Legislature(2017 - 2018)BARNES 124

01/31/2018 03:15 PM LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Delayed to Immediately Following HRES --
*+ HB 299 EXTEND: ALCOHOLIC BEVERAGE CONTROL BOARD TELECONFERENCED
Heard & Held
-- Public Testimony --
*+ HB 301 ALCOHOL LIC.: BEV DISPENSARY/RESTAURANT TELECONFERENCED
Heard & Held
-- Public Testimony --
*+ HB 265 LIQUOR LICENSES; RESTAURANTS/MOTELS TELECONFERENCED
Heard & Held
-- Public Testimony --
                    ALASKA STATE LEGISLATURE                                                                                  
          HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                         
                        January 31, 2018                                                                                        
                           3:53 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Sam Kito, Chair                                                                                                  
Representative Adam Wool, Vice Chair                                                                                            
Representative Andy Josephson                                                                                                   
Representative Louise Stutes                                                                                                    
Representative Chris Birch                                                                                                      
Representative Gary Knopp                                                                                                       
Representative Colleen Sullivan-Leonard                                                                                         
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Mike Chenault (alternate)                                                                                        
Representative Bryce Edgmon (alternate)                                                                                         
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 301                                                                                                              
"An Act relating to the renewal and transfer of ownership of a                                                                  
beverage dispensary license or restaurant or eating place                                                                       
license."                                                                                                                       
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 265                                                                                       
"An Act relating to the  renewal of a license involving alcoholic                                                               
beverages; and relating to the  issuance, renewal, or transfer of                                                               
ownership of  a beverage  dispensary license  or a  restaurant or                                                               
eating place license."                                                                                                          
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 299                                                                                                              
"An Act extending the termination date of the Alcoholic Beverage                                                                
Control Board; and providing for an effective date."                                                                            
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 301                                                                                                                  
SHORT TITLE: ALCOHOL LIC.: BEV DISPENSARY/RESTAURANT                                                                            
SPONSOR(s): REPRESENTATIVE(s) WOOL                                                                                              
                                                                                                                                
01/24/18       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/24/18       (H)       L&C, FIN                                                                                               
01/31/18       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 265                                                                                                                  
SHORT TITLE: LIQUOR LICENSES; RESTAURANTS/MOTELS                                                                                
SPONSOR(s): REPRESENTATIVE(s) RAUSCHER                                                                                          
                                                                                                                                
01/08/18       (H)       PREFILE RELEASED 1/8/18                                                                                
01/16/18       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/16/18       (H)       L&C, FIN                                                                                               
01/24/18       (H)       SPONSOR SUBSTITUTE INTRODUCED                                                                          
01/24/18       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/24/18       (H)       L&C, FIN                                                                                               
01/31/18       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 299                                                                                                                  
SHORT TITLE: EXTEND: ALCOHOLIC BEVERAGE CONTROL BOARD                                                                           
SPONSOR(s): REPRESENTATIVE(s) WOOL                                                                                              
                                                                                                                                
01/24/18       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/24/18       (H)       L&C, FIN                                                                                               
01/31/18       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
REPRESENTATIVE ADAM WOOL                                                                                                        
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Introduced HB 301 as prime sponsor.                                                                      
                                                                                                                                
LAURA STIDOLPH, Staff                                                                                                           
Representative Adam Wool                                                                                                        
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions in the hearing on HB 301                                                              
on behalf of Representative Wool, prime sponsor.                                                                                
                                                                                                                                
REPRESENTATIVE GEORGE RAUSCHER                                                                                                  
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Introduced HB 265 as prime sponsor.                                                                      
                                                                                                                                
DARRELL BREESE, Staff                                                                                                           
Representative George Rauscher                                                                                                  
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions  during the hearing on HB                                                             
265, on behalf of Representative Rauscher, prime sponsor.                                                                       
                                                                                                                                
LAURA STIDOLPH, Staff                                                                                                           
Representative Adam Wool                                                                                                        
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION   STATEMENT:     Introduced   HB   299   on  behalf   of                                                             
Representative Wool, prime sponsor.                                                                                             
                                                                                                                                
KRIS CURTIS, Legislative Auditor                                                                                                
Legislative Audit and Budget                                                                                                    
Legislative Agencies and Offices                                                                                                
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Presented the audit findings  related to HB                                                             
299.                                                                                                                            
                                                                                                                                
CHRISTINE LUMBA, Legislative Auditor                                                                                            
Legislative Audit and Budget                                                                                                    
Legislative Agencies and Offices                                                                                                
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:   Answered questions  in the  hearing on  HB                                                             
299.                                                                                                                            
                                                                                                                                
ERIKA MCCONNELL, Director                                                                                                       
Alcohol and Marijuana Control Office                                                                                            
Department  of  Commerce,  Community,  and  Economic  Development                                                               
(DCCED)                                                                                                                         
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:   Answered questions  in the  hearing on  HB                                                             
299.                                                                                                                            
                                                                                                                                
ROBERT KLEIN, Chair                                                                                                             
Alcohol and Beverage Control Board                                                                                              
Alcohol & Marijuana Control Office                                                                                              
Department  of  Commerce,  Community,  and  Economic  Development                                                               
(DCCED)                                                                                                                         
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in the hearing on HB 299.                                                                      
                                                                                                                                
WILLIAM HARRINGTON                                                                                                              
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Spoke in the hearing on HB 299.                                                                          
                                                                                                                                
ERIKA MCCONNELL, Director                                                                                                       
Alcohol and Marijuana Control Office                                                                                            
Department  of  Commerce,  Community,  and  Economic  Development                                                               
(DCCED)                                                                                                                         
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:   Answered questions  in the  hearing on  HB                                                             
301.                                                                                                                            
                                                                                                                                
ALLAN CHOY, Owner                                                                                                               
Al's Alaskan Inn                                                                                                                
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Spoke in support of HB 301.                                                                              
                                                                                                                                
ARDEN RANKINS, Owner                                                                                                            
Sunrise Inn                                                                                                                     
Cooper Landing, Alaska                                                                                                          
POSITION STATEMENT:  Spoke in support of HB 301.                                                                              
                                                                                                                                
