03/18/2020 03:15 PM House LABOR & COMMERCE

         SB 52-ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG                                                                      
                                                                                                                                
3:33:08 PM                                                                                                                    
                                                                                                                                
CHAIR SPOHNHOLZ announced that the  first order of business would                                                               
be  CS FOR  SENATE  BILL  NO. 52(FIN)  am,  "An  Act relating  to                                                               
alcoholic    beverages;   relating    to   the    regulation   of                                                               
manufacturers,   wholesalers,   and    retailers   of   alcoholic                                                               
beverages;  relating  to   licenses,  endorsements,  and  permits                                                               
involving  alcoholic   beverages;  relating  to   common  carrier                                                               
approval to  transport or  deliver 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."                                                                                                                          
                                                                                                                                
3:33:28 PM                                                                                                                    
                                                                                                                                
SENATOR PETER  MICCICHE, Alaska State Legislature,  prime sponsor                                                               
of SB 52, stated  that its  an important bill.   He added that it                                                               
will be more important as the  industry works to recover from the                                                               
impacts  [of the  coronavirus].   He  thanked  the committee  for                                                               
hearing the bill.                                                                                                               
                                                                                                                                
CHAIR  SPOHNHOLZ  agreed.    She  offered  her  belief  that  the                                                               
industry will  be devastated over  the coming months as  a result                                                               
of  mandated  social  distancing.     She  said  everything  [the                                                               
legislature] can do to provide stability is important.                                                                          
                                                                                                                                
3:34:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STORY offered  her  understanding that  if SB  52                                                               
were to pass,  the current recreational site  licenses would have                                                               
seven  or eight  years    depending on  the license  number -  to                                                               
continue  operating similarly.    She provided  an  example of  a                                                               
bowling alley whose  patrons consume beer and wine  by the lanes.                                                               
Assuming the  bowling alley  doesnt  have  any violations  and is                                                               
licensed under  the current recreational site  license, she asked                                                               
if they could continue to do so.                                                                                                
                                                                                                                                
SENATOR  MICCICHE confirmed  that.   He  said in  those seven  or                                                               
eight years there will likely  be a transition to another license                                                               
type, which is an opportunity created by SB 52.                                                                                 
                                                                                                                                
REPRESENTATIVE STORY  pointed out that  there is  a gap in  SB 52                                                               
concerning bowling alleys.  She  added that if it goes unchanged,                                                               
they will  either need a  full beverage dispensary  license (BDL)                                                               
or a  tourism license to operate.   She said its   something that                                                               
needs to be  addressed in the next seven  years; nonetheless, she                                                               
expressed her excitement about the bill overall.                                                                                
                                                                                                                                
SENATOR MICCICHE agreed  wholeheartedly.  He said  there is still                                                               
additional work to  do, adding that this is not  the  end-all be-                                                               
all.                                                                                                                            
                                                                                                                                
3:37:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STUTES  stated that  she has  significant concerns                                                               
about the bill.   Her primary concern, she said,  is the issue of                                                               
enforcement and who will do it.   She expressed concern about the                                                               
expansion  of  certain license  parameters.    She addressed  the                                                               
coronavirus, saying that it will  affect everyone, especially the                                                               
BDL  license holders.   Nonetheless,  she  acknowledged the  hard                                                               
work  that Senator  Micciche, as  well as  the industry,  has put                                                               
into the bill.                                                                                                                  
                                                                                                                                
CHAIR SPOHNHOLZ  opined that enforcement  has been  undermined by                                                               
the  severity of  some of  the current  sanctions.   She said  an                                                               
important  element  of   SB  52  is  that   it  rationalizes  and                                                               
modernizes the sanctions and includes  a fiscal note to allow for                                                               
enforcement.                                                                                                                    
                                                                                                                                
SENATOR   MICCICHE    acknowledged   the   statement    made   by                                                               
Representative Stutes.   He explained  that SB 52 did  not create                                                               
the competition between  licensees and those that  have created a                                                               
new  business model.   That  situation, he  said, existed  before                                                               
this legislation came about.  He  added that the bill attempts to                                                               
provide a compromise that works  for now; however, there is still                                                               
more to do.                                                                                                                     
                                                                                                                                
3:42:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN  reflected on  her experience  regarding SB
.  She  acknowledged the hard work of Senator  Micciche and his                                                               
staff, as well as from the industry and stakeholders.                                                                           
                                                                                                                                
3:43:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STUTES moved  to report  CSSB 52(FIN)  am out  of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal notes.  Without objection,  CSSB 52(FIN) am was moved from                                                               
the House Labor and Commerce Standing Committee.