Legislature(2005 - 2006)CAPITOL 17

01/31/2005 03:15 PM LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Moved Out of Committee
Moved CSHB 61(L&C) Out of Committee
Bills Previously Heard/Scheduled
Moved CSHB 15(L&C) Out of Committee
HB  15-SEASONAL HUNT/FISH LODGE LIQUOR LICENSE                                                                                
CHAIR ANDERSON announced  that the final order  of business would                                                               
be  HOUSE BILL  NO. 15,  "An Act  relating to  seasonal alcoholic                                                               
beverage  licenses; and  providing for  an effective  date."   He                                                               
explained that  he held  the bill [over  from the  previous week]                                                               
because he  wanted to ask  particular lodge owners if  they would                                                               
be affected  by the bill.   He commented that he  spoke with four                                                               
lodge owners from rural, interior  Alaska, and all four responded                                                               
positively to the bill.                                                                                                         
REPRESENTATIVE KOTT moved to adopt  CSHB 15, Version 24-LS0075\I,                                                               
Luckhaupt,  1/31/05 as  the  working document.    There being  no                                                               
objection, Version I was before the committee.                                                                                  
MICHAEL PAWLOWSKI,  Staff to  Representative Kevin  Meyer, Alaska                                                               
State Legislature,  testified on behalf of  Representative Meyer,                                                               
sponsor of HB  15.  He presented an overview  of the changes made                                                               
in Version I.   He pointed out  that the name of  the license was                                                               
changed to  "an outdoor  recreation lodge".   Also,  the seasonal                                                               
limitation on the  lodge was removed because  some lodges provide                                                               
more than  one seasonal activity.   He said that Section  9, page                                                               
1, line 9 has the added line:                                                                                                   
         An outdoor recreation lodge license may not be                                                                         
MR. PAWLOWSKI  stated that this  line was added to  address Chair                                                               
Anderson's concern that the law  not impact valuation on existing                                                               
licenses.   He said that  in Section 2,  page 1, line  12-14, the                                                               
definition of  lodge has  been changed  to include  the following                                                               
      is primarily involved in offering opportunities for                                                                       
     persons to engage in outdoor recreation activities                                                                         
MR. PAWLOWSKI commented  that the above phrase was  added to give                                                               
the  Alcoholic  Beverage  Control Board  ("ABC  Board")  specific                                                               
statutory direction.   He remarked that the primary  purpose of a                                                               
lodge is  to provide opportunities  outdoor recreation,  which is                                                               
different than a hotel or motel.                                                                                                
4:22:15 PM                                                                                                                    
MR. PAWLOWSKI  then turned to  Section 3  of Version I.   Because                                                               
most lodges are  in areas with small populations,  he opined that                                                               
the  lodges  need to  be  exempted  from AS  04.11.400(a),  which                                                               
governs and  limits the  amount of licenses  that can  be issued.                                                               
At the  same time, he said,  Version I allows the  licenses to be                                                               
issued but not  transferred to maintain consistency  with the new                                                               
Section 2.                                                                                                                      
REPRESENTATIVE GUTTENBERG asked  if the license will  be given to                                                               
the lodge or to the lodge owner.   As an example, he asked if the                                                               
license would  stay with the  property when the lodge  owner sold                                                               
the lodge.                                                                                                                      
MR. PAWLOWSKI  replied that he would  defer to ABC Board  on this                                                               
issue, but he  said that he thinks the license  would be given to                                                               
the owner of the lodge.  Therefore  if the lodge was sold the new                                                               
owner would need to get a new license.                                                                                          
CHAIR  ANDERSON asked  if Mr.  Pawlowski received  a response  of                                                               
opinion  from   the  Cabaret   Hotel  Restaurant   and  Retailers                                                               
Association  (CHARR)  or  the   Alaska  Restaurant  and  Beverage                                                               
Association (ARBA).                                                                                                             
MR. PAWLOWSKI replied that he had not.                                                                                          
REPRESENTATIVE ROKEBERG  turned attention  to Section 2,  page 1,                                                               
line 14 and asked why the  minimum number of guest [rooms] is two                                                               
instead of four, six, or eight.                                                                                                 
MR. PAWLOWSKI answered  that it was difficult to  write this bill                                                               
so that it would include  as many different possible permutations                                                               
of  an outdoor  recreation  lodge  that exists  in  the State  of                                                               
Alaska.    He explained  that  some  lodges  are very  small;  he                                                               
explained that the  bill allows lodges to serve  alcohol "only to                                                               
the overnight guests, but in  addition we've added off-duty staff                                                               
to the  license to  include people  that are  working out  in the                                                               
field in these lodges and want to  be able to be served when they                                                               
are off-duty."   He  said that  the minimum  number of  two guest                                                               
rooms was  recommended by the  ABC BOARD, and this  "does provide                                                               
the  flexibility for  a lot  of the  unique places  in Alaska  to                                                               
qualify for this license, as that is the intent."                                                                               
