05/08/2019 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB16 | |
| SB83 | |
| HB97 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 83 | TELECONFERENCED | |
| += | SB 16 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 97 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
May 8, 2019
4:03 p.m.
MEMBERS PRESENT
Representative Adam Wool, Chair
Representative Andi Story
Representative Zack Fields
Representative Sara Hannan
Representative Louise Stutes
Representative Josh Revak
Representative Dave Talerico
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
CS FOR SENATE BILL NO. 16(FIN)
"An Act relating to certain alcoholic beverage licenses and
permits; relating to the bond requirement for certain alcoholic
beverage license holders; and providing for an effective date."
- HEARD & HELD
SENATE BILL NO. 83
"An Act relating to the Regulatory Commission of Alaska;
relating to the public utility regulatory cost charge; relating
to the regulation of telecommunications; relating to exemptions,
charges, and rates applicable to telecommunications utilities;
relating to regulation of telephone services; and relating to
alternate operator services."
- HEARD & HELD
HOUSE BILL NO. 97
"An Act relating to the prescription of drugs by a physician
assistant without physical examination."
- MOVED CSHB 97(L&C) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 16
SHORT TITLE: ALCOHOL LIC:FAIRS,THEATRES,CONCERTS;BONDS
SPONSOR(s): SENATOR(s) MICCICHE
01/16/19 (S) PREFILE RELEASED 1/11/19
01/16/19 (S) READ THE FIRST TIME - REFERRALS
01/16/19 (S) L&C, FIN
02/05/19 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/05/19 (S) Heard & Held
02/05/19 (S) MINUTE(L&C)
02/14/19 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/14/19 (S) Scheduled but Not Heard
02/19/19 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/19/19 (S) Moved CSSB 16(L&C) Out of Committee
02/19/19 (S) MINUTE(L&C)
02/25/19 (S) L&C RPT CS 5DP NEW TITLE
02/25/19 (S) DP: REINBOLD, BIRCH, BISHOP, COSTELLO,
GRAY-JACKSON
03/08/19 (S) FIN AT 9:00 AM SENATE FINANCE 532
03/08/19 (S) Heard & Held
03/08/19 (S) MINUTE(FIN)
04/01/19 (S) FIN RPT CS 3DP 4NR NEW TITLE
04/01/19 (S) DP: VON IMHOF, MICCICHE, WILSON
04/01/19 (S) NR: STEDMAN, HOFFMAN, SHOWER, OLSON
04/01/19 (S) FIN AT 9:00 AM SENATE FINANCE 532
04/01/19 (S) Moved CSSB 16(FIN) Out of Committee
04/01/19 (S) MINUTE(FIN)
04/08/19 (S) TRANSMITTED TO (H)
04/08/19 (S) VERSION: CSSB 16(FIN)
04/09/19 (H) READ THE FIRST TIME - REFERRALS
04/09/19 (H) L&C, FIN
05/01/19 (H) L&C AT 3:15 PM BARNES 124
05/01/19 (H) Heard & Held
05/01/19 (H) MINUTE(L&C)
05/08/19 (H) L&C AT 3:15 PM BARNES 124
BILL: SB 83
SHORT TITLE: TELECOMMUNICATIONS REGULATION/EXEMPTIONS
SPONSOR(s): SENATOR(s) BIRCH
03/11/19 (S) READ THE FIRST TIME - REFERRALS
03/11/19 (S) L&C
03/26/19 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/26/19 (S) Heard & Held
03/26/19 (S) MINUTE(L&C)
04/02/19 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
04/02/19 (S) Moved SB 83 Out of Committee
04/02/19 (S) MINUTE(L&C)
04/03/19 (S) L&C RPT 4DP
04/03/19 (S) DP: REINBOLD, GRAY-JACKSON, COSTELLO,
BIRCH
04/15/19 (S) TRANSMITTED TO (H)
04/15/19 (S) VERSION: SB 83
04/16/19 (H) READ THE FIRST TIME - REFERRALS
04/16/19 (H) L&C, FIN
04/17/19 (H) JUD REPLACES FIN REFERRAL
05/01/19 (H) L&C AT 3:15 PM BARNES 124
05/01/19 (H) Heard & Held
05/01/19 (H) MINUTE(L&C)
05/08/19 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 97
SHORT TITLE: TELEHEALTH: PHYSICIAN ASSISTANTS; DRUGS
SPONSOR(s): REPRESENTATIVE(s) KREISS-TOMKINS
03/15/19 (H) READ THE FIRST TIME - REFERRALS
03/15/19 (H) HSS, L&C
03/26/19 (H) HSS AT 3:00 PM CAPITOL 106
03/26/19 (H) Heard & Held
03/26/19 (H) MINUTE(HSS)
03/28/19 (H) HSS AT 3:00 PM CAPITOL 106
03/28/19 (H) Moved CSHB 97(HSS) Out of Committee
03/28/19 (H) MINUTE(HSS)
03/29/19 (H) HSS RPT CS(HSS) NT 4DP 1NR
03/29/19 (H) DP: CLAMAN, TARR, DRUMMOND, SPOHNHOLZ
03/29/19 (H) NR: PRUITT
03/29/19 (H) FIN REFERRAL ADDED AFTER L&C
04/12/19 (H) L&C AT 3:15 PM BARNES 124
04/12/19 (H) -- MEETING CANCELED --
04/15/19 (H) L&C AT 3:15 PM BARNES 124
04/15/19 (H) Scheduled but Not Heard
04/24/19 (H) L&C AT 3:15 PM BARNES 124
04/24/19 (H) Scheduled but Not Heard
04/29/19 (H) L&C AT 3:15 PM BARNES 124
04/29/19 (H) Heard & Held
04/29/19 (H) MINUTE(L&C)
05/06/19 (H) L&C AT 3:15 PM BARNES 124
05/06/19 (H) -- MEETING CANCELED --
05/08/19 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
ASHLEY STRAUCH, Staff
Representative Wool
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of Representative Wool,
introduced the committee substitute (CS) for SB 16 and explained
the changes.
