01/22/2024 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB143 | |
| HB115 | |
| HB192 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 115 | TELECONFERENCED | |
| *+ | HB 192 | TELECONFERENCED | |
| += | HB 143 | TELECONFERENCED | |
| += | HB 159 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
January 22, 2024
3:15 p.m.
MEMBERS PRESENT
Representative Jesse Sumner, Chair
Representative Justin Ruffridge, Vice Chair
Representative Mike Prax
Representative Dan Saddler
Representative Stanley Wright
Representative Ashley Carrick
Representative Zack Fields
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HOUSE BILL NO. 143
"An Act relating to the Department of Environmental
Conservation; relating to advanced recycling and advanced
recycling facilities; relating to waste; and providing for an
effective date."
- MOVED CSHB 143(RES) OUT OF COMMITTEE
HOUSE BILL NO. 115
"An Act relating to the practice of naturopathy; establishing
the Naturopathy Advisory Board; relating to the licensure of
naturopaths; relating to disciplinary sanctions for naturopaths;
relating to the Department of Commerce, Community, and Economic
Development; and providing for an effective date."
- MOVED CSHB 115(L&C) OUT OF COMMITTEE
HOUSE BILL NO. 192
"An Act relating to curbside pickup of alcoholic beverages sold
by a package store; relating to consumer delivery licenses; and
providing for an effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 143
SHORT TITLE: ADVANCED RECYCLING AND FACILITIES
SPONSOR(s): RESOURCES
03/27/23 (H) READ THE FIRST TIME - REFERRALS
03/27/23 (H) RES, L&C
04/05/23 (H) RES AT 1:00 PM BARNES 124
04/05/23 (H) -- MEETING CANCELED --
04/12/23 (H) RES AT 1:00 PM BARNES 124
04/12/23 (H) Heard & Held
04/12/23 (H) MINUTE(RES)
04/19/23 (H) RES AT 1:00 PM BARNES 124
04/19/23 (H) -- MEETING CANCELED --
04/21/23 (H) RES AT 1:00 PM BARNES 124
04/21/23 (H) Heard & Held
04/21/23 (H) MINUTE(RES)
04/26/23 (H) RES AT 1:00 PM BARNES 124
04/26/23 (H) Moved CSHB 143(RES) Out of Committee
04/26/23 (H) MINUTE(RES)
04/28/23 (H) RES RPT CS(RES) 5DP 2DNP 1AM
04/28/23 (H) DP: MCCABE, WRIGHT, RAUSCHER, SADDLER,
MCKAY
04/28/23 (H) DNP: MEARS, DIBERT
04/28/23 (H) AM: ARMSTRONG
05/08/23 (H) L&C AT 3:15 PM BARNES 124
05/08/23 (H) Heard & Held
05/08/23 (H) MINUTE(L&C)
01/22/24 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 115
SHORT TITLE: NATUROPATHS: LICENSING; PRACTICE
SPONSOR(s): PRAX
03/17/23 (H) READ THE FIRST TIME - REFERRALS
03/17/23 (H) HSS, JUD, L&C
03/25/23 (H) HSS AT 3:00 PM DAVIS 106
03/25/23 (H) Heard & Held
03/25/23 (H) MINUTE(HSS)
04/06/23 (H) HSS AT 3:00 PM DAVIS 106
04/06/23 (H) Heard & Held
04/06/23 (H) MINUTE(HSS)
04/11/23 (H) HSS AT 3:00 PM DAVIS 106
04/11/23 (H) Heard & Held
04/11/23 (H) MINUTE(HSS)
04/13/23 (H) HSS AT 3:00 PM DAVIS 106
04/13/23 (H) <Bill Hearing Canceled>
04/18/23 (H) HSS AT 3:00 PM DAVIS 106
04/18/23 (H) Moved HB 115 Out of Committee
04/18/23 (H) MINUTE(HSS)
04/19/23 (H) JUD REFERRAL REMOVED
04/19/23 (H) BILL REPRINTED
04/20/23 (H) HSS RPT 1DP 1NR 5AM
04/20/23 (H) DP: PRAX
04/20/23 (H) NR: MCCORMICK
04/20/23 (H) AM: FIELDS, SUMNER, RUFFRIDGE, SADDLER,
MINA
12/05/23 (H) L&C AT 2:00 PM ANCH LIO DENALI Rm
12/05/23 (H) Heard & Held
12/05/23 (H) MINUTE(L&C)
01/22/24 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 192
SHORT TITLE: DELIVERY/PICK UP OF ALCOHOL; LICENSING
SPONSOR(s): SUMNER
05/03/23 (H) READ THE FIRST TIME - REFERRALS
05/03/23 (H) L&C, FIN
01/22/24 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
TREVOR JEPSEN, Staff
Representative Tom McKay
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented a PowerPoint presentation on CSHB
143 (RES) on behalf of the sponsor, the House Resources Standing
Committee, on which Representative McKay serves as chair.