Bob Klein, Chairman, Government  Affairs Committee, CHARR, stated                                                               
that he is  also retailer for Brown Jug in  Anchorage, Alaska and                                                               
was speaking  for both entities.   He stated  that he was  on the                                                               
ABC Board for  12 years, nine of  which he was the  chairman.  He                                                               
said  that the  bill is  a way  of bringing  an already-occurring                                                               
practice  under control.   He  also  pointed out  that the  lodge                                                               
owners who  acquire this  license would  be required  to complete                                                               
[the two  mandatory alcohol  server training  programs]: Training                                                               
for  Intervention Procedures  (TIPS)  and  Techniques in  Alcohol                                                               
Management  (TAM),  and also  would  have  the benefit  of  being                                                               
allowed to purchase from distributors  or retailers, and can have                                                               
the  goods sent  to them.   He  said that  [CHARR and  Brown Jug]                                                               
support the bill.                                                                                                               
4:27:38 PM                                                                                                                    
REPRESENTATIVE  ROKEBERG asked  how many  of Brown  Jug's clients                                                               
have only two beds in their lodge.                                                                                              
MR.  KLEIN  replied,  "We  actually  raised the  two  beds  as  a                                                               
question, but Representative Meyers'  group was pretty supportive                                                               
that that  should be the  low threshold."   He commented  that if                                                               
the bill  is passed,  "it has  to go before  the ABC  [Board] for                                                               
further consideration and for some  regulations that are attached                                                               
to  it, and  if two  beds  is too  small  ... they  can put  come                                                               
restrictions as well."                                                                                                          
CHAIR  ANDERSON pointed  out that  Representative  Kott made  the                                                               
observation  that the  bill states  "two guest  rooms", not  "two                                                               
guest beds".                                                                                                                    
DOUG GRIFFIN, Director, ABC BOARD,  said that Mr. Pawlowski did a                                                               
fine  job on  the bill.   He  commented that  he interpreted  the                                                               
"nontransferability of the license" to  mean that when a lodge is                                                               
sold, the new owners  would have to apply for a  new license.  He                                                               
stated that there shouldn't be  any problem with someone applying                                                               
for a  new license.   He said, "We're  trying to be  sensitive to                                                               
the concerns of CHAR, that ...  if you add transferability to the                                                               
license, it does obtain, in theory, some value".                                                                                
REPRESENTATIVE LEDOUX asked  what the rationale was  in Section 3                                                               
for distinguishing between organized and unorganized boroughs.                                                                  
MR. GRIFFIN explained  that this is existing language  that is in                                                               
the statute; the  only change is the addition  on subsection (m),                                                               
takes into account the lodge licenses.   He said, "The whole idea                                                               
there is  where you've got  different standards where  you've got                                                               
any kind of  liquor license that's near  an organized government,                                                               
that they  have the ability to  have some input. ...  The idea is                                                               
to exempt these licenses from those population limitations."                                                                    
4:32:31 PM                                                                                                                    
CHAIR ANDERSON closed public testimony.                                                                                         
REPRESENTATIVE ROKEBERG moved [to  adopt Amendment 1, labeled 24-                                                               
LS0075\G.1, Luckhaupt,  1/20/05], "conceptually  to fit  into ...                                                               
[Version I]."                                                                                                                   
CHAIR ANDERSON objected for discussion purposes.                                                                                
REPRESENTATIVE ROKEBERG  gave an  overview of Amendment  1, which                                                               
     Page 1, line 1, following "licenses;":                                                                                   
          Insert "relating to transfer of certain beverage                                                                    
     dispensary licenses issued before June 6, 1985;"                                                                         
     Page 1, following line 14:                                                                                                 
          Insert a new bill section to read:                                                                                    
        "* Sec. 3.  AS 04.11.360 is amended to read:                                                                        
          Sec. 04.11.360.  Denial of transfer of a license                                                                    
     to another person.   An application requesting approval                                                                  
     of  a transfer  of a  license to  another person  under                                                                    
     this title shall be denied if                                                                                              
               (1)   the  board finds,  after review  of all                                                                    
     relevant  information, that  transfer of  a license  to                                                                    
     another person  would not be  in the best  interests of                                                                    
     the public;                                                                                                                
               (2)   the application has not  been completed                                                                    
     in accordance with AS 04.11.280;                                                                                           
               (3)      the   application   contains   false                                                                    
     statements of material fact;                                                                                               
               (4)   the transferor  has not paid  all debts                                                                    
     or  taxes  arising from  the  conduct  of the  business                                                                    
