Legislature(2019 - 2020)BARNES 124
03/09/2020 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB235 | |
| HB93 | |
| HB301 | |
| SB52 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 235 | TELECONFERENCED | |
| *+ | HB 301 | TELECONFERENCED | |
| + | SB 52 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 93 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
March 9, 2020
3:15 p.m.
MEMBERS PRESENT
Representative Ivy Spohnholz, Chair
Representative Louise Stutes
Representative Zack Fields
Representative Sara Hannan
Representative Andi Story
Representative Mel Gillis
Representative Sara Rasmussen
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HOUSE BILL NO. 235
"An Act relating to allocations of funding for the Alaska
Workforce Investment Board; and providing for an effective
date."
- MOVED CSHB 235(L&C) OUT OF COMMITTEE
HOUSE BILL NO. 93
"An Act relating to temporary courtesy licenses for certain
nonresident professionals; and relating to the Department of
Commerce, Community, and Economic Development."
- MOVED CSHB 93(L&C) OUT OF COMMITTEE
HOUSE BILL NO. 301
"An Act relating to certificates of fitness for plumbers and
electricians."
- HEARD & HELD
CS FOR SENATE BILL NO. 52(FIN) AM
"An Act relating to alcoholic beverages; relating to the
regulation of manufacturers, wholesalers, and retailers of
alcoholic beverages; relating to licenses, endorsements, and
permits involving alcoholic beverages; relating to common
carrier approval to transport or deliver alcoholic beverages;
relating to the Alcoholic Beverage Control Board; relating to
offenses involving alcoholic beverages; amending Rule 17(h),
Alaska Rules of Minor Offense Procedure; and providing for an
effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 235
SHORT TITLE: AK WORKFORCE INVESTMENT BOARD:ALLOCATIONS
SPONSOR(s): REPRESENTATIVE(s) WOOL
02/05/20 (H) READ THE FIRST TIME - REFERRALS
02/05/20 (H) L&C, FIN
02/21/20 (H) L&C AT 3:15 PM BARNES 124
02/21/20 (H) Heard & Held
02/21/20 (H) MINUTE(L&C)
02/24/20 (H) L&C AT 3:15 PM BARNES 124
02/24/20 (H) Heard & Held
02/24/20 (H) MINUTE(L&C)
02/28/20 (H) L&C AT 3:15 PM BARNES 124
02/28/20 (H) <Bill Hearing Canceled>
03/02/20 (H) L&C AT 3:15 PM BARNES 124
03/02/20 (H) <Bill Hearing Canceled>
03/04/20 (H) L&C AT 3:15 PM BARNES 124
03/04/20 (H) -- MEETING CANCELED --
03/09/20 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 93
SHORT TITLE: MILITARY SPOUSE COURTESY LICENSE
SPONSOR(s): REPRESENTATIVE(s) TUCK
03/13/19 (H) READ THE FIRST TIME - REFERRALS
03/13/19 (H) MLV, L&C
04/02/19 (H) MLV AT 1:00 PM GRUENBERG 120
04/02/19 (H) Heard & Held
04/02/19 (H) MINUTE(MLV)
04/04/19 (H) MLV AT 1:00 PM GRUENBERG 120
04/04/19 (H) -- MEETING CANCELED --
04/09/19 (H) MLV AT 1:00 PM GRUENBERG 120
04/09/19 (H) -- MEETING CANCELED --
04/16/19 (H) MLV AT 1:00 PM GRUENBERG 120
04/16/19 (H) Moved HB 93 Out of Committee
04/16/19 (H) MINUTE(MLV)
04/17/19 (H) MLV RPT 6DP
04/17/19 (H) DP: THOMPSON, RAUSCHER, TUCK, JACKSON,
TARR, LEDOUX
05/06/19 (H) L&C AT 3:15 PM BARNES 124
05/06/19 (H) -- MEETING CANCELED --
05/10/19 (H) L&C AT 3:15 PM BARNES 124
05/10/19 (H) Heard & Held
05/10/19 (H) MINUTE(L&C)
03/02/20 (H) L&C AT 3:15 PM BARNES 124
03/02/20 (H) Heard & Held
03/02/20 (H) MINUTE(L&C)
03/06/20 (H) L&C AT 3:15 PM BARNES 124
03/06/20 (H) Heard & Held
03/06/20 (H) MINUTE(L&C)
03/09/20 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 301
SHORT TITLE: ELECTRICIAN & PLUMBER APPRENTICESHIPS
SPONSOR(s): REPRESENTATIVE(s) SHAW
02/24/20 (H) READ THE FIRST TIME - REFERRALS
02/24/20 (H) L&C
03/09/20 (H) L&C AT 3:15 PM BARNES 124
BILL: SB 52
SHORT TITLE: ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG
SPONSOR(s): SENATOR(s) MICCICHE
02/11/19 (S) READ THE FIRST TIME - REFERRALS
02/11/19 (S) L&C, JUD, FIN
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)
03/28/19 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/28/19 (S) Heard & Held
03/28/19 (S) MINUTE(L&C)
04/02/19 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
04/02/19 (S) Heard & Held
04/02/19 (S) MINUTE(L&C)
04/04/19 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
04/04/19 (S) -- MEETING CANCELED --
04/09/19 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
04/09/19 (S) Heard & Held
04/09/19 (S) MINUTE(L&C)
04/11/19 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
04/11/19 (S) Heard & Held
04/11/19 (S) MINUTE(L&C)
04/16/19 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
04/16/19 (S) Moved CSSB 52(L&C) Out of Committee
04/16/19 (S) MINUTE(L&C)
04/17/19 (S) L&C RPT CS FORTHCOMING 4DP
04/17/19 (S) DP: REINBOLD, COSTELLO, BIRCH, BISHOP
04/17/19 (S) JUD AT 1:30 PM BELTZ 105 (TSBldg)
04/17/19 (S) -- MEETING CANCELED --
04/17/19 (S) JUD AT 6:00 PM BELTZ 105 (TSBldg)
04/17/19 (S) -- MEETING CANCELED --
04/19/19 (S) L&C CS RECEIVED SAME TITLE
04/22/19 (S) JUD AT 6:00 PM BELTZ 105 (TSBldg)
04/22/19 (S) Heard & Held
04/22/19 (S) MINUTE(JUD)
04/23/19 (S) JUD AT 6:00 PM BELTZ 105 (TSBldg)
04/23/19 (S) Heard & Held
04/23/19 (S) MINUTE(JUD)
04/24/19 (S) JUD AT 1:30 PM BELTZ 105 (TSBldg)
04/24/19 (S) Heard & Held
04/24/19 (S) MINUTE(JUD)
04/26/19 (S) JUD AT 1:30 PM BELTZ 105 (TSBldg)