CRAIG COOKSON, Senior Director
Plastics Sustainability
American Chemistry Council
Washington, D.C.
POSITION STATEMENT: Answered questions during the hearing on
CSHB 143 (RES).
SYLVAN ROBB, Director of Division of Corporations, Business, and
Professional Licensing
Department of Commerce, Community, and Economic Development
Juneau, Alaska
POSITION STATEMENT: Answered committee questions regarding HB
115.
BRUCE CAMPBELL, representing self
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of HB 115.
WAYNE ADERHOLD, representing self
Homer, Alaska
POSITION STATEMENT: Testified in support of HB 115.
MARY ANNE FOLAND, MD, representing self
Alaska State Medical Association
Anchorage, Alaska
POSITION STATEMENT: Spoke in opposition to HB 115.
ANNETTE O'CONNELL, representing self
Nikiski, Alaska
POSITION STATEMENT: Testified in support of HB 115.
PAM VENTGEN, Executive Director
Alaska State Medical Association
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to HB 115.
LISA MARTSOLF, representing self
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of HB 115.
CHRISTINE SAGIN, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 115.
SARENA HACKENMILLER, Staff
Representative Sumner
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented an overview, sponsor statement,
and sectional analysis of HB 192 on behalf of Representative
Sumner, prime sponsor.
ACTION NARRATIVE
3:15:14 PM
CHAIR JESSE SUMNER called the House Labor and Commerce Standing
Committee meeting to order at 3:15 p.m.
HB 143-ADVANCED RECYCLING AND FACILITIES
3:16:00 PM
CHAIR SUMNER announced the first order of business would be
HOUSE BILL NO. 143, "An Act relating to the Department of
Environmental Conservation; relating to advanced recycling and
advanced recycling facilities; relating to waste; and providing
for an effective date." [Before the committee was CSHB
143(RES).]
3:16:20 PM
TREVOR JEPSEN, Staff, Representative Tom McKay, Alaska State
Legislature, on behalf of the sponsor, the House Resources
Standing Committee, on which Representative McKay serves as
chair, presented a refresher PowerPoint presentation on CSHB
143(RES) which puts into statute a regulatory framework for
advanced recycling to come to Alaska. He presented slides 2 and
3, "What is 'Advanced Recycling?'" He defined advanced
recycling as chemical recycling which converts post-use plastics
that currently cannot be recycled mechanically into hydrocarbon-
based products. Twenty-four other states have passed similar
legislation to HB 143, leading to regulatory stability and
billions of dollars going into the domestic advanced recycling
industry. This technology can convert discarded plastics into
valuable products. This new industry is not dependent on
government subsidies and is meant to complement not replace
mechanical or traditional recycling.
MR. JEPSEN moved to slides 4 and 5, "Advanced Recycling
Processes" and "Potential Economic Benefits," which briefly
defined the manufacturing components of gasification, pyrolysis,
and solvolysis and also described the economic benefits in
Alaska.
3:20:00 PM
REPRESENTATIVE SADDLER stated he felt the numbers on slide 5
might be overstating the amount of material produced in Alaska.
MR. JEPSEN described a weighing factor to account for the amount
of recycling that Alaska does compared to other states. He
deferred to Craig Cookson.