ERIKA MCCONNEL, Director
Alcohol and Marijuana Control Office
Department of Commerce, Community & Economic Development
POSITION STATEMENT: Answered questions during the hearing on SB
16.
CODIE COSTELLO, VP Strategic Development & Communications
Alaska Center for the Performing Arts
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 16.
MAHLA STROHMAIER, Executive Director
Tanana Valley State Fair Association
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of SB 16.
ROBERT BREWSTER, CEO
The Alaska Club
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 16.
SARAH OATES, President/CEO
Alaska Cabaret, Hotel, Restaurant and Retailers Association
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 16.
JEROME HERTEL, Manager
Alaska State Fair
Homer, Alaska
POSITION STATEMENT: Testified in support of SB 16.
MARNA SANFORD
Fairbanks, Alaska
POSITION STATEMENT: Testified in opposition to the CS.
PAUL THOMAS, Owner
Alaska Cache Liquor
Juneau, Alaska
POSITION STATEMENT: Testified during the hearing on SB 16.
JACK MANNING, Owner
Duck Creek Market
Juneau, Alaska
POSITION STATEMENT: Testified during the hearing on SB 16.
LEEANN THOMAS, Owner
Triangle Bar
Juneau, Alaska
POSITION STATEMENT: Testified during the hearing on SB 16.
JERAD CURE, Owner
The Narrows
Juneau, Alaska
POSITION STATEMENT: Testified during the hearing on SB 16.
GEORGE TIPTON
Ketchikan Cabaret, Hotel, and Restaurant Retailers Association
Ketchikan, Alaska
POSITION STATEMENT: Testified during the hearing on SB 16.
MACEY SHAPIRO
Hatcher Alpine Xperience
Palmer, Alaska
POSITION STATEMENT: Testified during the hearing on SB 16.
SENATOR PETER MICCICHE
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, offered comments during
the hearing on SB 16.
BOB PICKETT, Commissioner
Regulatory Commission of Alaska
Anchorage, Alaska
POSITION STATEMENT: Testified during the hearing on SB 83.
DAVID GUTTENBERG
Fairbanks, Alaska
POSITION STATEMENT: Testified during the hearing on SB 83.
CHRISTINE OCONNOR
Alaska Telecom Association
Anchorage, Alaska
POSITION STATEMENT: Testified during the hearing on SB 83.
REPRESENTATIVE JONATHAN KREISS-TOMKINS
Alaska State Legislature
POSITION STATEMENT: As prime sponsor, testified during the
hearing on HB 97.
REID HARRIS, Staff
Representative Jonathan Kreiss-Tomkins
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of Representative Kreiss-Tomkins,
prime sponsor, answered questions during the hearing on HB 97.
ACTION NARRATIVE
4:03:37 PM
CHAIR ADAM WOOL called the House Labor and Commerce Standing
Committee meeting to order at 4:03 p.m. Representatives Fields,
Revak, Hannan, Stutes, Talerico, Story, and Wool were present at
the call to order.
SB 16-ALCOHOL LIC:FAIRS,THEATRES,CONCERTS;BONDS
4:04:36 PM
CHAIR WOOL announced that the first order of business would be
SENATE BILL NO. 16, "An Act relating to certain alcoholic
beverage licenses and permits; and relating to the bond
requirement for certain alcoholic beverage license holders."
4:04:56 PM
ASHLEY STRAUCH, Staff, Representative Wool, Alaska State
Legislature, introduced the committee substitute (CS) for SB 16,
Version 31-LS0283\O, and explained the changes. She said the
scope of a fair license was narrowed, allowing only a nonprofit
that has been in existence for five years, as of the effective
date of the act, to apply for the license. The scope of the
definition of "fair" was narrowed by removing the language "or
outdoor entertainment." She stated that the conditions under
which a minor may be on the licensed premises of a performing
arts theater was clarified to allow minors 16 years or older to
be in the presence of alcohol at a theater event and allows
minors under the age of 16 to be on the licensed premises of the
theater with an adult 21 years of age or older. She said that
mirrors the current statute regarding golf courses and works the
same as a restaurant designation. Bowling was added to the list
of activities allowable under a recreational site license. The
hours that a restaurant can provide music were increased to 11
a.m. to 11 p.m. Sporting events were delineated from sporting
activities under the recreational site license. A pub license
was added as carryover from SB 52. The number of events a
nonprofit can hold was changed from 12 to 5. Finally, "concert
permit" and "music festival permit" were removed from the
original bill.
4:07:01 PM
REPRESENTATIVE HANNAN asked what a "pub license" is.
CHAIR WOOL explained that a pub license is used for the [Alaska]
university system. He said it was adopted from a section in the
Title 4 omnibus bill that allowed the University of Alaska
Fairbanks (UAF) to use their pub license for the museum in the
summer months.
REPRESENTATIVE HANNAN asked if there was only one pub license.
4:08:40 PM
MS. STRAUCH offered her understanding that there is currently
only one pub license at the UAF campus.
4:08:53 PM
ERIKA MCCONNEL, Director, Alcohol and Marijuana Control Office,
confirmed that.
4:09:06 PM
REPRESENTATIVE STUTES inquired as to the four events that a
nonprofit can hold.
MS. STRAUCH clarified that it's five events, which is the number
of events that a nonprofit can hold per year where alcohol is
served. She noted that the original version of this bill would
have increased that to 12 events per year; however, this change
brings that number back down to current statute, which is five.
REPRESENTATIVE STUTES questioned whether any nonprofit can
submit an application the ABC board without having an associated
beverage dispensary license (BDL).
MS. STRAUCH said that is her understanding.
4:09:57 PM
REPRESENTATIVE FIELDS sought clarification on the "Chickenstock
situation" and what it will take for that festival to continue
operating.
CHAIR WOOL said the music festival would be addressed after the
CS is adopted.
REPRESENTATIVE TALERICO questioned whether the CS removes the
concert permit and music festival permit.
CHAIR WOOL confirmed that the CS removes that language.
