Legislature(2017 - 2018)BARNES 124

05/02/2018 03:15 PM LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 86 ALASKA RAILROAD CORP: LAND;BONDS,FINANCE TELECONFERENCED
Heard & Held
-- Public Testimony --
+ SB 76 ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG TELECONFERENCED
Heard & Held
-- Public Testimony --
                    ALASKA STATE LEGISLATURE                                                                                  
          HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                         
                          May 2, 2018                                                                                           
                           3:16 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                                                                                                            
                                                                                                                                
CS FOR SENATE BILL NO. 86(FIN) AM                                                                                               
"An  Act relating  to the  sale  or other  disposal, leasing,  or                                                               
encumbrance of Alaska Railroad Corporation  land; relating to the                                                               
financing   and  bonding   authority  of   the  Alaska   Railroad                                                               
Corporation; and providing for an effective date."                                                                              
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
CS FOR SS FOR SENATE BILL NO. 76(FIN)                                                                                           
"An  Act  relating  to  alcoholic   beverages;  relating  to  the                                                               
regulation of  manufacturers, wholesalers, retailers,  and common                                                               
carriers   of   alcoholic   beverages;  relating   to   licenses,                                                               
endorsements,   and   permits  involving   alcoholic   beverages;                                                               
relating  to the  Alcoholic Beverage  Control Board;  relating to                                                               
offenses  involving  alcoholic  beverages; amending  Rule  17(h),                                                               
Alaska Rules  of Minor  Offense Procedure;  and providing  for an                                                               
effective date."                                                                                                                
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB  86                                                                                                                  
SHORT TITLE: ALASKA RAILROAD CORP: LAND;BONDS,FINANCE                                                                           
SPONSOR(s): SENATOR(s) COGHILL                                                                                                  
                                                                                                                                
03/10/17       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/10/17       (S)       RES, FIN                                                                                               
04/07/17       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
04/07/17       (S)       Heard & Held                                                                                           
04/07/17       (S)       MINUTE(RES)                                                                                            
02/09/18       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
02/09/18       (S)       Heard & Held                                                                                           
02/09/18       (S)       MINUTE(RES)                                                                                            
02/12/18       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
02/12/18       (S)       Moved CSSB 86(RES) Out of Committee                                                                    
02/12/18       (S)       MINUTE(RES)                                                                                            
02/14/18       (S)       RES RPT CS  3DP 3NR 1AM  SAME TITLE                                                                    
02/14/18       (S)       DP: GIESSEL, COGHILL, MEYER                                                                            
02/14/18       (S)       NR: BISHOP, VON IMHOF, STEDMAN                                                                         
02/14/18       (S)       AM: WIELECHOWSKI                                                                                       
03/05/18       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
03/05/18       (S)       Heard & Held                                                                                           
03/05/18       (S)       MINUTE(FIN)                                                                                            
03/27/18       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
03/27/18       (S)       Moved CSSB 86(FIN) Out of Committee                                                                    
03/27/18       (S)       MINUTE(FIN)                                                                                            
03/28/18       (S)       FIN RPT CS  6DP 1NR   NEW TITLE                                                                        
03/28/18       (S)       DP: HOFFMAN, MACKINNON, BISHOP, VON                                                                    
                         IMHOF, STEVENS, MICCICHE                                                                               
03/28/18       (S)       NR: OLSON                                                                                              
04/09/18       (S)       TRANSMITTED TO (H)                                                                                     
04/09/18       (S)       VERSION: CSSB 86(FIN) AM                                                                               
04/11/18       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/11/18       (H)       L&C, FIN                                                                                               
04/16/18       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/16/18       (H)       -- MEETING CANCELED --                                                                                 
05/02/18       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
BILL: SB  76                                                                                                                  
SHORT TITLE: ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG                                                                            
SPONSOR(s): SENATOR(s) MICCICHE                                                                                                 
                                                                                                                                
03/03/17       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/03/17       (S)       L&C, JUD                                                                                               
05/11/17       (S)       SPONSOR SUBSTITUTE INTRODUCED-REFERRALS                                                                
05/11/17       (S)       L&C, JUD                                                                                               
03/13/18       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/13/18       (S)       Heard & Held                                                                                           
03/13/18       (S)       MINUTE(L&C)                                                                                            
03/15/18       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/15/18       (S)       Heard & Held                                                                                           
03/15/18       (S)       MINUTE(L&C)                                                                                            
03/20/18       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/20/18       (S)       Heard & Held                                                                                           
03/20/18       (S)       MINUTE(L&C)                                                                                            
03/22/18       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/22/18       (S)       Heard & Held                                                                                           
03/22/18       (S)       MINUTE(L&C)                                                                                            
04/03/18       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/03/18       (S)       Moved CSSSSB 76(L&C) Out of Committee                                                                  
04/03/18       (S)       MINUTE(L&C)                                                                                            
04/06/18       (S)       L&C RPT CS  2DP 1NR 1AM   SAME TITLE                                                                   
04/06/18       (S)       NR: COSTELLO                                                                                           
04/06/18       (S)       DP: MICCICHE, MEYER                                                                                    
04/06/18       (S)       AM: GARDNER                                                                                            
04/11/18       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/11/18       (S)       Heard & Held                                                                                           
04/11/18       (S)       MINUTE(JUD)                                                                                            
04/13/18       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/13/18       (S)       FEDS RESPECT STATE REG OF MARIJUANA                                                                    
04/14/18       (S)       JUD RPT CS  1DP 1NR 2AM    NEW TITLE                                                                   
04/14/18       (S)       DP: COGHILL                                                                                            
04/14/18       (S)       NR: WIELECHOWSKI                                                                                       
04/14/18       (S)       AM: COSTELLO, SHOWER                                                                                   
04/14/18       (S)       FIN REFERRAL ADDED AFTER JUD                                                                           
04/14/18       (S)       JUD AT 9:00 AM BELTZ 105 (TSBldg)                                                                      
04/14/18       (S)       Moved CSSSSB 76(JUD) Out of Committee                                                                  
04/14/18       (S)       MINUTE(JUD)                                                                                            
04/17/18       (S)       FIN AT 1:30 PM SENATE FINANCE 532                                                                      
04/17/18       (S)       Heard & Held                                                                                           
04/17/18       (S)       MINUTE(FIN)                                                                                            
04/27/18       (S)       FIN AT 1:30 PM SENATE FINANCE 532                                                                      
04/27/18       (S)       Heard & Held                                                                                           
04/27/18       (S)       MINUTE(FIN)                                                                                            
04/30/18       (S)       FIN RPT CS  4DP 3NR   NEW TITLE                                                                        
04/30/18       (S)       NR: HOFFMAN, MACKINNON, OLSON                                                                          
04/30/18       (S)       DP:   BISHOP,    VON   IMHOF,   STEVENS,                                                               
                         MICCICHE                                                                                               
04/30/18       (S)       TRANSMITTED TO (H)                                                                                     
04/30/18       (S)       VERSION: CSSSSB 76(FIN)                                                                                
04/30/18       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
04/30/18       (S)       Moved CSSSSB 76(FIN) Out of Committee                                                                  
04/30/18       (S)       MINUTE(FIN)                                                                                            
05/01/18       (H)       READ THE FIRST TIME - REFERRALS                                                                        
05/01/18       (H)       L&C, FIN                                                                                               
05/02/18       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
SENATOR JOHN COGHILL                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented SB 86 as the sponsor of the bill.                                                              
                                                                                                                                
RYNNIEVA MOSS, Staff                                                                                                            
Senator John Coghill                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions on behalf of the SB 86                                                                
bill sponsor, Senator Coghill.                                                                                                  
                                                                                                                                
CRYSTAL KOENEMAN, Staff                                                                                                         
Representative Sam Kito                                                                                                         
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented the proposed committee substitute                                                              
to SB 86, Version N, on behalf of the committee chair,                                                                          
Representative Kito.                                                                                                            
                                                                                                                                
REPRESENTATIVE CHUCK KOPP                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions during discussion of the                                                              
proposed committee substitute to SB 86 Version N.                                                                               
                                                                                                                                
WILLIAM O'LEARY, President & CEO                                                                                                
Alaska Railroad Corporation                                                                                                     
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions during discussion of SB                                                               
86.                                                                                                                             
                                                                                                                                
ANDY BEHREND, Chief Counsel                                                                                                     
Alaska Railroad Corporation                                                                                                     
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions during discussion of SB                                                               
86.                                                                                                                             
                                                                                                                                
CURTIS MCQUEEN, CEO                                                                                                             
Eklutna Inc.                                                                                                                    
Eagle River, Alaska                                                                                                             
POSITION STATEMENT:  Testified in support of SB 86.                                                                           
                                                                                                                                
FRED ROSENBERG                                                                                                                  
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of SB 86.                                                                           
                                                                                                                                
JODI TAYLOR                                                                                                                     
Church of Jesus Christ of Latter-Day Saints                                                                                     
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of SB 86.                                                                           
                                                                                                                                
