Legislature(2005 - 2006)

04/12/2006 04:59 PM L&C


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04:59:39 PM Start
04:59:53 PM HB240
05:14:37 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
HB 240-BREWERY & BREWPUB LICENSES                                                                                             
                                                                                                                                
[Contains discussion of HB 431]                                                                                                 
                                                                                                                                
4:59:53 PM                                                                                                                    
                                                                                                                                
CHAIR ANDERSON  announced that the  only order of  business would                                                               
be HOUSE BILL  NO. 240, "An Act relating to  brewery and brew pub                                                               
licensing."                                                                                                                     
                                                                                                                                
CHAIR   ANDERSON  noted   that  the   industry  has   "made  many                                                               
concessions"  and  there  appears  to  be  a  final  draft.    He                                                               
expressed his intent to move the bill from committee.                                                                           
                                                                                                                                
5:00:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KOTT moved  Amendment  1, labeled  24-LS0734\P.2,                                                               
Luckhaupt, 4/11/06, which read:                                                                                                 
                                                                                                                                
     Page 2, line 20:                                                                                                           
          Delete "46,500"                                                                                                   
          Insert "37,200"                                                                                                   
                                                                                                                                
     Page 3, line 14:                                                                                                           
          Delete "46,500"                                                                                                   
          Insert "37,200"                                                                                                   
                                                                                                                                
5:01:20 PM                                                                                                                    
                                                                                                                                
CHAIR ANDERSON objected for discussion purposes.                                                                                
                                                                                                                                
5:01:23 PM                                                                                                                    
                                                                                                                                
GLENN BRADY,  President, Silver  Gulch Brewing,  Chairman, Alaska                                                               
Cabaret,  Hotel, Restaurant,  and Retailers  Association (CHARR),                                                               
explained that Amendment 1 was  drafted after negotiation between                                                               
the breweries  and brewpubs in response  to external negotiations                                                               
regarding the 8:00 p.m. closing time for brewery sales.                                                                         
                                                                                                                                
5:01:52 PM                                                                                                                    
                                                                                                                                
CHAIR ANDERSON  removed his  objection.   There being  no further                                                               
objection, Amendment 1 was adopted.                                                                                             
                                                                                                                                
5:02:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KOTT moved  Amendment  2, labeled  24-LS0734\P.3,                                                               
Luckhaupt, 4/11/06, which read:                                                                                                 
                                                                                                                                
     Page 2, line 3:                                                                                                            
          Delete "or after 11:00 p.m."                                                                                          
          Insert "and serving of the product ends no later                                                                  
     than 8:00 p.m. [OR AFTER 11:00 P.M.]"                                                                                  
                                                                                                                                
5:02:25 PM                                                                                                                    
                                                                                                                                
CHAIR ANDERSON objected for discussion purposes.                                                                                
                                                                                                                                
5:02:40 PM                                                                                                                    
                                                                                                                                
MR. BRADY  explained that the intent  of [Section 2] is  to allow                                                               
micro-breweries licensed under  Title 4 to sell  a limited amount                                                               
of product  produced on the premises.   He said that  Amendment 2                                                               
is an attempt  to avoid the "creation of taverns,"  and would not                                                               
allow the sale of product after  8:00 p.m.                                                                                      
                                                                                                                                
5:03:26 PM                                                                                                                    
                                                                                                                                
CHAIR ANDERSON removed his objection.  There being no further                                                                   
objection, Amendment 2 was adopted.                                                                                             
                                                                                                                                
5:03:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX moved Amendment 3, labeled 24-LS0734\P.1,                                                                 
Finley, 3/29/06, which read:                                                                                                    
                                                                                                                                
     Page 1, line 1:                                                                                                            
          Delete "licensing"                                                                                                  
          Insert "licenses and to winery licenses"                                                                            
                                                                                                                                
     Page 4, following line 6:                                                                                                  
          Insert new bill sections to read:                                                                                     
        "* Sec. 6. AS 04.11.140(b) is amended to read:                                                                      
          (b)  The holder of a winery license may sell wine                                                                     
     in quantities of                                                                                                           
               (1)  not more [LESS] than five gallons                                                                       
               (A)  to an individual who is present on the                                                                  
     licensed premises; or                                                                                                  
               (B)  by shipping to an individual if the                                                                     
     shipment  is not  to an  area that  has prohibited  the                                                                
     importation or possession  of alcoholic beverages under                                                                
     this  chapter  or  to  an area  that  has  limited  the                                                                
     importation  or   possession  of   alcoholic  beverages                                                                
     unless the sale complies with the limitation;                                                                          
               (2)  more than five gallons to a person who                                                                      
      is licensed under this title, or in another state or                                                                      
     country.                                                                                                                   
        * Sec. 7. AS 04.11.140(d) is amended to read:                                                                         
          (d)  The biennial winery license fee is $100                                                                      
     [$500]."                                                                                                                   
                                                                                                                                
CHAIR ANDERSON objected for discussion purposes.                                                                                
                                                                                                                                