4:11:12 PM
REPRESENTATIVE STUTES moved to adopt the proposed committee
substitute (CS) for SB 16, labeled 31-LS0283\O, Bruce, 5/4/19,
as the working draft.
REPRESENTATIVE TALERICO objected.
A roll call vote was taken. Representatives Story, Fields,
Hannan, Stutes, and Wool voted in favor of adopting the proposed
CS. Representatives Revak and Talerico voted against it.
Therefore, Version O was before the committee by a vote of 5-2.
CHAIR WOOL turned attention to public testimony.
4:12:43 PM
CODIE COSTELLO, VP Strategic Development & Communications,
Alaska Center for the Performing Arts, expressed her support for
SB 16 and thanked members for their hard work on this piece of
legislation.
4:13:23 PM
MAHLA STROHMAIER, Executive Director, Tanana Valley State Fair
Association, voiced her support for SB 16 because it provides
greater clarity and consistency in state law and enables Alaska
fair organizations to continue building their long-term
financial sustainability. She provided a brief historical
background of the Tanana Valley State Fair, noting that the fair
is self-sustaining and operates on a combination of earned
income from ticket sales, vendor fees, building and ground
rentals, grants, and sponsorships. She stated that consistent
and standardized alcoholic beverage licensing and permitting
under Alaska statutes offers Alaska fairs the ability to
generate important earned revenue that allows those
organizations to build, maintain and enhance their abilities to
be more sustainable and financially self-supporting. The Tanana
Valley State Fair's current business model as it relates to the
sale of alcohol, she said, involves contracting with a local
business that utilizes its own liquor license and taking a small
portion of their sales as earned income. She addressed the
fair's 5-year strategic plan based, in part, on making the
fairground a year-round community destination. She offered her
belief that clarifying Alaska's statute for fairs through SB 16
will provide the Tanana Valley State Fair Association with
essential options as they continue to grow its long-term
financial viability and overall sustainability.
4:16:12 PM
ROBERT BREWSTER, CEO, The Alaska Club, informed the committee
that The Alaska Club has been a recreational site license holder
at their 21 and over summit location for eight years, during
which they had never been cited for any violations and had
complied with all applicable regulations and fees. He said they
worked with an Alcohol Beverage Control Board staff member to
obtain their recreational site license and relied on that
qualification to construct their premises, define their product,
and make representations that beer and wine would be available
to members. Two years ago, that license was terminated by the
ABC Board only to be won back in an appeal process. This year
their renewal was once again denied. He asked for help in
correcting the unfortunate outcome of these non-renewals, which
serve no valid public purpose and are harming responsible
businesses. He encouraged the passage of SB 16.
4:19:13 PM
SARAH OATES, President/CEO, Alaska Cabaret, Hotel, Restaurant
and Retailers Association, disclosed her prior experience
working for the Alcohol and Beverage Control Office for seven
years. She voiced support for the proposed CS for numerous
reasons. She said the prior version of the bill worked against
the work that the Title 4 stakeholders' group has been working
on, while the CS sticks to their objective. She also praised
the deletion of the music festival permit and concert permit.
She opined that it is irresponsible and inappropriate to adopt
legislation that affects only one entity when that same
legislation could negatively impact many other entities across
the state. She expressed support for grandfathering in the
existing licensees and those who lost their licenses due to the
recreational site language.
4:23:10 PM
REPRESENTATIVE FIELDS asked for more clarification on
Chickenstock. He explained that there is an existing BDL from a
local business in Chicken, Alaska, and asked how that business
could work with people putting on the festival to ensure that
beverages could be dispensed.
MS. OATES offered her belief that the existing beverage
dispensary licensee in Chicken has worked to put on
Chickenstock. She reiterated that the way the language is
written would affect many more businesses than just one
individual festival in Chicken, Alaska. She added that the
restaurateur who is requesting this change already has the
current capability to put on the festival by providing food in a
banquet or dinner during the festival.
REPRESENTATIVE FIELDS asked if they could partner with a local
bar for a caterer's [permit] if they wanted to serve alcohol.
MS. OATES answered yes.
4:24:50 PM
CHAIR WOOL asked how [Salmonfest Alaska] currently operates.
MS. OATES offered her belief that they have a nonprofit entity
that qualifies for a special events permit.
4:25:31 PM
REPRESENTATIVE HANNAN inquired as to the process of catering a
music festival with either a restaurant license or a full BDL.
MS. MCCONNELL replied that there is a caterer's permit in
statute that authorizes a beverage dispensary licensee (BDL) to
sell or dispense alcoholic beverages at conventions, picknicks,
social gatherings, sporting events or similar affairs held off
the holders licensed premises. She said a festival could
partner with a BDL to get a caterer's permit to sell at that
particular event.
4:27:31 PM
REPRESENTATIVE HANNAN sought clarification on whether a BDL
would allow a caterer to operate at a music festival. She asked
if there are any geographic restrictions on how close to their
BDL premises they can operate.
MS. MCCONNELL explained that a music festival would fall into
the same category as the convention, picknick, social gathering,
or sporting event, as listed in AS 411.230 (a). She further
noted that there is no geographic proximity requirement.
REPRESENTATIVE HANNAN asked if a bar owner from Kodiak could
sell beer at a festival in Chicken, Alaska.
MS. MCCONNELL answered yes.
4:28:40 PM
REPRESENTATIVE FIELDS addressed the effect of the CS on Arctic
Valley Ski Area and Eagle Crest Ski Area and asked if both
locations will be places where it's appropriate to dispense
alcoholic beverages.
MS. MCCONNELL said yes.
CHAIR WOOL sought clarification on restrictions placed on
restaurant or eating place licenses regarding percentage of
sales.
MS. MCCONNELL stated that a restaurant or eating place license
is in statute at AS 04.11.100 and authorizes the following: a
restaurant or eating place may only to sell beer or wine for
consumption on the licensed premises; must be a bonified
restaurant, as determined by the board; and must provide
evidence upon renewal that gross receipts from the sale of food
upon the licensed premises constitutes no less than 50 percent
of the gross receipts for the entire licensed premises.
