01/31/2018 03:15 PM House LABOR & COMMERCE

         HB 301-ALCOHOL LIC.: BEV DISPENSARY/RESTAURANT                                                                     
                                                                                                                              
                                                                                                                                
3:54:19 PM                                                                                                                    
                                                                                                                                
CHAIR KITO  announced that the  first order of business  would be                                                               
HOUSE BILL NO. 301, "An Act  relating to the renewal and transfer                                                               
of ownership  of a beverage  dispensary license or  restaurant or                                                               
eating place license."                                                                                                          
                                                                                                                                
3:54:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ADAM WOOL,  Alaska State  Legislature, introduced                                                               
HB  301 as  prime  sponsor.   He  stated  historically in  Alaska                                                               
roadhouses or hotels with 10  rooms or more could obtain beverage                                                               
licenses.  In  1985, there was a statute change.   More recently,                                                               
there was a  new interpretation of the statute  and renewals were                                                               
denied.   The proposed  bill would  ensure that  those businesses                                                               
which had licenses awarded before  1985 would be grandfathered in                                                               
to continue operating.                                                                                                          
                                                                                                                                
3:56:34 PM                                                                                                                    
                                                                                                                                
LAURA  STIDOLPH, Staff,  Representative Adam  Wool, Alaska  State                                                               
Legislature,  answered   questions  on  HB  301,   on  behalf  of                                                               
Representative  Wool,  prime  sponsor.   She  confirmed  that  34                                                               
businesses had been denied renewal of their beverage licenses.                                                                  
                                                                                                                                
3:56:53 PM                                                                                                                    
                                                                                                                                
CHAIR KITO held over HB 301.                                                                                                    
                                                                                                                                
         HB 301-ALCOHOL LIC.: BEV DISPENSARY/RESTAURANT                                                                     
                                                                                                                                
4:49:05 PM                                                                                                                    
                                                                                                                                
CHAIR KITO  announced that  the next order  of business  would be                                                               
HOUSE BILL NO. 301, "An Act  relating to the renewal and transfer                                                               
of ownership  of a beverage  dispensary license or  restaurant or                                                               
eating place license."                                                                                                          
                                                                                                                                
4:49:39 PM                                                                                                                    
                                                                                                                                
CHAIR  KITO asked  Ms. McConnell  whether  she had  been able  to                                                               
review  HB  301  and  whether the  department  had  any  comments                                                               
regarding the proposed legislation.                                                                                             
                                                                                                                                
4:49:59 PM                                                                                                                    
                                                                                                                                
ERIKA MCCONNELL, Director, Alcohol  and Marijuana Control Office,                                                               
Department  of  Commerce,  Community, and  Economic  Development,                                                               
stated  that there  was a  correction  to be  made regarding  the                                                               
statement  that  34  licenses  had  been  denied  renewal.    She                                                               
clarified that  no licenses had  been denied renewal.   The issue                                                               
was the transfer  of ownership.  She reiterated that  some of the                                                               
licenses had  been issued  long ago,  before the  requirement for                                                               
number of rooms was changed.   She added that people want to sell                                                               
their  businesses, and,  at time  of transfer  of ownership,  the                                                               
number of rental rooms needs to  be evaluated.  She indicated the                                                               
board  supported the  legislative fix  to allow  the licenses  to                                                               
continue to operate and to be transferred.                                                                                      
                                                                                                                                
MS. MCCONNELL queried  the intent for the legislation.   She read                                                               
from page 2 line 23 of the proposed bill as followed:                                                                           
                                                                                                                                
     On  and  after the  effective  date  of this  Act,  the                                                                    
     holder  of  a  beverage  dispensary  or  restaurant  or                                                                    
     eating place  license issued under (g)  of this section                                                                    
     as  that  subsection read  on  June  5, 1985,  who  has                                                                    
     continually held  the license until the  effective date                                                                    
     of this Act                                                                                                                
                                                                                                                                
MS.  MCCONNELL  asked specifically  about  the  phrase, "who  has                                                               
continually held the license."                                                                                                  
                                                                                                                                
4:52:59 PM                                                                                                                    
                                                                                                                                
CHAIR KITO replied that he  thought that was something to examine                                                               
as the committee considered the proposed legislation.                                                                           
                                                                                                                                
4:53:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON  asked whether the ambiguity  was in the                                                               
implication  that  the  license  had  to  be  held  by  a  single                                                               
individual  or  that  it  could have  been  transferred  but  the                                                               
license had to be continually used.                                                                                             
                                                                                                                                
