Legislature(2019 - 2020)ADAMS ROOM 519
05/14/2019 09:00 AM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB16 | |
| SB43 | |
| SB10 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 159 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 16 | TELECONFERENCED | |
| += | SB 43 | TELECONFERENCED | |
| + | SB 10 | TELECONFERENCED | |
CS FOR SENATE BILL NO. 16(FIN)
"An Act relating to certain alcoholic beverage
licenses and permits; relating to the bond requirement
for certain alcoholic beverage license holders; and
providing for an effective date."
9:01:32 AM
Co-Chair Wilson noted the committee would continue public
testimony from the previous afternoon.
WILLIAM HARRINGTON, SELF, ANCHORAGE (via teleconference),
did not support alcohol at sporting events and other fairs
where children were present. He shared a story from
personal experience. He did not believe rehab worked and he
did not like the idea of serving alcohol at Eaglecrest Ski
area in Juneau. He stressed that it was easy to purchase
alcohol in the state. He believed that serving alcohol
around children was harmful.
9:04:02 AM
JEROME HERTEL, ALASKA STATE FAIR, HOMER (via
teleconference), spoke in support of the bill. He believed
that the bill would enable the fair to continue to serve
alcoholic beverages as it had for the prior 37 years.
Co-Chair Wilson asked whether the fair had any violations
during the time the fair held the license. Mr. Hertel would
have to check. He believed that the fair was violation free
for most of the time they had held the license. He would
follow up for accuracy. Co-Chair Wilson clarified that she
wanted to point out on the record that the issue was not in
response to any improper action by the fair and was
responding to the reinterpretation of the license. Mr.
Hertel answered that there had been no problems brought on
by the fair.
Representative Josephson interpreted that the bill
grandfathered in the fair even if the bill did not create a
new fair license. Mr. Hertel affirmed that the fair would
be grandfathered in as a recreational site license.
9:07:11 AM
CODIE COSTELLO, VICE PRESIDENT, STRATEGIC DEVELOPMENT AND
COMMUNICATIONS, ALASKA CENTER FOR THE PERFORMING ARTS,
ANCHORAGE (via teleconference), spoke in support of the
legislation. The bill provided clarity and stability to
allow the center to move forward and grow its business
responsibly. She indicated that the center never had any
prior incidences with the license.
Co-Chair Wilson clarified that the bill grandfathered in
the exact prior activities allowed under the license. Ms.
Costello affirmed the statement.
9:08:14 AM
TIFFANY HALL, EXECUTIVE DIRECTOR, RECOVER ALASKA, ANCHORAGE
(via teleconference), requested an amendment for the bill.
She shared that the organization worked to reduce excessive
alcohol use and reduce high risk drinking by promoting best
practices. She elaborated that the harm caused by alcohol
use cost the state $1.84 billion annually. Alaskans were
dying at a rate three times higher than the national
average. She emphasized that any legislation that increased
the outlets for alcohol consumption was antithetical to
best practices. She understood many of the businesses had
already been serving alcohol. She voiced that she was not
speaking against the bill but hoped that the committee
would consider adding health and safety measures to the
bill. She suggested amending the bill to include a keg
registration and noted that was a national best practice to
ensure that if a person purchased alcohol for an underage
person, they would be held liable. She recommended that the
state regulate internet sales. She communicated that Alaska
was one of the only states that did not have any regulation
against purchasing alcohol from out of state. Currently, a
teenager could order alcohol from the internet. In
addition, Alaska was not collecting any taxes on alcohol
internet sales.
Co-Chair Wilson asked if she realized that the bill was not
authorizing any new licensing. Ms. Hall understood and
appreciated the comment. She advised that it would be wise
to include public health and safety practices in SB 16. Co-
Chair Wilson alerted Ms. Hall that a Title IV rewrite was
expected and was the best way to address her concerns.
9:11:30 AM
SARAH OATES, PRESIDENT AND CEO, ALASKA CABARET HOTEL
RESTAURANT AND RETAILERS ASSOCIATION (CHARR), ANCHORAGE
(via teleconference), testified in support of the bill. She
reported that the association represented most of the
alcohol licensees in the state. The organization supported
grandfathering in the existing licensees and returning the
license of business who had lost their license due to the
change in enforcement.
9:13:21 AM
Co-Chair Wilson CLOSED public testimony.