CHAIR WOOL established a scenario in which a music festival
sells $100,000 in beer and wine over one weekend. He asked if
they would have to sell $100,000 in food over the rest of the
year to satisfy that regulation.
MS. MCCONNELL referred to AS 04.11.100 (e), and said depending
on what a music festival caterer permit said, she would
interpret it to mean that any receipts from a festival off of
the licensed premises wouldn't count towards the receipts that
are required in 04.11.100 (e).
CHAIR WOOL disclosed that he is longer in the alcohol business,
adding that last year, when he was in the alcohol business, he
did not pay himself.
4:32:34 PM
JEROME HERTEL, Manager, Alaska State Fair, thanked the committee
for the opportunity to testify in support of SB 16, calling it
legislation that creates a fair license category and will
correct some of the shortfalls of Alaska's current statutes that
apply to alcoholic beverages. He added that it will also
correct the problematic situation that the Alaska State Fair has
experienced. This piece of legislation, he said, will provides
much needed clarity and understanding to the fair, as well as to
the Alaska Beverage Control agency that is in charge of the
application of the law. Without this legislation, the Alaska
State Fair is at risk of losing a revenue source that would
jeopardize the sustainability of the fair. Beer and wine sales
are an important part of the experience and are part of a
diversified revenue stream that sustains the operation in bad
years and allows growth in prosperous years. This revenue
stream has allowed the fair to be self-sustaining, one of few in
the nation that isn't subsidized by state government. SB 16
preserves the fair's sustainability and allows them to continue
serving the people of Alaska.
4:35:18 PM
MARNA SANFORD expressed her disappointment with the proposed CS,
which removes the music festival language. She offered her
belief that the "fair bill" was written to impact one entity.
Chickenstock, she said, is a family friendly event that has been
operating for over a decade; however, with different Alcohol and
Marijuana Control Office (AMCO) directors and with different
interpretations of the current statute, they went from being
able to use one type of a permit to not being able to use it.
She noted that it's more complicated than asking the current BDL
holder in chicken to use that license. She concluded by saying
that she does support the version of the bill that came out of
the Senate Finance Committee; however, she does not support the
proposed CS.
4:37:40 PM
REPRESENTATIVE FIELDS asked why it's necessary to have a
separate music festival category rather than contracting a BDL
from a local business.
MS. SANFORD replied that Chickenstock is the "brainchild" of
Chicken Gold Camp & Outpost (CGC). She said they already have a
restaurant license, which they cannot use for a music festival.
She opined that making them pay a BDL holder for the use of his
or her license in order to put on Chickenstock is capitalistic,
especially if there is the ability to create a license that
allows them to own their idea and benefit from it.
4:38:50 PM
REPRESENTATIVE STUTES asked what Chickenstock is.
MS. SANFORD said it is a family friendly music festival at CGC,
an RV park in Chicken, Alaska. She explained that people from
all over the state travel there and camp on site for the
festival, which has been in existence for 12 years.
CHAIR WOOL expressed confusion as to why they can't continue to
use the same BDL, from Bernie Karl at Chena Hot Springs, that
they have using for the last 12 years.
MS. SANFORD said they have been borrowing a BDL from Bernie Karl
since the change in leadership at AAMCO, which interpreted the
law differently. She noted that they do not have a relationship
with the local BDL holder in Chicken, Alaska. She further
stated that borrowing a BDL is not the ideal situation when a
permit could be created that allows them to operate within their
own umbrella.
CHAIR WOOL asked Ms. McConnel for her input on Chickenstock.
4:42:03 PM
MS. MCCONNELL offered her understanding that [Chickenstock] was
being catered under a restaurant caterer's dinner permit, and
that the previous AAMCO director determined it was not the
appropriate permit for that festival, which is why the change
happened in 2016. She further stated that she agrees with that
decision.
4:42:53 PM
REPRESENTATIVE FIELDS said he sees both sides of the problem and
asked how it could be solved without a "sweeping legislative
fix" that is poorly thought out on either end of the spectrum.
MS. MCCONNELL pointed out that they have worked successfully
with a BDL out of Chena Hot Springs for the last three years.
She noted that she is not privileged to the details of that
relationship. She further noted that the board hasn't taken a
position on this issue, and because she works for the board, she
is hesitant to insert an opinion.
REPRESENTATIVE FIELDS deduced that the takeaway is that festival
operators need to shop around for a BDL from someone.
MS. MCCONNELL said that would be consistent with the current
statutes and regulations.
CO-CHAIR WOOL asked how many restaurant or eating place licenses
(REPLs) exist.
MS. MCCONNELL answered 386.
4:44:52 PM
REPRESENTATIVE STORY inquired as to the process for an
establishment to work with a BDL license holder.
MS. MCCONNELL said AAMCO will receive an application for a
caterer's permit from a BDL, which is then evaluated to ensure
that the sale and service of alcohol is compliant with statutes
and regulations.
MS. MCCONNELL, responding to a follow-up question from
Representative Story, said there are approximately six different
permit types in statute that allow the sale of alcohol:
caterer's permit, special events permit, restaurant caterer's
dinner permit, club license caterer's permit, theatre license,
art exhibit permit, and wine auction permit.
REPRESENTATIVE STORY asked which two options are available for
Chickenstock.
CHAIR WOOL offered his understanding that the BDL or food
banquet option would apply.
4:48:37 PM
REPRESENTATIVE FIELDS asked if there is a third option for the
RV owners to establish a nonprofit to allow a festival on their
premises.
MS. MCCONNELL said special events permits are available for
eligible nonprofits that have been active for a period of at
least 2 years before the time of application.
4:49:21 PM
REPRESENTATIVE STUTES asked if there was anything under statute
for an art exhibit.
MS. MCCONNELL replied that in that section of regulations, "art
exhibit event" means a public event involving an art display or
similar activity approved by the Board that is held on a single
date at one or more art galleries, art studios, art stores, art
dealer stores, or museum. She offered her understanding that
this permit was created for First Friday type of events.
4:50:17 PM
REPRESENTATIVE HANNAN asked if a caterer's permit can be issued
with a BDL for any location with no food restrictions; while
catering with a REPL requires the provision of a full meal.