DALE FOX                                                                                                                        
Alaska  Cabaret,  Hotel,  Restaurant  and  Retailers  Association                                                               
(CHARR)                                                                                                                         
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Spoke in support of HB 301.                                                                              
                                                                                                                                
SASSAN MOSSANEN                                                                                                                 
Denali Brewing Company                                                                                                          
Talkeetna, Alaska                                                                                                               
POSITION STATEMENT:  Spoke in support of HB 301.                                                                              
                                                                                                                                
DARRELL BREESE, Staff                                                                                                           
Representative George Rauscher                                                                                                  
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION   STATEMENT:      Presented   HB  265   on   behalf   of                                                             
Representative Rauscher, prime sponsor.                                                                                         
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:53:03 PM                                                                                                                    
                                                                                                                                
CHAIR  SAM KITO  called  the House  Labor  and Commerce  Standing                                                             
Committee meeting  to order at  3:53 p.m.  Representatives Knopp,                                                               
Sullivan-Leonard,  Josephson, Wool,  Birch, and  Kito present  at                                                               
the call to order.   Representative Stutes arrived as the meeting                                                               
was in progress.                                                                                                                
                                                                                                                                
         HB 301-ALCOHOL LIC.: BEV DISPENSARY/RESTAURANT                                                                     
                                                                                                                              
                                                                                                                                
3:54:19 PM                                                                                                                    
                                                                                                                                
CHAIR KITO  announced that the  first order of business  would be                                                               
HOUSE BILL NO. 301, "An Act  relating to the renewal and transfer                                                               
of ownership  of a beverage  dispensary license or  restaurant or                                                               
eating place license."                                                                                                          
                                                                                                                                
3:54:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ADAM WOOL,  Alaska State  Legislature, introduced                                                               
HB  301 as  prime  sponsor.   He  stated  historically in  Alaska                                                               
roadhouses or hotels with 10  rooms or more could obtain beverage                                                               
licenses.  In  1985, there was a statute change.   More recently,                                                               
there was a  new interpretation of the statute  and renewals were                                                               
denied.   The proposed  bill would  ensure that  those businesses                                                               
which had licenses awarded before  1985 would be grandfathered in                                                               
to continue operating.                                                                                                          
                                                                                                                                
3:56:34 PM                                                                                                                    
                                                                                                                                
LAURA  STIDOLPH, Staff,  Representative Adam  Wool, Alaska  State                                                               
Legislature,  answered   questions  on  HB  301,   on  behalf  of                                                               
Representative  Wool,  prime  sponsor.   She  confirmed  that  34                                                               
businesses had been denied renewal of their beverage licenses.                                                                  
                                                                                                                                
3:56:53 PM                                                                                                                    
                                                                                                                                
CHAIR KITO held over HB 301.                                                                                                    
                                                                                                                                
           HB 265-LIQUOR LICENSES; RESTAURANTS/MOTELS                                                                       
                                                                                                                                
3:57:05 PM                                                                                                                    
                                                                                                                                
CHAIR KITO  announced that  the next order  of business  would be                                                               
HOUSE BILL NO. 265, "An Act  relating to the renewal of a license                                                               
involving alcoholic  beverages; and  relating to the  transfer or                                                               
issuance  of a  beverage dispensary  license or  a restaurant  or                                                               
eating place license."                                                                                                          
                                                                                                                                
3:57:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   GEORGE  RAUSCHER,   Alaska  State   Legislature,                                                               
introduced HB  265 as prime  sponsor.  He explained  the proposed                                                               
bill  would make  three strategic  changes to  alcoholic beverage                                                               
licensing to  improve the Alcohol  Beverage Control  (ABC) Board.                                                               
First, it  would modify the  opening hours requirements  for club                                                               
licenses.  It  would create a level playing  field for businesses                                                               
that  serve tourists  on the  road  systems.   The proposed  bill                                                               
would establish a grandfather clause  for the holder of a tourism                                                               
license  to  improve  the  ownership  transfer  procedures.    He                                                               
continued that club licenses affect  Lions Clubs, Elks Clubs, and                                                               
non-profits.  He  explained the current statute  requires them to                                                               
be open  30 days each calendar  year for a full  eight hours each                                                               
day.   The proposed bill  would require a  total of 240  hours in                                                               
the year.  He specified that  HB 265 would limit roadhouses to 25                                                               
miles outside an incorporated city or unified borough.                                                                          
                                                                                                                                
4:00:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STUTES asked for a sectional analysis of HB 265.                                                                 
                                                                                                                                
4:00:20 PM                                                                                                                    
                                                                                                                                
DARRELL  BREESE, Staff,  Representative  George Rauscher,  Alaska                                                               
State Legislature,  on behalf  of Representative  Rauscher, prime                                                               
sponsor, answered  that there  was an  explanation of  changes in                                                               
the  proposed  bill,  but  there was  no  sectional  analysis  at                                                               
present.                                                                                                                        
                                                                                                                                
4:00:50 PM                                                                                                                    
                                                                                                                                
CHAIR KITO  held over  HB 265  to receive  additional information                                                               
from staff.  [The bill was taken up again later in the meeting.]                                                                
                                                                                                                                
        HB 299-EXTEND: ALCOHOLIC BEVERAGE CONTROL BOARD                                                                     
                                                                                                                                
4:01:08 PM                                                                                                                    
                                                                                                                                
CHAIR KITO  announced that  the next order  of business  would be                                                               
HOUSE BILL  NO. 299,  "An Act extending  the termination  date of                                                               
the  Alcoholic  Beverage  Control  Board; and  providing  for  an                                                               
effective date."                                                                                                                
                                                                                                                                
4:01:23 PM                                                                                                                    
                                                                                                                                
LAURA  STIDOLPH, Staff,  Representative Adam  Wool, Alaska  State                                                               
Legislature, introduced HB 299 on  behalf of Representative Wool,                                                               
prime  sponsor.   She  explained  that  the proposed  bill  would                                                               
extend the Alcoholic  Beverage Control (ABC) Board  by four years                                                               
to June  30, 2022.   She paraphrased  the Legislative  Budget and                                                               
Audit (LB&A) conclusions, which read as follows:                                                                                
                                                                                                                                
