Legislature(2017 - 2018)BARNES 124

05/04/2018 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
Moved HCS CSSB 86(L&C) Out of Committee
-- Public Testimony --
+= SB 76 ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG TELECONFERENCED
Moved HCS CSSSSB 76(L&C) Out of Committee
                     ALASKA STATE LEGISLATURE                                                                                 
           HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                           May 4, 2018                                                                                          
                            3:17 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                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Colleen Sullivan-Leonard                                                                                         
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."                                                                              
                                                                                                                                
     - MOVED HCS CSSB 86(L&C) OUT OF COMMITTEE                                                                                  
                                                                                                                                
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."                                                                                                                
                                                                                                                                
     - MOVED HCS CSSSSB 76(L&C) OUT OF COMMITTEE                                                                                
                                                                                                                                
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                                                                              
05/02/18       (H)       Heard & Held                                                                                           
05/02/18       (H)       MINUTE(L&C)                                                                                            
05/04/18       (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)       -- MEETING CANCELED --                                                                                 
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                                                                              
05/02/18       (H)       Heard & Held                                                                                           
05/02/18       (H)       MINUTE(L&C)                                                                                            
05/03/18       (H)       L&C AT 3:15 PM BARNES 124                                                                              
05/03/18       (H)       Heard & Held                                                                                           
05/03/18       (H)       MINUTE(L&C)                                                                                            
05/04/18       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
SHAREN WALSH                                                                                                                    
Port of Alaska                                                                                                                  
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of SB 86.                                                                           
                                                                                                                                
TOM MEACHAM                                                                                                                     
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in the hearing on SB 86.                                                                       
                                                                                                                                
JOAQUIM BARBACHANO                                                                                                              
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of SB 86.                                                                           
                                                                                                                                
JACK BROWN                                                                                                                      
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in the hearing on SB 86.                                                                       
                                                                                                                                
SUSAN BROWN                                                                                                                     
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in the hearing on SB 86.                                                                       
                                                                                                                                
ROY LONGACRE                                                                                                                    
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in the hearing on SB 86.                                                                       
                                                                                                                                
JOHN KAGERER                                                                                                                    
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of SB 86.                                                                           
                                                                                                                                
LAURA STIDOLPH, Staff                                                                                                           
Representative Adam Wool                                                                                                        
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented the changes to SB 76 on behalf of                                                              
Representative Wool.                                                                                                            
                                                                                                                                
DALE FOX                                                                                                                        
Alaska CHARR                                                                                                                    
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions in the hearing on SB 76.                                                              
                                                                                                                                
REPRESENTATIVE CHUCK KOPP                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Spoke to the House companion bill  to SB 76                                                             
as prime sponsor.                                                                                                               
                                                                                                                                
ERIKA MCCONNELL, Director                                                                                                       
Alcohol & Marijuana Control Office (AMCO)                                                                                       
Department of Commerce, Community & Economic Development (DCCED)                                                                
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions in the hearing on SB 76.                                                              
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:17:26 PM                                                                                                                    
                                                                                                                                
CHAIR  SAM KITO  called  the House  Labor  and Commerce  Standing                                                             
Committee meeting to order at  3:17 p.m.  Representatives Stutes,                                                               
Birch,  Josephson, Wool,  and Kito  were present  at the  call to                                                               
order.    Representative Knopp  arrived  as  the meeting  was  in                                                               
progress.                                                                                                                       
                                                                                                                                
          SB 86-ALASKA RAILROAD CORP: LAND;BONDS,FINANCE                                                                    
                                                                                                                                
3:18:02 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."                                                                                                             
                                                                                                                                
CHAIR  KITO announced  that public  testimony on  SB 86  was open                                                               
from the previous hearing.                                                                                                      
                                                                                                                                
3:18:12 PM                                                                                                                    
                                                                                                                                
SHAREN WALSH, Port of Alaska, testified in support of SB 86.                                                                    
She  paraphrased  from  her written  statement,  which  reads  as                                                               
follows [original punctuation provided]:                                                                                        
                                                                                                                                
     Port  of Alaska  is  a  publically-owned facility  that                                                                    
     handles  half  of  all   of  Alaska's  inbound,  marine                                                                    
     freight.  Almost 3.5  million  tons of  fuel and  cargo                                                                    
     crossed Port  of Alaska's  docks in  2017. Half  of the                                                                    
     cargo  that  moves through  the  Port  is delivered  to                                                                    
     final  destinations outside  of Anchorage  and directly                                                                    
     benefits some 85 percent of all Alaskans.                                                                                  
                                                                                                                                