3:20:45 PM
CRAIG COOKSON, Senior Director, Plastics Sustainability,
American Chemistry Council, explained that the numbers are not
based on manufacturing but on waste generation. People still
drink milk and eat snack mix as well as using toothpaste and
hand cream. In addition, things are shipped to Alaska in
plastic. It's based on the generation of plastics in the
economy.
3:22:28 PM
REPRESENTATIVE FIELDS asked whether this bill was helpful for
the higher numbered plastics that are not being recycled as
opposed to the "1s" and "2s" that are to be recycled.
MR. JEPSEN agreed that the 1s and 2s are the traditional
mechanical recycled plastics and the 3s to 7s can be done with
advanced recycling.
3:23:10 PM
MR. COOKSON verified that the advanced recycling technology
complements current plastic recycling. Alaska is similar to
other states in recycling PET bottles, but all over the country,
the tubes, pouches, and film wraps are not being effectively
recycled.
3:23:50 PM
REPRESENTATIVE FIELDS explained that in Anchorage there is a
single waste stream where all plastics are mixed together. He
asked whether there are states where there is a meaningful rate
of recycling for 3 through 7 plastics and whether it requires
pre-sorting by consumers.
MR. JEPSEN pointed out that under HB 143, plastic is not defined
as solid waste because there is a sorting, cleaning, and
packaging process in route to the advanced recycling facility.
REPRESENTATIVE FIELDS asked Mr. Cookson for clarification
regarding possible changes in air and water regulations. He
requested information on why the chemistry council wants a
different regulatory structure from the one covering mechanical
recycling.
3:25:08 PM
MR. COOKSON responded that current waste and recycling laws
effectively regulate facilities that either comingle or separate
plastics. It's a different regulation for what advanced
recycling facility does because they are actually small chemical
manufacturing plants. They take plastics that are homogeneous
raw materials, heat them in the absence of oxygen until they
melt and then heat them until they turn to gas vapors. The
vapors are cooled and condensed down until it becomes a liquid
feed stock that is kind of an oil equivalent. That feed stock
is used in the production of new plastics and chemicals again.
To best protect Alaska's health and environment, manufacturing
regulations are the best fit because the activities are much
different from a solid waste facility.
3:26:30 PM
REPRESENTATIVE RUFFRIDGE questioned the economic benefits and
whether these were export products or for Alaska production.
MR. COOKSON replied that this would be an export product.
3:27:16 PM
MR. JEPSEN concluded his presentation by explaining that
advanced recycling is a low greenhouse gas process which can be
used to create petroleum-based products from discarded plastics.
The technology greatly increases the percentage of plastics that
can be recycled, decreases landfill space taken up by plastics,
and provides economic benefits to Alaska. The precursor to
those benefits is passing CSHB 143(RES).
3:27:53 PM
CHAIR SUMNER opened public testimony on CSHB 143(RES). After
ascertaining there was no one who wished to testify, he closed
public testimony.
3:28:25 PM
REPRESENTATIVE RUFFRIDGE moved to report CSHB 143(RES) out of
committee with individual recommendations and the accompanying
fiscal notes. There being no objection, CSHB 143(RES) was
reported out of the House Labor and Commerce Standing Committee.
3:28:47 PM
The committee took an at-ease from 3:28 p.m. to 3:33 p.m.
HB 115-NATUROPATHS: LICENSING; PRACTICE
3:28:47 PM
[Due to technical difficulties, some audio following the call
back to order was not captured on the recording but information
from the secretary's log notes was provided.]
CHAIR SUMNER announced that the next order of business would be
HOUSE BILL NO. 115, "An Act relating to the practice of
naturopathy; establishing the Naturopathy Advisory Board;
relating to the licensure of naturopaths; relating to
disciplinary sanctions for naturopaths; relating to the
Department of Commerce, Community, and Economic Development; and
providing for an effective date."
REPRESENTATIVE RUFFRIDGE moved to adopt Amendment 1 to HB 115,
labeled 33-LS0631\A.2, Bergarud, 4/10/23, which read as follows:
Page 1, line 1:
Delete "Advisory"
Page 2, line 16:
Delete "Advisory"
Delete "Advisory"
REPRESENTATIVE PRAX objected for purposes of discussion.