MS. MCCONNELL said yes, they must be providing a banquet or
dinner event.
4:51:05 PM
PAUL THOMAS, Owner, Alaska Cache Liquor, pointed out that Title
4 is trying to par down all the special, one-off licenses. He
opined that the best part of SB 16 is the grandfathering. He
discussed the change to the recreational site license and the
need to be language specific with the addition of skiing.
CHAIR WOOL acknowledged that they put in language to narrow the
focus of what a ski area is.
4:54:37 PM
JACK MANNING, Owner, Duck Creek Market, reminded legislators
that there is another bill that has been in the works for years
now, which makes a big change to Title 4. He voiced his strong
support for the grandfathering, which will take care of a lot of
problems for the licenses that are not getting renewed.
4:55:34 PM
LEEANN THOMAS, Owner, Triangle Bar, said exit plans for business
owners are important because they work hard for their businesses
and want something to be able to sell at the end. She said SB
16 has solved some of those problems and she supports the
grandfathering. She addressed the need for more specific
language when defining a ski area and bowling alley to maintain
a regulated industry. She pointed out that in the proposed CS
the word "activity" is substituting the original word,
"recreation," which she said she does not like.
CHAIR WOOL clarified that some are delineated events and others
are delineated activities, like skiing and bowling.
MS. THOMAS expressed further concern with the earlier start time
for entertainment at REPLs.
5:00:49 PM
JERAD CURE, Owner, The Narrows, expressed his concern with
changes to the recreational site license. He said that "loose"
language allowing anyone with recreational activities to apply
for a liquor license will create more issues than it solves. He
addressed the grandfathering and said he agrees with saving the
license of businesses that have been in operation for many
years. Nonetheless, he opined that not all bowling alleys
should be allowed to have a liquor license. He expressed
further concern with "loose" language regarding the fair license
and which activities constitute a fair. He pointed out that he
relies on catering during the slower months to provide
additional revenue for his business and to keep his staff
employed. He offered his belief that allowing anyone throwing a
concert to apply for these permits would be a nightmare for an
already overwhelmed AAMCO permit staff and would be a detriment
to the health and safety of the consumer.
5:02:53 PM
REPRESENTATIVE HANNAN noted that Mr. Cure expressed some
expertise in using his BDL to be a caterer offsite. She asked
how far from his licensed premises he would be willing to cater.
MR. CURE replied that he uses his catering permit anywhere in
Juneau.
MR. CURE, responding to a follow-up question from Representative
Hannan, said that there are probably plenty of BDLs closer to
[Chicken, Alaska] that would be willing to take on that job. He
offered that the issue isn't getting the permit, it's that they
want the money from the alcohol. To that end, he said that he
paid $250,000 to make money off alcohol and that other
businesses can do the same or find a business to contract with.
5:04:31 PM
GEORGE TIPTON, Ketchikan Cabaret, Hotel, and Restaurant
Retailers Association, stated that he agrees with some of the
changes in the proposed CS. He noted that adding on additional
license types continues to do the same thing as what Title 4 is
trying to restrict. He said that by adding on, this bill
creates short term, impulsive solutions for license and permit
types. Overall, he said the CS is a step in the right
direction.
5:07:21 PM
MACEY SHAPIRO, Hatcher Alpine Xperience, announced that they are
building a ski area in Hatcher Pass, Alaska. While they build
their business plan, he said it's important to find as many
revenue streams as possible. One of which, is a beer and wine
license. He pointed out that in the working draft, ski and
snowboard areas would specifically be included under
recreational site licenses and Hatcher would like to solicit an
endorsement of this category of beer and wine licenses for ski
and snowboard areas in the state. In return, he said, Hatcher
pledges responsible management of the serving of any alcoholic
beverage to the highest standards, and reciprocally, the state
would be providing an avenue to assist families and youth into a
sport that promotes a healthy lifestyle.
CHAIR WOOL closed public testimony.
5:09:31 PM
SENATOR PETER MICCICHE, Alaska State Legislature, as prime
sponsor of SB 16, addressed the CS and said he supports nearly
all the changes. He said this bill was designed to protect
business owners that have been operating for years. He opined
that "fair" is well defined and thanked the committee for
leaving in the grandfathering. Renewal and transfer of the
licenses are two important parts of the grandfathering, he said.
He noted the change to a period of five years on the fair
license, which keeps brand new fairs from popping up. He turned
attention to Chickenstock and said it has not been as easy as it
seems. The license that they have been borrowing is hundreds of
miles away and has been a challenge. He said there are creative
options that could be considered, such as extending the
circumference for an REPL to serve one event per year up to x
days that has been in existence for 10 years or more. He
emphasized that this bill must pass to save a score of
businesses that are at risk right now.
CHAIR WOOL pointed out that with nearly 400 REPLs in existence,
allowing them to put on music festivals could upset the balance.
SENATOR MICCICHE clarified that he suggested a stipulation of at
least 10 years of existence so that 400 music festivals could
not pop up around the state.
REPRESENTATIVE STUTES voiced her appreciation for the idea of
REPLs making an accommodation for the event in Chicken.
5:14:43 PM
REPRESENTATIVE FIELDS agreed that there should be something done
to accommodate that festival.
5:14:56 PM
REPRESENTATIVE STORY referenced page 2 of bill and asked for the
rationale behind the change from 3 p.m. to 11 a.m.
CHAIR WOOL said it was for a local business that wanted to have
music at lunch. Nonetheless, he said he agrees that changing
laws for one specific business could get complicated and lead to
150 different types of licenses, for example.
5:15:54 PM
REPRESENTATIVE HANNAN asked how many of the REPLs are seasonal
locations only.
MS. MCCONNELL answered 52 of the 386 REPLs are seasonal.
5:17:22 PM
CHAIR WOOL announced that SB 16 was held over.
5:18:03 PM
The committee took a brief at-ease.
