Legislature(2017 - 2018)BELTZ 105 (TSBldg)
04/10/2018 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB301 | |
| HB142 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 301 | TELECONFERENCED | |
| + | HB 142 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 301-ALCOHOL LICENSES:BEV DISP/RESTAUR./LODGE
1:35:12 PM
CHAIR COSTELLO announced the consideration of HB 301. [CSHB
301(FIN) was before the committee.]
1:35:28 PM
REPRESENTATIVE ADAM WOOL, Alaska State Legislature, Juneau,
Alaska, sponsor of HB 301, introduced the legislation speaking
to the following sponsor statement:
"An Act relating to the renewal and transfer of
ownership of a beverage dispensary license or
restaurant or eating place license."
House Bill 301 would grandfather hospitality
businesses that have been operating for at least
thirty years, some for close to one hundred, and allow
them to continue operating with a tourism beverage
dispensary license [BDL]. These businesses essentially
function as roadhouses, a place to stay for the weary
traveler (or miner as it were when their doors first
opened) and have long held a place in Alaska's storied
past.
When Title 4 was last rewritten in 1985, the law was
interpreted to let them function under the tourism
dispensary license despite not providing as many rooms
as was required by the population parameters. Some of
these establishments would have to build an additional
forty rooms to comply with the interpretation of the
current statute. HB 301 simply allows long-time
Alaskan businesses to continue operating as they have
been for decades.
REPRESENTATIVE WOOL explained that in 2016 Legislative Audit
determined that 34 long-standing businesses that were operating
with tourism beverage dispensary licenses were non-compliant and
that a legislative fix was needed. HB 301 provides that fix and
allows businesses that qualified when they received their
license initially would continue to qualify. This is important
in communities that have grown significantly because some
businesses would be required to add 30-40 rooms to comply with
the population requirements. HB 301 essentially grandfathers 34
businesses and allows them to stay open.
He noted that his staff could talk about the changes the bill
has undergone since it was introduced.
CHAIR COSTELLO asked Ms. Stidolph to walk through those changes.
1:38:02 PM
LAURA STIDOLPH, Staff, Representative Adam Wool, Alaska State
Legislature, Juneau, Alaska, explained that in Section 1 AS
4.11.330(a) was amended to change the annual operating hours of
a licensed premises from 30 8-hour days to 240 hours. This was
done to accommodate bars and seasonal businesses that don't
operate on an 8-hour day.
In Section 4, AS 4.11.491(a) was amended to add an outdoor
recreation lodge license to those that may be approved by voters
in a municipality on a local option ballot. This was done to
accommodate a couple of lodges in Bristol Bay that have been
operating since 2011 and are in a local option area. The
community voted to opt in those businesses for a liquor license,
but a legislative audit determined that outdoor recreation lodge
licenses did not qualify for an opt in vote. Adding this license
type to those that a community may opt in provides the fix.
1:39:59 PM
SENATOR MEYER asked how this interacts with the Title 4 rewrite.
REPRESENTATIVE WOOL replied the 240-hour aggregate hour
requirement is in the current Title 4 draft, he wasn't sure
about the opt in list or the grandfathering, but the communities
and businesses wanted a more immediate legislative fix because
the Title 4 rewrite is still in committee.
SENATOR MEYER asked if the grandfather provision applies only to
businesses started before 1985.
REPRESENTATIVE WOOL said most of the 34 businesses started pre-
1985, but there are several exceptions.
CHAIR COSTELLO noted that someone from the Duck Inn was online.
SENATOR MEYER questioned whether businesses that started after
1985 would be adversely affected.
REPRESENTATIVE WOOL replied any business that started after 1985
would need to comply with the law at the time of licensure. For
example, a business that received a tourism BDL in 1990 with a
20-room requirement would continue to only need 20 rooms
regardless of the community population growth.
1:43:05 PM
CHAIR COSTELLO opened public testimony on HB 301.
1:43:16 PM
NANCY TRUMP, owner, Latitude 62 Lodge/Motel, Talkeetna, Alaska,
said she and her partner have owned and operated the lodge and
motel since May 1986. They have 13 rooms, a bar, and a
restaurant. The liquor license is critical to the business just
as with two other businesses in Talkeetna. Without liquor
licenses, all three would probably shut down and the community
would lose 55 rooms. She asked the committee to support HB 301
and grandfather the business with a tourism dispensary license
so she could continue to operate.
