Legislature(2021 - 2022)SENATE FINANCE 532
01/20/2022 01:00 PM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB9 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 9 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
January 20, 2022
1:04 p.m.
1:04:14 PM
CALL TO ORDER
Co-Chair Bishop called the Senate Finance Committee meeting
to order at 1:04 p.m.
MEMBERS PRESENT
Senator Click Bishop, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Donny Olson (via teleconference)
Senator Natasha von Imhof
Senator Bill Wielechowski
MEMBERS ABSENT
Senator Lyman Hoffman
Senator David Wilson
ALSO PRESENT
Nils Andreassen, Executive Director, Alaska Municipal
League; Senator Peter Micciche, Sponsor.
PRESENT VIA TELECONFERENCE
Josh Hegna, Girdwood Brewing Company, Girdwood; Matt
Tomter, Owner, Matanuska Brewing Company, Palmer; Evan
Wood, Devil's Club Brewing, Juneau; Stanley Filler, Owner,
Ernie's Bar, Sitka; Cynthia Drinkwater, Owner, Cynosure
Brewing, Anchorage; George Hays, Deputy Manager, Matsu
Borough; Sherry Stead, Owner, Grace Ridge Brewing, Homer;
Darwin Biwer, Self, Owner, Darwin's Theory Bar, Girdwood;
Jason Davis, Self, Homer; Elizabeth Ripley, President and
CEO, Matsu Health Foundation, Wasilla; Glen Brady, Past
Chair of ABC Board, Past Chair of Alaska CHAR, Fairbanks;
Don Grasse, President, Alaska Beer, Wine and Spirits
Wholesalers Association President, Anchorage; Paul Thomas,
Alaska Cache Liquor, Juneau; Patrick Levy, Self, Fairbanks;
Jessica Viera, Greater Wasilla Chamber of Commerce,
Wasilla; Glenda Ledford, Mayor, City of Wasilla; Robert
Yundt, Matsu Borough Assembly Member, Wasilla; Stu Graham,
Self, Wasilla; Crystal Nygard, Deputy Administrator, City
of Wasilla; Kevin Thompson, President, Lynx Development
Group, Wasilla; Beverly Schoonover, Advisory Board on
Alcoholism and Drug Abuse, Juneau; Allison Biastock, AK
Mental Health Trust Authority, Anchorage; Jerome Hertel,
CEO, AK State Fair, Palmer; Michael Cervantes, Owner, The
Banks Alehouse, Fairbanks.
SUMMARY
SB 9 ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG
SB 9 was HEARD and HELD in committee for further
consideration.
SENATE BILL NO. 9
"An Act relating to alcoholic beverages; relating to
the regulation of manufacturers, wholesalers, and
retailers of alcoholic beverages; relating to
licenses, endorsements, and permits involving
alcoholic beverages; relating to common carrier
approval to transport or deliver alcoholic beverages;
relating to the Alcoholic Beverage Control Board;
relating to offenses involving alcoholic beverages;
amending Rule 17(h), Alaska Rules of Minor Offense
Procedure; and providing for an effective date."
1:04:58 PM
Co-Chair Bishop relayed that SB 9 was being heard by the
committee for the second time this session. He OPENED
public testimony.
1:05:46 PM
JOSH HEGNA, GIRDWOOD BREWING COMPANY, GIRDWOOD (via
teleconference), spoke in support of the bill. He relayed
that the bill was good for local tourist businesses. He
noted that his brewing company was about to celebrate its
fifth anniversary, and SB 9 would allow them to enrich
their community and hire more people.
1:06:45 PM
MATT TOMTER, OWNER, MATANUSKA BREWING COMPANY, PALMER (via
teleconference), spoke in support of the bill. He was
involved in all aspects of the alcohol businesses in the
state. He listed all the various licenses involved with his
company. He believed that the bill could simplify his
business.
1:08:35 PM
EVAN WOOD, DEVIL'S CLUB BREWING, JUNEAU (via
teleconference), testified in support of the bill. He
mentioned the many hours of work and collaboration of
stakeholders in working on the bill. He believed that
passage of the bill would be helpful for those breaking
into, and already working in, the industry.
1:09:50 PM
STANLEY FILLER, OWNER, ERNIE'S BAR, SITKA (via
teleconference), spoke in support of the bill. He explained
that bars and restaurants in Sitka had experienced hardship
due to the pandemic. He believed that the changes in the
bill would provide consistency in the industry while
streamlining processes.
1:10:42 PM
CYNTHIA DRINKWATER, OWNER, CYNOSURE BREWING, ANCHORAGE (via
teleconference), testified in support of the bill. She
thought the bill represented years of hard work by many
people from a range of diverse organizations and
businesses. She thought the bill was a critical step in
modernizing Alaskas alcohol statutes.