SB 83-TELECOMMUNICATIONS REGULATION/EXEMPTIONS
5:22:43 PM
CHAIR WOOL announced that the next order of business would be
SENATE BILL NO. 83, "An Act relating to the Regulatory
Commission of Alaska; relating to the public utility regulatory
cost charge; relating to the regulation of telecommunications;
relating to exemptions, charges, and rates applicable to
telecommunications utilities; relating to regulation of
telephone services; and relating to alternate operator
services."
5:23:45 PM
The committee took a brief at-ease.
5:23:48 PM
BOB PICKETT, Commissioner, Regulatory Commission of Alaska,
addressed the staff memo [included in the committee packet] and
pointed out that on February 6, 2019 on a vote of 4-1, the
commissioners adamantly rejected that language and believed it
was inappropriate for a state regulatory agency to "thumb its
nose" at the legislature by implying it would undermine a piece
of legislation if it passes. He further stated that the Alaska
Universal Service Fund (AUSF) is not part of SB 83.
CHAIR WOOL interjected to ask for clarification on what the AUSF
is and how it functions.
MR. PICKET said the fund is in statute dating back to the early
1990s. He said it was put there to allow the Regulatory
Commission of Alaska (RCA) permissive ability to create a fund
that ensured intra-state long-distance service. He noted that
it's essentially an "assessment on people's telephone bills"
that was less than 1 percent.
CHAIR WOOL asked if the AUSF is a tax that's applied to every
landline bill throughout state.
MR. PICKETT said yes, adding that wireless and voice-over
internet protocols are funding sources as well; nonetheless, the
contribution base shrank, and the tax rose to 3 percent with a
projection of growth up to 25 percent. In an attempt to cap
that growth, he said, they added a sunset provision to end the
fund on June 30, 2023 and committed to complete a comprehensive
review of the program no later than June 30, 2021. At the peak,
the whole AUSF program was approximately 34 million per year;
however, with current caps at 10 percent it will be less than
half of that.
5:33:15 PM
CHAIR WOOL asked why the fund is decreasing.
MR. PICKETT explained that the majority of a cellphone bill is
tied to data. The portion assigned to voice is small,
approximately less than 20 percent of the bill.
CHAIR WOOL clarified that the only taxable portion of a
cellphone bill is the part that's attributed to voice.
MR. PICKETT affirmed that.
CHAIR WOOL asked if sunsetting the AUSF program is the response
to higher taxes due to the decreasing fund.
MR. PICKETT said no, step one was to cap [the tax] at 10
percent, which went into effect January 1, 2019. He added that
the standalone category of Carrier of Last Resort (COLR) support
was replaced with essential network support.
CHAIR WOOL asked how COLR relates to AUSF.
MR. PICKETT said there was a specific category in which direct
funds were paid under the COLR category. He added that it
doesn't exist anymore.
5:36:48 PM
CHAIR WOOL, in attempt to understand Mr. Pickett, asked if this
fund partially subsidizes the industry to maintain COLR.
MR. PICKETT said, "not anymore," noting that it ended on January
1, 2019.
CHAIR WOOL established a scenario in which a phone line is run
out to Chicken, Alaska, which costs the telecom company a lot of
money. He asked if that company would receive assistance to
offset the costs, since it wouldn't be recouped from the 25
people that live in Chicken.
MR. PICKETT said the reality is that the company wouldn't
receive specific COLR funding, adding that they would receive a
declining amount of network support because as the contribution
shrinks the cap will be applied.
5:38:30 PM
MR. PICKETT said he got the impression that people think SB 83
would take away cost of service ratemaking ability that the
commission has in the industry; however, cost of service
ratemaking has been nonexistent for years. He said the
commission has no jurisdiction over wireless rates or broadband
rates, let alone any packages for videos.
CHAIR WOOL questioned whether SB 83 would remove the
commission's jurisdiction over landline.
MR. PICKETT said not totally. He noted that they still have
certificate power, ETC certification power with the FCC.
CHAIR WOOL sought clarification on certification.
MR. PICKETT explained that there is an initial determination as
to whether they are eligible for an ETC designation. In
addition to that, they have the certificates of public
convenience and necessity for which they must show they are fit,
willing and able to provide the service they are applying for.
He noted that walking away from the certificate requires a
proceeding as well.
5:41:08 PM
CHAIR WOOL questioned whether SB 83 would remove landlines from
the regulatory purview of the RCA.
MR. PICKETT said that's not a correct assessment.
CHAIR WOOL asked what SB 83 does in relation to landlines.
MR. PICKETT explained that it cleans up filings that are not
actionable. He offered his belief that there should be a
purpose other than collecting information when filing something.
He said that is one of the frustrations that the industry has,
whereas the co-ops can deregulate with the vote of their
membership.
CHAIR WOOL asked if co-ops pay the AUSF.
MR. PICKETT said yes. He reminded the committee that the AUSF
is not to be confused with the regulatory cost charges (RCC).
He further noted that the current statutory construct is
essentially unfair because if co-ops deregulate, they do not pay
regulatory cost charges anymore, even though they still have
proceedings that use up the RCA's staff time, resources, and
legal expenses. This bill, he said, makes all certificated
telecom companies pay into it.
CHAIR WOOL deduced that this bill would make co-ops pay the RCC.
MR. PICKETT replied yes, a small amount.
5:44:56 PM
REPRESENTATIVE FIELDS referencing a letter from Stephen McAlpine
that generally endorses the concept of SB 83, asked about the
concerns that Mr. McAlpine references.
MR. PICKETT said he shared some of those concerns, adding that
they still exist today with the existing statutory construct.
He said that with the changes in the federal subsidy stream,
these carriers have been hit with substantial reductions while
still having to maintain performance standards. He suggested
that a coherent state telecom policy direct AUSF funds and
appropriately apply them
REPRESENTATIVE FIELDS asked if SB 83 would allow carriers to
unilaterally cut off service to small communities with the
changes to COLR.
MR. PICKETT said they would have to file with the RCA to abandon
service or abandon their certificate. Then it's up to the
commission to approve or deny.
REPRESENTATIVE FIELDS asked what the COLR language in SB 83 does
if they still have to come before RCA.
