Legislature(2017 - 2018)BARNES 124

02/14/2018 03:15 PM LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 277 BROADBAND INTERNET: NEUTRALITY/REGULATION TELECONFERENCED
<Bill Hearing Canceled>
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 299 EXTEND: ALCOHOLIC BEVERAGE CONTROL BOARD TELECONFERENCED
Moved CSHB 299(L&C) Out of Committee
+= HB 301 ALCOHOL LIC.: BEV DISPENSARY/RESTAURANT TELECONFERENCED
Moved CSHB 301(L&C) Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
          HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                         
                       February 14, 2018                                                                                        
                           3:18 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Sam Kito, Chair                                                                                                  
Representative Adam Wool, Vice Chair                                                                                            
Representative Andy Josephson                                                                                                   
Representative Louise Stutes                                                                                                    
Representative Chris Birch                                                                                                      
Representative Gary Knopp                                                                                                       
Representative Colleen Sullivan-Leonard                                                                                         
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Mike Chenault (alternate)                                                                                        
Representative Bryce Edgmon (alternate)                                                                                         
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 299                                                                                                              
"An Act extending the termination date of the Alcoholic Beverage                                                                
Control Board; and providing for an effective date."                                                                            
                                                                                                                                
     - MOVED CSHB 299(L&C) OUT OF COMMITTEE                                                                                     
                                                                                                                                
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."                                                                                                                       
                                                                                                                                
     - MOVED CSHB 301(L&C) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 277                                                                                                              
"An Act  relating to  the regulation  of broadband  Internet; and                                                               
making certain  actions by  broadband Internet  service providers                                                               
unlawful  acts  or  practices  under   the  Alaska  Unfair  Trade                                                               
Practices and Consumer Protection Act."                                                                                         
                                                                                                                                
     - BILL HEARING CANCELED                                                                                                    
                                                                                                                                
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 299                                                                                                                  
SHORT TITLE: EXTEND: ALCOHOLIC BEVERAGE CONTROL BOARD                                                                           
SPONSOR(s): REPRESENTATIVE(s) WOOL                                                                                              
                                                                                                                                
01/24/18       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/24/18       (H)       L&C, FIN                                                                                               
01/31/18       (H)       L&C AT 3:15 PM BARNES 124                                                                              
01/31/18       (H)       Heard & Held                                                                                           
01/31/18       (H)       MINUTE(L&C)                                                                                            
02/10/18       (H)       L&C AT 1:00 PM BARNES 124                                                                              
02/10/18       (H)       <Bill Hearing Canceled>                                                                                
02/12/18       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
02/12/18       (H)       <Bill Hearing Canceled>                                                                                
02/14/18       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 301                                                                                                                  
SHORT TITLE: ALCOHOL LIC.: BEV DISPENSARY/RESTAURANT                                                                            
SPONSOR(s): REPRESENTATIVE(s) WOOL                                                                                              
                                                                                                                                
01/24/18       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/24/18       (H)       L&C, FIN                                                                                               
01/31/18       (H)       L&C AT 3:15 PM BARNES 124                                                                              
01/31/18       (H)       Heard & Held                                                                                           
01/31/18       (H)       MINUTE(L&C)                                                                                            
02/14/18       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
LAURA STIDOLPH, Staff                                                                                                           
Representative Adam Wool                                                                                                        
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Introduced HB 299 on behalf of                                                                           
Representative Wool, prime sponsor.                                                                                             
                                                                                                                                
ERIKA McCONNELL, Director                                                                                                       
Alcohol and Marijuana Control Office (AMCO)                                                                                     
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions in the hearing on HB                                                                  
299.                                                                                                                            
                                                                                                                                
LAURA STIDOLPH, Staff                                                                                                           
Representative Adam Wool                                                                                                        
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Introduced changes to HB 301 on behalf of                                                                
Representative Wool, prime sponsor.                                                                                             
                                                                                                                                
ERIKA McCONNELL, Director                                                                                                       
Alcohol and Marijuana Control Office (AMCO)                                                                                     
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:   Answered questions  in the  hearing on  HB                                                             
301.                                                                                                                            
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:18:35 PM                                                                                                                    
                                                                                                                                
