Legislature(2019 - 2020)BELTZ 105 (TSBldg)
03/26/2019 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| SB44 | |
| SJR8 | |
| SB83 | |
| SB52 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 69 | TELECONFERENCED | |
| += | SJR 8 | TELECONFERENCED | |
| *+ | SB 83 | TELECONFERENCED | |
| *+ | SB 52 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 44 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
March 26, 2019
1:31 p.m.
MEMBERS PRESENT
Senator Lora Reinbold, Chair
Senator Mia Costello, Vice Chair
Senator Click Bishop
Senator Chris Birch
MEMBERS ABSENT
Senator Elvi Gray-Jackson
COMMITTEE CALENDAR
SENATE BILL NO. 44
"An Act relating to the prescription of drugs by a physician
assistant without physical examination."
- MOVED CSSB 44(L&C) OUT OF COMMITTEE
SENATE JOINT RESOLUTION NO. 8
Supporting the ratification of the United States-Mexico-Canada
Agreement on trade; encouraging the federal Administration to
remove the steel and aluminum tariffs on imports from Canada and
Mexico; and urging the United States Congress and the federal
Administration to call on Canada and Mexico to remove
retaliatory tariffs on all goods and services exported from the
United States.
- MOVED SJR 8 OUT OF COMMITTEE
SENATE BILL NO. 83
"An Act relating to the Regulatory Commission of Alaska;
relating to the public utility regulatory cost charge; relating
to the regulation of telecommunications; relating to exemptions,
charges, and rates applicable to telecommunications utilities;
relating to regulation of telephone services; and relating to
alternate operator services."
- HEARD & HELD
SENATE BILL NO. 52
"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."
- HEARD & HELD
SENATE BILL NO. 69
"An Act establishing an exception from permit and fee
requirements for certain charitable gaming activities; relating
to fees for applicants for a charitable gaming permit; amending
the definition of 'permittee'; and providing for an effective
date."
- BILL HEARING CANCELED
PREVIOUS COMMITTEE ACTION
BILL: SB 44
SHORT TITLE: TELEHEALTH: PHYSICIAN ASSISTANTS; DRUGS
SPONSOR(s): SENATOR(s) GIESSEL BY REQUEST
02/04/19 (S) READ THE FIRST TIME - REFERRALS
02/04/19 (S) L&C
03/14/19 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/14/19 (S) Heard & Held
03/14/19 (S) MINUTE(L&C)
03/26/19 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SJR 8
SHORT TITLE: U.S.-MEXICO-CANADA AGREEMENT ON TRADE
SPONSOR(s): SENATOR(s) COSTELLO
03/01/19 (S) READ THE FIRST TIME - REFERRALS
03/01/19 (S) L&C
03/21/19 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/21/19 (S) Heard & Held
03/21/19 (S) MINUTE(L&C)
03/26/19 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 83
SHORT TITLE: TELECOMMUNICATIONS REGULATION/EXEMPTIONS
SPONSOR(s): SENATOR(s) BIRCH
03/11/19 (S) READ THE FIRST TIME - REFERRALS
03/11/19 (S) L&C
03/26/19 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 52
SHORT TITLE: ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG
SPONSOR(s): SENATOR(s) MICCICHE
02/11/19 (S) READ THE FIRST TIME - REFERRALS
02/11/19 (S) L&C, JUD, FIN
03/26/19 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
SENATOR CATHY GIESSEL
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified as sponsor of SB 44.
ERIN MCLAUGHLIN, Intern
Senator Mia Costello
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented SJR 8 on behalf of the sponsor,
Senator Mia Costello.
MATT MORRISON, Chief Executive Officer
Pacific Northwest Economic Region (PNWER)
Seattle, Washington
POSITION STATEMENT: Testified during the hearing on SJR 8.
KIM SKIPPER, Staff
Senator Chris Birch
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented a sectional analysis of SB 83 on
behalf of the sponsor.
CHRISTINE OCONNER, Executive Director
Alaska Telecom Association
Anchorage, Alaska
POSITION STATEMENT: Presented a PowerPoint on telecommunications
statutes during the hearing on SB 83.
RICK HITTS, Vice-President
GCI
Anchorage, Alaska
POSITION STATEMENT: Testified during the hearing on SB 83.
EDRA MORLEDGE, Staff
Senator Peter Micciche
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented a sectional analysis of SB 52 on
behalf of Senator Micciche.
SENATOR PETER MICCICHE
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified as sponsor of SB 52.
ANNA BRAWLEY, Title 4 Project Review Coordinator;
Senior Associate
Agnew Beck Consulting
Anchorage, Alaska
POSITION STATEMENT: Answered questions during the hearing on SB
52.
ACTION NARRATIVE
1:31:04 PM
CHAIR LORA REINBOLD called the Senate Labor and Commerce
Standing Committee meeting to order at 1:31 p.m. Present at the
call to order were Senators Costello, Birch, and Chair Reinbold.
Senator Bishop arrived shortly thereafter.
SB 44-TELEHEALTH: PHYSICIAN ASSISTANTS; DRUGS
1:32:04 PM
CHAIR REINBOLD announced that the first order of business would
be SENATE BILL NO. 44, "An Act relating to the prescription of
drugs by a physician assistant without physical examination."
1:33:03 PM
SENATOR CATHY GIESSEL, Alaska State Legislature, Juneau, as
sponsor of SB 44 said that an amendment was in members' packets.
1:33:14 PM
SENATOR COSTELLO moved to adopt Amendment 1, work order 31-
LS0019\U.1, Fisher, 3/22/19, which read as follows:
AMENDMENT 1
Page 1, line 2, following "examination":
Insert "; and providing for an effective date"
Page 3, following line 13:
Insert a new bill section to read:
"* Sec. 5. This Act takes effect March 1, 2020."
SENATOR BIRCH objected for the purposes of discussion.
SENATOR COSTELLO explained that at a previous hearing on SB 44,
she had asked whether the sponsor would like to add an immediate
effective date to the bill. The ideal effective date would be
March 1, 2020, to allow time for draft regulations to comport
with the changes in the bill.
SENATOR BIRCH removed his objection.
1:34:23 PM
SENATOR GIESSEL said that she did not have any further comments.
CHAIR REINBOLD, after first determining no one wished to
testify, closed public testimony on SB 44.
1:35:06 PM
SENATOR BISHOP removed his objection.
1:35:20 PM
SENATOR COSTELLO moved to report SB 44, work order 31-LS0019\U,
as amended, from committee with individual recommendations and
attached fiscal note(s). There being no objection, CSSB 44(L&C)
was reported from the Senate Labor and Commerce Standing
Committee.
1:35:33 PM
At-ease.
