Legislature(2017 - 2018)SENATE FINANCE 532

04/17/2018 01:30 PM FINANCE

Note: the audio and video recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.

Download Mp3. <- Right click and save file as
Download Video part 1. <- Right click and save file as

Audio Topic
01:35:43 PM Start
01:37:15 PM SB76
02:50:58 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+ SB 76 ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG TELECONFERENCED
Heard & Held
                  SENATE FINANCE COMMITTEE                                                                                      
                       April 17, 2018                                                                                           
                          1:35 p.m.                                                                                             
                                                                                                                                
                                                                                                                                
1:35:43 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair  MacKinnon  called  the  Senate  Finance  Committee                                                                    
meeting to order at 1:35 p.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Anna MacKinnon, Co-Chair                                                                                                
Senator Click Bishop, Vice-Chair                                                                                                
Senator Peter Micciche                                                                                                          
Senator Donny Olson                                                                                                             
Senator Gary Stevens                                                                                                            
Senator Natasha von Imhof                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Rachel Hanke,  Staff, Senator Peter Micciche;  Tiffany Hall,                                                                    
Executive  Director,  Recover   Alaska,  Juneau;  Dale  Fox,                                                                    
Alaska Cabaret, Hotel,  Restaurant and Retailers Association                                                                    
(CHARR), Juneau.                                                                                                                
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Anna   Brawley,   Title   4  Review   Project   Coordinator,                                                                    
Anchorage;  Erika McConnell,  Alcohol and  Marijuana Control                                                                    
Board, Anchorage;  Ryan Makinster, Brewers Guild  of Alaska,                                                                    
Anchorage; Joel  Kadarauch, Alaska  Beer, Wine,  and Spirits                                                                    
Wholesalers Association, Anchorage;  Micheal Baldwin, Alaska                                                                    
Mental Health  Trust Authority, Anchorage;  Stephanie Queen,                                                                    
City  Manager, City  of  Soldotna,  Soldotna; Robin  Minard,                                                                    
Public Affairs Director, Matsu Health Foundation, Wasilla.                                                                      
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 76     ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG                                                                               
                                                                                                                                
          SB 76 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
SENATE BILL NO. 76                                                                                                            
                                                                                                                                
     "An Act  relating to  alcoholic beverages;  relating to                                                                    
     the    regulation   of    manufacturers,   wholesalers,                                                                    
     retailers, and common  carriers of alcoholic beverages;                                                                    
     relating   to  licenses,   endorsements,  and   permits                                                                    
     involving   alcoholic   beverages;  relating   to   the                                                                    
     Alcoholic Beverage Control  Board; relating to offenses                                                                    
     involving  alcoholic   beverages;  amending   Rule  17,                                                                    
     Alaska Rules of Minor  Offense Procedure; and providing                                                                    
     for an effective date."                                                                                                    
                                                                                                                                
1:37:15 PM                                                                                                                    
                                                                                                                                
SENATOR    PETER   MICCICHE,    SPONSOR,   introduced    the                                                                    
legislation.  He   stated  that  the  bill   was  largely  a                                                                    
reorganization.  He shared  that the  legislation modernized                                                                    
the  over  35-year-old  Title   IX  statutes  that  governed                                                                    
Alcoholic Beverage Control Board.  He stated that it allowed                                                                    
the bill  to function  in a way  that the  industry actually                                                                    
operated.  He  noted  that it  promoted  public  safety  and                                                                    
health,  while supporting  the alcohol  industry's continued                                                                    
growth and viability in the  current climate. He shared that                                                                    
he  was   someone  who  responsibly,   periodically  enjoyed                                                                    
alcohol. He felt  that it was a healthy  industry, but noted                                                                    
the aspects  of public  and safety that  needed to  be taken                                                                    
into account. He shared that  a stakeholder group had worked                                                                    
together for  six years to  develop legislation.  The groups                                                                    
goals  were  to promote  a  fair  business climate;  protect                                                                    
public health  and safety; create a  rational regulation for                                                                    
all three  tiers of the  state's alcohol  industry; limiting                                                                    
youth access  to alcohol; promoting responsible  alcohol use                                                                    
and reducing the harms  of overconsumption; and implementing                                                                    
without  negative  impacts  on  businesses  and  responsible                                                                    
operators.                                                                                                                      
                                                                                                                                
1:39:46 PM                                                                                                                    
                                                                                                                                
RACHEL  HANKE, STAFF,  SENATOR PETER  MICCICHE, presented  a                                                                    
Summary of the Sectional Analysis (copy on file):                                                                               
                                                                                                                                
     Chapter 06. Alcoholic Beverage Control Board                                                                               
     Pages 1-5                                                                                                                  
     Section 1  Authority of the director                                                                                       
     AS 04.06.075 new subsection  provides that the director                                                                    
     of the ABC  Board shall prepare the  budgets for admin,                                                                    
     enforcement,   education,   training,  and   prevention                                                                    
     activities under Title 4.                                                                                                  
     Section 2  Delegation of authority                                                                                         
     AS  04.06.080 adds  endorsements  to delegated  powers,                                                                    
     also edits cross reference.                                                                                                
     Section 3  Powers and duties                                                                                               
     AS  04.06.090(b) relocation  of language  from existing                                                                    
     AS 04.11.070  which limits the power  to issue, revoke,                                                                    
     transfer,  or   renew  a  license  to   the  board  and                                                                    
     references endorsements.                                                                                                   
     Section 4                                                                                                                  
     AS 04.06.090(e) references endorsements.                                                                                   
     Section 5                                                                                                                  
     AS  04.06.090  adds  new subsection  that  directs  the                                                                    
     board  to prepare  Title 4  education  plan for  public                                                                    
     safety,  industry,   youth,  municipalities,   and  the                                                                    
     public with annual revision.                                                                                               
     Adds new  subsections which direct the  board to review                                                                    
     fees  every 10  years,  allow  opinions on  legislation                                                                    
     amending  this title,  requires  the  board to  provide                                                                    
     notice  of violations  to licensees  and  to post  FASD                                                                    
     information  online   for  package  store   and  winery                                                                    
     licensees to include with shipped orders.                                                                                  
     Section 6  Statewide database                                                                                              
     AS 04.06.095  allows for  certain information  from the                                                                    
     statewide database to be retained  up to 10 years, only                                                                    
     identifying information  will be purged  annually. Adds                                                                    
     reference to endorsement.                                                                                                  
     Section 7                                                                                                                  
     AS 04.06.095(c)  adds new subsection which  directs the                                                                    
     board to  produce a report of  aggregate regional sales                                                                    
     of alcohol in local  option areas, based on information                                                                    
     retained  in  database  and not  including  identifying                                                                    
     data about an individual purchaser or seller.                                                                              
     Section 8  Regulations                                                                                                     
     AS 04.06.100(b) adds  endorsements, removes the board's                                                                    
     power  to create  additional  licenses  and permits  in                                                                    
     regulation,   and   adds    the   power   to   restrict                                                                    
     manufacturing,  packaging,  sale, and  distribution  or                                                                    
     products containing alcohol for consumption.                                                                               
     Section 9    Proposed new  chapter AS 04.09  to replace                                                                    
     sections  defining  license   types  and  permit  types                                                                    
     currently in AS 04.11 and regulation.                                                                                      
     Chapter 09. Licenses, Endorsements, and Permits.                                                                           
     Pages 5-50                                                                                                                 
     Article 1. License Types.                                                                                                  
     AS 04.09.010.  Types of licenses. Gives  the definition                                                                    
     of license,  three tiers, and  limits license  types to                                                                    
     those listed in this chapter.                                                                                              
     Article 2. Manufacturer Licenses.                                                                                          
     AS 04.09.020.  Brewery manufacturer  license. Relocates                                                                    
     the  brewery   license  from  04.11.130,   moves  other                                                                    
     provisions from current  brewery manufacturer's license                                                                    
     to  endorsements  and  new   license  types,  sets  the                                                                    
     biennial fee at  $1,500 and requires that  at least 80%                                                                    
     of  the  final  product  of brewed  beverages  sold  be                                                                    
     manufactured on licensed premises in Alaska.                                                                               
     AS  04.09.030. Winery  manufacturer license.  Relocates                                                                    
     the   winery  license   from  04.11.140,   moves  other                                                                    
     provisions from current  winery license to endorsements                                                                    
     and new license types, sets  the biennial fee at $1,500                                                                    
     and requires that at least  80% of the final product of                                                                    
     wine  sold  be  manufactured on  licensed  premises  in                                                                    
     Alaska.                                                                                                                    
     AS   04.09.040.    Distillery   manufacturer   license.                                                                    
     Relocates the distillery  license from 04.11.160, moves                                                                    
     other  provisions   from  current  winery   license  to                                                                    
     endorsements and  new license types, sets  the biennial                                                                    
     fee at  $1,500 and  requires that at  least 80%  of the                                                                    
     final   product   of    distilled   spirits   sold   be                                                                    
     manufactured on licensed premises in Alaska.                                                                               
     AS   04.09.050.   Authorized  sales.   Allows   smaller                                                                    
     manufacturers to self-distribute  to retail, wholesale,                                                                    
     permitted  and  out  of  state  or  country  licensees.                                                                    
     Requires  large manufacturers  to go  through wholesale                                                                    
     distributors.                                                                                                              
     AS 04.09.060.  Unlicensed manufacturing.  Relocates the                                                                    
     existing   class    A   misdemeanor    for   unlicensed                                                                    
     manufacture from 04.11.010.                                                                                                
     AS  04.09.070.  Unlicensed  manufacturing  in  a  local                                                                    
     option area. Relocates the existing  class C felony for                                                                    
     unlicensed  manufacture in  a  local  option area  from                                                                    
     04.11.010.                                                                                                                 
     AS 04.09.080.  Unauthorized manufacturer  sale. Defines                                                                    
     unauthorized manufacturer sale  as violating 04.09.050,                                                                    
     which is a $250 fine.                                                                                                      
     AS 04.09.090. Definition.  Defines "packaging" which is                                                                    
     the  process  of   containing  alcoholic  beverages  in                                                                    
     bottles or other containers for sale.                                                                                      
                                                                                                                                
                                                                                                                                
Co-Chair MacKinnon asked that the sections be highlighted                                                                       
within the comments.                                                                                                            
                                                                                                                                
Ms. Hanke continued with the summary:                                                                                           
                                                                                                                                