RACHEL HANKE, Staff                                                                                                             
Senator Peter Micciche                                                                                                          
Alaska State Legislature                                                                                                        
Alaska State Legislature                                                                                                        
POSITION STATEMENT:  Presented the changes to SB 76 on behalf of                                                              
the bill sponsor, Senator Micciche.                                                                                             
                                                                                                                                
ANNA BRAWLEY, Coordinator                                                                                                       
Title 4 Review Project                                                                                                          
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified during discussion of SB 76.                                                                    
                                                                                                                                
TIFFANY HALL, Executive Director                                                                                                
Recover Alaska                                                                                                                  
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in support of SB 76.                                                                           
                                                                                                                                
DALE FOX, President                                                                                                             
Alaska Cabaret, Hotel, Restaurant and Retailers Association                                                                     
(CHARR)                                                                                                                         
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of SB 76.                                                                           
                                                                                                                                
CHRYSTAL SHOENROCK, Secretary                                                                                                   
Kenai Peninsula CHARR                                                                                                           
Nikiski, Alaska                                                                                                                 
POSITION STATEMENT:  Testified during discussion of SB 76.                                                                    
                                                                                                                                
DARWIN BIWER                                                                                                                    
Darwin's Theory                                                                                                                 
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of SB 76.                                                                           
                                                                                                                                
JEANNE REILLY                                                                                                                   
Reilly's Irish Pub                                                                                                              
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified during discussion of SB 76.                                                                    
                                                                                                                                
ABBY WILLIAMS, Co-Owner                                                                                                         
Louie's Douglas Inn                                                                                                             
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during discussion of SB 76.                                                                    
                                                                                                                                
GEORGE TIPTON                                                                                                                   
My Office                                                                                                                       
Ketchikan, Alaska                                                                                                               
POSITION STATEMENT:  Testified during discussion of SB 76.                                                                    
                                                                                                                                
ARDEN RANKIN                                                                                                                    
Sunrise Inn                                                                                                                     
Cooper Landing, Alaska                                                                                                          
POSITION STATEMENT:  Testified during discussion of SB 76.                                                                    
                                                                                                                                
DAVID CALDWELL                                                                                                                  
Moose's Tooth, Bear Tooth, and Broken Tooth                                                                                     
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support.                                                                                    
                                                                                                                                
RYAN MAKINSTER, Executive Director                                                                                              
Brewers Guild of Alaska                                                                                                         
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified during discussion of SB 76.                                                                    
                                                                                                                                
JOEL KADARAUCH, Director                                                                                                        
Alaska Beer, Wine, and Spirits Wholesalers Association                                                                          
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified during discussion of SB 76.                                                                    
                                                                                                                                
LARRY HACKENMILLER, General Manager                                                                                             
CHARR Interior                                                                                                                  
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified during discussion of SB 76.                                                                    
                                                                                                                                
ROB BORLAND                                                                                                                     
Ursa Major Distilling                                                                                                           
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified during discussion of SB 76.                                                                    
                                                                                                                                
ERIC FORST, Partner                                                                                                             
Red Dog Saloon                                                                                                                  
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during discussion of SB 76.                                                                    
                                                                                                                                
JACK MANNING, Owner                                                                                                             
Duck Creek Market                                                                                                               
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during discussion of SB 76.                                                                    
                                                                                                                                
RAY KAISER                                                                                                                      
Squires Rest                                                                                                                    
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in support of SB 76.                                                                           
                                                                                                                                
MARK ERICKSON, Owner                                                                                                            
Lucky Lady Pub                                                                                                                  
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during discussion of SB 76.                                                                    
                                                                                                                                
CHARLIE HERRINGTON                                                                                                              
Juneau's Waterfront Restaurants                                                                                                 
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during discussion of SB 76.                                                                    
                                                                                                                                
REECIA WILSON, Owner                                                                                                            
Hanger on the Wharf                                                                                                             
Twisted Fish Company                                                                                                            
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during discussion of SB 76.                                                                    
                                                                                                                                
PAUL THOMAS, Owner                                                                                                              
Alaska Cache Liquor                                                                                                             
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during discussion of SB 76.                                                                    
                                                                                                                                
TOM MANNING, Owner                                                                                                              
Duck Creek Market                                                                                                               
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during discussion of SB 76.                                                                    
                                                                                                                                
LEANN THOMAS                                                                                                                    
Triangle Club                                                                                                                   
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during discussion of SB 76.                                                                    
                                                                                                                                
PETE THIBODEAU, Owner                                                                                                           
Thibodeau's Market, Inc.                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during discussion of SB 76.                                                                    
                                                                                                                                
CHRIS MIEIER                                                                                                                    
Alaska Travel Adventures                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during discussion of SB 76.                                                                    
                                                                                                                                
JARED CURE                                                                                                                      
The Narrows Bar                                                                                                                 
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during discussion of SB 76.                                                                    
                                                                                                                                
BRANDON HOWARD, Owner/Founder                                                                                                   
Amalga Distillery                                                                                                               
Representative                                                                                                                  
Distillery Guild of Alaska                                                                                                      
POSITION STATEMENT:  Testified in support of SB 76.                                                                           
                                                                                                                                
DIANE KAPLAN, President, CEO                                                                                                    
Rasmussen Foundation                                                                                                            
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of SB 76.                                                                           
                                                                                                                                
HEATHER SHADE                                                                                                                   
Port Chilkoot Distillery                                                                                                        
Haines, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in support of SB 76.                                                                           
                                                                                                                                
ROBIN MINARD, Director                                                                                                          
Public Affairs                                                                                                                  
Mat-Su Health Foundation                                                                                                        
Wasilla, Alaska                                                                                                                 
POSITION STATEMENT:  Testified in support of SB 76.                                                                           
                                                                                                                                
DICK ROSSTON                                                                                                                    
Alyeska Resort                                                                                                                  
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of SB 76.                                                                           
                                                                                                                                
ALISON KULAS                                                                                                                    
Division of Behavioral Health                                                                                                   
Department of Health and Social Services                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in support of SB 76.                                                                           
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:16:11 PM                                                                                                                    
                                                                                                                                
CHAIR  SAM KITO  called  the House  Labor  and Commerce  Standing                                                             
Committee meeting  to order at  3:16 p.m.   Representatives Kito,                                                               
Wool, Josephson,  Stutes, Birch,  and Knopp  were present  at the                                                               
call to  order.  Representative  Sullivan-Leonard arrived  as the                                                               
meeting was in progress.                                                                                                        
                                                                                                                                
         SB 86-ALASKA RAILROAD CORP: LAND;BONDS,FINANCE                                                                     
                                                                                                                              
3:17:04 PM                                                                                                                    
                                                                                                                                
CHAIR KITO  announced that the  first order of business  would be                                                               
CS FOR SENATE  BILL NO. 86(FIN) am, "An Act  relating to the sale                                                               
or  other disposal,  leasing, or  encumbrance of  Alaska Railroad                                                               
Corporation  land;   relating  to   the  financing   and  bonding                                                               
authority of  the Alaska Railroad Corporation;  and providing for                                                               
an effective date."                                                                                                             
                                                                                                                                
3:17:33 PM                                                                                                                    
                                                                                                                                
SENATOR JOHN COGHILL, Alaska  State Legislature, paraphrased from                                                               
the sponsor  statement [included  in member packet],  which reads                                                               
as follows [original punctuation provided]:                                                                                     
                                                                                                                                
     SB 86  repeals the current requirement  for legislative                                                                    
     approval  prior  to   an  Alaska  Railroad  Corporation                                                                    
     (ARRC) land sale  or land lease for more  than 95 years                                                                    
     and enables  the ARRC  to react  much more  quickly and                                                                    
     efficiently  to  real  estate  opportunities  and  land                                                                    
     transactions  with state  entities  such  as DOTPF  for                                                                    
     state road and facility projects.                                                                                          
                                                                                                                                
     SB 86 will  put ARRC on an even playing  field with the                                                                    
     Department  of  Transportation  and  Public  Facilities                                                                    
     (DOTPF),  the Department  of  Natural Resources  (DNR),                                                                    
     the  Alaska   Mental  Health   Lands  Trust,   and  the                                                                    
     University of Alaska.                                                                                                      
                                                                                                                                
     The  bill  would enable  ARRC  to  sell land  on  which                                                                    
     development would not  occur with a land  lease such as                                                                    
     real  estate   in  residential  areas  that   could  be                                                                    
     subdivided  for home  construction.  Such an  incentive                                                                    
     could  increase   private  land   ownership,  encourage                                                                    
     private development, and increase the local tax base.                                                                      
                                                                                                                                
     SB 86  will allow ARRC to  monetize non-performing land                                                                    
     assets, generate cash flow  to respond to opportunities                                                                    
     in  the real  estate market,  enhance the  overall real                                                                    
     estate portfolio  of ARRC, and enable  ARRC to continue                                                                    
     to comply  with the  statutory mandate to  remain self-                                                                    
     sufficient.                                                                                                                
                                                                                                                                
