02/28/1995 03:00 PM House ITT

 Number 026                                                                    
 HITT - 02/28/95                                                               
 HB 162 - ALCOHOL SALES IN HOTEL ROOMS                                       
                                                                               
 REPRESENTATIVE PETE KOTT, PRIME SPONSOR, stated that HB 162 enabled           
 hotels/motels to place a refrigerated or non-refrigerated                     
 device/cabinet into individual rooms stocked with alcoholic                   
 beverages for purchase.  There are enough mechanisms built into the           
 system to ensure that the sale of beverages is to those currently             
 authorized.  He felt this would benefit the domestic and                      
 international visitors traveling to Alaska.  He added that if                 
 someone wants alcohol, they'll find a way to get it.  He'd prefer             
 that they have the option in their room to acquire it versus                  
 driving a rental car to a bar and getting inebriated and driving              
 back to the hotel.                                                            
                                                                               
 Number 092                                                                    
                                                                               
 DENNIS LAVEY, OWNER, DAYS INN HOTEL, and President of the Alaska              
 Hotel/Motel Association (AHMA), which represents 80 hotels in                 
 Alaska.  He stated the mini-bar or in-room service/refreshment                
 center units are known world-wide today and are not just for                  
 dispensing alcohol but, snacks as well.  Seventy percent of the               
 sales are snacks, not alcohol.  Actually, the biggest selling item            
 is bottled water, for those concerned about water in a given                  
 area/country.                                                                 
                                                                               
 MR. LAVEY continued that with the technology available today, the             
 new machines eliminate the concerns about selling alcohol at                  
 certain hours or the capabilities of minors obtaining it.  The                
 machines and the computer systems that control them are able to               
 block access during particular times or to minors.  In a different            
 vein, he spoke of foreign guests that may not know how to ask for             
 these items.  The technology allows a foreign language to be                  
 displayed at these machines, enabling and simplifying the guests'             
 purchase of these items.                                                      
                                                                               
 MR LAVEY offered there will be additional jobs in stocking and                
 servicing these machines.  He noted that there are only six states            
 (Alaska, Utah, Arkansas, Mississippi, Nebraska and South Carolina)            
 that have not legalized these mini-bars.  The other five states are           
 generally anti-alcohol.  He concurred that it would be better to              
 have people drinking in their room than driving a rental car,                 
 especially here in the wintertime, looking for adult beverages.               
                                                                               
 REPRESENTATIVE BRIAN PORTER questioned if the terminology quoting             
 a "refrigerated" unit was too restrictive, or are all the units               
 refrigerated?                                                                 
                                                                               
 MR. LAVEY responded that he has not seen any that weren't                     
 refrigerated.  The non-refrigerated items are housed in a separate            
 non-refrigerated compartment that is still behind the same door.              
 The terminology is fine with him.                                             
                                                                               
 Number 178                                                                    
                                                                               
 BILL DUGDALE, GENERAL MANAGER, WESTMARK HOTEL (Anchorage), offered            
 his endorsement of HB 162.  Since this effort began two years ago,            
 there have been six additional states that have passed similar                
 legislation.  The industry has a good success rate providing this             
 guest convenience.  It's a feature that many travelers have come to           
 expect on international and domestic levels.  He added that many              
 insurance companies have no problem with  coverage on hotels that             
 do have these in-room refreshment centers.                                    
                                                                               
 MR. DUGDALE recalled that two years ago, this legislation was                 
 successful in being moved through the House and Senate but, was               
 vetoed by Gov. Hickel.  The Governor's position was that he didn't            
 want to make alcohol more accessible to people "within" Alaska.               
 Mr. Dugdale concurred on the greater risk factor for guests                   
 consuming alcohol having driven somewhere to get it versus the                
 confines of a hotel room.  It's a huge benefit for women travelers            
 who are uncomfortable going to a lounge/bar and, would prefer a               
 cocktail in the privacy of their own room.                                    
                                                                               
 MICHAEL ALLEN, GENERAL MANAGER, WESTMARK HOTEL (Juneau), fully                
 supports HB 162.   According to hospitality demographics, people              
 are spending more time in their rooms.  They look for ways to                 
 increase in-room amenities.  They see it as a safety factor; less             
 time spent outside the room resolves crime issues.  Hotels have               
 adequate control systems in place to ensure meeting the criteria              
 being met in lounges and restaurants in dispensing alcohol.                   
                                                                               
 Number 244                                                                    
                                                                               
 REPRESENTATIVE ALAN AUSTERMAN asked if any hotels were using these            
 facilities without alcohol?  He felt if the other items were so               
 popular, they could already be in place without offering the                  
 alcohol portion of it.                                                        
                                                                               
 MR. ALLEN responded not to his knowledge.                                     
                                                                               
 Representative James arrived at 3:15 p.m.                                     
                                                                               
 REPRESENTATIVE KOTT offered that these units are expensive.  If one           
 isn't allowed to sell alcohol as part of that convenience package,            
 the profit margin wouldn't justify the expense for the system.  He            
 doubted that every single room would have one initially because of            
 the up-front cost.                                                            
                                                                               
 REPRESENTATIVE AUSTERMAN inquired if the wording on page 2, lines             
 1 and 2, regarding the key or combination lock system, is                     
 sufficient to cover electronic capability.                                    
                                                                               
 MR. ALLEN affirmed that the wording is sufficient to cover                    
 electronic measures controlled by the hotel front desk.                       
                                                                               
 CHAIRMAN BEVERLY MASEK asked if package stores, restaurants and               
 bars are in support of this bill.                                             
                                                                               
 MITCH GRAVO, LOBBYIST, ALASKA HOTEL AND MOTEL ASSOCIATION,                    
 volunteered that the Cabaret Hotel and Restaurant Retail                      
 Association (CHARR) is in favor of this legislation.                          
                                                                               
 REPRESENTATIVE AUSTERMAN made the motion to move HB 162 with                  
 individual recommendations, and the zero fiscal note to the next              
 committee.                                                                    
                                                                               
 There being no objections, HB 162 passed out of committee.