Legislature(2017 - 2018)BARNES 124

05/04/2018 03:15 PM LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 86 ALASKA RAILROAD CORP: LAND;BONDS,FINANCE TELECONFERENCED
Moved HCS CSSB 86(L&C) Out of Committee
-- Public Testimony --
+= SB 76 ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG TELECONFERENCED
Moved HCS CSSSSB 76(L&C) Out of Committee
         SB  76-ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG                                                                     
                                                                                                                                
3:50:34 PM                                                                                                                    
                                                                                                                                
CHAIR KITO  announced that the  final order of business  would be                                                               
CS FOR  SPONSOR SUBSTITUTE FOR  SENATE BILL NO. 76(FIN),  "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(h), Alaska Rules of Minor Offense                                                                   
Procedure; and providing for an effective date."                                                                                
                                                                                                                                
3:51:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WOOL moved to adopt HCS for CSSSSB 76(FIN) as the                                                                
working document.                                                                                                               
                                                                                                                                
CHAIR KITO objected for discussion.                                                                                             
                                                                                                                                
3:51:35 PM                                                                                                                    
                                                                                                                                
LAURA  STIDOLPH, Staff,  Representative Adam  Wool, Alaska  State                                                               
Legislature,  explained the  changes  in Version  S [included  in                                                               
members' packets],  which reads as follows  [original punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     • Sec 04.09.330, Page 23, line 28 Distillery retail                                                                        
          license. Adds: "The holder  of a distillery retail                                                                    
          license   may  combine   the  holder's   distilled                                                                    
          spirits   under   this   subsection   with   other                                                                    
          ingredients  that  are  not  alcoholic  beverages,                                                                    
          including mixers, liquids, and garnishes."                                                                            
          • Sec 04.09.350, Page 26, line 4 Seasonal                                                                             
          Restaurant   or  eating   place  tourism   license                                                                    
          Changes  population requirements  from "20,000  or                                                                    
          less" to "40,000 or less".                                                                                            
          • Sec 04.09.350, Page 26, line 27 Seasonal                                                                            
          Restaurant  or  eating  place  tourism  license  &                                                                    
          04.09.210(d)  Page  12,   line  30  Restaurant  or                                                                    
          eating  place license  modify allowable  hours for                                                                    
          providing entertainment from 3 PM to 11 AM.                                                                           
      • Sec 04.09.410, Page 30, lines 20-22 Manufacturer                                                                        
          sampling  endorsement, add  "; the  holder of  the                                                                    
          distillery  manufacturer license  may combine  the                                                                    
          holder's  distilled spirits  under this  paragraph                                                                    
          with  other  ingredients  that are  not  alcoholic                                                                    
          beverages,   including    mixers,   liquids,   and                                                                    
          garnishes."                                                                                                           
      • AS 04.09.490, Page 39, lines 14-20 Package store                                                                        
          sampling endorsement                                                                                                  
          The   holder   of   a   package   store   sampling                                                                    
          endorsement may  serve a  total volume  of samples                                                                    
          that does not  exceed [12] 6 oz of  beer or cider,                                                                    
          if the cider contains  8.5% alcohol by volume; [6]                                                                    
          3 oz of  wine, mead, sake, or cider,  if the cider                                                                    
          contains 8.5% or more alcohol  by volume; or [1.5]                                                                    
          .75 oz of distilled spirits.                                                                                          
        • AS 04.11.170, Page 52, lines 20-25 Distillery                                                                         
          license New sections added to read:                                                                                   
               (f) The  holder of  a distillery  license may                                                                    
               combine  the  distiller's product  under  (d)                                                                    
               and   (e)   of   this  section   with   other                                                                    
               ingredients,  including  mixers, liquids,  or                                                                    
               garnishes, that are  not alcoholic beverages.                                                                    
               (g) In  this section,  "distillery's product"                                                                    
               means an alcoholic  beverage distilled on the                                                                    
               licensed premises.                                                                                               
        • AS 04.11.400(a), Page 66, lines 2-3, Distillery                                                                       
          license                                                                                                               
          Add "one" before "winery  retail", remove "or" add                                                                    
          "and  one" before  "distillery retail  license for                                                                    
          each   9,000  population   or  fraction   of  that                                                                    
          population".                                                                                                          
        • AS 04.11.670, Page 78, lines 24-31, Page 79 lines                                                                     
          1-3, Foreclosure                                                                                                      
          Allows license  issued under this  title is  to be                                                                    
          subject to  foreclosure and be used  as collateral                                                                    
          to secure a debt if the license is transferred to                                                                     
          another   person,  and   the  transferor   secures                                                                    
          payment  for real  and personal  property conveyed                                                                    
          to  the   transferee  upon  the  promise   of  the                                                                    
          transferee  to transfer  the license  back to  the                                                                    
          transferor upon default in payment.                                                                                   
        • AS 04.16.180(b), Page 93, lines 6-7, Revocation                                                                       
          of a license                                                                                                          
          Eliminates the  requirement of  license revocation                                                                    
          for  certain violations,  and  reverts to  earlier                                                                    
          language:  "on third  conviction,  the license  of                                                                    
          the   premises  involved   may  be   suspended  or                                                                    
          revoked."                                                                                                             
                                                                                                                                