SJR 8-U.S.-MEXICO-CANADA AGREEMENT ON TRADE
1:38:06 PM
CHAIR REINBOLD reconvened the meeting and announced that the
next order of business would be SENATE JOINT RESOLUTION NO. 8,
Supporting the ratification of the United States-Mexico-Canada
Agreement on trade; encouraging the federal Administration to
remove the steel and aluminum tariffs on imports from Canada and
Mexico; and urging the United States Congress and the federal
Administration to call on Canada and Mexico to remove
retaliatory tariffs on all goods and services exported from the
United States.
1:38:21 PM
ERIN MCLAUGHLIN, Intern, Senator Mia Costello, Alaska State
Legislature, Juneau, presented SJR 8 on behalf of the sponsor.
She reported that Congressman Don Young said that he did not
have an official position, but he would be listening to
Alaskans. Thus, passage of SJR 8 would inform him of Alaskans'
stance on trade, she said.
1:39:00 PM
MATT MORRISON, Chief Executive Officer, Pacific Northwest
Economic Region (PNWER), Seattle, stated that Alaska is a
founding PNWER member and has been PNWER's partner since 1991.
He said that trade and cooperation with Canada is important and
essential to Alaska especially since Alaska connects to the
Lower 48 through Canada. He said the North American Free Trade
Agreement (NAFTA) has provided an important framework for trade.
In 2017, Canada bought $700 million in exports from Alaska, he
said. The United States-Mexico-Canada Agreement (USMCA)
negotiations would provide an updated agreement for NAFTA. The
Congress needs to hear from the states that it is important to
ratify the USMCA agreement, he said.
He stated that SJR 8 seeks to accomplish two things. First, it
expresses to the Congress that ratification of the USMCA is
important. Second, it would call on the administration, Canada
and Mexico to remove the tariffs that adversely impact the
region. He reported that Section 232 tariffs on steel and
aluminum, in particular, affect Alaska. At last week's hearing,
he mentioned that U.S. Senator Lisa Murkowski estimated that the
cost of steel represented 10 - 20 percent of the cost to
construct and operate an oil field. Certainly, it would be a
major cost in pipeline construction, he said. The tariffs on
steel and aluminum could increase any pipeline construction
costs by three to five percent. For example, these increased
tariffs would cost an additional $75 million for a 280-mile
project. This could also increase the cost of the proposed
natural gas pipeline by up to $500 million, he said.
MR. MORRISON related that the second part of the resolution
requests a waiver on Canada and Mexico for the steel and
aluminum tariffs and requests those countries remove the
retaliatory tariffs on U.S. producers. He said that PNWER has
considered this agreement from many perspectives and has found
that most states are considering similar resolutions. He
reported that a resolution has passed in the Idaho Senate and
the Montana Senate. A resolution has also been introduced in
Oregon, as well. He said that PNWER believes that the USMCA will
be good for the region. He has met with members of the
Congressional delegation and delegation members were anxious to
hear from the states. He reiterated that SJR 8 seeks to
officially recognize the importance of the USMCA to Alaska.
1:43:23 PM
CHAIR REINBOLD closed public testimony on SJR 8.
1:44:12 PM
CHAIR REINBOLD asked to have the objection removed.
SENATOR BISHOP removed his objection.
1:44:24 PM
SENATOR COSTELLO moved to report SJR 8, work order 31-LS0488\A,
Version A, from committee with individual recommendations and
attached fiscal note(s). There being no objection, SJR 8 was
reported from the Senate Labor and Commerce Standing Committee.
1:44:44 PM
At-ease.
SB 83-TELECOMMUNICATIONS REGULATION/EXEMPTIONS
1:46:18 PM
CHAIR REINBOLD reconvened the meeting and announced that the
next order of business would be SENATE BILL NO. 83, "An Act
relating to the Regulatory Commission of Alaska; relating to the
public utility regulatory cost charge; relating to the
regulation of telecommunications; relating to exemptions,
charges, and rates applicable to telecommunications utilities;
relating to regulation of telephone services; and relating to
alternate operator services."
1:46:27 PM
SENATOR COSTELLO clarified that the original bill was before the
committee.
SENATOR BISHOP objected for purposes of discussion.
1:46:42 PM
SENATOR BIRCH, speaking as sponsor of SB 83, said that he
introduced a similar bill last year that did not quite make it
through the process. He paraphrased the following sponsor
statement:
SB 83 seeks to encourage investment and innovation in
the telecommunication industry by updating the
telecommunication statutes. Rapid changes in
technology and in the Federal Communications
Commission (FCC) regulations, render portions of the
existing statutes obsolete and/or inefficient in the
modern telecommunications world.
All of Alaska's telecommunications providers worked
together through the Alaska Telecom Association to
offer the suggested changes made in SB 83. The goal of
was to maintain important consumer protections,
appropriate Regulatory Commission of Alaska (RCA)
jurisdiction, and consistency with FCC regulations
while at the same time allowing for greater
flexibility to more rapidly take advantage of new
technology.
Some existing RCA regulations are over 25 years old
and focused on landline and traditional long-distance
service. As customers continue to prefer broadband and
mobile services and the demand for landline services
decreases, the outdated regulations are largely
obsolete. Carrier of last resort regulations
needlessly duplicate existing statutory requirements
and alternative operator services are no longer used.
SB83 places service providers on a more level playing
field and will encourage deployment of advanced
technologies and more efficient network design.
SB 83 creates new protections in statute for rural
areas by requiring landline and long-distance rates,
terms and conditions be the same as in larger towns.
SB 83 requires that the Regulatory Cost Charge (RCC)
be assessed and submitted to the RCA by all
telecommunication utilities. Currently the RCC is not
being paid by utilities that are municipally owned or
are cooperatives. All members of the Alaska Telecom
Association support this change. I would appreciate
your support for SB 83.
1:49:01 PM
KIM SKIPPER, Staff, Senator Chris Birch, Alaska State
Legislature, Juneau, read the sectional analysis for SB 83.
Section 1 Municipal powers and duties. AS
29.35.070(a) This section is amended to maintain
existing exclusion from municipal regulation for
telecommunications companies which are exempted under
new subsection AS 42.05.711(u). (Section 8 below).
Section 2 Alaska Public Utilities Regulatory Act. AS
42.05.141 Adds two new subsections (e) and (f) to the
general powers and duties of the RCA. These
subsections state that the Commission may not
designate a local exchange carrier or an interexchange
carrier as the carrier of last resort, and that the
Commission may designate an eligible
telecommunications carrier consistent with the federal
law that allows for federal subsidies under the
federal Universal Service Fund.
A carrier of last resort is a telecommunications
company that commits (or is required by existing
regulation) to provide service to any customer in a
service area that requests it, even if serving that
customer would not be economically viable at
prevailing rates. There are other protections in this
legislation (Section 7), remaining Alaska statutes and
federal law to ensure rural Alaska continues to
receive telecommunications service.
The federal Universal Service Fund is managed by the
Federal Communications Commission and is intended to
promote universal access to telecommunications
services at reasonable and affordable rates for all
consumers.
1:51:02 PM
MS. SKIPPER read Sections 3 and 4.
