Legislature(2019 - 2020)BELTZ 105 (TSBldg)

03/28/2019 01:30 PM LABOR & COMMERCE

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Audio Topic
01:32:10 PM Start
01:32:14 PM SB52
03:01:44 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 52 ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG TELECONFERENCED
Heard & Held
-Invited Testimony Followed by Public Testimony-
+ Bills Previously Heard/Scheduled TELECONFERENCED
**Streamed live on AKL.tv**
                  OPENALASKA STATE LEGISLATURE                                                                                
          SENATE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                         March 28, 2019                                                                                         
                           1:32 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lora Reinbold, Chair                                                                                                    
Senator Mia Costello, Vice Chair                                                                                                
Senator Click Bishop                                                                                                            
Senator Chris Birch                                                                                                             
Senator Elvi Gray-Jackson                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
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                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
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)                                                                      
03/26/19       (S)       Heard & Held                                                                                           
03/26/19       (S)       MINUTE(L&C)                                                                                            
03/28/19       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
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.                                                                                                                             
                                                                                                                                
EDRA MORLEDGE, Staff                                                                                                            
Senator Peter Micciche                                                                                                          
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Presented the sectional analysis for SB 52                                                                
on behalf of the sponsor, Senator Micciche.                                                                                     
                                                                                                                                
KAYLA GREEN, representing herself                                                                                               
Eagle River, Alaska                                                                                                             
POSITION STATEMENT: Testified in support of SB 52.                                                                            
                                                                                                                                
ROBIN MINARD, Chief Communication                                                                                               
Mat-Su Health Foundation                                                                                                        
Wasilla, Alaska                                                                                                                 
POSITION STATEMENT: Testified in support of SB 52.                                                                            
                                                                                                                                
BRIAN OLSON, Co-Owner                                                                                                           
Alaska Berries                                                                                                                  
Soldotna, Alaska                                                                                                                
POSITION STATEMENT: Testified during the hearing on SB 52 to                                                                  
express concerns about the license fees.                                                                                        
                                                                                                                                
CHRYSTAL SCHOENROCK, Owner                                                                                                      
4 Land Bar & Liquor                                                                                                             
Nikiski, Alaska                                                                                                                 
POSITION STATEMENT: Testified in opposition to SB 52.                                                                         
                                                                                                                                
STEPHANIE QUEEN, City Manager                                                                                                   
City of Soldotna                                                                                                                
Soldotna, Alaska                                                                                                                
POSITION STATEMENT: Testified as a stakeholder in favor of SB                                                                 
52.                                                                                                                             
                                                                                                                                
KATIE BALDWIN-JOHNSON, Senior Program Coordinator                                                                               
Alaska Mental Health Trust Authority                                                                                            
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SB 52.                                                                            
                                                                                                                                
SHAWN WILLIAMS, Assistant Commissioner                                                                                          
Department of Commerce                                                                                                          
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Answered questions during the discussion of                                                               
SB 52.                                                                                                                          
                                                                                                                                
BOB KLEIN, Chair                                                                                                                
Alcoholic Beverage Control Board (ABC Board)                                                                                    
Alcohol & Marijuana Control Office                                                                                              
Department of Commerce, Community and Economic Development                                                                      
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SB 52.                                                                            
                                                                                                                                
ERIKA MCCONNELL, Director                                                                                                       
Alcohol & Marijuana Control Office (AMCO)                                                                                       
Department of Commerce, Community and Economic Development                                                                      
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SB 52.                                                                            
                                                                                                                                
DICK ROSSTON, General Counsel                                                                                                   
Alyeska Resort                                                                                                                  
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SB 52.                                                                            
                                                                                                                                
LORA NORTON-CRUZ, Director                                                                                                      
Resilience Initiative Program                                                                                                   
Alaska Children's Trust                                                                                                         
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SB 52.                                                                            
                                                                                                                                
SARAH OATES, President and CEO                                                                                                  
Alaska Cabaret, Hotel, Restaurant and Retailers Association                                                                     
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified that Alaska CHARR does not support                                                              
SB 52 in its current form.                                                                                                      
                                                                                                                                
LEE ELLIS, President                                                                                                            
Brewers Guild of Alaska                                                                                                         
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified in support of SB 52.                                                                            
                                                                                                                                
EVAN WOOD, Co-Owner                                                                                                             
Devils Club Brewing Company                                                                                                     
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified in support of SB 52.                                                                            
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:32:10 PM                                                                                                                    
                                                                                                                                
CHAIR  LORA  REINBOLD  called  the   Senate  Labor  and  Commerce                                                             
Standing Committee meeting  to order at 1:32 p.m.  Present at the                                                               
call  to  order  were Senators  Costello,  Gray-Jackson,  Bishop,                                                               
Birch and Chair Reinbold.                                                                                                       
                                                                                                                                
         SB 52-ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG                                                                      
                                                                                                                                
1:32:14 PM                                                                                                                    
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."                                                                                           
                                                                                                                                
1:33:19 PM                                                                                                                    
SENATOR  PETER   MICCICHE,  Alaska  State   Legislature,  Juneau,                                                               
introduced himself as the sponsor of SB 52.                                                                                     
                                                                                                                                
1:33:35 PM                                                                                                                    
CHAIR REINBOLD  directed attention to the  sectional analysis for                                                               
SB 52.  She reminded members  that the committee was  focusing on                                                               
the  provisions  highlighted in  green  and  [magenta] since  the                                                               
yellow  highlighted provisions  related to  provisions that  were                                                               
just relocated or reorganized.                                                                                                  
                                                                                                                                
1:33:48 PM                                                                                                                    
EDRA  MORLEDGE,  Staff,  Senator  Peter  Micciche,  Alaska  State                                                               
Legislature, Juneau, on behalf of  the sponsor, Senator Micciche,                                                               
resumed the  sectional analysis  for SB 52  beginning on  page 9,                                                               
Section  22. She  explained  the color  coding  in the  sectional                                                               
analysis,   that  provisions   that  were   relocated  or   added                                                               
references were  highlighted in  yellow, penalty  provisions were                                                               
highlighted in magenta, and new concepts were highlighted in                                                                    
green. She reviewed Section 22 [highlighted in yellow].                                                                         
                                                                                                                                
     Section  22: Application  for  new  license or  permit.                                                                    
     Amends AS  04.11.260   Application  for a  new license,                                                                    
     endorsement,   or    permit   to   include    the   new                                                                    
     endorsements, multiple fixed  counter endorsement fees,                                                                    
     and   requirements  for   a  conditional   contractor's                                                                    
     permit.  This  section  requires the  mailing  address,                                                                    
     phone  number and  e-mail  of  the applicant,  requires                                                                    
     annotated  licensed  premises  illustrations  and  adds                                                                    
     license   references    with   individual   application                                                                    
     requirements. (Pages 53-54)                                                                                                
                                                                                                                                
She reviewed Sections 23, 25, and 29 [highlighted 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)                                                                                                           
                                                                                                                                
     Section  25:  Application  for renewal  of  license  or                                                                    
     permit.  Amends AS  04.11.270 to  exempt winery  direct                                                                    
     shipment license from the renewal process. (Page 55)                                                                       
                                                                                                                                
     Section 29: Notice of  application. Adds new subsection                                                                    
     AS  04.11.310  (c)  to exempt  winery  direct  shipment                                                                    
     license from notice requirements. (Page 56)                                                                                
                                                                                                                                
She said these provisions would exempt winery direct shipment                                                                   
licenses from the application process because they have their                                                                   
own application process.                                                                                                        
                                                                                                                                
1:34:44 PM                                                                                                                    
MS. MORLEDGE Sections 24 and 26 [highlighted in yellow].                                                                        
                                                                                                                                
     Section  24:  Application  for renewal  of  license  or                                                                    
     permit. Amends  AS 04.11.270 to add  endorsements, adds                                                                    
     conditional  contractor's  permit, and  allows  renewal                                                                    
     applications  to be  sent via  electronic mail.  (Pages                                                                    
     54-55)                                                                                                                     
                                                                                                                                
     Section 26:  Application for transfer  of a  license to                                                                    
     another   person.   Amends    AS   04.11.280   to   add                                                                    
     endorsements  as transferrable  with  a license.  (Page                                                                    
     55)                                                                                                                        
                                                                                                                                
MS. MORLEDGE reviewed Sections 27-28.                                                                                           
                                                                                                                                
     Section 27:  Criminal justice information  and records.                                                                    
     Amends AS  04.11.295(a) to  clarify "issuance  of"" and                                                                    
     "renewal of"  a conditional  contractor's permit  as it                                                                    
     pertains  to  criminal   justice  information  records.                                                                    
     (Page 56)                                                                                                                  
                                                                                                                                
     Section 28:  Criminal justice information  and records.                                                                    
     Amends   AS    04.11.295(c)(1)   adds    reference   to                                                                    
     conditional  contractor's permit  to the  definition of                                                                    
     "applicant." (Page 56)                                                                                                     
                                                                                                                                
She explained that these sections would clarify references to                                                                   
conditional contractor's permits.                                                                                               
                                                                                                                                
1:34:57 PM                                                                                                                    
MS. MORLEDGE reviewed Sections 31-35, and 37 [highlighted in                                                                    
yellow].                                                                                                                        
                                                                                                                                
     Section 31: Denial of new  licenses and permits. Amends                                                                    
     AS 04.11.320(a)  to add  references to  endorsements in                                                                    
     the  currently  existing  denial of  new  licenses  and                                                                    
     permits statute. This  section also requires disclosure                                                                    
     of  the identity  and financing  of a  licensee. (Pages                                                                    
     56-58)                                                                                                                     
                                                                                                                                
     Section  32:  Denial  of  license  or  permit  renewal.                                                                    
     Amends  AS  04.11.330(a)  to remove  the  reference  to                                                                    
     public  convenience   license.  (Page   58)  [Effective                                                                    
     immediately]                                                                                                               
                                                                                                                                
     Section  33:  Denial  of  license  or  permit  renewal.                                                                    
     Amends  AS  04.11.330(a)  (duplicate  section)  to  add                                                                    
     endorsement,  adds  reference  to  beverage  dispensary                                                                    
     tourism  license,   and  adds  reference   to  seasonal                                                                    
     restaurant or eating  place tourism license. [Effective                                                                    
     with other licensing changes 1/1/2021] (Pages 58-59)                                                                       
                                                                                                                                
     Section  34:  Denial  of  license  or  permit  renewal.                                                                    
     Amends AS  04.11.330(b) to include outstanding  fees or                                                                    
     penalties  due  to  a  state  or  local  government  in                                                                    
     addition to  unpaid taxes as  grounds for denial  of an                                                                    
     application or renewal of a license. (Page 59)                                                                             
                                                                                                                                
     Section  35:  Denial  of  license  or  permit  renewal.                                                                    
     Amends AS 04.11.330(d) to allow  for a theater license,                                                                    
     a  common carrier  dispensary license,  and a  sporting                                                                    
     event  license to  be renewed  if it  was exercised  at                                                                    
     least once  during each of  the preceding  two calendar                                                                    
     years.  This  is  existing statute  in  relation  to  a                                                                    
     recreational site license. (Page 59)                                                                                       
                                                                                                                                
     Section 37:  Denial of  request for  relocation. Amends                                                                    
     AS  04.11.340   to  remove  the  reference   to  public                                                                    
     convenience license  regarding a denial of  request for                                                                    
     relocation. [Effective immediately] (Page 60)                                                                              
                                                                                                                                
MS.  MORLEDGE said  these  sections  address renumbering  license                                                               
types,  repeal  of  public convenience,  and  endorsements.  Some                                                               
sections  were duplicates,  some have  immediate effective  dates                                                               
and others take effect on January 1, 2021.                                                                                      
                                                                                                                                
1:35:16 PM                                                                                                                    
MS. MORLEDGE reviewed Section 36 and 38 [highlighted in green].                                                                 
                                                                                                                                
     Section 36:  Denial of license or  permit renewal. Adds                                                                    
     new subsection 04.11.330 (e) to  exempt a winery direct                                                                    
     shipment license from certain  provisions in the denial                                                                    
     of an application  section that do not  pertain to this                                                                    
     type of license. (Page 60)                                                                                                 
                                                                                                                                
     Section 38:  Denial of  request for  relocation. Amends                                                                    
     AS 04.11.340  (duplicate section),  to add  a reference                                                                    
     to 04.11.400(k) and  removes reference to 04.11.400(d),                                                                    
     which exempts certain  licenses from population limits.                                                                    
     [Effective  with  other  licensing  changes,  1/1/2021]                                                                    
     (Pages 60-61)                                                                                                              
                                                                                                                                
MS. MORLEDGE reviewed Sections 39, 40, and 45 [highlighted in                                                                   
yellow]:                                                                                                                        
                                                                                                                                
     Section 39:  Denial of transfer  of license  to another                                                                    
     person.  Amends  AS  04.11.360  to  remove  the  public                                                                    
     convenience  license  reference   regarding  denial  of                                                                    
     transfer  of a  license to  another person.  [Effective                                                                    
     immediately] (Pages 61-62)                                                                                                 
                                                                                                                                
     Section 40:  Denial of transfer  of license  to another                                                                    
     person.  Amends  AS  04.11.360 (duplicate  section)  to                                                                    
     remove the  reference to a public  convenience beverage                                                                    
     dispensary license  under former  04.11.400(i) or  to a                                                                    
     brewpub  license  regarding  denial of  transfer  of  a                                                                    
     license  to  another   person.  [Effective  with  other                                                                    
     licensing changes, 1/1/2021] (Pages 62-63)                                                                                 
                                                                                                                                
     Section   45:   Population   Limitations.   Amends   AS                                                                    
     04.11.400(a)   to  remove   references   to  a   public                                                                    
     convenience  license.  [Effective  immediately]  (Pages                                                                    
     65-66)                                                                                                                     
                                                                                                                                
She  said   that  these  provisions  address   repeal  of  public                                                               
convenience and renumbering.                                                                                                    
                                                                                                                                
1:35:31 PM                                                                                                                    
MS. MORLEDGE reviewed Sections 41-43 [highlighted in yellow].                                                                   
                                                                                                                                
     Section   41:    Licensed   premises    in   multi-unit                                                                    
     residential  housing development  owned or  financed by                                                                    
     the  Alaska  Housing  Finance  Corporation.  Amends  AS                                                                    
     04.11.365 to rename restaurant  designation permit to a                                                                    
     restaurant  endorsement  as   a  licensed  premises  in                                                                    
     multi-unit  residential housing  developments owned  or                                                                    
     financed  by the  Alaska  Housing Finance  Corporation.                                                                    
     (Pages 63-64)                                                                                                              
                                                                                                                                
     Section 42:  Suspension and revocation of  licenses and                                                                    
     permits. Amends AS 04.11.370(a)  to add endorsements to                                                                    
     the suspension  and revocation of licenses  and permits                                                                    
     section. (Pages 64-65)                                                                                                     
                                                                                                                                
     Section 43:  Board Imposed Conditions  or Restrictions.                                                                    
     Amends  AS 04.11.395  to change  the section  title and                                                                    
     adds a reference to endorsements. (Page 65)                                                                                
                                                                                                                                
She said these provisions add references to endorsements.                                                                       
                                                                                                                                
1:35:39 PM                                                                                                                    
CHAIR REINBOLD asked for further  clarification on the definition                                                               
of public convenience and endorsements.                                                                                         
                                                                                                                                
MS. MORLEDGE deferred to Ms. Brawley.                                                                                           
                                                                                                                                
1:35:56 PM                                                                                                                    
ANNA  BRAWLEY,   Title  4  Project  Review   Coordinator,  Senior                                                               
Associate,   Agnew  Beck   Consulting,   explained  that   public                                                               
convenience refers to the current process  in the bill to issue a                                                               
restaurant  license  outside  of population  limits.  A  petition                                                               
process  goes to  the  board,  which she  would  discuss in  more                                                               
detail  during  the presentation.  The  bill  also proposes  some                                                               
replacements for that process.                                                                                                  
                                                                                                                                