     The  Alcoholic  Beverage  Control Board  (board)  is  a                                                                    
     regulatory and quasi-judicial  board consisting of five                                                                    
     members  appointed by  the  governor,  created for  the                                                                    
     purpose   of  controlling   the  manufacture,   barter,                                                                    
     possession,  and sale  of  alcoholic  beverages in  the                                                                    
     state.  The  board  consists  of  one  member  actively                                                                    
     engaged  in  the public  safety  sector,  one from  the                                                                    
     general public,  one who  has resided  in a  rural area                                                                    
     within the  last five years,  and two  actively engaged                                                                    
     in   the  alcoholic   beverage   industry.  The   audit                                                                    
     concluded the  board should improve its  procedures for                                                                    
     issuing  renewals,  recreational   site  licenses,  and                                                                    
     beverage  dispensary licenses  that encourage  tourism.                                                                    
     Testing  found  these  licenses were  not  consistently                                                                    
     issued  in  accordance  with statutes.    Additionally,                                                                    
     operational improvements are  needed in enforcing laws,                                                                    
     monitoring   board-related    local   law   enforcement                                                                    
     activity, and processing refunds to municipalities.                                                                        
                                                                                                                                
4:02:52 PM                                                                                                                    
                                                                                                                                
KRIS CURTIS,  Legislative Auditor, Legislative Audit  and Budget,                                                               
Legislative  Agencies and  Offices,  presented  the sunset  audit                                                               
findings  for the  ABC  Board.   The audit  found  the board  had                                                               
operated in  the public interest  in all areas  except licensing.                                                               
There was  a need to  improve the board's procedures  for issuing                                                               
renewals,  recreational site  licenses,  and beverage  dispensary                                                               
licenses   for   the   purposes    of      encouraging   tourism.                                                               
Additionally, operational improvements  are needed in enforcement                                                               
of  laws,   monitoring  local   law  enforcement   activity,  and                                                               
processing  refunds  to  municipalities.     She  read  from  the                                                               
November 2017 audit [included in committee packets] as follows:                                                                 
                                                                                                                                
     AMCO    [Alcohol   and    Marijuana   Control    Board}                                                                    
     investigators   have   stopped  conducting   compliance                                                                    
     checks  as of  April  2015.   The  board, through  AMCO                                                                    
     investigators,  has  historically conducted  compliance                                                                    
     checks where investigators  employ underage individuals                                                                    
     who   attempt   to    purchase   alcoholic   beverages.                                                                    
     Licensees who fail a  compliance check receive criminal                                                                    
     summons  or citations.   According  to management,  the                                                                    
     federal grant  funding for this program  was terminated                                                                    
     at   the  end   of   2012,  and   the  board   received                                                                    
     supplemental funds  to keep  the program  going through                                                                    
     June  2014.   AMCO's enforcement  section continued  to                                                                    
     conduct  compliance checks  funded by  program receipts                                                                    
     until April  2015.  Although  there is no  statutory or                                                                    
     regulatory  requirement to  conduct compliance  checks,                                                                    
     AMCO management reported it is  an integral part of the                                                                    
     enforcement   of  alcoholic   beverage   laws  and   is                                                                    
     evaluating   alternative   means  for   providing   the                                                                    
     enforcement   through   shared  services   with   other                                                                    
     agencies.     The  audit  noted  the   board  and  AMCO                                                                    
     management have  not established a  written enforcement                                                                    
     plan to direct its  limited enforcement resources.  For                                                                    
     example,  the board  has not  formally established  how                                                                    
     often   licensed   premises    should   be   inspected.                                                                    
     Furthermore, the  control office  does not  monitor and                                                                    
     track all complaints to  ensure complaints are assessed                                                                    
     for  follow  up action  and  investigated  in a  timely                                                                    
     manner.                                                                                                                    
                                                                                                                                
4:05:26 PM                                                                                                                    
                                                                                                                                
MS.  CURTIS  added  that  the   board  and  AMCO  staff  had  not                                                               
maintained a  list of restricted purchasers  within the statewide                                                               
database  in   accordance  with  statute,   potentially  allowing                                                               
individuals who have been convicted  of illegally selling alcohol                                                               
to continue to purchase alcohol via written order.                                                                              
                                                                                                                                
MS. CURTIS  listed the eight  recommendations in the audit.   The                                                               
audit recommended the  authority to renew licenses  be limited to                                                               
the board to  comply with statutes.  The  audit again recommended                                                               
that  the board  issue recreational  site licenses  in accordance                                                               
with  statutory   requirements.     This  was  the   second  such                                                               
recommendation  and had  been given  in the  prior sunset  audit.                                                               
Ten of the 29 recreational site  licenses had been tested, and it                                                               
was  found  that  all  10  did  not  meet  the  definition  of  a                                                               
recreational  site.   She gave  the list  of recreational  sites,                                                               
including  baseball  games, car  races,  hockey  games, dog  sled                                                               
racing events  and curling matches  held during the season.   The                                                               
non-compliant  licensees  the  audit had  found  included  travel                                                               
companies, bowling alleys, an arts  council, a pool hall, a movie                                                               
theater, and  a spa.   Board  members were  aware that  they were                                                               
issuing  those  licenses  not in  accordance  with  statute,  but                                                               
believed it was  in the public's best interest to  continue to do                                                               
so.  The  board thought the issue would be  addressed in a future                                                               
re-write of the statute.                                                                                                        
                                                                                                                                
MS.  CURTIS spoke  to  the recommendation  that  the board  issue                                                               
beverage  dispensary   licenses  in  accordance   with  statutory                                                               
requirements.    The  audit  sampled   16  of  the  126  beverage                                                               
dispensary licenses that encourage tourism  and found that 5 were                                                               
transferred and 6 were renewed  despite not meeting the statutory                                                               
requirements.   She explained statutes  give the  board authority                                                               
to  issue  a  beverage  dispensary   license  without  regard  to                                                               
population limits if it appears  that the issuance will encourage                                                               
tourism.   She  added that  statutes also  provide for  a minimum                                                               
rental room  rate, and, in  the areas examined, the  entities did                                                               
not  meet  the   minimum  rate.    The  board   believed  it  was                                                               
appropriate to continue  to issue those licenses  as the original                                                               
licenses had  been issued prior  to 1985.   However, there  is no                                                               
statutory provision to grandfather licenses.                                                                                    
                                                                                                                                