Section 3 and 4 Regulatory Cost Charge (RCC). This
section applies the regulatory cost charge to all
certificated telecommunications provider expanding the
assessment base for the charge.
1:51:25 PM
MS. SKIPPER read Sections 5-8.
Section 5 Exempt Utility. AS 42.05.254(i)(2) This
section amends the definition of exempt utility to
apply the Regulatory Cost Charge across all
certificated telecommunications providers.
Section 6 Tariff Filings AS 42.05.361. This section
prohibits the Commission from requiring tariff filings
from telecommunications carriers except by providers
of telecommunications service to prison inmates.
Tariff filings in the competitive telecommunications
industry are outdated, unnecessary and impede the
ability of carriers to respond to what the customer
wants and needs.
Section 7 Rates AS 42.05.381. This section adds new
subsections which require rates, terms, and conditions
of service to be uniform across defined service areas
and the definition of "local exchange carrier" and
"long distance telephone" have the same meaning set
forth in AS 42.05.890.
Section 8 - Exemptions from Alaska Public Utilities
Regulatory Act AS 42.05.711. This section adds new
subsections (u) and (v) which together exempt
telecommunication carriers from the Act except for the
following provisions which will continue to apply:
? AS 42.05.141(e) and (f) New sections in the bill
(Section 2 above)
? AS 42.05.221 Requiring a Certificate of Public
Convenience and Necessity
? AS 42.05.231 Provision for applying for a
Certificate of Public Convenience and Necessity
? AS 42.05.241 Conditions of issuing/denial of a
Certificate of Public Convenience and Necessity
? AS 42.05.251 Allow public utilities to obtain a
permit for use of streets in municipalities.
? AS 42.05.254 Regulatory cost charge
? AS 42.05.261 Prohibits a public utility from
discontinuing or abandoning service for which a
certificate has been issued
? AS 42.05.271 Allows the Regulatory Commission of
Alaska to amend, modify, suspend, or revoke a
certificate
? AS 42.05.281 Prohibiting a sale, lease, transfer,
or inheritance of a Certificate of Public Convenience
and Necessity without RCA permission
? AS 42.05.296 Requirements for providing telephone
services for certain impaired subscribers
1:54:20 PM
MS. SKIPPER read Sections 5-8.
AS 42.05.306 Allows discounted rates for customers
receiving benefits from a social services assistance
program administered by the state or federal
government
? AS 42.05.381(l) (n) New sections requiring
uniform rates, terms, and conditions (Section 7 above)
AS 42.05.631 Allows a public utility to exercise
the power of eminent domain
? AS 42.05.641 Extends the Regulatory Commission of
Alaska's jurisdiction to public utilities operating in
a municipality
? AS 42.05.661 Requires entities to pay a fee to the
Regulatory Commission of Alaska when applying for a
Certificate of Public Convenience and Necessity
AS 42.05.820 Municipalities may not regulate
landline providers
? AS 42.05.830 Requires the Regulatory Commission of
Alaska to establish exchange access charges to be paid
by long distance carriers to compensate local exchange
carriers for the cost of originating and terminating
long distance services
? AS 42.05.840 Allows the Regulatory Commission of
Alaska to establish a universal service fund
? AS 42.05.850 Requires local exchange carriers to
form an association to administer access charges
? AS 42.05.860 Prohibits a carrier from restricting
the resale of telecommunications services
1:55:48 PM
MS. SKIPPER read Sections 9 - 12.
Section 9 Municipal Regulation AS 42.05.820. This
section amends AS 42.05.820 to exclude local exchange
carriers which are exempted in whole or in part from
this chapter from being 3 regulated by a municipality.
Section 10 Calculation of Regulatory Cost Charge AS
42.06.286(e). This section is amended to clarify that
all telecommunications providers will continue to be
assessed the Regulatory Cost Charge (RCC).
Section 11 and 12 Alternate Operator Service AS
45.50.473(a). This section is amended to add the
definition of alternate operator service from the
statute that is being repealed in Section 13 (AS
42.05.325)
1:56:38 PM
MS. SKIPPER read Section 13.
Section 13 Repealers. This section repeals the
following provisions:
? AS 42.05.325 Registration and regulation of
alternate operator services. Required providers of
alternate operator services to be registered with and
regulated by the Regulatory Commission of Alaska.
Alternate operator service is obsolete and regulatory
oversight is no longer relevant.
? AS 42.05.810 Long Distance Competition. This
section required the RCA to adopt regulations by
February 1991 to open-up the long-distance market to
competition. The long-distance market has been open to
competition since 1991 and it is a fraction of its
earlier size and continues to shrink as consumers
migrate to alternative services. It is no longer
necessary to require the Commission to open-up the
long-distance market to competition.
1:57:41 PM
CHRISTINE OCONNER, Executive Director, Alaska Telecom
Association, Anchorage, recognized part of the team with her
today, including members from the Alaska Communications, AT&T,
and GCI who could answer questions.
MS. OCONNOR said that SB 83 was solely related to landline
service, including local service and long distance. Modern
telecommunication networks provide an array of advanced
services. She reviewed slide 2, "Unanimous Support." Slide two
listed Alaska Telecom Association members.
Adak Eagle Enterprises, Alaska Communications, Alaska
Telephone Company, Arctic Slope Telephone Association,
Cooperative ASTAC Wireless AT&T, Bettles Telephone,
Bristol Bay Cellular Partnership, Bristol Bay
Telephone Cooperative, Bush-Tell, Copper Valley
Telephone Cooperative, Copper Valley Wireless, Cordova
Telephone Cooperative, Cordova Wireless, GCI, Interior
Telephone, Mukluk Telephone, Ketchikan Public
Utilities, Matanuska Telephone Association, North
Country Telephone, Nushagak Cooperative, OTZ Telephone
Cooperative, OTZ Wireless, Summit Telephone Company,
TelAlaska Cellular, United Utilities, Windy City
Wireless, and Yukon Telephone Company.
She said that these companies are the landline, long distance,
wireless, and broadband companies that serve Alaska, ranging
from small local telephone companies to the statewide providers.
These companies have all agreed that many of Alaska's telecom
statutes were obsolete, imposing unnecessary regulatory burdens
on companies and regulators that do not benefit anyone.
1:59:04 PM
MS. OCONNER reviewed slide 3, "Transformation."
• Telecommunications has transformed since many of
Alaska's telecom statutes were adopted in 1970s.
• The federal 1996 Telecom Act transformed the
marketplace and started an evolution toward light-
touch oversight.
• Landline and long-distance use are dramatically
reduced.
• Long distance revenues reduced from $64M to $13M
between 2006-2018.
• 48% of Alaska households have a landline, 4% are
landline only.
• Landline and long-distance services continue.
MS. OCONNOR said that despite the shift to other technologies,
many of the same regulations have remained in place. Tariff
filing requirements use scarce funds that could be better used
to serve customers. These requirements also divert resources
from the regulators that could be better used on other matters.