     The Port originally  opened in 1961 and  its docks have                                                                    
     long  exceeded their  original  design  life, they  are                                                                    
     suffering  from severe  corrosion, they  are not  well-                                                                    
     suited for  modern cargo-handling operations,  and they                                                                    
     are   unlikely    to   survive    another   significant                                                                    
     earthquake.                                                                                                                
                                                                                                                                
     For  these reasons,  Port of  Alaska is  moving forward                                                                    
     with  a program  replace  its aging  docks before  they                                                                    
     fail. This port modernization program is optimized to                                                                      
     replace the  docks in timely and  cost effective manner                                                                    
     while maintaining  ongoing operations that  benefit our                                                                    
     entire state.                                                                                                              
                                                                                                                                
     The first phase  of this project involves  land that is                                                                    
     currently leased by the Port  from the Alaska Railroad.                                                                    
     Shore stabilization work is scheduled to start on this                                                                     
     property  this summer  in preparation  for construction                                                                    
     of  a  new  petroleum   and  cement  terminal  that  is                                                                    
     scheduled for completion in 2020.                                                                                          
                                                                                                                                
     It  is  not  appropriate  for the  Port  of  Alaska,  a                                                                    
     publically-owned  enterprise, to  build a  new dock  on                                                                    
     land that  it does  not control in  perpetuity. Passage                                                                    
     of  SB86 will  allow the  land sale  that will  provide                                                                    
     this control.                                                                                                              
                                                                                                                                
     I appreciate your careful  consideration and support of                                                                    
     passing this  bill, so that  the Port can  move forward                                                                    
     with construction  of new docks  that will  benefit all                                                                    
     of Alaska.                                                                                                                 
                                                                                                                                
3:20:18 PM                                                                                                                    
                                                                                                                                
TOM MEACHAM  spoke to the  amendments to SB  86.  He  suggested a                                                               
likely  outcome in  court would  a determination  that be  Alaska                                                               
Railroad Transfer  Act (ARTA) does  not require an  exclusive use                                                               
easement on lands  that were not part of Denali  National Park or                                                               
native lands, which  would mean the federal  government would not                                                               
be  defending  the challenge  regarding  all  lands received  and                                                               
deemed to be  erroneous.  He suggested the interests  at the time                                                               
of ARTA  were the only  interests involved.   He said  ARTA shows                                                               
that exclusive  use easement  does not extend  to lands  that are                                                               
already subject to the 1914 right-of-way.                                                                                       
                                                                                                                                
3:24:45 PM                                                                                                                    
                                                                                                                                
JOAQUIM BARBACHANO testified  in support of SB 86.   He mentioned                                                               
the letter  from Representative Don Young  regarding the railroad                                                               
easement. He  opined the intent  was not  to take away  land from                                                               
landowners.  He said  he  feels the  proposed  legislation is  an                                                               
"easy fix" for the problem.                                                                                                     
                                                                                                                                
3:25:52 PM                                                                                                                    
                                                                                                                                
JACK BROWN  spoke to  a serious  attack on  property rights.   He                                                               
said Alaska Railroad Corporation  (ARRC) changed the legal nature                                                               
of the surface  easement which runs across private  property.  He                                                               
added the market value of his  property had been gutted by claims                                                               
of exclusive use  by the railroad.  He said  the homestead patent                                                               
is very clear about the right-of-way.                                                                                           
                                                                                                                                
3:28:37 PM                                                                                                                    
                                                                                                                                
SUSAN BROWN  testified in  the hearing  on SB 86.   She  said the                                                               
ARRC  had   illegally  and  unconstitutionally  stolen   land  of                                                               
Alaskans.  She added that a  few people in Anchorage, Alaska have                                                               
just learned about the issue.                                                                                                   
                                                                                                                                
REPRESENTATIVE BIRCH asked  Ms. Brown whether she  was aware that                                                               
the  CS  only  states  the  ARRC does  not  have  authority  over                                                               
interest which was not owned at the time of transfer.                                                                           
                                                                                                                                