She  explained  that  endorsements  would  be  discussed  in  the                                                               
presentation.  They are  essentially an  "add on"  to a  license,                                                               
similar to  other types  of licenses  such as  commercial drivers                                                               
license, but not  currently in alcohol licenses.  It could expand                                                               
the  physical  premise  of  a license  or  allow  activities  not                                                               
allowed under the base license.                                                                                                 
                                                                                                                                
1:36:39 PM                                                                                                                    
SENATOR MICCICHE  added that  the reason for  the changes  to the                                                               
public convenience license  was to provide more  local control to                                                               
municipalities.  He   suggested  that   this  would   be  further                                                               
clarified during the upcoming presentation.                                                                                     
                                                                                                                                
1:37:08 PM                                                                                                                    
SENATOR BISHOP expressed an interest in Section 49.                                                                             
                                                                                                                                
1:37:16 PM                                                                                                                    
MS. MORLEDGE  reviewed Section 44  of the sectional  analysis for                                                               
SB 52 [highlighted in green].                                                                                                   
                                                                                                                                
     Section 44:  Board Imposed Conditions  or Restrictions.                                                                    
     Adds  a new  subsection  AS 04.11.395(a)  to allow  the                                                                    
     director to  impose conditions  or restrictions  on any                                                                    
     permit  other than  a conditional  contractor's permit.                                                                    
     (Page 65)                                                                                                                  
                                                                                                                                
She said that this provision  would allow the Alcohol & Marijuana                                                               
Control Office director to place conditions on permits.                                                                         
                                                                                                                                
1:37:34 PM                                                                                                                    
MS. MORLEDGE reviewed Sections 46 and 47 [highlighted in green].                                                                
                                                                                                                                
     Section   46      Population  limitations.   Amends  AS                                                                    
     04.11.400(a)  (duplicate section),  to edit  subsection                                                                    
     references,  defines five-mile  radius outside  cities,                                                                    
     adds   new  population   limit  of   1:9,000  for   new                                                                    
     manufacturer  retail  licenses,  adds  licenses  exempt                                                                    
     from  population   limits  and  exempts   local  option                                                                    
     populations  from calculations.  [Effective with  other                                                                    
     licensing changes, 1/1/2021] (Pages 66-68)                                                                                 
                                                                                                                                
     Section   47:  Population   limitations.  Repeals   and                                                                    
     reenacts AS  04.11.400(i) to list licenses  exempt from                                                                    
     population  limits, including  manufacturer (production                                                                    
     only)  licenses,   wholesale  licenses   and  currently                                                                    
     exempt   retail  licenses   that  primarily   cater  to                                                                    
     tourists and travelers. (Pages 68-69)                                                                                      
                                                                                                                                
MS. MORLEDGE said  Sections 46 and 47  address population limits,                                                               
including renumbering  licenses, and adding a  limit for brewery,                                                               
winery, and distillery retail licenses.                                                                                         
                                                                                                                                
1:37:52 PM                                                                                                                    
CHAIR REINBOLD asked if the  limit would be one establishment for                                                               
9,000 people.                                                                                                                   
                                                                                                                                
MS. MORLEDGE deferred to Ms. Brawley.                                                                                           
                                                                                                                                
1:38:23 PM                                                                                                                    
MS. BRAWLEY  said that the  proposal would  apply the 1  to 9,000                                                               
population  limit   for  new  licenses  issued   after  the  2021                                                               
effective  date. It  would grandfather  in current  licenses. The                                                               
current population  limit for  most licenses is  1 to  3,000, she                                                               
said. The rationale  for imposing this limit on  new licenses was                                                               
because the bill  would also add three new license  types to each                                                               
community.  Every license  added would  provide more  outlets for                                                               
alcohol. The  1 to 9,000  population restriction would  not flood                                                               
the market  with new  licenses per the  goals of  the stakeholder                                                               
process.                                                                                                                        
                                                                                                                                
CHAIR REINBOLD said she thought it was a significant change.                                                                    
                                                                                                                                
1:39:05 PM                                                                                                                    
SENATOR  COSTELLO  said the  population  looks  like a  different                                                               
number  but since  three licenses  are  involved, the  population                                                               
ratio does not change.                                                                                                          
                                                                                                                                
SENATOR MICCICHE said  the population ratio would be  1 to 3,000,                                                               
but  since it  would apply  to  three license  types, the  result                                                               
would be the same.                                                                                                              
                                                                                                                                
1:40:09 PM                                                                                                                    
MS. MORLEDGE reviewed Section 48 [highlighted in green].                                                                        
                                                                                                                                
     Section   48:   Population   limitations.   Amends   AS                                                                    
     04.11.400(k) to  edit reference to  beverage dispensary                                                                    
     license, allows  relocation of a package  store, lowers                                                                    
     borough threshold  population for  qualifying boroughs,                                                                    
     restricts number  of licenses eligible for  transfer to                                                                    
     those  exceeding population  limits and  defines number                                                                    
     of allowed transfers by city, not borough. (Page 69)                                                                       
                                                                                                                                
She said that this would allow relocation of a package store                                                                    
from a city to a borough.                                                                                                       
                                                                                                                                
MS. MORLEDGE reviewed Sections 49-51 [highlighted in green].                                                                    
                                                                                                                                
     Section  49:  Petition  for  additional  restaurant  or                                                                    
     eating  place  licenses  for  certain  local  governing                                                                    
     bodies. Adds new section AS  04.11.405 that gives first                                                                    
     class   cities,   home    rule   cities,   or   unified                                                                    
     municipalities  the  Green  =   New  Concept  Yellow  =                                                                    
     Relocating/Adding  References  Magenta   =  Related  to                                                                    
     Penalties ability to petition  the board for additional                                                                    
     restaurant or eating place  licenses allocated to their                                                                    
     jurisdiction. [Effective immediately] (Page 69-71)                                                                         
                                                                                                                                
     Section  50:  Petition  for  additional  restaurant  or                                                                    
     eating  place  licenses  for  certain  local  governing                                                                    
     bodies.  Amends  AS  04.11.405(a)  (duplicate  section)                                                                    
     that  gives first  class cities,  home rule  cities, or                                                                    
     unified  municipalities  the  ability to  petition  the                                                                    
     board to  grant additional  restaurant or  eating place                                                                    
     licenses allocated to their  jurisdiction under the new                                                                    
     Article  9. [Effective  with  other licensing  changes,                                                                    
     1/1/2021] (Page 71)                                                                                                        
                                                                                                                                
     Section  51:  Petition  for  additional  restaurant  or                                                                    
     eating  place  licenses  for  certain  local  governing                                                                    
     bodies. Amends  AS 04.11.405(b) (duplicate  section) to                                                                    
     allow  the  board  to issue  additional  restaurant  or                                                                    
     eating  place   licenses  under  the  new   Article  9.                                                                    
     [Effective  with  other  licensing  changes,  1/1/2021]                                                                    
     (Page 71)                                                                                                                  
                                                                                                                                
She explained that this would allow first class and home rule                                                                   
cities to petition the board for additional restaurant licenses                                                                 
in their area if certain criteria were met.                                                                                     
                                                                                                                                
1:40:37 PM                                                                                                                    
SENATOR BISHOP asked whether this was at the request of the                                                                     
board or the general public                                                                                                     
                                                                                                                                
SENATOR MICCICHE answered that Section 49 was requested by                                                                      
municipalities. He said that he would discuss the petition                                                                      
method in more detail later.                                                                                                    
                                                                                                                                
1:41:00 PM                                                                                                                    
MS. MORLEDGE reviewed Section 52 [highlighted in yellow] and                                                                    
Section 53 [highlighted in green].                                                                                              
                                                                                                                                
     Section 52: Zoning  limitations. Amends AS 04.11.420(a)                                                                    
     to disallow  a new or  location transfer of  a license,                                                                    
     endorsement  or permit  in a  municipality if  a zoning                                                                    
     regulation or ordinance prohibits it. (Page 72)                                                                            
                                                                                                                                
     Section 53: Zoning limitations.  Adds new subsection AS                                                                    
     04.11.420(c) to  allow a  license to  be renewed  if it                                                                    
     was initially issued  prior to the effective  date of a                                                                    
     local  zoning   regulation  or  ordinance   that  would                                                                    
     prohibit it, if it was  issued in compliance with local                                                                    
     zoning regulations  and ordinances  at the  time. (Page                                                                    
     72)                                                                                                                        
                                                                                                                                
MS. MORLEDGE said that these provisions address zoning                                                                          
limitations and also allow preexisting licenses to be renewed if                                                                
they don't comply after a zoning change.                                                                                        
                                                                                                                                
1:41:19 PM                                                                                                                    
MS. MORLEDGE reviewed Section 54 [highlighted in green].                                                                        
                                                                                                                                
     Section 54:  Person and  location. Amends  AS 04.11.430                                                                    
     to allow  licenses to be issued  to government entities                                                                    
     and tribal organizations.  Place residency requirements                                                                    
     on  corporations and  limited liability  organizations.                                                                    
     Adds  a  reference  to   endorsements  in  relation  to                                                                    
     information required,  including telephone  number, and                                                                    
     email address. [Effective immediately] (Page 72)                                                                           
                                                                                                                                
She said that this allows a local government or tribe to be a                                                                   
license holder and it references endorsements.                                                                                  
                                                                                                                                
MS. MORLEDGE reviewed Sections 55-57 [highlighted in green].                                                                    
                                                                                                                                
     Section  55: Prohibited  financial interest.  Amends AS                                                                    
     04.11.450(b) to clarify that a  wholesaler cannot own a                                                                    
     manufacturer  license  or  a  retail  license,  removes                                                                    
     restrictions on manufacturers  owning a retail license,                                                                    
     and  removes references  to  repealed licenses.  (Pages                                                                    
     72-73)                                                                                                                     
                                                                                                                                
     Section  56: Prohibited  financial interest.  Amends AS                                                                    
     04.11.450(e)  to clarify  that  a holder  of a  general                                                                    
     wholesale  or  limited  wholesale brewed  beverage  and                                                                    
     wine license cannot be employed  by or act as the agent                                                                    
     or employee of a manufacturer or retail license.                                                                           
                                                                                                                                
     Section  57: Prohibited  financial  interest. Adds  new                                                                    
     subsections   to  AS   04.11.450   (g-h)  to   restrict                                                                    
     manufacturers above  a certain annual  production level                                                                    
     from owning  a wholesale license or  retail license and                                                                    
     defines  thresholds  for  production by  product  type.                                                                    
     (Page 73)                                                                                                                  
                                                                                                                                
She said  these provisions allow  a manufacturer to own  a retail                                                               
license  and maintain  the  current  restrictions on  wholesalers                                                               
holding  licenses in  the  other two  tiers.  It prohibits  large                                                               
manufacturers from holding retail licenses.                                                                                     
                                                                                                                                
1:41:41 PM                                                                                                                    
MS. MORLEDGE reviewed Section 58 [highlighted in green].                                                                        
                                                                                                                                
     Section 58: Prior public  approval. Amends AS 04.11.460                                                                    
     to  exempt a  winery direct  shipment license  boundary                                                                    
     restrictions. (Page 74)                                                                                                    
                                                                                                                                
She said that Section 58 exempts winery direct shipment licenses                                                                
from the application requirement.                                                                                               
                                                                                                                                
1:41:51 PM                                                                                                                    
MS. MORLEDGE reviewed Sections 59-62 [highlighted in yellow] and                                                                
Section 63 [highlighted in green].                                                                                              
                                                                                                                                
     Section  59:  Objection.  Amends AS  04.11.470  to  add                                                                    
     endorsements  to  allowable   objections  and  protest.                                                                    
     (Page   74)    Green   =    New   Concept    Yellow   =                                                                    
     Relocating/Adding  References  Magenta   =  Related  to                                                                    
     Penalties 13                                                                                                               
                                                                                                                                
     Section 60: Protest. Amends  AS 04.11.480(a) to include                                                                    
     endorsements  regarding   a  person  objecting   to  an                                                                    
     application   for   issuance,  renewal,   transfer   of                                                                    
     location or transfer to another person. (Pages 74-75)                                                                      
                                                                                                                                
     Section  61: Protest.  Amends  04.11.480(b) to  include                                                                    
     endorsements  in  the   existing  boundary  limits  for                                                                    
     requesting a  public hearing  to protest  the issuance,                                                                    
     renewal, or transfer of a license. (Page 75)                                                                               
                                                                                                                                
     Section  62: Protest.  Amends  04.11.480(c) to  include                                                                    
     endorsements  in the  existing  section  that allows  a                                                                    
     local  governing  body  to establish  conditions  on  a                                                                    
     license's issuance, renewal, or transfer. (Page 75)                                                                        
                                                                                                                                
     Section 63:  Protest. Adds new  subsection 04.11.480(e)                                                                    
     to  clarify  more  than one  local  governing  body  to                                                                    
     protest the  issuance, renewal, relocation  or transfer                                                                    
     of a  license if the  location or proposed  location is                                                                    
     within   the  boundaries   of  more   than  one   local                                                                    
     government. (Pages 75-76)                                                                                                  
                                                                                                                                
She said that these provisions add references to                                                                                
endorsements.                                                                                                                   
                                                                                                                                
1:41:57 PM                                                                                                                    
MS. MORLEDGE reviewed Sections 64-67 [highlighted in                                                                            
yellow].                                                                                                                        
                                                                                                                                
     Section  64: Local  option. Amends  AS 04.11.491(a)  to                                                                    
     insert statutory  references to  the new  license types                                                                    
     (Page 76)                                                                                                                  
                                                                                                                                
     Section  65: Local  option. Amends  AS 04.11.491(b)  to                                                                    
     insert statutory  references to  the new  license types                                                                    
     (Pages 76-77)                                                                                                              
                                                                                                                                
     Section  66: Local  option. Amends  AS 04.11.491(d)  to                                                                    
     correct  statutory references  to license  types. (Page                                                                    
     77)                                                                                                                        
                                                                                                                                
     Section  67: Local  option. Amends  AS 04.11.491(g)  to                                                                    
     correct statutory  references to license  types. (Pages                                                                    
     77-78)                                                                                                                     
                                                                                                                                
                                                                                                                                
She explained that these provisions renumber license types                                                                      
referenced in the local option laws.                                                                                            
                                                                                                                                
MS. MORLEDGE reviewed Section 68 [not highlighted] and Section                                                                  
69 [highlighted in yellow].                                                                                                     
                                                                                                                                
     Section   68:   Procedure   for   action   on   license                                                                    
     applications, suspensions,  and revocations.  Amends AS                                                                    
     04.11.510(b) to  clarify the requirement  for immediate                                                                    
     written notice  of a denied application  and inform the                                                                    
     applicant that  they are entitled  to submit  a request                                                                    
     to  the  director  within  15   days  for  an  informal                                                                    
     conference. The applicant is then  entitled to a formal                                                                    
     hearing  conducted  by  the  Office  of  Administrative                                                                    
     Hearings  if   they  are  dissatisfied.   This  section                                                                    
     establishes timelines for  these procedures. (Pages 78-                                                                    
     79)                                                                                                                        
                                                                                                                                
     Section   69:   Procedure   for   action   on   license                                                                    
     applications, suspensions,  and revocations.  Amends AS                                                                    
     04.11.510(c) to correct the  statutory reference to the                                                                    
     Administrative  Procedure  Act,  allows a  licensee  to                                                                    
     submit  a request  for an  informal  conference to  the                                                                    
     director within  15 days after  an accusation  that may                                                                    
     lead to a  suspension or revocation of  a license. This                                                                    
     section  establishes  a  timeline for  this  procedure.                                                                    
     (Pages 79-80)                                                                                                              
                                                                                                                                