     SB 86 has a three-year sunset provision.                                                                                   
                                                                                                                                
3:22:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOSEPHSON asked  about  a  legal opinion  stating                                                               
there is no constitutional problem  with the bill except that any                                                               
funds received  by the  railroad have to  be appropriated  to the                                                               
railroad.                                                                                                                       
                                                                                                                                
SENATOR  COGHILL replied  that the  question of  appropriation is                                                               
unsettled.  He deferred to his staff to present the citation.                                                                   
                                                                                                                                
3:25:04 PM                                                                                                                    
                                                                                                                                
RYNNIEVA  MOSS,   Staff,  Senator  John  Coghill,   Alaska  State                                                               
Legislature,  said there  is  a provision  in  Public Law  97468,                                                               
January  14, 1983,  that states  that revenues  generated by  the                                                               
state-owned  railroad  shall  be  retained  and  managed  by  the                                                               
railroad  for railroad  and  related purposes.    She added  that                                                               
Senator Stevens  had specified on  the record that  the provision                                                               
is in  public law to  eliminate the necessity to  appropriate the                                                               
money to the railroad.                                                                                                          
                                                                                                                                
3:25:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  WOOL  moved  to   adopt  the  proposed  committee                                                               
substitute (CS) for CSSB 86 as the working draft.                                                                               
                                                                                                                                
3:26:06 PM                                                                                                                    
                                                                                                                                
CHAIR KITO objected for the purpose of discussion.                                                                              
                                                                                                                                
3:26:18 PM                                                                                                                    
                                                                                                                                
CRYSTAL KOENEMAN,  Staff, Representative  Sam Kito,  Alaska State                                                               
Legislature, paraphrased the explanation  of changes, Senate Bill                                                               
86, Version U.A  to Version N [included in  member packet], which                                                               
reads as follows [original punctuation provided]:                                                                               
                                                                                                                                
     Adds a  new subsection to 42.40.350  that prohibits the                                                                    
     Alaska  Railroad  Corporation  to  exercise  management                                                                    
     authority over lands  which were unlawfully transferred                                                                    
     in violation of state law.                                                                                                 
                                                                                                                                
     Adds a  new subsection  42.40.410 that states  that any                                                                    
     land   or  interest   in  land   the  Alaska   Railroad                                                                    
     Corporation received  from the  U.S. Department  of the                                                                    
     Interior that was not conclusively  owned by the United                                                                    
     States at  the time  of transfer  does not  satisfy the                                                                    
     exception from  legislative approval required  under AS                                                                    
     42.40.285.                                                                                                                 
                                                                                                                                
      Provides for Legislative Approval of the transfer of                                                                      
     Real Property to Eklutna, Inc. and the Municipality of                                                                     
     Anchorage.                                                                                                                 
                                                                                                                                
     All other provision in version U.A have been removed.                                                                      
                                                                                                                                
CHAIR KITO explained that the  transfer language is in Sections 4                                                               
and 5.  He called on  Representative Kopp for a brief explanation                                                               
of Sections 1, 2, and 3.                                                                                                        
                                                                                                                                
3:28:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CHUCK KOPP,  Alaska State  Legislature, said  the                                                               
aim  of the  proposed changes  is to  clarify the  rights of  the                                                               
Alaska Railroad Corporation over the  right of way and to prevent                                                               
the  ARRC  from  exerting  perceived  authority  to  continue  to                                                               
purchase private property in violation  of federal and state law.                                                               
He  said there  is no  railroad corporation  property transferred                                                               
from federal  or state  ownership which will  be affected  by the                                                               
amendments.  He  pointed to Section 2, AS 42.40.350,  and said it                                                               
uses the phrase "to not have  authority over real property.   The                                                               
railroad corporation  is given its  authority in state law.   The                                                               
amendment  clarifies  that the  authority  does  not include  the                                                               
ability  to   take  action  on   or  otherwise   manage  property                                                               
unlawfully  obtained.    He  added   that  the  amendment  to  AS                                                               
42.40.410  uses the  term "conclusively  owned", which  means any                                                               
individual  parcel's chain  of title  clearly states  the federal                                                               
government was  the owner of the  title or interest at  the time,                                                               
and  as  stated  by  the  ARRC, each  parcel  would  have  to  be                                                               
individually examined  to determine  what the  federal government                                                               
owned  when it  transferred rail  properties which  only included                                                               
the  right,  title,  and  interest   in  those  properties  which                                                               
belonged to  the federal  government.  If  it becomes  clear that                                                               
the ARRC is  only in possession of the federal  interest in those                                                               
parcels of  land, then the amendments  would have no effect.   He                                                               
referenced a letter  from Congressman Don Young in  which he said                                                               
there is  no way  that a bill  quietly annexing  private property                                                               
rights would have passed the Congress in 1982.                                                                                  
                                                                                                                                
3:32:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON asked  about page 2, line 30  of the CS.                                                               
He asked what the statute  of limitations is on the determination                                                               
of ownership.                                                                                                                   
                                                                                                                                
REPRESENTATIVE  KOPP replied  that regardless  of the  statute of                                                               
limitations,  if  an  unlawful  taking  occurred,  it  cannot  be                                                               
unconstitutional to attempt to right  it.  He said the discussion                                                               
arose more recently  when the ARRC has claimed an  interest.  The                                                               
homesteaders were  never notified  and there  was no  question of                                                               
whether they owned the land.                                                                                                    
                                                                                                                                
REPRESENTATIVE   JOSEPHSON  asked   whether  anything   could  be                                                               
construed to imply  that [if there was] a failure  of the federal                                                               
government  to afford  due process  for  any claims  in the  mid-                                                               
1980s, the costs of any  prospective litigation would fall on the                                                               
state or on the ARRC.                                                                                                           
                                                                                                                                
3:35:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KOPP  answered  the  query  highlights  the  most                                                               
important  reason  for  the  CS.   He  said  the  proposal  gives                                                               
direction to the ARRC to  ascertain what the federal interest was                                                               
at the time  of the transfer.   He said he sees  the state liable                                                               
only if it takes no action.                                                                                                     
                                                                                                                                
REPRESENTATIVE JOSEPHSON  spoke to the concern  over 30,000 acres                                                               
in the  Fairbanks, Alaska, area.   He asked whether  the concerns                                                               
 overlap with the sites of the lands in question.                                                                               
                                                                                                                                
REPRESENTATIVE  KOPP answered  that  he fully  supports the  ARRC                                                               
sale of  the two land  parcels.  He said  he does not  know where                                                               
the "30,000  acres" comes from.   He stated the  resolution spoke                                                               
to  the claims  to  the right-of-way  that  was across  homestead                                                               
property.   He  explained the  federal government  has completely                                                               
divested itself of  all ownership in the land and  had not issued                                                               
two  homestead  patents but  left  it  as  one homestead  with  a                                                               
standard easement.   The reading  is that the ARRC  only received                                                               
what the federal interest was, and it was on public lands.                                                                      
                                                                                                                                
3:39:17 PM                                                                                                                    
                                                                                                                                
CHAIR KITO removed his objection.                                                                                               
                                                                                                                                
3:39:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON objected.                                                                                              
                                                                                                                                
3:39:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SULLIVAN-LEONARD maintained her objection.                                                                       
                                                                                                                                
3:40:03 PM                                                                                                                    
                                                                                                                                
WILLIAM  O'LEARY, President  & CEO,  Alaska Railroad  Corporation                                                               
(ARRC), said the  ARRC has objections to the language  in the CS.                                                               
He stated that  if there were an erroneous  transfer, the federal                                                               
government  should bear  the  burden.   He  said  the concept  of                                                               
restitution from  the federal government  is very  different from                                                               
creating a patchwork quilt of land use rights across the state.                                                                 
                                                                                                                                
3:43:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON asked  what part of the  language in the                                                               
CS would shift the burden.                                                                                                      
                                                                                                                                
MR.  O'LEARY said  it is  in  Section 2.   He  deferred to  legal                                                               
counsel for a better description.                                                                                               
                                                                                                                                
3:44:18 PM                                                                                                                    
                                                                                                                                
ANDY BEHREND, Chief Counsel,  Alaska Railroad Corporation (ARRC),                                                               
answered the  language is in  Sections 2  and 3 does  concern the                                                               
ARRC.  He said  in the event of a transfer  of a federal interest                                                               
that was  greater than what they  owned at the time,  the typical                                                               
approach would be a claim in  federal court for compensation.  He                                                               
said the  language would take  rights that were in  the agreement                                                               
since 1985 for  95 percent of the right-of-way that  have been in                                                               
the patent for 10  to 30 years.  He said  the language would tell                                                               
the railroad it can no longer claim those rights.                                                                               
                                                                                                                                
3:47:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE BIRCH disclosed he  previously worked closely with                                                               
Mr.  O'Leary.  He  asked  if  the  railroad  had  undertaken  any                                                               
initiative   to  shore   up  any   property  interested   in  the                                                               
intervening years.                                                                                                              
                                                                                                                                
