Legislature(1997 - 1998)
04/28/1998 01:35 PM Senate L&C
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
CSHB 411(FIN) - LOCAL OPTION FOR WINERY LICENSE CHAIRMAN LEMAN closed the confirmation hearing portion of the meeting and then brought HB 411 before the committee. REPRESENTATIVE ALAN AUSTERMAN, prime sponsor of HB 411, explained the legislation is a minor change to the statute to allow the possibility of a small winery business to be established, particularly in one of the villages on Kodiak Island, although it could apply to the rest of the state. Because of the way the ABC statutes are written, it was felt that the winery licensee portion had to be added to the exemption clauses which would then allow the local communities to have a vote to allow a winery to take place. SENATOR MACKIE asked if the statutes contain a definition of a winery. DOUG GRIFFIN, Director, Alcoholic Beverage Control Board, stated the ABC Board's position as being neutral and not having any objection to the legislation. He confirmed the change allows the ability to start a winery as part of one of the options that are available to local residents under the local option process. In response to Senator Mackie's question, MR. GRIFFIN clarified that the state of Alaska relies on the definition for wine that's provided by the federal government. The Bureau of Alcohol, Tobacco and Firearms is more involved in the manufacturing of a product. He said he didn't have the definition in front of him, but it basically would be a product that's fermented from grapes or other types of fruit. On Kodiak Island they are looking at a wildberry winery and it would be within a certain alcohol content. SENATOR MACKIE asked if a winery would be regulated in the same manner by the ABC Board as any other industry would. MR. GRIFFIN acknowledged that was correct. He stressed that there would have to be a local option election held before a winery could be established. CHAIRMAN LEMAN asked if the winery would be just exporting its product. MR. GRIFFIN replied that could be the case if that is the option it chooses, but a community could also allow for limited sale of the product as well. He noted there are communities in other parts of the country involved in the manufacturing of a product but they remain dry communities. There being no further testimony on HB 411, CHAIRMAN LEMAN asked for the pleasure of the committee. SENATOR MACKIE moved that CSHB 411(FIN) be passed out of committee with individual recommendations. Hearing no objection, it was so ordered.
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