MS. OCONNOR reviewed slide 4, which showed a color-coded map of
the U.S. She said that 41 states have reduced or eliminated all
telecom regulation. Although the details were varied, these
changes generally allow telephone companies to manage their own
rates. Updating Alaska's statutes would allow Alaska's companies
to take advantage of some of the flexibility that most other
states already experience, while still maintaining regulators'
important role of overseeing provider fitness and the
continuance of landline service.
2:00:34 PM
MS. OCONNOR reviewed slide 5, "AS 42.05 Alaska Public Utilities
Regulatory Act."
? Sections retained
Certificate of Public Convenience & Necessity
Fitness of a provider to serve
Requirement to continue service
?Transfer of certificates
?Enforcement of obligations
?Regulatory Cost Charge (amended)
?Telecommunications Relay Service
?Lifeline
?Interconnection
?Eminent Domain
?Access charges
?Alaska Exchange Carriers Association
?Alaska Universal Service Fund
She said that SB 83 was structured to exempt telecommunication
companies from rate regulation under AS 42.05. She reviewed the
sections retained. Statutes in AS 42.05 that generally apply to
the commission and are not specific to telecommunications would
still be in effect, including requirements for public records,
and the RCA's authority to enforce the statutes that apply to
general and housekeeping provisions.
2:01:21 PM
MS. OCONNOR reviewed slide 6, "Changes to AS 42.05."
• Rate regulation and tariff management adopt
cooperative model, protections for consumers remain.
• Rates are limited by federal rules
• Rates across defined service areas are the same
• Eligible Telecommunications Carriers ("ETC")
designation explicitly authorized by the Regulatory
Commission of Alaska.
• COLR designations for ILECs and IXCs eliminated
• Certificate of Public Convenience and Necessity
oversight remains
• ETC designation and oversight remains
• Federal USF/ETC obligations to continue service
remain
• New AS 42.05.381(l) protects rural service
• Regulatory Cost Charge
She explained that federal caps and local limits would remain in
place and new provisions would be added to require that rates
across service areas must be the same. Carrier of last resort
(COLR) designations for landline and long-distance companies
would be eliminated. Important protections would remain to
ensure that rural areas continue to have landline and long-
distance services. The certificate (CPCN) authority requires the
RCA to approve both the entry and exit of a provider from a
location, she said.
MS. OCONNOR said that the RCA would oversee those eligible
telecommunications carrier designations or ETC, including annual
reports and certifications to the proper use of funds. Federal
rules prevent discontinuance of landline and long-distance
service without approval by the Federal Communications
Commission (FCC). Federal universal service fund rules also
require that providers must provide service upon receipt of a
reasonable request. A new section in the bill would require
providers to provide the same rates, terms, and conditions to
everyone in the service area, which is how Alaska Telecom
Association currently operates. SB 83 would put those practices
into statute, she said. The regulatory cost charge provides the
funding mechanism for the RCA, which is self-funded, she said.
As industry has changed over time, it has become distorted and
inequitable, so SB 83 would fix that mechanism.
2:03:18 PM
CHAIR REINBOLD asked for further clarification on the regulatory
cost charge adjustment.
MS. OCONNER explained that the regulatory cost charges were
covered in statute in some detail. The time spent on activities
at the regulatory commission was calculated and converted into a
percentage. Telephone companies pass on these small charges to
consumers. The statute also states that cooperatives that have
voted to economically deregulate cannot participate in that
mechanism. This meant that charges cannot be placed on their
bills. However, it also meant that the remaining companies were
the only ones assessing these charges. SB 83 would change the
language to state that everyone would be assessed the charge
since the telecom activity was generated by the RCA and these
charges should apply to all users.
2:04:34 PM
MS. OCONNOR reviewed slide 7, "Rate Protections."
• Federal rules limit local landline rates
• New subsection AS 42.05.381(l) requires rates,
terms, and conditions of service to be the same
across defined service areas
• Federal Lifeline program supports low-income
subscribers
Currently federal rules limit local landline rates, which are
certified each year. The federal lifeline program allows low-
income subscribers to receive landlines at a very low cost, she
said.
2:05:15 PM
CHAIR REINBOLD asked whether these changes would affect current
landline households in cities in Alaska. She said she has
landline services and does not want them to be disrupted.
MS. OCONNER answered that the landline network is a robust
system that is especially helpful during emergencies. She
affirmed that these change would not affect the availability of
landlines. It would add a new layer of certainty going forward
to assure that landline service would always be available.
2:05:56 PM
SENATOR BISHOP said the rate protections seem to level the
playing field and close any loopholes for overcharging.
MS. OCONNER agreed that leveling the playing field was one of
the biggest benefits of the bill.
MS. OCONNER reviewed slide 8, "Rate Regulation It Depends Who
You Are."
• Cooperatives, with the approval of their members, and
municipal telcoms manage their own tariffs. All other
companies must maintain one or multiple tariffs at the
RCA.
• For other companies review and approval for rate
changes varies, with timelines as long as 420 days.
• This limits the introduction of new offerings due to
the expense of preparing and supporting tariff
filings.
• SB 83 allows all providers to manage their own rates
without costly regulatory filings.
She explained that companies set their rates in varying ways.
The cooperatives manage their own rates, so if customers wish to
buy services they can do so. However, it could take up to 420
days for other companies to change their rates and products.
This change would move everyone to the cooperative model, which
has been successful for many years, but it would still retain
limits on landline rates per the federal rule that would not be
changed.
MS. OCONNER summarized that this bill seeks to put everyone on
the same basis.
2:07:22 PM
MS. OCONNER reviewed slide 9," Burden of Rate Regulation."
• Alaska Communications
• "We have 4 local exchange tariffs with a mixture
of tariff rules that apply?Each time we make a
tariff change we must do basically 5 times for
the local exchange since one study area has
different rules to follow. We also have a long-
distance tariff which has even different rules.
When filing 5 different tariffs plus a long-
distance tariff, it simply is not an efficient
business practice especially when these
regulations do not apply across all other
carriers."
- Lisa Phillips, Senior Manager, Regulatory Affairs
and Risk Management
She said that Alaska Communications is one of the largest
companies in Alaska, serving dozens of remote villages as well
as Alaska's urban centers. Alaska Communications must manage
2,500 pages of tariffs, rarely accessed by the public. The
statutes are outdated, and rate regulation consumes resources
that could be better spent serving customers.
2:08:00 PM
MS. OCONNER reviewed slide 10, "Eligible Telecommunications
Carrier (ETC)."
• ETC designation qualifies a telecommunications
provider to participate in federal Universal
Service Fund programs.
• Each program requires specific performance and
accountability.
• The Regulatory Commission of Alaska provides
annual certification to the Federal
Communications Commission.
• New subsection AS 42.05.141(f) makes explicit the
RCA's authority to designate a provider an ETC.