MR.  BEHREND explained  the first  thing that  happened with  the                                                               
transfer  occurred was  that the  federal government  transferred                                                               
all of  its interests.   Afterwards,  for any  land that  had not                                                               
been  fully  surveyed,  surveys were  completed,  and  the  final                                                               
patents  were  issued.  He  added  that the  U.S.  Dept.  of  the                                                               
Interior, Interior  Board of  Land Appeals  (IBLA) looked  at the                                                               
transfer act and determined that  the Division of Land Management                                                               
(DLM) had followed that act.                                                                                                    
                                                                                                                                
3:51:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE BIRCH  asked if the railroad  asserted an interest                                                               
in  property if  the government  did not  own it  at the  time of                                                               
transfer.                                                                                                                       
                                                                                                                                
MR.  BEHREND answered  in the  affirmative.   He  added that  the                                                               
federal government  transferred all of  the interest to  the ARRC                                                               
for each parcel in the right-of-way.   He said that if there were                                                               
mistakes  in transferring  any of  the land,  the interest  still                                                               
passed  to  the ARRC  and  was  put into  the  patent.   If  that                                                               
happened, then it constitutes a  taking by the federal government                                                               
which should be addressed with them.                                                                                            
                                                                                                                                
3:54:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON said  it sounded like the  ARRC enjoys a                                                               
strong  presumption under  federal law  that in  the event  of an                                                               
improper transfer, the railroad is  insulated from liability.  He                                                               
suggested  Sections 2  and  3  act to  attenuate  the "shield  of                                                               
protection"  and potentially  foist [liability]  on the  railroad                                                               
directly.                                                                                                                       
                                                                                                                                
MR. BEHREND  said he thinks  that is an  accurate way to  put it.                                                               
He  said that  the act  contains  an express  guarantee that  the                                                               
federal  government  would defend  any  challenge.  He added  the                                                               
language in the  proposed bill says the  railroad cannot exercise                                                               
authority over the land.                                                                                                        
                                                                                                                                
3:57:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WOOL asked whether the  ARRC would like to see the                                                               
projects move forward.                                                                                                          
                                                                                                                                
MR. O'LEARY said the projects are both very good.                                                                               
                                                                                                                                
3:57:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STUTES  asked  if  the  property  would  be  sold                                                               
outright or partner with whatever development takes place.                                                                      
                                                                                                                                
MR.  O'LEARY explained  the  sales would  be  outright and  there                                                               
would be a land trade with Eklutna [Inc.].                                                                                      
                                                                                                                                
REPRESENTATIVE STUTES  asked if  there is an  anticipated project                                                               
that would be funded through the proceeds.                                                                                      
                                                                                                                                
MR. O'LEARY  said funds from land  sales are used for  other real                                                               
estate activities  such as improving  access and water  and sewer                                                               
improvements, and not for rail operations.                                                                                      
                                                                                                                                
REPRESENTATIVE STUTES said it sounds  like the ARRC will become a                                                               
real estate holding company.                                                                                                    
                                                                                                                                
MR. O'LEARY said the ARRC is  still an operating entity.  He said                                                               
the decision was a wise one  and real estate activities provide a                                                               
significant buffer for other operations.                                                                                        
                                                                                                                                
4:00:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON asked whether  the railroad would rather                                                               
have the bill with or without the language in question.                                                                         
                                                                                                                                
MR. O'LEARY answered  the ARRC would like to  see the legislation                                                               
move forward.                                                                                                                   
                                                                                                                                
4:01:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON removed his objection.                                                                                 
                                                                                                                                
REPRESENTATIVE SULLIVAN-LEONARD maintained her objection.                                                                       
                                                                                                                                
4:01:32 PM                                                                                                                    
                                                                                                                                
A  roll call  vote  was taken.    Representatives Knopp,  Stutes,                                                               
Wool, Birch,  and Kito  voted in favor  of adopting  the proposed                                                               
committee  substitute (CS)  for  CSSB 86  as  the working  draft.                                                               
Representatives Sullivan-Leonard and  Josephson voted against it.                                                               
Therefore, Version N  was adopted as the working draft  by a vote                                                               
of 5-2.                                                                                                                         
                                                                                                                                
4:02:14 PM                                                                                                                    
                                                                                                                                
CHAIR KITO opened public testimony on SB 86.                                                                                    
                                                                                                                                
4:02:27 PM                                                                                                                    
                                                                                                                                
CURTIS MCQUEEN,  CEO, Eklutna  Inc., testified  in support  of SB                                                               
86.   He gave the background  of his corporation.   He stated the                                                               
Alaska railroad goes through Eklutna lands.   He said they have a                                                               
longstanding relationship with the  railroad. He said the Eklutna                                                               
corporation represents the traditional  village of Anchorage.  He                                                               
stated they recognize how crucial  the railroad is to the economy                                                               
of the  area.  He  stated the Eklutna  corporation owns a  lot of                                                               
property in the  area and it appreciates the ARRC's  support.  He                                                               
stated Eklutna, Inc. owns property  that would be made contiguous                                                               
through the proposal.  He said  it is thought appropriate to have                                                               
a "trial run"  of three years to give the  ARRC an opportunity to                                                               
try.                                                                                                                            
                                                                                                                                
4:05:56 PM                                                                                                                    
                                                                                                                                
FRED ROSENBERG said he is a  property owner who has property near                                                               
the railroad.   He said it  appears the ARRC has  been supporting                                                               
the idea  of going to  court.  He  said he does  not see it  as a                                                               
court issue.  He said  under Alaska Railroad Transfer Act (ARTA),                                                               
the  ARRC  has  a  federal  interest in  the  right-of-way.    He                                                               
referred  to  the  letter  from Congressman  Young.    He  stated                                                               
federal interest  does not include  private rights. He  stated it                                                               
was a  specious argument to  suggest that the government  has any                                                               
right to  do so.   If the  government did not  own it,  it cannot                                                               
transfer it.                                                                                                                    
                                                                                                                                
4:08:42 PM                                                                                                                    
                                                                                                                                
JODI TAYLOR, Church of Jesus  Christ of Latter-Day Saints, stated                                                               
the church has owned property  in Willow, Alaska, for many years.                                                               
She said the issue has cut them  off from the other part of their                                                               
property.   She  stated adoption  of the  proposed language  is a                                                               
win-win.                                                                                                                        
                                                                                                                                
4:09:52 PM                                                                                                                    
                                                                                                                                
CHAIR KITO held over SB 86.                                                                                                     
                                                                                                                                
         SB 76-ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG                                                                      
                                                                                                                                
4:10:24 PM                                                                                                                    
                                                                                                                                
CHAIR KITO  announced that the  final order of business  would be                                                               
CS FOR  SPONSOR SUBSTITUTE FOR  SENATE BILL NO. 76(FIN),  "An Act                                                               
relating to  alcoholic beverages;  relating to the  regulation of                                                               
manufacturers,  wholesalers, retailers,  and  common carriers  of                                                               
alcoholic  beverages;  relating  to licenses,  endorsements,  and                                                               
permits involving alcoholic beverages;  relating to the Alcoholic                                                               
Beverage Control Board; relating  to offenses involving alcoholic                                                               
beverages; amending Rule 17(h), Alaska Rules of Minor Offense                                                                   
Procedure; and providing for an effective date."                                                                                
                                                                                                                                
4:10:31 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 4:10 p.m. to 4:15 p.m.                                                                       
                                                                                                                                
4:16:35 PM                                                                                                                    
                                                                                                                                
RACHEL  HANKE, Staff,  Senator Peter  Micciche, paraphrased  from                                                               
the explanation of  changes, Version N to Version  C [included in                                                               
member  packets], which  reads as  follows [original  punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     Changes by Sponsor Prior to First Hearing                                                                                
                                                                                                                                
