Legislature(1995 - 1996)
02/28/1995 03:00 PM House ITT
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE SPECIAL COMMITTEE ON
INTERNATIONAL TRADE AND TOURISM
February 28, 1995
3:00 p.m.
MEMBERS PRESENT
Representative Beverly Masek, Chairman
Representative Alan Austerman, Vice Chairman
Representative Jeannette James
Representative Pete Kott
Representative Brian Porter
Representative Caren Robinson
MEMBERS ABSENT
Representative Irene Nicholia
COMMITTEE CALENDAR
HITT - 02/28/95
* HB 162: "An act related to the authority of certain beverage
dispensary licensees to stock alcoholic beverages in
guest rooms."
PASSED OUT OF COMMITTEE
Overview of Committee Objectives
(* First public hearing)
WITNESS REGISTER
REPRESENTATIVE PETE KOTT
Alaska State Legislature
State Capitol, Room 432
Juneau, AK 99801
Phone: 465-3777
POSITION STATEMENT: Prime Sponsor of HB 162
DENNIS LAVEY, Owner
Days Inn Hotel
321 E 5th Avenue
Anchorage, AK 99501
Phone: 276-7226
POSITION STATEMENT: Supported HB 162
BILL DUGDALE, General Manager
Westmark Hotel
720 W 5th Avenue
Anchorage, AK 99501
Phone: 276-7676
POSITION STATEMENT: Supported HB 162
MICHAEL ALLEN, General Manager
Westmark Hotel
51 Egan Drive
Juneau, AK 99801
Phone: 586-6900
POSITION STATEMENT: Supported HB 162
MITCH GRAVO, Lobbyist
Alaska Hotel and Motel Association
170 Botanical Circle
Anchorage, AK 99515
Phone: 244-2406
POSITION STATEMENT: Supported HB 162
DAVID STANCLIFF, Legislative Assistant
to Representative Beverly Masek
State Capitol, Room 418
Juneau, AK 99801
Phone: 465-2688
POSITION STATEMENT: Gave overview of committee objectives
PREVIOUS ACTION
BILL: HB 162
SHORT TITLE: ALCOHOL SALES IN HOTEL ROOMS
SPONSOR(S): REPRESENTATIVE(S) KOTT, Toohey, James
JRN-DATE JRN-PG ACTION
02/08/95 272 (H) READ THE FIRST TIME - REFERRAL(S)
02/08/95 272 (H) ITT, L&C
02/16/95 407 (H) COSPONSOR(S): JAMES
02/28/95 (H) ITT AT 02:30 PM CAPITOL 408
ACTION NARRATIVE
TAPE 95-4, SIDE A
The House Special Committee on International Trade and Tourism was
called to order by Chairman Beverly Masek at 3:00 p.m. Members
present at the call to order were Representatives Masek, Austerman,
Kott, Porter, and Robinson. Members absent were Representatives
James and Nicholia.
Number 026
HITT - 02/28/95
HB 162 - ALCOHOL SALES IN HOTEL ROOMS
REPRESENTATIVE PETE KOTT, PRIME SPONSOR, stated that HB 162 enabled
hotels/motels to place a refrigerated or non-refrigerated
device/cabinet into individual rooms stocked with alcoholic
beverages for purchase. There are enough mechanisms built into the
system to ensure that the sale of beverages is to those currently
authorized. He felt this would benefit the domestic and
international visitors traveling to Alaska. He added that if
someone wants alcohol, they'll find a way to get it. He'd prefer
that they have the option in their room to acquire it versus
driving a rental car to a bar and getting inebriated and driving
back to the hotel.
Number 092
DENNIS LAVEY, OWNER, DAYS INN HOTEL, and President of the Alaska
Hotel/Motel Association (AHMA), which represents 80 hotels in
Alaska. He stated the mini-bar or in-room service/refreshment
center units are known world-wide today and are not just for
dispensing alcohol but, snacks as well. Seventy percent of the
sales are snacks, not alcohol. Actually, the biggest selling item
is bottled water, for those concerned about water in a given
area/country.
MR. LAVEY continued that with the technology available today, the
new machines eliminate the concerns about selling alcohol at
certain hours or the capabilities of minors obtaining it. The
machines and the computer systems that control them are able to
block access during particular times or to minors. In a different
vein, he spoke of foreign guests that may not know how to ask for
these items. The technology allows a foreign language to be
displayed at these machines, enabling and simplifying the guests'
purchase of these items.
MR LAVEY offered there will be additional jobs in stocking and
servicing these machines. He noted that there are only six states
(Alaska, Utah, Arkansas, Mississippi, Nebraska and South Carolina)
that have not legalized these mini-bars. The other five states are
generally anti-alcohol. He concurred that it would be better to
have people drinking in their room than driving a rental car,
especially here in the wintertime, looking for adult beverages.
REPRESENTATIVE BRIAN PORTER questioned if the terminology quoting
a "refrigerated" unit was too restrictive, or are all the units
refrigerated?
