Legislature(2001 - 2002)

04/27/2001 02:00 PM RLS

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
                 HOUSE RULES STANDING COMMITTEE                                                                               
                         April 27, 2001                                                                                         
                           2:00 p.m.                                                                                            
MEMBERS PRESENT                                                                                                               
Representative Pete Kott, Chair                                                                                                 
Representative Brian Porter                                                                                                     
Representative Vic Kohring                                                                                                      
Representative Carl Morgan                                                                                                      
Representative Reggie Joule                                                                                                     
MEMBERS ABSENT                                                                                                                
Representative Lesil McGuire                                                                                                    
Representative Ethan Berkowitz                                                                                                  
COMMITTEE CALENDAR                                                                                                            
HOUSE BILL NO. 152                                                                                                              
"An Act relating to brewpub licenses."                                                                                          
     - MOVED CSHB 152(RLS) OUT OF COMMITTEE                                                                                     
PREVIOUS ACTION                                                                                                               
BILL: HB 152                                                                                                                  
SHORT TITLE:BREWPUB LICENSES                                                                                                    
SPONSOR(S): REPRESENTATIVE(S)HALCRO                                                                                             
Jrn-Date   Jrn-Page                     Action                                                                                  
02/28/01     0461       (H)        READ THE FIRST TIME -                                                                        
02/28/01     0461       (H)        L&C                                                                                          
04/02/01                (H)        L&C AT 3:15 PM CAPITOL 17                                                                    
04/02/01                (H)        Bill Postponed To 4/6/01                                                                     
04/06/01                (H)        L&C AT 3:15 PM CAPITOL 17                                                                    
04/06/01                (H)        Moved CSHB 152(L&C) Out of                                                                   
04/10/01     0921       (H)        L&C RPT CS(L&C) 1DP 2DNP 3NR                                                                 
04/10/01     0921       (H)        DP: HALCRO; DNP: KOTT,                                                                       
04/10/01     0921       (H)        NR: HAYES, MEYER, MURKOWSKI                                                                  
04/10/01     0921       (H)        FN1: ZERO(REV)                                                                               
04/24/01     1181       (H)        COSPONSOR(S): MCGUIRE                                                                        
04/25/01     1218       (H)        COSPONSOR(S): CRAWFORD, CROFT                                                                
04/27/01                (H)        RLS AT 2:00 PM Speaker's                                                                     
WITNESS REGISTER                                                                                                              
REPRESENTATIVE ANDREW HALCRO                                                                                                    
Alaska State Legislature                                                                                                        
Capitol Building, Room 414                                                                                                      
Juneau, Alaska 99801                                                                                                            
POSITION STATEMENT:  Testified as the sponsor of HB 152.                                                                        
ACTION NARRATIVE                                                                                                              
TAPE 01-11, SIDE A                                                                                                              
Number 0001                                                                                                                     
CHAIR  PETE  KOTT  called  the  House  Rules  Standing  Committee                                                               
meeting  to order  at 2:00  p.m.   Representatives Kott,  Porter,                                                               
Kohring, Morgan, and Joule were present at the call to order.                                                                   
HB 152-BREWPUB LICENSES                                                                                                       
[The tape  counter numbers  indicate the  number of  minutes that                                                               
have elapsed.]                                                                                                                  
CHAIR KOTT announced  that the only order of  business before the                                                               
committee  would be  HOUSE  BILL  NO. 152,  "An  Act relating  to                                                               
brewpub licenses."                                                                                                              
REPRESENTATIVE JOULE moved to adopt  CSHB 152, 22-LS0354\O, Ford,                                                               
4/27/01, as  the working  document before  the committee.   There                                                               
being no objection, version O was before the committee.                                                                         
REPRESENTATIVE   ANDREW   HALCRO,   Alaska   State   Legislature,                                                               
testified  as  the sponsor  of  HB  152.   Representative  Halcro                                                               
characterized the proposed committee  substitute (CS), version O,                                                               
as a  "compromise of a compromise."   He explained that  [the CS]                                                               
attempts to  reach some middle ground  for next year in  order to                                                               
provide  some of  these operators  some time,  while a  permanent                                                               
resolution is  being worked on.   Version  O would allow  some of                                                               
those operators  that are  close to the  current cap  to continue                                                               
with  business as  usual.   Representative  Halcro announced  his                                                               
intention to hold meetings this interim.                                                                                        
CHAIR  KOTT  related  his  understanding  that  the  proposed  CS                                                               
doubles the  amount of gallons  to 150,000 and [that  amount will                                                               
sunset June 30, 2002].                                                                                                          
REPRESENTATIVE HALCRO agreed with Chair Kott's understanding.                                                                   
REPRESENTATIVE  HALCRO,  in  response  to  Representative  Joule,                                                               
explained that  there are  a handful  of brewpub  licenses, which                                                               
allows  an establishment  to brew  its own  beer and  sell it  in                                                               
their restaurant as well as wholesale.   There is a 75,000 gallon                                                               
cap.    However,  some  of these  brewpubs  have  expanded  their                                                               
operation to a second location and  thus the 75,000 gallon cap is                                                               
problematic.  One  of these establishments is  projected to reach                                                               
the 75,000  gallon cap  at the  end of September.   At  that time                                                               
this establishment can either stop  brewing and selling their own                                                               
beer or have  someone else brew their beer, buy  it from them and                                                               
resell it  in their restaurants.   This bill would provide  a bit                                                               
of breathing room.                                                                                                              
REPRESENTATIVE  HALCRO acknowledged  that  some  are weary  about                                                               
raising the cap.  He said,  "Certainly, they can continue to sell                                                               
beer, it's just comes  down to who's brewing it.   And I think we                                                               
all want to  keep Alaska jobs in Alaska rather  than having these                                                               
guys have to have their beer brewed in Seattle and shipped up."                                                                 
REPRESENTATIVE JOULE  asked if  those breweries  outside [Alaska]                                                               
are under any such limits.                                                                                                      
REPRESENTATIVE  HALCRO  replied no  and  pointed  out that  other                                                               
[states] would not be impacted by this legislation.                                                                             
REPRESENTATIVE KOHRING related  his belief that when  the cap was                                                               
established, it  appeared to be  somewhat of an  arbitrary limit.                                                               
Now, there  is a  successful business that  is being  impacted by                                                               
this  arbitrary limit.    Therefore,  he felt  that  it would  be                                                               
reasonable   to  pass   the  proposed   CS   out  of   committee.                                                               
Representative Kohring remarked that  he believes there shouldn't                                                               
be any cap because it should be based on the market.                                                                            
CHAIR KOTT noted that the [Moose's Tooth's] amendment, repealing                                                                
the provision in June 2002, was included in the proposed CS.                                                                    
Chair Kott closed the public testimony.                                                                                         
REPRESENTATIVE PORTER moved to report CSHB 152 [version 22-                                                                     
LS0354\O,  Ford,  4/27/01]  out   of  committee  with  individual                                                               
recommendations and  the accompanying fiscal notes.   There being                                                               
no objection,  CSHB 152(RLS)  was reported  from the  House Rules                                                               
Standing Committee.                                                                                                             
There being no further business before the committee, the House                                                                 
Rules Standing Committee meeting was adjourned at 2:08 p.m.                                                                     

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