04/26/19 (S) Moved CSSB 52(JUD) Out of Committee
04/26/19 (S) MINUTE(JUD)
04/29/19 (S) JUD RPT CS 2DP 1AM SAME TITLE
04/29/19 (S) DP: HUGHES, MICCICHE
04/29/19 (S) AM: KIEHL
02/11/20 (S) FIN AT 9:00 AM SENATE FINANCE 532
02/11/20 (S) Heard & Held
02/11/20 (S) MINUTE(FIN)
02/19/20 (S) FIN RPT CS FORTHCOMING 2DP 2NR 1AM
02/19/20 (S) DP: VON IMHOF, BISHOP
02/19/20 (S) NR: WIELECHOWSKI, HOFFMAN
02/19/20 (S) AM: WILSON
02/19/20 (S) FIN AT 9:00 AM SENATE FINANCE 532
02/19/20 (S) Moved CSSB 52(FIN) Out of Committee
02/19/20 (S) MINUTE(FIN)
02/21/20 (S) FIN CS RECIEVED SAME
TITLE
02/26/20 (S) TRANSMITTED TO (H)
02/26/20 (S) VERSION: CSSB 52(FIN) AM
02/28/20 (H) READ THE FIRST TIME - REFERRALS
02/28/20 (H) L&C, FIN
03/09/20 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
ASHLEY CARRICK, Staff
Representative Adam Wool
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided the opening statement for HB 235
and answered questions, on behalf of Representative Wool, prime
sponsor.
TED MADSEN, Staff
Representative Ivy Spohnholz
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Explained the changes in the proposed
committee substitute (CS) for HB 235, Version M, on behalf of
Chair Spohnholz.
MATT GRUENING, Staff
Representative Louise Stutes
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided information on the Kodiak Seafood
and Marine Science Center during the hearing on HB 235, on
behalf of Representative Stutes.
LENNON WELLER, Economist/UI Actuary
Department of Labor & Workforce Development
Juneau, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
235.
REPRESENTATIVE CHRIS TUCK
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, provided the opening
statement for HB 93.
REPRESENTATIVE GABRIELLE LEDOUX
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, introduced HB 301.
DEBORAH KELLY, Director
National Electrical Contractors Association & International
Brotherhood of Electrical Workers Apprenticeship Program
Anchorage, Alaska
POSITION STATEMENT: Testified in support of the CSHB 301.
DAVE MCALLEN, CEO
The Superior Group Inc.
National Electrical Contractors Association
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 301.
SENATOR PETER MICCICHE
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, introduced SB 52.
ANNA BRAWLEY, Staff
Senator Peter Micciche
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided a PowerPoint presentation,
entitled "Alcohol Beverage Control (ABC) Board Title 4 Review
Project," on behalf of Senator Micciche, prime sponsor, and
answered questions from the committee.
MELISSA WALTER, Administrative Officer
Alcohol & Marijuana Control Office
Department of Commerce, Community & Economic Development
Anchorage, Alaska
POSITION STATEMENT: Answered questions during the hearing on SB
52.
ACTION NARRATIVE
3:15:21 PM
CHAIR IVY SPOHNHOLZ called the House Labor and Commerce Standing
Committee meeting to order at 3:15 p.m. Representatives Story,
Stutes, Fields, Gillis, Hannan, and Spohnholz were present at
the call to order. Representative Rasmussen arrived as the
meeting was in progress.
HB 235-AK WORKFORCE INVESTMENT BOARD:ALLOCATIONS
3:16:17 PM
CHAIR SPOHNHOLZ announced that the first order of business would
be HOUSE BILL NO. 235, "An Act relating to allocations of
funding for the Alaska Workforce Investment Board; and providing
for an effective date."
3:16:34 PM
ASHLEY CARRICK, Staff, Representative Adam Wool, Alaska State
Legislature, on behalf of Representative Wool, prime sponsor,
provided a summary of HB 235. She stated that HB 235
reauthorizes the Technical Vocational Education Program (TVEP)
for three years to 2023. This program provides technical and
vocational training across the state to various recipients and
has been in place since 2000.
3:17:17 PM
REPRESENTATIVE STUTES moved to adopt the proposed committee
substitute (CS) for HB 235, labeled 31-LS1480\M, Wayne, 3/6/20,
as the working document.
3:17:37 PM
CHAIR SPOHNHOLZ objected for the purpose of discussion.
3:17:47 PM
TED MADSEN, Staff, Representative Ivy Spohnholz, Alaska State
Legislature, on behalf of Chair Spohnholz, explained the changes
to HB 235 proposed under the committee substitute (CS), Version
M. He paraphrased from the document, entitled Explanation of
Changes Version A to Version M [included in the committee
packet], which read in its entirety as follows [original
punctuation provided]:
The proposed committee substitute makes three
substantive changes to the original A version of House
Bill 235:
? In Section 1, it changes the TVEP contribution rate
from .16 to .18 percent. This adds to the overall
available pool of TVEP funds. This change is found on
page 1, line 7 of version M.
? In Section 2, it extends the sunset date an
additional 2 years. The program would now sunset on
June 30, 2025, rather than 2023 as proposed in the A
version. This change is found on page 1, line 13 of
the M version.
? In Section 2, the M version proposes to add one new
allocation at 1.925% to the Kodiak Seafood and Marine
Science Center. This change is found on page 2, line
13.
o Allocations for other institutions, aside from
the University of Alaska, are slightly decreased.
