Legislature(2005 - 2006)HOUSE FINANCE 519
02/07/2005 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB32 | |
| HB15 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| HB 15 | |||
| HB 32 | |||
HOUSE BILL NO. 15
An Act relating to seasonal alcoholic beverage
licenses; and providing for an effective date.
MIKE PAWLOWSKI, STAFF, REPRESENTATIVE KEVIN MEYER, provided
an overview of HB 15. He noted that there are two distinct
sections to the bill.
The primary purpose of the bill is to create an alcoholic
beverage license for outdoor recreation lodges. He noted
that at present time, lodge owners provide alcoholic
beverages to their guests by either:
· Encouraging guests to bring their own, or
· Providing alcoholic beverages free of charge during
meals, or
· Selling alcoholic beverages illegally.
That creates a difficult situation for lodge owners and the
wholesale or package store seller to that lodge.
Mr. Pawlowski continued, under the current system, a lodge
wishing to sell and provide alcoholic beverages to their
guests must obtain both an alcohol dispensary license and a
package store license, since licenses are limited based on
population, many lodge owners cannot obtain a license even
if they wanted to. HB 15 would create a new alcoholic
beverage license for outdoor recreation lodges.
He continued, HB 15 would limit the license by:
· Allowing a licensee to serve only their overnight
guests and off-duty-staff, or
· Expressly stating that the license may not be
transferred.
Licenses would cost $1,250 for two years, as opposed to the
current $4,000 cost. Under AS 04.11.680, a licensee may
obtain a "seasonal" half-price license. He pointed out that
the fiscal note is positive, assuming very few lodges will
actually get the license.
Mr. Pawlowski added that the second part of the bill is
found in Section 3, an amendment offered by Representative
Rokeberg in the House Labor and Commerce Committee, which
exempt licenses issued under the old public convenience
statute from the current prohibition on transfers. The
action would allow the last existing license issued under
the former statute to be transferred with the same
limitations on a transfer found in the current statute.
The Alcohol Beverage Control (ABC) Board testified in the
House Labor and Commerce Committee that they supported the
amendment and it passed without objection.
Mr. Pawlowski summarized that HB 15 provides an opportunity
for lodge owners to develop another revenue stream for their
business, while providing a legal service to the guests.
2:19:50 PM
Representative Joule referenced Section 4. He asked how
that language would impact a community that has the local
option. Mr. Pawlowski advised that the local option under
Chapter 4 always supercedes the licensing in the statutes.
DOUG GRIFFIN, (TESTIFIED VIA TELECONFERENCE), DIRECTOR,
ALCOHOL BEVERAGE CONTROL (ABC) BOARD, ANCHORAGE, explained
that the ABC Board has known that some lodges operating in
the State have been doing it illegally, noting that it has
been difficult to police. Licensing the entity will be an
improvement and the Board looks forward to working with that
new type of license. There are more and more lodges
springing up every year and there needs to be proper
training for staff. He offered to answer questions of the
Committee.
Mr. Griffin acknowledged that the fiscal impact was
difficult to determine, as the Board had to make assumptions
regarding how many lodges there are and how many would want
to participate in the program. The ABC Board continues to
believe that the legislation would generate income for the
State.
Vice-Chair Stoltze commented that liquor licenses go through
a local review process and assumed that would happen in the
unorganized areas also. Mr. Griffin explained that would be
difficult to determine. There are some lodges in Vice Chair
Stoltze's area that are remote that could qualify. The ABC
Board continues to see licenses going through the local
review process as part of their renewal package. He
suspected that most would be in the unorganized boroughs.
Vice-Chair Stoltze asked if a second-class borough had the
authority to regulate alcohol licenses. Mr. Griffin
responded that there is a role for local governments to
place. In the Mat-Su Borough, the Assembly has chosen a
unique force of action for delegating that responsibility to
their planning department. In most cases, every two years,
every license comes before the local Assembly.
Vice-Chair Stoltze commented that he was not suggesting that
the local process is not flawed and/or political. He did
not believe that most of the lodges wanted to get involved
in outside sales. He asked if there was some level of
public interest. Mr. Griffin explained that there are a
number of different processes that must be passed through.
In an unorganized area, Title 4, there is a petition
requirement to show support for the local license in the
surrounding areas. There are requirements that a petition
process be followed before the license can be issued.
Vice-Chair Stoltze inquired if the structures would have to
be permanent to qualify. Mr. Griffin replied that had not
been defined but there would be discretion regarding each of
the circumstances. He did not think it was essential and
that each would have to meet certain criteria.
Vice-Chair Stoltze speculated that this would not be a
moneymaker for the State except perhaps through the fees
paid.
2:29:46 PM
Co-Chair Meyer explained that he had brought the bill
forward from recommendations received by the Brown Jug
Warehouse. They had concerns that some of lodges were
selling alcohol without a license. Co-Chair Meyer believed
that if a levy were charged for the alcohol, it would
provide new revenue for the State. He understood that the
administration was handled through the Department of Public
Safety, State Troopers. Co-Chair Meyer envisioned that they
would handle the enforcement also.
Co-Chair Meyer pointed out that there has been concern that
"bars" would be set up in some remote areas. In order to be
served, a guest would be required to spend at least one
night. He inquired if the ABC Board was comfortable with
the language as currently written. Mr. Griffin replied that
they were comfortable with that language.
Co-Chair Meyer asked about the amendment adopted by the
House Labor and Commerce Committee. Mr. Griffin stated that
it was reviewed and that it would not present any problems
for licensing.
In response to a request by Co-Chair Meyer, Mr. Griffin
discussed the effect of the Rokeberg amendment. He advised
that there currently exists a public convenience license;
these licenses are not transferable because they are beyond
the quota. He addressed the anomaly of the law and the
history of transferring.
Co-Chair Meyer questioned if a lodge could serve alcohol to
guests and then add the price to their room rate. Mr.
Griffin replied they could not; it would be contrary to
Title 4.
Vice-Chair Stoltze asked if it would be a non-transferable
license. Mr. Griffin replied that there is a limitation
making it non-transferable. There was concern expressed if
a lodge were sold, the new owner then has to apply for a new
license.
Representative Hawker inquired how the drafters determined
the $1,250 dollar amount. Mr. Pawlowski replied that the
detail in determining that figure was arrived at by looking
at the cost of a full beverage-dispensing license and then
dividing it. It's assumed that would be a reasonable level
a small business could afford.
Representative Hawker inquired about the drop in fee for
seasonal places. Mr. Pawlowski discussed that seasonal
licensing was addressed in AS 04.11.680.
2:40:21 PM
BOB KLEIN, (TESTIFIED VIA TELECONFERENCE), BROWN JUG
WAREHOUSE, ANCHORAGE, explained that he is currently wearing
three hats as the Operations Manager for Brown Jug, Chairman
of the Alaska Cabaret Hotel and Restaurant Retail
Association (CHARR) Government Affairs Committee and alumni
of the ABC Board. He provided background history of the
bill. He explained how his business deals with customers in
Bush Alaska who have been involved in illegal alcohol
activities. Mr. Klein discussed the benefits and privileges
related to the legislation and mentioned that there have
been no objections regarding non-transferability. He stated
that it is a good bill as it closes the gap and answers
statewide need for alcohol licensing.
Representative Foster MOVED to report CS HB 15 (L&C) out of
Committee with individual recommendations and with the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CS HB 15 (L&C) was reported out of Committee with
"individual recommendations and with zero note #1 by the
Department of Fish & Game and fiscal note #2 by the
Department of Public Safety.
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