3:33:22 PM
REPRESENTATIVE RUFFRIDGE spoke to Amendment 1. He explained
that a full-fledged board would better suit the ability of
naturopaths to function in line with other medical providers in
the state. The amendment simply would remove the word
"advisory" and would propose establishing a full functioning
board for naturopaths.
3:33:59 PM
CHAIR SUMNER noted that the Director of Division of
Corporations, Business, and Professional Licensing, Sylvan Robb,
was available to answer questions.
3:34:16 PM
REPRESENTATIVE CARRICK asked whether Ms. Sylvan could enumerate
some of the differences between an advisory and a full board.
She queried Representative Ruffridge regarding whether there are
any professional boards in the state of Alaska that are of this
type that are advisory right now and where this board would fall
with this amendment in relation to other boards of this type.
3:34:59 PM
REPRESENTATIVE RUFFRIDGE deferred to Director Robb but commented
that advisory boards are within her capacity to manage.
However, as far as medical provider status, there is no advisory
board that allows full prescriptive authority.
3:35:28 PM
SYLVAN ROBB, Director of Division of Corporations, Business, and
Professional Licensing, Department of Commerce, Community, and
Economic Development, in answer to Representative Carrick's
question stated that her division currently did not have any
advisory boards in the division.
REPRESENTATIVE CARRICK requested that Ms. Robb enumerate the
differences between an advisory board and a full board in terms
of authority that is granted.
MS. ROBB explained that the division has 21 regulatory boards
invested with the powers that are given to them in statute. She
provided examples of the powers granted by statute. An advisory
board on the other hand, is less of a policy making body and
more of an advisory body.
3:36:59 PM
REPRESENTATIVE SADDLER pointed out the amendment proposes
changing the name, but there apparently are no other changes in
function, so it is unclear what changing the name actually
accomplishes.
MS. ROBB deferred to the maker of the amendment.
3:37:47 PM
REPRESENTATIVE PRAX asked whether the department has any opinion
or recommendation regarding the advisability of a policy making
board as opposed to an advisory board. He questioned whether
the department can take on the regulatory power of the board.
3:38:22 PM
MS. ROBB explained that currently there are 21 different
programs covering approximately 80 professions where there is no
board, and the division provides regulatory oversight. This
would be similar, but it would be an enhanced situation because
there would be a formal advisory board. She discussed concerns
with a board in a small profession. In 2023 there were only 56
licensed naturopaths in Alaska. The expenses incurred by the
board would fall on the members of the profession. She
commented that although Alaska is a large area, it is like a
small town where people in a particular profession know each
other. She gave an example of a board of similar size where the
members "conflicted out" of a disciplinary matter because they
all knew each other.
REPRESENTATIVE PRAX asked whether decisions get delayed because
of lack of a quorum.
MS. ROBB explained that some boards have struggled to achieve a
quorum, so business is delayed. Licensing and discipline
matters are similarly delayed.
REPRESENTATIVE PRAX questioned whether that would generally be
weeks or months.
MS. ROBB stated that the frequency depends on the composition of
the board and changes in the board over time. A meeting can't
be scheduled for the next day because of the Open Meetings Act.
REPRESENTATIVE PRAX asked whether the department is accountable
to the governor, an elected official, and to the legislature, a
group of elected officials, whereas boards are less accountable.
MS. ROBB replied in the affirmative.
3:42:07 PM
REPRESENTATIVE RUFFRIDGE asked whether there are any professions
with prescriptive authority in the state that do not have a
regulatory board.
MS. ROBB said there are none.
3:42:44 PM
REPRESENTATIVE SADDLER explained that he was still not sure that
changing the name from advisory board to board imparts any
regulatory authority and at this point seems like window
dressing.
REPRESENTATIVE RUFFRIDGE stated that there were big differences
between an advisory board and a naturopathy board. Moving
forward, depending on the wishes of the committee, they could
clean up language in section B regarding the commissioner having
oversight.
REPRESENTATIVE SADDLER asked Ms. Robb whether there was a
definition of board versus advisory board. He mentioned that he
did not see a change in the function of the two boards.
3:44:19 PM
MS. ROBB explained that without giving the board powers, the
board would remain mostly advisory.
