Legislature(2017 - 2018)BARNES 124

05/03/2018 03:15 PM LABOR & COMMERCE

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Audio Topic
04:27:43 PM Start
04:28:00 PM SB76
05:14:11 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Delayed to 4:25 pm --
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= SB 76 ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG TELECONFERENCED
Heard & Held
-- Public Testimony --
         SB  76-ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG                                                                     
                                                                                                                                
4:28:00 PM                                                                                                                    
                                                                                                                                
CHAIR KITO  announced that  the only order  of business  would be                                                               
SENATE  BILL NO.  76, "An  Act relating  to alcoholic  beverages;                                                               
relating  to   the  regulation  of   manufacturers,  wholesalers,                                                               
retailers, and  common carriers of alcoholic  beverages; relating                                                               
to  licenses,  endorsements,   and  permits  involving  alcoholic                                                               
beverages;  relating to  the  Alcoholic  Beverage Control  Board;                                                               
relating  to  offenses  involving alcoholic  beverages;  amending                                                               
Rule 17, Alaska  Rules of Minor Offense  Procedure; and providing                                                               
for an effective date."                                                                                                         
                                                                                                                                
4:29:03 PM                                                                                                                    
                                                                                                                                
CHAIR KITO  announced that public  testimony was still  open from                                                               
the previous hearing.                                                                                                           
                                                                                                                                
4:29:40 PM                                                                                                                    
                                                                                                                                
ANDREW CUTTING, Alaska Children's  Trust, testified in support of                                                               
SB 76.  He spoke to the provision regarding online sales.                                                                       
                                                                                                                                
4:30:51 PM                                                                                                                    
                                                                                                                                
JAN  HILL,  Title  4  Review  Steering  Committee,  testified  in                                                               
support of SB 76.  She  said the state needs to regulate internet                                                               
sales  of alcohol.   She  encouraged  the committee  not to  lose                                                               
sight of  all the good work  done on the review  and the proposed                                                               
bill.                                                                                                                           
                                                                                                                                
4:32:35 PM                                                                                                                    
                                                                                                                                
LUCAS HEGER, Skagway Spirits Distillery,  testified in support of                                                               
SB 76.                                                                                                                          
                                                                                                                                
4:33:15 PM                                                                                                                    
                                                                                                                                
MELANIE LESH,  Snug Harbor, testified in  support of SB 76.   She                                                               
spoke to renewal of package liquor store licenses.                                                                              
                                                                                                                                
4:34:49 PM                                                                                                                    
                                                                                                                                
MIKE HEALY, Skagway Brewing Company,  testified in the hearing on                                                               
SB 76.   He said he  supports the changes in  the legislation. He                                                               
stated that  due to the  high cost  of hiring a  distributor, his                                                               
company had been  unable to sell product to  local liquor stores.                                                               
He  added that  by  being open  in the  winter,  the brewery  has                                                               
increased the local economy.                                                                                                    
                                                                                                                                
REPRESENTATIVE  WOOL  said he  thinks  small  breweries can  make                                                               
direct sales according to current law.                                                                                          
                                                                                                                                
4:37:25 PM                                                                                                                    
                                                                                                                                
SHERRY STEAD,  Grace Ridge  Brewing, testified  in support  of SB                                                               
76.   She  mentioned local  events and  non-profits to  which the                                                               
brewery  donates  each  year.  She  said  clear  and  enforceable                                                               
regulations are needed.                                                                                                         
                                                                                                                                
4:38:32 PM                                                                                                                    
                                                                                                                                
WILLIAM HOWELL testified  in support of SB 76.   He said it would                                                               
be a "real step forward" for breweries in Alaska.                                                                               
                                                                                                                                
4:39:56 PM                                                                                                                    
                                                                                                                                
DOUG  HOGUE, Owner,  Kenai River  Brewing  Company, testified  in                                                               
support of SB 76.  He  said taprooms are a social gathering place                                                               
in his town.   He spoke to the  considerable investment involved.                                                               
He urged the committee to update Title 4.                                                                                       
                                                                                                                                
4:41:33 PM                                                                                                                    
                                                                                                                                
RONDY MATTHEWS,  BDL owner, testified in  support of SB 76.   She                                                               
said she would like to see completion of Title 4.                                                                               
                                                                                                                                
