Legislature(2019 - 2020)BELTZ 105 (TSBldg)

04/23/2019 06:00 PM JUDICIARY

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Please Note Time --
*+ HB 12 PROTECTIVE ORDERS TELECONFERENCED
Heard & Held
-- Public Testimony --
+= SJR 9 CONST.AM: APPROP. BILL FOR PUBL EDUCATION TELECONFERENCED
<Bill Hearing Canceled>
+ SB 80 INITIATIVE SEVERABILITY TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= SB 52 ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG TELECONFERENCED
Heard & Held
                                                                                                                                
         SB 52-ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG                                                                      
                                                                                                                              
6:47:49 PM                                                                                                                    
CHAIR HUGHES announced that the  final order of business would be                                                               
SENATE  BILL NO.  52, "An  Act relating  to alcoholic  beverages;                                                               
relating  to the  regulation of  manufacturers, wholesalers,  and                                                               
retailers   of  alcoholic   beverages;   relating  to   licenses,                                                               
endorsements,   and   permits  involving   alcoholic   beverages;                                                               
relating  to  common carrier  approval  to  transport or  deliver                                                               
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."                                                                                           
                                                                                                                                
6:48:23 PM                                                                                                                    
At-ease.                                                                                                                        
                                                                                                                                
6:49:09 PM                                                                                                                    
CHAIR HUGHES  reconvened the meeting.  She asked Ms.  Morledge to                                                               
discuss  the changes  that  were  made in  the  Senate Labor  and                                                               
Commerce Standing Committee.                                                                                                    
                                                                                                                                
6:49:22 PM                                                                                                                    
EDRA  MORLEDGE,  Staff,  Senator  Peter  Micciche,  Alaska  State                                                               
Legislature,  Juneau,   explained  the  changes  in   Version  S,                                                               
beginning with Article 2.                                                                                                       
                                                                                                                                
     Explanation  of Changes  CS SENATE  BILL  NO. 52  (L&C)                                                                    
     Version: 31-LS0004/S                                                                                                       
                                                                                                                                
     Page 6, Lines 13-15:  Requires the fermentation process                                                                    
     of all brewed beverages offered  for sale for a brewery                                                                    
     manufacturer   licensee  to   occur  on   the  holder's                                                                    
     premises in the state.                                                                                                     
                                                                                                                                
     Page 6, Lines 20-21:  Requires the fermentation process                                                                    
     of all wine  offered for sale by  a winery manufacturer                                                                    
     licensee  to  occur on  the  holder's  premises in  the                                                                    
     state.                                                                                                                     
                                                                                                                                
MS. MORLEDGE  explained that this  is a change from  the previous                                                               
version that required  80 percent of the final  product of brewed                                                               
beverages be  manufactured on site.  The same change is  made for                                                               
winery manufacturers.                                                                                                           
                                                                                                                                
6:50:42 PM                                                                                                                    
MS.  MORLEDGE turned  to the  next  two changes,  which are  very                                                               
similar for breweries and wineries.                                                                                             
                                                                                                                                
     Page  22, Lines  8-10:  Clarifies  that brewery  retail                                                                    
     license holders  can sell  up to  5.167 gallons  of the                                                                    
     holder's  beer   or  sake   for  consumption   off  the                                                                    
     premises.                                                                                                                  
                                                                                                                                
     Page 23,  Lines 9-11:  Clarifies that  the holder  of a                                                                    
     winery retail license  can sell up to  5.167 gallons of                                                                    
     the holder's  wine, mead, or cider  for consumption off                                                                    
     the premises, regardless of alcohol content.                                                                               
                                                                                                                                
She said the only  change on page 22 is to  add sake although the                                                               
state does not currently have any sake manufacturers.                                                                           
                                                                                                                                
6:52:00 PM                                                                                                                    
SENATOR  KIEHL  said  that  he  appreciated  the  differentiation                                                               
between wine and  cider. He asked whether the amount  of wine was                                                               
doubled.                                                                                                                        
                                                                                                                                
MS.  MORLEDGE responded  that in  current statute  both breweries                                                               
and wineries  can sell up  to five gallons. The  original version                                                               
of the  bill changed it to  nine liters. Some wineries  said that                                                               
change would  negatively impact  their profits.  She said  in the                                                               
Lower  48  wineries  are  selling kegs  for  special  events  and                                                               
functions.                                                                                                                      
                                                                                                                                
6:52:56 PM                                                                                                                    
SENATOR  REINBOLD  said  that  was   her  amendment  and  it  was                                                               
conforming  language.  She said  that  the  committee heard  that                                                               
people wanted  to have  a wedding  and were  limited by  the nine                                                               
liters, she said.                                                                                                               
                                                                                                                                
6:53:19 PM                                                                                                                    
MS.  MORLEDGE  continued  with  Section 10.  This  took  out  the                                                               
prohibition   of  manufacturer   sampling   license  holders   to                                                               
advertise sampling  activities on  their premises. She  said that                                                               
was  at  the request  of  wineries  who  wanted to  advertise  to                                                               
seasonal visitors  to come to  their premises and  purchase their                                                               
products.                                                                                                                       
                                                                                                                                
6:54:14 PM                                                                                                                    
MS. MORLEDGE continued [Sec. 04.09.440(a)].                                                                                     
                                                                                                                                
     Page  33, Lines  23-24: Clarifies  that consumption  of                                                                    
     alcoholic  beverages on  a  large  resort is  permitted                                                                    
     whether  under or  not the  locations are  in the  same                                                                    
     building or under the same roof of the large resort.                                                                       
                                                                                                                                