These changed allocations are found on page 2, lines
4-12.
o While allocations for most existing statutorily
designated institutions are reduced by 3.5% from their
current statutory amount, the change to the TVEP rate
found in Section 1 allows each institution to see an
increase in overall funds disbursed. See attached
Table #1.
o Section 3 adds a new subsection to AS
23.15.835. This new subsection (i) directs that the
University of Alaska administer the funds allocated to
the Kodiak Seafood and Marine Science Center for
programing and capital improvements consistent with AS
16.52.020. AS 16.52.020 spells out the duties of the
Kodiak Seafood and Marine Science Center. This change
is found on page 2, lines 14-18.
There is one additional change to the A version in the
retroactivity clause (section 4). All sections of the
bill, including the newly proposed changes in Section
1 and Section 2, and the added Section 3, will take
effect retroactively if the bill does not take effect
by June 30, 2020.
3:20:11 PM
MATT GRUENING, Staff, Representative Louise Stutes, Alaska State
Legislature, on behalf of Representative Stutes, discussed the
Kodiak Seafood and Marine Science Center (KSMSC). The KSMSC was
established under the University of Alaska (UA) under the
College of Fisheries and Ocean Sciences in 1981 by the
legislature through Title 16 [Fish and Game], Chapter 52
[Fishery Industrial Technology Center], AS 16.52.010-070, as the
Fisheries Industrial Technology Center. It is the states only
seafood pilot plant. The KSMSC mission under AS 15.52.020, is
to support employment opportunities and other benefits to the
state and the seafood industry through training, research, and
industry collaboration. He provided a short history of the
center and directed attention to an informational document,
entitled About Kodiak Seafood and Marine Science Center
[included in the committee packet]. He said that Alaskas
seafood industry is the states single largest private employer;
however, the processing industry receives little annual
dedicated funding. He explained that seafood processing
employees contribute a significant amount of funds to the TVEP
each year. From fiscal year 2016 (FY 16) to FY 18 processing
workers contributed an average of $607,000 to the fund while
only averaging $64,000 per year from FY 14 to FY 20 in TVEP
funding, which is approximately 1.2 percent of the universitys
TVEP allocation. He stated that while the university and Alaska
Vocational Technical Center (AVTEC) have increased a percentage
of their TVEP funds focused on fisheries and maritime training
over the last few years, very little funding has been targeted
to the seafood industry workforce directly.
MR. GRUENING noted that the industry has clearly identified
training needs and desires through the Alaska Research
Consortium survey [included in the committee packet], which was
provided for by a federal Economic Development Administration
grant to identify the statewide needs. He reported that over
25,000 seafood workers contribute to the TVEP fund annually. He
said with the legislative mandate for the KSMSC yet to be
realized, this reauthorization represents an opportunity to
reinvest in Alaskas seafood industry with funds that are
generated from that industry. He further noted that doing so
will help contribute to statewide employment opportunities, the
value of Alaskas seafood, and the long-term economic health of
the state. He added that this would not result in a decrease to
shares. Furthermore, there are letters of support from
organizations [included in the committee packet], such as the
Pacific Seafood Processors Association (PSPA); the Alaska
Seafood Marketing Institute (ASMI); North Pacific Seafoods, Inc.
(NPSI); the Alaska Research Consortium (ARC); and others.
CHAIR SPOHNHOLZ asked for the bill sponsors position on the
proposed CS.
3:25:12 PM
MS. CARRICK explained that Version M represents a compromise
between Representative Wool, prime sponsor, and the House Labor
and Commerce Standing Committee. She said Representative Wool
would like to express his acceptance of the proposed CS.
3:25:46 PM
REPRESENTATIVE STORY expressed her concern about extending the
reauthorization period from three years to five years. She
pointed out that HB 235 concerns contributions to the states
technical and vocational education programs, adding that Alaska
has made strides in offering those. She offered her belief that
a three-year sunset would better allow for the opportunity to
readjust if necessary. She asked how input - specifically
regarding industry trends - would be incorporated and received
with a five-year authorization period.
MS. CARRICK explained that recipients prefer the stability of
knowing that they will receive funding. She said all recipients
that were asked unanimously preferred the 5-year reauthorization
period compared to the option of three years.
REPRESENTATIVE STORY opined that three years is certainty.
CHAIR SPOHNHOLZ asked Representative Story if she intends on
offering an amendment today or if she is objecting to the CS.
REPRESENTATIVE STORY expressed her hope that the bill sponsor
would withdraw the five-year sunset.
CHAIR SPOHNHOLZ pointed out that currently, its part of the
proposed CS. She explained that Representative Story could
offer a conceptual amendment to the CS if Version M were
adopted.
3:30:27 PM
REPRESENTATIVE FIELDS expressed his support for the stability
that a five-year window lends the recipients and the
institutions. He offered his belief that between the annual
TVEP report and the ability that legislators have to interact
with those institutions there will be an opportunity to make
suggestions or intervene if necessary.
3:31:20 PM
REPRESENTATIVE RASMUSSEN asked if the increased contribution
rate is .02 percent of every Alaska workers paycheck.
CHAIR SPOHNHOLZ clarified that it is not an increase on
withholdings from workers paychecks. She explained that the
fund was overcapitalized, leaving enough money to withstand this
additional increase. She said they are putting that money to
good use.
REPRESENTATIVE RASMUSSEN questioned whether there is enough of a
surplus to cover five years instead of three.
CHAIR SPOHNHOLZ answered yes.
3:32:29 PM
LENNON WELLER, Economist/UI Actuary, Department of Labor &
Workforce Development, explained that the unemployment insurance
trust fund has currently found itself in an enviable position
with substantial reserves. Currently, there is nearly half a
billion in the fund, which is roughly 80 million dollars above
the ideal position to meet the majority of potential benefit
costs. Regarding reserve ratios, he said, the fund targets
between 3-3.3 percent of wages at any given time. Currently,
there is over 3.8 percent, which means .5 percent of wages are
above their own statutory targets.
CHAIR SPOHNHOLZ noted that there is over 500 million dollars of
overcapitalized in the fund and the proposed CS budgets 1.68
million dollars additional per year.
MR. WELLER affirmed that. He restated that the fund has nearly
500 million dollars in it, adding that they are overcapitalized
by roughly 80 million dollars. He said based on the statutory
and historical targets, taking an additional 1.6 million dollars
from the fund would not be detrimental.
3:34:59 PM
CHAIR SPOHNHOLZ removed her objection. There being no further
objection, Version M was adopted as the working draft.