     Article 3. Wholesale Licenses.                                                                                             
     AS 04.09.100. General  wholesale license. Relocates the                                                                    
     general wholesale  license from 04.11.160,  moves other                                                                    
     existing  components to  other places  in the  chapter,                                                                    
     maintains  $2,000   biennial  fee,   maintains  $10,000                                                                    
     maximum fee,  and reduces  annual transaction  fees for                                                                    
     smaller businesses.                                                                                                        
     AS  04.09.110. Limited  wholesale  brewed beverage  and                                                                    
     wine license. Relocates  limited wholesale license from                                                                    
     previous  wholesale license  section (AS  04.11.160(b))                                                                    
     in  a separate  section, maintains  $400 biennial  fee,                                                                    
     maintains  maximum  $10,000  annual  fee,  and  reduces                                                                    
     annual transaction fees for smaller businesses.                                                                            
     AS  04.09.120.  Annual  fee  and  affidavit.  Relocates                                                                    
     existing affidavit requirement  from previous wholesale                                                                    
     licenses  section  (AS  04.11.160(c)-(d)),  requires  a                                                                    
     wholesale licensee to submit  an affidavit to the board                                                                    
     stating total value of annual sales, including tax.                                                                        
     AS   04.09.130.    Wholesaler   supplier   declaration.                                                                    
     Relocates  the  wholesale   supplier  declaration  from                                                                    
     previous wholesale licenses  section (AS 04.11.160(e)),                                                                    
     maintains  current fee  structure,  and simplifies  the                                                                    
     required reporting process.                                                                                                
     AS    04.09.140.   Unlicensed    wholesale.   Relocates                                                                    
     unlicensed  wholesale  provision   from  04.11.010  and                                                                    
     maintains existing class A misdemeanor.                                                                                    
     AS 04.09.145.  Unlicensed wholesale  in a  local option                                                                    
     area.   Relocates  existing   penalty  for   unlicensed                                                                    
     wholesale  in a  local option  area from  04.11.010 and                                                                    
     maintains existing class C felony.                                                                                         
     AS  04.09.150.  Failure  to  pay  annual  fee  or  file                                                                    
     affidavit.  States  that  failure   to  pay  an  annual                                                                    
     wholesale fee or  file an affidavit is  a violation and                                                                    
     lowers the penalty from a misdemeanor to a $250 fine.                                                                      
     AS  04.09.160.  Failure to  pay  biennial  fee or  file                                                                    
     declaration. States that failure  to pay a biennial fee                                                                    
     and  failure  to  file a  declaration  are  violations.                                                                    
   Lowers the penalty from a misdemeanor to a $250 fine.                                                                        
                                                                                                                                
                                                                                                                                
1:42:41 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:43:44 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
1:43:50 PM                                                                                                                    
                                                                                                                                
Ms. Hanke continued with the summary:                                                                                           
                                                                                                                                
     Article 4. Retail Licenses.                                                                                                
     AS  04.09.200. Beverage  dispensary license.  Relocates                                                                    
     and   simplifies  the   BDL   license  language   from,                                                                    
     maintains  the  $2,500  biennial  fee,  references  the                                                                    
     multiple  fixed  counter  endorsement, and  lowers  the                                                                    
     penalty for  unauthorized beverage  dispensary activity                                                                    
     from a misdemeanor to a  violation. Sections in current                                                                    
     BDL  (AS   04.11.090)  for  bowling  alley   and  hotel                                                                    
     licensees relocated to become separate endorsements.                                                                       
     AS  04.09.210.  Restaurant  and eating  place  license.                                                                    
     Relocates license  from 04.11.100, raises  biennial fee                                                                    
     to  $1,250,  maintains  1:1   food  to  alcohol  ratio,                                                                    
     strikes  1996 exemption,  limits the  number of  annual                                                                    
     allowed  after-hours entertainment  events to  six, and                                                                    
     lowers the  penalty for failure to  comply with license                                                                    
     terms from a misdemeanor to a violation.                                                                                   
     AS  04.09.220.  Club  license. Relocates  license  from                                                                    
     04.11.110, raises  biennial fee  to $1,500,  and lowers                                                                    
     the penalty  for failure to  comply with  license terms                                                                    
     from a misdemeanor to a violation.                                                                                         
     AS 04.09.230. Package  store license. Relocates license                                                                    
     from 04.11.150,  maintains biennial fee of  $1,500, and                                                                    
     lowers  penalty for  failure  to  comply with  licenses                                                                    
     terms from a  misdemeanor to a violation.   Sections in                                                                    
     current AS  04.11.150 for delivery, shipping  and other                                                                    
     activities relocated to become separate endorsements.                                                                      
     AS  04.09.240.  Pub  license.  Relocates  license  from                                                                    
     04.11.220, raises  biennial fee  to $1,250,  and lowers                                                                    
     penalty for  failure to comply with  license terms from                                                                    
     a misdemeanor  to a violation. Adds  provision allowing                                                                    
     designation  of alternating  premises,  which allows  a                                                                    
     second  location on  a university  campus that  must be                                                                    
     operated during mutually  exclusive hours from existing                                                                    
     license.                                                                                                                   
     AS 04.09.250.  Theatre license. Relocates  license from                                                                    
     regulation  (3 AAC  304.695),  raises  biennial fee  to                                                                    
     $1,250, and  lowers the penalty  for failure  to comply                                                                    
     with license terms from a misdemeanor to a violation.                                                                      
     AS  04.09.260.   Common  carrier   dispensary  license.                                                                    
     Relocates  license  from 04.11.180,  maintains  current                                                                    
     fee  schedule,   removes  "vehicle"  as   a  qualifying                                                                    
     premises,  maintains current  class  A misdemeanor  for                                                                    
     unauthorized  common  carrier dispensary  activity  and                                                                    
     lowers  the  penalty   for  common  carrier  dispensary                                                                    
     noncompliance from a misdemeanor to a violation.                                                                           
                                                                                                                                
Co-Chair MacKinnon noted that the subject began on page 11,                                                                     
line 20 of the bill.                                                                                                            
                                                                                                                                
Ms. Hanke continued:                                                                                                            
                                                                                                                                
     AS  04.09.270. Sporting  event  license. Relocates  and                                                                    
     renames recreational site  license, raises biennial fee                                                                    
     to   $1,250,   allows    for   service   and   multiple                                                                    
     noncontiguous    locations,    lowers    penalty    for                                                                    
     unauthorized   sporting    event   activity    from   a                                                                    
     misdemeanor  to  a  violation, and  establishes  8-year                                                                    
     sunset  dates  for  licenses  issued  under  former  AS                                                                    
     04.11.210.                                                                                                                 
     AS   04.09.280.  Outdoor   recreation  lodge   license.                                                                    
     Relocates license  from 04.11.225, raises  biennial fee                                                                    
     to $2,500, and lowers  penalty for unauthorized outdoor                                                                    
     recreation  lodge  activity  from a  misdemeanor  to  a                                                                    
     violation.                                                                                                                 
     AS  04.09.290. Golf  course license.  Relocates license                                                                    
     from  04.11.115, raises  biennial  fee  to $1,250,  and                                                                    
     lowers  penalty  for  failure to  comply  with  license                                                                    
     terms from a misdemeanor to a violation.                                                                                   
     AS  04.09.300.  Destination resort  license.  Relocates                                                                    
     license from 04.11.255, raises  biennial fee to $2,500,                                                                    
     allows   for   service    at   multiple   noncontiguous                                                                    
     locations,  and lowers  penalty for  failure to  comply                                                                    
     with license terms from a misdemeanor to a violation.                                                                      
     AS  04.09.310.  Brewery  retail  license.  Creates  new                                                                    
     license  type   based  on   existing  language   in  AS                                                                    
     04.11.130 for brewery  retail activities, sets biennial                                                                    
     fee at $1,250,  and sets penalty for  failure to comply                                                                    
     with license terms.                                                                                                        
     AS  04.09.320.  Winery   retail  license.  Creates  new                                                                    
     license  type   based  on   existing  language   in  AS                                                                    
     04.11.140 for  winery retail activities,  sets biennial                                                                    
     fee at $1,250,  and sets penalty for  failure to comply                                                                    
     with license terms.                                                                                                        
     AS  04.09.330. Distillery  retail license.  Creates new                                                                    
     license  type   based  on   existing  language   in  AS                                                                    
     04.11.170  for   distillery  retail   activities,  sets                                                                    
     biennial fee  at $1,250, and  sets penalty  for failure                                                                    
     to comply with license terms.                                                                                              
     AS  04.09.340.  Beverage  dispensary  tourism  license.                                                                    
     Relocates  license  from   AS  04.11.400(d),  maintains                                                                    
     biennial  fee   at  $2,500,  and  lowers   penalty  for                                                                    
     unauthorized  beverage   dispensary  activity   from  a                                                                    
     misdemeanor  to  a  violation.  Other  language  in  AS                                                                    
     04.11.400(d) relocated to Hotel or Motel Endorsement.                                                                      
     AS  04.09.350.  Seasonal  restaurant  or  eating  place                                                                    
     license.  Creates  new   license  type,  sets  biennial                                                                    
     license fee  at $1,250,  defines which  communities can                                                                    
     qualify  for  having  this license  type,  directs  the                                                                    
     board  to create  a formula  for determining  number of                                                                    
     allowed licenses  per community,  and sets  penalty for                                                                    
     failure to comply with license terms.                                                                                      
                                                                                                                                
Co-Chair MacKinnon noted that the subject was located on                                                                        
page 13, line 12 of the bill.                                                                                                   
                                                                                                                                
1:45:30 PM                                                                                                                    
                                                                                                                                
Ms. Hanke continued with the summary:                                                                                           
                                                                                                                                
     AS 04.09.230. Package  store license. Relocates license                                                                    
     from 04.11.150,  maintains biennial fee of  $1,500, and                                                                    
     lowers  penalty for  failure  to  comply with  licenses                                                                    
     terms from a  misdemeanor to a violation.   Sections in                                                                    
     current AS  04.11.150 for delivery, shipping  and other                                                                    
     activities relocated to become separate endorsements.                                                                      
     AS  04.09.240.  Pub  license.  Relocates  license  from                                                                    
     04.11.220, raises  biennial fee  to $1,250,  and lowers                                                                    
     penalty for  failure to comply with  license terms from                                                                    
     a misdemeanor  to a violation. Adds  provision allowing                                                                    
     designation  of alternating  premises,  which allows  a                                                                    
     second  location on  a university  campus that  must be                                                                    
     operated during mutually  exclusive hours from existing                                                                    
     license.                                                                                                                   
     AS 04.09.250.  Theatre license. Relocates  license from                                                                    
     regulation  (3 AAC  304.695),  raises  biennial fee  to                                                                    
     $1,250, and  lowers the penalty  for failure  to comply                                                                    
     with license terms from a misdemeanor to a violation.                                                                      
     AS  04.09.260.   Common  carrier   dispensary  license.                                                                    
     Relocates  license  from 04.11.180,  maintains  current                                                                    
     fee  schedule,   removes  "vehicle"  as   a  qualifying                                                                    
     premises,  maintains current  class  A misdemeanor  for                                                                    
     unauthorized  common  carrier dispensary  activity  and                                                                    
     lowers  the  penalty   for  common  carrier  dispensary                                                                    
     noncompliance from a misdemeanor to a violation.                                                                           
                                                                                                                                