Co-Chair Wilson asked what activities were allowed under a
recreational license. She requested that Ms. McConnell
recount exactly when the interpretation changed, and the
first licensee was notified.
ERIKA MCCONNELL, DIRECTOR, ALCOHOL AND MARIJUANA CONTROL
OFFICE, DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC
DEVELOPMENT, answered that the statute AS 04.11.210
pertaining to a Recreational Site License allowed a license
holder to sell alcohol during and one hour before and after
a recreational event that was not a school event. She read
the following from the statute, A recreational site
included a location that baseball games, car races, hockey
games, dog sled racing events or curling matches are
regularly held during a season. She elucidated that the
board began looking at the issue around 2010 or 2011 and
crafted a policy that it implemented for two years.
Subsequently, the office undertook a regulations project
that was not implemented. In 2014 and in 2017, a
legislative audit cited the board for issuing licenses that
were not in compliance with the section of statue. She
shared that the board had struggled with the issue for the
past 10 years.
Co-Chair Wilson asked when the board first alerted a
license holder they no longer fit under the recreational
license. Ms. McConnell replied that the 2018/2019 license
renewal period was the first time the board issued a final
renewal for two years along with a notice of non-renewal
subsequent to the end of the two-year period.
9:16:30 AM
Co-Chair Wilson inquired what license options were
available when they were no longer able to obtain a
recreational license. Ms. McConnell replied that the answer
depended on the type of business affected. She elaborated
that two businesses were able to find a restaurant or
eating place license and others did not attempt to find
other options like a beverage dispensary license. She noted
that a beverage dispensary license was only available from
the secondary market and were tremendously expensive. Co-
Chair Wilson asked why the board had not looked at the
possibility of grandfathering the businesses in. She
pointed out that the result would have shut down businesses
that were not at fault. Ms. McConnell answered that no
provision existed in statute for the board to grandfather
in businesses. However, the Title IV rewrite steering
committee in 2012, proposed granting a noncompliant
recreational site licensee an 8 year phase out period. Co-
Chair Wilson asked if the action opened the state up to a
lawsuit. She continued that the state had allowed
businesses to grow based on a legally issued license and
through no fault of their own they had been told their
license was invalid. Ms. McConnell replied that she was not
an attorney and was not able to answer the question.
9:18:54 AM
Representative Knopp deduced that the recreational licenses
had been issued liberally at one time. He thought that the
reason they were not in compliance was because the
recreational activities definitions were not in statute.
He inquired whether Ms. McConnell felt that it was a
little unreasonable to expect that a legislative body
could identify every recreational opportunity. Ms.
McConnell responded that under the situation the common
guidance was to refer to the list of examples given in
statute and evaluate the new proposal to determine whether
it met the commonalities of the examples. She was unaware
why the prior boards made the decisions it had 15 to 20
years earlier. She noted that they did appear to issue
licenses to businesses that did not operate seasonally and
whose activities did not match the commonalities included
on the list in statute. Representative Knopp was frustrated
and disappointed that the past director had not come
forward to the legislature when the issue had occurred to
ask for a remedy. He commented that instead, the
legislature spent numerous years trying to fix what the
board was trying to undo. The businesses operated in
compliance and in the restrictive manner laid out in
statute. He asked if Ms. McConnell thought the legislature
should address recreation holistically in statute and not
try to define it via example.
9:22:07 AM
Ms. McConnell answered that the board did not wish to take
licenses away from businesses. She wanted clarity and
boundaries from the legislature. She suggested that the
more clarity the better in terms of what businesses should
be able to obtain liquor licenses. Representative Knopp
maintained that under some circumstances legislative intent
had to suffice.
Representative Josephson asked if Ms. McConnell had been
present at the recent House Labor and Commerce Committee
meetings. Ms. McConnell believed so. Representative
Josephson indicated that the prior version of the bill
repealed surrendering the caterers permit. He noted the CS
did not include the provision. He asked whether it was
significant. Ms. McConnell answered that the provision was
not significant. She reported that the permit was issued
via email and the licensee was not required to return the
permit after the event.
Co-Chair Wilson asked if any of the 11 impacted businesses
had been given notice or renewed. Ms. McConnell answered
that one of the 11 businesses that had been denied claimed
they had not been noticed and was currently working through
an appeal process. She added that the other businesses were
given notice. Co-Chair Wilson understood that one of the
ski facilities was renewed last year. She asked whether
they received a notice that it was the last renewal. Ms.