She said that  these provisions add more  specific timeframes for                                                               
informal conferences with the director or board.                                                                                
                                                                                                                                
1:42:16 PM                                                                                                                    
CHAIR REINBOLD asked her to discuss Sections 56-58.                                                                             
                                                                                                                                
1:42:34 PM                                                                                                                    
MS. MORLEDGE said that Section  56 addresses prohibited financial                                                               
interest.  This  existing  concept   relates  to  the  three-tier                                                               
system, keeping the manufacturer,  retail, and wholesale licenses                                                               
separate.  She  said  that  Section  57  adds  another  layer  by                                                               
restricting  a  large manufacturer  from  owning  a wholesale  or                                                               
retail license, which keeps the three tiers separate.                                                                           
                                                                                                                                
CHAIR REINBOLD said the three-tier system is important.                                                                         
                                                                                                                                
1:43:14 PM                                                                                                                    
MS. MORLEDGE rereviewed Sections 68-69.                                                                                         
                                                                                                                                
1:43:37 PM                                                                                                                    
MS.  MORLEDGE reviewed  Sections  70 [highlighted  in green]  and                                                               
Sections 71-76 [highlighted in yellow].                                                                                         
                                                                                                                                
     Section 70:  Notice to local governing  body. Amends AS                                                                    
     04.11.520  to require  the board  to  notify the  local                                                                    
     governing body of  an established village, incorporated                                                                    
     city, an  organized borough, or a  unified municipality                                                                    
     within   10  business   days   after   receipt  of   an                                                                    
     application for  the issuance or renewal  of a license,                                                                    
     endorsement,   license   with  endorsements,   or   the                                                                    
     transfer of  a license  to another person  or location.                                                                    
     (Page   80)    Green   =    New   Concept    Yellow   =                                                                    
     Relocating/Adding  References  Magenta   =  Related  to                                                                    
     Penalties 14                                                                                                               
                                                                                                                                
     Section 71: Suspension and revocation  based on acts of                                                                    
     employees. Amends AS  04.11.535(a) to add endorsements,                                                                    
     reference  to permittee  as  applicable and  clarifying                                                                    
     language. (Pages 80-81)                                                                                                    
                                                                                                                                
     Sections  72:  License,  endorsement,  and  conditional                                                                    
     contractor's permit  renewal and expiration.  Amends AS                                                                    
     04.11.540   to   add   endorsements   and   conditional                                                                    
     contractors  permit to  the existing  statute regarding                                                                    
     renewal and expiration of an application. (Page 81)                                                                        
                                                                                                                                
     Section  73: Appeals.  Amends  AS  04.11.560(b) to  add                                                                    
     endorsements to  the appeals procedure in  the event of                                                                    
     a  board decision  relating to  the issuance,  renewal,                                                                    
     transfer,  relocation, suspension,  or revocation  of a                                                                    
     license or endorsement. (Page 81)                                                                                          
                                                                                                                                
     Section 74:  Refund and forfeiture  of fees.  Amends AS                                                                    
     04.11.570  to  add  endorsements  to  existing  statute                                                                    
     regarding  the refund  and forfeiture  of  fees in  the                                                                    
     event of a denied application. (Page 81)                                                                                   
                                                                                                                                
     Section  75:  Surrender   or  destruction  of  license.                                                                    
     Amends 04.11.580(b) to clean  up time limit language to                                                                    
     "not later than 10 days"  from "within 10 days." (Pages                                                                    
     81-82)                                                                                                                     
                                                                                                                                
     Section   76:   Disposition   of   money.   Amends   AS                                                                    
     04.11.590(a)   to   include    money   collected   from                                                                    
     endorsements  and  permits  to be  transferred  by  the                                                                    
     board  to the  Department  of  Commerce, Community  and                                                                    
     Economic  Development  and  deposited  to  the  general                                                                    
     fund. (Page 82)                                                                                                            
                                                                                                                                
MS. MORLEDGE said these provisions add references to                                                                            
endorsements and clarify timeframes in the application process.                                                                 
                                                                                                                                
1:43:45 PM                                                                                                                    
CHAIR REINBOLD asked what references to endorsements means.                                                                     
                                                                                                                                
MS. MORLEDGE answered that endorsements are new to the bill.                                                                    
That term is being added into these sections.                                                                                   
                                                                                                                                
1:44:20 PM                                                                                                                    
MS. BRAWLEY explained that an  endorsement would not create a new                                                               
license  but would  allow something  that  an underlying  license                                                               
would  not allow.  For  example,  a package  store  could get  an                                                               
endorsement  to  ship  to customers  directly  whereas  the  base                                                               
license would  not allow that  to occur. It would  allow layering                                                               
of activities without creating a bunch of new license types.                                                                    
                                                                                                                                
CHAIR REINBOLD related her understanding  that it would be like a                                                               
specialty endorsement.                                                                                                          
                                                                                                                                
1:44:57 PM                                                                                                                    
MS. MORLEDGE reviewed Section 77 [not highlighted].                                                                             
                                                                                                                                
     Section  77:   Refund  to  municipalities.   Amends  AS                                                                    
     04.11.610   to   change    "refund"   to   "allocation"                                                                    
     throughout  and  specifies   content  of  reporting  by                                                                    
     municipalities for how license  fee funds were used for                                                                    
     alcohol-related education and enforcement. (Page 82)                                                                       
                                                                                                                                
MS.  MORLEDGE  explained  that  this  strengthens  the  reporting                                                               
requirements   for  municipalities   that   receive  a   matching                                                               
allocation  of   the  fees  collected  from   licenses  in  their                                                               
jurisdiction.                                                                                                                   
                                                                                                                                
1:45:12 PM                                                                                                                    
SENATOR  COSTELLO asked  Ms. Morledge  to reference  page numbers                                                               
when she skipped sections [highlighted in yellow].                                                                              
                                                                                                                                
MS. MORLEDGE said that Section 77 is on page 82.                                                                                
                                                                                                                                
MS. MORLEDGE reviewed Section 78 and 79 [highlighted in yellow].                                                                
                                                                                                                                
     Section  78:  Accessibility  of  license  and  licensed                                                                    
     premises  to  inspection.  Amends  AS  04.11.630(b)  to                                                                    
     require   easily  available   posting  of   a  license,                                                                    
     endorsements,  permits,  designated premises  during  a                                                                    
     permitted event. (Page 82-83)                                                                                              
                                                                                                                                
     Section 79:  Duration of  licenses and  permits. Amends                                                                    
     AS   04.11.680   to   add   endorsements,   conditional                                                                    
     contractors permit, states that  permits must be issued                                                                    
     for  a specified  time and  removes  fee reduction  for                                                                    
     seasonal licenses. (Page 83)                                                                                               
                                                                                                                                
She said that these sections add references to endorsements.                                                                    
                                                                                                                                
1:46:09 PM                                                                                                                    
MS. MORLEDGE  turned to page  [15] of the sectional  analysis for                                                               
SB  52.  She  reviewed  Section 80  [highlighted  in  green]  and                                                               
Section 81 [highlighted in magenta].                                                                                            
                                                                                                                                
     Section  80: Hours  of sale  and  presence on  licensed                                                                    
     premises   (standard   closing    hours).   Amends   AS                                                                    
     04.16.010(c) to clarify the hours  that a person cannot                                                                    
     be  on   the  licensed  premises  outside   of  allowed                                                                    
     operating  hours (8:00  a.m.  to 5:00  a.m.) unless  to                                                                    
     conduct  business  with  the licensee,  maintenance  or                                                                    
     improvements,  is  the  holder   of  a  common  carrier                                                                    
     license  and  adds  restaurant  endorsement  reference.                                                                    
     (Page 83-84)                                                                                                               
                                                                                                                                
     Section  81: Hours  of sale  and  presence on  licensed                                                                    
     premises (standard closing  hours). Amends AS 04.16.010                                                                    
     to add new subsection (e),  making it a violation for a                                                                    
     person to violate this section. (Page 84)                                                                                  
                                                                                                                                
MS. MORLEDGE said these sections  allow employees and contractors                                                               
to be  on licensed premises  outside of allowed serving  hours to                                                               
conduct other  business, such as  maintenance, provided  they are                                                               
not  consuming or  serving alcohol.  It adds  a penalty  for that                                                               
conduct.  She referred  to Chapter  16, Regulation  of Sales  and                                                               
Distribution; Prohibited Acts.                                                                                                  
                                                                                                                                
1:46:32 PM                                                                                                                    
MS.  MORLEDGE  reviewed Section  82  [highlighted  in green]  and                                                               
Section 83 [highlighted in magenta].                                                                                            
                                                                                                                                
     Section   82:  Pricing   and  marketing   of  alcoholic                                                                    
     beverages.   Amends    AS   04.16.015(a)    to   exempt                                                                    
     manufacturer  and package  store sampling  endorsements                                                                    
     from  the  prohibition  on providing  alcohol  free  of                                                                    
     charge  and  defines a  week  as  seven days  from  the                                                                    
     prohibition  of  offering   free  alcoholic  beverages.                                                                    
     (Page 84)                                                                                                                  
                                                                                                                                
     Section   83:  Pricing   and  marketing   of  alcoholic                                                                    
     beverages.  Amends   AS  04.16.015  by  adding   a  new                                                                    
     subsection (e)  to set the  penalty for  violating this                                                                    
     section as a violation. (Page 84)                                                                                          
                                                                                                                                
MS.  MORLEDGE said  this  section allows  free  samples with  the                                                               
manufacturer or package store sampling  endorsement. It also adds                                                               
a penalty for violating this section.                                                                                           
                                                                                                                                
1:46:58 PM                                                                                                                    
MS. MORLEDGE reviewed Section 84 [highlighted in magenta].                                                                      
                                                                                                                                
     Section  84: Trade  practices. Adds  a  new section  AS                                                                    
     04.16.017    to    specify   illegal    practices    by                                                                    
     manufacturers  as defined  in federal  law and  directs                                                                    
     the board  to adopt regulations defining  exceptions to                                                                    
     these   rules   and    administrative   penalties   for                                                                    
     violations. (Pages 84-86)                                                                                                  
                                                                                                                                
MS. MORLEDGE  said this is  a new section that  strengthens trade                                                               
practices,  consistent  with  federal  law  regarding  prohibited                                                               
trade   practices   between   manufacturers,   wholesalers,   and                                                               
retailers.  It requires  the  board  to establish  administrative                                                               
penalties in regard to the three-tier system.                                                                                   
                                                                                                                                
1:47:19 PM                                                                                                                    
CHAIR  REINBOLD  asked  whether  this  would  apply  to  in-store                                                               
sampling or private wine tasting events.                                                                                        
                                                                                                                                
MS. BRAWLEY  explained that it  would apply to events  inside the                                                               
store. In  response to Senator  Reinbold, she explained  that in-                                                               
store  sampling  is  common  in  many other  places  but  is  not                                                               
currently allowed  in stores  in Alaska.  Either the  store would                                                               
offer samples or a third-party would do so.                                                                                     
                                                                                                                                
1:48:23 PM                                                                                                                    
SENATOR  BISHOP  asked  whether  she  was  referring  to  package                                                               
stores.                                                                                                                         
                                                                                                                                
MS.  BRAWLEY  answered  yes;  it  would  specifically  relate  to                                                               
package stores.                                                                                                                 
                                                                                                                                
1:48:46 PM                                                                                                                    
MS. MORLEDGE reviewed Section 85 [highlighted in magenta].                                                                      
                                                                                                                                
     Section  85:   Solicitation  of   alcoholic  beverages;                                                                    
     purchase on  behalf of another. Amends  AS 04.16.020 to                                                                    
     set  the  penalty  ($100  violation)  for  unauthorized                                                                    
     solicitation or purchase  of alcoholic beverages. (Page                                                                    
     86)                                                                                                                        
                                                                                                                                
She  said this  section  sets  a $100  fine  for solicitation  of                                                               
alcoholic beverages.                                                                                                            
                                                                                                                                
1:49:02 PM                                                                                                                    
MS. MORLEDGE reviewed Section 86 [highlighted in green].                                                                        
                                                                                                                                
     Section  86:  Online  sale and  purchase  of  alcoholic                                                                    
     beverages. Adds a new  section AS 04.16.022 prohibiting                                                                    
     online  purchase and  sale to  Alaska consumers  unless                                                                    
     the licensee  has a winery  direct shipment  license or                                                                    
     package store shipping  endorsement and sets penalties.                                                                    
     (Pages 86-87)                                                                                                              
                                                                                                                                
She explained that  this was a new section  that prohibits online                                                               
sales of  alcohol to Alaska  customers unless they have  a winery                                                               
direct shipment license or a package store license.                                                                             
                                                                                                                                
1:49:15 PM                                                                                                                    
CHAIR REINBOLD asked  whether the fine for  purchase of alcoholic                                                               
beverages on behalf of another, such as a minor, was only $100.                                                                 
                                                                                                                                
MS. MORLEDGE answered yes; the fine would be $100.                                                                              
                                                                                                                                
SENATOR MICCICHE added that some  people have identification that                                                               
restricts  them from  purchasing alcohol,  so it  could apply  to                                                               
people  purchasing  alcohol for  those  who  are not  allowed  to                                                               
purchase alcohol.                                                                                                               
                                                                                                                                
CHAIR REINBOLD asked why the fine was set so low.                                                                               
                                                                                                                                
MS.  BRAWLEY clarified  that this  section  refers to  purchasing                                                               
alcohol  for  another adult.  Purchasing  alcohol  for minors  is                                                               
covered  under another  section.  She  related her  understanding                                                               
that this also would involve the  "barfly" sitting at the bar and                                                               
soliciting people to buy drinks for them to increase sales.                                                                     
                                                                                                                                
1:50:45 PM                                                                                                                    
SENATOR  MICCICHE  pointed out  that  members  will see  how  the                                                               
pieces line up and make sense during the presentation.                                                                          
                                                                                                                                
CHAIR  REINBOLD offered  her belief  that  the technical  details                                                               
were  important  so  members  can   watch  for  them  during  the                                                               
presentation, which would be more of a broad overview.                                                                          
                                                                                                                                
1:51:28 PM                                                                                                                    
MS. MORLEDGE agreed it was confusing  to go through the bill in a                                                               
linear fashion. She again reviewed Section 86.                                                                                  
                                                                                                                                
She reviewed Section 87 [highlighted in magenta].                                                                               
                                                                                                                                
     Section  87:  Illegal  presence on  premises  involving                                                                    
     alcoholic  beverages.  Amends  AS 04.16.025(a)  to  add                                                                    
     statutory  references to  all penalties  involving sale                                                                    
     without a license.                                                                                                         
                                                                                                                                
She said that this adds cross references to other penalty                                                                       
sections.                                                                                                                       
                                                                                                                                
1:52:12 PM                                                                                                                    
MS. MORLEDGE reviewed Section 88 [highlighted in magenta].                                                                      
                                                                                                                                
     Section  88:  Prohibited  conduct relating  to  drunken                                                                    
     persons.  Amends   AS  04.16.030  to   change  existing                                                                    
     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   adds  misdemeanor   penalty   for  licensee   who                                                                    
     knowingly  allows employees  to  violate this  section.                                                                    
     (Page 87)                                                                                                                  
                                                                                                                                
She said that this provision adds an administrative penalty for                                                                 
overserving a drunken person and a misdemeanor penalty for a                                                                    
licensee who knowingly allows it.                                                                                               
                                                                                                                                
1:52:29 PM                                                                                                                    
MS. MORLEDGE reviewed Sections 89-90 [highlighted in yellow].                                                                   
                                                                                                                                
     Section  88:  Prohibited  conduct relating  to  drunken                                                                    
     persons.  Amends   AS  04.16.030  to   change  existing                                                                    
     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   adds  misdemeanor   penalty   for  licensee   who                                                                    
     knowingly  allows employees  to  violate this  section.                                                                    
     (Page 87)                                                                                                                  
                                                                                                                                