3:35:19 PM
REPRESENTATIVE STORY expressed her hope that the next annual
report will show trends in enrollment in the various career and
technical programs and that any necessary adjustments will be
considered.
3:36:36 PM
REPRESENTATIVE RASMUSSEN agreed with Representative Story. She
moved Conceptual Amendment 1, which would replace the five-year
reauthorization with a three-year reauthorization.
CHAIR SPOHNHOLZ objected to Conceptual Amendment 1. She
maintained that the majority of TVEP recipients prefer more
stability in funding.
3:37:35 PM
MS. CARRICK reiterated that after speaking with over half of the
TVEP recipients, she is certain that they unanimously prefer a
five-year reauthorization.
3:38:03 PM
REPRESENTATIVE HANNAN expressed her opposition to a three-year
reauthorization. She opined that a three-year window to
reauthorize the program is a short window to accomplish any
planning. She said five years is not too long, and any program
that is not meeting its labor needs may have already shifted and
changed after five years. She stated that five years is a good
planning window.
3:39:30 PM
REPRESENTATIVE FIELDS noted that NACTEC, for example, works
closely with the local school district, so in considering the
timeframe one must also take into account the actions of the
school board and, in turn, the employers. He said five years is
not a long time to implement a change, analyze, and assess it.
3:40:07 PM
REPRESENTATIVE RASMUSSEN asserted that she doesnt want this to
be perceived as an attack on the importance of this program.
She said there may be adjustments and additional needs that
arise, which is the reason she is advocating for a three-year
reauthorization.
A roll call vote was taken. Representatives Rasmussen, Story,
and Gillis voted in favor of Conceptual Amendment 1.
Representatives Fields, Stutes, Hannan, and Spohnholz voted
against it. Therefore, Conceptual Amendment 1 failed by to be
adopted by a vote of 3-4.
CHAIR SPOHNHOLZ articulated that an important part of crafting a
compromise is to make sure that everyone wins. She expressed
her hope that CSHB 235 is now moving from the committee with
that standpoint. She said a new beneficiary was added to the
TVEP, which helps to support Alaskas fishing industry;
furthermore, every beneficiary came out with more financing
without jeopardizing the fund source or the stability of the
state. She shared her belief that this is a win.
3:42:51 PM
REPRESENTATIVE STUTES moved to report CSHB 235, Version
LS1480\M, Wayne, 3/6/20, out of committee with individual
recommendations and the accompanying fiscal notes. Without
objection, CSHB 235(L&C) was moved from the House Labor and
Commerce Standing Committee.
3:43:17 PM
The committee took an at-ease from 3:43 to 3:46 p.m.
HB 93-MILITARY SPOUSE COURTESY LICENSE
3:46:00 PM
CHAIR SPOHNHOLZ announced that the next order of business would
be HOUSE BILL NO. 93, "An Act relating to temporary courtesy
licenses for certain nonresident professionals; and relating to
the Department of Commerce, Community, and Economic
Development."
3:46:13 PM
REPRESENTATIVE CHRIS TUCK, Alaska State Legislature, as prime
sponsor, provided a brief summary of HB 93. The bill, he said,
implements a reporting requirement in an attempt to help the
military spouses transition into Alaskas workplace by assessing
their occupational licenses and issuing temporary licenses.
3:46:45 PM
REPRESENTATIVE HANNAN moved to adopt Amendment 1, [labeled 31-
LS0670\M.1, Fisher, 3/6/20], which read:
Page 1, following line 12:
Insert a new paragraph to read:
"(3) the number and type of licenses that
have been applied for,"
Renumber the following paragraphs accordingly.
CHAIR SPOHNHOLZ objected for the purpose of discussion.
3:46:59 PM
REPRESENTATIVE HANNAN stated that Amendment 1 would add a new
paragraph (3) on Page 1, Line 12, that states, the number and
type of licenses that have been applied for.
3:47:48 PM
CHAIR TUCK said this adds clarity to the bill. He added that if
the only thing known is the licenses that are issued, its not
clear if they are on track or not.
CHAIR SPOHNHOLZ removed her objection. There being no further
objection, Amendment 1 was adopted.
3:48:29 PM
REPRESENTATIVE STUTES moved to report HB 93, as amended, out of
committee with individual recommendations and the accompanying
fiscal notes. Without objection, CSHB 93(L&C) was moved from
the House Labor and Commerce Standing Committee.
3:48:49 PM
The committee took an at-ease from 3:48 to 3:51 p.m.
HB 301-ELECTRICIAN & PLUMBER APPRENTICESHIPS
3:51:50 PM
CHAIR SPOHNHOLZ announced that the next order of business would
be HOUSE BILL NO. 301, "An Act relating to certificates of
fitness for plumbers and electricians."
3:52:28 PM
REPRESENTATIVE STUTES moved to adopt the proposed committee
substitute (CS), labeled 31-LS1506\E, Fisher, 3/6/20, as the
working document.
CHAIR SPOHNHOLZ objected for the purpose of discussion.
3:52:53 PM
REPRESENTATIVE GABRIELLE LEDOUX, Alaska State Legislature, as
prime sponsor, provided a brief explanation of HB 301. She
stated that Alaska has a great apprenticeship program; however,
there are regulations that have been proposed that would gut
it. Essentially, she said, HB 301 would codify the current
regulations regarding apprenticeship programs so that the
changes promulgated by the administration would not go into
effect.
3:53:48 PM
REPRESENTATIVE FIELDS reported that they heard 375 public
comments in opposition to the proposed regulations and in favor
of the status quo. He said the proposed CS maintains that
status quo to provide certainty for the industry.
CHAIR SPOHNHOLZ removed her objection. There being no further
objection, Version E was adopted as the working document.