MR. PICKETT said it prevents the RCA from imposing unfunded COLR
responsibilities that are over and above their ability to be fit
willing and able to provide the service they signed up for or to
stay in compliance with the federal ETC regulations.
REPRESENTATIVE STUTES asked why most co-ops support SB 83.
MR. PICKETT offered his belief that the co-ops realize if this
does not happen, the RCA will start billing them for
proceedings.
5:51:05 PM
REPRESENTATIVE STUTES said it sounds like passage of this bill
could prevent a huge increase in the amount of people's phone
bill.
MR. PICKETT said it depends on the size and the nature of the
proceeding. He added that they have already seen a decline since
the AUSF reform that went into effect January 1, 2019 that
dropped the surcharge from 20 percent to 10 percent.
5:52:07 PM
REPRESENTATIVE HANNAN sought clarification on whether the co-ops
are charged when they come before the RCA board.
MR. PICKETT said they are not charged. Essentially, he
explained, the companies that are paying the RCCs are funding
the commission's common carrier staff and section, as well as
all the associated staffing positions and the administrative
overhead.
MR. PICKETT, responding to a follow-up question from
Representative Hannan, said as long as the co-ops are
deregulated, they do not have to pay RCCs.
REPRESENTATIVE HANNAN asked what RCCs are.
MR. PICKETT answered regulatory cost charges, which funds the
RCA. He added that the RCA doesn't receive general funds.
REPRESENTATIVE HANNAN asked why co-ops were allowed to
deregulate several years ago.
MR. PICKETT stated that the co-ops deregulated under state
statute. He explained that it's subject to a vote of the co-op
members and approval from their respective governing boards.
Nonetheless, the statute very clearly gives them that ability.
5:54:15 PM
CHAIR WOOL offered his understanding that if a co-op deregulates
then the RCA can bill them for any interactions.
MR. PICKETT said the bill must be cost-based; however, the RCA
has not done that.
CHAIR WOOL opined that if a co-op votes to be deregulated and
therefore not pay RCCs, it seems fair that the RCA asses the
charges they have incurred and send them a bill. He said it is
the tradeoff for the co-op being deregulated.
MR. PICKETT explained that part of the challenge is assessing
the administrative efficiency because there is an administrative
cost to the proceedings. He continued to say that because the
RCCs are so small, it seems to be more effective for what is
included in SB 83.
CHAIR WOOL asked for clarification on what is more effective.
MR. PICKETT said the way they are proposing to spread the RCCs
over all telecom companies.
CHAIR WOOL concluded that SB 83 would take RCCs and apply them
to every telecom company, regulated or nonregulated.
MR. PICKETT said that is correct.
CHAIR WOOL gathered that under SB 83, a telecom co-op in the
Matsu that didn't charge RCCs would now have to.
MR. PICKETT affirmed that.
CHAIR WOOL turned attention to public testimony for SB 83.
DAVID GUTTENBERG, said that SB 83 is a deregulation bill, adding
that the ramifications are not yet understood. He opined that
with telecom regulations, it's important to read between the
lines and often what's being inferred is significant. He
continued by saying that it's important to pay attention to the
way in which the AUSF money is spent. He said there is no
accountability for it and it's not part of this bill, but even
so, he said that the RCA will continue to allocate money for
whatever formula they want, adding that it's important to look
at how that will impact the industry. He said they are not
putting in new hard lines so almost all they money is going
towards internet expansion and nobody knows what that is. He
said it is behind a corporate vail. He added that the nature of
telecom is changing. He pointed out that the late U.S. Senator
Ted Stevens set up the AUSF. He emphasized that the reason
Alaska has its own little version of that is to take care of the
small, rural communities, like Healy Lake. He encouraged the
committee members to fully understand this bill and what the
ramifications will be before passing it out of committee. He
addressed the staff notes [memorandum] and said they raise
serious concerns. One of which, is that the RCA could sit down
with the industry and streamline all the regulatory issues
together. He said he questions the public purpose of the bill.
6:04:36 PM
MR. PICKETT said he respects Mr. Guttenberg's comments. He
asserted that the RCA should be involved with the comprehensive
review of the AUSF now.
6:06:09 PM
REPRESENTATIVE HANNAN asked how long the comprehensive study of
the AUSF will take.
MR. PICKETT said it's in regulation that the RCA will commence a
comprehensive review of the AUSF by no later than June 30, 2021.
He added that it will take two years of information gathering
and working with all impacted parties before being able to start
the rulemaking if there is any intention to keep the fund going.
6:07:04 PM
REPRESENTATIVE HANNAN asked how SB 83 affects that.
MR. PICKETT said it doesn't.
REPRESENTATIVE HANNAN asked if the AUSF review will commence in
2021 to be completed by 2023, regardless of whether SB 83 is
passed or not.
MR. PICKETT said SB 83 has nothing to do with the AUSF or the
study related to it.
6:08:06 PM
CHAIR WOOL said the passage if this bill would take the RCA out
of landline ratemaking business; however, there are still
federal laws that could limit how much carriers could charge
regarding rates. He asked if that is correct.
MR. PICKETT said that the RCA using cost of service ratemaking
for landlines is a theoretical construct.
CHAIR WOOL asked about federal laws governing how much a telecom
company can charge for landlines rates.
MR. PICKETT said he does not know.
6:12:47 PM
CHRISTINE OCONNOR, Alaska Telecom Association, said she is
unaware of any limits on business rates.
CHAIR WOOL asked if a school in Fort Yukon, Alaska would have to
operate under any rate caps because they are nonresidential.
MS. OCONNOR said she believed that to be correct, reiterating
that she is unaware of any federal caps on business rates.
CHAIR WOOL questioned whether they would have any competition in
that if they were the only carrier.
MS. OCONNOR acknowledged that they would not have any
competition.
6:13:31 PM
REPRESENTATIVE TALERICO observed that there appears to be some
redundancy with federal government regarding some of the
services that will be eliminated. He asked if that is a correct
assumption.
MR. PICKETT said he would not characterize it as a redundancy.
6:15:02 PM
CHAIR WOOL closed public testimony and announced that SB 83 was
held over.