1:11:49 PM
GEORGE HAYS, DEPUTY MANAGER, MATSU BOROUGH (via
teleconference), testified in support of the bill. He
thanked Senator Hughes amendment to the bill that allowed
for more local control. He discussed restaurants that had
considered relocating to the Matanuska-Susitna (Mat-Su)
Borough, but could not, due to lack of liquor license
abilities. He discussed the consistent population
increases. He was concerned that economic growth was
curtailed because of outdated statutes. He urged committee
support for the legislation.
1:15:32 PM
AT EASE
1:16:16 PM
RECONVENED
SHERRY STEAD, OWNER, GRACE RIDGE BREWING, HOMER (via
teleconference), testified in support one tap room per
3,000 residents. She thought breweries were being unfairly
targeted. She discussed serving limits and limited
operating hours. She opposed the legislation as currently
written.
1:19:02 PM
NILS ANDREASSEN, EXECUTIVE DIRECTOR, ALASKA MUNICIPAL
LEAGUE, spoke in opposition to the bill. He noted that
Alaska Municipal League (AML) members had participated in
the crafting of the bill. He continued that AML members had
unanimously passed a resolution related to co-management of
the marijuana and alcohol industries. He considered the
principal of local control and thought it applied to
conversations about Title 4 and alcohol licensing. He
understood there had been a decade-long effort to move the
bill forward. He relayed appreciation for the bill sponsor
and the improvements that had been made to attempt to
consider local control and economic development.
1:22:22 PM
DARWIN BIWER, SELF, OWNER, DARWIN'S THEORY BAR, GIRDWOOD
(via teleconference), spoke in support of the bill. He had
been a bar owner for 40 years and had seen many changes to
Title 4. He was in favor of the bill as currently written.
He thought any changes could be made later as there were
critical aspects to the bill that would make Title 4
consistent with public involvement.
1:24:01 PM
JASON DAVIS, SELF, HOMER (via teleconference), testified in
support of amending SB 9 to consider craft brewing
operations. He discussed craft brewing. He thought the bill
would consider new craft brewers, but this bill did not. He
discussed the application of the bill in Homer, where the
bill would prevent the opening of another brewery or winery
without the massive expansion of the citys population. He
alleged that a vibrant brewery and winery presence enhanced
the community. He encouraged the committee to amend the
winery and craft brewery population limit.
1:26:30 PM
ELIZABETH RIPLEY, PRESIDENT AND CEO, MATSU HEALTH
FOUNDATION, WASILLA (via teleconference), spoke in support
of SB 9. She thought it was well past time to update the
state's alcohol laws. She discussed strategies to prevent
alcohol misuse and alleged that the bill would promote
responsible alcohol use by adults, reduce underage
consumption, and enforce alcohol laws.
1:28:26 PM
GLEN BRADY, PAST CHAIR OF ABC BOARD, PAST CHAIR OF ALASKA
CHAR, FAIRBANKS (via teleconference), testified in support
of the bill. He was the founder of Silver Gulch Brewing. He
had been a member of the Title 4 Working Group. He believed
the bill would establish a more stable and coherent
industry.
1:29:47 PM
DON GRASSE, PRESIDENT, ALASKA BEER, WINE AND SPIRITS
WHOLESALERS ASSOCIATION PRESIDENT, ANCHORAGE (via
teleconference), spoke in support of the bill. He noted
that the bill had been written over the last ten years with
contributions from all stakeholders.
1:30:41 PM
PAUL THOMAS, ALASKA CACHE LIQUOR, JUNEAU (via
teleconference), testified in support of the bill. He said
that Title 4 had been due an overhaul for many years. He
asserted that the bill was supported by all industry
players.
1:32:55 PM
PATRICK LEVY, SELF, FAIRBANKS (via teleconference), spoke
in opposition of the bill. He was the owner of Fairbanks
Distilling Company. He thought a state legislature should
encourage the success of businesses by not enacting laws
that impeded the distribution of their products.
1:35:11 PM
JESSICA VIERA, GREATER WASILLA CHAMBER OF COMMERCE, WASILLA
(via teleconference), spoke in opposition to the
population-based licensing threshold. She emphasized
Wasilla's support for local control. She encouraged
amending the legislation.
1:37:09 PM
GLENDA LEDFORD, MAYOR, CITY OF WASILLA (via
teleconference), spoke in opposition to the bill. She
thought Wasilla had done a great job of controlling its
destiny as a first-class city and the economic hub of the
Mat-Su borough. She asserted that SB 9 was an economic
barrier to being open for business. She lamented the
licensing population limits.