McConnell answered that the ski area had been renewed
without notice. Co-Chair Wilson asked why. Ms. McConnell
was not privy to why the board renewed the license. Co-
Chair Wilson noted that the ski area did not fall under the
interpretation of statute and asked whether she advises the
board. Ms. McConnell responded that she advised the board
to deny the renewal. Co-Chair Wilson remarked that the
board renewed anyway. Ms. McConnell affirmed the statement.
Co-Chair Wilson related that based on the renewal another
ski area applied for the license and was denied. Ms.
McConnell answered that the applicant had written to her
and acknowledged that a ski area did not comply with the
statute guidelines but noted the history of approving
recreational site licenses for other ski resorts.
9:26:32 AM
Co-Chair Wilson restated her question regarding one ski
resort renewal prompting another ski area to apply only to
be denied. Ms. McConnell responded in the affirmative. Co-
Chair Wilson noted that there were numerous issues going on
with the Alcoholic Beverage Control (ABC) Board. She
reiterated her previously stated concerns regarding the
issue. She notified the committee that the denied ski area
had their application fee returned but had wasted much time
and investment applying. She also noted the issue regarding
hours for playing music and reported that the bill would
allow an organization to revert to their prior practices if
they reapplied for a recreation site license even if the
business had surrendered its license and purchased another
type of license. The bill authorized that the business had
to choose which license they wanted to operate under and
sell the other. She asked Ms. McConnell if she was correct.
Ms. McConnell answered in the affirmative. She clarified
that a business could only operate under one license.
9:29:00 AM
Representative Knopp asked whether a statute guided the
entertainment hours under the recreational site license.
Ms. McConnell answered that the recreational site licenses
lacked any entertainment restrictions. However, there were
entertainment restrictions for restaurant licenses.
Co-Chair Wilson asked to hear from Legislative Audit
regarding future auditing problems with passage of the
bill.
KRIS CURTIS, LEGISLATIVE AUDITOR, ALASKA DIVISION OF
LEGISLATIVE AUDIT, answered that auditors looked at
criteria and audited regarding the statutes and
regulations. She affirmed that providing clarity to the
board, auditors, and the public was very important. Co-
Chair Wilson ascertained that the statute had allowed for
much interpretation. She understood that the statute
required clarity. Ms. Curtis voiced that the statutes were
very clear and listed the specific activities that
qualified a business. She listed the licensed entities
found in the audit such as a spa, pool hall, travel tour
company, etc. were clearly not in accordance with
statute.
Co-Chair Wilson wanted to truly right some wrongs related
to licensees but did not want to grant new licenses.
9:32:19 AM
Representative Knopp maintained his concern regarding the
entertainment hours of operation in the bill. Co-Chair
Wilson replied that if a business went back to a
recreational license they would be allowed to operate in
the prior manner.
CSSB 16(FIN) was HEARD and HELD in committee for further
consideration.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 10 NEW FN DHSS BH SPC 5.14.19.pdf |
HFIN 5/14/2019 9:00:00 AM |
SB 10 |
| SB010 Sponsor Statement 5.3.19.pdf |
HFIN 5/14/2019 9:00:00 AM |
SB 10 |
| SB010 Letters of Support 5.3.19.pdf |
HFIN 5/14/2019 9:00:00 AM |
SB 10 |
| SB010 Supporting Document SSPC White Paper 5.3.19.pdf |
HFIN 5/14/2019 9:00:00 AM |
SB 10 |
| HB0159 Supporting Document - ASMA letter of support 5.13.19.pdf |
HFIN 5/14/2019 9:00:00 AM |
HB 159 |
| SB010 Supporting Document SSPC Legislative Audit Report 5.3.19.pdf |
HFIN 5/14/2019 9:00:00 AM |
SB 10 |
| HB0159 Supporting Document - UW Medicine letter of support 5.13.19.pdf |
HFIN 5/14/2019 9:00:00 AM |
HB 159 |
| SB 10 Response DEED Grants.pdf |
HFIN 5/14/2019 9:00:00 AM |
SB 10 |
| HB 79 PERS Plan Comparison.pdf |
HFIN 5/14/2019 9:00:00 AM |
HB 79 |
| SB 43 NEW FN DCCED CBPL 5.12.19.pdf |
HFIN 5/14/2019 9:00:00 AM |
SB 43 |