HB 97-TELEHEALTH: PHYSICIAN ASSISTANTS; DRUGS
6:15:45 PM
CHAIR WOOL announced that the final order of business would be
HOUSE BILL NO. 97, "An Act relating to the prescription of drugs
by a physician assistant without physical examination."
6:16:10 PM
The committee took a brief at-ease.
6:16:14 PM
REPRESENTATIVE JONATHAN KREISS-TOMKINS, as prime sponsor of HB
97, explained that the bill is companion legislation to a bill
in the Senate. He said it is effectively a "fix-it" bill, as
there was an inadvertent omission from the legislatures
telehealth bill that left out physicians' assistants (PAs). He
stated that HB 97 fixes that.
REPRESENTATIVE HANNAN sought clarification about the change on
page 3, line 2, from "person" to "patient."
6:18:55 PM
REID HARRIS, Staff, Representative Jonathan Kreiss-Tomkins,
Alaska State Legislature, on behalf of Representative Kreiss-
Tomkins, prime sponsor, explained that "person" was the original
language that was then changed to "patient" to reflect a change
that was made in the Senate bill, SB 44. It was then realized
that "patient" is not defined in statute and therefore, changed
back to "person."
6:19:49 PM
REPRESENTATIVE HANNAN questioned whether it has anything to do
with the oversite of PAs being left out of the original
telehealth medical directive.
MR. HARRIS answered no. He explained that the entirety of the
bill deals with PAs being left out of the initial medical
directive, which was from SB 44 in 2016. The "person" "patient"
change was more of a drafting mistake, he said.
The committee took a brief at-ease.
6:21:25 PM
REPRESENTATIVE STUTES moved to report CSHB 97, Version LS0695\S,
Fisher, 4/23/19, out of committee with individual
recommendations and the accompanying fiscal notes.
REPRESENTATIVE REVAK objected and subsequently removed his
objection. There being no further objection, CSHB 97 was moved
from the House Labor and Commerce Standing Committee.
6:22:54 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
6:22 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 16.Sponsor.pdf |
HL&C 5/8/2019 3:15:00 PM |
SB 16 |
| SB 16.Bill Version G.pdf |
HL&C 5/8/2019 3:15:00 PM |
SB 16 |
| SB 16.Bill Version O.pdf |
HL&C 5/8/2019 3:15:00 PM |
SB 16 |
| SB 16.Summary of Changes to Version G.pdf |
HL&C 5/8/2019 3:15:00 PM |
SB 16 |
| SB 16.Sectional.pdf |
HL&C 5/8/2019 3:15:00 PM |
SB 16 |
| SB 16.Fiscal REV.PDF |
HL&C 5/8/2019 3:15:00 PM |
SB 16 |
| SB 16.Fiscal DCCED AMCO.PDF |
HL&C 5/8/2019 3:15:00 PM |
SB 16 |
| SB 16.Backup Supporting Doc AMCO.pdf |
HL&C 5/8/2019 3:15:00 PM |
SB 16 |
| SB 16.Backup Support State Fair.pdf |
HL&C 5/8/2019 3:15:00 PM |
SB 16 |
| SB 16.Backup Support Price.pdf |
HL&C 5/8/2019 3:15:00 PM |
SB 16 |
| SB 16.Backup Support PAC.pdf |
HL&C 5/8/2019 3:15:00 PM |
SB 16 |
| SB 16.Backup Support KTVA Article.pdf |
HL&C 5/8/2019 3:15:00 PM |
SB 16 |
| SB 16.Backup Support KTUU.pdf |
HL&C 5/8/2019 3:15:00 PM |
SB 16 |
| SB 16.Backup Support KTOO2.pdf |
HL&C 5/8/2019 3:15:00 PM |
SB 16 |
| SB 16.Backup Support KTOO.pdf |
HL&C 5/8/2019 3:15:00 PM |
SB 16 |
| SB 16.Backup Support KINY Article.pdf |
HL&C 5/8/2019 3:15:00 PM |
SB 16 |
| SB 16.Backup Support Herrington.pdf |
HL&C 5/8/2019 3:15:00 PM |
SB 16 |
| SB 16.Backup Support Gilmore.pdf |
HL&C 5/8/2019 3:15:00 PM |
SB 16 |
| SB 16.Backup Support Frontiersman Article.pdf |
HL&C 5/8/2019 3:15:00 PM |
SB 16 |
| SB 16.Backup Support Eaglecrest.pdf |
HL&C 5/8/2019 3:15:00 PM |
SB 16 |
| SB 16.Backup Support CER STAR.pdf |
HL&C 5/8/2019 3:15:00 PM |
SB 16 |
| SB 16.Backup Support CER STAR2.pdf |
HL&C 5/8/2019 3:15:00 PM |
SB 16 |
| SB 16.Backup Support ATA.pdf |
HL&C 5/8/2019 3:15:00 PM |
SB 16 |
| SB 16.Backup Support AP Article.pdf |
HL&C 5/8/2019 3:15:00 PM |
SB 16 |
| SB 16.Backup Support Alaska Club.pdf |
HL&C 5/8/2019 3:15:00 PM |
SB 16 |
| SB 16.Backup Support ADN Article3.pdf |
HL&C 5/8/2019 3:15:00 PM |
SB 16 |
| SB 16.Backup Support ADN Article2.pdf |
HL&C 5/8/2019 3:15:00 PM |
SB 16 |
| SB 16.Backup Support ADN Article.pdf |
HL&C 5/8/2019 3:15:00 PM |
SB 16 |
| SB 16.Backup Letter from CHARR.pdf |
HL&C 5/8/2019 3:15:00 PM |
SB 16 |
| SB 16.Backup Letter ATA2.pdf |
HL&C 5/8/2019 3:15:00 PM |
SB 16 |
| SB 16.Backup Leg Audit.pdf |
HL&C 5/8/2019 3:15:00 PM |
SB 16 |
| SB 16.Backup Leg Audit 2014.pdf |
HL&C 5/8/2019 3:15:00 PM |
SB 16 |