1:45:24 PM
DEBBIE CAREY, owner, Inlet View Lodge, Ninilchik, Alaska, said
the loss of tourism beverage dispensary licenses would have a
huge impact on communities, families, and the state. When she
received her license initially she believed she met all the
legal requirements and the license has continually been renewed
for 27 years. She argued that the existing requirements for
number of rooms based on population is unreasonable in some
areas. Under the current requirement her business would need
four times the number it had 27 years ago. This would be cost
prohibitive. She pointed out that the licenses in question are
all small "mom and pop" operations that are the cornerstones of
communities. She urged the committee to support HB 301.
1:49:06 PM
LINDA SUPERMAN, President, Hunger Hut Bar/Liquor Store and
Motel, Nikiski, Alaska, said she has owned the business for the
last 25 years. The Alcoholic Beverage Control Board approved
their 10 rooms in 1997 and it's not feasible to meet the current
requirement to build another 30 rooms. She agreed with the
previous testimony and asked the committee to look out for the
best interest of these businesses.
1:50:49 PM
PETE HANSON, President and CEO, Alaska CHARR, Anchorage, Alaska,
said Alaska CHARR is strongly supportive of HB 301 to
grandfather these long-standing businesses that provide
important services to their communities and the traveling
public. Because of an unintended ambiguity in the law they face
the prospect of losing their liquor licenses and thus their
businesses. Maintaining the original intent of the law is the
right thing to do.
1:51:49 PM
ARDEN RANKINS, owner, Sunrise Inn, Cooper Landing, Alaska, said
she faces the same situation as the other testifiers. Cooper
Landing has a population of 275-300 and under the current law
she would need to add 40 rooms. The Sunrise Inn was licensed in
the early 1960s and she used her retirement savings to purchase
it in November 2015. Like the other businesses, she would be
forced to close the day after she lost her liquor license. That
would negatively impact the schools because the inn is the only
gathering place in the community and the only establishment open
between Girdwood, Sterling, and Seward. It's a safety spot on a
dangerous road.
1:53:43 PM
LELA ROSIN, owner, Duck Inn, Soldotna, Alaska, said she and her
partner have owned this small motel, caf?, and lounge for 11
years. The tourism beverage dispensary license was transferred
to her in 2007 and has renewed every odd year since then. That
license is now in jeopardy because of the recent interpretation
by the ABC Board. She opined that the Alcohol & Marijuana
Control Office has set a precedent for her and similar
businesses by allow these licenses to operate and transfer. She
listed the contributions the business has made in the past 11
years, including paying nearly $1 million to the community and
state in tax revenue. She said this change is unrealistic and
unreasonable financially and dynamically. Removing the option to
sell the license also jeopardizes her family's economic future.
She urged the committee to support the solution represented by
HB 301.
1:57:20 PM
DALE FOX, President, Alaska CHARR, shared that 33 years ago he
supported the bill that now needs a correction. The intent was
to promote tourism by allowing businesses with 10 rooms to
receive a beverage dispensary license. It was the same concept
as the Roadhouse license during Territorial days. There was no
thought about transfers or grandfathering because there was
never any intent to "kick the licenses out from underneath these
hardworking families that you're hearing from," he said. He
pointed out that if this isn't fixed it's not just the 34
business owners who will be hurt; it's all their employees and
their communities too. Fixing this issue by passing HB 301 is
the only descent thing to do, he said.
1:59:56 PM
LYN CARDEN, Deputy Administrator, City of Wasilla, Wasilla,
Alaska, stated that the City of Wasilla supports HB 301. Two
businesses inside the City of Wasilla are affected and the MatSu
Borough has several licenses that are affected. It makes sense
economically.
2:00:36 PM
CHAIR COSTELLO closed public testimony on HB 301 and noted that
Erika McConnel, the Director of the Alcohol & Marijuana Control
Office had been listening online to the testimony. She asked if
there were questions.
2:00:53 PM
SENATOR GARDNER pointed out the letter of support from the ABC
Board in the bill packet.
CHAIR COSTELLO stated she would hold HB 301 in committee.