MR. LAVEY responded that he has not seen any that weren't
refrigerated. The non-refrigerated items are housed in a separate
non-refrigerated compartment that is still behind the same door.
The terminology is fine with him.
Number 178
BILL DUGDALE, GENERAL MANAGER, WESTMARK HOTEL (Anchorage), offered
his endorsement of HB 162. Since this effort began two years ago,
there have been six additional states that have passed similar
legislation. The industry has a good success rate providing this
guest convenience. It's a feature that many travelers have come to
expect on international and domestic levels. He added that many
insurance companies have no problem with coverage on hotels that
do have these in-room refreshment centers.
MR. DUGDALE recalled that two years ago, this legislation was
successful in being moved through the House and Senate but, was
vetoed by Gov. Hickel. The Governor's position was that he didn't
want to make alcohol more accessible to people "within" Alaska.
Mr. Dugdale concurred on the greater risk factor for guests
consuming alcohol having driven somewhere to get it versus the
confines of a hotel room. It's a huge benefit for women travelers
who are uncomfortable going to a lounge/bar and, would prefer a
cocktail in the privacy of their own room.
MICHAEL ALLEN, GENERAL MANAGER, WESTMARK HOTEL (Juneau), fully
supports HB 162. According to hospitality demographics, people
are spending more time in their rooms. They look for ways to
increase in-room amenities. They see it as a safety factor; less
time spent outside the room resolves crime issues. Hotels have
adequate control systems in place to ensure meeting the criteria
being met in lounges and restaurants in dispensing alcohol.
Number 244
REPRESENTATIVE ALAN AUSTERMAN asked if any hotels were using these
facilities without alcohol? He felt if the other items were so
popular, they could already be in place without offering the
alcohol portion of it.
MR. ALLEN responded not to his knowledge.
Representative James arrived at 3:15 p.m.
REPRESENTATIVE KOTT offered that these units are expensive. If one
isn't allowed to sell alcohol as part of that convenience package,
the profit margin wouldn't justify the expense for the system. He
doubted that every single room would have one initially because of
the up-front cost.
REPRESENTATIVE AUSTERMAN inquired if the wording on page 2, lines
1 and 2, regarding the key or combination lock system, is
sufficient to cover electronic capability.
MR. ALLEN affirmed that the wording is sufficient to cover
electronic measures controlled by the hotel front desk.
CHAIRMAN BEVERLY MASEK asked if package stores, restaurants and
bars are in support of this bill.
MITCH GRAVO, LOBBYIST, ALASKA HOTEL AND MOTEL ASSOCIATION,
volunteered that the Cabaret Hotel and Restaurant Retail
Association (CHARR) is in favor of this legislation.
REPRESENTATIVE AUSTERMAN made the motion to move HB 162 with
individual recommendations, and the zero fiscal note to the next
committee.
There being no objections, HB 162 passed out of committee.
Number 297
DAVID STANCLIFF, LEGISLATIVE ASSISTANT TO REPRESENTATIVE MASEK,
began by outlining the agenda for the committee objectives. The
first step was bringing in the Division of Tourism, the Alaska
Visitors Association, (AVA), and the Alaska Tourism Marketing
Council, (ATMC), to educate and inform the committee on tourism and
how these agencies interact. The next step is to get input from
important vendors within each member's district.
MR. STANCLIFF mentioned that, in like manner, they will look into
successful methods employed in other states. He cited Colorado's
successful effort in replacing 30-second spots, which are expensive
and produce negligible results with 30-minute programs that are
considerably more motivating. He said he is looking into that
method, termed sponsor-driven television, and has two experts to
explain how it works. It's spending $450,000 and, over the course
of five years, has a guaranteed audience of one billion people
internationally.
MR. STANCLIFF stated Representative Masek's effort in exploring
other options is to receive not just value but, also quality for
the tourism advertising dollar. The committee should formulate a
strong informed recommendation to the industry for implementation.
Another concern is the question of who is controlling the industry.
The legislature must have the ability to redirect the focus of
tourism. This committee should also have access to the revenue
figures of larger companies in evaluating their gain against the
state's costs.
MR. STANCLIFF summed up by suggesting that after hearing from
vendors and reviewing new possibilities, Representative Masek would
be comfortable preparing a report from this committee to the
legislature, to be shared with the Governor, containing
recommendations to the budget subcommittee and the full Finance
Committee on how things should go for the dollars being spent. The
legislature needs to have an active role in determining the path.
Number 378
REPRESENTATIVE AUSTERMAN asked what kind of time frame is Mr.
Stancliff anticipating getting the information on the Colorado
program.
MR. STANCLIFF replied he has received the information, is going
through it and will later present it to the committee. The next
phase would be to hear from the vendors, in March, after which the
committee could then recommend changes. In April, they'll shift
over to trade.
ADJOURNMENT
There being no further business before the committee, CHAIRMAN
MASEK adjourned the meeting at 3:30 p.m.
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