Legislature(2019 - 2020)BARNES 124

05/08/2019 03:15 PM LABOR & COMMERCE

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

Document Name Date/Time Subjects
SB 16.Sponsor.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Bill Version G.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Bill Version O.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Summary of Changes to Version G.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Sectional.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Fiscal REV.PDF HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Fiscal DCCED AMCO.PDF HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Supporting Doc AMCO.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Support State Fair.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Support Price.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Support PAC.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Support KTVA Article.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Support KTUU.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Support KTOO2.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Support KTOO.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Support KINY Article.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Support Herrington.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Support Gilmore.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Support Frontiersman Article.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Support Eaglecrest.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Support CER STAR.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Support CER STAR2.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Support ATA.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Support AP Article.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Support Alaska Club.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Support ADN Article3.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Support ADN Article2.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Support ADN Article.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Letter from CHARR.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Letter ATA2.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Leg Audit.pdf HL&C 5/8/2019 3:15:00 PM
SB 16
SB 16.Backup Leg Audit 2014.pdf HL&C 5/8/2019 3:15:00 PM
SB 16