3:55:24 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 3:55 p.m. to 3:59 p.m.                                                                       
                                                                                                                                
3:59:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE BIRCH had a query regarding manufacture retail                                                                   
licenses which may fall outside the population limit.                                                                           
                                                                                                                                
ERIKA MCCONNELL, Director, AMCO, replied in the affirmative.                                                                    
                                                                                                                                
4:00:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STUTES  asked where  it states in  Title 4  that a                                                               
beverage  dispensary  license (BDL)  cannot  have  anyone in  the                                                               
establishment after closing time.                                                                                               
                                                                                                                                
4:01:08 PM                                                                                                                    
                                                                                                                                
DALE FOX, Alaska CHARR, answered that under AS 4.16.0.10(c):                                                                    
                                                                                                                                
     A  licensee, an  agent, or  employee may  not permit  a                                                                    
     person to  enter and  a person  may not  enter premises                                                                    
     licensed  under this  title between  the hours  of 5:00                                                                    
     a.m. and 8:00  a.m. each day. This  subsection does not                                                                    
     apply  to common  carriers  or to  an  employee of  the                                                                    
     licensee  who is  on the  premises to  prepare for  the                                                                    
     next day's  business. A person  may enter or  remain on                                                                    
     the premises of a bona  fide restaurant or eating place                                                                    
     licensed   under  this   title  to   consume  food   or                                                                    
     nonalcoholic beverages.                                                                                                    
                                                                                                                                
MR. FOX added that under (d):                                                                                                   
                                                                                                                                
     A  municipality may  provide  for  additional hours  of                                                                    
     closure under AS 04.21.010.                                                                                                
                                                                                                                                
REPRESENTATIVE  STUTES   asked  whether  the   rewrite  addresses                                                               
closing hours.                                                                                                                  
                                                                                                                                
MR. FOX answered it does not.                                                                                                   
                                                                                                                                
REPRESENTATIVE STUTES asked why not.                                                                                            
                                                                                                                                
MR. FOX answered that he thinks it was an oversight.                                                                            
                                                                                                                                
CHAIR KITO clarified  that hours are 5 a.m. to  8 a.m. unless the                                                               
person is working, delivering, or contracting.                                                                                  
                                                                                                                                
REPRESENTATIVE KNOPP asked whether  there were afterhours parties                                                               
allowed on premises.                                                                                                            
                                                                                                                                
REPRESENTATIVE  STUTES remarked  that  with  BDLs, closing  hours                                                               
means everyone off premises.   She asked whether distilleries and                                                               
breweries had to adhere to this.                                                                                                
                                                                                                                                