MS. BROWN answered that she was fully aware of that.                                                                            
                                                                                                                                
3:30:52 PM                                                                                                                    
                                                                                                                                
ROY  LONGACRE testified  in the  hearing on  SB 86.   He  said he                                                               
agreed with earlier  testimony from Mr. Tom Meacham.   He queried                                                               
why the ARRC had different needs  under state control than it had                                                               
under federal control.   He said that in order  to cut down trees                                                               
on private property, the ARRC required  it be hired to manage the                                                               
operation.                                                                                                                      
                                                                                                                                
3:34:45 PM                                                                                                                    
                                                                                                                                
JOHN KAGERER  testified in support  of SB 86.   He stated  he had                                                               
just been notified that the railroad  had been granted use of his                                                               
property.   He said  he had  had no prior  knowledge and  that he                                                               
believes it is  totally wrong.  He stated the  easement should be                                                               
returned to the way it was before.                                                                                              
                                                                                                                                
3:36:42 PM                                                                                                                    
                                                                                                                                
CHAIR KITO closed public testimony on SB 86.                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON  shared his concerns about  the proposed                                                               
bill.   He  stated he  feels the  decision should  go before  the                                                               
courts.  He spoke to the legal opinion on the proposal.                                                                         
                                                                                                                                
REPRESENTATIVE BIRCH  commented that  the issue  was complicated.                                                               
He underlined  that ARRC  is a  state enterprise.   He  said that                                                               
under the state and federal law,  it is not the responsibility of                                                               
the property owners to address the issue.  He mentioned ARTA.                                                                   
                                                                                                                                
CHAIR  KITO  said  he  would  characterize  the  responsibilities                                                               
differently.  He highlighted that  the shareholders are residents                                                               
of  Alaska and  the  legislature does  have  a responsibility  to                                                               
protect them.   He then spoke  to the partnerships with  the Port                                                               
of Anchorage, Alaska.                                                                                                           
                                                                                                                                
3:46:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  WOOL  moved to  report  CSSB  86(FIN) AM  out  of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal notes.  There being no objection, it was so ordered.                                                                     
                                                                                                                                
3:46:51 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 3:47 p.m. to 3:50 p.m.                                                                       
                                                                                                                                
         SB  76-ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG                                                                     
                                                                                                                                
3:50:34 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."                                                                                
                                                                                                                                
3:51:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WOOL moved to adopt HCS for CSSSSB 76(FIN) as the                                                                
working document.                                                                                                               
                                                                                                                                
CHAIR KITO objected for discussion.                                                                                             
                                                                                                                                