3:54:42 PM
DEBORAH KELLY, Director, National Electrical Contractors
Association & International Brotherhood of Electrical Workers
Apprenticeship Program, stated that she is in favor of the
committee substitute (CS) for HB 301. She said there are only
two building trades in Alaska that require licenses: plumbers
and electrical workers. She added that there is good reason for
licensing these trades. The work performed by plumbers and
electrical workers is complex and must be done properly;
however, once its completed, its often hidden behind walls,
floors, and ceilings. Consequently, the state has several
overlapping inspections to ensure that plumbing and electrical
installations are safe for the public: administers licenses,
state conducted inspections, and certificates of fitness. These
licenses ensure that workers know what theyre doing before they
work alone. She explained that this is accomplished by
requiring that trainees are in an apprenticeship the industry
standard for building competency. She said each apprenticeship
may be somewhat different, but they all follow the same basic
standards and expectations for training and experience to create
a qualified person. She explained that the Department of Labor
& Workforce Development (DLWD) recently proposed regulations
that would remove this apprenticeship requirement, effectively
stripping away all training and relevant experience requisites
for these trades. She offered her belief that it would have
created economic advantages for businesses not using
apprenticeships and allowed employers to hire out-of-state,
seasonal, low wage labor instead of investing in Alaskas
workforce. She noted that stakeholders were not consulted, and
the proposal included several provisions that showed a lack of
understanding of the realities in the field. HB 301, she said,
will prevent the department from turning trainee licenses into
nothing more than a ransom paid to work in the plumbing or
electrical trade. This bill will help ensure that the
department respects the statutory intent for public safety. She
urged the passage of CSHB 301.
3:59:25 PM
DAVE MCALLEN, CEO, The Superior Group Inc.; National Electrical
Contractors Association, expressed his hope to offer insight
from a contractor's perspective. He informed the committee that
he is the chief operations officer for The Superior Group Inc.,
which is an employee-owned, Alaska-based contractor that employs
both electrical workers, plumbers, and pipefitters. HB 301, he
said, will have a direct impact on their business operations.
He stated that he is also the vice president of the Alaska
chapter of the National Electrical Contractors Association
(NECA). He said that as an employer utilizing a workforce
heavily comprised of skilled tradespeople, registered
apprenticeship is an important tool in hiring and vetting the
workforce. A standardized means of identifying experience
levels and verifiable skillsets is critical in developing and
qualifying his crews. He said that his tradespeople can work in
high-risk environments and it is imperative that the product is
completed in a safe and code-compliant manner. He said that his
business appreciates and leans heavily on registered
apprenticeship and the associated licensing requirements.
Without it, it would be difficult to effectively evaluate
employees and ensure that theyre being placed in an appropriate
role. It is important for both the personal safety of the
employee and for the general public that inhabits the property
on which they worked. Furthermore, in todays competitive
market, the lower scale apprentice is a factor in determining
competitive bids and there is an expectation that they are
working on the installation, not simply observing the journeyman
doing the install. Consequently, he said that he sees a very
real need for that individual to be licensed to do the work. He
stated that apprenticeship and licensing work well in their
current form. Furthermore, he surmised that it is the best and
most cost-effective means of developing a local workforce. To
conclude, he stated his support for HB 301 and for codifying a
system that is currently working.
CHAIR SPOHNHOLZ announced that HB 301 was held over.
SB 52-ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG
4:04:17 PM
CHAIR SPOHNHOLZ announced that the final order of business would
be CS FOR SENATE BILL NO. 52(FIN) am, "An Act relating to
alcoholic beverages; relating to the regulation of
manufacturers, wholesalers, and retailers of alcoholic
beverages; relating to licenses, endorsements, and permits
involving alcoholic beverages; relating to common carrier
approval to transport or deliver alcoholic beverages; relating
to the Alcoholic Beverage Control Board; relating to offenses
involving alcoholic beverages; amending Rule 17(h), Alaska Rules
of Minor Offense Procedure; and providing for an effective
date."
4:04:32 PM
The committee took an at-ease from 4:04 to 4:06 p.m.
4:06:01 PM
SENATOR PETER MICCICHE, Alaska State Legislature, as prime
sponsor, introduced SB 52. He reported that alcohol remains the
top abused substance in Alaska; however, for those that drink
responsibly, the industry is also an important economic driver
throughout the state. He said this bill has been an eight-year
effort involving 13,000 hours of work and input from 120 primary
stakeholders, as well as from the legislature. He recounted the
legislation's previous unanimous passage from the Senate in SB
76, which died in the House Finance Committee thereafter. The
current version, CSSB 52(FIN) am, also unanimously passed the
Senate. He stated that the bill's primary focus is public
health and safety, adding that the industry, the Alcohol
Beverage Control (ABC) Board, the Alcohol & Marijuana Control
Office (AMCO), the legislature, and the public were also
included. The goals, he said, are promoting a fair business
climate; protection of public health and safety; limiting youth
access to alcohol; promoting responsible use and reducing the
harms of overconsumption; implementing change without negatively
harming existing businesses and responsible operators; and
expanding local control for municipalities. SB 52 is about
balance, reorganization, and fairness, he said. He further
noted that although the bill is dense, about 90 percent of it is
reorganization of existing law. He said it modernizes the
state's 35-year-old patchwork of statutes into a modernized
framework for today's industry.
4:09:13 PM
ANNA BRAWLEY, Staff, Senator Peter Micciche, Alaska State
Legislature, informed the committee that she is a senior
associate at Agnew::Beck Consulting and that [the firm] has been
involved in this process since the first meeting in 2012. She
proceeded to provide a PowerPoint presentation, entitled
"Alcohol Beverage Control (ABC) Board Title 4 Review, on behalf
of Senator Micciche, prime sponsor. She stated that each state
is responsible for regulating alcohol manufacture, distribution,
and sales in its jurisdiction since the repeal of prohibition in
1933. The purpose of alcohol control laws is to balance the
interests of the industry with the public health and safety
concerns about alcohol misuse (slide 2).
4:10:55 PM
REPRESENTATIVE STUTES sought clarification on the type of
consulting provided by Agnew::Beck Consulting.
MS. BRAWLEY stated that they provide many different services,
including community planning, public health, and public policy.
4:11:24 PM
REPRESENTATIVE FIELDS questioned whether Agnew::Beck Consulting
has a history of working with the Alaska Mental Health Trust
Authority on issues of public safety related to substance misuse
and addiction.
MS. BRAWLEY confirmed that.
4:11:45 PM
MS. BRAWLEY resumed her presentation. She said the purpose of
the Title 4 project has been to consider the statutes as a whole
and to make them work better for everyone. She restated the
goals - all aimed towards promoting a fair business climate and
protecting public health and safety, as well as making Title 4 a
clear and consistent legal framework (slide 5).
