Legislature(1995 - 1996)
05/04/1996 11:10 AM Senate JUD
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
CSHB 372(L&C) am LIQUOR LICENSES
CHAIRMAN TAYLOR brought up CSHB 372(L&C) am as the next order of
business before the Senate Judiciary Committee. The chairman
stated the committee would stand in recess to a call of the chair
to await a Senate committee substitute for HB 372 which would
combine Senator Halford's bill and Representative Rokeberg's bill.
SENATOR ELLIS asked if there was a title problem.
CHAIRMAN TAYLOR stated he hasn't seen any of that work yet. He
hasn't yet seen that any of those problems are bothering anybody.
SENATOR ELLIS commented that the only thing worse than fish wars
are liquor wars.
Committee staff informed the committee that the committee subsitute
was on its way.
CHAIRMAN TAYLOR called a brief at ease to await the scs.
CHAIRMAN TAYLOR called the committee back to order and stated that
committee members have had a chance to perform a cursory review of
the proposed committee substitute. The chairman stated he does not
understand the changes the Senate CS makes, and asked
Representative Rokeberg to walk the committee through them.
REPRESENTATIVE NORMAN ROKEBERG, prime sponsor of HB 372, stated he
is also absorbing the same information the Judiciary Committee
members are trying to absorb. The primary differences in Section
1 are that subsection (e) is no longer allowed as an exemption for
the new category of exempt licenses, which for purposes of
discussion he will call the tavern licenses. The tavern licenses
would now have to meet the 50/50 food requirement under the
restaurant license.
CHAIRMAN TAYLOR asked if what Representative Rokeberg is referring
to as taverns, others refer to as brewpubs.
REPRESENTATIVE ROKEBERG responded no. In the state of Alaska, we
have the beverage dispensary license, the restaurant license, and
the 10% exempt license. In addition, we have the brewpub
provision, which specifies that a person can produce 75,000 gallons
or less on premises, but they have to have a beverage dispensary
license. To be a brewpub, you have to have a beverage dispensary
license. There are several businesses in the process of opening up
in Anchorage which avoided the cost of a beverage dispensary
license by acquiring a brewery license and a restaurant eating
place license.
CHAIRMAN TAYLOR called a recess so that Representative Rokeberg
could return to the floor of the House for a vote on the railroad
bill.
CHAIRMAN TAYLOR called the committee back to order.
MIA COSTELLO, Aide to Representative Norman Rokeberg, prime sponsor
of HB 372, stated the bill would repeal the exemption for
businesses with a brewery license and a restaurant eating place
license with the 50/50 food provision.
SENATOR ELLIS asked if the 50/50 food rule is gross for the whole
establishment, or is it per customer.
MS. COSTELLO responded the rule is applied as a gross to the sales
of the establishment. She stated that the next change is to allow
businesses with brewery and restaurant eating place licenses to
have entertainment until 11:00 p.m.
Number 360
SENATOR ELLIS asked what the rationale was for the change from 9:00
p.m. to 11:00 p.m.
MS. COSTELLO thinks it was a compromise.
CHAIRMAN TAYLOR added that's about the time the Anchorage Symphony
gets done.
SENATOR ELLIS asked who it was a compromise between.
MS. COSTELLO responded it is her understanding that the compromise
occurred because establishments wanted to be able to have
entertainment and attract people. But people aren't eating dinner
at 10:00 and 11:00 p.m.: they're drinking.
SENATOR ELLIS asked Ms. Costello to explain what portion of the scs
is from the Rokeberg bill and what portion is from the Halford
bill.
MS. COSTELLO stated originally SB 372 still allowed those people
who received exemptions to be exempt from the 50/50 food provision.
The scs does not allow that. In Section 2, the change was from
6:00 p.m. originally, to 11:00 p.m.
CHAIRMAN TAYLOR stated HB 372 would grandfather in those businesses
who already have a brewery and a restaurant eating place license.
SENATOR ELLIS asked why we would want to prohibit new businesses
from getting brewery and restaurant eating place licenses.
MS. COSTELLO responded she cannot answer that question.
CHAIRMAN TAYLOR thinks that previously, businesses had to purchase
a beverage dispensary license to have a brewpub business.
SENATOR ELLIS thinks that businesses with beverage dispensary
licenses and brewpub businesses felt that businesses with
combination brewery and restaurant eating place licenses would be
in competition with them.
CHAIRMAN TAYLOR thinks HB 372 would stop competition at a lower
entry fee.
SENATOR ELLIS stated he never knew there was a state policy to
prohibit brew-pubs.
CHAIRMAN TAYLOR thinks that the current trend is to cut back on the
availability of alcohol, but businesses with combination brewery
licenses and restaurant eating place licenses were expanding
alcohol sales and competing directly with brewpubs that owned
liquor dispensary licenses. He asked Ms. Costello if he is
relating things she has heard that are driving HB 372.
Number 463
MS. COSTELLO replied yes. The other change to the bill is Section
4, which states that the ABC Board will have a public hearing on or
before the first of next year to discuss the changes in HB 372.
There are a number of people on hold for these licenses, and the
board has issued a moratorium on issuing the licenses until HB 372
passes.
SENATOR ELLIS asked how long the moratorium has been in place and
how many licenses are being held up by the moratorium.
MS. COSTELLO stated she knows of four, three of which have been
issued by the board in the Anchorage area. There are five
applications that are being held up by the moratorium. Whether or
not more have applied since that time, which was about two months
ago, she does not know.
CHAIRMAN TAYLOR asked if there would be nine new establishments
selling alcohol in Anchorage.
MS. COSTELLO replied that three businesses have received these
types of licenses and will be grandfathered in under this bill.
The others would not be grandfathered in if HB 372 passes.
SENATOR GREEN asked if this is outside the purview of the ABC board
at this time.
CHAIRMAN TAYLOR responded that without HB 372, the ABC Board would
be forced to issue more licenses.
SENATOR MILLER made a motion to adopt SCS CSHB 372(JUD). The
committee substitute was adopted by a vote of three yeas, one nay,
and one absent. Voting for adoption were Senators Taylor, Miller,
and Green. Voting against adoption was Senator Ellis. Senator
Adams was absent.
SENATOR ELLIS asked how the title change will be handled.
SENATOR MILLER stated a title change resolution will be adopted in
the Rules Committee.
MS. COSTELLO added that a title change resolution has already been
drafted and Senate Judiciary Committee staff has a copy of that
resolution.
SENATOR MILLER made a motion to discharge SCS CSHB 372(JUD) from
the Senate Judiciary Committee with individual recommendations.
SENATOR ELLIS objected. CHAIRMAN TAYLOR asked that the roll be
called on the motion. The motion was adopted by a vote of three
yeas, one nay, and one absent. Voting for the motion were Senators
Taylor, Miller, and Green. Voting against the motion was Senator
Ellis. Senator Adams was absent.
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