Legislature(2021 - 2022)SENATE FINANCE 532

01/19/2022 01:00 PM Senate FINANCE

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Audio Topic
01:02:20 PM Start
01:03:00 PM SB9
01:26:50 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 9 ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
Bills Previously Heard/Scheduled
                 SENATE FINANCE COMMITTEE                                                                                       
                     January 19, 2022                                                                                           
                         1:02 p.m.                                                                                              
                                                                                                                                
1:02:20 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Bishop called the  Senate Finance Committee meeting                                                                    
to order at 1:02 p.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Click Bishop, Co-Chair                                                                                                  
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Donny Olson                                                                                                             
Senator Natasha von Imhof                                                                                                       
Senator Bill Wielechowski                                                                                                       
Senator David Wilson                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Lyman Hoffman                                                                                                           
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Senator  Peter  Micciche,  Sponsor;  Lee  Ellis,  President,                                                                    
Alaska  Brewers  Guild;  Sarah  Oates,  President  and  CEO,                                                                    
Alaska    Cabaret,   Hotel,    Restaurant   and    Retailers                                                                    
Association.                                                                                                                    
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Tiffany  Hall,  Executive  Director,  Recover  Alaska;  Glen                                                                    
Klinkhart, Interim  Director, Alcohol and  Marijuana Control                                                                    
Office,  Department  of  Commerce,  Community  and  Economic                                                                    
Development; Anna  Brawley, Title Review  Coordinator, Agnew                                                                    
Beck Consulting.                                                                                                                
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 9      ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG                                                                               
                                                                                                                                
          SB 9 was HEARD and HELD in committee for further                                                                      
          consideration.                                                                                                        
                                                                                                                                
SENATE BILL NO. 9                                                                                                             
                                                                                                                                
     "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."                                                                           
                                                                                                                                
1:03:00 PM                                                                                                                    
                                                                                                                                
Co-Chair Bishop noted it was the  first hearing for SB 9 for                                                                    
the current session.  The intention of the  committee was to                                                                    
hear  a bill  re-introduction,  consider invited  testimony,                                                                    
and then set the bill aside.                                                                                                    
                                                                                                                                
1:03:45 PM                                                                                                                    
                                                                                                                                
SENATOR PETER  MICCICHE, SPONSOR, thanked the  committee. He                                                                    
noted that alcohol was very  important industry in the state                                                                    
and added that  alcohol was a substance  commonly abused. He                                                                    
asserted that  the bill  was about  balance and  fairness in                                                                    
consideration  of both  those  issues.  The bill  modernized                                                                    
statute and  brought together various stakeholders  to craft                                                                    
meaningful policy.                                                                                                              
                                                                                                                                
Senator Micciche  continued to introduce the  bill. He noted                                                                    
that  while not  every bar  owner or  manufacturer supported                                                                    
every piece  of the legislation,  but that Alaska  CHARR and                                                                    
the Brewers  Guild supported the  bill. He added  that there                                                                    
were  some  in  public  safety  that  wanted  to  see  other                                                                    
provisions  in the  bill, but  that Recover  Alaska and  the                                                                    
Alaska  State Troopers  supported the  bill. He  thought the                                                                    
bill recognized  what was important  about the  industry but                                                                    
put  effectiveness into  enforcement. The  bill would  allow                                                                    
healthy operators  to continue to  operate. He spoke  of the                                                                    
many  years  of  work  on  the  bill  and  the  many  people                                                                    
involved.                                                                                                                       
                                                                                                                                
He  emphasized  that  the  bill  promoted  a  fair  business                                                                    
climate  and  limited  youth access  to  alcohol.  The  bill                                                                    
promoted  responsible alcohol  use  to reduce  the harms  of                                                                    
over-consumption. He regaled the  committee with the various                                                                    
positive benefits of the legislation.                                                                                           
                                                                                                                                
Senator   Micciche  announced   that   there  were   invited                                                                    
testifiers available in the room.                                                                                               
                                                                                                                                
1:07:43 PM                                                                                                                    
                                                                                                                                
LEE  ELLIS,  PRESIDENT,  ALASKA   BREWERS  GUILD,  spoke  in                                                                    
support   of  the   bill.  He   explained  that   the  guild                                                                    
represented  40 stakeholders,  employed  many Alaskans,  and                                                                    
generated significant  funds for the state.  He lamented the                                                                    
effects of  Covid-19 on the  alcohol industry. He  said that                                                                    
the guild was very happy with the bill.                                                                                         
                                                                                                                                
1:09:25 PM                                                                                                                    
                                                                                                                                
SARAH  OATES,  PRESIDENT  AND CEO,  ALASKA  CABARET,  HOTEL,                                                                    
RESTAURANT AND  RETAILERS ASSOCIATION, testified  in support                                                                    
of the bill.  She was pleased that the bill  was being heard                                                                    
early  in the  session  and believed  the legislation  would                                                                    
greatly  benefit  the  industry  in Alaska.  She  said  that                                                                    
liquor licensees  had suffered a devastating  blow by Covid-                                                                    
19. She urged support for the legislation.                                                                                      
                                                                                                                                