Co-Chair MacKinnon queried the bill reference.                                                                                  
                                                                                                                                
Ms. Hanke stated that she could reference the bill.                                                                             
                                                                                                                                
Co-Chair MacKinnon stated that the location in the bill was                                                                     
page 14, line 30.                                                                                                               
                                                                                                                                
1:46:24 PM                                                                                                                    
                                                                                                                                
Ms. Hanke continued:                                                                                                            
                                                                                                                                
     AS  04.09.270. Sporting  event  license. Relocates  and                                                                    
     renames recreational site  license, raises biennial fee                                                                    
     to   $1,250,   allows    for   service   and   multiple                                                                    
     noncontiguous    locations,    lowers    penalty    for                                                                    
     unauthorized   sporting    event   activity    from   a                                                                    
     misdemeanor  to  a  violation, and  establishes  8-year                                                                    
     sunset  dates  for  licenses  issued  under  former  AS                                                                    
     04.11.210.                                                                                                                 
     AS   04.09.280.  Outdoor   recreation  lodge   license.                                                                    
     Relocates license  from 04.11.225, raises  biennial fee                                                                    
     to $2,500, and lowers  penalty for unauthorized outdoor                                                                    
     recreation  lodge  activity  from a  misdemeanor  to  a                                                                    
     violation.                                                                                                                 
     AS  04.09.290. Golf  course license.  Relocates license                                                                    
     from  04.11.115, raises  biennial  fee  to $1,250,  and                                                                    
     lowers  penalty  for  failure to  comply  with  license                                                                    
     terms from a misdemeanor to a violation.                                                                                   
     AS  04.09.300.  Destination resort  license.  Relocates                                                                    
     license from 04.11.255, raises  biennial fee to $2,500,                                                                    
     allows   for   service    at   multiple   noncontiguous                                                                    
     locations,  and lowers  penalty for  failure to  comply                                                                    
     with license terms from a misdemeanor to a violation.                                                                      
     AS  04.09.310.  Brewery  retail  license.  Creates  new                                                                    
     license  type   based  on   existing  language   in  AS                                                                    
     04.11.130 for brewery  retail activities, sets biennial                                                                    
     fee at $1,250,  and sets penalty for  failure to comply                                                                    
     with license terms.                                                                                                        
                                                                                                                                
Co-Chair MacKinnon noted that the subject was located on                                                                        
page 5, line 17.                                                                                                                
                                                                                                                                
Ms. Hanke continued with the summary:                                                                                           
                                                                                                                                
     AS 04.09.360.  Winery direct shipment  license. Creates                                                                    
     new  license   type  authorizing  direct   to  consumer                                                                    
     (including online)  sales of wine for  in-state or out-                                                                    
     of-state  winery, sets  biennial license  fee at  $200,                                                                    
     directs  the  board  to  develop  an  application  form                                                                    
     specifically  for this  license, and  sets penalty  for                                                                    
     failure to comply with license terms.                                                                                      
     6                                                                                                                          
                                                                                                                                
     AS   04.09.370.  Unlicensed   retail  sale.   Relocates                                                                    
     existing  unlicensed  retail  sale from  04.11.010  and                                                                    
     maintains current misdemeanor.                                                                                             
     AS 04.09.380. Unlicensed retail  sale in a local option                                                                    
     area. Relocates  existing unlicensed  retail sale  in a                                                                    
     local option area from  04.11.010 and maintains current                                                                    
     class C felony.                                                                                                            
                                                                                                                                
Co-Chair MacKinnon noted that the subject was on page 27,                                                                       
line 7 of the bill.                                                                                                             
                                                                                                                                
Ms. Hanke looked at page 6 of the summary:                                                                                      
                                                                                                                                
     Article 5. Endorsements.                                                                                                   
     AS   04.09.400.   Types    of   endorsements.   Defines                                                                    
     endorsements,  clarifies  that   endorsements  must  be                                                                    
     exercised with a license.                                                                                                  
     AS  04.09.410.     Manufacturer  sampling  endorsement.                                                                    
     Creates new  endorsement for  onsite sampling  based on                                                                    
     existing language from  manufacturing licenses, defines                                                                    
     per person per day volume  limits by product type, sets                                                                    
     biennial  fee at  $200, sets  penalties for  unendorsed                                                                    
     sampling and endorsement noncompliance.                                                                                    
     AS  04.09.420.  Multiple   fixed  counter  endorsement.                                                                    
     Creates  new endorsement  for  multiple fixed  counters                                                                    
     with language relocated  from duplicate license section                                                                    
     in  AS  04.11.090,  sets biennial  fee  at  $200,  sets                                                                    
     initial  application fee  per  counter, sets  penalties                                                                    
     for endorsement noncompliance and unendorsed service.                                                                      
     AS 04.09.430.  Hotel or motel endorsement.  Creates new                                                                    
     endorsement  using  some  language  relocated  from  AS                                                                    
     04.11.090, sets  biennial fee  at $200,  sets penalties                                                                    
     for unendorsed  hotel or motel service  and endorsement                                                                    
     noncompliance.                                                                                                             
     AS  04.09.440. Large  resort  endorsement. Creates  new                                                                    
     endorsement  using  some  language  relocated  from  AS                                                                    
     04.11.090, defines  a large  resort, sets  biennial fee                                                                    
     at $200, sets penalties for unendorsed large resort                                                                        
     service and endorsement noncompliance.                                                                                     
     AS  04.09.450.  Restaurant   endorsement.  Creates  new                                                                    
     endorsement   using   language  from   the   Restaurant                                                                    
     Designation  Permit   currently  in   regulation,  sets                                                                    
     biennial  fee at  $200, sets  penalties for  unendorsed                                                                    
     restaurant service and endorsement noncompliance.                                                                          
                                                                                                                                
Co-Chair  Hoffman  queried  the   activities  of  the  other                                                                    
states. Ms. Hanke deferred to Ms. Brawley.                                                                                      
                                                                                                                                
1:49:21 PM                                                                                                                    
                                                                                                                                
ANNA BRAWLEY, TITLE 4  REVIEW PROJECT COORDINATOR, ANCHORAGE                                                                    
(via teleconference), introduced herself.                                                                                       
                                                                                                                                
Co-Chair  Hoffman  queried  the   behavior  of  other  state                                                                    
related to  alcoholic beverages that  did not  include wine.                                                                    
Ms. Brawley replied  that she believed that  most states had                                                                    
limited online sales to wine.                                                                                                   
                                                                                                                                
Co-Chair Hoffman  asked about the states  near Kentucky. Ms.                                                                    
Brawley  responded that  she needed  to  research the  other                                                                    
states' policies.                                                                                                               
                                                                                                                                
Co-Chair  MacKinnon   outlined  the  color  coding   of  the                                                                    
Sectional Analysis.                                                                                                             
                                                                                                                                
Senator  Micciche  remarked  that  the  limitation  to  wine                                                                    
shipping was that there was  an alcohol distribution problem                                                                    
in  the  state. He  stated  that  a  wine shipment  must  be                                                                    
received by  someone who  is over  21, and  able to  pay the                                                                    
excise tax.                                                                                                                     
                                                                                                                                
Co-Chair   MacKinnon  noted   that  some   of  the   smaller                                                                    
communities had  their own alcohol distribution  outlet. She                                                                    
wondered whether it would affect their distribution.                                                                            
                                                                                                                                
Senator  Micciche replied  that he  did not  know the  exact                                                                    
purchase locations  for those outfits.  He assumed  that all                                                                    
the purchases were through an instate distributor.                                                                              
                                                                                                                                
Co-Chair  MacKinnon   wanted  to  know  whether   there  was                                                                    
involvement with rural communities.                                                                                             
                                                                                                                                
1:53:44 PM                                                                                                                    
                                                                                                                                
Ms. Hanke continued with the summary:                                                                                           
                                                                                                                                
     AS  04.09.460.  Package   store  shipping  endorsement.                                                                    
     Creates new endorsement by  relocating language from AS                                                                    
     04.11.150,  allows licensees  to accept  online orders,                                                                    
     sets  biennial   fee  at   $200,  sets   penalties  for                                                                    
     unendorsed  package  store   shipping  and  endorsement                                                                    
     noncompliance.                                                                                                             
     AS  04.09.470.  Package   store  delivery  endorsement.                                                                    
     Creates new endorsement by  relocating language from AS                                                                    
     04.11.150, sets  biennial fee  at $200,  sets penalties                                                                    
     for unendorsed  package store delivery  and endorsement                                                                    
     noncompliance.                                                                                                             
     AS  04.09.480. Package  store repackaging  endorsement.                                                                    
     Creates  new endorsement  by  relocating language  from                                                                    
     regulation, sets  biennial fee at $200,  sets penalties                                                                    
     for   unendorsed   package    store   repackaging   and                                                                    
     endorsement noncompliance.                                                                                                 
     AS  04.09.490.  Package   store  sampling  endorsement.                                                                    
     Creates  new endorsement,  defines per  person per  day                                                                    
     volume  limits by  product type,  sets biennial  fee at                                                                    
     $200,  sets  penalties  for  unendorsed  package  store                                                                    
     sampling and endorsement noncompliance.                                                                                    
     AS  04.09.500. Bowling  alley endorsement.  Creates new                                                                    
     endorsement  using  language  from AS  04.11.090,  sets                                                                    
     biennial  fee at  $200, sets  penalties for  unendorsed                                                                    
     bowling alley service and endorsement noncompliance.                                                                       
     AS  04.09.510.  Golf  course endorsement.  Creates  new                                                                    
     endorsement  using  language  from AS  04.11.115,  sets                                                                    
     biennial  fee at  $200, sets  penalties for  unendorsed                                                                    
    golf course service and endorsement noncompliance.                                                                          
     AS 04.09.520. Brewery  repackaging endorsement. Creates                                                                    
     new   endorsement  by   relocating  language   from  AS                                                                    
     04.11.135, limits  availability to  licensees currently                                                                    
     operating  brewpubs, sets  biennial fee  at $200,  sets                                                                    
     penalties  for   unendorsed  brewery   repackaging  and                                                                    
     endorsement noncompliance.                                                                                                 
                                                                                                                                