REPRESENTATIVE  LEDOUX explained  that  Amendment  3 changes  the                                                               
title  of  HB 240  to  include  winery  licenses.   In  addition,                                                               
Amendment 3  puts small, in-state  wineries on the  same "playing                                                               
field" as  out-of-state wineries.   She explained that  while she                                                               
is the  sponsor of [HB  431], which also contains  this language,                                                               
she  would like  to add  the  language to  HB 240  to ensure  its                                                               
passage.                                                                                                                        
                                                                                                                                
5:04:39 PM                                                                                                                    
                                                                                                                                
CHAIR  ANDERSON  maintained his  objection.    He explained  that                                                               
Amendment 3  would substantively change the  bill and recommended                                                               
that  [Representative  LeDoux]  speak  with the  members  of  the                                                               
industry and with  the sponsor of HB  240.  He noted  that HB 240                                                               
has been held up  for over one year and opined  that it might not                                                               
be the  proper vehicle for  the amendment; however, he  noted his                                                               
support of the amendment.                                                                                                       
                                                                                                                                
5:06:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LYNN  commented  that  he is  also  in  favor  of                                                               
Amendment  3;  however,  he   surmised  that  the  aforementioned                                                               
amendment  would delay  the passage  of the  bill until  the next                                                               
legislative session.                                                                                                            
                                                                                                                                
5:06:22 PM                                                                                                                    
                                                                                                                                
CHAIR ANDERSON  clarified that he  objects to amending HB  240 to                                                               
include wineries.  He stated  that the intent of this legislation                                                               
is to  address breweries and  brewpubs, and pointed out  that [HB
431] is currently addressing the issue of winery licenses.                                                                      
                                                                                                                                
REPRESENTATIVE LYNN  asked Representative  LeDoux if  Amendment 3                                                               
would merely duplicate the language in [HB 431].                                                                                
                                                                                                                                
REPRESENTATIVE  LEDOUX  replied  yes.   In  response  to  further                                                               
questions, she  explained that HB  431 has a further  referral to                                                               
the House Finance Committee, which may be waived.                                                                               
                                                                                                                                
REPRESENTATIVE LYNN reiterated that he  does not want to delay HB
240.                                                                                                                            
                                                                                                                                
CHAIR ANDERSON  pointed out that HB  431 is further along  in the                                                               
legislative process [than HB 240].                                                                                              
                                                                                                                                
REPRESENTATIVE  LEDOUX  stated  that  she  has  spoken  to  CHARR                                                               
regarding this amendment and the organization is supportive.                                                                    
                                                                                                                                
CHAIR ANDERSON  asked Mr.  Brady if Alaska  CHARR is  amenable to                                                               
amending HB 240 to include the aforementioned information.                                                                      
                                                                                                                                
5:08:28 PM                                                                                                                    
                                                                                                                                
MR.  BRADY declined  to  comment on  this issue.    He said  that                                                               
Alaska CHARR is in support of HB 431.                                                                                           
                                                                                                                                
CHAIR ANDERSON  asked for clarification regarding  whether Alaska                                                               
CHARR has spoken to Amendment 3 to HB 240.                                                                                      
                                                                                                                                
MR. BRADY  replied that  he is  not aware  that Alaska  CHARR has                                                               
taken a  position on this,  therefore he  does not wish  to speak                                                               
for CHARR on this issue.                                                                                                        
                                                                                                                                
5:09:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CRAWFORD, in regard to  HB 431, noted that Section                                                               
7 was  removed when it  came before  the committee.   However, he                                                               
noted that this section is included in Amendment 3.                                                                             
                                                                                                                                
REPRESENTATIVE  LEDOUX  explained  that  Amendment  3  should  be                                                               
amended to delete Section 7.                                                                                                    
                                                                                                                                
REPRESENTATIVE  KOTT   recommended  that   the  sponsor   of  the                                                               
amendment speak with  the sponsor of HB 240.   He speculated that                                                               
if the  sponsor does  not support  [the change],  the legislation                                                               
may be withdrawn.                                                                                                               
                                                                                                                                
5:11:41 PM                                                                                                                    
                                                                                                                                
CRAIG  JOHNSON, Staff  to  Representative  Lesil McGuire,  Alaska                                                               
State  Legislature, sponsor,  said that  he would  work with  the                                                               
sponsor of  Amendment 3  before the  next committee  of referral.                                                               
He  stated that  if  all  parties involved  are  amenable to  the                                                               
amendment, he  would work on  adding this language.   However, he                                                               
would like to  see HB 240 move from the  House Labor and Commerce                                                               
Standing Committee without further amendments.                                                                                  
                                                                                                                                
5:12:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX withdrew Amendment 3.                                                                                     
                                                                                                                                
5:12:38 PM                                                                                                                    
                                                                                                                                
CHAIR ANDERSON closed public testimony.                                                                                         
                                                                                                                                
5:13:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KOTT noted  that HB  240 goes  next to  the House                                                               
Judiciary Standing Committee, of which  the sponsor is the chair.                                                               
He reiterated  that the  amendment should  be discussed  prior to                                                               
the next committee hearing.                                                                                                     
                                                                                                                                
5:13:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KOTT  moved  to  report  CSHB  240,  Version  24-                                                               
LS0734\P,   Finley/Luckhaupt,  3/28/06,   as   amended,  out   of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal  notes.   There  being  no  objection, CSHB  240(L&C)  was                                                               
reported out of the House Labor and Commerce Standing Committee.                                                                

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