4:08:54 PM                                                                                                                    
                                                                                                                                
MS.  CURTIS continued  to  list the  LB&A  recommendations.   The                                                               
audit  recommended   the  board,  the  AMCO   director,  and  the                                                               
enforcement  supervisor work  together to  formally establish  an                                                               
enforcement plan to direct  AMCO's limited enforcement resources.                                                               
The  audit  further  recommended  the  board  and  AMCO  director                                                               
implement a  process to  monitor and  track complaints  to ensure                                                               
they  are assessed  for follow-up  action and  investigated in  a                                                               
timely manner.   The sixth recommendation was that  the board and                                                               
the  AMCO director  develop written  procedures for  updating the                                                               
statewide  database  with   restricted  purchasers.    Procedures                                                               
should include working  with the court system  to receive reports                                                               
of  violations in  a timely  manner.   The audit  recommended the                                                               
board   and   AMCO   director  improve   procedures   to   ensure                                                               
municipalities  report  violations  of alcoholic  beverage  laws.                                                               
Finally,  the audit  recommended  the AMCO  director develop  and                                                               
implement  procedures to  ensure  refunds  to municipalities  are                                                               
appropriately reviewed.                                                                                                         
                                                                                                                                
4:11:33 PM                                                                                                                    
                                                                                                                                
MS. CURTIS  stated LB&A was  recommending a 4-year  extension for                                                               
the  board.   The department  concurred with  all recommendations                                                               
except  recommendation   1  regarding  the  authority   to  renew                                                               
licenses.     The   board  believed   there  is   an  alternative                                                               
interpretation of  statute.  The  board chair concurred  with all                                                               
but  recommendation  3  concerning beverage  dispensary  licenses                                                               
which encourage tourism.  The  board maintained it is appropriate                                                               
to continue to grandfather those  licenses.  Ms. Curtis explained                                                               
that when an auditee does  not agree with any recommendation, she                                                               
responds  in the  audit findings.   In  this instance,  the board                                                               
chair  was  unable  to  provide   more  information  for  her  to                                                               
consider.  She therefore reaffirmed the findings.                                                                               
                                                                                                                                
4:12:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON asked whether  the boards ever report to                                                               
the state about the lack of resources.                                                                                          
                                                                                                                                
MS. CURTIS  replied that the  ABC Board was different  from other                                                               
boards  in  not  being  an occupational  licensing  board.    The                                                               
board's response  acknowledges the  need for an  enforcement plan                                                               
and some sort of prioritization due to limited resources.                                                                       
                                                                                                                                
REPRESENTATIVE JOSEPHSON  asked what  the board  needed to  do to                                                               
fix the information gap with the court system.                                                                                  
                                                                                                                                
MS. CURTIS answered  she thought that it was as  simple as asking                                                               
the court system to send in the information.                                                                                    
                                                                                                                                
4:15:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  BIRCH asked  about  efforts  to receive  feedback                                                               
from licensees regarding the board's operations.                                                                                
                                                                                                                                
MS. CURTIS  answered that at times  surveys were sent out  to ABC                                                               
stakeholders.  The  audit also examined board  meeting minutes to                                                               
determine  whether  the  public  was  commenting  and  how  those                                                               
comments  were considered  by the  board.   She  deferred to  the                                                               
board chair for more information.                                                                                               
                                                                                                                                
4:17:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KNOPP  remarked the audit  had triggered a  lot of                                                               
discussion, including  the proposals of  HB 301  and HB 265.   He                                                               
asked  whether it  was not  more appropriate  to decide  that the                                                               
statute "doesn't fit," and he said  he thought that it made sense                                                               
to return to pre-1985.                                                                                                          
                                                                                                                                
MS.  CURTIS replied  it was  outside of  her role  as auditor  to                                                               
comment on the appropriate nature of statute.                                                                                   
                                                                                                                                
CHAIR  KITO  added  that  he   thought  it  made  sense  for  the                                                               
legislators to examine legislation that may no longer "fit."                                                                    
                                                                                                                                
REPRESENTATIVE KNOPP  spoke to  the population  base and  said he                                                               
thought there were different  distinctions for incorporated areas                                                               
of the boroughs.  He asked  why the population base was not taken                                                               
out of the incorporated areas.                                                                                                  
                                                                                                                                
MS. CURTIS said she did not  know which areas were examined.  She                                                               
specified that the analysis was applied  to a sample group of the                                                               
126 licenses.                                                                                                                   
                                                                                                                                
REPRESENTATIVE KNOPP  asked whether,  with separate  sections for                                                               
incorporated  areas,  it made  sense  to  exclude the  population                                                               
base.                                                                                                                           
                                                                                                                                
MS.  CURTIS said  she  did not  know if  she  could address  that                                                               
issue.  She stated the  auditors had not had trouble interpreting                                                               
the  criteria  and  asked  whether he  was  questioning  why  the                                                               
statute was written the way it was.                                                                                             
                                                                                                                                
REPRESENTATIVE KNOPP said,  "if it was meant to  be all inclusive                                                               
incorporated cities  inside an organized borough,  we would never                                                               
have put the exclusions for  the incorporated cities in there, so                                                               
we  should  only  be  counting   the  unorganized  areas  of  the                                                               
borough." He  said he thought that  was not what was  done in the                                                               
audit.                                                                                                                          
                                                                                                                                
4:23:03 PM                                                                                                                    
                                                                                                                                
MS. CURTIS deferred to the auditor who carried out the testing.                                                                 
                                                                                                                                
4:23:19 PM                                                                                                                    
                                                                                                                                
CHRISTINE  LUMBA,  Legislative  Auditor,  Legislative  Audit  and                                                               
Budget, stated she was not sure she has an answer for that.                                                                     
                                                                                                                                
4:23:47 PM                                                                                                                    
                                                                                                                                
CHAIR KITO asked  whether she was able to describe  how the audit                                                               
was tested.                                                                                                                     
                                                                                                                                