3:51:35 PM                                                                                                                    
                                                                                                                                
LAURA  STIDOLPH, Staff,  Representative Adam  Wool, Alaska  State                                                               
Legislature,  explained the  changes  in Version  S [included  in                                                               
members' packets],  which reads as follows  [original punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     • Sec 04.09.330, Page 23, line 28 Distillery retail                                                                        
          license. Adds: "The holder  of a distillery retail                                                                    
          license   may  combine   the  holder's   distilled                                                                    
          spirits   under   this   subsection   with   other                                                                    
          ingredients  that  are  not  alcoholic  beverages,                                                                    
          including mixers, liquids, and garnishes."                                                                            
          • Sec 04.09.350, Page 26, line 4 Seasonal                                                                             
          Restaurant   or  eating   place  tourism   license                                                                    
          Changes  population requirements  from "20,000  or                                                                    
          less" to "40,000 or less".                                                                                            
          • Sec 04.09.350, Page 26, line 27 Seasonal                                                                            
          Restaurant  or  eating  place  tourism  license  &                                                                    
          04.09.210(d)  Page  12,   line  30  Restaurant  or                                                                    
          eating  place license  modify allowable  hours for                                                                    
          providing entertainment from 3 PM to 11 AM.                                                                           
      • Sec 04.09.410, Page 30, lines 20-22 Manufacturer                                                                        
          sampling  endorsement, add  "; the  holder of  the                                                                    
          distillery  manufacturer license  may combine  the                                                                    
          holder's  distilled spirits  under this  paragraph                                                                    
          with  other  ingredients  that are  not  alcoholic                                                                    
          beverages,   including    mixers,   liquids,   and                                                                    
          garnishes."                                                                                                           
      • AS 04.09.490, Page 39, lines 14-20 Package store                                                                        
          sampling endorsement                                                                                                  
          The   holder   of   a   package   store   sampling                                                                    
          endorsement may  serve a  total volume  of samples                                                                    
          that does not  exceed [12] 6 oz of  beer or cider,                                                                    
          if the cider contains  8.5% alcohol by volume; [6]                                                                    
          3 oz of  wine, mead, sake, or cider,  if the cider                                                                    
          contains 8.5% or more alcohol  by volume; or [1.5]                                                                    
          .75 oz of distilled spirits.                                                                                          
        • AS 04.11.170, Page 52, lines 20-25 Distillery                                                                         
          license New sections added to read:                                                                                   
               (f) The  holder of  a distillery  license may                                                                    
               combine  the  distiller's product  under  (d)                                                                    
               and   (e)   of   this  section   with   other                                                                    
               ingredients,  including  mixers, liquids,  or                                                                    
               garnishes, that are  not alcoholic beverages.                                                                    
               (g) In  this section,  "distillery's product"                                                                    
               means an alcoholic  beverage distilled on the                                                                    
               licensed premises.                                                                                               
        • AS 04.11.400(a), Page 66, lines 2-3, Distillery                                                                       
          license                                                                                                               
          Add "one" before "winery  retail", remove "or" add                                                                    
          "and  one" before  "distillery retail  license for                                                                    
          each   9,000  population   or  fraction   of  that                                                                    
          population".                                                                                                          
        • AS 04.11.670, Page 78, lines 24-31, Page 79 lines                                                                     
          1-3, Foreclosure                                                                                                      
          Allows license  issued under this  title is  to be                                                                    
          subject to  foreclosure and be used  as collateral                                                                    
          to secure a debt if the license is transferred to                                                                     
          another   person,  and   the  transferor   secures                                                                    
          payment  for real  and personal  property conveyed                                                                    
          to  the   transferee  upon  the  promise   of  the                                                                    
          transferee  to transfer  the license  back to  the                                                                    
          transferor upon default in payment.                                                                                   
        • AS 04.16.180(b), Page 93, lines 6-7, Revocation                                                                       
          of a license                                                                                                          
          Eliminates the  requirement of  license revocation                                                                    
          for  certain violations,  and  reverts to  earlier                                                                    
          language:  "on third  conviction,  the license  of                                                                    
          the   premises  involved   may  be   suspended  or                                                                    
          revoked."                                                                                                             
                                                                                                                                
3:55:24 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 3:55 p.m. to 3:59 p.m.                                                                       
                                                                                                                                
3:59:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE BIRCH had a query regarding manufacture retail                                                                   
licenses which may fall outside the population limit.                                                                           
                                                                                                                                
ERIKA MCCONNELL, Director, AMCO, replied in the affirmative.                                                                    
                                                                                                                                
4:00:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STUTES  asked where  it states in  Title 4  that a                                                               
beverage  dispensary  license (BDL)  cannot  have  anyone in  the                                                               
establishment after closing time.                                                                                               
                                                                                                                                
4:01:08 PM                                                                                                                    
                                                                                                                                
DALE FOX, Alaska CHARR, answered that under AS 4.16.0.10(c):                                                                    
                                                                                                                                
     A  licensee, an  agent, or  employee may  not permit  a                                                                    
     person to  enter and  a person  may not  enter premises                                                                    
     licensed  under this  title between  the hours  of 5:00                                                                    
     a.m. and 8:00  a.m. each day. This  subsection does not                                                                    
     apply  to common  carriers  or to  an  employee of  the                                                                    
     licensee  who is  on the  premises to  prepare for  the                                                                    
     next day's  business. A person  may enter or  remain on                                                                    
     the premises of a bona  fide restaurant or eating place                                                                    
     licensed   under  this   title  to   consume  food   or                                                                    
     nonalcoholic beverages.                                                                                                    
                                                                                                                                
MR. FOX added that under (d):                                                                                                   
                                                                                                                                
     A  municipality may  provide  for  additional hours  of                                                                    
     closure under AS 04.21.010.                                                                                                
                                                                                                                                
REPRESENTATIVE  STUTES   asked  whether  the   rewrite  addresses                                                               
closing hours.                                                                                                                  
                                                                                                                                
MR. FOX answered it does not.                                                                                                   
                                                                                                                                