MS. MCCONNELL answered  that she would guess the  intent was that                                                               
the license  had to  be continually operated,  not that  the same                                                               
owner had to hold the license.                                                                                                  
                                                                                                                                
4:53:58 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WOOL answered  the intent was that  the license be                                                               
continually operated.   He stated  he thought there was  an issue                                                               
with renewal of  the older licenses which needed  to be addressed                                                               
either with  a Title  4 rewrite  or one  of the  current proposed                                                               
bills.                                                                                                                          
                                                                                                                                
MS. MCCONNELL  answered the concern  in having the board  look at                                                               
the renewals regarded ensuring the  licenses had been transferred                                                               
in the  past in  accordance with  statute.   She added  the board                                                               
hopes the legislature  will solve the problem,  so these licenses                                                               
can move forward in confidence.                                                                                                 
                                                                                                                                
4:56:14 PM                                                                                                                    
                                                                                                                                
CHAIR KITO opened public testimony on HB 301.                                                                                   
                                                                                                                                
4:56:29 PM                                                                                                                    
                                                                                                                                
ALLAN CHOY, Owner, Al's Alaskan Inn,  spoke in support of HB 301.                                                               
He gave  historical background  on the  development of  the hotel                                                               
industry  in  the  Anchorage  area.   He  stated  he  appreciates                                                               
legislative action on HB 301.   He remarked that if hotels had to                                                               
build more  rooms, then they would  be empty, and he  added if he                                                               
didn't have  the bar, then the  hotel would be closed.   He asked                                                               
the legislature to  clearly define and clarify the  intent of the                                                               
issue.                                                                                                                          
                                                                                                                                
5:08:33 PM                                                                                                                    
                                                                                                                                
ARDEN RANKINS,  Owner, Sunrise Inn,  spoke in support of  HB 301.                                                               
She  stated  she owns  the  Sunrise  Inn  in Cooper  Landing  and                                                               
operates with  a tourism license.   She  said she had  bought the                                                               
10-room inn 2 years earlier.   She underlined that Cooper Landing                                                               
had around 275  people year-round, so there was no  way she could                                                               
build  40 more  rooms.   She underlined  the inn  is the  largest                                                               
year-round  employer in  the  community, but  she  would have  to                                                               
close and put 10 people out of  work if the proposed bill did not                                                               
fix the room number issue.   She said she was concerned that AMCO                                                               
changed   how  it   calculates  population.     She   shared  her                                                               
understanding that  the entire Kenai Peninsula  was combined, and                                                               
incorporated cities  were taken  out of  the number,  meaning her                                                               
neighbors were now included with  Cooper Landing's population and                                                               
some of them are 100 miles away.                                                                                                
                                                                                                                                
5:11:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WOOL asked  Ms. Rankins how she  learned about the                                                               
issue.                                                                                                                          
                                                                                                                                
MS. RANKINS answered that she  had been informed through Cabaret,                                                               
Hotel, Restaurant and Retailers Association (CHARR).                                                                            
                                                                                                                                
5:12:40 PM                                                                                                                    
                                                                                                                                
DALE  FOX,  Alaska  Cabaret,   Hotel,  Restaurant  and  Retailers                                                               
Association, Inc.  (Alaska CHARR),  spoke in  support of  HB 301.                                                               
He declared that  he was involved in getting the  1985 law passed                                                               
and that  he regrets it.   He was  the executive director  of the                                                               
Alaska  Visitors  Bureau at  the  time,  and  the intent  was  to                                                               
encourage tourism.   He said he  felt it was a  terrible thing to                                                               
put those 34 licensees in jeopardy.   He stated it was always the                                                               
intent  to   grandfather  in  businesses.     He  encouraged  the                                                               
committee to fix the 1985 law with the proposed legislation.                                                                    
                                                                                                                                
5:15:46 PM                                                                                                                    
                                                                                                                                
SASSAN MOSSANEN, Denali  Brewing Company, spoke in  support of HB
.   He  said three  of the  licensees on  the audit  list were                                                               
neighbors.  Due to the size  of the town and lot sizes, Talkeetna                                                               
had a special-use district, which  could prevent the construction                                                               
of 40-room hotels.    He said he thought  seeing tourism licenses                                                               
go away would be a great injustice to those three families.                                                                     
                                                                                                                                
5:17:09 PM                                                                                                                    
                                                                                                                                
CHAIR KITO announced he would hold public testimony open.                                                                       
                                                                                                                                
CHAIR KITO held over HB 301.