4:42:29 PM                                                                                                                    
                                                                                                                                
MATT JONES,  Moose's Tooth, testified  in support  of SB 76.   He                                                               
stated  he had  served  on  the subcommittee  and  he thinks  the                                                               
proposal would  serve as framework for  operators and regulators.                                                               
He spoke to the need to address the production cap.                                                                             
                                                                                                                                
4:43:55 PM                                                                                                                    
                                                                                                                                
MIKE ALLEN  testified in  support of  SB 76.   He said  he thinks                                                               
distillery  tasting rooms  are for  offering samples  of product.                                                               
He  spoke to  testimony stating  one  distillery is  a venue  for                                                               
local  artists.   He  gave  some  suggestions, such  as  allowing                                                               
distilleries  to  offer  free  samples that  can  be  mixed;  not                                                               
allowing   afterhours  activities;   and   additional  fees   for                                                               
entertainment  which  would  create  revenue  for  the  Alcoholic                                                               
Beverage Control Board ("ABC Board").                                                                                           
                                                                                                                                
4:46:59 PM                                                                                                                    
                                                                                                                                
EVAN WOOD, Owner,  Devil's Club Brewing, testified  in support of                                                               
SB 76.   He said the proposed bill would  clarify the language in                                                               
Title 4.                                                                                                                        
                                                                                                                                
4:48:01 PM                                                                                                                    
                                                                                                                                
KATIE  BALDWIN-JOHNSON,  Mental  Health Trust  Authority  (MHTA),                                                               
testified  in  support  of  SB  76.   She  described  the  health                                                               
benefits for  beneficiaries of MHTA.  She informed that  the MHTA                                                               
respectfully  requested  passage  of  the proposed  bill  in  the                                                               
current session.                                                                                                                
                                                                                                                                
4:50:38 PM                                                                                                                    
                                                                                                                                
RICK ARMSTRONG, Owner, Baranof  Island Brewing Company, testified                                                               
in support of SB  76.  He stated he is  president of the Brewer's                                                               
Guild of Alaska.                                                                                                                
                                                                                                                                
4:51:35 PM                                                                                                                    
                                                                                                                                
MIKE JIPPING, Moose's  Tooth Brewery, testified in  support of SB                                                               
76.  He said he would like to see the production cap lifted.                                                                    
                                                                                                                                
REPRESENTATIVE  WOOL asked  whether  Mr. Jipping's  establishment                                                               
has a tasting room.                                                                                                             
                                                                                                                                
MR. JIPPING  answered there  is no tasting  room at  the brewery,                                                               
only a restaurant.                                                                                                              
                                                                                                                                
4:52:46 PM                                                                                                                    
                                                                                                                                
JEFF POLIZZOTTO testified in support of  SB 76.  He mentioned the                                                               
changes to Title 4 that stakeholders had already agreed upon.                                                                   
                                                                                                                                
4:53:57 PM                                                                                                                    
                                                                                                                                
MICHAEL  CERVANTES,  Owner,  The  Banks  Alehouse,  testified  in                                                               
support of SB 76.  He  asked the committee to review AS 04.09.210                                                               
regarding eating place licenses.   He said the language should be                                                               
reevaluated.    He further  spoke to his concerns  regarding food                                                               
truck licensing.                                                                                                                
                                                                                                                                
4:57:03 PM                                                                                                                    
                                                                                                                                
TOIVO LUICK,  Owner, Hoarfrost  Distillery, testified  in support                                                               
of  SB  76.    He suggested  not  putting  through  controversial                                                               
amendments and simply moving the bill forward.                                                                                  
                                                                                                                                
4:58:09 PM                                                                                                                    
                                                                                                                                
CLARK PELTZ, Co-owner, Cynosure  Brewing, testified in support of                                                               
SB 76.   He  spoke to  the work that  had gone  into the  Title 4                                                               
rewrite.                                                                                                                        
                                                                                                                                