REPRESENTATIVE STUTES asked why not.                                                                                            
                                                                                                                                
MR. FOX answered that he thinks it was an oversight.                                                                            
                                                                                                                                
CHAIR KITO clarified  that hours are 5 a.m. to  8 a.m. unless the                                                               
person is working, delivering, or contracting.                                                                                  
                                                                                                                                
REPRESENTATIVE KNOPP asked whether  there were afterhours parties                                                               
allowed on premises.                                                                                                            
                                                                                                                                
REPRESENTATIVE  STUTES remarked  that  with  BDLs, closing  hours                                                               
means everyone off premises.   She asked whether distilleries and                                                               
breweries had to adhere to this.                                                                                                
                                                                                                                                
CHAIR KITO  clarified that the  rewrite leaves language  in place                                                               
for existing  entities.  He  added they  would have to  adhere to                                                               
what local ordinances require.                                                                                                  
                                                                                                                                
REPRESENTATIVE   STUTES  asked   whether  the   statute  requires                                                               
everyone off premise as well.                                                                                                   
                                                                                                                                
MS. MCCONNELL  answered that the  language states  businesses may                                                               
not serve brewed beverages between 8 p.m. and 5 a.m.                                                                            
                                                                                                                                
REPRESENTATIVE WOOL  underlined that state law  states no patrons                                                               
may be on premises between 5 a.m. and  8 a.m.  He said he did not                                                               
know whether local ordinance addresses the same hours.                                                                          
                                                                                                                                
MS. MCCONNELL assumed it meant  the business would have to adhere                                                               
to the local ordinance.                                                                                                         
                                                                                                                                
4:08:28 PM                                                                                                                    
                                                                                                                                
MS.  MCCONNELL answered  there is  a situation  in which  food is                                                               
served meaning  patrons can  remain on  premises to  finish their                                                               
meal.                                                                                                                           
                                                                                                                                
REPRESENTATIVE  WOOL  said  the  state says  that  after  5  p.m.                                                               
whereas  the local  ordinance  can say  that  businesses have  to                                                               
close their doors but don't have to kick everyone out.                                                                          
                                                                                                                                
MS  MCCONNELL   shared  her  belief  that   the  municipality  of                                                               
Anchorage, Alaska, has a local  ordinance stating that businesses                                                               
can  decide whether  everyone has  to  leave or  to stop  serving                                                               
alcohol.                                                                                                                        
                                                                                                                                
4:10:06 PM                                                                                                                    
                                                                                                                                
CHAIR  KITO  removed his  objection  to  adopting CS  Version  S.                                                               
There being no objection, it was so ordered.                                                                                    
                                                                                                                                
4:10:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STUTES moved  to adopt  Amendment 1,  labeled 30-                                                               
LS0015\S.3, Bruce, 5/4/18, which read as follows:                                                                               
                                                                                                                                
     Page 21, line 19:                                                                                                          
          Delete "36"                                                                                                           
          Insert "24"                                                                                                           
                                                                                                                                
     Page 21, line 20:                                                                                                          
          Delete "18"                                                                                                           
          Insert "12"                                                                                                           
                                                                                                                                
     Page 22, line 19:                                                                                                          
          Delete "18"                                                                                                           
          Insert "12"                                                                                                           
                                                                                                                                
     Page 22, line 21:                                                                                                          
          Delete "36"                                                                                                           
          Insert "24"                                                                                                           
                                                                                                                                
     Page 23, line 26:                                                                                                          
          Delete "three"                                                                                                        
          Insert "two"                                                                                                          
                                                                                                                                
REPRESENTATIVE STUTES spoke to Amendment  1.  She stated it would                                                               
specifically reduce allowable amounts by  one third to 24 oz. She                                                               
said  she  thinks  reducing  samples  by  one  third  is  a  fair                                                               
compromise.  She noted the bill sponsor is not opposed.                                                                         
                                                                                                                                
REPRESENTATIVE BIRCH  expressed he  was not comfortable  with the                                                               
amendment  because he  does not  know where  the initial  numbers                                                               
came from.                                                                                                                      
                                                                                                                                
REPRESENTATIVE WOOL responded  that the issue had come  up when a                                                               
bill was  pass in  2014. He  spoke to  the industry  standard and                                                               
said  that every  state except  Oklahoma has  tasting rooms.   He                                                               
stated  the samples  range  from 2.5  oz to  3.25  oz and  Alaska                                                               
allows 3 oz.                                                                                                                    
                                                                                                                                