CHAIR  SAM KITO  called  the House  Labor  and Commerce  Standing                                                             
Committee  meeting   to  order   at  3:18   p.m.  Representatives                                                               
Sullivan-Leonard,  Stutes,  Josephson,  Knopp, Wool,  Birch,  and                                                               
Kito were present at the call to order.                                                                                         
                                                                                                                                
        HB 299-EXTEND: ALCOHOLIC BEVERAGE CONTROL BOARD                                                                     
                                                                                                                                
3:19:20 PM                                                                                                                    
                                                                                                                                
CHAIR KITO  announced that the  first order of business  would be                                                               
HOUSE BILL  NO. 299,  "An Act extending  the termination  date of                                                               
the  Alcoholic  Beverage  Control  Board; and  providing  for  an                                                               
effective date."                                                                                                                
                                                                                                                                
3:19:57 PM                                                                                                                    
                                                                                                                                
LAURA  STIDOLPH, Staff,  Representative Adam  Wool, Alaska  State                                                               
Legislature, introduced HB 299 on  behalf of Representative Wool,                                                               
prime sponsor.   She gave a brief overview of  the proposed bill.                                                               
She  stated HB  301  would extend  the  Alcohol Beverage  Control                                                               
(ABC) Board to June 30, 2022.                                                                                                   
                                                                                                                                
3:21:02 PM                                                                                                                    
                                                                                                                                
CHAIR KITO opened public testimony  on HB 299.  Upon ascertaining                                                               
that no one was available to testify, closed public testimony.                                                                  
                                                                                                                                
3:21:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  WOOL  moved to  adopt  Amendment  1, labeled  30-                                                               
LS1281\A.2, Bruce, 2/8/18, which read as follows:                                                                               
                                                                                                                                
     Page 1, line 1, following "Act":                                                                                         
          Insert "relating to the authority of the director                                                                   
     of the Alcoholic Beverage Control Board;"                                                                                
                                                                                                                                
     Page 1, following line 3:                                                                                                  
     Insert a new bill section to read:                                                                                         
       "* Section 1. AS 04.06.075 is amended by adding a                                                                    
     new subsection to read:                                                                                                    
          (b)  The director is not a member of the board                                                                        
     and may not vote on a matter before the board."                                                                            
                                                                                                                                
     Page 1, line 4:                                                                                                            
          Delete "Section 1"                                                                                                  
          Insert "Sec. 2"                                                                                                     
                                                                                                                                
     Renumber the following bill section accordingly.                                                                           
                                                                                                                                
     Page 1, following line 6:                                                                                                  
     Insert a new bill section to read:                                                                                         
        "* Sec. 3. 3 AAC 304.025(c) is annulled."                                                                           
                                                                                                                                
     Renumber the following bill section accordingly.                                                                           
                                                                                                                                
     Page 1, line 7:                                                                                                            
          Delete "This"                                                                                                         
          Insert "Section 2 of this"                                                                                            
                                                                                                                                
CHAIR KITO objected for purposes of discussion.                                                                                 
                                                                                                                                
3:21:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WOOL began to explain  Amendment 1 when an at-ease                                                               
was called.                                                                                                                     
                                                                                                                                
3:21:55 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 3:21 p.m. to 3:29 p.m.                                                                       
                                                                                                                                
3:29:50 PM                                                                                                                    
                                                                                                                                
CHAIR KITO  brought the  committee back to  order and  noted that                                                               
Representative  Wool  moved to  adopt  Amendment  1, and  he  had                                                               
objected.                                                                                                                       
                                                                                                                                
REPRESENTATIVE WOOL explained that  Amendment 1 puts into statute                                                               
that the director is not a voting  member of the board.  He noted                                                               
that  it was  previously  in  statute, it  was  rescinded but  it                                                               
stayed on as  a regulation.  He speculated that  it may have been                                                               
an omission and was not removed when the statute was rescinded.                                                                 
                                                                                                                                