4:59:15 PM                                                                                                                    
                                                                                                                                
KAREN  BERGER,  Co-owner,  Homer Brewing  Company,  testified  in                                                               
support of SB 76.  She said she  feels the bill has seen a lot of                                                               
compromise.   She spoke  to the fee  schedule and  the population                                                               
cap.                                                                                                                            
                                                                                                                                
5:01:06 PM                                                                                                                    
                                                                                                                                
PETE HANSON,  President, CEO,  Alaska Cabaret,  Hotel, Restaurant                                                               
and Retailers  Association (Alaska  CHARR), testified  in support                                                               
of SB 76.   He mentioned that manufacturers  represent around two                                                               
percent of  the total licenses  in the state.   He said  he would                                                               
like to see a level playing field across all licenses.                                                                          
                                                                                                                                
5:03:40 PM                                                                                                                    
                                                                                                                                
ROY MARENCO,  Girdwood Brewing Company,  testified in  support of                                                               
SB 76.                                                                                                                          
                                                                                                                                
5:04:34 PM                                                                                                                    
                                                                                                                                
JOEL PROBST,  Klondike Brewing,  testified in  support of  SB 76.                                                               
He said he  thinks the proposed bill does a  good job of updating                                                               
Title 4.   He pointed out  that the cost of  licenses is $300,000                                                               
only on the private  market.  He said the cost  of a BDL biannual                                                               
license is $2,500 currently.                                                                                                    
                                                                                                                                
5:06:07 PM                                                                                                                    
                                                                                                                                
JOEL LOOSLI  testified in support of  SB 76 as written.   He said                                                               
he  thinks Alaska's  current laws  are fairly  antiquated and  he                                                               
appreciates the effort to modernize them.                                                                                       
                                                                                                                                
5:07:10 PM                                                                                                                    
                                                                                                                                
MARK STAPLES, Midnight Sun Brewing  Company, testified in support                                                               
of SB 76.                                                                                                                       
                                                                                                                                
5:07:56 PM                                                                                                                    
                                                                                                                                
EDMOND MINER, Gakona Brewing Company,  testified in support of SB                                                               
76 in its current form.                                                                                                         
                                                                                                                                
REPRESENTATIVE  WOOL asked  whether  Mr. Miner  had testified  in                                                               
Senate Labor and  Commerce Committee bill hearings  in support of                                                               
the proposed bill in its current form.                                                                                          
                                                                                                                                
MR. MINER replied in the affirmative.                                                                                           
                                                                                                                                
REPRESENTATIVE  WOOL   asked  whether  he  had   testified  about                                                               
removing the 80/20 rule.                                                                                                        
                                                                                                                                
MR. MINER answered in the affirmative.                                                                                          
                                                                                                                                
5:09:45 PM                                                                                                                    
                                                                                                                                
PATRICK   LEVY,  Fairbanks   Distillery  Company,   testified  in                                                               
opposition to SB  76.  He queried why  distillery licenses needed                                                               
to  be so  complicated.     He stated  that  as a  member of  the                                                               
public, he  can invite  restaurant-owner friends  to his  home to                                                               
showcase product  but cannot  do the  same on  his premises.   He                                                               
added  distilleries  do not  compete  with  bars.   He  said  his                                                               
distillery is an attraction that helps the whole community.                                                                     
                                                                                                                                
REPRESENTATIVE STUTES asked Mr. Levy  whether he sells samples at                                                               
his distillery.                                                                                                                 
                                                                                                                                
MR. LEVY answered  that he does sell mixed drinks.  He added that                                                               
with SB  76 he would  have to buy a  sampling permit to  give out                                                               
samples.                                                                                                                        
                                                                                                                                
REPRESENTATIVE WOOL spoke to fees for tasting rooms.  He said                                                                   
the tasting endorsement is $200 for 2 years.                                                                                    
                                                                                                                                
MR. LEVY replied that it was  cheapest license, but he would also                                                               
have to  purchase a retail license  and a wholesale license.   He                                                               
added  the price  of his  current license  would go  up with  the                                                               
proposed legislation.                                                                                                           
                                                                                                                                
5:13:53 PM                                                                                                                    
                                                                                                                                
CHAIR KITO closed public testimony on SB 76.                                                                                    
                                                                                                                                
[SB 76 was held over.]                                                                                                          

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