REPRESENTATIVE SADDLER reiterated that it seemed there was no
real effect to the amendment.
3:44:49 PM
REPRESENTATIVE PRAX commented that he supposed the answer was
literally "no," but if someone starts to think about this
somewhere in the future, the intent needs to be clear. He
explained his real concern is that boards could make it more
difficult to get into the profession. He doesn't mind seeing a
board advising an official that works for the government that
works for elected officials. He reiterated his concern that a
board would, to some degree, have a conflict of interest with
people who might want to get into the profession.
3:46:00 PM
REPRESENTATIVE FIELDS pointed out that if the legislature were
to create a board with real powers, then the intent would be
clear. If it is a board, then implicitly the costs would be
user fees rather than coming from the general fund.
3:46:28 PM
REPRESENTATIVE RUFFRIDGE explained that the intent is to make
this a full regulatory board with prescriptive authority similar
to other medical professions in the state. In response to
Representative Saddler's questions, he suggested the possibility
of adding to the amendment a removal of the language in
[subsection](b) which would clarify that. Then in
[subsection](c), changing the language from, serving "at the
pleasure of the commissioner" to, serving "at the pleasure of
the Governor". He added he thought this was an appropriate
place to have the discussion of what is an advisory board versus
what is a full-fledged regulatory board.
3:47:40 PM
REPRESENTATIVE FIELDS said the bill significantly expands the
scope of naturopathy as it overlaps with doctors and
pharmacists. Therefore, it seems that creating a more
expansive, almost new profession, it would seem strange to have
regulatory authority over two professions but not over
naturopaths who in some cases do the same procedures. For that
reason, he supports Amendment 1.
3:48:19 PM
The committee took an at-ease from 3:48 p.m. to 4:01 p.m.
4:01:41 PM
REPRESENTATIVE RUFFRIDGE moved Conceptual Amendment 1 to
Amendment 1, to delete [subsection (b) in Section 2 on page 2
line 18-21 and inserting the following: "The board may adopt
regulations necessary to carry into effect the provisions of
this chapter." Then, on page 2, line 23, delete "commissioner"
and insert "governor". The intent would be to form a
naturopathy board as a regulatory board instead of an advisory
board.
4:02:37 PM
REPRESENTATIVE SUMNER asked about making conforming changes.
REPRESENTATIVE RUFFRIDGE replied that it would be open to
Legislative Legal Services to make any conforming changes as
needed.
4:02:53 PM
REPRESENTATIVE PRAX objected to Conceptional Amendment 1 to
Amendment 1. He did not think spending only five minutes
considering the issue in a committee hearing was a good idea.
As a matter of process, if the committee or someone else wants
to make these changes, they could be considered in the House
Rules Standing Committee. He opined that it should be the
elected officials or somebody under the authority above the
elected officials that should be making the rules, not a
specific group which "the boards end up being." He suggested
that a group of citizens could advise, but it should be the
commissioner or the director who have the legal authority to do
this. He noted that the governor has sent the legislature
several executive orders to get rid of boards which, he opined,
are slowing down opening Alaska for business and protect their
own interest first. That is not necessarily in the public's
interest. He advocated limiting the board to an advisory
function rather than giving regulatory authority.
4:05:50 PM
REPRESENTATIVE SADDLER spoke to his colleague's objection,
explaining that his reading of the statutes is that other boards
that are regulatory boards have fully defined powers and duties.
This rather expansive bill purports to expand the scope and
practice for naturopaths. He suggested that there should be
some side boards regarding the duties and responsibilities for
this board rather than simply allowing it to adopt regulations.
He explained that was the source of his discomfort for this
bill.
4:06:35 PM
A roll call vote was taken on Conceptual Amendment number 1 to
Amendment 1. Representatives Ruffridge, Wright, Carrick,
Fields, and Sumner voted in favor of Conceptual Amendment 1 to
Amendment 1. Representatives Prax and Saddler voted against it.
Therefore, Conceptual Amendment 1 to Amendment 1 was adopted by
a vote of 5-2.
4:07:34 PM
A roll call vote was taken on Amendment 1 as amended.
