed decision with
findings of fact and conclusions of law.

Authority: AS 43.70.075 AS 43.70.090

12 AAC 12.840. EVIDENCE. (a) Oral evidence may be taken only on oath or affirmation.
(b) The aggrieved person and the department may each
(1) call and examine witnesses;
(2) introduce exhibits, with the department using numbers and the aggrieved person using letters to identify
exhibits;
(3) cross-examine opposing witnesses on matters relevant to the issues, even if an issue was not covered in
the direct examination;
(4) impeach a witness regardless of which party first called the witness to testify;
(5) rebut any adverse evidence; and
(6) introduce evidence to rebut or support the presumption set out in AS 43.70.075(r).
(c) If the aggrieved person does not choose to testify on direct examination, the aggrieved person may be called
and examined as if under cross-examination.
(d) The administrative hearing need not be conducted according to technical rules relating to evidence and
witnesses. Relevant evidence shall be admitted if it is the sort of evidence on which responsible persons are
accustomed to rely in the conduct of serious affairs, regardless of the existence of a common law or statutory rule
that makes improper the admission of the evidence over objection in a civil action. Hearsay evidence may be used
to supplement or explain direct evidence but is not sufficient by itself to support a finding unless it would be
admissible over objection in a civil action. The rules of privilege are effective to the same extent that they are
recognized in a civil action. Irrelevant and unduly repetitious evidence shall be excluded.

Authority: AS 43.70.075 AS 43.70.090

12 AAC 12.845. FINAL DECISION AND RECONSIDERATION. (a) For purposes of appeal to the
superior court, the commissioner's decision under AS 43.70.075(n) is a final administrative order and decision on
the last day when reconsideration of that decision can be ordered. The decision becomes effective 30 days after it is
issued under 12 AAC 12.855(c), unless
(1) a different effective date is stated in the decision; or
(2) the aggrieved person and the department, with the approval of the commissioner, agree to a different
effective date; the commissioner may delegate to the hearing officer a decision to approve a different effective date.
(b) Within no more than 20 days after the commissioner's decision is issued under 12 AAC 12.855(c), the
aggrieved person or the department may file, in accordance with 12 AAC 12.830 and 12 AAC 12.855, a motion for
reconsideration of the decision. The motion must set out the grounds upon which the aggrieved person or the
department believes the decision to be erroneous, unlawful, or defective.
(c) Within 30 days after the commissioner's decision is issued under 12 AAC 12.855(c), the commissioner may
order reconsideration on the commissioner's own motion or upon the filing of a motion in accordance with (b) of
this section. Upon reconsideration, the commissioner may affirm the decision, issue a new or modified decision, or
remand the matter to the hearing officer for additional proceedings. If the commissioner does not act on a motion
for reconsideration within the 30-day period, the motion for reconsideration is denied.
(d) The commissioner may grant, upon a motion by the aggrieved person or the department, a stay for a
particular purpose at any time before the decision becomes effective or before any appeal is filed with the superior
court. A motion for a stay must set out the reasons that a stay is sought. The commissioner will grant a stay only for
good cause shown.
(e) Any filing after issuance of the hearing officer's proposed decision shall be made with the hearing officer.
The hearing officer shall forward those filings to the commissioner.

Authority: AS 43.70.075 AS 43.70.090

12 AAC 12.850. CONTACTS WITH COMMISSIONER AND HEARING OFFICER. An aggrieved

person, the department, or a person acting on behalf of the aggrieved person or department may contact the
commissioner or hearing officer concerning a matter that is the subject of a pending or in-progress administrative
hearing only through the procedures set out in 12 AAC 12.800 - 12 AAC 12.855. The commissioner will not, and
hearing officer may not, make a communication without both parties present concerning a matter that is the subject
of a pending or in-progress administrative hearing to which the aggrieved person and the department are a party.
-10-
Authority: AS 43.70.075 AS 43.70.090

12 AAC 12.855. TIME PERIODS AND METHODS FOR FILING. (a) If a document must be filed on or
before a specified date under a provision of 12 AAC 12.800 - 12 AAC 12.855, the document may be filed by
personal delivery, certified mail, or facsimile transmission. If the document is filed by
(1) mail, the date of filing is the date when the department receives the document; or
(2) personal delivery or facsimile transmission, the document will not be considered timely filed unless the
department receives the document before the time the department closes for regular business on the specified date.
(b) If a date on or before which a document must be filed under 12 AAC 12.800 - 12 AAC 12.855 is a Saturday,
Sunday, or state holiday, the document must be filed on or before the next regular business day.
(c) For purposes of calculating a time period under AS 43.70.075 and 12 AAC 12.800 - 12 AAC 12.855, the
date when a notice of a department action is issued to an aggrieved person is the date that the department personally
delivers the notice, sends it by certified mail, or transmits it by facsimile transmission, whichever occurs first. An
aggrieved person represented by an attorney will be presumed to have been issued the decision if the decision is
issued to the attorney by one of the means in this subsection.
(d) A document may not be filed by electronic mail or by any other electronic means except facsimile
transmission.

Authority: AS 43.70.075 AS 43.70.090

ARTICLE 3.
GENERAL PROVISIONS.

Section
990. Definitions

12 AAC 12.990. DEFINITIONS. In this chapter, unless the context requires otherwise,
(1) “aggrieved person” means a person against whom the department takes action under AS 43.70.075;
(2) “business day” means a day other than Saturday, Sunday, or a state holiday;
(3) “commissioner” means the commissioner of commerce, community, and economic development;
(4) “department” means the Department of Commerce, Community, and Economic Development;
(5) “independent contractor” means a person who provides goods or services for compensation but does not
have the status of an employee while providing those goods or services;
(6) “line of business” has the meaning given in AS 43.70.110;
(7) “motion” means any written request of the commissioner or hearing officer seeking a ruling on an issue in
a case;
(8) “telephonically” means by telephone or video teleconferencing, as available;
(9) “cigarette” has the meaning given in AS 43.50.170;
(10) “endorsement” means authorization on the business license issued in accordance with AS 43.70.020 and
43.70.075, to sell tobacco products, electronic smoking products, or products containing nicotine;
(11) “tobacco product” has the meaning given in AS 43.50.390.

Authority: AS 08.01.080 AS 43.70.090 AS 43.70.110

AS 43.70.075 AS 43.70.105

-11-