She explained that "ETC" [Eligible Telecommunications Carrier]
would remain unchanged. This designation provides the RCA with
an oversight role to provide consumer protection. For example,
companies must report to the RCA on their ETC status. The RCA
designates ETCs, which qualifies companies to receive federal
funding. She said that SB 83 would make the authority to oversee
the ETC process explicit for the RCA.
2:08:37 PM
MS. OCONNER reviewed slide 11, "Carrier of Last Resort
Designation (COLR)."
• COLR regulations implemented in 2010
•
• Explicit funding for COLR duties ended Jan. 1,
2019
• COLR is redundant to state statutes and federal
rules
• Certificate of Public Convenience and Necessity
oversight remains
• Eligible Telecommunications Carrier designation
and oversight remains
• Federal obligations to continue service remain
• New AS 42.05.381(l) requires uniform rates, terms
and conditions
She explained that landline Carrier of Last Resort (COLR)
regulations were implemented in 2010. They were intended to
ensure that landline service remains in an area by offering
financial support to one provider per service area. That
explicit financial support was removed in January 2019. Now the
COLR regulations still remain as a duplicate layer of regulation
that injects regulatory uncertainty into telecommunications,
which SB 83 would eliminate. However, the obligations would
remain since long standing federal and state protections exist.
She read the bullet points, including comments that the RCA has
relied on the power of the certificate authority defined in
statute. This certificate has been effective in requiring
companies to serve in certain locations, she said.
2:10:25 PM
MS. OCONNER reviewed slide 12, "Regulatory Cost Charge."
• Funding for telecommunications-related activity at the
RCA is inequitable
• Cooperative members have elected economic
deregulation, resulting in exclusion from RCC statutes
• SB 83 restores fair assessment by applying RCC
statutes to all telecommunications providers
She said that the regulatory cost charge has become distorted by
the statutory age and the changes in the marketplace. She said
that SB 83 would fix the inequity by including all certificated
telecommunication providers in that mechanism. This has been
unanimously supported by the industry, even by the cooperatives
since they recognize it as a matter of fairness.
2:10:53 PM
MS. OCONNER reviewed slide 13, "Consumer Protection."
• Strong consumer protections today
• Certificate of Public Convenience and Necessity
• (CPCN)
• Eligible Telecommunications Carrier (ETC)
• New 42.05.381(l) rate protection
• Regulatory Affairs and Public Advocacy (RAPA)
• Attorney General Consumer Protection Unit
• FCC Consumer Complaint Center
• SB 83 maintains these protection
She said that when someone files a complaint with the FCC, a
company must respond within a defined time period.
2:11:25 PM
MS. OCONNER reviewed slide 14, "Benefits to Consumers."
• Mandates rates in remote areas match rates in larger areas
• Allows companies to respond more quickly to consumer
preferences
• Focuses resources on consumer services
• Corrects existing distorted assessment of regulatory cost
charge
She said that this bill would remove regulatory delay and the
cost of providing new service. It also provides companies with
the same ability across the playing field to respond to consumer
needs.
2:11:50 PM
MS. OCONNER reviewed slide 15, "SB 83 in Summary."
• Updates statutes and streamlines regulations which
only apply to landline-accessed services both local
and long distance
• Exempts from many obsolete statutes
• Reduces cost and delay of regulation
• Maintains oversight of providers and continuance of
service
She said that the Federal 1996 Telecom Act changed
telecommunications, putting everyone on a path toward
competition, innovation, and light-touch regulation instead of a
traditional monopoly-style regulation. She related that 41 other
states have recognized this transformation and the Alaska
Telecom Association proposes that Alaska do the same and tailor
its statutes to ensure that service continues, but to stop
wasting resources on work that is without value, she said. Since
last year, ATA has held multiple discussions with the RCA about
this proposal. It has participated in multiple public meetings
and through those discussions have modified the bill. She
reported that in February 2019, the Regulatory Commission of
Alaska (RCA) voted to support SB 83.
2:14:10 PM
SENATOR COSTELLO reminded members that the legislature
previously heard this bill. She asked whether there was any
opposition to the bill.
MS. OCONNER answered no.
2:14:46 PM
CHAIR REINBOLD opened public testimony on SB 83.
2:15:53 PM
RICK HITTS, Vice-President, GCI, Anchorage, said that he has
worked in telecommunications in Alaska for over 33 years. He
said he is familiar with the statutes and regulations. He
expressed gratitude that the committee would encourage this type
of legislation, especially since it was overdue. The entire
industry is in support of SB 83, he said. Further, the
Regulatory Commission of Alaska (RCA) voted 4-1 to support the
bill. In addition, this bill is consistent with the governor's
goal to reduce unnecessary regulation. He offered his belief
that government was becoming more efficient, with a more
productive industry, and most importantly that better service
would be provided to the end user. SB 83 contains safeguards to
protect places where competition was not as robust, such as in
rural areas. He encouraged members to pass the bill.
2:17:34 PM
CHAIR REINBOLD suggested that this bill provided deregulation.
MR. HITTS agreed it was deregulation but that it retains
necessary regulation.
[SB 83 was held in committee.]
2:18:31 PM
At-ease.
SB 52-ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG
2:30:54 PM
CHAIR REINBOLD reconvened the meeting. She announced that the
next order of business would be SENATE BILL NO. 52, "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."
2:31:05 PM
SENATOR COSTELLO clarified the original bill was before the
committee. Senator Bishop objected for purposes of discussion.
2:31:31 PM
EDRA MORLEDGE, Staff, Senator Peter Micciche, Alaska State
Legislature, Juneau, paraphrased from the sponsor statement,
which read as follows:
SB 52 modernizes the Title 4 statutes governing the
Alcoholic Beverage Control Board (board). The bill
allows the board to function more efficiently as they
regulate the alcohol industry in a manner that
promotes public safety and health, while supporting
the alcohol industry's continued growth and viability
in today's current climate. This bill is the product
of a seven-year, unprecedented collaboration of over
100 stakeholders from a diverse group of alcohol
industry representatives, public health and safety
entities, local governments and advocates for youth.
Stakeholders established shared goals as the
foundation for developing recommendations:
? Promoting a fair business climate and protect public
health and safety. ? Creating rational regulation for
all tiers of the state's alcohol industry.
? Limiting youth access to alcohol.
? Promoting responsible alcohol use and reduce the
harms of overconsumption.
? Implementing without negative impacts on businesses
and responsible operators. The result is a
reorganization that clearly defines the rights and
obligations of licensees, restructures penalties for
offenses in Title 4, and organizes the statutes in a
logical, common-sense manner for all users of Title 4
statutes.
The bill requires that the director prepare an annual
enforcement, education, training, and prevention
budget and requires the Board to review fees every 10
years. Penalty sections are amended to ensure
consistent enforcement and just outcomes. New
statutory provisions retain the three-tier licensing
system but create more flexibility for small
manufacturers; create a new endorsement system to
expand the boundaries of licensed businesses and
accommodate special events; and modify the permitting
system for clarity. The bill also creates local
control in community population limits, adds
mechanisms to prevent underage access to alcohol,
regulates common carriers who deliver alcohol and
provides for a smooth transitional implementation
period.