CHAIR KITO  clarified that the  rewrite leaves language  in place                                                               
for existing  entities.  He  added they  would have to  adhere to                                                               
what local ordinances require.                                                                                                  
                                                                                                                                
REPRESENTATIVE   STUTES  asked   whether  the   statute  requires                                                               
everyone off premise as well.                                                                                                   
                                                                                                                                
MS. MCCONNELL  answered that the  language states  businesses may                                                               
not serve brewed beverages between 8 p.m. and 5 a.m.                                                                            
                                                                                                                                
REPRESENTATIVE WOOL  underlined that state law  states no patrons                                                               
may be on premises between 5 a.m. and  8 a.m.  He said he did not                                                               
know whether local ordinance addresses the same hours.                                                                          
                                                                                                                                
MS. MCCONNELL assumed it meant  the business would have to adhere                                                               
to the local ordinance.                                                                                                         
                                                                                                                                
4:08:28 PM                                                                                                                    
                                                                                                                                
MS.  MCCONNELL answered  there is  a situation  in which  food is                                                               
served meaning  patrons can  remain on  premises to  finish their                                                               
meal.                                                                                                                           
                                                                                                                                
REPRESENTATIVE  WOOL  said  the  state says  that  after  5  p.m.                                                               
whereas  the local  ordinance  can say  that  businesses have  to                                                               
close their doors but don't have to kick everyone out.                                                                          
                                                                                                                                
MS  MCCONNELL   shared  her  belief  that   the  municipality  of                                                               
Anchorage, Alaska, has a local  ordinance stating that businesses                                                               
can  decide whether  everyone has  to  leave or  to stop  serving                                                               
alcohol.                                                                                                                        
                                                                                                                                
4:10:06 PM                                                                                                                    
                                                                                                                                
CHAIR  KITO  removed his  objection  to  adopting CS  Version  S.                                                               
There being no objection, it was so ordered.                                                                                    
                                                                                                                                
4:10:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STUTES moved  to adopt  Amendment 1,  labeled 30-                                                               
LS0015\S.3, Bruce, 5/4/18, which read as follows:                                                                               
                                                                                                                                
     Page 21, line 19:                                                                                                          
          Delete "36"                                                                                                           
          Insert "24"                                                                                                           
                                                                                                                                
     Page 21, line 20:                                                                                                          
          Delete "18"                                                                                                           
          Insert "12"                                                                                                           
                                                                                                                                
     Page 22, line 19:                                                                                                          
          Delete "18"                                                                                                           
          Insert "12"                                                                                                           
                                                                                                                                
     Page 22, line 21:                                                                                                          
          Delete "36"                                                                                                           
          Insert "24"                                                                                                           
                                                                                                                                
     Page 23, line 26:                                                                                                          
          Delete "three"                                                                                                        
          Insert "two"                                                                                                          
                                                                                                                                
REPRESENTATIVE STUTES spoke to Amendment  1.  She stated it would                                                               
specifically reduce allowable amounts by  one third to 24 oz. She                                                               
said  she  thinks  reducing  samples  by  one  third  is  a  fair                                                               
compromise.  She noted the bill sponsor is not opposed.                                                                         
                                                                                                                                
REPRESENTATIVE BIRCH  expressed he  was not comfortable  with the                                                               
amendment  because he  does not  know where  the initial  numbers                                                               
came from.                                                                                                                      
                                                                                                                                
REPRESENTATIVE WOOL responded  that the issue had come  up when a                                                               
bill was  pass in  2014. He  spoke to  the industry  standard and                                                               
said  that every  state except  Oklahoma has  tasting rooms.   He                                                               
stated  the samples  range  from 2.5  oz to  3.25  oz and  Alaska                                                               
allows 3 oz.                                                                                                                    
                                                                                                                                
CHAIR  KITO  suggested  Representative Wool  was  speaking  about                                                               
distilled spirits specifically.                                                                                                 
                                                                                                                                