CHAIR SPOHNHOLZ inquired as to the original impetus for the
entire Title 4 rewrite process.
MS. BRAWLEY explained that the process was initiated by the ABC
Board in 2012. The board members spearheaded the effort and
brought different stakeholders together. She said originally,
it was a one-day meeting where they figured out the biggest
issues that needed to be addressed. They formed subcommittees
and for several years, the process was funded by the Rasmuson
Foundation, the Alaska Mental Health Trust Authority, and
Recover Alaska, which started as an initiative by the
aforementioned groups.
4:13:27 PM
MS. BRAWLEY directed attention to slide 6, entitled Key
Concepts in Title 4, which read as follows [original
punctuation provided]:
The 3-tier system: separation of manufacturers,
wholesalers and retailers to prevent monopolies
Licenses and permits:
License: allows a business to sell, serve,
distribute and/or manufacture alcohol for 2 years.
Permit: time-limited alcohol sales or service, by a
licensee or non-licensed organization.
Population limits: regulates number of licenses
available in each community by type
Proposed new concept: Endorsements on licenses to
expand premises or allowed activities
MS. BRAWLEY continued to slide 7. She explained that the 3-tier
system was created after prohibition to address the concern that
monopolies in the alcohol industry would encourage behaviors
that lead to the consequences of alcohol misuse. The original
3-tier system proclaimed that alcohol must be manufactured,
distributed, and sold to the public by different businesses;
however, the industry has evolved since then, particularly with
breweries and smaller manufacturers becoming a more popular
business model that sells directly to the public (slide 7). She
turned attention to slide 8, entitled Categories of
Recommendations, which read as follows [original punctuation
provided]:
1. Alcohol Licenses, Permits and Trade Practices
2. Role and Functions of the ABC Board and Staff
3. Underage Drinking and Youth Access to Alcohol
4. Regulation of Internet Sales of Alcohol
5. Technical or Administrative Law Changes
6. Local Option Communities*
* Note: Local Option recommendations are documented in
the report, but not included in SB 52. More
comprehensive discussion of Local Option laws is
needed in the future.
4:16:42 PM
REPRESENTATIVE HANNAN asked if anything in SB 52 changes the
ability to exercise local option for communities in Alaska.
SENATOR MICCICHE noted the importance of not confusing local
option communities with local control. He said the only local
option that is affected is the online regulation and the
delivery of alcohol to communities that may be local option.
4:17:44 PM
MS. BRAWLEY resumed her presentation. She explained that slides
9-11 illustrate the systems proposed reorganization. The
slides show license type by each tier (manufacturing tier,
wholesale tier, retail tier) of the industry, which endorsements
would apply to those licenses, and which licenses are exempt
from population limits (slides 9-11). She noted the three new
retail licenses highlighted on slide 10: brewery retail, winery
retail, and distillery retail. She said they are only new in
the sense that they are taking privileges that manufacturers
have today and making them separate retail licenses. She added
that all three are proposed under existing population limits
(slide 10).
4:19:55 PM
REPRESENTATIVE STUTES questioned whether SB 52 proposes any
changes to current population limits.
MS. BRAWLEY said the bill changes the proposed brewery, winery,
and distillery retail licenses, putting them at 1 per 12,000 for
new licenses.
MS. BRAWLEY resumed her presentation on slide 12, explaining
that the rest of the slides focus on the proposed changes to
Title 4, such as more retail options for manufacturers. She
said under current law, the brewery, winery, and distillery
licenses have manufacturing and retail privileges SB 52 would
split that into two license types, allowing for a pure
manufacturing license that could be used with a retail license
(slide 12). She turned attention to brewpubs, which is
currently a license type that can be utilized with a bar;
however, it only allows the production of a limited number of
gallons per year. Essentially, she said, a traditional brewery
is limited to the amount they serve to the public, while a
brewpub can serve as much as they want to the public, but the
amount they can produce is limited. SB 52 would create more
equity within this tier and give manufacturers more options,
including participating in the existing retail license system
(slide 13). She noted that slide 14 illustrates the proposed
manufacturer sales limits by product type.
4:23:34 PM
REPRESENTATIVE STUTES questioned whether having both a brewery
license and a distillery retail license would allow for the sale
of 36 ounces of beer and 3 ounces of spirits to the same person.
MS. BRAWLEY said shes not sure if a licensee can currently
utilize two different licenses on the same premises.
REPRESENTATIVE STUTES restated her question, asking if someone
uses different licenses in the same venue, could they serve the
maximum that each license allows to each customer.
SENATOR MICCICHE offered his understanding that these types of
[retail] licenses cannot be stacked.
4:25:01 PM
MELISSA WALTER, Administrative Officer, Alcohol & Marijuana
Control Office, Department of Commerce, Community & Economic
Development, in response to Representative Stutes, said she does
not know that policy.
4:25:19 PM
The committee took a brief at-ease.
4:25:58 PM
MS. BRAWLEY directed attention to slide 15. She reported that
endorsements on licenses is another concept proposed under SB
52. She explained that this would allow for the potential
expansion of what a business can do. Depending on the
endorsement, a business could serve on larger grounds or offer
additional activities. She said it benefits both the individual
business and the system as a whole because it provides an
alternative mechanism in the policy instead of just creating a
new license for a very specific business type it would allow for
the creation of an endorsement in the future (slide 15). She
continued to slide 16, entitled Proposed Endorsements, which
read as follows [original punctuation provided]:
? R-7A | Bowling Alley Endorsement
? R-7B | Package Store Shipping Endorsement
? R-7C | Package Store Delivery Endorsement
R-7D | Package Store Re-Packaging Endorsement
? [R-1] Multiple Fixed Counter Endorsement
? [R-1] Hotel/Motel Endorsement
? [R-1] Large Resort Endorsement
? [R-3] Package Store Sampling Endorsement
? [M-1] Brewery Repackaging Endorsement
MS. BRAWLEY noted that most of this language already exists in
Title 4, such as the three package store endorsements (slide
16). In contrast, one of the new endorsements proposed under SB
52 would allow package stores to provide small free samples on
their premises with the package store sampling endorsement. To
address the concern of providing excess free alcohol, the
proposal places clear limits on what can be served. She stated
that any combination of products can be served, not to exceed
the alcohol equivalent of any single product type (slide 17).