3:30:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOSEPHSON  asked  about   the  specifics  of  the                                                               
director's casting vote.                                                                                                        
                                                                                                                                
ERIKA McCONNELL,  Director, Alcohol and Marijuana  Control Office                                                               
(AMCO), answered  questions in the hearing  on HB 299.   She said                                                               
that she had never used the vote  to break a tie.  She stated the                                                               
vote  had  been   removed  from  statute  but   had  remained  in                                                               
regulation.   She said  the board  contains five  members meaning                                                               
that if  one member is  not present, there could  be a tie.   She                                                               
added that should  the vote be removed, the issue  to be voted on                                                               
could be brought  before the board at  a later date or  fail as a                                                               
tie.                                                                                                                            
                                                                                                                                
3:32:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON said  it seemed that the  removal of the                                                               
voting power would not jeopardize her position.                                                                                 
                                                                                                                                
MS. McCONNELL said  the board had authorized her to  use her vote                                                               
at the recent meeting, but it had not come to pass.                                                                             
                                                                                                                                
3:33:04 PM                                                                                                                    
                                                                                                                                
CHAIR  KITO  removed  his  objection.     There  being  no  other                                                               
objections, Amendment 1 was adopted.                                                                                            
                                                                                                                                
3:33:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  WOOL  stated  that concerns  regarding  the  Open                                                               
Meetings Act had been brought to  his attention.  He added he had                                                               
been  present  at  a  meeting   and  had  observed  an  unnoticed                                                               
executive session.   He asked whether Ms.  McConnell thought that                                                               
was good practice.                                                                                                              
                                                                                                                                
MS.  McCONNELL answered  the board  takes legal  counsel from  an                                                               
assistant attorney  general.  She  shared her  understanding that                                                               
when the board  is taking advice from their lawyer,  the board is                                                               
not required  to meet in  accordance with the Open  Meetings Act.                                                               
She  specified  that the  board  did  not  take board  action  or                                                               
deliberate during  those meetings, only  take legal advice.   She                                                               
added  it  did happen  at  the  most  recent meeting  in  Juneau,                                                               
Alaska.                                                                                                                         
                                                                                                                                
REPRESENTATIVE WOOL  said in  the meeting  he attended  the board                                                               
did not  appear to have counsel  on hand.  He  suggested there be                                                               
an announcement that  the board was going to  confer with counsel                                                               
in executive session.                                                                                                           
                                                                                                                                
MS.  McCONNELL  clarified the  meeting  with  counsel is  not  in                                                               
executive session.  She added  that executive sessions do have to                                                               
be notified.  She spoke to  the meeting in question and explained                                                               
that the  meeting had  been delayed  and the  board had  met with                                                               
their lawyer in that time.                                                                                                      
                                                                                                                                
3:36:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STUTES asked whether there  was a violation of the                                                               
Open Meetings Act.                                                                                                              
                                                                                                                                
MS.  McCONNELL  restated  her understanding  that  there  was  no                                                               
violation  as the  meeting had  not yet  begun, according  to the                                                               
board's lawyer.                                                                                                                 
                                                                                                                                
REPRESENTATIVE  STUTES said  she  thought if  the  meeting had  a                                                               
quorum and executive session was  not announced, there would be a                                                               
violation of the Open Meeting Act.                                                                                              
                                                                                                                                
MS. McCONNELL  said she  would be happy  to get  more information                                                               
together, but the meeting had not yet begun at the time.                                                                        
                                                                                                                                
REPRESENTATIVE STUTES stated  that even if the board  were out to                                                               
dinner, the Open Meeting Act would still apply.                                                                                 
                                                                                                                                
3:38:24 PM                                                                                                                    
                                                                                                                                
CHAIR KITO  said he thought  that applied to  municipal officials                                                               
and would apply differently to the state.                                                                                       
                                                                                                                                
3:38:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON  asked whether there was  a title change                                                               
with the amendment.                                                                                                             
                                                                                                                                