1:11:36 PM                                                                                                                    
                                                                                                                                
TIFFANY  HALL,  EXECUTIVE   DIRECTOR,  RECOVER  ALASKA  (via                                                                    
teleconference),  spoke   in  support   of  the   bill.  She                                                                    
explained the  mission of Recover  Alaska. She  relayed that                                                                    
her  organization  and  many  other  stakeholders  had  been                                                                    
working on  the bill for  many years. She  discussed alcohol                                                                    
statistics  in the  state which  affected criminal  justice,                                                                    
healthcare,  loss of  productivity,  traffic accidents,  and                                                                    
life  expectancy. She  believed  that the  bill  would be  a                                                                    
 huge win for the state.                                                                                                        
                                                                                                                                
1:14:16 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:15:15 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
GLEN  KLINKHART,  INTERIM  DIRECTOR, ALCOHOL  AND  MARIJUANA                                                                    
CONTROL  OFFICE,  DEPARTMENT   OF  COMMERCE,  COMMUNITY  AND                                                                    
ECONOMIC DEVELOPMENT  (via teleconference), stated  that the                                                                    
Alcohol  and  Marijuana   Control  Office  had  consistently                                                                    
supported the bill.  He commented on provisions  of the bill                                                                    
that  worked. He  had spent  25 years  as a  law enforcement                                                                    
officer in the  state. He had co-opted the  fine schedule to                                                                    
implement  in  enforcement  for marijuana,  which  had  been                                                                    
developed in  partnership with the industry.  He appreciated                                                                    
the introduction to  Title 4 and how it could  be applied to                                                                    
marijuana.                                                                                                                      
                                                                                                                                
1:18:43 PM                                                                                                                    
                                                                                                                                
Senator  Wielechowski  asked   about  keg  registration  and                                                                    
wanted to clarify the application for home brewers.                                                                             
                                                                                                                                
Senator Micciche  wanted to  clarify that  the bill  did not                                                                    
create rules to  regulate usages where they  did not already                                                                    
exist. A  home brewer was not  a licensee, and the  bill was                                                                    
designed specifically for licensees.                                                                                            
                                                                                                                                
Mr.  Ellis  addressed  Senator Wielechowski's  question.  He                                                                    
noted that  kegs were registered upon  sale. Further clarity                                                                    
would  be available  through the  registration process.  The                                                                    
goal  of the  bill was  that  if underaged  persons were  in                                                                    
possession of  a keg,  the person who  supplied it  would be                                                                    
held accountable.                                                                                                               
                                                                                                                                
Senator  Wielechowski referenced  page 96,  section 111,  of                                                                    
the  bill and  asked  about the  impact  to homebrewers  and                                                                    
 bottle clubs.                                                                                                                  
                                                                                                                                
ANNA   BRAWLEY,  TITLE   REVIEW   COORDINATOR,  AGNEW   BECK                                                                    
CONSULTING  (via  teleconference),   shared  that  provision                                                                    
would not apply to a private  event that was not open to the                                                                    
public.                                                                                                                         
                                                                                                                                
Senator Wielechowski asked whether  Ms. Brawley was familiar                                                                    
with  the keg  registration provision.  He wondered  whether                                                                    
homebrewers would have to register kegs.                                                                                        
                                                                                                                                
Mr.  Brawley  understood  that  a person  using  a  keg  for                                                                    
personal use would not have to register.                                                                                        
                                                                                                                                
1:22:55 PM                                                                                                                    
                                                                                                                                
Senator  Wielechowski thought  that  under  the bill,  towns                                                                    
with 12,000  people would  only be  allowed one  brewery tap                                                                    
room   and  one   winery  tasting   room,  which   was  more                                                                    
restrictive than current statute.                                                                                               
Senator Micciche  explained that change would  not eliminate                                                                    
already  existing  businesses.  He said  that  not  everyone                                                                    
would be pleased with every aspect of the bill.                                                                                 
                                                                                                                                
1:24:54 PM                                                                                                                    
                                                                                                                                
Senator Wilson  discussed a concern  about a barrier  to new                                                                    
brewers and the growing brew industry.                                                                                          
                                                                                                                                
Senator Micciche  acknowledged that the bill  would create a                                                                    
limited entry  situation. He stressed  that the  policies in                                                                    
the  bill  had been  negotiated  to  change the  statute  to                                                                    
reflect  current conditions  in the  industry while  leaving                                                                    
room for growth.                                                                                                                
                                                                                                                                
ADJOURNMENT                                                                                                                   
1:26:50 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 1:26 p.m.                                                                                          
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
SB 9 One Pager 2022.pdf SFIN 1/19/2022 1:00:00 PM
SB 9
SB 9 Summary of Changes ver B to ver I.pdf SFIN 1/19/2022 1:00:00 PM
SB 9
SB 9_Title4Pres_Senate_FIN_5.2021.pdf SFIN 1/19/2022 1:00:00 PM
SB 9
SB 9 Sponsor Statement ver I.pdf SFIN 1/19/2022 1:00:00 PM
SB 9
SB 9 Sectional Analysis ver I 04.14.21.pdf SFIN 1/19/2022 1:00:00 PM
SB 9
SB 9 Support to Senate Finance April 13 2021.pdf SFIN 1/19/2022 1:00:00 PM
SB 9
SB 9 Letters of Support 4.15.21.pdf SFIN 1/19/2022 1:00:00 PM
SB 9
SB 9 Title 4 Review Report 02.2019.pdf SFIN 5/3/2021 9:00:00 AM
SFIN 1/19/2022 1:00:00 PM
SL&C 2/12/2021 1:30:00 PM
SB 9