CHAIR SPOHNHOLZ surmised that if business is interested in
offering different categories of alcohol at the same time it
would have to be a proportional amount. She asked if that is
correct.
MS. BRAWLEY confirmed that.
4:28:49 PM
REPRESENTATIVE HANNAN sought clarification on the underlying
licenses for several endorsements listed on slide 16. She asked
what the underlying license would be for the bowling alley
endorsement.
MS. BRAWLEY replied the bowling alley endorsement would be
attached to a BDL [beverage dispensary license]. She referenced
slide 10, which provides a code for the endorsements and their
corresponding license. She noted that not every endorsement is
available to every license type.
MS. BRAWLEY responding to a follow-up question from
Representative Hannan, said the BDL allows for liquor, beer, and
wine to be served, which is one of the aspects that
differentiates a BDL from a recreational site license. For a
bowling alley, she said, the endorsement allows drinks to be
served at the lanes instead of a designated bar room.
CHAIR SPOHNHOLZ questioned whether the recreational site license
would exist under SB 52.
MS. BRAWLEY explained that the recreational site license would
still exist as a license type; however, it would be renamed the
sporting event license. She noted that the language in the
statute would remain the same.
4:31:56 PM
REPRESENTATIVE HANNAN asked if recreational site licenses are
currently limited to beer and wine.
MS. BRAWLEY affirmed that.
4:32:16 PM
MS. BRAWLEY resumed her presentation on slide 18, entitled R-7
Standardize Permits, which read as follows [original
punctuation provided]:
? Unlike licenses, permits are typically issued for
single events, on or off licensed premises.
? Define all permit types in statute, not just in
regulation
? Fee for all permits is $50 per event day
? Most permits listed are already in statute or
regulation
? New permit: Tasting Event Permit, allowing a Package
Store to host an event on premises, in partnership
with a BDL
MS. BRALWEY highlighted the list of proposed permits on slide 19
and continued to slide 20. She explained that the package store
tasting event permit would allow a package store to host a
special tasting event on its own premises, with onsite
consumption of alcohol for those attending the event. She noted
that the event may last for four hours and must end by 9 p.m.
Furthermore, it limits each license to six events per year in
the same community as the license is located (slide 20). She
informed the committee that population limits currently exist
under Title 4 to determine how many of each license type may be
issued in each community (slide 21). Population limited are set
by each local government, which can exist within a larger
borough. She explained that there are a set number of licenses
based on the residents in the local government separate from
the residents in the surrounding borough (slide 22). She
directed attention to slide 23, entitled Seasonal REPL Tourism,
which read as follows [original punctuation provided]:
? Seasonal restaurant license
? Available in smaller communities (< 40,000 pop.)
? Same operating requirements and privileges as full
year
restaurants (REPL)
? Number of licenses per community determined by
formula:
- 5-year average of annual visitors/months in season =
Average monthly visitor population
- (Residents + Average monthly visitors)/1,500 =
Available Seasonal REP Tourism licenses
? Season defined as up to 6 months per year, in any
combination
Example: May through September + 1 winter month
MS. BRAWLEY stated that the public convenience system currently
exists under Title 4. It allows an individual seeking a
restaurant or eating place license (REPL) in a community where
there arent any licenses available to purchase to collect
petitions that can be turned into AMCO. From there, the ABC
Board evaluates whether issuing the license would satisfy public
convenience. She explained that SB 52 proposes converting
existing public convenience restaurants to full scale
restaurants (slide 24). An alternative to the proposed public
convenience system is to have local governments petition for
additional restaurant licenses [AS 04.11.405]. This would
provide cities more local control and encourage the
concentration of commercial uses in the city center instead of
outside the boarders.
4:40:04 PM
REPRESENTATIVE HANNAN asked if a city could apply for the
proposed local government petition for a REPL in advance of the
existing businesses.
SENATOR MICCICHE confirmed that. He explained that if the board
approves the licenses that were petitioned for, the city can
hold the licenses and then market them to licensees.
REPRESENTATIVE HANNAN asked when the fee must be paid. She
questioned whether the city is required to put the money up
front for the licenses they petition for or if they wait to pay
it until there is a physical restaurant to put on the books.
SENATOR MICCICHE offered his understanding that the license
would not be active until it is awarded to someone who would
then go through AMCO to pay the fee and claim the license.
4:42:15 PM
MS. BRAWLEY resumed her presentation on slide 26. She noted
that currently, Title 4 allows for the relocation of a bar (BDL)
from a borough to a city. The bill would keep that provision in
place while also allowing the relocation of package stores
without creating a new license (slide 26). Another issue, she
said, is the enforcement of existing federal law regarding
illegal trade practices. The concern centers around how much
consolidation of market power there would be in manufacturers or
wholesalers. To counteract that, the bill proposes adding
equivalent sections to Title 4, protecting retailers and
allowing for state enforcement. She noted that this would
protect manufacturers and wholesalers as well by promoting free
competition rather than shutting competitors out (slide 27).
MS. BRAWLEY turned to the adjustment of license fees to reflect
current ABC Board budgetary needs. She explained that in many
cases, the same type of business is paying a different level of
fee for the same activities. She said this is relevant to
ensure that license fees are fair across different licensees.
She noted that it also requires the ABC Board to review license
fees every 5 years and if appropriate, forward a recommendation
to the legislature (slide 28). She continued to slide 29,
entitled More Accountability for License Fees Allocated to
Local Governments, which read as follows [original punctuation
provided]:
• Current Title 4 allows for local government to
receive an allocation equal to the license fees
collected in their area, intended for enforcement
of Title 4 and related ordinances.
• Reporting on these activities is required, but
not defined in statute. Some jurisdictions report
regularly, while others do not.
• The bill includes better reporting and prevention
about use of these funds and requiring reports
about education activities as well as
enforcement.
MS. BRAWLEY directed attention to slide 30. She said the ABC
Board and AMCO, would work with other agencies and organizations
to develop a coordinated education plan about responsible
alcohol use and Title 4.