CHAIR KITO  said there was  a title change.   He said he  did not                                                               
know whether a resolution was  needed given that the title change                                                               
was in the same body.                                                                                                           
                                                                                                                                
REPRESENTATIVE SULLIVAN-LEONARD  suggested the  information about                                                               
the  title change  would be  in the  memorandum from  Legislative                                                               
Legal and Research Services.                                                                                                    
                                                                                                                                
MS.  STIDOLPH said  Legislative Legal  and Research  Services did                                                               
not advise and there was not a memorandum on the title change.                                                                  
                                                                                                                                
3:40:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KNOPP asked about  the semi-colon in the amendment                                                               
language.                                                                                                                       
                                                                                                                                
REPRESENTATIVE  JOSEPHSON said  it  did look  like the  amendment                                                               
included the title change.                                                                                                      
                                                                                                                                
3:41:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  WOOL moved  to report  HB 299  as amended  out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal notes.  There being no  objection, HB 299 was reported out                                                               
of the House Labor and Commerce Standing Committee.                                                                             
                                                                                                                                
3:41:49 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 3:41 p.m. to 3:42 p.m.                                                                       
                                                                                                                                
         HB 301-ALCOHOL LIC.: BEV DISPENSARY/RESTAURANT                                                                     
                                                                                                                                
3:42:37 PM                                                                                                                    
                                                                                                                                
CHAIR KITO   announced that the final 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."                                                                                                          
                                                                                                                                
3:44:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WOOL moved  to adopt CS for HB 301  as the working                                                               
document.                                                                                                                       
                                                                                                                                
3:45:13 PM                                                                                                                    
                                                                                                                                
CHAIR KITO  asked for a  review of  the changes in  the committee                                                               
substitute.                                                                                                                     
                                                                                                                                
REPRESENTATIVE WOOL  gave an  overview of  the proposed  bill and                                                               
changes.   He  stated it  would add  language regarding  how many                                                               
hours  beverage   dispensary  licensed  premises  must   be  open                                                               
throughout the year.   He said the requirement  would change from                                                               
30 8-hour  days to 240  total hours.  He  added that the  list of                                                               
types  of  licenses  that  communities   could  opt  out  of  was                                                               
expanded.                                                                                                                       
                                                                                                                                
3:46:49 PM                                                                                                                    
                                                                                                                                
LAURA  STIDOLPH, Staff,  Representative Adam  Wool, Alaska  State                                                               
Legislature,  introduced the  changes to  HB 301.   She  restated                                                               
that  the   committee  substitute   would  capture  a   few  more                                                               
businesses that were not addressed in the previous version.                                                                     
                                                                                                                                
3:47:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE BIRCH asked for the total number of licenses.                                                                    
                                                                                                                                
MS. STIDOLPH  answered there  were 30  under the  pre-1985 status                                                               
quo.   She explained the  changes to  the original version  of HB                                                               
301 [covered in the Sectional Analysis, below].                                                                                 
                                                                                                                                
3:49:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON  asked for confirmation that  the effect                                                               
of the  changes would  be to  prevent transferred  licensees from                                                               
having to expand their premises.                                                                                                
                                                                                                                                
MS.  STIDOLPH  answered in  the  affirmative.    She went  on  to                                                               
paraphrase  the  sectional  analysis  of  version  M  of  HB  301                                                               
[included in committee packet],  which reads as follows [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     Section  1    Amends  AS 04.11.330(a)  by changing  the                                                                    
     annual operating hours  requirement for license holders                                                                    
     from 30 eight-hour days to 240 hours.                                                                                      
                                                                                                                                
     Section  2 -  Amends  04.11.360 by  adding language  to                                                                    
     ensure that an application may  not be denied because a                                                                    
     prospective  transferee  does not  have  qualifications                                                                    
     required under AS 4.11.400(d)(1).                                                                                          
                                                                                                                                