     1. Page  6, lines 2,  9, 16: Remove replace  "the" with                                                                    
     "each"                                                                                                                     
     2. Page 13,  lines 3-4, page 26, lines  29-30, and page                                                                    
     112,  lines  27-28:   Insert  existing  definition  for                                                                    
     "entertainment",   was   left  out   inadvertently   in                                                                    
     drafting.                                                                                                                  
     3. Page 19,  lines 6-13: Clarify intent  that a current                                                                    
     recreational  site  license  holder  has  four  renewal                                                                    
     periods to comply with statute.                                                                                            
     4. Page 32, line 6 and  page 33 line 12: Clarify intent                                                                    
     by changing "may" to "shall".                                                                                              
     5. Page  37, line 16:  Specify that package  stores are                                                                    
     intended to  deliver only to  social events  as defined                                                                    
     by the board.                                                                                                              
     6.  Page   38,  lines  2,  5:   Change  "package  store                                                                    
     shipping" to "package store delivery", drafting error.                                                                     
     7.   Page  41,   AS   04.09.520  (Brewery   Repackaging                                                                    
     Endorsement):  Strike previous  (c)(2) which  read "may                                                                    
     only  subdivide   the  holder's  brewed   beverages  in                                                                    
     response  to a  purchase from  a person  who is  on the                                                                    
     licensed premises".  This section is  redundant because                                                                    
     a  person is  already required  to be  on the  licensed                                                                    
     premises.                                                                                                                  
     8.  Page  42,  line  5: Replace  "package  store"  with                                                                    
     "brewery manufacturer", drafting error.                                                                                    
     9.  Page  42,  line  10: Clarify  intent  by  replacing                                                                    
     "owned, wholly or in part" with "controlled".                                                                              
     10. Page 44, lines 22,  25: Change reference from board                                                                    
     to the director at the request of legislative legal.                                                                       
     11.  Page  45, lines  3-4,  31  and  page 46,  line  1:                                                                    
     Grammatical changes for clarity.                                                                                           
     12.  Page   45,  lines  27-30:  Insert   "An  alcoholic                                                                    
     beverage  auction   permit  may  be  operated   on  the                                                                    
     licensed  premises of  a  beverage dispensary  license,                                                                    
     beverage  dispensary  tourism  license,  club  license,                                                                    
     restaurant  or   eating  place  license,   or  seasonal                                                                    
     restaurant   or   eating   place   license."   Existing                                                                    
     regulation language specifies intent.                                                                                      
     13. Page 54, line 9:  Insert "license with" into title.                                                                    
     Clarify that endorsements are  used in conjunction with                                                                    
     a license.                                                                                                                 
     14.  Page 63,  lines 16-17,  20-23: Changes  to clarify                                                                    
     existing       authority       over       restrictions.                                                                    
     Senator.Peter.Micciche@akleg.gov                                                                                           
     15. Page  75, line  20: Remove "or  a new  location" to                                                                    
     clarify that an endorsement  cannot be transferred to a                                                                    
     new location, the license does.                                                                                            
     16.  Page   76,  lines   30-31:  Conforms   to  current                                                                    
     practice.                                                                                                                  
     17.  Page  81,  line  31: Title  change  to  accurately                                                                    
     reflect the section.                                                                                                       
     18. Page  95 line  31, page 96  lines 1-2,  6-7, 22-23,                                                                    
     27-28: Minor language changes for clarity.                                                                                 
     19. Page 112,  line 27: Change five  to three, conforms                                                                    
     to the rest of the bill.                                                                                                   
     20. All effective dates updated.                                                                                           
                                                                                                                                
     Senate Labor & Commerce                                                                                                  
                                                                                                                                
     1.  Page 21,  AS  04.09.310  (Brewery Retail  License):                                                                    
     Delete  subsections (g)  and (h).  Remove reference  to                                                                    
     these in subsection (i).                                                                                                   
     2.  Pages 22,  AS  04.09.320  (Winery Retail  License):                                                                    
     Delete  subsections (g)  and (h).  Remove reference  to                                                                    
     these in subsection (i).                                                                                                   
     3. Page  23, AS 04.09.330 (Distillery  Retail License):                                                                    
     Delete  subsections (g)  and (h).  Remove reference  to                                                                    
     these in subsection (i).                                                                                                   
     Removal of  subsections (g) eliminates  the requirement                                                                    
     of manufacturer retail licensees  to sell not more than                                                                    
     20 percent  of their total  volume to the  public after                                                                    
     four  license renewal  periods. Removal  of subsections                                                                    
     (h)  eliminates   the  grandfathering   provisions  for                                                                    
     current manufacturer  retail licensees  from subsection                                                                    
     (g).                                                                                                                       
     4.  Pages   97  and   99,  AS  04.21.025(a)   and  (f):                                                                    
     Restructures   section  for   clarity.  Adds   existing                                                                    
     section (e) to the penalty provision, subsection (g).                                                                      
                                                                                                                                
     Senate Judiciary                                                                                                         
                                                                                                                                
     1.  Page  13,  line  15:  Lower  $2,500  biennial  club                                                                    
     license fee to $1,500.                                                                                                     
     2. Page 18, line 25:  Amends the sporting event license                                                                    
     by   allowing  service   from  multiple   noncontiguous                                                                    
     locations.                                                                                                                 
     3.  Page 20,  line  23: Amends  the destination  resort                                                                    
     license    by    allowing   service    from    multiple                                                                    
     noncontiguous location.                                                                                                    
     4.  Page  27,  line  28:   Insert  "with  a  zip  code"                                                                    
     following "address".                                                                                                       
     5. Page  28, lines  22-23: Insert  "zip codes  that are                                                                    
     located within" following "public inspection of".                                                                          
     6. Page  48, line 26  through page 50, line  3: Creates                                                                    
     new  Article 7.  Common Carrier  Approval in  section 9                                                                    
     using subsections AS  04.16.125(a)-(f) and (i)-(l) from                                                                    
     sections  104-106  (sec. 105  ver.  M).  This makes  an                                                                    
     important     distinction    between     administrative                                                                    
     violations against  a common  carrier licensee  and the                                                                    
     crime  of  unauthorized   transportation  of  alcoholic                                                                    
     beverages by a common carrier  into a local option area                                                                    
     by a person.                                                                                                               
     7. Page 68,  line 31: Lower the  waiting period between                                                                    
     board petitions from 10 years to 5 years.                                                                                  
     8. Page 86: Deletes previous  sections 92 and 93 (secs.                                                                    
     91&92 ver. C) which  amended the charges for furnishing                                                                    
     or delivering  to a minor. Intention  is that penalties                                                                    
     will remain unchanged.                                                                                                     
     9. Page  87, line 10: Renumbers  the following sections                                                                    
     accordingly.  Removes violation  penalty for  renting a                                                                    
     room for  the purpose of providing  alcoholic beverages                                                                    
     to a person  under 21 years of age and  makes the crime                                                                    
     a class A misdemeanor.                                                                                                     
     10.  Page   88,  lines  11,  15:   Amends  sections  by                                                                    
     specifying that  a person  21 year of  age or  older is                                                                    
     subject to  the $100 fine  for consumption at  a school                                                                    
     event.                                                                                                                     
     11.  Page 89,  lines 19-31  through page  90, line  14:                                                                    
     Adds reference to new  approved common carriers section                                                                    
     [see change  6]. Simplifies  existing AS  04.16.125 and                                                                    
     relocates  existing   class  A  misdemeanor   into  new                                                                    
     subsections (d) and (e) for clarity.                                                                                       
                                                                                                                                
     Senate Finance                                                                                                           
                                                                                                                                
     1. Page  18, line 30:  adds "rodeos" to  the definition                                                                    
     of  "sporting event  site" to  ensure that  the current                                                                    
     practice   for   sporting    event   licenses   remains                                                                    
     consistent.                                                                                                                
     2. Page 61, lines  13-15: codifies the current practice                                                                    
     of allowing  the sale of a  beverage dispensary tourism                                                                    
     license.                                                                                                                   
     3. Page  61: Deletes previous section  37, which sunset                                                                    
     AS 04.11.360(9) and (10)    these are now included with                                                                    
     the  repeals  in  section   152.  All  section  numbers                                                                    
     following this section have been renumbered.                                                                               
     4. Page  63, line  25; Page  64, lines  1, 12,  21, 27;                                                                    
     Page 65, lines 25: statutory reference corrected.                                                                          
     5. Page 66, line 9: Corrects statutory references.                                                                         
     6.  Page  68,  line  31:   shortens  the  time  that  a                                                                    
     municipality  must wait  between requesting  restaurant                                                                    
     or  eating place  licenses to  three years,  instead of                                                                    
     five years.                                                                                                                
     7.  Page  82, lines  28-29:  Rewords  for clarity.  The                                                                    
     intent  is that  the  license holder  is  liable for  a                                                                    
     violation  by an  employee and  they are  subject to  a                                                                    
     $250 administrative penalty.                                                                                               
     8. Page  85, line  25 through page  86, line  18: makes                                                                    
     conforming changes  to AS 04.16.051(d)  and adds  a new                                                                    
     (e). These sections insert  existing penalties into the                                                                    
     correct sections and reformats  the language to conform                                                                    
     to the rest of the bill.                                                                                                   
     9.  Page  86, lines  20-24:  Rewords  for clarity.  The                                                                    
     intent  is that  the  license holder  is  liable for  a                                                                    
     violation  by an  employee and  they are  subject to  a                                                                    
     $250 administrative penalty.                                                                                               
     10. Page 88,  lines 12-13: clarifies the  intent of the                                                                    
     prohibition on "consuming alcohol at a school event."                                                                      
     11.  Page 92,  lines 19-23:  requires a  license to  be                                                                    
     revoked if  for a  third violation of  certain offenses                                                                    
     within five years:                                                                                                         
     o  04.16.022 Online  sales  and  purchase of  alcoholic                                                                    
     beverages                                                                                                                  
     o  04.16.030  Prohibited  conduct relating  to  drunken                                                                    
     persons                                                                                                                    
     o  04.16.052  Furnishing   of  alcoholic  beverages  to                                                                    
     persons under the age of 21 by licensees.                                                                                  
     o  04.16.110   Sale  of  certain   alcoholic  beverages                                                                    
     prohibited.                                                                                                                
     o 04.16.175  Furnishing alcoholic  beverages in  aid of                                                                    
     gambling enterprise.                                                                                                       
     12. Page  104, lines  11-13: Reformats the  language to                                                                    
     conform to the rest of the bill.                                                                                           
     13.  Page   109,  line  3:   Adds  repeals   that  were                                                                    
     previously in section 37 (see page 61 note).                                                                               
     14. Page  109, lines 10-11  through page 111,  line 22:                                                                    
     Corrects  section numbers  and statutory  references in                                                                    
     applicability and transition language.                                                                                     
     15.  Page 113,  lines 8-9:  Corrects effective  dates                                                                      
     specifically removes previous sections  96 and 133 from                                                                    
     immediate  effective date  provision  and add  sections                                                                    
     157(a)(1), 157(a)(2) and 157 (b)(8).                                                                                       
                                                                                                                                