4:47:29 PM
MS. BRAWLEY addressed the next slide, slide 31, entitled
Internet Sales in Alaska: Few Rules, which read as follows
[original punctuation provided]:
? Alaska is one of the only states with no rules for
Internet sales of alcohol.
? Alaska Package Stores cannot sell alcohol online,
only via (paper) written orders.
Alaska Wineries and Package Stores can ship wine to
customers in some circumstances.
? Without state laws restricting online sales, there
are currently no limits on purchases of alcohol online
from out-of-state sellers.
? Alaska consumers also do not pay state excise tax on
online purchases, as they do on products sold and
purchased in state.
MS. BRAWLEY explained that SB 52 would create a winery direct
shipment license and allow online alcohol sales only from U.S.
wineries and Alaska package stores. She said the winery direct
shipment licensee would verify that the customer is 21 or older,
that the customer is in a non-local option area, and that the
order is within the limit for personal use, which is 6 cases per
sale and 12 cases per year (slide 32).
CHAIR SPOHNHOLZ asked how the licensee would verify that a buyer
is 21 or older when making an online purchase.
MS. BRAWLEY said shes not familiar with the specific software;
however, many wineries use ID verification.
4:49:42 PM
SENATOR MICCICHE added that the system would require that the
person ordering the alcohol is carded upon delivery.
CHAIR SPOHNHOLZ clarified that the proposal requires
verification of age.
4:50:09 PM
REPRESENTATIVE RASMUSSEN shared a personal anecdote in which she
was required to show ID upon delivery of a bottle of wine.
CHAIR SPOHNHOLZ sought to clarify whether age verification is
required by state law.
SENATOR MICCICHE noted that the spectrum of operators varies
dramatically. He said SB 52 would require that every operator
is required to verify the ID card of the person receiving the
package.
4:51:22 PM
REPRESENTATIVE HANNAN inquired as to why only wineries and
package stores can ship directly.
SENATOR MICCICHE clarified that the current discussion is about
selling alcohol online. He said that in Alaska, wine the only
type of alcohol that can be sold online.
MS. BRAWLEY noted that an in-state package store can sell any of
their products to a customer through written order, which has
been interpreted to mean that the store has the customers ID on
file. She further noted that currently, the state does not have
laws regulating this; however, the U.S. Postal Service is not
allowed to ship alcohol, and both UPS and FedEx have also
decided to only allow commercial shipments of wine.
4:53:47 PM
REPRESENTATIVE RASMUSSEN questioned whether wine could be
delivered to from grocery stores via Instacart.
MS. BRAWLEY said that specific business model is not discussed
in the bill; however, certain stores, such as Fred Meyer and
Safeway have their own package store license, which could be
used to provide that service. She noted that it would still
need to be delivered to an individual at home with ID
verification upon arrival.
4:55:19 PM
MS. BRAWLEY directed attention to slide 33 to discuss the
regulation of common carriers. She stated all common carriers
must be approved by the ABC Board to transport and deliver
alcohol to consumers throughout the state. Carriers must
demonstrate that they have policies and train employees to
properly handle shipments of alcohol. She added that the ABC
Board would publish that list of carriers, making it available
to direct shipment licensees and in-state package stores (slide
33).
REPRESENTATIVE RASMUSSEN expressed concern about the business
model.
SENATOR MICCICHE, in response to Representative Rasmussen, said
thats what the common carrier regulations are for. He
reiterated that the common carrier would be authorized for
alcohol deliveries and would have the necessary policies in
place. He offered his belief that those policies would include
barring underage individuals from delivering alcohol.
4:58:14 PM
MS. BRAWLEY noted that current laws allow underage individuals
to work in restaurants; however, they cannot deliver alcohol.
She continued to slide 34. She said there is already a system
in place that tracks alcohol orders to local option areas, which
the bill would maintain. She added that in current Title 4, all
data in the local option order database is private and deleted
after one year. SB 52 would keep individual order information
private but retain aggregate data for 10 years and allow the ABC
Board to publish annual total sales volume by region or
community that is available to the public (slide 35). She
continued to slide 36, entitled RB-6. Revise Title 4
Penalties, which read as follows [original punctuation
provided]:
? Review penalties for all Title 4 sections, and
revise as needed to make penalties proportionate to
the offense, and more consistently enforced.
? Retain existing Misdemeanor and Felony charges for
serious offenses, particularly those causing harm to
children.
Ensure that the ABC Board, and licensee, is informed
about Title 4 convictions: require court to send
records to AMCO, and AMCO to send to the licensee.
? ABC Board retains authority to impose conditions or
additional penalties, including suspending or revoking
license.
? See Appendix, Table 3 in Title 4 Review Report for
table of all current penalties and proposed changes.
MS. BRAWLEY noted that one of the most important penalty changes
is increasing the immediate accountability of licensees. She
said in current Title 4, a licensee or employee who overserves
an intoxicated adult or serves alcohol to a minor is guilty of a
class A misdemeanor. SB 52 would change the penalty for both
statutes to a minor offense with a $500 fine. Additionally, the
owner of the license would receive an administrative penalty of
$250. This would alert the owner that a violation occurred and
would hold them immediately accountable, while encouraging
future compliance (slide 38). To conclude, Ms. Brawley
highlighted required keg registration. She said it is currently
required in Anchorage and Juneau, but under SB 52, it would be a
statewide requirement. She explained that kegs tagged with the
purchasers contact information can be tracked if confiscated at
an underage party to better enforce underage drinking (slide
39).
5:02:28 PM
CHAIR SPOHNHOLZ asked how the proposed fines for overserving an
adult or serving a minor compare to the fines under current
Alaska law.
MS. BRAWLEY said the penalty for an employee that overserves an
adult or serves a minor is a class A misdemeanor, resulting in
up to a $10,000 fine and a court appearance. She added that
there is no immediate penalty on the licensee, which means they
might not be aware of the situation until they renew their
license.
5:04:01 PM
REPRESENTATIVE STORY asked for the current violation rates.
SENATOR MICCICHE said they are artificially low because it sets
an extreme fine that leads to unlikely conviction. He offered
his belief that enforcement loses interest when they know that
the penalty will not be realized. He added that the penalty
proposed under SB 52 would most likely lead to more results from
local or departmental enforcement.
[SB 52 was held over.]
5:06:11 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
[5:06] p.m.