     Section 89:  Possession of ingredients for  homebrew in                                                                    
     certain areas. Amends AS  04.16.035 to change statutory                                                                    
     reference to  all local  option areas,  consistent with                                                                    
     AS   04.21.025  restricting   private  manufacture   of                                                                    
     alcohol in all local option areas. (Page 88)                                                                               
                                                                                                                                
She explained that this updates the local option.                                                                               
                                                                                                                                
1:52:40 PM                                                                                                                    
SENATOR BISHOP asked the sponsor whether Section 89 was existing                                                                
law.                                                                                                                            
                                                                                                                                
SENATOR  MICCICHE deferred  to  Ms. Brawley  and  made a  general                                                               
comment on the section. A  general concept throughout the bill is                                                               
to create greater personal  responsibility. Currently, the server                                                               
is   the  only   one  charged   but  this   bill  increases   the                                                               
accountability for the licensee as well.                                                                                        
                                                                                                                                
1:53:35 PM                                                                                                                    
SENATOR BISHOP  questioned whether this wasn't  overreach because                                                               
everyone  has sugar,  a can  of fruit  juice and  yeast in  their                                                               
cupboard.                                                                                                                       
                                                                                                                                
MS. BRAWLEY said  that this was existing law that  is specific to                                                               
local option  areas. In  those areas, people  are not  allowed to                                                               
home  brew. She  related her  understanding that  law enforcement                                                               
did not intend to arrest a  grandmother who has likes to bake and                                                               
has  yeast. Their  intent is  to build  a case  when someone  has                                                               
already  flushed illegally  produced alcohol  down the  drain but                                                               
there are  clearly other ingredients  present. This  would relate                                                               
to all five local option areas and clarify existing law.                                                                        
                                                                                                                                
1:54:56 PM                                                                                                                    
CHAIR REINBOLD  asked for further  clarification on  the legality                                                               
of home brewing.                                                                                                                
                                                                                                                                
MS. BRAWLEY  answered that  this provision  is specific  to local                                                               
option areas, which are the  dry communities that have decided to                                                               
restrict  all  alcohol  licenses  or to  restrict  possession  of                                                               
alcohol. This law would not apply to all communities.                                                                           
                                                                                                                                
CHAIR REINBOLD  related her understanding  that this  would apply                                                               
to dry communities and not to Anchorage.                                                                                        
                                                                                                                                
MS. BRAWLEY answered  yes. She said that home brew  is allowed in                                                               
areas that have not adopted a local option.                                                                                     
                                                                                                                                
CHAIR REINBOLD  asked how  the server would  know if  someone was                                                               
drunk  and that  it  was  not the  responsibility  of the  person                                                               
consuming. She  thought it  was a lot  of responsibility  for the                                                               
server.                                                                                                                         
                                                                                                                                
SENATOR MICCICHE  responded that the  current law does  not allow                                                               
servers  to  serve  a  drunken person,  which  applies  to  every                                                               
licensee. Often  times the  server will turn  the other  way. The                                                               
licensee is  the place  where the buck  stops. This  would enable                                                               
law  enforcement to  address an  establishment that  has frequent                                                               
incidents of serving drunken customers.                                                                                         
                                                                                                                                
1:56:50 PM                                                                                                                    
MS. MORLEDGE reviewed Sections 91-93 [highlighted in magenta].                                                                  
                                                                                                                                
     Section  91:  Access  of drunken  persons  to  licensed                                                                    
     premises.  Adds  new  subsections to  AS  04.16.040  to                                                                    
     relocate and  change the penalty for  prohibited access                                                                    
     by a drunken person. (Page 88)                                                                                             
                                                                                                                                
     Section  92:  Obligation  to  enforce  restrictions  in                                                                    
     licensed   premises.  Adds   new   subsections  to   AS                                                                    
     04.16.045  (b-c) to  relocate  and  change penalty  for                                                                    
     permitting consumption not  authorized under a license.                                                                    
     (Page 88)                                                                                                                  
                                                                                                                                
     Section  93:  Access  of persons  with  restriction  on                                                                    
     purchasing  alcohol.  Amends  AS  04.16.047  to  add  a                                                                    
     reference to penalty for                                                                                                   
                                                                                                                                
She explained these provisions add references to existing                                                                       
penalties in AS 04.16.160.                                                                                                      
                                                                                                                                
1:57:17 PM                                                                                                                    
MS. MORLEDGE reviewed Sections 94-97 [highlighted in yellow] on                                                                 
page 16 of the sectional analysis of SB 52.                                                                                     
                                                                                                                                
     Section 94:  Access to persons  under the age of  21 to                                                                    
     licensed  premises. Amends  AS  04.16.049(a)  to add  a                                                                    
     reference to  restaurant endorsement and  club license.                                                                    
     (Pages 88-89)                                                                                                              
                                                                                                                                
     Section 95:  Access to persons  under the age of  21 to                                                                    
     licensed  premises.  Amends   AS  04.16.049(c)  to  add                                                                    
     additional  license  types  allowed  to  have  underage                                                                    
     persons  on  premises as  employees,  ages  16 and  17,                                                                    
     provided they are not serving alcohol. (Page 89)                                                                           
                                                                                                                                
     Section 96:  Access to persons  under the age of  21 to                                                                    
     licensed  premises.  Amends   AS  04.16.049(d)  to  add                                                                    
     additional  license  types  allowed  to  have  underage                                                                    
     persons on premises as  employees, ages 18-20, provided                                                                    
     they are not serving alcohol. (Pages 89-90)                                                                                
                                                                                                                                
She  said  that  these  provisions  address  minors  on  licensed                                                               
premises,  adding  references  to  endorsements,  adding  license                                                               
types, and clarifying that minors  can be on licensed premises of                                                               
common carrier dispensaries as long as  they are not served or do                                                               
not consume alcohol.                                                                                                            
                                                                                                                                
1:57:43 PM                                                                                                                    
MS. MORLEDGE  reviewed Sections 98  [highlighted in  magenta] and                                                               
Section 99 [highlighted in yellow].                                                                                             
                                                                                                                                
     Section  98:   Furnishing  or  delivery   of  alcoholic                                                                    
     beverages to persons  under the age of  21. Repeals and                                                                    
     reenacts   AS  04.16.051(d)   to   define  offense   of                                                                    
     furnishing or delivering alcohol to a minor. (Page 90)                                                                     
                                                                                                                                
     Section  99:   Furnishing  or  delivery   of  alcoholic                                                                    
     beverages to  persons under the  age of 21. Adds  a new                                                                    
     subsection  to   AS  04.16.051  (e)  to   relocate  the                                                                    
     existing C felony penalty  for furnishing or delivering                                                                    
     to  a  minor  by  a person,  for  situations  involving                                                                    
     serious  harm, repeat  offenses, and  if the  violation                                                                    
     occurs in a local option area. (Pages 90-91)                                                                               
                                                                                                                                
She said that these provisions maintain the existing                                                                            
penalties for an adult furnishing a minor and reorganizes                                                                       
this section.                                                                                                                   
                                                                                                                                
MS. MORLEDGE reviewed Section 100 [highlighted in magenta].                                                                     
                                                                                                                                
     Section  100:  Furnishing  of  alcoholic  beverages  to                                                                    
     person  under the  age of  21 by  licensees. Amends  AS                                                                    
     04.16.052  to change  the penalties  for furnishing  or                                                                    
     delivering  alcohol  to  a  minor   by  a  licensee  or                                                                    
     employee,  adds administrative  penalty to  licensee if                                                                    
     an  employee  is  convicted  of  a  violation  of  this                                                                    
     section and shifts misdemeanor  penalty in AS 04.16.150                                                                    
     to  the  licensee  who knowingly  allows  employees  to                                                                    
     violate this section. (Page 91)                                                                                            
                                                                                                                                
She  said  that  this  provision adds  penalties  for  furnishing                                                               
alcoholic beverages  to minors  under the  age of  21. It  adds a                                                               
penalty if the licensee knowingly allows it.                                                                                    
                                                                                                                                
1:58:09 PM                                                                                                                    
CHAIR  REINBOLD  asked whether  the  penalty  in Section  98  and                                                               
Section 99would be a class C felony.                                                                                            
                                                                                                                                
MS.  BRAWLEY  answered  that  the   base  penalty  for  an  adult                                                               
furnishing a minor would be a  class A misdemeanor, but it can be                                                               
bumped  up  to  class  C   felony  in  some  instances,  such  as                                                               
repetitive violations in  the past five years, if  it occurred in                                                               
a local  option area, or  if the  minor causes serious  injury or                                                               
damage.  In that  instance  the adult  would  ultimately be  held                                                               
liable.                                                                                                                         
                                                                                                                                
1:58:53 PM                                                                                                                    
CHAIR  REINBOLD  said  that  she  thinks  this  is  important  to                                                               
address. She recalled  a recent case in which  an adult furnished                                                               
alcohol to a minor.                                                                                                             
                                                                                                                                
1:59:12 PM                                                                                                                    
MS. MORLEDGE reviewed Sections 101 and 102.                                                                                     
                                                                                                                                
     Section  101: Room  rental  for  purposes of  consuming                                                                    
     alcoholic  beverages. Amends  AS 04.16.055  to maintain                                                                    
     the current penalty of class  A misdemeanor for renting                                                                    
     a  room   for  the   purpose  of   providing  alcoholic                                                                    
     beverages to a person under 21 years of age. (Page 91)                                                                     
                                                                                                                                
     Section  102:  Permitting  minor to  illegally  possess                                                                    
     liquor  in  a  dwelling.   Amends  AS  04.16.057(b)  to                                                                    
     maintain current  violation and adds $500  fine. (Pages                                                                    
     91-92)                                                                                                                     
                                                                                                                                
She said  that these sections  clarify and maintain  existing law                                                               
related to renting a room  for the purpose of providing alcoholic                                                               
beverages to  a person  under 21  years of  age and  permitting a                                                               
minor to illegally possess liquor in a dwelling.                                                                                
                                                                                                                                
1:59:35 PM                                                                                                                    
MS.  MORLEDGE reviewed  Section  103 [highlighted  in green]  and                                                               
Section 104 [highlighted in magenta]  on page 17 of the sectional                                                               
analysis of SB 52.                                                                                                              
                                                                                                                                
     Section 103:  Purchase by or delivery  to persons under                                                                    
     the age of  21. Amends AS 04.16.060(e)  to require that                                                                    
     a  person under  the age  of 21  years of  age may  not                                                                    
     misrepresent their  age or  having parental  consent in                                                                    
     order to enter and remain  in a licensed premises under                                                                    
     AS 04.16.049(a)(2).                                                                                                        
                                                                                                                                
     Section 104:  Purchase by or delivery  to persons under                                                                    
     the age  of 21.  Amends AS  04.16.060 to  add penalties                                                                    
     for  violating this  section. For  adults (at  least 21                                                                    
     years  of age)  penalty cannot  be reduced.  For minors                                                                    
     (under  21 years  of  age) penalty  can  be reduced  if                                                                    
     youth completes  an alcohol safety action  program or a                                                                    
     community  diversion panel.  Applies  the same  penalty                                                                    
     changes  as previously  enacted  for  AS 04.16.049  and                                                                    
     04.16.050 for minors. (Page 92)                                                                                            
                                                                                                                                
She  said  that this  would  reorganize  the sections  on  minors                                                               
purchasing  or attempting  to purchase  alcohol. It  would add  a                                                               
$500  penalty  for   youth  and  adults.  It   would  provide  an                                                               
opportunity  for  youth  to  reduce  this fine  to  $50  if  they                                                               
complete an  alcohol safety action  program, which is  similar to                                                               
minor consuming or minor on premises.                                                                                           
                                                                                                                                
2:00:08 PM                                                                                                                    
MS. MORLEDGE  reviewed Sections 105  [highlighted in  yellow] and                                                               
Section 106 [highlighted in magenta].                                                                                           
                                                                                                                                
     Section 105:  Consumption at  school events.  Amends AS                                                                    
     04.16.080  to  edit  the  title  for  the  section  and                                                                    
     prohibits  alcohol sales  at a  school event  if it  is                                                                    
     expected to  attract attendees under  21 years  of age.                                                                    
     (Pages 92-93)                                                                                                              
                                                                                                                                
     Section 106:  Consumption at  school events.  Amends AS                                                                    
     04.16.080 by adding two new  subsections (b) and (c) to                                                                    
     define the  penalty for  violating this  section. (Page                                                                    
     93)                                                                                                                        
                                                                                                                                
She said that these sections  clarify that alcohol cannot be sold                                                               
at school  events if the event  is expected to attract  minors. A                                                               
penalty is defined.                                                                                                             
                                                                                                                                
MS.  MORLEDGE  reviewed  Sections   107  [not  highlighted],  and                                                               
Sections 108-110 [highlighted in magenta].                                                                                      
                                                                                                                                
     Section  107: Prohibition  of bottle  clubs. Amends  AS                                                                    
     04.16.090(c)     clarifies     the    definition     of                                                                    
     "consideration" in relation to bottle clubs. (Page 93)                                                                     
                                                                                                                                
     Section  108: Prohibition  of  bottle  clubs. Adds  new                                                                    
     subsections to  AS 04.16.090 (d-e) to  define the crime                                                                    
     of maintaining  a bottle club, relocates  and maintains                                                                    
     current penalty. (Page 93)                                                                                                 
                                                                                                                                
     Section  109:  Sale   of  certain  alcoholic  beverages                                                                    
     prohibited.  Amends AS  04.16.110 to  define sale  of a                                                                    
     prohibited alcoholic beverage,  relocates and maintains                                                                    
     current penalty. (Page 93)                                                                                                 
                                                                                                                                
     Section  110:  Removal  or  introduction  of  alcoholic                                                                    
     beverages.  Amends AS  04.16.120 to  define removal  or                                                                    
     introduction of  alcoholic beverages, sets  penalty and                                                                    
     exemptions. (Page 93-94)                                                                                                   
                                                                                                                                
She said that these provisions establish penalties pertaining to                                                                
the prohibition of bottle clubs and the sale of certain                                                                         
alcoholic beverages.                                                                                                            
                                                                                                                                
2:00:27 PM                                                                                                                    
MS. MORLEDGE reviewed Sections 111-113 [highlighted in magenta].                                                                
                                                                                                                                
     Sections  111-113: Alcoholic  beverages transported  by                                                                    
     common  carrier. Repeals  and reenacts  AS 04.16.125(a)                                                                    
     to allow  for delivery to a  person over the age  of 21                                                                    
     and adds  clarifying language to how  the delivery must                                                                    
     be   labeled.   Maintains  penalty   for   unauthorized                                                                    
     transportation   of  alcoholic   beverages  by   common                                                                    
     carrier   into   a   local  option   area   and   makes                                                                    
     noncompliance a violation. (Page 94-95)                                                                                    
                                                                                                                                
She said that this reorganizes sections related to transporting                                                                 
alcoholic beverages to local option areas and defines penalties.                                                                
                                                                                                                                
2:00:46 PM                                                                                                                    
MS. MORLEDGE reviewed Sections 114-119 and Sections 121, 122                                                                    
[highlighted in magenta].                                                                                                       
                                                                                                                                
     Section 114: Stock confined  to licensed premises. Adds                                                                    
     a  new  subsection  to  AS 04.16.130  (c)  to  set  the                                                                    
     penalty   for   unauthorized   storage   of   alcoholic                                                                    
     beverages. It is a violation. (Page 95)                                                                                    
                                                                                                                                
     Section   115:  Sale   or   consumption  of   alcoholic                                                                    
     beverages in  a warehouse.  Amends AS 04.16.140  to add                                                                    
     new subsections (b-c) to set  the penalty for consuming                                                                    
     alcoholic beverages in a warehouse.  It is a violation.                                                                    
     (Page 95)                                                                                                                  
                                                                                                                                