Senator Stevens queried the size limits of samples. Ms.                                                                         
Hanke deferred to Ms. Brawley.                                                                                                  
                                                                                                                                
1:54:38 PM                                                                                                                    
                                                                                                                                
Ms. Hanke continued with the summary:                                                                                           
                                                                                                                                
     Article 6. Permits.                                                                                                        
     AS  04.09.600.  Types   of  permits.  Defines  permits,                                                                    
     establishes  application process,  requires servers  to                                                                    
     have an  alcohol server education card,  and sets daily                                                                    
     fee for all permit types at least $50 per event day.                                                                       
     AS  04.09.610.  Beverage dispensary  caterer's  permit.                                                                    
     Relocates caterer's permit from 04.11.230 and renames.                                                                     
     AS  04.09.620.  Restaurant   caterer's  dining  permit.                                                                    
     Relocates  permit from  regulations,  renames to  allow                                                                    
     service of  meals other than dinner,  and requires meal                                                                    
     services  as  part  of  food  to  alcohol  ratio  sales                                                                    
     requirement.                                                                                                               
     AS 04.09.630.  Club caterer's permit.  Relocates permit                                                                    
     from regulations  and simplifies existing  language for                                                                    
     application process.                                                                                                       
     AS  04.09.640.  Art  exhibit permit.  Relocates  permit                                                                    
     from regulations,  removes option for annual  $100 fee,                                                                    
     and simplifies existing language.                                                                                          
     AS  04.09.650.  Nonprofit  organization  event  permit.                                                                    
     Relocates  special  events  permit from  04.11.240  and                                                                    
     renames, simplifies  existing language  for application                                                                    
     process.                                                                                                                   
     AS  04.09.660.   Alcoholic  beverage   auction  permit.                                                                    
     Relocates  wine  auction  permit from  regulations  and                                                                    
     renames  to   allow  all  alcoholic  beverages   to  be                                                                    
     auctioned.                                                                                                                 
     AS  04.09.670.   Tasting  event  permit.   Creates  new                                                                    
     permit, allows a beverage  dispensary license holder to                                                                    
     partner with a manufacturer  retail licensee or package                                                                    
     store  to  host  a  tasting   event  on  the  partner's                                                                    
     location and  serving the partner's  product inventory,                                                                    
     sets a time  limit and food requirement,  and limits to                                                                    
     six events per partnering license per year.                                                                                
     AS  04.09.680.   Inventory  resale   permit.  Relocates                                                                    
     retail stock sale license from 04.11.200 and renames.                                                                      
     AS    04.09.690.   Conditional    contractors   permit.                                                                    
     Relocates permit from 04.11.250.                                                                                           
     AS  04.09.700.   Failure  to   comply  with   a  permit                                                                    
     requirement.  Lowers  the   penalties  for  failure  to                                                                    
     comply  with permit  requirements from  misdemeanors to                                                                    
     violations.                                                                                                                
                                                                                                                                
Co-Chair MacKinnon noted that the subject was on page 46,                                                                       
line 22.                                                                                                                        
                                                                                                                                
Senator von Imhof wondered whether the fee issue addressed                                                                      
distilleries. Ms. Hanke replied that she would like more                                                                        
detail about the question.                                                                                                      
                                                                                                                                
Senator von  Imhof stated that  there was an  assertion that                                                                    
the  Title IX  rewrite included  distilleries. She  wondered                                                                    
whether  there was  pushback by  bars and  restaurants about                                                                    
competition. She wondered whether  the statute limited food,                                                                    
time, and  number of events.  She asked how the  statute was                                                                    
determined.                                                                                                                     
                                                                                                                                
Senator Micciche  replied that the  bill did not  change the                                                                    
current  law related  to distilleries.  He  stated that  the                                                                    
original  bill included  an 80/20,  but  that provision  had                                                                    
been removed. The amount served  in a distillery will remain                                                                    
the same.                                                                                                                       
                                                                                                                                
Co-Chair  MacKinnon  shared  the  concerns  of  Senator  von                                                                    
Imhof,  but  those  concerns  were   not  addressed  in  the                                                                    
legislation. She  noted that there was  activities that were                                                                    
negative to individual neighborhoods.                                                                                           
                                                                                                                                
1:58:40 PM                                                                                                                    
                                                                                                                                
Ms. Hanke continued with the summary:                                                                                           
                                                                                                                                
     Article 7. Common Carrier Approval                                                                                         
     AS 04.09.750.  Common carrier approval.  Requires board                                                                    
     approval in  order to deliver alcoholic  beverages to a                                                                    
     person  in   the  state.  Common   carriers  delivering                                                                    
     alcoholic beverages  must deliver to a  person at least                                                                    
     21 years  of age  who presents identification  and must                                                                    
     obtain  a  signature. They  will  be  required to  keep                                                                    
     record of alcohol shipments available  for audit by the                                                                    
     board. The board  shall keep a public  list of approved                                                                    
     carriers. Sets penalties  for unapproved common carrier                                                                    
     transport or delivery  and common carrier noncompliance                                                                    
     and violations.                                                                                                            
     Chapter 11. Licensing.                                                                                                     
     Pages 50-79                                                                                                                
     Section 10    License  or permit  required; presumption                                                                    
     concerning possession for sale.                                                                                            
     AS  04.11.010(a)  relocates  penalties  for  unlicensed                                                                    
     manufacture,  sale and  offering  for sale.  Unlicensed                                                                    
     sale  is  addressed  in new  sections  in  proposed  AS                                                                    
     04.09.                                                                                                                     
     Section 11                                                                                                                 
     AS  04.11.010(b) adds  reference to  the package  store                                                                    
     shipping license.                                                                                                          
     Section 12                                                                                                                 
     AS  04.11.010(c) adds  references  to unlicensed  sale,                                                                    
     corrects  term  "half-keg"  and adds  barter  to  local                                                                    
     option violation.                                                                                                          
     Section 13  Purchase from nonlicensee prohibited                                                                           
     AS 04.11.015  prohibits barter for  alcoholic beverages                                                                    
     and adds penalty with $250 fine.                                                                                           
     Section 14    Board  approval of transfer  AS 04.11.040                                                                    
     adds penalty for unauthorized  transfer of an alcoholic                                                                    
     beverage license or permit with $250 fine.                                                                                 
     Section  15    Reports  required  of limited  liability                                                                    
     organizations                                                                                                              
     AS  04.11.045  adds penalty  for  failure  to report  a                                                                    
   change in member interest or manager with $250 fine.                                                                         
     Section 16  Reports required of corporations                                                                               
     AS  04.11.050  adds penalty  for  failure  to report  a                                                                    
     stock transfer  or change of officers  or board members                                                                    
     with $250 fine.                                                                                                            
     Section 17  Reports required of partnerships                                                                               
     AS  04.11.055  adds penalty  for  failure  to report  a                                                                    
     transfer of  partnership interest or change  of general                                                                    
     partner with $250 fine.                                                                                                    
     Section 18   Nonresident  distiller, brewer, winery, or                                                                    
     wholesaler                                                                                                                 
     AS  04.11.060  amends  reference to  general  wholesale                                                                    
     license.                                                                                                                   
     Section 19                                                                                                                 
     AS  04.11.060 maintains  current penalty  for violating                                                                    
     the section.                                                                                                               
     Section 20   Application  for new license, endorsement,                                                                    
     or permit                                                                                                                  
     AS  04.11.260 adds  endorsement, requires  phone number                                                                    
     and  e-mail of  applicant, requires  annotated premises                                                                    
     drawing  and adds  license  references with  individual                                                                    
     application requirements.                                                                                                  
     Section 21                                                                                                                 
     AS  04.11.260 exempts  winery  direct shipment  license                                                                    
     from application process for other license types.                                                                          
     Section  22    Application  for renewal  of license  or                                                                    
     permit                                                                                                                     
     AS  04.11.270   adds  endorsements,   adds  conditional                                                                    
     contractor's  permit,   edits  reference,   and  allows                                                                    
     renewal applications to be sent via electronic mail.                                                                       
     Section 23                                                                                                                 
     AS  04.11.270 exempts  winery  direct shipment  license                                                                    
     from renewal process.                                                                                                      
     Section 24    Application for transfer of  a license to                                                                    
     another person                                                                                                             
     AS 04.11.280 adds endorsements  as transferrable with a                                                                    
     license.                                                                                                                   
     Section 25   Criminal justice information and records                                                                      
     AS   04.11.295(a)  adds   issuance   and  renewal   for                                                                    
     conditional contractor's permit.                                                                                           
      Section 26                                                                                                                
     AS  04.11.295(b)(1)   adds  reference   to  conditional                                                                    
     contractor's permit.                                                                                                       
     Section 27  Notice of application                                                                                          
     AS  04.11.310 exempts  winery  direct shipment  license                                                                    
     from notice requirements.                                                                                                  
     Section 28  False statement on application.                                                                                
     AS 04.11.315  relocates AS 04.16.210 and  defines crime                                                                    
     of  making false  statements on  an  application to  as                                                                    
     perjury, defined in AS 11.56.200.                                                                                          
     Section 29  Denial of new licenses and permits                                                                             
     AS 04.11.320(a) adds references to endorsements.                                                                           
     Section 30  Denial of license or permit renewal                                                                            
     AS  04.11.330(a)  changes  30  eight-hour  day  minimum                                                                    
     operating   requirement  to   240  hours   and  removes                                                                    
     reference  to  public convenience  license.  [effective                                                                    
     immediately]                                                                                                               
     Section 31                                                                                                                 
     AS  04.11.330(a)  duplicate section  adds  endorsement,                                                                    
     adds reference to  beverage dispensary tourism license,                                                                    
     and  adds reference  to seasonal  restaurant or  eating                                                                    
     place tourism license.  [effective with other licensing                                                                    
     changes, 1/1/2020]                                                                                                         
     Section 32                                                                                                                 
     AS  04.11.330(d)  exempts   common  carrier  dispensary                                                                    
     licenses  and renames  reference  to recreational  site                                                                    
     license.                                                                                                                   
     Section 33                                                                                                                 
     AS 04.11.330 exempts winery direct shipment license.                                                                       
     Section 34  Denial of request for relocation                                                                               
     AS  04.11.340 removes  reference to  public convenience                                                                    
     license.  [effective immediately]                                                                                          
     Section 35                                                                                                                 
     AS  04.11.340  duplicate  section,  adds  reference  to                                                                    
     04.11.400(k)  and  removes reference  to  04.11.400(d).                                                                    
    [effective with other licensing changes, 1/1/2020]                                                                          
     Section  36     Denial  of transfer  of  a  license  to                                                                    
     another person.                                                                                                            
     AS   04.11.360  removes   public  convenience   license                                                                    
     reference. [effective immediately]                                                                                         
     Section 37                                                                                                                 
     AS  04.11.360 duplicate  section  removes reference  to                                                                    
     brewpub  license.   [effective  with   other  licensing                                                                    
     changes, 1/1/2020]                                                                                                         
     Section   38       Licensed  premises   in   multi-unit                                                                    
     residential housing  developments owned or  financed by                                                                    
     the Alaska Housing Finance Corporation                                                                                     
     AS 04.11.365 adds reference to restaurant endorsement.                                                                     
     Section 39   Suspension  and revocation of licenses and                                                                    
     permits                                                                                                                    
     AS 04.11.370 adds endorsements.                                                                                            
     Section 40   Board imposed conditions or restrictions                                                                      
     AS 04.11.395  section title  change and  adds reference                                                                    
     to endorsements.                                                                                                           
     Section 41                                                                                                                 
     AS 04.11.395  allows the director to  impose conditions                                                                    
     or restrictions on any permit  other than a conditional                                                                    
     contractor's permit.                                                                                                       
     Section 42  Population limitations.                                                                                        
     AS   04.11.400(a)   adds    reference   to   04.11.405.                                                                    
     [effective immediately]                                                                                                    
     Section 43                                                                                                                 
     AS  04.11.400(a)  duplicate section,  edits  subsection                                                                    
     reference,  defines  five-mile radius  outside  cities,                                                                    
     adds  new  population  limit  for  manufacturer  retail                                                                    
     licenses, adds  licenses exempt from  population limits                                                                    
     and    exempts    local   option    populations    from                                                                    
     calculations. [effective with  other licensing changes,                                                                    
     1/1/2020]                                                                                                                  
     Section 44                                                                                                                 
     AS 04.11.400(i)  lists licenses exempt  from population                                                                    
     limits.                                                                                                                    
     Section 45                                                                                                                 
     AS 04.11.400(k) edits  reference to beverage dispensary                                                                    
     license, allows  relocation of a package  store, lowers                                                                    
     borough  threshold  population,   restricts  number  of                                                                    
     licenses  eligible  for  transfer  to  those  exceeding                                                                    
     population  limits   and  defines  number   of  allowed                                                                    
     transfers by city, not borough.                                                                                            
     Section  46    Petition  for  additional restaurant  or                                                                    
     eating  place  licenses  for  certain  local  governing                                                                    
     bodies                                                                                                                     
     AS 04.11.405 adds new section  that gives certain local                                                                    
     governing bodies the ability  to petition the board for                                                                    
     additional   restaurant   or  eating   place   licenses                                                                    
     allocated    to    their    jurisdiction.    [effective                                                                    
     immediately]                                                                                                               
     Section 47  48                                                                                                             
     AS 04.11.405(a)-(b) duplicate  sections amending cross-                                                                    
     references  to  restaurant  and eating  place  license.                                                                    
    [effective with other licensing changes, 1/1/2020]                                                                          
     Section 49  Person and location                                                                                            
     AS  04.11.430  updates  definition  of  corporation  to                                                                    
     match  Title  10  and requires  additional  information                                                                    
     from licensees.                                                                                                            
     Section 50  Prohibited financial interest                                                                                  
     AS  04.11.450(b)  retains  restrictions  for  wholesale                                                                    
     licensees from  owning a manufacturing tier  license or                                                                    
     retail  tier  license,  removes  restriction  on  small                                                                    
     manufacturers owning retail tier licenses.                                                                                 
     Section 51                                                                                                                 
     AS  04.11.450(e) adds  reference  to limited  wholesale                                                                    
     license  to restriction  on acting  as  an employee  or                                                                    
     agent  of a  manufacturer tier  license or  retail tier                                                                    
     license and adds the new statutory license references.                                                                     
     Section 52                                                                                                                 
     AS   04.11.450   adds   new  section   that   restricts                                                                    
     manufacturers  above  certain  annual  production  from                                                                    
     owning  a   wholesale  tier  license  or   retail  tier                                                                    
     license.                                                                                                                   
     Section 53  Prior public approval                                                                                          
     AS 04.11.460 exempts winery direct shipment license.                                                                       
     Section 54  56                                                                                                             
     AS  04.11.470     AS  04.11.480  adds  endorsements  to                                                                    
     allowable objections and protest.                                                                                          
     Section 58 - 60  Local options                                                                                             
     AS 04.11.491 renumbers  statutory references to license                                                                    
     types  and  adds outdoor  recreation  lodge  as one  of                                                                    
     license types  that can  be exempted  from restrictions                                                                    
     on sale in local option elections                                                                                          
     Section 61                                                                                                                 
     AS  04.11.491(g)  edits   reference  to  package  store                                                                    
     license.                                                                                                                   
     Section 62  Notice to local governing body                                                                                 
     AS 04.11.520 clarifies language  for notice process and                                                                    
     adds endorsements.                                                                                                         
     Section 63    Suspension  and revocation based  on acts                                                                    
     of employees                                                                                                               
     AS   04.11.535(a)  adds   endorsements,  reference   to                                                                    
     permittee as applicable and clarifying language.                                                                           
     Section 64 - 67                                                                                                            
     AS  04.11.537     AS  04.11.570  adds  endorsements  or                                                                    
     conditional contractors permit  to application, renewal                                                                    
     and  expiration,  appeals,  refunds and  forfeiture  of                                                                    
     fees procedures.                                                                                                           
     Section 68  Surrender or destruction of a license                                                                          
     AS 04.11.580(b) changes language to "not later than".                                                                      
     Section 69  Disposition of money                                                                                           
     AS 04.11.590(a) adds reference to endorsements and                                                                         
     permits.                                                                                                                   
                                                                                                                                