4:23:57 PM                                                                                                                    
                                                                                                                                
MS.  LUMBA  answered  that  the  division  had  generated  random                                                               
samples  and  found that  certain  licenses  were issued  without                                                               
regard  to population  limits  to encourage  tourism.   When  the                                                               
renewal came up, they were evaluated under AS 04.11.400(d).                                                                     
                                                                                                                                
4:24:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KNOPP   responded  that  he  would   contact  the                                                               
division in person later.                                                                                                       
                                                                                                                                
4:24:48 PM                                                                                                                    
                                                                                                                                
MS. CURTIS  remarked that LB&A  had vetted the findings  with the                                                               
ABC and  AMCO Boards and they  had no issue with  the criteria or                                                               
methodology.                                                                                                                    
                                                                                                                                
4:24:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WOOL  commented on an inconsistency  in the number                                                               
of rooms  required for licenses in  different areas.  He  went on                                                               
to ask about qualifications for enforcement officers.                                                                           
                                                                                                                                
MS. CURTIS deferred to AMCO.                                                                                                    
                                                                                                                                
4:26:44 PM                                                                                                                    
                                                                                                                                
ERIKA MCCONNELL, Director, Alcohol  and Marijuana Control Office,                                                               
Department  of  Commerce,  Community,  and  Economic  Development                                                               
(DCCED),  answered that  the  board's  enforcement officers  were                                                               
classified  as special  investigator I,  requiring four  years of                                                               
advanced level investigative work or  four years of full-time law                                                               
enforcement  experience.   She  specified  that  all the  board's                                                               
current officers were previously law enforcement officers.                                                                      
                                                                                                                                
REPRESENTATIVE  WOOL said  he felt  that the  ABC board  and AMCO                                                               
office staff were overworked.  He  disclosed that he is a license                                                               
holder and  has had  trouble reaching  the office  via telephone.                                                               
He asked whether the addition  of marijuana [control enforcement]                                                               
to the workload was something "they could do comfortably."                                                                      
                                                                                                                                
MS. MCCONNELL answered  that there had been  an adjustment period                                                               
as the office  had taken on the marijuana program.   It had grown                                                               
incrementally  to accommodate  the marijuana  board and  had also                                                               
seen  a great  deal of  staff turnover.   She  remarked that  the                                                               
office had heard  other people complain that it  can be difficult                                                               
to reach staff,  and the office had developed  policies to ensure                                                               
it was more responsive.                                                                                                         
                                                                                                                                
4:29:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  WOOL asked  how  many  enforcement officers  were                                                               
currently employed by the board.                                                                                                
                                                                                                                                
MS. MCCONNELL  replied there  is one  special investigator  II in                                                               
Anchorage and seven enforcement officers.                                                                                       
                                                                                                                                
REPRESENTATIVE  WOOL  remarked  that  there  were  1,885  alcohol                                                               
licenses requiring enforcement and  a growing number of marijuana                                                               
licenses.  He spoke to one  of the recommendations that the board                                                               
carry out license renewals whereas  currently the AMCO office was                                                               
doing that.  He asked for her thoughts.                                                                                         
                                                                                                                                
MS. MCCONNELL replied  that as noted in the  audit response, AMCO                                                               
felt that  statutes can  be interpreted  differently, but  it had                                                               
agreed to  adjust its procedures based  on the audit.   She added                                                               
that AMCO  had taken 350  renewals to  the board.   However, they                                                               
were  not  providing the  board  with  all  the paperwork.    The                                                               
renewals  provided to  the board  were  those which  had met  the                                                               
requirements for renewal.                                                                                                       
                                                                                                                                
4:31:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WOOL said he felt  renewing 900 licenses was a lot                                                               
of work  for the board.   He asked whether the  director having a                                                               
tie-breaking vote was something that existed in other boards.                                                                   
                                                                                                                                
MS. CURTIS replied that she was not aware of the policy.                                                                        
                                                                                                                                
REPRESENTATIVE WOOL directed his question to Ms. McConnell.                                                                     
                                                                                                                                
MS.  MCCONNELL answered  that the  Marijuana Board  did not  have                                                               
that policy.                                                                                                                    
                                                                                                                                
REPRESENTATIVE WOOL  mentioned that in discussions  with staff in                                                               
the  licensing areas,  it  was  disclosed that  the  vote was  in                                                               
statute which had  been repealed but had  remained in regulation.                                                               
He asked for confirmation from LB&A.                                                                                            
                                                                                                                                
MS. CURTIS replied that it was not a topic in the audit.                                                                        
                                                                                                                                
4:34:05 PM                                                                                                                    
                                                                                                                                
CHAIR KITO  stated he thought  it may  have been a  decision that                                                               
had come up post-audit.                                                                                                         
                                                                                                                                
4:34:49 PM                                                                                                                    
                                                                                                                                
ROBERT KLEIN, Chair, Alcohol and  Beverage Control Board, Alcohol                                                               
& Marijuana  Control Office,  Department of  Commerce, Community,                                                               
and Economic Development (DCCED), testified  in the hearing on HB                                                               
299.   He  complimented  the LB&A  for the  thorough  job on  the                                                               
audit.  He said he agreed  with recommendations 4-8 and the board                                                               
had already implemented a number  of them. Regarding renewals, he                                                               
stated  the law  said the  board was  the only  group that  could                                                               
grant  renewals, so  at the  January  23 board  meeting they  had                                                               
staff  bring around  300  renewals to  them.   He  stated it  was                                                               
onerous, but that staff had done a lot of homework.                                                                             
                                                                                                                                
MR.  KLEIN spoke  to recreational  site licenses,  specifying the                                                               
board does not  grant any recreational site licenses  that do not                                                               
follow  the statute  requirements  very closely  and only  renews                                                               
practicing businesses.   He mentioned that the  board was waiting                                                               
for SB 76 to move through  the legislature.  If the proposed bill                                                               
passed, the  board would comply,  otherwise it would  address how                                                               
to  avoid  renewing some  of  the  licenses.   He  addressed  the                                                               
recommendation   regarding  tourism,   indicating  that   in  the                                                               
application  of Title  4, the  board looked  at licenses  granted                                                               
before 1985 and applied common sense.   The board did not want to                                                               
ask those  holding tourism licenses  to build more  rooms because                                                               
the  population increases  and had  not  taken that  action.   In                                                               
closing, he stated  that he supports the 4-year  extension in the                                                               
proposed legislation.                                                                                                           
                                                                                                                                