2:33:19 PM
MS. MORLEDGE said one of the main goals is to restructure
licensing to make the current licensing clearer and to place
regulatory provisions in statute. The permitting process would
remain in regulation, she said. She said the goal is to
streamline the process, place it under one title and make
regulation easy for the board and industry members. She said
that the goals included promoting a fair business climate,
protecting public health and safety, limiting youth access to
alcohol, promoting responsible alcohol use, reducing the harms
of overconsumption, and implementing change without negatively
harming existing businesses and responsible operators. The other
main goal is to make Title 04 as clear and consistent as
possible for the board, licensees, and law enforcement, she
said.
2:34:43 PM
MS. MORLEDGE explained the key concepts in Title 04 were the
three-tier system, including separating manufacturers,
wholesalers, and retailers to prevent monopolies. Second, it
would restructure and reorganize the licensing system to include
the clearly defined categories. Finally, it would address
population limits, which regulates the number of licenses
available in each community by type. One of the issues raised
has been the length of the bill. She explained that this was
necessary because changes affect many different sections.
2:35:25 PM
SENATOR PETER MICCICHE, Alaska State Legislature, Juneau, spoke
as sponsor of SB 52. He stated that he has worked on a rewrite
of the alcohol beverage control statutes for at least five
years.
2:36:15 PM
SENATOR BIRCH asked whether this was substantially the same as
last year's bill or if there were any substantive changes.
SENATOR MICCICHE answered that it was essentially the same bill
that passed last year, with a few minor changes. The stakeholder
groups met during the interim and some minor changes were made
at their request.
2:37:31 PM
SENATOR MICCICHE explained his interest in the rewrite. As a
legislator, he was initially surprised at the number of bills
that come before the legislature related to alcohol. Then he
discovered that the statutes were outdated, in part, because the
industry has dramatically changed in the last 30 years. He said
the he reviewed the public health and safety issues, including
overserving, serving minors, and the quality of operators. He
said that he realized that these issues were intertwined. He
pulled together a group of stakeholders to address things that
did not make sense. He highlighted that the goals were to
support this industry since it is an important one to the state,
but still obtain the best results for public health and public
safety. He said that SB 52 was the result of this work. He has
observed the interaction between industry and the [Alcoholic
Beverage Control Board (ABC Board). He said that sometimes
people are upset with them when they follow the law, but also
when they do not. This bill would clarify the law, so everyone
would understand expectations for operators. He offered his
belief that this bill would promote a fair business climate,
limit youth access to alcohol, promote responsible alcohol use,
and reduce the harms of overconsumption. He said that this bill
would implement these changes without negatively impacting
existing businesses and responsible operators.
2:39:43 PM
SENATOR MICCICHE said that the legislature has been focused on
the opioid epidemic. However, alcohol still represented about 95
percent of the substance abuse problem in Alaska. He said that
many things that have affected public health and safety in
Alaska for generations, including suicide, sexual abuse, and
domestic violence were all tied to alcohol abuse. He said that
this bill would take it all into account and redistribute the
statutes to make sense. It would add licensing and endorsements
to reflect today's operations and provide a comprehensive
approach that resets how alcohol is managed in Alaska.
2:41:26 PM
MS. MORLEDGE said that pages 1-5 of the summary relate to
chapter 6 of Title 4, the Alcoholic Beverage Control Board.
Chapter 6: Alcoholic Beverage Control Board
Section 1: Declaration of Policy; purpose; finding.
Adds a new section AS 04.06.005 (Pages 1-2.
2:41:57 PM
MS. MORLEDGE read Section 2.
Section 2: Authority of director. Adds a new
subsection AS 04.06.075 to require that the director
of the Alcoholic Beverage Control board (ABC board)
shall include in the agency's budget resources for
administration, enforcement, education, training, and
prevention activities under Title 4. (Page 2)
2:42:16 PM
MS. MORLEDGE referred to the color coded the document; green
referred to new concepts, yellow highlighting showed provisions
that were relocated, and magenta referred to the penalty
provisions.
2:43:01 PM
SENATOR BISHOP complimented staff because this made it easy to
follow.
2:43:42 PM
MS. MORLEDGE read Sections 3 and 4.
Section 3: Delegation of Authority. Amends AS
04.06.080 to add endorsements to the delegated powers
of the director of the ABC board. (Page 2)
Section 4: Powers and duties. Amends AS 04.06.090(b)
to relocate existing language in 04.11.070 and adds
endorsements to the powers of the ABC board. (Page 2)
2:44:05 PM
MS. MORLEDGE reviewed Section 5.
Section 5: Powers and duties. Amends AS 04.06.090(e)
to add endorsements. This section requires the board
to notify all licensees and municipalities of major
changes to Title 4. (Page 2)
She said that the yellow highlighting relates to existing law.
2:44:21 PM
SENATOR COSTELLO acknowledged that this document was
highlighted. She suggested that the committee skip the yellow
highlighted provisions and spend more time on the new concepts
that were highlighted in green and the penalty provisions
highlighted in magenta.
CHAIR REINBOLD agreed.
2:45:22 PM
MS. MORLEDGE read Section 10, "Proposed Chapter 9, Endorsements
and Permits."
Proposed Chapter 9: Licenses, Endorsements and Permits
Section 10: Adds the new Chapter 09 to Title 4
Licenses, Endorsements and Permits. Relocates many
existing licenses and permits from Chapter 11,
organizes into articles of licenses, endorsements and
permits. (Pages 5-50).
2:45:36 PM
MS. MORLEDGE referred to page 3 of the sectional analysis [shown
in magenta].
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
sets the penalty. (Page 11)
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 and
sets the penalty. (Pages 11-12)
2:46:21 PM
MS. MORLEDGE reviewed page 4, [shown in yellow] that reorganizes
existing retail licenses.
2:46:39 PM
At-ease.
2:47:24 PM
CHAIR REINBOLD reconvened the meeting.
MS. MORLEDGE reverted to page 2, to "New Chapter 9: Licenses,
Endorsements and Permits." She explained that this entire
section pertained to "Article 1, License Types and Article 2,
Manufacturer Licenses," including brewery, winery, and
distillery manufacturer licenses. These provisions refer to
existing licenses, which were put into the new article.
2:47:56 PM
MS. MORLEDGE read AS 04.09.050.
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 and not hold retail licenses. (Pages 6-7)
MS. MORLEDGE referred to page 3 of the sectional analysis, which
relocated the existing penalties in AS 04.09.060 and AS
04.09.070. She read the new penalty provision in AS 04.09.080.
AS 04.09.060. Unlicensed manufacturing. Relocates the
existing penalty for unlicensed manufacture from
04.11.010. (Page 7)
AS 04.09.070. Unlicensed manufacturing in a local
option area. Relocates the existing penalty for
unlicensed manufacture in a local option area from
04.11.010. (Pages 7-8)
AS 04.09.080. Unauthorized manufacturer sale. Defines
unauthorized manufacturer sale as violating 04.09.050
and sets the penalty. (Page 8)
SENATOR MICCICHE suggested she review the new penalty
provisions.