     Section 3    Amends AS 04.11.400(d)  by adding language                                                                    
     to  allow for  renewal or  transfer of  ownership of  a                                                                    
     tourism  beverage  dispensary  license  if  the  holder                                                                    
     operates a  hotel, motel,  resort, or  similar business                                                                    
     in the  tourist trade;  has a licensed  dining facility                                                                    
     or  kitchen  facilities in  a  majority  of its  rental                                                                    
     rooms and maintains the minimum  number of rental rooms                                                                    
     that it had  at time of initial licensure  or that were                                                                    
     required   at  initial   licensure.  Also   allows  for                                                                    
     premises inside an airport terminal.                                                                                       
                                                                                                                                
     Section 4  - Amends AS  04.11.491(a) to add  an outdoor                                                                    
     recreation lodge  license to  the licenses that  may be                                                                    
     approved by voters in a  municipality on a local option                                                                    
     ballot.                                                                                                                    
                                                                                                                                
     Section 5    Amends AS  04.11.491(b) to add  an outdoor                                                                    
     recreation lodge  license to  the licenses that  may be                                                                    
     approved  by  voters in  an  established  village on  a                                                                    
     local option ballot.                                                                                                       
                                                                                                                                
     Section  6    Applicability  - Section  4  & Section  5                                                                    
     apply  to  outdoor  recreation  lodge  licenses  issued                                                                    
     before, on, or after the effective date of this Act.                                                                       
                                                                                                                                
3:53:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOSEPHSON asked  whether  the outdoor  recreation                                                               
lodge license already existed in statute.                                                                                       
                                                                                                                                
MS. STIDOLPH answered in the  affirmative.  She added the outdoor                                                               
lodge license needed to be added to the list for local options.                                                                 
                                                                                                                                
3:53:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KNOPP  asked whether  the director  understood the                                                               
intent of  the bill and  whether she  thought the issue  would be                                                               
resolved for the 34 licensees who were currently in jeopardy.                                                                   
                                                                                                                                
ERIKA McCONNELL,  Director, Alcohol and Marijuana  Control Office                                                               
(AMCO),  stated the  intent was  very  clear and  the issues  for                                                               
those licensees would be resolved.                                                                                              
                                                                                                                                
3:54:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOSEPHSON asked  whether the  license holders  of                                                               
future roadhouses  would have  to adhere  to the  requirement for                                                               
rooms under the demographic area for the unorganized boroughs.                                                                  
                                                                                                                                
MS. McCONNELL  answered that they  would have to meet  the rental                                                               
rooms requirement for their population area.                                                                                    
                                                                                                                                
REPRESENTATIVE WOOL  specified that  the requirements  were "new"                                                               
since 1985.                                                                                                                     
                                                                                                                                
3:56:03 PM                                                                                                                    
                                                                                                                                
CHAIR KITO removed his objection.                                                                                               
                                                                                                                                
CHAIR KITO stated that public  testimony had remained open from a                                                               
previous hearing.   Upon ascertaining  that no one  was available                                                               
to testify, he closed public testimony on HB 301.                                                                               
                                                                                                                                
REPRESENTATIVE JOSEPHSON  said he thought the  changes constitute                                                               
"a good fix."                                                                                                                   
                                                                                                                                
REPRESENTATIVE   SULLIVAN-LEONARD   acknowledged   Representative                                                               
Rauscher's contribution to the bill.                                                                                            
                                                                                                                                
3:57:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON moved to report  HB 301 out of committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.  There being no objection, it was so ordered.                                                                            
                                                                                                                                
3:59:32 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Labor and  Commerce Standing Committee  meeting was  adjourned at                                                               
3:59 p.m.                                                                                                                       
                                                                                                                                

Document Name Date/Time Subjects
HB299 Support Letters 2.1.18.pdf HL&C 2/14/2018 3:15:00 PM
HB 299
HB299 Wool Amendment A.2 2.8.18.pdf HL&C 2/14/2018 3:15:00 PM
HB 299
HB301 version M.pdf HL&C 2/14/2018 3:15:00 PM
HB 301
HB301 Support Letters 2.12.18.pdf HL&C 2/14/2018 3:15:00 PM
HB 301
HB301 ver M Sectional Analysis 2.12.18.pdf HL&C 2/14/2018 3:15:00 PM
HB 301