02/02/2024 03:15 PM House LABOR & COMMERCE

         HB 192-DELIVERY/PICK UP OF ALCOHOL; LICENSING                                                                      
                                                                                                                                
4:52:57 PM                                                                                                                    
                                                                                                                                
CHAIR SUMNER announced  that the next order of  business would be                                                               
HOUSE  BILL  NO. 192  "An  Act  relating  to curbside  pickup  of                                                               
alcoholic  beverages  sold  by   a  package  store;  relating  to                                                               
consumer  delivery  licenses;  and  providing  for  an  effective                                                               
date."                                                                                                                          
                                                                                                                                
4:53:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER  move  to adopt  the  proposed  committee                                                               
substitute  (CS) for  HB 192,  Version  33-LS0753\B, C.  Radford,                                                               
2/1/24, as a working document.                                                                                                  
                                                                                                                                
CHAIR SUMNER objected for the purpose of discussion.                                                                            
                                                                                                                                
4:53:33 PM                                                                                                                    
                                                                                                                                
SARENA HACKENMILLER,  Staff, Representative Jesse  Sumner, Alaska                                                               
State  Legislature, on  behalf of  prime sponsor,  Representative                                                               
Sumner,  read  the  summary of  changes  [included  in  committee                                                               
packet], which read as follows [original punctuation provided]:                                                                 
                                                                                                                                
     Version A to Version B                                                                                                     
                                                                                                                                
     Version B adds transitional regulations and updates an                                                                     
     effective date.                                                                                                            
                                                                                                                                
     Sections 1-5: No change.                                                                                                   
                                                                                                                                
     Section 6: Reference to SLA 2022 removed.                                                                                  
                                                                                                                                
     Section 7-8: No change.                                                                                                    
                                                                                                                                
     Section   9:   Replaces   original   section   9   with                                                                    
     transitional language  allowing the  Alcoholic Beverage                                                                    
     Control  Board to  adopt regulations  to implement  the                                                                    
     changes  made   by  this   Act,  which   cannot  become                                                                    
     effective prior to the effective date of this Act.                                                                         
                                                                                                                                
         Section 10: Prior section 9. This updates the                                                                          
     effective date to January 1, 2025.                                                                                         
                                                                                                                                
4:54:45 PM                                                                                                                    
                                                                                                                                
CHAIR SUMNER removed his objection.  Ther being no further                                                                      
objection, Version B was before the committee as a working                                                                      
document.                                                                                                                       
                                                                                                                                
4:55:04 PM                                                                                                                    
                                                                                                                                
DEBB   HERRON,   Director,   Public  Affairs   and   Governmental                                                               
Relations, Walmart,  paraphrased her written testimony  on HB 192                                                               
[included in  committee packet], which read  as follows [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
                                                                                                                                
     Chair Sumner  and members of  the Alaska House  Labor &                                                                    
     Commerce Committee:                                                                                                        
                                                                                                                                
     I want to thank Chair  Sumner and the Committee for the                                                                    
     opportunity to  share Walmart's support  of modernizing                                                                    
     our  regulated   beverages  laws   to  allow   for  and                                                                    
     integration  of   alcoholic  beverages   into  curbside                                                                    
     pickup and delivery services for Alaska customers.                                                                         
                                                                                                                                
     As  a retailer  with  9  stores in  the  state, we  are                                                                    
     greatly  attuned  to  the customer's  needs.  There  is                                                                    
     strong customer  demand for the convenience  offered by                                                                    
     curbside pickup and retail home  delivery, which is why                                                                    
     we  greatly appreciate  this Legislature's  willingness                                                                    
     to  remove  barriers to  a  business'  ability to  best                                                                    
     serve its customers.                                                                                                       
                                                                                                                                
     House Bill  192 would  allow package stores  to include                                                                    
     alcoholic  beverages  in  customer pick-up  orders  and                                                                    
     offer these  items in home delivery  to customers. This                                                                    
     is a highly convenient  service for customers that plan                                                                    
     their shopping  orders ahead of  time and  schedule use                                                                    
     of both services.                                                                                                          
                                                                                                                                
     Across all  different age demographics,  curbside pick-                                                                    
     up  and delivery  is wildly  popular across  the United                                                                    
     States.  More than  two-thirds  of  the country  allows                                                                    
     grocery stores to offer  integrated curbside pickup and                                                                    
     delivery orders to customers.                                                                                              
                                                                                                                                
     This bill facilitates the ability  of package stores to                                                                    
     serve their  customers by allowing  alcoholic beverages                                                                    
     to  be  included  in   curbside  pick-up  and  delivery                                                                    
     orders.  Providing  the  capability  for  consumers  to                                                                    
     order   ahead  of   time   increases  convenience   and                                                                    
     accessibility  while  enhancing  a store's  ability  to                                                                    
     offer the  services that customers  want and  need. The                                                                    
     convenience  of  curbside  pick-up  and  delivery  also                                                                    
     greatly benefits busy families  and individuals who may                                                                    
     experience challenges with instore shopping.                                                                               
                                                                                                                                
     Walmart  has a  proud  history of  being a  responsible                                                                    
     retailer, especially when it comes to alcohol sales.                                                                       
                                                                                                                                
     Adding  Alaska  to  the  list   of  states  that  allow                                                                    
     curbside pickup  and delivery of alcohol  would support                                                                    
     local, brick  and mortar businesses, local  jobs within                                                                    
     stores, and delivery-related  work. It enhances overall                                                                    
     customer convenience.                                                                                                      
                                                                                                                                
     Supporting  HB   192  will  offer   added  convenience,                                                                    
     improve  customer satisfaction,  and provide  customers                                                                    
     with greater access to local  and world class products.                                                                    
     Consumers resume  the ease and  straightforward ability                                                                    
     to  complete their  full order  at one  time --  saving                                                                    
     time, money, and hassle.                                                                                                   
                                                                                                                                
     Thank  you for  your  time and  consideration of  these                                                                    
     public   comments.  If   committee  members   have  any                                                                    
     questions  in  regard  to Walmart  operations  on  this                                                                    
     regulated product  and our  Online Pickup  and Delivery                                                                    
     services,  please  do not  hesitate  to  reach out  for                                                                    
     additional  information or  assistance.  Thank you  for                                                                    
     your consideration.                                                                                                        
                                                                                                                                
4:58:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER asked how much of Walmart's business in                                                                  
Alaska is curbside pick-up.                                                                                                     
                                                                                                                                
MS.  HERRON responded  that she  doesn't  have numbers  off-hand.                                                               
She said Walmart has nine stores  in the state, with each of them                                                               
currently  offering curbside;  only  four  have liquor  licenses.                                                               
She explained that curbside is  popular and detailed the curbside                                                               
delivery process.                                                                                                               
                                                                                                                                
5:02:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PRAX asked whether the committee would hear from                                                                 
the Board of Alcohol on enforcement, or the Department of Public                                                                
Safety.                                                                                                                         
                                                                                                                                
CHAIR SUMNER answered that they would be invited.                                                                               
                                                                                                                                
5:02:48 PM                                                                                                                    
                                                                                                                                
CHAIR SUMNER announced that HB 192 was held over.                                                                               
                                                                                                                                
5:03:26 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Labor and Commerce Standing Committee meeting was adjourned at                                                                  
5:03 p.m.