Co-Chair  Hoffman  queried   the  justification.  Ms.  Hanke                                                                    
replied that, in some of  the local option communities, that                                                                    
the   license  types   were  elected   when  unable.   Those                                                                    
businesses were having issues renewing their licenses.                                                                          
                                                                                                                                
Co-Chair  Hoffman  stressed that  the  issue  was about  the                                                                    
people  that lived  in the  region  year-round. He  asserted                                                                    
that many of  the people operating the licenses  may only be                                                                    
in  the communities  for a  few  months. He  felt that  that                                                                    
deferring  the decisions  to the  lodge  owners against  the                                                                    
wishes of  the residents was not  the right thing to  do. He                                                                    
stressed  that those  residents should  decide what  happens                                                                    
within their boundaries.                                                                                                        
                                                                                                                                
Senator Micciche replied that it  was only in support of the                                                                    
local decision process.                                                                                                         
                                                                                                                                
Co-Chair MacKinnon looked at line 10, page 74, Section 58:                                                                      
                                                                                                                                
     if a  majority of  the persons  voting on  the question                                                                    
     vote to  approve the option a  municipality shall adopt                                                                    
     a  local  option  to  prohibit   the  sale  of  alcohol                                                                    
     beverages.                                                                                                                 
                                                                                                                                
Co-Chair  MacKinnon stated  that  section (g)  was added  to                                                                    
include local control over an outdoor recreational lodge.                                                                       
                                                                                                                                
Senator Micciche agreed.                                                                                                        
                                                                                                                                
Senator  Olson   echoed  Co-Chair  Hoffman's   concerns.  He                                                                    
remarked  that  is his  district  was  similar to  what  was                                                                    
described.                                                                                                                      
                                                                                                                                
Senator von  Imhof read  that a  majority could  prohibit an                                                                    
outdoor recreation lodge.                                                                                                       
                                                                                                                                
Co-Chair  MacKinnon replied  that  Department  of Law  would                                                                    
speak on the issue.                                                                                                             
                                                                                                                                
2:05:47 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:05:53 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
2:05:55 PM                                                                                                                    
                                                                                                                                
Senator Olson welcomed children from Salmon Bay.                                                                                
                                                                                                                                
Ms. Hanke continued with the summary:                                                                                           
                                                                                                                                