Representatives Carrick, Fields, Ruffridge, Wright, and Sumner
voted in favor of Amendment 1, as amended. Representatives Prax
and Saddler voted against it. Therefore, Amendment number 1, as
amended, was adopted by a vote of 5-2.
4:08:03 PM
CHAIR SUMNER opened public testimony on HB 115, as amended.
4:08:50 PM
BRUCE CAMPBELL, representing self, spoke in support of HB 115.
He explained that he values naturopathic care and believes the
bill is an important update to statutes allowing naturopathic
doctors (NDs) to practice at their level of training. He
described a personal experience regarding using pre- and post-
surgery supplements following the instructions of an ND.
4:10:14 PM
WAYNE ADERHOLD, representing self, spoke in support of support
HB 115. He explained that he has used NDs in collaboration with
other licensed medical providers since 1993. He also served on
the state chiropractic board. He is a strong advocate of
patient-centered care. He described the process for
applications and the statutes regulating naturopathic doctors.
He opined that HB 115 is in the public's interest.
4:12:48 PM
MARY ANNE FOLAND, MD, representing self, Alaska State Medical
Association, explained that she is a family practice physician,
and she opposes this expansion of scope of practice. She said
that the Alaska State Medical Association, the Alaska Academy of
Family Physicians, and the American Medical Association (AMA)
all oppose expansion, but there has never been an effort to
restrict collaborative use. It is about patient safety. An
apprenticeship is not the same as a post-graduate residency.
She gave three scenarios in which naturopathy had negative
results. She described HB 115 as a Pandora's box with
irreversible impact on patient safety.
4:15:38 PM
ANNETTE O'CONNELL, representing self, spoke in support of HB
115. She explained that NDs are trained in the use of
prescriptive drugs and referenced several states that use this
format. She also pointed out the opioid epidemic was brought
about by well-trained MDs. She shared her personal experiences
regarding when physicians didn't help but naturopaths did.
4:18:03 PM
4:18:41 PM
PAM VENTGEN, Executive Director, Alaska State Medical
Association, explained that the association opposes the
expansion of naturopath scope of practice in HB 115 to include
minor office procedures and prescriptive authority. She
compared the number of hours and types of training and residency
of physicians versus naturopathic doctors. She noted the lack
of specifics in the bill regarding what constitutes minor office
procedures. She questioned the safety of patients under a
naturopath's care.
4:20:29 PM
LISA MARTSOLF, representing self, explained that her family's
naturopath has been their primary care physician for 25 years.
She is confident of this model as a standard of care. She
appreciates the therapeutic care and wealth of information her
ND provides as well as the proactive care and treatment as
opposed to more invasive models of care.
4:21:39 PM
CHRISTINE SAGIN, representing self, described her work as a
family nurse practitioner for 17 years. She collaborates with
naturopaths and finds them to be competent and great primary
care physicians for their patients. She pointed out that there
are different personalities and different types of medicine for
different people. She finds that people who want naturopathic
medicine aren't getting what they need from traditional
medicine. She said HB 115 would allow more access to care.
4:23:36 PM
CHAIR SUMNER, after ascertaining there was no one else who
wished to testify, closed public testimony on HB 115, as
amended.
4:23:39 PM
REPRESENTATIVE RUFFRIDGE moved to report HB 115, as amended, out
of committee with individual recommendations and the
accompanying fiscal notes, and to allow Legislative Legal
Services to make any conforming changes, as necessary. There
being no objection, CSHB 115(L&C) was reported out of the House
Labor and Commerce Standing Committee.
4:23:14 PM
The committee took an at-ease from 4:23 p.m. to 4:27 p.m.
HB 192-DELIVERY/PICK UP OF ALCOHOL; LICENSING
4:27:21 PM
CHAIR SUMNER announced that the next order of business would be
HOUSE BILL NO. 192, "An Act relating to curbside pickup of
alcoholic beverages sold by a package store; relating to
consumer delivery licenses; and providing for an effective
date."
4:27:42 PM
SARENA HACKENMILLER, Staff, Representative Jesse Sumner, Alaska
State Legislature, on behalf of Representative Sumner, prime
sponsor, explained that HB 192 would allow package store license
holders to sell alcohol via curbside pick-up and delivery.