MS.  MORLEDGE said  that this  would allow  customers at  a large                                                               
resort to  move the wine  from a  bonfire to another  location on                                                               
the resort's property.                                                                                                          
                                                                                                                                
6:55:01 PM                                                                                                                    
MS. MORLEDGE continued. She turned to Section 27.                                                                               
                                                                                                                                
     Page  55, Line  22  to Page  56, Line  10:  Adds a  new                                                                    
     section  to  allow  for the  automatic  transfer  of  a                                                                    
     license  if  no action  has  been  taken by  the  board                                                                    
     within 60  days. This applies to  restaurant and eating                                                                    
     places  with  or  without  endorsements,  and  seasonal                                                                    
     restaurant  or eating  place  tourism  license with  or                                                                    
     without endorsements.                                                                                                      
                                                                                                                                
MS. MORLEDGE  said that this  relates to the transfer  of license                                                               
to another person.                                                                                                              
                                                                                                                                
6:55:48 PM                                                                                                                    
MS. MORLEDGE continued. She turned to Section 45.                                                                               
                                                                                                                                
     Page  65, Line  30  to  Page 66,  Line  2: Changes  the                                                                    
     authority  to impose  conditions or  restrictions on  a                                                                    
     permit from the Director to the Board                                                                                      
                                                                                                                                
     Removed   the  prohibition   for   the   holder  of   a                                                                    
     manufacturer  sampling  license to  advertise  sampling                                                                    
     activities. (Version U, Page 31, Lines 13-17)                                                                              
                                                                                                                                
6:56:23 PM                                                                                                                    
CHAIR HUGHES  referred to Section  27 on the  automatic transfer.                                                               
She asked whether backlogs caused problems.                                                                                     
                                                                                                                                
SENATOR MICCICHE  acknowledged that  some problems  have occurred                                                               
on the transfer of ownership when  people buy a new restaurant or                                                               
eating place. He said that this  raises some timing issues and it                                                               
is something  he will  probably have  to reconsider.  He supports                                                               
the  concept but  thinks that  some additional  work needs  to be                                                               
done.                                                                                                                           
                                                                                                                                
He referred to  the next change on page 65-66.  He said that this                                                               
language change was  to not give the director  the opportunity to                                                               
make  changes  that  only  the board  can  make.  Currently,  the                                                               
director cannot put  conditions on the permit. He  said he thinks                                                               
that  people believe  the conditions  are negative.  However, the                                                               
realty  is that  the conditions  would  be positive.  He said  it                                                               
could slow down  the process for people who have  a minor problem                                                               
to correct. Going through the  process could slow things down and                                                               
the event  may be long  over before the  board meets. He  said he                                                               
understands  the reason  for the  change, but  it will  need some                                                               
work to function as intended.                                                                                                   
                                                                                                                                
6:58:47 PM                                                                                                                    
SENATOR  MICCICHE  thanked  the  Chair  of  the  Senate  Labor  &                                                               
Commerce Committee.  He said it is  a big bill and  the committee                                                               
made some important changes. He  acknowledged that as mentioned a                                                               
few more  changes need to  be worked on,  but they will  be minor                                                               
ones.                                                                                                                           
                                                                                                                                
SENATOR REINBOLD related her understanding  that it has taken six                                                               
or seven years for  the sponsor to get to this  point. She said a                                                               
lot of work  was done in the previous committee.  She has several                                                               
amendments. She said she is very supportive of this bill.                                                                       
                                                                                                                                
[SB 52 was held in committee.]                                                                                                  

Document Name Date/Time Subjects
CSHB 12(JUD) Version E.PDF SJUD 4/23/2019 6:00:00 PM
HB 12
HB012 Sponsor Statement ver E.pdf SJUD 4/23/2019 6:00:00 PM
HB 12
HB012 Sectional ver E.pdf SJUD 4/23/2019 6:00:00 PM
HB 12
HB012 Explantion of Changes ver E.pdf SJUD 4/23/2019 6:00:00 PM
HB 12
HB012 Reference Document CPO Statute and Duration of Order.pdf SJUD 4/23/2019 6:00:00 PM
HB 12
SB 80 Sponsor Statement.pdf SJUD 4/23/2019 6:00:00 PM
SSTA 4/11/2019 3:30:00 PM
SB 80
SB 80 Version U.pdf SJUD 4/23/2019 6:00:00 PM
SSTA 4/11/2019 3:30:00 PM
SB 80
SB 80 - Fiscal Note - GOV.pdf SJUD 4/23/2019 6:00:00 PM
SSTA 4/11/2019 3:30:00 PM
SB 80
SB052 EXPLANATION OF CHANGES 04.22.19.pdf SJUD 4/23/2019 6:00:00 PM
SB 52
SB52 SECTIONAL ANALYSIS 4-22-19.pdf SJUD 4/23/2019 6:00:00 PM
SB 52
SB 80 - Letter of Support.pdf SJUD 4/23/2019 6:00:00 PM
SSTA 4/11/2019 3:30:00 PM
SB 80
SB 80 - Letter of Support - RDC.pdf SJUD 4/23/2019 6:00:00 PM
SSTA 4/11/2019 3:30:00 PM
SB 80
SB 80 - Letter of Support - Alliance Board of Directors.pdf SJUD 4/23/2019 6:00:00 PM
SSTA 4/11/2019 3:30:00 PM
SB 80