     Section 70  Refund to municipalities                                                                                       
     AS   04.11.610   changes   "refund"   to   "allocation"                                                                    
     throughout  and  specifies   content  of  reporting  by                                                                    
     municipalities for how license  fee funds were used for                                                                    
     alcohol-related education and enforcement.                                                                                 
     Section  71    Accessibility  of  license and  licensed                                                                    
     premises to inspection                                                                                                     
     AS   04.11.630(b)   adds  endorsements,   permits   and                                                                    
     includes premises during a permitted event.                                                                                
     Section 72  Duration of licenses and permits                                                                               
     AS    04.11.680    adds    endorsements,    conditional                                                                    
     contractors permit, states that  permits must be issued                                                                    
     for  a specified  time, and  removes fee  reduction for                                                                    
     seasonal licenses.                                                                                                         
     Chapter 16. Regulation of Sales and Distribution.                                                                          
     Pages 79-96                                                                                                                
     Section 73    Hours  of sale  and presence  on licensed                                                                    
     premises (standard closing hours)                                                                                          
     AS 04.16.010(c) allows  a person to be  on the licensed                                                                    
     premises  outside  of  the hours  of  sale  to  conduct                                                                    
     business    with   the    licensee,   maintenance    or                                                                    
     improvements,   common  carrier   licensees  and   adds                                                                    
     restaurant endorsement reference.                                                                                          
     Section 74                                                                                                                 
     AS  04.16.010 lowers  penalty from  a misdemeanor  to a                                                                    
     violation.                                                                                                                 
     Section  75     Pricing   and  marketing  of  alcoholic                                                                    
     beverages                                                                                                                  
     AS  04.16.015(a)  exempts   sampling  endorsements  and                                                                    
     defines week as seven days.                                                                                                
     Section 76                                                                                                                 
     AS  04.16.015 lowers  penalty from  a misdemeanor  to a                                                                    
     violation.                                                                                                                 
     Section 77  Trade practices                                                                                                
     AS 04.16.017  new section specifying  illegal practices                                                                    
     by  manufacturers  and  directs   the  board  to  adopt                                                                    
     regulations  defining  exceptions  to these  rules  and                                                                    
     administrative penalties for violations.                                                                                   
     Section  78     Solicitation  of  alcoholic  beverages;                                                                    
     purchase on behalf of another                                                                                              
     AS   04.16.020   lowers    penalty   for   unauthorized                                                                    
     solicitation or purchase of  alcoholic beverages from a                                                                    
     misdemeanor to a violation.                                                                                                
     Section  79    Online  sale and  purchase of  alcoholic                                                                    
     beverages                                                                                                                  
     AS04.16.022  new  section prohibiting  online  purchase                                                                    
     and  sale  unless  the licensee  has  a  winery  direct                                                                    
     shipment license or  package store shipping endorsement                                                                    
     and sets penalties.                                                                                                        
     Section  80    Illegal presence  on premises  involving                                                                    
     alcoholic beverages                                                                                                        
     AS  04.16.025(a)  adds   statutory  references  to  all                                                                    
     penalties involving sale without a license.                                                                                
     Section  81    Prohibited conduct  relating to  drunken                                                                    
     persons                                                                                                                    
     AS  04.16.030  lowers  penalty for  prohibited  conduct                                                                    
     relating  to  a  drunken  person,  adds  administrative                                                                    
     penalty  to  licensee if  employee  is  convicted of  a                                                                    
     violation  of this  section, and  relocates misdemeanor                                                                    
     penalty for licensee who  knowingly allows employees to                                                                    
     violate this section.                                                                                                      
     Section 82   Possession  of ingredients for homebrew in                                                                    
     certain areas                                                                                                              
     AS 04.16.035  changes statutory reference to  all local                                                                    
     option areas, consistent  with AS 04.21.025 restricting                                                                    
     private  manufacture of  alcohol  in  all local  option                                                                    
     areas.                                                                                                                     
     Section 83                                                                                                                 
     AS 04.16.035  maintains current penalty  for possession                                                                    
     of ingredients for homebrew.                                                                                               
     Section  84    Access  of drunken  persons to  licensed                                                                    
     premises                                                                                                                   
     AS 04.16.040 rewords licensed premises language.                                                                           
     Section 85                                                                                                                 
     AS   04.16.040  relocates   and   lowers  penalty   for                                                                    
     prohibited access by a drunken person.                                                                                     
     Section  86    Obligation  to  enforce restrictions  in                                                                    
     licensed premises                                                                                                          
     AS   04.16.045  relocates   and   lowers  penalty   for                                                                    
     permitting consumption not authorized under a license.                                                                     
     Section  87    Access  of persons  with restriction  on                                                                    
     purchasing alcohol                                                                                                         
     AS  04.16.047 adds  reference to  penalty for  entering                                                                    
     and  remaining  on  licensed  premises  defined  in  AS                                                                    
     04.16.160.                                                                                                                 
     Section 88    Access to persons under the age  of 21 to                                                                    
     licensed premises                                                                                                          
     AS   04.16.049(a)   amends  reference   to   restaurant                                                                    
     endorsement and club license.                                                                                              
     Section 89                                                                                                                 
     AS 04.16.049(c)  adds additional license  types allowed                                                                    
     to  have underage  persons  on  premises as  employees,                                                                    
     ages 16 and 17, provided they are not serving alcohol.                                                                     
     Section 90                                                                                                                 
     AS 04.16.049(d)  adds additional license  types allowed                                                                    
     to  have underage  persons  on  premises as  employees,                                                                    
    ages 18-20, provided they are not serving alcohol.                                                                          
     Section 91                                                                                                                 
     AS 04.16.049  adds additional license types  allowed to                                                                    
     have  underage   persons  on  premises   if  traveling,                                                                    
     provided they are not served or consume alcohol.                                                                           
     Section  92     Furnishing of  alcoholic  beverages  to                                                                    
     person under the age of 21 by licensees                                                                                    
     AS   04.16.052  lowers   penalty   for  furnishing   or                                                                    
     delivering to a  minor by a licensee  or employee, adds                                                                    
     administrative  penalty  to  licensee  if  employee  is                                                                    
     convicted  of a  violation of  this section  and shifts                                                                    
     misdemeanor  penalty in  AS 04.16.150  to licensee  who                                                                    
    knowingly allows employees to violate this section.                                                                         
     Section  93    Room  rental for  purposes of  consuming                                                                    
     alcoholic beverages                                                                                                        
     AS 04.16.055 maintains class  A misdemeanor for renting                                                                    
     a  room   for  the   purpose  of   providing  alcoholic                                                                    
     beverages to a person under 21 years of age.                                                                               
     Section  94    Permitting  minor  to illegally  possess                                                                    
     liquor in a dwelling                                                                                                       
     AS  04.16.057(b) maintains  current violation  and adds                                                                    
     $500 fine.                                                                                                                 
     Section 95    Purchase by or delivery  to persons under                                                                    
     the age of 21                                                                                                              
     AS  04.16.060(e)  relocates   requirement  for  persons                                                                    
     under the  age of 16 to  be accompanied by a  person 21                                                                    
     years of age  and have parental consent to  remain in a                                                                    
     restaurant  that serves  alcohol,  now  in proposed  AS                                                                    
     04.09.450 in Section 9.                                                                                                    
     Section 96                                                                                                                 
     AS  04.16.060  defines  penalties  for  purchase  by  a                                                                    
     person under 21  years of age and delivery  to a person                                                                    
     under  21 years  of  age. For  persons  under 21,  adds                                                                    
     similar penalty structure as those  in AS 04.16.049 and                                                                    
     AS 04.16.050,  $500 fine for  violation with  option to                                                                    
     reduce  fine to  $50  if youth  completes treatment  or                                                                    
     community diversion panel.                                                                                                 
     Section 97  Sales or consumption at school events                                                                          
     AS 04.16.080 edits title for  the section and specifies                                                                    
     that the  section applies to  a person 21 years  of age                                                                    
     and older.                                                                                                                 
     Section 98                                                                                                                 
     AS 04.16.080  specifies that this section  applies to a                                                                    
     person  21  years  of  age and  older  and  lowers  the                                                                    
    penalty from a class A misdemeanor to a $100 fine.                                                                          
     Section 99  Prohibition of bottle clubs                                                                                    
     AS  04.16.090(c) makes  list exclusive  and adds  cover                                                                    
     charge and  other services or products  provided on the                                                                    
     premises.                                                                                                                  
     Section 100                                                                                                                
     AS 04.16.090 defines the crime  of maintaining a bottle                                                                    
     club, relocates and maintains current penalty.                                                                             
     Section  101     Sale of  certain  alcoholic  beverages                                                                    
     prohibited                                                                                                                 
     AS  04.16.110 defines  sale of  a prohibited  alcoholic                                                                    
    beverage, relocates and maintains current penalty.                                                                          
     Section  102    Removal  or  introduction of  alcoholic                                                                    
     beverages                                                                                                                  
     AS  04.16.120   defines  removal  or   introduction  of                                                                    
     alcoholic  beverages, reduces  penalty  to a  violation                                                                    
     and defines exemptions.                                                                                                    
     Section  103      Alcoholic  beverages  transported  by                                                                    
     common carrier                                                                                                             
     AS 04.16.125(a)  references board approval of  a common                                                                    
     carrier   added  in   AS  04.09.750(b)   and  clarifies                                                                    
     existing language.                                                                                                         
     Section 104                                                                                                                
     AS  04.16.125(b) clarifies  existing transport  volumes                                                                    
     by alcohol type.                                                                                                           
     Section 105                                                                                                                
     AS 04.16.125  adds new  subsections defining  the crime                                                                    
     of unauthorized  transportation of  alcoholic beverages                                                                    
     by  common  carrier  into  a   local  option  area  and                                                                    
     maintains current class A misdemeanor.                                                                                     
     Section 106  Stock confined to licensed premises                                                                           
     AS  04.16.130  lowers   the  penalty  for  unauthorized                                                                    
     storage of alcoholic beverages from  a misdemeanor to a                                                                    
     violation.                                                                                                                 
     Section  107   -  Sale  or  consumption   of  alcoholic                                                                    
     beverages in a warehouse                                                                                                   
     AS  04.16.140 lowers  the  penalty  for consumption  or                                                                    
     sale  of  alcoholic beverages  in  a  warehouse from  a                                                                    
     misdemeanor to a violation.                                                                                                
     Section 108  Licensee responsible for violations                                                                           
     AS 04.16.150  lowers the penalty for  failure to ensure                                                                    
     compliance from a misdemeanor to a violation.                                                                              
     Section  109     Restriction  on  purchasing  alcoholic                                                                    
     beverages                                                                                                                  
     AS 04.16.160  maintains current penalty for  failure to                                                                    
     comply  with  a  restriction  on  purchasing  alcoholic                                                                    
     beverages.                                                                                                                 
     Section 110 - 111  Source of alcoholic beverages                                                                           
     AS  04.16.170 exempts  winery  direct shipment  license                                                                    
     and  maintains current  penalty for  sale of  alcoholic                                                                    
     beverages from or to an unlicensed person.                                                                                 
     Section 112 -  113   Restrictions on  purchase and sale                                                                    
     of alcoholic beverages                                                                                                     
     AS  04.16.172  renumbers  cross-references  to  license                                                                    
     types  and  maintains   current  penalty  for  licensee                                                                    
     obtaining  alcoholic   beverages  from   an  unlicensed                                                                    
     seller.                                                                                                                    
     Section 114   Furnishing  alcoholic beverages in aid of                                                                    
     gambling enterprise                                                                                                        
     AS 04.16.175  maintains current  penalty for  the crime                                                                    
     of  furnishing  an  alcoholic  beverage  in  aid  of  a                                                                    
     gambling enterprise.                                                                                                       
     Section 115  Penalties for violation                                                                                       
     AS   04.16.180(b)   adds    statutory   references   to                                                                    
     prohibited  conduct  related  to  drunken  persons  and                                                                    
     furnishing  alcoholic beverages  to  persons under  the                                                                    
     age of 21 by licensees.                                                                                                    
     Section 116                                                                                                                
     AS 04.16.080(e) adds definition for "conviction".                                                                          
     Section 117                                                                                                                
     AS  04.16.180  adds  clarification that  licensees  are                                                                    
     subject  to  administrative  penalties imposed  by  the                                                                    
     board for  violations of AS 04.16.030  (Section 81) and                                                                    
     AS   04.16.052  (Section   92)   and  adds   mitigating                                                                    
     circumstances for licensees.                                                                                               
     Section 118 - 121  Forfeitures and seizures                                                                                
     AS 04.16.220(a) renumbers cross-references.                                                                                
                                                                                                                                
2:10:34 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  looked at line 28.  She wondered whether                                                                    
prohibited  conduct  relating  to  a drunken  person  was  a                                                                    
violation  punishable  by $500.  Ms.  Hanke  replied in  the                                                                    
affirmative,  and  stated that  it  would  trigger the  $250                                                                    
administrative penalty to the licensee.                                                                                         
                                                                                                                                