4:38:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE BIRCH  extended his personal appreciation  for the                                                               
services and support the ABC Board  had provided to Alaskans.  He                                                               
asked  whether there  was anything  the legislature  could do  to                                                               
ensure that common sense prevails.                                                                                              
                                                                                                                                
4:39:44 PM                                                                                                                    
                                                                                                                                
MR. KLEIN remarked that the  application of common sense was what                                                               
had enabled Title 4 to exist for almost 40 years.                                                                               
                                                                                                                                
4:40:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KNOPP spoke to the  rejection of the reinstatement                                                               
of  an  alcoholic beverage  license  to  a well-established  Elks                                                               
Lodge.   He said  he felt  the ABC Board  had been  following the                                                               
intent of  the law  but asked  whether the  board could  not have                                                               
used discretion.                                                                                                                
                                                                                                                                
4:40:59 PM                                                                                                                    
                                                                                                                                
MR. KLEIN answered  that the people responsible  for renewing the                                                               
license  chose  to  ignore  the requirements  to  apply  for  the                                                               
renewal  and had  missed all  the deadlines.   He  underlined the                                                               
action taken  by the board  did not  preclude the lodge  from re-                                                               
applying for the license.                                                                                                       
                                                                                                                                
4:41:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STUTES asked  how  many members  are  on the  ABC                                                               
Board.                                                                                                                          
                                                                                                                                
MR. KLEIN replied there are five members on the board.                                                                          
                                                                                                                                
4:42:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  WOOL remarked  that the  five board  members were                                                               
selected for different roles.   He asked whether the director had                                                               
a tie-breaking vote and whether it was ever used.                                                                               
                                                                                                                                
MR. KLEIN answered that he  was against applying the tie-breaking                                                               
vote of  the director.  He  added that the board  had dropped the                                                               
legislative aspect of the director  having the tie-breaking vote.                                                               
He  clarified that  the board  was quasi-judicial  in nature  and                                                               
that at times  the director was the prosecutor in  the cases that                                                               
come before  the board.   He said  he thought the  regulation was                                                               
left in the statute inadvertently.                                                                                              
                                                                                                                                
REPRESENTATIVE WOOL asked whether the  board can keep up with the                                                               
900 license renewals every year.                                                                                                
                                                                                                                                
4:44:04 PM                                                                                                                    
                                                                                                                                
MR. KLEIN  answered there was an  efficient way for the  staff to                                                               
review renewals.  There was a  public process as well as a series                                                               
of checks and balances in the system.   He added that by the time                                                               
the five members  of the board review a renewal,  the renewal has                                                               
gone through those hurdles.                                                                                                     
                                                                                                                                
4:44:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON asked whether  the director of AMCO cast                                                               
a tie-breaking vote  relying on a regulation  that was previously                                                               
connected  to a  statute.   He added  that the  statute had  been                                                               
repealed, and he said he  thought it was a standalone regulation.                                                               
He asked  whether people were  questioning the legitimacy  of the                                                               
vote.                                                                                                                           
                                                                                                                                
MR. KLEIN answered  that the tie-breaking vote has  not been used                                                               
in his experience  and has not been  used in many years.   It was                                                               
brought up  in a meeting  because the regulation had  been found.                                                               
He added  the assistant attorney  general who supports  the board                                                               
suggested it might be difficult  to defend should any lawsuits be                                                               
brought forward.                                                                                                                
                                                                                                                                
4:46:11 PM                                                                                                                    
                                                                                                                                
CHAIR KITO opened public testimony on HB 299.                                                                                   
                                                                                                                                
4:46:29 PM                                                                                                                    
                                                                                                                                
WILLIAM  HARRINGTON   testified  that  he  does   not  think  the                                                               
alcoholic beverage industry needs a control board.                                                                              
                                                                                                                                
4:48:15 PM                                                                                                                    
                                                                                                                                
CHAIR KITO  announced he would  leave public testimony on  HB 299                                                               
open.                                                                                                                           
                                                                                                                                
CHAIR KITO held over HB 299.                                                                                                    
                                                                                                                                
         HB 301-ALCOHOL LIC.: BEV DISPENSARY/RESTAURANT                                                                     
                                                                                                                                
4:49:05 PM                                                                                                                    
                                                                                                                                
CHAIR KITO  announced that  the next order  of business  would be                                                               
HOUSE BILL NO. 301, "An Act  relating to the renewal and transfer                                                               
of ownership  of a beverage  dispensary license or  restaurant or                                                               
eating place license."                                                                                                          
                                                                                                                                
4:49:39 PM                                                                                                                    
                                                                                                                                
CHAIR  KITO asked  Ms. McConnell  whether  she had  been able  to                                                               
review  HB  301  and  whether the  department  had  any  comments                                                               
regarding the proposed legislation.                                                                                             
                                                                                                                                
4:49:59 PM                                                                                                                    
                                                                                                                                
ERIKA MCCONNELL, Director, Alcohol  and Marijuana Control Office,                                                               
Department  of  Commerce,  Community, and  Economic  Development,                                                               
stated  that there  was a  correction  to be  made regarding  the                                                               
statement  that  34  licenses  had  been  denied  renewal.    She                                                               
clarified that  no licenses had  been denied renewal.   The issue                                                               
was the transfer  of ownership.  She reiterated that  some of the                                                               
licenses had  been issued  long ago,  before the  requirement for                                                               
number of rooms was changed.   She added that people want to sell                                                               
their  businesses, and,  at time  of transfer  of ownership,  the                                                               
number of rental rooms needs to  be evaluated.  She indicated the                                                               
board  supported the  legislative fix  to allow  the licenses  to                                                               
continue to operate and to be transferred.                                                                                      
                                                                                                                                
MS. MCCONNELL queried  the intent for the legislation.   She read                                                               
from page 2 line 23 of the proposed bill as followed:                                                                           
                                                                                                                                