     licensed under this title unless                                                                                           
               (A)   the transferor  gives security  for the                                                                    
     payment  of  the debts  or  taxes  satisfactory to  the                                                                    
     creditor or taxing authority; or                                                                                           
               (B)   the transfer  is under [PURSUANT  TO] a                                                                
     promise given  as collateral by  the transferor  to the                                                                    
     transferee in the course of  an earlier transfer of the                                                                    
     license under  which promise the transferor  is obliged                                                                    
     to transfer the  license back to the  transferee in the                                                                    
     event of  default in payment  for property  conveyed as                                                                    
     part of the earlier transfer of the license;                                                                               
               (5)    transfer  of the  license  to  another                                                                    
     person would  result in violation of  the provisions of                                                                    
     this  title  relating  to  identity  of  licensees  and                                                                    
     financing of licensees;                                                                                                    
               (6)    transfer  of the  license  to  another                                                                    
     person  would violate  the  restrictions pertaining  to                                                                    
     the particular license under this title;                                                                                   
               (7)    transfer  of the  license  to  another                                                                    
     person  is  prohibited  under the  provisions  of  this                                                                    
     title  as  a  result  of an  election  conducted  under                                                                    
     AS 04.11.507;                                                                                                              
               (8)    the  prospective transferee  does  not                                                                    
     have the  qualifications required  under this  title of                                                                    
     an original applicant;                                                                                                     
               (9)      the   license   was   issued   under                                                                    
     AS 04.11.100(f)   or    04.11.400(g);   however,   this                                                                
     paragraph  does  not  apply to  a  beverage  dispensary                                                                
     license  issued  before   June 6,  1985,  under  former                                                                
     AS 04.11.400(j); or                                                                                                    
               (10)      the   license  was   issued   under                                                                    
     AS 04.11.135,  unless the  transferor is  also applying                                                                    
     to  transfer the  beverage dispensary  license required                                                                    
     under AS 04.11.135 to the same transferee."                                                                                
          Renumber the following bill section accordingly.                                                                      
REPRESENTATIVE ROKEBERG stated,                                                                                                 
     There  is one  license  in the  state  left under  this                                                                    
     subsection  [AS 04.11.400(j)]  and  that's the  license                                                                    
     for the  Double Musky  Restaurant in  Girdwood, Alaska.                                                                    
     And that license, the  beverage dispensary license, was                                                                    
     issued  to  [the  owners]  ...   as  a  special  public                                                                    
     convenience license.   And one  of the  provisions when                                                                    
     it  was issued  was it  had no  transferability ...  in                                                                    
     other words, you  couldn't transfer it at  all. ... The                                                                    
     business  ...  grew  very successful  over  the  years.                                                                    
     [The owner  is] reaching his  ... retirement age.   His                                                                    
     son  ... will  be taking  the business  over.   So even                                                                    
     under the provisions of the  state law now, [the owner]                                                                    
     can't even  will that business  to his son;  there's no                                                                    
     way  that  you  can  transfer the  license  right  now.                                                                    
     Therefore  what this  particular small  provision [will                                                                    
     do is]  ... change that  and ... allow ...  the license                                                                    
     to be transferred to another individual.                                                                                   
MR.  GRIFFIN  stated that  the  ABC  Board  has no  problem  with                                                               
Representative Rokeberg's provision.                                                                                            
CHAIR ANDERSON remarked, "I know,  for the record, Representative                                                               
Meyer ...  didn't want the bill  changed because her was  in fear                                                               
that maybe  this would make a  catalyst for someone to  object to                                                               
it at a future committee hearing."                                                                                              
MR.  PAWLOWSKI  said,  "I  believe  that  Representative  Meyers'                                                               
statement to me was that the  primary concern he had was with how                                                               
... ABC viewed it."                                                                                                             
CHAIR  ANDERSON removed  his  objection.   There  being no  other                                                               
objections, the Amendment 1 was adopted by the committee.                                                                       
REPRESENTATIVE  LYNN  moved  to   report  CSHB  15,  Version  24-                                                               
LS0075\I,  Luckhaupt, 1/31/05,  as  amended  from committee  with                                                               
individual  recommendations and  the  accompanying fiscal  notes.                                                               
There  being no  objection, CSHB  15(L&C) was  reported from  the                                                               
House Labor and Commerce Standing Committee.                                                                                    

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