1:39:41 PM
ROBERT YUNDT, MATSU BOROUGH ASSEMBLY MEMBER, WASILLA (via
teleconference), testified in opposition of the
legislation. He advocated for increased local control.
1:41:36 PM
STU GRAHAM, SELF, WASILLA (via teleconference), testified
in support of amending the bill. He thought the bill was a
great step forward, but that the bill failed to acknowledge
the importance of local control of licenses. He asserted
that economic development happened at a local level. He
discussed attracting large restaurants and big box stores.
1:44:18 PM
CRYSTAL NYGARD, DEPUTY ADMINISTRATOR, CITY OF WASILLA (via
teleconference), spoke in support of the bill. She thanked
the sponsor of the bill. She cited that the most recent
census showed growth of almost 40 percent in Wasilla. She
relayed that Wasilla was home to 80 national chains. There
were about 2,500 businesses transacting inside and outside
city limits; 500 of which served alcohol. She noted that
Wasilla was one of the few first-class cities on the road
system and was seeing an increasing number of applications
in the hospitality center. She thought local control was
critical for economic growth.
1:47:40 PM
KEVIN THOMPSON, PRESIDENT, LYNX DEVELOPMENT GROUP, WASILLA
(via teleconference), cited pull-back from the hospitality
industry due to lack of local control for liquor licenses.
He thought Wasilla had shown responsibility with liquor
licenses.
1:48:54 PM
BEVERLY SCHOONOVER, ADVISORY BOARD ON ALCOHOLISM AND DRUG
ABUSE, JUNEAU (via teleconference), spoke in support of the
bill. She relayed the benefits of the legislation such as
reduced alcohol abuse and overconsumption.
1:50:17 PM
ALLISON BIASTOCK, AK MENTAL HEALTH TRUST AUTHORITY,
ANCHORAGE (via teleconference), testified in favor of the
bill. She relayed that some beneficiaries of the trust
included individuals that experienced the negative impacts
of alcohol abuse. She thought the bill could have positive
impacts on beneficiaries. She referenced a recent McDowell
Group report commissioned by the trust that indicated that
reduced alcohol consumption and abuse was economically
beneficial to the state.
1:52:27 PM
JEROME HERTEL, CEO, AK STATE FAIR, PALMER (via
teleconference), spoke in support of SB 9.
1:53:32 PM
MICHAEL CERVANTES, OWNER, THE BANKS ALEHOUSE, FAIRBANKS
(via teleconference), testified in support of SB 9 as it
was currently written.
1:55:52 PM
Co-Chair Bishop CLOSED public testimony.
Co-Chair Bishop asked the sponsor to approach the table for
questions.
Co-Chair Stedman wanted help understanding the population
limit of 12,000 people in communities.
1:56:36 PM
AT EASE
1:58:44 PM
RECONVENED
SENATOR PETER MICCICHE, SPONSOR, agreed to address issues
surrounding the bill.
Co-Chair Stedman asked about the population limits for
licenses in the amount of 12,000 or 3,000.
Senator Micciche characterized the bill as not a special
interest bill but rather an "every interest" bill. He
asserted that in crafting the bill not every stakeholder
was satisfied. He mentioned population limits, drink
limits, closing times, and tasting rooms. He said that the
bill was an attempt to modernize statute. He stated that
population controls were necessary and that even the
marijuana industry was beginning to request limits.
2:03:22 PM
Senator Micciche relayed that the original bill provided
significant increases in local control. He mentioned
Soldotna. He stated that the amendment in the Senate
Judiciary Committee added another license type. Another
amendment treated the Alaska State Fair as a bar, and
partners were working together to find a solution. He
stressed that the bill was supportive of local control.
2:07:00 PM
Senator Micciche disagreed with a comment that alleged that
SB 9 was barrier to local control.
2:07:40 PM
Co-Chair Bishop asked for the sponsor to comment about
changes around distributors.
Senator Micciche did not think there was significant change
around distribution. He thought that further discussion
could occur if an amendment was put forward.
Co-Chair Bishop thought there should be a conversation on
the topic.
Co-Chair Bishop set an amendment deadline of Monday,
January 24, 2022, at 5pm. He noted that SB 9 would be
brought up under Bills Previously Heard/Scheduled in the
coming week.
SB 9 was HEARD and HELD in committee for further
consideration.
ADJOURNMENT
2:10:03 PM
The meeting was adjourned at 2:10 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 9 Wholesalers Statement 012022.pdf |
SFIN 1/20/2022 1:00:00 PM |
SB 9 |
| SB 9 Mat-Su LTR to Senate Finance Committee 01-19-2022.pdf |
SFIN 1/20/2022 1:00:00 PM |
SB 9 |