04/11/2003 03:25 PM House L&C

HB 234-BREWPUBS; ABC BOARD                                                                                                    
                                                                                                                                
Number 0164                                                                                                                     
                                                                                                                                
CHAIR ANDERSON  announced that the  next order of  business would                                                               
be  HOUSE  BILL  NO.  234,  "An Act  relating  to  brewpubs,  and                                                               
continuing  the  existence  of  the  Alcoholic  Beverage  Control                                                               
Board; and providing for an effective date."                                                                                    
                                                                                                                                
Number 0168                                                                                                                     
                                                                                                                                
REPRESENTATIVE LESIL McGUIRE, Alaska  State Legislature, spoke as                                                               
the sponsor  of HB 285  and informed  the committee that  she met                                                               
with the  parties who testified  at the  last hearing on  HB 234,                                                               
and they have worked out an  agreement in the form of a committee                                                               
substitute (CS).  The earlier  bill adopted the recommendation by                                                               
the  Legislative Audit  Division to  limit the  scope of  the ABC                                                               
[Alcoholic  Beverage   Control]  Board's  power   to  investigate                                                               
prostitution  and  gambling.    She  said  there  are  compelling                                                               
arguments  that ABC  officials are  the most  likely to  discover                                                               
prostitution and  gambling.  So  that limitation is  removed from                                                               
the proposed CS, she said.                                                                                                      
                                                                                                                                
Number 0280                                                                                                                     
                                                                                                                                
REPRESENTATIVE McGUIRE  stated that the proposed  CS also changes                                                               
the bill's  earlier provisions on brewpubs.   After conversations                                                               
with  various business  people  in the  industry,  she said  they                                                               
agreed that  increasing the allowable  number of gallons  sold by                                                               
brewpubs  is  a major  policy  change  and  might blur  the  line                                                               
between  retailing and  manufacturing.   She said  that she  will                                                               
work with  Representatives Rokeberg and Crawford,  CHARR [Cabaret                                                               
Hotel  Restaurant  &  Retailers   Association]  people,  and  the                                                               
various  interests  during  the  interim and  discuss  the  whole                                                               
concept  of the  three-tiered system  - where  it is  working and                                                               
where  it isn't.    She  said that  it's  not  just brewpubs  and                                                               
breweries that have  issues; there are other areas  of the Alaska                                                               
statute that need  to be examined.  She thanked  the president of                                                               
CHARR for  his hard work;  she relayed  that he will  support the                                                               
growler  issue, [the  sale by  brewpubs  of 5  gallon amounts  to                                                               
customers].   In developing  the proposed CS,  she and  the other                                                               
interested  parties  agreed  that  brewpubs'  clients  are  their                                                               
patrons, whereas a manufacturer's clients  are found all over the                                                               
state and potentially in other states.                                                                                          
                                                                                                                                
REPRESENTATIVE McGUIRE  mentioned that an amendment  suggested by                                                               
Representative Rokeberg  would extend  the sunset date  [one year                                                               
beyond that proposed in the CS] to June 30, 2007.                                                                               
                                                                                                                                
Number 0484                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG  moved to  adopt CS  for HB  234, Version                                                               
23-LS0862\S,  Ford,  4/10/03, as  the  working  document.   There                                                               
being no objections, Version S was before the committee.                                                                        
                                                                                                                                
Number 0530                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG  moved to  adopt Conceptual  Amendment 1,                                                               
on  page  2, line  13,  deleting  "2006"  and replacing  it  with                                                               
"2007".                                                                                                                         
                                                                                                                                
Number 0579                                                                                                                     
                                                                                                                                
REPRESENTATIVE CRAWFORD  objected.   He asked for  an explanation                                                               
for continuing the board for one more year.                                                                                     
                                                                                                                                
REPRESENTATIVE  ROKEBERG said  the legislative  audit recommended                                                               
the three-year  term so legislators  could check on  the progress                                                               
of the  board during  the many suggested  statutory changes.   He                                                               
warned  about the  "Christmas Tree"  of amendments  that tend  to                                                               
accumulate  on  legislation  when the  lawmakers  consider  major                                                               
changes to the  ABC board.  He  noted that HB 234  does not adopt                                                               
the changes  proposed by  the legislative  audit.   The four-year                                                               
extension of a board by the  legislature is standard.  He replied                                                               
to  Representative  Crawford's  question about  the  changes  the                                                               
bill's  sponsor  has promised  to  consider  during the  interim,                                                               
saying  those are  separate from  a straightforward  extension of                                                               
the board.                                                                                                                      
                                                                                                                                
Number 0651                                                                                                                     
                                                                                                                                
REPRESENTATIVE CRAWFORD withdrew his objection.                                                                                 
                                                                                                                                
CHAIR  ANDERSON,  hearing  no  further  objections,  stated  that                                                               
Conceptual Amendment 1 was adopted.                                                                                             
                                                                                                                                
REPRESENTATIVE  McGUIRE   stated  for   the  record   that  Chris                                                               
Anderson, owner of  the Orso Ristorante and  Glacier Brewhouse in                                                               
Anchorage, was not  involved in the original  bill, although some                                                               
testimony in  the first  hearing suggested  otherwise.   She said                                                               
Mr. Anderson  had told her that  he agreed not to  be an advocate                                                               
on the  bill.  [Mr. Anderson  had made an agreement  with the ABC                                                               
Board not to lobby for legislation.]                                                                                            
                                                                                                                                
Number 0658                                                                                                                     
                                                                                                                                
REPRESENTATIVE  ROKEBERG  moved to  report  the  CS for  HB  234,                                                               
Version 23-LS0862\S, Ford, 4/10/03,  as amended, out of committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.   There being  no objections,  CSHB 234(L&C)  was reported                                                               
out of House Labor and Commerce Standing Committee