4:27:37 PM                                                                                                                    
                                                                                                                                
TIFFANY HALL,  Executive Director,  Recover Alaska,  testified in                                                               
support of SB 76.                                                                                                               
                                                                                                                                
REPRESENTATIVE  SULLIVAN-LEONARD asked  whether  Ms. Hall  thinks                                                               
the  current version  is  a  good compromise  in  the efforts  to                                                               
rewrite Title 4.                                                                                                                
                                                                                                                                
MS. HALL answered in the affirmative.                                                                                           
                                                                                                                                
REPRESENTATIVE WOOL asked about  the compromises not reflected in                                                               
the bill.                                                                                                                       
                                                                                                                                
MS.  HALL  explained  serving  drinks  in  distilleries  was  one                                                               
example  of  the  issue  not  being  concluded  due  to  lack  of                                                               
consensus.                                                                                                                      
                                                                                                                                
4:30:24 PM                                                                                                                    
                                                                                                                                
DALE  FOX,  President,  Alaska  Cabaret,  Hotel,  Restaurant  and                                                               
Retailers  Association   (Alaska  CHARR),  said  that   the  vast                                                               
majority  of changes  in the  current version  were improvements.                                                               
He underlined  that some  changes were to  areas of  the proposal                                                               
which originally had consensus and did  not with the changes.  He                                                               
said the  definition of manufacturers was  one.  He spoke  to the                                                               
80-20 rule in which 80 percent  of product had to be sold through                                                               
normal retail chains, which had  been changed from a longstanding                                                               
rule of  100 percent.  He  said there is a  harsh penalty section                                                               
which is  not supported  by the  industry.   He gave  examples of                                                               
small  technical changes  that could  make the  bill better.   He                                                               
said that  eating places can serve  a beverage "with a  meal" and                                                               
that language  is not  present in the  proposed legislation.   He                                                               
spoke   to  the   Uniform  Commercial   Code   (UCC)  filing   of                                                               
transactions  regarding  licenses  sold   between  parties.    He                                                               
explained  the licenses  are subject  to  a number  of rules  for                                                               
transfer.  He said  that for  40  years those  filings have  been                                                               
allowed.   Recently  the  ABC  Board has  said  it  is no  longer                                                               
allowed.   He added there are  a number of other  small technical                                                               
issues.                                                                                                                         
                                                                                                                                
REPRESENTATIVE  WOOL declared  that he  is a  beverage dispensary                                                               
license  (BDL) owner.    He  asked Mr.  Fox  whether  all of  the                                                               
controversial items were "left off" the Title 4 rewrite.                                                                        
                                                                                                                                
MR. FOX  said that a lot  of issues were  left on the table.   He                                                               
underlined the group had always "worked towards yes."                                                                           
                                                                                                                                
4:39:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STUTES asked about  the "three strikes  amendment.                                                               
She said she thinks the amendment is ambiguous                                                                                  
                                                                                                                                
MR. FOX  said that the  group disagreed  with the amendment.   He                                                               
gave  some  scenarios  in  which the  strikes  may  affect  "good                                                               
operators."  He  underlined that the small fine  in the amendment                                                               
would cause  the owner to pay  the fine rather than  go to court,                                                               
leading to  one of the  three strikes.  He  said there is  a wide                                                               
difference between a night club  serving hundreds of people and a                                                               
corner bar  serving the same  small group most  of the time.   He                                                               
suggested  the Alcohol  Beverage and  Control (ABC  Board) should                                                               
examine each instance before revoking  licenses.  He stated, "One                                                               
size does not fit all."                                                                                                         
                                                                                                                                
4:42:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOSEPHSON   asked  whether  the  ABC   board  had                                                               
regulations to understand the totality of the circumstances.                                                                    
                                                                                                                                
CHAIR KITO said the question had been brought to the department.                                                                
                                                                                                                                
REPRESENTATIVE  JOSEPHSON asked  if the  proper fix  would be  to                                                               
revamp the language entirely.                                                                                                   
                                                                                                                                
MR. FOX  explained that currently  the ABC Board may  suspend the                                                               
owner for 45 days for a first  offence, for 90 days at the second                                                               
offence, and revoke  the license for the third offense.   He said                                                               
he thinks it is wise to leave the  decision to the ABC Board.  He                                                               
added  he  thinks it  can  be  achieved  by  change a  couple  of                                                               
sentences in the language.                                                                                                      
                                                                                                                                
4:45:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   BIRCH   expressed   his   concern   that   small                                                               
entrepreneurs could be  driven out of business.  He  asked if Mr.                                                               
Fox thought  the bill would grow  small businesses or would  be a                                                               
threat.                                                                                                                         
                                                                                                                                
MR. FOX answered  there has been a change of  business model with                                                               
the introduction of tasting rooms  and samples for manufacturers.                                                               
He  said  many  breweries  are selling  through  standard  retail                                                               
avenues.  However,  some  have  decided  to  sell  through  their                                                               
manufacturing site.   He  said it  is a  "zero-sum game"  but the                                                               
issue is whether  craft manufacturers can offer a  sample so that                                                               
customers can  try the product and  go on to purchase  it in bars                                                               
and stores.   He  added that some  breweries had  also discovered                                                               
they  can make  a  lot  more money  selling  the product  through                                                               
tasting rooms and so have  stopped selling to the standard retail                                                               
outlets.                                                                                                                        
                                                                                                                                
4:50:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KNOPP asked about sampling in package stores.                                                                    
                                                                                                                                
MR. FOX said  members of the working group had  lots of opinions.                                                               
He said  that the  proposal was  for free  samples only  from the                                                               
stock of  the package store.   He added that the  sample sizes in                                                               
the proposal may be a little too high.                                                                                          
                                                                                                                                
REPRESENTATIVE WOOL asked about  free samples in the manufacturer                                                               
tasting room.                                                                                                                   
                                                                                                                                
MR. FOX answered that he does not know the history.                                                                             
                                                                                                                                
4:54:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  BIRCH  asked about  the  cost  of a  license  for                                                               
restaurants serving only beer and wine.                                                                                         
                                                                                                                                
MR. FOX said  that the bill provided many new  opportunities.  He                                                               
said  there are  a number  of new  licenses available.   He  drew                                                               
comparisons with different commercial fishing licenses.                                                                         
                                                                                                                                
REPRESENTATIVE  STUTES  commented  that she  thought  the  sample                                                               
sizes for tasting rooms are too large.                                                                                          
                                                                                                                                
MR.  FOX  agreed that  the  amounts  should  be adjusted  by  the                                                               
committee.                                                                                                                      
                                                                                                                                
REPRESENTATIVE   STUTES  asked   about  the   difference  between                                                               
distilleries and fully licensed bars.                                                                                           
                                                                                                                                
MR. FOX said  he thinks the delineation should be  size of drinks                                                               
and opening  hours.  He said  the product should be  displayed in                                                               
the way it is consumed.  He  added that some of his members think                                                               
distilleries should only be allowed to serve straight product.                                                                  
                                                                                                                                
5:01:39 PM                                                                                                                    
                                                                                                                                
CHAIR KITO opened public testimony on SB 76.                                                                                    
                                                                                                                                
5:01:50 PM                                                                                                                    
                                                                                                                                
CHRYSTAL SHOENROCK, Secretary, Kenai  Peninsula CHARR, shared her                                                               
viewpoint on aspects of the bill.                                                                                               
                                                                                                                                
5:04:42 PM                                                                                                                    
                                                                                                                                
DARWIN BIWER,  Darwin's Theory,  testified in  support of  SB 76.                                                               
He  said he  believes the  bill does  not go  far enough  on some                                                               
issues and  goes too far  on others.   He said he  thinks tasting                                                               
room quantities  are too high.   He said  he thinks it  should be                                                               
reduced  from  36  ounces  to  16 ounces.    He  said  he  thinks                                                               
distilleries should have smaller containers.                                                                                    
                                                                                                                                