     Section  116:  Licensee   responsible  for  violations.                                                                    
     Amends AS 04.16.150  to set the penalty  for failure to                                                                    
     ensure compliance as a violation. (Page 95)                                                                                
                                                                                                                                
     Section  117:   Restriction  on   purchasing  alcoholic                                                                    
     beverages. Amends  AS 04.16.160 to add  new subsections                                                                    
     (c-d)  to  set  the  penalty  for  noncompliance  on  a                                                                    
     restriction of  purchasing an  alcoholic beverage  at a                                                                    
     class A misdemeanor. (Page 95)                                                                                             
                                                                                                                                
     Section 118:  Source of alcoholic beverages.  Amends AS                                                                    
     04.16.170 to exempt winery  direct shipment license and                                                                    
     maintains  current   penalty  for  sale   of  alcoholic                                                                    
     beverages from or to an unlicensed person. (Page 95)                                                                       
                                                                                                                                
     Section 119:  Source of alcoholic beverages.  Amends AS                                                                    
     04.16.170  to  add new  subsections  (c-d)  to set  the                                                                    
     penalty  for   violating  this   section  as   class  A                                                                    
     misdemeanor. (Page 95-96)                                                                                                  
                                                                                                                                
     Section  121:  Restrictions  on purchase  and  sale  of                                                                    
     alcoholic  beverages. Amends  AS 04.16.172  to add  new                                                                    
     subsections (b-c)  to maintain the current  penalty for                                                                    
     violating this section as a  class A misdemeanor. (Page                                                                    
     96)                                                                                                                        
                                                                                                                                
     Section 122:  Furnishing alcoholic beverages in  aid of                                                                    
     gambling  enterprise. Amends  AS 04.16.175  to add  new                                                                    
     subsections that  maintain the current penalty  for the                                                                    
     crime of furnishing  an alcoholic beverage in  aid of a                                                                    
     gambling enterprise. (Page 96)                                                                                             
                                                                                                                                
She said that these provisions define penalties for violations                                                                  
of these sections.                                                                                                              
                                                                                                                                
2:01:00 PM                                                                                                                    
MS. MORLEDGE reviewed Section 120 [highlighted in yellow].                                                                      
                                                                                                                                
     Section  120:  Restrictions  on purchase  and  sale  of                                                                    
     alcoholic  beverages. Amends  AS 04.16.172  to renumber                                                                    
     and  a statutory  references to  the new  license types                                                                    
     and  maintains current  penalty for  licensee obtaining                                                                    
     alcoholic  beverages from  an unlicensed  seller. (Page                                                                    
     96)                                                                                                                        
                                                                                                                                
She said that Section 120 renumbers license types.                                                                              
                                                                                                                                
2:01:07 PM                                                                                                                    
MS. MORLEDGE reviewed Sections 121-122 [highlighted in magenta].                                                                
                                                                                                                                
     Section  121:  Restrictions  on purchase  and  sale  of                                                                    
     alcoholic  beverages. Amends  AS 04.16.172  to add  new                                                                    
     subsections (b-c)  to maintain the current  penalty for                                                                    
     violating this section as a  class A misdemeanor. (Page                                                                    
     96)                                                                                                                        
                                                                                                                                
     Section 122:  Furnishing alcoholic beverages in  aid of                                                                    
     gambling  enterprise. Amends  AS 04.16.175  to add  new                                                                    
     subsections that  maintain the current penalty  for the                                                                    
     crime of furnishing  an alcoholic beverage in  aid of a                                                                    
     gambling enterprise. (Page 96)                                                                                             
                                                                                                                                
She said  that these sections  define penalties  for restrictions                                                               
on the  purchase and sale  of alcoholic beverages  and furnishing                                                               
alcoholic beverages in aid of gambling.                                                                                         
                                                                                                                                
2:01:18 PM                                                                                                                    
CHAIR REINBOLD asked what types  of gambling operations are found                                                               
in Alaska.                                                                                                                      
                                                                                                                                
MS. BRAWLEY clarified  that this pertains to  an illegal gambling                                                               
operation providing alcohol.                                                                                                    
                                                                                                                                
2:01:51 PM                                                                                                                    
MS. MORLEDGE reviewed Section 123-125 [highlighted in magenta].                                                                 
                                                                                                                                
     Section  123:   Penalties  for  violation.   Amends  AS                                                                    
     04.16.180(b) to add  statutory references to prohibited                                                                    
     conduct  related  to  drunken  persons  and  furnishing                                                                    
     alcoholic beverages to  persons under the age  of 21 by                                                                    
     licensees. (Pages 96-97)                                                                                                   
                                                                                                                                
     Section  124:   Penalties  for  violation.   Amends  AS                                                                    
     04.16.180(b) to add  definition for "conviction." (Page                                                                    
     97)                                                                                                                        
                                                                                                                                
     Section  125:   Penalties  for  violation.   Amends  AS                                                                    
     04.16.180   to   add   new  subsections   (f-g),   adds                                                                    
     clarification   that    licensees   are    subject   to                                                                    
     administrative  penalties  imposed  by  the  board  for                                                                    
     violations of  AS 04.16.030 and AS  04.16.052, and adds                                                                    
     mitigating circumstances for licensees. (Pages 97-98)                                                                      
                                                                                                                                
She said  these sections add  cross references  to administrative                                                               
penalties  for overserving,  serving  a minor,  and allowing  for                                                               
mitigating circumstances  if the licensee demonstrates  that they                                                               
have been a responsible operator.                                                                                               
                                                                                                                                
2:02:21 PM                                                                                                                    
MS. MORLEDGE reviewed Sections 126-129 [highlighted in yellow].                                                                 
                                                                                                                                
     Section  126-129: Forfeiture  and  seizures. Amends  AS                                                                    
     04.16.220  to  renumber  and  cross-reference  the  new                                                                    
     license types. (Pages 98-100)                                                                                              
                                                                                                                                
2:02:43 PM                                                                                                                    
MS.  MORLEDGE referred  to Chapter  21,  General Provisions.  She                                                               
reviewed Section  130 [highlighted  in green] on  page 18  of the                                                               
sectional analysis of SB 52.                                                                                                    
                                                                                                                                
     Section  130:  Keg  registration. Adds  a  new  section                                                                    
     04.21.012  establishing  a   keg  registration  process                                                                    
     including    proof    of   age,    registration    form                                                                    
     requirements, identification tags,  and establishes the                                                                    
     penalties   for  possession   and  sale   of  alcoholic                                                                    
     beverages in an unregistered keg. (Pages 100-101)                                                                          
                                                                                                                                
She said that  this section adds keg registration  as a statewide                                                               
requirement.                                                                                                                    
                                                                                                                                
MS.  BRAWLEY said  that this  was one  of the  important ways  to                                                               
reduce underage drinking by holding  adults accountable. She said                                                               
that this is current law in Anchorage and Juneau.                                                                               
                                                                                                                                
2:03:23 PM                                                                                                                    
MS. MORLEDGE reviewed Sections 131-132 [highlighted in yellow].                                                                 
                                                                                                                                
     Section 131-132:  Civil liability of  persons providing                                                                    
     alcoholic  beverages. Amends  AS 04.21.020  to renumber                                                                    
     and cross-reference the new  license types. (Pages 101-                                                                    
     102)                                                                                                                       
                                                                                                                                
She clarified that the text  shows the highlighting in green, but                                                               
it should be yellow because it pertains to existing law.                                                                        
                                                                                                                                
2:03:46 PM                                                                                                                    
MS.  MORLEDGE reviewed  Section 133-135  [highlighted in  yellow]                                                               
and Section 136 [highlighted in magenta].                                                                                       
                                                                                                                                
     Section 133:  Alcohol server education  course. Repeals                                                                    
     and  reenacts AS  04.21.025, which  requires a  license                                                                    
     holder and  their employees to  check ID's,  to include                                                                    
     the holder  of a  conditional contractor  permit. (Page                                                                    
     102)                                                                                                                       
                                                                                                                                
     Section  134: Alcohol  server education  course. Amends                                                                    
     section  AS 04.21.025(b)  to require  permittees (along                                                                    
     with  licensees, agents,  and  employees)  to keep  the                                                                    
     alcohol server  education card on the  licensed premise                                                                    
     during working hours. (Page 102)                                                                                           
                                                                                                                                
     Section  135: Alcohol  server education  course. Amends                                                                    
     section  AS 04.21.025(c)  to require  permittees (along                                                                    
     with  licensees, agents,  and  employees)  to take  and                                                                    
     pass an alcohol server  education course within 30 days                                                                    
     after   being   licensed,   permitted,   or   employed.                                                                    
     Additionally, a person may not  sell or serve alcoholic                                                                    
     beverages, or check  the ID of a patron  at a permitted                                                                    
     event  unless that  person  possesses  a valid  alcohol                                                                    
     server card. (Pages 102-103)                                                                                               
                                                                                                                                
     Section  136: Alcohol  server education  course. Amends                                                                    
     AS  04.21.025  to  add  new  subsections  (f-h),  which                                                                    
     exempts  manufacturer license  holders from  the server                                                                    
     alcohol education  course requirement unless  they also                                                                    
     hold a sampling endorsement  and defines the offense of                                                                    
     failure to comply and sets  the penalty as a violation.                                                                    
     (Page 103)                                                                                                                 
                                                                                                                                
She said that these provisions  address alcohol server education,                                                               
requiring  servers at  permitted  events  to have  identification                                                               
cards, and  requiring all  licensees serving  the public  to have                                                               
server education. It provides a penalty for failure to comply.                                                                  
                                                                                                                                
2:04:02 PM                                                                                                                    
MS. MORLEDGE reviewed Section 137 and 139 [highlighted in                                                                       
yellow].                                                                                                                        
                                                                                                                                
     Section 137: Proof  of age and of  not being restricted                                                                    
     from   purchasing   alcoholic  beverages.   Amends   AS                                                                    
     04.21.050  to  renumber  references to  license  types.                                                                    
     (Pages 103-104)                                                                                                            
                                                                                                                                
     Section  139: Posting  of  warning  signs. Repeals  and                                                                    
     reenacts  AS 04.21.065(a)  to  update  the license  and                                                                    
     permit types  required to post  warning signs  and adds                                                                    
     statutory references. (Pages 104-105)                                                                                      
                                                                                                                                
MS. MORLEDGE referred to Section 138 [highlighted in magenta].                                                                  
                                                                                                                                
     Section  138:   Warehousing  of   alcoholic  beverages.                                                                    
     Amends AS 04.21.060 to add  a new subsection (b), which                                                                    
     define the  penalty of violating this  section and sets                                                                    
     it at a violation. (Page 104)                                                                                              
                                                                                                                                
She said this provision sets the penalty at a violation.                                                                        
                                                                                                                                
2:04:20 PM                                                                                                                    
MS. MORLEDGE reviewed Section 140 [highlighted in magenta].                                                                     
                                                                                                                                
     Section 140:  Fines and other criminal  penalties. Adds                                                                    
     a new section  AS 04.21.072 to set  penalties for other                                                                    
     violations, misdemeanors or  felonies, unless otherwise                                                                    
     specified.  Directs the  Supreme Court  to establish  a                                                                    
     bail  schedule and  places requirements  on the  courts                                                                    
     for   suspending  fines   or  imposition/execution   of                                                                    
     sentence. (Pages 105-106)                                                                                                  
                                                                                                                                
She said  that this  section sets the  default penalty  for minor                                                               
offenses in  this title at a  $250 fine and directs  the court to                                                               
set a bail schedule.                                                                                                            
                                                                                                                                
2:04:32 PM                                                                                                                    
MS. MORLEDGE reviewed Section 141 [highlighted in yellow].                                                                      
                                                                                                                                
     Section 141:  Court records for persons  under 21 years                                                                    
     of  age.   Amends  AS   04.21.078  to   add  additional                                                                    
     statutory  reference to  violations of  AS 04.16.060                                                                       
     Purchase by  or delivery  to persons  under the  age of                                                                    
     21. (Page 106)                                                                                                             
                                                                                                                                
She said  that this section  adds references to  minor purchasing                                                               
or attempting to purchase as an  offense that is not published on                                                               
CourtView for minors.                                                                                                           
                                                                                                                                
2:04:55 PM                                                                                                                    
CHAIR REINBOLD asked for the reason.                                                                                            
                                                                                                                                
SENATOR MICCICHE  answered that this  law passed [in  Senate Bill                                                               
165]. The  idea was to  reduce the record for  underage drinking.                                                               
For example, a person could be at  a high school party and not be                                                               
drinking, but the police officer  might arrest everyone for minor                                                               
consuming, and  it could  be on their  record forever.  A student                                                               
with a  4.0 grade  average could apply  to a  competitive college                                                               
and  be declined  due to  the  minor consuming  record. This  was                                                               
addressed  by  setting  the  violation at  a  higher  amount  but                                                               
allowing  it to  be  reduced to  $50 if  the  person attended  an                                                               
alcohol counseling class.                                                                                                       
                                                                                                                                
2:05:59 PM                                                                                                                    
CHAIR  REINBOLD asked  whether the  minor would  still receive  a                                                               
violation.                                                                                                                      
                                                                                                                                
SENATOR MICCICHE answered yes.                                                                                                  
                                                                                                                                
2:06:18 PM                                                                                                                    
SENATOR BIRCH related  his understanding that if  someone was not                                                               
consuming  but gave  minors who  were consuming  a ride  home the                                                               
driver  would not  be charged.  He  thought it  was to  encourage                                                               
sober kids  to give rides. He  said it might have  been something                                                               
the Municipality of Anchorage was doing.                                                                                        
                                                                                                                                
SENATOR MICCICHE answered  that it was not part of  this bill. He                                                               
said he  could research it.  In response to Senator  Reinbold, he                                                               
confirmed that he sponsored Senate Bill 165 in 2016.                                                                            
                                                                                                                                
2:07:24 PM                                                                                                                    
MS. MORLEDGE  reviewed Sections  142-143 [highlighted  in yellow]                                                               
and Section 144 [highlighted in green].                                                                                         
                                                                                                                                
     Section 142: Definitions. Amends AS 04.21.080(b)(6) to                                                                     
     add permit holders and license holders. (Page 106)                                                                         
                                                                                                                                
      Section 143: Definitions. Amends AS 04.21.080(b)(15)                                                                      
     to add endorsement to a licensed premises. (Page 106)                                                                      
                                                                                                                                
     Section  144: Definitions.  Amends  AS 04.21.080(b)  to                                                                    
     add  a new  paragraph  defining  bona fide  restaurant,                                                                    
     brewed  beverage,   calendar  year,   cider,  distilled                                                                    
     spirit, golf  course, kombucha,  mead, sake,  and wine.                                                                    
     (Pages 106-107)                                                                                                            
                                                                                                                                
She said that Sections 142  and 143 were existing definitions and                                                               
Section 144 contained new definitions.                                                                                          
                                                                                                                                
2:07:51 PM                                                                                                                    
SENATOR BISHOP asked for the alcohol content for kombucha.                                                                      
                                                                                                                                
MS. BRAWLEY  responded that  federal law  and state  law regulate                                                               
alcoholic  beverages containing  .5 alcohol  by volume.  Kombucha                                                               
tends to  be below that  so this  bill would contemplate  that if                                                               
someone wanted to make higher  potency kombucha, the person would                                                               
need to obtain a brewer's  license. She related her understanding                                                               
that current producers of kombucha  stay below that limit because                                                               
they do not intend to produce an alcoholic beverage.                                                                            
                                                                                                                                
2:08:42 PM                                                                                                                    
MS. MORLEDGE reviewed Sections 145-154 [highlighted in yellow].                                                                 
                                                                                                                                
Changes to Other Titles                                                                                                         
                                                                                                                                
     Section  145: Definitions.  Amends AS  05.15.690(48) to                                                                    
     define vendor to include an  establishment that holds a                                                                    
     beverage  dispensary  license  under  the  new  license                                                                    
     type. (Pages 107-108)                                                                                                      
                                                                                                                                
