Legislature(2017 - 2018)BARNES 124
05/04/2018 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| SB86 | |
| SB76 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 86 | TELECONFERENCED | |
| += | SB 76 | TELECONFERENCED | |
SB 76-ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG
3:50:34 PM
CHAIR KITO announced that the final order of business would be
CS FOR SPONSOR SUBSTITUTE FOR SENATE BILL NO. 76(FIN), "An Act
relating to alcoholic beverages; relating to the regulation of
manufacturers, wholesalers, retailers, and common carriers of
alcoholic beverages; relating to licenses, endorsements, and
permits involving alcoholic beverages; relating to the Alcoholic
Beverage Control Board; relating to offenses involving alcoholic
beverages; amending Rule 17(h), Alaska Rules of Minor Offense
Procedure; and providing for an effective date."
3:51:00 PM
REPRESENTATIVE WOOL moved to adopt HCS for CSSSSB 76(FIN) as the
working document.
CHAIR KITO objected for discussion.
3:51:35 PM
LAURA STIDOLPH, Staff, Representative Adam Wool, Alaska State
Legislature, explained the changes in Version S [included in
members' packets], which reads as follows [original punctuation
provided]:
• Sec 04.09.330, Page 23, line 28 Distillery retail
license. Adds: "The holder of a distillery retail
license may combine the holder's distilled
spirits under this subsection with other
ingredients that are not alcoholic beverages,
including mixers, liquids, and garnishes."
• Sec 04.09.350, Page 26, line 4 Seasonal
Restaurant or eating place tourism license
Changes population requirements from "20,000 or
less" to "40,000 or less".
• Sec 04.09.350, Page 26, line 27 Seasonal
Restaurant or eating place tourism license &
04.09.210(d) Page 12, line 30 Restaurant or
eating place license modify allowable hours for
providing entertainment from 3 PM to 11 AM.
• Sec 04.09.410, Page 30, lines 20-22 Manufacturer
sampling endorsement, add "; the holder of the
distillery manufacturer license may combine the
holder's distilled spirits under this paragraph
with other ingredients that are not alcoholic
beverages, including mixers, liquids, and
garnishes."
• AS 04.09.490, Page 39, lines 14-20 Package store
sampling endorsement
The holder of a package store sampling
endorsement may serve a total volume of samples
that does not exceed [12] 6 oz of beer or cider,
if the cider contains 8.5% alcohol by volume; [6]
3 oz of wine, mead, sake, or cider, if the cider
contains 8.5% or more alcohol by volume; or [1.5]
.75 oz of distilled spirits.
• AS 04.11.170, Page 52, lines 20-25 Distillery
license New sections added to read:
(f) The holder of a distillery license may
combine the distiller's product under (d)
and (e) of this section with other
ingredients, including mixers, liquids, or
garnishes, that are not alcoholic beverages.
(g) In this section, "distillery's product"
means an alcoholic beverage distilled on the
licensed premises.
• AS 04.11.400(a), Page 66, lines 2-3, Distillery
license
Add "one" before "winery retail", remove "or" add
"and one" before "distillery retail license for
each 9,000 population or fraction of that
population".
• AS 04.11.670, Page 78, lines 24-31, Page 79 lines
1-3, Foreclosure
Allows license issued under this title is to be
subject to foreclosure and be used as collateral
to secure a debt if the license is transferred to
another person, and the transferor secures
payment for real and personal property conveyed
to the transferee upon the promise of the
transferee to transfer the license back to the
transferor upon default in payment.
• AS 04.16.180(b), Page 93, lines 6-7, Revocation
of a license
Eliminates the requirement of license revocation
for certain violations, and reverts to earlier
language: "on third conviction, the license of
the premises involved may be suspended or
revoked."
3:55:24 PM
The committee took an at-ease from 3:55 p.m. to 3:59 p.m.
3:59:26 PM
REPRESENTATIVE BIRCH had a query regarding manufacture retail
licenses which may fall outside the population limit.
ERIKA MCCONNELL, Director, AMCO, replied in the affirmative.
4:00:24 PM
REPRESENTATIVE STUTES asked where it states in Title 4 that a
beverage dispensary license (BDL) cannot have anyone in the
establishment after closing time.
4:01:08 PM
DALE FOX, Alaska CHARR, answered that under AS 4.16.0.10(c):
A licensee, an agent, or employee may not permit a
person to enter and a person may not enter premises
licensed under this title between the hours of 5:00
a.m. and 8:00 a.m. each day. This subsection does not
apply to common carriers or to an employee of the
licensee who is on the premises to prepare for the
next day's business. A person may enter or remain on
the premises of a bona fide restaurant or eating place
licensed under this title to consume food or
nonalcoholic beverages.
MR. FOX added that under (d):
A municipality may provide for additional hours of
closure under AS 04.21.010.
REPRESENTATIVE STUTES asked whether the rewrite addresses
closing hours.
MR. FOX answered it does not.
REPRESENTATIVE STUTES asked why not.
MR. FOX answered that he thinks it was an oversight.
CHAIR KITO clarified that hours are 5 a.m. to 8 a.m. unless the
person is working, delivering, or contracting.
REPRESENTATIVE KNOPP asked whether there were afterhours parties
allowed on premises.
REPRESENTATIVE STUTES remarked that with BDLs, closing hours
means everyone off premises. She asked whether distilleries and
breweries had to adhere to this.