5:07:26 PM                                                                                                                    
                                                                                                                                
CHAIR  KITO clarified  that the  limits were  set out  in statute                                                               
prior to the current proposed legislation.                                                                                      
                                                                                                                                
5:08:04 PM                                                                                                                    
                                                                                                                                
JEANNE REILLY,  Reilly's Irish  Pub, testified  in support  of SB                                                               
76.  She  said licenses for distilleries are set  up by the state                                                               
at a reasonable fee.  She said  all of the licenses were based on                                                               
population.  She added that new  licenses are being issued by the                                                               
state at a small fee so that  license owners do not have "as much                                                               
meat in the game" as those possessing BDLs.                                                                                     
                                                                                                                                
5:10:14 PM'                                                                                                                   
                                                                                                                                
ABBY  WILLIAMS, Co-Owner,  Louie's Douglas  Inn, spoke  about the                                                               
unfair  advantage  and  the  three-tier system.    She  gave  her                                                               
opinion of new and innovative  businesses.  She stated she wishes                                                               
to maintain the  integrity of her BDL license.   She said she did                                                               
not expect  to be competing  with a  license owner with  a profit                                                               
margin much smaller than hers.   She said she did not believe the                                                               
intent  of the  three-tier system  was to  allow distilleries  to                                                               
serve cocktails  which put  them in  direct competition  with the                                                               
BDL owners.                                                                                                                     
                                                                                                                                
5:13:09 PM                                                                                                                    
                                                                                                                                
GEORGE TIPTON,  CHARR board  member, testified  in support  of SB                                                               
76.   He said a  few additional amendments are  needed, including                                                               
the UCC filing  issue mentioned by Mr. Fox.   He said the process                                                               
had been  accepted by the  department until recently.   He stated                                                               
many do  not have  the cash  to purchase  licenses outright.   He                                                               
said there  are tax consequences to  the issue.  He  said federal                                                               
income tax  could eat  up the  security interest.   He  stated it                                                               
would be an easy fix.                                                                                                           
                                                                                                                                
MR. TIPTON  said he owns a  number of licenses and  the volume is                                                               
part of  a business  model.  He  said he thinks  it is  fair that                                                               
licenses  follow  the  regulation  that  no  one  remain  on  the                                                               
premises after business hours.                                                                                                  
                                                                                                                                
REPRESENTATIVE KNOPP  asked about the rationale  for not allowing                                                               
UCC filings.                                                                                                                    
                                                                                                                                
MR. TIPTON answered it made no sense to him.                                                                                    
                                                                                                                                
5:17:39 PM                                                                                                                    
                                                                                                                                
ARDEN RANKIN, Sunrise  Inn, testified in support of HB  357.  She                                                               
said  she  thinks  there  needs   to  be  a  clear  and  separate                                                               
distinction between bars and distilleries.   She added she thinks                                                               
samples should  only be  offered in limited  size and  number and                                                               
should not be mixed drinks.                                                                                                     
                                                                                                                                
5:20:14 PM                                                                                                                    
                                                                                                                                
DAVID CALDWELL, Moose's Tooth, Bear  Tooth, and Broken Tooth said                                                               
he hopes the legislation can be passed this year.                                                                               
                                                                                                                                
5:20:53 PM                                                                                                                    
                                                                                                                                
RYAN  MAKINSTER, Executive  Director,  Brewers  Guild of  Alaska,                                                               
stated  there was  not consensus  or compromise  with the  change                                                               
regarding the  80-20 rule  at the final  meetings.   He addressed                                                               
Representative  Stutes   query   regarding  delineations  between                                                               
tasting rooms and bars.   He underlined that tasting rooms cannot                                                               
serve after 8 p.m.  He said he  does not know of people coming to                                                               
tasting rooms  being served all  day.  He said  the manufacturers                                                               
have capital expenditures placed in tools and materials.                                                                        
                                                                                                                                
5:24:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WOOL  asked whether Mr. Makinster  feels that more                                                               
outlets for drinking would devalue the existing licenses.                                                                       
                                                                                                                                
MR. MAKINSTER answered he was  referring to capital costs only in                                                               
terms of the level playing field.                                                                                               
                                                                                                                                
5:27:10 PM                                                                                                                    
                                                                                                                                
JOEL  KADARAUCH,   Director,  Alaska  Beer,  Wine,   and  Spirits                                                               
Wholesalers Association urged passage of HB 357.                                                                                
                                                                                                                                
5:28:37 PM                                                                                                                    
                                                                                                                                
LARRY  HACKENMILLER, General  Manager, CHARR  Interior, spoke  to                                                               
tasting rooms.   He stated  the term  is not defined  in statute.                                                               
He recounted  the behavior of a  tasting room which was  found to                                                               
be preparing  mixed drinks.  He  said he also has  a problem with                                                               
the  amount of  beer  and  wine allowed  in  tasting  rooms.   He                                                               
suggested decreasing  the hours in which  manufacturers can serve                                                               
samples to 5 p.m.                                                                                                               
                                                                                                                                
5:31:27 PM                                                                                                                    
                                                                                                                                
ROB  BORLAND, Ursa  Major Distilling,  stated  statute says  that                                                               
distilleries  cannot be  a de  facto bar.   He  said there  is no                                                               
unfair advantage.  He said  distilleries have the same population                                                               
limits as  BDLs.  He  suggested the reason  for the high  cost of                                                               
BDL licenses was due to the ability to transfer them.                                                                           
                                                                                                                                
5:33:27 PM                                                                                                                    
                                                                                                                                
ERIC FORST, Partner,  Red Dog Saloon, suggested  that the tasting                                                               
levels be  cut back in  the proposed bill.   He said  he supports                                                               
the three-tier system.                                                                                                          
                                                                                                                                
5:36:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  WOOL  asked  about   the  concern  regarding  the                                                               
population limits and the cost of the BDL.                                                                                      
                                                                                                                                
MR. FORST  answered that if  the licenses are limited,  the value                                                               
of each would go up.                                                                                                            
                                                                                                                                
5:37:52 PM                                                                                                                    
                                                                                                                                
JACK  MANNING, Owner,  Duck Creek  Market,  said he  is also  the                                                               
president  of  the  local  CHARR   chapter.    He  spoke  to  the                                                               
compromises  during meetings.   He  said many  feel the  proposal                                                               
greatly reduces the role of the ABC Board.                                                                                      
                                                                                                                                
5:39:05 PM                                                                                                                    
                                                                                                                                
RAY KAISER,  Squirez Bar,  said that  he supports  craft products                                                               
but thinks they should be  distributed through standard channels.                                                               
He added he thinks sample sizes should be reevaluated.                                                                          
                                                                                                                                
5:40:00 PM                                                                                                                    
                                                                                                                                
MARK   ERICKSON,  Owner,   Lucky  Lady   Pub,  spoke   about  the                                                               
distilleries  changing   their  approach.     He   mentioned  the                                                               
difference in cost for the BDL and other licenses.                                                                              
                                                                                                                                
5:41:14 PM                                                                                                                    
                                                                                                                                
CHARLIE HERRINGTON,  Juneau's Waterfront Restaurants,  stated his                                                               
concern  regarding the  revocation  of licenses  proposed in  the                                                               
legislation.                                                                                                                    
                                                                                                                                
5:42:18 PM                                                                                                                    
                                                                                                                                
REECIA WILSON, Owner, Hanger on  the Wharf, Twisted Fish Company,                                                               
spoke  to the  new requirement  regarding UCC  filing.   She said                                                               
language to clarify the intent is needed.                                                                                       
                                                                                                                                
5:44:45 PM                                                                                                                    
                                                                                                                                
PAUL THOMAS, Owner,  Alaska Cache Liquor, spoke  about the three-                                                               
strike rule.   He stated  the ABC Board  is designed to  hear and                                                               
decide on infractions.   He voiced his concern  that the proposal                                                               
would condemn good  businesses based on an arbitrary  number.  He                                                               
said  those decisions  should be  made by  the Board.   He  spoke                                                               
about the tasting rooms staying as originally conceived.                                                                        
                                                                                                                                
5:47:34 PM                                                                                                                    
                                                                                                                                
TOM  MANNING, Owner,  Duck  Creek  Market, said  he  has owned  a                                                               
number of licenses and has served  on the ABC Board.  He declared                                                               
support for  the proposed bill.   He said he does  not agree with                                                               
the  three-strike rule.    He  said the  tasting  room should  be                                                               
clearly defined.                                                                                                                
                                                                                                                                
5:50:15 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KNOPP  asked  whether Mr.  Manning  supports  UCC                                                               
filing.                                                                                                                         
                                                                                                                                
MR. MANNING  answered in  the affirmative.   He said  that should                                                               
stay.                                                                                                                           
                                                                                                                                
REPRESENTATIVE WOOL asked whether Mr.  Manning had any insight on                                                               
the definition of a bar.                                                                                                        
                                                                                                                                
