Legislature(2021 - 2022)SENATE FINANCE 532
02/03/2022 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
| + | TELECONFERENCED | ||
| += | SB 9 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
February 3, 2022
1:04 p.m.
1:04:17 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 Natasha von Imhof (via teleconference)
Senator Donny Olson
Senator Bill Wielechowski
Senator David Wilson
MEMBERS ABSENT
Senator Lyman Hoffman
ALSO PRESENT
Erin Shine, Staff, Senator Click Bishop; Senator Peter
Micciche, Sponsor; Konrad Jackson, Staff, Senator Peter
Micciche.
SUMMARY
SB 9 ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG
CSSB 9(FIN) was REPORTED out of committee with two "do
pass" recommendations; two "amend" recommendations; and one
"no recommendation"; and with a new fiscal impact note from
the Alaska Judicial System; a new fiscal impact note from
the Department of Commerce, Community and Economic
Development; a new indeterminate fiscal note from the
Department of Revenue; a new zero fiscal note from the
Department of Commerce, Community and Economic Development;
and a new zero fiscal note from the Department of Health
and Social Services.
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."
1:05:33 PM
Co-Chair Stedman MOVED to ADOPT the committee substitute
for SB 9, Work Draft 32-LS0124\G (Dunmire, 1/28/22).
Co-Chair Bishop OBJECTED for discussion.
1:06:02 PM
ERIN SHINE, STAFF, SENATOR CLICK BISHOP, discussed the
Explanation of Changes (copy on file):
Section 13
Page 30, line 22 Page 32, line 20
Amends 04.09.370 from a winery direct shipment license
to a manufacturer direct shipment license. Sets
shipping limit by liters or ounces for distilled
spirits, wine, and brewed beverages per each
transaction and per calendar year.
Conforming changes are found in Sections 26 (AS
04.11.260), 28 (AS 04.11.270), 33 (AS 04.11.310), 40
(AS 04.11.330), 51 (AS 04.11.400), 62 (AS 04.11.460),
90 (AS 04.16.022), and 140 (AS 04.21.025)
Section 68
Page 79, lines 26-27
Amends AS 04.11.491(a) by adding a new subsection (H)
to allow, through a local option vote for local option
communities in municipalities, for a packaged store
license limited to selling beer and wine only.
Section 69
Page 80, lines 23-24
Amends AS 04.11.491(b) by adding a new subsection (H)
to allow, through a local option vote for local option
communities in established villages, for a packaged
store license limited to selling beer and wine only.
Section 159
Page 117, lines 16-18
Amends AS 43.30.060 from a winery direct shipment tax
to a manufacturer direct shipment tax to conform to
changes in Section 13.
Section 167
Page 119, lines 16 & 22
Changes the transition implementation date from
January 1, 2023 to January 1, 2024
Section 17
Page 124, lines 5
Changes the effective dates for Sections 168(a) and
169 from January 1, 2023 to January 1, 2024
Section 173
Page 124, line 8
Changes the effective date for Section 167 from
September 1, 2022 to September 1, 2023
Section 174
Page 124, line 10
Changes the effective date for the Act from January 1,
2023 to January 1, 2024.
1:09:24 PM
Senator Olson looked at Sections 68 and 69. He queried the
impact on the "local option use" for some of the villages
that had "voted themselves dry."
Ms. Shine replied that if a village had voted themselves
dry, there would be no change, but agreed to check with
Legislative Legal. She believed that it would provide one
more option for a local option.
Senator Olson asked for further explanation from the bill
sponsor.
1:10:43 PM
SENATOR PETER MICCICHE, SPONSOR, stated that it would not
allow for alcohol distribution for dry communities that had
not voted to allow the distribution of sales. Rather, it
only allowed for the option, if the community decided that
the distribution of alcohol would be legal.
Senator Olson noted the issue of bootlegging in some of the
villages. He wondered how the new sections would affect the
unlawful distribution of alcoholic beverages.
Senator Micciche replied that replied that one of the
primary focuses of public safety and those in recovery in
the bill, was the tracking and flow of alcohol in rural
Alaska. He stressed that new provisions may provide an
opportunity for a clearer picture of the distribution of
alcohol.
Co-Chair Bishop WITHDREW the OBJECTION. There being NO
OBJECTION, it was so ordered.
Senator Olson MOVED to ADOPT Amendment 1, Work Draft 32-
LS0124\G (Dunmire, 1/28/22) (copy on file).
Co-Chair Bishop OBJECTED for discussion.
Senator Olson explained Amendment 1. He stated that the
amendment deleted portions of the bill that would allow for
"more than one brewery retail, one winery retail, and one
distillery retail license for each 12,000 population or
fraction of that population." He remarked that there were
no communities in his district that had 12,000 people. He
did not like "monopolies", and felt that there would be an
allowance for monopolies with the provision.
1:16:27 PM
Co-Chair Stedman asked for more detail about the reference
in the bill.
KONRAD JACKSON, STAFF, SENATOR PETER MICCICHE, introduced
himself.
Senator Micciche explained that there were some alcohol
distributors who were against the bill, but also noted that
many were in support of the bill. He felt that there was an
unfair amount of pressure from traditional alcohol
industries that wanted to "put the clamps" onto breweries
and tasting rooms. He shared that there had been
conversations about how to allow competition for different
breweries and tasting rooms to allow for expansion.
1:21:40 PM
Senator Micciche continued to say that the provision would
allow for fair competition, and felt that it was counter to
what it seems to be outlining.
1:25:31 PM
Senator Olson wondered why the free market should not
decide the issue.
Senator Micciche replied that there were issues of
overconsumption and distribution, he would be in favor of
eliminating licensing caps. He explained that it would not
happen, because alcohol is not the same as other
industries.
Co-Chair Stedman asked for the definition of a "tasting
room."
Senator Micciche replied that "tasting rooms" referred to
breweries, wineries, and distilleries.
1:31:02 PM
Co-Chair Stedman surmised that tasting rooms only allowed
for a small group of people to have only three drinks
maximum.
Senator Micciche replied that there was not always a small
group, because they were competing directly with the
alcohol industry.
1:32:29 PM
AT EASE
1:33:16 PM
RECONVENED
Senator Olson WITHDREW Amendment 1.
Senator Wielechowski addressed the fiscal notes.
1:36:19 PM
AT EASE
1:36:37 PM
RECONVENED
Co-Chair Stedman MOVED to REPORT CSSB 9(FIN) with
individual recommendations and attached fiscal notes. There
being NO OBJECTION, it was so ordered.
CSSB 9(FIN) was REPORTED out of committee with two "do
pass" recommendations; two "amend" recommendations; and one
"no recommendation"; and with a new fiscal impact note from
the Alaska Judicial System; a new fiscal impact note from
the Department of Commerce, Community and Economic
Development; a new indeterminate fiscal note from the
Department of Revenue; a new zero fiscal note from the
Department of Commerce, Community and Economic Development;
and a new zero fiscal note from the Department of Health
and Social Services.
ADJOURNMENT
1:37:24 PM
The meeting was adjourned at 1:37 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 9 Explanation of Changes ver. I to G 01.27.2022.pdf |
SFIN 2/3/2022 1:00:00 PM |
SB 9 |
| SB 9 S FIN Work Draft ver. G 01.27.2022.pdf |
SFIN 2/3/2022 1:00:00 PM |
SB 9 |
| SB 9 Amendment 1 Olson.pdf |
SFIN 2/3/2022 1:00:00 PM |
SB 9 |
| SB 9 Testimony State Fair.pdf |
SFIN 2/3/2022 1:00:00 PM |
SB 9 |