     Section  146-154: Amendments  to various  other titles.                                                                    
     Amends references  to Title 4  in Titles 9, 11,  12 and                                                                    
     18. (Pages 108-113)                                                                                                        
                                                                                                                                
She said that these sections relate to renumbering license types                                                                
and cross references.                                                                                                           
                                                                                                                                
2:08:59 PM                                                                                                                    
MS. MORLEDGE reviewed Section 155 [highlighted in green].                                                                       
                                                                                                                                
     Section  155: Winery  direct  shipment tax;  statement;                                                                    
     audit.  Adds a  new section  AS 43.60.060  to establish                                                                    
     tax  collection on  direct wine  shipments from  out of                                                                    
     state  business  holding   this  license  and  outlines                                                                    
     requirements for the Department of Revenue. (Page 113)                                                                     
                                                                                                                                
She said that this section allows the Department of Revenue to                                                                  
collect alcoholic beverage excise taxes from out-of-state                                                                       
sellers with a winery direct shipment license.                                                                                  
                                                                                                                                
2:09:09 PM                                                                                                                    
MS. MORLEDGE reviewed Sections 156-157 [highlighted in yellow].                                                                 
                                                                                                                                
     Section 156: Exemptions.  Amends statutory reference to                                                                    
     Title 4 for the new license section. (Pages 113- 114)                                                                      
                                                                                                                                
     Section   157:   Definitions.  Amends   the   statutory                                                                    
     reference   found  in   the  definition   of  "business                                                                    
     proprietor." (Page 114)                                                                                                    
                                                                                                                                
She said these sections address renumbering of license types.                                                                   
                                                                                                                                
2:09:17 PM                                                                                                                    
CHAIR REINBOLD asked for further clarification on Section 155.                                                                  
She said it was an important concept.                                                                                           
                                                                                                                                
SENATOR MICCICHE answered that this would allow the department                                                                  
to collect the same tax that people would pay in Alaska. This                                                                   
would support  local businesses who  sell wine and  can currently                                                               
be undercut. This  would also provide a record of  who would have                                                               
a  license to  sell in  Alaska so  a minor  or someone  in a  dry                                                               
community cannot order online.                                                                                                  
                                                                                                                                
2:10:11 PM                                                                                                                    
MS. MORLEDGE reviewed Section 158.                                                                                              
                                                                                                                                
     Section 158: Adds  a new section to  the uncodified law                                                                    
     of  the State  of Alaska,  adding a  Direct Court  Rule                                                                    
     Amendment, amending  Rule 17(h)  Alaska Rules  of Minor                                                                    
     Offense Procedure,  to add  AS 04.16.060(g)  to joinder                                                                    
     limits. (Page 114)                                                                                                         
                                                                                                                                
She said that this would address court rules for minor                                                                          
purchasing or attempting to purchase alcohol.                                                                                   
                                                                                                                                
2:10:27 PM                                                                                                                    
MS. MORLEDGE reviewed Sections 159-162.                                                                                         
                                                                                                                                
     Section 159-160:  Repeals various sections of  AS 04.11                                                                    
     amended by the sections of this bill. (Page 114)                                                                           
                                                                                                                                
     Section  161: Repeals  the  AS  04.09.270(f) to  sunset                                                                    
     licenses  issued as  recreational site  licenses before                                                                    
     the effective  date of the  legislation. The  repeal is                                                                    
     effective 1/1/2029. (Page 114)                                                                                             
                                                                                                                                
     Section  162: Repeals  the transition  sections (165  &                                                                    
     166) of this legislation on 1/1/2021. (Page 114)                                                                           
                                                                                                                                
She said that these sections address repeals, including                                                                         
sunset provisions and transition provisions.                                                                                    
                                                                                                                                
MS. MORLEDGE reviewed Sections 163.                                                                                             
                                                                                                                                
                                                                                                                                
     Section   163:  Applicability   section  for   offenses                                                                    
     committed  on or  after the  effective date  of certain                                                                    
     sections. (Pages 114-115)                                                                                                  
                                                                                                                                
She said that changes to penalties are not retroactive.                                                                         
                                                                                                                                
MS. MORLEDGE reviewed Sections 164-167 [not highlighted].                                                                       
                                                                                                                                
     Section  164:  Adds a  new  section  to uncodified  law                                                                    
     regarding  transition.  The  ABC  board  may  begin  to                                                                    
     immediately   implement  certain   sections  that   are                                                                    
     effective 1/1/2021  through applications under  the new                                                                    
     licensing structure  and collecting  fees at  the newly                                                                    
     established amounts. [Effective 9/1/2020] (Page 115)                                                                       
                                                                                                                                
     Section 165:  Adds a new  section to uncodified  law to                                                                    
     provide  transition  language  for  the  ABC  board  to                                                                    
     convert certain licenses under this  Act within 90 days                                                                    
     of the effective date of this section. (Pages 115-117)                                                                     
                                                                                                                                
     Section 166:  Adds a new  section to uncodified  law to                                                                    
     provide transition language for  the ABC board to issue                                                                    
     a seasonal  restaurant or eating place  tourism license                                                                    
     before  new section  AS 04.09.350,  seasonal restaurant                                                                    
     or eating  place tourism license, takes  effect. (Pages                                                                    
     117-119                                                                                                                    
                                                                                                                                
     Section   167:  Adds   transition   language  for   the                                                                    
     department to promulgate regulations.                                                                                      
                                                                                                                                
She said that SB 164-167 provide transition language.                                                                           
                                                                                                                                
2:10:57 PM                                                                                                                    
MS. MORLEDGE reviewed Sections 168-170.                                                                                         
                                                                                                                                
     Section  168:  Effective  dates   for  sections  to  be                                                                    
     implemented immediately.                                                                                                   
                                                                                                                                
     Section  169: Effective  dates  for  board to  initiate                                                                    
     application process  and collect new fees  for licenses                                                                    
     beginning 1/1/2021.                                                                                                        
                                                                                                                                
     Section  170: Except  as provided  elsewhere, effective                                                                    
     date of this Act is 1/1/2021                                                                                               
                                                                                                                                
She said that these sections provide for an immediate effective                                                                 
date for some sections, but most have an effective date of                                                                      
January 1, 2021.                                                                                                                
                                                                                                                                
2:11:42 PM                                                                                                                    
CHAIR REINBOLD opened public testimony on SB 52.                                                                                
                                                                                                                                
2:11:54 PM                                                                                                                    
KAYLA  GREEN, representing  herself, Eagle  River, Alaska,  spoke                                                               
about how  important SB 52 was  for her community. She  said that                                                               
growing up in Chugiak and Eagle  River made her aware of how easy                                                               
it is  for youth to obtain  alcohol. She said that  penalties and                                                               
youth access  to alcohol need to  be looked at because  it simply                                                               
cannot continue to happen.                                                                                                      
                                                                                                                                
CHAIR REINBOLD said  she appreciated Ms. Green's  email. She said                                                               
that the  community had a sad  incident where a drunk  driver hit                                                               
two youth on the sidewalk and seriously injured them.                                                                           
                                                                                                                                
2:13:08 PM                                                                                                                    
ROBIN  MINARD,  Chief  Communication, Mat-Su  Health  Foundation,                                                               
Wasilla, spoke  in support  of SB  52. She  said that  they share                                                               
ownership  in  Mat-Su  Regional Medical  Center  and  invest  the                                                               
profits from that  partnership into the community  to improve the                                                               
health  and  wellness  of  Alaskans   in  the  Mat-Su  area.  The                                                               
foundation is also a founding  member of Recover Alaska, which is                                                               
a funding collaborative  that seeks to reduce the  harm caused by                                                               
alcohol across  the state. The  Mat-Su Health Foundation  and its                                                               
community   partners   conducted   a   community   health   needs                                                               
assessment, which  included data  analysis and public  polling in                                                               
24 community  forums. She said  that alcohol and  substance abuse                                                               
is  the number  one health  issue  in the  Mat-Su valley.  Mat-Su                                                               
local  police  captains  consistently  identify  the  number  one                                                               
substance abuse  problem as alcohol, and  it is a factor  in many                                                               
domestic violence  and child maltreatment crimes.  The number-one                                                               
reason  to  visit  the hospital  emergency  room  for  behavioral                                                               
health needs is alcohol-related disorders.                                                                                      
                                                                                                                                
She said  that the foundation  supports the multi-year  effort of                                                               
the stakeholder  group that  led to the  rewrite of  the outdated                                                               
statutes in Title  04. This bill would  benefit organizations and                                                               
individuals  affected by  alcohol, including  provisions designed                                                               
to help  eliminate underage drinking.  She urged members  to pass                                                               
SB 52.                                                                                                                          
                                                                                                                                
2:15:10 PM                                                                                                                    
CHAIR REINBOLD advised testifiers  that they could submit written                                                               
testimony to senate.labor.and.commerce@akleg.gov.                                                                               
                                                                                                                                
2:15:33 PM                                                                                                                    
BRIAN  OLSON, Co-Owner,  Alaska Berries,  Soldotna, said  that he                                                               
and  his wife  own  a  small winery.  He  expressed concern  with                                                               
several  aspects of  the  bill that  would  adversely affect  his                                                               
family's  winery, including  the winery  license fee.  Currently,                                                               
biennial fees  are $500  plus a  $200 filing  fee, but  under the                                                               
bill, his winery  would be subject to a 480  percent increase. He                                                               
suggested that the fees should be raised to $1,500.                                                                             
                                                                                                                                
He said that currently, the winery  is allowed to sell up to five                                                               
gallons  of wine,  or  approximately  two cases  or  one keg  per                                                               
customer.  Under the  bill, it  would be  reduced to  one. Alaska                                                               
Berries was the first and only  winery in Alaska certified by the                                                               
Department  of  Natural Resources  (DNR)  as  Alaska Grown.  Some                                                               
Alaskans  make an  annual trip  to their  winery specifically  to                                                               
stock up and these limits would be onerous.                                                                                     
                                                                                                                                
MR.  OLSON spoke  in opposition  to  endorsements, including  the                                                               
$200  proposed fee  for a  sampling endorsement  without allowing                                                               
advertising  or charging  customers a  small fee.  They currently                                                               
pay  for  one license.  Creating  multiple  permits and  licenses                                                               
would only  create more work  for the Alcoholic  Beverage Control                                                               
Board  (ABC  Board)  and  would attempt  to  fix  a  non-existent                                                               
problem.   Currently,  the   winery   is   not  prohibited   from                                                               
advertising their winery sampling and tasting room, he said.                                                                    
                                                                                                                                
He  said he  has discussed  online  sales with  Ms. Brawley.  The                                                               
proposed   change  would   prohibit  online   sales  without   an                                                               
additional  endorsement  or  fee.   Alaska  Berries  is  a  self-                                                               
distributor, which is beneficial to  a small family winery. There                                                               
are currently  four active wineries  in Alaska. He would  like to                                                               
see a  level playing field so  they can compete with  online wine                                                               
sales.  He  referred  to  a   letter  in  members'  packets  that                                                               
highlighted six issues  and his concerns about the  effect of the                                                               
proposed changes in SB 52.                                                                                                      
                                                                                                                                
CHAIR  REINBOLD offered  to read  his letter  and hold  committee                                                               
discussions.                                                                                                                    
                                                                                                                                
2:21:14 PM                                                                                                                    
CHRYSTAL  SCHOENROCK,  Owner,  4  Lands Bar  &  Liquor,  Nikiski,                                                               
testified  in   opposition  to  SB   52  because  it   would  add                                                               
unnecessary regulation  and increase business costs  to industry.                                                               
She  asked  whether  this  bill   would  increase  fees  for  bar                                                               
licenses.                                                                                                                       
                                                                                                                                
CHAIR  REINBOLD asked  her  to submit  questions  to the  sponsor                                                               
sen.peter.micciche@akleg.gov,    or   to    the   committee    at                                                               
senate.labor.and.commerce@akleg.gov.                                                                                            
                                                                                                                                
MS. SCHOENROCK said  that the state has enough laws  on the books                                                               
for the  liquor industry. She said  that the state does  not need                                                               
to complicate it. She expressed  concern that it could affect her                                                               
business,  which has  been adversely  impacted by  people leaving                                                               
the state and job reductions.                                                                                                   
                                                                                                                                
2:22:46 PM                                                                                                                    
STEPHANIE QUEEN, City Manager, City  of Soldotna, Soldotna, spoke                                                               
in support  of SB 52.  She said  that she joined  the stakeholder                                                               
group  about three  years ago  after speaking  to local  business                                                               
owners who  were affected  by the  current population  limits for                                                               
liquor   licenses.  She   explained  that   she  approached   the                                                               
stakeholder  group  with  ideas  to add  flexibility  within  the                                                               
system while  still keeping  with the  broader goals  of limiting                                                               
access  to youth,  limiting the  total number  of licensees,  and                                                               
maintaining fairness within the industry.                                                                                       
                                                                                                                                
She  offered her  belief that  several important  improvements in                                                               
the  bill  really  get  to  the heart  of  these  issues  in  her                                                               
community.  In  the Kenai  Peninsula  Borough,  one-third of  the                                                               
population  is located  in five  incorporated  cities within  the                                                               
borough.  The  majority of  the  population  falls outside  these                                                               
cities.  Currently, a  package liquor  store license  or beverage                                                               
dispensary license that is available  outside of the cities could                                                               
be bought  or transferred,  so long as  they are  located outside                                                               
the cities.  The proposed  change to  allow existing  licenses to                                                               
move  from a  borough  to a  city would  not  impact the  overall                                                               
number of licensees, but it  would give owners the flexibility to                                                               
relocate.                                                                                                                       
                                                                                                                                
She said that  the second change would allow  additional beer and                                                               
wine  licenses for  restaurants, which  are currently  limited by                                                               
population. She said  that businesses in her region  serve a much                                                               
bigger area. Current statutes allow  applicants to petition for a                                                               
public  convenience  license  by obtaining  signatures.  However,                                                               
from her  perspective and  from the  Alcohol &  Marijuana Control                                                               
Office's (AMCO)  perspective, this process is  arduous, she said.                                                               
SB 52 would provide a  new mechanism supported by the stakeholder                                                               
group  that  would  allow  a local  elected  government  body  to                                                               
petition  the  ABC  Board  with   justification  on  whether  the                                                               
additional  licenses were  appropriate.  She  offered her  belief                                                               
that this  was important  for economic  development in  the area.                                                               
She said she hoped that SB 52 would pass this year.                                                                             
                                                                                                                                
2:26:21 PM                                                                                                                    
KATIE BALDWIN-JOHNSON, Senior  Program Coordinator, Alaska Mental                                                               
Health Trust  Authority, Anchorage,  spoke in  support of  SB 52.                                                               
She read from the following prepared testimony:                                                                                 
                                                                                                                                
     The  Mental Health  Trust  Authority  (MHTA) exists  to                                                                    
     improve the  lives of beneficiaries, including  a broad                                                                    
     group  of Alaskans  with mental  illness, developmental                                                                    
     disabilities,    Alzheimer's   disease    and   related                                                                    
     dementia, traumatic  brain injuries, and  Alaskans with                                                                    
     chronic alcohol  or drug addiction.  The MHTA  has been                                                                    
     an active partner over the  years of the Title 4 reform                                                                    
     effort,  with many  partners representing  the industry                                                                    
     and public health and safety.                                                                                              
                                                                                                                                
     The  MHTA is  committed to  this bill  because it  sees                                                                    
     many public  health benefits  that directly  impact the                                                                    
     health  and   wellness  of   all  Alaskans,   and  more                                                                    
     specifically  for beneficiaries  of  the Mental  Health                                                                    
     Trust.                                                                                                                     
                                                                                                                                