     On  and  after the  effective  date  of this  Act,  the                                                                    
     holder  of  a  beverage  dispensary  or  restaurant  or                                                                    
     eating place  license issued under (g)  of this section                                                                    
     as  that  subsection read  on  June  5, 1985,  who  has                                                                    
     continually held  the license until the  effective date                                                                    
     of this Act                                                                                                                
                                                                                                                                
MS.  MCCONNELL  asked specifically  about  the  phrase, "who  has                                                               
continually held the license."                                                                                                  
                                                                                                                                
4:52:59 PM                                                                                                                    
                                                                                                                                
CHAIR KITO replied that he  thought that was something to examine                                                               
as the committee considered the proposed legislation.                                                                           
                                                                                                                                
4:53:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON  asked whether the ambiguity  was in the                                                               
implication  that  the  license  had  to  be  held  by  a  single                                                               
individual  or  that  it  could have  been  transferred  but  the                                                               
license had to be continually used.                                                                                             
                                                                                                                                
MS. MCCONNELL answered  that she would guess the  intent was that                                                               
the license  had to  be continually operated,  not that  the same                                                               
owner had to hold the license.                                                                                                  
                                                                                                                                
4:53:58 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WOOL answered  the intent was that  the license be                                                               
continually operated.   He stated  he thought there was  an issue                                                               
with renewal of  the older licenses which needed  to be addressed                                                               
either with  a Title  4 rewrite  or one  of the  current proposed                                                               
bills.                                                                                                                          
                                                                                                                                
MS. MCCONNELL  answered the concern  in having the board  look at                                                               
the renewals regarded ensuring the  licenses had been transferred                                                               
in the  past in  accordance with  statute.   She added  the board                                                               
hopes the legislature  will solve the problem,  so these licenses                                                               
can move forward in confidence.                                                                                                 
                                                                                                                                
4:56:14 PM                                                                                                                    
                                                                                                                                
CHAIR KITO opened public testimony on HB 301.                                                                                   
                                                                                                                                
4:56:29 PM                                                                                                                    
                                                                                                                                
ALLAN CHOY, Owner, Al's Alaskan Inn,  spoke in support of HB 301.                                                               
He gave  historical background  on the  development of  the hotel                                                               
industry  in  the  Anchorage  area.   He  stated  he  appreciates                                                               
legislative action on HB 301.   He remarked that if hotels had to                                                               
build more  rooms, then they would  be empty, and he  added if he                                                               
didn't have  the bar, then the  hotel would be closed.   He asked                                                               
the legislature to  clearly define and clarify the  intent of the                                                               
issue.                                                                                                                          
                                                                                                                                
5:08:33 PM                                                                                                                    
                                                                                                                                
ARDEN RANKINS,  Owner, Sunrise Inn,  spoke in support of  HB 301.                                                               
She  stated  she owns  the  Sunrise  Inn  in Cooper  Landing  and                                                               
operates with  a tourism license.   She  said she had  bought the                                                               
10-room inn 2 years earlier.   She underlined that Cooper Landing                                                               
had around 275  people year-round, so there was no  way she could                                                               
build  40 more  rooms.   She underlined  the inn  is the  largest                                                               
year-round  employer in  the  community, but  she  would have  to                                                               
close and put 10 people out of  work if the proposed bill did not                                                               
fix the room number issue.   She said she was concerned that AMCO                                                               
changed   how  it   calculates  population.     She   shared  her                                                               
understanding that  the entire Kenai Peninsula  was combined, and                                                               
incorporated cities  were taken  out of  the number,  meaning her                                                               
neighbors were now included with  Cooper Landing's population and                                                               
some of them are 100 miles away.                                                                                                
                                                                                                                                
5:11:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WOOL asked  Ms. Rankins how she  learned about the                                                               
issue.                                                                                                                          
                                                                                                                                
MS. RANKINS answered that she  had been informed through Cabaret,                                                               
Hotel, Restaurant and Retailers Association (CHARR).                                                                            
                                                                                                                                
5:12:40 PM                                                                                                                    
                                                                                                                                
DALE  FOX,  Alaska  Cabaret,   Hotel,  Restaurant  and  Retailers                                                               
Association, Inc.  (Alaska CHARR),  spoke in  support of  HB 301.                                                               
He declared that  he was involved in getting the  1985 law passed                                                               
and that  he regrets it.   He was  the executive director  of the                                                               
Alaska  Visitors  Bureau at  the  time,  and  the intent  was  to                                                               
encourage tourism.   He said he  felt it was a  terrible thing to                                                               
put those 34 licensees in jeopardy.   He stated it was always the                                                               
intent  to   grandfather  in  businesses.     He  encouraged  the                                                               
committee to fix the 1985 law with the proposed legislation.                                                                    
                                                                                                                                
5:15:46 PM                                                                                                                    
                                                                                                                                
SASSAN MOSSANEN, Denali  Brewing Company, spoke in  support of HB                                                               
301.   He  said three  of the  licensees on  the audit  list were                                                               
neighbors.  Due to the size  of the town and lot sizes, Talkeetna                                                               
had a special-use district, which  could prevent the construction                                                               
of 40-room hotels.    He said he thought  seeing tourism licenses                                                               
go away would be a great injustice to those three families.                                                                     
                                                                                                                                
5:17:09 PM                                                                                                                    
                                                                                                                                
CHAIR KITO announced he would hold public testimony open.                                                                       
                                                                                                                                
CHAIR KITO held over HB 301.                                                                                                    
                                                                                                                                
           HB 265-LIQUOR LICENSES; RESTAURANTS/MOTELS                                                                       
                                                                                                                                
5:17:15 PM                                                                                                                    
                                                                                                                                
CHAIR KITO announced that the final  order of business would be a                                                               
return to HOUSE BILL NO. 265,  "An Act relating to the renewal of                                                               
a  license involving  alcoholic  beverages; and  relating to  the                                                               
transfer  or  issuance of  a  beverage  dispensary license  or  a                                                               
restaurant or eating place license."                                                                                            
                                                                                                                                