MR. MANNING said  that he supported the craft  manufacturers.  He                                                               
mentioned  the   local  brewery.     He   said  he   thought  the                                                               
distilleries  would be  producing  craft products.    He said  he                                                               
thinks  a  pre-distilled  product  is more  about  flavoring  and                                                               
serving them in the  same way as in a bar is  no longer a tasting                                                               
room.                                                                                                                           
                                                                                                                                
5:53:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE BIRCH asked  Mr. Manning how room can  be made for                                                               
the manufacturing operations.                                                                                                   
                                                                                                                                
MR. MANNING answered he thinks  Alaska Brewing Company is a great                                                               
example of  doing it right.   He said,  "You say it's  about your                                                               
product; make it about your product."                                                                                           
                                                                                                                                
5:56:09 PM                                                                                                                    
                                                                                                                                
LEANN THOMAS, Triangle Club, stated  she encourages passage of SB                                                               
76.   She spoke to  tasting rooms and limits based on population.                                                               
She  said  there  should  be  limits on  tasting  room  hours  of                                                               
operation.   She said  she thinks  manufacturing should  refer to                                                               
the use  of raw materials.   She clarified that  limiting tasting                                                               
rooms by  population for Juneau,  Alaska, would mean  there would                                                               
be four  tasting rooms.   She suggested otherwise  those entities                                                               
could purchase BDLs like bars.                                                                                                  
                                                                                                                                
6:00:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WOOL  corrected that  there is currently  no limit                                                               
on the  number of tasting rooms  and a city like  Juneau, Alaska,                                                               
could have four breweries, four distilleries, and four wineries.                                                                
                                                                                                                                
MS. THOMAS said she thinks an  easy solution would be to make the                                                               
limit 1:9,000 across all types.                                                                                                 
                                                                                                                                
6:01:14 PM                                                                                                                    
                                                                                                                                
PETE THIBODEAU,  Owner, Thibodeau's Market, Inc.,  said there are                                                               
only so  many customers  out there and  increasing the  number of                                                               
licenses does not make the "pot bigger."                                                                                        
                                                                                                                                
6:01:51 PM                                                                                                                    
                                                                                                                                
CHRIS MIEIER,  Alaska Travel Adventures, testified  in support of                                                               
SB 76.   He spoke to  seasonal licenses limited by  population at                                                               
20,000.   Under SB 76, as  is, Juneau would be  excluded from the                                                               
new  class of  tourism licenses.    He added  that currently  the                                                               
provision states hours  from 1 p.m. to 11 p.m.  and he would like                                                               
to see it changed to include lunch hours.                                                                                       
                                                                                                                                
6:03:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KNOPP asked whether  Mr. Mieier anticipates a need                                                               
for new seasonal tourism licenses.                                                                                              
                                                                                                                                
MR. MIEIER said, "Absolutely.                                                                                                   
                                                                                                                                
6:04:05 PM                                                                                                                    
                                                                                                                                
JARED CURE,  The Narrows Bar,  stated he has concerned  about the                                                               
three-strikes policy.   He said the  ABC Board is already  set up                                                               
to  handle  those cases.    He  stated  he support  UCC  filings,                                                               
without which  he would not be  in business.  He  suggested there                                                               
be a limit  to what tasting rooms  can offer.  He  spoke to costs                                                               
for manufacturers.                                                                                                              
                                                                                                                                
6:06:46 PM                                                                                                                    
                                                                                                                                
BRANDON HOWARD, Owner/Founder,  Amalga Distillery, commented that                                                               
the committee  has heard from a  lot of BDL license  holders.  He                                                               
described the process  of his distillation and the  use of Alaska                                                               
grain  from Delta  Junction, Alaska.    He explained  how gin  is                                                               
made.    He said  claiming  that  Alaska distilleries  are  being                                                               
deceitful worries him.                                                                                                          
                                                                                                                                
6:13:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE BIRCH  asked whether there are  any limitations on                                                               
bringing distillery products on cruise ships.                                                                                   
                                                                                                                                
MR.  HOWARD answered  cruise ship  passengers have  to check  any                                                               
bottles that they purchase to take home.                                                                                        
                                                                                                                                
6:14:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WOOL  asked whether there are  other distillers in                                                               
Alaska making distilled products from raw materials.                                                                            
                                                                                                                                
MR. HOWARD explained the distillery processes.                                                                                  
                                                                                                                                
REPRESENTATIVE  WOOL asked  whether there  are distilleries  that                                                               
may  have  a more  comprehensive  license  but only  offer  their                                                               
product.                                                                                                                        
                                                                                                                                
MR.  HOWARD answered  that  he has  seen the  model,  but not  in                                                               
Alaska.   He  said he  has not  seen a  locale that  features one                                                               
singular product.                                                                                                               
                                                                                                                                
REPRESENTATIVE WOOL asked about the 80/20 rule.                                                                                 
                                                                                                                                
MR. HOWARD answered  his business had just  began distribution in                                                               
December 2017,  and rolling  out product  in January  2018, since                                                               
then about  66 percent of  the product is  shipped out.   He said                                                               
the 80/20 rule discourages smaller businesses.                                                                                  
                                                                                                                                
6:20:16 PM                                                                                                                    
                                                                                                                                
CHAIR KITO  said he  would take  further testimony  the following                                                               
day.                                                                                                                            
                                                                                                                                
6:20:38 PM                                                                                                                    
                                                                                                                                
DIANE KAPLAN, President, CEO, Rasmussen  Foundation, spoke to the                                                               
issue  of  alcoholism  in  Alaska.    She  gave  some  statistics                                                               
regarding  alcohol  abuse  in  the  state.    She  said  a  clear                                                               
framework  for alcohol  laws would  strengthen public  health and                                                               
protect underage residents.  She  spoke to the lack of regulation                                                               
on on-line sales.                                                                                                               
                                                                                                                                
6:24:23 PM                                                                                                                    
                                                                                                                                
HEATHER  SHADE,  Port  Chilkoot Distillery,  shared  her  concern                                                               
about  the  focus  on   restricting  the  manufacturing  industry                                                               
further through  SB 76.   She described the industry  and current                                                               
trends.                                                                                                                         
                                                                                                                                
6:31:01 PM                                                                                                                    
                                                                                                                                
ROBIN   MINARD,   Director,   Public   Affairs,   Mat-Su   Health                                                               
Foundation,  testified in  support of  SB 76.   She  stated local                                                               
police emphasize  that the  number one problem  is alcohol.   She                                                               
spoke  to the  years  of  work that  had  gone  into the  rewrite                                                               
process.                                                                                                                        
                                                                                                                                
6:32:07 PM                                                                                                                    
                                                                                                                                
DICK ROSSTON, Alyeska Resort, testified in support of SB 76.                                                                    
                                                                                                                                
6:33:22 PM                                                                                                                    
                                                                                                                                
ALISON KULAS,  Executive Director,  Advisory Board  on Alcoholism                                                               
and  Drug Abuse,  Alaska Mental  Health Board,  Statewide Suicide                                                               
Prevention Council, Division of  Behavioral Health, Department of                                                               
Health  and Social  Services, asked  the committee  not to  throw                                                               
away  all the  work that  has gone  into clarifying  the laws  in                                                               
Title 4.  She said if  the public understands the regulations, it                                                               
will go a long way to improving public health.                                                                                  
                                                                                                                                
6:35:25 PM                                                                                                                    
                                                                                                                                
CHAIR KITO held over SB 76.                                                                                                     
                                                                                                                                
6:35:35 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Labor and  Commerce Standing Committee  meeting was  adjourned at                                                               
6:35 p.m.                                                                                                                       

Document Name Date/Time Subjects
SB86 ARRC Land Sale Resolutions.pdf HL&C 5/2/2018 3:15:00 PM
SB 86
SB86 ARRC Land Sale Properties Proposal 17APR18 - FINAL.PDF HL&C 5/2/2018 3:15:00 PM
SB 86
SB86 Letters of Support 4.23.18.pdf HL&C 5/2/2018 3:15:00 PM
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SB86 Version U-A.PDF HL&C 5/2/2018 3:15:00 PM
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SB86 Fiscal Note DCCED ARRC 2.2.18.pdf HL&C 5/2/2018 3:15:00 PM
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SB76 Sectional Analysis Ver. C 4.30.2018.pdf HL&C 5/2/2018 3:15:00 PM
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SB76 Fiscal Note 3 - DCCED-AMCO 4.30.2018.pdf HL&C 5/2/2018 3:15:00 PM
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SB76 Ver. C 4.30.2018.pdf HL&C 5/2/2018 3:15:00 PM
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SB76 Explanation of Changes Ver. N to Ver. C 4.30.2018.pdf HL&C 5/2/2018 3:15:00 PM
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SB76 Fiscal Note 2 - DHSS-PS 4.30.2018.pdf HL&C 5/2/2018 3:15:00 PM
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SB86 Version N.pdf HL&C 5/2/2018 3:15:00 PM
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SB86 Explanation of Changes Version U.A to N 05.02.18.pdf HL&C 5/2/2018 3:15:00 PM
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