CHAIR  KITO  suggested  Representative Wool  was  speaking  about                                                               
distilled spirits specifically.                                                                                                 
                                                                                                                                
REPRESENTATIVE WOOL answered in the affirmative.                                                                                
                                                                                                                                
REPRESENTATIVE KNOPP said he thinks it is a great compromise.                                                                   
                                                                                                                                
4:15:21 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 4:15 p.m. to 4:15 p.m.                                                                       
                                                                                                                                
4:16:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CHUCK KOPP,  Alaska State  Legislature, spoke  to                                                               
the work  that had  been done  in creating  the legislation.   He                                                               
stated the  bill sponsor had  no opposition  to Amendment 1.   He                                                               
said that all things considered, it would not harm the bill.                                                                    
                                                                                                                                
4:17:15 PM                                                                                                                    
                                                                                                                                
CHAIR  KITO  removed  his  objection.   There  being  no  further                                                               
objection, Amendment 1 was adopted.                                                                                             
                                                                                                                                
CHAIR KITO  mentioned a concern  he had with sporting  events and                                                               
theater alcohol consumption.                                                                                                    
                                                                                                                                
4:18:46 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 4:18 p.m. to 4:26 p.m.                                                                       
                                                                                                                                
4:26:35 PM                                                                                                                    
                                                                                                                                
CHAIR  KITO stated  he had  spoken with  Senator Micciche,  prime                                                               
sponsor, who  had expressed he  did have concerns  about reducing                                                               
volumes.  He  said the sponsor had agreed  about reducing samples                                                               
in package stores.                                                                                                              
                                                                                                                                
REPRESENTATIVE STUTES  indicated she  had previously  spoken with                                                               
the sponsor of HB 357,  Representative Kopp, who had presented no                                                               
objection.                                                                                                                      
                                                                                                                                
4:27:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE BIRCH moved to call for the question                                                                             
                                                                                                                                
4:28:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON stated he did  not feel there was a need                                                               
for that.                                                                                                                       
                                                                                                                                
CHAIR KITO  said it was unfortunate  that bill had taken  so long                                                               
to  get to  the  current point.   He  stated  he appreciated  the                                                               
amount of work  that had gone into the legislation.   He added he                                                               
thought it was in decent shape to move forward.                                                                                 
                                                                                                                                
REPRESENTATIVE  WOOL commented  there had  been public  testimony                                                               
but  not  much  analysis  within  the  committee.    He  said  he                                                               
understood the "time  crunch" the committee was under.   He spoke                                                               
to changes in the bill versions.                                                                                                
                                                                                                                                
REPRESENTATIVE BIRCH  encouraged the  committee to move  the bill                                                               
forward.                                                                                                                        
                                                                                                                                
4:34:40 PM                                                                                                                    
                                                                                                                                
CHAIR KITO remarked that work in committee can seem like a                                                                      
"teeter-totter" but that he was interested in moving the bill                                                                   
forward.                                                                                                                        
                                                                                                                                
4:35:39 PM                                                                                                                    
                                                                                                                                
CHAIR KITO moved to report SB 76 out of committee as amended                                                                    
with individual recommendations and the accompanying fiscal                                                                     
notes.  There being no objection, it was so ordered.                                                                            
                                                                                                                                
4:36:52 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Labor and Commerce Standing Committee meeting was adjourned at                                                                  
4:36 p.m.                                                                                                                       

Document Name Date/Time Subjects
SB86 Letters of Support 5.3.18.pdf HL&C 5/4/2018 3:15:00 PM
SB 86
SB76 Ver. S.pdf HL&C 5/4/2018 3:15:00 PM
SB 76
SB76 and HB 357 Letters of support 5.4.18.pdf HL&C 5/4/2018 3:15:00 PM
HB 357
SB 76
SB76 and HB 357 Oppostion Letters 5.4.18.pdf HL&C 5/4/2018 3:15:00 PM
HB 357
SB 76
SB76 Explanation of Changes Ver C to Ver S 5.4.18.pdf HL&C 5/4/2018 3:15:00 PM
SB 76
SB76 Amendment S.3.pdf HL&C 5/4/2018 3:15:00 PM
SB 76