5:17:38 PM                                                                                                                    
                                                                                                                                
DARRELL  BREESE, Staff,  Representative  George Rauscher,  Alaska                                                               
State Legislature,  presented HB 265 on  behalf of Representative                                                               
Rauscher.   He explained the  proposed bill grandfathered  in all                                                               
licenses from  the time they were  issued.  He added  that of the                                                               
list of 34 licenses that were  in jeopardy, 9 of them were issued                                                               
after 1985  and would still  be in  jeopardy.  The  proposed bill                                                               
would grandfather all  licenses at the number of rooms  it had at                                                               
the time  of licensing.   There  was also a  change for  the club                                                               
licenses, which currently had to be  open for 30 8-hour days each                                                               
calendar year.  With the new  legislation, that would change to a                                                               
cumulative 240 hours in the  calendar year, which could be broken                                                               
up into 2-  or 4-hour blocks.  He stated  club license owners can                                                               
serve alcohol  only to club  members, so allowing them  to adjust                                                               
their  hours to  fit  their needs  would be  useful  as it  would                                                               
prevent them from being penalized at  the time of renewal for not                                                               
meeting the 30 8-hour day requirement.                                                                                          
                                                                                                                                
5:21:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STUTES stated she  was concerned about a statement                                                               
in the previous  presentation saying the intent was  to level the                                                               
playing field between clubs and dispensaries.                                                                                   
                                                                                                                                
MR. BREESE  apologized for  the confusion  and explained  that he                                                               
had  been  referring  to  levelling  the  playing  field  in  the                                                               
roadhouse license issue.   He gave the example of  the Long Rifle                                                               
Lodge, which  has a tourism license  and has 10 rooms.   With the                                                               
law as it  was currently being interpreted, the  lodge would have                                                               
to  have 50  rooms  as the  board was  looking  at the  Matanuska                                                               
population as  a whole.   The proposed bill created  the language                                                               
for  a  roadhouse license  requiring  only  10  rooms.   The  new                                                               
language  would also  enable a  new business  across the  highway                                                               
from the  Long Rifle Lodge to  "make a go  of it" if it  can meet                                                               
the requirement  of 10 rooms.   He  explained that was  where the                                                               
playing field would be levelled.                                                                                                
                                                                                                                                
REPRESENTATIVE STUTES surmised the intent  was that the new lodge                                                               
would have  their licenses  issued under  the same  conditions as                                                               
"the guy across the street."                                                                                                    
                                                                                                                                
MR. BREESE replied in the affirmative.                                                                                          
                                                                                                                                
5:23:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  WOOL  asked  whether   HB  301  would  allow  the                                                               
hypothetical new lodge to have fewer than 50 rooms.                                                                             
                                                                                                                                
5:24:41 PM                                                                                                                    
                                                                                                                                
MR.   BREESE  explained   the  proposed   bill's  definition   of                                                               
roadhouses  was those  located 25  miles outside  an incorporated                                                               
city or  unified borough and  on a  national scenic byway.   This                                                               
would include  Seward Highway, Parks  Highway, Glen  Highway, and                                                               
Richardson Highway, which were all  codified in national law.  He                                                               
stated the Long Rifle Lodge  was located 46 miles outside Palmer,                                                               
adding it was  in the Matanuska-Susitna borough,  but the borough                                                               
was not a unified borough.                                                                                                      
                                                                                                                                
5:25:55 PM                                                                                                                    
                                                                                                                                
CHAIR KITO offered  that the Alaska Marine  Highway System (AMHS)                                                               
was  also  considered a  scenic  byway.    He  asked how  it  was                                                               
affected by HB 301.                                                                                                             
                                                                                                                                
5:26:13 PM                                                                                                                    
                                                                                                                                
MR. BREESE  answered the national  scenic byway started  once one                                                               
left  port and  there was  no  way for  someone to  build in  the                                                               
water.   He added that  Haines Highway  was also on  the national                                                               
scenic byway  list but was  within the unified borough  of Haines                                                               
and therefore construction would not be allowed.                                                                                
                                                                                                                                
5:26:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KNOPP asked why  the proposed legislation exempted                                                               
unified boroughs.                                                                                                               
                                                                                                                                
MR.  BREESE answered  it was  because unified  boroughs generally                                                               
had a  single seat  of government  and it did  not make  sense to                                                               
include  them, because  the city  boundaries  were typically  the                                                               
same as the unified borough.                                                                                                    
                                                                                                                                
5:27:27 PM                                                                                                                    
                                                                                                                                
CHAIR KITO said he would open  public testimony on HB 265 but not                                                               
hear testimony as  the meeting had to adjourn.   He said he would                                                               
leave public testimony open.                                                                                                    
                                                                                                                                
CHAIR KITO held over HB 265.                                                                                                    
                                                                                                                                
5:28:43 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Labor and  Commerce Standing Committee  meeting was  adjourned at                                                               
5:28 p.m.                                                                                                                       

Document Name Date/Time Subjects
HB299 Sponsor Statement 1.29.18.pdf HL&C 1/31/2018 3:15:00 PM
HB 299
HB299 ver A 1.31.18.PDF HL&C 1/31/2018 3:15:00 PM
HB 299
HB299 Supporting Document Audit 11.17.17.pdf HL&C 1/31/2018 3:15:00 PM
HB 299
HB299 Fiscal Note DCCED AMCO 1.27.18.pdf HL&C 1/31/2018 3:15:00 PM
HB 299
HB301 Sponsor Statement 1.24.18.pdf HL&C 1/31/2018 3:15:00 PM
HB 301
HB301 Supporting Documents ABC Memo Tourism BDL 9.13.17.pdf HL&C 1/31/2018 3:15:00 PM
HB 301
HB301 Ver D 1.31.18.PDF HL&C 1/31/2018 3:15:00 PM
HB 301
HB265 Fiscal Note DCCED AMCO 1.25.18.pdf HL&C 1/31/2018 3:15:00 PM
HB 265
HB265 Version D 1.31.18.PDF HL&C 1/31/2018 3:15:00 PM
HB 265
HB301 Fiscal Note DCCED AMCO 1.26.18.pdf HL&C 1/31/2018 3:15:00 PM
HB 301
HB265 Explanation of Changes.pdf HL&C 1/31/2018 3:15:00 PM
HB 265
HB265 Sponsor Statement.pdf HL&C 1/31/2018 3:15:00 PM
HB 265
HB301 Support Letters 1.31.18.pdf HL&C 1/31/2018 3:15:00 PM
HB 301