2:49:20 PM
MS. MORLEDGE read AS 04.09.150 and AS 04.09.160 [shown in
magenta].
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
sets the penalty. (Page 11)
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 and
sets the penalty. (Pages 11-12)
2:49:40 PM
MS. MORLEDGE referred to page 4, "Article 4. Retail Licensees,"
[shown in yellow] were provisions being relocated and
reorganized. In response to Chair Reinbold, she explained the
reason to reorganize was because some licenses exist in other
areas of the state statutes. She said the sponsor seeks to have
all of the licenses relocated to AS 04.09.
MS. MORLEDGE reviewed page 5 of the sectional analysis to the
provisions [shown in green] related to brewery, winery, and
distillery licenses.
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, requires retail license to be adjacent
to manufacturing location, and sets penalty for
failure to comply with license terms. (Pages 21-22)
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, requires retail license to be adjacent
to 5 manufacturing location, defines sales volume
limits for cider and mead depending on alcohol
content, and sets penalty for failure to comply with
license terms. (Pages 22-23)
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, requires retail license to be
adjacent to manufacturing location, and sets penalty
for failure to comply with license terms. (Pages 23-
24)
2:51:16 PM
MS. MORLEDGE reviewed AS 04.09.350 and AS 04.09.360 [shown in
green], which were new provisions.
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, sets out formula
for determining number of allowed licenses per
community, and sets penalty for failure to comply with
license terms. (Pages 26-27)
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, prohibits sales by this
license type to local option areas, and sets penalty
for failure to comply with license terms. (Pages 27-
29)
2:51:51 PM
SENATOR MICCICHE explained the brewery, winery, and distillery
references on this slide were incorrect and would be updated.
2:52:16 PM
MS. MORLEDGE reviewed "Article 5. Endorsements," on page 6 of
the sectional analysis [shown in green]. She said that these
provisions would allow for manufacturer licenses to obtain
varying endorsements for activities occurring on their licensed
premises. As an example, she referred to the manufacturer
sampling endorsement under as 04.09.410.
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. (Pages 30-31)
She explained that breweries currently provide tasting samples.
This provision would create a new endorsement for onsite
sampling.
2:53:11 PM
MS. MORLEDGE reviewed AS 04.09.420.
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 of $1,250 per counter, sets
penalties for endorsement noncompliance and unendorsed
service. (Pages 31-32)
She said that a bar with several rooms would get an endorsement
under one license rather than obtaining a duplicate license for
each of the rooms.
2:53:30 PM
MS. MORLEDGE reviewed AS 04.09.420.
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 of $1,250 per counter, sets
penalties for endorsement noncompliance and unendorsed
service. (Pages 31-32)
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. (Pages 32-33
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. (Pages 33-35)
2:53:53 PM
SENATOR BISHOP asked if the definition of a large resort was for
a 100-room occupancy.
2:54:58 PM
ANNA BRAWLEY, Title 4 Project Review Coordinator; Senior
Associate, Agnew Beck Consulting, Anchorage, answered that a
large resort would be a place that offers outdoor recreational
activities and overnight lodging for guests. It would also have
at least 10 contiguous acres. She said that it could be one big
property or parcel.
2:55:22 PM
SENATOR BISHOP asked whether 10 acres was the key.
MS. BRAWLEY answered that the language would require overnight
lodging, but it did not require a specific number of rooms.
2:55:39 PM
MS. MORLEDGE suggested that the presentation at the next hearing
would help to clarify some things.
2:56:04 PM
MS. MORLEDGE reviewed AS 04.09.450 [shown in green and yellow].
AS 04.09.450. Restaurant endorsement. Creates new
endorsement using language from the Restaurant
Designation Permit currently in regulation, defines
which license types may qualify for the endorsement,
sets biennial fee at $200, defines situations in which
minors may be present on licensed premises for
employment or dining, and sets penalties for
unendorsed restaurant service and endorsement
noncompliance. (Pages 35-36)
She said that some provisions were being redefined under a
separate endorsement.
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, maintains requirement to
enter orders to customers in local option areas in
written order database, and sets penalties for
unendorsed package store shipping and endorsement
noncompliance. (Pages 36-38)
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. (Page 38)
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. (Page 39)
2:56:56 PM
MS. MORLEDGE turned to page 7 of the sectional analysis.
She referred to AS 04.09.490. Package store sampling endorsement
[shown in green].
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. (Pages 39-40)
She reviewed the next three provision [shown in green and
yellow].
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.
(Pages 40-41)
AS 04.09.510. Golf course endorsement. Creates new
endorsement using language from AS 04.11.115, allows a
beverage dispensary to serve alcoholic beverages on
its course, sets biennial fee at $200, and sets
penalties for unendorsed golf course service and
endorsement noncompliance. (Pages 41-42)
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 as of the bill's effective date,
sets biennial fee at $200, sets penalties for
unendorsed brewery repackaging and endorsement
noncompliance. (Pages 42-43)
2:57:13 PM
MS. MORLEDGE reviewed "Article 6. Permits" [shown in yellow],
which were consolidated in the same place, she said.
She directed attention to AS 04.09.670 [shown in green] on page
8.
AS 04.09.670. Tasting event permit. Creates new
permit, allows a package store to host a tasting event
on the package store's licensed premises, and service
from its product inventory, sets a time limit and food
requirement, and limits to six events per license per
year. (Pages 47-48)
MS. MORLEDGE said that this would allow a package store to host
a tasting event on premise.
She reviewed AS 04.09.700 [shown in magenta].
AS 04.09.700. Failure to comply with a permit
requirement. Sets the penalties for failure to comply
with permit requirements. (Pages 48-49) setting
penalties for requirements
MS. MORLEDGE reviewed "Article 7. Common Carrier Approval"
[shown in green].
AS 04.09.750. Common carrier approval. Requires the
board to approve a common carrier to transport and
deliver alcoholic beverages to persons within the
state in response to a consumer's order and sets
requirements and penalties for common carriers. (Pages
49-50)
2:58:30 PM
MS. MORLEDGE reviewed "Chapter 11. Licensing. Section 14."
Section 14: Purchase from nonlicensee prohibited.
Amends AS 04.11.015 to prohibit the purchase or barter
for alcoholic beverages from a nonlicensee and adds
penalty with $250 fine. (Page 51)
She related that Section 14 [shown in magenta] added a penalty.
2:58:48 PM
MS. MORLEDGE said that Sections 16-19 and Section 21 on page 9
[shown in magenta] added penalty provisions.
Section 16: Board approval of transfers. Adds new
subsections to AS 04.11.040 (d) and (e) to make it an
offense and provide for a penalty for the unauthorized
transfer of an alcoholic beverage license or permit.