Co-Chair Hoffman queried the definition  of "inebriate" on a                                                                    
licensed premises. Ms. Hanke deferred to Ms. McConnell                                                                          
                                                                                                                                
2:11:41 PM                                                                                                                    
                                                                                                                                
ERIKA  MCCONNELL,  ALCOHOL   AND  MARIJUANA  CONTROL  BOARD,                                                                    
ANCHORAGE (via teleconference), introduced herself                                                                              
                                                                                                                                
Co-Chair Hoffman queried the definition  of "inebriate" on a                                                                    
licensed  premises,   as  referenced  in  Section   84.  Ms.                                                                    
McConnell  replied  that  "drunken person"  was  defined  in                                                                    
Title 4  as "a  person whose physical  or mental  conduct is                                                                    
substantially impaired  as a result  of the  introduction of                                                                    
an  alcoholic  beverage  into the  person's  body;  and  who                                                                    
exhibits  those  plain  and easily  observed  or  discovered                                                                    
outward  manifestations of  behavior  commonly  known to  be                                                                    
produced  by the  overconsumption  of alcoholic  beverages."                                                                    
She stated that a drunken  person was identified more by the                                                                    
behaviors rather than a specific blood-alcohol level.                                                                           
                                                                                                                                
Ms. Hanke continued with the summary:                                                                                           
                                                                                                                                
     Chapter 21. General Provisions.                                                                                            
     Pages 96-103                                                                                                               
     Section 122  Keg registration                                                                                              
     AS  04.21.012  adds  new  section  establishing  a  keg                                                                    
     registration   process   including    proof   of   age,                                                                    
     registration  form  requirements, identification  tags,                                                                    
     and establishes the penalty for  possession and sale of                                                                    
     alcoholic beverages in an unregistered keg.                                                                                
     Section  123  -  124      Civil  liability  of  persons                                                                    
     providing alcoholic beverages                                                                                              
     AS 04.21.020(a) renumbers cross-references.                                                                                
     Section 125  Alcohol server education course                                                                               
     AS  04.21.025(a) repeal  and  reenact  section to  list                                                                    
     license  types that  do  not  require server  education                                                                    
     training:  only licenses  not  serving  the public  are                                                                    
     exempt from requirement.                                                                                                   
     Section 126                                                                                                                
     AS 04.21.025(b)  adds reference  to permit  holders and                                                                    
     individuals listed  on an application as  servers for a                                                                    
     permitted event.                                                                                                           
     Section 127                                                                                                                
     AS 04.21.025(c)  adds reference  to permit  holders and                                                                    
     requires servers  listed on  the permit  application to                                                                    
     have a current alcohol servers  card by the first event                                                                    
     day.                                                                                                                       
     Section 128                                                                                                                
     AS  04.21.025  provides  exceptions to  alcohol  server                                                                    
     education and defines the offense  of failure to comply                                                                    
     with alcohol server  education requirements. Lowers the                                                                    
     existing class A misdemeanor to a violation.                                                                               
     Section 129   Proof of  age and of not being restricted                                                                    
     from purchasing alcoholic beverages                                                                                        
     AS 04.21.050(a) renumbers cross-reference.                                                                                 
     Section 130  Warehousing of alcoholic beverages                                                                            
     AS  04.21.060  defines   the  offense  of  unauthorized                                                                    
     warehousing and lowers penalty from  a misdemeanor to a                                                                    
     violation.                                                                                                                 
     Section 131  Posting of warning signs                                                                                      
     AS  04.21.065(a) updates  list  of  license types  that                                                                    
     require warning signs.                                                                                                     
     Section 132                                                                                                                
     AS 04.21.072.  Fines and other criminal  penalties. New                                                                    
     section which  provides that, unless  otherwise stated,                                                                    
     a violation of this title is a $250 fine.                                                                                  
     AS  04.21.074. Bail  forfeiture  schedule. Directs  the                                                                    
     supreme  court  to set  a  bail  schedule for  Title  4                                                                    
     violations.                                                                                                                
     AS 04.21.076. Suspension of  fine or sentence. Prevents                                                                    
     the court from suspending  fines or sentences for minor                                                                    
     offenses.                                                                                                                  
     Section 133    Court records of persons  under 21 years                                                                    
     of age                                                                                                                     
     AS  04.21.078 adds  additional  statutory reference  to                                                                    
     violations of AS 04.16.060.                                                                                                
     Section 134  Definitions                                                                                                   
     AS  04.21.080(b)(6) adds  reference  to permit  holders                                                                    
     and license holders.                                                                                                       
     Section 135                                                                                                                
     AS 04.21.080(b)(15) adds endorsements.                                                                                     
     Section 136                                                                                                                
     AS 04.21.080(b) adds definitions.                                                                                          
     Amendments to Various Other Titles.                                                                                        
     Pages 103-108                                                                                                              
     Section 137  Definitions                                                                                                   
     AS 05.15.690(48)  renumber beverage  dispensary license                                                                    
     reference and update "bar" definition.                                                                                     
     Section 138  143                                                                                                           
     Amends references  to Title 4  in Titles 9, 11,  12 and                                                                    
     18.                                                                                                                        
     Section 144  - Unlawful  practices in places  of public                                                                    
     accommodation                                                                                                              
    AS 18.80.230(b) amends reference to chapter 04.11.                                                                          
     Section 145  Definitions                                                                                                   
     AS  39.50.200(b) adds  the marijuana  control board  to                                                                    
     list of state commissions or boards.                                                                                       
     Section 146    Winery  direct shipment  tax; statement;                                                                    
     audit                                                                                                                      
     AS 43.60.060 establishes tax  collection on direct wine                                                                    
     shipments  from out  of state  businesses holding  this                                                                    
     license  and outlines  requirements for  the Department                                                                    
     of Revenue.  Section 147 - 148                                                                                             
     AS 43.70.105(a)  amends references to chapter  04.11 in                                                                    
     Titles 43 and 45.                                                                                                          
     Repealers,   Transitions,  Applicability,   Court  Rule                                                                    
     Amendment, and Effective Dates.                                                                                            
     Pages 108-112                                                                                                              
     Section 149                                                                                                                
    Amends court rule 17 by adding statutory reference.                                                                         
     Section 150                                                                                                                
     Repealing  section with  effective date  of January  1,                                                                    
     2020.                                                                                                                      
     Section 151                                                                                                                
     Immediate repeal section.                                                                                                  
     Section 152                                                                                                                
     Repealing  section with  effective date  of January  1,                                                                    
     2028.                                                                                                                      
     Section 153                                                                                                                
     Repealing  section with  effective date  of January  1,                                                                    
     2020.                                                                                                                      
     Section 154  Uncodified law                                                                                                
     Applicability.  States that  changes apply  to offenses                                                                    
     committed on, or after the effective date.                                                                                 
     Section 155  Transition                                                                                                    
     Conversion of applications  and licenses. Provides that                                                                    
     the  board shall  convert  all  necessary licenses  and                                                                    
     applications within  90 days  after the  effective date                                                                    
     of the section which is January 1, 2020.                                                                                   
     Section 156  Transition                                                                                                    
     Seasonal restaurant  or eating place  license. Converts                                                                    
     applications  for restaurant  or eating  place licenses                                                                    
     to   seasonal  restaurant   or  eating   place  license                                                                    
     application if  the establishment serves beer  and wine                                                                    
     for  a period  not exceeding  six months.  This section                                                                    
     has an immediate effective date.                                                                                           
     Section 157  Transition                                                                                                    
     Regulations. Directs the Department and the Board to                                                                       
     adopt   necessary   regulations   with   an   immediate                                                                    
     effective date.                                                                                                            
     Section 158                                                                                                                
     Immediate effective date clause.                                                                                           
     Section 159                                                                                                                
     January 1, 2020 effective date for the remainder of                                                                        
     the act.                                                                                                                   
                                                                                                                                
2:16:06 PM                                                                                                                    
                                                                                                                                
Senator  Micciche  noted  that the  package  store  sampling                                                                    
quantities. He  stated that  between the  hours of  12am and                                                                    
8am were  the hours that  samples could not be  offered, and                                                                    
the  holder of  the package  store sampling  endorsement may                                                                    
serve  a total  volume of  samples to  a person  on licensed                                                                    
premises each day  that did not exceed 12 ounces  of beer, 6                                                                    
ounces  of wine,  1.5 ounces  of distilled  spirits, or  the                                                                    
alcoholic  equivalent   of  one,   two,  or  three   of  the                                                                    
subsection.                                                                                                                     
                                                                                                                                
Co-Chair MacKinnon asked for a restatement.                                                                                     
                                                                                                                                
Senator Micciche restated his comment.                                                                                          
                                                                                                                                
Senator  Stevens  wondered whether  it  was  limited to  1.5                                                                    
ounces  a day,  and noted  that  it was  unlike behavior  in                                                                    
Dublin.                                                                                                                         
                                                                                                                                
Senator Micciche replied in the affirmative.                                                                                    
                                                                                                                                
Co-Chair  MacKinnon looked  at  page 39,  line  10 that  was                                                                    
related to the subject.                                                                                                         
                                                                                                                                
Co-Chair  Hoffman  looked  at Section  92.  He  queried  the                                                                    
justifications and details of the changes in that section.                                                                      
                                                                                                                                
Senator Micciche deferred to Ms.  Brawley, who was the well-                                                                    
versed on the conclusions.                                                                                                      
                                                                                                                                
Ms. Brawley stated  that the current penalty  for a licensee                                                                    
or their employee  serving a minor on  licensed premises was                                                                    
a  Class  A  misdemeanor.  She  stated  that  there  was  an                                                                    
examination of  many penalties in  Title IX. She  noted that                                                                    
many cases were either  dismissed or not prosecuted, because                                                                    
the penalty  was applied  to a wide  range of  offences. She                                                                    
noted that  businesses wanted economic incentives  to follow                                                                    
the  law, so  the  proposed change  was  for more  effective                                                                    
enforcement. She  stated that the  additional administrative                                                                    
penalty on that licensee for  one of the employees serving a                                                                    
minor  was supposed  to be  a notification.  She noted  that                                                                    
there would be an affect on the license.                                                                                        
                                                                                                                                
2:20:52 PM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman  felt that  the largest  economic incentive                                                                    
would be a provision that  said that providing an alcohol to                                                                    
a minor  over a period of  time that their license  would be                                                                    
revoked.  He  queried  a   similar  provision.  Ms.  Brawley                                                                    
replied that  deferred to Ms.  McConnell. She  remarked that                                                                    
the   violation  system   did  not   mean  that   there  was                                                                    
application of penalties.                                                                                                       
                                                                                                                                