Delivery and curbside pick-up service options boomed during the
COVID 19 pandemic. This allowed many Alaska retailers to stay
in business and provided a way for consumers to access goods
while maintaining distance. At the time statutes prohibiting
the pick-up and delivery of alcohol were suspended.
4:28:32 PM
MS. HACKENMILLER explained that the statute prohibiting pick-up
and delivery of alcohol was suspended by Governor Dunleavy in
April 2020 COVID 19 Order of Suspension Number Two. The
suspensions were renewed in November 2020 but expired on March
3, 2021. During this one-year period no infractions related to
these services were reported. This success shows that Alaska
could now administer the suspended laws as Alaska law and allow
an avenue for businesses to provide this service to Alaska's
citizens. She cited statistics concerning the number of states
offering curbside pickup and delivery of alcohol as well as the
ages of consumers using this type of service. She pointed out
the advantages to retailers and customers.
4:30:09 PM
MS. HACKENMILLER presented the sectional analysis for HB 192
[included in the committee packet], which reads as follows
[original punctuation provided]:
Section 1: AS 04.09.230(e) amends sub-section (4) to
add an exception under (h) and implements a
requirement for a package store delivery endorsement
under AS 04.09.470 or consumer delivery license under
AS 04.09.380 for the delivery of alcoholic beverages
to a person not present on the licensed premises.
Sec. 2. AS 04.09.230(f) is amended to clearly
communicate (h) cannot be violated within the amended
statute.
Sec. 3. AS 04.09.230 is amended by adding new
subsections to allow the holder of a package store
license to offer curbside pickup of alcoholic
beverages if the alcoholic beverage is sealed or
package in a closed bottle or can by the manufacturer
or sealed, tamper-proofed, and labeled in a growler by
the holder.
Furthermore, an agent or employee who is not an
independent contractor and has completed an alcohol
server education course delivers the alcoholic
beverage from the licensed premises to the purchaser
at the location described in the next paragraph of
this sectional analysis and requires the purchaser to
provide identification and acceptable proof of age.
House Bill 192 also includes the following sub-
sections to better define the bill:
•The holder designates a parking place less than 225
feet from the entry to the package store premises for
pickup of alcoholic beverages.
•The transaction is not prohibited under AS 04.16.030
•The holder provides written information regarding the
license and curbside pickup on a form prescribed by
the director.
•The holder consents to an inspection of the area
designated for curbside pickup, excluding private
vehicles, at all reasonable times and in a reasonable
time and in a reasonable manner by an officer or
employee charged with enforcing the alcoholic beverage
control laws and the regulations of the board or by a
peace officer acting in the official capacity of a
peace office.
Sec. 4. AS 04.09 is amended by adding a new section
named "Sec. 04.09.380. Consumer deliver license" which
allows the holder of a package store license, or a
person who contracts with or employs individuals for
the delivery of retail goods to consumers, or an
agent, employee, or independent contractor of the
holder or person to deliver alcoholic beverages from
the license premise of a package store to an
individual who is located off the licensed premises.
Furthermore, the holder of a consumer license or the
agent, employee, or independent contractor of the
holder may deliver an alcoholic beverage only to an
individual who meets the following criteria:
•Is 21 years of age or older
•Provides identification and acceptable proof of age
under AS 04.21.050(b)
•Places the order for purchase of the alcoholic
beverage, is designated by the purchaser as a delivery
recipient, or is located at the delivery address
provided by the purchaser.
The holder of a consumer delivery license may deliver
an alcoholic beverage outside the hours of operation
of the package store if the holder receives the order
for purchase during the hours permitted under AS
04.16.010 and the individual delivering the alcoholic
beverage completes the delivery within a reasonable
amount of time after leaving the package store.
If the holder of a consumer delivery license does not
hold a package store license, the holder of the
package store license is not liable for an action of
the holder of the consumer delivery license or an
agent, employee, or independent contractor of the
holder of the consumer delivery license relating to an
alcoholic beverage delivered from the package store,
including delivery to an individual under 21 years of
age in violation of AS 04.16.051 or a drunken person
in violation of AS 04.16.030.
An individual may not deliver an alcoholic beverage
under this section unless the individual is 21 years
of age or older and holds a valid driver's license.