REPRESENTATIVE WOOL answered in the affirmative.                                                                                
                                                                                                                                
REPRESENTATIVE KNOPP said he thinks it is a great compromise.                                                                   
                                                                                                                                
4:15:21 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 4:15 p.m. to 4:15 p.m.                                                                       
                                                                                                                                
4:16:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CHUCK KOPP,  Alaska State  Legislature, spoke  to                                                               
the work  that had  been done  in creating  the legislation.   He                                                               
stated the  bill sponsor had  no opposition  to Amendment 1.   He                                                               
said that all things considered, it would not harm the bill.                                                                    
                                                                                                                                
4:17:15 PM                                                                                                                    
                                                                                                                                
CHAIR  KITO  removed  his  objection.   There  being  no  further                                                               
objection, Amendment 1 was adopted.                                                                                             
                                                                                                                                
CHAIR KITO  mentioned a concern  he had with sporting  events and                                                               
theater alcohol consumption.                                                                                                    
                                                                                                                                
4:18:46 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 4:18 p.m. to 4:26 p.m.                                                                       
                                                                                                                                
4:26:35 PM                                                                                                                    
                                                                                                                                
CHAIR  KITO stated  he had  spoken with  Senator Micciche,  prime                                                               
sponsor, who  had expressed he  did have concerns  about reducing                                                               
volumes.  He  said the sponsor had agreed  about reducing samples                                                               
in package stores.                                                                                                              
                                                                                                                                
REPRESENTATIVE STUTES  indicated she  had previously  spoken with                                                               
the sponsor of HB 357,  Representative Kopp, who had presented no                                                               
objection.                                                                                                                      
                                                                                                                                
4:27:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE BIRCH moved to call for the question                                                                             
                                                                                                                                
4:28:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON stated he did  not feel there was a need                                                               
for that.                                                                                                                       
                                                                                                                                
CHAIR KITO  said it was unfortunate  that bill had taken  so long                                                               
to  get to  the  current point.   He  stated  he appreciated  the                                                               
amount of work  that had gone into the legislation.   He added he                                                               
thought it was in decent shape to move forward.                                                                                 
                                                                                                                                
REPRESENTATIVE  WOOL commented  there had  been public  testimony                                                               
but  not  much  analysis  within  the  committee.    He  said  he                                                               
understood the "time  crunch" the committee was under.   He spoke                                                               
to changes in the bill versions.                                                                                                
                                                                                                                                
REPRESENTATIVE BIRCH  encouraged the  committee to move  the bill                                                               
forward.                                                                                                                        
                                                                                                                                
4:34:40 PM                                                                                                                    
                                                                                                                                
CHAIR KITO remarked that work in committee can seem like a                                                                      
"teeter-totter" but that he was interested in moving the bill                                                                   
forward.                                                                                                                        
                                                                                                                                
4:35:39 PM                                                                                                                    
                                                                                                                                
CHAIR KITO moved to report SB 76 out of committee as amended                                                                    
with individual recommendations and the accompanying fiscal                                                                     
notes.  There being no objection, it was so ordered.                                                                            

Document Name Date/Time Subjects
SB86 Letters of Support 5.3.18.pdf HL&C 5/4/2018 3:15:00 PM
SB 86
SB76 Ver. S.pdf HL&C 5/4/2018 3:15:00 PM
SB 76
SB76 and HB 357 Letters of support 5.4.18.pdf HL&C 5/4/2018 3:15:00 PM
HB 357
SB 76
SB76 and HB 357 Oppostion Letters 5.4.18.pdf HL&C 5/4/2018 3:15:00 PM
HB 357
SB 76
SB76 Explanation of Changes Ver C to Ver S 5.4.18.pdf HL&C 5/4/2018 3:15:00 PM
SB 76
SB76 Amendment S.3.pdf HL&C 5/4/2018 3:15:00 PM
SB 76