     Alcohol abuse and overconsumption  is costly to Alaska.                                                                    
     The  2017 McDowell  report  commissioned  by the  trust                                                                    
     outlines those  impacts. Title 4  is outdated  and does                                                                    
     not  create  a  clear   and  consistent  framework  for                                                                    
     alcohol regulation.                                                                                                        
                                                                                                                                
     The MHTA  engaged in Title 4  reform early, recognizing                                                                    
     that  improving  the  statutes  will  have  a  positive                                                                    
     impact  on  public  health  through  changes  currently                                                                    
     included in  SB 52. Controlling and  limiting access to                                                                    
     alcohol and  controlling alcohol sales,  which prevents                                                                    
     youth from  ordering online as well  as dry communities                                                                    
     are  also included  in this  bill and  are examples  of                                                                    
     positive public health impacts.                                                                                            
                                                                                                                                
     The MHTA sees values in  making Alaska's alcohol laws a                                                                    
     clear framework  that is easier to  understand, comply,                                                                    
     and enforce.  This bill  creates a  rational regulatory                                                                    
     structure for  the state's  licensing system.  It would                                                                    
     limit youth access to  alcohol and promotes responsible                                                                    
     alcohol use  balanced with  public health  and business                                                                    
     opportunities.                                                                                                             
                                                                                                                                
     As  a  committed  partner  in  this  effort,  the  MHTA                                                                    
     respectfully  recognize  the  level of  compromise  and                                                                    
     partnership  that has  been put  into this  legislation                                                                    
     and  the hundreds  of hours  and many  years of  effort                                                                    
     bringing stakeholders to this point.                                                                                       
                                                                                                                                
     Title  04 needs  to  be  modernized and  SB  52 is  the                                                                    
     vehicle  that   provides  this  clear   framework.  The                                                                    
     legislation   before   members  represents   the   very                                                                    
     thoughtful, careful  development of how to  do this. It                                                                    
     was  developed  with  transparency and  opportunity  to                                                                    
        contribute to the final recommendations that are                                                                        
     included in this bill.                                                                                                     
                                                                                                                                
       SB 52 has garnered unprecedented support of public                                                                       
     health, public safety, and industry. She urged members                                                                     
     to support SB 52.                                                                                                          
                                                                                                                                
2:29:15 PM                                                                                                                    
SHAWN WILLIAMS,  Assistant Commissioner, Department  of Commerce,                                                               
Anchorage, said  the department  would like  to ensure  that this                                                               
bill  does   not  increase  the  regulatory   burden  on  alcohol                                                               
licensees.  He expressed  concern that  the investigative  arm of                                                               
the Alcohol  & Marijuana Control  Office may overreach  at times.                                                               
The department suggests prorating new liquor licenses, he said.                                                                 
                                                                                                                                
CHAIR REINBOLD asked  him to submit the  department's concerns in                                                               
writing.                                                                                                                        
                                                                                                                                
2:31:20 PM                                                                                                                    
BOB KLEIN,  Chair, Alcoholic Beverage Control  Board (ABC Board),                                                               
Alcohol  &  Marijuana  Control Office,  Department  of  Commerce,                                                               
Community  and Economic  Development  (DCCED), Anchorage,  echoed                                                               
previous testifiers,  stating that  this bill  was the  result of                                                               
years of work by the  stakeholders. He credited Ellen Ganley, CEO                                                               
&  Principal Consultant,  Information Insights  in May  2012 with                                                               
taking  the  approach of  having  a  group of  stakeholders  work                                                               
together  to   address  the   issues.  These   stakeholders  have                                                               
volunteered thousands of  hours to work on this  bill. He thanked                                                               
Senator Micciche and his staff for their support and effort.                                                                    
                                                                                                                                
MR. KLEIN spoke in  support of SB 52. He stated  that Title 4 was                                                               
adopted  in the  1980s, but  since then  the ABC  Board has  seen                                                               
significant changes  in the industry.  The board has had  to make                                                               
accommodations, but the statutes have not kept pace.                                                                            
                                                                                                                                
He  said the  board  sets population  limits  and determines  the                                                               
number  of  licenses.  However,  the board  has  not  taken  into                                                               
account changes  in Alaska, such  as the significant  increase in                                                               
population  in  the Wasilla  area.  The  board has  considered  a                                                               
number  of  things,  including  the  effect  on  population  from                                                               
tourism,  such as  when  several  cruise ships  are  in port.  In                                                               
closing,  he said  the board  highly  recommends the  legislature                                                               
pass SB 52.                                                                                                                     
                                                                                                                                
CHAIR  REINBOLD advised  him that  a letter  [dated February  18,                                                               
2019] was in members' packets.                                                                                                  
                                                                                                                                
2:34:44 PM                                                                                                                    
ERIKA  MCCONNELL, Director,  Alcohol &  Marijuana Control  Office                                                               
(AMCO),   Department   of   Commerce,  Community   and   Economic                                                               
Development, Anchorage, voiced support for SB 52.                                                                               
                                                                                                                                
2:35:08 PM                                                                                                                    
SENATOR COSTELLO  asked about liquor  licenses in  transition due                                                               
to  changes in  restaurant  ownership. She  requested  a list  of                                                               
licenses not decided  upon and for an estimate  of the processing                                                               
time.                                                                                                                           
                                                                                                                                
MS. MCCONNELL agreed to provide the information.                                                                                
                                                                                                                                
2:35:45 PM                                                                                                                    
DICK ROSSTON, General Counsel,  Alyeska Resort, Anchorage, stated                                                               
that SB 52 would update Title 4.  He indicated that he was one of                                                               
the initial people working on this bill.                                                                                        
                                                                                                                                
He summarized that SB 52 would  update Title 4, level the playing                                                               
field,  promote  a  fair business  climate,  and  protect  public                                                               
health and safety.  Further, it would help limit  youth access to                                                               
alcohol, reducing harm of overconsumption.                                                                                      
                                                                                                                                
In terms  of the industry,  he offered  his belief that  the bill                                                               
would  bring Alaska's  statutes  in line  with  other states.  He                                                               
cited the provision  to allow sampling as an example.  He said it                                                               
would be easier  for licensees to understand and  comply with the                                                               
laws. It  would also address many  issues that the ABC  Board has                                                               
struggled with  due to ambiguities  in current law. He  said that                                                               
the Alyeska  Resort supports the  overall bill. He  urged members                                                               
to pass it.                                                                                                                     
                                                                                                                                
2:37:38 PM                                                                                                                    
LORA  NORTON-CRUZ,   Director,  Resilience   Initiative  Program,                                                               
Alaska Children's  Trust, Anchorage, said  that she works  at the                                                               
Alaska Children's  Trust, a  lead statewide  organization focused                                                               
on  the prevention  of child  abuse  and neglect.  She said  that                                                               
children are Alaska's most precious  resource and their wellbeing                                                               
affects  all  aspects  of  Alaskan  life.  Many  of  the  state's                                                               
children suffer due to the impacts  of alcohol. Alaska has one of                                                               
the highest  rates per capita of  child abuse and neglect  in the                                                               
nation.  Each year,  the  Office of  Children's  Services in  the                                                               
Department of  Health and Social  Services has between  2,000 and                                                               
3,000   substantiated  cases   of   child   abuse  and   neglect.                                                               
Approximately 80 percent of these  cases involve alcohol or other                                                               
substances.  In  addition,  over  20 percent  of  adolescents  in                                                               
grades 9-12  reported drinking  in the last  30 days.  When youth                                                               
have access  to alcohol, either through  adults supplying alcohol                                                               
or  through internet  alcohol  sales, it  increases  the risk  of                                                               
addiction later in life.                                                                                                        
                                                                                                                                
She  said that  SB 52  is a  strong step  forward to  help Alaska                                                               
address and change  these trends. The changes to  Title 4 provide                                                               
practical solutions  for some  of Alaska's  longstanding problems                                                               
related  to alcohol  and ensure  a well-regulated  industry. This                                                               
bill  would benefit  youth by  expanding the  reforms enacted  in                                                               
Senate Bill  165 in 2016. It  would help prevent youth  access to                                                               
alcohol  while  not  criminalizing  youth  for  one  mistake.  It                                                               
incentivizes  youth  to  seek   alcohol  education  treatment  or                                                               
community-based justice. It also  holds adults who supply alcohol                                                               
to youth accountable. She urged  members to move the bill forward                                                               
to  help  ensure that  alcohol  does  not  continue to  have  the                                                               
devasting impact on Alaska's children.                                                                                          
                                                                                                                                
2:40:14 PM                                                                                                                    
SARAH   OATES,  President   and  CEO,   Alaska  Cabaret,   Hotel,                                                               
Restaurant  and Retailers  Association  (CHARR), Anchorage,  said                                                               
that she  recently became CEO  of CHARR. She formerly  worked for                                                               
seven years  for the Alcohol  & Marijuana Control  Office (AMCO),                                                               
most recently as  the program coordinator. She  said thousands of                                                               
hours have  gone into the  effort to  rewrite Title 4.  She spent                                                               
several  thousand  hours  on  this  project,  bringing  a  unique                                                               
regulatory  perspective and  subject matter  expertise. She  said                                                               
that   Alaska  CHARR   is  supportive   of   the  necessary   and                                                               
comprehensive Title 4 reform.                                                                                                   
                                                                                                                                
As  a regulator  she  understood the  difficulties  of trying  to                                                               
enforce  and  interpret  the   existing  outdated  and  confusing                                                               
statutes. The  state needs a  comprehensive overhaul to  help the                                                               
industry understand  its obligations. She  said that this  is the                                                               
third  bill to  come  before  the legislature  in  the last  five                                                               
years.  Contentious issues  were  largely  between retailers  and                                                               
manufacturers.   The   three-tier    system   of   manufacturers,                                                               
wholesalers,  and  retailers  has  changed.  The  retailers  have                                                               
historically supported giving  manufacturers more privileges than                                                               
allowed  since  the end  of  prohibition.  New manufacturers  use                                                               
business models  that sell  direct to  the public  and do  not go                                                               
through the  wholesale or retail  tiers. Contentious  issues have                                                               
arisen  within   the  industry   by  those   who  want   to  curb                                                               
manufacturers'  practices,  while  the  manufacturers  wanted  to                                                               
embrace  the  new  climate and  expand  their  privileges.  These                                                               
conflicts   created    obstacles   for   passage    of   previous                                                               
comprehensive bills that were whittled down and passed.                                                                         
                                                                                                                                
She said that  she worked with breweries  to identify contentious                                                               
issues. She offered  to send a four-page  summary that recommends                                                               
changes  to   remove  the  contentious  issues   yet  retain  the                                                               
provisions in SB  52 that would benefit public  health and safety                                                               
and the industry as a whole.  Alaska CHARR does not support SB 52                                                               
in its current form, she said.                                                                                                  
                                                                                                                                
2:46:03 PM                                                                                                                    
LEE ELLIS, President,  Brewers Guild of Alaska,  Juneau, spoke in                                                               
support  of  SB 52.  First,  it  would streamline  the  licensing                                                               
process, including  adding endorsements.  Second, it  would level                                                               
the playing  field so brewers  can compete with  out-of-state and                                                               
international breweries.  These changes  are relevant  to changes                                                               
in the  industry in the  Lower 48 and internationally.  Third, it                                                               
would  allow breweries  to expand  their  businesses by  removing                                                               
caps for  licensees that  have a brewery  license and  a beverage                                                               
dispensary  license. Although  these changes  will not  favorably                                                               
impact his  business, it is  important to create a  level playing                                                               
field  for  all breweries.  When  all  manufacturers compete,  it                                                               
provides the best  products for consumers. The  craft industry is                                                               
a consumer  driven industry and  this bill does not  give brewers                                                               
many  new  privileges,  so  it  is  not  "a  win"  for  them.  He                                                               
characterized this bill  as equitable and fair.  It maintains the                                                               
integrity of the three-tier system, he said.                                                                                    
                                                                                                                                
2:48:10 PM                                                                                                                    
EVAN WOOD,  Co-Owner, Devils Club  Brewing Company,  Juneau, said                                                               
that he is one of the  founders and owners of Devils Club Brewing                                                               
Company. Their business  has been open less than a  year, so they                                                               
have not participated in the thousands  of hours of work that led                                                               
to SB  52. However, he  offered his belief  that this is  a clear                                                               
compromise between  all the  sectors. He spoke  in support  of SB                                                               
52. It does  not help his business, but one  of the main barriers                                                               
of entry  that they experienced in  their hometown was to  try to                                                               
navigate  the  statutory provisions  in  Title  4. It  took  them                                                               
months  to evaluate  and determine  what they  were and  were not                                                               
able  to do.  SB 52  would  remove barriers  by clearly  defining                                                               
allowable  activities for  each license  type and  streamline the                                                               
process. These things  will be good for the state  as a whole and                                                               
add necessary enforcement. He spoke in support of SB 52.                                                                        
                                                                                                                                
2:49:32 PM                                                                                                                    
MS. BRAWLEY began a PowerPoint  on the Alcoholic Beverage Control                                                               
(ABC) Board, Title 4 Review Project; Overview of Senate Bill 52.                                                                
She  offered  to  breeze  through  things  that  were  previously                                                               
covered. She skipped slide 2,  "Goals of Title 4 Review Process,"                                                               
which read.                                                                                                                     
                                                                                                                                
     Promote  a fair  business  climate  and protect  public                                                                    
     health and safety.                                                                                                         
     1.  Create rational  regulation  for all  tiers of  the                                                                    
     state's alcohol industry.                                                                                                  
     2. Limit youth access  to alcohol, while ensuring youth                                                                    
     are not criminalized                                                                                                       
     3.  Promote  responsible  alcohol use  and  reduce  the                                                                    
     harms of overconsumption.                                                                                                  
                                                                                                                                
     Make Title 4 a clear and consistent legal framework.                                                                       
                                                                                                                                
     1. Increase swiftness,  proportionality and consistency                                                                    
     of penalties.                                                                                                              
     2. Increase local law enforcement of Title 4.                                                                              
     3.  Increase  licensee  accountability before  the  ABC                                                                    
     Board for Title 4 violations.                                                                                              
                                                                                                                                
MS. BRAWLEY reviewed slide 3, "Diverse Stakeholders."                                                                           
                                                                                                                                
     Diverse Stakeholders included                                                                                              
     ?  ABC Board,  AMCO  (staff) ?  Public  Safety and  Law                                                                    
     Enforcement                                                                                                                
     ? Industry - Manufacturers - Wholesalers - Retailers                                                                       
     ? Public Health - Recover Alaska - Department of Health                                                                    
     and  Social  Services  -  Alaska  Mental  Health  Trust                                                                    
     Authority - Rasmuson Foundation                                                                                            
     ? Community Advocates                                                                                                      
     ? Local Governments                                                                                                        
                                                                                                                                
She  referred members  to the  report  that was  provided to  the                                                               
legislature  that  includes  the  history,  recommendations,  and                                                               
lists the hundreds of stakeholders that have been involved.                                                                     
                                                                                                                                
2:50:18 PM                                                                                                                    
MS. BRAWLEY  reviewed slide 4,  "Alaska's Liquor  License System:                                                               
Proposed Changes."                                                                                                              
                                                                                                                                
     Alaska's license  system is based on  the 3-tier system                                                                    
     of alcohol regulation:  separate entities, manufacture,                                                                    
     distribute, and sell alcohol to the public.                                                                                
                                                                                                                                
She   referred  to   the  three-tier   system   that  defines   a                                                               
manufacturing tier,  a wholesale tier  and a retail tier.  One of                                                               
SB 52's  recommendations would be  to reorganize the  licenses in                                                               
statutes and  ensure the  language is  consistent and  clear. She                                                               
said this graphic was on slides 4-6.                                                                                            
                                                                                                                                
2:51:09 PM                                                                                                                    
MS. BRAWLEY  reviewed slide 5,  "Alaska's Liquor  License System:                                                               
Proposed  Changes." She  said the  graphic illustrates  the "big-                                                               
picture"   of   the    proposed   licensing   system,   including                                                               
endorsements for  each license and  license types being  added to                                                               
statute.                                                                                                                        
                                                                                                                                