CHAIR KITO clarified that the rewrite leaves language in place
for existing entities. He added they would have to adhere to
what local ordinances require.
REPRESENTATIVE STUTES asked whether the statute requires
everyone off premise as well.
MS. MCCONNELL answered that the language states businesses may
not serve brewed beverages between 8 p.m. and 5 a.m.
REPRESENTATIVE WOOL underlined that state law states no patrons
may be on premises between 5 a.m. and 8 a.m. He said he did not
know whether local ordinance addresses the same hours.
MS. MCCONNELL assumed it meant the business would have to adhere
to the local ordinance.
4:08:28 PM
MS. MCCONNELL answered there is a situation in which food is
served meaning patrons can remain on premises to finish their
meal.
REPRESENTATIVE WOOL said the state says that after 5 p.m.
whereas the local ordinance can say that businesses have to
close their doors but don't have to kick everyone out.
MS MCCONNELL shared her belief that the municipality of
Anchorage, Alaska, has a local ordinance stating that businesses
can decide whether everyone has to leave or to stop serving
alcohol.
4:10:06 PM
CHAIR KITO removed his objection to adopting CS Version S.
There being no objection, it was so ordered.
4:10:21 PM
REPRESENTATIVE STUTES moved to adopt Amendment 1, labeled 30-
LS0015\S.3, Bruce, 5/4/18, which read as follows:
Page 21, line 19:
Delete "36"
Insert "24"
Page 21, line 20:
Delete "18"
Insert "12"
Page 22, line 19:
Delete "18"
Insert "12"
Page 22, line 21:
Delete "36"
Insert "24"
Page 23, line 26:
Delete "three"
Insert "two"
REPRESENTATIVE STUTES spoke to Amendment 1. She stated it would
specifically reduce allowable amounts by one third to 24 oz. She
said she thinks reducing samples by one third is a fair
compromise. She noted the bill sponsor is not opposed.
REPRESENTATIVE BIRCH expressed he was not comfortable with the
amendment because he does not know where the initial numbers
came from.
REPRESENTATIVE WOOL responded that the issue had come up when a
bill was pass in 2014. He spoke to the industry standard and
said that every state except Oklahoma has tasting rooms. He
stated the samples range from 2.5 oz to 3.25 oz and Alaska
allows 3 oz.
CHAIR KITO suggested Representative Wool was speaking about
distilled spirits specifically.
REPRESENTATIVE WOOL answered in the affirmative.
REPRESENTATIVE KNOPP said he thinks it is a great compromise.
4:15:21 PM
The committee took an at-ease from 4:15 p.m. to 4:15 p.m.
4:16:02 PM
REPRESENTATIVE CHUCK KOPP, Alaska State Legislature, spoke to
the work that had been done in creating the legislation. He
stated the bill sponsor had no opposition to Amendment 1. He
said that all things considered, it would not harm the bill.
4:17:15 PM
CHAIR KITO removed his objection. There being no further
objection, Amendment 1 was adopted.
CHAIR KITO mentioned a concern he had with sporting events and
theater alcohol consumption.
4:18:46 PM
The committee took an at-ease from 4:18 p.m. to 4:26 p.m.
4:26:35 PM
CHAIR KITO stated he had spoken with Senator Micciche, prime
sponsor, who had expressed he did have concerns about reducing
volumes. He said the sponsor had agreed about reducing samples
in package stores.
REPRESENTATIVE STUTES indicated she had previously spoken with
the sponsor of HB 357, Representative Kopp, who had presented no
objection.
4:27:38 PM
REPRESENTATIVE BIRCH moved to call for the question
4:28:07 PM
REPRESENTATIVE JOSEPHSON stated he did not feel there was a need
for that.
CHAIR KITO said it was unfortunate that bill had taken so long
to get to the current point. He stated he appreciated the
amount of work that had gone into the legislation. He added he
thought it was in decent shape to move forward.
REPRESENTATIVE WOOL commented there had been public testimony
but not much analysis within the committee. He said he
understood the "time crunch" the committee was under. He spoke
to changes in the bill versions.
REPRESENTATIVE BIRCH encouraged the committee to move the bill
forward.
4:34:40 PM
CHAIR KITO remarked that work in committee can seem like a
"teeter-totter" but that he was interested in moving the bill
forward.
4:35:39 PM
CHAIR KITO moved to report SB 76 out of committee as amended
with individual recommendations and the accompanying fiscal
notes. There being no objection, it was so ordered.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB86 Letters of Support 5.3.18.pdf |
HL&C 5/4/2018 3:15:00 PM |
SB 86 |
| SB76 Ver. S.pdf |
HL&C 5/4/2018 3:15:00 PM |
SB 76 |
| SB76 and HB 357 Letters of support 5.4.18.pdf |
HL&C 5/4/2018 3:15:00 PM |
HB 357 SB 76 |
| SB76 and HB 357 Oppostion Letters 5.4.18.pdf |
HL&C 5/4/2018 3:15:00 PM |
HB 357 SB 76 |
| SB76 Explanation of Changes Ver C to Ver S 5.4.18.pdf |
HL&C 5/4/2018 3:15:00 PM |
SB 76 |
| SB76 Amendment S.3.pdf |
HL&C 5/4/2018 3:15:00 PM |
SB 76 |