The holder of a consumer delivery license or the
agent, employee, or independent contractor of the
holder may not deliver an alcoholic beverage under
this section who is in an area where the sale of
alcoholic beverages has been restricted under AS
04.11.491.
The holder of a consumer delivery license commits the
offense of failure to comply with the terms of a
consumer delivery license if the person sells
alcoholic beverages in violation of (a) in this
statute or fails to comply with the requirements of
(b), (c), (e), or (f) of this section. Failure to
comply with the terms of a consumer delivery license
is a violation.
Sec. 5. AS 04.09.480(c) is amended to insert AS
04.09.230(h) on sub-section B within (1) as an
additional accordance to subdivide alcoholic beverages
in response to a purchase request from a person who is
on the licensed premises or purchase order submitted.
Sec. 6. AS 04.11.400(i) is amended to replace sub-
section (11) with the following language: "consumer
delivery license issued under AS 04.09.380." The
former sub-section (11) is reformatted in section 6 to
sub-section (12).
Sec. 7. AS 04.21.020(a) is amended to replace AS
04.11.080 04.11.220 with AS 04.09.020 04.09.380
[AS 04.09.020 04.09.370]. Sec. 8. AS 09.65.315(b) is
amended to replace AS 04.09.020-04.09.370 with AS
04.09.020 04.09.380 [AS 04.09.020 04.09.370].
Sec. 9. This Act takes effect on the effective date of
sec. 13, ch. 8, SLA 2024.
4:36:19 PM
REPRESENTATIVE FIELDS noted that he generally supported the
concept. He questioned the chain of responsibility for service
regarding onsite sales versus delivery to someone's home. He
questioned who was responsible if alcohol were provided to
someone under the age of 21 or inebriated.
4:37:03 PM
MS. HACKENMILLER clarified that if a third party is delivering
the alcohol from a package store license holder, then the
delivery agent is liable.
REPRESENTATIVE FIELDS asked whether the bill sponsor's staff had
talked to Legislative Legal Services about the definition of the
term "independent contractor." He expressed concern that the
application-based employers are trying to avoid workers'
compensation (workers' comp) and wanted clarification regarding
labor law.
4:38:13 PM
CHAIR SUMNER replied that his office had not reached out to
Legislative Legal Services or the Department of Law but would.
REPRESENTATIVE FIELDS said it was his understanding that under
current law some transportation network companies were exempted,
but others were not exempted from workers' comp
responsibilities. He questioned whether this should be
available to breweries or package stores.
4:39:07 PM
CHAIR SUMNER explained that Representative Fields could make an
amendment at a future date.
REPRESENTATIVE CARRICK requested clarification regarding whether
"package store" includes stores such as Fred Meyers with alcohol
sections as well as a Brown Jug-type of establishment.
MS. HACKENMILLER replied in the affirmative.
REPRESENTATIVE CARRICK brought up the question of whether a
person who is younger than 21 could pick up and deliver alcohol.
4:40:30 PM
CHAIR SUMNER replied that it still would be illegal and compared
it to a purchase at a package store.
MS. HACKENMILLER said the committee would have some industry
experts testify to explain how other states approach the issue
of sales to under-age individuals.
REPRESENTATIVE CARRICK asked whether a person driving from point
A to point B while transporting alcohol has to be 21 years old.
4:42:19 PM
CHAIR SUMNER drew attention to Section 4, lines 9-12 of HB 192.
4:42:45 PM
REPRESENTATIVE SADDLER asked whether, under HB 192, there would
be a limit to the number of delivery licenses. Referring to
Section 4, he questioned how the delivery license holder would
confirm the identity of the purchaser.
MS. HACKENMILLER replied that the details of how that is done
will be explained by the industry testimony at the next meeting.
4:44:16 PM
CHAIR SUMNER corrected his earlier statement and referred the
committee to Section 4, lines 29-30.
4:44:50 PM
REPRESENTATIVE PRAX asked whether there was information
regarding what solutions other states have to prevent what would
essentially be bootlegging.
4:45:29 PM
CHAIR SUMNER announced that HB 192 was held over.
4:45:40 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
4:45 p.m.