It is a violation. (Page 52)
Section 17: Reports required of limited liability
organization. Adds new subsections to AS 04.11.045 (c)
and (d) to add a penalty for failure to report a
change in member interest or manager with $250 fine.
(Page 52)
Section 18: Reports required of corporations. Adds new
subsections to AS 04.11.050 (c) and (d) to add a
penalty for failure to report a stock transfer or
change of officers or board members with $250 fine.
(Page 52)
Section 19: Reports required of partnerships. Adds new
subsections to AS 04.11.055 (c) and (d) to add a
penalty for failure to report a transfer of
partnership interest or change of general partner with
$250 fine. (Page 52)
2:59:08 PM
MS. MORLEDGE said that Section 20 was relocated. She reviewed
Section 21 [shown in magenta], which added a penalty provision.
Section 21: Nonresident distiller, brewer, winery, or
wholesaler. Amends AS 04.11.060 to add a new
subsection (b) to provide a penalty for violating the
previous section, making it a class A misdemeanor.
(Page 53)
MS. MORLEDGE reviewed Section 23 [shown in green].
Section 23: Application for new license or permit.
Amends AS 04.11.260 to exempt winery direct shipment
license from the application process for other license
types. (Page 54)
She said that this provision would exempt a winery direct
shipment license from the application process.
2:59:43 PM
SENATOR BISHOP asked whether he could contact a winery in Oregon
and have wine shipped directly to his home.
MS. MORLEDGE answered that existing wine clubs currently
deliver. However, they were not licensed companies in the state,
but this would provide licensure.
SENATOR MICCICHE explained that the reason it was important is
because anyone can order wine and liquor, but they may not be of
age or be in a dry community. He said the goal is to license
them so the state knows who the companies are and that they
would be taxed similarly to other establishments in Alaska.
[SB 52 was held in committee.]
3:00:42 PM
CHAIR REINBOLD reviewed upcoming committee announcements.
3:01:11 PM
There being no further business to come before the committee,
Chair Reinbold adjourned the Senate Labor and Commerce Standing
Committee meeting at 3:01 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB44 Amendment Effective Date Amendment SL&C.pdf |
SL&C 3/26/2019 1:30:00 PM |
SB 44 |
| SJR 8 USTR Statement for the Record.pdf |
SL&C 3/26/2019 1:30:00 PM |
SJR 8 |
| SJR 8 Alaska USMCA and Section 232 Impacts and Benefits.pptx |
SL&C 3/26/2019 1:30:00 PM |
SJR 8 |
| SB 83 Version M.pdf |
SL&C 3/26/2019 1:30:00 PM |
SB 83 |
| SB 83 Sponsor Statement.pdf |
SL&C 3/26/2019 1:30:00 PM |
SB 83 |
| SB 83 Sectional Analysis.pdf |
SL&C 3/26/2019 1:30:00 PM |
SB 83 |
| SB 83 Supporting Document Myth v Fact Modernizing Alaska's Telecommunications Legislation - Alaska Telecom Assn.pdf |
SL&C 3/26/2019 1:30:00 PM |
SB 83 |
| SB 83 Supporting Document Modernizing Alaska's Telecommunications Legislation - Alaska Telecom Assn.pdf |
SL&C 3/26/2019 1:30:00 PM |
SB 83 |
| SB 83 Alaska Telecom Association Presentation.pdf |
SL&C 3/26/2019 1:30:00 PM |
SB 83 |
| SB 83 - Letters of Support.pdf |
SL&C 3/26/2019 1:30:00 PM |
SB 83 |
| SB83-DCCED-RCA-03-20-19.pdf |
SL&C 3/26/2019 1:30:00 PM |
SB 83 |
| SB 52 Version U.PDF |
HL&C 3/11/2020 3:15:00 PM SJUD 4/22/2019 6:00:00 PM SL&C 3/26/2019 1:30:00 PM |
SB 52 |
| SB 52 Sponsor Statement.pdf |
SFIN 2/11/2020 9:00:00 AM SJUD 4/22/2019 6:00:00 PM SL&C 3/26/2019 1:30:00 PM |
SB 52 |
| SB 52 Sectional Analysis 2.19.19.pdf |
SJUD 4/22/2019 6:00:00 PM SL&C 3/26/2019 1:30:00 PM |
SB 52 |
| SB 52 Title 4 Bill Summary Changes SB 76 (2018) to SB 52 (2019).pdf |
SJUD 4/22/2019 6:00:00 PM SL&C 3/26/2019 1:30:00 PM |
|
| SB 52 Sectional Analysis v.U.pdf |
SJUD 4/22/2019 6:00:00 PM SL&C 3/26/2019 1:30:00 PM |
SB 52 |
| SB 52 Summary of Proposed Penalties.pdf |
SJUD 4/22/2019 6:00:00 PM SL&C 3/26/2019 1:30:00 PM |
SB 52 |
| SB 52 Summary of Goals.pdf |
HL&C 3/9/2020 3:15:00 PM SFIN 2/11/2020 9:00:00 AM SJUD 4/22/2019 6:00:00 PM SL&C 3/26/2019 1:30:00 PM |
SB 52 |
| SB 52 Title 4 Review Report.pdf |
HFIN 3/24/2020 9:00:00 AM SFIN 2/11/2020 9:00:00 AM SL&C 3/26/2019 1:30:00 PM |
SB 52 |
| SB52 Title4 Letter Support Firetap Alehouse.pdf |
SL&C 3/26/2019 1:30:00 PM |
SB 52 |
| SB 52 Letter of Support ABC Board 2.18.19.pdf |
SL&C 3/26/2019 1:30:00 PM |
SB 52 |
| SB52 Title4 Resolution Support Firetap Alehouse.pdf |
SL&C 3/26/2019 1:30:00 PM |
SB 52 |
| SB 52 Letter of Support Recover Alaska.pdf |
SL&C 3/26/2019 1:30:00 PM |
SB 52 |
| SB 52 Letter of Support ALPHA 3.25.19.pdf |
SL&C 3/26/2019 1:30:00 PM |
SB 52 |
| SB 52 Letter of Opposition AK Berries.pdf |
SL&C 3/26/2019 1:30:00 PM |
SB 52 |
| SB 52 AK Berries Winery Fees Table.pdf |
SL&C 3/26/2019 1:30:00 PM |
SB 52 |
| SB052-DCCED-AMCO-03-22-19.pdf |
SL&C 3/26/2019 1:30:00 PM |
SB 52 |
| SB052-DHSS-PS-3-22-2019.pdf |
SL&C 3/26/2019 1:30:00 PM |
SB 52 |
| SB052-DCCED-CBPL-02-14-19.pdf |
SL&C 3/26/2019 1:30:00 PM |
SB 52 |
| SB052-DOR-TAX-3-21-2019.pdf |
SL&C 3/26/2019 1:30:00 PM |
SB 52 |
| SJR8-SLAC-03-21-19.pdf |
SL&C 3/26/2019 1:30:00 PM |
SJR 8 |