SENATOR BISHOP asked whether the  common carrier shown on slide 5                                                               
refers to the out-of-state wine shipments.                                                                                      
                                                                                                                                
MS.  BRAWLEY   answered  that  it   relates  to   common  carrier                                                               
dispensary,  such as  Alaska Airlines  serving  alcohol on  their                                                               
vessels, but  it does not refer  to common carrier as  it relates                                                               
to shipment. It would not require a separate license, she said.                                                                 
                                                                                                                                
2:51:53 PM                                                                                                                    
MS. BRAWLEY  reviewed slide 6,  "Alaska's Liquor  License System:                                                               
Proposed  Changes."   She  explained  that  this   bill  proposes                                                               
repealing some  types of licenses  and replacing them  with other                                                               
existing license  types. Provisions in  the bill would  allow for                                                               
that conversion.  She said  that this slide  intends to  show the                                                               
endorsements and  expanded activities and/or premises  to fit the                                                               
business model.                                                                                                                 
                                                                                                                                
MS. BRAWLEY  reviewed slide 7,  "Proposed: Manufacturer  & Retail                                                               
Licenses."  This   slide  graphically   depicted  the   types  of                                                               
licenses. The text read:                                                                                                        
                                                                                                                                
      Manufacturer licenses allow production only and are                                                                       
     not subject to population limits.                                                                                          
                                                                                                                                
     Retail licenses  are specific to each  product type and                                                                    
     allow   limited   sales    for   onsite   and   offsite                                                                    
     consumption. Retail licenses  are subject to population                                                                    
     limits.                                                                                                                    
                                                                                                                                
     A retail license must be connected to the correct type                                                                     
      of manufacturer, license, and cannot be used on its                                                                       
     own.                                                                                                                       
                                                                                                                                
     Section 10, 04.09.020 and .310, .320, .330. and .340.                                                                      
                                                                                                                                
She   highlighted   that    the   three-tier   system   separates                                                               
manufacturing  and retail  activities. The  proposal would  split                                                               
the  brewery, winery,  and distillery  licenses so  someone could                                                               
opt to only produce and have a  tasting room or to have a brewery                                                               
retail license. It would not  change the rules for manufacturing,                                                               
such  as  self-distribution that  would  allow  them to  sell  to                                                               
retailers rather than to use a wholesaler.                                                                                      
                                                                                                                                
2:52:48 PM                                                                                                                    
MS. BRAWLEY reviewed slide 8,  "Proposed: More Retail Options for                                                               
Manufacturers."                                                                                                                 
                                                                                                                                
     Product-specific Manufacturer Retail License                                                                               
      • Same as existing retail operations for Breweries                                                                        
        • Limited sales volume                                                                                                  
        • Limited hours                                                                                                         
                                                                                                                                
        Manufacturer Sampling Endorsement for small free                                                                        
     samples                                                                                                                    
                                                                                                                                
     Obtain existing retail licenses                                                                                            
     Operated a regular retail license, with no production                                                                      
     or sales limit                                                                                                             
                                                                                                                                
     BDL, REPL, Package store                                                                                                   
     The Brewery license used as an example.                                                                                    
                                                                                                                                
     Section 10, 04.09.321, .320; Sections 55-57, 04.11.450                                                                     
                                                                                                                                
This slide  helps to illustrate  the options  manufacturers would                                                               
have. For  example, a  brewery could  opt to  get a  tasting room                                                               
license  as they  do today,  obtain  a restaurant  license, or  a                                                               
package  store,  which  is  not   currently  allowed  except  for                                                               
brewpubs. The  bill would give  more options  without undermining                                                               
the  underlying   three-tier  system.  A  location   could  be  a                                                               
manufacturing site and provide free samples, she said.                                                                          
                                                                                                                                
2:53:22 PM                                                                                                                    
MS. BRAWLEY reviewed slide 9,  "Proposed: Limited Free Samples by                                                               
Manufacturers."                                                                                                                 
                                                                                                                                
   • Small free samples can be provided to the public, with a                                                                   
     Manufacturer Sampling Endorsement                                                                                          
   • Ounce limits are defined by product type, and roughly                                                                      
     correspond to alcohol by volume (ABV)                                                                                      
   • A retail license is not required for sampling but is                                                                       
     required for any product sales to the public.                                                                              
                                                                                                                                
     Section 10, 04.09.410                                                                                                      
                                                                                                                                
She said that  samples can currently be offered but  there are no                                                               
set limits in  statute, so it was not  currently being regulated.                                                               
This  would  allow manufacturers  to  opt  into the  system.  The                                                               
proposed  limits would  depend on  alcohol content.  For example,                                                               
cider tends to have less alcohol content than wine.                                                                             
                                                                                                                                
2:53:50 PM                                                                                                                    
CHAIR  REINBOLD asked  whether this  was one  of the  contentious                                                               
issues that was raised during  deliberations on Senate Bill 76 in                                                               
the last legislature.                                                                                                           
                                                                                                                                
SENATOR MICCICHE answered  no. He stated that this  bill does not                                                               
increase what  breweries can serve,  but some parties  would like                                                               
to limit what  their competition can serve. He said  he would not                                                               
support that restriction. He favors the free market.                                                                            
                                                                                                                                
CHAIR REINBOLD  recalled that  the conflict was  a result  of the                                                               
bars versus the  manufacturers, which was an  important issue the                                                               
committee would address.                                                                                                        
                                                                                                                                
SENATOR  MICCICHE answered  that some  issues exist  between some                                                               
CHARR  members  versus  brewers   rather  than  bars  versus  the                                                               
distilleries or  breweries. He  said that  he supports  a healthy                                                               
discussion,  but he  would not  regulate the  free market  out of                                                               
business with this bill.                                                                                                        
                                                                                                                                
2:55:08 PM                                                                                                                    
MS.  BRAWLEY reviewed  slide  10,  "Proposed: Manufacturer  Sales                                                               
Limits by Product Type. Section  10, 04.09.310, .320, .330." This                                                               
slide depicts  the daily  limits of  retail brewery,  winery, and                                                               
distilleries for onsite and offsite sales.                                                                                      
                                                                                                                                
She  said  that  these  limits generally  represent  the  current                                                               
limits.  The theory  is to  allow higher  sales depending  on the                                                               
alcohol content, consistent with current law.                                                                                   
                                                                                                                                
2:55:41 PM                                                                                                                    
MS. BRAWLEY  reviewed slides 11  and 12,  "Proposed: Endorsements                                                               
on Licenses."                                                                                                                   
                                                                                                                                
     Slide 11:                                                                                                                  
                                                                                                                                
     Add   endorsements   to   existing   licenses,   giving                                                                    
     businesses  more  flexibility   without  creating  more                                                                    
     situation  specific license  types. Endorsements  would                                                                    
     allow  sampling   on  premises,  multiple   bar  rooms,                                                                    
     deliveries by package stores, etc.                                                                                         
                                                                                                                                
     Slide 12:                                                                                                                  
                                                                                                                                
         Section 10, 04.09.400; endorsements defined in                                                                         
     04.09.410 - .520                                                                                                           
                                                                                                                                
     Proposed Endorsements                                                                                                      
     ? R-7A | Bowling Alley Endorsement                                                                                         
     ? R-7B | Package Store Shipping Endorsement                                                                                
     ? R-7C | Package Store Delivery Endorsement                                                                                
     ? R-7D | Package Store Re-Packaging Endorsement                                                                            
     ? [M-2] Manufacturer Sampling Endorsement                                                                                  
     ? [R-1] Multiple Fixed Counter Endorsement                                                                                 
     ? [R-1] Hotel/Motel Endorsement                                                                                            
     ? [R-1] Large Resort Endorsement                                                                                           
     ? [R-3] Package Store Sampling Endorsement                                                                                 
     ? [M-1] Brewery Repackaging Endorsement                                                                                    
     Section 10, 04.09.410 - .520                                                                                               
                                                                                                                                
She said that  this lists proposed endorsements.  The codes shown                                                               
on  the left  correspond to  the recommendations  in the  Title 4                                                               
report.  Most  of the  proposed  endorsements  refer to  existing                                                               
statutory  language.  For  example,  most of  the  package  store                                                               
endorsements exist in current law, she said.                                                                                    
                                                                                                                                
2:56:03 PM                                                                                                                    
MS. BRAWLEY reviewed slide 13, "Proposed: Options for Multiple                                                                  
Bar (Beverage Dispensary) Locations.                                                                                            
                                                                                                                                
   • To operate two or more bar rooms in a beverage                                                                             
     dispensary (BDL), a multiple fixed counter endorsement                                                                     
      would be required. This would replace the duplicate                                                                       
     license.                                                                                                                   
                                                                                                                                
   • Large establishments like hotels and resorts could                                                                         
     have additional bar locations in separate buildings on                                                                     
     the property.                                                                                                              
                                                                                                                                
     Multiple Fixed Counter                                                                                                     
   • One room with fixed bar per additional endorsement.                                                                        
   • Must be on the same (connected) licensed premises                                                                          
                                                                                                                                
     Hotel or Motel                                                                                                             
   • Can serve in multiple rooms, including banquet rooms                                                                       
   • Hotel rooms can be stocked with alcohol for purchase                                                                       
   • must be on same or adjacent property to main premises                                                                      
                                                                                                                                
     Large Resort                                                                                                               
   • Can serve at multiple buildings within resort property                                                                     
   • Hotel rooms can be stocked with alcohol for purchase                                                                       
   • Property must be 10+ acres, offer outdoor recreation &                                                                     
     lodging                                                                                                                    
                                                                                                                                
She said that  current law allows a duplicate license  for a bar,                                                               
which means the bar could obtain  a second license. The board has                                                               
struggled  with what  this means,  whether it  would be  a second                                                               
room in the  same building or a license down  the street. Alyeska                                                               
Resort has  multiple licenses associated with  the complex. These                                                               
provisions would give the board  more clarity and would rename it                                                               
to a "Multiple Fixed Counter Endorsement."                                                                                      
                                                                                                                                
2:57:21 PM                                                                                                                    
MS.  BRAWLEY reviewed  slide 14,  "Proposed Limited  Free Samples                                                               
for Package Stores."                                                                                                            
                                                                                                                                
In current Title  4, Package Stores cannot  allow any consumption                                                               
on premises                                                                                                                     
   • The bill would allow small free samples, with a                                                                            
     Package Store Sampling Endorsement                                                                                         
   • Ounce limited defined as, "Any combination of                                                                              
     products, not to exceed the alcohol equivalent of any                                                                      
     single product type."                                                                                                      
   • Example: Customer A chooses 12 ounces of beer.                                                                             
      Customer B choose 6 ounces of cider and 3 ounces of                                                                       
     wine. Customer C chooses 2 ounces of wine, 2 ounces of                                                                     
     sake, and 4 ounces of beer.                                                                                                
                                                                                                                                
She said that  sampling is popular in the  Lower 48. Stakeholders                                                               
wanted to solve issues without  adding other ones. This provision                                                               
gives businesses the ability to  showcase the products they serve                                                               
and to  talk about their  products, but it would  provide limits.                                                               
It would give the package  store some options for different sized                                                               
samples.                                                                                                                        
                                                                                                                                
2:57:56 PM                                                                                                                    
SENATOR  BIRCH asked  whether package  stores  would include  the                                                               
neighborhood Costco stores.                                                                                                     
                                                                                                                                
MS. BRAWLEY answered yes.                                                                                                       
                                                                                                                                
2:58:12 PM                                                                                                                    
MS. BRAWLEY reviewed slide 15, "R-7 Standardize Permits."                                                                       
                                                                                                                                
       Unlike licenses, permits are typically issued for                                                                        
     single events, on or off licensed premises.                                                                                
       ? Define all permit types in statute, not just in                                                                        
     regulation                                                                                                                 
     ? Fee for all permits is $50 per event day                                                                                 
        ? Most permits listed are already in statute or                                                                         
     regulation                                                                                                                 
     ? New permit: Tasting Event Permit, allowing a Package                                                                     
     Store or Manufacturer to host an event on premises, in                                                                     
     partnership with a BDL                                                                                                     
                                                                                                                                
      Section 10, 04.09.600; permits defined in 04.09.610-                                                                      
     690                                                                                                                        
                                                                                                                                
She explained that it would apply to anyone with a package store                                                                
license.                                                                                                                        
                                                                                                                                
2:58:48 PM                                                                                                                    
MS. BRAWLEY reviewed slide 16, "Proposed Permits."                                                                              
                                                                                                                                
   • R-7F | Beverage Dispensary Caterer's Permit (AS 04.11.230;                                                                 
     3 AAC 304.685)                                                                                                             
  • R-7G | Restaurant Caterer's Dining Permit (3 AAC 304.680)                                                                   
   • R-7H | Club Caterer's Permit (3 AAC 304.690)                                                                               
   • R-7I | Nonprofit Event Permit (AS 04.11.240)                                                                               
   • R-7J | Art Exhibit Permit (3 AAC 304.697)                                                                                  
   • R-7K | Alcoholic Beverage Auction Permit (3 AAC 304.699)                                                                   
   • R-7L | Inventory Resale Permit (Retail Stock Sale License,                                                                 
     AS 04.11.200)                                                                                                              
   • R-7M | Tasting Event Permit (proposed)                                                                                     
     Section 10, 04.09.600; permits defined in 04.09.610 - .690                                                                 
                                                                                                                                
She said that the bill  would reorganize permits. Currently, most                                                               
permits are defined in regulation.  This provision clarifies that                                                               
a permit  is for  a time  limited event,  but not  for year-round                                                               
use.                                                                                                                            
                                                                                                                                
2:58:52 PM                                                                                                                    
MS. BRAWLEY reviewed slide 17, "Proposed: Package Store Tasting                                                                 
Event Permit."                                                                                                                  
                                                                                                                                
   • Allows a package store or manufacturer to host a                                                                           
     special tasting event on its own premises, with onsite                                                                     
     consumption of alcohol for those attending the event.                                                                      
   • The event may be in the store or another area of the                                                                       
     property, such as a special event space.                                                                                   
   • Licensees can only offer products in their inventory.                                                                      
                                                                                                                                
She  explained  that  these events  are  typically  three  course                                                               
dinners with  a wine  tasting at  the package  store. Protections                                                               
for public health and safety  include limited hours. Each license                                                               
would be limited to six events  per year in the same community as                                                               
the license is located.                                                                                                         
                                                                                                                                
2:59:21 PM                                                                                                                    
CHAIR REINBOLD related her understanding  that the tasting events                                                               
and sampling are new provisions.                                                                                                
                                                                                                                                
MS. BRAWLEY agreed.                                                                                                             
                                                                                                                                
2:59:47 PM                                                                                                                    
SENATOR  MICCICHE  said that  he  will  work with  Department  of                                                               
Commerce,  Community  and  Economic Development  (DCCED).  SB  52                                                               
would  reduce regulations  and the  legislature supports  a safe,                                                               
responsible, and  well-operated industry through  less regulation                                                               
and expanded rights.  He said this bill would  place many current                                                               
regulations in statute  since it has been  confusing working with                                                               
the ABC Board.  He acknowledged the issues  testifiers raised and                                                               
offered  to  work  to  provide a  greater  understanding  of  the                                                               
changes in SB 52.                                                                                                               
                                                                                                                                
[SB 52 was held in committee.]                                                                                                  
                                                                                                                                
3:00:53 PM                                                                                                                    
CHAIR REINBOLD reviewed upcoming announcements.                                                                                 
                                                                                                                                
3:01:44 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
SB52 Powerpoint Senate Labor and Commerce 3-28-19.pdf SL&C 3/28/2019 1:30:00 PM
SB 52
SB 52 Sectional Summary V U - Color Coded.pdf SL&C 3/28/2019 1:30:00 PM
SB 52