Co-Chair Hoffman felt  that was the reason  for ignoring the                                                                    
penalties.  Ms. McConnell  looked  at  Section 4.11.370  was                                                                    
related  to   suspension  or  revocation  of   licenses  and                                                                    
permits.  It  stated  that  a license  or  permit  shall  be                                                                    
suspended or  revoked if  the board  finds conviction  of an                                                                    
agent  or employee  of a  licensee  of a  violation of  this                                                                    
title, a  regulation adopted under this  title, a regulation                                                                    
adopted under this  title, or an ordinance  adopted under AS                                                                    
04.21.010. She furthered  that if the licensee  was found by                                                                    
the board to either knowingly  violate or to have recklessly                                                                    
or  with criminal  negligence failed  to  act in  accordance                                                                    
with the duty  prescribed under AS 4.21.030  with the result                                                                    
that the  agent or employee  violated a law,  regulation, or                                                                    
ordinance. She stressed that the  title authorized the board                                                                    
to  revoke  a  license  for many  fewer  offenses  than  ten                                                                    
offenses  of selling  to a  minor. She  remarked that  there                                                                    
would be action against a licensed for fewer violations.                                                                        
                                                                                                                                
Co-Chair  Hoffman  wondered  how   many  licenses  had  been                                                                    
revoked in  the last  year under  the current  provision. He                                                                    
queried whether  it was  a smaller  number, when  those were                                                                    
not following  the law  by selling alcohol  to a  minor. Ms.                                                                    
McConnell replied  that licenses had  not be revoked  in the                                                                    
last  year   under  the  provision.   She  noted   that  the                                                                    
compliance check program  was stopped in 2015,  and was only                                                                    
now bringing back the program.                                                                                                  
                                                                                                                                
Co-Chair  Hoffman   queried  the  reason  for   halting  the                                                                    
program. Ms. McConnell  replied that there were  a number of                                                                    
factors  to  halt  the   program  including  resources.  The                                                                    
program  was previously  funded under  a federal  grant, and                                                                    
that  grant ended  shortly before  the  program ceased.  She                                                                    
also stated  that there were  issues related to  the ability                                                                    
to hire underage persons who needed compensation.                                                                               
                                                                                                                                
2:25:31 PM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman  felt that  it was a  major problem  in the                                                                    
state. He felt that the  license fee should be increased, so                                                                    
the licensees  paid for the  program. Ms. McConnell  did not                                                                    
disagree,  and noted  that  the passage  of  the bill  would                                                                    
increase revenues.                                                                                                              
                                                                                                                                
Co-Chair  Hoffman  queried  the timeframes  and  numbers  of                                                                    
violations that must occur for  revocation of a license. Ms.                                                                    
McConnell replied that there was  not a standard in statute.                                                                    
She  stated that  there were  procedures for  a director  to                                                                    
propose  to  the  board  that  a  license  be  suspended  or                                                                    
revoked, so  it was  at the discretion  of the  director for                                                                    
the  time  of  proposition.  She stressed  that  selling  to                                                                    
underage  individuals   was  one   of  the   most  egregious                                                                    
violations of the alcohol laws.                                                                                                 
                                                                                                                                
Co-Chair Hoffman reiterated that it  continued to be a large                                                                    
problem, and  it seemed  as though  someone may  be "looking                                                                    
the  other way."  He felt  that there  should be  an overall                                                                    
fix. He  wanted to make all  licensees see that they  had to                                                                    
follow the  same rules as  their competitors.  Ms. McConnell                                                                    
agreed.                                                                                                                         
                                                                                                                                
Co-Chair  Hoffman   stressed  that  no  licenses   had  been                                                                    
revoked, so he was extremely concerned.                                                                                         
                                                                                                                                
Co-Chair  MacKinnon  queried  the distinctions  between  the                                                                    
revoked  licenses  and  those  revoked  licenses  under  the                                                                    
section.   Ms.   McConnell   replied  that   there   was   a                                                                    
distinction. She  shared that no  licenses had  been revoked                                                                    
in her  tenure of almost  one year. She furthered  that some                                                                    
licenses had not been renewed.                                                                                                  
                                                                                                                                
Co-Chair MacKinnon  felt that Section 92  should be examined                                                                    
further.                                                                                                                        
                                                                                                                                
Senator   Micciche  stressed   that   the   issue  put   the                                                                    
responsibility   that   they   previously   did   not   have                                                                    
responsibility.                                                                                                                 
                                                                                                                                
2:31:10 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  wondered whether municipalities  were in                                                                    
the  working   group.  Senator   Micciche  replied   in  the                                                                    
affirmative.                                                                                                                    
                                                                                                                                
Senator  Stevens queried  the proof  that someone  knowingly                                                                    
sold to a minor. He felt that it was a high bar.                                                                                
                                                                                                                                
Co-Chair  Hoffman  asserted that  it  was  not a  high  bar,                                                                    
because  state law  could demand  for a  mandatory check  of                                                                    
licenses.                                                                                                                       
                                                                                                                                
Co-Chair MacKinnon  wondered whether  there was  a mandatory                                                                    
check in the  bill. Senator Micciche replied  that the state                                                                    
already had a mandatory check in the entire state.                                                                              
                                                                                                                                
Ms. Hanke stated that the  default mental state for Title IX                                                                    
was "knowingly."                                                                                                                
                                                                                                                                
Co-Chair MacKinnon OPENED public testimony.                                                                                     
                                                                                                                                
2:33:55 PM                                                                                                                    
                                                                                                                                
TIFFANY  HALL, EXECUTIVE  DIRECTOR, RECOVER  ALASKA, JUNEAU,                                                                    
spoke in support  of the legislation. She  remarked that the                                                                    
process  was  long  and  thorough  with  overconsumption  of                                                                    
alcohol.                                                                                                                        
                                                                                                                                
Co-Chair MacKinnon wanted to capture all the points.                                                                            
                                                                                                                                
2:36:55 PM                                                                                                                    
                                                                                                                                
DALE FOX,  ALASKA CABARET,  HOTEL, RESTAURANT  AND RETAILERS                                                                    
ASSOCIATION  (CHARR), JUNEAU,  felt  that  a well  regulated                                                                    
alcohol industry  was healthy.  He spoke  in support  of the                                                                    
bill.                                                                                                                           
                                                                                                                                
Co-Chair Hoffman  remarked that alcohol abuse  and crime was                                                                    
directly  related  to  alcohol.  He   felt  that  it  was  a                                                                    
ludicrous assumption to focus on  the cost of court fees. He                                                                    
stressed that there should be  a challenge to the licensees.                                                                    
He stressed that there was  a major public safety and public                                                                    
health  issue. Ms.  Fox replied  that he  was attempting  to                                                                    
explain how the board was currently addressing the issue.                                                                       
                                                                                                                                
Senator  Stevens  noted that  there  was  opposition by  the                                                                    
Brewer's  Guild,  and queried  whether  the  guild had  been                                                                    
satisfied  by  the current  version  of  the bill.  Ms.  Fox                                                                    
believed that they were in support of the bill.                                                                                 
                                                                                                                                
Senator Stevens asked to hear from the Brewers Guild.                                                                           
                                                                                                                                
2:42:18 PM                                                                                                                    
                                                                                                                                
RYAN  MAKINSTER, BREWERS  GUILD  OF  ALASKA, ANCHORAGE  (via                                                                    
teleconference), spoke in support of the bill.                                                                                  
                                                                                                                                
Co-Chair MacKinnon asked  whether the controversial sections                                                                    
had been removed. Ms. Makinster replied in the affirmative.                                                                     
                                                                                                                                
2:44:52 PM                                                                                                                    
                                                                                                                                
JOEL KADARAUCH,  ALASKA BEER, WINE, AND  SPIRITS WHOLESALERS                                                                    
ASSOCIATION,  ANCHORAGE (via  teleconference), testified  in                                                                    
support of the bill.                                                                                                            
                                                                                                                                
2:45:30 PM                                                                                                                    
                                                                                                                                
MICHEAL  BALDWIN,  ALASKA  MENTAL  HEALTH  TRUST  AUTHORITY,                                                                    
ANCHORAGE  (via teleconference),  spoke  in  support of  the                                                                    
bill.                                                                                                                           
                                                                                                                                
2:46:17 PM                                                                                                                    
                                                                                                                                
STEPHANIE QUEEN,  CITY MANAGER,  CITY OF  SOLDOTNA, SOLDOTNA                                                                    
(via teleconference), spoke in support of the bill.                                                                             
                                                                                                                                
2:47:45 PM                                                                                                                    
                                                                                                                                
ROBIN   MINARD,  PUBLIC   AFFAIRS  DIRECTOR,   MATSU  HEALTH                                                                    
FOUNDATION, WASILLA  (via teleconference), spoke  in support                                                                    
of the bill.                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
                                                                                                                                
Co-Chair MacKinnon discussed the following day's agenda.                                                                        
                                                                                                                                
Senator Micciche remarked that  there were many resources to                                                                    
address and submit questions.                                                                                                   
                                                                                                                                
SB  76  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
2:50:58 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 2:50 p.m.                                                                                          
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
SB76 Explanation of Changes Ver. M to Ver. Y.pdf SFIN 4/17/2018 1:30:00 PM
SB 76
SB76 Sponsor Statement_.pdf SFIN 4/17/2018 1:30:00 PM
SB 76
SB76 Support Doc - Population Limits March 2018.pdf SFIN 4/17/2018 1:30:00 PM
SB 76
SB76 Support Doc - Proposed License Fees.pdf SFIN 4/17/2018 1:30:00 PM
SB 76
SB76 Support Doc - Proposed Licensing System.pdf SFIN 4/17/2018 1:30:00 PM
SB 76
SB76 Support Doc - Public Convenience Fact Sheet.pdf SFIN 4/17/2018 1:30:00 PM
SB 76
SB76 Sectional Analysis Ver. Y.pdf SFIN 4/17/2018 1:30:00 PM
SB 76
SB76 Letters of Support 4.13.2018.pdf SFIN 4/17/2018 1:30:00 PM
SB 76
SB76 Support Doc - Revenue Sharing.pdf SFIN 4/17/2018 1:30:00 PM
SB 76
SB 76 Letter of Support - Rasmuson CHARR.pdf SFIN 4/17/2018 1:30:00 PM
SB 76
SB 76 DCCED 04.18.2018 SB 76 SFIN Followup.pdf SFIN 4/17/2018 1:30:00 PM
SB 76
SB 76 Opposition Testimony Haines Brewing Company.pdf SFIN 4/17/2018 1:30:00 PM
SB 76